To: Members of the Outreach Task Force

From: Diana O’Dell, Associate Planner

Date: October 7, 2003

Re: Fiscal Impact of Task Force Recommendations I.A and I.B

There are two changes recommended by the Outreach Task Force that affect private development projects.  These recommendations concern neighborhood notification of proposed additions to single family home additions.  The purpose of this memo is to discuss the potential cost implications of these recommendations. 

There are two methods of addressing the cost: paid for by the General Fund or recovered through associated fee increases.  The fiscal analysis below includes both cost estimates per project and total cost per year using the following assumptions:

• Cost/notice is $2.16.
• On average, at least 15% of homes are renter-occupied.
• Approximately 10% of the notified residents call the City and want additional information.
• Each request for information taking an average of 15 minutes.
• $55/hour rate for an Associate Planner (this includes total cost to the City, including benefits), so each 15 minute call costs approximately $13.75 in staff planner time.

RECOMMENDATION 1A - For all single-story major remodels (an addition of 50% square footage or greater), notice should be given to adjacent homeowners. 

Current Practice:           No notification is required for single-story additions and there is no associated 14-day waiting period.  There is no charge for Design Reviews. 

Estimated Noticing:       A review of Design Review applications received in the previous years indicates that there will be approximately 7 applications which meet the above criteria.  Adjacent noticing typically includes 8 homes (see attached map) and with the 15% renter assumption, an estimated 9 notices will need to be sent per project. 

If this cost were passed on through increased fees, it would cost an applicant $33.19 to submit an application.*  If this cost were absorbed by the General Fund, it would cost approximately $232.33/year (33.19 x 7).

RECOMMENDATION 1B - For all second-story additions, notice should be given three properties away (adjacent to adjacent to adjacent) on the same frontage, and other owners and single-family and duplex tenants two properties away (adjacent to adjacent).  (See attached map for clarification.)

Current Practice:           Staff notifies adjacent homeowners for any Design Review that includes a second-story component, and no fee is charged unless it exceeds the Floor Area Ratio (FAR) thresholds for the zoning district, requiring Planning Commission review.  The fee for Planning Commission review is $85.00.    

Estimated Noticing:       A review of Design Review applications received in the previous years indicates that there will be approximately 60 applications which meet the above criteria. This expanded noticing typically includes 28 homes (see attached map – may vary widely) and with the 15% renter assumption, an estimated 32 notices will need to be sent per project. 

If this cost were passed on through increased fees, it would cost an applicant $124.12 to submit an application.*  If this cost were absorbed by the General Fund, it would cost approximately $7,447.20/year (124.12 x 60).

*Note: These estimated fees/costs are based on 2002-2003 employee salaries.  There will likely be a 6% increase in that cost/fee the next fiscal year.

CC: Robert Paternoster, Director of Community Development

      Trudi Ryan, Planning Officer