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HomeMy WebLinkAbout1995-10-10 - AGENDA REPORTS - EARTHQUAKE REPAIR PERMITS (2)AGENDA REPORT kl City Manager Approval Item to be presented by: Ruben M. Barrera NEW BUSINESS DATE: October 10, 1995 SUBJECT: EARTHQUAKE REPAIR PERMITS - RESCIND WAIVER OF FEES DEPARTMENT: Building and Engineering Services BACKGROUND Shortly after the January 17, 1994 earthquake, the City Council approved a policy to waive fees for all permits associated with repair or reconstruction of earthquake damaged structures. The cost of reviewing the plans, processing the permits and inspecting the work was reimbursable through the Federal Emergency Agency (FEMA) and the State of California Office of Emergency Services. After the earthquake, two of the City's major concerns were to speed up the recovery process and to ensure and protect the life and safety of its residents. The City needed to encourage residents to repair damage through the permitting process in order to provide assistance from staff in determining the cause of the damage and the appropriate repair measures. It is also important to ensure that all repairs and reconstruction complied with the requirements of the City's building codes. Without this encouragement, it is likely that repairs would have been in many cases only cosmetic and subject to damage during a future event. The waiver of fees and the establishment of a separate Earthquake Recovery Unit to provide timely and no -cost permits was a major contributing factor in the reestablishment of the City to pre -earthquake conditions. An idea of the savings to the community and the positive impact of the Council decision can be found in the statistical analysis shown on the appendix. The current funding program is scheduled to end on or about November 17, 1995, and FEMA has indicated that no new projects or extension of projects will be considered for reimbursable funding after that date. The City would either need to use its own funds or charge property owners for permits, as it does with the normal permitting process. Since the City has no budgeted funds for these services, the most prudent approach is to rescind the fee waiver policy. The cities of Los Angeles and Santa Monica will be rescinding their "no -fee" policy soon, and the City of Fillmore did it in April this year. Agenda Item:A EARTHQUAKE REPAIR PERMITS October 10, 1995 - Page 2 The City currently contracts with Willdan Associates to manage and staff the Earthquake Recovery Unit. We have received many positive comments from the public and have an excellent working relationship with them. Since they are able to adjust staffing depending on permit activity without affecting the City's resources or budget, we believe that this contract provides a continuation of a cost-effective recovery process. Therefore, staff recommends that the City continue their services until all earthquake repair permits and related plan review and inspection are complete, or until we can assimilate the process in-house without severely impacting our current Building and Safety staff. RECOMMENDATION 1) The City Council rescind its "no -fee" earthquake repair/reconstruction policy adopted on February 8, 1994, for permits issued after October 24, 1995, except for complete permit applications, for which a plan review is required, submitted prior to October 24 and issued a permit by November 7, 1995. 2) Amend the contract with Willdan Associates to continue processing earthquake repair permits and inspections at a compensation rate of 75% of all earthquake repair permit fees. 3) Increase revenues in account 01-3252, Earthquake Building Permits, by $484,900 and appropriate $363,675 in account 01-5202-227, Earthquake Contractual Services. ATTACHMENTS Appendix Amendment to Agreement RB:hds ...61\resa"dab APPENDIX City of Santa Clarita January 17, 1994 Earthquake Earthquake Recovery Statistics September 15, 1995 Total number of structures damaged and inspected . .. ... ... 15,756 Total number of earthquake repair permits issued .............. 14,661 Total estimated earthquake damage (private structures) ...... $170,794,085 Total estimated value of repairs made and completed (permits finaled) .............. ........ $155,156,875 Total estimated permit fees saved by residents as a result of the City's no -fee policy $2,180,780 Total estimated value of damage which is expected to be permitted after October 10, 1995 $27,242,186 Total estimated permit fees to be collected after October 10, 1995 ............................ $484,900 AMENDMENT NO. 1 Contract for Building and Safety Services for Earthquake -Damaged Buildings The agreement entered into on the 28th day of February, 1994, between the City of Santa Clarita and Willdan Associates is hereby amended to read as follows: 13. City agrees to pay the Contractor for services performed pursuant to this Agreement and as described in Exhibit "A" for all "no -fee" earthquake repair permits issued on or before October 24,1995 and for all permits issued by November 7, 1995 for which complete permit applications that require a plan review are submitted by October 24, 1995, as approved by City Council policy. For all earthquake repair permits issued after October 24, 1995 and for all permits issued after November 7, 1995 for which complete permit applications submitted on or before October 24, 1995 requiring a plan review could not be issued because corrected plans or supporting date was not submitted on or before November 7, 1995, the City agrees to require the payment of the then current permit fees from the applicant or representative of the applicant and pay Contractor 75% of the fees collected. The Contractor agrees to provide all permit processing, plan review and inspection services as required by the City's then current building, plumbing, mechanical and electrical codes. Contractor shall maintain and submit to City itemized records substantiating service performed including the dates, times and description of work. Invoices shall be submitted monthly for work performed, and compensation for that portion of the work which is undisputed will normally be made within 30 days upon receipt of invoice. If payment for undisputed work is not received within 30 days upon receipt by City of Invoice, Contractor may suspend all work until payment is received, or terminate the unperformed portion of this Agreement. All other provisions of the hereinabove mentioned agreement shall remain in full force and effect. In recognition of the obligation stated in this amendment, the parties have executed this amendment on the day of 1995. ATTEST: CITY OF SANTA CLARITA City Clerk Date City Manager Date Approved as to Form: City Attorney Date WILLDAN ASSOCIATES Address: Willdan Associates 650 Hospitality Lane Suite 400 San Bernardino, CA 92408-3317C Z Phone: (909) 386-0200 FAX: (909) 888-5107 By: Name/Title "M5.1 Richard L. Kopecky Date Vice President