Loomis ups building and planning fees to 'stop the bleeding'

With the second-lowest fees in the state, the town of Loomis raised building permits and planning fees this week to "stop the bleeding." A recent study found Loomis' building permit cost is the second lowest in California, only ahead of Siskiyou County, according to Loomis Finance Director/Town Treasurer Roger Carroll during Tuesday's Town Council meeting. When fees don't cover the full cost, the difference is borne by Loomis taxpayers, Carroll pointed out. "Some builders are surprised at the $30 basic fee, as nearby cities charge up to $150," Carroll said. "People come in for a building permit and go, 'Really? That's all you're charging?'" Carroll explained that Loomis currently charges 1 percent of the project's valuation as the permit fee. To properly calculate permit and inspection fees, the town needs to contract for a $25,000 to $50,000 study, according to Carroll. In the meantime, Caroll proposed "stopgap" measures. "Not to just make a money grab but we want to make sure our costs are covered. It's clear they aren't," Carroll said Tuesday. "In an effort to stop the bleeding, we propose some increase." Carroll recommended the following measures: * Plan review fees. While plan review fees are 25 percent of the 1 percent, most cities separate it out from the total fee, Carroll said. Instead, they calculate the permit fee, then charge an additional 65 percent to 75 percent as the fee.Staff recommended Loomis take the plan review fee out of the building permit and charge 65 percent of the permit cost, or actual cost, whichever is greater. Since Loomis contracts out some plan reviews, the cost can be significantly higher. * Re-inspection fees. Loomis regularly has builders schedule an inspection they are not prepared for and the inspector must return another day. The Loomis inspector suggested giving builders a "one free pass" but additional requests for the same inspection should be charged $150.Working without a permit. Staff said Loomis occasionally entertains builders who don't do proper paperwork until inspections are due, or sometimes, without the intention of ever getting permits. When such construction is inspected, the work generally exceeds the cost of a normal permit. Many cities charge an additional 100 percent of the permit cost as a penalty for unpermitted work (staff recommended the same).Processing fee. The building permit cost does not include staff time for processing. The administrative clerk reviews the permit for completeness, calculates fees and assembles the plan copies. Many cities charge $50 to $65 as an application fee. Permits that require outside review average $50. Staff recommended an $80 fee for those that require outside assistance. *Revision to existing applications. Occasionally, after a project has been approved, the applicant will make changes to the plan, said Carroll. This requires another review. Staff recommended a revision fee of 10 percent of the original plan or actual costs, whichever is greater.Minimum permit charge. Currently, the minimum, over-the-counter fee is $30. One inspection by the Loomis building inspector costs $115, plus overhead, said Carroll. Staff recommended $150. Planning The town of Loomis is also undercharging Planning Department fees, Carroll said. As opposed to building permits, planning fees include large-scale developments and subdivisions. In 2009, the town contracted to update planning department fees, staff said. They calculated these fees on a cost-recovery basis and haven't updated the fees since they were adopted a dozen years ago. "I think building permit fees are important. I think these (planning fees) are more important," Carroll said Tuesday. Staff cost-of-living raises have increased payroll by 53 percent since 2009, according to Carroll. "The General Fund is losing money. The general populace is paying these costs," Carroll said. Loomis contractor Dave Dalli was unhappy with the fee increase. "It isn't that you are not charging enough," Dalli told Loomis Town Council on Tuesday. "It's management. You don't have the right management in order to run a good department." Loomis Councilmember Brian Baker said, "If we're going to charge more, I think the level of service needs to be higher."