ORD 2003-31 CITY'S HOURLY RATE CHARGE FOR LAND USE APPLICATIONS ORDINANCE NO. 2003-31
AN ORDINANCE OF THE CITY OF BAINBRIDGE ISLAND,
WASHINGTON, RELATING TO THE CITY'S HOURLY RATE CHARGE
FOR PROCESSING LAND USE APPLICATIONS; AMENDING BIMC
1.28.035.
WHEREAS, for many types of land use applications, the City charges a fee for
processing the application that is based in whole or in part on an hourly rate charge; and
WHEREAS, in BIMC 1.28.035, the City established a process for determining the
amount of the hourly rate to be charged for processing land use applications, which process
includes an annual review by the City Council of the hourly rate charge; and
WHEREAS, in 2002, the City caused a professional study to be performed by a
consultant on the issue of the City's fees for processing land use applications, which included
review of the City's costs and the hourly rate charge; and
WHEREAS, the consultant prepared a final report titled "Cost of Service Study of the
Building & Development Services Fund" dated September 26, 2002; and
WHEREAS, the City accounts for revenues and expenses related to certain building
and other permit applications ("Building Permit Applications") in the City's Building Subfund
of the Building and Development Fund, and the City accounts for revenues and expenses
related to certain land use development approval applications ("Development Approval
Applications") in the City's Development Subfund of the Building and Development Fund;
and
WHEREAS, the Cost of Service Study concludes that based on data from 2001 on the
City's costs to process and fee revenue from Building Permit and Development Approval
Applications, under the City's current rate structure, the City recovers only 73 percent of its
costs to process Building Permit Applications, and only 22 percent of its costs to process
Development Approval Applications, with a combined net recovery of 43 percent of the costs
to process Building Permit and Development Approval Applications; and
WHEREAS, the unaudited financial results for 2002 show that the City recovers only
16.2 percent of its costs to process Development Approval Applications under the current rate
structure of $90.00 per hour (27.1 percent excluding occupancy costs); and
WtIEREAS, the only portion of the fees for processing Building Permit APplications
that is based on the hourly rate is the fee for engineering review, which is a relatively small
component of the Building Permit Application fees; and
2003-31 (Formerly 2003-29)
Approved July 23, 2003
WHEREAS, the City's Revenue Policy No. 8 states that "the City shall move towards
a fee structure for all fees and charges where the beneficiary of the service pays the cost of
that service except to the extent that the City Council has determined that provision of the
specific service in question provides a general public benefit"; and
WHEREAS, RCW 82.02.020 provides that ,'nothing in this section prghibits cities . .
.from collecting reasonable fees from an applicant for a permit o3 other approval to cover the
cost to the city . . . of processing applications, inspecting and reviewing plans, or preparing
detailed statements required by chapter 43.21C RCW"; and
WHEREAS, the City appointed a citizens' committee to study the issue of fees
charged for processing Building Permit and Development Approval Applications; and
WHEREAS, on September 23, 2002, the committee submitted a report to the City
titled "Report of the Building and Development Services Cost Study Committee," and on
October 9, 2002, the citizens' committee presented its findings to the City Council, which
conclude in part that the current Development Approval Application cost recovery rate of 22
percent is not acceptable; and
WHEREAS, on December 11, 2002, the City Council provided the opportunity for
public comment on the issue of the City's fees for processing Building Permit and
Development Approval Applications; and
WHEREAS, the City Council has determined that for at least the year 2003, the City's
hourly rate charge for processing Building Permit and Development Approval Applications
should be increased so that the City will recover approximately 50 to 60 percent of its costs to
process the Development Approval Applications, which results in a general taxpayer
contribution of 40 to 50 percent of said costs; and
WHEREAS, setting the hourly rate charge at $180 per hour will result in a cost
recovery that is between 50 percent and 60 percent for Development Approval Applications
(even excluding occupancy costs) and will have a relatively small impact on the fees charged
for processing Building Permit Applications; now, therefore
THE CITY COUNCIL OF THE CITY OF BAINBRIDGE ISLAND, WASHINGTON,
DO ORDAIN AS FOLLOWS:
SECTION 1. Section 1.28.035 of the Bainbridge Island Municipal code is amended as
follows:
A. In all sections of the city's fee schedule, adopted by resolution and as
amended, that specify an hourly rate shall be charged, the city shall charge the
hourly rate established in this section for all staff time spent on the permit,
approval, or other action covered by the fee schedule. The hourly rate shall
include overhead and direct costs related to the permit, approval, or action
(such as posting, publication, and mailing of notices) but shall not include
2003-31 (Formerly 2003-29)
July 23. 2003. City Council (3~a Reading) -2-
amounts charged by third parties to the city (such as legal costs, engineering
services, or other consulting charges from individuals or f'n'ms pursuant to
contracts with the city). In addition to the hourly rate charge, applicants for
permits, approvals, or other actions for which the hourly rate charge is imposed
shall pay to the city 110 percent of amounts charged to the ci~' by third parties
in connection with the permit, approval or action.
B. The hourly rate shall cover the full cost of the !an~ use regulatory
function of processing land use applications for the year prior to the
imposition of the rate, excluding the costs of long range planning and policy
formulation, less a taxpayer contribution. Different taxpayer contributions may
be applied to different types of permits. Unless a taxpayer contribution is
approved for a specific period, the taxpayer contribution shall be zero. Specific
periods shall not exceed one year.
C. The city council shall review the hourly rates imposed by the city
periodically as needed but at least once in every three years in - ~'-'~^~ T ....
~nnn ~,.~;. ;. r, .... ~.~. .~nnn ~.a ...... n., ~. .... ~.~. The eview may
include the method and amount of the rate calculation, the amount of the
taxpayer contributions, and the permits, approvals, and actions for which hourly
fees are charged.
D, An applicant that is aggrieved by the number of hours ~harged to a
particular permit, approval, or action may appeal the amount charged to the
· 41.-or./-~.~- f.~c ~.ln,~.n; .... t{ ....... 1~-,, ,4a*t~,l ..... * hearing examiner. The
decision of the ........ heanng examiner shall be final.
E. The city's hourly rate charge shall be $180.00 per hour.
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July 23. 2003. City Council (3~ Reading) -3-
SECTION 2. This Ordinance shall take effect on and after August 1, 2003.
PASSED by the City Council this 23~ day of July, 2003.
APPROVED by the Mayor this 24~ day of July, 2003.
Darlene Kordon~vy, Mayo~//
ATTEST/AUTHENTICATE:
Rosalind D. Lassoff, Deputy City Clerk
APPROVED AS TO FORM:
Rod P. Kaseguma, City Attorney
FILED WITH THE CITY CLERK: July 19, 2003
PASSED BY THE CITY COUNCIL: July 23, 2003
PUBLISHED: July 26, 2003
EFFECTIVE DATE: August 1, 2003
ORDINANCE NO. 2003-31
2003-31 (Formerly 2003-29)
July 23, 2003, City Council (3a Reading) -4-