HomeMy WebLinkAbout4.4 Accessory Dwelling Unit Permit Fee WaiversSTAFF REPORT
CITY COUNCIL
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Agenda Item 4.4
DATE:December 7, 2021
TO:Honorable Mayor and City Councilmembers
FROM:Linda Smith, City Manager
SUBJECT:Accessory Dwelling Unit Permit Fee WaiversPrepared by:Michael P. Cass, Principal Planner
EXECUTIVE SUMMARY:The City Council will consider adopting changes to the Master Fee Schedule pertaining to permit fee waivers to facilitate the production of Accessory Dwelling Units (ADUs) throughout the community for a period of five years.
STAFF RECOMMENDATION:Adopt the Resolution Amending the Master Fee Schedule to Waive Certain City Permit Fees for Accessory Dwelling Units (ADUs) Less Than 750 Square Feet and ADUs 750 Square Feet or Larger that are Deed-Restricted as Lower-Income Units.
FINANCIAL IMPACT:If the City Council decides to waive certain permit fees, there will be an impact on the General Fund depending on the number of building permits issued for ADUs over the next five years.
DESCRIPTION:The City Council’s Strategic Plan includes an objective to facilitate the production of ADUs throughout the community. Accordingly, Staff and the City’s consultant team prepared an ADU Manual and Prototype Plans to facilitate the construction of ADUs and reduce the cost and time for homeowners to prepare their own plans. On September 7, 2021, the City Council received an informational report on the ADU Manual and Prototype Plans, and potential permit fee reductions and/or waivers to facilitate the production of ADUs throughout the community (Attachment 2). At the meeting, the City Council directed Staff to return with an item amending the Master Fee Schedule to waive certain City permit fees for a period of five years for ADUs less than 750 square feet and ADUs 750 square feet or larger that are deed-restricted as lower-income units.
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Table 1 below provides a summary of current permit fees that apply to ADUs. The proposal is to waive these permit fees for a period of five years, except for the State surcharges for SMIP and Green Building Fees, and the Zone 7 fees, which may not be adjusted. This waiver of permit fees would not apply to ADUs built to satisfy obligations under the Inclusionary Zoning Regulations and/or would not apply to enforcement fees.Table 1: Current Permit Fees for ADUsPermit Fee Description Fee AmountPermit Application Fee Based on Valuation of ProjectBuilding Permit Fee Based on Valuation of ProjectFire -Plan Check $307.00 per unitPlanning –Plan Check $147.00 per unitPublic Works –Plan Check $616.00 per unitC & D Compliance Fee $229.00 per unitAddress Request $122.00 per unitCalifornia Strong Motion Instrumentation Program (SMIP) Surcharge –Residential $0.13 per $1,000California Green Building Valuation Surcharge $1.00 for each $25,000 or fraction thereofZone 7 Impervious Square Feet $1.00 per square foot of new impervious surfacesStaff proposes to amend the Master Fee Schedule to add the following footnote to Section 4.1: Fire Prevention Services Plan Review and Inspection, Section 6.2: Other Planning Fees, Section 7.1: Building and Safety Division – Building Permits (Total Valuation), Section 7.7: Building and Safety Division – Other Fees, and Section 8.1: Engineering/Public Works – Other Fees:***In order to incentivize accessory dwelling units (ADUs): 1) an ADU less than 750 square feet; and 2) ADUs 750 square feet or larger that are deed-restricted as lower-income units for a period of 55 years are not subject to these City permit fees, effective for building permits applied for between January 1, 2022, and December 31, 2026. ADUs required to satisfy Chapter 8.68 (Inclusionary Zoning Regulations) of the Dublin Municipal Code, the scope of work beyond the establishment of the ADU, and/or enforcement fees are not eligible for this fee waiver. In addition, Staff proposes to amend the Master Fee Schedule to add the following footnote to Section 7.5: Building and Safety Division – Construction Debris and Demolition:**** Waived for ADUs less than 750 square feet and ADUs 750 square feet or larger that are deed- restricted as lower-income units for a period of 55 years, if a homeowner/contractor agrees to use AVI for handling construction and demolition debris, rather than self-haulers, effective for building permits applied for between January 1, 2022, and December 31, 2026. ADUs required to satisfy Chapter 8.68 (Inclusionary Zoning Regulations) of the Dublin Municipal Code and the scope of work beyond the establishment of the ADU are not eligible for this fee waiver.
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Staff recommends that the City Council adopt the attached Resolution amending the Master Fee Schedule to reflect these proposed changes (Attachment 1).
STRATEGIC PLAN INITIATIVE:Strategy 3: Create more affordable housing opportunities.Objective C: Facilitate the production of accessory dwelling units throughout the community.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:The City Council Agenda was posted.
ATTACHMENTS:1) Resolution Amending the Master Fee Schedule to Waive Certain City Permit Fees for Accessory Dwelling Units (ADUs) Less Than 750 Square Feet and ADUs 750 Square Feet or Larger that are Deed-Restricted as Lower-Income Units2) September 7, 2021 City Council Staff Report (without attachments)
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Attachment 1
RESOLUTION NO. 21-XX
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
AMENDING THE MASTER FEE SCHEDULE TO WAIVE CERTAIN CITY PERMIT FEES FOR
ACCESSORY DWELLING UNITS (ADU) LESS THAN 750 SQUARE FEET AND ADUS 750
SQUARE FEET OR LARGER THAT ARE DEED-RESTRICTED AS LOWER-INCOME UNITS
EFFECTIVE CITY-WIDE
WHEREAS,the California Constitution authorizes local governments to recover the
reasonable costs of providing services; and
WHEREAS,the City processes various permits, applications, and licenses; and
WHEREAS,on June 15, 2021, the Dublin City Council adopted Resolution No. 80-21,
adopting an annual update to the Master Fee Schedule for services provided to the City, effective
July 1, 2021; and
WHEREAS, the City Council 2020-2022 Strategic Plan includes Objective 3C to “facilitate
the production of accessory dwelling units throughout the community;” and
WHEREAS, on September 7, 2021, the City Council provided direction to Staff on fee
waivers to facilitate the production of ADUs; and
WHEREAS,pursuant to California Environmental Quality Act (CEQA) and CEQA
Guidelines Section 15378(b)(4), revising fees is not a project and, therefore, is exempt from the
requirements of CEQA.
NOW, THEREFORE, BE IT RESOLVED that the foregoing recitals are true and correct
and made a part of this Resolution.
BE IT FURTHER RESOLVED that the Dublin City Council adopts amendments to the
Master Fee Schedule by adding the footnotes below to the following sections:
Section 4.1: Fire Prevention Services Plan Review & Inspection
#Plan Review & Inspection Description / Unit Fee
246 Custom Single-Family Residence ***Per application $307.00
Section 6.2: Other Planning Fees
#Item / Service Description / Unit Fee
621 Building division permit referral ***Per application $147.00
Section 7.1: Building and Safety Division –Building Permits (Total Valuation)
#Building Permits Based on
Valuation Formula / $
Valuation ***
Description / Unit Fee
700 $0-$500 Per calculated valuation $50.00
701 $501-$1,000 Per calculated valuation $109.00
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Reso. No. XX-21, Item X.X, Adopted XX/XX/21 Page 2 of 3
702 $1,001-$2,000 Per calculated valuation $168.00
703 $2,001-$3,000 Per calculated valuation $230.00
704 $3,001-$4,000 Per calculated valuation $261.00
705 $4,001-$5,000 Per calculated valuation $318.00
706 $5,001-$10,000 (first $5,000)Per calculated valuation $318.00
707 $5,001-$10,000 (each additional
$1,000)
Per calculated valuation $55.00 for ea. $1,000
or fraction thereof
708 $10,001-$50,000 (first $10,000)Per calculated valuation $593.00
709 $10,001-$50,000 (each
additional $1,000)
Per calculated valuation $30.00 for ea. $1,000
or fraction thereof
710 $50,001-$100,000 (first $50,000)Per calculated valuation $1,793.00
711 $50,001-$100,000 (each
additional $1,000)
Per calculated valuation $29.00 for ea. $1,000
or fraction thereof
712 $100,001-$500,000 (first
$100,000)
Per calculated valuation $3,243.00
713 $100,001-$500,000 (each
additional $1,000)
Per calculated valuation $23.00 for ea. $1,000
or fraction thereof
714 $500,001 and up (first $500,000)Per calculated valuation $12,443.00
715 $500,001 and up (each
additional $1,000)
Per calculated valuation $13.00 for ea. $1,000
or fraction thereof
Section 7.5: Building and Safety Division –Construction Debris & Demolition
#Item / Service Description / Unit Fee
772 Residential non-bonded project
****
Per application $229.00
Section 7.7: Building and Safety Division –Other Fees
#Item / Service Description / Unit Fee
791 Address Requests (single address) ***Per Request $122.00
Section 8.1: Engineering / Public Works -Other Fees
#Item / Service Description / Unit Fee
822 Building division permit referral –
residential ***
Per application $616.00
***In order to incentivize accessory dwelling units (ADUs): 1) an ADU less than 750 square feet;
and 2) ADUs 750 square feet or larger that are deed-restricted as lower-income units for a period
of 55 years are not subject to these City permit fees, effective for building permits applied for
between January 1, 2022, and December 31, 2026. ADUs required to satisfy Chapter 8.68
(Inclusionary Zoning Regulations) of the Dublin Municipal Code, the scope of work beyond the
establishment of the ADU, and/or enforcement fees are not eligible for this fee waiver.
**** Waived for ADUs less than 750 square feet and ADUs 750 square feet or larger that are deed-
restricted as lower-income units for a period of 55 years, if a homeowner/contractor agrees to use
AVI for handling construction and demolition debris, rather than self-haulers, effective for building
permits applied for between January 1, 2022, and December 31, 2026. ADUs required to satisfy
Chapter 8.68 (Inclusionary Zoning Regulations) of the Dublin Municipal Code and the scope of
work beyond the establishment of the ADU are not eligible for this fee waiver.
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Reso. No. XX-21, Item X.X, Adopted XX/XX/21 Page 3 of 3
PASSED, APPROVED AND ADOPTED this 7th day of December 2021 by the following
vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
City Clerk
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STAFF REPORT
CITY COUNCIL
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DATE: September 7, 2021
TO: Honorable Mayor and City Councilmembers
FROM: Linda Smith, City Manager
SUBJECT: Informational Report on Accessory Dwelling Unit Prototype Plans and
Manual and Potential Fee Reductions and/or Waivers
Prepared by: Michael P. Cass, Principal Planner
EXECUTIVE SUMMARY:
The City Council will receive an informational report on the Accessory Dwelling Unit (ADU)
Prototype Plans and Manual, and potential permit fee reductions and/or waivers to facilitate
the production of ADUs throughout the community.
STAFF RECOMMENDATION:
Receive report on the ADU Prototype Plans and Manual and provide direction to Staff on
potential fee waivers to facilitate the production of ADUs.
FINANCIAL IMPACT:
The costs associated with preparation of the ADU Prototype Plans and Manual are funded by a
Senate Bill 2 grant. If the City Council decides to reduce and/or waive certain permit or impact
fees, then there will be an impact on the General Fund and potentially the Capital
Improvement Program budget.
DESCRIPTION:
The City Council’s Strategic Plan includes an objective to facilitate the production of accessory
dwelling units (ADUs) throughout the community. In June 2020, the City Council approved a
consulting services agreement with RRM Design Group to prepare the ADU Prototype Plans
and Manual to help facilitate the construction of ADUs and eliminate the cost and time for
homeowners to prepare their own plans.
Accessory Dwelling Unit Prototype Plans
Staff is working with RRM Design Group, an architectural consulting firm, to prepare “permit
Attachment 2
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ready” ADU prototype plans. There will be eight different plans, including five ADUs designed
to be either attached or detached ADUs and three plans for converting a garage to an
ADU. The prototype plans include studio, one-bedroom, and two-bedroom ADUs that range in
size from 180 to 973 square feet. The ADUs will each be available in three different
architectural styles: Spanish, Traditional, and Modern; however, the exterior colors,
materials, and architectural style of attached ADUs will be required to match the primary
residence. Figure 1 below provides example renderings of a detached ADU in the three
architectural styles.
Figure 1: ADU Prototype Renderings
“Permit ready” plans, which are ADU floor plans, elevations, electrical and plumbing plans,
structural calculations, and preliminary energy calculations that have been reviewed for
compliance with all required building codes, will be provided by the City to homeowners at
no charge. The homeowner will still be responsible for preparing site-specific plans, such as a
site plan and geotechnical report. The ADU prototype plans will also be designed with some
ability for customization, such as selecting a window or door in a particular location. Figure 2
below provides an example floor plan with notes about potential customization options.
Figure 2: ADU Prototype Floor Plans
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To limit the construction costs of ADUs, the prototype plans are designed with a simple
design. Refer to Attachments 1 and 2 for example draft ADU prototype plans.
Accessory Dwelling Unit Manual
To supplement the prototype plans, Staff and RRM are preparing an ADU Manual, which is a
how-to guide for ADUs. The Manual is designed for homeowners who are not familiar with
the development process. Contents of the ADU Manual include: an explanation about ADUs,
process timelines, design concepts, summary of building codes and zoning standards, cost
considerations, the permitting process, definitions, and resources. Figure 3 below shows
excerpts of the ADU Manual:
Figure 3: ADU Manual Excerpts
Cost Savings to Facilitate ADUs
The construction of an ADU includes both soft costs and hard costs. Soft costs include, but are
not limited to, financing and interest, architectural/design services, structural engineering
services, soils engineering services, energy documents, permitting fees, impact fees, and
utility connection and capacity fees. Hard costs include, but are not limited to, demolition,
site preparation, materials, labor, and landscaping.
The prototype plans will reduce the soft costs and save homeowners approximately $15,000 in
architectural/design services, structural engineering services, and energy document
preparation, as well as time. These plans have been reviewed by the Building and Safety
Division to ensure compliance with building code requirements, which will reduce review
time and associated costs.
To further assist in reducing the soft costs associated with building an ADU, the City could
consider reducing and/or waiving permit fees. Table 1 below provides a summary of current
permit fees for ADUs.
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Table 1: Current Permit Fees for ADUs
Permitting Fee Description Fee Amount
Permit Application Fee Based on Valuation of Project
Building Permit Fee Based on Valuation of Project
Fire - Plan Check $307.00 per unit
Planning – Plan Check $147.00 per unit
Public Works – Plan Check $616.00 per unit
C & D Compliance Fee $229.00 per unit
California Strong Motion Instrumentation
Program (SMIP) Surcharge – Residential
$0.13 per $1,000
California Green Building Valuation
Surcharge
$1.00 for each $25,000 or fraction thereof
Zone 7 Impervious Square Feet $1.00 per square foot of new impervious
surfaces
For illustrative purposes, Table 2 below provides examples of the permit fee totals for ADUs
of different sizes based on estimated valuation.
Table 2: Example Permit Fee Totals for ADUs
Scope of Work Fee Amount
400-Square-Foot Garage Conversion $2,930.71
400-Square-Foot Detached ADU $3,509.27
700-Square-Foot Detached ADU $4,837.47
850-Square-Foot Detached ADU $5,393.57
To reduce these costs, the City Council could consider reducing or waiving these fees, except
for the State surcharges for SMIP and Green Building Fees, and the Zone 7 fees, which may
not be adjusted. The C & D Compliance Fee could be waived if a homeowner/contractor
agrees to use AVI for handling construction and demolition debris, rather than private waste
haulers. Staff recommends that the City Council consider waiving permit fees through
January 1, 2025 (concurrent with State law regarding impact fees as further discussed below),
for ADUs less than 750 square feet and ADUs 750 square feet or larger that are deed restricted
as lower-income units. This would incentivize ADU construction, particularly smaller ADUs,
and assist the City in meeting its Regional Housing Needs Allocation (RHNA) for lower-
income units.
Impact fees are fees that are imposed by the City on a development project to pay for all or a
portion of the costs of providing particular public services. Per State law, effective January 1,
2020, through January 1, 2025, ADUs less than 750 square feet are not subject to impact fees
and ADUs 750 square feet or larger are subject to impact fees proportional to the primary
dwelling unit. Table 3 below provides a summary of impacts fees for ADUs 750 square feet or
larger.
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Table 3: Impact Fees for ADUs 750 Square Feet or Larger
Impact Fee Description Fee Amount1
Public Facility Impact Fee $16,832.00
Fire Impact Fee $123.00
Traffic Impact Fee
Eastern Dublin (outside Transit Center)
Eastern Dublin (inside Transit Center)
Western Dublin
Dublin Crossing
$7,572.00
$5,385.00
$3,384.00
$5,685.00
Eastern Dublin Freeway Interchange Fee (City of
Pleasanton)
$216.99
Eastern Dublin Noise Mitigation Fee $2.85
$20,558.84 - $24,746.84
In surveying other Tri-Valley cities, the City of Pleasanton, in January 2021, reduced their
Capital Facility Fee and Transportation Development Fees by 75% for ADUs 750-1,000 square
feet and by 50% for ADUs over 1,000 square feet. Livermore, San Ramon, and Danville have
not implemented any impact fee reductions. Tri-Valley cities have not reduced their
permitting fees, except for Danville which passes on a savings to homeowners of
approximately $1,000 to $1,500 via the use of their ADU prototype plans. In addition, the
County of San Diego waived all permitting fees and impact fees for five years, which expires
in 2024. The City of Vista and the County of Marin waived impact fees for deed-restricted
affordable ADUs. Reductions or waivers to impact fees requires the preparation of an updated
impact fee study to assess how the reduced fee could impact particular public services. The
City plans to conduct impact fee studies on the Public Facility Impact Fee and Traffic Impact
Fees in the next one to two years, where the City will evaluate potential reductions to the
aforementioned fees for ADUs.
In addition to City impact fees, applicants are required to pay connection fees and capacity
charges to the Dublin San Ramon Services District (DSRSD). Connection fees and capacity
charges are one-time fees assessed on the customer that reflect the reasonable cost of water
and sewer service and maintenance. The fees for ADUs are $10.35 per square foot over 150
square feet, not including existing square footage that is converted to an ADU. Additionally,
DSRSD’s plan review fee is $465. Proposition 26 prohibits subsidizing connection and capacity
fees of any kind. There also are fees associated with installing a water meter. Homeowners
may reduce the cost of building an ADU by not installing a separate water meter. The
smallest-sized meter available is 5/8-inch, which costs $13,963 for DSRSD plus $29,440 for
Zone 7, totaling $43,403.
1 The impact fees are the fee included in Table 3 or the proportional calculation when compared to the primary
dwelling unit, whichever is less.
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The Dublin Unified School District charges School Impact Fees of $6.03 per square foot for
residential development. Per State law, the fee is waived for ADUs less than 750 square feet.
The School District adjusts the fee annually based on a five-year student enrollment
projection and facility needs.
Staff is seeking feedback and direction from the City Council on the proposed permit fee
waivers. Following the meeting, Staff will work with RRM to refine and finalize the prototype
plans and Manual and return with a resolution to amend the Master Fee Schedule
accordingly.
STRATEGIC PLAN INITIATIVE:
Strategy 3: Create more affordable housing opportunities.
Objective C: Facilitate the production of accessory dwelling units throughout the community.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
The City Council Agenda was posted.
ATTACHMENTS:
1) Example Draft ADU Prototype Plan - Detached
2) Example Draft ADU Prototype Plan – Garage Conversion
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