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File Number: 18-388 <br />processing the appeal, regardless of merit. <br />The Rules Committee supported maintaining the cost recovery policy for applicants but <br />recommended reducing the deposit amount by half, to $2,500. The Rules Committee further <br />recommended re-establishing a fixed appeal fee for non-applicants in the amount of $500, similar <br />to the amount charged by the City ten years ago. The Rules Committee discussed the feasibility <br />of retroactively reimbursing non-applicants who were previously subject to the current <br />deposit-based fee but did not reach consensus. Following a review of prior appeals, Staff found <br />only one appeal filed by a non-applicant that paid a deposit (APL18-001, Parrot Street <br />Apartments). All other prior appeals filed by non-applicants paid a fixed fee of $792 or less, <br />depending on the fee schedule in effect at the time of filing. <br />Previous Actions <br />The current fee schedule was approved by the City Council on May 1, 2018 under Resolution No. <br />2018-034. <br />Board/Commission Review and Actions <br />The City Council Rules Committee discussed appeal fees at its April 23 and June 25, 2018 <br />meetings. The Rules Committee voted unanimously to recommend establishing a fixed $500 <br />appeal fee for non-applicants in addition to the reduced $2,500 deposit for applicants on June <br />25, 2018. <br />Legal Analysis <br />The State Constitution, and Prop. 26 enables cities to defray the cost of processing applications <br />so long as the fees are reasonable and proportionate to the costs incurred. <br />Fiscal Impacts <br />Modifying or reducing the deposit for appeals filed by applicants will not have a fiscal impact. <br />Establishing a reduced $500 fixed fee for non-applicants will require the General Fund to absorb <br />the remainder of any staffing, legal and processing costs incurred. A 2016 fee study conducted by <br />ClearSource Financial Consulting estimated the Planning division’s average cost of services to <br />process an appeal was $12,408. This estimate did not include costs incurred by other <br />departments, legal counsel, or public notification. The Planning Division typically processes three <br />or four appeals each year. <br />Related Legislative Files <br />·Rules Committee Staff Report Regarding Discussion of Modifying Existing Planning <br />Appeal Fees (18-178) <br />·Rules Committee Staff Report to Follow-Up Committee's Previous Discussion of Planning <br />Appeal Fees (18-308) <br />Page 3 City of San Leandro Printed on 8/28/2018 <br />239