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City of San Leandro <br />Rules Committee Staff Reports <br />Civic Center <br />835 East 14th Street <br />San Leandro, California <br />Staff Report Regarding Discussion of Modifying Existing Planning Appeal Fees <br />SUMMARY AND RECOMMENDATIONS <br />Appeal fees for planning cases are a direct cost, deposit-based fee that reimburses the City for <br />hourly staff/administrative processing costs. The deposit amount is set at the average cost of <br />processing an appeal. Staff recommends the Rules Committee review the existing Planning appeal <br />fees and their justifications and provide guidance on staff’s recommended modifications to them for <br />consideration in the FY18-19 City Master Fee Schedule. <br />BACKGROUND <br />In consideration of public concerns expressed during the recent Parrott Street Apartments appeal on <br />March 19, 2018 (APL18-001), the City Council directed the Rules Committee to review the cost of <br />filing an appeal. Appeal fees are a direct cost where the appellant pays a deposit from which the City <br />deducts the hourly cost of processing. Following the outcome of the decision, the appellant either <br />receives a refund of the remaining balance or a bill if an outstanding amount is still required. The <br />Planning Division typically processes three or four appeals each year. Most appeals are filed by <br />applicants seeking to modify a condition of approval for a previously approved project, neighbors who <br />object to an approved project, or persons seeking to challenge a provision or interpretation of the <br />Zoning Code. <br />Appeal fees are identified within the City’s Master Fee Schedule, which is annually reviewed and <br />approved by the City Council in the spring as part of the budget process. Adjustments to the fee <br />schedule are also possible at other times. The current fee schedule requires a $5,300 deposit to file <br />an appeal, including a non-refundable 6% technology fee applied to all applications. Appeals heard <br />by the City Council pay an additional non-refundable $534 filing fee to the City Clerk. <br />The methodology and software currently used by Planning staff to track their time allows applicants <br />and appellants to obtain up-to-date and accurate information regarding the status of their deposit <br />balance as well as task summaries to account for each hour spent processing. The current deposit- <br />based method recoups staffing costs plus overhead, but costs related to internal legal counsel from <br />the City Attorney or the attendance of independent legal counsel during an appeal to the City Council <br />are not recovered. <br />In 2016, ClearSource Financial Consulting conducted a cost of service analysis and fee study for the <br />Community Development Department that examined the time and staffing costs involved with <br />processing different types of applications. The study’s goal was to simplify and facilitate an accurate <br />application of fees. The study recommended a number of changes to the Department’s fees, which <br />were reduced or increased accordingly. The appeal deposit was recommended to be increased from <br />$2,000 to $5,000 in order to more accurately reflect the average cost of processing. The study’s <br />File #:18-178,Version:1 <br />City of San Leandro Printed on 5/18/2018Page 1 of 3 <br />powered by Legistar™241