SAN CLEMENTE : High Development Fees May Go Higher

Development fees in this city, already the highest in Orange County, could be boosted even higher under a new rate structure adopted Wednesday by the City Council.

Principal planner Bob Goldin said flat fees charged in advance for planning services often exceeded the real cost, requiring extra staff time to process refunds. The fees are charged to people applying for building permits and a variety of other documents needed to develop their land.

Under the new fee system, a rate of $37 per hour of city staff time will be charged to applicants, according to a report by planning analyst John Armington.

The new rates culminate a one-year study aimed at shifting from advance, deposit-style fees to a flat, hourly charge, Goldin said.

Although building industry officials said the hourly rate is not excessive, they agreed that average costs could increase if the council adopts a second phase of the study that would apply the hourly fee to other departments that do not now charge for development-related service. These departments include engineering, water, sewers, the city attorney and the city manager’s office.

San Clemente’s current developer fees average about $20,000 per house, topping the list on an annual survey by the Orange County Building Industry Assn.

“Historically, San Clemente has had the highest fees in the county,” said Phillip Bettencourt, a consultant to the Building Industry Assn. “My recollection is that the highest hourly rate is in the city of Irvine. At least this ($37) fee appears to be based on the cost of doing business.”

The new fee system is expected to generate $64,000 in annual revenue, according to Armington’s report.