HUNTINGTON BEACH : Council OKs Rise in Construction Fees

Over the objections of two of its most fiscally conservative members, the City Council this week voted to increase an assortment of building and planning processing fees and establish nine new charges.

Council members voted 3 to 2 in favor of the new charges, which will take effect next month as an interim step toward reshaping a city fee schedule that officials say is outdated.

The most significant change in the new fee schedule, which affects minor home renovations as well as the construction of housing tracts, is an added planning processing fee for any new construction or renovation. The new fee will tack on a charge equivalent to 0.3% of the assessed value of the new project or addition.

For example, the new charge would mean that the cost of adding a 400-square-foot room to a house will increase 21%, from $337 to $409, according to a Planning Department analysis.

In addition, the cost of 51 service fees, ranging from obtaining a home occupation permit to processing an environmental-impact report, will increase between 9% and 328%. Eight other new fees have also been created, such as a $35 charge for each time a city staff member has to reinspect a construction project.

The council, at the prodding of City Administrator Michael T. Uberuaga, plans this fall to hire a consultant to analyze the city’s entire fee structure and bring its charges in line with what it costs to provide particular services.

Councilmen Wes Bannister and Jim Silva, who opposed the increases, argued that the council should wait for that study to be completed before changing city fees.

But Mayor Thomas J. Mays and council members John Erskine and Grace H. Winchell prevailed, agreeing with Uberuaga’s recommendation.

Uberuaga, who took over as the city’s chief executive in February, warned the council that the city could face a budget deficit of $7 million or more if it does not inflate the city’s annual income.

According to community development director Michael Adams, the city’s current fees, many of which hadn’t been updated since 1981, are among the lowest of Orange County cities.

Including the increases and new fees, which are estimated to bring the city an extra $600,000 per year, the city’s charges will remain below the county average, Adams said.