SAN FERNANDO : City Approves Cuts in Fees for Rebuilding

Property owners seeking to rebuild their earthquake-damaged structures will receive discounts on construction and utility fees from the city of San Fernando, provided they start work quickly.

The San Fernando City Council voted Tuesday night to waive all construction permit fees if owners obtain permits and start work within 45 days. The city will also waive half the sum for work started between 46 and 90 days, and 25% for work begun between 91 and 120 days.

In addition, the City Council voted to waive fees usually charged when property owners tap into water or sewer lines, and extend a grace period for monthly utility and refuse-collection charges if owners reconstruct within six months.

City officials project that they could lose $50,000 to $60,000 in utility connection fees, about $10,000 to $15,000 per month in construction charges and a small but undetermined amount in monthly utility assessments. But they are banking on benefits that could be accrued by getting properties back in business.

“The one thing we’re trying to do is encourage people to rebuild, and rebuild in a hurry,” city Finance Director Mike Moon said Wednesday. “You don’t have a blighted town, you don’t have empty lots, and you have them back on the tax rolls and sales taxes come rolling in.”

The 1% return on sales tax revenues that San Fernando receives from the state represents about a third of the city’s general fund--the part of the budget that pays for such day-to-day expenses as police patrols, according to Moon.

The council also voted to ask officials from the Los Angeles Unified School District to forgive the $1.65-per-square-foot tax it levies on all property in the county.

San Fernando’s move follows a regional trend that has emerged after the Jan. 17 earthquake. Burbank has waived all building fees for 45 days, while Pasadena and Santa Clarita have waived them until further notice. The city of Los Angeles is weighing similar action.