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HomeMy WebLinkAbout15 - Master Fee Schedule and Change in Subsidies - Correspondence Received After Agenda Printed September 22. 2015 Item No. 15 Building Industry Association of Southern California, Inc. BIH ORANGE COUNTY CHAPTER September 22, 2015 Mayor Edward Selich Honorable City Councilmembers City of Newport Beach PRESIDENT JOAN MARCUS-COLVIN 100 Civic Center Dr. THE NEW HOME COMPANY Newport Beach, CA 92660 VICE PRESIDENT JIM YATES RANCHO MISSION VIEJO Re: Master Fee Schedule Update TREASURER PHIL BODEM Dear Mayor Selich and Honorable Councilmembers: TAYLOR MORRISON SECRETARY KE On behalf of our membership, I would like to express our comments regarding MI KB HOME GARTI-A" the proposed Master Fee Schedule update. IMMEDIATE PAST PRESIDENT DONNA KELLY LENNAR The Building Industry Association of Southern California, Orange County Chapter (BIA/OC is a non-profit trade association of over 1,100 companies TRADE CONTRACTOR V.P. p ` ) p p ALAN BOUDREAU employing over 100,000 people affiliated with the home building industry. The BOUDREAU PIPELINE CORPORATION Orange County Chapter represents the largest member base within BIA ASSOCIATE VICE PRESIDENT K HIMMLSTEI Southern California. Our mission is to champion housing as the foundation of N MEYER&DELLIONNLLP vibrant and sustainable communities. MEMBER-AT-LARGE MIKE MCMILLEN TRI POINTE HOMES According to a recent report, Orange County's median home price is at a record high$713,000. This is largely due to 1) lack of adequate housing stock, 2) a jobs "SCOETB ARKEY T.LARGE to housing imbalance, and 3) lack of available land coupled with excessive STARKEY COMMUNICATIONS regulation on the housing industry. Additionally, a recent Pt. Loma Study of CHIEF EXECUTIVE OFFICER San Diego County indicates that up to 40% of a home's total price can be MICHAEL BALSAMO directly linked to local public policy decisions and regulatory delay. We would anticipate that there are likely some corollaries for public agencies in Orange County. Increasing fees will only contribute to rising home prices and rental rates. We encourage all public agencies including the City of Newport Beach to work for the most time efficient review process possible and to minimize administrative overhead costs. Based on the information provided by the City, staff is recommending a 53.02% increase in the hourly staff rate. The level of increase as indicated in the staff report is significant and would index Newport Beach as having one of the 24 Executive Park, Suite 100 highest hourly rates in the County at up to$228 per hour. The departmental Irvine, California 92614 and city wide overhead components of the rate equate to approximately$120 949.553,9500 above the salary and benefits factor. If the City Council is inclined to raise the fees to the extent proposed by staff,we would request that the increase be phased in as recommended in the staff report. Implementing the increase on a gradual basis softens project financial impacts over a reasonable period of time and allows the development community to plan and adjust. We appreciate the professional dialogue we have had with City staff on this issue and we sincerely appreciate the City's proposed phase in compromise. Thank you for your thoughtful consideration. Respectfully, Michael Balsamo Chief Executive Officer