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APPROVE MOTION TO AUTHORIZE A REFUND OF BUILDING PERMIT CHARGES - PAMELA LEE MATLOCK
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion:
1. Authorizing a refund in the amount of $22,686.76 for fees connected with a building permit paid by Pamela Lee Matlock.
2. Authorizing the City Manager to take appropriate and necessary actions to carry out the purpose and intent of the motion.
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Summary
In December 2022, Pamela Lee Matlock paid $28,489.19 in permit fees, Public Facilities Fees (PFF), and PFF administrative fees as well as $2,018.78 for plan review fees, in connection with a building permit to construct a new residence. Due to personal reasons, the applicant has decided not to move forward with the project and has requested a refund of fees paid for the building permit pursuant to the PFF refund and building permit refund processes. Because no work was completed on the permit, staff recommends that the Council approve the requested refund.
DISCUSSION
Background
On November 4, 2021, Pamela Lee Matlock paid $2,018.78 by check for plan review fees and on December 21, 2022, paid $28,489.19 by check for additional plan review fees, permit fees, and PFF fees on building permit BP21-08574. Due to personal reasons, Ms. Matlock decided to not pursue the building permit (BP21-08574) and submitted a request for refund (Attachment A). A copy of the original checks that were processed in November 2021 and December 2022 and details of the payment receipt are also included (Attachment B).
Refund Analysis
PFF fees are governed by State law, Section 16.72.260 of the Stockton Municipal Code (SMC), and City of Stockton Public Facilities Fees Guidelines.
Guidelines Section E - Refunds, provides:
"Refunds, less the administrative fee, will be made according to City procedures."
The City does not have a PFF-specific refund process but it does have a general refund process under SMC Section 3.60.020. That section requires that refunds over $20,000 be approved by City Council.
Additionally, buiding permit refunds are governed by SMC Section 15.04.280(I) which provides in subsection (2) as follows:
“The Building Official may authorize the refunding of the permit fee paid when no work has been done under a permit issued in accordance with this Code. The plan review fee shall be retained.”
Further, that section requires that all requests for refunds occur within 180-days of fee payment and any authorized extensions. Because no work was done under the permit and the permit was extended and remained in good standing, the applicant is eligible for a refund of the building permit portion of the fees.
Additionally, two fees are collected on building permits as a surcharge for State mandated programs. The “Green Building Standards Fee” is collected in accordance with SB 1473 (Calderon, Chapter 719, Statutes of 2008). The “Strong Motion Instrument Program” fee is collected for the California Strong Motion Instrumentation Program. Because these are pass-through surcharge fees collected on behalf of the State, they are not eligible for refund.
Finally, both the PFF Guidelines and SMC Section 15.04.280 authorize refunds less administrative and plan review fees. Refunds are subject to a processing fee - 10% of refund total (not to exceed $25.00).
Here, the calculated refund amount, minus administrative, plan review, pass-through fees, and refund processing fee totals $22,686.76 (see Table 1 below for a breakdown).
|
Table 1 |
|
BP21-08574 |
|
|
|
Fee Item Description |
Fees Paid |
Refund Amount |
|
Plan Review |
$ 7,285.78 |
$ 0 |
|
PFF Admin. Fees (CDD & MUD) |
$ 400.02 |
$ 0 |
|
Pass-through Fees |
$ 110.41 |
$ 0 |
|
Other Permit & PFF Fees |
$ 22,711.76 |
$ 22,711.76 |
|
Total |
$ 30,507.97 |
|
|
Refund Processing Fee |
|
$ -25.00 |
|
Total Refund |
$ 22,686.76 |
Because no work was done on the permit, staff recommends that the Council approve the refund for a total of $22,686.76.
FINANCIAL SUMMARY
The permit fees and PFF fees totaling $22,711.76, were deposited into the following accounts:
Development Services Fund (220-221)
Wastewater Fund (610-615)
PFF - Air Quality Fund (310-322)
PFF - County Facilities Fee Fund (780-786)
PFF - Regional Transportation Impact Fee Fund (310-324)
PFF - Surface Water Fund (780-786)
PFF - Traffic Signals Fund (310-311)
The refund amounts for the permit will be made from these same accounts. There is no financial impact to the General Fund. A more detailed breakdown of fees is included as Attachment C - Permit Fee Refund Breakdown.
Attachment A - Refund Request
Attachment B - Proof of Payment
Attachment C - Permit Fee Refund Breakdown