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APPROVE MOTION TO AUTHORIZE A REFUND OF BUILDING PERMIT CHARGES - ANAN FAIDI
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion:
1. Authorizing a refund in the amount of $55,635.22 for fees connected with two Building permits paid by Anan Faidi, M.D.; and
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 June 2016, Anan Faidi paid $85,471.56 in permit fees, Public Facilities Fees (PFF), and PFF administrative fees as well as $1,937.64 for Plan review fees, in connection with three building permits. Due to financial hardship, the applicant is only able to continue with the construction of one of the three projects and has requested a refund of fees paid for two of the three building permits pursuant to the PFF refund and Building Permit refund processes. Because no work was done on either permit, staff recommends that the Council approve the requested refunds.
DISCUSSION
Background
On June 16, 2016, Anan Faidi paid $85,471.56 by check for permit fees and PFF fees on three permits; BP16-03181, BP16-03183, and BP16-03185. Due to financial hardship, Mr. Faidi decided to pursue only one of the building permits (BP16-03135) and submitted a request for refund in the amount of $28,490.52 on each of the other two permits (BP16-03181 and BP16-03183) for a total of $56,981.04. (Attachments A and B). A copy of the original check that was processed in June of 2016 and details of the payment receipt are also included. (Attachment C).
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 doees 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 which provides 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 permits and a request for refund was submitted within 180 days, the applicant is eligible for a refund of the building permit portion of the fees.
Finally, both the PFF Guidelines and SMC 15.04.280 auithorize refunds less administrative and Plan Review fees.
Here, the calculated refund amount, minus administrative and plan review fees, amounts to $27,817.61 per requested refund (see Tables 1 and 2 below for a breakdown of each permit refund).
|
Table 1 |
|
BP16-03181 |
|
|
|
Fee Item Description |
Fees Paid |
Refund Amount |
|
Plan Review |
$ 1,937.64 |
$ 0 |
|
PFF Admin. Fees (CDD & MUD) |
$ 672.91 |
$ 0 |
|
Other Fees |
$ 27,817.61 |
$ 27,817.61 |
|
Total |
$ 30,428.16 |
|
|
Total Refund |
$ 27,817.61 |
|
Table 2 |
|
BP16-03183 |
|
|
|
Fee Item Description |
Fees Paid |
Refund Amount |
|
Plan Review |
$ 1,937.64 |
$ 0 |
|
PFF Admin. Fees (CDD & MUD) |
$ 672.91 |
$ 0 |
|
Other Fees |
$ 27,817.61 |
$ 27,817.61 |
|
Total |
$ 30,428.16 |
|
|
Total Refund |
$ 27,817.61 |
Because no work was done on either permit, staff recommends that the Council approve both refunds for a total of $55,635.22.
FINANCIAL SUMMARY
The permit fees and PFF fees totaling $85,471.56, were deposited into the following accounts:
Development Services Fund (048)
Water Connection Fund (424)
Delta Water Supply Fund (425)
Sanitary Connections Fund (434)
PFF - Surface Water (687)
Misc. Agency Fund (689)
PFF - Traffic Signals (90x)
PFF - RTIF (970)
PFF - Air Quality (990)
The refund amounts for both permits will be made from these same accounts. There is no financial impact to the General Fund. A more detailed breakdown of fees for both permits is included as Attachment D - Permit Fee Refund Breakdown.
Attachment A - Refund Request and Fee Details BP16-03181
Attachment B - Refund Request and Fee Details BP16-03183
Attachment C - Proof of Payment
Attachment D - Permit Fee Refund Breakdown