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Agenda Item # 20

BOARD MEMORANDUM

RECOMMENDATION:

Adopt a resolution modifying the existing VTA Permit Fee Schedule effective September 1, 2003 to fully recover VTA costs for issuing access and inspection permits to contractors working within VTA properties and facilities or within transit related improvements.

BACKGROUND:

At the time VTA was established, County of Santa Clara staff continued to provide access permit services for VTA.  In January 1996, VTA assumed the responsibility for providing these services and now has over five years of experience, processing permits to third parties working on or near VTA facilities.

Similar to other local municipalities, VTA issues access permits to protect VTA properties and facilities when construction activities are performed on VTA properties and facilities by outside parties, or by such parties within transit related improvements such as bus stops required to be constructed as a condition of property development.  Currently, minimal fees are being charged for these permits, and the recommended action will modify the existing fee schedule so that VTA can fully recover the actual permit processing costs expended.  In modifying this process, the attached permit fee schedule is proposed in accordance with Government Code Sections 66014 Local Agency Zoning and Permit Fees and 66016 Local Agency Fees; New Fees and Increases; Procedures.

Before modifying the proposed permit fee schedule, VTA staff researched local municipalities and similar agencies to compare permit fee schedules.  The municipalities and agencies include the following:  City of San Jose, Santa Clara County, City of Gilroy, City of Mountain View, City of Sunnyvale, City of Milpitas, City of Campbell, City of Los Altos, BART, Los Angeles Metropolitan Transportation Authority, City of San Francisco, and Southern California Regional Rail Authority (Metrolink). VTAs proposed fee schedule for the same typical project is in the top 15 percentile of the permit fee schedules researched. It should be noted that several of the municipalities and agencies researched indicated that raises in their permit fees are forthcoming. 

DISCUSSION:

This is the first permit fee increase since July 1998.  On average, the proposed fees are double the amounts charged since 1998.  Based on VTAs five years of experience, staff determined the fully allocated costs or specified fees required to process permit applications, check plans and inspect the most common types of projects. For more complex or other types of projects not covered by these specific fees, fees will be based upon the actual hours worked by each discipline multiplied by the fully allocated cost per hour for each discipline.

The proposed permit fees are based upon the fully allocated costs for issuing permits and performing inspection services to protect VTA properties and facilities and transit related improvements.

ALTERNATIVES:

An alternative would be to not charge the fully allocated cost recovery fees for these services, thereby absorbing a portion of the costs for services provided.  This alternative is not recommended because VTA cannot control the demand of outside private companies wanting to cross or work around our facilities, nor should VTA subsidize the cost of these private projects.

FISCAL IMPACT:

Revenue received from the proposed permit fees will be used to recover the fully allocated cost of VTA labor incurred in providing these services, which labor would otherwise be paid for, in part, from general revenues.

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