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Fire Development Impact Fee Increase

1/22/2021

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A PUBLIC HEARING for a proposed increase to the Fire Development Impact Fee was held during the Sierra County Board of Supervisors’ meeting on Tuesday, January 19th virtually. Planning Director Tim Beals reported that the process started with the Board about three months ago. Sierra County Fire Protection District No. 1 has a fire mitigation fee in place. The Building Department collects the fee as part of the building permit process and the money is transferred to the Fire District. Beals stated this was not a fee applied to existing property, it only applies to new development. The Fire District commissioned a consultant to put forward a new capital improvement plan and new schedule of fees. Beals said the Board was originally concerned over the amount of the fee and the fee escalation over the next five years. Tom Archer, a representative from the Fire District, stated there was a consensus that it be presented as formatted. He said the fee was to be adopted by resolution. Archer emphasized this was done with scrutiny and $1.90 per square foot was appropriate and the escalator was reasonable and would remain in effect until further review in five years. Supervisor Sharon Dryden felt the increase was reasonable, but wanted Archer to give the pros and cons of the built-in escalator. Archer responded a pro is to try to keep pace with inflation, adding it was a very low rising escalator. Personally he didn’t see a down side to the escalator and felt it was financially judicious to include it.  
Board Chair Lee Adams opened the public hearing, and with no public comments the public hearing was closed.  
Supervisor Paul Roen asked for updated numbers as to what the escalator will do. Archer said 3% increase would be $1.957. Roen stated it would compound on an annual basis for five years. He said his concern was the very uncertain times they were in, adding he had no problem supporting $1.90; it’s what happens after year to year.
Dryden asked how hard it would it be to be brought back each year for approval. She stated it’s very restrictive to build right now and was uncomfortable with the built-in escalator.
Archer stated they had to go through a process and public hearing to adopt any fees or charges and each time you want to review it you have to go back through that process. He felt it was a very reasonable fee for five years. Dryden asked when was the $1.25 adopted. Archer thought it was in the 1980’s. Roen said it was 2011.
Beals suggested to build in a process for the Board to review each increase before it gets implemented. This way it’s a checkpoint to see if the increase is warranted. County Counsel Margaret Long stated this could be done on a yearly basis and felt it was a good way to do it. Having an automatic escalator with board review could be done, and at the annual review the board has the authority to increase or decrease. Archer stated the District provides an annual report with how those fees have been utilized.
Roen would like to set the fee increase the same time the annual report is done. Changes were made to the Resolution, which was adopted unanimously as amended.


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