Demolition and
Renovation Fee
Revision
Presented to
2012 Asbestos NESHAP Workshop
May 22, 2012
Today’s Goals
 Explain
the background and need for
our fee analysis and revised fees
 Explain the fee structure and new fee
amounts necessary to maintain
current services and service levels
 Listen to comments and respond to
questions
MCAQ Revenue Sources

State Gasoline Tax
2010 Revenue Sources
◦ Local program share of 1/64 cent

Federal Grants
◦ CAA Section 105 & 103

Stationary Source Fees
◦
◦
◦
◦
Fees
State Gasoline Tax
Federal Grant
Title V
Minor Sources (SM, SB, B, C, General)
Stage I
NESHAP Demolition & Renovation (asbestos)
LUESA Joint Demolition Fee System
• Single fee collected to cover the cover Code
Enforcement, Environmental Health and Air
Quality costs
• Per Structure Fee – base LUESA demolition for
basic/overall program support. Base fee should provide
stable revenue source to match workload/cost. Fee to
cover base CE, EH and AQ costs
• Additional Fee – for each structure with more than the
NESHAP regulated amount of regulated asbestoscontaining material (RACM).
• Renovation Fees - For all renovations in which a
NESHAP regulated quantity of RACM is to be stripped,
removed, dislodged, cut, drilled or similarly disturbed.
Fee System Goal
•
•
•
To provide maintenance level revenue
(break even)
To continue to provide high quality
service to the regulated community
To maintain ability to provide a legal,
defensible permit and inspection program
(not to do more or build)
• No increase in number of personnel.
• No increase in operational budget.
•
To maintain revenue independence
Need for Fee Revision
Demolition fee structure has not changed since
1997
 Current fees are not covering expenses
◦ Fy08-Fy11 demo permit expenses
allocated to AQ-EH-CE
$1,027,457
◦ Fy08-Fy11 demo permit revenue
allocated to AQ-EH-CE
$870,983
◦ Net 4 year loss
$156,474

AQ FY 16 Expense v. FY11 Revenue Comparison
FY16 Projected Expense
Position Title
NESHAP (Asbestos D&R)
FTEs
Projected Cost
Environmental Specialist
0.50
$40,218
Senior Environmental Sp.
0.25
$22,221
Environmental Supervisor
Project Manager (P&E)
Admin. Assistant III
Admin Coordinator
Director
0.20
0.10
0.35
0.15
0.10
$21,068
$15,203
$21,529
$10,612
$17,106
Total Direct Personnel
Indirect Personnel
Total Personnel
1.65
$147,956
$12,508
$160,464
Operating Expenses
$17,002
Total Program Expense
$177,466
FY 2011 Revenue
$147,703
$29,763
Fee Proposal

Options Considered
◦ “As is”
◦ One shot 20% increase

Option Chosen:
◦ FY13: 10% increase
Demolition Fee Change Summary
Current
Size – Sq. Ft.
Less than 500
500 to 4,999
5,000 to 9,999
10,000 and above
Renovations
Per Structure
$100
$400
$600
$755
$300 (per project)
Additional
$0.0
$300
$300
$300
FY2013: 10% increase
Size – Sq. Ft.
Less than 500
500 to 4,999
5,000 to 9,999
10,000 and above
Renovations
Per Structure
$110
$440
$660
$825
$330 (per project)
Additional
$0.00
$330
$330
$330
Stakeholder Communications
Communications
April 17 – Presented demolition fee proposal to the
county’s Building Development Commission
for review
 April 20 – Invite to 5/21 MCAQ Annual Asbestos
NESHAP meeting
 May 21 – 2012 Asbestos NESHAP Meeting
 June 6 (proposed) – Fee presentation to the BOCC for
approval

A Local Service and Regulatory Program
Helping you breathe easy … for life