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