Resolution 2020-052 adopting updated fees, as recommended by the Forest and Beach Commission, for Tree Pruning Permits, Tree Removal Permits, Tree-related Appeals to the Forest and Beach Commission, and Tree-related Appeals and to City Council, effective September 3, 2020

Adopt Resolution 2020-052 approving a new flat fee of $245 for tree pruning permits, a new, tiered, fee structure for tree removal permits, no fee pruning and removal permits for private parties working on a City-owned tree, at their sole expense and under the direction of the City Forester, a new flat fee of $1,425 for tree appeals to the Forest and Beach Commission, and a new flat fee of $1,425 for tree appeals to the City Council.

In August 2015, the City hired Revenue and Cost Specialists, LLC (“RCS”) to prepare a cost of services study (“Study”). RCS calculated the City’s cost of providing services to customers, or users, of the services. For these services, the user is charged a fee for the service, such as the issuance of a permit or license, which benefits the user. The service may be withheld if payment is not received, and thus, these services may be considered “personal choice services.” The City is legally allowed to recover its cost of providing the service from the user through a fee or charge for service. Cost recovery for services allows for more equitable financing as the user pays for the service rather than the cost of the services being funded, or subsidized, by other general purpose revenue. 

The Study recommended fees for services based upon full cost recovery.  Initially, staff incorporated recommendations provided by Council into the proposed fee schedule first adopted in September 2016, and subsequently adjusted the fees annually for inflation in accordance with City policy. In 2019, the City retained RCS to prepare an update to the original Study in accordance with City policy that stipulates fees should be reviewed at least every three years. The update commenced in the autumn of 2019 and involved the consultant revising the City’s costs of providing services based upon staff salaries, benefits, and other allowable overhead expenses, and interviewing City staff regarding the processes involved in completing these activities. The final report was completed in March 2020.

Detailed information regarding the fees calculated by RCS in the Updated Study is available in Attachment #2.

At the May 5, 2020 meeting, the City Council adopted Resolution 2020-030 approving a schedule of fees for Fiscal Year 2020-2021 for Administrative Services, Community Activities, Community Planning and Building, Public Safety, and Public Works Services, except for four (4) fees for tree permits and appeals.  All remaining fees became effective on July 1, 2020. Council directed staff to seek input from the Forest and Beach Commission regarding these four (4) fees related to tree permits and appeals.

Tree Pruning and Removal Permits

The RCS Study Update proposed fees for tree pruning and tree removal permits were significantly greater than the current fees. One reason for the increased cost was that a "one size fits all" approach was overly conservative when trying to capture the full cost for more complicated permits, while being unreasonably high for simple, straight-forward permits. Also, in the past, an evaluation of a tree was performed by Forestry staff without charge and prior to a permit being applied for. Then, the amount of time needed for the permit review was reduced because most field and administrative work associated with a tree permit was already performed and charged to the General Fund. The City Council questioned the significant increases in the fees included in the RCS Study Update and sought input from the Forest & Beach Commission.

In addition to the duties of the City Forester in managing tree pruning and removal permits and coordinating development projects with the Community Planning and Building Department, architects, and contractors, there are other colleagues in Public Works that usually get involved to support the Forester. For example, the Public Works Superintendent reviews traffic control plans and field traffic control set ups for pruning or removals along arterial streets or the truck/bus routes, coordinating any impacts associated with work in the public right-of-way, accepting or rejecting wood chips at the Rio Park site, etc.  A Senior Maintenance Worker supports the Forester, Superintendent, and/or the Public Works Director by providing an initial evaluation in the absence of the Forester, for emergency response, and with field status updates. The Public Works Director's role is to oversee all department operations, resolve conflicts associated with permit processing, fee collection, and complaints, and rule on unique problems encountered.

Tree Pruning Permits:

The following table identifies the current tree pruning permit fee of $235, and the proposed RCS Study Update permit fee of $600. 

Based on a more detailed review of the number of hours to process most pruning permits, Staff's new recommended fee is $245. This is a $10 increase for tree pruning permits from the existing fee and is recommended to be a flat fee for all tree pruning permits.  The Forest & Beach Commission concurred at their June 11, 2020 meeting.

Tree Removal Permits:

The next table below identifies the current permit fees of $235 for removal of a City tree or for a removal permit not associated with construction, and a $435 fee for a tree removal permit associated with construction. The proposed RCS Study Update permit fee lumped all tree removal permits into one conglomerate process which resulting in a very conservative fee of $1,170.

During this analysis, staff developed and recommended that tree removal permits, as well as tree pruning permits, requested by a private citizen to remove a City-owned dead, hazardous, diseased, or infected tree in the public right-of-way, removed at their expense and in accordance with the City Forester direction, should be required to obtain a removal permit but should not have to pay a permit fee. Although rare, these citizens are helping the City, and their services should be appreciated rather than assessed with a permit fee as has been past practice.  

A phased, or tiered, approach appears to be the best, overall "fit" for tree removal permits for Carmel. First, most private tree removal permits start with a request from a citizen for the City Forester to evaluate the tree at the site to determine if the Forester will allow for removal. For many years, the Forester performed this service, including meeting with the property owner, assessing the tree, documenting the inspection, and sending a follow-up letter to the applicant, all prior to any fees being collected. This approach resulted in the City's general fund subsidizing the full cost of preliminary review and site inspection, and also resulted in low permit removal application costs because much of the field work was already completed before the permit was even applied for. As shown in the following table, a new fee of $245 is recommended for processing the initial phase of a removal permit, whether or not a tree is subsequently authorized for removal by the City Forester or Commission.

The next fee represents the time and effort required to process tree removal permits for one through five tree removals, at an additional fee of $340, or for the additional time and effort when six or more trees are requested to be removed, for an additional fee of $585. The preliminary Forester review fee of $245 is the first step whether or not any trees are actually removed. The Forest & Beach Commission concurred at their June 11, 2020 meeting.

CMC 17.48.150 includes fines for removing, pruning, or cutting a tree without a permit.

Tree-Related Appeals to the Forest and Beach Commission and City Council

The RCS Study's proposed a new fee for Tree Appeals to the Forest and Beach Commission of $2,315 was much higher than the current fee of $1,375.  The Study also proposed a new fee for Tree Appeals to the City Council of $2,050 versus the current fee of $1,375. The main reason for the increased costs is that a "one size fits all" approach was overly conservative when trying to fully capture the cost for more complicated tree removal appeals, while being unreasonably high for simple, straight-forward appeals.

To process appeals, the City Forester prepares the staff reports and exhibits for the Commission and Council packets, coordinates with other departments, the applicant, and contractors, and recommends site-specific mitigation. The Administrative Coordinator supports the Forester, places reports and attachments in the records management system, takes notes and prepares the meeting minutes for the Commission. The Public Works Director checks draft reports, considers potential questions, resolves conflicts associated with appeal processing, fee collection, and complaints, and identifies issues that should be presented to the Forest and Beach Commission and/or other commissions.

Tree Appeals to the Forest and Beach Commission:

The next table below identifies the current appeal fee of $1,375, and the proposed RCS Study update fee of $2,315 based on the worst case, conservative approach. 

Based on a more detailed review of the actual number of hours needed to process an average tree appeal to the Forest and Beach Commission, Staff's new recommended fee is $1,425. This is an increase of $50 from the existing fee. At their July 9, 2020 meeting, he Forest and Beach Commission concurred with this fee.

Appeal to Forest & Beach Commission

Appeals to the City Council:

The last table below identifies the current appeal fee of $1,375, and the proposed RCS Study Update fee of $2,050 based on the worst case, conservative approach. Based on a more detailed review of the actual number of hours needed to process an average tree appeal to the City Council, the new recommended fee is $1,425. This is an increase of $50 from the existing fee. Because the hours and staff needed to process these appeals are different, it is a mere coincidence that the new recommended fee for both appeals are $1,425. At their July 9, 2020 meeting, the Forest and Beach Commission concurred with this fee.

The existing fee for Tree Pruning Permits is $235, and the proposed fee will be $245.

The existing fees for Tree Removal Permits is $235 for a public tree and for removals not associated with construction, and $435 for removals associated with construction. The new fee structure would start at $245 for a preliminary assessment by the City Forester whether or not trees are removed. If approved for removal, an additional fee would be required depending on the number of trees to be removed under the permit. For five (5) or less trees, the additional fee would be $340, and for six (6) or more trees, the additional fee would be $585.

The existing fee for a tree-related Appeal to the Forest and Beach Commission is $1,375, and the proposed fee will be $1,425. The existing fee for tree-related Appeal to the City Council is $1,375, and the proposed fee will be $1,425.

At the May 5, 2020 meeting, the City Council adopted Resolution 2020-030 adopting a schedule of fees for Fiscal Year 2020-2021 for Administrative Services, Community Activities, Community Planning and Building, Public Safety and Public Works Services, except for the four (4) fees for tree permits and appeals.  All remaining fees became effective on July 1, 2020. Council directed staff to seek input from the Forest and Beach Commission regarding all four (4) fees.

At their June 11, 2020 meeting, the Forest and Beach Commission concurred with staff's recommendations regarding updated fees for tree pruning and tree removal permits, as well as not assessing a fee to private citizens working on City trees at their cost and under the direction of the Forester.

At their July 9, 2020 meeting, the Forest and Beach Commission concurred with staff's recommendations regarding updated fees for tree-related appeals to the Forest and Beach Commission and to the City Council.