CITY COUNCIL: Pacific Repertory Theatre (Pac Rep) request for a Waiver of Permit Fees for the Golden Bough Playhouse Remodel Project

City Council
Agenda Item Summary

Meeting Date: December 6, 2011
Prepared by: Tim Meroney

Name: Consideration of a request from Pacific Repertory Theatre (Pac Rep) for a waiver of permit fees for the Golden Bough Playhouse remodel project.

Description: On June 14, 2011, City Council considered a request from Pacific Repertory Theatre to waive City fees associated with the interior remodel of the Golden Bough Playhouse. At that time, Council moved to direct interim City Administrator Goss to develop a set of criteria for waiving City fees for nonprofit organizations and to bring it back to Council for its consideration.

Under current ordinances and laws, the City may waive permit fees for any remodeling or work deemed necessary to preserve the integrity of an historic resource. The General Plan allows for the exemption of that part of a building, deemed an historic resource, from fees related to the preservation portion of the project. This practice has been used sev~ral times before.

The most recent fee waiver granted by the City was for the Carmel Foundation's Trevett Court project in August 2008. In that decision, the City Council allowed the project to proceed without fees based on the fact that this project helped the City meet its obligation to provide moderate- to low-income housing through the efforts of the Carmel Foundation. In the past, other non-profit organizations, such as the American Red Cross and Carmel Presbyterian Church, were not granted fee waivers for their remodeling projects.

Financial Impact: Should City Council grant the waiver of fees for the PacRep remodeling project, the financial impact would be $15,752 in permit fee revenue.

Staff Recommendation: Staff recommends denial of this request.

Important Considerations:
Waiving fees on a regular basis sets a precedent that could be challenged by others. In addition, the proposed remodel to the Golden Bough Theater is intended to improve performance acoustics, to provide better transition and stage access, and to modify lighting and improve disabled access. There is no plan in this project to improve sound dampening or to preserve any historic portions of the building. Also, unlike the Trevett Court project, there is no inherent community-wide benefit to the City such as provision of moderate- or low-income housing.

Decision Record:
On June 14, 2011, City Council considered a request from Pacific Repertory Theatre to waive City fees associated with the remodel of the Golden Bough Playhouse. Council moved to direct interim City Administrator Goss to develop a set of criteria for waiving City fees for nonprofit organizations and to bring it back to Council for its consideration.

Reviewed by:


Jason Stilwell, City Administrator Date

CITY OF CARMEL-BY-THE-SEA
STAFF REPORT
TO: MAYOR McCLOUD AND COUNCIL MEMBERS
THROUGH: JASON STILWELL, CITY ADMINISTRATOR
FROM: TIM MERONEY, BUILDING OFFICIAL (RETIRED)
SUBJECT: CONSIDERATION OF A REQUEST FROM PACIFIC REPERTORY
THEATRE (PAC REP) FOR A WAIVER OF PERMIT FEES FOR THE GOLDEN BOUGH PLAYHOUSE REMODEL PROJECT
DATE: DECEMBER 6, 2011

BACKGROUND
On June 14, 2011, City Council considered a request from Pacific Repertory Theatre to waive City fees associated with the interior remodel of the Golden Bough Playhouse. At that time, Council moved to direct interim City Administrator Goss to develop a set of criteria for waiving City fees for nonprofit organizations and to bring it back to Council for its consideration.

Under current ordinances and laws, the City has the authority to waive permit fees for any
remodeling or work deemed necessary to preserve the integrity of an historic resource. The
General Plan allows for the exemption of that part of a building, deemed an historic resource,
from fees related to the preservation portion of the project. This practice has been used several
times before.
In the past, the Building Official was authorized to waive permit fees in the interest of justice,
fairness and/or the good of the City or community-at-large. This practice has not changed,
however, since 2007, the California Building Code no longer has language that defines this
matter. The City currently bases those decisions by the Building Official on “past practices.”
Fees are very rarely waived.
Normally, when an application is filed requesting a waiver of fees, the City Administrator
would deny the request and the request would then be filed as an appeal to the City Council
and Council would determine on whether to grant the fee waiver.
The most recent fee waiver granted by the City was for the Carmel Foundation’s Trevett Court
project in August 2008. In its decision, the City Council established findings of fact on which
they based the exemption and allowed the project to proceed without fees. The basis of this
decision was that this project helped the City meet its obligation to provide moderate- to lowincome
housing through the efforts of the Carmel Foundation.
In the past, other non-profit organizations such as the American Red Cross and Carmel
Presbyterian Church have had remodeling projects that were not granted fee waivers.
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The proposed remodel to the Pac Rep (Golden Bough) Theater is intended improve performance
acoustics and to provide better transition and stage access. The project also includes modifying
lighting and improving disabled access. There is no plan in this project to improve sound
dampening or to preserve or maintain any historic portions of the building.
FISCAL IMPACT
Should Council approve the fee waiver, the fiscal impact would be $15,752 in permit fees.
The remodeling project is currently under way. Pacific Repertory has not yet paid its City
permit fees, pending Council’s decision.
STAFF RECOMMENDATION
The efforts and contributions to the community from the PacRep Theatre have been and
continue to be valuable. The City Council, however, must decide whether waiving required
permit fees should be borne by the entire community since it is the community that demands the
fees to offset City services.
Waiving the fees for remodel permits sets a serious precedent that would then seem to apply to
all non-profit organizations throughout the City. Churches, the Red Cross, any organization that
meets that status could then request an exemption when they intend to do construction work.
This City has always maintained a fair decision process when applying fees for construction
work. Would allowing certain organizations to be exempt from such fees remain fair to others?
Should past permits of non-profits be refunded?
Any decision by the City Council in this matter should specify that an exemption will not apply
to those fees incurred by the City to process an application. All external fees paid by the City to
process an application should be paid by the applicant no matter their tax status.
Interim City Administrator Goss requested that the following questions be answered:
Q: When should fees be waived for non-profits?
A: Only when the work proposed directly benefits the City of Carmel and meets requirements set
forth by State or Federal laws mandating City compliance.
Q: Where should the City draw the line in waiving fees?
A: Not all of the Planning fees should be waived. The Strong Motion Instrument Program
(SMIP), is a State tax and must be paid by the applicant. Any fees that are charged to recover
outside City costs also should be charged to the applicant so as not to deplete City accounts as
expenditures. If the City Council waives the entirety of the permit fees, the State fees will have
to be paid out of City funds.
We believe that fee waivers should be reviewed on a case-by-case basis. The review should
include an analysis of the benefits to the City that would be created by the fee waiver. As an
example, in the case of the Carmel Foundation, its project directly benefited the City in its
efforts to meet its moderate- and low-income housing requirements.
Waiving fees on a regular basis also sets a precedent that could be challenged by others. It is the
recommendation of staff recommendation that this request should not be granted.
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44
(
THEATRE
The only professional theatre
on the Monterey Peninsula
FOUNDER " EXECUTIVE DIRECTOR
SlEPHEN MOORER
ARTISliC DIRECTOR
KENNETH KEllEHER
CAPITAL CAMPAIGH DIRECTOR
JAMES N. BENNm
BOARD OF DIRECTORS
PRISIDENT
BOB MULFORD
VIOI-:f'REIID~I
DICK CRDWEU.. Board Development
JUDY FURMAN, Special Event&
CFD
TERRY McHENRY
TRE.UURI!R
GIFFLEHMAN
SECRETARY
KARYLHAU
liRT JOHNSON
,\1ERRILL LESUE
DIANE MAULe TOWT
SAM LINDER
DON NEWMARK
SHIRLEY ROSEN
PAULA SNEDDON
ADVISORY COUNCIL
BERNIE FURMAN, Chelr
ROBERTA BIALEK
NAN BORRESON
LEE COX
SEAN FLAVIN
DON HII.BURN
SHIRLEY LOOMIS
SHARON MERfSt,JAN
DAVE NEE
DARNaL WHIIT II
PHIL WOODWARD
TRUSTEE EMERITA
HARRIET MITTELDORF
LEIIAL ADVISOR
CHRIS CAMPBEU
?· BOX 222035
-~MEL, CA 93922
PHONE (831) 622:0700
FAX (831) 622.0703
WEB www.pacrep.org
5/27/11
Mayor Sue McCloud and the Carmel City Council
City Hall
Carmel-by-the-Sea, CA
Dear Mayor McCloud and City Council Members,
It is with great pleasure that PacRep Theatre can report that the interior remodel of
the Golden Bough Playhouse Is fast approaching. The remodel will address structural,
ADA and health & safety needs of the aging building, as well as adding updated
theatrical systems that will positively affect the artistic quality of our productions and
the needs of our artists.
At this time we wish to request a waiver of city fees associated with the project. It is
our understanding that these fees would be approximately $12,000. (This is in ·
addition to considerable project-related city fees we have already paid over the last
few years.)
As you know, PacRep receives no city funding or subsidies, but relies on ticket sales
and donations to meet its annual obligations. The remodel project is being funded
by private gifts from foundations and individuals. Unfortunately, due to the current
economic climate, fundraising has been slow and we are exploring all available
avenues to bring the project in on time and within budget. The waiver of city fees
would be extremely helpful in this regard.
As with similar projects that have received waivers, PacRep is a vital and involved
member of the community, and contributes greatly to the overall welfare of our
residents and visitors. PacRep audiences contribute to the economic health of our
community, filling bars and restaurants, increasing the average nightly hotel stays,
and frequenting the town's many businesses.
Equally important, PacRep plays a crucial role in the city's cultural vitality, and has
been the steward of the Golden Bough Playhouse- a historic cultural site- for over
15 years. Together with Sunset Center and the Forest Theater, these three sites
greatly help define what makes Carmel so truly special. In that the Golden Bough is
privately owned, however, only the Golden Bough is faced with such fees when
attempting to improve the facility.
In closing, I would simply add that PacRep has been a good partner with the City,
participating in City events, committee work, and as a resource for other area nonprofits.
Assistance form the city at this time would be sincerely appreciated.

Best Regards,

Stephen Moorer, Founder and Executive Director
Pacific Repertory Theatre