HomeMy WebLinkAboutItem 5a. Fee Study Update Item 5a
Construction Board of Appeals
Agenda Report
For Agenda of: 7/25/2024
Item Number: 5a
FROM: Michael Loew, Deputy Director/Chief Building Official
Prepared By: Michael Loew, Deputy Director/Chief Building Official
SUBJECT: FEE STUDY UPDATE
RECOMMENDATION
This is an informational presentation and discussion topic only. There is no action within
the CBOA’s purview to take regarding this matter.
DISCUSSION
Key Changes for Building and Safety
Current: Building and Safety fees include fixed fees as well as construction permit fees
that are charged on a base plus increment schedule as reflected on 30 separate matrices:
15 are for plan check services, and 15 are for building inspection services. Each matrix
represents a building use, and calculates fees based on square footage and type of
construction. Fixed fees in Building and Safety include things such as: water heater or
furnace replacements, balcony/porch/deck construction, electric car charging system
installation, and residential re-roofing.
Recommendation that was approved by City Council: Construction permit fees will be
simplified into 12 categories with a separate price per square foot for plan review and for
inspections; the categories are aligned with the types of permits that are issued. The 12
categories include:
Alteration/Addition – Accessory Dwelling Unit
Alteration/Addition – Commercial
Alteration/Addition – Mixed Use or Multi Family
Alteration/Addition – Single Family
New Accessory Building
New Accessory Dwelling Unit
New Commercial Building
New Commercial Shell
New Mixed-Use
New Multi Family (R2)
New Multi Family (R3)
New Single Family
These new categories will replace the 30 matrices that consists of hundreds of different
options, which will simplify estimating fees for future projects and improve staff efficiency
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for calculating fees. As in the current fee schedule, the proposed restructured fee
schedule is still based on square footage, which ensures that the cost of services are
proportionate to the size and cost of the project.
Each of the 12 categories also includes a minimum and/or maximum square footage for
calculating the fee. This helps ensure that the fees for very small and very large buildings
reflect the actual work effort required for plan review and inspection. The minimum permit
fee for each category is necessary to ensure that the City captures all costs associated
with processing applications. Regardless of the size of the project, the fee needs to
capture the cost of staff time to process the permit and conduct inspections. The
maximum permit fee is being recommended after staff analyzed the types of projects that
exceed the square footage thresholds that are being recommended. Larger projects in
the City tend to be similarly complex when it comes to reviews and inspections with more
volume in the building. For example, a single-family home that is 4,000 square feet will
have one kitchen, 3-4 bathrooms, and 4-6 bedrooms. Whereas a 2,000 square foot home
will have one kitchen, 2-4 bathrooms, and 3-4 bedrooms. The major difference between
the two homes is that the individual bedrooms, closets, and general living spaces are
larger. Where the 2,000 square foot home may have a primary bedroom that is 350
square feet, the 4,000 square foot home will likely have a primary bedroom closer to 600
square feet.
The cost per square footage is unique to each permit category and is based on how much
time a typical project for each category will take to review and inspect. Staff analyzed
projects within each category by calculating the time it took to process the permit based
on how many review comments were provided and the number of inspections performed,
as well as the nature of the comments and types of inspections for typical projects within
each category. The recommendation represents the conversion of staff’s actual time into
a cost per square foot. This means that the cost per square foot is not comparable across
categories. For example, a new detached Accessory Dwelling Unit (ADU) is similar in
nature to a new single-family home. The price per square foot is different in that it is much
higher for the ADU; however, the actual permit and inspection costs are lower for the ADU
because they are smaller projects.
The following tables provide a few examples of the current and proposed fee amount
changes for Building and Safety. In order to provide a sense of the impact of the new fee
structure and amounts on projects, Table 4 below, illustrates the plan review and
inspection fee that would be associated with several example projects of various sizes.
Table 5 provides additional examples of current and proposed fees. Table 5 provides a
sample of fixed-fee permits that are provided by the Building and Safety Division to
illustrate the proposed changes in Building and Safety.
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New and Deleted Fees: As identified in MGT’s report, there are 23 new fees proposed
and 26 fees that are recommended for deletion or consolidation in the building and safety
fee schedule. Additionally, there are 25 fees that staff recommends alterations to the fee
title to add clarity and ease of use of the fee schedule.
Revenue Increase: Overall, the change to the fee structure and anticipated volume of
permits is projected to generate approximately $145,000 in additional revenue .
ATTACHMENTS
A – New Master Fee Schedule
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