Department of Community Development
Reference: Proposed Amendments to the City’s Adopted Fee Resolution
To: Mayor Gregory Mills and Members of the City Council
Through: Michael P. Martinez, City Manager
Prepared By: Holly Prather, AICP, Community Development Director
Date Prepared: July 11, 2023
PURPOSE
The Community Development Department, along with the Utilities Department (the “Departments”) are seeking to amend fees to recoup the cost of services, to match the online permitting and inspections payment processor’s fees, and to clarify when fees apply and to better correlate to what they apply to. These amendments are proposed to take effect on the “Go-Live” date of the city’s new on-line permitting and inspection software (anticipated “Go-Live” date of August 1, 2023).
BACKGROUND
As previously directed by the City Council, the Departments are committed to ensuring that development is paying its own way, that the costs to perform services are recouped, and that the fee resolution aligns with the fees that will be charged through the city’s new on-line permitting and inspection software.
Proposed Community Development Department Fee Amendments:
In accordance with Ordinance No. 2409, which restricts water usage in the city and particularly, prohibits sod installation between May 1st to September 30th, the department is proposing a refundable fee of $1,900.00 per residential unit for single-family attached and detached homes. For multi-family, commercial, and industrial projects, the fee will be based on an estimated cost to complete any outstanding landscaping. As noted, this is a refundable fee and the city would refund any funds submitted by the builder once an inspection, ensuring the landscaping was completed, was approved by city staff.
The department is also seeking to clarify when the permit plan review fees are paid i.e., at the time of issuance and to clarify that both single-family detached and attached homes are eligible for a reduced plan review rate; currently, the code only notes this as an option for single-family detached homes.
Additionally, the department is requesting to add the ability for applicants to pay for their permits and/or licenses via the city’s new on-line permitting and inspection software via e-checks. The third-party vendor that processes e-checks charges a flat rate of $2.25 per transaction. With this, the department is seeking to modify the credit card processing fee to match the third-party vendors fees by charging 2.99% and $0.99 per transaction. (Note: The city’s current fee resolution has a rate of 2.9%.). With this change, staff is clarifying that credit cards, debit cards and e-checks processed through the third-party vendor via the online permitting and inspection software apply to all permits and licenses utilizing the software. The current fee resolution is specific to “building permits”; however, there are various types of permits and licenses that are not strictly “building permits” and these will be processed online as well.
Proposed Utilities Department Fee Amendments:
The department is proposing to increase the cost of Erosion and Sediment Control (ESC) fees to better align with the costs incurred by the review of the plans and to perform the necessary inspections. The department is also looking to add a “Water Meter Inspection Fee” and a re-inspection fee as city staff often has to go back out into the field to re-inspect the meter pit as they often tend to be damaged during the construction process. Lastly, the department is proposing to increase the “Water Meter” fee due to the actual cost borne by the city to purchase the meters.
OPTIONS FOR CITY COUNCIL CONSIDERATION
The City Council has three options:
1.) Approve the Fee Resolution as drafted;
2.) Request modifications be made to the draft Fee Resolution; or
3.) Not approve the draft Fee Resolution.
ATTACHMENTS
● Resolution
● Redline of Fee Exhibits
● PowerPoint