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8.4 Building Permit Fees CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE 9-21-2009 TIME 4:00 P.M. AGENDA SECTION NO: 8 ORIGINATING DEPARTMENT: Development Services Building Services APPROVED FOR AGENDA: ITEM NO. Page 1 4 BY: Mike Roberts BY: ITEM: Resolution No. 09-6660 A resolution amending Comprehensive Fee Schedule by adding the 2009 International Code Council Construction Valuation Table and by making other minor fee schedule corrections and revisions. BACKGROUND: As a component of the method used to calculate commercial building permit fees, the city has historically adopted the valuation table published by the International Code Council (ICC) as well as a local modification table for use in the process to calculate building permit fees. The ICC valuation data table is attached for your review (Exhibit A), as well as the local modifier table (Exhibit B) and the ICC valuation data table with the modifier applied (Exhibit C). ICC updates this "average cost of construction" valuation table annually, based on their research regarding national costs of construction data for various construction types as noted in the table. Staff reviews each new table as it becomes available to determine whether or not changes have been made, the significance of those changes, and whether or not staff would recommend adopting the changes. Maintaining current building valuations is necessary in order for us to provide more accurate data regarding the value of construction in our community. Such data is reported to various agencies including but not limited to the U.S. Census Bureau and the Wichita State University's Center for Economic Development. Staff has reviewed the ICC valuation table published in February of this year. The new table reflects a general increase of approximately 5.5% to 6% for all categories. Staff proposes adopting the 2009 table for use in 2010, with no changes to the local modifier table. Since fees are based on a percentage value, this would have the net effect of increasing commercial building permit fees by about 3.5% to 4% depending on the type of project. Staff also recently reviewed Article IV of the City of Salina's Comprehensive Fee Schedule (Development Services Department) and confirmed additional revisions. Those revisions are minor in nature and are necessary for clarification, but do not change fees. (See Exhibit 0) Staff recommends that the implementation date of these changes, if adopted by Resolution 09-6660, be deferred until Januarv 1 , 2010. Such a deferral will allow time for staff to publish customary notice of these changes as part of our commitment to customer service. Stakeholder feedback from the development community has consistently reflected a need to provide as much advance notice as possible regarding fee increases so that those increases can be factored into bids for proposed new work that would occur after the first of the year. FISCAL NOTE: The proposed increases in fees are consistent with intended increases in revenues anticipated by the 2010 City of Salina budget. CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE 9-21-2009 TIME 4:00 P.M. AGENDA SECTION NO: 8 ORIGINATING DEPARTMENT: Development Services Building Services APPROVED FOR AGENDA: ITEM NO. Page 2 4 BY: Mike Roberts BY: CONFORMANCE WITH STRATEGIC PLAN Goal #3: The City will provide the highest quality of services, consistent with governing body direction, available resources and staff commitment to service quality. RECOMMENDATION & CITY COMMISSION ACTION: The following options have been identified for consideration by the City Commission: 1. Take no action which will result in no valuation increases for commercial construction, thus no increase in permit fees for commercial building permits and no changes to the fee schedule. 2. Adopt Resolution No. 09-6660 with specific changes as determined by the Commission. 3. Adopt Resolution No. 09-6660 which adopts the ICC Valuation Table as proposed resulting in an approximate 3.5% to 4% increase in commercial building permit fees with actual results varying depending on construction type, with an effective implementation date of January 1, 2010; and also adopts the revisions to the Article IV of the Comprehensive Fee Schedule. Staff supports and recommends that the Commission adopt the Resolution as proposed. (Option #3) RESOLUTION NUMBER 09-6660 A RESOLUTION ESTABLISHING VARIOUS FEES FOR SERVICES IN THE COMPREHENSIVE FEE SCHEDULE OF THE CITY OF SALINA, KANSAS. WHEREAS, the City of Salina provides many specific services for the Citizens of Salina; and WHEREAS, specific individuals benefit from said services; and WHEREAS, it is appropriate public policy to require specific individuals benefiting from specific services to pay all or a portion of the cost of such services; and WHEREAS, Salina Code Section 2-2 provides that the Board of Commissioners shall determine, by resolution, all license fees, permit fees and other user related fees or charges established by the ordinances of the City; SO NOW, THEREFORE BE IT RESOLVED by the Governing Body of the City of Salina, Kansas: Section 1. That the following fee charges by the City of Salina, are hereby amended as follows in the attached Exhibits A - D and shall be incorporated in the City's Comprehensive Fee Schedule. Section 2. That this Resolution shall be in full force and effect from and after its adoption. Adopted by the Board of Commissioners and signed by the Mayor this 21 st day of September, 2009. M. Luci Larson, Mayor [SEAL] ATTEST: Lieu Ann Elsey, CMC, City Clerk