07-24-2017 Council Packet - Laserfiche WebLink

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City council Exhibit B AGENDA ITEM Item No.: 15 Date: July 10, 2017 Item Description: Review changes to the fee schedule as it pertains to Planning and Zoning Presenter: Jeremy Barnhart, Community Agenda Planning Department Development Director Section: Report 1. Purpose. The purpose of this action item is to consider changes to the fee schedule as it applies to zoning permits/ applications, and building, mechanical, and plumbing permits. 2. Background. The Development Process Review Committee has reviewed the fee schedule and recommends changes intended to bring costs associated with development review more in line with actual expenses incurred by the city. Currently, fees are based on all costs associated with a project, including a portion of fixed costs associated with hosting staff and planning commission/ city council meetings. These fees are estimated in the Exhibit B. They recommend adjusting the fees to remove these fixed costs (recording fees, time spent in meetings, etc.) Their recommended fee schedule is illustrated on the attached Exhibit A, which upon Council direction, staff intends to adopt as an appendix of the fee schedule, removing the applicable sections from the fee schedule. Staff and the Committee's goal is to present the information in an easier to understand manner. The Committee also proposes reducing the minimum building permit fee from $50.00 to $26.25, which is consistent with the adopted building permit valuation table. This will impact about 10% of the permits issued, primarily small plumbing or mechanical projects. The Development Process Review Committee compared Orono building and development fees with neighboring communities, these comparisons are attached as Exhibits C and D, respectively. Budget Impact. Adjustment to fees will impact the budget. This impact is summarized in the attached Exhibit E. The city averages about 64 variance/ CUP, applications and 10 subdivision per year. Reducing the application fee from $700.00 to $275.00 will show a shortfall of about $13,000 for 2017 (depending on when the fee schedule is implemented), and general fund income will need to increase $29,000.00 for 2018. Reducing the minimum building permit fee from $50 to $26.25 may impact the budget $3,400 in 2018 ($1,500 in 2017), based on the 4 year average. Alternatively, the Council may elect to make changes to the fee schedule, but make them effective January 1, 2018, allowing for the budget to adjust appropriately. The proposed fee schedule does not incorporate costs associated with the online permitting software, CitizenServe, or the surcharges associated with online credit card payments. These costs will continue to be studied and amendments may be suggested as part of the annual review of the fees, in Late Fall. 3. Staff Recommendation. Staff seeks direction, a final ordinance will be presented at a later meeting. COUNCIL ACTION REQUESTED By motion, direct staff as to changes to the fee schedule. Exhibits Exhibit A. Proposed fee schedule Exhibit B. Development Review Costs Exhibit C. Building Permit Fee comparison Exhibit D. Land Use Application comparison Exhibit E. Budget impact Prepared By: J. Barnhart Reviewed By: J. Barnhart Approved By: D51Z