Title
Consider and take action on a resolution updating the schedule of fees pertaining to buildings and building regulations - Chapter 22 of the Code of Ordinances of the City of League City (Interim Building Official & Executive Director of Development Services)
Background:
Adoption of this resolution will update the schedule of fees pertaining to Buildings and Building Regulation Fees - Chapter 22 of the Code of Ordinances of the City of League City. The Fee Schedule was last reviewed and updated on February 8, 2022, through Resolution 2022-21.
On December 12, 2023, Staff presented the results of the revenue study to the Council. The findings of this study noted that the current fees in the Planning and Building Departments would need to be raised 4.5% to cover staff’s costs associated with development services projects. This equates to approximately $65,000 if split evenly between the 2 departments. Approximately 66% of the 9,091permits issued in 2023 came from 4 permits (New Single-Family Homes - 578 permits, Electrical - 2,022 permits, Plumbing - 1,539 permits, and Mechanical - 1,864 permits). Instead of an across the board 4.5% increase in rates, staff is proposing to adjust how these 4 permits are calculated.
For the new single family home permits, staff currently charges a base fee of $0.40/SF and an individual Floor Plan Review of $0.20/SF. Staff is proposing to increase the cost of each of these by 5% ($0.42/SF base fee and $0.21/SF for Floor Plan Review). In most neighborhoods, floor plans are repeated several times. While a floor plan can have several different variations, it is essentially the same layout which when duplicated allows for a somewhat quicker review. In general, a 1st time Floor Plan Review takes a minimum of 3.5 hours to complete assuming the plan was not in a Zone A floodplain. A Duplicate Floor Plan Review would typically only take 2.5 hours to complete, again assuming the plan was not in a Zone A floodplain. This means a Duplicate Floor Plan Review is taking approximately 72% of the time a 1st time Floor Plan Review would take, again assuming the plan is outside of a Zone A floodplain. Over 40% of the City falls within a Zone A floodplain, so for those situations, the average time spent on a 1st time Floor Plan Review increases from 3.5 hours to approximately 4.25 hours and the average time spent on Duplicate Floor Plan Reviews increases from 2.5 hours to 3.25 hours, meaning that a Duplicate Floor Plan Review for areas within the Zone A floodplain takes approximately 77% of the 1st time Floor Plan Review.
With that in mind, staff would like to add a “Duplicate Floor Plan Review" Fee for Single Family Residential Building Permits. This fee would be 75% of the individual Floor Plan Review's fee (or $0.16/SF). This fee would be charged for each duplicate floor plan in a subdivision’s platted section. While the percentages can vary, across the city, approximately 70% of homes in each section of a new subdivision would fall under this new fee with approximately 30% of the homes paying the full fee. So, for example, when the Builder submits Building Plan “A” (a 2,100SF single family home) for a given neighborhood, the City’s current permit fees are calculated as follows:
Home #1 Home #2
Building Permit Fee ($0.40/SF x 2,100SF): $ 840.00 $ 840.00
Floor Plan Review Fee ($0.20/SF x 2,100SF): $ 420.00 $ 420.00
Total Fee owed per home: $ 1,260.00 $1,260.00
With this proposed change, each subsequent submittal within this neighborhood would be charged a Duplicate Floor Plan Review Fee instead of the Floor Plan Review Fee:
Home #1 Home #2
Building Permit Fee ($0.42/SF x 2,100SF): $ 882.00 $882.00
Floor Plan Review Fee ($0.21/SF x 2,100SF): $ 441.00 $ 0.00
Duplicate Floor Plan Review Fee ($0.16/SF x 2,100SF): $ 0.00 $336.00
Total Fee owed: $ 1,323.00 $1,218.00
Using the 578 new homes started in FY 2022 as an example and assuming all were 2,100SF in size, in 2023, fees collected would have been $728,280. Using the proposed fees, the total collected would have been $746,487 (an increase of 2.5%) or an increase in revenue of approximately $18,207.
There is currently a $50 base fee assigned with each of the electrical, plumbing, and mechanical permits. In 2023, the City issued 5,425 of these types of permits. This equates to approximately $271,250. An increase of $9 to the base fee for each permit would increase the revenue by $48,825.
Staff is recommending the above fee structure changes and for the new fee structure to begin with lots platted on or after March 1, 2024.
The changes would be reflected as follows:
• Residential Building Permit - New Single-Family Residence would increase from $0.40/SF to $0.42/SF
• Floor Plan Review Fee would increase from $0.20/SF to $0.21/SF
• Duplicate Floor Plan Review (for same floor plan within Section) will be $0.16/SF (75% of original fee)
• Base Fees for Electrical, Plumbing, Gas, and Mechanical Permits would increase from $50/each to $59/each.
Attachments:
1. Data Sheet
2. Proposed Resolution with Updated Fee Schedule
3. Resolution 2022-21 and Current Fee Schedule
FUNDING
{X} NOT APPLICABLE
STRATEGIC PLANNING
{X} Addresses Strategic Planning Critical Success Factor # 1 and Initiative #1, Action Item H