Title
Hold a public hearing on updating the engineering services and construction inspection fee schedule in the City of League City (Executive Director of Development Services)
Background:
Approval of this ordinance will update the City’s Engineering Services and Construction Inspection Fee schedule based on the Revenue Study presented to City Council on December 12, 2023, in the Council Work Session.
In 2016, City Council established a 2% Engineering Services and Construction Inspection Fee with the fee being 2% of the construction cost of the public infrastructure. In 2018, the Council amended the ordinance to increase this fee to 2.5% of the construction cost of the public infrastructure.
On June 10, 2023, the Governor signed HB 3492, which had an effective date of September 1, 2023. Under HB 3492, cities are prohibited from considering the cost of construction or improving public infrastructure for a subdivision, lot, or related property development in determining the amount of an application, review, engineering, inspection, acceptance, administrative, or other fees improved by cities related to the process of engineering or construction plans or for the inspection of improvements for construction of a subdivision or lot or a related improvement required in conjunction with that construction.
On August 22, 2023, staff presented an updated fee schedule for Development Plan Reviews ($8,500 per review) and for Construction inspections ($5,000 per month of construction). When looking at recently completed projects, the average project would generate $54,000 in fees. Staff estimated a total of 24 new projects would be submitted in 2024 and based on estimated staff costs, the $8,500/plan review and $5,000/month of construction fees were determined. At that time, staff recommended a reduced cost for smaller projects.
On August 22, 2023, the City Council passed Ordinance 2023-26, which modified the existing engineering services and construction inspection fee...
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