16 - Amendment of Appendix A - Fee Schedule Section A3.002(b) Engineering Department Fees

Home Browse Search

Item No. 16 TO: Mayor, Mayor Pro -Tem and City Council Grayson Path, City Manager FROM: Todd Mittge, City Engineer SUBJECT: Amendment of Engineering Department Site Plan Review Fee and Site Permit and Engineering Fee MTG. DATE: April 24, 2023 BACKGROUND A new fee schedule related to the development process was adopted by City Council at the December 12, 2022 regular meeting. After feedback from developers, City Staff discovered errors in the Engineering fee schedule items contained in Appendix A, Section A3.002(b)(1) and (b)(2). These errors have resulted in fees significantly higher than what was intended or is necessary. As currently written the fee schedule calls for: "Site permit and engineering fee: 3% of job cost" and "Site Plan review: 25% of permit fee". STATUS OF ISSUE: Since Council approved the fee schedule revisions in December, the City has assessed several fees on several construction projects. OPTIONS: After careful review, City Staff has determined that a fee of 3% of the cost of proposed public improvements (rather than total job cost) with a minimum cost of $100 would be fair and reasonable. The percentage would cover the cost of reviewing and inspecting improvements to be dedicated to the public and the minimum cost would cover review of civil plans that do not include public dedication. City Staff are requesting permission from Council to refund the developers who have been affected by the December fee schedule in an amount that is equal to the difference between what the developer actually paid and what they would be required to pay under the amended schedule. RECOMMENDATION Adopt an ordinance deleting Appendix A Section 3.002 (b) (1) and amending Appendix A Section 3.002 (b) (2) to read, "Site permit and engineering fee: 3% of cost of public improvements. $100 minimum." Staff also recommends that Council authorize compensation to any developer who has paid the site permit and engineering fee under the December fee schedule in an amount equal to the difference between what was originally paid and what would be assessed under the amended schedule.