20-Deliberate and act on administration of building permit and plan review servicesCITY COUNCIL AGENDA ITEM BRIEFING SHEET
Submittal Date:
Originating Department:
Presented By:
Agenda Item No.:
03/05/2010
Engineering, Planning
Shawn Napier, P.E. City Engineer
Council Date:
and Development
/Director of Public Works
20.
04/ 12/2010
RECOMMENDED MOTION:
POLICY ISSUE(S):
Implementation of building codes; Public safety
BACKGROUND:
In January 2009 and after our last building inspector left, the City retained Bureau Veritas (BV) to
perform plan review and building inspections for the City for an initial review period of 75 days. The
pilot project was later extended to 12 months. As shown in the accompanying Building Fees Collected
and Paid chart, from January 2009 through January 2010, the City paid $363,380 to BV, collected
$174,471 in fees collected for a net loss of $188,908. The figures are skewed, however, because they
include the new Paris High School project. Excluding Paris High project reduces the loss by $50,470.
The Permitting Time Table lists all of the commercial and residential new construction projects and the
permit timelines. The average time between BV received the plans, BV comments sent, revisions
received, and when the owner picked up the permit, was under 25 days. Most of time lags were due to
owners not submitting complete applications and delays in getting revisions back to the City.
[CONTINUED]
BOARD/COMMISSION RECOMMENDATION:
EXHIBITS:
Building Fees Collected and Paid, Permitting Time Line, Permit Fee Comparison, City of Paris Fee
Schedule, Proposed Permit Fees, International Code Council-Building Valuation Data, Proposed
Organizational Chart, In-House Building Inspection
ACTION:
BUDGET INFO:
❑ Financial Report ❑ Minute Order
Expense
$
❑ Department Report Z Resolution
Budgeted Amt.
$
❑ Presentation ❑ Ordinance
y'I'D Actual
$
❑ Public Hearing ❑ Other
Acct. Name
Acct. Number
FISCAL NOTES:
REVIEWED AND APPROVED BY:
Z Administrarion Z City Clerk ❑ Community Development ❑ EMS/IT Z Eng. ❑ Finance
❑ Fire ❑ Municipal Court ❑ Legal ❑ Library ❑ Police ❑ Public Works ❑ Utilities
City of Paris Revised 2/04/08
[BACKGROUND CONTINUED]
There are two options for building plan review and inspections: the first option is to keep BV (or other
third-party service) and the second option would be to hire in-house building inspectors and plan reviewers.
Keeping a third-party service helps to reverse the perception of building plan review and inspections as
being susceptible to the "good ol' boy" system. It also allows maximum staffing flexibility without the
cost of employees or loss of productivity due to employee leave time but cost an estimated $64,500 more
each year (excluding first year start-up costs of approximately $300,000).
The second option is to bring the process back in-house. This plan would include hiring a Chief Building
official, a second Building Inspector and a Plan Reviewer (see accompanying organization chart). The
estimated cost of bringing the operation in-house includes salary and benefits as well as the associated
department costs. Adding the additional staff will require moving some offices around and some
remodeling costs. This option also includes the ability for (1) staff to use third-party plan review and
inspections for large or complicated commercial plans (e.g. Paris High School, hospitals), (2) giving
customers, if they prefer, the ability to utilize an approved list of third-party plan review firms (at the
customer's expense), and (3) requiring the use of an approved third-party fire plan review firm (at the
customer's expense) for commercial plans. Returning the process to in-house, as described, is expected to
be less expensive and retain flexibility to meet the needs of large or complicated projects. Having
inspections in-house leaves the process susceptible to the "good ol' boy" system. The first year start-up
costs of approximately $300,000 will have to come out of fund balance or wait until they can be included in
the FY 2010-2011 budget. Because of the start-up costs, it will take about five years before having
building plan review and inspections in-house will "pay" for itself. The implementation period will take
approximately 90-120 days to recruit staff, remodel, and purchase necessary equipment (and possibly
longer to allow the run-out of large projects the City has already paid BV for such as Paris High School).
During the transition period, it will be necessary to continue using BV or consider a moratorium on
development.
Regardless of which option is chosen, the City's fee schedules need to be changed so that the consumers of
this elective service are the ones paying for it (i.e. currently all taxpayers are subsidizing the cost of a
service provided to just a few). The last time any permit fee has been adjusted was almost 10-year ago.
The accompanying Permit Fee Comparison chart includes the fees charged some peer cities, the City's
current fee schedule, and the proposed new fee schedule. The proposed schedule has a small increase in
the base permit fees so small projects (the majority of permits) are not impacted. The cost of a plan review
typically depends upon the value of the project; however, Paris currently does not charge a plan review fee
of any kind (which is 52 percent of the difference between what BV charged the City and what the City
collected in fees). Most other cities use a minimum valuation depending on the type project in order to
determine the cost of a plan review. Staff recommends using the lesser of the International Code Council's
Building Valuation Data (updated in six-month intervals) for a minimum cost per square foot or the actual
contract amount. This guarantees that those seeking permits do not under value their project in order to
receive a lower permit fee.
At the April 5 workshop, it was the consensus of Council to go with option 2, as described above, and
increase the fee schedule to cover operating costs. Staff still needs direction on where Council wishes to
pay for the upfront costs.
City of Paris Revised 2/04/08
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PERMITTING TIME TABLE
COMMERCIAL NEW CONSTRUCTION JAN. 2009-JAN. 2010
DATE PERMIT
TOTAL
ADDRESS
DATE BV
RECEIVED PLANS
COMMENTS SENT
REVISIONS RECEIVED
*ISSUED*
DAYS
1
745 CR 42000
3/2/2009
3/2/2009
3/5/2009
3/25/2009
23
2
2255 50 UTH CO LLEGIATE
3/11/2009
3/11/2009
3/31/2009
4/17/2009
37
3
3922 LAMAR AVENUE
5/29/2009
5/29/2009
6/14/2009
6/26/2009
28
4
3250 50 UTH COLLEGIATE
5/26/2009
5/26/2009
6/11/2009
7/7/2009
42
5
2085 FITZH UG H
8/13/2009
8/13/2009
9/2/2009
9/17/2009
35
6
3070 LAMAR AVEN UE
9/4/2009
9/4/2009
9/14/2009
10/8/2009
34
7
295 STO NE AVEN UE
8/5/2009
8/5/2009
8/19/2009
9/28/2009
54
8
6780 COLLIER DRIVE
3/9/2009
7/1/2009
114
9
1335 20TH STREET NE
7/9/2009
7/9/2009
0
10
2400 CLARKSVILLESTREET
8/7/2009
8/7/2009 & 9/8/2009
8/21/2009 & 9/8/2009
9/17/2009
41
11
2805 PINE MILL ROAD
11/16/2009
11/20/2009
1/20/2010
65
12
609 NO RTH MAIN
1/27/2010
1/27/2009
2/1/2010
2/15/2010
d
19
it
*Intludes time between pe
ready includes in-house rev
rmit ready and wh
iew of site ptan an
en permit picked up. T
d receipt of revisions t
perm
ime between revisions received an
o site plan.
RESIDENTIAL NEW CONSTRUCTION JAN. 2009-JAN.2010
1
2
3
4
5
6
7
8
9
1(
1:
1;
ADDRESS
DATE BV RECEIVE
PLANS
PASSED BV
DATE PERMIT
*ISSUED*
TOTAL DAYS
1600 FITZHUGH
N/A
N/A
1/2/2009
0
3505 SUMMERHILL
N/A
N/A
1/2/2009
0
4220/4222 PINE MILLRD
3524 CLARKSVILLE
3/26/2009
3/26/2009
4/1/2009
4/1/2009
4/21/2009
4/21/2009
26
26
140 9TH ST SE
4/20/2009
4/23/2009
4/30/2009
10
3310 SUMMERHILL
4/21/2009
4/24/2009
5/11/2009
20
4120/4122 PINE MILL RD
6/26/2009
N/A
6/16/2009
0
195 44TH ST SW
N/A
N/A
6/24/2009
0
3235 19TH ST SW
6/29/2009
N/A
6/29/2009
0
) 4100/4102 PINE MILL RD
7/23/2009
7/30/2009
8/3/2009
11
L 175 44th ST SW
8/4/2009
8/12/2009
8/14/2009
10
~ 4200/4202 PINE MILL RD 11/2/2009 N/A 11/2/2009 0
*Includes time between permit ready and permit picked up, as well as, in-house review of site plans and
receipt of revisions to site plan.
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City of Paris Fee Schedule
"uuuui
Total Valuation
Fee
(dollars)
1,000.00 and less
$20.00
1,001.00 to
$20.00 for the first $1,000.00 plus $5.00 for each additional thousand
50,000.00
or fraction thereof, up to and including $50,000.00.
50,001.00 to
$265.00 for the first $50,000.00 plus $4.00 for each additional
100,000.00
thousand or fraction thereof, up to and including $100,000.00.
100,001.00 to
$465.00 for the first $100.000.00 plus $3.00 for each additional
500,000.00
thousand or fraction thereof, up to and including $500,000.00.
500,001.00 and up
$1,665.00 for the first $500,000.00 plus $2.00 for each additional
thousand or fraction thereo£
nT;-- V-.
1111A1.. 1.' l-~.J •
In-g,round swimming pool
$ 25.00
Amusement activity pennit
$ 25.00
Application for certificate of occupancy
$ 10.00
Temporary release for utilities
$ 10.00
House Moving Fee
$100.00
Certificate of Occupancy
$ 25.00
Manufactured Home (by New Ordinance)
$100.00
Concession Stand Fee
$ 25.00
S' P mit Fees •
i n er
Up to 50 Square Feet
$ 25.00
51 Sq. Ft. -100 Sg. Ft.
$ 50.00
lOl Sq. Ft. - 200 Sq. Ft.
$ 75.00
200 Sq. Ft. and up
$ 100.00
OOG174
Proposed Permit Fee
v.,i„~tin., Fee
ruw+v..••
$2,000.00 and less
$30.00
$2,001.00 to $10,000.00
$75.00
$10,001.00 to $25,000.00
75.00 for the first 10,000.00 plus 8.00 for each
additional $1,000.00, or fraction thereof, to and
including $25,000.00
$25,001.00 to $50,000.00
195.00 for the first $25,000.00 plus 7.00 for each
additional $1,000.00, or fraction thereof, to and
including $50,000.00
$50,001.00 to $100,000.00
370.00 for the first $50,000.00 plus 6.00 for each
additional $1,000.00, or fraction thereof, to and
including $50,000.00
$100,001.00 to $500,000.00
670.00 for the first $100,000.00 plus 5.00 for each
additional $1,000.00, or fraction thereof, to and
including $500,000.00
$500,001.00 to $1,000,000.00
2670.00 for the first 500,000.00 plus 4.00 for each
additional $1,000.00, or fraction thereof, to and
including $500,000.00
$1,000,001.00 and up
4670.00 for the first 1,000,000.00 plus 3.00 for each
additional $1,000.00, or fraction thereof, to and
including $1,000,000.00
4~..! ~ V' ~ ls 1/ r
The International Code Council is pleased to provide the
following Building Valuation Data (BVD) for its members. The
BVD will be updated at six-month intervals, with the next
update in August 2010. ICC strongly recommends that all
jurisdictions and other interested parties actively evaluate and
assess the impact of this BVD table before utilizing it in their
current code enforcement related activities.
The BVD table provides the "average" construction costs per
square foot, which can be used in determining permit fees for
a jurisdiction. Permit fee schedules are addressed in Section
109.2 of the 2009 Internationa! Building Code (IBC) whereas
Section 109.3 addresses building permit valuations. The
permit fees can be established by using the BVD table and a
Permit Fee Multiplier, which is based on the total construction
value within the jurisdiction for the past year. The Square Foot
Construction Cost table presents factors that reflect retative
value of one construction classification/occupancy group to
another so that more expensive construction is assessed
greater permit fees than less expensive construction.
ICC has developed this data to aid jurisdictions in determining
permit fees. It is important to note that while this BVD table
does determine an estimated value of a building (i.e., Gross
Area x Square Foot Construction Cost), this data is only
intended to assist jurisdictions in determining their permit fees.
This data table is not intended to be used as an estimating
guide because the data only reflects average costs and is not
representative of specific construction.
This degree of precision is sufficient for the intended purpose,
which is to help establish permit fees so as to fund code
compliance activities. This BVD table provides jurisdictions
with a simplified way to determine the estimated value of a
building that does not rely on the permit applicant to determine
the cost of construction. Therefore, the bidding process for a
particular job and other associated factors do not affect the
value of a building for determining the permit fee. Whether a
specific project is bid at a cost above or below the computed
vafue of construction does not affect the permit fee because
the cost of related code enforcement activities is not directly
affected by the bid process and results.
Building Yaluation
The following building valuation data represents average
valuations for most buildings. In conjunction with IBC Section
109.3, this data is offered as an aid for the building official to
determine if the permit valuation is underestimated. Again it
should be noted that, when using this data, these are
"average" costs based on typical construction methods for
each occupancy group and rype of construction. The average
costs include foundation work, structural and nonstructural
building components, electrical, plumbing, mechanical and
interior finish material. The data is a national average and
does not take into account any regional cost differences. As
such, the use of Regional Cost Modifiers is subject to the
authority having jurisdiction.
Permit Fee Multiplier
Determine the Permit Fee Multiplier:
1. Based on historical records, determine the total annual
construction value which has occurred within the
jurisdiction for the past year.
2. Determine the percentage of the building
department budget expected to be provided by building
permit revenue.
Bidg. Dept. Budget x
Permit Fee Multiplier =
Total Annual Construction Value
Example
The building department operates on a$300,000 budget, and _
it expects to cover 75 percent of that from building permit fees.
The total annual construction value which occurred within the
jurisdiction in the previous year is $30,000,000.
Permit Fee Multiplier =
$300,000 x 75%
= 0.0075
$30,000,000
Permit Fee
The permit fee is determined using the building gross area, the
Square Foot Construction Cost and the Permit Fee Multiplier.
Permit Fee = Gross Area x Square Fooi Construction Cost
x Permit Fee Multiplier
Example
Type of Construction: IIB
Area: 1 st story= 8,000 sq. ft.
2nd story = 8,000 sq. ft.
Height: 2 stories
Permit Fee Multiplier = 0.0075
Use Group: B
1. Gross area:
Business = 2 stories x 8,000 sq. ft. = 16,000 sq. ft.
2. Square Foot Construction Cost:
B/IIB = $140.34/sq. ft.
3. Permit Fee:
Business = 16,000 sq. ft. x$140.34/sq. ft x 0.0075
_ $16,841
Building, Valuation Data - February 2010
Important Points
The BVD is not intended to apply to alterations or repairs
to existing buildings. Because the scope of alterations or
repairs to an existing building varies so greatly, the Square
Foot Construction Costs table does not reflect accurate
values for that purpose. However, the Square Foot
Construction Costs table can be used to determine the
cost of an addition that is basically a stand-alone building
which happens to be attached to an existing building. In
the case of such additions, the only alterations to the
existing building would involve the attachment of the
addition to the existing building and the openings between
the addition and the existing building.
~ For purposes of establishing the Permit Fee Multiplier, the
estimated total annual construction value for a given time
period (1 year) is the sum of each building's value (Gross
Area x Square Foot Construction Cost) for that time period
(e.g., 1 year).
The Square Foot Construction Cost does not include the
price of the land on which the building is built. The Square
Foot Construction Cost takes into account everything from
foundation work to the roof structure and coverings but
does not include the price of the land. The cost of the land
does not affect the cost of related code enforcement
activities and is not included in the Square Foot
Construction Cost.
Square Foot Construction Costs a' b, °
Grou 2009 International Buildin Code
1A
1B
2A
2B
3A
36
4
SA
5B
A-1 Assembl , theaters, with sta e
204.81
197.86
192.77
184.35
172.91
168.11
177.81
158.10
151.39
A-1 Assembl , theaters, without sta e
187.37
180.42
175.33
166.91
155.51
150.71
160.37
140.70
133.99
A-2 Assembl , ni htclubs
155.74
151.36
147.50
141.90
133.46
129.73
136.94
121.02
116.96
A-2 Assembl , restaurants, bars ban uet halls
154.74
150.36
145.50
140.90
131.46
128.73
135.94
119.02
115.96
A-3 Assembl churches
189.22
182.27
177.18
168.76
157.33
152.53
162.22
142.51
135.80
A-3 Assembl , eneral, communit halls, libraries, museums
158.87
151.92
145.83
138.41
125.97
122.17
131.88
111.16
105.45
A-4 Assembl , arenas
186.37
179.42
173.33
165.91
153.51
149.71
159.37
138.70
132.99
B Business
158.40
152.65
147.57
140.34
127.30
122.71
134.52
111.91
106.66
E Educational
171.53
165.59
160.55
153.20
141.88
134.72
147.92
123.99
119.32
F-1 Facto and industrial, moderate hazard
93.92
89.61
84.47
81.69
73.14
69.92
78.41
60.23
56.97
F-2 Factor and industrial, low hazard
92.92
88.61
84.47
80.69
73.14
68.92
77.41
60.23
55.97
H-1 Hi h Hazard ex losives
88.02
83.71
79.57
75.79
68.42
64.20
72.51
55.51
N.P.
1234 Hi h Hazard
88.02
83.71
79.57
75.79
68.42
64.20
72.51
55.51
51.25
H-5 HPM
158.40
152.65
147.57
140.34
127.30
122.71
134.52
111.91
106.66
1-1 Institutional, su ervised environment
159.09
153.50
148.95
142.51
130.74
127.30
138.80
117.44
112.84
I-2 Institutional, hos itals
266.39
260.64
255.56
248.33
234.50
N.P.
242.51
219.11
N.P.
I-2 Institutional nursin homes
185.59
179.83
174.76
167.53
154.81
N.P.
161.71
139.41
N.P.
1-3 Institutional, restrained
180.47
174.72
169.64
162.41
150.60
145.01
156.59
135.20
127.96
1-4 Institutional, da care facilities
159.09
153.50
148.95
142.51
130.74
127.30
138.80
117.44
112.84
M Mercantile
115.80
111.42
106.56
101.96
93.15
90.42
97.00
80.71
77.65
R-1 Residential, hotels
160.44
154.84
150.29
143.85
132.24
128.80
140.31
118.95
114.35
R-2 Residential, multi le famil
134.26
128.66
124.11
117.67
106.72
103.28
114.78
93.42
88.82
R-3 Residential, one- and two-famil
124.88
121.41
118.43
115.31
111.07
108.19
113.40
104.09
97.95
R-4 Residential care/assisted livin facilities
159.09
153.50
148.95
142.51
130.74
127.30
138.80
117.44
112.84
S-1 Stora e, moderate hazard
87.02
82.71
77.57
74.79
66.42
63.20
71.51
53.51
50.25
S-2 Stora e, low hazard
86.02
81.71
77.57
73.79
66.42
62.20
70.51
53.51
49.25
U Utility, miscellaneou
68.13
64.29
60.15
56.88
50.70
47.41
54.03
39.33
37.47
a. Private Garages use Utility, miscellaneous
b. Unfinished basements (all use group) _$15.00 per sq. ft.
c. For shell only buildings deduct 20 percent
d. N.P. = not permitted
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