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L L o it {Ilr CITY COUNCIL COMMUNICATION <br />u1tlI e AGENDA ITEM 8D <br />COLORADO - SINC F. <br />SUBJECT: BUILDING PERMIT FEE REVIEW <br />DATE: AUGUST 7, 2018 <br />PRESENTED BY: ROBERT ZUCCARO, PLANNING AND BUILDING SAFETY <br />DIRECTOR <br />SUMMARY: <br />Staff is presenting an evaluation of the costs associated with operating the City's <br />Building Safety Division to determine if the current building permit fee structure is aligned <br />with the cost of providing building permit and inspection services. The evaluation is <br />intended to estimate the annual cost of providing these services, including all direct and <br />overhead costs and support services in the City necessary to operate the program, and <br />compare those costs to typical annual revenue. The fees collected with building permits <br />are not intended to be revenue generating, but should be adequate to cover the cost of <br />operating the program. The following table summarizes cost by major category and <br />estimates the total current costs to operate Building Safety services at approximately <br />$1.22 million annually. Revenue from the last five years ranges from $1.03 million to <br />1.48 million, with an average of $1.25 million. An appendix to this memorandum <br />provides a more detailed breakdown of each cost category and total revenues. <br />Table 1: Building Safety Division Full Cost Summary <br />Category <br />Amount <br />Notes <br />Personnel <br />$782,196 <br />Allocation for Building Safety Division Direct Personnel and <br />Support Staff <br />Consultants <br />$203,000 <br />Supplemental Building Review and Inspection Services and <br />City Attorney Services <br />Vehicles/Mileage <br />$9,600 <br />Cost of Vehicles and Mileage Reimbursement <br />Facilities Rent <br />$81,463 <br />Market Rent Value of Facilities <br />Facilities Maintenance <br />$15,865 <br />Proportional Cost of Facilities Maintenance <br />Division Operations <br />$110,630 <br />Direct Operations Costs for Building Safety Division <br />Insurance <br />$2,953 <br />Proportional Share of Liability Insurance <br />Software <br />$13,300 <br />Permitting and Records Software Not Included in Division <br />Operations Budget <br />Estimate Annual <br />$1,219,006 <br />Division Costs <br />Average Fees <br />Collected 2013-2017 <br />$1,253,003 <br />(Range from $1,026,361 to $1,477,294) <br />CITY COUNCIL COMMUNICATION <br />251 <br />rA <br />