TC Res. No. 2009-25 TEMPORARY FEE REDUCTION AND WAIVERTOWN OF AVON, COLORADO
RESOLUTION NO. 09 -25
SERIES OF 2009
A RESOLUTION ADOPTING A TEMPORARY FEE REDUCTION AND WAIVER
PROGRAM FOR ZONING, DESIGN REVIEW AND BUILDING PERMIT
APPLICATIONS COLLECTED BY THE TOWN OF AVON
WHEREAS, the Town of Avon has experienced a significant reduction in development
activity and related fees collected by the Community Development Department in the 2009
calendar year;
WHEREAS, the Avon Town Council held a public meeting on July 28, 2009 to discuss the
merits of a pen-nit fee reduction or waiver policy in an effort to stimulate development and
building activity and finds that the temporary waiver of zoning and design review fees and
certain building permit fees shall encourage development and building activities and will thereby
promote the economic recovery and health of the Avon community; and,
WHEREAS, the Town Council may enact and update fee schedules by resolution to respond
to changing market conditions for application processes as set forth in the Avon Municipal Code
Section 15.08.050(a) (Building), Title 17 (Zoning) of the Avon Municipal Code and in the Town
of Avon Residential, Commercial, and Industrial Design Review Guidelines.
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE
TOWN OF AVON, COLORADO:
The Town Council hereby adopts the following Temporary Fee Reduction and Fee
Waiver Schedule as set forth and incorporated herein as "Exhibit A to Resolution 09 -25"
reducing or waiving fees related to the processing of zoning, design review and building permit
applications.
ACCEPTED, APPROVED AND ADOPTED ON AUGUST 11, 2009.
UNCIL
Ronald C. Wolfe, Mayor
ATTEST:
,;at -5 lv.� �
By: McK Town Clerk
EXHIBIT A to RESOLUTION 09 -25
Town of Avon Community Development Department
Temporary Fee Reduction and Fee Waiver Schedule
Adopted August 11, 2009
The following fees shall be temporarily eliminated or reduced until February 11, 2010, as
described below and subject to the conditions and exclusions stated in this Temporary Fee
Reduction and Fee Waiver Schedule. The fees established by Resolution No. 06 -01 for
Zoning review, Design review and Building Permit review shall be automatically reinstated
and effective on February 12, 2010, and thereafter, unless and until further modified by
resolution of the Avon Town Council.
Temporarily Reduced or Waived fees:
(1) 100% of all Zoning fees are waived until February 12, 2010.
(2) 100% of all Design Review fees are waived until February 12, 2010.
(3) 100% of all Building Permit fees for interior remodels, replacement of exterior stucco
and /or siding, and roof covering repair and replacement are waived until February 12,
2010.
(4) 10% for all other Building Permit fee are waived until February 12, 2010.
Conditions and Exclusions:
(a) All plan submittals must be deemed complete by the Community Development
Department on or prior to 5:00 p.m. February 11, 2010 in order to qualify for any fee
reduction or fee waiver. Plan submittals which are complete, eligible and received timely
by the Town of Avon shall be eligible for the fee waiver or fee reduction throughout the
zoning and/or design review process or throughout the period of the issued building
permit in accordance with procedures and regulations adopted by the Town of Avon and
as may be amended from time to time by the Town of Avon.
(b) The temporary fee reduction or fee waiver shall not apply to any outsourced plan check
fees, water tap fees, the Eagle County Fire Protection District Impact Fee, legal fees, any
other impact fees imposed by the Town of Avon, and any other direct costs borne by the
Town of Avon in reviewing applications for Zoning, Design Review and Building
Permits.
(c) In all instances, the fee waiver must be approved by both the Chief Building Official and
the Community Development Director.
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To: Honorable Mayor and Town Council coLoR ,a D
Thru: Larry Brooks, Town Manager
From: Eric Heidemann, Assistant Town Manager, Community Development
Date: July 28th, 2009
Re: Community Development Department Discussion Regarding the Merits of a
Permit Fee Reduction or Waiver Policv
Summary:
Given the recent economic climate and downturn in the construction industry, the Council expressed
interest in evaluating the merits of a permit fee reduction or waiver policy in an effort to stimulate
construction activity. In order for Council to consider this type of fiscal policy, staff has prepared this
memo to help frame the discussion and highlight important consideration points. The information in
this memo includes current and historical department revenues, an explanation of the Community
Development Department's current staffing level, and a recommendation for a permit fee reduction
program which is based on all these factors.
In a typical annual construction cycle, the majority of building permits are issued during the spring
months of April and May. The two primary reasons for this are: (1) weather related; exterior
construction is more manageable when the weather is fair; and, (2) the ability to obtain right -of -way
permits since they are issued no earlier than April 15th. This typical permit cycle is important to
consider for the Council, at least relative to expectations of future revenues for the remaining year.
Staffs expectations are that building permit revenues will be relatively flat for the remaining year
because most projects starts that are planned for this year have likely been issued by May or June.
Background:
It's also important to note that the Department strives every year to balance revenues against
expenditures in an effort to avoid a subsidy by the General Fund. However, because of the
significant reduction in permit activity relative to what was projected for 2009, the Department will be
subsidized by the General Fund at some level regardless of whether we institute this program or not.
The question for Council is whether a fee waiver policy will stimulate the local construction industry
resulting in added jobs and direct or indirect revenues not only to the Town, but the County as a
whole, with the understanding that a portion of the anticipated revenues expected for the remaining
calendar year will be lost.
Typical Building Permit Fee Calculator
Total Value of the Work = Fs 1,000,000.00 r$
$1 to $500
$501 to $2000
$2001 to $25,000
$25,001 to $50,000
$50,001 to $100,000
$100,001 to $500,000
$500,001 to $1,000,000 $ 6,185.00
$1,000,001 and more
Permit Cost
Building Permit Fee
$
6,185.00
$
_
Plumbing Permit Fee
$
927.75
$
- 15% of Building Permit Fee
Mechanical Permit Fee
$
927.75
$
- 15% of Building Permit Fee
Wood Burning Fireplace Fee
$
-
$
- If added is a constant $150
Subtotal
$
8,040.50
$
Plan Review Fee
$
4,020.25
$
- 65% of Building Permit Fee
Plumbing Plan Review Fee
$
603.04
$
- 65% of Plumbing Permit FE
Mechanical Plan Review Fee
$
603.04
$
- 65% of Mech. Permit Fee
Commercial Plan Review Fee (Com Only)
$
-
$
-
Subtotal
$
5,226.33
$
ERFPQ Impact Fee
$
-
$
_
Total Permit Cost F$ 13,266.83][$ - -�
Staff Recommendation:
On average, a building permit fee is 1% of the construction cost (labor and material) of a project.
This is somewhat of an oversimplified average, and does not account for other associated fees
(rezoning, architecture, design review, etc) which also impact the overall construction costs of a
project. There is no question that any reduction in permit costs would benefit both individual property
owners, as well as large developer. However, it is unlikely that a fee reduction program will be the
determining factor whether a developer or property owner initiates a project or not. The most
compelling reasons for a developer to undergo a project are whether the product can be sold and if
construction loans /financing is available.
A more productive approach may be a program that includes waiving fees associated with
entitlement processes such as rezoning. This is suggested for several reasons: first, lost revenues
in the category would be relatively minor as compared to other revenue sources (see table above);
and second, this allows the Town to match our resources (planning staff) with what may be a heavier
Town
Schedule
Adopted January 10, 2006
The required application fees below include the cost of processing and public notice posting and
shall be paid in full at the time of application submission. No fees are refundable for any
processing or partial processing of a development or design review application.
No application shall be considered or reviewed until the application fees are paid in full and the
application is deemed complete. Where multiple applications are required, multiple fees shall be
assessed (i.e. a new PUD may include a development agreement, etc). Fees are not required
for Town - initiated applications, such as revisions to the Zoning Code.
Zoning & Subdivision Fees
Pre - Application & Conceptual Reviews:
Staff Review & Development Review Committee (DRC)
No Charge
Community Development Committee Review (CDC)
$200.00
Staff, DRC Review and CDC and /or
Planning & Zoning Commission and Town Council
$500.00
Comprehensive Plan Amendments (inc. Area Plans):
Minor Amendment
$1,500.00
Major Amendment
$3,000.00
Zoning Code Amendments:
Planning & Zoning Commission
Determination of Uses
$500.00
Zoning Code Text Amendment
$3,500.00
Special Review Uses:
Residential Only
$200.00
Commercial /Industrial
$500.00
Rezoning:
To Residential District
$1,000.00
To All Others
$2,000.00
Planned Unit Developments (PUD):
1 -4 Dwelling Unit (DU) Residential Only
5 -50 DU Residential Only
50+ DU Residential Only
Mixed Use to 50 DU
Mixed Use over 50 DU
$1,000.00
$2,000.00
$2,000.00 Base Fee + $15.00 per DU
$2,000.00
$2,000.00 Base Fee + $15.00 per DU
Already Approved /Existing PUD (Under 50 DU)
Minor /Administrative Amendment Residential Only
Major Amendment Residential Only
Minor /Administrative Amendment Mixed Use
Major Amendment Mixed Use
$250.00
$500.00
$500.00
$1,000.00
5,000 — 9,999 SFGFA
10,000 — 19,999 SFGFA
20,000 — 49,999 SFGFA
Over 50,000 SFGFA
Minor Modification to Final Design
Residential
Mixed Use /Other
Extension to Final Design
Sign Fees:
Individual Sign from Code
Master Sign Program (MSP)
Master Sign Program Amendment
Variances from Sign Code or MSP
$500.00/$1,500.00
$1,000.00/$2,000.00
$1,500.00/$3,000.00
$2,500.00/$4,000.00
$75.00
$250.00
112 Final Design Fee
$100.00
$300.00
$300.00
$500.00
Right of Way Permit, Review and Inspection Fees
Base Permit Fee: $250.00
Additional transverse cut or driveway installation $75.00 each
Longitudinal installation greater than fifty (50) linear feet Base plus costs
Miscellaneous Fees
Appeals (inc. Design Review):
From Administrative Decision to P&Z $250.00
From P&Z to Council $250.00 + $50.00 to Town Clerk
Annexation:
Base Fee $3,500.00
(Add: Legal and Professional Fees)
After the Fact Applications:
Zoning 3x Application Fee
Design Review/ Minor Modification 3x Application Fee
Professional Consultant Fees: Cost
(Legal, Planning, Financial Modeling, and others as required and agreed to by applicant and
Town; please reference Professional Consulting Review Agreement form as provided.)
Staff Hourly Rates:
The following hourly rates for service are used for land use, design review and subdivision
application fees in 2006 and additional services may be billed at the hourly rate as necessary:
Community Development Director &
Town Engineer $79.00 /Hour
Senior Planner /Asst. Town Engineer $63.00 /Hour
Planner II/ Engineer II $57.00 /Hour
GIS Programmer /Planning Analyst &
Planner I /Engineer I $53.00 /Hour
FAFeesWpplication Fee Schedule Adopted 011006doc