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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. 4M Owl _,te I I 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