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HomeMy WebLinkAbout2006 07 10 Regular 307 Permit Fees Fire damage CITY OF WINTER SPRINGS June 26, 2006 Regular Meeting 071006_ COMM_Regular_307 _SpeciaL Considerations_Fire_Damaged_Residences Page 1 of2 COMMISSION AGENDA ITEM 307 Consent Informational Public Hearin Re ular x July 10, 2006 Regular Meeting Mgr.~' Dept. Authorization REQUEST: City Manager requesting the Commission to provide direction regarding Special Considerations for Permit Fees for buildings damaged by fire. PURPOSE: This agenda item is needed for the Commission to determine what, if anything, the Commission desires to do regarding Mr. Craig Kaplan's request for special permit fees for repairs to houses damaged by fire. CONSIDERATIONS: On June 12, 2006 Mr. Kaplan appeared before the Commission to request that the Commission amend the building permit fee schedule to exempt or reduce building permit fees associates with repairs to residences damaged by fire. Mr. Kaplan moved into Oak Forest in 1983 and has been active in the homeowner association and civic related affairs. On December 4, 2004 Mr. Kaplan's home was substantially damaged by fire. As we understand it, Mr. Kaplan's insurer, Prudential sold the policy to Liberty Mutual Insurance Company. Mr. Kaplan has experienced considerable difficulty with the insurance companies in reaching an acceptable settlement. During the period of dispute, the cost of construction has increased beyond his coverage. The matter is complicated by the fact that Mr. Kaplan chose to enlarge his home 504 square feet during the repair process further increasing his building cost and his permit fee cost. In summary, as we understand it, the cost of the extra square feet of space Mr. Kaplan chose to add to the repair job, and the rapid increases in construction cost during the dispute period with the insurance companies resulted in a substantial increase in anticipated building permit cost and construction cost, which are in excess to what the insurance company is willing to pay. Mr. Kaplan requested that the city reduce the cost of his $6,375.00 building permit fee. The building department reduced his permit to $4,488.00. In calculation of the reduced fee Mr. Kaplan was charged $12 per $1,000 of construction value for the restoration of the original building. This was the fee in place at the time the original building was constructed. The current fee of $17 per $1,000 of construction value was applied to the 504 square foot addition. CITY OF WINTER SPRINGS June 26, 2006 Regular Meeting 071006_ COMM_Regu1ar_307 _SpeciaL Considerations_Fire_Damaged_Residences Page 2 of 2 At this time, Mr. Kaplan is requesting the city to reduce or eliminate building permit fees across the board for residences damaged by fire. The Commission has three alternatives as follows: 1. Amend the permit fee schedule so that whatever relief is granted would be charged to all persons. 2. Have the general fund reimburse the development services fund on a case by case basis where the Commission would decide to give some form of permit relief. 3. Maintain the schedule as is. Although we sympathize with Mr. Kaplan's situation, Staff's recommendation is for the Commission not to start down the slippery slope of discounting permits, and in the alternative to maintain the permit schedule as is for a number of reasons. 1. The development services fund is an enterprise fund set up to be 100% self supporting. Any loss of revenue resulting from special privileges has to be supplemented by person not receiving the special privileges. 2. As we learned from the temporary waiver of permit fees for hurricane repairs, good intentions do not always get the intended result. In that case we were reminded that contractors almost always build the cost of permit fees into their price weather they pay them or not. In this case, contractors walked away with more than an estimated $100,000 in permit fees that residents paid and the city never received. In most cases the same will happen with other permit fees discounts. 3. The cost for providing building code services does not change regardless of what causes the need for those services. As stated before, privileged discounts simply place the cost on the customers who does not receive the privileged discount. 4. Where does it stop? How do you give special fee consideration to persons who have experienced a fire, when you do not give a privilege fee to a person with storm damage, termite damage, dry rot damage, and damages caused by aging of a building? RECOMMENDATION: It is recommended that the city not get involved in mitigating the cost of repairs and improvements resulting from disputes between home owners and their insurance companies, and or residents who are under insured, and in the alternative retain the existing schedule. ATTACHMENTS: COMMISSION ACTION: