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
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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: