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HomeMy WebLinkAbout2005 08 08 Regular Item 510- Resolution 2005-29, Building Permit Fee Schedule CITY COMMISSION AGENDA ITEM 510 Consent Information Public Hearin Re ular x fDep~ August 8. 2005 Meeting MGR. }t-- REQUEST: The Community Development Department/Building Division requests the City Commission adopt Resolution 2005-29 which revises the Building Permit Fee schedule for new construction and provides for a methodology for computing and updating the Permit Fee Multiplier. PURPOSE: The purpose ofthis agenda item is to recommend approval of Resolution 2005-29 which revises certain portions of Section V of Resolution 2001-45. This revision updates the Building Valuation Data to reflect current construction values as well as providing for regular updates to these values as determined by the International Code Council. This revision also provides a methodology for updating the Building Permit Fee multiplier annually. APPLICABLE REGULATIONS: Florida Municipal Home Rule Powers Act Florida Statute 166.201. Taxes and chan!es A municipality may raise, by taxation and licenses authorized by the constitution or general law, or by user charges or fees authorized by ordinance, amounts of money which are deemed necessary for the conduct of municipal government and may enforce their receipt and collection in a manner prescribed by ordinance not inconsistent with law. CHRONOLOGY: December 10,2001 - Adoption of Resolution 2001-45 amending and revising the City's fee schedule January 10, 2005 - City Commission adopted Resolution 2005-04 amending and revising the Schedule of Fees for Zoning, Planning, and Development Services. August 8, 2005 Regular Item 510 Page 2 CONSIDERATIONS: Since the adoption of Resolution 2001-45 in December 2001, the cost of building construction has experienced tremendous increases brought about by costs of materials, labor, and market demand. These costs increases are not reflected in the City's current Building Valuation Data or Permit Fee Multiplier. In addition, the new building codes have continually placed higher requirements for inspections on the City's Building Department. The number of inspections required for a single-family home has increased by 60 % since the City's current valuation data was published. The number of inspections for a townhouse (currently the City's most prevalent type of residential construction) has increased by 129%. In addition, when the current valuation data was published, most of the construction in the City was single family type housing. Now, the Building Department is being called upon to inspect not only townhouses but buildings with mixed-use occupancies, structures that are taller and require additional coordination of threshold inspections, and developments that are arranged with higher densities that require a substantial increase in review and inspection time for separation requirements, rated- assemblies, and partial inspections on a single assembly. The Southern Building Code Congress International (SBCCI) that had been publishing the building valuation data used by the City is no longer publishing said data and no updates will be available for that valuation data. The SBCCI has joined with the International Code Council (ICC) in an effort to bring about a unified organization to deal with the International Building Code. The current (2004) Florida Building Code is closely modeled after the International Building Code. At the present time, the ICC Building Valuation Data is the only building valuation data that is researched by industry leaders and published to aid local governments in the assessment of building permit fees. This data is updated every six (6) months. The Proposed Resolution would also allow the City to automatically incorporate the updates to the Building Valuation Data. If the City does not adopt this data, the only options are to stay with the out-dated data currently in use or to undertake an independent study to attempt to set valuation data amounts. The ICC also provides a methodology to determine the Building Permit Multiplier. This is an important aspect of the ICC provisions since updates to the local multipliers currently in use are not longer published. This methodology is used to provide a multiplier that will allow for the accurate assessment of permit fees based upon the historical operating costs of the Building Department. This multiplier is updated by the Building Department on an annual basis, based upon the previous year's operating costs and the total annual construction value. FINDINGS: 1. The amount and complexity of construction within the City has increased significantly in the past four years since the current construction valuation data and permit fee multiplier was adopted by the City. 2. The type of construction and increased complexity of said construction have and will continue to increase the City's cost for outside consultants for inspection and plans review. August 8, 2005 Regular Item 510 Page 3 3. There is a need to update the Building Valuation Data and the Permit Fee Multiplier to account for the exponential rise in construction cost over the past four years since the City's current Valuation Data was published. RECOMMENDATION: Staff recommends that the City Commission amend and revise its Building Valuation Data and Permit Fee Multiplier by adopting Resolution 2005-29. ATTACHMENTS: A. Resolution 2005-29 B. International Code Council Building Valuation Data CITY COMMISSION ACTION: ATTACHMENT A RESOLUTION NO. 2005-29 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, FLORIDA, AMENDING SECTION V. OF RESOLUTION 2001-45 TO REVISE THE SOURCE FOR BUILDING V ALUA TION DATA AND INCORPORATING THE PERMIT MULTIPLIER METHODOLOGY AS SPECIFIED BY THE INTERNATIONAL CODE COUNCIL; PROVIDING FOR CONFLICT; PROVIDING FOR REPEAL OF PRIOR INCONSISTENT RESOLUTIONS OR PORTIONS THEREOF; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Winter Springs has the authority to amend and repeal resolutions; and WHEREAS, a municipality may raise, by taxation and licenses authorized by the constitution or general law , or by user charges or fees authorized by ordinance, amounts of money which are deemed necessary for the conduct of municipal government and may enforce their receipt and collection in a manner prescribed by ordinance not inconsistent with law, See Florida Statute 166.201; and, WHEREAS, the City Commission deems it is in the best interests of the City to amend the Building Permit Fee schedule to update the construction valuation data and to amend the Permit Fee Multiplier to current rates in accordance with the International Code Council recommendations; and WHEREAS, the current methodology utilized by the City for construction valuation and permit fee multiplier are outdated and are no longer being updated by the issuing agency; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, SEMINOLE COUNTY, FLORIDA, AS FOLLOWS: Section 1. follows: Building Permit Fees. Section V of Resolution 2001-45 is hereby amended to read as Building Permit (for each $1,000 valuation or portion thereof) Minimum Fee R17 45 (Valuation of construction is determined by the most recent December publication of the Building Valuation Data table as printed in the Southern Building magazine Buildin~ Valuation Data as published by the International Code Council and the Permit Fee Multiplier is determined in October of each year utilizing the most recent methodology as specified by the International Code Council. ) The plan review fee for mechanical. plumbing and electrical reviews associated with new construction is computed at twenty-five (25%) percent of the building plan review fee for each discipline ($250 minimum). The plan review fee for accessibility and energy reviews associated with new construction is also computed at twenty-five (25%) percent of the building plan review fee for each discipline ($250 minimum), The Sprinkler Review fee is simply based on the number of sprinkler heads: 1-100. $275. 101- 200. $325. 201-300. $350. 301-400. $375. 401-500. $425. over 500. $500 plus $0.33 per sprinkler over 500. For hydraulicallv designed system. multiply the fee by two. (All other fees stated in Section V of Resolution 2001-45 shall remain in full force and effect) Section 2. Repeal of Prior Inconsistent Resolutions. All prior Resolutions or parts of Resolutions in conflict herewith are hereby repealed to the extent of the conflict. Section 3. Severability. If any section, subsection, sentence, clause, phrase, word, or portion of this resolution is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portion hereto. Section 4. Effective Date. This Resolution shall become effective immediately upon adoption by the City Commission of the City of Winter Springs, Florida. RESOLVED by the City Commission of the City of Winter Springs, Florida, in a regular meeting assembled on the 8th day of August, 2005. JOHN F. BUSH, Mayor ATTEST: ANDREA LORENZO-LUACES, City Clerk APPROVED AS TO LEGAL FORM AND SUFFICIENTCY FOR THE CITY OF WINTER SPRINGS ONLY ANTHONY A. GARGANESE, City Attorney ATTACHMENT B BUILDING VALUATION DATA The International Code Council is pleased to provide the following Building Valuation Data (BVD) for its members. The BVD will be updated and printed at six-month intervals, with the next update in August 2005. ICC strongly recommends that all jurisdictions and other interested parties actively evaluate and assess the impact of this BVD table before utilizing it in their current code enforcement related activities. The BVD table provides two main functions. In addition to providing the "average" construction costs per sq. ft., the data can be used in de- termining permit fees for a jurisdiction as well as calculating the antici- pated plan review fee charges by the ICC plan review service. Permit fee schedules are addressed in Section 108.2 of the 2003/ntemationa/ Building Code" (I BC") whereas Section 108.3 addresses building permit valuations. The permit fees can be established by using the BVD table and a Permit Fee Multiplier, which is based on the total con- struction value within the jurisdiction for the past year. The Square Foot Construction Cost table presents factors that reflect relative value of one construction classification/occupancy group to another so that more expensive construction is assessed greater permit fees than less expensive construction. ICC has developed this data to aid jurisdictions in determining permit fees. It is important to note that while this BVD table does de- termine an estimated value of a building (i.e., Gross Area x Square Foot Construction Cost), this data is only intended to assist jurisdic- tions in determining their permit fees. This data table is not intended to be used as an estimating guide since the data only reflects average costs and is not representative of specific construction. This degree of precision is sufficient for the intended purpose which is to help establish permit fees so as to fund code compliance activi- ties. This BVD table provides jurisdictions with a simplified way to de- termine the estimated value of a building that does not rely on the permit applicant to determine the cost of construction. Therefore, the bidding process for a particular job and other associated factors do not affect the value of a building for determining the permit fee. Whether a specific project is bid at a cost above or below the computed value of construction does not affect the permit fee since the cost of related code enforcement activities is not directly affected by the bid process and results. Building Valuation The following building valuation data represents average valuations for most buildings. In conjunction with IBC Section 108.3, this data is offered as an aid for the building official to determine if the permit valuation is underestimated. Again it should be noted that, when using this data, these are "average" costs based on typical construction methods for each occupancy group and type of construction. The average costs include structural, electrical, plumbing, mechanical, in- terior finish, normal site preparation, architectural and design fees, overhead and profit. The data is a national average and does not take into account any regional cost differences. To this end, the table con- taining the regional cost modifiers was last printed in the October 2003 issue and has been discontinued. PERMIT FEE MULTIPLIER Determine the Permit Fee Multiplier: 1. Based on historical records, determine the total annual construction value which has occurred within the jurisdiction for the past year. 2. Determine the percentage (%) of the building department budget expected to be provided by building permit revenue. Permit Fee Multiplier = Bldg. Dept. Budget x (%) Total Annual Construction Value Example The building department operates on a $300,000 budget, and it expects to cover 75 percent of that from building permit fees. The total annual construction value which occurred within the jurisdiction in the previous year is $30,000,000. Permit Fee Multiplier = $300.000 x 75% = 0.0075 $30,000,000 PERMIT FEE The permit fee is determined using the building gross area, the Square Foot Construction Cost and the Permit Fee Multiplier. Permit Fee = Gross Area x Square Foot Construction Cost x Permit Fee Multiplier Example Type of Construction: liB Height: 2 stories Permit Fee Multiplier = 0.0075 Use Group: B 1. Gross area: Business = 2 stories x 8,000 sq. ft. = 16,000 sq. ft. 2. Square Foot Construction Cost: BIIIB = $119.12/sq. ft. 3. Permit Fee: Business = 16,000 sq. ft. x $119.12/sq. ft x 0.0075 = $14,294 Area: 1st story = 8,000 sq. ft. 2nd story = 8,000 sq. ft. Important points to know . In most cases the BVD does not apply to additions, alterations or repairs to existing buildings. Because the scope of alterations or repairs to an existing building varies so greatly, the Square Foot Con- struction Cost does not reflect accurate values for that purpose. However, the Square Foot Construction Cost can be used to determine the cost of an addition which is basically a stand-alone building which happens to be attached to an existing building. In the case of such ad- ditions, the only alterations to the existing building would involve the at- tachment of the addition to the existing building and the openings between the addition and the existing building. . For purposes of establishing the Permit Fee Multiplier, the estimated total annual construction value for a given time period (1 year) is the sum of each building's value (Gross Area x Square Foot Construction Cost) for that time period (e.g., 1 year). . The Square Foot Construction Cost does not include the price of the land on which the building is built. The Square Foot Construction Cost takes into account everything from site and foundation work to the roof structure and coverings but does not include the price of the land. The February 2005 Building Safety Journal 37 BUilDING VALUATION DATA cost of the land does not affect the cost of related code enforcement activities and is not included in the Square Foot Construction Cost. ICC PLAN REVIEW FEE SCHEDULE The Plan Review fee is based on the estimated construction value cal- culated in accordance with the Square Foot Construction Costs in the Table (gross area x Square Foot Construction Costs). For buildings with an estimated construction value up to $3,000,000, the Building Plan Review fee is 0.0012 of the estimated value ($250 minimum). For buildings with an estimated construction value over $3,000,000 up to $6,000,000, the fee is $3,600 plus 0.0005 of the estimated value over $3,000,000. For buildings over $6,000,000, the fee is $5,100 plus 0.00035 of the valuation over $6,000,000. Special consideration may be given in computing Plan Review fees for buildings such as large warehouses or indoor recreational facilities due to their plan review simplicity. Such considerations may also be given to buildings with repetitive floor plans such as high-rise buildings. Structural reviews in areas of high seismic or wind risk will have an additional surcharge. Please contact your local ICC district office for more details. The plan review fee for Mechanical, Plumbing and Electrical Reviews is computed at 25 percent of the Building Plan Review fee for each discipline ($250 minimum). The plan review fee for Accessibility and Energy Reviews is also computed at 25 percent of the Building Plan Review fee for each disci- pline ($250 minimum). The Sprinkler Review fee is simply based on the number of sprin- kler heads: 1-100, $275; 101-200, $325; 201-300, $350; 301-400, $375; 401-500, $425; over 500, $500 plus $0.33 per sprinkler over 500. For hydraulically-designed systems, multiply the fee by two. SAMPLE PLAN REVIEW CALCULATION Type of Construction: IIIB Use Group: B Height: 3 stories, 35 feet Area/Floor: 15,000 sq. ft. Solution: 1. Gross square footage: 3 stories x 15,000 square feet 2. Compute estimated construction value: Square Foot Construction Costs Estimated Construction Value: 45,000 sq. ft. x $106.00/sq. ft. 3. Compute Plan Review fee: Building: $3,000,000 x 0.0012 $4,777,000 - $3,000,000 $1,770,000 x .0005 Total Building Review Fee Mechanical, Plumbing, Electrical: (.25)($4,485) Accessibility and Energy: (.25)($4,485) = 45,000 sq. ft. = $106.00/sq. ft. = $4,770,000 = $3,600 = $1)70,000 = $885 = $4,485 = $1,121 each = $1,121 each Questions concerning the service should be directed to: Christopher R. Reeves, P.E. Manager, Plan Review Services 1-888-ICC-SAFE Extension 4309 Square Foot Construction Costsa, b, C Group (2003 International Building Code) Type of Construction IA IB IIA liB iliA IIIB IV VA VB A-1 Assembly, theaters, with stage 175.32 169.68 165.73 158.91 147.77 146.99 153.89 136.91 131.98 Assembly, theaters, without stage 161.71 156.07 152.12 145.30 134.16 133.38 140.28 123.30 118.37 A-2 Assembly, nightclubs 132.76 128.65 125.40 120.51 111.89 111.60 116.32 102.86 99.40 A-2 Assembly, restaurants, bars, banquet halls 131 .76 127.65 123.40 119.51 109.89 110.60 115.32 100.86 98.40 A-3 Assembly, churches 162.43 156.79 152.84 146.02 134.85 134.08 141.00 124.00 119.07 A-3 Assembly, general, community halls, 134.48 128.84 123.89 118.07 105.89 106.12 113.05 95.04 91.11 libraries, museums A-4 Assembly, arenas 131.76 127.65 123.40 119.51 109.89 110.60 115.32 100.86 98.40 B Business 133.93 129.08 124.97 119.12 106.63 106.00 114.57 95.23 91.59 E Educational 140.45 135.71 131.83 125.99 116.21 113.47 121.83 103.83 99.95 F-1 Factory and industrial, moderate hazard 81.27 77.54 72.95 70.70 61.13 62.13 67.81 52.13 49.47 F-2 Factory and industrial, low hazard 80.27 76.54 72.95 69.70 61.13 61.13 66.81 52.13 48.47 H-1 High Hazard, explosives 76.28 72.55 68.96 65.71 57.30 57.30 62.82 48.30 N.P. H234 High Hazard 76.28 72.55 68.96 65.71 57.30 57.30 62.82 48.30 44.64 H-5 HPM 133.93 129.08 124.97 119.12 106.63 106.00 114.57 95.23 91.59 1-1 Institutional, supervised environment 132.08 127.54 124.11 119.07 109.24 109.18 115.46 100.39 96.42 1-2 Institutional, incapacitated 222.91 218.06 213.95 208.11 195.19 N.P. 203.55 183.79 N.P. 1-3 Institutional, restrained 152.14 147.29 143.18 137.34 126.08 124.44 132.78 114.68 109.03 1-4 Institutional, day care facilities 132.08 127.54 124.11 119.07 109.24 109.18 115.46 100.39 96.42 M Mercantile 98.85 94.74 90.49 86.61 77.50 78.21 82.42 68.47 66.01 R-1 Residential, hotels 133.46 128.92 125.49 120.45 110.67 110.61 116.90 101.82 97.85 R-2 Residential, multiple family 111.15 106.61 103.18 98.14 88.52 88.47 94.75 79.68 75.70 R-3 Residential, one- and two-family 107.30 104.37 101.80 98.99 94.44 94.22 97.31 89.97 84.71 R-4 Residential, care/assisted living facilities 132.08 127.54 124.11 119.07 109.24 109.18 115.46 100.39 96.42 S-1 Storage, moderate hazard 75.28 71.55 66.96 64.71 55.30 56.30 61.82 46.30 43.64 S-2 Storage, low hazard 74.28 70.55 66.96 63.71 55.30 55.30 60.82 46.30 42.64 U Utility, miscellaneous 57.40 54.28 51.05 48.50 42.07 42.07 45.77 34.59 32.93 a. Private Garages use Utility, miscellaneous b. Unfinished basements (all use group) = $15.00 per sq. fl. c. N.P. = not permitted 38 Building Safety Journal February 2005