Memorandum

City of Lawrence

Planning & Development Services

 

TO:

David L. Corliss, City Manager

 

FROM:

Barry Walthall, Building Codes Administrator

 

C:

 

Scott McCullough, Director, Planning and Development Services;

Kurt Schroeder, Assistant Director, Development Services

 

Date:

September 25, 2013

 

RE:

Request for permit fee change for solar panel installations

 

Please place on the October 1, 2013 City Commission Agenda the following:

 

Consider adopting on first reading Ordinance No. 8916, amending the Permit Fee Schedule in Chapter V, Article 1, Section 176, by adding Note F.  The proposed amendment will establish a uniform permit fee of $65 for the installation of solar, thermal and photovoltaic systems requiring no structural changes to the building.

 

Background:

On July 9, 2013, the City Commission considered a request from Aron Cromwell of Cromwell Environmental/Solar to adjust the method for calculating permit fees for solar panel installation projects.  The City Commission referred the request to the Building Code Board of Appeals for recommendations.

 

Building permit fees are determined based on the estimated permit value at the time of application in accordance with Section 5-177 of the City of Lawrence Code.  The value to be used in computing the permit fee is the total value of all construction work for which the permit is issued, including materials and labor, as well as all finish work, painting, roofing, electrical, plumbing, heating, air conditioning, elevators, fire-extinguishing systems and any other permanent equipment.  This total value of construction is the basis for the calculation of the permit fee based on the Schedule of Permit Fees as published in Section 5-176 of the City of Lawrence Code.

 

Staff Analysis:

There is precedent in assessing standardized permit fees for specific types of projects.  In 2008 the Mechanical Code Board of Appeals received a similar request for the installation of residential mechanical equipment.  The stated intent with that request was to create a level playing field for all mechanical contractors pulling permits for residential installation and replacement of mechanical equipment.  Some mechanical contractors were concerned that different fees were assessed based on differing valuations for very similar work.  For that request staff researched the value of mechanical work that was being reported on permit applications, the average permit fees assessed for residential mechanical permits, and the resources expended in providing services.  The result was a standard fee of $65 per piece of equipment for mechanical permits to install or replace mechanical equipment for residential projects.  This $65 fee was determined to roughly approximate the expenditure of resources by the City to provide permitting and inspections services.  Similar methodology was used in 2010 when contractor licensing fees were adjusted to discontinue collecting fees for contractor continuing education.  A license application fee of $65 was established, and license fees were reduced from $200 to $65 for both initial licenses and annual renewals.  These fees are intended to cover the cost of providing review and inspection services as well as overhead costs.

 

Attached is a report from Eileen Horn, the City/County Sustainability Coordinator that provides information regarding best practices for assessment of fees for solar panel installations.  Ms. Horn’s report supports the concept of a standardized fee for solar panel installations as a best practice.  Also attached is an email from Scott W. White, Chair of the City of Lawrence Sustainability Advisory Board in support of the request.

 

Building Code Board of Appeals Review and Recommendation:

At its August 29, 2013 meeting, the Building Code Board of Appeals received a report with recommendations from staff and heard public comment.  After discussion, the Board voted 5-0 to recommend that the Building Permit Fee Schedule be amended as follows:

 

5-176                Schedule of permit fees.

                        On buildings, structures, electrical, gas, mechanical and plumbing systems or alterations requiring a permit, a fee for each permit shall be paid as required, in accordance with the schedule as established by the applicable governing authority.  (Ord. 8583)

 

Permit Fee Schedule

 

TOTAL VALUATION

FEE

$1 to $500

$23.50

$501 to $2,000

$23.50 for the first $500 plus 3.05 for each additional $100 or fraction thereof, to and including $2,000

$2,001 to $25,000

$69.25 for the first $2,000 plus $14.00 for each additional $1,000 or fraction thereof, to and including $25,000

$25,001 to $50,000

$391.25 for the first $25,000 plus $10.10 for each additional $1,000 or fraction thereof, to and including $50,000

$50,001 to $100,000

$643.75 for the first $50,000 plus $7.00 for each additional $1,000 or fraction thereof, to and including $100,000

$100,001 to $500,000

$993.75 for the first $100,000 plus $5.60 for each additional $1,000 or fraction thereof, to and including $500,000

$500,001 to $1,000,000

$3,233.75 for the first $500,000 plus $4.75 for each additional $1,000 or fraction thereof, to and including $1,000,000

$1,000,001 to $5,000,000

$5608.75 for the first $1,000,000 plus $3.15 for each additional $1,000 or fraction thereof, to and including $5,000,000

$5,000,001 to $15,000,000

$17,980.92 for the first $5,000,000 plus $1.54 for each additional $1,000 or fraction thereof, to and including $15,000,000

$15,000,001 and above

$33,562.30 for the first $15,000,000 plus $1.02 for each additional $1,000 or fraction thereof

 

                        Other Inspections and Fees:

 

(A)           Inspections outside of normal business hours                $47.00 per hour*

            (minimum charges - two hours)

 

(B)           Re-inspection fees when assessed by the building official$47.00 per hour*

            under the provisions of Section 108.8

 

(C)           Inspections for which no fee is specifically indicated      $47.00 per hour*

            (minimum charge - one-half hour)

 

(D)          Additional plan review required by changes, additions,    $47.00 per hour*

            or revisions to approved plans

            (minimum charge - one-half hour)

 

(E)           Permits for Residential Furnaces and Air Conditioners     $65.00**

(F)           Solar, thermal and photovoltaic systems requiring no      $65.00

            structural changes to the building

 

*Or the total hourly cost to the jurisdiction, whichever is the greatest. This cost shall include supervision, overhead, equipment, hourly wages and fringe benefits of the employees involved.

** Per piece of equipment.

 

Requested Action:

Staff requests that the City Commission adopt on first reading Ordinance No. 8916, which would amend Chapter V, Article 1, Section 5-176 to establish a uniform permit of $65 fee for solar, thermal and photovoltaic systems requiring no structural changes to the building.