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HomeMy WebLinkAbout10.A.2. Amendments to 2014 Shakopee Fee Schedule for a) building permits for water heaters and b) adjusted construction valuations for bldg permit fees General Business 10. A. 2. SHAKOPE E TO: Mayor and City Council Mark McNeill, City Administrator FROM: R. Michael Leek, Community Development Director DATE: 06/17/2014 SUBJECT: Amendments to 2014 Shakopee Fee Schedule for a) building permits for water heaters, and b) adjusted construction valuations for calculating building permit fees (F) Action Sought Offer and pass a motion adopting the proposed Fee Schedule amendments as presented or with revisions. Background At the June 3, 2014 meeting, and on the consent agenda, staff brought forward two proposed fee adjustments. As a result of the Legislature repealing that provision of State law that restricted certain permits. On the adopted City Fee Schedule that affected the fee for water heater installations. The current fee is $15.00 plus a$5 state surcharge. The proposed fee is $75.00 plus the state surcharge. The concern expressed by Councilor Lehman is that the change represents a five-fold increase in the fee. That is the case, however, with the current$1 5.00 fee the City recovers only about 20% of the cost of administering these permits. Thus, the proposal is to increase the permit fee to $75.00 to cover the cost of permit adminisitration. However, if the City Council feels the increase is too great it should provide direction as to what amount(if any) to raise this fee. In addition, there was a question regarding the basis and/or methodology for calculating the square footage costs of the proposed amended table. The author of this report reviewed the Minnesota Department of Labor and Industry site, and found that the International Code Council's Building Valuation Data is used in calculating the values found in the table. (a copy of the ICC February 2014 report is attached for the Council's information) These costs relate only to construction costs, and do not relate to any increase in assessed valuation that might result from improvements made to properties. Recommendation Staff recommends approval of the two fee schedule amendments as presented. Budget Impact There is no direct impact of the General Fund budget from the proposed amendments. The changes may result in minor changes in building permit fee collections. Relationship to Vision Because these items relate to State of Minnesota actions they are viewed as housekeeping items. Requested Action Offer and pass a motion adopting the proposed Fee Schedule amendments as presented or with revisions. 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'D •- > O W U U sue. 0: .� LL w ,� Q w OU c) M A d CO cn to Z. d kit, INTERNATIONAL Ira CODE COUNCIL People Helping People Build a Safer World' Building Valuation Data - February 2014 The International Code Council is pleased to provide the does not take into account any regional cost differences. As following Building Valuation Data (BVD) for its members. The such, the use of Regional Cost Modifiers is subject to the BVD will be updated at six-month intervals, with the next authority having jurisdiction. update in August 2014. ICC strongly recommends that all Permit Fee Multiplier jurisdictions and other interested parties actively evaluate and assess the impact of this BVD table before utilizing it in their Determine the Permit Fee Multiplier: current code enforcement related activities. 1. Based on historical records, determine the total annual The BVD table provides the "average" construction costs per construction value which has occurred within the square foot, which can be used in determining permit fees for jurisdiction for the past year. a jurisdiction. Permit fee schedules are addressed in Section 2. Determine the percentage (%) of the building 109.2 of the 2012 International Building Code (IBC) whereas department budget expected to be provided by building Section 109.3 addresses building permit valuations. The permit fees can be established by using the BVD table and a permit revenue. Permit Fee Multiplier, which is based on the total construction Bldg.Dept. Budget x(%) value within the jurisdiction for the past year. The Square Foot Permit Fee Multiplier= Construction Cost table presents factors that reflect relative Total Annual Construction Value value of one construction classification/occupancy group to Example another so that more expensive construction is assessed greater permit fees than less expensive construction. The building department operates on a $300,000 budget, and it expects to cover 75 percent of that from building permit fees. ICC has developed this data to aid jurisdictions in determining The total annual construction value which occurred within the permit fees. It is important to note that while this BVD table jurisdiction in the previous year is$30,000,000. does determine an estimated value of a building (i.e., Gross Area x Square Foot Construction Cost), this data is only p $300,000 x 75% intended to assist jurisdictions in determining their permit fees. Permit Fee Multiplier= =0.0075 J 9 P $30,000,000 This data table is not intended to be used as an estimating guide because the data only reflects average costs and is not Permit Fee representative of specific construction. The permit fee is determined using the building gross area,the This degree of precision is sufficient for the intended purpose, Square Foot Construction Cost and the Permit Fee Multiplier. which is to help establish permit fees so as to fund code Permit Fee=Gross Area x Square Foot Construction Cost compliance activities. This BVD table provides jurisdictions x Permit Fee Multiplier with a simplified way to determine the estimated value of a Example building that does not rely on the permit applicant to determine the cost of construction. Therefore, the bidding process for a Type of Construction: IIB particular job and other associated factors do not affect the Area: 1st story=8,000 sq.ft. value of a building for determining the permit fee. Whether a 2nd story=8,000 sq.ft. specific project is bid at a cost above or below the computed Height: 2 stories value of construction does not affect the permit fee because Permit Fee Multiplier=0.0075 the cost of related code enforcement activities is not directly Use Group: B affected by the bid process and results. 1. Gross area: Building Valuation Business=2 stories x 8,000 sq. ft. = 16,000 sq.ft. The following building valuation data represents average 2. Square Foot Construction Cost: valuations for most buildings. In conjunction with IBC Section B/IIB=$158.70/sq.ft. 109.3, this data is offered as an aid for the building official to determine if the permit valuation is underestimated. Again it 3. Permit Fee: should be noted that, when using this data, these are Business=16,000 sq.ft.x$158.70/sq.ft x 0.0075 "average" costs based on typical construction methods for =$19,044 each occupancy group and type of construction. The average costs include foundation work, structural and nonstructural building components, electrical, plumbing, mechanical and interior finish material. The data is a national average and Important Points For purposes of establishing the Permit Fee Multiplier, the •• The BVD is not intended to apply to alterations or repairs estimated total annual construction value for a given time to existing buildings. Because the scope of alterations or period (1 year) is the sum of each building's value (Gross repairs to an existing building varies so greatly, the Square Area x Square Foot Construction Cost)for that time period Foot Construction Costs table does not reflect accurate (e.g., 1 year). values for that purpose. However, the Square Foot • The Square Foot Construction Cost does not include the Construction Costs table can be used to determine the cost of an addition that is basically a stand-alone building price of the land on which the building is built. The Square which happens to be attached to an existing building. In Foot Construction Cost takes into account everything from the case of such additions, the only alterations to the foundation work to the roof structure and coverings but existing building would involve the attachment of the does not include the price of the land. The cost of the land addition to the existing building and the openings between does not affect the cost of related code enforcement the addition and the existing building. activities and is not included in the Square Foot Construction Cost. Square Foot Construction Costs a,°,c,d Group(2012 International Building Code) IA. ! IB IIA IIB IIIA 1IIB. IV. VA VB A-1 Assembly,theaters,with stage 224.49 217.12 211.82 202.96 190.83 185.33 196.14 174.43 167.83 A-1 Assembly,theaters,without stage 205.71 198.34 193.04 184.18 172.15 166.65 177.36 155.75 149.15 A-2 Assembly,nightclubs 177.15 172.12 167.31 160.58 150.83 146.74 154.65 136.68 132.81 A-2 Assembly,restaurants,bars,banquet halls 176.15 171.12 165.31 159.58 148.83 145.74 153.65 134.68 131.81 A-3 Assembly,churches _ 207.73 200.36 195.06 186.20 ' 174.41 168.91 179.38 158.02 151.41 A-3 Assembly,general,community halls,libraries,museums 173.36 165.99 159.69 151.83 138.90 134.40 145.01 122.50 116.89 A-4 Assembly,arenas 204.71 197.34 191.04 183.18 170.15 165.65 176.36 153.75 148.15 B Business 179.29 172.71 166.96 158.70 144.63 139.20 152.43 126.93 121.32 E Educational 192.11 185.49 180.05 171.90 160.09 151.62 165.97 139.90 135.35 F-1 Factory and industrial,moderate hazard 108.42 103.32 97.18 93.38 83.24 79.62 89.22 68.69 64.39 F-2 Factory and industrial,low hazard 107.42 102.32 97.18 92.38 83.24 78.62 88.22 68.69 63.39 H-1 High Hazard,explosives 101.53 96.44 91.29 86.49 77.57 72.95 82.34 63.02 N.P. H234 High Hazard 101.53 _ 96.44 91.29 86.49 77.57 72.95 82.34 63.02 57.71 H-5 HPM 179.29 172.71 166.96 158.70 144.63 139.20 152.43 126.93 121.32 I-1 Institutional,supervised environment 177.76 171.50 166.52 159.45 146.31 142.45 159.13 131.29 126.72 1-2 Institutional,hospitals 302.44 295.85 290.11 281.84 266.80 N.P. 275.58 249.09 N.P. 1-2 Institutional,nursing homes 209.38 202.79 197.05 188.78 175.72 N.P. 182.52 158.01 N.P. 1-3 Institutional,restrained 204.27 197.68 191.94 183.67 171.10 164.68 177.41 153.40 145.80 1-4 Institutional,day care facilities 177.76 171.50 166.52 159.45 146.31 142.45 159.13 131.29 126.72 M Mercantile 132.04 127.01 121.20 115.47 105.47 102.39 109.54 91.33 88.45 R-1 Residential,hotels 179.14 172.89 167.90 160.83_ 147.95 144.10 160.52 132.93 128.36 R-2 Residential,multiple family 150.25 143.99 139.01 131.94 119.77 115.91 131.62 104.74 100.18 R-3 Residential,one-and two-family 141.80 137.90 134.46 131.00 125.88 122.71 128.29 117.71 110.29 R-4 Residential,care/assisted living facilities 177.76 171.50 166.52 159.45 146.31 142.45 _ 159.13 131.29 126.72 S-1 Storage,moderate hazard 100.53 95.44 89.29 85.49 75.57 71.95 81.34 61.02 56.71 S-2 Storage,low hazard 99.53 94.44 89.29 84.49 75.57 70.95 80.34 61.02 55.71 U Utility,miscellaneous _ 75.59 71.22 66.78 63.37 _ 56.99 _ 53.22 _ 60.41 44.60 42.48 a. Private Garages use Utility,miscellaneous b. Unfinished basements(all use group)=$15.00 per sq.ft. c. For shell only buildings deduct 20 percent d. N.P.=not permitted BUILDING VALUATION DATA-MAY 2014 I MINNESOTA DEPARTMENT OF EABOR R at INDUSTRY The data is provided for comparison with valuations submitted by the applicant for permits. The unit costs are intended to include architectural,structural,electrical,plumbing and mechanical work. The Department of Labor and Industry/Construction Codes and Licensing Division strongly recommends that all local municipalities actively evaluate and assess the impact of using this building valuation table based on local construction cost history.The evaluation and assessment may result in lower or higher valuation data.See Minnesota Rules,chapter 1300.0160 regarding permit fee regulations. Group I-A I-B II-A II-B III-A III-B IV V-A V-B A-1 Assembly,theaters with stage 199.80 193.24 188.52 180.63 169.84 164.94 174.56 155.24 149.37 A-1 Assembly,theaters without stage 183.08 176.52 171.81 163.92 153.21 148.32 157.85 138.62 132.74 A-2 Assembly,nightclubs 157.66 153.19 148.91 142.92 134.24 130.60 137.64 121.65 118.20 A-2 Assembly,restaurants,bars,banquet halls 156.77 152.30 147.13 142.03 132.46 129.71 136.75 119.87 117.31 A-3 Assembly,churches 184.88 178.32 173.60 165.72 155.22 150.33 159.65 140.64 134.75 A-3 Assembly,general,community hall,libraries 154.29 147.73 142.12 135.13 123.62 119.62 129.06 109.03 104.03 museums A-4 Assembly,arenas 182.19 175.63 170.03 163.03 151.43 147.43 156.96 136.84 131.85 B Business 159.57 153.71 148.59 141.24 128.72 123.89 135.66 112.97 107.97 E Educational 170.98 165.09 160.24 152.99 142.48 134.94 147.71 124.51 120.46 F-1 Factory and industrial,moderate hazard 96.49 91.95 86.49 83.11 74.08 70.86 79.41 61.13 57.31 F-2 Factory and industrial,low hazard 95.60 91.06 86.49 82.22 74.08 69.97 78.52 61.13 56.42 H-1 High hazard,explosives 90.36 85.83 81.25 76.98 69.04 64.93 73.28 56.09 N.P. H-2,3,&4 High hazard 90.36 85.83 81.25 76.98 69.04 64.93 73.28 56.09 51.36 H-5 HPM 159.57 153.71 148.59 141.24 128.72 123.89 135.66 112.97 107.97 Page 2 BUILDING VALUATION DATA-MAY 2014 Group I-A I-B II-A II-B III-A III-B IV V-A V-B I-1 Institutional,supervised environment 158.21 152.64 148.20 141.91 130.22 126.78 141.63 116.85 112.78 1-2 Institutional,hospitals 269.17 263.31 258.20 250.84 237.45 N.P. 245.27 221.69 N.P. 1-2 Institutional,nursing homes 186.35 180.48 175.37 168.01 156.39 N.P. 162.44 140.63 N.P. 1-3 Institutional,restrained 181.80 175.94 170.83 163.47 152.28 146.57 157.89 136.53 129.76 1-4 Institutional,day care facilities 158.21 152.64 148.20 141.91 130.22 126.78 141.63 116.85 112.78 M Mercantile 117.52 113.04 107.87 102.77 93.87 91.13 97.49 81.28 78.72 R-1 Residential,hotels 159.43 153.87 149.43 143.14 131.68 128.25 142.86 118.31 114.24 R-2 Residential,multiple family(IRC-3) 133.72 128.15 123.72 117.43 106.60 103.16 117.14 93.22 89.16 R-3 Residential,one and two family(IRC-1 &IRC-2) 126.20 122.73 119.67 116.59 112.03 109.21 114.18 104.76 98.16 R-4 Residential,care/assited living facilities 158.21 152.64 148.20 141.91 130.22 126.78 141.63 116.85 112.78 S-1 Storage,moderate hazard 89.47 84.94 79.47 76.09 67.26 64.04 72.39 54.31 50.47 S-2 Storage,low hazard 88.58 84.05 79.47 75.20 67.26 63.15 71.50 54.31 49.56 U Utility,miscellaneous(IRC-4) 67.28 63.39 59.43 56.40 50.72 47.37 53.76 39.69 37.81 Notes: a.Private garages use Utility,miscellaneous. b.Unfinished basements(all use group)_$16.50/sf c.For shell only buildings deduct 20 percent d.N.P.=not permitted