TO: Mayor Collins and Town Council Members
FROM: Kevin Burke, Town Manager
Dawn Marie Buckland, Director of Administration & Govt Affairs
DATE: January 26, 2017
DEPARTMENT: Administration and Government Affairs Department
Staff Contact Dawn Marie Buckland, 480.348.3555
End
AGENDA TITLE:
Title
Full Cost Recovery Results from Planning and Engineering Fee Study
Body
Council Goals
Long Term Balanced Budget
SUMMARY STATEMENT:
The Town of Paradise Valley has retained Willdan and Associates to conduct a third-party review of its planning, building, engineering, and fire prevention fees, and is continuing a series of public meetings throughout the process to ensure transparency and stakeholder involvement. Willdan has concluded its research, review, and analysis, and has provided an assessment of the full cost of the activities related to each of these fees. The consultant will be on site for the January 26, 2017 study session to review and discuss these results with the Council. While the fee schedule itself is quite detailed, some of the highlights are as follows:
1. Building permits: for 100% cost recovery, fees for building permits would increase 5.2%. This could be accomplished by increasing the current rate by 5.2%.
a. If the current assumed value per square foot of $150 were adjusted to reflect the current market (closer to $400/sf), the recommended rate would be lowered accordingly to result in the same overall fee.
2. Streamlining fees: rather than a lengthy cafeteria style list of fees for each fixture, builders would pay a single flat rate fee for a plumbing permit, a mechanical permit, or an electrical permit.
3. Other planning, engineering, and fire inspection fees have been calculated to reflect the average actual cost to process these activities.
ARS §9-499.15 requires any new or increased fees to be posted on the Town’s website for 60 days prior to Council action. The schedule of fees supporting the full cost of recovery will be posted on the Town’s website on January 23, 2017 to allow the Council the authority to take action at the March 23 Council meeting. At that time the Town is permitted to adopt lower fees, but would need to provide another 60-day notice of intent to add or increase any fee beyond what was posted.
Should the Council adopt the fees on March 23, 2017 as posted or at a lower amount, the effective date of the new fees could be aligned with the May 1, 2017 anticipated effective date for the updated impact fees.
ATTACHMENT(S):
Cost Recovery Results
PowerPoint