Submitted By
Tammie Grossman, Director of Development Customer Services
Reviewed By
LKS
Agenda Item Title
Title
First Reading of an Ordinance Establishing the Annual Building and Construction Permit Fees and the Zoning Application Fees of the Village of Oak Park
End
Overview
Overview
Per the ordinance, building codes have to be reviewed and modified annualy. Staff reviewed our current fees and current budget and proposed the following: (1) Adopt the updated International Code Council (ICC) Building Validation Data (BVD) chart; (2) Adjust the permit fee multipliers to reflect Village’s actual costs to administer the permit processing division; and (3) Clarify the Village fee chart by removing obsolete and duplicate fees.
End
Recommendation
Recommendation
Approve the Ordinance.
Fiscal Impact
The Building Construction Permit Fees and Zoning Application Fee Schedule has been revised to reflect the cost of providing services and should, result in a revenue neutral state for the Permit Processing Division’s annual budget.
Background
Annually, the Village Board adopts an updated fee schedule for permit fees to reflect annual adjustments.
First, the International Code Council (ICC) updates and publishes the Building Validation Data (BVD) chart every year. The BVD is a square foot cost based on the national average of construction cost for projects of different construction types. It provides a simplified method to determine the estimated value of a building that does not rely on the permit applicant to determine the cost of construction. The use of the ICC data provides for a fair assessment of construction valuation.
Second, there is an adjustment to the New Construction permit fee multiplier. Pursuant to the ICC, the Permit Processing budget is multiplied by the percentage of reimbursement, divided by the previous year’s annual construction value. Staff analyzed the calculation and determined a 20% reduction of the 2019 multiplier (0.0284 to 0.0228) is recommended. The change in the multiplier will result in lowering permit costs for the permit applicant.
Also, there is an adjustment to the Building Alteration permit fee multiplier. Remodels and interior alterations do not include foundations or extensive framing, ductwork, electrical and or plumbing as newly constructed structures. Staff recommends adopting a reduced portion of the new construction multiplier (39% of 0.0228 for 0.009), resulting in lower permit costs for alterations as compared to new construction for the permit applicant.
Third, an annual clarification of the Village fee chart is completed by removing obsolete and duplicate fees. Administration plan review fees for additions are the same for family dwelling units and commercial. This leads to a simplified method to estimate costs for the permit applicants.
Alternatives
Continue with current 2019 permit fees.
Previous Board Action
N/A
Citizen Advisory Commission Action
N/A
Anticipated Future Actions/Commitments
The fees are reviewed annually to reflect any fluctuation in the ICC Permit Fee Multiplier and the Building Validation Data. These two items directly tie into determining the cost of providing our services to the public. The schedule may be easily revised to reflect the current cost of providing services by applying a percentage change factor to each line item.
Intergovernmental Cooperation Opportunities
N/A