Building Permit Fee Calculations

COMMITTEE OF THE WHOLE REPORT

TO: Committee of the Whole
DATE: November 25, 2013
FROM: Gary Faykes, Building Official
MEETING DATE: December 10, 2013

Building Permit Fee Calculations

RECOMMENDATION:

That this report be received for information.

CHIEF ADMINISTRATIVE OFFICER'S COMMENTS:

I support the recommendation.

DIRECTOR OF DEVELOPMENT SERVICES COMMENTS:

I support the recommendation.

PURPOSE OF REPORT:

As part of a regular review of the Towns Bylaws, and from repeated comments regarding building permit fees at Committee of the Whole, staff explored alternate ways to calculate building permit fees to ensure equitable application of fees and charges to everyone who applies for a permit.

PROJECT INFORMATION:

The current method of calculating building costs consists of an applicant providing a figure that will reflect the cost of building a project. This method relies on a dollar figure provided by the applicant with a minimum of $100 per square foot that the Town currently has as a minimum standard. As a result there is tremendous variability in building permit fees even though there isn't that level of variability in the housing stock being constructed.

Staff conducted research on this subject and has found an online construction assessment program called "The Marshall Swift Calculator". It can be utilized for the many types of construction that is undertaken throughout the Town and is growing in popularity with other Municipalities. The calculator uses regional pricing for construction materials and takes into consideration different levels of "finish" for building projects. It uses a system that will require further information at application stage, but the result will be more reflective of the cost of the project. This will result in a more accurate building fee and no further $100 / square foot buildings, as this is very unlikely in today's construction market.

Attachments 1-3 are hypothetical house building projects in View Royal. Each uses a different level of "finish" and is a different size. The average value per square foot is notably higher than all of the building permit applications in the past year.

Attachment 4 shows Construction Values vs. Cost per Square Foot for 2013 thus far.

BUDGET IMPLICATIONS:

No negative implications to the budget should be seen. The cost of the program is per use and amounts to:

• Residential - $10 per report
• Commercial - $20 per section/calculation, the cost of the commercial service is based on sections. For example, if you have a building with underground parking or a basement, the system will automatically add another section to the report making it a 2 section report at a cost of $40.

These costs can be added to the building application cost or incorporated into the existing fees. It is anticipated that with more accurate building costs being reflected that overall permit fees will increase, which will cover the cost of using the online calculator.

Staff note that the calculator is updated on a regular basis and responds to specific geographic areas. We have a high degree of confidence that this method will allow a fair and equitable assessment of building permit fees to all applicants and will take the "guess-work" out of fee calculations.

ALTERNATIVES TO STAFF RECOMMENDATION:

The staff recommendation is that the Building Bylaw be amended to include provisions for all future Building Permit Application Fees be calculated using the Marshall Swift Calculator.

The alternative to the staff recommendation is to maintain the existing system and institute a change to the minimum per square foot value that will be accepted for permit applications. Staff notes that the Swift Calculator is updated regularly and ensures a consistent application of building permit fees to everyone who makes application.

SUBMITTED BY:

Gary Faykes, Building Official

REVIEWED BY:

Lindsay Chase, Director of Development Services

Attachments

1. 1-3—Example Construction Value Calculations Using Marshall Swift Calculator
2. 4. Construction Values for 2013 Permits in View Royal