Finance Director Stacey Lemos presented a brief overview of the residential and commercial scenarios.
Ms. Lemos stated that the Government Finance Officers Association (GFOA) considered a review of user fees to be a best practice to ensure effective and efficient cost recovery. She noted that the following as considerations for Fee Update:
~The last review of development fees was in 2003.
~To increase cost recovery percentages in development review process.
~To provide incentive for 1st plan submittals to be correct and complete.
~Remain competitive with surrounding jurisdictions.
Ms. Lemos reviewed the proposed fee highlights:
~Increased cost recovery percentages for development review fees
~New fees for 3rd & 4th plan submittals
~town remains competitive with surrounding jurisdictions
~Proposed fees modeled after Town of Marana fee structure
Ms. Lemos summarized the residential and commercial fee scenarios.
Cost Recovery Summary
Development Scenario | Current Cost Recovery % | Proposed Cost Recovery % |
Residential 1 | 12% | 50% |
Residential 2 | 18% | 92% |
Residential 3 | 34% | 204% |
Commercial 1 | 9% | 56% |
Commercial 2 | 11% | 62% |
Commercial 3 | 16% | 111% |
Development Review Division Manager Paul Keesler noted that each project averaged 3.3 reviews.
Mayor Loomis noted that it would be helpful to have a flow chart of the processes; noting where the cost of the processes are recovered. The Mayor listed items to be addressed:
~Identification of total cost
~Summary of the cost of the development fees
~Separate grading permit costs as something extra.
*Possibly identify as a separate fee structure
~Define improvement plans and permits.
~Define construction costs
~Recovery costs and rates of surrounding communities; to include the City of Scottsdale
~Cost of new construction of custom and tract homes.
Mayor Loomis called for a recess at 6:32 p.m. The meeting resumed at 6:39 p.m.
Assistant Building Official Jack Holden noted the following about the voluntary program:
~For residential only
~Creates parameters to grant credit to a home that met one of the standard four levels.
*The 4 levels were determined by points accumulated in the following areas:
-Location on the lot and lot development
-Resource efficiency
-Energy efficiency
-Water efficiency
-Indoor environmental quality
-Operation and maintenance
~Building "green" is becoming more common
*Necessary to prepare the building community for conservation.
Discussion noted:
~The City of Scottsdale had a 60-70% participation rate
*The only concession was a quicker turn around time for plan reviews.
~The cost of green building for residences would be marketable.
~Retrofitting current residences was possible.
~Homeowners would see a rapid return on their investment particularly with a reduction in utility bills.
~Municipalities and State have taken the lead on encouraging or achieving certification.
~The Town could offer incentives the use of solar energy or water conservation; however it would be separate from LEED certification.