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HomeMy WebLinkAbout2024 07 22 DCD presentation to BoCC re fee study-SB 5290Department of Community Development Josh D. Peters, AICP, Director Phil Cecere, Building Official / Fire Marshal Greg Ballard, Development Code Administrator Chelsea Pronovost, Administrative Services Manager July 22, 2024 Board of County Commissioners Meeting Subject:Fee Study Results & Implementation of SB 5290 DCD –What we do Permit Center customer assistance, application intake, addressing, over-the-counter permits Land Use Comprehensive Plan (Policies, Zoning), Development Code (Regulations), Development Review (Site Development Review, Subdivisions, Conditional Uses, Variances, Critical Areas protection, Shoreline Permits, Forestry & Stormwater Management) Building plan review, inspections, building permits, floodplain administration Code Compliance case management for land use and building code complaints Office of the Fire Marshal burn regulation (and education), fire life-safety inspections, fire investigations, road naming (E911 implementation) Fee Study basics With BoCC-approved funding, DCD arranged for fee study to determine whether fees charged for permit review services covered program costs (i.e., “Permit Center”) October 2022 –project initiation Investigate reasonableness of fees –detail on next slides FCS Group selected as consultant, contracted to conduct study Delay –project took longer than expected for variety of reasons June 2024 –results –detail on next slides Products from consultant Excel spreadsheet = “model” Slides that describe model, study results FCS Group Fee Study Goals 1.Advise DCD of fees that should be accompanied by standard operating procedures 2.Develop recommendations for annual updates to the fees using the five-point approach codified in Jefferson County Code, including: a)Service cost recovery b)Public versus private service benefit c)Departmental goals d)Other available funding sources e)Comparison fees in adjacent counties, statewide averages, and other comparable areas 3.Assess the reasonableness of fees in accordance with RCW 82.02.020 4.Review timesheets and associated tracking by planners FCS Group Fee Study Guiding Principles 100% Cost Recovery Direct cost of permitting services Reasonable portion of indirect support Reasonable portion of county and departmental overhead costs Not included: general government responsibility (a.k.a., non-fee services) Comprehensive long-range planning Code enforcement Portion of administration and management that is not cost-recoverable through fees FCS Group Fee Study Method Gathered data on DCD staff, including: Salaries and benefits (as of 1/1/2024) Annual labor hours per employee (less leave) Breakdown of time spent on Direct services Indirect services Direct non-fee services Historical permit revenue FCS Group Fee Study results Recommended adjustment to DCD’s hourly service rate to achieve full cost recovery From current base rate of $111.00 to $123.20 per hour FCS Group Fee Study results (cont.) Compared Jefferson County DCD results to other municipalities Fee Study conclusions Bottom line Base rate adjustment would impact cost of permits and services based on hourly fees Fees not impacted include those based on valuation (e.g., building permits) or fees that are set amounts What this would look like: Cost of Residential Mechanical Permit (our most common permit application type) What does this mean? For 100% cost recovery for fee-recoverable services, update DCD fee schedule Statutory measures for compliance with SB 5290 includes setting reasonable fees 2024 Current 2024 Proposed $262.24 HVAC $287.44 HVAC $378.79 propane (underground)$416.59 propane (underground) Senate Bill 5290 Bill passed during 2023 legislative session concerning permit review timelines Contains local permit review timeline commitments by type Potential for partial refund of fees if timelines aren’t met Potential for grant funds Including full permit system digitization –Commerce accepting applications now Permit tracking system Focus needed here (Permit Center Coordinator mission) We will also: Identify development code provisions that could be amended Regulatory Reform (2019 Board Resolution) Continue to simplify, streamline, tailor to Jefferson County needs Relationship to fees Adopting “reasonable fees” is one of measures in statute ( = full cost recovery) Maintain sufficient staff levels to meet deadlines Pay qualified staff a living wage to retain service Streamline processes & reduce time to process permits, while maintaining quality of permit decisions Fund Permit Center operations completely through permit fees without subsidy from General Fund SB 5290 & Local Project Review Permit timelines after Notice of Complete Application (req. within 28 days) EPL software to track permit processing time Type I Permits –no notice (if SEPA exempt) -65 days Type II Permits –noticing w/ comment period -100 days Type III Permits –public hearing w/ Hearing Examiner -170 days Options 5290 allows jurisdiction to exempt permits from timelines per RCW 36.70B.160 DCD would advocate for SDRs to be exempt: pre-application process 36.70B.080 requires 10-20% of fee refund if timelines not met Refunds not required if 3 of 10 provisions in RCW 36.70B.140 met Board resolution or ordinance needed before end of year 5290 Options The following measures in JCC 18.40 (Permit Application & Procedures) already meet RCW 36.70B.160 to avoid 10-20% fee refund Permit Types & Process Specified decision makers for permits and appeals One open record hearing & one closed record for appeal Optional Pre-Application Conference (may be waived by Administrator) Time for applicant to provide additional information excluded in how long it takes to process permits Additional measures utilized by DCD to meet RCW36.70B.160 Consultants currently on contract for on-call permitting assistance 5290 Measures Additional measures DCD could adopt to avoid refunding 10-20% of fees if timeframes in SB 5290 are not met (RCW 36.70B.160) Expedited review for projects consistent with development regulations Interlocal staffing agreements Having new positions budgeted that are contingent on increased permit revenue Adopting program to allow for outside professionals with appropriate professional licenses to certify components of applications consistent with their license Conflict resolution after applicant disagrees with 2nd request for more information At that point, DCD would approve or deny application as is Adopting development regulations that make housing types an outright permitted use in all zones where housing type is permitted Permit Review: Queue Update SDRs 700 SDR Applications (October 2022 to present) 83 inactive/void (no fees) Issued 575 Today’s queue = 42 SDRs waiting and currently in review Last month DCD issued 39 SDRs and received 21 SDR applications Lot Consolidations (part of SDR-Legal Lot of Record determination) = 60 completed Type I Building Permits 30 residential building permits issued in June 2024 128 residential and commercial building permits total issued in 2024 Planning (Development Review) has 52 building permits to be reviewed (except a few where DCD not last review) What does 5290 mean for DCD? DCD is currently not meeting these timelines Average time for a Type I Permit (building permit, boundary line adjustment, etc.) is 120 days, but this includes time for septic, building, and planning reviews Type II permits (short plats, land use approval with public notice) = 120 days Type III permits (long plats, variances, conditional uses, etc.) taking over 365 days, which includes public hearing and waiting on Hearing Examiner decision Although not subject to penalties (with Board resolution adopting measures),DCD plans to meet SB 5290 timelines Measures DCD may undertake to meet 65-day timeframes for Residential Building Permits Require more detailed Site Development Review (SDR) SDR “lite” possible for other situations (smaller fee w/ less staff time) Additional Notice of Application requirements, including: Septic, Critical Areas, and Shoreline Permits issued Special reports approved (e.g., geotech assessment) All discretionary issues addressed, etc. DCD & Applicant sign waiver of SB 5290 timeframes per RCW 36.70B.080(3) This would avoid above requirements for thorough application, etc. Permit would follow current process (i.e., back-and-forth) Schedule July 24 –meeting with subject-matter experts at Commerce August 5 –BoCC workshop on proposed fee ordinance & resolution Review specifics on proposed DCD fee schedule update August 12 –hearing notice approval Published in Leader on August 14 & 21 August 16 –DCD open house for home builders, realtors, & interested parties Staff on hand on a Friday morning to give overviews and answer questions, including re: Land Use/Building Permit intake GIS/CSS Portal SDR/LLOR, building permit review, shorelines & critical areas, forestry & stormwater August 26 –public hearing w/ BoCC re: proposed fee schedule ordinance September 1 effective date Other things happening at DCD… update Annual work program with over 20 projects Long-Range Planning, Growth Management Act (GMA) implementation & compliance, etc. Short-Term Rentals, 2024 Comp Plan Amendment Cycle, 2025 Periodic Update Port Townsend Urban Growth Area (UGA) –Glen Cove area planning study Stock Plans, C-PACER Floodplain damage prevention ordinance Shoreline Master Program (SMP) periodic review Coordinated Water System Plan (CWSP) update Office of the Fire Marshal: annual burn restriction season, new inspection system Master Planned Resorts (MPRs) Port Ludlow and Pleasant Harbor Controversial cases, code compliance, public records requests, etc. New addition: code amendments before end of 2024 to implement SB 5290 Recap Transition at DCD Relatively new management & staff 2025 Periodic Update, SMP Periodic Review, and other new stuff full platter of projects and programs Permit review timelines always looking (and expecting) to improve new responsibilities per SB 5290, including tracking methods Fee schedule Fee study result = current hourly rate not providing 100% cost recovery Less than 100% cost recovery results in demand on General Fund to run permit program Update needed for 100% cost recovery, compliance with SB 5290 Questions?