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TO: James Chandler County Administrator FROM: Robert M. Keating, AICP AMK Community Development Director DATE: March 17, 1993 SUBJECT: BUILDING DIVISION FEE INCREASES BOOK 89 pmF 134 It is requested that the data herein presented be given formal consideration by the Board of County Commissioners at their regular meeting of March 23, 1993. DESCRIPTION & CONDITIONS: e Summary In the past few years, building activity has declined both nationally and locally. Beginning in FY90-91, this reduction affected the number of building permits issued by the County as well as the value of construction reflected by permits issued. Consequently, building division revenue has decreased in the past few years. County staff has been aware of this problem since it first developed, and staff has kept the Board of County Commissioners abreast of it. Unlike past downturns in building activity, however, the current cycle has not established a rebound in activity. Instead, building activity levels have remained low. In response to this situation, staff has taken a conservative approach. Rather than immediately raising fees to compensate for the building permit revenue shortfall, staff cut expenditures. Besides eliminating 5 positions in the building division, staff eliminated capital costs and cut non-essential operating expenses. Even with these actions, however, the problem has not been resolved. After careful consideration and detailed analysis of existing conditions and future projections, staff determined that a critical decision point had arrived. Because the building division's reserves were being exhausted, staff decided that action was necessary. Realizing that whatever action was taken the principal purpose of the building division was to serve the construction industry, staff coordinated with the Treasure Coast Builders Association (TCBA) and the Associated General Contractors (AGC) to reanalyze the data, identify alternatives, and develop a proposed solution. As a result of that coordinated effort, staff, TCBA, and AGC recommend that the Board of County Commissioners take several actions to increase building division revenue and reduce building division costs. These activities involve establishing a competency card annual renewal fee, raising fees for miscellaneous and sub - permits, increasing building division automation, and cross certifying building inspectors. Because these actions will not completely resolve the problem, it is also recommended that the financial situation be monitored closely and the need to raise general building permit fees be evaluated in Fall, 1993. 38