Subject
title
Introduction of Resolution - Amending Master Fees for Community Planning and Development Services (CPDS)
end
Department
CPDS - Inspection Services
Recommendation
Staff recommends Mayor and Council introduce the proposed amendments to the Master Fee Resolution.
Discussion
Staff is proposing a minor inflationary increase in the fee schedule related to building permitting and inspections for Fiscal Year 2025. An approximate 4% increase to most fees is recommended, in line with the average Consumer Price Index (CPI) for calendar year 2023. Additional minor changes are proposed, mostly to align fee amounts for comparable services.
The Master Fee Resolution, which was first established in June 2011, combines various user and regulatory fees into one resolution. The City of Rockville Mayor and Council adopted Resolution No. 18-11 to revise, reorganize, and establish various user and regulatory fees based on the User Fee Analysis Report prepared by Matrix Consulting Group. One of the key recommendations of the report included guidelines on “User Fee Cost Recovery Goals” which recommends that fees are reviewed and updated on an ongoing basis to ensure that they keep pace with inflation.
Since its initial adoption, the Master Fee Resolution has been revised several times. Most recently, during the FY 2024 budget cycle staff reviewed all building and inspections related fees and charges and proposed several significant changes, including the introduction of a new automation fee.
Building fees consist mainly of building and trade-related permits, non-business licenses, fire safety permits and life safety reviews on new commercial buildings, additions, and alterations, as well as occupancy permits. Some of the fees are proposed to maintain current rates. For instance, the fees for residential solar panel installations and EV charging installations are proposed to receive no increase, to support and facilitate the city’s Climate Action Plan, specifically Action Items C-09 and C-12.
One item of note is the new “Fast-track Permit Issuance” fee proposed for solar panel permits. The current review time for residential solar panels is up to 28 calendar days. Staff has worked to partner with the National Renewable Energy Laboratory (NREL) to explore implementing their SolarAPP+ automated permitting system, which can produce same-day permits. The SolarAPP+ system is offered free of charge to municipalities, and there is a nominal fee for the applicant to receive a greatly expedited solar panel permit. By collecting the proposed $30.00 fee on the jurisdiction side, CPDS will be able to incorporate SolarAPP+ into the existing processes and provide a viable option for same-day permitting of solar panels in single-family residential applications. There is still some work to be done to be prepared to launch this program, but staff would like to establish the fee now to facilitate implementation.
Additionally, there are some proposed changes to Section 6 of this resolution, which addresses fees originating from Chapter 18 of the City Code. The Innkeepers’ License Fee and Multiple Unit Dwelling License Fee are both proposed to receive moderate increases to align the fees more accurately with the cost of providing the service. Other fees in this section are proposed to receive an approximate 4% increase. There are also some changes to the language in this section to use consistent language with the City Code, specifically as it pertains to attached and detached accessory dwelling units.
In addition to the CPDS fees, the Resolution includes fees implemented and maintained by the Department of Public Works (DPW). There is a new fee proposed for Backflow Prevention Assembly Testing. The requirement to install and periodically test backflow prevention assemblies is established in Chapter 24 of the City Code. DPW has been collecting test reports since the inception of its’ backflow prevention program but has not collected fees for this to date. The FY 2025 proposed budget includes funding for a part-time Senior Environmental Inspector, who will be responsible for reviewing these reports for accuracy to safeguard the city’s potable water supply. The proposed fee of $42.00 is comparable to the fee the Washington Suburban Sanitary Commission (WSSC) charges for the same service.
Fees administered by CPDS and Public Works have not undergone a comprehensive fee study since 2011. The FY 2025 proposed budget recommends a commitment of reserves to conduct a comprehensive fee study, which will be used to inform future adjustments to the Master Fee Resolution. The adjustments recommended for FY 2025 align with CPI inflationary adjustments and help promote the sustainability of the city’s permitting, inspection, and plan review programs.
Mayor and Council History
The city’s Master Fee Resolution was comprehensively revised in June 2011. At that time, many fees were revised based on cost recovery goals as presented in Rockville’s adopted financial management policies. Permitting and inspection fees were updated in July 2018. Fee increases that staff were proposing for FY 2021 were not pursued, at the direction of the Mayor and Council, due to the pandemic. Permitting and inspection fees were updated for a 2.5% inflationary increase in February 2022. An internal fee study was conducted by staff leading up to FY 2024, which resulted in some changes to the structure of fees along with moderate increases to many fees.
Public Notification and Engagement
Staff will email proposed fees to all identified stakeholders, including developers, engineering firms and land use attorneys, among others. Staff will also provide this information to all homeowner associations and civic groups and publish a notice on the ISD website. Staff will also leverage the MyGovernmentOnline (MGO) platform to provide this information to all permit applicants.
Fiscal Impact
The proposed fee adjustments will generate additional General Fund revenue estimated at approximately $705,200 for FY 2025.
|
Description |
Fiscal Impact |
|
Building Permit Fees |
+ $153,530 |
|
Fire Safety Fees |
+ $14,540 |
|
Fire Review Fees |
+ $4,730 |
|
Other Nonbusiness License Fees |
+ $400 |
|
Rental License Fees |
+ $532,000 |
|
TOTAL |
$705,200 |
The new fees discussed above for backflow prevention assembly testing are estimated to produce approximately $19,250 in Water Fund revenue for FY 2025, with that figure increasing in future years as the program is built out.
Next Steps
Staff will bring the fee resolution back to the Mayor and Council for adoption on May 6, 2024, along with the adoption of the FY 2025 budget. After adoption, staff will implement a comprehensive public outreach effort to notify our customers of the new fee schedule, which is proposed to take effect on July 1, 2024.