Permits, inspections and new fees: Planning staff report faster turnaround and propose valuation-based commercial fees

Lisa Todrick Meyer, director of Planning and Development Services, presented permit and inspection workload, customer-service metrics and proposed fee changes at the Aug. 21 budget workshop.

Meyer said permit and inspection fees generated roughly $4.2 million in revenue for the general fund during the last measured period and that construction valuation in the city exceeded $4.4 billion. Staff reported average plan-review turnaround times that meet or exceed stated service-level expectations and said customer satisfaction ratings for permits and inspections were approximately 4.9 out of 5.

Why it matters: Permit and inspection activities represent a major revenue stream for the general fund and influence local development timelines; fee structures affect builders, property owners and the pace of development.

Proposed fee changes and rationale

Valuation-based commercial fees: Planning staff proposed shifting from detailed, itemized checklists for commercial electrical and commercial plumbing fees to a valuation-based schedule (an approach already used for commercial mechanical). The goal is to match review effort to project valuation, simplify fee administration and create consistency across categories.

After-hours inspections and resubmittal/revision fees: Staff proposed a higher fee for inspections scheduled outside normal business hours (before 7:30 a.m., after 4:30 p.m. and weekends). They also proposed a plan resubmittal fee that would start after a project's third submittal (the base fee would cover the first two reviews) and a plan revision fee for post-permit design changes that require re-review. Meyer said, based on FY24 activity, these new charges could have generated an additional ~$200,000 in the prior year.

Virtual inspections and staffing

Meyer highlighted expanded use of virtual inspections (including free platform alternatives identified with IT) and the department's "grow your own" strategy for inspectors. The city has invested in training new inspectors to improve capacity and to reduce backlog; Meyer said if an inspection is requested for a given day (and requested by 7 a.m.) the city is providing same‑day inspections.

Council questions and clarifications

Council asked whether recent large developments (such as LakePointe and proposed annexations) would be subject to inspections and fees; Meyer explained that some projects in extraterritorial jurisdiction (ETJ) use third-party inspections and that the city's role depends on negotiated agreements in those cases.

Discussion vs. decisions

Discussion: Staff reviewed permit workload, service metrics and proposed fee restructuring. The council received the proposals; no fees were adopted during the workshop.

Direction: Staff will carry fee proposals forward to the fee ordinance public hearings and continue investments in inspector training and virtual inspection workflows.

Ending

Meyer said the department is monitoring development volumes and will continue to refine fee categories to ensure fair cost recovery and consistent customer experience.