Mill Creek city staff on Sept. 18 told the Planning Commission they will replace an aging permit-tracking system and simultaneously rebuild the city’s development-fee schedule to better recover costs.

Director Jeff Ryan, director of Community Development and Planning, said the city’s existing TrackIt system is “dated” and no longer supported by its vendor. “If something breaks, there is literally no way to fix it,” Ryan said, and the city has authorized negotiations to acquire a cloud-based system called OpenGov to replace it.

Justin, planning staff, told commissioners the city will use the software upgrade as the occasion to update fees that “have not been increased since the Bush senior administration” for some categories. “The purpose of increasing the fees isn't just … to plug a city general fund shortfall. It's just to cover the cost of permitting,” Justin said. Staff emphasized they intend to keep Mill Creek’s fees in line with nearby jurisdictions while improving cost recovery.

Why it matters: staff said the current mix of outdated fees and an inefficient, paper- and counter-centric review process creates recurring fiscal shortfalls and operational delays. In 2024 the city collected roughly $300,000 in permitting and development fees; staff said earlier fee schedules and some single-fee items mean Mill Creek often subsidizes third‑party review costs such as those charged by SafeBuilt, the city’s contracted building inspection and plan-review firm.

Key details: staff described the present workflow as heavily dependent on a permit counter that must manually route most documents. Under OpenGov, the application portal would let applicants submit and track permits, report code enforcement issues through photos and a map interface, and permit technicians assign a single project manager to coordinate review. Justin said SafeBuilt currently charges about $110 per inspection and roughly $150–$160 for plan review; staff said Mill Creek sometimes charges far less than that to applicants for the same reviews.

Staff presented a comparative fee analysis against nearby jurisdictions (Bothell, Everett, Lynnwood, Mukilteo and Snohomish County) and said Mill Creek’s base fees for many routine mechanical and plumbing permits are substantially lower than peer averages. For example, staff showed flat mechanical/plumbing base fees of about $30 in Mill Creek versus several hundred dollars in peers, and said many permits require two inspections, which can already cost more than the fee collected.

Process and schedule: staff said they will present the study and process updates to City Council in early October, bring proposed ordinance language back to the Planning Commission on Oct. 16 for a formal recommendation, and seek council action in late October or early November so the city may transmit new fee schedules to the Washington State Department of Commerce within a 60‑day review window. Staff said their goal is to have the new software and fee structure live by Jan. 1.

What was not decided: the commission heard the briefing; there was no vote on fee changes or software procurement in the meeting. Justin said staff have not yet fixed a single final fee package and that the commission’s input on perceived high or low line items would be welcomed at the Oct. 16 meeting.

Commission questions and concerns: commissioners asked how project valuation is determined (Justin explained the International Code Council valuation tables for new construction and contractor estimates for remodels), whether the new fee program seeks full cost recovery (staff said the aim is to move toward cost recovery but to remain competitive with peers), and how the city will address unpermitted work by contractors (staff said code enforcement capacity is limited and the new software should make public permit lookups and code‑reporting easier).

Next steps and outreach: staff said they will start public outreach in October, post guidance on the website, and provide a fee‑calculator tool that shows comparative fees for Mill Creek and peer cities. Staff also proposed adopting a standing mechanism to avoid future fee stagnation: they plan to repeal fee tables from code and instead adopt fees annually by resolution, with an automatic CPI Seattle adjustment if the council does not act in a given year.