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Council approves technology fee to fund new permitting system; exemption attempt for single‑family permits fails
Summary
Council adopted Resolution R-21-2025 to add a technology fee (10% of building and plan‑check fees; 5% for planning application fees) to fund a replacement permitting, plan review and code‑compliance system. An amendment to exempt single‑family permits failed 8‑1.
Loveland City Council voted to adopt a new technology fee to fund and operate a replacement permitting and planning system, approving Resolution R-21-2025 after more than an hour of discussion and public comment.
The technology fee will be calculated as 10 percent of building permit and plan‑check fees and 5 percent of planning process application fees; staff said the percentage is tied to the valuation‑based fee structure for building permits so larger projects contribute more to the ongoing operating cost. IT and Development Services staff told council the city has budgeted capital funds to purchase a modern hosted software‑as‑a‑service permitting platform, but annual subscription and support costs are expected to run between roughly $220,000 and $270,000 per year. The city currently pays about $58,000 annually to maintain the legacy system. Staff estimated implementation will take 12–18 months and emphasized the need for an additional analyst position to avoid a single‑person support risk.
Dan Calderon (Information Technology) and Bob Paulson (Development Services) described outreach to the construction community, Planning Commission, and the Construction Advisory Board; contractors who spoke at a city forum and in the council meeting told staff the new system would save time and reduce in‑office transactions. Calderon said, "The new system will significantly enhance our service delivery," and noted examples from other jurisdictions where online permitting reduced in‑person counter time and sped plan issuance.
Council debated fee design and equity. Councilor Olsen offered an amendment to exempt individual single‑family homeowner permits; that amendment failed on roll call, 1 yes (Olsen) to 8 no. Opponents of the exemption said even small permits benefit from digital services and that capital and operating costs must be covered by users of the permitting system rather than general revenue.
Actions: Councilor Olsen moved adoption of Resolution R-21-2025; a second was recorded. The resolution passed by roll call, 8 yes to 1 no (Councilor Olsen voted no). Recorded yes votes: Kovach; Foley; McFaul; Sampson; Swanti; Mallow; Marsh; Black. No: Olsen.
The city will apply the technology fee administratively to applicable permits. Staff will monitor revenue collection and return to council if the fee requires adjustment. Implementation steps include finalizing the vendor contract, completing data migration and configuration, and hiring or allocating the recommended analyst position to support the system.
Why it matters: The fee pays for a multi‑year technology upgrade intended to improve speed and transparency of permitting and planning services; it shifts a portion of ongoing operational cost to users of the development review system rather than the general fund.
