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Council backs interim increase to development review hourly rate and asks staff to pursue process fixes
Summary
Following developer outreach, council informally supported an interim increase of Pasco’s inspection/plan‑review hourly rate to $150 and requested staff prioritize process improvements; staff also proposed a comprehensive fee study estimated at $90,000 and 9–12 months to complete.
City staff and development‑industry representatives reviewed options April 14 for covering inspection and plan‑review costs related to public infrastructure in new development. Deputy City Manager (Development) Seagdahl told council that outreach showed a strong preference among developers for an hourly fee over a percentage of project cost; staff proposed an interim increase from the existing $60 per hour to $100 per hour and presented an estimated $90,000 cost to complete a comprehensive rate study.
“...we're proposing we move it to a hundred dollars an hour,” Seagdahl said, explaining the interim proposal was intended to be defensible while staff considered a broader study. Several councilmembers said $100 looked low and proposed a higher interim rate; Councilmember Perales recommended $150 per hour as an interim figure with funds set aside to hire additional reviewers and invest in technology. Staff said a full market and nexus study would likely take 9–12 months and that higher rates require stronger written justification.
Council expressed consistent concern that the primary problem developers cite is unpredictability and process length rather than just cost. Multiple members (including Mayor Pro Tem Harpster and Councilmembers Grama and Robertson) urged prioritizing process improvements — staffing, technology, and clearer timelines — in parallel with any rate change. The council informally signaled support for an interim $150 hourly rate (staff asked for discretion to set a defensible figure between $100 and $150 if needed) and for starting work on process streamlining; some members supported proceeding with the full $90,000 rate study as well, while others preferred to direct staff first to implement process fixes and then pursue a study.
Staff said the city’s transportation impact fee work and SEPA threshold updates are areas that will influence the development review timeline. The council asked staff to return with an implementation plan and to identify which steps could be accomplished quickly and which would require the consultant study or additional budget.
