Lakewood proposes annual contractor licenses, higher minimum building permit and pavement-degradation fees

Lakewood City staff on Aug. 4 told the City Council they plan to overhaul permitting fees and some processes, proposing an annual contractor registration, tiered grading and erosion-control fees, a $150 minimum building-permit fee, tighter plan-review penalties and pavement-degradation charges tied to pavement condition.

The proposals, presented by Keith Hensel, the city engineer for development services, and introduced by Maria D'Andrea, Lakewood’s director of public works, aim to better align fees with staff costs, improve permit turnaround and capture fees currently not collected on many permits.

Hensel said the department’s review began as a cost-recovery exercise but expanded to include customer-service improvements. “We’re gonna propose that we change our registration period to 1 year,” Hensel said, describing a shift from the current three-year renewal model to an annual review that would let staff track contractor complaints, stop-work orders and expired permits and, when warranted, assess penalties.

Why it matters: staff said many existing permits do not cover the city’s processing and inspection costs. Hensel cited internal data showing a substantial number of right-of-way and grading permits issued in 2024 carried nominal fees; for example, 70% of right-of-way permits had fees under $104 and 39% had fees under $26. He also said nearly one-third of building permits issued in February 2024 expired without a final inspection or pass, which the city wants to address through stricter…