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Consultants present draft findings of DBI fee study; many high-value projects generating excess revenue
Summary
MGT of America presented draft fee-study results showing inspection fees low compared with peer cities while high-valuation plan-review categories generate excess revenue; draft report due July, final in August and presentation to the commission planned for September.
MGT of America consultants Jeff Wakefield and Reuben Rivas presented the methodology and preliminary findings of a comprehensive fee study for DBI. The seven-step cost analysis uses cataloged fee services, staff time interviews, fully burdened labor rates and indirect costs. Consultants said they are reconciling modeled costs with actual revenues and will submit a draft in July and a final report in August.
Key draft findings included: inspection fees generally are lower than peer jurisdictions; plan-review and high-valuation projects often generate excess revenue (economies of scale on very large projects); DBI performs a high percentage of plan checks over the counter compared with peers; DBI's standard hourly rates are among the highest in the survey group. MGT recommended cross-checking high valuation projects' declared values with an independent index (Marshall & Swift) to avoid over- or under-valuing project fees.
Commissioners asked MGT about whether the study measures end-to-end permit processing times and backlog comparisons; consultants said that the current engagement focuses on cost/revenue reconciliation and benchmarking but that response-time and backlog metrics could be considered in a separate scope if the commission desired.
Next steps: consultants will complete reconciliation, issue a draft report to staff in July, a final in August, and MGT will return to the commission with findings and proposed code changes where warranted.
