Staff reports city building-inspection fees fall short; council asks for revised schedule

Finance Director Shari' Garrett told the council on March 17 that a reorganization of the Building Department prompted a full cost-recovery analysis and revealed the city is not recovering the direct costs of building inspections. Garrett said the current $47 fee for many "over the counter" permits has not changed in more than 24 years and recommended moving to a schedule that aligns fees with direct service costs.

Building Official Tyler Seaman explained that "over the counter" inspections cover simple maintenance work such as water heaters, new electrical service and reroofing, and that those inspections are performed by the same inspectors who handle new construction. Seaman said reinspection situations typically arise when work is done incorrectly or when a permit holder does not appear for a scheduled inspection; he said some reinspections can be completed by photo when appropriate.

Garrett told the council a $55 reinspection no-show fee is being proposed based on an hourly rate; she and Seaman discussed an approach in which specialized permits that require second inspections could have a second-inspection cost built into the initial fee so residents would know coverage up front. Council Member Zunayid Z. Zishan urged caution about the size of any increase and suggested "ease" into a higher price. Council Member Jeff West recommended removing the reinspection fee from the base initial inspection fee, noting reinspections occur roughly 10 percent of the time.

Council Member Cheryl Parkinson proposed a structure with a basic permit cost and additional fees only when they apply. Garrett and Seaman were directed to refine the fee schedule based on council feedback and return with costed options at a future meeting.