Council considers splitting permits and raising water-connection fees after cost review

Interlaken staff presented proposed code and permit-fee revisions, recommending that the town split demolition, site-disturbance and flat-work permits out of the current new-building-permit structure and revise the water-service connection fee to better reflect installation costs.

Bart explained that demolition work requires additional inspections and road wear not currently priced separately and suggested a separate demolition permit to capture oversight and deposit costs. He also proposed separating site-disturbance permits (landscaping and excavation) from flat-work permits (nonstructural concrete and asphalt such as driveways) so fees and deposits can be tailored to work type.

On water-connection fees, staff provided a materials-and-labor cost table and said the town27s current $2,300 connection fee regularly understates actual costs. "So we're already looking at twice ... of what it costs to ... what we're charging right now," Bart said, describing worst-case scenarios in which laterals run under asphalt and require trenching, bedding, a hot tap and pavement restoration.

Council members said they do not want the town to become a profit center but agreed the town should avoid subsidizing installations. Staff suggested options including using the current fee as a base charge and adding variable fees for additional work or charging the meter cost plus hourly installation when appropriate.

Bart also reviewed the town27s fee schedule and noted recent capital and meter-installation costs that have exceeded prior estimates; he said the town's capital-facilities plan and an external rate study will help determine long-term rates and fees.

Next steps: staff will continue to develop fee options for council review during budget discussions in April and May and will incorporate permit-splitting language into proposed code revisions for later public hearings.