02/27/1980 Meeting - Laserfiche WebLink

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Mr: Henry introduced Larry Reed, Assistant Building Superintendent. Mr. Reed stated that fee schedules have not been increased in approximately ~ five years. These increases are being requested at this time to bring ,., them more into line with the State fees already adopted. He stated that it is important to note that Eugene will still remain lower in single- family and duplex fees since the City of Eugene is the only local jurisdic- tion that has adopted a combination one- and two-family dwelling permit. He said they had contacted the Homebuilders Association of Lane County, the National Electrical Contractors Association, Mid-Valley Plumbing and Heating Contractors Association, and the Association of General Contrac- tors. These proposed increases were reviewed by the City Attorney's office and Department of HCC. He noted he was available to answer any further questions. Mr. Keller asked if any groups responded to these increase proposals and Mr. Reed stated that the General Contractors Association said they would support the fee increase, but they indicated that there were other areas they wished to talk with the City about. Speaking about the issue: James McAlexander, 310 Garfield, stated he was at the council meeting to represent the Homebuilders Association. He stated that the letter to the users, dated March 14, was received by them on March 17. He stated further that this time was inadequate to respond to such extensive coverage of fee increases. He requested that the council table the motion until their organization had time to study the fee increases and comment or to table the motion indefinitely. He stated that permit fee increases would ~ have a ripple effect, increasing plan check fees, systems development fees, increasing the cost of new construction, which increases replace- ment cost, which in turn increases taxes. To illustrate his point, he said that for one house for which they have complete records--the house consisting of 11,720 square feet and the garage consisting of 464 square feet--in 1977, the valuation was $34,430 and the building permit fee was $262. In 1978, the valuation on the house was $41,388; the building permit fee was $274.56 plus a systems develop- ment charge of $593.53 for total permit fees in 1978 of $869.09. In 1979, the valuation of this house was $44,695, the building permit fee was $287.04 plus the plan check fee made the cost of the building permits $373.04, and the systems development charge was $629.92, for total permit fees in 1979 of $1,000.96. In 1980, the same house was valued at $46,628, the building permit fee was $295.36, the plan check fee was $89, the systems development charge was $648.03, for a total in 1980 of $1,032.39. He further stated that although the building permit fees themselves had not increased that much, the cost of total permit fees for the same house within four years has risen from $262 to $1,032.39. Mr. Hamel stated he agreed with Mr. McAlexander's presentation; when the systems development charge was added, it was quite a shock to the builder. He stated this would be discouraging to someone building since the fees have been increased about 200 percent. He stated that if the fees need to be increased, that should be done on a more regular basis, not in five-year ~ increments. ,., 2/27/80--8