File #: 24-0993    Version:
Type: ordinance Status: Passed
File created: 11/22/2024 In control: City Council
Agenda date: 12/17/2024 Final action: 12/17/2024
Title: Approval of an Ordinance Relating to Permit Fees
Attachments: 1. ordinance 7416 signed 12-17-24, 2. Ordinance
Title
Approval of an Ordinance Relating to Permit Fees

Recommended Action
Committee Recommendation:
The Finance Committee recommends approval of an Ordinance revising fees for Engineering, Building and Land Use Permits, and Plan Review.

City Manager Recommendation:
Move to approve on second reading, an Ordinance revising fees for Engineering, Building and Land Use Permits, and Plan Review.

Report
Issue:
Whether to approve on second reading, an Ordinance revising fees for Engineering, Building and Land Use Permits, and Plan Review.

Staff Contact:
Tim Smith, Interim Director, Community Planning and Development, 360.570.3915

Presenter(s):
None - Consent Calendar Item

Background and Analysis:
Background and analysis did not change from first to second reading.

The City of Olympia collects fees to offset a portion of the cost of reviewing applications for new development and inspecting new construction. Fee amounts are adopted by the City Council and codified in Olympia Municipal Code Title 4. They include Engineering Fees (OMC 4.04), Building Code Review and Permit Fees (OMC 4.36), Fire Plan Review and Permit Fees (OMC 4.38), and Land Use Application Review (OMC 4.40).

In 2004, the City Council conducted a Permit Cost Recovery Study and established a goal to recover 85% of the cost of delivering development review services from permit fees. In 2015, the City conducted an updated Cost Recovery Study and the City Council adopted Resolution No. 6983 creating a Development Fee Revenue Fund.

In 2020-21 the City again conducted a Cost Recovery Study and examined the operation of the Development Fee Revenue Fund. That analysis found that
the City was not recovering 85% of the cost of delivering development review services. It also recommended the City update its development fees annually to reflect increased labor costs, since those are the vast majority of the costs of providing development services to permit applicants. City staff also completed a compa...

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