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Proposed Changes to Permitting and Valuation PracticesCity of Dubuque City Council ACTION ITEMS # 6. Copyrighted November 17, 2025 ITEM TITLE: Proposed Changes to Permitting and Valuation Practices SUMMARY: City Manager recommending City Council approval for the revised permit valuation model for new construction and fee proposal change to the permitting fee structure for residential alterations, Mechanical, Electrical, and Plumbing permits, and solar and swimming pool permits. SUGGUESTED Receive and File; Approve DISPOSITION: ATTACHMENTS: 1. MVM Memo 2. Memo_Proposed Changes to Permitting and Valuation Practices 3. Proposed Permit Fee Structure (2025)_Replaced 11.14.25 4. Proposed Dubuque Building Valuation Data (2025) 5. Consolidated Fee Schedule FY22_Uploaded 11.14.25 6. Presentation -Uploaded 11.17.25 Page 718 of 750 THE CITY OF DUBE Masterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Proposed Changes to Permitting and Valuation Practices DATE: November 13, 2025 Dubuque AI WIN av 2007-2012.2013 2017*2019 Assistant Housing & Community Development Director Michael Belmont is recommending City Council approval for the revised permit valuation model for new construction and fee proposal change to the permitting fee structure for residential alterations, Mechanical, Electrical, and Plumbing permits, and solar and swimming pool permits. The purpose of this proposal is not to increase revenues, but to establish a predictable and transparent framework for determining construction valuations. We recognize that some individual project valuations will rise while others may decrease. Overall, our goal is to achieve a net zero or near net zero impact on total permit revenue. We propose implementing the new calculated valuation model for new construction on December 1, 2025, to coincide with the launch of the Citizenserve permitting software. We have already met with several contractors to discuss the proposed model, and if approved, we will share detailed information with all registered contractors and builders prior to implementation I concur with the recommendation and respectfully request Mayor and City Council approval. v Mic ael C. Van Milligen MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Sandi Fowler, Interim Housing & Community Development Director Michael Belmont, Assistant Housing & Community Development Director Page 719 of 750 THE CITY OF Dubuque i Dub E-E,n AII-America Cip Masterpiece on the Mississippi 2002-2013 2017*2019 TO- Michael Van Milligen, City Manager FROM: Michael Belmont, Assistant Housing & Community Development Director DATE- November 10, 2025 RE- Proposed Changes to Permitting and Valuation Practices Introduction The Inspection and Construction Services division is proposing a change to the method of establishing permit valuations for new construction. Additionally, ICS is proposing a change to the permitting fee structure for residential alterations, Mechanical, Electrical, and Plumbing permits, and solar and swimming pool permits. Discussion Purpose As part of our implementation of new permitting and inspection software, we have taken this opportunity to improve the clarity, transparency, and usability of our permitting process for both contractors and homeowners. Implementation of a new system is a great opportunity to take a fresh look at long-standing practices and identify where updates can create a more consistent, fair, and understandable experience. During this review, two key areas emerged for improvement: 1. The complexity of our Mechanical, Electrical, and Plumbing (MEP) permit applications. 2. The lack of consistency in how project valuations are determined for new construction. New Construction Valuation To promote fairness and predictability for new construction projects, we propose shifting from a stated valuation model —where applicants provide their own estimates — to a calculated valuation model based on data published by the International Code Council (ICC). This model uses ICC's Building Valuation Data (BVD) table, which establishes a per -square -foot cost by construction type and occupancy classification. Page 720 of 750 To ensure these valuations reflect our local market conditions, we will apply a local area adjustment of -20%, recognizing that construction costs in our community are generally lower than national averages. Additionally, recognizing that we have separate mechanical, electrical, plumbing, and fire protection permits, we will apply an additional -20% MEP adjustment to the table. Our intention would be to use the annual August BVD publication, with the adjustments outlined above, to set square foot valuations that would become effective the following January 1 of each fiscal year. Implementing this approach will standardize how valuations are calculated and improve transparency for all applicants. To establish these proposed reductions to the Building Valuation Data (BVD) tables, approximately 20 months of commercial new -construction permit data was evaluated and compared to the corresponding permit costs when using a calculated valuation based on the BVD values. This analysis showed that on average, with the exception of occupancy group R, commercial project permit costs were about 20% lower than when using the published BVD figures to establish valuation. Applying a 20% reduction to the commercial BVD values brings the table into alignment with historic permit costs. The primary outliers in the above analysis were Occupancy Group R projects (multi- family and hotels), which showed a high degree of variation in declared valuations for projects of similar size —emphasizing the need for a standardized valuation approach. To address this, all Group R permits over the same 20-month period were analyzed separately. An additional reduction of 17% for Group R was applied because it produced a neutral overall impact. For the 20% adjustment applied to mechanical, electrical, plumbing, and fire protection (MEP), I reviewed detailed construction cost estimates and relied on practical experience with project pricing. Permits for these trades are issued separately from building permits, so this reduction can also be understood as an allowance ensuring the building valuation accurately reflects only the building -related portion of total project cost. Residential Projects: For residential new construction, the calculated valuation will be further broken down by area types —including main floor (set by the BVD table), unfinished and finished basements, upper floors, garages, open decks, and enclosed decks or porches (see below). This more granular approach allows for a precise estimate of the total construction value, ensuring that valuations reflect the true scope and character of each project. Once calculated, the valuation will be applied to our existing fee table to determine the permit cost. 2 Page 721 of 750 Main Floor $ 169.09 Unfinished Basement $ 31.50 Finished Basement $ 85.69 2nd & 3rd Floors $ 85.69 Garage $ 66.48 Open Decks $ 30.00 Enclosed Porches $ 40.00 Note: Main Floor Cost per Sq. ft. is taken unaltered from the ICC Valuation Table for type VB construction and Occupancy Group R-3. Alterations: For alterations, due to their complexity and variance in scope and costs, applicants will continue to provide stated valuations. For residential alterations, the valuations will be applied to one of five defined fee ranges or "buckets". For commercial alterations, the valuation will be applied to the current unchanged fee schedule. One frequently permitted item, replacement windows, has historically shown significant variability in stated valuations. An analysis of 75 window permits over the past 20 months revealed a per -window installed valuation ranging from $100 to $3,955 per window. To provide consistency, we propose using a per -unit permit fee structure of $50 for the first window and $20 for each additional window. Residential Fee Ranges or "Buckets" To simplify the permitting process and enhance predictability for homeowners and contractors, residential alteration permits would be assessed using defined "fee ranges or "buckets", based on project valuation ranges. This structure ensures consistent fees for similar types of work, reduces administrative complexity, and makes it easier for applicants to understand costs upfront. For example, residential alteration projects could follow the following tiered structure: Valuation • $ 1 — $5,000: • $ 5,001 — $15,000: • $15,001 — $30,000: • $30,001 — $100,000 • Over $100,000: Permit Fee $ 50 $ 150 $ 300 $ 600 $1,200 A similar concept will be applied to residential Mechanical, electrical and plumbing permit fees, with the following tiered structure: Valuation Permit Fee 3 Page 722 of 750 • $ 1 — $5,000: $ 50 • $ 5,001 — $15,000: $ 150 • $15,001 — $30,000: $ 300 This approach aligns with the broader goal of establishing clear and easy -to - communicate fee structures, while maintaining consistency across similar project types. This approach provides clarity and predictability for both contractors and homeowners, allowing them to better estimate permit costs during project planning. MEP Permits We are also simplifying the application process for Mechanical, Electrical, and Plumbing (MEP) permits. These permits will change from a complex application with a laundry list of items, to using stated valuation. MEP projects, with few exceptions, require installation by licensed contractors who know what the true valuation of a project is. We will apply those valuations to a new MEP -specific fee table (see below) for commercial projects and defined fee ranges or "buckets" for residential projects. Commerciall. Valuation Range MEP Fee Table Base Added Amount per 1,000 $ 1 - $ 5,000 $ 50.00 $ 5,001 - $ 25,000 $ 50.00 $ 9.00 $ 25,001 - $ 50,000 $ 225.00 $ 7.00 $ 50,001 - $ 100,000 $ 432.00 $ 5.00 $ 100,001 - $ 500,000 $ 682.00 $ 4.00 $ 500,001 - $ 1,000,000 $ 2,282.00 $ 3.50 $ 1,000,001 + $ 4,032.00 $ 2.50 (Rev 10-30-2025) The primary goal of this MEP change is to increase clarity and ease of use for contractors. Our current process collects a significant amount of unnecessary —and often inaccurately reported —data. For example, electrical permits currently require contractors to report the number of receptacles, even though inspectors do not count them in the field. An electrical Inspection would focus on proper wiring materials and methods, clearances, and compliance with applicable codes, not item counts. 0 Page 723 of 750 Additionally, for frequently permitted items, such as like -for -like equipment replacements and water and sewer lateral replacements, we will establish simple per unit fee of $50 for the first unit, and $25 for each additional. These standardized fees will provide additional clarity for both contractors and homeowners on permit costs, allowing for faster estimates and reducing uncertainty in the permitting process. An example would be a residential furnace and A/C change out. In this proposed process, this project would simply count as 2 units, with a permit fee of $50 for the first unit, and $25 for the second. This $75 permit fee aligns with the current cost of a typical furnace and A/C change out. Streamlining the MEP permitting process will reduce confusion and administrative burden for both contractors and staff while maintaining compliance oversight. Solar Permits Solar permits will be charged a flat fee of $50 for the solar, and $35 if a new service is included with the installation. This aligns with current permit fees. Swimming Pool Permits Residential Swimming pool permits will be grouped by pool type and size: see below. Pool Type and Size Flat Fee Above Ground $ 50 Above Ground 48" or Larger $ 100 In Ground $ 250 (Rev 10-30-2025) Commercial Swimming pool permits are taken out infrequently as they are typically part of a larger project. Commercial pool valuations will be established by stated valuation and assigned to our current building permit fee table. Intended Outcomes and Potential Impacts The purpose of this proposal is not to increase revenues, but to establish a predictable and transparent framework for determining construction valuations. We recognize that some individual project valuations will rise while others may decrease. Overall, our goal is to achieve a net zero or near net zero impact on total permit revenue. Projected Impact of Calculated Valuations for New Construction: Page 724 of 750 Impacts of the proposed calculated valuations: • Residential single-family homes: -8% average change in valuation • Residential multi -family (apartments, hotels, assisted living): +0.8% average change after additional adjustment (detailed below) • Commercial/industrial projects: +3% average change in valuation One area that requires particular attention is commercial group R construction, which includes apartments, hotels, and assisted living facilities. Initial analysis showed that valuations for these project types would have increased modestly under the calculated valuation model even after the 20% local area adjustment. One potential reason for this higher ICC valuation is the increased number of areas such as kitchens and bathrooms with much higher cost finishes. Finishes are excluded in permit valuation. To maintain continuity with past valuations, we propose applying an additional -17% adjustment (reduction) to valuations in Occupancy Classifications R-1, R-2, R-3, and R-4. After this adjustment, the net impact on these projects would fall within ±1 % of historic average valuations. Stakeholder Feedback: • The proposed valuation model was taken to the October 30t" Building Code Advisory and Appeals board. At that meeting, a board member questioned whether a particular occupancy group was impacted more than others by this change, which prompted further review of the impacts to group R occupancy classifications. This further review resulted in the proposed additional -17% reduction for group R occupancies. Ultimately the board unanimously approved a recommendation to take the revised valuation methodology and proposed fee changes to City Council. This recommendation for approval was prior to the proposed additional -17% Group R reduction, and the change from a -15% MEP adjustment to a -20% MEP adjustment • Several meetings were held with Mechanical, Electrical and Plumbing contractors to discuss proposed changes. All expressed appreciation for the simplification of the permitting process. • Meetings were held with building contractors. One who builds primarily multi- family residential projects. They expressed concerns focused on ensuring the model does not overstate valuations for housing related projects, but expressed that they understand the need for a consistent valuation model. Attached is a summary of all proposed changes. Also attached is the valuation data table, with the adjustments discussed. 0 Page 725 of 750 If the new model is approved, staff will closely monitor valuation trends and permit revenue throughout the first year. If the data shows a meaningful deviation from prior - year revenues that can be attributed to valuations, either higher or lower, we will return to the Council with recommendations for adjustments to ensure that the intent to remain revenue neutral is maintained. Timing We propose implementing the new calculated valuation model for new construction on December 1, 2025, to coincide with the launch of the Citizenserve permitting software. We have already met with several contractors to discuss the proposed model, and if approved, we will share detailed information with all registered contractors and builders prior to implementation. Recommendation We respectfully request City Council Approval for the revised valuation model and fee proposal. CC: Sandi Fowler, Interim Housing & Community Development Director 7 Page 726 of 750 Type Proposed Fee Structure Subtype Fee Based On Fees Plan Review % of Permit Cost *** BUILDING *** Commercial New Structure Calculated Valuation Building Fee Table 20% Addition Calculated Valuation Building Fee Table 20% Addition with Alteration/Remodel Stated Valuation Building Fee Table 20% Alteration / Remodel Stated Valuation Building Fee Table 20% Foundation Only Flat Fee - to Cover Admin $200 Non -Refundable 20% Residential New Structure Calculated Valuation Building Fee Table 20% Addition Calculated Valuation Building Fee Table 20% Addition with Alteration/Remodel (Calculated Valuation for Addition) + (Total Stated Valuation - Calculated Valuation for Addition) 0 - 5,000 = $ 50 5,001 - 15,000 = $ 150 15,001 - 30,000 = $ 300 30,001 - 100,000 = $ 600 100,001 + = $ 1,200 20% Alteration / Remodel Stated Valuation 0 - 5,000 = $ 50 5,001 - 15,000 = $ 150 15,001 - 30,000 = $ 300 30,001 - 100,000 = $ 600 100,001 + = $ 1,200 20% Window Replacement Quantity $50 for first, $20 each additional 20% Foundation Only Flat Fee -to Cover Admin *** DEMOLITION *** $200 Non -Refundable 20% Commercial Accessory Structure Flat Fee Flat Fee $75 $250 Commercial Building Other Flat Fee $150 Residential Accessory Structure Flat Fee $50 One and Two Family Dwelling Flat Fee $150 *** FIRE PROTECTION *** Fire Suppression Stated Valuation Building Fee Table 20% Fire Alarm IStated Valuation Building Fee Table 20% *** SOLAR *** Ground Mount Flat Fee $50 Add Fee for New Service $35 Roof Mount Flat Fee $50 20% Add Fee for New Service $35 Flag e of 750 Proposed Fee Structure Type Subtype Fee Based On Plan Review % of Permit Cost *** MECHANICAL *** Commercial All Except Items Below Stated Valuation MEP Fee Table Equipment Replacement Fee Per Unit $75 per Unit Gas Pressure Test Flat Fee $50 Residential All Except Items Below Stated Valuation 0.00 - $5,000 = $50 $5,000.01- $25,000 = $150 $25,000.01 and over = $300 $50 for first Unit $25 for ea. additional (note Furnace and AC = $75) Equipment Replacement Fee Per Unit Gas Pressure Test Flat Fee $50 *** ELECTRICAL *** Commercial Everything Stated Valuation MEP Fee Table Residential Everything Stated Valuation 0.00 - $5,000 = $50 $5,000.01- $25,000 = $150 $25,000.01 and over = $300 *** PLUMBING *** Commercial Everything Except Equipment Replacement Stated Valuation MEP Fee Table Equipment Replacement Fee Per Unit $75/equipment Residential Everything Except Like for Like Equipment replacement and Gas Pressure Tests Stated Valuation 0.00 - $5,000 = $50 $5,000.01- $25,000 = $150 $25,000.01 and over = $300 $50 for first Unit $25 for ea. additional Equipment Replacement Fee Per Unit Sewer or Water Lateral (Repair or Replace) Fee Per Unit $50 for first Unit $25 for ea. additional Gas Pressure Test Flat Fee $50 Page 728 of 750 Type Subtype Proposed Fee Structure Fee Based On Fees Plan Review % of Permit Cost *** SWIMMING POOL *** Commercial Stated Valuation Building Fee Table 20% Residential Above Ground Flat Fee - Pool Type / Size Flat Fee - Pool Type / Size $50 $100 Above Ground 48" or Larger In Ground Flat Fee - Pool Type / Size $250 (Rev.11/13/2025) Page 729 of 750 Dubuque Building Valuation Data (DBVD) Adjustment Percentage from ICC BVD table Resulting Valuation Occupancy Group (2021 IBC) -20% 80% of published ICC BVD Table Construction Type (2021 IBC) IA IB IIA IIB IIIA 1116 IV VA VB A-1 Assembly, theaters, with stage 269.92 260.32 252.64 242.68 226.76 220.19 234.39 211.31 203.23 A-1 Assembly, theaters, without stage 247.82 238.21 230.53 220.57 204.85 198.28 212.28 189.40 181.32 A-2 Assembly, nightclubs 215.53 209.21 202.64 194.92 182.56 177.60 188.23 166.02 159.72 A-2 Assembly, restaurants, bars, banquet halls 214.73 208.41 201.04 194.12 180.96 176.80 187.43 164.42 158.92 A-3 Assembly, churches 251.52 241.92 234.24 224.28 208.66 202.09 215.98 193.21 185.12 A-3 Assembly, general, community halls, libraries, museums 211.23 201.62 193.14 183.98 167.46 161.69 175.69 152.01 144.73 A-4 Assembly, arenas 247.02 237.41 228.93 219.77 203.25 197.48 211.48 187.80 180.52 B Business 238.74 230.26 222.00 212.61 194.16 187.25 204.44 173.52 165.57 E Educational 225.65 217.81 210.92 202.19 188.70 179.05 195.24 165.32 160.02 F-1 Factory and industrial, moderate hazard 131.34 125.00 117.13 112.72 100.36 95.49 107.46 83.22 77.49 F-2 Factory and industrial, low hazard 130.54 124.20 117.13 111.92 100.36 94.69 106.66 83.22 76.69 H-1 High Hazard, explosives 122.53 116.20 109.12 103.91 92.60 86.93 98.66 75.47 0.00 H2-3-4 High Hazard 122.53 116.20 109.12 103.91 92.60 86.93 98.66 75.47 68.94 H-5 HPM 238.74 230.26 222.00 212.61 194.16 187.25 204.44 173.52 165.57 1-1 Institutional, supervised environment 219.98 212.10 204.53 196.80 180.14 175.30 196.39 162.24 156.45 1-2 Institutional, hospitals 375.34 366.86 358.60 349.21 329.16 0.00 341.04 308.52 0.00 1-2 Institutional, nursing homes 258.94 250.46 242.20 232.81 215.56 0.00 224.64 194.92 0.00 1-3 Institutional, restrained 251.94 243.46 235.20 225.81 209.36 201.65 217.64 204.44 179.17 1-4 Institutional, day care facilities 219.98 212.10 204.53 196.80 180.14 175.30 196.39 162.24 156.45 M Mercantile 160.86 154.54 147.17 140.24 127.61 123.45 133.56 111.07 105.57 R-1 Residential, hotels 222.51 214.63 207.06 199.33 182.27 177.43 198.91 164.37 158.58 R-2 Residential, multiple family 185.81 177.93 170.36 162.63 146.56 141.72 162.21 128.66 122.87 R-3 Residential, one- and two-family 172.72 168.13 164.09 160.59 155.22 149.69 163.83 144.33 135.27 R-4 Residential, care/assisted living facilities 219.98 212.10 204.53 196.80 180.14 175.30 196.39 162.24 156.45 S-1 Storage, moderate hazard 121.73 115.40 107.52 103.11 91.00 86.13 97.86 73.87 68.14 S-2 Storage, low hazard 120.93 114.60 107.52 102.31 91.00 85.33 97.06 73.87 67.34 U Utility, miscellaneous 94.12 88.57 82.40 78.86 70.23 65.61 75.06 55.59 52.96 (Rev. 10-29-2025) Page 730 of 750 FY21 Consolidated (Residential & Commercial) Fee Schedule (Rev. 7-1-2024) VALUATION ($) FEE VALUATION ($) FEE VALUATION ($) FEE Up to $500 $29 $24,001- $25,000 $301 $62,001- $63,000 $567 $501- $600 $30 $25,001- $26,000 $308 $63,001- $64,000 $573 $601- $700 $32 $26,001- $27,000 $316 $64,001- $65,000 $578 $701- $800 $33 $27,001- $28,000 $324 $65,001- $66,000 $584 $801- $900 $35 $28,001- $29,000 $332 $66,001- $67,000 $590 $901- $1000 $36 $29,001- $30,000 $339 $67,001- $68,000 $595 $1001- $1100 $39 $30,001- $31,000 $346 $68,001- $69,000 $601 $1101- $1200 $41 $31,001- $32,000 $355 $69,001- $70,000 $606 $1201- $1300 $44 $32,001- $33,000 $363 $70,001- $71,000 $612 $1301- $1400 $46 $33,001- $34,000 $370 $71,001- $72,000 $617 $1401- $1500 $48 $34,001- $35,000 $378 $72,001- $73,000 $623 $1501- $1600 $50 $35,001- $36,000 $386 $73,001- $74,000 $629 $1601- $1700 $52 $36,001- $37,000 $394 $74,001- $75,000 $634 $1701- $1800 $54 $37,001- $38,000 $401 $75,001- $76,000 $640 $1801- $1900 $56 $38,001- $39,000 $409 $76,001- $77,000 $645 $1901- $2000 $58 $39,001- $40,000 $417 $77,001- $78,000 $651 $2001- $3000 $69 $40,001- $41,000 $425 $78,001- $79,000 $657 $3001- $4000 $79 $41,001- $42,000 $432 $79,001- $80,000 $662 $4001- $5000 $90 $42,001- $43,000 $440 $80,001- $81,000 $668 $5001- $6000 $100 $43,001- $44,000 $448 $81,001- $82,000 $673 $6001- $7000 $111 $44,001- $45,000 $456 $82,001- $83,000 $679 $7001- $8000 $121 $45,001- $46,000 $463 $83,001- $84,000 $685 $8001- $9000 $132 $46,001- $47,000 $471 $84,001- $85,000 $690 $9001- $10,000 $143 $47,001- $48,000 $479 $85,001- $86,000 $696 $10,001- $11,000 $153 $48,001- $49,000 $487 $86,001- $87,000 $701 $11,001- $12,000 $164 $49,001- $50,000 $494 $87,001- $88,000 $707 $12,001- $13,000 $174 $50,001- $51,000 $500 $88,001- $89,000 $712 $13,001- $14,000 $185 $51,001- $52,000 $506 $89,001- $90,000 $718 $14,001- $15,000 $195 $52,001- $53,000 $511 $90,001- $91,000 $724 $15,001- $16,000 $206 $53,001- $54,000 $517 $91,001- $92,000 $729 $16,001- $17,000 $216 $54,001- $55,000 $522 $92,001- $93,000 $735 $17,001- $18,000 $227 $55,001- $56,000 $528 $93,001- $94,000 $741 $18,001- $19,000 $238 $56,001- $57,000 $534 $94,001- $95,000 $746 $19,001- $20,000 $248 $57,001- $58,000 $539 $95,001- $96,000 $752 $20,001- $21,000 $259 $58,001- $59,000 $545 $96,001- $97,000 $757 $21,001- $22,000 $269 $59,001- $60,000 $550 $97,001- $98,000 $763 $22,001- $23,000 $280 $60,001- $61,000 $556 $98,001- $99,000 $768 $23,001- $24,000 $290 $61,001- $62,000 $562 1$99,001- $100,000 $774 Note - Effective July 1, 2024 Min. Permit Cost (including issuance fee) = $50.00 VALUATION ($) BASE INCREMENT-$10K ABOVE 100K $100,001- $500,000 $847 $48 VALUATION ($) BASE INCREMENT-$10K ABOVE 500K Over $500,001 $2,771 $40 Plan Review Fee-20% of Permit Fee Code Appeal Fee - $150 Permit Issuance Fee - $20 Page 731 of 750 Proposed updates to permitting application) processes and associated valuations and fees Page 732 of 750 CONTINUOUS IMPROVEMENT • Implementation of the Citizenserve Software citizenset ve w CREATE PERMIT PROJECT PR OJECTINFORMATION Protect Name. Type Property Address Parcel9 MAIN MENU n Home d Create File + PERMITINFORMATION N—, Ty,. 4 Search + Subtype L Reports + Applicant Support Center + Work Description u Administration + Staras val�enon Dubuque, IA t, 2003 2025 Citizens— ;; ez Search PERMITDATES ® IAppk u . Dare v 11/16/2025 Approval D— s— Date Expiration Date v closed Date 0.00 A' ` a ID12:05 PM 11/16/2025 Page 733 of 750 CONTINUOUS IMPROVEMENT Challenges Identified: 1. Inconsistent new construction project valuations 2. Complexity of mechanical, electrical, and plumbing permit applications Page 734 of 750 PROPOSED IMPROVEMENTS Challenge 1: Inconsistent project valuations are determined for new construction projects • Adopt a calculated valuation model using the International Code Council's (ICC) Building Valuation Data (BVD) as a basis, which establishes a per -square -foot valuation that factors in construction type and occupancy classification. • Reductions included for local market conditions, mechanical, electrical, and plumbing (MEP), and fire suppression. These valuations are captured in separate MEP and fire suppression permit valuations. • Further breakdowns included for residential permit valuations by area types • Additional reduction for commercial group R construction with intent of retaining values within +/-1% of historic average valuations Page 735 of 750 PROPOSED IMPROVEMENTS Challenge 1: Inconsistent project valuations are determined for new construction projects • Alterations will continue to use "stated valuations" • Fee structure for commercial projects will continue to use the existing fee tables. • Fee structure for residential will be simplified by using defined fee ranges or "buckets" • Frequently permitted items such as replacement windows, solar, and pools will have a flat fee for clarity and predictability Page 736 of 750 PROPOSED IMPROVEMENTS Challenge 2: Complexity of mechanical, electrical, and plumbing permit applications • Valuations based on stated values. • New MEP specific fee table for commercial projects • New defined fee ranges "buckets" for residential MEP permitting • Flat rate for high frequency equipment replacements such as furnace & AC change outs, and water and sewer line replacments or repairs. Page 737 of 750 63 DI n Building Code Advisory and Appeals Board — reviewed proposed changes on two occasions including at the October 30t" meeting. Changes were made to the recommendations based on feedback from those meetings. Several meetings were held with various Mechanical, Electrical, and Plumbing contractors to discuss proposed changes. The proposed changes were well received and overwhelmingly supported. Page 738 of 750 Clear and consistent permitting application processes Consistent permitting fees for similar projects Overall revenue neutral Improved customer experience Page 739 of 750 MEASURING OUTCOMES Key Performance Indicators (KPI's) • First submittal permitting / reduction in pre -application questions • Consistent and fair permitting costs for similar projects • Customer feedback • Revenue neutrality Page 740 of 750 THANK YOU! Questions? Page 741 of 750