Fairfax County Government

Land Development Services, DPWES Proposed Increase to Land and Building

Development Fees October 17, 2008

Last Fee Increase

July 1, 2005 - Increased zoning, plan review inspections, and permit fees

Shifted recovery rate from 80% to 90% July 1, 2006 – Increased site inspection fees as part

of “phased” adjustment

2005 Fee Increase Report Card:

Phased in the 2nd increase of site inspection fees Created a work group of industry representatives

and County staff to identify process improvements. Developed a program to support and recognize the

professionalism of plan reviewers and a system of accountability on par with designated plan examiners in private practice.

More regular update to fees

Trends

New residential and commercial development slowdown Increase in commercial alteration building permits issued Increase in the available minutes per residential

inspection Increase in available minutes per single discipline for

commercial inspections Increase in the number of complaints related to un-

permitted work and work done in the resource protection areas

Trends

Reduced number of projects in default Increase in cost of doing business Decrease in revenue due to economic downturn Decrease in site, subdivision and infill lot development

LDS’ Response to Workload Changes

Reviewed workload measures and revenue collection activity Looked for ways to minimize expenses, i.e., reduced service

contracts Explored opportunities in DPWES to “loan” staff Transferred 16 positions to other business areas Reduced Exempt Limited Term positions from 17 to 4 Assigned 4 positions to Strike Force Team (in addition to 5

positions specifically assigned to the Strike Force in FY 2009)

Holding 35 merit positions vacant Reviewing all vacant positions and continuing to manage

positions through attrition and evaluating re-assignments

2010 Proposed Fee Increases

Approach for Adjusting Fees

First…. Categorized LDS’ activities as either “private” good or

“public” good as defined by ICMA Private Good

Services with identifiable customers Solely benefits a specific customer such as plan

review, bonding, permits and inspections Public Good

Services that benefit the community as a whole such as enforcement of the grass ordinance, illegal land disturbing activities, administration of the E&S program, and developer bond default

Then…. Looked at multiple site plan types reviewed and

approved in FY 2007 Determined validity of time recorded Compared today’s cost using hourly rate and time

expended against actual fee charged to determine if cost of service was covered by fee

Findings…. Cost of providing services ranges from breaking even to losing as much as 200%.

Approach for Adjusting Fees

Reviewed Commercial and Residential building plan review, permit and inspections activities Compared today’s cost using hourly rate and time

expended against actual fee charged to determine if cost of service was covered by fee

Findings…. greater disparity exists between actual costs associated with residential plan review and inspections than commercial plan review and inspections

Approach for Adjusting Fees

Recommendations:

Category Proposed Percent Increase

Waivers and Inserts 0%All Site Plans and Inspection Fees

39%

Infill Lot 100%All Commercial and Residential Alteration Permit Fees

27%

New Residential Permit Fees 50%

Note: General inflation is expected to grow 22% from 2004 the time of the last fee increase to 2009 the anticipated effective date of the current fee proposal.  This 22% masks the recent increase in fuel costs which have increased much more over the same period.

Site Review Fee Comparisons (current fees)

Non-ResidentialProjects

Fairfax(current)

Fairfax(proposed)

Arlington Prince William

Loudoun *Montgomery

Church $6,190 $8,604 $1,400 $840+2.35%

Bond Amt

$5,294 $4,020

Office < 50,000 Sq, Ft.

$15,610 $21,698 $6,240 $25,585 $5,313 $18,532

Telecommunication Facility

$13,250 $18,418 $1,400 $31,864 $5,427 $50,230

Drive Thru Pharmacy $9,780 $13,594 $4,206 $8,205 $4,943 $6,680

Source: Fairfax County 2008 jurisdictional survey. *LDS calculated fee based on jurisdiction’s fee schedule.

Site Review Fee Comparisons (current fees) Residential Projects

Fairfax(current)

Fairfax(proposed)

Arlington Prince William

Loudoun *Montgomery

S.F. Attached, (192 lots, 8.53 acres)

$19,546 $27,168 $37,991 $53,880 $2,575 + (.0075 xBond Amt)

$36,180

S.F. Attached & Detached, (49/63 lots, 30.56 acres)

$41,055 $57,066 Unavailable $40,208 “ “ $22,980

S.F. Detached (35 lots, 8 acres)

$12,290 $17,083 $7,026 $14,994 “ “ $15,735

S.F. Detached (7 lots, 2.1 acres)

$6,750 $9,382 $6,176 $2,574 “ “ $4,055

S.F. Detached (40 lots, 69.17 acres)

$12,500 $17,375 $22,756 $14,580 “ “ $16,100

Source: Fairfax 2008 jurisdictional survey. *LDS calculated fee based on jurisdiction’s schedule

Building Fee Comparisons (current fees)Building Type

Fairfax FairfaxProposed

Arlington Alexandria Loudoun Prince William

Montgomery(Enterprise)

100,000 SF New Office

$13,000(assumes type I const)

$17,000 $90,400 $88,200 $77,700 $17,000 $236,220

200,000SF New Condo

$26,000(assumes type I const)

$34,000 $180,700 $151,200 $141,000 $34,000 $236,220

50,000 SFOffice Alt.

$56,250(assumes 45/sf)

$56,250 $32,300 $7,500 $22,500 $15,180 $58,000

3,000 Sq. Ft., SFD

$295(assumes ANSI Std home)

$445 $1,940 $1,692 $1,267 $270 $2,115

800 Sq. Ft., SFD Alteration

1.5% est.Cost

1.5% est.Cost

$145 $120 1% of est. cost

$63 $350

Source: Arlington County 2007 Survey

Questions and Answers