DATE: November 24, 2015
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Chris Bridgewater, Director BNS
Lynn Osland, Development Services Operations Analyst
SUBJECT:
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Consideration of an Ordinance 2015-60 to Amend The City of Franklin Municipal Code, Appendix A - Comprehensive Fees and Penalties, Chapter 12 Relating To Use of a Standard Construction Valuation Table Published by the International Code Council to Calculate Non-Residential Building Permit Fees (11/24/15 WS; 1st Reading 12-08-18 BOMA 8-0) SECOND AND FINAL READING
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Purpose
The purpose of this memo is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning the proposed ordinance that provides a standardized method to value non-residential and multi-family projects in order to determine permit fees.
Background
It is proposed that valuation for non-residential and multi-family projects be cross-checked against a national average construction valuation chart published by the International Code Council (ICC). Currently, the fees for non-residential building permits are calculated using the construction cost provided by the applicant. These stated valuations can vary significantly from builder to builder for the same type of building and many times staff cannot determine if the contractor has accurately stated the valuation. With the proposed method, the national average construction cost per square foot is used to determine the valuation used to calculate the permit fee and the chart is detailed enough to accommodate a wide range of uses and methods of construction. Local jurisdictions that use this method are the State of Tennessee, Mount Juliet, and Metro Nashville. Murfreesboro uses the ICC valuation table as a reference, as well.
Financial Impact
The financial impact of this ordinance will be to provide a consistent method to determine the construction costs used to calculate non-residential permit fees.
Recommendation
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Approval of the proposed ordinance is recommended.