PRESENTER: Presenter
KC Collins, PE, CFM, Building Official
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SUBJECT: Title
Presentation and possible direction regarding penalty fees for work without permits, and associated minor fee schedule updates.
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DEPARTMENT: Planning & Development Services
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COUNCIL DISTRICTS IMPACTED: All
BACKGROUND INFORMATION:
Obtaining permits for building construction is a process that includes reviewing plans and drawings submitted by contractors to ensure their planned construction meets the adopted International Building, Fire, Plumbing, etc. safety codes. At certain milestones of construction, builders are also required to call in various inspections where city inspectors verify the construction is being built in accordance with the approved plans.
ISSUE:
Concern has been expressed about some recent high-profile incidents of construction occurring without permits. The City of New Braunfels does not have a strong penalty fee in our ordinances to discourage this illegal activity. Currently, if the City becomes aware of an incident of work without a valid permit, the only penalty is a $100 fine associated with a Stop Work Order. That has proven insufficient in many cases to discourage some parties from starting work without obtaining a valid permit.
FISCAL IMPACT:
Penalty fees received would be deposited into the Development Fund for utilization in the multi-department development process.
Recommendation
RECOMMENDATION:
Staff surveyed 14 different Texas cities and found a large degree of variation on this type of policy with some cities having no penalty at all and the most punitive having a fee of five times the normal permit fee (which could go into the hundreds of thousands of dollars). Staff suggests consideration of a moderate but effective approach of a flat penalty fee for work without permits, not linked to the amount of the building permit fee:
• $500 per offense for residential
• $2,000 per offense for commercial
Staff would also propose including a few additional minor edits to the fee ordinance which reflect some recent process changes, updates to accurately name processes, etc. Adding a penalty fee for work without valid permit to New Braunfels’ Code of Ordinances is respectfully proposed for City Council’s consideration and direction as needed.