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rate has dropped and in 2014/15FY it is estimated to be 75% based on the analysis presented in Table 1. For all building permit applications, the building permit and plan review fees are based upon the cost or valuation of construction projects. Construction valuation tables are used to determine the construction value for all permits for new construction projects. For all other permits, the valuation of the project is provided by the applicant. The new construction valuation table is adjusted annually to reflect changes in the Engineering News Record (ENR) Construction Cost Index for the San Francisco Bay Area. In 2007/08FY, the new construction permits' valuation represented approximately 25% of the valuation for all permits issued by the Building Division. In 2013/14FY, new construction permits' valuation represented approximately 36.6% of all permits issued by the Building Division. New construction typically represents approximately 18% of the total valuation for all permits issued annually. Once the project's valuation is determined, either by using the new construction valuation table or by the applicant, the building permit fee table (based on the valuation) is used to determine permit fees. Upon a review of the activity cost associated with various permits and the desire to recover a portion of the Planning Division's costs that are proposed to be deferred to the building permit stage (see Planning section below), it was determined that the building permit fee table rates should be increased by approximately 35% with the minimum permit fee set at $85. Currently the minimum fee is $23.50 and does not cover the cost of staff time for issuing a permit and traveling to the jobsite to perform an inspection. Additional changes that staff is recommending, include setting permit fees for four specific permit types: kitchen and bath remodels, reroofing and swimming pools to a flat fee versus a calculated fee based on valuation. This change is warranted because there is a disparate range in valuations for these projects and the permit fees charged. Staff tested several projects and found that the staff time is the same for these types of projects no matter what the valuation of the improvements. Also, the current fee schedule requires staff to spend time to count and itemize receptacles, switches, light fixtures, plumbing fixtures, gas outlets, ducts, fans, etc. in order to calculate fees for electrical, mechanical and plumbing work. By establishing a single electrical/plumbing/mechanical permit surcharge for all combination type permits, as well as, simplifying and standardizing trade permit fees, the City can automate the fee assessment process and calculation that will eliminate any delay in the permit issuance process. In addition, the new requirements in the State Green Building and Storm Water Treatment Regulations have greatly expanded the time to both review and inspect projects subject to these standards. As such, staff is proposing new permit surcharges to cover staff time on those projects subject to these regulations. This generally effects new construction projects, large additions and large tenant improvement projects. Page 3 of 9