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HomeMy WebLinkAbout7.4 1st Reading of an Ordinance Amending Chapter 11, "Merchants, Business, Occupations and Amusements" and Chapter 21, "Building Code" of the Village Code2/20/2018 BoardDocs® Pro Agenda Item Details Meeting Feb 20, 2018 - REGULAR MEETING OF THE MOUNT PROSPECT VILLAGE BOARD - 7:00 p.m. Category 7. NEW BUSINESS Subject 7.4 1st reading of an ORDINANCE AMENDING CHAPTER 11, "MERCHANTS, BUSINESSES, OCCUPATIONS AND AMUSEMENTS" AND CHAPTER 21, "BUILDING CODE" OF THE VILLAGE CODE OF MOUNT PROSPECT, ILLINOIS TEXT AMENDMENTS TO CHAPTER 11 AND CHAPTER 21 OF THE VILLAGE CODE. Type Action Fiscal Impact Yes Recommended Action Approve an Ordinance amending Chapter 11 "Merchants, Businesses, Occupations and Amusements," Chapter 21 "Building Code" and Appendix A of the Village Code. Single Family Reinvestment Program and Residential Fire Sprinklers In response to the Village's strategic goal to encourage reinvestment and redevelopment of the single family detached housing stock within Mount Prospect, staff has hosted a series of roundtable meetings with both residential and commercial developers. In addition, staff surveyed permit applicants, performed internal code and process reviews in relation to the current development and permit codes. While there are a number of areas of focus that became apparent in the roundtable meetings and staff surveys, the topic of residential fire sprinklers and residential permit fees were pronounced. In addition, these two topics were prevalent in the roundtables. In a discussion about residential fire sprinklers and permit fees at the Committee of the Whole meeting on January 9, 2018, staff presented options for revised codes that included broad concepts of how to upgrade the fire resistance of a single family detached structure and allow for a limited sprinkler system to be installed. The Village Board provided direction for staff to better define what a limited sprinkler system would consist of and to perform a survey of the existing homeowners that have residential sprinkler systems today. The attached draft ordinance proposes the necessary revisions to incorporate the Single Family Reinvestment Program and Residential Fire Sprinkler code updates. Permit Fee Update Beyond the residential sprinkler system's impact on the redevelopment of the single family home stock, permit fees were named by surveys as an area of concern. The survey of surrounding communities proved the Mount Prospect's permit fees were higher than several of the closest neighboring communities. The current Village permit fee is based on a percentage of construction cost. The proposed permit fee schedule is based more on a flat fee basis rather than a construction cost basis. A great example where this would be effective is for a water heater replacement. It should not impact the Village and our staff's required work whether someone installs a more basic water heater or the top of the line water heater. A flat fee is being introduced to eliminate the perceived "penalty" for someone that buys a more expensive product or builds a higher quality home. Please see the attached memo from Bill Schroeder regarding the proposed code amendments and fee changes. Also attached is a final building permit fee survey that clearly outlines proposed fees compared to our existing fees. Alternatives 1. Approve an Ordinance amending Chapter 11 "Merchants, Businesses, Occupations and Amusements," Chapter 21 "Building Code" and Appendix A of the Village Code. 2. Action at discretion of Village Board. https://www.boarddocs.com/iI/vomp/Board.nsf/Public# 1/2 2/20/2018 BoardDocs® Pro Recommendation Staff recommends to the board adopt the proposed code updates as outlined in attached draft ordinance. Staff believes that these code and process improvements will improve the opportunity for Single Family Reinvestment and provide additional options for development in the community. It is Staff's recommendation that these fee modifications are more aligned with adjacent communities and will better position the Village of Mount Prospect to capitalize on the region's market for single-family home redevelopment and reinvestment. so — . 4 s R. � Final building permit fee survey chart (1-9-2018).pdf (278 KB) https://www.boarddocs.com/il/vomp/Board.nsf/Public# 2/2 11 \:\\1. AN ORDINANCE AMENDING CHAPTER 11 "MERCHANTS, BUSINESSES, OCCUPATIONS AND AMUSEMENTS," CHAPTER 21 "BUILDING CODE" AND APPENDIX A OF THE VILLAGE CODE OF MOUNT PROSPECT, ILLINOIS WHEREAS, the Village of Mount Prospect is a home rule municipality as defined by Article VII, § 6 of the Illinois Constitution of 1970; and WHEREAS, the President and Board of Trustees of the Village of Mount Prospect desire to make certain amendments to the Village Code of Mount Prospect as set forth below in an effort to encourage community reinvestment while maintaining the highest life -safety standards; and WHEREAS, pursuant to the authority granted under the Illinois Municipal Code and in accordance with home rule authority granted to home rule municipalities, the President and Board of Trustees of the Village of Mount Prospect approve the amendments as set forth below. BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS: SECTION 1: Section 11.902, "Registration; Contractors Exempt From Village Regulation; Permit," of Article IX, "Contractors," to Chapter 11, "Merchants, Businesses, Occupations and Amusements," to the Mount Prospect Village Code shall be amended to read in its entirety as follows: 11.902: REGISTRATION; GENERAL CONTRACTORS EXEMPT FROM A. E�ieept as -provided in subseetion B of this seetion, this a4iele does not apply to eet4ain No permit shall be issued on a project using a general contractor the eofAf etefs desefibed iii subseetion ^ of this seetio and no work shall be performed by sucheg neral 391450_1 contractors within the village, unless they have registered with the village by submitting a copy of their current state of Illinois registration with an application for registration, upon receipt of which the village shall register the contractor for a period of three hundred sixty five (365) days from the date of issuance without any fee. (Ord. 6073, 5-21-2013) SECTION 2: Appendix A, Section 11.903, "License Fees (Contractors)," to Division 11, "Fees, Rates and Taxes," to Chapter 11, "Merchants, Businesses, Occupations and Amusements," to the Mount Prospect Village Code shall be amended to read in its entirety as follows: Section 11.903: LICENSE FEES General Contractors): Fee: x0.00 $200.00 per license term. State licensed contractors are exempted from payment; only proper registration required. SECTION 3: Appendix A, Section 21.303, `Building Permit Fees," to Division II, "Fees, Rates and Taxes," to Chapter 21, "Building Code," to the Mount Prospect Village Code shall be amended to read in its entirety as follows: Section 21.303: BUILDING PERMIT FEES: Minimum permit fee shall be $-50-75.00. As of April 1, 2018 all residential permit fees shall be assessed as set forth in the followin table:. Residential Permit Fees Permit Fee $75 total $200 total $250 total $300 total $500 total $750 total Refundable $100 $100 $100 $150 $250 Bond No Bond included included included included included Flood Control Bath Basement Interior Fence Boiler System Remodel Finish Remodel Permit French Chimney Sewer Exterior Detached Fire Types Drain Repair Repair Remodel Garage Restoration Low Voltage Alarm Deck Fire Alarm Kitchen 391450_1 Residential Permit Fees- Continued Roof Demolition s.L Remodel, minimum Fire Sprinklers $750 Construction Shed Drainage Bond Solar Panels New House Addition Construction Water Heater Egress Window Electric Flatwork Generator Hot Tub HVAC Lawn Irrigation Plumbing Pool Demo Pool Install Residential Permit Fees- Continued $2 per s.L New + $1 per $2 per s.L s.L Remodel, minimum New $750 Construction add $350 add $350 Bond Bond New House Addition Construction Fee includes all plan reviews, initial inspections, and engineering fees Single Family Detached Reinvestment Plan: In order to encourage reinvestment in detached single family homes in the Villa incentive plan is hereby enacted for two years from the date of approval. Any extension of this incentive period will be at the discretion of the Village Board. The details of the incentive program are as follows: A. For all stand-alone 13D combliant residential sbrinkler systems installed in new single family detached structures, a reduction of building permit fees in the amount of 50% will be applied to the permit. B. For all multi-purpose 13D compliant residential sprinkler systems installed in new single familv detached structures. a reduction of building hermit fees in the amount of 25% will be applied to the permit. C. For all Limited Residential Fire Suppression Systems (LRFSS) installed in new single family detached structures, no reduction of building_ permit fees will be offered. 391450_1 All Non -Residential permit fees shall be assessed as follows: Non-residential permits fees shall be calculated based on I% of construction costs, with the minimum fee being $75.00. . .was . aaMTa .. _ .. For large scale developments over $500,000.00 of assessed permit evaluation, it shall be at the discretion of the Director of Community Developmeii Building and Inspection Services or their designee to require the permit applicant to pay for actual costs of inspection and plan review services for the development, including but not limited to any third party inspection and plan review services. SECTION 4: Appendix A, Section 21.304, "Electrical Permits," to Division II, "Fees, Rates and Taxes," to Chapter 21, "Building Code," to the Mount Prospect Village Code shall be amended to read in its entirety as follows: Section 21.304: ELECTRICAL PERMITS: Electrical permit fees shall be calculated based on 1% of construction costs, with the minimum fee being $75.00.Nfinimum pe t fee shall be S50.00, The fees for examination of plans when plans are submitted that are not in conjunction with construction or plumbing shall be $2350.00 for the initial review. Any additional reviews shall be charged at the current hourly rate of the plan reviewer. SECTION 5: Appendix A, Section 21.305, "Plumbing Permits," to Division II, "Fees, Rates and Taxes," to Chapter 21, "Building Code," to the Mount Prospect Village Code shall be amended to read in its entirety as follows: Section 21.305: PLUMBING PERMITS: Plumbing_ permit fees shall be calculated based on I% of construction costs, with the minimum fee being $75.00.Minimum Fefmit fee shall be S50.00, 391450_1 All applicants for water service shall provide and pay the costs of construction, both labor and material, of the water service from the main to the premises to be served. This construction work in connection with the water service shall be performed by a licensed plumber who has filed with the village a properly executed bond. The water meter shall be furnished by the village and a charge made to cover the cost of such meter. For the connection charge, the village will inspect the water service to determine that the construction thereof is in accordance with specifications established by the village for the regulation of the water and sewer system. The fees for examination of plans when plans are submitted that are not in conjunction with construction or electrical shall be $50.00 for the initial review. Any additional reviews shall be charged at the current hourly rate of the plan reviewer. SECTION 6: Appendix A, Section 21.306, "Gas Piping Permits," to Division II, "Fees, Rates and Taxes," to Chapter 21, "Building Code," to the Mount Prospect Village Code shall be amended to read in its entirety as follows: Section 21.306: GAS PIPING PERMITS: Gas piping permit fees shall be calculated based on I% of construction costs, with the minimum fee being $75.00.Minimum fee: Mini "'^' pefmit fee shall be $50 nn SECTION 7: Appendix A, Section 21.307, "Air Conditioning and Refrigeration Permits," to Division II, "Fees, Rates and Taxes," to Chapter 21, "Building Code," to the Mount Prospect Village Code shall be amended to read in its entirety as follows: Section 21.307: AIR CONDITIONING AND REFRIGERATION PERMITS: Air conditioning and refrigeration permit fees shall be calculated based on 1% of construction costs, with the minimum fee beim_ S75.00.Minimum fee: Minimum pefmit fee shall be $50.00. 391450_1 SECTION 8: Appendix A, Section 21.308, "Mechanical Equipment Installation Permits," to Division II, "Fees, Rates and Taxes," to Chapter 21, "Building Code," to the Mount Prospect Village Code shall be amended to read in its entirety as follows: Section 21.308: MECHANICAL EQUIPMENT INSTALLATION PERMITS: Mechanical equipment installation perinit fees shall be calculated based on 1% of construction costs, with the minimum fee being $75.00.Minimtim fee: Minimum pefmit IMMATATAWATAIWI SA.. 1.01 IN r AW .. Fire protection system fees shall be as follows: FIRE DEPARTMENT PERMIT AND PLAN REVIEW FEES Permit Fees Automatic fire sprinklers: Number of new or relocated sprinklers: 1-20 $100.00 .... �21 - 100 175.00 101 - 200 200.00 201 - 300 250.00 301 - 400 350.00 401 -500 450.00 Over 500 1.00 Standpipes systems 150.00 Fire pumps 200.00 Fire alarm systems iiiiiiiiiiiiiiiiiiiiiillillillillillillilliillillillillillillilliilliillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillilliillillillillillillillillillillilliillillillillillillilliillillillillillillI 200.00 391450_1 Miscellaneous fire suppression systems 200.00 SECTION 9: Appendix A, Section 21.318, "Demolition and Moving of Buildings; Fees and Bonds," to Division Il, "Fees, Rates and Taxes," to Chapter 21, `Building Code," to the Mount Prospect Village Code shall be amended to read in its entirety as follows: Section 21.318: DEMOLITION AND MOVING OF BUILDINGS; FEES AND BONDS: B. Demolition permit fee: $200.00 plus a fixed fee computed at a rate of $10.00 for each 10 feet of height of such building or structure above 10 feet in height. C. Minor demolition permit fee: W$75.00. D. Moving building permit fee: $1,000.00. SECTION 10: Appendix A, Section 21.320, "Fence Permits," to Division 11, "Fees, Rates and Taxes," to Chapter 21, `Building Code," to the Mount Prospect Village Code shall be amended to read in its entirety as follows: Section 21.320: FENCE PERMITS: Fee: $S0$_25.00. SECTION 11: Appendix A, Section 21.322, "Driveway Permits," to Division Il, "Fees, Rates and Taxes," to Chapter 21, "Building Code," to the Mount Prospect Village Code shall be amended to read in its entirety as follows: 391450_1 Section 21.322: DRIVEWAY PERMITS: Driveway permit fees shall be calculated based on 1% of construction costs, with the minimum fee being $75.00. . SECTION 12: Section 21.501, "Definitions of Words and Phrases," of Article V, "Definitions," to Chapter 21, "Building Code," to the Mount Prospect Village Code shall be amended to insert the following definition of "LIMITED RESIDENTIAL FIRE SUPPRESSION SYSTEMS (LRFSS)" to read as follows: LIMITED RESIDENTIAL FIRE SUPPRESSION SYSTEM (LRFSS). A combination of upgraded fire resistant gypsum board, elimination of engineered trusses within a building, and the inclusion of residential sprinkler heads installed in certain specific areas of single family detached construction in order to substitute the requirement for an NFPA 13D or equivalent sprinkler system. An LRFSS is defined as all of the following_ 1. The entire single family detached structure shall be protected with type -x fire rated gypsum board. The use of unrated gypsum board shall be prohibited in conjunction with an LRFSS. 2. No open web or solid web engineered floor or roof trusses shall be permitted in conjunction with an LRFSS. Only dimensional lumber shall be used for framing elements, except engineered beams, posts and headers shall be allowed. 3. Residential sprinkler heads shall be provided in the kitchen using the layout and coverage requirement of an NFPA 13D system. The supply piping for a fire suppression system shall meet the requirements of a multipurpose system as defined in Section P2904 and all installations shall comply with the Illinois Plumbing Code. In addition, a sprinkler head shall be provided in any mechanical closets or areas where a furnace or water heater is located, and shall meet the same requirements as the kitchen sprinkler heads for design and supply. SECTION 13: Section 21.501, "Definitions of Words and Phrases," of Article V, "Definitions," to Chapter 21, "Building Code," to the Mount Prospect Village Code shall be amended only as to the definition of "NEW CONSTRUCTION" to read as follows: 391450_1 NEW CONSTRUCTION: An existing structure shall be considered as new construction and shall meet all of the provisions of this code and all other adopted codes and standards for new construction when either of the following conditions exist: A. The linear feet measurement of demolished exterior and interior walls is equal to or greater than fifty percent (50%) of the total linear feet of the existing ex4e walls (pefiffietef of the e�iistiiig walls). For the purpose of this definition a wall is considered to be demolished when, in the opinion of the Director of Building & Inspection Services village engi ee , the structural integrity of the wall has been compromised (no longer capable of supporting the structure) or when two (2) or more components of the wall are removed; or B. The square footage of the structure is increased by to one hundred fifty percent (150%) ore_rg ater of the existing structure's square footage. In single-family homes and townhomes the habitable square footage shall be used as a basis for determining the percentage of square footage increase. C. If the square footage of the structure is increased by less than one hundred fifty_percent (150%) of the existing structure's square footage, only the new portion of the structure shall be required to meet the construction requirements for new construction, unless the existing structure is modified according to Section A above, in which case the entire structure shall be considered new construction. SECTION 14: Subsection P2904.1 "General," of Section P2904, "Dwelling Unit Fire Sprinkler Systems," of the 2015 International Residential Code adopted by the Mount Prospect Village Code in Section 21.106 "Residential Code Adopted," of Article I "Enactment and Scope," to Chapter 21 `Building Code," of the Mount Prospect Village Code shall be amended to read in its entirety as follows: P29041 General. The design and installation of residential fire sprinkler systems shall be in accordance with NFPA 13D or Section P2904, which shall be considered equivalent to NFPA 13D. Partial residential sprinkler systems shall be permitted to be installed etily in in single family detached residences that meet all the requirements set forth in the definition of a Limited Residential Fire Suppression SystemLRFSS) as provided for in Village Code Section 21.501. Section P2904 shall apply to LRFSS, stand-alone and multipurpose wet -pipe sprinkler systems that do not include the use of antifreeze. A multipurpose fire sprinkler system shall provide domestic water to both fire sprinklers and plumbing fixtures. A stand- alone sprinkler system shall be separate and independent from the water distribution system. A backflow preventer shall not be required to separate a stand-alone sprinkler system from the water distribution system. SECTION 15: This Ordinance shall be in full force and effect from and after its passage, approval and publication in pamphlet form in the manner provided by law. 391450_1 AYES: NAYS: ABSENT: PASSED AND APPROVED this day of , 2018 Arlene A. Juracek, Village President ATTEST: Deputy Village Clerk 391450_1 Village of Mount Prospect Community Development Department TO: MICHAEL J. CASSADY, VILLAGE MANAGER NELLIE BECKNER, ASSISTANT TO THE VILLAGE MANAGER FROM: DIRECTOR OF BUILDING & INSPECTION SERVICES DATE: FEBRUARY 14, 2018 SUBJECT: Single Reinvestment Program, Residential Fire Sprinkler Update, and Permit Fee Update Background In response to the Village's strategic goal to encourage reinvestment and redevelopment of the single family detached housing stock within Mount Prospect, staff has hosted a series of roundtable meetings with both residential and commercial developers. In addition, we surveyed permit applicants, performed internal code and process reviews in relation to the current development and permit codes. While there are a number of areas of focus that became apparent in the roundtable meetings and staff surveys, the topic of residential fire sprinklers and residential permit fees were pronounced. In addition, these two topics were prevalent in the roundtables. Developers and architects have noted that any additional costs, such as a residential fire sprinkler requirement does affect the financial feasibility of a project. While Staff understands the value of residential fire sprinklers, it is important to recognize the impact this requirement may be having on single family reinvestment in the Village of Mount Prospect. In addition, analysis of submitted plans leaves staff to believe some builders concentrate their building efforts on avoiding residential sprinklers by limiting design and scope of work. In essence, the builders are designing "less" of a house, investing less, and reducing the potential EAV in the community. Beyond the residential sprinkler system's impact on the redevelopment of the single family home stock, permit fees were named by surveys as an area of concern. The survey of surrounding communities proved the Mount Prospect's permit fees were higher than several of the closest neighboring communities. January 9, 2018 Committee of the Whole Meeting In a discussion about residential fire sprinklers and permit fees at the Committee of the Whole meeting on January 9, 2018 staff presented options for revised codes that included broad concepts of how to upgrade the fire resistance of a single family detached structure and allow for a limited sprinkler system to be installed. The Village Board provided direction for staff to better define what a limited sprinkler system would consist of and to perform a survey of the existing homeowners that have residential sprinkler systems today. Staff sent out a survey on residential fire sprinklers to the approximate 200 property owners. The residential fire sprinkler survey included questions on the square footage of your home, the cost of fire sprinklers installed, the sprinkler installation contractor, architectural modifications, and annual maintenance, and asked for their opinions on the sprinklers in regards to safety, value, and aesthetics. The results of this survey are due back to the staff on February 19th, 2018. The current Village permit fee is based on a percentage of construction cost. The proposed permit fee schedule is based more on a flat fee basis than a construction cost basis. A great example where this would be effective is for a water heater replacement. It should not impact the Village and our staff's required work whether someone installs a more basic water heater or the top of the line water heater. So a flat fee is being introduced to eliminate the perceived penalty for someone that buys a more expensive product or builds a higher quality home. Single Family Reinvestment Program and Residential Fire Sprinklers Staff has formulated a tiered incentive program to encourage the installation of a fire sprinklers as required by the current 2015 International Residential Code (IRC) adopted by the Village. Tier 1: Full 13D Residential Fire Sprinkler System This incentive begins at a 50% reduction of permit costs and is intended to offset some of the costs incurred with the installation of the full 13D residential fire sprinkler system and ultimately encourage single family reinvestment. For reference, Figure A indicates an example of a traditional 13D grid residential fire sprinkler system. VORK b W Im Malt BMkrdtlamt MY M a OY r 9) 9 1 cr o 4 WmIFq Roam P MAIN FLOOR PLAN �. ,'"KALE'. '9 t4" =1'-b" 1 114" PIKE FROM BASEM,N 1!6 g1('�.�i to 4 r.. � c„y rY drr to V1 .. ..... ....... ................_. �............. 81-0 P A.........._..._..................... MIGum4V ,- ..... r'ri 6 rn ... aFP tG C M.d Fm'e '.... FIGURE A: Example of traditional 13D residential grid systefn Tier 2: "Multipurpose" Fire Sprinkler System A second level of incentive is proposed at 25% reduction of permit costs for a "multipurpose" sprinkler system as defined by the 2015 IRC and allowed by the Illinois Plumbing Code. This system uses the domestic water system to supply the sprinklers throughout a home, but doesn't require a backflow preventer or separate dedicated sprinkler piping. All plumbing must be looped back to the main plumbing supplies within the home with no dead ends in plumbing allowed. For reference, Figure B indicates an example of a looped 13D residential fire sprinkler multi-purpose system. FIGURE B: Example of looped multi-purpose 13D residential system Tier 3: Limited Residential Fire Sprinkler System There is no incentive proposed for a Limited Residential Fire Sprinkler System (LRFSS). This concept incorporates upgraded compartmentalization of fire areas by requiring the entire home to be protected by fire rated (type -x) gypsum board. This option requires the elimination of engineered roof trusses and floor trusses from the house framing system. These structural components have been proven through national testing laboratories to deteriorate faster in a fire as compared to conventional dimensional lumber framing in a fire situation. The final component to the LRFSS is to provide domestic fire sprinkler coverage within the kitchen and the mechanical areas of the house only. The LRFSS heads installed are still required to comply with standard fire sprinkler design. The upgraded construction methods of the LRFSS can provide additional levels of fire protection and improve the built environment. FIGURE C: Example of looped limited 13D residential system. Crossed out heads are not required in a limited system. Permitting multiple fire sprinkler solutions and providing two incentive levels for permit fee rebates creates a building environment where you have codes that encourage homeowners and developers to install a full sprinkler system such as a standalone or the multipurpose variety. The attached draft ordinance proposes the necessary revisions to incorporate the Single Family Reinvestment Program and Residential Fire Sprinkler code updates. Additionally, the Single Family Sprinklers memo from the January 9, 2018 Committee of the Whole Meeting detailing research, survey results and proposed strategies is attached. Permit Fee Update Additionally, staff looked at the numerous number of fees that make up the overall building permit fee for new single family home permits. Twelve different fees currently make up an overall permit fee. As building plan reviews and inspections are once again performed by Village staff, some of these fees are now more controlled. Process improvements already made, such as providing plan view services by Village staff has already reduced the applicants' permit costs .25 to .5% Other fees, such as the parkway tree fee, may not apply to every situation. If applicable, Public Works analyzes tree placement, costs shared with the community, and always ensures the tree quality of life. A standard cost per square foot of new construction and remodel are being proposed. This proposed method will streamline calculations for permit applicants and contractor estimating costs for projects. Any hard costs to the Village, such as water meters and storm water detention fees, will be included in the per square foot costs. This eliminates the perceived layering effect of costs to the public and provides a much more user friendly permit fee structure. It is staff's recommendation that we leave the commercial fees the same. Attached is the Proposed Residential Schedule of Fee table for reference as well as the Permit Fee Survey memo from the January 9, 2018 Committee of the Whole Meeting. Sub -Contractor Licenses During our process evaluation, we found that the issuance of a permit has been delayed because of missing sub -contractor licenses or in many cases, the sub -contractors have not been selected. Staff found this area as an opportunity to improve the permit issuance process and still hold the general contractor accountable for the permit work. Staff is proposing eliminating contractor licenses for sub -contractors only and license only General Contractors for permit projects. Staff found that general contractor licensure is approximately 25% of the licenses issued. The remaining 75% are sub -contractors. To offset any revenue loss from eliminating sub -contractor licensure, we are proposing that contractor license fees be increased from $50 to $200 to remain revenue neutral for this proposed process improvement. The Village will still exempt residents from contractor licensure and license fee for residents who choose to be their own general contractor. Any state licensed trades such as plumbers and roofers are exempted from local licensure and only require registration (i.e. listing) on the permit application. The attached proposed draft ordinance includes the necessary fee revisions and updates. Recommendation Staff recommends to adopt the proposed code updates as outlined in attached draft ordinance. Staff research and collected feedback supports that these code and process improvements regarding fire sprinklers, permit fee and sub -contractor licensing will improve the opportunity for Single Family Reinvestment and provide additional options for development in the community and better position the Village of Mount Prospect within the region to capitalize on the market for single-family home redevelopment and reinvestment.. William M. Schroeder Village of Mount Prospect if Community Development Department ** CONFIDENTIAL MEMORANDUM ** \A TO: MICHAEL J. CASSADY, VILLAGE MANAGER NELLIE BECKNER, ASSISTANT TO THE VILLAGE MANAGER FROM: DIRECTOR OF BUILDING & INSPECTION SERVICES DATE: JANUARY 9, 2018 SUBJECT: Residential Fire Sprinklers and Single Family Reinvestment Program Introduction As part of the building department's process improvement evaluation, the Village held a series of roundtable meetings with both residential and commercial developers. In addition, we sent out approximately 3000 surveys to permit applicants to seek feedback about our development permit and inspection process. At the roundtable meetings, the discussion included permit fees, review times, third party consultant inspectors and plan reviewers, and the requirement for sprinklers in single family residential. All the feedback from the surveys are being utilized to improve process and improve service to the community. The purpose of this memo is to provide additional information about residential sprinkler systems, whether the Village of Mount Prospect is more restrictive than neighboring municipalities, and if this is having an impact on the amount of investment we are seeing in our single family housing stock. There has been significant debate in the residential construction industry through the last several code cycles on whether or not residential sprinklers should be mandated by local authorities. Developers at the recent roundtables provided feedback that any additional costs including residential fire sprinklers does impact the financial feasibility of the project. There is no debate that residential fire sprinklers have the potential to save lives. The question is not whether they work, but whether they are the only option for making single-family homes safer for occupants. Research The purpose of residential sprinklers is to allow more time for an occupant of a single family home to exit the house. The reason occupants need more time to exit is due to an increase in the rate of burning that is found in modern building materials versus those same materials produced 40 or 50 years ago. Specifically, wood in general and engineered lumbers burn faster and warp or twist, causing failures roughly 10 to 15 minutes faster than those same materials tested from many years ago. In addition, due to environmental concerns, building materials are not allowed to have as many chemicals added to them in the manufacturing process. In turn, without those chemicals such as fire retardants, glues, and sealant products, building materials do not withstand the damage caused by fire as well as they used to. Hence, the introduction of residential sprinklers to offset that decreased time to exit. While it seems very clear that residential sprinklers are useful, the local community of developers, builders, and architects are steadfastly opposed to them being mandated as the only option to protect occupants in single-family homes. Developers point to other communities such as Arlington Heights and Palatine that allow for enhanced building techniques and specific material exclusions within their local ordinances that appear to meet the same intent of residential sprinklers, without nearly as much cost. In addition, many developers have said the sprinklers are not aesthetically pleasing to their clients. Cost and aesthetics of residential sprinklers are the two main concerns raised by this group, which they contend is contributing to a lack of new single-family reinvestment in Mount Prospect. Staff surveyed the municipalities that are within two concentric rings around Mount Prospect. These communities were Arlington Heights, Palatine, Rolling Meadows, Elk Grove, Prospect Heights, Des Plaines, Buffalo Grove, Park Ridge, Northbrook, and Glenview. Our staff routinely survey these same communities to make comparisons to the Village of Mount Prospect. Of these locations, Arlington Heights, Palatine, Buffalo Grove, and Glenview do not mandate residential sprinklers for single-family homes, while the other six do require sprinklers. There is a 60/40 split in favor of communities that require residential sprinklers. The next question is: how does the requirement of sprinklers impact the development within each community? This is not easily answered, but the survey simply requested how many new single- family homes were built within each municipality in 2016. Arlington Heights topped that list with 127 new homes, none of which were required to have sprinklers. None of the communities surveyed came close to matching this Arlington Heights number, regardless of an active sprinkler ordinance.. Des Plaines responded with 33 new homes, and they do require sprinklers. In a conversation with Prospect Heights, it was revealed they are booming with teardowns and they require sprinklers. Prospect Heights was quick to point out that all their development has been limited to 20,000 square feet lots (1/2 acre) and that the houses being reconstructed are a minimum of 5,000 square feet. For homes at a minimum of size of 5,000 square feet, the cost of sprinklers has no impact to a million dollar plus home. The next area of focus is the actual cost of residential sprinkler systems. Sprinkler lobbyists will routinely state the cost is between $1.50 and $2.00 per square foot, whereas developers and builders will quote a number closer to $3.50 or $4.00 per foot. In order to get an actual cost of a residential sprinkler system, staff worked with a well-known residential sprinkler contractor who routinely installs systems within Mount Prospect and the surrounding communities. After additional research by the residential sprinkler contractor, they pointed to specific project in the Village and provided the following detail: For a house noted to have 4,959 square feet of space sprinkled, cost equates to $10,960 or $2.21 per square foot. The costs in this case are close to the values provided by the Sprinkler Lobbyists ($2.00 per square foot). When investigating this further, there is a substantial issue with the $2.21 per square foot value that was calculated: the building permit for this new construction lists the house as 2,962 square feet. The sprinkler contractor calculated the unfinished basement into the overall square footage of the house. While it is understood that the basement is sprinkled and they want to include that space in the square foot pricing, the house is only listed as a 2,962 square foot house on the market. All developers figure their saleable square footage based on the finished space within a house. They do not include unfinished space (i.e. basement) in the size calculation. When factoring in the saleable square footage into the costs, the sprinklers actually cost $3.70 per square foot, about double the costs advertised by the lobbyists. $3.70 per square foot is enough cost to affect the finishes of a house. If on a tight budget, a prospective owner will have to decide between granite and laminate counters, ceramic tile and vinyl sheet flooring, or downsize the size of the house to offset these costs and still get the amenities they want. In addition to the cost of the initial installation of a residential sprinkler system, there is an annual certification test for the backflow device installed on the water system. This backflow device protects the stagnant water that sits in the sprinkler pipes from being released back into the potable drinking water system of the rest of the house. The annual test runs about $100. Fire sprinkler advertisements market that the installation of a residential fire sprinkler system will save the owner money on their homeowner's insurance, which helps to justify the costs of the installation. Staff contacted a local Allstate agent and asked for a price comparison of a current customer that lives in Mount Prospect. This agent randomly selected a home on Palm Drive. A house not equipped with fire sprinklers on Palm Drive has an annual premium of $845.85. When a sprinkler system was added to the safety feature discounts of the home, the premium dropped to $779.85, or a total of $66 per year. There is a savings, but it doesn't even cover the annual backflow certification costs or offer a potential long term payback of the system. It is safe to say the savings in insurance are negligible at best when discussing residential sprinkler systems. The research indicates to two primary points: First, sprinklers make homes safer in a fire. Second, the cost of residential sprinklers can clearly have an impact on the redevelopment within the single-family home market. Options to Increase Single Family Home Reinvestment Staff has gathered a number of concepts that have been evaluated below including the use of fire rated drywall, localized domestic sprinklers over known fire sources, and the elimination of certain engineered products. Scenario A Staff looked at a typical house in Mount Prospect to evaluate the cost implications of finishing an entire house in fire rated (type x) drywall, as opposed to standard unrated drywall. A typical house that measures 2,700 square feet will contain about 212 sheets of 4x8 drywall. At Lowes and Home Depot, the cost difference between standard and type x drywall is $1.50 per sheet. The total cost increase over standard drywall is $318 for this hypothetical home. The installation, taping and finishing of the type x drywall is exactly the same as with standard unrated drywall, so the only impact is in the material cost. Type x drywall is used in rated wall assemblies throughout the country and is certified by Underwriters Laboratory. The paper surface is imbedded with fiberglass fibers that help the drywall hold up longer when exposed to fire. When used in a wall assembly (where all the components of a wall make up a system that resists fire, rather than each individual component acting alone) wood studs with type x drywall on either side can carry a one hour rating. This means that a simple 2x4 wall with type x drywall can hold back a fire for up to one hour before that wall system fails. This is a great improvement over the standard drywall assembly that carries no rating. While this will not potentially extinguish a fire like a residential sprinkler system, it will contain a fire to a smaller fire area for a longer period, allowing occupants more time to exit the rest of the house and get to safety. Scenario B Staff evaluated a concept of limited localized domestic sprinkler heads being required at typical fire producing areas within a house, as opposed to a full separate sprinkler system. The theory behind this is most fires within a home begin in one of several common locations: the kitchen, laundry room, utility closets, water heater and the furnace. The Illinois Plumbing Code allows for a limited number of sprinkler heads to be tied directly into the domestic water system with a looped design system to avoid stagnant water and eliminate backflow protection. The most common fire sources within a house all tend to be near the normal use of water fixtures, the cost to loop in domestic sprinkler heads can be limited. Staff's licensed plumbing inspector suggests that each head can be installed for a cost of $250. Assuming these four areas are equipped with fire sprinkler domestic head, the total cost is $1000. This is 1/10th the cost of a full residential sprinkler system and covers the most common fire sources within a home. In addition, with this system there is no need for annual backflow prevention testing. Scenario C Staff looked at an idea witnessed in Palatine and Glenview, where full residential fire sprinklers are only required if wood trusses and engineered lumber are used in the construction of a single family home. The background on wood trusses is mixed. Instead of using heavy dimensional lumber that can span smaller distances, smaller members are used in a truss design that can typically span from exterior wall to exterior wall. This engineered lumber truss design speeds up the construction framing process. On the other hand, these small members tend to warp and burn through faster than larger dimensional lumber in a fire situation. With engineered trusses, the connection points of the truss tend to fail quickly due to the warping of the burning wood, which causes the overall truss to fail and collapse. Engineered lumber was originally seen as a great compromise between open web trusses and dimensional lumber. The engineered lumber uses small dimensional lumber at the top and bottom and is spanned with a vertical piece of solid plywood in between. The engineered lumber can span longer distances than conventional dimensional lumber, but proved to be less reliable in a fire situation than dimensional lumber, thus decreasing safety. As a result, communities like Palatine and Glenview have recognized this discrepancy in safety and limited the requirement for full residential fire sprinklers to those single family homes that utilize engineered lumber and roof trusses. It doesn't specifically prohibit the use of these structural members, but it acknowledges the fact that they are less safe in a fire situation and requires them to upgrade the overall safety of the home with a full sprinkler system when they are used. Synopsis While the Village values residential fire sprinklers as a key component to our life safety ordinances, we also recognize the impact this requirement may be having on redevelopment in the Village of Mount Prospect's single-family residential community. We are proposing a modification to the residential fire sprinkler ordinance that allows alternative construction methods to offset the requirement of full 13D fire sprinkler system. Rather than choosing from the number of options outlined above, Staff is recommending a combination of enhanced construction methods and options to provide improved safety in single- family residential built structures. Recommendations on Fire Sprinklers in Single Family Homes All New Single Family Detached Homes All new single-family detached homes are required to be equipped with a full 13D Residential Fire Sprinkler System. The requirement for a full 13D Residential Fire Sprinkler System in completely new single-family detached dwellings can be waived if all of the following conditions are met: 1. The entire interior of the structure is finished with type x fire rated drywall 2. A single domestic sprinkler head is provided at the following locations: kitchen, laundry room, utility closets, water heater and furnace. Installation must meet the requirements of the Illinois Plumbing Code and provide a minimum of four residential sprinkler heads in the structure. For the purposes of this code, this limited system will be referred to as a limited residential fire sprinkler system (LRFSS). 3. The use of engineered floor and roof trusses are prohibited in the structure with a limited residential fire sprinkler system. If engineered floor or roof trusses are installed, a full 13D residential fire sprinkler system will be required. Remodeled Single Family Detached Homes when 50% or more of the total existing walls are removed and/or where any house addition is double or more the existing square footage. The structure is defined as new construction. All remodeled single-family detached homes that remove 50% or more of the existing walls are required to be equipped with a full 13D Residential Fire Sprinkler System. The requirement for a full 13D Residential Fire Sprinkler System can be waived if all of the following conditions are met: 1. The entire interior of the structure is finished with type x fire rated drywall 2. A single domestic sprinkler head is provided at the following locations: kitchen, laundry room, utility closets, water heater and the furnace. Installation must meet the requirements of the Illinois Plumbing Code and provide a minimum of four residential sprinkler heads in the structure. For the purposes of this code, this limited system will be referred to as a limited residential fire sprinkler system (LRFSS). 3. The use of engineered floor and roof trusses are prohibited in the structure with a limited residential fire sprinkler system. If engineered floor or roof trusses are installed, a full 13D residential fire sprinkler system will be required. Remodeled Single Family Detached Homes when less than 50% of the total existing walls are removed and/or where any house addition is less than double the existing square footage. Remodeled single-family detached homes that have less than 50% of the exterior walls removed require any residential fire sprinklers. The installation of residential fire sprinklers are optional. Recommendations on Permit Fees to Incentivize Single Family Home Reinvestment In addition, based on fee surveys of surrounding communities, staff is recommending that permit fees be temporarily adjusted for new constructed single-family homes and remodeled homes where more than 50% of the exterior walls are removed. All New Single Family Detached Homes that are equipped with a Full 13D Residential Fire Sprinkler System Any new permitted and constructed home meeting these parameters where the permit is issued and is fully constructed between the period January 2018 and December 31, 2019 will receive the following permit fee concessions: 1. Discounted permit fee equivalent to 1 % of the cost of construction. 2. Waiver of the Single Family Detached Village Donation (a.k.a. Village impact fee) 3. Waiver of parkway tree fee. 4. Waiver of Building and Fire Plan Review fees. Full code plan review compliance required. See attached single-family home fee survey and comparison. We believe these modifications, in addition to the improvement being made in review times, in conjunction with the use of Village Inspectors and plan reviewers will better position the Village of Mount Prospect within the region to capitalize on the market for single-family home redevelopment. William M. Schroeder Village of Mount Prospect Moum� Community Development Department ** CONFIDENTIAL MEMORANDUM ** TO: MICHAEL J. CASSADY, VILLAGE MANAGER NELLIE BECKNER, ASSISTANT TO THE VILLAGE MANAGER FROM: DIRECTOR OF BUILDING & INSPECTION SERVICES DATE: JANUARY 9, 2018 SUBJECT: Building Permit Fee Survey Introduction The Village held a series of meetings with developers, both commercial and residential. At the meetings, the discussion included permit fees in addition to review times and inspection process. Staff received feedback that the permits, specifically residential, were expensive and did not contain value from the plan review process. Developers at the meetings indicated that additional costs of permits does impact the financial feasibility of a project. The purpose of this memo is to provide a benchmark of where Mount Prospect fees are in comparison to other communities. Recommendations on fees are also included to ensure Mount Prospect remains competitive in the development environment. Research Staff surveyed ten surrounding communities including Arlington Heights, Palatine, Rolling Meadows, Elk Grove Village, Prospect Heights, Des Plaines, Buffalo Grove, Park Ridge, Northbrook, and Glenview. The survey results indicate that the average new single family home permit costs for our neighboring communities is 1.37% of the cost of construction in comparison to Mount Prospect's 1.6% cost of construction. In the fee comparison, Mount Prospect is $2,086 higher than the neighboring community average. New Single Family Home Permit Fee Survey Results Average Residential Permit Cost 1.37% $1.2µ313 Equivalent Square IFooita,go dost 40130 safe $3003, Lowost (A H) S.IF. Cost 4000 safe $1.1.9, H ighost (PaIIatiino) S.IF Cost 4WO safe $4048, Municipality New Single, Family Cost UdIffifees %Const.Cost Mount Prospect $14,398,00 12 1.610% Adlington Heights $4,76,7.10,0 Is, 10.53% IPAatline $17,528,00 110 1.93% RoUhng Meadows $20,834.00 22 2.32% Elk Grove $12,170.00 10 1.35% Prospect Heights $8,572.00 12 0. 55 % DeslNalines $13,820.00 3 1.54% Buffalo Grove $11,571.00 21, 1.29% Northbrook $11,770.00 14 1.31% G�Ienviievv $11,679.00 17 . 1.39% Based om4,000s� AH has a $9400 Impact IFee that goes and $}80JB00uaUueto ot�her taking bodies, not the ViUlage l ** Shed and Driveway Permit Fee Survey Results Basic permit costs for shed and driveway permits were included in the survey. Mount Prospect was lower than the neicihboring community average for these types ofpermits. Mount Prospect io$5O.00for sheds and approximately $75to$125for driveways. Munkipality Mount Prospect Arlington Heights Commercial Permit Fee Survey Results Staff also surveyed the commercial permit costs. Commercial permits are more complicated to compare and have more fee line items to 000u|ote, including storm water detention, construction nuisance abatement deposits, maintenance guarantees, and development guarantees. Municipality New 7',000 s,.f. cornmercial building ciDst # diff. fees, '%C�onst.C�os,t Mount Prospect $3 3, sso.,00 12 4.84% Arlington Heights, $5,975.00 15 1.43% Palatine $30,153.00 10 4.31% Rolling Meadows $20,495.00 20 2.93% Elk Grove $32,163.00 13 4.59% �Prospect Heights, $34,905.00 81 4.93% DesPlaines $15,220.00 6 2.17% Buffalo Grove $17,497.00 25 2.5,0% Northbrook $25,423.00 18, 4.20% Glenview $29,860.001 18, 4.27% Based mm7Q00s.f.and $7,00,1000 value 800amp service, 7,Qsprinklers, 2,Qplumbing fixtures Average Commercial Permit Cost 3.31@ $23,184 Equivalent Square Footage Cost 7,000s.f. $3.31 Lowest (AH) S.F. Cost 7000�� $1.43 H �i ghest � �P H)�S,F. Cost 7000s.f. $4.8�9 Recommendation: Ways to Increase Single Family Home Reinvestment The fee research indicates that Mount Prospect's new single family home permit costs are more expensive than neighboring communities. Tospur additional reinvestment inresidential property and ensure Mount Prospect is a leader in permit cost savings for the naginn, staff proposes the Recommendation: Commercial Fees The fee research indicates that the commercial permit fees are 1.53% higher than the neighboring communities. Process improvements already made, such as providing plan review services by Village Building staff (in-house), has already reduced the applicants' permit costs .25% to .5% by using our own staff reviews in lieu of outsourcing. It is staff's recommendation that we leave the commercial fees the same. Staff believes these fee modifications will better position the Village of Mount Prospect within the region to capitalize on the market for single-family home redevelopment and reinvestment. William M. Schroeder N 4 4) ) LL 4- 0 4) 0 4) 0 a 4) 4) CD (1) 0 r.L 0 L. a. 0 au E 0 8 as ap 8 8 8 ca a 21 as E 41 wo 41 x TL Ciu 00 c lot d w E ce U4 ,t w^r war r- Qao C. 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