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F2. Building and Fire Codes MemoPLANNING FOR THE FUTURE REPORT To: Imo'. 00 1 F, MOATANA JLJ Doug Russell, City Manager ��� Jeff Clawson, Building official Planning Department 201 V Avenue East Kalispell, MT 59901 Phone: (406) 758-7940 Fax: (406) 758-7739 www.kalis ell.conV lannin SUBJECT: 2012 International Building, Mechanical, Fuel Gas, Fire and Existing Building Codes, 2012 Uniform Plumbing Code and the revised Permit Fee Schedule - Hearing and Adoption MEETING DATE: February 17, 2015 BACKGROUND: The Kalispell Building Department, as do all other municipal building departments, implements standardized building codes prepared by national code committees. The International Building Codes Conu-nittee updates the codes every three years. The State of Montana has officially adopted the 2012 International Building, Mechanical, Fire, Energy Fuel Gas and Existing Building Codes, and the 2012 Uniform Plumbing Code effective December, 2014. These codes will replace the previously adopted 2009 family of codes. Because the State Building Codes Division has already adopted the 2012 family of codes, these codes are in force for all commercial and multi -family residential construction within the state of Montana. The City of Kalispell, in order to maintain its certification with the State Building Codes Bureau, is required to adopt the 2012 codes within 90 days of state adoption. once adopted in Kalispell, the Kalispell Building Department will utilize these codes for commercial and residential construction within the city. Specific changes within the new codes that will affect Kalispell more directly include: • Requiring fire sprinklers for hotels with S or more guest rooms and 5-plex or larger apartment buildings. This is more stringent than the 2009 codes which required sprinklers for 8 -plex or larger apartment units. • Requiring carbon -monoxide detectors in single family homes. • Significant changes to the energy code with regards to insulation and air changes in a home along with testing requirements. The cities of Kalispell, Whitefish, Columbia Falls and Po lson were all part of a round table discussion hosted by the Flathead Building Association to discuss the implementation of these new energy code changes. We will continue participating in various discussions to educate the contractors toward consistency throughout the different jurisdictions. • Changes will allow new building products and materials and indicate where they may be used. • Mechanical, fuel gas and plumbing code changes bring them more in lime with the requirements of the energy code. • Some significant changes in the 2012 residential code may reduce some of the prescriptive requirements for wall bracing. Minimum requirements for decks and how they are attached to a structure will end some of the confusion about what is and is not required when constructing a deck. The new codes should bring about more clarity within the International Code Council family of codes. over the past 6 months in preparation for adoption of these codes, our department has been notifying all contractors and permit holders advising them of the upcoming new code requirements. The Flathead Building Association also notified their members through their weekly E-mail newsletter. Along with the adoption of the 2012 code family, the Kalispell Building Department is recommending an increase in the permit fee schedule. The permit fee schedule was previously adjusted in 1997 and 2008. In 2008, residential permit fees for projects less than $200,000 were lowered and residential projects above $200,000 and commercial projects were increased in an attempt to create a revenue neutral increase. we are now suggesting an average increase of approximately 5%. Note that this increase will not be applied to projects less than $200,000 which typically include entry level homes, remodels and small additions. The purpose of the fee adjustment is two -fold. The department is trying to be fiscally responsible by taking small steps to adjust the program for inflationary costs. The consumer price index for western states has increased 20.6% since 2008. Secondly, to better serve the public, the department wi11 begin accepting credit cards for payment. Credit cards carry with them a service cost between 0. 3 % and 2.9% plus a transaction fee between $ 0.10 to $ 0. 3 0 per transaction. we will additionally have $13.99 in monthly service fees. we anticipate at least a third of our business will be by credit card. The building department operates as an enterprise fund and maintains a reserve fund of one year to accommodate capital expenditures (vehicle replacement) and economic swings. This reserve is monitored annually by the state. The Fiscal Year 2015 budget is budgeted to have an ending balance of $325,838, or 70% of the allowable reserve amount. A 5% increase in building permit revenue would generate $12,500, keeping us below the state limitation, yet providing the resources to allow upcoming capital expenditures and potential fluctuations in staffing if activity necessitates. RECOMMENDATION: It is recommended that city council receive public conm-tent and adopt the 2012 International Building, Mechanical, Fire, Energy, Fuel Gas and Existing Building Codes, and the 2012 Uniform Plumbing Code, along with the associated fee schedules. FISCAL EFFECTS: Adoption of the codes, and fee schedules, will have positive fiscal impacts to the city. ALTERNATIVES: Deny the request. Respectfully submitted, If Jeff 1 dVon Building Official ATTACHMENTS: Exhibit A —Proposed 2105 Building, Mechanical, &Plumbing permit fee schedules