Primary Department: County Engineer
Primary Department Head/Elected Official: Milton Rahman, PhD, P.E., PMP, CFM, County Engineer
Secondary Department: N/A
Secondary Department Head/Elected Official: N/A
Regular or Supplemental RCA: Regular RCA
Type of Request: Financial Authorization
Project ID (if applicable): N/A
Vendor/Entity Legal Name (if applicable):
MWBE Contracted Goal (if applicable): N/A
MWBE Current Participation (if applicable): N/A
Justification for 0% MWBE Participation Goal: N/A - Goal not applicable to request
Grant Indirect Costs Rate (if applicable): N/A
Justification for 0% Grant Indirect Costs Rate (if applicable): N/A - Not a grant item
Request Summary (Agenda Caption):
title
Request for approval of the Office of County Engineer permit fee schedule implementing cost recovery fees as directed by Commissioners Court on October 29, 2024.
end
Background and Discussion:
On October 29, 2024, Commissioners Court directed the Office of County Engineer to assess Harris County’s permitting fees and present an implementation plan. Harris County has not adjusted permit fees for over a decade.
Ernst & Young LLP conducted a comprehensive cost recovery assessment analyzing approximately 500 fee types. The study found current fees recover only 74% of actual direct and indirect costs associated with permit issuance. State statute allows fees to reflect true costs incurred by the County.
The proposed fee schedule implements a three-year phased approach to achieve 95% cost recovery: Year 1 (25% of increases), Year 2 (67%), and Year 3 (full implementation). This addresses industry concerns while establishing fiscal sustainability.
Following Court direction, the Office of County Engineer contracted with Ernst & Young LLP to perform a detailed cost recovery assessment for permit issuance to align fees optimally to reflect the true direct and indirect costs incurred by the County as allowed by state statute. The Office of County Engineer conducted extensive stakeholder engagement with the Greater Houston Builders Association, Houston Real Estate Council, and Houston Building Owners and Managers Association to ensure transparency and accountability. Based on stakeholder input, the Office of County Engineer has implemented process improvements including reviewer continuity, review efficiency commitments, staff training enhancements, and designated escalation pathways, and has agreed to specific performance benchmarks for inspection and plan review timelines. The proposed fee schedule includes a three-year phased implementation plan to achieve 95% cost recovery, increasing from the current 74% cost recovery rate to address the $4.8 million annual operational deficit while maintaining accountability to industry performance standards.
Expected Impact:
Implementation of the three-year phased approach increases cost recovery from 74% to 95%, reducing taxpayer subsidization while maintaining regional competitiveness.
Industry stakeholders benefit from committed performance improvements. The graduated implementation minimizes immediate financial impact while providing predictable adjustments.
The fee structure aligns with state statutory requirements and establishes sustainable operations, improved service quality through dedicated revenue, and enhanced stakeholder relationships through collaborative performance monitoring.
Alternative Options:
Do not increase the Fee
County Strategic Plan Goal: N/A
County Strategic Plan Objective: N/A
Justice/Safety Initiative (Goal 1): N/A
Infrastructure Initiative (Goal 2): N/A
Economy Initiative (Goal 3): N/A
Health Initiative (Goal 4): N/A
Climate/Resilience Initiative (Goal 5): N/A
Housing Initiative (Goal 6): N/A
Additional notes related to the Strategic Plan:
Prior Court Action (if any):
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Date |
Agenda Item # |
Action Taken |
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10/29/2024 |
139/24-6792 |
Request for approval of the expenditure of funds with Ernst & Young, LLP, in the amount of $720,000.00 for consulting services to perform an assessment of Harris County’s Permitting fees for the period of November 2024 - February 2025 in connection with an agreement approved by Commissioners Court on March 22, 2022 (Job No. 21-0317), MWDBE Contracted Goal: 12.81%. |
Location:
Address (if applicable):
Precinct(s): Countywide
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Anticipated Court Date: 9/9/2025
Anticipated Implementation Date (if different from Court date): 9/10/2025
Emergency/Disaster Recovery Note: Not an emergency, disaster, or ARPA related item
Contact(s) name, title, department: Pena Samuel, Chief Disaster Recovery, Safety, BOS Office of County Engineer.
Attachments (if applicable):