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Steamboat Springs — The Steamboat Springs City Council gave tentative support Tuesday to raising building permit and plan check fees, but it agreed to postpone a final decision for at least several weeks.

Carl Dunham, of the Routt County Regional Building Department, is requesting a 58 percent hike in the fees to offset the department’s revenue decrease of about $800,000 this year. Although the council voted 5-2 to approve the fee increase on first reading, members said that decision was largely procedural — to keep the proposal in the pipeline, rather than deny or table it — and agreed to postpone a second and potentially final reading past Dec. 1, largely to allow time to assess action on the proposal by Routt County commissioners.

Dunham said he has yet to schedule a public hearing about the fee proposal with the commissioners. Council President Cari Hermacinski and Councilman Walter Magill voted against the initial approval.

“This is a terrible time to put out a rate increase,” Hermacinski said, citing the down economy and a struggling construction industry.

Dunham made his case to the City Council by laying out a projected three-year budget, with or without fee increases, and said the fee increase is necessary to provide adequate service levels and avoid additional staff cuts or loan requests. Dunham said the department is operating with a fee schedule comparable to 1985 rates and said the increase would make the fees comparable to about 1997 rates.

Councilman Jon Quinn cited a need to implement gradual, step increases, rather than a sudden, large increase when the department is “in crisis mode” — a phrase Dunham also used.

“I’d rather look at chopping it in half,” Quinn said about the proposed fee increase, citing potential impacts to middle-class families seeking home remodels.

Also Tuesday, the City Council gave initial support to an increase in Comcast’s payment to the city, from 3 percent to 4 percent. That increase would cost consumers about $6 more per year and generate about $45,000 for the city annually. That money could be used to maintain city right-of-ways and easements used by Comcast to provide cable service.

The council approved the increase, 4-3, with Walter Magill, Scott Myller and Hermacinski in opposition. The issue will return to the council as part of a proposed renewal of Comcast’s franchise agreement with the city.

The council unanimously approved the first reading of an ordinance allowing hens in some residential areas but changed the maximum number of allowable hens from seven to five.

The council also unanimously approved, on second and final reading, an ordinance establishing a process to advertise funds generated by fee-in-lieu payments, which developers pay the city instead of providing affordable housing units.

But council members tabled an ordinance that would allow developers an option of paying 50 percent of a required fee in lieu — as opposed to 100 percent — if that payment is accompanied by a voluntary real estate transfer fee on every transfer of every unit in the development.

Council members raised questions about the transfer fee’s legality and about quality standards for affordable units. The council voted 6-1 to table the ordinance until Dec. 15, with Magill opposing.

Tuesday’s final agenda item involved a proposed zoning change for two adjacent lots at Burgess Creek Road and Storm Meadows Drive, near the base of Steamboat Ski Area. Developer Ski Country appealed an Oct. 8 Steamboat Springs Planning Commission decision against the zoning change, which requests high-density residential development. The City Council overturned the Planning Commission, 4-2, to allow the higher-density residential use.

Several area residents spoke against the zoning change, citing potential traffic impacts on Burgess Creek Road and the zoning level’s cohesion with nearby open space and acreage under a conservation easement. Council members Jim Engelken and Meg Bentley opposed the zoning change, which Engelken said was “over-reaching” for the site.

Council member Kenny Reisman stepped down from the discussion and vote because he owns a condominium near the lots.

— To reach Mike Lawrence, call 871-4233 or e-mail mlawrence@steamboatpilot.com