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Memo 2nd Reading Ordinance 92-719 . . e CITY OF HOPKINS MEMORANDUM DATE: December 1, 1992 TO: Hopkins City Council FROM: George Magdal, Fire Marshal SUBJECT: Second reading, Ordinance 92-719, Fee for Fire Inspections I. Staff recommends approval of the second reading of Ordinance 92-719. II. Background Since the first reading of ordinance 92-719, we have met with the Hopkins Business Council. They voted to support this ordinance. I have also had a conversation with Bob King of Super Valu regarding this ordinance. He does not have any great concerns regarding the fees. A letter was mailed out to the apartment building owners describing the proposed ordinance. I have heard back from Steve Shuckman with Barrett Investment Company, and George Warner of The Minnesota Multi Housing Association. They feel that an apartment pays three times as much taxes per dwelling as a homeowner would, and they do not receive three times the services. Mr. Shuckman proposes that the initial and first re-inspection be at no charge. He suggests an exorbitant fee for visits after the first re-inspection. We currently are charging a straight $30 per hour for the inspections after the first re-inspection. In the last six months, there have only been two occasions where we've used this charge. I doubt that very many people would allow their violations to continue to the point where they would be charged high fees. Mr. Shuckman stated he may be present at the December 8 City Council meeting. . . e An article was placed in the Sailor Newspaper and Twin West Newsletter outlining the proposed fees. I received one telephone call from a business owner because of this article. He had no comments about the proposed fees. He simply wanted to know what type of violations we would be looking for so that he could correct them prior to his fire inspection. We will be working on a self inspection form to help businesses prepare for a fire inspection. A question that was raised at the first reading of the ordinance was regarding the legality of collecting the fee from either the owner or the occupant. I have discussed this verbiage with Jerre Miller. He said he feels it is appropriate because it does give us the option of charging the person who is getting the fire inspection whether or not they own the premises. It also allows us to inspect the common areas of the building that do not belong to a specific tenant and charge the owner for that. Another question that came up at the first reading was how we would collect these fees. I asked both the City Attorney and John Schedler, the Finance Director, about this. They said that if a bill was not paid that it could be placed against the property as a miscellaneous assessment. An unpaid invoice that had been originally been sent to a tenant would be redirected to the property owner. "\ Y o November 11, 1992 CI /:' ~ '" '" o P K \ ~ Fees for Fire Inspections CR Report 92-224 ..... ...,. Proposed Action staff recommends approval of the following motion: Move to accept the first readinq of Ordinance No 92-719 which authorizes charqinq fees for fire inspections. Overview Through analysis, the city has recognized fire inspections as an area where service is provided without fees. The city can recover part of the cost incurred by charging for this service. Last March the city council asked staff to work on implementing a fee schedule relating to fire inspections. The Hopkins Business Council was approached with this idea last spring and voted to support .the concept. staff anticipates undertaking additional public input measures prior to the second reading. . As an incentive to correct code violations quickly this ordinance adjusts the rate depending upon the inspection results. If there are no violations found during the initial inspection or corrections are made prior to the end of the first re-inspection, the business would pay 50% of the normal hourly rate. A business complying by the end of the second re-inspection would pay the normal hourly rate. A business not complying by the end of the second re-inspection would pay a fee of 150% of the normal hourly rate. Our current Ordinance does not allow fees to be charged for the first or second visit. Additional visits are currently charged at a flat rate. The rate that has been set by council Resolution is $30.00 per hour with a one hour minimum per visit. Primary Issues to Consider o Should businesses be responsible for the cost incurred doing fire inspections of their premises? o Is the additional cost this poses for a business operating in Hopkins reasonable? o Should the business who abuses the fire inspection process be penalized financially with the proposed sliding scale? o What additional public input measures does Staff propose? Supporting Information o March 5, 1992 Staff memo to City Council o Ordinance No.92-719 , ~ffy--i m:C~j(/) George Magd , Fire Marshal CR Report 92-224 Page 2 . Primary Issues to Consider. o Should Business be responsible for the cost incurred doing fire inspections of their premises? The benefactors of fire inspections include public visiting the business, owners, employees, and the city. People shopping and working in Hopkins expect to be safe. The hazards created are a direct result of business owners and managers activities. It seems appropriate for the business to pay for the inspections. o Is the additional cost this poses for a business operating in Hopkins reasonable? A small business that requires two visits by a Fire Inspector would be billed a total of $30.00. Unless they have some special hazards, it is likely they will not receive another Fire Inspection for three years. This breaks down to $10.00 per year. This does not seem excessive. . o Should the business who abuses the fire inspection process be penalized financially with the proposed sliding scale? Yes. There are many cases where the business owner doesn't feel it's necessary to be ready for the Fire Inspector on time. After all, the violation has been there for months. What's a few more weeks? We don't want to legally prosecute violators when we know they are going to fix the hazard. The problem is Fire Inspectors spend a good portion of their time going back again and again waiting for the violator to repair the hazard. The sliding scale will cause violators to be prompt, making the Fire Inspectors time more productive. o What additional public input measures does Staff propose? Due to the time which has elapsed since the Business Councils last review Staff proposes to undertake the following measures: Discussion at November 19th Business council Meeting . Article in Twinwest Newsletter Article in H.C.P. Newsletter Article in Hopkins Sailor Alternatives. e o Approve Staffs recommendation o Do not approve Staffs recommendation o continue matter for more information . e e HENNEPIN COUNTY, MINNESOTA ORDINANCE NO. 92-719 FEE FOR FIRE INSPECTIONS BE IT ORDAINED By the Council of the City of Hopkins that Section 905.13 of the Hopkins City Code be deleted in its entirety and replaced with the following: 905.13 Fee for Fire Inspections. A fee.shall be charged for fire inspections. This fee will not apply to complaints on specific hazards. Such fee shall be collected from either the owner or the occupant who gets the inspection. The fee shall be in an amount established by Council Resolution. If there are no violations found or the violations are corrected by the end of the first re-inspection the fee shall be 50% of the established rate. If the violations are corrected by the end of the second re-inspection the fee shall be 100% of the established rate. If the violations are not corrected by the end of the second re-inspection the fee shall be 150% of the established rate. First Reading: November lOth, 1992 Second Reading: December 8th, 1992 Date of PUblication: December 16th, 1992 Date Ordinance Takes Effect: January 5th, 1993 Mayor City Clerk