CR 99-203 1st Reading-Ordinance 99-835, Revision of License & Permit Fees
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November 10, 1999
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Council Report 99-203
FIRST READING - ORDINANCE 99-835,
REVISION OF LICENSE AND PERMIT FEES
Staff recommends approval of the following motion: Move to approve first readinq
of Ordinance 99-835, an ordinance amending section 1020. various inspection
fees
Adoption of this motion will approve a first reading of ordinance 99-835,
simplifying the current plumbing, mechanical and utility inspection fee structure
and update the inspection fees to better reflect current inspection costs.
Overview.
The inspection fees for plumbing, utility and mechanical systems are complex
and have not been reviewed for several years. In addition, we have found the
current fee structure overly complex for the permit issuance software being
installed in the Inspection Division.
The purpose of permit and inspection fees are to cover the cost of plan review,
permit issuance and construction inspections. Simplifying the fee structure will
allow staff to analyze actual costs more regularly and make appropriate
adjustments in a timely fashion.
Primary Issues to consider.
o Why change the fees
o How much will the fees increase or decrease
o What are other cities charging
SupportinQ Documents.
o Copy of Ordinance 99-835
~
Thomas Anderson
City Building Official
Primary Issues to consider.
o Why change the fees
The current fee structure is very complex and the fees do not reflect the
actual amount of work involved in plan review, permit issuance and
inspection. This statement is particularly true for utility and mechanical
fees. The fee schedules proposed are based on the cost of the work
being performed. This has proven itself as the best method of applying
permit fees that more closely reflect the amount of time required for
plan check, permit issuance and inspection.
The current utility fees are based on a flat inspection charge for water &
sewer, regardless of the number of inspections or complexity. They also
use a flat rate for water connection, sewer connection and tapping
which makes it difficult to determine if they are appropriate for the
actual work involved. An analysis of the current utility fees seems to
indicate on small jobs the fees about cover our costs but for the larger
projects they are grossly inadequate.
The current mechanical fee is based on valuation but there are
additional fees layered on the base for certain types of mechanical
installations. The mechanical installations that require layered fees do
not require additional inspection time and therefore cannot be justified.
We have received complaints on these layered fees from contractors
doing larger projects because they are higher than surrounding
communities.
The plumbing fees appear to be the most uniform and in line with actual
costs. These fees however are far more complex than they need to be
and some improvement is necessary on the larger higher value
projects.
o How much will the fees increase or decrease
UTILITY.
In the case of the utility fees, the most common work is the repair of
existing sewer and water services. These fees will remain about the
same.
In the case of a new home or small commercial structure where the
length of sewer run is typical, the fees will be the same, or slightly less,
than the current fees.
On large complex projects where the developer is installing the sewer
and water lines for multiple buildings the fees will increase substantially.
Under the current fee schedule the city is not covering the related
inspection costs on these large projects. The new fees will rectify this
situation. As an example the new Hopkins business center paid
$325.00 for a utility permit. The Inspection Division estimates over 100
hours have been spent on plan review and inspection to date. The new
fee schedule would require a $2,475.00 fee, which is more in line with
the workload involved.
MECHANICAL.
The most common mechanical work in the city is installation of
replacement furnaces, air conditioners and w~r heaters. The fees
should be about the same on this type of job.
On a new home or business the fees remain about the same if the
furnace is under 100,000BTU's. However, on larger furnaces the
current fees are higher than those proposed. This result is from the
layering of fees, under the current structure, for this specific type of
mechanical installation. The actual inspection time needed for these
larger furnaces do not warrant the layering.
For the very large projects the fees will come down significantly to
reflect the actual inspection time necessary. This again is a reflection of
the layered fees. Many larger projects have numerous rooftop furnaces
that each require a burner fee in addition to a mechanical inspection
fee. These burner fees cannot be justified in actual inspection time
necessary for their review and approval.
PLUMBING
The most common plumbing work is remodeling in existing homes and
businesses. The fees on these types of installations should remain
constant.
Medium size plumbing projects such as a new home or small business
will be reduced under the proposed fee schedule. In analyzing the time
spent on these projects, the new fees are more in line with actual city
costs.
On the very large projects the fees should increase. This again reflects
the actual time spent on these projects.
o What are other cities charging
The proposed fees are consistent with the surrounding communities.
Since there is no uniformity in the way fees are calculated among cities a
direct comparison is difficult. We have looked at both Minnetonka and St.
Louis Park which use fee tables similar to the one being proposed.
St. Louis Park uses a fee table for plumbing, utility and mechanical
inspections. There fees are slightly lower than the fee proposed. They
charge a minimum fee of $21.00 for all permits vs $25.00 and they use a
slightly lower percentage on projects over $50,000. The end result is a
minimal difference. Minnetonka uses a fee schedule that is almost
identical to the one proposed.
Alternatives.
1. Move to adopt Ordinance 99-835 for first reading.
2. Continue for more information.
3. Do nothing.
Staff recommends alternative one.
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
ORDINANCE 99-835
AN ORDINANCE Amending SECTION 1020.01, Plumbing and Inspection Fees, 1020.05,
Miscellaneous water utilities, 1020.07, Water utility, 1020.09, Gas or Process piping inspection,
1020.11, Gas Burner Installation, 1020.13, Mechanical Inspection, and 1020.15, Sewer utility
In order to simplify fees and match revenues to expenditures, The City Council of the City of Hopkins
does hereby ordain as follows:
Section One: Section 1020.01 Permit and Inspection fees shall be amended as follows:
1020.01. Permit and Inspection Fees.
1020.03. Plumbing Inspection
1 Plumbing Inspection Fees, Job per job
Cost labor and Materials
Job Cost Fee
less than $1000 $25.00
$1001-$5000 $25.00 plus 2.50% of
amount over $1000
$5001-$10,000 $125.00 plus 2.25% of
amount over $5000
$10,001-$25.000 $237.50 plus 2.0% of
amount over $10,000
$25,001-$50,000 $537.50 plus 1.75 %of
amount over $25,000
$50,001 and over $975.00 plus 1.5 % of
amount over $50,000
2 Plumbing Re-inspection Fee $35.00 per hour per inspection
4- B3se plumbing inspection foe ~ minimum foe
Addition::!1 Fixture Fees:
2 Inspection of e3ch fixture ~ per fixture
3 Rough in .w,.oo... per opening
Plumbing fixtures set in roughed in .w,.oo... per fixture
plumbing
5 Beer dispenser when connected to ~ ea6R
'tJ3ter supply
6 W::!ter treatment de'.'ice ~ ea6R
1- Catch b3sin ~ ea6R
8 W.:Jter heater ~ ea6R
9 Hydr3ulic valve ~ ea6R
4-0 Rain'l.'3ter leader ~ ea6R
.t4 Sump pump recieving tank ~ ea6R
t2 M3nholes, 3ro3 catch b3sins ~ ea6R
4-3 Ne'l.' ground run ~ ea6R
.w
Cesspools, septic t3nks, dr3in
fieWs
Plumbing reinspection f-ee
Blow off b3sin
4-5
.t.6
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$30 per hour
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Section 2: Section 1020.05, Miscellaneous water utility shall be amended as follows:
1020.05.
Miscellaneous water utility
1
Extension of 'N3terlines, 3ir
conditioning
sprinkler system, 3uto 'N3sher,
refriger3tor
Well
Well repair
Scavenger dumping (water)
2-1
3 2
4 3
&00-
125.00
50.00
25.00
Section 3: Section 1020.07, Water utility shall be amended as follows:
1020.07.
Water utility
1
Water Utility Inspection Fees, Job
Cost Labor and Materials
2
Water Utility Re-inspection Fee
4-
2
3
4
Water Sorvice Inspection Fee
'.^.later connection residential
'N3ter connection commerci31
'11J3ter disconnect (per v31'Je)
(not including r03d rep3ir)
Tapping inspection
Water turn-off, per valve
Water utility rates
(per 1 thousand gallons)
Water Well Processing fee
S
6 3
7-4
8-5
Job Cost
Less than $1000
$1001-$10,000
$10,000-$50,000
$50.000-$100,000
$100,000 and over
Fee
$30.00
$30.00 plus 2.50% of
amount over $1000
$255.00 plus 2.25% of
amount over $10,000
$1155.00 plus 2.0% of
amount over $50,000
$2155.00 plus 1.5 % of
amount over $100,000
$35.00 per hour
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a.MQ...
125.00
225.00
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35.00
1.10
5
per im:pection
per inspection
eaGR
eaGR
each
each
each
per job
per inspection
~p
billed (4/1/93)
Section 4: Sections t020.09, Gas or process piping inspection and 1020.11 Gas burner i
installation shall be deleted in their entirety:
1020.09. Gas or Process piping inspection
First three openings
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2
3
up to 2" di3meter
exceeding 2" di3meter
E3ch 3ddition31 opening
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2-Q.,..OO...
J.:..OO...
1020.11.
Gas 8urner Installation
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G3S burnerE:
o to 100,000 btu
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per burner
100,001 to 1,000,000 btu
1,000,001 to 10,000,000 btu
10,000,001 3nd marc btu
~
150.00
250.00
per burner
per burner
per burner
Section 5: Section 1020.13, Mechanical Inspection shall be deleted in its entirety:
Section 6: A new section 1020.13 shall read as follows:
1020.13 Mechanical Inspection including
Gas and Process piping
1 Mechanical Inspection Fees, Job per job
Cost Labor and Materials
Job Cost Fee
Less than $1000 $25.00
$1001-$5000 $25.00 plus 2.50% of
amount over $1000
$5001-$10,000 $125.00 plus 2.25% of
amount over $5000
$10,001-$25.000 $237.50 plus 2.0% of
amount over $10,000
$25,001-$50,000 $537.50 plus 1.75 %of
amount over $25,000
$50,001 and over $975.00 plus 1.5 % of
amount over $50,000
2 Plumbing Reinspection Fee $35.00 per hour per inspection
Section 7: Section 1020.15, Sewer utility shall be amended as follows:
1020.15.
Sewer utility
2 3
5-4
1
Sewer Utility Inspection Fees, Job
Cost Labor and Materials
Job Cost
Less than $1000
$1001-$10,000
$10,000-$50,000
$50.000-$100,000
$100,000 and over
Fee
$30.00
$30.00 plus 2.50% of
amount over $1000
$255.00 plus 2.25% of
amount over $10,000
$1155.00 plus 2.0% of
amount over $50,000
$2155.00 plus 1.5 % of
amount over $100,000
$35.00 per hour
~
150.00
2&.-00-
225.00
2.25
Section 8: The effective date of this ordinance shall be 21 days after publication.
2
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Water Utility Re-inspection Fee
Se'l:er inspection
Sanitary sewer connection
3
4
Storm SO'.Ner Connection
Sewer Disconnect
(not including r03d rep3ir)
Sewer utility rates
(per 1 thousand gallons)
First Reading of Ordinance 99-835
Second Reading of Ordinance 99-835
Date of Publication
Effective Date
ATTEST:
Terrry Obermaier, City Clerk
APPROVED AS TO FORM AND LEGALITY:
City Attorney Signature
November 16,1999
December
December
per job
per inspection
per inspection
per sac
billed
Charles D. Redepenning, Mayor
Date
Fee Comparisons
Utility Fees Description Estimated Cost Current fee collected Proposed Fee Estimated
Inspection
Time
Water Repair $1,000 Sewer Inspection Fee
$25.00
Total $25.00 Total $30.00 1 Hour
Sewer & Water $2,000 Sewer Inspection Fee
Repair $25.00
Water Inspection Fee
$25.00
Total $50.00 Total $55.00 1 % - Hour
New Home $2,800 -$4,500 Sewer Inspection Fee
$25.00
Water Inspection Fee
$25.00
Water Connection
Residential
$50.00
Water Tap Fee
$35.00
Sewer Tap Fee
$25.00
Total Total 1 % - 2-
$105.00 $75.00 - $117.5 Hours
New $6,000-8,000 Sewer Inspection Fee
Commercial $25.00
Water Inspection Fee
$25.00
Water Connection
Residential
$125.00
Water Tap Fee $35.00
Total 3 % - 4 hrs.
Total $205.00 $155.00 - $205.00
Large $100,000-$150,000 Sewer Inspection Fee
Commercial $25.00
(Assume 2
connections)
Water Inspection Fee
$25.00
Water Connection
Residential
$125.00
Water Tap Fee $35.00
Total 80 -100 Hrs
. Total $325.00 $2155.00-$2905.00
Fee Comparisons (Continued)
Mechanical Description Estimated Cost Current fee collected Proposed Fee Estimated
Fees Inspection
Time
New Furnace $2,500 - $6,500 Mechanical Fee Mechanical Fee
$50.00-$130.00 $62.50 - $158.75
Gas Piping $10.00
Gas BurnerFee$25.00-
$75.00
Total Total 2-3 Hours
$85.00-$215.00 $62.50 - $158.75
New Air $1,500 - $2,000 Mechanical Fee $30.00- Mechanical Fee
Conditioner $40.00 $37.50-$50.00
Total Total 1-2 Hours
$30.00-$40.00 $37.50-$50.00
New House $8,000-$11,000 Mechanical Fee $160.00- Mechanical Fee
$220.00 $192.50-$257.00
Gas Piping $13.00
Gas Burner Fee $25.00-
$75.00
Total Total 6-7 Hours
$198.00-$308.00 $192.50-$257.00
New Business $8,000-$11,000 Mechanical Fee $160.00- Mechanical Fee
$220.00 $192.50-$257.50
Gas Piping $19.00
Gas Burner Fee $75.00
Total Total 6-7 Hours
$254.00 -$314.00 $192.50-$257.50
Large $70,000-$100,000 Mechanical Fee Mechanical Fee
Commercial Assume 6 roof tops $1400.00-$2000.00 $1275.00-$1725.00
Gas Piping $41.00
Gas Burner Fee $450.00
Total Total 35-40 Hrs
$1891.00-$2491.00 $1275.00-$1725.00
Plumbing Fees
New Bathroom $1,500-$2,000 3 Plumbing Fixtures Plumbing Fees
$45.00 $37.50-$50.00
Total 2 Hours
Total $45.00 $37.50-$50.00
New Home $4,500-$7,000 9-21 Plumbing Fixtures
$135.00 - $315.00
2 Special Plumbing Fixt.
$50.00
Total 3-4 Hours
Total $185.00-$365.00 112.50-$170.00
Fee Comparisons (Continued)
Plumbing Fees Description Estimated Cost Current fee collected Proposed Fee Estimated
Inspection
Time
New $6,000-$7,500 21 Plumbing Fixtures Plumbing Fees
Commercial $315.00 $125.00-$181.25
2 Special Plumbing Fixt.
$50.00
Total $365.00 $147.50-$181.25 5-6 Hours
Large $35,000-$40,000 33Plumbing Fixtures
Commercial $495.00
3 Special Plumbing Fixt.
$50.00
Total $545.00 $712.50-$800.00 17 Hours