CR 99-170 1st Reading-Ordinance 99-830, Revision of License & Permit Fees
September 16, 1999
Council Report 99-170
FIRST READING - ORDINANCE 99-830,
REVISION OF LICENSE AND PERMIT FEES
Staff recommends approval of the following motion: Move to adoot ordinance 99-
830. an ordinance amendina section 1010.13, Food and Food Sales License Fees.
1010.27. 7. False Alarms and 1010.11.11. Mechanical Amusement Devices.
Adoption of the new fees at this time will allow the annual renewal forms to go out
with a simpler licensing fee structure.
Overview
For the past few years, revenues on food licenses have not covered the expense of
issuing them and the inspections involved. Business owners have questioned the
practice of issuing several licenses instead of one license. The new definitions and
schedule will simplify the process. For these reasons the food and health licenses
have been categorized and an appropriate license fee has been set for each
category. These fees have not been changed since 1994.
Primary Issues to Consider
. Why Categories
. How will food establishments be placed into a category
. Will revenues cover the cost of the program
. How much will licenses increase
. What are other Cities charging
. Charging for inspections
SUDoortina Documents
. Memo from Connie Kurtz
. Copy of Ordinance 99-830
'-
Council Report
Page 2
Primarv Issues to Consider
. Why Categories?
Health inspections and enforcement are based on the risk factor of the food
establishment. The risk factor is based on the probability of a food-born illness
outbreak. Working with raw meats, food preparation etc. is a higher risk factor
than, for instance, packaged food. The risk factors are rated from low to medium
to high. The higher the risk factor is, the more involved and time consuming the
inspections are. Also, as the risk factor goes up, the non-compliance issues
become more serious. The categories that are listed are based on the risk factor
and the size of the area.
. How will food establishments be placed into a category?
The food establishment will be placed in the category based on the highest risk
factor. If a convenience store has all packaged food, it will be in the lowest risk
category. If it has a small hot dog turner, or small snack stand, it will be placed in
the lowest risk factor. If the store has a deli, meat department, or bakery, it will be
placed in the high-risk category. The second determination would then be
determined by the size of the establishment.
. Will revenues cover the cost of the program?
The City will be entering into a contract with a new health inspector shortly. The
actual cost of this program will depend on the number of hours that are required for
inspections. The estimated cost of health inspections for the year 2000 is
approximately $18,000 to 20,000. The proposed fees should generate slightly
more than $18,000. Staff will review the program in the Fall of 2000 to determine
whether any fee adjustment is necessary.
. How much will licenses increase?
The range of increase is from $20.00 per year, representing a 16% increase to a
$75 increase. Caterers will increase from $85.00 to $160, representing a $188%
increase. The increase for a caterer license is justified because they require the
same type of inspection that a full family restaurant would. Some of the license
fees will decrease under this formula. In the past we have charged a low risk
establishment with only a few feet of packaged food the same as a small grocery
with a deli. Under this plan, that small store with a few packaged items would pay
Council Report
Page 3
a lower fee. The inspection time at that type of store is not as great. Also, the
store that carried multiple licenses will pay a lower overall fee. That store is simply
placed in the highest category determined by the highest risk factor. A
convenience store with a deli would not be purchasing two licenses, but the deli
would put it into a high-risk category. That fee would have an overall decrease of
$45 or a 21 % decrease.
Staff feels that overall; the fees would be paid in proportion to the amount of time
spent on inspections, and be more fairly assessed under the new structure.
. What are other Cities charging?
In comparison to the County and other Cities, Hopkins is charging very low fees for
these licenses. For drive-in restaurants, the range by other cities is from $250 to
$530 with a median of $343.12. Hopkins has been charging $180.
In sit-down restaurants, the range charged by other cities is from $165 to $560
with a median of $369.50. Hopkins has been charging from $120 to $275.
Caterers are charged from $100 to $560 in other cities with a median of $362.
Hopkins charges $85 for catering.
St. Louis Park charges $ 210 for an indoor swimming pool and $180 for an outdoor
swimming pool. The City of Hopkins charges $25 for a special purpose pool, if it is
indoors or out. We charge $90 for a full outdoor swimming pool or $135 for an
indoor pool.
. Charging for inspections.
One of the factors that drives up the cost of the health inspection program is re-
inspections. Businesses that are not in compliance and need multiple inspections
will be required to pay for those extra inspections.
Alternatives
1. Move to adopt Ordinance 99-830 for first reading.
2. Continue for more information.
3. Do nothing.
Staff recommends alternative one.
Crime Prevention Office
Memo
To: Terry Obennaier
From: Connie Kurtz
Date: September 15, 1999
Re: False alarm charges - increase
After discussing this issue with Captain Uddy. it was agreed that an increase in false alarm
charges is warranted.
We recommend the following false alarm fee schedule to be implemented
First four false alarms per calendar year remain free (current policy)
5th false alarm $50
6th false afarm $75
. 7th false alarm $100
All additional alarms will increase by $25 each time.
HISTORY:
In 1998 we responded to 836 false alarms during the calendar year January 1 - December
31, 1998. I billed $2050 in false alarms.
As of 8/31 /99, we have responded to 513 false alarms and have already billed $2850 in
false alarms.
Due to the significant increase in false alarms and the amount of time officers have to spend
on them, an increase in fees might better get the alarm subscriber's attention. Regardless
of how many times we speak with the subscriber regarding use of proper procedures and
training of employees, the problem continues to increase, especially with businesses.
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
ORDINANCE 99-830
AN ORDINANCE Amending SECTION 1010.13, FOOD AND FOOD SALES LICENSE FEES,
1010.27, 7, FALSE ALARMS, AND 1010.11, 11, MECHANICAL AMUSEMENT DEVICES
In order to comply with State Statutes and to match revenues to expenditures, The City
Council of the City of Hopkins does hereby ordain as follows:
Section 1: Section 1010.13, Food, and food sales shall be deleted in its entirety.
Section 2: A new section 1010.13 shall read as follows:
CATEGORY FACILITY
LICENSE FEE
level One: Level one contains low-risk foods such as carts, day care $ 7 5 .00
snacks, hazardous food vehicles, limited food (grocery and convenience
stores with mainly packaged food or other low risk foods), snack stands
and warehouses.
level Two, Tier One-Limited Facilities: Level two, Tier One contains $120.00
medium-risk facilities such as boats, congregate dining, day care, rental
kitchens, and test kitchens.
level Two, Tier Two-Small Menu and Limited Commercial Equipment: $140.00
Level Two, Tier Two contains medium-risk facilities that are higher use
facilities such as bed and breakfast kitchens, boarding house, catering
food vehicle, food manufacturer, on sale baked goods, pizza carry out or
order out, and short order snack stands.
$160.00
level Three, Tier One-Small Facility: Level Three, Tier One includes
high-risk establishments including cafeteria, caterer, commissaries,
complex cuisine, delis, family restaurant, fast food, small institutions, and
schools. (Grocery stores with delis, meats, or bakeries that are over
4500 square feet, restaurants that are less than 2,500 square feet, drive-
in restaurants with seating for less than 25 people)
level Three, Tier Two - Medium Facility: Level Three, Tier Two includes $260.00
high-risk establishments including banquet kitchens, cafeterias, caterers
commissaries, complex cuisine, family restaurant, and fast food.
(Grocery stores with delis, meats, or bakeries that are between 4501 and
8000 square feet, restaurants that are more than 2500 square feet, but
less than 5000 square feet)
level Three, Tier Three-large Facility: Level Three, Tier Three includes $310.00
high-risk facilities such those listed in Tier Two. (Grocery stores with
delis, meats, or bakeries that are over 8000 square feet and restaurants
that are over 5000 square feet)
Itinerant: Special Event Food Stands $ 5 0.00
Swimming Pools: Outdoor $110.00
Swimming Pools: Indoor $150.00
Swimming Pools: Special Purpose (hot tubs, whirlpools, kiddy and $ 5 0.00
wadding pools
Re-inspections: No charge for the first inspection and first follow-up
inspection. If orders are not complied with after the first follow-up
inspection the fee for the third inspection will be $50.00 and each
successive re-inspection will be the same cost as the immediate
preceding inspection plus $50.00 until all orders have been complied
with.
Section 3: Section 1010.27, 7 shall be amended as follows:
7 False Alarms, 130liee after 4 in one year 50.00 per alarm
7 False Alarms, police - after 4 in one year 5th/$50, 6th/$75, 7th/$1 00
All additional alarms will
increase by $25 each time.
Section 4: Section 1010: 11, 11 shall be amended as follows:
11 Mechanical amusement devices 00.00 per machine
11 Mechanical amusement devices 15.00/ location plus
1 5.00/machine
Section 5: Section 1010.15 shall be amended as follows:
1
Motels, hotels, and lodging house-per unit
S'vvimming pools:
Outdoor
Indoor
Speoial purpose
4:-GG 5.00
per year
2
a
4
90.00
126.00
25.00
per year
per year
per year
Section 6: The effective date of this ordinance shall be twenty days after publication.
First Reading of Ordinance 99-830
Second Reading Ordinance 99-830
Date of Publication
Effective Date
September 21, 1999
October 5, 1999
October 13, 1999
November 2, 1999
Charles D. Redepenning, Mayor
ATTEST:
Terry Obermaier, City Clerk
APPROVED AS TO FORM AND LEGALITY:
City Attorney Signature
Date