CR 11-008 Approve Resolution 2011-005 Revising City Fees• February 1, 2011
Proposed Action
APPROVE RESOLUTION 2011-005
REVISING CITY FEES
Council Report 2011-008
Staff recommends approval of the following motion: Move that the Hopkins City Council adopt
Resolution 2011-005 revising inspection fees.
Approval of this motion will revise a number of fees which the City charges for inspection
services.
Overview
As a general rule, the people benefiting from a particular service should bear the cost of
providing the service. Therefore the City charges fees to businesses or individuals who receive
licenses, permits, or services which are limited to that business or individual. Fees and service
charges should cover the costs involved in providing the program or service. Periodically, staff
reviews existing fees and makes recommendations for revisions.
The Plumbing and Mechanical fees have not been raised in 13 years. The majority of the
• mechanical and plumbing permits that are issued are for jobs in the $500 — $5,000 valuation
range. The current fee schedule does not cover the cost of administering these permits. The
proposed fees come closer to covering the City's costs while remaining affordable for individuals
who are doing these smaller projects. The larger valuation permits are getting a smaller increase
due to the fact the city comes closer to covering its cost as the project size and valuation
increase.
Re -inspection fee: Staff is also proposing an increase in the plumbing & mechanical
reinspection fees. Normally the cost of a scheduled plumbing or mechanical inspection is
covered by the original permit. Rarely an inspector may need to provide an additional inspection
due to the failure to comply with an ordered correction. This fee is proposed to increase from $35
to $47 per hour. This fee will now match the building reinspection fee.
Primary Issues to Consider
• What are the details of the fee revisions?
Supporting Documents
• Resolution 2011-005
z 4"
• es A. Genellie
Assistant City Manager
• Council Report 2011-008
Page 2
•
Analysis of the Issues
• What are the details of the fee revisions?
Current fees for plumbing & mechanical inspections:
Job Cost Fee
Less than $1,000 .........................$25.00
$1,001 - $5,000 ..........................$25.00 plus 2.50% of amount over $1,000
$5,001 - $10,000 ........................$125.00 plus 2.25% of amount over $5,000
$10,001 - $25,000 .......................$237.50 plus 2.00% 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 1.50% of amount over $50,000
Proposed fees for plumbing & mechanical inspections:
Job Cost Fee
Less than $1,000 .........................$25.00 plus 1%
$1,001 - $5,000 ..........................$35.03 plus 2.75% of amount over $1,000
$5,001 - $10,000 ........................$145.03 plus 2.50% of amount over $5,000
$10,001 - $25,000 .......................$245.02 plus 2.25% of amount over $10,000
$25,001 - $50,000........ ...............$582.52 plus 2.00% of amount over $25,000
$50,001 and over........................$1082.52 plus 1.75% of amount over $50,000
The following table shows the affect of the proposed fee increases on projects under $5,000
Alternatives
1. Approve Resolution 2011-005.
2. Do not approve Resolution 2011-005.
• Staff recommends Alternative #1.
2
Project
Current
Proposed
Cost
Fee
Fee
$
500
$
25.00
$ 30.00
$
1,000
$
25.00
$ 35.00
$
1,500
$
37.50
$ 48.78
$
2,000
$
50.00
$ 62.53
$
2,500
$
62.50
$ 76.28
$
3,000
$
75.00
$ 90.03
$
3,500
$
87.50
$ 103.78
$
4,000
$
100.00
$ 117.53
$
4,500
$
112.50
$ 131.28
Alternatives
1. Approve Resolution 2011-005.
2. Do not approve Resolution 2011-005.
• Staff recommends Alternative #1.
2
0 CITY OF HOPKINS
•
0
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2011-005
RESOLUTION INCREASING INSPECTION FEES
WHEREAS, the Hopkins City Code authorizes the City Council to set fees by
Resolution, and;
WHEREAS, the City needs to offset the cost of providing fee based services;
THEREFORE BE IT NOW RESOLVED that the following fees shall be changed
in order to better match the fee to the cost of providing the service:
Plumbing inspection fees, job cost, labor and materials, and
Mechanical inspection fees, job cost, labor and materials ......................Per job
Job Cost Fee
Less than $1,000 ................... $25.00 plus 1 %
$1,001 - $5,000 ....................$35.03 plus 2.75% of amount over $1,000
$5,001 - $10,000 ..................$145.03 plus 2.50% of amount over $5,000
$10,001 -$25,000 ................ $245.02 plus 2.25% of amount over $10,000
$25,001 -$50,000 .................$582.52 plus 2.00% of amount over $25,000
$50,001 and over..................$1082.52 plus 1.75% of amount over $50,000
Plumbing or Mechanical re -inspection fee .......... $47.00 per hour, per inspection
Adopted by the City Council of the City of Hopkins this 1St day of February 2011.
ATTEST:
Terry Obermaier, City Clerk
Eugene J. Maxwell, Mayor