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Councilmember Elvig stated he thinks Ramsey's costs are in the middle of other communities <br /> and he would like to make it more affordable but not at a cost to the City. <br /> Acting Mayor Wise stated when a developer says the fees are high, the developer should be <br /> asked to provide proof. <br /> Councilmember Tossey noted Mayor Ramsey had requested, during the joint Planning <br /> Commission meeting, to see justification that the fees are in line with actual work being <br /> performed; however, he does not see that justification in this report. He asked how building <br /> permits are determined. <br /> Deputy City Administrator Nelson answered that building permit fees are a percentage of the <br /> value of the building. Ramsey follows the League's established fee schedule for building <br /> permits. <br /> Councilmember Tossey noted development provides a long lasting tax base. He stated he does <br /> not want an arbitrary number and wants fees in line with the work performed. <br /> Councilmember McGlone stated "legitimate" to him is whether it is necessary in the first place. <br /> He stated people pay their taxes and do not want to be "nickeled and dimed" in fees. He stated <br /> he does not have enough information today. Councilmember McGlone stated support for the <br /> City to have legitimate fees and be competitive. He noted that every organization can trim its <br /> budget more than once. <br /> Councilmember Strommen stated she is not sure the Council will get to the answer, or magic <br /> bullet, or exactly the correct fee. It may not be attainable. She suggested the Council take the <br /> best information available and make a decision, noting fees can be looked at again, if needed. <br /> Councilmember Strommen stated she had prefaced her earlier comment that 2007 was a different <br /> time and year but what residents ask for does not change. At some point, the Council needs to <br /> move on, take the best information, make a decision, and then reassess if new information <br /> becomes available. <br /> Councilmember Backous agreed the City needs to pass on costs to developers but he is not <br /> interested in a markup or profit. He suggested staff determine true costs for handling fees, noting <br /> the City should not be charging $200 per household if it only costs $25/household to process. <br /> Councilmember Backous noted that reduction alone will make Ramsey competitive, by having <br /> fees that are justifiable. <br /> City Administrator Ulrich explained builders had sued cities for charging high fees so the League <br /> got involved and created a schedule of fees. He clarified that cities cannot make a profit on fees <br /> charged and can only charge a reasonable cost of what it costs to process a permit. City <br /> Administrator Ulrich stated if the Council wants to encourage development it could determine if <br /> it wants to use a strategy of going below costs, or the League schedule, since development brings <br /> jobs and tax base. The Council can weigh those benefits. City Administrator Ulrich explained <br /> staff's recommendation is an attempt to not make a profit but to cover costs. <br /> City Council Work Session / November 22, 2011 <br /> Page 5 of 10 <br />