Agenda - Council - 01/10/2012 - Laserfiche WebLink

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