Agenda - Council Work Session - 08/28/2012

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CC Work Session 2. 2. Meeting Date: 08/28/2012 By: Tim Gladhill, Community Development Title: Review Building Permit Rates and Fees Background: As part of the 2012 Strategic Planning Session, the City Council identified a review of required Building Permits. Specifically, a review of siding, windows, and roofing permits was requested and whether or not the City could eliminate these permit. The following is an analysis of Building Permits and other related permits that are required by the City. This topic report is intended to provide a general overview of the process and fee schedule for Building Permits and identify specific areas for additional review. Notification: No notification required. Observations: Assumptions: The City is required to administer the Minnesota State Building Code (the "Code"). Generally speaking, many of the fees were originally based off the 1997 Uniform Building Code (UBC), then refreshed in approximately 2003 with the League of Minnesota Cities recommended Fee Schedule. It is important to note that the League of Minnesota Cities (LMC) recommends that cities do not simply rely on boilerplate fee schedules, and that a regular analysis of expenses related to the administration of the Code. In fact, it appears that the League of Minnesota Cities no longer publishes a sample fee chart. The City establishes the Rates and Fees annually by ordinance after an expense review. Generally speaking, the current hourly rate factored for rates and fees is $47 per hour. In comparison, the City is charged $50 per hour by Inspectron, Inc. for plan review, inspection, and Building Official Services. In addition, the City also incurs several other costs associated with the administering the Code. These associated costs include information technology (IT), human resources, insurance, vehicle maintenance, fuel costs, utilities, etc. These costs often require the review of the cost on a pro -rated basis. The Building Permit Rates and Fees have generally remained flat, with no increase since 2008. The last major revisions were approved in 2003 and 2004. Windows, Siding, and Roofing The question was raised as to whether the City is required to require a Building Permit for windows, siding, and roofing. The short answer, according to the Building Official, is Building Permits are required for this type of work. According to the Code, permits are required for the following activities: • Construct, enlarge, alter, repair, move, demolish or change occupancy • Erect, install, enlarge, alter, repair, remove, convert, or replace any gas, mechanical, electrical, plumbing system, or other equipment • Installation of which required by Code Chapter 1300 of the Code lists activities that are allowed to be exempt from permit requirements: • 1 story detached accessory structures that do not exceed 120 sq. ft. • Fences not over six (6) feet • Oil derricks • Retaining walls that are not over four (4) feet