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REQUEST FOR CITY COUNCIL ACTION DATE: 12/15/03 ITEM NO: XI. B. Department Approval: DPW/DM Item Description: "City Manager Approval Agenda Section: }Le,d~ '/:!~(;.lLtioJ CONSENT Adoption of Resolution establishing Building Permit and associated Permit Fees - effective in 2004 (PF3474) 1.0 REQUESTED ACTION: Council action is necessary in order to adopt a Resolution that will establish Building Permit and associated Community Development Permit Fees in concert with the new Chapter 901 that takes effect on January 1,2004. New Permits Works software will need these updated to work correctly. 2.0 Background 2.1 In August of2003 the Council approved a reorganization (and long overdue rewrite) of Chapter 901 of the City Code relating to Building Permits, effective January 2004. In this new ordinance, fees are set annually by City Council resolution. Planning and Zoning fees are also set by annual resolution. 2.2 The Community Development Department is an Enterprise Fund which means it is not supported through the property taxes or the General Fund but is self supported through fees for service. While fees have been declining in recent years, permits, inspections, and code compliance requests have remained stable or have increased. Permit fees generate approximately $800,000 annually (about 85% of the department budget) and support the life, safety, inspection, and planning programs and 11 employees. 2.3 In the Community Development Department the permits include, but are not limited to, contractor licenses and construction, zoning permits and planning fees, development fees, false alarm fees, specialized research and copying charges. These fees are periodically reviewed to determine whether any adjustments are warranted, based on the time necessary to process and inspect. Fees are established at a level that allows the City to recoup the cost of providing the service. The fees are checked against other similar sized cities to determine that Roseville is near the average (not the peak). Building Permit fees comprise the bulk of fees and are based upon the value of the construction. 2.4 It has been several years since most fees have been thoroughly reviewed. In 1998 building permits fees were updated (Uniform Building Code) but is has been 9~r 20 ye,lrs for some ofthe Roseville plumbing and mechanical permits. The League of Minnesota Cities has reviewed the permit fee structure used by most cities (from 1998) and has recommended a 6% increase in fees be adopted in 2004 to cover inflation and added costs of administering the new State Building Code. (The League also recommended that cities update their fee schedules at least once every three years.) 1