City Council Agenda and Packet 2014 01 07

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City Council Meeting Minutes December 17, 2013 Page 20 of 24 These fees will be adjusted mid -year based on Council's review of recommendations from the Utility Rate Task Force. He explained Ordinance 1603, Series 2011 authorized the City Manager to set fees and charges not otherwise set by the City Council. The fees set by the City Manager include such things as fees for photo copies, maps and documents, development application reviews, recreation classes, rental rates for various facilities, and charges for cemetery plots and services. The City Manager sets these fees and charges to recover costs and defray expenses and not as a mechanism for raising revenue. He addressed a memo submitted by the Planning Division relative to the 2014 Planning and Building fee structure. He felt it would be appropriate to discuss those suggested fees at a future study session where Council can give staff direction on how much cost should staff strive to recover. COUNCIL COMMENT Council member Loo reported on a complaint about a permit fee for the installation of a hot water heater. Planning Director Russ noted regarding that complaint there was not an actual application filed; the person was merely curious and was given a fee amount, which included use tax over the phone. Based on the value of the water heater, the permit would have been $82.00 permit cost, plus a $10.00 use tax. He explained the memo addresses single use permits. Currently a single use permit is based on valuation. This fee structure is used by neighboring communities. Permit fees based on value was adopted through the International Building Code in the late 1990's. Planning Director Russ's memo recommended a minimum $82.00 for over the counter permits ($47.00 Inspection Fee /$35.00 Administrative Fee). This is based on the inspection fee and the planning department review. Some inspections are less than an hour and some inspections take longer, but there are no re- inspection fees. Council member Jasiak supported the minimum fee, but felt a fee based on the cost of the valuation was a penalty. She stated a homeowner may choose to install a cheaper hot water heater because of the cost of the permit. She favored a fair process, which would not encourage a lower value item. Planning Director Russ agreed, but noted the City is concerned about safe installation. The City will still collect the valuation for use tax, but the building permit fees will not change and there will be a single minimum charge for residential. Mayor Pro Tem Dalton addressed a single permit fee and suggested there be a lengthy discussion at a study session, which would include a whole range of permit fees. Council member Jasiak agreed and felt it would protect future homeowners and encourage people to come forward. Council member Stolzmann clarified the trash collection fee was approved earlier this year and is not an additional fee. With respect to the water fees, she forewarned 49