Agenda Packets - 2008/09/02 - Laserfiche WebLink

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Staff Report License fee for single family rental dwellings August 28, 2008 Page 3 of 4 During previous discussions about this, the City Council requested that license fees closely reflect the actual cost of delivering the service. In order to set this, the finance department determined that the actual hourly cost, including FICA, Medicare, workers comp insurance and fringe benefits rates, for the housing/code enforcement inspector will be $34.25 in 2009. When analyzing the scenario for single-family rental dwellings, city staff used the following parameters: Mounds View Single Family Rental Dwellings Scheduling 15 minutes = .25 Initial Inspection 30 minutes = .50 Report Writing 15 minutes = .25 Total 1.0 Hours @ $34.25 Follow Up Inspection 15 minutes = .25 Report Writing 15 minutes = .25 Total .50 @ $34.25 = $17.13 Inspection totals $51.38 It is reasonable to assess miscellaneous administrative costs into the above inspection total to take into account costs such as paper, postage, copy machine usage, and the time of the community development administrative assistant to process returned applications and enter into the database. Therefore, the actual cost to the City for inspecting a single-family rental unit is near $60. Using the following example on an apartment building with multiple rental dwellings yields the following: Multi Family Rental Dwellings a.Scheduling 15 minutes = .25 b. Initial Inspection 15 minutes per dwelling unit = .25 Cost per unit .25 x $34.25 = $8.56 c. Report Writing 15 minutes = .25 Total (a+b+c) .75 Hours @ $34.25 = $25.69 d. Follow Up Inspection 15 minutes = .25 e. Report Writing 15 minutes = .25 Total (d+e) .50 @ $34.25 = $17.13 Grand total $42.82 A housing maintenance inspection of a dwelling unit inside an apartment building takes about 15 minutes (.25 hour) or .25 x $34.25 = $8.56. The City now charges a license