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MEMORANDUM <br />DATE: May 16, 2011 <br />TO: City Council <br />FROM: Mike Morrison, City Manager <br />Roger Larson, Finance Director <br />ITEM: BUILDING PERMITS — MN STATUTE 326B.153 <br />At the April 4`' and April 26th work sessions, staff discussed with the City Council St. <br />Anthony's current fee structure for "Building Permits". To determine what other Cities <br />charge, staff conducted a survey of surrounding Metropolitan Cities. The data shows that <br />building permit fees vary and there is no consistency or a uniform method used for <br />establishing building permit fees. <br />A compact history of how fee schedules in Minnesota have developed is as follows: <br />1) In 1972, Minnesota adopted the "Uniform Building Code (UBC)" which <br />included a fee schedule. <br />a. It was updated every three years. <br />2) In 2003, the UBC decides that it would no longer include a fee schedule. <br />3) In 2003, the League of Minnesota Cities and AMM formed a committee and <br />developed a fee schedule based on using the UBC and applying the Consumer <br />Price Index. <br />a. St. Anthony adopted this fee schedule and is what is used today. <br />4) Since no one was updating the fee schedule, in 2009, the Minnesota <br />Department of Labor and Industry developed a fee schedule that is part <br />of State Statute 326B.153. <br />The attached Excel spreadsheet reviews the building permit fee costs for 9 communities: <br />1) Blaine, Lino Lakes & Fridley are using the 2003 UBC fee schedule. <br />2) Golden Valley and St. Anthony are using the updated 2003 League of <br />Minnesota Cities/AMM schedule. <br />3) New Brighton, Roseville and Columbia Heights appear to be using their own <br />fee schedule. <br />4) Arden Hills adopted the State Statute fee schedule in January 2011. <br />In discussing this issue and networking with other Finance Directors, their feedback <br />indicates they are either in the process of reviewing or have plans to review the building <br />permit fee schedule as defined in State Statute. <br />Staff Recommendation: <br />1) Council approves ordinance amendment #2011-03 changing the City Ordinance <br />Chapter 33.061 for Building Permit Fees as defined in Minnesota State Statute <br />32613.153. <br />2) Effective date 01/01/20]2. <br />EUO <br />