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Home My WebLink About2014-03-05 PACKET 04.J.REQUEST OF CITY COUNCIL ACTION COUNCIL MEETING DATE 3/5/14 PREPARED BY: Community Development ORIGINATING DEPARTMENT AGENDA ITEM # r Jennifer Levitt STAFF AUTHOR **************�******************�************** COUNCIL ACTION REQUEST Consider approving a fee increase to 2 percent of the constructed value for fire suppression system permits. STAFF RECOMMENDATION Adopt the ordinance amending the City Fee schedule to increase the permit fee for fire suppression systems to 2 percent of the constructed value. BUDGET IMPLICATION $N/A $N/A N/A BUDGETED AMOUNT ACTUAL AMOUNT FUNDING SOURCE ADVISORY COMMISSION ACTION ❑ PLANNING ❑ PUBLIC SAFETY ❑ PUBLIC WORKS ❑ PARKS AND RECREATION ❑ HUMAN SERVICES/RIGHTS ❑ ECONOMIC DEV. AUTHORITY ❑ SUPPORTING DOCUMENTS DATE REVIEWED ❑ ❑ ❑ ❑ ❑ ❑ ❑ � MEMO/LETTER: Memo from Bob LaBrosse dated 2/27/14 ❑ RESOLUTION: � ORDINANCE: Draft ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: ❑ OTHER: ADMINISTRATOR'S COMMENTS APPROVED ❑ ❑ ❑ ❑ ❑ ❑ ❑ DENIED ❑ ❑ ❑ ❑ ❑ ❑ ❑ � � 4 � �� City A ministrator Date � **********�*******��**********�*��***** **** COUNCIL ACTION TAKEN: ❑ APPROVED ❑ DENIED ❑ OTHER Cottage � Grove � Pride and PCOSPerity Meet To: Mayor and Members of the City Council Ryan Schroeder, City Administrator From: Bob LaBrosse, Building Official Date: February 27, 2014 Subject: Fire Suppression and Fire Alarm Plan Fee Change Background Since 2010, Cottage Grove has contracted with a Fire Suppression Consultant to perform Fire Suppression and Fire Alarm System reviews and inspections. For example, the recent Wal- Mart project fire alarm and fire suppression permits totaled $14,532.00 with City permit costs at $3,425.00, State surcharge costs at $171.25, and Consultant Plan Review and inspections totaling $10,935.75. This equates to plan review and inspection services of 3.28 percent. The high cost of this outsourced work caused the City to terminate the contract with our Fire Sup- pression consultant and develop a modification to our plan review and inspection system with State Building Code and Standards in an effort to lower costs for businesses building and locating in the community. Senior Code Section Chief Doug Nord with State Building Code and Standards agrees with the following plan for providing Fire Suppression and Fire Alarm System reviews: All Fire Suppression and relative components for Fire Sprinkler systems submitted for state projects, including public schools and state universities, with a construction value of more than $100,000.00; hospitals, senior living facilities; state correctional facilities; and modifications to public buildings with state or state agency funding as defined in State Statute section 326B.106, shall be reviewed by the State Plan Review Division. All other Fire Suppression plans shall be submitted to the City for processing and for- warded to Dan Kaiser, Fire Protection Services, Inc., for review and approval with the permit being issued by the City. All Fire Alarm plans shall be submitted to the City for processing and forwarded to John Swanson, Fire Life Safety Consulting, for review and approval with the permit being issued by the City. Discussion The City would continue to collect the fees and issue permits with the new plan; however, the current fee schedule indicates that permit fees for Fire Suppression Systems are calculated based on 1 percent of the construction value or $100 minimum, which needs to be modified to reflect a minimum of 2 percent or $100 minimum to cover plan review and processing costs for Mayor and Members of the City Council and Ryan Schroeder Fire Suppression/Fire Alarm Plan Fee Change February 27, 2014 Page 2 the new consulting service process. This revised system would provide a considerable fi- nancial reduction to future Fire Suppression and Fire Alarm companies considering work in Cottage Grove allow the City to continue issuing permits and collecting the revenue, plus allow our Fire Marshal to conduct all site inspections. The 1 percent increase will allow for revenue sources to cover in-house staff review and coordination. In the end, the applicant will still see significant savings and improved customer service. The Fire Alarm systems permit would be calculated at 1 percent of the construction value, $100 minimum, plus plan review fees incurred. There is no change to this fee proposed. Recommendation It is recommended that the Council approve the revised fee to increase the permit fee for Fire Suppressions Systems to 2 percent of the constructed value. ORDINANCE NO. XXX AN ORDINANCE FOR THE CITY OF COTTAGE GROVE, MINNESOTA, AMENDING CITY FEES TO CHANGE FIRE SUPPRESSION SYSTEM PERMIT FEES The City Council of the City of Cottage Grove, Washington County, Minnesota, does hereby ordain as follows: SECTION 1. AMENDMENT. The official fee schedule for the City of Cottage Grove shall be amended by amending the following fees: Commercial, Fire Suppression/Protection � 2% of contract price; $100.00 minimum Commercial, Fire Protection/Alarm 1% of construction value, $100 minimum, plus plan review fees incurred SECTION 3. EFFECTIVE DATE This ordinance shall be in full force and effect from and after its passage and publication according to law. Passed this 5th day of March 2014. Myron Bailey, Mayor Attest: Caron M. Stransky, City Clerk Published in the South Washington County Bulletin on [Date]: