1j. Change Heating Permit Fee Schedule CITY T
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
' (612) 937-1900 • FAX (612) 937-5739
' MEMORANDUM
TO: Don Ashworth, City Manager
' FROM: Scott Harr , Acting Public Safety Director
DATE: August 3 , 1990
SUBJ : Heating Permit Fees
' The purpose of this memo is to outline our staff recommendation
for a revised heating permit fee schedule for energy consuming
equipment that is not defined as a "central heating plant" , yet
' falls within the realm of heat producing equipment .
BACKGROUND
While we do have a heating permit fee schedule , questions have
been raised regarding equipment that does generate heat , but does
not fall within the "central heating plant" definition set forth
' in the Uniform Mechanical Code . The concerns are that the
straight heating permit fees would be excessive for such equip-
ment . You had asked that we review this .
' ANALYSIS
' We have reviewed this matter and acknowledge that the Uniform
Mechanical Code definition of CENTRAL HEATING PLANT pertains pri-
marily to heating systems traditionally used to just supply heat
to a building. However, there is equipment used in industrial
' applications that does supply significant heat within a building,
but is not specifically designed to just provide heat. For
instance, industrial baking ovens or printing ink fume incinera-
tors supply enough heat so as to be taken into account in
designing the overall heating systems within a building, but are
not part of the "central heating plant ." To apply our regular
heating permit fee schedule to such applications can become quite
' costIy. Nonetheless , it is important that inspections be made by
our staff .
I
' Don Ashworth
Heating Permit Fees
Page 2
RECOMMENDATION
' Building Official Steve Kirchman has worked with Mechanical
Inspector Carl Barke to develop the attached INDUSTRIAL HEATING
EQUIPMENT FEE SCHEDULE. This is a schedule that appears workable
and, therefore, staff recommends that it be implemented.
Having recently met with City Attorney Roger Knutson, it was
' recommended that this matter be placed on the consent agenda for
Council action .
Manager's Recommendation: The typical fee schedule of 2% for a
I $1, 000 furnace is reasonable, i.e. $20. However, pollution
abatement equipment (reburners) can range from $50,000 to
$1,000, 000 - such producing a fee which is unreasonable. The
adjusted fee schedule has been developed in concert with our
' business community and they support such. Approval is recommended.
DWA ,)� I 8 7-90 �y"'
I
CITY OF CHANIHA S S EN
CARVER AND HENNEPIN COUNTIES , MINNESOTA
DATE: RESOLUTION NO: '
MOTION BY: SECONDED BY:
A RESOLUTION ADJUSTING HEATING PERMIT FEES FOR INDUSTRIAL HEATING
EQUIPMENT NOT DEFINED AS CENTRAL HEATING PLANT
WHEREAS , the Chanhassen City Council has set by resolution a '
heating permit fee schedule;
WHEREAS , the City does provide inspections of heat producing '
equipment that does not fall within the definition of CENTRAL
HEATING PLANT in the Uniform Mechanical Code ,
NOW , THEREFORE, BE IT RESOLVED by the City Council of the
City of Chanhassen as follows :
That the following fee schedule for heat producing equipment '
defined as Industrial Heating Equipment be adopted :
$50 . 000 to $250 , 000 $600 for the 1st 50 , 000 plus . 004
times the additional value .
$250 , 001 to $500 , 000 $1400 for the 1st =250 , 000 plus . 003
times the additional value .
$500 , 001 to $750 , 000 $2150 for the 1st $500 , 000 plus . 002
times the additional value.
$750, 001 and up $2650 for the 1st. $750 ,000 plus .001 I
times the additional value.
Industrial heating equipment fee schedule is applicable only on jobs
with a valuation of over $50 ,000 and with prior approval of Building I
Official .
ATTEST:
Don Ashworth, City Clerk/Manager Don Chmiel , Mayor '
YES NO ABSENT
CITY OF
CHANHASSEN
i .
f s 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937-1900 • FAX (612) 937-5739
1 MEMORANDUM
TO: Scott Harr , Assistant Public Safety Director
1 FROM: Steve A. Kirchman, Building Official
1 DATE: June 13 , 1990
SUBJ : Heating Permit Fees
1
Carl Barke and I have reviewed the heating permit fees . We are
l in agreement that the permit fees may be excessive in cases where
permits must be issued for energy consuming equipment that is not
defined as a central heating plant. However , many central
1 heating plants are installed with a value in excess of $50,000 .
Existing permit fees are adequate and fair for central heating
plants .
It would be impractical to set permit fees based on estimated
costs . Who makes the estimate -- the heating inspector , the
building official , the heating contractor , the building owner?
1 Whose estimate is correct in the event of a dispute? When the
job is complete does the city owe a refund if the estimate is too
high. Who pays the extra if the estimate is too low? Who deter-
1 mines the hourly rate for inspections? What about overhead --
long distance calls , typing, photocopies? How does one estimate
the cost for meetings and reinspections? Much of the time
expended by the inspection staff can be directly related to the
1 quality of the contractor , a variable that is impossible to esti -
mate.
1 I would like to suggest a separate fee schedule for energy con-
suming equipment defined as industrial heating equipment :
1
1
I
I
' Scott Harr
I
June 13 , 1990
Page 2 1
INDUSTRIAL HEATING EQUIPMENT FEE SCHEDULE
JOB VALUATION FEE I
$50,000 to $250 ,000 $600 for the 1st $50,000 plus $4 . 00
for each additional $1000 or fraction
thereof .
$250 , 001 to $500 ,000 $1400 for the 1st us 000 250 plus
$ , p $3 . 00
for each additional $1000 or fraction
thereof .
$500,001 to $750 , 000 $2150 for the 1st $500 ,000 plus $2 . 00
for each additional $1000 or fraction
thereof .
$750 ,001 and up $2650 for the 1st $750,000 P lus $1 . 00
for each additional $1000 or fraction
thereof .
Industrial heating equipment fee schedule is applicable only on
jobs with a valuation of over $50 ,000 and with prior approval of
Building Official . I
As an example, the permit fee for an incinerator valued at
$800 , 000 under the current fee schedule would be $6158. The fee
under the proposed revised schedule would be $2700 .
I
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