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1k. Resolution Elminiating Plan Check Fees for Construction Projects Valued less than $3,000 CITYOF 1 . - G CHANHASSEN 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 1 (612) 937-1900 MEMORANDUM ° ,<"?+Inistra'IT. TO: Don Ashworth, City Manager 1 FROM: Jim Chaffee, Public Safety Director ; ._ -f3o uf; DATE: June 24 , 1988 ' SUBJ: Memo from Steve Kirchman on Plan Check Fees 1 I fully concur with Steve' s request to eliminate the plan check fee on jobs less than $3 ,000 in valuation. The object, as stated in Steve' s memo, would be to encourage people to get permits for 1 small jobs . By eliminating the plan check fee on jobs less than $3 ,000, we would show the citizens of Chanhassen that the City is not always out to increase fees . We would put an article in the newspaper indicating that we have eliminated plan check fees for $3 ,000 of 1 valuation or less and encourage people to come in for building permits . Just from a public relations standpoint, we could score many points . The net effect of the reduction, however, would be to encourage more people to get permits for small jobs and to allow for inspections to insure compliance with code in con- sideration of safety. 1 Recommendation It is staff' s recommendation to adopt a resolution eliminating the plan check fee on jobs less than $3 ,000 in valuation. 1 cc: Scott Harr, Assistant Public Safety Director Ron Julkowski, Building Official Steve Kirchman, Building Inspector 1 1 1 I ,r . , CITY OF ,, CHANHASSEN \ 1 ,AL./ 1 �,„ y, :_ • 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 ` (612) 937-1900 I MEMORANDUM II TO: Jim Chaffee, Public Safety Director FROM: Steve A. Kirchman, Building Inspector ‘cp . I DATE: June 14, 1988 SUBJ: Plan Check Fees II II With summer construction season in full swing, we are encoun- tering many complaints from homeowners about decks . Many decks are built by homeowners without permits . When we discover this or when we receive a report we investigate and require the builder to get a permit. Many first time home buyers are under the impression that the original permit for the house is good for II one year. Others mistakenly believe only buildings need building permits. We receive many complaints from do-it-yourselfers about the cost I of permits . We are required at present to charge the permit fee, plan check fee and state surcharge. The plan check fee which is 65% of the permit fee, is a particular target of complaints . II Plan checking on decks, roofing, basement finishing and other small jobs is a matter of only a few minutes. We believe that eliminating the plan check fee on jobs less than I $3000 .00 valuation would do a great deal toward encouraging more people to get permits for small jobs. We have consulted with inspections departments in other cities and most have a similar II policy. The $3000 .00 valuation should be large enough for most decks, roofing, and basement finishing, but too small for most additions. The inspections department places a value on construction based on information supplied by the Minnesota Division of Codes & Standards . State Building Code allows muni- cipalities to establish fees, ( SBC 1305 . 0800) . II Reduction of permit fees for small jobs should only be the first step in encouraging homeowner compliance with the codes . Annual springtime news releases stressing the importance of inspections II to insure a safe sound job should also be considered. The increase in permits should offset the revenue lost on plan check fees. The decks and additions would be safer, and citizens of II Chanhassen would be happier with the city and contractors. 1