HomeMy WebLinkAboutItem 07Lnk�il�le,
Memorandum
City of Lakeville
Community & Economic Development
To: Mayor and City Council Members
Steven Mielke, City Administrator
From: David L. Olson, Community and Economic Development Director
Copy: Gene Abbott, Building Official
Date: April 19, 2013
Subject: Proposed Electrical Permit Fee Increases
The City has recently been informed by the current contract Electrical Inspector that he will be
terminating his contract with City effective June 1 of this year. City staff sent out a request
for proposals to retain a new contract electrical inspector on April 12`". One of the issues that
staff was planning to address with the 2014 Budget was the fact that Lakeville's current
electrical permit fees are some of the lowest in the State. It was an issue for the current
contract electrical inspector and will most certainly be an issue as the City attempts to attract
a new contract electrical inspector.
The current electrical permit fees that are most problematic in terms of being able to retain a
new contract electrical inspector are the permit fees for new single family homes, residential
additions and lower level finishes. As the attached survey of electrical permit fees for 13
suburban cities, the City of Faribault and the State of MN indicates, Lakeville's fees are lower
than other cities by 40 - 50%. The most common practice with cities is to adopt the State of
MN fee schedule or a higher fee.
Only one of the 13 cities have electrical permit fees for new single family homes lower than
the State fee ( Plymouth) and six cities have permit fees for new single family homes higher
than the State fee schedule (Apple Valley, Faribault, Rosemount, Burnsville, Woodbury, and
Hastings.).
There are basically three options to consider regarding electrical permit fees.
Maintain the existing fee structure. This option would likely result in difficulty
attracting a new contract electrical inspector.
2. Increase the fees to a level less than the current State Fee Schedule. While this may
make the City slightly more competitive from a fee standpoint, it is not likely to result
in any more construction activity.
3. Increase the fees for the most common residential electrical permit fees so that they
are consistent with the State Fee Schedule for electrical permits. This is the most
common approach taken by cities and eliminates confusion on electrical permit fees.
Staff is recommending that electrical permits for new single family dwellings, residential
additions and lower level finishes be increased to State fee schedule. Fees for commercial
and industrial projects along with apartment type projects would remain the same and will
still be lower than the State fee schedule. A copy of the proposed fee schedule for electrical
permits to be amended is attached. In 2012, the City collected a total of $102,123 in electrical
permit fees. Had the proposed fees been in effect in 2012, it would have resulted in an
additional $17,000 in electrical fee revenue or a 16.6% increase for a total of $119,123.
A public hearing to consider these fee increases has been scheduled for the May 6th City
Council meeting. The recommended effective date of the proposed electrical permit fee
increases is July 1, 2013. Staff will be present at the Work Session to answer any questions.
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F. Electrical Permits
Requirement State License from Board of Electricity.
Note: An owner who actually occupies or intends to occupy a single family
residence is exempt from the licensing requirement.
Residential - Minimum repairs and alterations ................... $ 39.50
Complete installation ............................. ..............................$ 90.00
Commercial - 1.5% of contract/valuation price up to $10,000 and 1.0% of
contract/valuation price above $10,000
Commercial minimum ........................... ..............................$ 39.50