5.7. SR 01-12-2004Item 5.7.
City
MEMORANDUM
TO:
Mayor and City Council
FROM:
DATE:
Stephen Rohlf, Building and Environmental Administrator
January 12, 2004
SUBJECT:
Ordinance Amendment, Chapter 30, Article II, Division 3, titled
Gasfitters and Gas or Fuel Installations OA 04-?? and
Ordinance Amendment, 2004 Master Fee Schedule
Ordinance Amendment Regarding Gas Fitter's License and Bond
In the past, the State of Minnesota did not have licensing and bonding recluirements for
mechanical contractors/gas fitters like they do for other trades, such as plumbing.
Therefore, the city felt it prudent to recluire contractors engaging in gas piping within the city
limits to have a City of Elk River Gas Fitter License. The city requires gas fitters to pass a
competency test, or have proof of competency from another community, and post a $2,000
bond in favor of the city to obtain its Gas Fitters License. The fee is $35 and the city issues
well over a hundred of these licenses each year.
In 2003, the State of Minnesota started requiring that all mechanical contractors, which
include gas fitters, have a $25,000 State Bond. There is also a push to require a state license
to be a mechanical contractor, which we believe xvill be instituted in the next couple of years.
The Building and Environmental Department is recommending the elimination of
Chapter 30, Article II, Division 3, titled "Gas Fitters and Gas or Other Fuel
Installations", of the City of Elk River Code of Ordinances in its entirety (.cee at/ached
Oral/ha,ce/tmendmen/). With the state's bonding requirement, the city may no longer require a
bond. The elimination of the above referenced Division of City Code does not eliminate
applicable codes for mechanical/gas fitting work or the need for a permit. The State
Bnildmg Code, which the city adopted by reference, includes the State Mechanical Code and
the requirement for permits. Lastly, it is possible that the cit3, may fred itself xvith exposure
to liability by issuing gas fitter licenses.
Ordinance Amendment Regarding Gas Permits and Fees
The city currently requires a Mechanical Penrfit and a separate Gas Permit for gas-fueled
appliances. The rationale for requiring a separate gas permit is to track who is perfornm~g
the gas xvork. Mechanical permits are based on the valuation of the ~vork performed, xvhich
supposedly includes the gas piping. It could be argued the ciD' was charging twice for the
same work. The Building and Environmental Department is recommending "Gas
Permits" be eliminated. Gas piping will be covered under and tracked on Mechanical
Permits. The elimination of the Gas Permit ~vill help streamline the Departments process
for staff and the public.
The Building and Environmental Department is recommending the elimination of
Gas Permit Fees and reference to Gas Fitter's Licenses in the City of Elk River's 2004
Master Fee Schedule (see at/ached Ordinance ~mendment). This will result in a reduction of
revenue for the citT. In 2003 the city received approximately $37,000 in fees for gas permits.
The changes outlined could eliminate a good portion of this revenue. It should be noted
that 2003 was an exceptional year for the amount of fees brought in through gas permits.
Staff is making this recommendation to eliminate double charging or unequally charging for
work that involves gas fitting. For example, if the contactor who installs a gas f~replace also
installs the gas piping to it, she/he needs only one permit at a fee of $45. If two separate
contractors do the work, one installs the fireplace and another pipes the gas to it, they both
need a $45 permit.
ORDINANCE 04 -
CITY OF ELK RIVER
AN ORDINANCE OF THE CITY OF ELK RIVER ABOLISHING
ARTICLE II, DIVISION 3, OF CHAPTER 30, "LAND DEVELOPMENT
REGULATIONS" OF THE CITY CODE OF ORDINANCES
The City Council of the City of Elk River does hereby ordain as follows:
Section 1. Article II, Division 3 of Chapter 30, "Gas Fitters and Gas or Other Fuel
Installations" shall be abolished.
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Section 2. That this ordinance change shall take effect upon publication as provided by
law.
Passed and adopted by the City Council of the City of Elk River this 12TM day of January, 2004.
Attest:
Stephanie I~inzing
Mayor
Joan Schmidt
City Clerk
CITY OF ELK RIVER
AN ORDINANCE OF THE CITY OF ELK RIVER AMENDING 2004 MASTER FEE SCHEDULE
EXHIBITS"A" AND "C" AND ABOLISHING EXHIBIT "B" OF THE CITY CODE OF
ORDINANCES
The City Council of the City of Elk River does hereby ordain as follows:
Section 1. The 2004 Master Fee Schedule Exhibit A shall be amended by abolishing "Gas
Fitting Permit Fee" and "Gas Fitter's License Fee".
Section 2. The 2004 Master Fee Schedule Exhibit B (Fuel-Gas Piping Permit Fees) shall
be abolished in its entirety.
.Section 3.
The 2004 Master Fee Schedule Exhibit C shah be amended to read as follows:
EXHIBIT
CITY OF ELK RIVER
FEES REQUIRED
The Chief Building Inspector, before issuing any permit for [~e insta!!~tion, alteration, or repair of
any heating, ventilation, and air conditioning appliance items ~iS Piing conncction; or appendages,
shall require the payment by the applicant for such permit of fees in the amount herein.
MINIMUM FEE
In no case shall the fee charged for an}, permit issued by the Chief Building Inspector be less than
fifteen dollars ($15.00).
PERMIT FEE FOR HEATING, VENTILATION AND AIR CONDITIONING
APPIJANCE ITEMS, CONNECTIONS OR APPENDAGES
For any permit for the installation, alteration or repair of the above-referenced items, the fee shall be
one and one-half percent (1.5%) of the valuation of the work or as calculated under the Uniform
Mechanical Code, whichever is greater.
Section 4. That this ordinance shah take effect upon puNication as provided by laxv.
Passed and adopted by the City Council of the City of Elk River this 12TM day of January, 2004.
Attest:
Stephanie Iadinzing
Mayor
Joan Schmidt
City Clerk
CITY c~,~ T~T T~ l~T~r~,o