Informational Meeting

MINUTES Informational Meeting Tuesday, June 1, 2021 at 4:00 PM Carnegie Town Hall, 235 West 10th St., Sioux Falls, SD 57104 1. Call To Order Council Members Present: Janet Brekke, Christine M. Erickson (Via telecom), Alex Jensen, Greg Neitzert, Marshall Selberg, Pat Starr Council Members Absent: Rick Kiley, Curt Soehl Council Vice Chair Alex Jensen called the meeting to order at 4 p.m. 2. Committee/Commission Reports A. Experience Sioux Falls - BID Board: Monday, May 24, 2021 (Council Member Brekke) Council Member Janet Brekke stated that she did not attend the meeting due to a schedule conflict. She provided the council with a copy of the agenda and supporting documents. 3. Councilor Remarks Council Member Marshall Selberg stated that he attended the ribbon cutting ceremony for the State Veterans Cemetery. The event was well attended with the Lieutenent Governor as the keynote speaker. Council Member Greg Neitzert stated that the South Dakota Legislature convened a Marijuana Summer Study group that met for the first time over the course of two days last week. He listened to the meeting in its entirety and provided a detailed overview of what was discussed. The meeting covered a broad range of topics to include perspectives from the drafter of IM26, testimony from healthcare professionals, and discussions about the current legal framework especially as it relates to the federal government. 4. Presentations A. MEP Fee Revision by Butch Warrington, Chief Building Official Presentation: Approximately 15 minutes followed by discussion Warrington explained anticipated benefits and efficiencies from the fee revisions to both the City and contractors. For the City they include: allowing fees to be paid  upfront opposed to invoicing; savings to invoicing, payment processing, and collections (1.5 FTE); and more efficient inspections. For contractors, they include: knowing the fees upfront; no need to reconcile invoices against fixture counts; and, more efficient inspections. The goal of the proposed fee structure is to base fees upon project valuation opposed to fixture counts. Customer Self Service is an online platform that allows homeowners and contractors to apply for and search permits and inspections. It was launched in March 2017, and has seen over $2.1M in transactions processed in 2020 alone. It does not allow for physical handling of money, but will facilitate the proposed process by enabling applicants to enter required information and see fees upfront. The last significant fee increases were 1998 for plumbing, 2001 for mechanical, and 2011 for electrical. Consistent with building permits, it will allow contractors to know fees upfront, fees will be consistent across all permits, fees will adjust with valuations, and inspectors will no longer need to count fixtures. Warrington described the current MEP Fee workflow along with the revised one, which eliminates three steps. Warrington walked the Council through several examples showing how project valuations translate to MEP fees. In general, fees amount to approximately 10% of the project cost. He also reviewed other fee structure changes for after-hours inspections, reinspections, additional plan reviews, and bond claims (all of which are seldomly used). The proposed fee structure was reviewed with the Homebuilders Association, Commerical Contractors and Developers, and the Mechanical, Electrical, and Plumbing Boards of Appeals. The proposed ordinance will be presented to the Council in June and July and have an effective date of January 1, 2022, if adopted. Discussion followed about the typical number and frequency of inspections and stakeholder feedback. 5. Public Comment There was none. 6. Adjournment Council Vice Chair Alex Jensen adjourned the meeting at 4:31 p.m. Thomas M. Greco, City Clerk