HomeMy WebLinkAbout20070205 - VI-07MEMO vI-'
TO: Honorable Mayor and City Council members
FROM: Charlene A. Stark, Finance Director
RE: Accounts Receivable Write-off
DATE: January 31, 2007
On January 16, this item was held over for additional information from staff. Please see
the attached memo from Tom Bakken Dept of Safety Building Official.
The City Council is asked to authorize writing off the following accounts receivable
accounts:
$2,614.70 Greg Jablonski-Plan review fees
Council Action:
Authorized the writing off of this account in the total amount of $2,614.70
January 17, 2007
Re: Greg J Homes Plan Review Fees
Dear Council Members,
It has been brought to my attention that there is a need for an explanation to my decision
to dismiss plan review fees billed to Greg J Homes. After meeting twice with Greg Jablonski and
three members of his staff we discussed the reason for the fees. The Permit Fee Schedule states
that plan reviews that are submitted for review and have been reviewed by staff are to be paid per
the Fee Schedule adopted by the jurisdiction even if the buildings are not built. This rate is 65%
of the Permit Fee. The Minnesota State Building Code has a provision for `plan review fees for
similar plans' and are charged 25% of the Permit Fee, a reduced rate from other plan review
charges. The similaz plan is based on a master plan for which the municipality has issued a permit
within the last 12 months.
These town homes for which the plan reviews were performed were never built. Greg
used the argument that this was because of the 6 month moratorium on multi unit dwellings that
these were not built. l provided proof that the moratorium was not in effect at this time. During
our meetings we went over their past records of plan review fees charged to Greg J Homes since
early 2005. They said there were some `similar plans' charged the full rate that could have been
charged the reduced rate. Greg figures he was over charged $5,690.56. l expressed to Greg
Jablonski and staff that when they submit plans they need to identify to staff that the plans they
are submitting are similar plans to a Master Plan already on file and the reduced rate will apply if
the similar plans meet the criteria as stated by State Code. Some were submitted that way, others
were not. With four different plan reviewers and 6 different staff members trained to accept
permit applications and plans we need to mark the plans `Similar as Master Plan' when received.
I told Greg that we have not had this problem with any other builder, that all have informed the
staff member receiving the permit of the plans being similar to a master on file. Greg stated that
he wanted to look at going back to the records and checking out the possibility of refunds. I stated
to Greg that I would not entertain the idea of refunds that the major part of the blame is with his
staffs failure to notify our deparhnent of their intentions. They knew enough to submit some plans
as `similar', while others were not.
I told Greg Jablonski I would dismiss the plan review fees of $2,614.70 for the buildings
not built instead of entertaining refunds. The man power hours of going thru old plans and permit
records I do not feel are warranted. I feel my decision is an acceptable solution to this while
showing a `Good Faith' gesture towards a willingness to work with the contractor. The working
relationship with Greg J Homes has been relatively smooth with a willingness to cooperate during
the nearly seven years that I have worked with the Building Department in Hastings. This
ultimately played a part in my decision.
Sincerely,
Tom Bakken
Building Official
