City leaders are hoping to drive the final nail into a lawsuit filed last year by area builders alleging that fees for city building permits are excessive.

The city’s attorneys have filed a motion to dismiss a lawsuit brought by Lawrence-based Apple Tree Homes, Edmondson Construction, Salb Construction and the Lawrence Home Builders Assn. that contends the city misuses fees collected as part of the building inspection process.

Specifically, the lawsuit alleges that the city collects more money than is necessary to run the building inspections program, and uses the excess to finance other city operations.

“We contend that the fees are legitimate charges to run the operations,” said Gerald Cooley, the city’s attorney. “It is not a profit center for us. That is not how it has been set up.”

But while city officials are seeking to have the case dismissed, home builders have filed motions to have the case expanded into a class action lawsuit.

If class action status is granted, it would open the possibility for anyone who has paid for a building permit since Jan. 1, 2002 – when a new fee structure was implemented – to receive a partial refund or monetary damages if the city were to be found guilty.

Cooley, though, is arguing that the entire case should be thrown out because the area home builders do not have the proper legal standing to file the suit. Cooley is arguing that building permit fees ultimately are paid for by homeowners through the purchase price of a house.

That means home builders have not been damaged by the fees, Cooley said.

Terrence Campbell, a Lawrence attorney who represents the home builders, said his clients would argue that the case should continue.

“We don’t believe the city’s position has any merit,” Campbell said.

The lawsuit, in addition to asking the city to change its building permit fee schedule, seeks monetary damages. The suit does not seek a specific dollar amount.

When the case was filed last year, Campbell indicated in a letter to city officials that he believed builders had been overcharged by at least $300,000. On Monday, Campbell said he was not prepared to say what he now thought was the amount the city should refund.

If the case is granted class-action status, the amount of money the city could be ordered to pay would grow because the number of defendants in the case would grow.

The city has collected approximately $2.9 million in building permit fees since 2000 and has issued a little more than 10,500 permits. Building permit fees are charged on a sliding scale, according to the cost of construction.

Judge Michael Malone is scheduled to hear arguments on the class action status and the dismissal motion Sept. 29.