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• Public Works/Engineering — There was a $5 increase to right-of-way, right-of-way small cell <br />wireless facilities and grading and erosion permit fees. Call -out fees related to weekdays and <br />weekends were clarified. <br />• Utility Hookup Charges — Re -inspection fees that include weekdays and weekends were <br />clarified. The fee for a I" water meter was increased from $590 to $650 and the hydrant <br />rental fee was increased from $32 to $33. <br />• Miscellaneous/Retail Activities — An Event Center was added to an existing Business <br />Licensing category for Amusement Facilities that had an associated fee of $105, and the <br />category was aptly renamed to Amusement and Event Facilities. In addition, the Adult <br />Cannabis Retail Sales Registration fees (initial and renewal) were created. The reference to <br />Mobile Food Unit/Food Truck licensing for vendors was removed. <br />• Miscellaneous Fees/Permits — An Adult Cannabis Event Permit Fee of $100 per event and <br />Illegal Adult Cannabis Sales violation fees were established. In addition, the tobacco violation <br />fees were increased. Note the Council had also previously capped the number of tobacco <br />licenses at six (6). We currently have five (5) licenses, so there is one more available. <br />• Utility Use Charges — Increases in 2025 were as follows: 9% sanitary sewer rates and 3% <br />surface water rates. No changes to water fees were made. <br />The information below outlines changes recommended to the fee schedule for 2026. Proposed <br />changes to the fee schedule are noted in red print on the attached draft 2026 Fee Schedule <br />(Attachment A). Explanations for these proposed changes are provided below. <br />Buildinz Construction (Sec. II) <br />Commercial and Residential Building Permit Fees: Staff is proposing changes to be more clear and <br />be adjusted to be more consistent with surrounding communities, based on the schedule set by the <br />State in statute. Beyond the separation of permit fees and plan review on the revised fee schedule, <br />staff also proposes increasing some permit fees to be in line with surrounding communities. <br />Language has also been added related to permit refunds to mitigate confusion. To provide clarity to <br />the applicant, specificity in the type of fee, the fee surcharge and the relationship to State Statute and <br />related calculations was addressed. This aligns with updates from Tokle Inspections in 2025 to have <br />commercial electrical permits be more proportional to the project. Also proposed is to add language <br />to the table to be more specific about flat fees and to include a minimum state surcharge of $1 (as <br />allowed by law) for flat -fee permits. This will also serve to reduce the burden on the applicant in <br />determining total fees and costs; it is more likely than not to result in a fee schedule that is more <br />proportional to the project; and is in the interest of the outcomes described in the Council's adopted <br />strategic plan regarding customer service. <br />Commercial Mechanical and Plumbing Plan Review Fees: The City conducts commercial mechanical <br />permit plan review in-house and has not historically charged a fee for such. This is a time-consuming <br />effort and staff is proposing to establish a plan review fee for commercial mechanical permits as <br />allowed in state statute. That is 65% of the permit fee. In addition, commercial plumbing permit plan <br />review is conducted by the Minnesota Department of Labor and Industry (DoLI). Staff proposes the <br />City contract with Rum River to be the delegated commercial plumbing plan review service. Not only <br />would the City then receive a percentage of each permit and plan review fee, as determined by the <br />contract with Rum River. This would add revenue the city is not receiving today. It would also reduce <br />the timeline for an applicant to receive a permit, as DoLI's review times are in excess of four to six <br />weeks much of the year. Rum River can provide a much more reasonable timeline. <br />Electrical Permit Fees: The City continues to contract with Tokle Inspections. Tokle has increased <br />pricing for both commercial and residential items which are reasonable increases comparatively to <br />surrounding cities — please see the attached Exhibit A. <br />Page 2 of 5 <br />