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AGENDA ITEM - 3A <br />-ARVE_-HILLS <br />MEMORANDUM <br />DATE: November 24, 2025 <br />TO: Honorable Mayor and City Councilmembers <br />Jessica Jagoe, City Administrator <br />FROM: Jake Reilly, Community Development Director <br />SUBJECT: Plumbing plan review contract and fees <br />Budgeted Amount: Actual Amount: Funding Source: <br />Council Should Consider <br />Council should consider providing feedback and direction on a proposal to shift plumbing plan <br />review from the State of Minnesota Department of Labor and Industry (DLI) to Rum River <br />Consultants LLC. <br />Back2round/Discussion <br />The City of Arden Hills has historically relied on the State of Minnesota Department of Labor and <br />Industry (DLI) to complete plumbing plan review for public and commercial projects. DLI conducts <br />plumbing plan review for public and commercial projects for most jurisdictions in the State of <br />Minnesota, as stipulated in Minnesota Rules 1300.0215, Subpart 6. Given recent strategic planning <br />conversations around, "new sources of revenue," and "preparing our organization for potential <br />service growth," and timeliness issues associated with DLI review, city staff propose the Council <br />consider receiving the delegation of authority for plumbing plan review from DLI and contracting <br />with Rum River Consultants (RRC) to execute the service. <br />The concept was first noted during the Council's November 10, 2025, discussion of the 2026 fee <br />schedule. With Rum River as 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, the shift would also likely reduce the timeline for an applicant to receive a <br />permit, as DLI review times are in excess of six weeks much of the year. <br />Minnesota Statutes 32613.43, Subdivision 2 permits the delegation of authority for review of these <br />types of permits to local jurisdictions. This statute enables the Commission of DLI to establish an <br />agreement in which the jurisdiction agrees to carry out plan reviews that are typically performed by <br />the Commission or their designee. <br />To obtain this special delegation, the jurisdiction must undertake key steps to formalize this process, <br />Page 1 of 2 <br />