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including the approval of an ordinance to offer local plumbing plan review services, the endorsement <br />of an application and submission of an agreement with the State of Minnesota, the establishment of <br />local fees and ensuring the designated representative is eligible to perform the local reviews. <br />This agreement benefits local jurisdictions by generating additional revenue that the state usually <br />retains by conducting these reviews. The City would be able to retain between 15 and 20% of the <br />public and commercial plumbing plan review fees. More importantly, the customer service benefits <br />for permit applicants and property owners are significant. RRC has stated it has capacity to perform <br />the review of these plans in a fraction of the timeframe of DLI. RRC holds the delegation of authority <br />across Minnesota, representing almost 25% of the jurisdictions that have this special delegation. This <br />experience uniquely positions the firm to offer streamlined services and enable projects to begin and <br />conclude more swiftly in Minnesota's demanding climate. <br />The process has several steps and RRC has proposed to lead Arden Hills staff, in consultation with <br />the City Attorney, through the process as required by law, which includes drafting the ordinance <br />documents to amend the city's code to provide local plumbing plan review, establishing fees for these <br />services, an application to and agreement with DLI, a resolution for the Council to affirm endorsing <br />the application and related agreement and a contract to define the agreement between RCC and our <br />jurisdiction. The process takes approximately eight weeks to complete. <br />The current contract is attached (Attachment A). The contract as executed shows that the City will <br />retain 15% of all plan review and inspection services provided by RCC, in accordance with the <br />adopted fee schedule. Further, the contract anticipates this proposed change as evidenced by the <br />language in Exhibit A, identifying the services that could be provided by RRC. It lists four different <br />services than RCC can provide to the city: <br />D. Plumbing Code Services. The Contractor may provide pluming plan review and inspection <br />services under delegation from the Commissioner of Labor and Industry, in accordance with <br />Minnesota State Plumbing Code §4714.0203, Minnesota Rules §1300.0215, Subp. 6, and <br />Minnesota Statutes §326B.43, Subd. 2. <br />At this time, plumbing code services are provided by DLI as stated in the city's Code of Ordinances. <br />With a change to the code language following the proper procedure as outlined above, the city would <br />be able to retain at least that 15% on all commercial plumbing projects, in addition to the non - <br />plumbing -related building permit and plan review fees currently collected. This also frames the <br />justification for proposed fee schedule changes associated with the building division, including an <br />increase in the minimum fee. <br />State Statute establishes that building departments/divisions ought to be self-sustaining. A shift to <br />increase revenue on the part of the building division will reduce the reliance of the department on <br />general fund levy dollars for staffing, equipment and overhead -related spending. <br />Budget Impact <br />Initial cost in professional services will result in a net positive benefit to revenue generation. Lost revenue in <br />2025 year-to-date is approximately $20,000. <br />Attachments <br />Attachment A Contract with Rum River Consultants <br />Page 2 of 2 <br />