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AGENDA ITEM <br />Prepared By: J. Barnhart Reviewed By: A. Carlson Approved By: <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />1. Purpose. Authorize the mayor and administrator to sign the Septic Services Agreement with <br />Midwest Sewer Services and other changes related to septic services. <br /> <br />2. Background. In April, the City Council authorized the advertisement of an RFP to companies <br />wishing to serve as Septic contractor, including plan review, inspections, and administration of our septic <br />program. The city received one response, from Midwest Sewer Services. After confirming that the City <br />did not want to delegate the septic program to Hennepin County, a contract was developed and the City <br />attorney’s office recommended some changes that are incorporated into the attached contract, which the <br />Council is asked to accept. <br /> <br />3. Fee Schedule Amendment. In addition to the contract, the Council is asked to adjust the fee <br />schedule to accommodate the fees charged by the Contractor. Midwest Soil Testing charges a flat fee for <br />each type of permit, with a provision that additional review may generate additional fees. Staff <br />recommends the fee schedule be adjusted to accommodate these additional expenses, plus staff <br />administrative time. The portion of the proposed fee above the Midwest costs listed will go toward other <br />departments’ review of the permits, and other costs associated with permit administration. To facilitate <br />review and transfer of permits, as well as inspections, one Citizen Serve account will be created for <br />Midwest Sewer services. See the table below: <br /> <br />Permit Type Current Fee Costs Proposed Fees <br />Standard Residential System (new) <br />Type I or III systems $ 460.00 $ 600.00 $ 750.00 <br />Tank/ Repair permit $ 100.00 $ 300.00 $ 350.00 <br />Advanced Septic System <br />All other systems $ 460.00 $ 600.00 $ 750.00 <br /> Additional fees may apply $ 600.00 As billed <br />Standard Commercial $ 260.00 $ 600.00 $ 750.00 <br /> Additional fees may apply $ 600.00 As billed <br />Septic related review, other <br />permit (per hour rate) $ 105.00 <br /> <br />4. Contract termination. With Council’s authorization of this contract, it is necessary to terminate the <br />septic component of the contract with MnSpect. effective July 1, 2022. They have indicated a willingness <br />to waive the 90 day notice, as they are losing money on each septic permit. <br /> <br />5. Staff Recommendation. Staff recommends the Council accept the contract as presented, and support <br />changes to the fee schedule and the termination of the septic component with MnSpect. <br /> <br />COUNCIL ACTION REQUESTED <br />Council accept the contract as presented, and support changes to the fee schedule and the termination of <br />the septic component with MnSpect <br /> <br />Exhibits <br />A. Contract <br /> Item No.: 21 Date: June 13, 2022 <br />Item Description: Septic Services Contract Agreement <br />Presenter: Jeremy Barnhart, AICP <br />Community Development Director <br />Agenda <br />Section: <br />Consent Agenda