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Andrew Mack To: kwarn@cmgfi.com Subject: SSTS Point of Sale Requirements & Failing SSTS Compliance 535 Old Crystal Bay Rd. S - PID: 04-117-23-31-0004 Attachments: 3-27-14 Failing SSTS Inspection Report.pdf Kristy, This letter is in follow up to an inquiry regarding point of sale requirements and the failing septic inspection report of the existing septic system for the above described property. Orono City code requires that prior to point of sale transfer of any real estate with an existing septic system a certificate of SSTS compliance must be provided by a licensed MPCA septic inspector. If the system if found to be non-compliant, then the system must be upgraded prior to the sale or an escrow agreement must be established prior to closing which assures the system will be upgraded. Specifically the code requires as follows: Sec. 58-77. Property transaction standards for individual sewage treatment systems. (a) No owner of a tract of land upon which a dwelling is located, or a tract of land upon which a structure which is required to have an individual sewage treatment system is located, shall sell or transfer to another party said tract of land, unless the following requirements are met: (1) The seller of any property having an individual sewage treatment system shall have a state licensed inspector or designer I complete the Minnesota Pollution Control Agency (MPCA) sewage system compliance inspection form for existing sewage systems in accordance with this article and Minnesota Rules chapter 7080. The exception would be a new septic system installed within the previous five years or a compliance inspection performed by a licensed inspector or designer I within the previous three years. (2) The seller must provide a copy of the completed sewage system disclosure form and the certificate of compliance or notice of non-compliance to any person who signs a purchase agreement. The disclosure form and certificate of compliance or notice of non-compliance inspection form must be provided to the buyer prior to signing the purchase agreement. (3) The licensed inspector or designer I must submit a copy of the certificate of compliance or notice of non-compliance to the city within 30 days of the date of inspection. (4) If the existing system is found to be out of compliance it must be brought into compliance prior to transfer of the property. If the system is not brought into compliance prior to transfer, the seller shall provide the buyer sufficient security in the form of an escrow agreement to assure the installation of a complying ISTS. (5) If the seller fails to provide a certificate of compliance, the seller shall provide the buyer sufficient security in the form of an escrow agreement to assure the installation of a complying ISTS. (6) The security shall be placed in an escrow with a licensed real estate closer, licensed attorney-at- law or a federal or state chartered financial institution. The amount escrowed shall be equal to 150 percent of a written estimate to install a complying ISTS provided by a licensed and certified installer, or the amount shall be equal to 110 percent of the written contract price for the installation of a complying ISTS provided by a licensed and certified installer. After a complying ISTS has been installed and a certificate of compliance issued, the City of Orono shall provide the escrow agent a copy of the certificate of compliance. 1