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515 Little Canada Road, Little Canada, MN 55117-1600 <br />(651) 766 -4029 / FAX: (651) 766 -4048 <br />www.ci.little-canada.mn.us <br />MEMORANDUM <br />TO: Mayor Blesener & Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: January 4, 2008 <br />RE: Amendment to Falcon Heights Building Official Agreement <br />MAYOR <br />Intl i3lesencr <br />COUNCIL <br />Rick Montour <br />Barbara Allan <br />Jotin Kcis <br />Michael McGraw <br />ADMINISTRATOR <br />Joel R. Hanson <br />As was discussed in the 2008 Budget process, staff believes we need to amend the agreement for <br />building official services with the City of Falcon Heights to create an equitable arrangement <br />from their standpoint. The current agreement ensures that we are reimbursed us at least 35% of <br />the costs we incur in employing a building official to serve our two communities. However, <br />their utilization has been much less than that amount the past couple of years while we have <br />continued to have sizable projects. <br />To remedy the situation, we are proposing that Falcon Heights pay us 80% of building permit <br />revenues (this is a common percentage used by contracted service providers). We will also apply <br />a minimum charge equal to 25% of our outlays and a maximum charge of 35 %. This will be <br />fairer to Falcon Heights thereby helping to ensure the continuation of this mutually beneficial <br />relationship. <br />The other change we are making deletes our responsibility for providing them with Fire Marshal <br />services as they now handle this themselves. <br />The Falcon Heights City Administrator and Attorney have given their approval to this <br />amendment as drafted. Subject to Falcon Heights' execution of the amendment, I recommend its <br />approval as presented. <br />