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Item No: 8A Meeting Date: May 22, 2006 Type of Business: CA Administrator Review : ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: James Ericson, Community Development Director Item Title/Subject: Consideration of Resolution 6815, a Resolution Amending Resolution 6694 Relating to Plan Review Fees Associated with the Medtronic CRM Development Introduction: On April 24, 2006, I alerted the Council to a situation relative to the Medtronic development and the permits issued for the parking ramp, north and central buildings. The total valuation for the project, as indicated on the permit applications, exceeds the original projected value by $26,000,000. Permit and plan review fees have also increased by a similar margin. Discussion: Building permits for the project are being issued separately for each of the four structures. The north and central buildings and the parking ramp permits have all been issued. The permit fee valuations for the parking ramp, north and central buildings amount to $93,300,000. (The valuation for the south building is $28,700,000 bringing the total valuation up to $122,000,000, approximately $26,000,000 more than originally anticipated.) The building permit and plan review fees collected for the project thus far total $497, 097. The plan review fees for the original Phase 1 (parking ramp, north building and central building) amount to $195,826, which is $59,094 more than what was anticipated. According to the plan review agreement approved by the City Council on January 9, 2006, G & H Consultants was contracted to conduct the plan review for the original Phase 1 project in conjunction with the City’s building official. The terms of the contract (the “Agreement”) indicate that G & H would be compensated at the rate of twenty-five percent (25%) of the plan review fees collected for the Phase 1 construction. At the time of the approval, 25% was calculated at $34,183 and the resolution incorporated this figure as the maximum amount of compensation to be paid, assuming that the valuation would not increase. G & H has completed the plan review for the ramp and north building and have submitted an invoice consistent with the Agreement which totals $32,074.66. The invoice was paid in two equal installments; the first half paid on April 11, 2006 with the second half paid on May 9, 2006. The invoice for the central building plan review is $16,881.93. Altogether, the amount owed to G & H consistent with the Agreement will exceed the amount indicated in the authorizing resolution. In recognition of this, staff has drafted Resolution 6815 which revises Resolution 6694 to allow for payments consistent with the plan review Agreement.