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M:\MasterFiles\1999 thru 2010\2001\City Council\Work Session Packets\12-03-01 WS\Item 10--Building Inspection Agreement Contract.doc <br />Item No.10 <br />Type of Business: WS <br />WK: Work Session; PH: Public Hearing; <br />CA: Consent Agenda; CB: Council Business City of Mounds View Staff Report <br />To: Honorable Mayor and City Council <br />From: Kathleen Miller, City Administrator <br />Item Title/Subject: Agreement for Building Inspection Services <br />Date of Report: December 3, 2001 <br /> <br />Background <br /> <br />This item is on the agenda for your consideration as a result of Council Member Stigney’s <br />request for an investigation of this contract. As the City Council will recall the Assistant to <br />the City Administrator brought this to the Council’s attention at the October 1, 2001 Work <br />Session. <br /> <br />To review, the City Council entered into an Agreement for Building Inspection Services in <br />April 1999. Article IV, Section 4.1 (c) states that: <br /> <br />“Except as otherwise adjusted upward from time to time in accordance with the <br />Consumer Price Index (CPI), the annual cost to the Municipality for the Service <br />Fees shall not exceed Thirty-five Thousand Dollars ($35,000) per year (a figure <br />based on historical numbers of plan review and inspections) unless said activity <br />increases by a margin of ten (10%) or more in any year, at which time the Fire <br />Department and Municipality shall in good faith renegotiate the compensation set <br />forth in this Agreement.” <br /> <br />Article IV, Section 4.1 (d) of the Agreement further stipulates that: <br /> <br />“…the Municipality will pay the Fire Department a fee of Five Thousand Dollars <br />($5,000) (the “Administrative Fee”) on the date of this Agreement and, thereafter, on <br />January 1 of each contract year…” <br /> <br />According to the City’s proposed 2002 Budget, the City of Mounds View has expended : <br /> <br />1999 $58,520 <br />2000 $67,063 <br />2001 $16,250 (YTD through September) <br />$55,000 (budgeted) <br /> <br />I have attached a copy of the Bureau of Labor Statistics, Consumer Price Index for your <br />reference. That report indicates that the CPI for the years 1999 and 2000 was 2.2 and 3.4 <br />respectively. Given the fact the City entered into this Agreement mid-year 1999, it is <br />difficult to make many assumptions about the cost for that particular year; however it