Receive Building Permit Levels for 2013 Year to Date and Discuss Long Term Building Inspection and Plan Review Staff Needs

Beginning in 2012, Building Permit levels have begun to steadily increase when compared to the years 2007 to 2011. Based on current trends, it appears that revenue and permit levels used for the 2013 Budget and Strategic Plan will exceed original forecasts. Through July 2, 2013, the City had approved ninety-eight (98) new homes and one (1) new instiutional use (Northgate Church). In total, the City has issued 941 permits through July 2, 2013.

Additionally, there are currently nine (9) new homes under review, approximately twenty (20) units additional to issue for Seasons of Ramsey (fifty [50] unit townhome development), and a approximately fifteen (15) other miscellaneous permits of various scales. In addition, there are several carry-over projects from 2012, including the Residence at The COR (230 unit apartment). Furthermore, Staff anticipates issuing several other larger projects by the end of the year including, but not limited to, McDonalds, Stoney River, Cullinan Rigging, and Diamond Graphics. Staff sees this as a necessary time to discuss matching adequate service levels with customer expectations.

Between 2007 and 2011, when permit levels were trending downwards, the City had reduced staffing levels in the Building Division to better match service level demands. In addition, during a portion of this timeframe, the City relied exclusively on contracted services to provide building official (required by building code), building inspections, and plan review services.

On May 28,2013, the City Council authorized Staff to recruit for a Regular, Full-Time Building Official, rather than continuing to contract for this service. Staff is in the process of completing that recruitment and has first interviews scheduled for July 9, 2013 and second interviews scheduled for July 11, 2013.

On June 22, 2013, the contract employee from Inspectron, Inc. that was serving as the Building Official for the City resigned from Inspectron, Inc. to accept a position with another community in Minnesota. At that time, this employee was providing fourty (40) hours per week of service to Ramsey. In addition, Inspectron was providing an additional twenty-four (24) hours between two (2) other Inspectron employees for a total of sixty-four (64) hours of service. Staff had requested and additional eight (8) hours of service from Inspectron in order to better meet acceptable metrics and service to our customers. This would have resulted in a total of seventy-two (72) hours per week of service. Based on current availablity of Inspectron employees, Inspectron is currently only able to provide forty (40) hours of service to the City, resulting in a gap of service. It is noted that Staff believes Inspectron, Inc. has provided excellent customer service for Ramsey, and Staff would desire to continue this partnership and establishing an appropriate balance. It is further assumed that Inspectron's recruitment will be dependent on completion of the City's recruitment for a Building Official. In other words, Inspectron had been providing forty (40) hours of service to Ramsey for Building Official services that will eventually be brought in house for Ramsey.

The established acceptable metrics for the Building Division service levels are ten (10) business days for standard residential plan review, thirty (30) business days for new commercial and industrial plan review, and twenty-four (24) to forty-eight (48) hour 'inspection window'. Based on the current staffing, the Inspection Window is currently fourty-eight (48) to seventy-two (72) hours at minimum and at times ninety-six (96) hours. Staff has fielded a number of concerns on behalf of our customers. The amount of time available with these metrics is spent exclusive on inspections, which does not leave time for plan review for the projects referenced above.

In order to address the service level gap as an interim solution, Staff has arranged an agreement for the City Council's consideration with the City of Saint Francis to provide assistance with plan review and inspections. This is in addition to the services provided by Inspectron, Inc. Due to an urgent need, staff from Saint Francis has provided some assistance on the week of July 1, 2013 in order to address the high volume of inspection requests during a short week. This was only approved as a temporary solution until the City Council could consider approving the attached agreement.

This interim solution appears to be a good compromise that allows both the City and Inspectron to make sound staffing decision based on forecasted service level needs. Staff recommends that it is important to continue the current relationship with Inspectron, Inc. Saint Francis currently has a full-time Building Official and part-time Building Inspector. Staff has been able to secure an arrangement to capitalize on the additional time available from the part-time Building Inspector. The City of Saint Francis has a similar agreement on a longer term basis with the City of Nowthen. Staff would like to disclose that the Saint Francis Building Official, Andrew Schreder, is a former Ramsey Building Inspector. This position was eliminated due to budget reductions based on service levels.

Staff would recommend ratification of the service agreement with the City of Saint Francis on an interim basis and allow Staff to continue discussions to see if this could be a longer term solution. The City of Ramsey has a history of successful relationships and collaborations with the cities of Saint Francis and Nowthen. However, Staff would desire to complete the current recruitment for a Building Official before approving any long term staffing decisions. Again, at this time, it would be recommended that this would be balanced with the existing partership with Inspectron, Inc.

No notification is required.

Current permit revenue updates through mid-day July 3, 2013 are as follows (a detailed report is attached to this case):
 

Revenue Type	Forecasted	Actual	% of Forecasted	% of Year Complete
Base Building Permit	$260,000	$198,461.25	76%	50%
Plan Review	$125,000	$108,195.05	86%	50%
Plumbing	$20,000	$25,268.00	126%	50%
Heating/Mech	$20,000	$30,391.07	151%	50%
Electrical	$30,000	$34,877.75	116%	50%
Septic	$20,000	$6,570.00	32%	50%
Urban Sewer	$7,000	$7,125.00	101%	50%
Urban Water	$7,000	$7,479.80	106%	50%

 
Alternative #1. Approve interim solution and Agreement for Services with City of Saint Francis. This alternative allows the City to complete the recruitment for the Building Official, and utilize that individual to assist in the formulation of a longer term staffing proposal, which could include continued parterships with Inspectron, Inc. and City of Saint Francis or the addition of an additional staff member (either part time or full time) depending on service level demands and City Council desires.

Alternative #2. Continue with current arrangement with Inspectron, Inc. that provides forty (40) hours of service and not approve an agreement with City of Saint Francis as an interim solution for service level gap (an additional twelve [12] hours of service). Again, the service level gap is not due to the quality of service provided by Inspectron, Inc., rather a need to properly addressing staff levels during the recruitment of Ramsey's Building Official before adding any additional staff. This alternative is not recommended by Staff. Staff recommends that the current service levels without the assistance are unacceptable to our customers. This interim solution appears to balance recruitment needs and desires of both Inspectron, Inc. and the City.

Alternative #3. Hire an additional Building Inspector to replace a portion of service levels provided by Inspectron, Inc. and continue parternship with Inspectron, Inc. for service needs above this level. This could be a longer term solution; however, Staff desires input of the future Ramsey Building Official before making this longer term decisino.

Staff recommends approval of the interim solution and Agreement for Services with the City of Saint Francis at least through the recruitment of Ramsey's Building Official and analysis of the number of hours of service that can be provided by Inspectron, Inc. following that recruitment.

Funding for inspection and plan review services is part of the Building Division business account (Account #240), which is part of the General Fund. Revenue for these services are provided by Building Permit fees paid by the customer based on service need.

Motion to approve Agreement for Services with City of Saint Francis for Building Inspection and Plan Review Services.