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HomeMy WebLinkAbout#19 CC 12 15 15 Electrical Permitting MAYOR & COUNCIL COMMUNICATION -- page 1 -- DATE: December 15, 2015 REGULAR ITEM: #19 AGENDA ITEM: Municipal Electrical Permitting and Inspections Program SUBMITTED BY: Clark Schroeder, Interim City Administrator THROUGH: Clark Schroeder, Interim City Administrator REVIEWED BY: Rick Chase, Building Official Cathy Bendel, Finance Director SUGGESTED ORDER OF BUSINESS: - Introduction of Item .............................................................. City Administrator - Report/Presentation…………………………………………City Administrator - Questions from Council to Staff ............................................. Mayor Facilitates - Call for Motion ............................................................... Mayor & City Council - Discussion ....................................................................... Mayor & City Council - Action on Motion .................................................................... Mayor Facilitates POLICY RECOMMENDER: Staff FISCAL IMPACT: Minimal if any lost net revenue; expense savings due to removal of a manually extensive reconciliation. SUMMARY AND ACTION REQUESTED: In 2013 the Building Department proposed and approved to move the electrical inspections in house. As a result, a contract was executed with an electrical inspector effective 2/1/14. At that time, it was thought that with the increased build out activity the net revenue would be significant while allowing the City to improve service timing and customer service. However, the net revenue has been very minimal and the process has created additional labor for the building department and the accounting staff. In addition, feedback from the contractors and residents, primarily as a result of a new streamlined, on-line inspection system put into place at the State of Minnesota, is that their preference would be to work direct with the State as it would be more efficient and timely. City Council Meeting [Regular Agenda Item 19] December 15, 2015 -- page 2 -- The current contracted electrical inspector, Joe Wheaton is the same individual who does the permitting and inspections for the State of Minnesota under the state contract. Staff is recommending that the City Council revert to the prior process of having the State of Minnesota performing all City Electrical Permitting and Inspections through the following motion: “Move to repeal Ordinance 08-093 which to adopted the City Electrical Permitting and Inspections Program.” In addition, Staff is recommending that the City Council amend the City’s Fee Schedule through the following motion: “Move to repeal Ordinance 08-094 to amend the City’s Fee Schedule to incorporate fees related to the City Electrical Permitting and Inspections Program.” Finally, Staff recommends the approval of the Electrical Inspection Services Agreement through the following motion: “Move to discontinue the Electrical Inspection Services Agreement with Joe Wheaton effective 1/1/2016” LEGISLATIVE HISTORY: N/A BACKGROUND INFORMATION (SWOT): Strengths With the new on-line system recently implemented by the State of Minnesota, it is now more user friendly to residents and contractors to be able to use the on-line system to request permits and inspections. This system was not in place in 2013 when the electrical permitting program was brought in house. The City is hearing more and more from contractors and residents that it would be far more convenient and timely for them not to have to come to work through the City for this service. In house electrical inspection creates additional work for the Building and Finance Departments with minimal income to cover the increase in costs. Other Cities are also moving back to the State for Electrical Inspections due to their streamlined on-line process. Weaknesses Having the City in the Electrical permitting loop creates an additional step for the contractors and residents which slows down the process for electrical permits and inspections. City Council Meeting [Regular Agenda Item 19] December 15, 2015 -- page 3 -- Opportunities Returning to the State for the electrical permitting and inspections equation would be responsive to the feedback from contractors and residents. Threats None identified. RECOMMENDATION: Staff is recommending that the City Council repeal the City Electrical Permitting and Inspections Program through the following motion: “Move to repeal Ordinance 08-093 effective 1/1/2016 which adopted the City Electrical Permitting and Inspections Program.” In addition, Staff is recommending that the City Council amend the City’s Fee Schedule through the following motion: “Move to repeal Ordinance 08-094 effective 1/1/2016 to amend the City’s Fee Schedule to incorporate fees related to the City Electrical Permitting and Inspections Program.” Finally, Staff recommends the approval to discontinue the Electrical Inspection Services Agreement through the following motion: “Move to discontinue the Electrical Inspection Services Agreement with Joe Wheaton effective 1/1/2016.”