HomeMy WebLinkAbout#14 - MNSPECT Agreement for Plan ServicesSTAFF REPORT
DATE: December 4, 2018
CONSENT #14
AGENDA ITEM: Plan Review Services Agreement
SUBMITTED BY: Kristina Handt, City Administrator
REVIEWED BY: Mike Bent, Building Official
BACKGROUND:
As staff mentioned during the budgeting process, we have been looking for the most efficient ways
to provide building department services. Rather than filling a third full time position we have been
looking at other options to help with the peak demand times. One of those is to have a contract for
services that could be used as needed.
ISSUE BEFORE COUNCIL:
Should the City Council approve the agreement with MNSPECT?
PROPOSAL:
Staff reached out to two contractors to provide assistance with plan review activities. MNSPECT’s
fee came in at half of the permit fee so staff began working with them on developing a contract.
Included in your packet is a copy of the contract which has been reviewed by legal and approved
by MNSPECT. It would allow for the city to utilize MNSPCET for plan review services on an as
needed basis. It allows for termination by either party with a 30 day notice.
FISCAL IMPACT:
Dependent upon how many plan reviews are sent to MNSPCET for review. The plan review fee
is determined per the fee schedule to be 65% of the building permit fee which varies based upon
valuation. Staff intends to mostly use MNSPCET for commercial plan review. None of that
revenue is figured into any budget documents, so a minimal impact is expected.
OPTIONS:
1) Approve the Agreement for Back-Up Services with MNSPECT
2) Amend and then approve the Agreement with MNSPECT
3) Do not approve the agreement
RECOMMENDATION:
If removed from the consent agenda:
“Motion to approve the Agreement for Back-up Services with MNSPECT.”
ATTACHMENTS:
• Agreement for Back-up Services
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AGREEMENT FOR BACK-UP SERVICES
THIS AGREEMENT is made and entered into this ______ day of ____________, 2018,
by and between the City of Lake Elmo, Minnesota, a Minnesota municipal corporation
(City) and MNSPECT, LLC, a Minnesota Limited Liability Company (Inspector).
WITNESSETH:
WHEREAS, the City is desirous of contracting with Inspector for the performance
of back-up plan review services on an as-needed basis; and
WHEREAS, Inspector is agreeable to rendering said services on the terms and
conditions hereinafter set forth;
NOW, THEREFORE, the parties hereto agree as follows:
1. Plan Review Services.
Inspector will provide the following services (Services) for the City:
A. Perform plan review services for residential and commercial building
permit applications on an as-needed basis, if and when requested by the
City in the City’s sole discretion.
B. Prepare and provide records and other necessary information to the City
for it to maintain permanent records of all services performed by Inspector.
Inspector shall complete plan reviews for applications related to residential properties
within ten (10) days of receipt of the permit application, relevant plans, and required
submittal documents and shall complete plan reviews for applications related to
commercial properties within fifteen (15) days of receipt of the permit application,
relevant plans, and required submittal documents.
2. Qualifications of Inspector’s Employees and Contractors; Independent Contractor.
All Services provided by Inspector shall be performed by qualified individuals
certified by the State of Minnesota as Building Officials or Limited Building Officials.
City and Inspector acknowledge and agree that Inspector is an independent contractor
contracting with the City to perform the Services pursuant to this Agreement and is not
an employee of the City. Inspector shall have control over the manner in which the
Services are performed under this Agreement. Inspector shall supply, at its own
expense, all personnel, materials, supplies, equipment, and tools required to provide the
Services contemplated by this Agreement. Inspector shall not be entitled to any benefits
from the City, including without limitation, insurance benefits, sick and vacation leave,
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workers’ compensation benefits, unemployment compensation, disability, severance
pay, ore retirement benefits. Nothing in this Agreement shall be deemed to constitute a
partnership, joint venture, or agency relationship between the Parties. Inspector shall
be responsible for all individuals performing Services on behalf of Inspector pursuant to
this Agreement.
3. Insurance
Inspector, at its expense, shall procure and maintain in force for the duration of
this Agreement, the following minimum insurance coverages:
A. General Liability. Inspector agrees to maintain commercial general liability
insurance in a minimum amount of $1,000,000 per occurrence; $2,000,000
annual aggregate. The policy shall cover liability arising from premises,
operations, products-completed operations, personal injury, advertising
injury, and contractually assumed liability. The City shall be endorsed as
additional insured.
B. Automobile Liability. If Inspector operates a motor vehicle in performing
the Services under this Agreement, Inspector shall maintain commercial
automobile liability insurance, including owned, hired, and non-owned
automobiles, with a minimum liability limit of $1,000,000 combined single
limit.
C. Workers’ Compensation. Inspector agrees to provide workers’
compensation insurance for all its employees in accordance with the
statutory requirements of the State of Minnesota. The Contractor shall
also carry employers liability coverage with minimum limits as follows:
i) $500,000 – Bodily Injury by Disease per employee
ii) $500,000 – Bodily Injury by Disease aggregate
iii) $500,000 – Bodily Injury by Accident
Inspector shall, prior to commencing the Services, deliver to the City a Certificate
of Insurance as evidence that the above coverages are in full force and effect.
The insurance requirements may be met through any combination of primary and
umbrella/excess insurance. Inspector’s policies shall be the primary insurance to
any other valid and collectible insurance available to the City with respect to any
claim arising out of Contractor’s performance under this Agreement. The
Contractor’s policies and Certificate of Insurance shall contain a provision that
coverage afforded under the policies shall not be cancelled without at least thirty
(30) days advanced written notice to the City.
4. Effective Date of Agreement.
The effective date of this Agreement shall be December 1, 2018.
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5. Termination of Agreement.
This agreement shall remain in force and effect from the effective date until
cancelled by either party, with or without cause, upon thirty (30) days’ advance
written notice. In the event of termination, City shall only be responsible to pay
for the Services satisfactorily performed by the Inspector through the effective
date of termination.
6. Cost to the City for Services.
The City shall pay Inspector for Services performed by Inspector within 30 days
of submission of a written invoice to the City for the following Services at the
following rates:
A. The fee for the performance of plans examination shall be 50% of the
permit fee as listed in the City’s fee schedule.
Inspector shall submit logs with its invoices for services rendered under this
subsection.
7. Amendments and Assignment.
Any modification or amendment to this Agreement shall require a written
agreement signed by both Parties. Inspector may not assign any of its rights or
duties under this Agreement without the prior written consent of the City.
8. Indemnification.
To the fullest extent permitted by law, Inspector agrees to defend, indemnify, and
hold-harmless the City and its employees, officials, and agents from and against
all claims, actions, damages, losses, and expenses, including reasonable attorney
fees, arising out of the Inspector’s negligence or Inspector’s performance or
failure to perform its obligations under this Agreement. Inspector’s indemnification
obligation shall apply to Inspector’s subcontractor(s), or anyone directly or
indirectly employed or hired by Inspector, who performs Services on behalf of
Inspector, or anyone for whose acts Inspector may be liable. Inspector agrees
this indemnity obligation shall survive the completion or termination of this
Agreement. This indemnification requirement is subject to the provisions of MN
Rule 1300.0110, Subpart 9.
9. Legal Compliance.
Inspector agrees to comply with all federal, state, and local laws and ordinances
applicable to the Services to be performed under this Agreement, including safety
standards. Inspector shall be solely responsible for the safety of all persons and
property during performance of the Services. Inspector represents and warrants
that it has the requisite training, skills, and experience necessary to provide the
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Services and is appropriately licensed by all applicable agencies and
governmental entities and will perform the Services with reasonable skills and
care.
10. Ownership of Documents; Data Privacy.
All reports and other documents produced by Inspector in the performance of
Services under this Agreement shall be the property of the City. Inspector agrees
to abide by the applicable provisions of the Minnesota Government Data Practice
Act, Minnesota Statutes, Chapter 13, and all other applicable state or federal
rules, regulations, or orders pertaining to privacy or confidentiality. Inspector
understands that all of the data created, collected, received, stored, used,
maintained, or disseminated by Inspector in performing those functions that the
City would perform is subject to the requirements of Chapter 13, and Inspector will
cooperate with City to furnish or provide requested data to City. This does not
create a duty on the part of Inspector to provide the public with access to public
data if the public data is available from the City, except as required by the terms
of this Agreement.
11. Entire Agreement.
This is the entire agreement of the parties.
12. Choice of Law.
This agreement shall be governed and construed in accordance with the State of
Minnesota Law.
13. Representation of Authority.
The undersigned executing this agreement for MNSPECT, LLC, represents and
warrants that he has been duly authorized to execute this agreement on behalf
of MNSPECT, LLC, by the organization’s Board of Directors, and that this
agreement shall bind it to the terms and obligations contained herein.
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IN WITNESS THEREOF, the parties have executed this agreement in duplicate this
______day of ____________, 2018.
CITY OF LAKE ELMO MNSPECT, LLC
By: __________________________ By: ________________________
Mike Pearson, Mayor Scott Qualle, President
Attest: _________________________
City Clerk