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department, contracting with the state for building inspections services and <br />contracting with an independent third party for building inspections services. The <br />results are as follows: <br /> <br />Contracting with the Fire Department <br /> <br />The Fire Chief has submitted a proposal (see Exhibit B) to the City which is valid <br />for 60 days, or until December 8, 2001. Under the Fire Department’s proposal, <br />there are two possible scenarios. In Scenario 1 the City would pay 55% of <br />revenue ($125,000 for 2002) and in Scenario 2 the City would pay 75% of <br />revenue. <br /> <br />Contracting with the State <br /> <br />The state, according to one of the directors of the program, Scott McClelland, <br />indicated that the State of Minnesota is not in the business of providing <br />inspections and plan review services for communities as a matter of course. <br />They will step in during an emergency or for a specific project, but their intent is <br />not to become a city's building official. They are considering offering this service, <br />however, because some cities have expressed an interest but they do not <br />currently offer this service. <br /> <br />Contracting with an independent third party <br /> <br />Metro West Inspections has indicated that they would charge 40-50% of building <br />permit fees, 30% for permits over $1,000,000 and all plan review fees. <br />Conservatively, Metro West would charge the City $62,500 (based on $125,000 <br />in revenue) leaving the City with a profit of $62,500. <br /> <br />Please note that Exhibit C (Financial Implication for Building Official Options) <br />shows a financial comparison of each of the options being considered. In <br />addition, the Council should be mindful that the numbers from Metro West are <br />preliminary and staff is uncertain as to what increases might be proposed after <br />the initial year of the contract. <br /> 2002 2003 2004 <br /> <br />Revenue 125,000 125,000 125,000 <br /> <br />FTE 62,000 64,300 67,000 <br />Fire Dept (55%) 96,750 96,900 97,055 <br />Fire Dept (75%) 121,750 121,900 122,055 <br />Outside Contract 62,500 62,500 62,500 <br /> <br />Recommendation <br />Provide staff with direction regarding whether (and what) the Council would like <br />presented.