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Home My WebLink About10C Repeal Code 404 O � PRIp � � v � 4646 Dakota Street SE Prior Lake_ MN 55372 �INNESD� CITY COUNCIL AGENDA REPORT MEETING DATE: MAY 13, 2013 AGENDA #: 10C PREPARED BY: JANE KANSIER, ASSISTANT CITY MANAGER PRESENTED BY: LARRY POPPLER, CITY ENGINEER/INSPECTIONS DIRECTOR JANE KANSIER AGENDA ITEM: CONSIDER APPROVAL OF AN ORDINANCE REPEALING CITY CODE SEC- TION 404 (MINNESOTA ELECTRICAL ACT) DISCUSSION: Introduction The agenda item requests City Council approval of an ordinance repealing Sec- tion 404 of the City Code. The effect of this ordinance is to turn back the respon- sibility for electrical inspections to the State of Minnesota. Hi StOry On July 12, 2011, the City Council adopted Ordinance #111-07, adding Section 404 to the City Code, thereby allowing the City to provide electrical inspections. Prior to that time, electrical inspections were handled by the State. The City Council adopted this ordinance in response to the State shutdown that began on July 1, 2011. Without electrical inspections, it would have been impos- sible to issue certificates of occupancy for any new construction. Since the length of the shutdown was unknown, the City acted to ensure construction could contin- ue uninterrupted. The City contracted with an electrical inspector (who worked for the State of Minnesota) and has been extending that contract on a month to month basis. Current Circumstances We have now been operating an electrical inspection program for more than 18 months. The attached memorandum from Building Official Bob Hutchins outlines the impacts of the program from a financial and a staff perspective. Conclusion The staff recommends Section 404 be repealed and the responsibility for electrical inspections be returned to the State because the State program has advantages the City program does not offer our customers. Inspections can be applied for, scheduled and paid for on line. The City does not have these capabilities at pre- sent. ISSUES: Our original desire in taking on this program was to have expertise, flexibility and dependability in electrical inspections. We were able to maintain inspections dur- ing the shutdown, but the length of that event was much shorter than anticipated. Our experience over the last 18 months has indicated we have not improved cus- tomer service in electrical inspections. In fact, returning the program to the State will be more convenient for contractors since they will be allowed to purchase electrical permits online with credit card payments. City staff will be able to con- centrate our time on the other aspects of permits and construction. If at some point in the future a similar situation develops at the State level we will be able to react more expeditiously than we did before. FINANCIAL There was a modest income which the city received over and above the cost of IMPACT: the inspector. Unfortunately that income quickly disappeared as we considered the additional administrative and supervisory burden associated with this program. ALTERNATIVES: 1. Adopt the ordinance to repeal City Code Section 404. 2. Take no action and the City will continue to contract for electrical inspection services. 3. Provide staff with additional direction. RECOMMENDED Alternative #1. MOTION: A motion and second to adopt an ordinance repealing City Code Section 404 in its entirety. ORDINANCE 113-x�cx AN ORDINANCE REPEALING CITY CODE SECTION 404 MINNESOTA ELECTRICAL ACT IN ITS ENTIRETY The City Council of the City of Prior Lake does hereby ordain that: 1. Section 404 of the Prior Lake City Code is repealed in its entirety. This ordinance shall become effective on June 1, 2013. Passetl by the City Council of the City of Prior Lake this 13th day of May, 2013. ATTEST: ! City Manager Mayor Published in the Prior Lake American on the 18th day of May, 2013. Memorandum . DATE: DECEMBER 19, 2012 � TO: LARRY POPPLER FROM: ROBERT D. HUTCHINS � RE: ELECTRICAL INSPECTION PROGRAM The city's Electrical Inspection Program was implemented in response to the State of Minnesota goveinment shutdown in July 2011. In order to provide electrical inspections, the city chose to start its� own program by contracting with the existing state electrical � inspector. Since October 2011, we have been extending the original agreement with the contract inspector on a month to month basis. The city of Savage, all of Scott County and other than Shakopee, the remaining cities in Scott County have kept the State operated electrical program. The neighboring cities of Shakopee and Lakeville utilize a contract inspector and Burnsville has a full time inspector. To date in 2012 we have issued 501 electrical permits. The amount of fees collected in the months of January 2012 to October 2012 was $8657.87. Staff conducted time studies for the time period and found that there was approximately 142.25 hours of staff time dedicated for the operation of the program. The amount of staff hours is not completely accurate, it doesn't account for interruptions that occur when an electrical customer is at the front counter. These interruptions take time away from projects that are being worked on at the time. Staff labor for the 142.25 hours was calculated at $4604.62. That equates to a net gain of $4053.25. The following are the pros and cons of three options that are available to the city for electrical inspection services: . I Option A: Operate a permanent City run program � I Pros � 1. Control over inspection personnel. 2. More control over customer service. � 3. Explore partnering with adjacent municipalities. I spoke with Scott County and City of Savage building officials, they are not interested in a shared electrical program. � I � Cons 1: Paperwork for program is time consuming for Finance and Building depts. Staff follow up required for collecting underpaid and additional inspections is great. 2. Present permit tracking system is paper based; a permanent software program needs to be implemented. 3. Present accounting system is inadequate to handle additional fees and tracking I open permits from a previous year that carry over to the next year. ' 4. Present program requires applicants to apply for permits at city hall or by mail. Responses staff has heard from electrical contractors is they like the new online permitting program the State of MN has implemented and would desire city , giving program back to State. , 5. I spoke with our present electrical inspector and he had this comment; with the modest amount of workload, may not get qualified electricians to quote for contract inspections because they may need to have supplemental private side jobs which according to state guidelines they are not allowed. They are allowed to have inspection side jobs. Our present inspector contracts with the State of MN inspecting the City of Savage, Credit River and Spring Lake townships. Option B: Stay with present month to month inspection service. Pros 1. No need to implement into full inspection program at the present. i Cons 1. Need to implement a permanent program. 2. Items 1-4listed in option A cons. 3. Not enough control over contract inspector. Option C: Return program back to State of NIN Pros 1. State has a new program that issues permits online with credit cards, a customer service benefit as it saves applicants time. 2. City staff time is not required to deal with front counter and applicant issues. Cons 1. Little control over inspector and customer service. Staff believes that the implementing a city program is burdensome and recommends returning to a state run program for the following reasons: l. The Finance department finds the amount of billing and billing problems to be time consuming. 2. The Building department is responsible for issuing permits, collecting fees and collecting under paid and additional permit fees a11 of which is time consuming. 3. Staff workload is currently large due to the many new permits. Reducing � workload by returning this program to the state would help free up time. With the above information, staff would ask that the program be abandoned and returned to the state for their operating of the electrical inspections for the city. Electrical Permit Recap 1/1/12 -10/31/12 Labor Costs Hours Dollars Employee 63.25 2,625.51 Bob/Lynda 41 1,081.17 Janet 38 897.94 Judy 142.25 4,604.62 � Dollars Retained for processing permits January 1,082.75 February 732.75 March 459.75 April . 444.25 . . . May 665.50 June 860.50 July 904.75 August 1,286.00 September 965.56 October 1,256.06 8,657.87 Net 4,053.25 . ,