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5.2. SR 01-26-2004Item 5.2. River MEMORANDUM TO: Mayor and City Council FROM: DATE: Stephen Rohlf, Building and Environmental Administrator January 26, 2004 SUBJECT: Consider Contracting for Apartment Inspections As discussed with the Council on several occasions, the Building and Environmental Department is facing an incredible workload. The tremendous increase in building activities is due largely to recent projects by D. R. Horton and Centex Homes. Staff is trying to avoid hiring another building inspector to deal with the increased workload because it is anticipated to return to more normal levels when the projects for these two contractors get built out. Typically construction activities slow down in the winter, which gives the Department time to do inspections on apartments. A rash of home starts this past fail, however, has made the winter of 2004 a non-typical time. In short, the city's Building Inspectors can't keep up with building inspections and do apartment inspections both this year. Staff explored the following options to deal xvith this issue: License apartments in 2004, but don't inspect them this year. In past discussions, every-other-year inspections have been considered. This option requires an amendment to City Code, which now calls for annual inspections. A lot of problems can arise in two years and staff is not sold on this option. Turning apartment in.qpections and licensing over to the Fire Department. Staff has also discussed this option in earnest. A great deal of an apartment inspection is fire related and it is very common for fire departments to do the inspection and licensing. Bruce West, Fire Chief, has indicated that he would need additional help if his Department were to take over apartment inspections and licensing. Staff is looking into this option for 2005. Hiring a temporary employee to deal with apartment inspections and licensing. Finding someone qualified on a temporary basis is questionable. Contract for apartment inspections in 2004. Attached is a proposal from Top Notch Home Inspection for this service. Cliff Skogstad (Top Notch Home Inspection) is the former Building Official for the city and is extremely qualified. Staff is recommending the city contract with Mr. Skogstad's company for apartment inspections. There are 1,056 apartment units contained in 52 buildings (41 with 10 or more units) within the City of Elk River. The city charges $15 per apartment unit for its annual license, which totals $15,840. The total cost for contracting apartment inspections using the figures in the attached proposal comes to $12,610, leaving the city $3,230 for the administration of the licenses. Money to pay for contracting apartment inspections would have to come from Council Contingency Funds. Staff has two issues regarding the Top Notch Home Inspection proposal. One is whether or not to withhold some of the payment until corrections to an apartment, if any, are followed through on. The second issue is ensuring that apartment inspections are done in a timely manner. Mr. Skogstad will be at the Council Meeting to discuss this issue. January 22, 2004 Top Notch Home Inspection 19889 Lander St. NW, Elk River, MN 55330 For All Your Inspection Needs MR Steven Rohlf Building and Zoning Administrator City of Elk River 13065 Orono Road Elk River, MN 55330 Re; Proposal for inspection services all of the apartment buildings in Elk River. Dear MR Rohlf Thank you.for the opportunity to provide a proposal for the inspections of the city's apartment. Provided for you is a break down of the service Top Notch Home Inspection will provide. 1. Inspect all the apartment unit, garages and common areas such as corridors, mechanical rooms, game rooms and storage areas. 2. Provide a report on all apartment buildings to the Building Department and to the landlord of corrections needed or if they can be licensed. 3. Re-inspect for corrections to determine if the apartment can be issued a license 4. All scheduling of inspections will be through Top Notch Home Inspections. All legal actions needed for code compliance, notices of inspections and licensing will be the city's responsibility. All inspections will be billed at the end of each month, all inspections will be billed at the completion of the first inspection, and the fees for this service are as follows. $10.00 per unit $ 50.00 per building commons, corridors, mechanical and storage areas for buildings containing 10 or more units. Clifford M Skogstad Top Notch Home Inspection Steven Rohlf Building and Zoning Administrator Date Date