4.6. SR 02-20-2001City of
E
River
TO:
FROM:
DATE:
SUBJECT:
MEMORANDUM
Mayor and City Council
Cliff Skogstad, Building Official
February 8, 2001
ISO Rating for City of Elk River
Item ~4.6.
I would like to take this opportunity to inform you that the City of Elk River
Building Department ISO rating has dropped from a classification of five in
March 10, 1998 to a classification of a four on February 14, 2000. Since this
ISO rating is relatively new for the building department, I would like to give
you some information regarding these ratings.
HISTORY
In November 1995, I attended numerous meetings regarding ISO ratings for
building departments in Minnesota and other states. This ISO rating came
about because of all the catastrophic events that have occurred, such as,
earthquakes, hurricanes, etc. Insurance companies felt that a rating should be
applied to the building department since we are enforcing the codes during
construction. These codes weigh heavy during times when Mother Nature
wishes to employ her forces on the structures. Since the building codes enforce
wind loads, snow loads, etc. the insurance companies wanted a rating on the
building departments to ensure compliance with the codes. With compliance
to the codes this would lessen the effects of Mother Nature to the structures
and lessening the amount of money being paid out by insurance companies
from the devastating effects of straight-line winds, tornados, hurricanes,
earthquakes, etc.
EFFECTS OF THE ISO RATING
Traditionally, the ISO rating was based on the fire department's ability to
respond to fires with the equipment they had and the water supplies they
could provide. Depending upon that information, that would determine the
ISO rating for the city. Since the building department is the first line of attack
for safety aspects of fire prevention, the insurance underwriters determined
that this insurance rating should be also off the building departments ability
isomemo.doc
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone (763) 441-7420 · Fax (763) 441-7425
Memo to City Council
Page 2
to enforce the codes. This rating would be a benefit to our commercial and
industrial structures within the city in regards to insurance premiums. The
percentages to what the differences will be is unknown at this time. However,
structures built since this new rating should benefit from a lower insurance
premium. Existing structures prior to the ISO rating will probably not see any
change in their premiums. Because Minnesota has very minimal catastrophic
events compare to California or Florida, we will not see the large percentage
decrease in premiums as other states.
CONCLUSION
This ISO rating will be completed again in 2004 for the City of Elk River. I
apologize for not getting this information to you sooner; however, I was
negotiating with the representative in regards to our rating. There were areas
I felt that we should have received a higher percentage of that rating. I am
hopeful and will strive to achieve a classification of a three at our next ISO
review to assist all new commercial and industrial projects to lessen their
premium rates through code enforcement.
INSURANCE SERVICES OFFICE, INC.
111 NORTH CANAL STREET SUITE 950 CHICAGO, ILLINOIS 60606-72~3 (312) 930-0070 (800) ~.~. ~.,554 FAX: (312) 930-0017
November ]4, 2000
Mr. Hank Duitsman
Mayor
City of Elk River
PO Box 490
Elk River, MN 55330
Dear Mayor Duitsman:
We wish to thank you and Cliff Skogstad for the cooperation given to our representative,
Valerie Mosby, during our survey. We have completed our analysis of the building codes
adopted by your community and the effort put forth to properly enforce those codes. The
resulting Building Code Effectiveness Grading Classification is 4 for 1 and 2 family
residential property and 4 for commercial and industrial property.
The Insurance Services Office, Inc. (ISO) is an insurer-supported organization with the
primary mission of providing advisory insurance underwriting and rating information to
insurers. There is no requirement that insurers use our advisory material. Insurers may have
adopted, or may be in the process of adopting, an ISO insurance rating program that will
provide rating credits to individual property insurance policies in recognition of community
efforts to mitigate property damage due to natural disasters. These insurers may use the
Building Code Effectiveness Grading Classification we have recently developed for your
community as a basis for the credits used. While individual insurers may use different
credits or different effective dates, the ISO program will apply credits to new construction
within Elk River that has been issued a Certificate of Occupancy in the year 1998 and
forward.
We have attached a copy of our report, which provides additional information about our
classification process, and how we have graded various aspects of your community's
building codes and their enforcement.
We want to highlight the fact that the Building Code Effectiveness Grading Schedule is an
insurance underwriting and information tool; it is not intended to analyze all :aspects of a
comprehensive building code enforcement program nor is it for purposes of determining
compliance with any state or local law or for making property/casualty loss prevention and
life safety recommendations.
Cliff Skogstad
November 14, 2000
Page 2
If you have any questions about the Classification that was developed, please let us knoxv.
Additionally, if you are planning on any future changes in your building codes or their
enforcement, please advise us as these changes may affect our analysis and your
community's grading classification.
Sincerely,
Building Code Department
312-930-0070, ext. 6208
Enclosure
cc: Cliff Skogstad
w/enclosure
BUILDING CODE EFFECTIVENESS GRADING SCHEDULE
INTRODUCTION
The purpose of the Building Code Effectiveness Grading Schedule is to review the available public
building code enforcement agencies and to develop a Building Code Effectiveness Classification for
insurance underwriting information and rating purposes.
The Schedule measures the resources and support available for building code enforcement. It also
evaluates how those resources apply to the mitigation of the natural hazards common to the specific
jurisdiction. These measurements are then developed into a Building Code Effectiveness Classification
number on a relative scale from 1 to 10, with 10 representing less than the minimum recognized protection.
The Schedule is an insurance underwriting information and rating tool. It is not intended to analyze all
aspects of a comprehensive building code enforcement program. It is not for purposes of determining
compliance with any state or local law or regulation, nor is it for making property/casualty loss prevention
or life safety recommendations. It should not be used for purposes other than insurance underwriting
information and rating.
The Building Code Effectiveness Classifications developed through the use of this Schedule are only one
of several elements used to develop insurance rates for individual properties. Other features specifically
relating to individual properties such as construction, occupancy, and exposures have similar importance in
the development of these rates.
The Schedule is divided into 3 sections:
Administration of Codes:
This section evaluates the administrative support available in the jurisdiction for code enforcement. It
looks for adopted building codes and modifications of those codes through ordinance, code enforcers
qualifications, experience and education, zoning provisions, contractor/builder licensing requirements,
public awareness programs, the building department's participation in code development activities and the
administrative policies and procedures.
Plan Review:
This section assesses the plan review function to determine the staffing levels, personnel experience,
performance evaluation schedules, review capabilities, and level of review of construction documents for
compliance with the adopted building code for the jurisdiction being graded.
Field Inspection:
This section evaluates the field inspection function to determine the staffing levels, personnel experience,
performance evaluation schedules, review capabilities, and level of review of building construction for
compliance with the adopted building code for the jurisdiction being graded.
The attached "Classification Details" identify the subject matter, maximum points achievable and the
points obtained in the review of your community. This information is provided to you without
recommendation and is for your use in understanding the details of the measurement of your building code
enforcement activities in relationship to the Building Code Effectiveness Grading Schedule.
ELK RIVER, MINNESOTA
SECTION I
ADMINISTRATION OF CODES
100. GENERAL
This section evaluates the administrative support for code enforcement within the jurisdiction -- the
adopted building codes and the modifications of those codes through ordinance, code enforcers
qualifications, experience and education, zoning provisions, contractor/builder licensing requirements,
public awareness programs, the building department's participation in code development activities, and the
administrative policies and procedures.
105. ADOPTED CODES
Maximum Points Possible
Points Scored
10.00 points
9.40 point(s)
The latest edition of the model codes should be adopted and enforced by the jurisdiction. Use of codes
other than the model codes, the National Electric Code, or the CABO 1 & 2 Family Dwelling Code may
prorate the points available in Item 105.
If the latest edition of the listed codes were adopted within I 1/2 years of the published date, and the
published date of the listed codes is within 3 years of the date of the grading Column A applies.
If the above does not apply, or the previous edition of the listed codes is adopted, and the published date of
the listed codes is within 5 years of the date of the grading, Column B applies.
If the next previous edition of the listed codes is adopted, and the published date of the listed codes is
within 10 years of the date of the grading Column C applies
If an earlier edition of the listed codes is adopted Column D applies.
Points Possible
CODES A B C D Points Scored
Building 7.75 pts. 4.65 pts 3.60 pts 1.70 pts 7.75 pts.
Electrical 0.75 pt 0.45 pt 0.30 pt 0.15 pt 0.75 pt.
Mechanical/Gas 0.75 pt 0.45 pt 0.30 pt 0.15 pt 0.15 pt.
Plumbing 0.75 pt 0.45 pt 0.30 pt 0.15 pt 0.75 pt.
1 & 2 Family Dwelling 4.00 pts* 2.40 pts* 1.60 pts* 0.80 pt* 0.00 pt(s).
* Ifa building code is adopted and enforced this value will equal 0.00 points.
11/20/2000
110.
MODIFICATION TO ADOPTED CODES
Maximum Points Possible
Points Scored
5.00 points**
4.70 points
There should be no modifications to the structural design provisions of the adopted codes and referenced
standards that would weaken the intent for construction mitigation of natural hazards as defined in the
model codes and referenced standards. No proration is permitted in this item.
** Maximum allowable points = (points credited in item 105) x 0.1 x 5.0
Maximum Points Possible 13.00 points
115. TRAINING
Points Scored 10.69 point(s)
Amount of expenditures for training equaling at least 2% of the annual operating budget for all building
department related activities.
Pts Poss. Scored
3.00 points 2.28 point(s)
Each code enforcement person receiving the following amount of training per year:
Pts Poss. Scored
Administration 12 hours ................................. 1.25 points 1.12point(s)
Legal 12 hours ................................. 1.25 points 1.14point(s)
Mentoring 12 hours ................................. 1.25 points 1.22point(s)
Technical 60 hours ................................. 4.25 points 2.93 point(s)
Incentives provided by the jurisdiction for continuing education, outside training, certification and
certification maintenance.
Pts Poss. Scored
Community paid certification exam fees 0.50 point 0.50 point
Community incentive - outside training/certification 0.50 point 0.50 point
Community paid continuing education 0.50 point 0.50 point
Education of elected officials or governing authorities in building codes and building code enforcement a
minimum of 3 hours per official per year.
Pts Poss. Scored
0.50 point 0.50 point
2 11/20/2000
120.
CERTIFICATION
Maximum Points Possible
Points Scored
12.00 points
5.86point(s)
The credit for certification is as follows:
Certification of code enforcement personnel (applicable to the position requirements) through a
comprehensive examination representative of the performance area for which certification is sought.
Pts Poss. Scored
8.00 points 2.46 point(s)
State or local jurisdiction mandated program for certification.
Pts Poss. Scored
1.00 point 0.85 point
State or local jurisdiction mandated program of certification maintenance through continuing education at
least once every 3 years.
Pts Poss. Scored
2.00 points 1.70 point
Program of employee certification in the field they are employed (prior to employment or within one year
of date of hire or advancement).
Pts Poss. Scored
1.00 point 0.85 point
3 11/20/2000
125.
BUILDING OFFICIAL'S QUALIFICATION / EXPERIENCE / EDUCATION
Maximum Points Possible 4.00 points
Points Scored 1.90 point(s)
The following is reviewed:
Licensed Architect or Engineer
Certification as a building official
High School diploma
College degree
Masters degree
Construction related experience
Pts Poss. Scored
0.60 point 0.00 point
Pts Poss. Scored
0.60 point 0.00 point
Pts Poss. Scored
O. 10 point O. 10 point
Pts Poss. Scored
0.50 point 0.00 point
Pts Poss. Scored
0.40 point 0.00 point
Pts Poss. Scored
none 0.00 point
less than 2 years 0.10 point
or two to five years 0.20 point
or more than five years 0.60 point
Code enforcement experience
0.60 point
Pts Poss. Scored
none 0.00 point
less than 2 years 0.10 point
or two to five years 0.20 point
or more than five years 0.60 point
Building official experience
less than 2 years
or two to five years
or more than five years
0.60 point
Pts Poss. Scored
O. 10 point
0.20 point
0.60 point
0.60 point
4 11/20/2000
130.
SELECTION PROCEDURES FOR BUILDING OFFICIAL
Maximum Points Possible 0.50 points
Points Scored 0.25 points
The selection process for a building official is designed to select the most qualified candidate.
Pts Poss. Scored
Selection through examination. 0.25 point 0.25 point
Selection through peer review. 0.25 point 0.00 point
135. DESIGN PROFESSIONALS
Maximum Points Possible 4.00 points
Points Scored 0.38 point(s)
The credit for design professionals is as follows:
If supervisory plan review staff are graduate or registered architects or engineers.
Pts Poss. Scored
2.00 points 0.00 point(s)
If non-supervisory plan review staff are graduate or registered architects or engineers
Pts Poss. Scored
1.50 points 0.38 point(s)
If supervisory field inspection staff are graduate or registered architects or engineers.
Pts Poss. Scored
0.50 point 0.00 point
140. ZONING PROVISIONS
Maximum Points Possible
Points Scored
1.00 point
1.00 point
Where possible, special (through ordinance or code amendment) zoning provisions that address mitigation
measures for buildings subject to local natural hazards.
5 11/20/2000
145.
CONTRACTOR/BUILDER LICENSING AND BONDING
Maximum Points Possible
Points Scored
1.00 point
0.63 point
Contractors/builders licensed and bonded to work in the jurisdiction being graded. The licensure
dependence upon examination and experience.
Licensing requirement for contractors and builders
Licensing by examination
Licensing by experience
Bonding requirements for contractors
Pts Poss. Scored
0.10 point 0.06 point
Pts Poss. Scored
0.50 point 0.32 point
Pts Poss. Scored
0.30 point 0.19 point
Pts Poss. Scored
0.10 point 0.06 point
150.
DESIGNER LICENSING VIOLATION REPORTING
Maximum Points Possible
Points Scored
0.50 point
0.50 point
Reporting of licensing violations in contract documents to the appropriate state professional licensing
board.
155.Maximum Points Possible 2.00 points
PUBLIC
AWARENESS
PROGRAMS
Points Scored 1.50 point(s)
The amount of expenditures for public awareness programs equaling a minimum of 0.5% of the annual
operating budget for all building department related activities.
Pts Poss. Scored
1.00 point 0.50 point
The amount of hours spent by code enforcers on public awareness programs, equaling a minimum of 3
hours per code enforcement employee per year.
Pts Poss. Scored
1.00 point 1.00 point
6 I 1/20/2000
160.
PARTICIPATION IN CODE DEVELOPMENT ACTIVITIES
Maximum Points Possible 0.50 point
Points Scored 0.50 point
The building department involvement in code development activities and associations with groups or
organizations that assemble building enforcement personnel for the purpose of education and advancement
of effective building codes.
Participation in code change activities
Participates in code association/chapter meetings
Pts Poss. Scored
0.25 point 0.25 point
Pts Poss. Scored
0.25 point 0.25 point
165.
ADMINISTRATIVE POLICIES AND PROCEDURES
Maximum Points Possible
Points Scored
0.50 point
0.50 point
The credit for "Policies and Procedures" is as follows:
A formal appeal process that a contractor/builder or architect/design professional can utilize as recourse to
a building official's interpretation of the adopted building code/zoning regulations.
Pts Poss. Scored
0.30 point 0.30 point
A policies and procedures guide for employees.
Pts Poss. Scored
O. 10 point O. 10 point
The policies and procedures guide covers technical code requirements (such as approved products listings)
that would assist a designer or builder.
Pts Poss. Scored
0.05 point 0.05 point
Publicizing the policies and procedures guide as available to the public.
Pts Poss.
0.05 point
Scored
0.05 point
7 11/20/2000
200.
GENER~'L
SECTION II
PLAN REVIEW
This section evaluates the plan review function to determine the following:
Staffing levels
Personnel experience
Performance evaluation schedules
Review capabilities, and level of review of construction documents for compliance with the adopted
building code for the jurisdiction being graded
205. EXISTING STAFFING
Maximum Points Possible
Points Scored
9.00 points**
5.76 point(s)
Staffing levels sufficient to assure comprehensive reviews of construction documents for compliance with
the adopted building codes.
** Maximum allowable points = points achieved in item 215 x item 205
points possible in item 215
210.
1.50 points
EXPERIENCE OF PERSONNEL
Maximum Points Possible
Points Scored
1.21 point(s)
5 years or greater experience in plan review of plan review staff.
215.
Maximum Points Possible
11.50 points
DETAIL OF PLAN REVIEW
Points Scored
11.50 point(s)
The credit for the comprehensiveness of plan review is as follows:
Plan reviews conducted on all proposed l&2 family dwelling construction or dwelling
additions/modifications.
Note: When plan reviews are not being conducted the community classification will be a Class 99 for
and 2family dwellings and the "Pts Scored" will default to the maximum possible in order to determine
the community classification for commercial/industrml property.
Pts Poss. Scored
5.00 points 5.00 point(s)
Comprehensive review of plans performed even if they were prepared and sealed by a registered design
professional certified in the appropriate field of work.
Pts Poss. Scored
1.50 points 1.50 point(s)
8 11/20/2000
Structural plan reviews conducted for all proposed building construction or building
additions/modifications including a review of engineering calculations.
Pts Poss. Scored
2.00 points 2.00 point(s)
A means to evaluate, or reference evaluation service reports, for substitute products and/or materials for
conformance with the intent of the structural portions of the adopted building codes.
Pts Poss. Scored
1.00 point 1.00 point
A detailed checklist used with each plan review to assure all pertinent building code issues have been
considered.
Pts Poss.
1.50 points
The checklist becomes a part of the permanent record of the project address.
Pts Poss.
0.50 point
Scored
1.50 point(s)
Scored
0.50 point
220. PERFORMANCE EVALUATIONS FOR QUALITY ASSURANCE
Maximum Points Possible 1.00 point
Points Scored 1.00 point
Credit for quality assurance programs for plan reviewers is as follows:
Annual employee performance evaluations.
Pts Poss. Scored
0.50 point 0.50 point
"Follow-up" plan reviews by a different plan reviewer conducted semiannually.
Pts Poss.
0.50 point
Scored
0.50 point
9 l I/20/2000
300.
GENERAL
SECTION III
FIELD INSPECTION
This section evaluates the field inspection function to determine the following:
Staffing levels
Personnel experience
Performance evaluation schedules
Review capabilities and level of review of building construction
305.
9.00 points
EXISTING STAFFING
Maximum Points Possible
Points Scored
7.00 point(s)
Staffing levels sufficient to assure comprehensive reviews of building construction for compliance with the
adopted building codes.
310. EXPERIENCE OF PERSONNEL
Maximum Points Possible
Points Scored
3.00 points
2.76 point(s)
5 years or greater experience in field inspection.
2 years or greater of construction related experience.
Pts Poss. Scored
1.50 points 1.26 point(s)
Pts Poss. Scored
1.50 points 1.50 point(s)
315.
CORRECTION NOTICES AND STOP WORK ORDERS
Maximum Points Possible
Points Scored
0.50 point
0.50 point
Building department authority to issue correction notices and stop work orders for non-compliant
construction.
320. INSPECTION CHECKLIST
Maximum Points Possible 2.00 points
Points Scored 1.50 point(s)
A detailed checklist completed for each building construction project to assure that all pertinent building
code issues have been considered.
Pts Poss. Scored
1.50 points 1.50 point(s)
10 11/20/2000
The checklist becomes a part of the permanent record of the project address.
325.
Pts Poss. Scored
0.50 point 0.00 point
Maximum Points Possible 1.50 points
SPECIAL INSPECTIONS
Points Scored
1.50 point(s)
Where necessary to assure structural integrity, the building department requirement for special inspections
for specific structural elements conducted by professional inspectors who have been certified for such
work.
Pts Poss. Scored
0.75 point 0.75 point
The certification being obtained by a combination off
Examination
Experience in the field of inspection they will be performing
An interview by the building official to assess qualifications
Pts Poss. Scored
0.25 point 0.25 point
Pts Poss. Scored
0.25 point 0.25 point
Pts Poss. Scored
0.25 point 0.25 point
330.
INSPECTIONS FOR NATURAL HAZARD MITIGATION
Maximum Points Possible 1.50 points
Points Scored 1.50 point(s)
When there are construction mitigation measures defined in the adopted building code for the natural
hazard(s) peculiar to the area being graded, special inspections that focus on compliance with the
provisions of the code.
335. FINAL INSPECTIONS
Maximum Points Possible
Points Scored
2.50 points
2.50 point(s)
Final inspections performed on all buildings after the construction is completed and the building is ready
for occupancy.
Final inspections performed for 1 & 2 family dwellings.
Final inspections performed for all other buildings.
Pts Poss. Scored
1.25 points 1.25 point(s)
Pts Poss. Scored
1.25 points 1.25 point(s)
11 11/20/2000
340. CERTIFICATE OF OCCUPANCY Maximum Points Possible 2.00 points
Points Scored 2.00 point(s)
Certificates of occupancy issued by the building department after the construction is completed and prior to
the building being occupied.
Certificates &occupancy issued for 1 & 2 family dwellings.
Pts Poss. Scored
1.20 points 1.20 point(s)
Certificates of occupancy issued for all other buildings.
Pts Poss. Scored
0.80 point 0.80 point
345.
PERFORMANCE EVALUATIONS FOR QUALITY ASSURANCE
Maximum Points Possible
Points Scored
1.00 point
1.00 point
Credit for quality assurance programs for field inspectors is as follows:
Annual employee performance evaluations.
Pts Poss. Scored
0.50 point 0.50 point
"Follow-up" field inspections by a different field inspector conducted semiannually.
Pts Poss. Scored
0.50 point 0.50 point
12 11/20/2000
Jurisdiction: ELK RIVER
State: MINNESOTA
Survey Date: FEB 14, 2000
Total points: 73.45
Classification:
1 & 2 Family Dwellings - 4
All Other Construction - 4
Section 1 37.81
Section 2 19.47
Section 3 20.26
Subtotal 77.54
Item 105 9.40
FINAL SCORING
The final score is determined by a relationship between Item 105 and the
balance of the scoring.
Points achieved in Item 105
[{(Section I + Section II + Section III) -Item 105} x P--~mts~ in Item 1'-~] + Item 105
[{(37.81 + 19.47 + 20.26)- 9.40} x (9.40 / 10.00] + 9.40 = 73.45
Classification Point Spreads Classification Point Spreads
I 93.00 - 100.00 6 51.00 - 60.99
2 85.00 - 92.99 7 39.00 - 50.99
3 77.00 - 84.99 8 25.00 - 38.99
4 69.00 - 76.99 ~" 9 10.00 - 24.99
5 61.00 - 68.99 10 0.00 - 9.99
13 11/20/2000