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HomeMy WebLinkAboutItem 06.i10/17/2011 Proposed Action Staff recommends adoption of the following motion: Move to approve the Request for Proposals (RFP) to be distributed to obtain proposals for contracted electrical inspections. Passage of this motion will result in the city contracting with an independent electrical inspector to provide electrical inspections for the City of Lakeville. Overview Primary Issues to Consider REQUEST FOR PROPOSALS (RFP) FOR CONTRACTED ELECTRICAL INSPECTION SERVICES Item No. At the City Council Work Session on June 27, 2011, it was the consensus of the Council to direct staff to explore contracting with an electrical inspector and develop service levels to be included in the Request for Proposal (RFP). At the City Council Work Session on September 26, 2011, staff was instructed to proceed with the service levels presented and develop an RFP for electrical inspection services. Upon council approval of the attached RFP, staff will distribute the RFP to qualified electrical inspectors, receive proposals; evaluate and interview perspective contract electrical inspectors. Subject to identifying a qualified candidate, a proposed contract would be brought forward to the City Council for approval in December with an effective date of January 1, 2012. • What service levels can be expected with the contracted Inspector and what are the anticipated budget savings with going to a contracted inspector? (See attached memos dated 9/20/2011.) Supporting Information • Memos from City Administrator Steve Mielke and from Building Official Gene Abbott dated 9/20/2011. • Request for Prop. .'s (RFP) for Electrical Inspection Services D - °L. Olson Community and Economic Development Director Financial Impact: $ Budgeted: Y/N Source: Related Documents (CIP, ERP, etc.): Notes: CITY OF LAKEVILLE REQUEST FOR PROPOSALS CONTRACTED ELECTRICAL INSPECTION SERVICES I. INTRODUCTION This request has been prepared by the City of Lakeville to retain the services of a contract Electrical Inspector from January 1, 2012 to December 31, 2012. All proposals or inquiries should be sent to: Gene Abbott Building Official City of Lakeville 20195 Holyoke Avenue Lakeville, MN 55044 (952) 985 -4441 gabbott@ci.lakeville.mn.us All proposals must be received no later than 4:30 p.m. on November 4 , 2011. II. PROPOSAL CONTENT A. Inspector Profile -- General services for Electrical Inspector: 1. Provide electrical inspections to verify compliance with applicable electrical codes and ordinances meeting the standards established by the Building Official. 2. Maintain qualifications for electrical inspectors per Minnesota Statute 326B and applicable laws. B. Fees are usually based on a percentage of the electrical permit fee. The proposal must include a percentage of the fees for the city and contractor or other proposed fee split. C. Electrical Inspector Proposal/Resume shall include: 1. Full name, local address and telephone number of applicant. 2. • Experience and qualifications of proposed Electrical Inspector. 3. The qualifications and resumes of those who will be responsible for providing back up support to the Electrical Inspector, as needed. 4. List and describe any previous or current municipal experience /contracts for electrical inspections, specify activities performed, and the name of a person who may be contacted at the municipality. E. Scope of Work: 1. Receive inspection requests and schedule your own inspections. 2. Perform inspections on the day requested, except as approved by the city. 3. Perform electrical inspections for compliance with the applicable version of the State Electrical Code and related laws, rules and city ordinances. 4. Be available by phone during established hours, as determined by the city, to receive calls related to code requirements, inspection procedures and other electrical inspection matters. Hours are generally, Monday — Friday 8:00 a.m. to 4:30 p.m. 5. Daily report submitted to the Inspections Department by hand delivery, email or fax detailing all electrical inspections approved and not- approved. 6. Submit semi - monthly invoices of completed final approved electrical permits. 2 7. Be available on an as needed basis to meet customers at scheduled appointment times and locations. 8. Be available for inspections, consultation, meetings and other inspection related duties that may not be associated with an electrical permit. 9. Write correction notices and perform follow up inspections as needed to obtain compliance. 10. Follow inspection policies as established by the city. 11. Provide a city approved back up plan that indicates how inspections will be performed during high volume periods, sick days, vacation time, etc. 12. The electrical inspector will be responsible for transportation, phone.and all costs necessary to complete the inspections. 13. The Electrical Inspector shall report directly to the Building Official. E. City of Lakeville will conduct the following: 1. Receive electrical permit applications and appropriate fees 2. Issue electrical permits. 3. Provide inspection approval stickers and correction notices. 4. Input inspection results and maintain permit and inspection records. 5. Pay the electrical inspector semi- monthly for completed permits. F. Insurance coverage required a. A single limit or combined limit or excess umbrella general liability insurance policy of an amount of not less than $1.000,000 for property damage arising from one occurrence, $1,000,000 for bodily injuries, damages, and/or death to any one person, and $1,500,000 aggregate, for total bodily injuries, damages, and/or death arising from any one occurrence. Such policy shall also include contractual liability coverage by specific endorsement or certificate acknowledging the contract between the Consultant and the City. b. A single limit or combined limit or excess umbrella automobile liability insurance policy, if applicable, covering owned, non -owned and hired vehicles used regularly in the provision of services under this Agreement, in an amount of not less than $1,000,000 per accident for property damage, $1,000,000 for bodily injuries, damages, and/or death to any one person, and $1,500,000 aggregate, for total bodily injuries, damages, and/or death arising from any one occurrence. c. A professional liability insurance policy covering personnel of the Consultant while performing services under this Agreement in the following amounts: Errors and omissions $1,000,000 per occurrence and $1,500,000 aggregate, for total damages arising from any one occurrence. d. Workers Compensation Insurance and employer's liability as required by law including all states endorsement in an amount of $100,000 for each occurrence. Prior to the effective date of this contract, and as a condition precedent to this contract, the Contractor will furnish the City with Certificates of Insurance listing the City as a certificate holder. e. If Contractor's work involves working with, or the potential release of, a hazardous substance, then the Contractor shall be required to procure double the insurance policy limits of those noted above. 3 III. PROPOSAL EVALUATION AND CONTRACT AWARD A. The City intends to award a contract to the proposer evaluated to be best qualified to perform the work for the City. B. The City shall not be liable for any expenses incurred by the proposer including but not limited to expenses associated with the preparation of the proposal, attendance at interviews, preparation of a cost proposal or final contract negotiations. C. The City of Lakeville reserves the right to reject any and all proposals or to request additional information from all proposers. IV. CONTRACT EXECUTION A. Contract Negotiations — Notwithstanding a contract award, the City reserves the right to negotiate the final terms and conditions of the contract to be executed. Should the City and the proposer(s) to whom the contract(s) is recommended to be awarded be unable to mutually agree upon the entire contract, the City reserves the right to discontinue negotiations, select another proposer or reject all of the proposals. Upon completion of negotiations agreeable to the City and proposer, a contract shall be executed. B. Payment - Payment will be made on a semi - monthly basis for completed permits. Permits issued prior to the start of the contract and finaled during the contract time frame will be prorated based on a percentage of electrical inspections conducted over the total number of electrical inspections. Likewise, permits issued during the contract but not final approved until after the contract has expired will be prorated based on a percentage of electrical inspections conducted over the total number of electrical inspections. C. Contract Ethics 1. No elected officials or employee of the City who exercises any responsibilities in the review, approval or implementation of the proposal or contract shall participate in any decision which affects his or her direct or indirect personal of financial interest. 2. It is a breach of ethical standards for any person to offer, give or agree to give any City employee, or Council person or for any City employee, or Council person to solicit, demand, accept or agree to accept from another person or firm, a gratuity or an offer of employment whenever a consideration was motivated by an individual, group or corporate desire to obtain special, preferential, or more favorable treatment than is normally accorded to the general public. 3. The contractor shall not assign any interest in this contract and shall not transfer any interest in the same without prior written consent to the City. 4. The contractor shall not accept any client or project, which, by nature, places it in an ethical conflict with its representation of the City of Lakeville. 5. The contractor selected shall not discriminate under the contract against any person in accordance with federal, state or local regulation. 4 Memorandum To: Mayor and City Council Members From: Steven C. Mielke, City Administrator CC: David L. Olson, Community and Economic Development Director Gene J. Abbott, Building Official Date: 9/20/2011 Subject: Lakeville Electrical Inspections program City of Lakeville Administration Since 2004 the City has employed a full -time Electrical Inspector. Prior to that, electrical inspections were performed by a State of MN contracted electrical inspector. At the June 27 Council Work Session the Council directed staff to look at different • options for the City's Electrical Inspection program. Several options were discussed briefly at the June Work Session including turning electrical inspections back to the State or having the City contract for electrical inspections. The majority of the Council did not support going back to the State for electrical inspections but did direct staff to explore the option of the City contracting with a private electrical inspector. The attached memo and comparison spreadsheet prepared by Building Official Gene Abbott compares the contracted electrical inspection programs in the cities of Apple Valley (which started their program earlier this year), Shakopee and Woodbury. The comparison table attempts to compare the costs and service levels that are being provided in each of the cities as well as the City's current program. It also includes recommended requirements or standards to be included if the City were to issue a Request for Proposals (RFP) for contracted electrical inspection services. For the first five years after the City took over electrical inspections, permit revenue exceeded direct expenses. For the past two years, expenses have exceeded revenues and it is anticipated that this trend will continue for the next several years with deficits likely ranging from $5,000 - 20,000 annually. Switching to a contracted service provider would eliminate the potential of a subsidy of this service and in fact will result in a positive cash flow for the City. It should also be noted that Mr. Abbott's analysis points out that the level of service will be lessened with a contracted service. The Council should weigh both the service implications against the cost of a higher level of service. Staff is able to recommend the contracted service as provided in many similarly situated cities. Memorandum To: Steven Mielke, City Administrator David Olson, Community and Economic Development Director From: Gene J. Abbott, Building Official Date: 9/20/2011 Subject: Lakeville Electrical Inspections program City_of Lakeville_ Building Inspections At a City Council Work Session in January, 2011, City Council had requested that staff review our Electrical Inspection program and explore the options available to the city for providing issuance of electrical permits and field inspection services to Lakeville customers. Staff also evaluated past and present service levels to determine if the city was providing the most cost effective, quality service that our customers require. Staff identified three options for the city to consider in providing Electrical Permit and Inspection services to our customers. • Page 1 ❑ Option 1 was to transfer the program back to the State of Minnesota Electrical Division similar to what was done prior to 2004. ❑ Option 2 was to contract with an Electrical Inspector and issue permits locally. ❑ Option 3 was to continue to provide our own Electrical Inspector and issue permits and conduct electrical inspections locally. At the City Council Work Session on June 27, 2011, there was consensus of the council that the city would not turn the program back to the State of Minnesota. Staff was instructed to explore the possibility of Option 2 to contract with an Electrical Inspector and issue permits locally. Such a program is in existence in the Cities of Apply Valley, Shakopee and Woodbury. I contacted each of the three cities and obtained a copy of their contracts with their contracted Electrical Inspectors. I have compiled the results of each of the different service levels and requirements in each of the contracts and listed them in the attached comparison table. The last column is staffs recommendation of items that should be included in the request for proposal (RFP) if the Council wishes to proceed with option 2 and contract with an Independent Electrical Inspector.