Administration - Erik Thorvig, Community Development Director
Title
Title
Approval of Contract with Inspectron, Inc. for Contract Residential Building Inspection Services
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Executive Summary
Due to unanticipated large commercial projects, which includes multiple apartments and increasing level of residential single-family & townhome construction, staff is requesting contracting for back-up residential inspection services.
Background
Residential single-family home and townhome construction has increased recently which has affected the typical customer standard of one-week plan review and five-day inspection lead time. In 2021, 527 single-family/townhome units were permitted versus 267 the prior year. Contracting with a company to provide additional residential inspections accomplishes increased levels of customer service, mainly related to reduced timing for residential inspections and plan review. It also will shift time from commercial inspectors, who also perform residential inspections, and our residential inspectors to assist with the apartment projects.
Staff solicited bids from three different companies that perform contract building inspection services. The request was for a residential inspector that would work five days per week for seven months (May - November). Bids were received from Inspectron Inc., MNSPECT, and Rum River Consultants. Bid amounts were as follows:
Inspectron Inc. - $78,400 ($70/hr.)
MNSPECT - $89,600 ($80/hr.)
Rum River Consulting - $134,400 ($120/hr.)
The City of Blaine has issued three apartment projects in 2022 (the fourth project was permitted at the end of 2021). Permit revenue for the three projects is $730,361. The finance department estimated overall building permit revenues for 2022 to be $1.3M. Based on discussions with the Finance Department, the influx of revenue from the apartment projects will create approximately $600,000 in additional revenue not projected as part of the 2022 budget. Therefore, the cost of hiring a contractual residential inspector would be funded through the revenue from the three apartment projects issued in 2022.
Because apartment construction/inspections are typically over a 16-18-month period, an assessment of possible future inspection services will need to be made before the contract expires. Hiring a contractor to assist in this work is a preferred method versus hiring a full-time staff person as the level of need will likely decrease at some point in the future.
Inspectron, Inc. was organized in 1996 to provide quality Building Code Compliance services to municipalities. Since 1996, Inspectron, Inc. worked on a variety of building projects, both commercial and residential, with over 40 cities, townships, and jurisdictions. The combined years of service provide Inspectron, Inc. the knowledge necessary to help identify the needs of the community. They administer and perform all functions of Building and Zoning Code compliance and administration, Rental Housing Inspection Programs, and Individual Sewage Treatment systems. By working with community leaders, property owners, and contractors, they ensure protection of the health, safety, and welfare of the community.
Financial Impact
This need was not identified in the 2022 budget. The City of Blaine has issued three apartment projects in 2022 (the fourth project was permitted at the end of 2021). Permit revenue for the three projects is $730,361. The finance department estimated overall permit revenues for 2022 to be $1.3M. Based on discussions with the finance department, the influx of revenue from the apartment projects will create approximately $600,000 in additional revenue not projected as part of the 2022 budget. Therefore, the cost of hiring a contractual residential inspector is covered through the revenue from the three apartment projects issued in 2022.
Staff Recommendation
By motion, accept the proposal by Inspectron, Inc. for residential building inspection services and authorize the City Manager to execute any necessary contracts.
Attachment List
Inspectron, Inc. Bid
MNSPECT Bid
Rum River Consulting Bid