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9.c)1 & 2) Ordinance Authorizing City to Issue Permits and Agreemjent for Electrical Inspections Meeting Date: 07/19/2011 Agenda Item: � �) / i �` � ` f � rr City Council Agenda Report City of Scandia 14727 209�' St. North Scandia, MN 55073 (651) 433-2274 Action Requested: 1. Adopt an ordinance authorizing the City of Scandia to issue electrical permits, and 2. Approve an agreement with Dave Kichler Inspections Inc. to perform electrical inspections. Deadline/Timeline: Ordinance would be effective upon adoption; contract would be effective July 20, 2011. Background: • Most cities in Minnesota, including Scandia, rely on the state to issue electrical permits and perform electrical inspections within their jurisdictions. • One consequence of the Minnesota state government shut-down is that state electrical permits and inspections have been halted, stalling construction projects throughout the state. Property owners and contractors working in Scandia are already affected. • Because of the impacts of the shut-down many cities are deciding to take over this function, either permanently or temporarily,by adopting an ordinance and engaging the services of a qualified inspector. • An ordinance following a model recommended by the League of Minnesota cities has been drafted. Scandia would begin issuing electrical permits immediately, adopting the state's existing fee schedule by reference. It would continue in effect after the state shut-down ends. • Currently, the state contracts with Dave Kichler Inspections, Inc. to perform elecfical inspections in Scandia and a number of other surrounding communities (including Forest Lake, Hugo and Lino Lakes.) He has offered to contract directly with the city. He would be compensated with 80%of the permit fee. The remaining 20%would remain with the city to cover its administrative costs. • The proposed contract is similar to contracts entered into by neighboring cities, and has been reviewed by the City Attorney. • Issuing electrical permits in conjunction with other permits would not be a significant administrative burden for the city. Any costs Page 1 of 2 07/14/11 would be covered by the city's share of the permit fee. • Some cities are adopting their own fee schedules rather than relying on the state fee schedule. There is some concern about whether this is permissible. The fee schedule can be re-visited in the future should the city determine its costs justify higher fees. • Issuing permits locally will also improve service to the public, even after the state shut-down ends. Contractors and property owners will be able to obtain electrical permits locally, and at the same time and place they obtain the other permits needed for their projects. Mr. Kichler has indicated that he is restricted by his state contract to performing inspections in Scandia only on Tuesdays and Thursdays. Under a contract with the city, he will be able to schedule inspections on any mutually-convenient day of the week. Future projects would not be affected by another state government shut-down. Recommendation: Staff recommends that the Council: 1. adopt the ordinance authorizing the City of Scandia to issue electrical permits; and 2. approve the agreement with Dave Kichler Inspections, Inc. Attachments/ • Draft Ordinance No. l27 Materials provided: . Inspection Fee Worksheet • Draft Agreement with Dave Kichler Inspections, Inc. Contact(s): Dave Kichler, 651 462-6829 Prepared by: Anne Hurlburt, Administrator (electrical permits and inspections) Page 2 of 2 07/14/11 CITY OF SCANDIA ORDINANCE NO. 127 AN ORDINANCE PROVIDING FOR ELECTRICAL INSTALLATION INSPECTIONS WITHIN THE CITY OF SCANDIA The City Council of the City of Scandia hereby ordains: ELECTRICAL INSTALLATION INSPECTIONS (A) Electrical inspections. It is the purpose and intent of this ordinance to establish an electrical inspections program in the City of Scandia that is administered and enforced by the City, as permitted in Minn. Stat. §326B.36, subcl.b. (B) Authority to inspect. The City of Scandia shall pravide for the inspection of all electrical installations, pursuant to Minn. Stat. §326B.36. subd. 6. (C) Adopted by reference. The Minnesota Electrical Act,as adopted by the Commissioner of Labor and Industry pursuant to Minnesota Statutes Chapter 326B, Sections 326B.31 to 326B.399 and known as the Minnesota Electrical Act is hereby adopted as if fully set out herein. (D) Compliance. All elect�ical installations shall comply with the requirements of the Minnesota Electrical Act, the Minnesota State Building Code and the ordinances of the City. (E) Permits and fees. Before commencing any installation of any electrical work regulated by this ordinance, a permit therefore shall be secured from the Building Department and the fee for such permit paid. The fee schedule set forth in Minnesota Statues §326B.37 is adopted by reference and incorporated herein. Permits for the installation of electrical work in new structures shall only be issued to electrical contractors duly licensed by the State. Permits for the installation, alteration, addition or repair of electrical work in existing structures shall only be issued to electrical contractors duly licensed by the State or to resident owners of property where the work is to be done. (F) Violations and penalties. Any person who violates any provision of this ordinance is guilty of a misdemeanor and, upon conviction thereof, shall be punished according to law. The city may also institute appropriate actions or proceedings to prevent, restrain, correct or abate violations or threatened violations of this ordinance. Adopted by the City Council of the City of Scandia this 19th day of July, 2011. Randall Simonson ATTEST: Mayor Anne Hurlburt Administrator/Clerk Request for Electrical , MINNE50TAUEi'ARTME�t7C7F Ins ection REI ermit f LABOR & INDUSTRY p ( ) (p ) � 443 Lafayette Road North St.Paul,MN 55155-4342 Phone: (657)284-5026 Inspection Fee Worksheet www.dli.mn.gov Item Description Quantity Fee Total*** 0 to 400 Amp Power Source $35/source 401 -800 Amp Power Source $60/source Over 800 Amp Power Source $ 100/source 0 to 200 Amp Circuit or Feeder $6/feeder or circuit Over 200 Amp Circuit or Feeder $ 15/feeder or circuit New One-or Two-Family Dwelling u to 30 circuits and feeders er unit $ 100/dwelling unit New One-or Two-Family Dwelling additional circuits over 30 er unit $6/feeder or circuit Existing One-or Two-Family Dwelling (where 15 or more feeders or circuits $ 100/dwelling unit are installed or extended er unit Existing One-or Two-Family Dwelling (where less than 15 feeders or circuits $6/feeder or circuit are installed or extended er unit Reconnected Existing Circuit or Feeder(for pane�board replacements) $2/feeder or circuit Separate bonding inspection $ 35/inspection Inspection of concrete-encased grounding electrode $35/inspection Technology circuits 8�circuits less than 50 volts 75¢/device or apparatus Additional inspection trip(s) $35/inspection trip Investigative Fee (enter values in the Quantity and Fee columns) Other... Other... Other... Other... TOTAL INSPECTION FEE is the fee calculated above, or$35 multiplied by the number of required inspection trips, whichever is greater. Enter Ins ection Fee Here 8 on REI » REI 10(4/11) REI_70_OneAndTwoFamily.doc(Revised 4/1/11) City Of Scandia Electrical Inspection Services Agreement This contract is made and entered into between the City Of Scandia, hereinafter identified as "City" and Dave Kichler Inspections Inc., hereinafter identified as "Contractor". WHEREAS, the City requires services to be provided for electrical inspection for electrical permits issued in the City; and WHERAS, the Contractor desires to and is capable of providing the necessary services according to the terms and conditions stated herein. 1. TERM. The term of this Contract shall begin July 20, 2011. 2. CONTRACTOR'S OBLIGATIONS The Contractor shall provide the following services: a. Provide qualified personnel to perform electrical inspections within two working days of notification by the electrical installer. b. Enforce the Minnesota Electrical Act and Rules as adopted and amended by the City and current National Electrical Code. c. Submit a report of completed inspections and invoice for completed electrical inspections with the completed permits. d. Cooperate with the City Building Official to resolve non-complying or incomplete electrical installations when the installers fail to comply with required standards. e. Notify the electrical utility for connection or re-connection of all electrical services installed, replaced or repaired for which an electrical permit is required. Contractors may call in for hook-ups on residential installations. 3. CITY'S OBLIGATIONS The City shall: a. Receive and process electrical permits and fees in accordance to its fee schedule. b. Assign a permit number. c. Forward a copy of the permit to the Contractor. d. Receive and process orders for payments and fees collected for fee shortages and extra or special inspections. e. Adopt the most recent version of the Minnesota Electrical Act. f. Adopt Minnesota Rules. 4. PAYMENT a. Compensation. The City shall pay the Contractor 80% of the permit fees collected for completed inspections. b. Invoices. The Contractor shall submit an invoice and request for payment on an invoice form acceptable to the City. c. Time of Payment. The City shall make payments to the Contractor within thirty days from the date of which the invoice is received. If the invoice is incorrect, or otherwise improper, the City shall notify the Contractor within ten days of receiving the incorrect invoice. Upon receiving the corrected invoice from the Contractor, the City will make payment within thirty days. d. Payment for Unauthorized Claims. The City may refuse to pay any claim which is not specifically authorized by the Contract. Payment of the claim shall not preclude the City from questioning the propriety of the claim. 5. COMPLIANCE WITH LAWS AND STANDARDS a. General. The Contractor shall abide by all federal, state and local laws, statutes, ordinances, rules and regulations now in effect or hereafter adopted pertaining to this Contract. b. Licenses. The Contractor shall procure, at its own expense, all licenses or other certifications required for the provision of services contemplated by this Contract. The Contractor shall inform the City of any changes in the above-stated laws, standards, requirements, rules, etc., within five (5) days of occurrence. c. Minnesota Law to Govern. This Contract shall be governed and construed in accordance with the substantive and procedu�al laws of the state Of Minnesota, without giving effect to the principles of conflict of laws. All proceeding related to this Contract shall be venued in the State of Minnesota. 6. INDEPENDENT CONTRACTOR STATUS. The Contractor is an independent contractor and nothing herein contained shall be construed as to create the relationship of employer and employee between the City and the Contractor. The Contractor shall at all times be free to exercise initiative, judgment and discretion as to how to best perform services. The Contractor acknowledges and agrees that the Contractor is not entitled to receive any benefits received by City employees and is not eligible for worker's or unemployment compensation benefits. The Contractor also acknowledges and agrees that no withholding or deduction for State or Federal income taxes, FICA, FUTA or otherwise, will be made from payments due the Contractor and that it is the Contractor's sole obligation to comply with the applicable provisions of all Federal and State tax laws. 7. INDEMNIFICATION. The Contractor shall indemnify, hold harmless and defend the City, its officers and employees against any and all liability, loss, costs, damages, expenses, claims and actions, including attorney's fees which the City, its officers or employees may hereafter sustain, incur or be required to pay arising out of or by reason of any negligent or willful act or failure to adequately perform the Contractor's obligations pursuant to this Contract. 8. INSURANCE. a. Professional Liability Insurance — The Contractor must provide and maintain in force professional liability insurance in form approved by the City with limits of at least $500,000 per occurrence and $1,000,000 aggregate for each person performing inspections under this Contract and naming the City as additional insured. b. Automobile Liability. The Contractor must provide a certificate of automobile insurance with liability limits of not less than $500,000 per occurrence for each person performing inspections under this Contract. c. Worker's Compensation. If applicable, the Contractor shall procure and maintain a policy that at least meets the statutory minimum. d. Certificates. Upon execution of this Contract, the Contractor shall file copies of insurance certificates with the City. e. Failure to Provide Proof of Insurance. The City may withhold payments or immediately terminate this Contract for failure of the Contractor to furnish proof of insurance coverage or to comply with the insurance requirements as stated above. f. Non-Waiver. Nothing in this Contract shall constitute a waiver by the City of any statutory limits or exceptions to liability. 9. SUBCONTRACTING. The Contractor shall not enter into any subcontract for the performance of the services contemplated under this Contract nor assign any interest in this Contract without prior written consent of the City and subject to such conditions and provisions as are deemed necessary. The Contractor may have another inspector fill in for it from time to time or in the case of sickness or while on vacation. 10. TERMINATION. This Contract may be terminated with or without cause by either party upon thirty (30) days written notice. 11. CONTRACT RIGHTS/REMEDIES. a. Rights Cumulative. All remedies available to either party under the terms of this Contract or by law are cumulative and may be exercised concurrently or separately, and the exercise of any one remedy shall not be deemed an election of such remedy to the exclusion of other remedies. b. Waiver. Waiver for any default shall not be deemed to be a waiver of any subsequent default. Waiver of breach of any provision of this Contract shall not be construed to be a modification of the terms of this Contract, unless stated to be such in writing and signed by authorized representatives of the City and the Contractor. The PARTIES hereto have executed this Contract as of the year and date listed below. Dated July 19, 2011 City of Scandia By: Randall Simonson, Mayor By: Anne Hurlburt, Clerk/Administrator Contractor: Dave Kichler Inspections Inc. By: Its President