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09.a1 PermitWorks Proposal and Budget Amendment Staff Report Date of Meeting: March 21, 2023 To: Mayor & City Council From: Brenda “Bee” Stignani, Office Assistant Colleen Firkus, Treasurer Re: PermitWorks Software Proposal Issue: The City of Scandia (Scandia) contracts with the City of Hugo (Hugo) for building inspections and plan review services to fulfill Scandia’s obligation to administer State Building Code requirements for all Building Permits (includes Demolition, Mechanical, and Plumbing permits.) Hugo uses PermitWorks to manage their building permitting process and requests Scandia consider purchasing a license also. Background: Applications for building permits are paper forms, created and maintained by Scandia office staff. Applicants submit these forms in paper or scanned to submit electronically. Office staff process each application, determining if Zoning Approval is necessary (City Administrator or City Planner), if a Plan Review is required (Hugo), or if a permit may be issued directly after calculating fees and processing payment. Applications are sent electronically to Hugo where the permit fee is calculated after the plan review is complete. Hugo creates an Inspection Card which is added to the material returned to Scandia. Office staff communicates with the applicant, collects payment, generates a permit number, and provides copies of all documents to both the applicant and Hugo while maintaining additional records for the Building Official and City Assessor. Applicants schedule inspections directly with Hugo for all issued building permits. Inspection Cards are emailed to Scandia after final inspections or closure after 180 days of inactivity, to be filed in the Property Record folder associated with each unique PID in Scandia. This is the simplified explanation of the process for all building permits. PermitWorks is a tool to automate the permitting process, increase access to real-time information available to both Scandia and Hugo, simplify documentation, and reduce the cost to Scandia to process permits by reducing staff time allocated to the process. Hugo uses PermitWorks, but must maintain a separate system for Scandia’s permits. Over the past five years, Scandia has issued an annual average of 300 Building Permits. Multiple significant storms in 2017 increased this number to 750. In addition to automating permits administered by Hugo, Scandia could use PermitWorks for other permits including Electric, Grading and Land Alteration, Driveway Access, Right-of-Way and other Planning and Zoning applications. PermitWorks can be configured to interact with Laserfiche Forms, to create publicly accessible, online permit applications and automate every aspect of issuing permits, but it is cost prohibitive at this time. Our vendor (OPG-3) for Laserfiche support services estimates 120 billable hours (at $205 per hour) to configure Laserfiche Forms to be integrated with PermitWorks. This could be considered in the future as the number of permits increases. Fiscal Impact: PermitWorks has provided an estimate of $8,440 for 2023. • $4,995 – one time license fee • $1,121 – prorated April-December 2023 annual Software Support Plan Fee ($1,495 Annual Software Support Plan Fee thereafter) • $1,950 – Implementation & Training Services (15 estimated hours @ $130/hour) Budget Impact: • Funding can be found with shifting $8,440 from the 2023 General Fund Community Center budget to the Planning and Building budget. Charles Fischer, Public Works Director, has agreed that the $6,000 for a furnace for the Annex is not a necessary scheduled replacement and there have been no issues with that furnace. The balance of $2,440 can be reallocated from the Community Center Repair Machine/Equipment which has a $5,000 budget. In 2022 only 11% of that $3,000 line item was spent. Recommendation: I recommend that the Council 1) authorize a contract with PermitWorks to purchase the Permits & Inspections module; and 2) approve Resolution No. 03-21-23-06 to amend the 2023 General Fund budget. A PROPOSAL FOR: City of Scandia 2023 The following is a proposal for the implementation of PermitWorks ™ application at the City of Scandia. The proposal outlines the implementation process; documents the tasks involved and provides our estimated fees. About PermitWorks™ PermitWorks™ is an integrated portfolio of specialized software applications designed to simplify and manage the processes within building, community development and other municipal departments. Its modular nature allows each application to function completely on its own allowing the City to implement PermitWorks™ according to its objectives and budget. However, implementing the modules simultaneously (or over time) produces an integrated system that allows for the sharing of data and functionality without unnecessary duplication. ▪ GeoBase & Planning. GeoBase is an easy-to-use software application for storing property information in a central database for all other modules to access. Records are linked to the property identification number allowing a use r to view activity (i.e. permits, licenses, and planning issues) that exists on a given property. Planning allows staff to track various planning issues, such as conditional use permits, variances, rezoning, preliminary and final plats and so on. It also provides a suitable system for tracking complaints. ▪ Permits & Inspections. Permits & Inspections automates the permitting and inspection processes. It stores permit records, calculates fees, and generates standard reports, including the MN State Surcharge Report. It provides a method for managing inspections by allowing inspectors the ability to schedule inspections and record results. It produces numerous inspection status reports as well as inspection tickets and Certificate of Occupancies. ▪ Licenses. Business, Contractor, and Animal Licenses module automates the licensing processes. It stores license records, calculates fees, and generates standard reports. It provides a method for tracking incidents for business licenses, and it interfaces with permits for contractor licenses. PermitWorks suite of applications in 1993. The software products were designed by combining the in - depth knowledge of numerous public sector professionals and governmental auditors with the technical skill of in - house programmers. Today, PermitWorks continues to be a customer-driven application. PLACE LOGO OR COMPANY NAME HERE Software Modules License Fee Annual SSP Permits & Inspections $ 4,995.00 $ 1,495.00 Sub-Total $ 4,995.00 $ 1,495.00 Implementation & Training Services Est. Hours Rate Fee Database Installation & Initial Configuration 1 $ 130 $ 130.00 Client Installations 1 $ 130 $ 130.00 Parcel Data Conversion Estimate 2 $ 130 $ 260.00 Permits & Inspections Module Configuration Estimate 7 $ 130 $ 910.00 Training Estimate 4 $ 130 $ 520.00 Training & Services Estimate Sub-Total 15 $ 1,950.00 Data Conversion Before PermitWorks™ can be rendered operational, the parcel database must be populated with client property information. Typically, converting an existing database is the most effective method to achieve this task. The data source must include PIN, short legal description (i.e. plat name, block and lot), the property address number and street name and owner last name (or company name). Optional fields include long legal description, zoning district and owner mailing address. The County is a common source for property data. Data conversion takes place prior to the installation of the software. The time required for data conversion greatly depends on the format and quality of the data source. Ideally, the data should be submitted in an MS Access or .dbf file format with the required data stored in separate fields. ASCII (either comma delimited or fixed field length) file format is also acceptable. There are two steps in the data conversion process. The first step is the initial data import. Queries ar e created to convert data from the third -party database structure to the PermitWorks™ database structure. After the queries have been created and tested, the data is imported into PermitWorks ™. The second step is standardization of the imported data. Fo llowing the initial conversion, the PermitWorks™ property table is populated with unmodified data. Standardization involves running queries against street and subdivision data to clean up inconsistent records. Standardization reduces the possibility of le ngthy, unsuccessful searches which often result in the entry of duplicate records. Total Project Cost Software License $ 4,995.00 Implementation & Training Services $ 1,950.00 Annual Software Support Plan April 2023 – Dec 2023 $ 1121.00 Total $ 8,440.00 SCOPE OF SERVICES Installation PermitWorks™ databases are placed the network server and initial configuration is done; client software is installed on the workstations. Data files will be empty and ready for population. The number of workstations requiring access to the software and any unforeseen hardware incompatibilities can directly affect the amount of time required to install the program. If your network administrator is not present at the time of installation, PermitWorks personnel will need administrator-level access to the workstations to be able to install. PermitWorks will work with you to schedule a time that is most convenient for staff. Implementation & Configuration The implementation of PermitWorks™ takes a coordinated effort from PermitWorks and city staff. PermitWorks uses a dedicated and experienced staff to manage a system implementation. Our staff works closely with you thro ugh all phases of implementation, from planning to post-installation support, so that you can achieve a greater level of productivity quickly and efficiently. The city’s level of participation during the configuration process and the amount of time the city dedicates to training has a direct impact on the total cost and success of implementation. The city chooses how much they want to invest in internal resources (city staff) and outside resources (PermitWorks). Utilizing PermitWorks implementation services significantly shortens the implementation cycle resulting in an operational system more quickly. Training Any type of change impacts the current level of productivity. A new system can only enhance productivity beyond its current status if a user knows how to use it. Therefore, training is an essential component of the successful implementation of a new system. With proper training, staff can quickly benefit from the new tools and realize an efficiency gain sooner. Application training is tailored to the needs and objectives of the city. PermitWorks staff will work with the city to establish a training schedule that is conducive with its workload and staffing requirements. Our goal is to ease the transition to the new system by educating and provid ing staff with the necessary skills to give them more confidence in our application as well as in their performance abilities. At the conclusion of training, the user will be capable of using PermitWorks™ in an efficient manner to accomplish the various ac tivities within the system. End-user training focuses on the features and functions of the application used to perform routine transactions and activities such as issuing permits, recording inspections, and generating reports. Thank you for the opportunity to provide this proposal for PermitWorks™. If you should have any questions regarding it, please email us at support@permitworks.com. We look forward to the possibility of working with you and the staff at the city of Scandia soon. Sincerely, Kenzie Christensen PermitWorks Updated 2/16/23 CITY OF SCANDIA RESOLUTION NO: 03-21-23-05 RESOLUTION AMENDING THE 2023 GENERAL FUND BUDGET WHEREAS, on December 21, 2022 the Scandia City Council adopted Resolution 2022-46 approving the 2023 Operating and Capital Budget, and WHEREAS, the City of Scandia contracts with the City of Hugo for building inspection and plan review services, and WHEREAS, the City of Hugo uses PermitWorks to manage their building process and has requested Scandia considering purchasing a license also, WHEREAS, PermitWorks is a tool to automate the Scandia’s permitting process, increase access to real-time information available to both Scandia and Hugo, simplify documentation, and reduce the cost of staff time to Scandia to process permits, including City of Scandia permits for Electric, Grading and Land Alteration, Driveway Access, Right-of-Way, and other Planning and Zoning Applications, NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCANDIA, WASHINGTON COUNTY, MINNESOTA, that it should and hereby does amend the 2023 Budget as follows: Line Item: Description Change: 101-41910-309 Software Support – Permit Works addition + $8,440.00 101-45180-520 101-45180-404 Community Center Capital Improvements Community Center Repair Machinery/Equipment - $6,000.00 - $2,440.00 Adopted by the Scandia City Council this 21st day of March, 2023. ________________________________ Christine Maefsky, Mayor ATTEST: ___________________________________ Anne Hurlburt, Interim City Administrator