02-23-2015 Council Packet - Laserfiche WebLink

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MEMORANDUM To: Jessica Loftus, City Administrator From: Ron Olson, Finance Directo� Subject: Building Department Discussion Date: February 23, 2015 The attached information is designed to provide you and the Council with financial data for use in the discussion on replacing the Building Inspector. I have prepared a table based on the revenue average for 2013 and 2014. Because the current Building Official is at the top step of the wage scale while a new hire will be at a lower step, the table was prepared including costs based on the starting and top wage steps. The 35% contract fee is consistent with the costs charged by Metro West to provide the plan review function to other municipalities. The other charges include inspections and functions provided by the Building Official that are not related to plan review. These charges are calculated at $55 per hour for 20 hours of work per week(see cost by function for time allocation). As illustrated in the attached job description, the Building Official performs duties other than just plan review. A time analysis indicates that only 30 % of the position's time is actually spent on plan review. Based on current wages and benefits, the plan review function currently costs the city $30,400. This is approximately half of the cost the City would incur by outsourcing the position. It is also almost completely offset by the revenues received from providing contract services to Minnetonka Beach. If it is decided that the position is to be eliminated, the other 70% of the position's duties will have to be contracted for or eliminated. Communications involves responding to inquires about issues that are not related to a specific plans being reviewed. Similarly,the front counter support involves questions with building codes, city requirements, and other general building inquiries. The position currently performs some building inspection, all zoning and burning permit inspections. The Planning and Zoning staff often need a building official's expertise when dealing with homeowners and contractors on variance applications. These functions need to be continued and are the service charges identified on the table. Based on the costs associated with contracting for the services it makes financial sense to keep the Building Official position in-house.