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Staff is currently exploring such things as ePermits, electronic/wireless field data entry, and streamlined/automated reporting; many of which have already been implemented. The current rate for contracted services with Inspectron is $50 per hour. Current service levels have required 40 hours per week of Building Official services and 20-30 hours per week of building inspection and plan review services. Specific to the Building Official function (not base inspection and plan review), it is assumed that the need is 2,000 hours of work hours required for the Building Official. The potential annual budgetary impacts are estimated at $100,000. However, in 2012, the budgetary impact was $91,000. Note: Due to the fact that the original contract was to provide building inspection and plan review services, and did not include providing Building Official services, it is anticipated that the contract may need to be revised to reflect the actual services provided in the future. Staff would recommend that the City remain with contract services for building inspection and plan review services on an as needed basis. Contracted services allow the City to respond better to seasonal variations in service level needs. In addition, the contracted services provide access to additional areas of expertise and review. However, contracted services for the Building Official role presents the possibility of disruption in the continuity of delivery of services . There are two (2) options to consider for providing Building Official services, depending on the level of guaranteed coverage the City Council is comfortable in providing. Option 1 would be to hire a Building Official as a regular, full-time employee of the City. This option would appear to be the preferred option if the City Council decides 40 hours of coverage per week is necessary year round. However, Option 2 would be to continue with contracted services for the Building Official. This option would be acceptable if the City Council is comfortable in assuming that the Building Official hours could be reduced in the non -peak times, thus creating some gaps in coverage. The City does not have full control over assignments directed by the contracted services. The contracted service could decide to re -assign its staff over time to other locations resulting in the loss of expertise and know how specific to Ramsey. As each community has slightly different processes, rates, and permit software, it is necessary to provide the individual contractor with professional development related to the City's unique features and culture. Naturally, there are direct and indirect costs involved in contractor development and staff is concerned with potential turnover. Staff would recommend an external recruitment to hire a full-time regular Building Official. Given the current fees paid for contracted Building Official services and the City's current Building Official pay scale, the net savings to the City could be approximately $16,000 the first year with continued savings in years 2, 3, 4, 5. Year 6 (step 6---top of the scale) would be the only year when costs would be slightly more than the contracted rate (approximately $1,972.00 more). These calculations include salary and benefits, are based on the 2012 pay scale, and are estimates only. The current contract for services is for $50 per hour. Since the City does not pay vacation time to the contracted employee, the maximum number of hours paid for a full-time equivalent is 2,000 hours ($50 x 2,000 hours = $100,000). Savings would still be realized in monitoring contracted inspection hours and using only as needed. Finally, it is anticipated that the rate may increase slightly if the City chooses to continue to contract for Building Official services, which is in addition to the original scope of the contract. The current supervision structure is proposed to remain in place, with the Development Services Manager leading the Planning Division and the Building Division. Note: The two (2) individuals currently serving Ramsey in contracted services would not be eligible for an internal recruitment. It is important to note that the contract with Inspectron includes a 'buy-out' clause if the City chooses to hire a current employee of Inspectron within one (1) of said employee providing service to the City. Said buy-out would be 10% of the employee's first year annual salary with the City. Alternatives Alternative #1 - Recruit for a full-time, regular employee to serve as the Building Official. Based on the size of the City, size of the organization and department, and sustained permit levels, Staff recommends that the City recruit a full-time regular Building Official. Based on the Development Services Manager's observations over the past two (2) years, this appears to be the most efficient way for the City to deliver the services of administering the Building Code. Staff is comfortable is making this recommendation, as it appears to be fairly budget neutral in the early