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REQUEST FOR COUNCIL ACTION Date: October 10, 2022 Item No.: 10.c Department ApprovalCity Manager Approval Item Description:Authorize the Mayor and City Manager to execute a Professional Services Agreement with Tokle Inspections Incorporated forelectrical inspection services 1 B ACKGROUND 2 The City of Roseville uses a contract inspector for all electrical inspections. Most municipalities 3 contract for electrical inspections given the Master Electrician license required to provide this service. 4 The pool of potential candidates to provide this service is very limited. The City of Roseville has 5 contracted with Tokle Inspections Inc. for nearly ten years and remains satisfied with their service. All 6 fees are paid for by the electrical permit applicant. The current contract with Tokle Inspections Inc. 7 expires at the end of this year and staff is requesting the City Council authorize continuation of services 8 with Tokle Inspections Inc. Staff offers the following additional information insupport of this request: 9 Aproposed three-yearProfessional Services Agreement(Attachment A)detailing the agreement 10 between the City of Roseville and the City’s current electrical inspection contractorTokle 11 Inspections, Inc. is provided as Attachment A. 12 Twenty-onecities (Roseville, Arden Hills, Blaine, Brooklyn Center, Centerville, Champlin, Crystal, 13 Golden Valley, Hugo, Lexington, Little Canada, New Hope, North Oaks, North St. Paul, Medicine 14 Lake, Osseo, Ramsey, Robbinsdale, St. Anthony,Shoreviewand Vadnais Heights) currently 15 contract with TokleInspections, Inc. 16 The proposed service agreementincludes the following: the contractor mustmaintain insurance 17 coverage,a State of Minnesota Master Electrician license,andprovide a monthlyactivity report. 18 There are proposed increasestothe electrical permit fees for the 2023Fee Schedule. These increases 19 are consistent with all twenty-oneof the municipalities contracted through Tokle Inspections, Inc. 20 The permit fee increases range from 5 to 10%. 21 The contractinspectorreceives 80% of the electrical permit fee with the City retaining the remaining 22 20% of the electrical permit feeas compensationfor processing the permit, as well as,other fees 23 associated with the permitting process. 24 The current contract expires December 31, 2022. 25 While the Purchasing Policy would normally require the City to go out for Requests for Proposals 26(RFP)after six years, it is City staff’s understanding Tokle Inspections Inc. is the sole available 27 provider of contract electrical inspection services to municipalities. The City of Oakdale recently 28 went out for RFP and did not receive any proposals. 29 F INANCIAL I MPACTS 30 Over the past tenyears, the City has paid approximately $95,000 per year to the electrical inspection 31 contractor,with significant peaks and valleys year-to-yeardepending on how much development 32 activity occurs. Staff has reviewed the alternativesto the current approach, particularly the hiring of an 33 additional full-timecity inspector to handle both electrical and some building inspection activities. The 34 amounts paid to the contractor over the last ten years arenot at a high enough level to justify a long-term 35 employee. Further, the ability to secure a Master Electrician as a City employee is unlikely. Further, by 36 contracting this service, the City’s financial exposure is based solely on actual electrical permits pulled