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HomeMy WebLinkAbout2010-06-16 PACKET 04.M.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # DATE 6/16/10 Community Development ORIGINATING DEPARTMENT Howard Blin STAFF AUTHOR COUNCIL ACTION REQUEST Consider approving an agreement with Denmark Township to provide building inspections and code enforcement services. STAFF RECOMMENDATION Approve the agreement. BUDGET IMPLICATION $ $ BUDGETED AMOUNT ACTUAL AMOUNT FUNDING SOURCE ADVISORY COMMISSION ACTION ❑ PLANNING ❑ PUBLIC SAFETY ❑ PUBLIC WORKS ❑ PARKS AND RECREATION ❑ HUMAN SERVICES /RIGHTS ❑ ECONOMIC DEV. AUTHORITY SUPPORTING DOCUMENTS DATE REVIEWED APPROVED DENIED ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ® MEMO /LETTER: Memo from Howard Blin dated 6/11/10 ❑ RESOLUTION: ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: ® OTHER: Agreement ADMINISTRATORS COMMENTS { 1 M. City Administrator Date COUNCIL ACTION TAKEN: APPROVED ❑ DENIED ❑ OTHER CITY OF COTTAGE GROVE MINNESOTA TO: Mayor and Members of the City Council Ryan Schroeder, City Administrator FROM: Howard Blin, Community Development Director DATE: June 11, 2010 RE: Denmark Township Inspections Agreement ••• The City Council is requested to approve an agreement with Denmark Township to provide building inspections and code enforcement services. Discussion The Denmark Township Board approved the attached agreement on June7, 2010. Under the agreement Cottage Grove will provide inspections services to the Township. The agreement is similar to those in effect with the Cities of Newport and St. Paul Park in that Cottage Grove will charge 25 percent of the building permit fees as compensation for work preformed. This agreement with Denmark differs for those earlier contracts on the following items: • Building permits will be issued by Cottage Grove. Applications for Denmark building permits will be submitted at Cottage Grove City Hall. ® Cottage Grove will provide code enforcement services in Denmark. Newport and St. Paul Park continue to perform their own code inspections. The Denmark agreement stipulates that Cottage Grove will initiate code enforcement inspections only at the direction of the Township Board. •. Approve the agreement. BUILDING INSPECTION AND CODE ENFORCEMENT SERVICES AGREEMENT This Building Inspection and Code Enforcement Services Agreement ( "Agreement ") is made this _ day of , 2010, by and between Denmark Township, a public corporation (hereinafter referred to as 'Denmark "), and the City of Cottage Grove, a municipal corporation (hereinafter referred to as "Cottage Grove "). WHEREAS, Denmark is authorized and empowered to provide for various types of building inspections and code enforcement to ensure the public health, welfare and safety; and WHEREAS, it is the desire of the parties and the purpose of this Agreement that certain of those services be performed by Cottage Grove on behalf of Denmark within the jurisdictional boundaries of Denmark. NOW, THEREFORE, in consideration of the mutual covenants and conditions set forth below, the above parties hereto agree as follows: 1. Term. The term of this Agreement shall be from July 1, 2010 through July 1, 2011 (with Cottage Grove commencing inspection services as of July 10, 2010), and shall automatically renew for an additional one year term on July 1, 2011 and then again on July 1, 2012, unless either party to the Agreement provides written notice to the other party at least 90 days prior to the end of the then current term of its intent to terminate this Agreement at the end of the term. This Agreement may also be terminated as provided in Section 9 of this Agreement 2. Services For the entire term of this Agreement, Cottage Grove shall provide Denmark with the following services, on behalf of Denmark and at the direction of the liaison appointed by Denmark to work with Cottage Grove for the purposes of this Agreement: a. Perform all duties necessary to review, conduct inspections, and issue building permits within Denmark in accordance with the Minnesota State Building Code and the Denmark Township Development Code (`Denmark Code "); b. Perform all duties necessary to enforce building codes within Denmark as needed; c. Where necessary, the Cottage Grove Fire Marshal will conduct inspections for compliance with fire codes; d. Conduct property inspections for structural integrity for purposes of exercising eminent domain powers or protection of life; e. Review of building plans, including ensuring conformance with the Denmark Code; 3693480 TJG DE325 -13 f. Issue building permits (plumbing & mechanical included); g. Issue driveway permits in accordance with applicable Denmark ordinances and policies; h. Prepare and submit all reports required by the State of Minnesota or any state agency related to the administration and enforcement of building codes; i. Prepare and submit to Denmark an annual written report of work completed for Denmark pursuant to this Agreement; j. Provide to Denmark copies of all permits issued and inspections made on a monthly basis; k. As directed by the Denmark Town Board, conduct property maintenance inspections to ensure compliance with the Denmark Code; 1. Collect all fees for issuing building permits and conducting inspections, and provide an accounting to Denmark of all such fees each month; and m. Perform clerical and other office duties as may be required related to performing building inspections and reviewing building permits. 3. Valuations and Fees Valuations related to building permit applications shall be determined by Cottage Grove and shall be calculated by multiplying the square foot area of the proposed structure times the building valuation factor as published annually by the Building Codes and Standards Division of the State of Minnesota Department of Administration. The building permit and HVAC fees shall be those listed in the 1997 edition of the Uniform Building Code which are attached hereto as Exhibit A and are incorporated herein by reference. All other permit fees shall be approved by Denmark. 4. Consultation Cottage Grove shall consult with Denmark concerning its usual method of conducting inspections, plan reviews, and related inspection and enforcement activities and will follow those methods and procedures to the extent reasonably possible and in a manner which is consistent with the Denmark Code and the building code. Cottage Grove shall confer with Denmark staff regarding interpretation of the Denmark Code. Denmark shall have a duty to inform Cottage Grove of any and all updates or changes to the Denmark Code. Cottage Grove will also abide by all land use decisions of Washington County which relate to the exercise of building plan reviews and inspections to the extent applicable. 5. Office Hours Cottage Grove is not required to maintain office hours at Denmark's Town Hall. Building permits for Denmark will be issued at the Cottage Grove City Hall. Meetings required or associated with carrying out the duties set out in this Agreement shall be held at the Cottage Grove City Hall. 6. Payment Cottage Grove shall assume the expense of performing the inspections and code enforcement services provided for in this Agreement and shall be paid for those services 369348v3 T.1G DE325 -13 2 through the retention of a percentage of the fees paid by applicants for building permits and inspections performed pursuant to this Agreement within Denmark. 7. Collection and Retention of Fees Applications for building permits shall be submitted directly to Cottage Grove. Cottage Grove will collect all fees related to the applications submitted to it from Denmark, including State required surcharges. On a monthly basis, Cottage Grove will pay to Denmark seventy -five percent (75 %) of all fees it collected from Denmark and shall retain the remaining twenty -five percent (25 %) as payment for the services it provides under this Agreement. Cottage Grove will pay the State of Minnesota for all state surcharge fees collected as required by law from the amounts it collects. 8. Additional Services Denmark may request Cottage Grove provide it services in addition to those contemplated and required to be performed under this Agreement. Any such request for additional services shall be submitted to Cottage Grove in writing. If Cottage Grove agrees to provide the additional requested services, Denmark shall pay Cottage Grove at the rate of $60 per hour for services provided by the Cottage Grove Chief Building Official and $45 per hour for services provided by other Cottage Grove Building Inspectors. Denmark shall also be responsible for paying Cottage Grove for the actual expense incurred by its inspectors to provide the requested additional service. These additional fees will be billed to Denmark on a time and material basis each month in which the additional services are provided. a. Additional Enforcement Services Enforcement is part of the services Cottage Grove is to provide Denmark trader this Agreement and for which Cottage Grove is paid through the retained fees. However, at the point where the Denmark attorney initiates a legal action in district court to enforce the Denmark Code, the services Cottage Grove thereafter provides in furtherance of that enforcement action shall be considered additional services and shall be billed to Denmark at the hourly rates provided herein for such additional services until such time as a final decision has been issued by the courts or the matter is otherwise resolved. Cottage Grove shall provide the additional enforcement services only in consultation with Denmark or its attorney. 9. Termination This Agreement shall terminate as follows: a. Upon the expiration of 90 days after delivery of a written notice of termination to the other party; or b. At any time, upon written agreement of the parties; or c. In any event on July 1, 2013. 10. Indemnification Cottage Grove agrees to defend, indemnify and hold harmless Denmark, and its officials, agents and employees from and against: all claims, actions, damages, losses and expenses, including attorneys fees, arising out of or resulting from Cottage Grove's performance of the duties required under this Agreement, provided that any such claim, action, damage, loss or expense is caused in whole or in part by an alleged negligent act or omission or willful misconduct of Cottage Grove. Denmark agrees to defend, indemnify and hold harmless Cottage 369348v3 rJG DE325 -13 3 Grove, and its officials, agents and employees from and against all claims, actions, damages, losses and expenses, including attorneys' fees, arising out of or resulting from Denmark's performance of the duties required under this Agreement, provided that any such claim, action, damage, loss or expense is caused in whole or in part by an alleged negligent act or omission or willful misconduct of Denmark This provision shall not be construed as a waiver by either party of any defenses, immunities or limitations on liability to which they are entitled, under Minnesota Statues, Chapter 466 or otherwise. 11. Insurance Cottage Grove shall carry liability insurance in the amount of at least $1,500,000. Denmark shall be named as an additional insured on Cottage Grove's policy and Cottage Grove shall provide Denmark a certificate of said insurance. Cottage Grove shall carry Worker's Compensation Insurance as required by Minnesota Statutes, Section 176.181, Subd. 2 and further agrees to provide a certificate of said insurance to the Denmark. A policy issued by the League of Minnesota Cities Insurance Trust shall be deemed acceptable insurance coverage for the purposes of this Agreement so long as it provides both liability and workers' compensation coverages. 12. Service Contract This is a service contract. The parties do not intend to create, and nothing herein shall be construed as creating, a joint powers agreement, joint venture, or joint enterprise. However, to the extent a court of competent jurisdiction may find such a relationship exists, Cottage Grove and Denmark shall be considered a single governmental entity as provided in Minnesota Statutes, section 471.59, subdivision la for the purposes of determining total liability. The limits of liability for Cottage Grove and Denmark shall not be added together to determine the maximum amount of liability for either party. 13. Independent Contractor Cottage Grove is to be and shall remain at all times an independent contractor with respect to all services performed under this Agreement. Cottage Grove represents that it has, or will secure at its own expense, all personnel and equipment required in performing services under this Agreement. Any and all personnel of Cottage Grove engaged in the performance of any work or services required by Cottage Grove under this Agreement shall be considered employees of Cottage Grove and shall not be considered employees of Denmark. Any and all claims that may arise under the Workers' Compensation Act of the State of Minnesota by Cottage Grove personnel while performing services under this Agreement, and any and all other claims whatsoever that may arise out of the personnel's employment or alleged employment with Cottage Grove including, without limitation, claims of discrimination against Cottage Grove, its officers, agents contracts or employees shall in no way be the responsibility of Denmark; and Cottage Grove shall defend, indemnify and hold Denmark, its officers, agents and employees harmless from any and all such claims regardless of any determination of any pertinent tribunal, agency, board, commission or court. Such personnel or other persons shall not require nor be entitled to any compensation, rights or benefits of any kind whatsoever from Denmark, including, without limitation, tenure rights, medical and hospital care, sick and vacation leave, Workers' Compensations, Unemployment Compensation, disability, severance pay, or PERA. Any employee assigned by Cottage Grove to perform its obligations hereunder shall remain the exclusive employee of Cottage Grove for all purposes including, but not limited to, wages, salary and employee benefits. 3693480 TJG DE325 -13 4 14. Retention of Government Records Cottage Grove shall retain all government records received or created by it in the performance of its services under this Agreement. Cottage Grove shall provide for the safe storage of the records during the entire term of this Agreement. Any Denmark government records held by Cottage Grove that become subject to destruction pursuant to Denmark's records retention schedule may either be destroyed by Cottage Grove at Denmark's direction or transferred to Denmark for destruction. For the purposes of this Agreement, the term "government records" shall have the meaning given it in Minnesota Statutes, section 138.17, subdivision l(b)(1). Cottage Grove shall transfer to Denmark all records held by it for Denmark at the termination of this Agreement. 15. Examination of Records The books, records, documents, and accounting procedures of Cottage Grove relevant to this Agreement, are subject to examination by Denmark and either the legislative or state auditor as appropriate, pursuant to Minnesota Statutes, section 16C.05, subdivision 5. 16. Data Practices Cottage Grove shall administer any data on individuals it may receive in the course of performing its duties under this Agreement consistent with the provisions of the Minnesota Government Data Practices Act (Minn. Star. Chap. 13). 17. Entire Agreement This Agreement represents the entire Agreement between Cottage Grove and Denmark and supersedes and cancels any and all prior agreements or proposals, written or oral, between the parties relating to the subject matter hereof. Any amendments, addenda, alterations, or modifications to the terms or conditions of this Agreement must be in writing and signed by both parties. 18. Leaai Compliance Both parties agree to comply with all applicable state, federal and local laws, rules and regulations in the performance of their duties under this Agreement. 19. No Waiver The failure of either party to insist upon the strict and prompt performance of the terns, covenants, or agreements, and conditions contained herein by the other party shall not constitute or be construed as a waiver or relinquishment of any party's right thereafter to enforce any such term, covenant agreement or condition, and the same shall continue in force and effect. 20. Provisions Severable The provisions of this Agreement shall be severable so that the unenforceability or invalidity of any provision or provisions of this Agreement shall not render any other provision or provisions unenforceable or invalid. If for any reason this Agreement or any provision hereof, is riled invalid, in whole or in part, such decision shall not affect the validity of the remaining portions of the Agreement. 21. Third Parties This Agreement does not confer any rights upon any third parties or parties who are not signatories to this Agreement. 369348v3 TJG DE325 -13 5 IN WITNESS WHEREOF, the parties have set forth their hands on the day and year first written above. CITY OF COTTAGE GROVE By: Its Mayor Date By: Its City Administrator Date DENMARK TOWNSHIP By: Its Chairperson Date Bv: Its Clerk- Treasurer Date 3693480 TJG DE325 -13 6 EXHIBIT A Fees Under 1997 UBC (attached hereto) 369348v3 TRY DE325 -13 A -1