11. Consider Hiring Inspectors II
CITY OF
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937-1900
MEMORANDUM
TO: Don Ashworth, City Manager
' FROM: Jim Chaffee, Public Safety Directo
DATE: March 17 , 1989
SUBJ: Additional Inspectors
Background
As you know, we have been researching the need for additional
help in the Building Inspection division of Public Safety. Early
last fall, we began to see a pattern developing in the inspec-
tions area whereby the pace of construction was accelerating
' beyond our capacity to keep up. At that time we were able to
adjust schedules and authorize overtime in an attempt to keep
abreast. Paperwork, filing, and plan reviews were delayed and
completed either after working hours in the office or at the
inspector' s homes on weekends and evenings .
The discussions at our weekly meetings centered on the question
of "how long will this last" and "can we maintain our activity
level until the winter lull?" . We continued working overtime and
taking paperwork and plans home; but the winter lull never
' materialized. The pace of construction and the demand for
inspection service continued at an alarming rate.
In February, the demand for inspections overloaded our ability
to respond in a timely manner. Response to inspections were
sometimes delayed 3 to 4 days, which then produced a back log for
the builders. Although the crisis was blamed on 1) a legal holi-
day on Monday, February 20, and 2 ) one inspector on vacation, it
did call attention to the potential for a continuing backlog when
the construction season heats up in the spring and summer of this
' year.
Thankfully, we were able to convince Gary Warren and Jerry
Schlenk to let us "borrow" Mike Wegler from Public Works. Mike' s
background in construction enabled the inspection division to
handle the calls in a more timely fashion, although they were
still being double-booked.
1
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who-
Mr . Don Ashworth
March 17 , 1989
Page 2
Problems
In addition to the problem with the builders not getting timely '
inspections, there is another more sinister problem. The primary
purpose for building inspections is to ensure the safety of the
building occupant( s) . We only need to use our imaginations to
think of what might happen if a plumbing connection does not meet
Code, a gas line connection to a furnace is inadequate, or a span
joist in a basement does not offer adequate support. 1
Our inspectors presently are not able to spend the needed time on
inspections to properly inspect for code problems. This is and
should be our primary concern.
Prognosis
On Wednesday, March 1 , 1989, Mayor Don Chmiel and I met with a
local builder, his engineer, and real estate personnel. We
addressed their concerns regarding timely inspections and the
potential for future problems. We discussed the very real need
for additional inspectors to handle the workload. All agreed
that the inspectors we do have are overworked and the potential
for stress related illness/accidents is very real. It would be
impossible during the heavy construction season to allow vacation
or properly cope with sick time, not to mention training
requirements . 1
The Mayor and I expressed concerns, however, in two areas ;
First, since we are somewhat limited in growth by the MUSA
Line, what happens when construction slows as a result of all the
buildable areas within the MUSA being sold? Second, what if the
economy turns sour and construction takes a downturn?
We discussed these potential problems and it was a concensus that
1 ) there is enough land that is projected for development, both
within and outside the MUSA Line, to carry the present level of
activity through at least 1990 ; and 2 ) the potential for economic
downturn, while always a danger, does not appear to be a problem
through 1990. Nobody wanted to predict what the prognosis for
construction activity would be in 1991 and beyond, though it was
discussed that what happened in Eden Prairie during the last
recession may in fact occur in Chanhassen. Eden Prairie' s
construction level remained constant or even slightly accelerated
during the last economic downturn.
Solution
After talking with numerous builders and meeting with Public
Safety personnel, it was agreed upon that two additional
full-time inspectors were needed as soon as possible. One
building inspector and one mechanical inspector is the minimum
required to meet the present demand.
I
140101001,
Mr. Don Ashworth
March 17, 1989
Page 3
I
Cost
1 The estimated costs associated with the employment of two addi-
tional inspectors is $84 , 000 . This includes wages , benefits,
and support vehicles . This was not budgeted for and would
' necessitate an adjustment to the 1989 budget.
In the summer of 1987, we estimated permit revenue for 1988 to be
' $320, 600. A revised estimate in the summer of 1988 predicted
permit revenue to be $436 , 900 , which was over $100 , 000 greater
than originally estimated. In reality, we took in over
$496, 500 . 30 in permit revenue in 1988, which was $175 , 000 greater
than our original estimate.
Our 1989 permit revenue estimate is $460 , 600 . 00 . Rosemount
' Engineering and McGlynn Bakeries alone will generate approximately
$100, 000 in revenue. In addition, there is a hotel, Empak and
the Medical Arts building. Too numerous to mention are the
' multiple family dwellings and single family developments pro-
jected for 1989 . It is reasonable to assume that estimated per-
mit revenue for 1989 may in fact exceed our conservative figure
of $460, 500 .
rAncillary Information
The builders and contractors in Chanhassen are paying permit fees
and expecting a service in return. Quite frankly, we are not
presently able to perform the expected services and, more impor-
tantly, the citizens of Chanhassen are receiving less than
desirable life safety inspections . This is not to say that our
inspectors are not doing a good job. Quite the contrary! We
have dedicated and loyal public servants doing what by some
' accounts are humanly impossible tasks in meeting deadlines . Of
all the complaints received, each and every one complimented the
jobs our inspectors are doing. The bottom line is that it is not
' humanly possible for three inspectors to continue to keep up with
the demands of the rapid construction that is ocurring in
Chanhassen.
Recommendation
It is Public Safety' s recommendation to employ two additional
full-time inspectors ( one mechanical and one building) and to
amend the 1989 Budget, Fund 125-4010 , Personal Services , in the
amount of $52, 000 . In addition, Fund 209-4704 should be amended
to include two inspection vehicles ( 4-wheel drive) in the amount
of $32, 000.
Attachments
' cc: Mayor Don Chmiel
11
101110111104
March 17 , 1989
I
Page 4
Manager ' s Recommendation: This office does not support mid-year I
budget modifications . I am only aware of two modifications in
the last ten years. However, we are not meeting service level
requirements and 1988 did produce permit revenues of nearly
$200 , 000 over the original 1988 budget and approximately $80, 000
over the revised budget ( see analysis below) .
As stated, this office does not support mid-year budgetary
changes . However, a change is needed recognizing the additional
workloads that have been placed on our inspectors in 1988 and
Iduring the first portion of 1989 . I would also like to note that
this workload also translates into additional needs for secretarial/
support services . We cannot place two additional inspectors on
line without similarly increasing support services . This office
I
would recommend that the Council approve not only the $85 ,000
budget amendment being requested by Jim Chaffee, but also to
allocate an additional $20,000 for a full-time secretary/clerk
position ( such includes overhead/office supplies/forms/etc. ) . I
would propose that the funding for the additional expenditures
occur through a modification in permit revenue, increasing such
from 460 ,500 to 500,500 and reallocating $65, 000 of the 1988 fund
I
balance to 1989 expenditures. Similar to the approval of one
year ago, the inspectors proposed to be employed would be
informed that their positions are being paid solely by the addi- '
tional building revenues anticipated in 1989 and that any reduc-
tion in those revenues would require a reduction in inspector
services .
I
Budget Est. Actual Budget Est. Actual Budget
1987 1987 1987 1988 1988 1988 1989
Revenue
Permit Fees 174.2 307.7 346.9 320.6 436.9 514.0 460.5 I
Expenses
Code Enforcement 88.5 108.8 107.8 140.2 190.4 211.7 246.4 I
Vehicles 14.5 14.2 14.2 20.0 22.0 22.8 -0-
Support Services* 30.0 36.0 36.0 48.0 64.5 68.0 73.0
City Hall Expansion 80.0 76.3 60.0 60.0 60.0 65.0
Total Expense 103.0 203.0 198.3 220.2 372.4 362.5 311.4
I
Total Revenue Over
Expense 41.2 68.7 112.6 52.4 -0- 151.5 76.1
* 30% of expense used as estimate of overhead ( heat, lights, insurance)
and general secretarial support.
Os4j, ::3111
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t
CITY
CHANHASSEN
1
-�- 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937-1900
' MEMORANDUM
TO: Jim Chaffee, Public Safety Director
FROM: Scott Harr, Assistant Public Safety Director
' DATE: March 17, 1989
SUBJ: Building Inspection Department Personnel
This memo is in response to our thoughts , discussions and
meetings concerning the need for additional building inspectors.
This matter has developed rather unepectedly, and the fact that
both newspapers picked up on it through Public Safety Commission
minutes and have written articles on it, has helped to put the
matter into good perspective.
Since you and I began here, we recognized the need for additional
help. What we had no way of :knowing was exactly how much help
was in fact needed. We had hoped that with the promotion of Ron
Julkowski to Building Official, together with the assistance of
Inspector Steve Kirchman and part-time Plumbing Inspector Hubert
'
Forcier, that this would make a noticeable difference in meeting
the need. It did not.
Again, we sought to respond to the problem by hiring Mechanical
' Inspector Carl Barke when Mr. Forcier retired. While increasing
the size of the building inspection staff, this did not solve the
problem of matching manpower with need.
' So much of what you and I have disucssed with our building
inspectors was set forth concisely in the newspaper articles this
week. We are again faced with the fact that we do not have
enough personnel to adequately complete inspections .
Rather than being in a position to spend time planning, we are
' forced to be in a position of playing catch-up to the needs of
the homeowners, builders, contractors and workers in Chanhassen.
Ideally, we would be able to include this personnel request in
the 1990 budget. We do not, however, find ourselves in an ideal
situation. Our inspectors are already overworked, and when they
take a well-deserved, legitimate vacation break (planned to occur
when we thought building and inspection needs should be down! ) ,
11
II
Mr. Jim Chaffee i
March 17 , 1989
Page 2
the entire process is thrown into delay that not only incon-
venience the tradespeople involved, but could result in sche-
duling
conflicts for the homeowners that could interfere with
closings , resulting in higher mortgage rates and possibly even
safety issues because inspections cannot be given the time that
is needed to identify potential hazards .
The question is not if we need additional inspectors , but when we
will respond to this need. I believe this is another example of
the growing pains that a community such as ours experiences . I
support the idea of hiring two additional inspectors at the
earliest realistic opportunity.
1
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(-I ---
_ ,
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'`,/
i \:vi f„/ I
■,(Ife'
II 690 COULTER DRIVE • PO BOX 147 9 CHANHASSEN, MINNESOTA 55317
(612) 937-1900
--.....„,
1 MEMORANDUM
IITO: Scott Harr, Assistant Public Safety Director
FROM: Steve A. Kirchman, Building Inspector
IDATE: March 12 , 1989
SUBJ: Additional Inpsections Personnel
I
II Ron and I have decided to submit separate memos, each focusing
on different reasons why more inspectors are needed. I will com-
pare the manpower versus the workload and some of the effects of
being understaffed.
IIThe following graph -shows the dramatic increase in permits issued
as opposed to the limited growth in inspections personnel.
II
I Public Safety Inspections
Yearly Comparisons
I 20
I
I15 -- - r
I .
0
/
, 0
I
5 - -- - - . . . I , 0. _ 0 0
■ %
I P777 r7
. ,
k '
0 —EL--,1--ER—EL
I1r79 Yr80 Yr81 Yr82 Yr83 Yr84 Yr85 Yr86 Yr87 Yr88 Yr89
1331 Inspectors MI Permits Issued(x100)
1 1989 Estimettod
111
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Scott Harr '
March 12, 1989
Page 2 ,
The permits issued column includes building, plumbing and I
heating permits. The inspectors column assumes that the contract
plumbing inspector worked more time as more permits were issued.
The intern on staff during 1987 is also included. The 1989 esti- '
mate was arrived at by multiplying permits issued in January
1989 by 12.
There are many signs present indicating an excessive workload.
I will list some of these and their effects :
1 . Overtime and comp time required by all personnel to '
complete esential daily tasks . In addition to disrupting a
carefully planned budget, some personnel do not wish to
work overtime.
2 . Lack of time to follow up on complaints. Citizens have
a right to expect prompt action on problems involving
their most basic and expensive possession, their home.
3 . Lack of time to take advantage of educational oppor-
tunities .
Continuing education is required to maintain
certification as building inspectors. Continuing edu-
cation is desirable to stay abreast of the rapidly
changing construction industry. I
4 . Hurried inspections. In order to complete the 20 or more
inspections sometimes scheduled in a day, it becomes
necessary to rush through inspections . A thorough
inspection is not possible under these circumstances ; a
disservice to all.
5 . Long delays in plan review. Permitees pay an additional
65% of the permit fee for plan review. Most are
understandably upset when told they must wait 2-3 weeks
before issuance of a permit. Residential plan review
takes 1-2 hours per plan. Commerical ouildings take much
longer. An average of 3 days per week should be allotted
for plan review.
6 . Insufficient time to review and tile building department
records and publications . Record keeping is a necessary
part of the job. It doesn ' t get done, or piles up until
it threatens to overtake the office.
7 . Inadequate inspection of commercial buildings . 11
Commercial buildings should be visited every day. Most
are complex one-of-a-kind buildings and there are many 11 chances for potentially dangerous mistakes to be made.
Daily inspections should be a priority.
1
I
IIScott Harr
March 12, 1989
' Page 3
' 8 . Lack of communications between department personnel.
With our heavy inspection schedules there is seldom time
' to sit down and discuss problems encountered in the field
and their solutions, uniform enforcement, status of pro-
jects and other department business.
9 . Closing out inactive permits. There are currently 241
permits that have not had an inspection in over four
months. 15 of these permits are for new houses! That
means there are 15 families living in houses that have
not had a final inspection! The remaining 226 permits
are for decks, fences , additions, etc. Over the last
month I have tried to schedule some of these inactive
' permits for inspections. 17 were inspected, 11 did not
pass final inspection!
There are normally 4-6 weeks of decreased construction activity
during the winter. We didn' t see that this year. This fact
along with the increase in commercial construction points to a
' busy year in Chanhassen. We will not be able to keep up with the
existing staff.
1
111
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CITY OF
il,._
,,
\I k . CHANHASSEN I
A,..
\ I i ,``. 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937-1900
MEMORANDUM I
TO: Scott Harr, Asst. Public Safety Director
f IIFROM: Ron Julkowski, Building Official 144"-
DATE: March 3 , 1989
SUBJ: Building Department Comparisons with Other Cities II
Per our discussion in January, Steve and I have contacted several I
cities to compare their building department personnel and growth
with that of Chanhassen. Because Chanhassen has experienced such
rapid growth in the last few years, we could not find a city that
II
was comparable.
In our survey it was noted that all the building departments,
II
whether they were well established cities such as Minnetonka or a
fast growing city like Eagan, all had office support staff which
included a building official, full time plan reviewer, and a full II time secretary [ plus field inspector( s ) ] . As you know our
inspections take the majority of our time during the day.
Because of the need to meet contractors scheduling, inspections
have become our top priority. Office time is limited, causing us
II
to spend that time returning phone calls and completing the daily
paperwork. This leaves us little or no time to do our plan
reviews. I
As you know, we believe in doing a complete and thorough plan
review to insure that all building codes , life safety and struc-
IItural requirements are met. This eliminates problems and misun-
derstandngs in the field. For the past two years our plan
reviews have been completed at home or sent out to consultants.
Steve, Carl and myself have spent some time discussing what type II
of personnel would best suit the city' s and our needs. Ideally,
two full time inspectors, one a building inspector and the other
II
a mechanical inspection would insure that all inspections would
be made within a 24 hour period which is normal for other
cities . At times, a 2 to 3 day wait is often the case. With the 11 additional help it would free our time so we could complete plan
reviews on a more timely basis. As of now during the busiest
months , a 2-3 week wait is normal .
II
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II
I .' ,
' Mr. Scott Harr
March 3 , 1989
Page 2
In talking with the different building officials, it was found
g g
that the rule of thumb for hiring additional help was to hire an
' inspector for every 10 million dollars worth of building value.
As you know from the year end report, our yearly total for 1988
was close to 50 million dollars. The majority being single
' family related, either new single family dwellings or additions .
I am sure the projections for next year, with all the new and
partially filled subdivisions , our single family totals will be
' at the same, if not greater. This does not take into account the
new commercial activity which will increase greatly - McGlynn
Bakery, Rosemount, Heritage Square Apartments, the Medical Arts
Building, Empak, and several others to name a few that will add
to our inspections. With commercial construction, inspections
become more complicated and time consuming. Each commercial job
should be inspected daily. However, with current staff it beco-
mes an impossibility. I am sure the city wants proper and
quality inspections for all construction in Chanhassen.
' Inspections insure that all building code and mechanical code
requirements are met. The codes are to protect life and limb,
property, and the consumer. Without adequate manpower, we cannot
enforce the various codes as they were intended. Nor can we keep
' abreast of all the code changes , product updates and the required
training of inspectors.
Most cities limit the number of inspections per day per inspector
to 12. As you know, 18 to 24 inspections and sometimes more are
not uncommon for us . A quality inspection cannot be done with
this many inspections per day. I think the time has come to take
' a serious look at the needs of hiring additional inspectors
before a problem or accident happens because we did not have ade-
quate time to do a complete and quality inspection or plan
review.
Please see attached reports for additional information.
cc: Jim Chaffee
1
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CITY 0 F
„.
` � i
s1 i CHANHASSEN 1
, , ,
�
"# 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
II
(612) 937-1900
MEMORANDLM
TO: Don Ashworth, City Manager I
FROM: Ron Julkowski , Building Official
II
DATE: February 16, 1989
SUBJ: 1988 Building Permits I
The following is a breakdown of the type of construction, number II and estimated value of building permits for 1987 and 1988.
1987 1988 II Type No. Vallations No. Valuations
Single Family 289 $29 ,363, 5.,0 . 00 352 $35 ,223 , 400 . 00
Duplex 8 1:35, 003 . 00 15 1, 397, 500 . 00 II
Fourplex -0- 2 144, 000. 00
II
Apartments 4 1, 664, 000 . .,E 4 1, 664 , 000. 00
Commercial 6 1, 951, 003 . 00 18 7 , 821, 800 . 00
II
Commercial 30 3 , 517, 900 . 00 21 525, 200 . 00
Alterations I
Residential 82 788, 200 . 30 79 558 , 200 . 00
Addn/Alter
I
Miscellaneous/ 49 51, 450 . 00 41 43 , 981. 00
Sheds/Fences
Garages 28 234, 000 . 00 22 241, 000 . 00
Swimming Pools 5 43 , 000. 00 8 90, 000 . 00
II
Porchs/Decks 103 323 , 800. 00 111 365 , 800. 00
TOTAL 604 $38 ,101, 850 . 00 673 $48 , 074,881 . 00 I
Average price of new single family residential, excluding land, II
is $100, 066 . 48.
II
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I .
Mr . Don Ashworth
February 16 , 1989
Page 2
1983 NEW COMMERCIAL/INDUSTRIAL
AND MAJOR ADDITIONS
' Public Works Addition $ 260 , 000
Brooks Saoerette 756 , 000
' Cold Warehouse Storage
( Hwy. 212-Sorenson) 140 , 000
Mini-Storage Warehouse 118 , 000
( Brown) 118, 000
' Clock Tower/Dinner Theatre Sign 135 , 000
Waytek, Inc. 702, 000
Lyman Lumber Addition 1 , 050 , 000
Minnewashta Regional Park Bathhouse 73 , 000
Market Street Bus Shelter 23 , 000
' SuperAmerica Station 300, 000
( Hwy. 7/41)
' H. S. Z Retail Center 1 , 000 , 000
( Hwy. 7/41 )
Merit Heating Building 6637, 000
' Lakeshore Equipment 220 , 000
Daycare Facility 230, 000
Fire Station Addition 783 , 400
City Hall Addition 493, 400
Family of Christ Lutheran Church 330 , 000
Rosemount ( foundation permit only) 400 , 000
' TOTAL $ 7 , 818 , 800
11
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V ___
,,
CHANHASSEN PUBLIC SAFETY
BUILDING INSPECTIONS DEPARTMENT
INSPECTIONS
TOTAL
INSUL- FIRE- BASE SEPTIC
MONTH FOOTINGS FRAMING BACKFILL ATION DRYWALL PLACE SLAB PLBG BIG SYSTEM MISC. FINAL TO DATE
JANUARY 13 56 8 31 57 11 0 2 29 0 19 62 288
FEBRUARY 21 30 19 17 14 16 0 0 26 0 22 89 254
MARCH 47 63 26 46 25 30 0 16 42 10 26 36 367
APRIL 62 62 27 52 34 16 3 0 49 11 22 37 375
MAY 82 96 40 39 18 30 0 79 90 32 45 160 711
JUNE 114 72 48 39 22 12 0 71 50 31 55 156 670
JULY 66 80 51 59 33 39 0 106 113 28 33 67 675
AUGUST 56 110 28 119 63 29 0 96 121 24 23 98 767
SEPTEMBER 71 93 23 73 75 20 0 136 158 9 27 127 812
OCTOBER 61 76 15 74 24 42 0 119 133 42 16 73 675
NOVEMBER 47 56 21 27 26 20 0 87 98 12 22 88 504
DECEMBER 62 70 63 36 21 17 0 96 109 5 44 88 611
TOTAL 702 864 369 612 412 282 3 808 101E 204 354 1081 6,709
111111111111111• 11• 1111111111• 1111111111•11 • 1■ 111111111111111111111111111111111111111111111111 " i1111
NM NM IIIII in MN I= 1111111 1111111 OM , 1111111
JANUARY FEBRUARY MARCH APRIL MAY JUNE TOTAL
TO DATE
Building 9,247.50 14,655.00 18,100.00 24,435.00 24,264.00 45,072.40 135,773.90
Plan Check 5,970.21 9,393.71 11,530.34 15,777.56 15,560.09 28,811.16 87,043.07
Plumbing 835.50 1,785.00 2,613.25 2,584.00 2,296.75 3,613.00 13,727.50
Heating
Septic
TOTAL 16,053.21 25,833.71 32,243.59 42,796.56 42,120.84 77,496.56 236,544.47
JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER
Building 18,870.25 19,524.50 21,843.50 24,494.50 27,651.50 30,685.65 278,843.80
Plan Check 12,097.58 12,688.84 13,869.71 14,623.82 16,662.87 19,832.12 176,818.01
Plumbing 4,010.00 3,149.00 2,734.00 2,887.50 2,191.00 2,543.75 31,242.75
Heating 897.38 1,580.75 1,293.56 1,934.38 1,928.38 2,054.40 9,688.85
Septic
TOTAL 35,874.96 36,943.09 39,740.77 43,940.20 48,433.75 55,115.92 496,593.41
BUILDING PERMIT TOTALS
•
NEW RESIDENTIAL
1979-1988
Total Number 1979 1980 1981 1982 1983
Single Family 100 41 22 19 60
(Valuation) $ 6,472,000 4,323,000 2,367,000 1,915,000 5,183,500
Duplex 8 9 1 1 4
$ 759,000 1,042,000 90,000 110,000 289,000
Townhomes (fourplex) 13 10 0 0 36
$ 2,270,000 2,176,000 0 0 1,954,000
Apartments 0 0
Total Number 1984 1985 1986 1987 1988
Single Family 106 189 246 289 352
(Valuation) $ 7,941,800 15,379,000 24,235,000 29,363,500 35,223,400
Duplex 34 38 8 8 15
• $ 1,478,000 1,882,000 528,000 .165,000 1,397,500
Townhames (Fourplex) 12 20 16 0 2
$ 660,000 1,206,000 576,000 i 0 : ? 144,000
t .
Apartments . 32
4
,.
$ K1,664,000 . ' '�'�. 1,664,000
- - - ME MI in - NM r NM - - MN .- — MI - MN iiii
1 ,
T,� G
CITY OF
•
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937-1900
i
MEMORANDUM
TO: Don Ashworth, City Manager
1 FROM: Scott Harr, Asst. Public Safety Director s
DATE: February 21, 1989
SUBJ: Building Department/Inspector Statistical Information
I have been requested to assist in organizing and presenting data
1 to the Council to enable them to make a determination as to
whether additional inspectors will be necessary. Per my
discussion with you and Jim Chaffee, I would like to submit this
1 information within the next four weeks .
Perhaps an indication of how busy our inspectors are is that they
1 have not yet had time to put these statistics together. They
have assured me that they will do so as soon as possible, and I
will get together with you to arrange for a Council time for pre-
sentation.
1 cc: Mayor Chmiel
Councilman Boyt
1 Jim Chaffee
Ron Julkowski
Steve Kirchman
Carl Barke
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11 i.1.7-- : -- St r.:'"+.7.71 ;:!'"'"ii.5 55..1+5 1(-0..;
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-----------
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-+ --
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'•+:--.. "+. —Ir..--- - - Legends : Inspectors Permits Issued(x100 )
_...
,---;-:. ._..-• ,_.
- 'Labe is
,-,yr 79 __ 1 . 50 2 .11 - -
yr 80 7-2-: --":" - , 1 . 50 1 . 49 -2
:----- yr 81 1 . 50 2 . 33
ill
yr 82 1 . 50 2 . 06
yr 83 1 . 50 3 . 39
yr84 1 . 50 3 . 23
..In
yr 85 2 . 50 4 . 73
-I
yr 86 2 . 75 8 . 04
yr 0 7 3 . 17 9 . 7 5
__ Iyr 88 3 . 00 12 .9 6
•yr 3 9 3 . 00 18 . 00
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III A Monthly Newsletter for Housing Leaders March 1989
INEW AND EXISTING HOME SALES UP IN 1988
Higher prices and higher interest rates didn't deter home buyers last year. The National Association of Realtors
reported that 3.63 million existing single-family homes were sold in 1988—2.9% more than in 1987 and the most since
1979.Though full-year figures aren't out yet, sales of new single-family homes were running 1.5%above 1987 levels at
the end of November.
IBUILDING PERMITS TIED TO WATER SAVING
I In Morro Bay, California, builders must spend around $2,000 installing water-saving devices—in as many as 12
existing houses—each time they want a permit to build a new home, according to Builder Magazine. Morro Bay planners
say water supplies are so tight they can't permit new homes unless consumption is cut at the same time. So, builders are
forced to find volunteers for retrofit packages before they can get started. The trouble is, Morro Bay's plan is not only
I saving water, it's giving existing homeowners an incentive to demand goodies—like cash or microwaves—in exchange
for allowing builders to retrofit their homes. NAHB's civil engineering program manager, Ken Ford, says builders in other
parts of the country may "start seeing things like this" because of local infrastructure or water supply problems. Since
I adopting the program in 1985, Morro Bay has issued about 150 permits. In exchange, builders have retrofitted 400
motel rooms and more than a third of the town's 5,300 houses.
LOW RATES IN RETURN FOR MORTGAGE INTEREST DEDUCTION IS DANGEROUS
A proposal to offer home buyers lower mortgage rates in exchange for their mortgage interest deduction benefits was
put on the table at a meeting of the U.S. League of Savings Institutions. The proposal was made by a thrift task force
I seeking ways to help S&Ls find long-term stability and profitability as home mortgage lenders. NAHB single-family
mortgage analyst Bill Sorrentino calls the idea "dangerous." While NAHB won't be able to study the task force proposal
until it is more fully developed, he says the idea of using the mortgage deduction for interest-rate breaks could weaken
Iits position in Congress and make caps or elimination more likely.
RETIREMENT ACCOUNTS MAY BE USED FOR HOME DOWN PAYMENTS
I Sen. Alan Cranston, D-Calif., has proposed a$3.1 billion program to assist first-time home buyers. A key benefit in the
bill would permit first-time home buyers who have Individual Retirement Accounts or 401 K retirement plans to use that
money for the down payment on a home without paying penalties for withdrawing it. This wouldn't be considered a
I withdrawal. It would just be considered another form of investment. You would, in effect, be investing it in a home, and
the money used toward the down payment would have to be repaid when the home is sold.
I MIDWEST STAGING A HOUSING COMEBACK
l'ts still a bi-coastal economy, but the Midwest is staging a small comeback, thanks in large part to the falling dollar
making Midwest products more competitive in the global market. The Midwest's share of the nation's housing starts is
I expected to grow from about 18 percent last year to 20 percent this year.
States likely to see the strongest housing starts this year include Wisconsin (up 24.6 percent), South Dakota (17.6
percent), Iowa (17 percent), and Kansas (17 percent). Wisconsin, Indiana, and Iowa are also expected to see above-
I average job growth.
Yet, in real numbers, starts are expected to decline in some of the region's hottest markets because of infrastructure
limits and slower population growth. Moderate declines are expected around Chicago (down 9 percent), Detroit (10
percent), and Minneapolis (12 percent).
I
■
•
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a fi N g im� mL C O E-oAN m .—,tJ �m L L = O ON m > p 1 C cC �ni N 2, N 3ur8r I g a¢¢¢¢ accccon tc co nwwii r>53 o
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; 0 0 0 2 2 =_ —> >-Y Y J 2 2 1' M 2 Z Z Z Z Z z Z 0 0 0 0= Br t 8 0
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i• ti 32° °
ch .tooc6 at 8866 0u.<t8o c8mac c cbm0�8 8QOmu. u-u.6 u- da686cs r8666o $* �?.� :
_ l t!
S .
Gm m c a oi S R. ev w
c Q Z m m L m o c s a o c
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dill thil uHf ildi bd: v m hiD c_ 6 •
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.p, QQQaQ QQQQm mmmmc$ t$mm00 00000 08888 of o $ou,,,,u_ !iu-u.00 4Z . Aa. .
Source: Builder Magazin
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1 Fr# , ` t. T I' . CM ta 1 Li ®� ' f7 T W bi . ® � ® / ; L ! } I i
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"HOUSING S"J'AR"I'S TO ROSE TO 1 .46 MILLION IN 1989.
BETTER FINES LIE AHEAD FOR HOME BUILDERS.”
- PROFESSIONAL BUILDER MAGAZINE
Today's increasingly affluent home owners of the baby boom generation Twin Cities Housing Council
will choose larger homes with more luxury features and bigger lots when 2805 Northwest Boulevard BULK RATE
they buy their next house.And even if they have to pay more and/or live fur- U.S.POSTAGE
ther from work,they will be willing to make these trade-offs to get the house Suite 50 ±i./ PAID
I
they want. 4
They are also very concerned about the quality of workmanship and ma- Minneapolis, MN 441 �� Permit No.3652
terials—including carpeting,flooring,tiles and paint—as well as the build- (612) 559-4122 MPLS.,MN
er's reputation and the neighborhood.And if they cannot afford to buy the r f4
house they want,they will accept an expandable house with some parts left j� U t�s/ I
unfinished.However,they will not accept a smaller house. (,'
These are just some of the findings of a recent NAHB survey of 1,776 _
home owners who have purchased homes insured by the Home Owners N I�
Warranty (HOW) program since 1980.The HOW 10-Year Warranty pro- C: \Il��'�/�I ��� ����gram is the nation's oldest and largest warranty and insurance program for `builders and buyers of new homes.More than two million new homes have I
been enrolled in the program since its inception in 1974
The median age for the male head of household among those surveyed C11TY OF CHANNrt.,auv
was 37.7 years and about 75 percent were between 25 and 44,the median
age for female heads of household was 35.5. ^ I
More than half(56 percent)of the households consisted of a husband, �,
wife and children,while 29 percent consisted of a husband and wife only. 1 t. hrl IF M I L 1 �!
Another eight percent were singles and three percent consisted of a single [j C.I ANF `i�EIV
parent with children. -.I T _
The median price of the home survey respondents plan to buy is i=" "1 I( hl ILW 55
$125,000,and about 16 percent plan to spend$200,000 or more when they Cl-I ;'�I--j(�;� =N�
MN JJ31 /
I
buy a new home.The median value of their present home is$107,700.
-Carla Roehl,Editor
■
'Additional ,
2A—Chanhassen Sailor—Week of March 13, 1989 '
linspectors PERMITS : Development continues
'sought From previous page who conducts building inspec- salaries. But Harr and Kir-
Lions. "We're definitely over- chman noted that money col-
able to respond is by coming in worked here.And it's easy to see lected from builders for inspec-
By Christopher Burns early, staying late, taking plans why.I'd venture to guess we are tions — approximately half a
IIB
home at night, reviewing them growing at a rate of 25 percent million dollars last year—more
When city inspector Carl on weekends . . extending per year. And our staff has not than exceeds the salaries of
arke took his vacation last themselves to the point that grown anywhere near to keep inspectors.
month, the city got an earful overtime has clearly reflected up," Kirchman said. "The figures show the more
rom area home builders, the need for more help,"he said. In addition to dealing with inspections made,the more per-
Builders called to complain To address the situation, Harr growth, inspectors are dealing mit revenue comes to the city,"
about the three- to four day and Public Safety Director Jim with an increased emphasis by Harr said.
delay in inspections. Prompt Chaffee plan to submit a pro- Chaffee and Harr on inspections While Chanhassen is booming
ite inspections are critical, say posal to the City Council within as a tool to prevent emergen- now, will new construction, and
uilders, so they can proceed the next 60 days to hire two addi- cies.Harr explained that,as the the need for inspectors,continue
th construction. tional inspectors. city develops, the Public Safety into the future? "From talking
Assistant public-safety direc- "We have recognized the ob- Department is attempting to use to builders, there is no end in
lith
or Scott Harr said the delays vious need for more inspection inspectors to make it a safer sight," Harr said.
at occurred during Barke's time,with Chanhassen being the place. Kirchman said there are cur
-
"We reflect the need for boom town it is, combined with "We put a great deal of energy rently more than 600 platted lots
more inspectors. the fact that we take the inspec- into what happens before the in the city on which developers
"The walls came in on us. Lion part of public safety very emergency,"Harr said.Review are ready to build homes.
eople are very much used to seriously," Harr said. of construction plans and "We're no longer a small, in
getting a very prompt response , He and Chaffee have the changes in lighting, construe- dependent town. We're part of
from our building inspectors," i statistics to back up their asser- tion, and access can affect the Twin Cities.The Twin Cities'
e said. tion of an increased work load. future emergency response. growth continues, and we're
Harr said Chanhassen's three : The number of building permits "Our goal is not to need next in line," Kirchman said.
wilding inspectors have been issued for homes has more than emergency response. We want "We're clearly getting what
able to keep up with inspections tripled in the last four years. to create such a safe environ- Eden Prairie has experienced
110 y taking other parts of their
b, such as plan reviews,home Commercial development has ment so that we don't have a recently," Harr added.
also increased. From 1987 to building collapse . . "he said. Harr said additional inspec-
with them. 1988, the total number of Harr said the request for addi- tors could be hired under the
• "The reason they have been building permits increased by tional - employees would proviso that their employment
PERMITS: To next page 69. recognize that adding bodies to might be short-term if develop-
Steve Kirchman is one of the • the city's payroll results in more ment hits a downturn.
three public-safety employees expenses than just additional
IPublic Safety Inspections
Yearly Comparisons
I 0
15-
® Inspectors E ] Permits Issued(x100)
ri
PI 1r-2
I Io_ C
I S - 'l
9 i j E ;;
�� T ! T-- is rii
1r79 Yr80 Yr81 1r82 Yr113 1r84 1r83 ',86 Yr87 Yr88 Yr89
1989 Ealimated
I -
I
1
Pace of building inspections
I
means long hours, complaints i
By David Pedersen 1
For home builders like Dave
S:. S s S Gestach, timing is important.
He has to coordinate the progress rY x ,.,'
on each home he builds with the _
schedules of electricians, plumbers �.� ,., - `# .>,
and other subcontractors he hires— r - _ g 1
even Mother Nature's erratic sched- 7�
The home buyer usually has a ' .s s^t }
schedule to meet, too—a closing ,,..y, ''' '
date.A delay in that date can mean ,= 1
the difference between an affordable "` _-- -
interest rate,and one that is just beyond -._:-.;� - i
the buyer's means. ;R r1.
•If the builder has delays in his --. `"4, _ 7:= srf } '
schedule,it can cause a chain reac- -'"'t. . ;;; tt m �3
Lion. The builder might have to re- ". ° ,. �r
schedule some electrical work(if the jej , f ,.
electrician can reschedule his other s f w
jobs)or it might mean working into -ht ,, ... r p ::2
the night or into the weekends to ? 4 1 t .-
catch up. A week's delay can also ',g:5I,. �M� ;_ -( , 1
mean the difference between pour- 1' -?. fr �"' ,� -y ic,::-,1!', # ;
ing footings in 40-degree weather or fs _t ' '10-degrees below zero. ,err f rig t #
What the builder doesn't usually iS / s
expect is to wait several days before , 4 x i''j 1
a building inspector gives him per- fit` - t la d `
mission to move on to the next step. :7:-"' 'i, �� .
But some builders in Chanhassen �3aa :..,,H, ' •t . , S -r"
are getting frustrated with the delay .,° ,
in scheduling the numerous inspec- 1 ` .. t i `r�•: 1.--,,,.;- x; ;
Lions that must be completed through- v �' ti. --j'''-'5' 't
out the building process. 1 1
..
"It's a vicious circle,"said Ges- ar y. ,
tack, whose company, Gestach & • •
Paulson, builds family homes in RON JULKOWSKI, building inspector, makes a return visit to a
Chanhassen. Chanhassen home that didn't pass an inspection the tirst time around. 1
Gestach and several other build- (Photo by David Pedersen)
em recently sent complaints to the ski said. " o We're doing more than Lion,drywall,plumbing,heating and
city when they had to wait as long as
a week before an inspection could be we're supposed to do in a day." a final inspection. Commercial
booked. Typically, a building inspector velopments require longer and more
1
It had been a bad week for the might do 12 inspections a day.Cur- detailed inspections.
inspections department,a bat,howe for the rently, Julkowski and Steve Kirch- Julkowski said that most cities
one of its two building inspectors on man are seeing days with as many as provide one-day service when a builder
in-
vacation, two bonding inspectors
short ctors on 18 to 24 inspections,requiring them calls in for an inspection. "The in-
weck due to the President's Holiday. often to come in early,leave late,and dustry standard is 24 hours,"Julkow- 1
But with spring and summer work some evenings and weekends ski said."We'd like to do it the same
approaching, Building Official Ron to maintain the schedule. day if we could."
Julkowski is more than concerned Altlt°ugh an actual inspection In Eden Prairie,a community that
about the workload that is expected might last 15-20 minutes,with driv- has been experiencing major growth
to overtake the department.An indi- ing time included, each might re- throughout the 1980s, Building In-
to overtake
of what's ahead for them,he quire 45 minutes of an inspector's Spector Kevin Schmieg heads up a
said, is that February was supposed time,Julkowski said. department of six field inspectors
illji
to be a relatively quiet month, but In the past two Years, there re- and three plan reviewers. Schmieg
-- inspections continued at a steady rate. ally hasn't been a quiet time," he said it is difficult to come up with the
This year, there is no expected said. parameters to match the number of
slow-down in residential construe- Buildcrs say they are stymied when inspectors needed with the amount 1
lion, and two major commercial an inspection is delayed more than a of growth a city is seeing. "I
endeavors in Chanhassen — couple days. know .I've tried,"he said.
Rosemount and McGlynns — will
said Jte Miller,of Joe Miller Homes, But he empathized with Chan-
require almost daily inspections. that coordinating his work with hassen's inspectors: "Doing 20 in-
With that in mind, the Public the extremes in weather can be dtf(i- spections a day makes it really tough
Safety Department, which admini- cult,especially when a builder wants to get the job done:' t 1
stets the building inspections,is plan- to pour footings lx fore the frost goes Julkowski said that his office is`
sing to ask the city council this spring into the ground, not blind to the concern that spend- \
for permission to hire two more full- Miller,whose company has built ing more money to hire more tnspec- V
time inspectors. as many as 50 homes in city since last tors could be followed by a Slow-
Since 1985, when he started September,said that he has not expe- down in the economy and the hous-
working for the city,Julkowski said, rienced delays of the sort that have ing market."But there's no doubt in 1
Chanhassen has been experiencing a occurred in Chanhassen."Not in any anyone's mind that through 1990 we'll
growth spurt that is expected to con-
city or suburb,"he said. have enough work for the inspec-
tinue for many years to come.During Gestach said that meeting a chx- tors,"he said.
the past four years, the inspections ing date for the buyer is of utmost He noted that even when there
department has had two full-time importance. "They're really locked was a slowdown in the market during
building inspectors,includinglulkow-
it,"he said."If they don't close on Eden Prairie's building boom,"noth- 1
ski,and one other lull-time inspector that date, their interest rates go up." ing really slowed down there."
for plumbing and heating. "You don't realise how contpeii- The builders in Chanhassen
But at the carne time,the number tive this business is," Gestach said. emphasize that they understand that I
of rcrmits issued has nearly doubled. "And we pay a good fee for these the inspectors are cluin!_the hest job
In 1981,for example there were 159 permits'' they can. "We don't have anything j `�
Chan-
sing family homes built in Chan- px Residential homes might require against the city,"said Gestach."But ]
basses:in 1938,there were 35Z new as many as l0 inspections during the this is a problem that needs to be
•
homes built. building process, such as for hex- addressed. It's a sleeper"
"We're hooked solid," Julkow- logs, foundations, framing, insult-
0
I
—list:':
■