Title
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A Resolution Approving a One Year Contract with Three One Year Extensions for a Professional Services Agreement with HR Green, Inc. to provide Building Inspectional Services in an Amount Not to Exceed $540,000 per annum and Authorizing its Execution
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Introduction
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This Professional Services Agreement will result in the continuation of the outsourcing of day-to-day inspection activities to provide the best customer services experience. The not to exceed amount will be $540,000 for 2026 and, if extended, the same amount for each year thereafter.
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Recommended Action
Adopt the Resolution.
Prior Board Action
The Board has taken the following prior action(s):
• Extended HR Green contract on October 8, 2024, for FY 2025.
• Extended HR Green contract on November 18, 2023, for FY 2024.
• Approved HR Green contract on December 7, 2020, for FYs 2021-2023.
Background
HR Green has been with the Village since 2015. While HR Green has conducted themselves well, staff realized that there may be a way to create efficiencies with plan review and inspections by splitting the workload between two qualified building permit review firms (HR Green and SAFEBuilt). Staff also found that this configuration will produce cost savings for the Village, while still providing optimum customer service. The Development Services Department’s Permit and Development Division has historically outsourced both inspections and plan reviews for most large projects.
The Village initially hired HR Green to serve as the outsourced firm beginning in 2015. Most recently, the Village issued an RFP on August 31, 2020, seeking proposals for inspections and plan review services for an initial term of January 1, 2021 - December 31, 2023, with the option to renew the Agreement for two (2) additional one (1) year terms. That agreement ends December 31, 2025.
Earlier this year, an RFP was issued for plan review and inspectional services, to which three firms responded. The top two was HR Green and SAFEbuilt. Both were interviewed and their responses analyzed. Staff also conducted reference checks with many municipalities on both firms. Afterwards, staff investigated splitting the contract by awarding SAFEbuilt the plan review portion and HR Green the inspectional services portion. Staff will revisit this arrangement after six months to determine its viability for the future.
Timing Considerations
The Agreement would go into effect on January 1, 2026.
Budget Impact
The General Fund FY2026 account #1001-46250-101-530667 (External Support) has $1,400,000.00 budgeted. HR Green’s portion of the Agreement will not exceed $540,000.00 per annum. If the Village Board approves both separate Agreements (HR Green-$540K and SAFEbuilt-$330K) as proposed, the total cost for both would be $870,000.00.
Staffing Impact
There is no staffing impact associated with this item. The item aligns with the department’s core service delivery.
DEI Impact
There is no DEI impact associated with this item.
Community Input
There has been no community input given in relation to this item.
Staff Recommendation
Approve the Contract
Advantages:
• Splitting the service delivery is a cost savings to the Village.
• The current inspectional services team will remain in place.
Disadvantages:
• Loss of the HR Green plan reviewers who have been with the village for many years.
• There will be a learning curve for the new plan review staff from SAFEBuilt.
Alternatives
Alternative 1:
Continue outsourcing the contracts by keeping the existing firm.
Advantages:
• In addition to inspectional services, this would allow for consistency in plan review processes.
• There would be no learning curve associated with any permit application review process.
Disadvantages:
• The Village would not realize a cost savings if the requested amount from HR Green is supported.
• Staff would not be able to investigate the on-staff abilities of other firms who are less costly.
Alternative 2:
The Village could hire its own inspectors and plan reviewers.
Advantages:
• Almost everything could be handled in-house.
• This would provide more consistency in the long run, depending on retention.
Disadvantages:
• Based on workload and specialized certifications required, we would end up paying more when factoring in salary and benefits.
• Currently, there seems to be a shortage of qualified individuals.
Anticipated Future Actions
Contract extension or new contract for 2027 FY.
Prepared By: Sean Lintow Sr, Chief Building Official / Permit and Development Manager
Reviewed By: Craig Failor, Director Development Services
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. Resolution
2. Professional Services Agreement
3. RFP