Council delays $12 million in third‑party rental‑inspection contracts after members press for Detroit‑based inspectors and training pipeline

Detroit City Council members on April 8 asked procurement and Building/Code officials to explain why four multi‑million‑dollar third‑party contracts for single‑family and two‑family rental inspections were written to multiple outside firms, and they postponed final approval for one week to get additional information.

Councilmember Angela Callaway moved to bring the four line items (agenda items 21.5–21.8) back in one week after pointing out that at least two of the winning contractors are based outside Detroit and Michigan towns she described as several hours from the city. “I cannot support $3,600,000 going to Westerville, Ohio, and $4,200,000 to Athens, Michigan,” Callaway said, asking procurement and BC staff to explain why locally based firms were not used and whether those out‑of‑town contractors will hire Detroit residents.

Procurement and Buildings/Code director Dave Bell said the city issued a request for quotes, held an outreach session with more than 75 attendees and evaluated submissions under city procurement rules, which include crediting Detroit vendors. Bell said the city will define inspection points, require photo documentation for pass/fail outcomes and monitor submitted photos in real time to reduce subjectivity. He also said the dollar totals published in the agenda documents represent maximum contract amounts over multi‑year terms and that actual payment will depend on the number of inspections completed.

Deputy Chief Operating Officer Andy Taverna and other administration staff said the contracts were designed to retain the city’s expected operational pace and to allow the planned citywide rental‑inspection program to launch as scheduled. “We were aiming to launch the new inspection system May 1 citywide, which is dependent on these contracts,” Taverna told the council. Several members said they support launching an effective inspection program but want more assurance that the work will benefit Detroit residents and local workers.

Councilmembers and staff also discussed creating a longer‑term pipeline of trained local inspectors. Members raised apprenticeship and trade‑training options, including partnerships with union training programs and community colleges, and asked administration staff to return with comparative cost and staffing analyses that show the tradeoffs between contracting now and building city capacity.

Procedural outcome: Councilmembers postponed the four procurement items (21.5–21.8) for one week so procurement and BC can provide requested information on vendor selection, local hiring, hourly or per‑inspection rates, and whether the contracts can be divided to include Detroit‑based firms. Officials said they will provide the procurement outreach list, vendor proposals and more detailed staffing numbers to the council before the resumed vote.

Ending: The council will revisit the contracts at the next formal session after administration and procurement answer members’ questions and provide cost and staffing comparisons, including options for training local inspectors.