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Council hears staff analysis of Whitefish building inspection contract and in-house inspector prospects
Summary
Staff reviewed the city's contract with the City of Whitefish for building inspections (65% of fees retained by Whitefish) and said renegotiation is under consideration as Columbia Falls experiences increased building permit activity; staff noted the cost and certification burdens of standing up an in-house inspection program.
Staff said the city currently contracts with the City of Whitefish for building inspections under terms in which Whitefish receives 65% of the city's building inspection fees and that the arrangement includes a monthly minimum payment if revenue falls below a threshold. The city manager and staff said they are considering renegotiation due to increased permit volume and the costs of inspections and noted that establishing an in-house inspection program could require significant up-front investment in software, training, equipment and personnel.
Council members asked whether the city might stand up its own inspection service and what the break-even point would be. Staff replied that while an in-house program could make financial sense at higher volumes, qualifying inspectors with all required trade certifications and the cost of software and vehicles would push initial costs into the low hundreds of thousands and require careful planning.
