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Metro WestZIN MM Metro West Inspection Services, Inc. Proposed Hourly Rate Increase Upon completion of the review of our January 1, 2oso contract, we have become aware of no hourly rate increases. To remain competitive with increased operating costs, we are proposing a stepped rate increase to take place over the next 2 years. This increase will bring us closer to supporting the industry standard. Business has changed significantly since 203.o and everyone in the building industry has been a part of these changes. We were in the lowest building period in 2009 with an abundance of Building Official's. Each year after 2009 the building industry has seen a slow and steady increase in building construction with a steady decline in available experienced Building Officials. The proposed increase will allow us to remain competitive with the increased cost of conducting business and staying competitive with the salaries of our inspectors. With the current shortage of experienced Building Officials, due to a large volume of retirements, it is very important to keep our current experienced staff compensated at industry expectations. These salary expenses include, but are not limited to, salary, health insurance, vacation and continuing education. Metro West will continue to provide the City of Otsego the same level of service with our professional, experienced, licensed and educated Building Officials. Metro West will continue to keep Minnesota State Certified Building Officials available to review, permit and inspect all State delegated projects in Otsego. With Metro West's State delegation agreement in place the city retains all permit and plan review fees for State Licensed Facilities, i.e. Schools, Supervised Living Facilities and Hospitals. We will continue to provide uninterrupted staffing during absences for illnesses, vacations and continuing education. Inevitably, when the building industry slows and your needs change, Metro West will be available for only the hours that we would be needed. Metro West Inspection Services, Inc. is respectfully proposing a rate increase for Professional Building Services from $50.0o per hour to $62.50 per hour effective January 1, 2018, of the new budget year. With a stepped up hourly increase of $12.50 to $75.00 per hour, on January 1, 2020. Through all or any changes in the building industry Metro West will keep all insurances in place, Work Comp, General Liability, Commercial Auto and Bonds for Minnesota Pollution Control. Metro West will keep our Building Officials current on continuing education which is required to maintain certifications.