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CR 99-190 Health Inspection Services September 30,1999 ~ Council Report 99-190 HEALTH INSPECTION SERVICES Proposed Action Staff recommends that the Council approve the following motion: Move that the Hopkins Citv Council authorize the City Manager to sigh the Independent Contractor Agreement. Approval of this motion will result in an agreement with Mr. Larry. Myers for the provision of health and sanitation inspection services. Overview In July the City Council authorized staff to seek proposals from individuals to provide Hopkins with health and sanitation inspection services. Staff sent letters to every licensed health inspector in the metro area to determine whether there was anyone interested in contracting with the City for this service. Staff received letters indicating interest from ten individuals. Of the ten individuals only Mr. Myers had direct experience doing health inspections and was not currently working full time for another government entity. Mr. Myers is qualified to provide this service. The contract calls for a rate of $40.00 per hour. If Mr. Myers works an average of 8 hours per week the annual cost would be approximately $16,600. Actual costs will depend on the numbers of hours worked. Primary Issues to Consider What services will the Independent Contractor provide? What provisions are there for ending the contract? Supporting Information Independent Contractor Agreement enellie sistant City Manager Council Report 99-190 2 Analysis of th Issu s What services will the Independent Contractor provide? The Independent Contractor will provide the following services: Perform all required inspections of food and lodging establishments in the City of Hopkins, at least annually, for the purpose of enforcing all provisions of the City food code and Minnesota State Health Department Standards and Regulations that are applicable to restaurant and food services and food and lodging establishments. Provide all required inspections of public swimming pools located in the City of Hopkins, at least twice annually, to ensure compliance with Minnesota State Health Department standards. Provide plan review services for all new or remodeled food establishments and restaurants to ensure compliance with all applicable state and municipal laws. Perform investigative services, as required, for investigation of food-related complaints and enforcement of violations and complaints relating to food and lodging establishments and public swimming pools. Prepare and issue all necessary orders, compliance notices, correspondence, reports, and maintain records as may be necessary for enforcement of and verification of the compliance with the health and sanitation laws. The Independent Contractor is also expected to assist city staff with other health-related issues that may arise and provide recommendations for improvements in the health and sanitation laws. Independent contractor shall also assist in prosecution of any violations investigated by the Contractor, including court appearances and testimony. What provisions are there for ending the contract? The agreement may be terminated, by either party, upon 90 days written notice. Alternatives 1. Authorize staff the City Manager to sign the independent contractor agreement. 2. Do not authorize the City Manager to sign the independent contractor agreement. Staff reqommends Alternative #1. INDEPENDENT CONTRACTOR AGREEMENT THIS INDEPENDENT CONTRACTOR AGREEMENT (this "Agreement"), is made and entered into effective as of the _ day of , by and between the City of Hopkins, a municipal corporation under the laws of the State of Minnesota (the "City") and (the "Independent Contractor"). RECITALS: A. Independent Contractor represents that he or she is licensed and qualified to provide professional inspection services of the type described in this Agreement. B. The City wishes to retain Independent Contractor as an independent contractor to perform the professional inspection services described in this Agreement. C. The City and Independent Contractor have agreed that Independent Contractor shall be retained by the City as an independent contractor to provide the professional inspection services described in this Agreement in accordance with its terms and conditions. NOW, THEREFORE, in consideration ofthe foregoing Recitals, which are incorporated in this Agreement, and ofthe mutual agreements herein contained, it is agreed as follows: 1. Services to be Provided by Independent Contractor. Independent Contractor agrees to work diligently and use his or her best efforts to provide the following inspection services and professional services for the City: a) Perform all required inspections of food and lodging establishments in the City of Hopkins, at least annually, as required by and for the purpose of enforcing all prov:isions of the City of Hopkins Food Code, Minnesota State' Health Department Standards and Regulations, health codes and all other statutes, laws, codes, rules, regulations and standards applicable to restaurant and food services and food and lodging establishments. b) Provide all required inspection of public swimming pools located in the City of Hopkins, at least twice annually, to ensure compliance with Minnesota State Health Department Standards and all other statutes, laws, rules, regulations and codes applicable thereto. c) Provide plan review services for all new or remodeled food establishments and restaurants to ensure, compliance with all c :\fiIe\hopc iv\indcontr .agt - I - applicable state and municipal statutes, ordinances, laws, standards, codes and regulations. d) Perform investigative services, as required, for investigation of food- related complaints, including those related to food-borne illnesses, and enforcement of violations and complaints relating to food and lodging establishments and public swimming pools. e) All of the codes, standards, regulations, statutes, laws, ordinances and rules referred to in Subparagraphs a)-d) of this Paragraph 2 are hereinafter collectively referred to as the "Health and Sanitation Laws". f) Prepare and issue all necessary orders, compliance notices, correspondence, reports and maintain records as may be necessary for enforcement of and verification of compliance with the Health and Sanitation Laws. The Independent Contractor is also expected to assist City Staff with other health-related issues that may arise and provide recommendations for improvements in the Health and Sanitation Laws or other related codes to improve service delivery and safety. Independent Contractor shall also assist in prosecution of any violations investigated by Independent Contractor, including court appearances and testimony. Independent Contractor may not subcontract or delegate the performance of the services to be provided by Independent Contractor under this Agreement without the prior written approval of the City, which approval may be withheld in the City's sole discretion. 2. Services to be Provided by City. The City shall provide all required prosecution services by the City Attorney, as needed from time to time to assist in enforcement of the Health and Sanitation Laws. The City shall also provide the assistance of the City's plumbing and mechanical inspector for consultation with the Independent Contractor and other assistance, as necessary, in the performance of the Independent Contractor's duties under this Agreement. The City also agrees to include the Independent Contractor as an insured under the general liability and errors and omissions insurance policies maintained by the City. Independent Contractor acknowledges and agrees Independent Contractor has been advised and is aware that the City's liability for claims arising under the general liability and errors and omissions insurance maintained by the City is limited, as provided in Minnesota Statutes Chapter 466, and that the general liability and errors and omissions insurance to be maintained by the City is presently subject to the following limits: a) $300,000 when the claim is one for death by wrongful act or omission and $300,000 to any claimant in any other case; c: \file\hopciv\indcontr. agt - 2 - b) $750,000 for any number of claims arising out of a single occurrence, for claims arising on or after January I, 1998, and before January 1,2000; and c) $1,000,000 for any number of claims arising out of a single occurrence, for claims arising on or after January 1,2000. Independent Contractor shall be solely responsible to maintain, at Independent Contractor's sole expense, any additional general liability or errors and omissions insurance coverage that Independent Contractor deems necessary in the performance of the services to be performed by Independent Contractor under this Agreement. Independent Contractor shall be responsible for his own office supplies, transportation, telephone, office equipment and other facilities and materials necessary for the performance of the services to be provided by Independent Contractor under this Agreement. 3. Records. Independent Contractor agrees that all correspondence, reports, records and documents relating to the performance of the services to be provided by Independent Contractor under this Agreement, including, but not limited to, all records, correspondence, reports and documents related to the enforcement of the Health and Sanitation Laws by Independent Contractor, shall be and remain the absolute and exclusive property of the City. All letters, correspondence, reports and other documents prepared, issued, received or obtained by Independent Contractor, and all other documents, papers or other materials pertaining to the services performed by Independent Contractor under this Agreement and the enforcement of the Health and Sanitation Laws shall be and remain the exclusive property of the City and shall be delivered to the City for its records. Independent Contractor agrees to return all such documents and records to the City upon termination of this Agreement and further agrees not to retain any copies thereof. 4. Compensation and Expenses. All services performed by Independent Contractor under this Agreement shall be compensated solely by the payment to Independent Contractor of compensation in the amount of Forty and 00/1 00 Dollars ($40.00) per hour for each hour of services provided by Independent Contractor under this Agreement. Independent Contractor shall keep itemized, written records of the services provided by Independent Contractor under this Agreement, and shall submit itemized, monthly time records and compensation requests to the City Clerk no later than the fifth (5th) day of each month during the term of this Agreement. The City shall pay Independent Contractor the compensation due to Independent Contractor for each monthly compensation request submitted to the City Clerk within days of delivery of each such request. Independent Contractor shall be entitled to no other compensation for the services provided by Independent Contractor under this Agreement. The City shall not be liable to payor reimburse Independent Contractor for any expenses incurred by Independent Contractor unless reimbursement for such expenses has first been authorized, in writing, by the City. 5. Indemnification and Authority of Independent Contractor. With the exception of claims covered by the general liability and errors and omissions insurance to be maintained by c :\file\hopciv\indcontr. agt '" - .) - the City under Paragraph 2 of this Agreement, Independent Contractor shall be liable for and shall indemnifY and hold the City harmless from all liabilities associated with any negligent or intentional acts or omissions or any fraudulent acts or misrepresentations of the Independent Contractor in connection with the performance of the services to be provided by the Independent Contractor under this Agreement. Independent Contractor also hereby releases and forever discharges, and agrees to hold the City harmless and indemnifY the City from any and all costs, damages or liabilities suffered or incurred in the performance of the services to be provided by the Independent Contractor under this Agreement either to Independent Contractor or the property of Independent Contractor. Independent Contractor specifically waives any right of subrogation for such costs, damages and liabilities that may be claimed by or on behalf of any insurer of Independent Contractor. Independent Contractor shall have no authority to bind the City to any agreement, promise or representation unless specifically authorized to do so, in writing, with respect to a particular matter. 6. Independent Contractor Status. This Agreement does not constitute an employment agreement between the parties. The Independent Contractor shall remain an independent contractor, and not an employee, of the City in accordance with the provisions of this Agreement at all times. Independent Contractor is under the control of the City as to the result of Independent Contractor's work only to the extent stated in this Agreement and not as to the means by which Independent Contractor's services are provided under this Agreement. Independent Contractor shall have the right to choose his or her hours of work and may accept employment in other endeavors, provided such other employment does not interfere with the performance of the services to be provided by Independent Contractor under this Agreement. This Agreement shall not be construed as a establishing a partnership or joint venture between the City and Independent Contractor. Without limiting the generality of the foregoing provisions, Independent Contractor shall not be considered an employee of the City for purposes of the Public Employment Labor Relations Act, Public Employees Retirement Association, or any other statute, law, code, standard or regulation applicable to persons employed by the City. Further, Independent Contractor shall not be entitled to receive, nor shall the City be obligated to provide, any benefits such as vacation or sick leave pay, pension, holiday or overtime payor insurance benefits or reimbursement for insurance premiums, other than the insurance coverages specifically required by Paragraph 2 of this Agreement. Independent Contractor shall not be treated as an employee of the City for federal or state tax purposes or for purposes of workers' compensation or unemployment compensation benefits. Independent Contractor shall be solely responsible for payment of all income tax, income tax withholding and FICA payments payable with respect to the compensation received by Independent Contractor under this Agreement. Independent Contractor shall also obtain, at his own expense, all worker's compensation insurance or other insurance required in connection with the performance of Independent Contractor's duties under this Agreement, and the City shall have no obligation to provide any insurance benefits for Independent Contractor other than the insurance coverages specifically required by Paragraph 2 of this Agreement. 7. Term of Agreement and Notices. The ternl of this Agreement shall begin on the date stated in the first paragraph of this Agreement. This Agreement may be terminated by either c: \fi I e\hopciv\indcontr.agt - 4 - "-~ _J . .- party giving the other party ninety (90) days' written notice of termination. Such written notice shall be personally delivered or sent by first class, U.S. Mail, addressed as follows: To City: City of Hopkins 10 10 First Street South Hopkins, Minnesota 55343 Attention: City Clerk To Independent Contractor: If notice is personally delivered, such notice shall be effective upon delivery. Mailed notice shall be deemed to be given two (2) business days after the date of mailing. Any other notice, correspondence or other communication between the parties shall also be addressed and delivered as stated in this Paragraph 7. All of the documents and records identified in Paragraph 3 of this Agreement shall be and remain the sole property of the City, and shall be retained by and/or delivered to the City at the time of termination of this Agreement. Independent Contractor agrees to continue to cooperate with and assist the City in the investigation and/or prosecution of any matters that are pending after the termination of this Agreement, including consultation with the City Attorney and other independent contractors or employees of the City, and court appearances, as necessary. Independent Contractor shall be compensated for such post-termination services at the compensation rate stated in Paragraph 4 of this Agreement. 8. Confidentiality of Data. Independent Contractor shall not, at any time, release, divulge or disclose any documents, reports, information or data relating to the services performed by Independent Contractor under this Agreement to any party other than the City without the prior, written authorization of the City. IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the date and year first above written. CITY OF HOPKINS INDEPENDENT CONTRACTOR By By Its APPROVED: City Manager c: \fi1 e\hopciv\indcontr .agt - 5 -