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HomeMy WebLinkAboutAGENDA REPORT 1994 0615 CC REG ITEM 11S nnnA 11. MOORPARK, CAIIFOTTE. City Counc Meeting of ' 199 y AGENDA REPORT ACTION: CITY OF MOORPARK i ♦ . TO: The Honorable City Council iyC/ FROM: Jaime R. Aguilera, Director of Community Development'` DATE: May 27, 1994 (CC meeting of 6/1/94 ) SUBJECT: CONSIDER A PROPOSAL TO PROVIDE IN-HOUSE BUILDING INSPECTION AND PERMIT SERVICES Per the City Manager's direction the following report is a feasibility study prepared to consider the possibilities of the City of Moorpark providing it's own Building & Safety Inspection and Permit Services. Process: While conducting this feasibility study, I considered the supervision, public access, and interoffice coordination and communication. I analyzed three different approaches to the issue: 1. Maintaining our existing contract with Charles Abbott & Associates (or another private contractor) ; 2 . Contracting with the County of Ventura; 3 . Creating our own Building and Safety Division within the Community Development Department. In the process of the investigation I met with Mr. Bill Windroth, Ventura County Building Official in order to discuss a possible contractual arrangement with the County Building Department. Analysis: As a result of my meeting and the review of the County's proposal, I came to the conclusion that both Abbott and the County proposals were similar. However, for the purposes of this report they will be treated separately. The chart on Page 7 was compiled to show the comparison of each of the factors considered. An analysis of the chart will provide the reader with information which leads to the conclusion that the City's proposal is the most viable. Given the conclusion that the City's proposal is most desirable an analysis of the advantages and disadvantages yields the following: i ZOORPAPK, CALIFOR^"A 4 o S, (di () City Cou (Welling of l5 199Y C:\94AMJ\B&S.CON ACTIO • 10:41 am The Honorable City Council May 27, 1994 Page 2 Advantages: The City proposal will cost less to operate; for example, it will provide more inspection time, it will reduce the customer's processing trips to other locations, and provide a one -stop permit location which will enhance customer service and meet State requirements. The City will receive greater revenue to defray the existing overhead of the Community Development Department. Special projects will be handled by staff at no additional cost and direct supervision will result in greater coordination and implementation of City policies and direction. The remaining portion of the revenue will be held in reserve to defray Building and Safety costs during those periods when the revenue does not cover the costs of operation. Disadvantages: The City proposal requires that major project plan checking will need to be conducted by a contract consultant. There will be a one time expenditure required for office furniture computer hardware and software as well as a vehicle. During extended periods of very low revenue from Building and Safety operations (less than $8,500 monthly average) this function will need to draw upon reserves set aside for this purpose). The need for supervision by the Director will require a reduction of time on his part spent on planning issues (time needed to supervise building and safety by Director increases to 10 percent from current 5 percent) . The proposal will also result in more varied dutces for the Assistant Planner (counter person), the Code Enforcement Officer and the department secretary. It is expected that the Assistant Planner will cover the counter for the Building Inspector during those hours that he /she is in the field. The Code Enforcement Officer will provide coverage in the absence of the Assistant Planner. The Assistant Planner and the Secretary will be able to answer non- technical questions and issue Building Permits once the Inspector has authorized them to do so. They will also issue Building Permits for minor work such as water heater replacement. The Secretary will also assist: the Inspector in logging -in inspections, keeping files, collecting fees, tracking permits, making appointments, etc. This will result in an increased demand on the Assistant Planner's time of about 1.5 hours a day and 3.0 hours a day for the Secretary. Both can accommodate the change by shifting some responsibilities to the Associate Planner, the Code Enforcement Officer, and the Department Administrative Secretary. A: \B &S.CON 10:57 am The Honorable City Council May 27, 1994 Page 3 Specifically the Associate Planner will assume all lot line adjustment projects, or in her absence a Senior Planner, and a higher percentage of research duties, the Administrative Secretary would assume responsibility for the biweekly department report and other typing duties, and one Code Enforcement Officer would be required to reduce his time spent cn code enforcement by 5 percent (two hours per week). Fiscal Analysis: Staff reviewed the Building Permit revenues from October 1992 through October 1993. The gross income from Plan Check fees was $123,883. The gross income from miscellaneous fees was $25,953. The gross income from Inspection fees were $402,001. It is expected that Building Permi revenues in the future will be higher as the economy moves out of the recession. Considering the low revenue picture, the City's position is still favorable. The chart will indicate that the City's direct and indirect cost for providing an in -house inspector position would be $69,992 yet the City revenue would be $551,837. Personnel Options: In order to avoid hiring consultants to replace our Building Inspector when he /she is on leave or to supplement our Building Inspection personnel, the City could consider the use of Code Enforcement personnel by providinc:, appropriate cross training. By keeping our personnel costs in i;ouse we would greatly reduce our costs for consultant services which not only cost more than our employees, but may not, provide as 'community sensitive" service as our own employees. The $481,845 ($551,837 less $69,(-92) remaining would be used to offset current overhead which is not being totally defrayed and provide for Plan Check Services, specialized inspection, Building Official Consultation, backup serv''ce.; (sick leave, vacation, etc.) and peak demand deputy inspector. It may also be advantageous for the City to build -in to the Inspector's time one -half hour of overtime per day in order to lessen the impact on current employees and provide longer counter coverage. A: \B &S.CON 10:57 am The Honorable City Council May 27, 1994 Page 4 Current Carryover Amount: The October 1993 monthly billing from Abbott and Associates shows a carryover amount of $155,285. As of the March 1994 billing the carryover amount is $173,304.77. This amount will be used to pay Abbott for finishing of inspections under way at the time the transition takes place. However, it is possible that the City may agree to split some of the inspection responsibility with Abbott. In such a case the City would receive a portion of the carryover amount. Office Hours: Currently the Contract Inspector is in the field 4 hours a day and available in the office for consultation with the public 4 hours a week for a total of 24 hours per week. It is expected that the City Inspector would use the same amount of field hours, but that the office consultation hours would expand between five and ten hours per week with the remainder of the time spent on Plan Check. This will provide for an average of up to two hours per day for assistance to the public by the inspector. A regular schedule for office hours would be displayed with some of this time set aside for appointments to optimize the c:'ity's customer service objectives. Consultation With Other Cities: Staff has also contacted the cities of Lancaster and Santa Clarita who converted from contract Building Inspection services to in- house services. The purpose for having contacted these cities was to ascertain if these entities experienced any problems in the transition. Both cities indicated that they were happy with the transition, that they saved money, and that service to customers has improved. It was their recommendation that we plan on an overlap period in which our inspector would work at our contractor's office for two to four weeks. Storage of Records & Pertinent The voluminous amount of Building and Safety records could require that an additional storage space be acquired (either rented or purchased). It is expected that all records will be placed on optical disk by the City Clerk's )ffice within twelve to eighteen months. A: \B &S.CON 10:57 am The Honorable City Council May 27, 1994 Page 5 This process could, and probably should, be accelerated by contracting with a company who specializes in entering all records onto optical disk. F.ST2MATED BUDGET FOR FISCAL YEAR 94/95 Conclusion: One can conclude from the above Ana_Lysis that the City operated Building and Safety program will provide a similar or higher level of quality customer service, will be more cost efficient, and will produce a higher level of reveni.e which can be used to offset related Department of Community D -ve opment costs. Recommendation: 1. If the Council concurs with the report staff should be directed to: 1Note: $50.00 per hour is estimated for the rate charged by a consulting firm, it may be possible to hire an individual on a contractual basis for less thar this rate. A: \BBS.CON 10:57 am $10,000.00 Software and software training. $ 5,000.00 Computer and two prin+ers (one dedicated to building permits). $ 2,500.00 Contract for Optical Disk Input $ 10,000.00 Furniture and new off..ce space.. $ 102,461.00 Inspector salary and then related personnel. $ 12,000.00 New Vehicle Pager - Yearly Cost Misc. Expenses $ 150.00 $ 500.00 $ 4,340.00 Overtime $ 24,100.00 Other (telephone, xer)x, printed forms, supplies, etc.) $ 58,101.00 Consultant Plan Check Services $6500. Building Inspector Du.-ing Planned /Unplanned Absences @ 130 hours per year @ $50 /hr.. Sub Total - Operat..i.nc Costs Revenue Grand Total $235,652.00 $ 299,040.00 $63,388.00 Conclusion: One can conclude from the above Ana_Lysis that the City operated Building and Safety program will provide a similar or higher level of quality customer service, will be more cost efficient, and will produce a higher level of reveni.e which can be used to offset related Department of Community D -ve opment costs. Recommendation: 1. If the Council concurs with the report staff should be directed to: 1Note: $50.00 per hour is estimated for the rate charged by a consulting firm, it may be possible to hire an individual on a contractual basis for less thar this rate. A: \BBS.CON 10:57 am The Honorable City Council May 27, 1994 Page 6 a. Begin recruitment for a Senior Building Inspector position at a salary range 18 (range 18 $41,114.58 - $49,994.10 [or $1,581.93 - $1,922.85 multiplied by 26 weeks and divided by 12 months]) . ($69,992 includes an estimated 40 percent benefit package.) b. Initiate a transition plan to be presented to the Council for approval. C. Initiate a Request for Proposals for a contractor to begin the process of imputing al1 building records into optical disk. d. Create a budget for the Bui Lding and Safety Division of the Community Development Department to be presented to the Council for approval. e. Create a time table for implementation to be presented to the City Council for approval. f. Secure quotes for plan checking, backup inspector, consultation services frog County of Ventura and private contractors. Attachments: 1. Table showing Building Department revenues since the Charles Abbott & Associates contract was approved. 2. A list of major pending perm=its. A: \BBS.CON 10:57 am The Honorable City Council May 27, 1994 Page 7 i may.. Criteria Abbott & Associates Proposal Ventura County Proposal City of Moorpark Proposal Estimated Annual Cost $343,032 2$70- 80,000 3$102,461 Staff Provided One full -time Counter Technician. One Counter Technician half -time. One full time Building 4Inspector. One Inspector as needed. One Inspector as needed. One Plan One part time Counter Technician. One Plan Checker as needed. I Checker as needed. Location Counter Technician and Inspector will work out of their office at 111A Poindexter Avenue. I Counter Technician would work out of City Halt and the Inspector & Plan Checker would work out of the East Valley office. Counter Technician, and Inspector /Plan Checker would work out of City Hall. The location at City Hall is a better This proposal combines the best features Customer Service Due to their location, customers are different offices. method than the Abbott proposal, of the other 2 proposals; it is located required to visit 2 however the use of a counter at City Hall and it has a full complement This causes an undue hardship on is that technician for four hours does not of staff available to assist customers. clients. The positive aspect located on the provide for full coverage and the the inspector is also issue is site and therefore the range of information this person can information that may be given is much limited. I larger. — — - j j Yes. part-time. Yes, full time. na ? nd Nn related materials. + -- -- I j Not quantirled but estimated to be a Estimated r; he 837;150. Start UP Costs Cost to the Sty f ,.__ ��. None i minimal one time expenditure. desk, phone, etc. By the Community Development By Community Development Director, Supervision '� orrrn� ,o, p,P�* rPrror 5% his time required 1 Director. Approximately 5% of his i approximately of his time to and Approximately _f review charges and resolve disputes time required to review charges and supervise, make code interpretations make to 1 resolve disputes. resolve disputes. i 2. This estimate from the County is probably very low. The County man -hour costs are very similar to Abbott & Associates costs. Therefore, it would be expected that the actual County costs would range between $300,000 and $350,000. 3. Certified Building Inspector at a Range 18 (Senior Planner level) with 40% benefit package, ($69,992); 10% of Director's salary and fringe benefits for administration ($9,289); 37.5% of Secretary's salary and fringe benefits ($13,257); 19% of Assistant Planner's salary and fringe benefits ($9,923). All salaries calculated at Step "E". 4. This person is already on payroll. A: \B &S.CON 10:57 am The Honorable City Council May 27, 1994 Page 8 Criteria Abbott & Associates Proposal $ 29,544 Plan Check Fee Ventura County ProPosat $ 29,544 Plan Check Fee city of Moorpark Pr t $ 65,785 Plan Check 402,001 Inspection Fee Expected net City revenue given a early permit gross revenue of 82,592 Inspection 82,592 Inspection Fee 25,953 Misc. Fee 25,953 Misc. Fee $551,837 including a Plan Check 25,953 Misc. Fee fee of $123,883 and a Building $343,032 Total $ 343,032 Total $491,134 Total Permit (Inspection fee) fee of $402,001. 208,805 Net to the City $208,805 Net to the City 6iity $491,134 Net to the City Other personnel costs rn city not Any use of personnel beyond the Any use of personnel beyond the The only extra cost may involve overtime the employee will be quantified. contract is a chargeable cost. contract is a chargeable cost. costs otherwise available for any special assignments as time allows. 0- -0- A one time expenditure of $20,000 should Other capital costs to the City. be made in order to computerize the operations. This cost will be shared by the planning department since the software may be utilized by both and will 5 Revenue from October 1992 through October 1993 was used as a base year. It is expected that future annual revenues will be higher. The amount of $551,837 includes $25,953 in miscellaneous fees. 6. Although the County of Ventura estimate does not agree with these figures, the County of Ventura hourly rates are similar to Abbott's; therefore, staff believes that these are more accurate than the County of Ventura's estimate. 7. This assumes that of the total amount collected for plan check ($123,883) approximately 30% ($37,165) will be credited directly to the City for plan check services rendered by our Inspector. Of the remaining $86,718, 66% will be paid out to a consulting firm for plan check services, the City will keep $28,617 to cover our administrative costs. Therefore, the total City net revenue from the plan check fee will be $65,782. A: \B &S.CON 10:57 am The Honorable City Council May 27, 1994 Page 9 COMMUNITY DEVELOPMENT DEPARTMENT PROPOSAL TO PROVIDE BUILDING & SAFETY INSPECTION AND PLAN CHECKING SERVICES Staff is aware of the City Council's goal to provide Moorpark's citizens with the highest quality of services. This goal, unfortunately, is sometimes tempered by the fiscal limitations that most cities face. In light of this, Staff has prepared the following information for the City Council and City Manager's consideration. I believe that the result of implementing this proposal will be to heighten customer service and coincidentall,,, create an appreciable monetary gain for the City. The Community Development Department proposes that the City hire a qualified (certified) Building :Inspector at the same salary range as a Senior Planner. The cost for such a person including benefits will be $69,992 per year. The Building Inspector would be directly supervised by the Director of Community Development. Technical assistance would be provided by the International Conference of Building Officials (I.C.B.O.) at art annual membership fee of $65.00. Other organizations such its i.A.P.M.O. would provide similar services for a similar membershij fee. The Building Inspector would provide Plan Checking services for minor permits such as pools, spas, room additions, re- roofing, electrical, etc. This would trans.-late into a 100% fee recovery for the City (approximately 8$37,165 innual.ly). It is proposed that major plan checking services be provided by a consultant at a flat rate of 66% of the plan check fee. This would result in a net additional revenue to the City of $23,617 annually. Any special inspections would be charged to the applicant on a time and materials basis. The positive effect of having a plan checker, and building inspector and building per -mil, issuing capability in -house include quicker turn around t.im(- and i1i one stop location for information and permits issuance. Although the inspector will have certain office hours the City w it l actually .increase his availability at no increase in cios f-om four hours a day to eight hours a day. The Community Development Depart.meiit secretary would be utilized to provide clerical and counter assist.an-E�to the Building Inspector. 8. Based on October 1992 through October 1993 Reve ue A: \B &S.CON 10:57 am The Honorable city Council May 27, 1994 Page 10 The secretary could also issue building permits, and calculate fees utilizing the computer software from Sierra Incorporated. The software and hardware can be purchased at a cost of under $10,000 and includes training. The software will be used for permit issuance, fee calculations, inspection monitoring, report writing, and permit tracking. The ,,oftware also contains programs for the purpose of tracking applications and creating a historical application entitlement data base for planning purposes. The software is geo -based and will -therefore allow for compatibility with future geo -based programs for both di.-visions. There may be times when there may be more work than a single inspector can accommodate. In such cases the Building Official (Director of Community Development) may hire Deputy Building Inspectors, as needed. This will provide the flexibility of having a larger Staff only when needed. The cost for the Deputy Building Inspector would be borne by regular permit fees. Whenever possible a Code Enforcement Officer will be crass trained to provide basic inspection and plan check services �iuri.ng i.11.nesses, vacation, etc. As needed a deputy inspector will retained to provide all of the duties of the regular inspector. Code Enforcement Officer and Assistant Planner staff will he ross-- trained to handle routine matters. I estimate that it will be possibl- tc hire the Inspector and make all necessary arrangements within 1 2 - ? month period. A: \B &S.CON 10:57 am