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HomeMy WebLinkAboutAGENDA REPORT 1992 0219 CC REG ITEM 11AITEM 11r�. M00RPARK:1A,7K "ALIFC7N A L ,oat, -99 M.00 nark Avenue Moorpark, California =3021 r,C -CN• - , �' i K MORAND UM TO: The Honorable City Council FROM: Patrick J. Richards, Director of C nnm ty Development DATE: February 14, 1992 (City Council Meeting 2- 19 -92) SUBJECT: MINIMDM SERVICE FIINDING - BUILDING & SAFETY OiFFICE BACKGROUND Various matters regarding Building and Safety services have been discussed by the City Council for the past several months. Fee increases regarding plan checks and permit issuance were approved by the City Council at the February 5, 1992 meeting. Also, at that same meeting the Council agreed to a reduction in the amount of time the Inspector would be available to the public (minimum two hours per day two days a week). The Inspector may be available additional hours if service demands, supported by fees, require more hours. The Building Official would also be available for limited hours under this method. The Budget and Finance Committee has met several times with Mr. Charles Abbott regardi.LLg outstanding billing, the proposed fee increases, and service adjustments for Building and Safety services. DISCUSSION Inasmuch as there has been a severe reduction in the amount of fees paid to support Building and Safety Services; the average monthly fees collected will not support the minimum program as defined in the contract with the service provider. Although there has been a reduction in personnel, the monthly billings continue to erode, and at times eliminate any carry over or "pool" from month to month. As of the end of December 1991 the carry over amount was $2,643.60 Although it is clear that some type of subsidy will be needed for the remainder of 1991 -92 and probably into 1992 -93, there is a need to keep this amount as low as possible. Also, the introduction of a General Fund subsidy will demand even stricter controls on manpower expenditure. JRF- 02- 12- 92(10:49am)A:\CC\I :FEB9Z PAUL W. LAWRASON JR. JOH4 E. WCDZNII-X ::OTT MONTGOMERY B==NARDO W =SREZ RC, _ TALLEY JR. Mayor Ma. :r Pre Tern Councilmember COUn61nW- r::Qr _ -• ,cdmember . The Honorable City Council February 14, 1992 Page 2 The service provider has identified that the minimum cost to support Building & Safety services at current levels is approximately $7,800 per month. This is at a level where no backlog of inspections will be created to either current or future projects. The current level of activity by Building & Safety consists of one active residential tract development (Urban West Communities, West Village tracts); the 27 unit condominium project at Charles Street and Spring Road; the Presbyterian Church; nine single family custom homes; tenant improvements within commercial and industrial buildings and about 200 miscellaneous permits for minor construction activities. All of the above are in various stages of inspection. Inasmuch as there was only $2,600 remaining in the carry over amount as of December 31, 1991 and the revenue is only $4319.20 for the month of January 1992, there are insufficient funds from which to pay Building & Safety services without a subsidy of some kind. The January 1992 invoice is $8510.75 where the revenue is only $4319.20 (carry over $2,643.60 + months revenue $4319.20 - January invoice of $8510.75 requires a $1,547.95 subsidy). When reviewing the average revenue for the past six months; it has been approximately $7,000. However, there have been several months where revenue has been in the $3,000 to $5,000 range. It is at these times that the City may need to provide a subsidy to pay the invoice for that month. In other words, where the combined amounts of both the carry over and a single months revenue are less than the costs to provide the service, a subsidy would be needed. Assuming that there is at least some revenue each month the amount of subsidy will vary from month to month. Over the past twelve months the lowest amount of revenue for one month was $1,987.41. To use that month as the extreme, a minimum of $5,000 ± would be needed to pay for Building and Safety services at .a future level of billing in the $7,000 amount. Staff is recommending that the subsidy be no more than $5,000 per month. This process will need to be monitored with the use of Weekly Status reports from the service provider to the Director of Community Development. The weekly report will assist the Director in monitoring time charged., and help contain the pace of billable hours. JRF- 02- 12- 92(10:19na)A: \CC \19FEB92 The Honorable City Council February 14, 1992 Page 3 STAFF RECOMMENDATION 4"" 1. Authorize $1,547.95 from the General PXali Reserve for January 1992 to supplement the January 1952 Building and Safety invoice. 2. That the City Council authorize an amount not to exceed $5,000 per month or a maximum of $25,000 for the five remaining months of the fiscal year to be available from the City's General Fund should the amount of Building and Safety permit and plan check revenue plus the carry over amount fall below the monthly invoice amount. 3. That the City Council direct staff to monitor the hours /costs expended by the office of Building and Safety on a weekly basis. 4. That the City Council direct staff to provide monthly status reports to the City Council regarding the amount of subsidy, and if needed place this matter back on the City Council's agenda for further consideration. JRF-02--2-92 (10:49am)A: \CC\19FEB92