HomeMy WebLinkAboutAGENDA REPORT 1992 0219 CC REG ITEM 11AITEM
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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.
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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.
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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.
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