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Home My WebLink AboutC34470A-C - Mid-yr Adjstmnt - Increase CITY OF PALM DESERT BUILDING AND SAFETY DEPARTMENT STAFF REPORT REQUEST: MID-YEAR BUDGET ADJUSTMENT TO INCREASE PLAN REVIEW / INSPECTION SERVICE CONTRACTS SUBMITTED BY: Russell A. Grance, Director of Building and Safety CONSULTANTS: Scott Fazekas & Associates Willdan Engineering CSG Consultants Inc. DATE: March 9, 2017 CONTENTS: 1. Memo to City Manager requesting Mid-Year increase 2. Staff Report dated December 8, 2016 Recommendation By Minute Motion, authorize an additional expenditure of $40,000 for professional service agreement (Contract No. C34470A) to Scott Fazekas & Associates, (Contract No.C34470B) to Willdan Engineering, and (Contract No. C34470C) to CSG Consultants Inc., for building Plan Review and Inspection services for the remaining fiscal year 2016/2017, which shall not exceed a new cumulative total of $170,000 with the approval of an additional appropriation of $40,000 per Council approval of mid-year budget adjustment at the City Council meeting of February 23, 2017. Funds are available in General Fund Account No. 1 1 04420-4301 000, as set forth in the 2016/2017 budget. Strategic Plan Objective Continues to build on Economic Development Priority 4: Expand and raise awareness of business-friendly services in order to retain and attract business. If this adjustment is not approved, there will be delays to plan checks and it will have a negative impact to the timeline of key projects. Staff Report- PLAN REVIEW/ INSPECTION SERVICE CONTRACTS Scott Fazekas & Associates Willdan Engineering CSG Consultants Inc. March 9, 2017 Page 2 of 2 Discussion The need to increase the Professional Architectural/Engineer account is due to shifting current workload of plan checking to our Consultants in order to free up staffs time to prepare and implement TRAKiT software system. The requested $40,000 is needed to cover contract plan check services for the balance of this fiscal year. Based on the budget report through the accounting period 2016-2017, the current YTD expenditures are $49,598.01 with $20,401.99 remaining for the balance of FY 2016-2017. The original $70,000 was allocated to plan check consultants in the following amounts: CSG Consultants (PC) $60,000 (PO #13347 Balance $19,547.35) Scott Fazekas & Associates (PC) $10,000 (PO #13344 Balance $854.64) The additional appropriation of $40,000 will be applied to the Professional Services Account No. Account 1104420-4301000. It should be noted that when contract services are utilized the cost is recoupable through plan check fees collected for that project. Fiscal Analysis The cost for Contract Services is recoupable through plan check, and permit fees collected for projects. This was included in the annual Building Departments budget for FY 2016-2017 (Acct. # 1 1 04420-4301 000, $70,000 (Original budget) + $60,000 (Inspection Services) + $40,000 (Mid-Year request) = $170,000). No other fiscal impact is anticipated to the City. Submitted By: - -,-L,L12-P PJL-6-4, Russell A. Grance, Director of Building and Safety Approved: 411r - L)-44-474 Jan re, Finance Director Lauri Aylaian, City Manager �rs CITY OF PALM DESERT r Jr�FI� Zt � 1 ery: BUILDING & SAFETY DEPARTMENT �=973N INTEROFFICE MEMORANDUM To: Lauri Aylaian, City Manager From: Russell A. Grance, Director of Building and Safety Date: January 20, 2017 Subject: Mid-Year Revenue update I have completed a recent review of the Department's Professional Architectural/Engineer budget account. Below, you will find my recommendation regarding the increase in the Professional Engineering services provided to our Department by our consultants. • Increase in Professional Engineering budget (account number 1104420- 4301000) by an additional $40,000. The need to increase the Professional Architectural/Engineer account is due shifting current workload of plan checking to our Consultants in order to free up staffs time to prepare and implement TRAKiT software system. The requested $40,000 is needed to cover contract plan check services for the balance of this fiscal year. Based on my budget report through the accounting period 2016-2017, the current YTD expenditures are $28,846.70. The original $70,000 was allocated to our plan check consultant in the following amount: CSG Consultants $60,000 (Purchase Order Balance $32,053.30) Scott Fazekas & Associates $10,000 (Purchase Order Balance $9,100) It is projected that an additional $40,000 will be necessary to carry this budget line item through the balance of this fiscal year. The department has performed 203 plan reviews FYTD and has only sent 23 to our consultant for plan check services. For FYTD 2016- 2017 construction valuation has seen an increase of 9% over the same reporting period in FY 2015-2016. For calendar year 2016 construction valuation has seen an increase of 68% than calendar year 2015. Fiscal YTD BUILDING CONSTRUCTION VALUATION Month 2015-2016 2016-2017 Difference July $17,157,811 $7,755,214 ' -55% August $13,967,646 $10,588,168 -24% September $9,360,940 $10,316,330 . 110% October $7,467,930 $27,636,686 370% November $9,596,766 $6,208,392 -35% December $6,878,404 $7,640,852 111% January $7,035,610 $0 February $7,375,968 $0 March ! $7,714,264 $0 April I $11,400,838 $0 May $13,147,180 $0 June $102,250,031 $0 Fiscal YTD Total $64,429,497 $70,145,642 9% Calendar YTD BUILDING CONSTRUCTION VALUATION Month 2015 2016 Difference Jan $6,930,348 $7,035,610I 102% February $14,881,877 $7,375,968 -50% March $17,187,119 $7,714,264 -55% j April $11,853,558 $11,400,838 -4% May $8,839,851 $13,147,180 149% June $6,188,385 $102,250,031 1652% i July $17,157,811 $7,755,214 -55% August $13,967,646 $10,588,168 -24% September $9,360,940 $10,316,330 110% October $7,467,930 $27,636,686 370% November $9,596,766 $6,208,392 -35% December $6,878,404 $7,640,852 111% Calendar YTD Total $130,310,635 S219,069,533 68% CITY OF PALM DESERT BUILDING & SAFETY DEPARTMENT STAFF REPORT REQUEST: BUDGET INCREASE TO PROFESSIONAL ARCHITECTURAL/ENGINEERING SERVICES LINE ITEM SUBMITTED BY: Russell A. Grance, Director of Building and Safety DATE: December 8, 2016 CONTENTS: N/A Recommendation: By Minute Motion, 1. Authorize an additional $60,000 to Account No. 1104420-4301000 related to Professional Architectural/Engineering to cover unanticipated contract inspection services. 2. Appropriate $60,000 from the unobligated general fund reserve to FY 16/17 Account 1104420-4301000. Strategic Plan Objective: Economic Development Priority 4: Expand and raise awareness of business- friendly services in order to retain and attract business. This action supports business friendly services by maintaining timely commercial development inspection schedules. If this action is not approved, there will be delays to commercial development building inspections and a negative impact to the timeline of key commercial projects. Background or Discussion: On November 10, 2016, the Department of Building and Safety learned that a staff member would require an extended period of time off for a family emergency, and that the time requested is covered by legally protected leave under the provisions of Family Medical Leave Act (FMLA). This will reduce the current number of field inspection staff from five (5) inspectors to four (4) field inspectors for a period of up to four months. The workload for the month of October with five (5) inspectors was an average of 19 inspections per day per inspector; that same workload applied to four (4) inspectors would be 24 inspections per day per inspector. That type of workload is not self sustainable for an extended period and could jeopardize public safety. The Insurance Services Offices (ISO) has established benchmarks to calculate staffing levels, including the average number of inspections that can be performed daily by an inspector, Staff Report INCREASE ARCHITECTURAL/ENGINEERING December 8, 2016 Page 2 ISO is an independent statistical, rating advisory organization that serves the property/casualty insurance industry. ISO collects information on a community's building code adoption and enforcement services, analyzes the data, and then assigns a Building Code Effectiveness Grading Schedule (BCEGSTM) from 1 to 10. Class 1 represents exemplary commitment to building-code enforcement. The benchmark established by ISO is ten (10) inspections per day per full time inspector. Currently the City of Palm Desert holds a BECGSTM rating of 3. The City Manager and executive staff have concluded that the City will be best served if the Building Department utilizes the services of a contract building inspector during this period. The contract inspector can be selected from one of the City's three current consultants, and will alleviate the strain of the current construction activity on inspection services. The addition of the contract inspector, at 40 hours per week, will result in a more manageable workload and will allow the department to provide next day inspections in most cases. The potential cost was determined by using an example of an inspector from Willdan at a rate of $95 per hour, 40 hours per week to maintain the current inspection load. The City would only utilize the contract inspector while the full time employee is out on FMLA, which could be up to ninety (90) days or more. At this rate the City would incur costs of approximately $60,000 for contract inspection services through February/March 2017. Fiscal Analysis The cost for Contract Services is normally recoupable through plan check fees collected for projects; however this was an unanticipated cost which will result in the need for an appropriation from unobligated general fund reserves. Submitted By: ..-.14144.322 CITY COUNCIL eI'ION Russell A. Grance, Director of Building & Sa EI VED �/ OVED. OTHER Ap royal: MEE G D TE 2 - AYE nil P y, NOES: et Moore, Director of Finance ABSENT:We- ABSTAIN: VERIFIED BY: n�1� c Original on File with City C r 's Office Lauri Aylaian, City Manager