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Home My WebLink AboutC32950A - C33150 Pln Rvw - Inspection Svcs Contracts Contract No. C32950A Contract No. C33150 CITY OF PALM DESERT BUILDING & SAFETY DEPARTMENT STAFF REPORT REQUEST: INCREASE TO PLAN REVIEW/ INSPECTION SERVICE CONTRACTS SUBMITTED BY: Russell A. Grance, Director of Building and Safety DATE: March 13, 2014 CONTENTS: 1. Staff Report dated November 14, 2013 2. Memo dated December 3, 2013 from Lori Carney, Human Resources Manager 3. Memo dated December 3, 2013 from Russell A. Grance, Director of Building and Safety Recommendation: By Minute Motion, 1. Authorize an additional $20,000 to Account No. 110-4420-422-3010 related to Professional Architectural/Engineering (SFA - Plan Review). This action would amend the prior authorized amount of not to exceed $40,000 to not to exceed $80,000 for Plan Review services for the remainder of fiscal year 2013-2014. 2. Authorize an additional $41,000 to Account No. 110-4420-422-3010 related to Professional Architectural/Engineering (Willdan — Hourly contract Inspection Services). 3. Appropriate $61,000 from the unobligated general fund reserve to FY 13/14 Account 110-4420-422.30-10. The cost for Contract Services is recoupable through plan check and building permit fees collected for projects. Backqround or Discussion: On November 14, 2013, the City Council authorized the City Manager to use a contract Building Inspector (Willdan) to alleviate the strain of increased construction activity on inspection services. At the time building inspections were being delayed for up to 7 days, far outside the City's normal 24 hour turnaround. The addition of the contract inspector, at 40 hours per week, has resulted in a more manageable workload and allowed the department to again provide next day inspections in most cases. The contract inspector from Willdan has a $95 per hour bill rate, and we are currently using him 40 hours per week to maintain the inspection load. At this rate the City has spent $40,945.00 for contract inspection through January 2014. Contract N0. C32950A Contract No. C33150 Staff Report INCREASE TO PLAN REVIEW/ INSPECTION SERVICE CONTRACTS March 13, 2014 Page 2 The initial plan was to use a contract building inspector and hire a full time building inspector during the mid-year budget cycle. This plan has since changed and we will seek to hire a new full time building inspector during the 2014-2015 budget cycle. The recent mid-year budget adjustment approved by Council for the Department of Building and Safety included an additional $70,000 to originally be used as follows: • $40,000 to hire a contract inspector from Willdan until March 2014 • $30,000 to cover contract plan check services for the balance of this fiscal year. With the change in direction we will be using a Willdan inspector for the remainder of the 2013-2014 FY. The recent $70,000 approval will be allocated to cover the hourly contract building inspector. Willdan's billings for the months of Nov 2013 through January 2014 total $40,945.00. The remaining potential billable hours through June 30, 2014 will be 105 hours. The billable hourly rate is $95.00 which comes to approximately $79,800.00. $70.000.00 (Mid Year allocation) $40,945.00 (Current bills Nov-Dec paid) $29,055.00 (Balance) $79,800.00 (Needed for billable hours Feb thru June) $29,055.00 (Balance) $50,745.00 (Approximate additional funds needed) Fiscal Analvsis The cost for Contract Services is recoupable through plan check fees collected for projects, and has been included in the annual Building Departments budget for FY 2013-2014 (Acct. # 110-4420-422.30-10, $20,000 + $41,000 = $61,000). No other fiscal impact is anticipated to the City. Submi d y: �� ss A. Gr n , Director of Building & Safety Approval: �� Pa S i son, irector of Finance J n M. Wohlmuth, City Manager Y � Contract No. C33150 CITY OF PALM DESERT BUILDING & SAFETY DEPARTMENT STAFF REPORT REQUEST: Authorize the City Manager to engage contract building inspection services in an amount not to exceed $40,000; and authorize the City Manager to execute a contract with a temporary staffing services agency to provide these services. SUBMITTED BY: Russell A. Grance, Director of Building and Safety DATE: November 14, 2013 Recommendation: • By Minute Motion, 1) authorize the City Manager to engage building inspection services in an amount not to exceed $40,000; 2) authorize the City Manager to execute a contract with a temporary staffing senrice agency to provide these services. Executive Summarv: There has been an unanticipated increase in the level of construction activity throughout the City. Current economic forecasts indicate that building activity wi11 continue to increase during the next two years. Staff regularly evaluates the level of building/construction activity in relation to City services such as plan review a�d inspection with the goal of maintaining a business friendly and efficient process. In order to maintain our historically high levels of customer service and inspection scheduling it is necessary to augment current inspection staffing levels. The most expeditious sofution to the City's short term inspection needs is the use of a contract inspector. The City's current contract with Willdan may serve these needs in the short run but the City would benefit from the City Manager's authorization tv execute a contract with another temporary services agency if the need arises. Although Willdan is available in the short term, staff believes there may be a more cost effective approach available. If the need continues the City may consider hiring additional full-time bui(ding inspection staff. Backaround or Discussion: The continued unanticipated level of construction throughout the City is driving the need for expanded contract professional engineering services as it relates to Inspection Services. The , inspection staff has been averaging the following inspections per day in the last few months: • July 22 (4 inspectors) • August 25 (4 inspectors) • September 23 (4 inspectors) Contract No. C33150 Staff Report INCREASE TO PLAN REVIEW/ INSPECTION SERVICE CONTRACTS November 14, 2013 Page 2 The national benchmark as established by insurance Service Office, Inc (ISO) for the number of inspections per day per full time inspector is ten (10). This benchmark has been proved to be realistic over the course of surveying 14,000 building departments. The number of inspections takes into account current workload (type of inspection activity) and travel time. This ensures that the inspector is provided sufficient time in order to conduct safe and thorough inspections. In order to maintain our historic level of response time (between 24 and 48 hours of request) and avoid the excessive deferral of inspection appointments (currently as high as 7 days) staff recommends the following solutions: 1. Hire a contract inspector using one of our current consultants at a cost of $95.00 per hour ($3,800.00 per 40 hour week). (Wildan) 2. Authorize the City Manager to execute a contract with a temporary staffing services agency, such as MuniTemps, to provide contract staff as needed at a competitive price. It should be noted that utilizing a contra�t inspector may be sufficient to cover short term staffing needs, but that they come with challenges such as training on our process and computer systems, learning our city geography and embracing our high level of customer service expectations. This inspector will only be used on an as needed basis, duration and number of days per week will dependant on the inspection demand. Fiscal Analvsis Approval will result in increased contract services (Acct. # 110-4420-422-3010), however the cost for these services is recoupable through plan check and permit fees collected for projects. Submitted By: CITYCOUNCII.A�'1�ION , � APPROVED DF.NiED �.C� RECEIVED OTHER Russell A. Grance, Director of Building & Safety _ _ MEE G AYESs � Approval: NOES: G��'�l ABSENTt ABSTAINt � Paul S. Gibson, Director of Finance �RIFIED BY: � Original on Filo wit�C1 erk�Offce � John Wohlmuth, City Manager �1 ��.,,� CITY OF PALM DESERT � � HUMAN RESOURCES DEPARTMENT INTEROFFICE MEMORANDUM TO: John Wohlmuth, City Manager FROM: Lori Carney, Human Resources Manager DATE: December 3, 2013 SUBJECT: Addition of a Building Inspector I at Mid-Year On November 14, 2013, the City Council authorized the use of a contract Building Inspector to alleviate the strain of increased construction activity on inspection services. At the time building inspections were being delayed for up to 7 days, far outside the City's normal 24 hour turnaround. The addition of the contract inspector, at 40 hours per week, has resulted in a more manageable workload and allowed the department to again provide next day inspections in most cases. Financial Impacts: The contract inspector from Willdan has a $95 per hour bill rate, and we are currently using him 40 hours per week to maintain the inspection load. At this rate the City will spend $65,740 for contract inspection through February 2014 and $131,480 if contract services are continued through June 30, 2014. If approved, a new Building Inspector could be hired in �March 2014 at a cost of approximately $7,767 per month (including benefits), or $31,067 for March — June 2014; resulting in a substantial savings this fiscal year. Contract vs. Emplovee The question now becomes whether to continue with contract services as needed or to hire an additional full-time employee. Because current economic forecasts indicate continued strong activity in building, (including new residential, remodels, commercial development and tenant improvements), it is likely that the need for inspections services will continue at the current pace. However, building activity is cyclical and tends to slow down in the summer, during such times fewer building inspectors would be necessary. 3 Memo to: John Wohimuth, City Manager Date: December 3, 2013 Subject: Building Inspector—Mid year adjustment The following is a summary of the pros and cons of each approach. Direct Hire— Buildin Ins ector I Pros: Cons: • Control over staff select - provides • Less flexible during economic highest quality staff downturns • Increases in productivity with • Potential for future layoff training • Long term costs (i.e., retirement, • Familiarity with City geography and health care, vacation, training, etc.) policies • Salary increases over time (future • Succession planning COLA's, step increases) • Improved customer service with regular staff • More flexibility in assignments, may be assigned other duties, may free up other staff to do plan check Contract Ins ector Pros: Cons • Flexibility in scheduling, can • Potentially high turnover, no control discontinue when not needed over who is assigned to the City. • Benefit and ancillary costs the • "Learning curve" with each new burden of the contractor contract inspector— learning City policy, geography, computer systems • Potential liability as a "de facto" employer • Much higher hourly rate After careful consideration I recommend the addition of a Building Inspector position during the mid-year process. However, building activity should continue to be carefully monitored to determine if current trends are continuing, prior to filling the position. LORI CARNEY, HUMAN RESOURCES MANAGER Page 2 of 2 � �� CITY OF PALM DESERT � � BUILDING & SAFETY DEPARTMENT INTEROFFICE MEMORANDUM To: John M. Wohlmuth, City Manager CC: Paul S. Gibson, Finance Director From: Russell A. Grance, Director of Building and Safety Date: December 3, 2013 Subject: Mid-Year Budget Adjustment to Accounts 110-4420-422.30-10 "Prof-Architectural/Eng", and 110-4420-422.36-10 "Printing and Duplicating" I have completed a recent review of the Department's "Prof-Architectural/Eng", "Printing and Duplicating", and "Small Tools & Equipment" budget accounts. Below, you will find my recommendation regarding the increase to these accounts. • Increase in "Small Tools & Equipment" budget (account number 110-4420- 422.21-80) by an additional 500. • Increase in "Professional Engineering" budget (account number 110-4420- 422.30-10) by an additional 70 000. • Increase "Printing and Duplicating" budget (account number 110-4420- 422.36-10) by an additional 10 000. The need to increase the "Small Tools & Equipment" is for the purchase of a new radio for the inspection staff. Currently we have five (5) radios, one each for the four inspectors and one acting as the base station in the office. We would need one additional radio for the field inspection staff. The cost of the radios was approximately $418 plus taxes each when the City recently purchased them to replace the Nextels. The need to increase the "Prof-Architectural/Eng is due to the unanticipated increase in the level of construction activity throughout the City. Current economic forecasts indicate that building activity will continue to increase during the next two years. The requested $70,000 is needed to cover the recent approval of $40,000 by City Council to hire a contract inspector from Willdan and an additional $30,000 to cover contract plan check services for the balance of this fiscal year. The need to increase "Printing and Duplicating" by an additional $10,000 is caused by the unanticipated delays in the implementation of One-Solution (11/12, 1/13, 4/13, 6/13, 9/13, with no new go-live date) which has created a shortage in funds to cover the cost of printing "Job Cards and Building Permits". If One-Solution was implemented on schedule we would have realized a savings in this line item since One-Solution utilizes standard 8'hx11 copier paper instead of printed forms. We have been ordering smaller quantities for Job Cards and Building Permits to get us by with an increase in cost in hoping that we would have been live already with the new permitting software. This delay has cost the City more to purchase smaller quantities of printed forms. In addition this line item is also used for archiving documents, and with the higher than anticipated construction activity this has generated more plans that need to be sent out for archiving. I have evaluated the pros and cons of filling the long term needs in inspection staffing levels with a regular full time employee versus contracting for "as needed" inspection services. My analysis indicates that the pros of a fully trained, full time building inspector outweigh the risk of another downturn in the economy necessitating a potential layoff. A regular employee will become more productive over time as he/she becomes more familiar with the community, the projects and City procedures. Contract employees are transitory and may not be fully engaged in our organization, are often unfamiliar with the community and we have no guarantee of getting the same inspector each day. Training a "revolving" contract employee would require additional staff time and they would work slower because they would be unfamiliar with routes and projects. The Department anticipates the current volume of building construction activity will continue for the foreseeable future and anticipates the retirement of at least one inspector within the next few years. Currently the City's short term inspection needs are being met with the use of a contract inspector. Below represents the costs for both options: • Contract Willdan inspector at a cost of $95.00 per hour ($3,800.00 per week, $15,200 per month, annual $197,600). • City full-time building inspector at a cost: Building Inspector I Benefits C«3 Hourl Annual 50% Annual Cost Step $ $ $ 1 29.93 62,254.40 31,127.20 $ 93,381.60 Step $ $ $ 2 31.42 65,353.60 32,676.80 $ 98,030.40 Step $ $ $ 3 33.00 68,640.00 34,320.00 $ 102,960.00 Step $ $ $ 4 34.64 72,051.20 36,025.60 $ 108,076.80