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HomeMy WebLinkAboutSS3 - Building Department Staffing Levels• CITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Study Session Agenda Item No. 3 January 27, 2004 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Building Department Jay Elbettar, Building Director, (949) 644 -3282 jel betta r@ city. newport- beach. ca. us. SUBJECT: Building Department Staffing Levels — Contract Plan Checkers Versus Staff Plan Checkers ISSUE: • Should the City Council authorize one additional plan check engineer position and half a permit technician position to reduce the volume of plan checks done by outside consultants and to improve customer service? DISCUSSION: Background: In 1991, the historic normal construction activity decreased due to the declining economy and continued its decline until 1995. Since 1995, the construction activity has steadily increased and leveled off in 2003, to 2.6 times the 1993 volume (Exhibit 1). In 1994, the City cut back staff in all departments due to the slowing economy and the loss of property tax revenue to the State. At the same time, in July 1994, the Building Department assumed the fire alarm and fire sprinkler plan check function from the Fire Department in lieu of laying off one of the plan check engineers. This change also streamlined the plan check process. In June 1995, the grading engineer was laid off due to staff cutbacks and the plan check staff was reduced from four engineers to three. Following the layoff, construction valuation almost doubled in fiscal year 1995/1996 and continued to climb from $79,692,000 in 1995 to $220,623,000 in 2000 and back down to $187,489,000 in 2003. Construction valuation is projected to be $215,000,000 for the • current fiscal year based on valuation ending November 2003 (Exhibit 1). Building Department Staffing Levels January 27, 2004 Page 2 • Current Work Load: Currently and for the last four years, the plan check and permit processing work load has been at an all time high (Exhibits I, II, III). Plan check engineers and permit technicians have to cope with higher customer service demands at the permit counter. Approximately one third of walk -in customers come in to see an engineer for technical information or to ask clarification questions on a plan check done either by staff plan check engineers, or by plan check consultants. Providing this service requires a full time plan check engineer position (see Exhibit III) at the counter. In July 2000, the Building Department assumed the responsibility of plan check, permit processing and record keeping for construction within the Harbor, which was previously done by Public Works and the Marine Division of the Fire Department.. This was done in conjunction with the reorganization of the Marine Division under the Harbor Resources Division. In June 2002, the Building Department assumed the responsibility for enforcement of council policy L -18 and L -22 dealing with design and construction water quality requirements. In July 2003, this responsibility expanded to also include the State Water Quality Management plan requirement for construction projects. In July 2002, we streamlined the plan check process so that 90% of plan checks will be • done in less than four weeks. This increased the demand on the plan check engineers and a higher demand for outside consultant plan check service. The annexation of Newport Coast and Bay Knolls in July 2002, and Santa Ana Heights in July 2003 increased the building stock by 15 %. Santa Ana Heights has been going through a redevelopment boom, which includes the construction of several office buildings. Four of them are currently in plan check. More office buildings are still in the design phase and others have been completed and are submitting tenant improvement projects into plan check. Measures Taken: To keep up with the increased workload, we have taken the following measures: a) Plan Check Consultants The Building Department signed agreements with four plan check consultants and have been sending overflow plan checks out to them (Exhibit IV shows that by valuation about 61% of plan checks are done by consultants). While plan check consultants are a common relief used by cities to address fluctuations of plan check workload, it is usually to satisfy a temporary need and has many shortfalls. Plan check consultants provide services for many jurisdictions and • have to be trained and informed of local requirements. Consultants tend to run a mass production operation, which does not render the same quality plan check Building Department Staffing Levels January 27, 2004 Page 3 • and customer service that staff delivers. Also, some of our plan check staff time is used monitoring the quality of consultant plan checks and reviewing and approving revisions to the approved drawings. In general, our customers prefer that their drawings be plan checked in -house and prefer dealing with familiar and readily accessible city staff. While we closely manage and coordinate projects checked by consultants, we constantly receive requests from customers to have their projects checked "in- house ". We also receive complaints regarding consultants lacking customer service. Outside plan checks constitute a major portion of our customer complaints. b) Expedite Plan Review In addition to using consultants for overflow plan check, we also use the expedited plan check service to check small projects (additions and alterations) on a fast track. Permit applicants for small projects can request an expedited plan check and pay the applicable fee. Permit technicians and plan check engineers spend additional time to process these special service requests. c) . Tenant Improvement Fast Track Submittals for tenant improvement projects have been separated from the rest of • submittals and fast tracked to allow tenants to move in quickly into tenant space since the plan check associated with this type of project does not include reviewing structural design. While this process accelerates review and approval of tenant improvement projects, it impacts the plan check turnaround time for other projects. d) Restoring Cancelled Position Because of the sustained high construction activity over the past ten years and the discontent of our customers with plan check consultants, we proposed during fiscal 2000/2001 budget process and the City Council approved that we substitute and fill the previously authorized vacant grading engineer position with a plan check engineer position. In October 2000, we hired a plan check engineer in place of the grading engineer. Higher Service Standard The Building Department increased its service level over the last seven years to provide a higher degree of accuracy and care in plan check and to provide better customer service. This increased the time necessary to provide plan check and permit processing service. • Building Department Staffing Levels January 27, 2004 Page 4 Consultant versus In -house Plan Check • Notes: 1. City pays an average 70% of the plan check fee collected for jobs sent to consultants. 30% of the plan check fee is kept by the department for processing, coordinating and checking the quality of plan check. 2. The City currently employs four plan check engineers. Each engineer checks an average of $20 Million worth of construction valuation per year. We estimate it would require hiring four additional engineers to do all the plan check by department staff at the current construction activity level. 3. Construction activity has been very high during the last four years and the Building Department relied on outside consultants for overflow plan check since 1997. We expect the construction activity may drop to an average valuation of $150 Million per year when the economy improves and interest rates increase. At that level, six plan check engineers could plan check approximately $120 • Million worth of construction and $30 Million worth would be checked by outside consultants. Staff Plan Check Engineers Consultants Types of Projects checked • Single - family dwellings (tracts and • New single - family dwellings complex custom homes) • Major residential additions • New non - residential structures (office and alterations buildings, churches, mixed -use buildings, etc.) • Residential additions and alterations • Additions to commercial buildings • Tenant improvements • Harbor structures (docks, piers, seawalls, etc.) • Fire alarm, fire sprinkler • Miscellaneous permits over the counter (Minor residential additions and alterations, re -roof, fences, retaining walls, patio covers, etc.) • Revisions to drawings for projects under construction including those originally checked by consultants • Coordinate projects checked by consultants and review the quality of work Number of Projects 883 + 1478 misc. projects checked over the 486 checked in counter 12002-2003 Construction valuation $73,468,925 $115,357,000 Notes: 1. City pays an average 70% of the plan check fee collected for jobs sent to consultants. 30% of the plan check fee is kept by the department for processing, coordinating and checking the quality of plan check. 2. The City currently employs four plan check engineers. Each engineer checks an average of $20 Million worth of construction valuation per year. We estimate it would require hiring four additional engineers to do all the plan check by department staff at the current construction activity level. 3. Construction activity has been very high during the last four years and the Building Department relied on outside consultants for overflow plan check since 1997. We expect the construction activity may drop to an average valuation of $150 Million per year when the economy improves and interest rates increase. At that level, six plan check engineers could plan check approximately $120 • Million worth of construction and $30 Million worth would be checked by outside consultants. C • Building Department Staffing Levels January 27, 2004 Page 5 SUMMARY The plan check group has elevated its quality standard and decreased its plan check turn - around time. The plan check process has been streamlined by coordinating the plan check with other departments which participate in the process. It acquired the plan check of fire sprinkler and fire alarm plan check duties from the fire department and plan check of Harbor structures from Public Works. Plan check staff also checks compliance with recently adopted council policy on water quality and mandated Federal Clean Water Act construction requirements. The group's scope of work has increased by approximately 15% due to annexations and struggles to keep up with the increased construction activity from a construction driven economy. The need for additional staff is permanent and we feel should not be permanently solved by hiring outside consultants. Current plan check staffing is at the same level it was in the 80's when construction valuation averaged less than half the current level. Fundinq Availability: The additional staff cost would be completely offset by the reduction in consultant fees. The following table represents the construction valuation, plan check revenue and expenditures and consultant fees since the department began utilizing them for overflow plan check services. Fiscal Year Construction Valuation Total Plan Check Revenue Plan Check and Permits Division Expenditures Consultant Fees (Included in Division Expenditures) 1996/1997 $204,000,000 $774,756 $187,555 1997/1998 $225,000,000 $960,870 $188,534 1998/1999 $303,000,000 $1,111,144 $239,900 1999/2000 $221,000,000 $1,161,599 $292,322 2000/2001 $227,000,000 $1,293,712 $1,091,300 $280,947 2001/2002 $145,000,000 $1,124,955 $1,143,688 $274,540 2002/2003 $187,000,000 $1,366,915 $1,299,669 $438,691 *Expenditure figures are not available for these years when the Plan Check and Permits Division budget was not reported separately within the Building Department budget. • Total cost of one proposed engineer position (Step 4): $88,903 • Total cost of one proposed half technician position (Step 4): $30,028 • • Total cost of two engineers and half a permit technician position: $207,834 Building Department Staffing Levels January 27, 2004 Page 6 The Building Department charges fees for plan check and inspection services. We • expect that revenue from plan check based on an average $150 Million annual construction valuation will cover the division's proposed staff costs and remaining consultant costs. Prepared by: Submitted by: Faisal Jur u Building Official , ay E ettar, Building Director FJ /mg Attachments: Exhibits I through V COWCO SUMICOMCO rep 1-27.04 • • U U F 3 N C O $: C C $ O N 7 $ N Building Department Staffing Levels January 27, 2004 Page 7 Exhibit i Construction Valuation 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004' Years Exhibit ii Number of Plan Checks per Calendar Year 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004" Years Projected Cl V) 2000 of w i O 1500 H t000 UL O • Building Department Staffing Levels January 27, 2004 Page 8 Exhibit fit Customer Log 2002 — 2003 00-02 Nov -02 bu -02 Jan -03 Feb -03 Mar -03 Apr -03 May -03 Jun -03 Jul -03 Aug -03 Sep -03 00-03 $450, $400, G1 V w $300,000 $250,000 CL LJ $200,000 Eno $150,000 $100,000 $50,000 0 $0 # OF CUSTOMERS ASSISTED ■ # OF CUSTOMERS ASSISTED BY AN ENGINEER ❑ # OF CUSTOMERS THAT WAITED MORE THAN 30 MINS Exhibit IV Professional Technical Services Expenditures $436 691 $397,000 $292,322 $280,947 $274,540 $239,900 $tB7,555 $188,534 $1•'10,807 $ 78,835 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004* Years II, Building Department Staffing Levels 1 January 27, N134 1111 Page 9 Exhibit V Building Department Revenue vs. Budget 95 -96 96 -97 97 -98 98 -99 99 -2000 2000- 2001- 2002- 2003- 2001 2002 2003 2004` Fiscal Year 'Projected Revenue ❑ Total $ Budget ® Total $ Revenue zl< —� 00 Q. 0 CD 70 v 3 CD cn v c� r CD CD J \: j W- C O � Z CD CD �o O 3 CD CD M o J \: j 11 A ! 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