HomeMy WebLinkAbout16 - Building Department Budget Amendment9
CITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 16
February 24, 2004
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Building Department
Jay Elbettar, Building Director, 949 - 644 -3282
jelbettar @city.newport- beach.ca.us
SUBJECT: Request for Budget Amendment to Cover Expenses Associated
with High Work Demand in the Building Department
RECOMMENDATION
Approve a budget amendment to appropriate $193,000 from unanticipated General Fund
revenue to the Building Department's Professional and Technical expenditure account
#2930 -8080.
ISSUE
The request presented by this report is the need to provide additional funds to pay for
outside plan check services required due to a sustained high work load. Additional plan
check revenues received (and projected) for this year have resulted from the higher
workload and will totally offset the additional required expenditures for outside plan check
services.
DISCUSSION
Construction Activity
The Building Department uses outside plan check consultants in addition to permanent
departmental staff plan check engineers to keep up with the increased workload resulting
from the construction boom. Construction activity continues at a record high level
sustained by record low interest rates. Construction valuation for the first half of this fiscal
year was $99,741,000, which is consistent with last year's construction valuation for the
same period of $99,022,000. (See attached Construction Activity Report — Exhibit 1)
Request for Budget Amendment
February 24, 2004
Page 2
In March 2003, the City Council approved a budget amendment for $175,000 to pay for
additional cost of plan check consultants' services during fiscal year 2002 -2003. Because
of this sustained high construction activity, the expenditure budget for outside plan check
services is proving to be insufficient. The $203,895 budgeted in the Building Department's
Professional and Technical expenditure account for outside plan check services for the
current fiscal year was fully encumbered by December 31, 2003. It is estimated that an
additional $193,000 will be required for outside plan checking services for the second half
of this fiscal year. Due to anticipated continued high plan check workload, the Building
Department submitted a separate request to City Council to authorize adding two staff plan
check engineers and one half a permit technician position. If those positions were
approved and filled before July 1, 2004, then funds will be transferred from this account to
cover the cost of those positions.
Funding Availability
As of December 30, 2003, revenue from the plan check activity was $716,117, which is
68% of the total anticipated revenue of $1,051,240 for the entire fiscal year. Total revenue
from plan check for the current year is now projected to be $1,400,000. Based on the
current and projected revenue status, these additional expenses will be fully recovered by
the additional plan check revenues anticipated for the current fiscal year. (See Exhibit II)
Prepared by: Submitted by:
Faisal Jurdi, eputy uilding Official Jai EI ar, Building Director
FJ /dsmg
Attachments: Exhibit I - Construction Activity Report for Month of December 2003
Exhibit II — Building Department Revenue vs. Budget
Counci[S1uf eQBudget mend Feb 2W4
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Request for Budget Amendment
February 24, 2004
Page 3
EXHIBIT I
PO m CITY OF NEWPORT BEACH
i_ BUILDING DEPARTMENT
aK
= 3300 NEWPORT BLVD.
P.O.BOX 1768, NEWPORT BEACH, CA 92658 -8915
(949) 644 -3275
CONSTRUCTION ACTMTY REPORT FOR MONTH OF DECEMBER 2003
BUILDING PERMITS ISSUED
Current
Month
Previous
Month
Fiscal Year
To Date
Previous
Fiscal Year
Total Valuation:
$9,992,629
$12,065,267
$99,740,996
$99,021,933
Buildinq Permits:
277
277
2,021
1,759
Total Permits:
784
683
5,207
4,490
Plan Submittals:
256
204
1,580
1,286
BUILDING PERMITS ISSUED
Processing Permits/Change of Contractor /Fire Damage Repair/Dry-Rot Deck Repair
,,*'EMttar, Director .
Dwelling
Number
Valuation
Units
Single Family Dwelling
7
$3,021,018
7
Duplex
4
$1,590,000
6
Patios /Decks/Trellis
7
$101,500
Pools/Spas
7
$150,800
Residential Additions /Alterations
82
$1,800,539
Commercial Additions /Alterations
28
$2,128,478
Fire S rinkler /Alarms /Misc
44
$333,637
Demolitions:
One- family
4
$41,000
(4)
Multi- family
7
$32,500
(10)
Other than dwelling
1
$10,000
Miscellaneous
Re -roofs (74)
Fences /Retaining Walls (32)
136
$783,157
Signs/Banners (15)
`Misc. 15
TOTALS:
327
$9,992,629
(1)
Processing Permits/Change of Contractor /Fire Damage Repair/Dry-Rot Deck Repair
,,*'EMttar, Director .
$4,
$4,
$3,
$3,
$2,
$2,
$1,
Request for Budget Amendment
February 24, 2004
Page 4
Exhibit 11
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
•
u
•
WFECT ON
N
SOURCE:
N
City of Newport Beach NO. BA- 034
BUDGET AMENDMENT
2003 -04 AMOUNT: $193,000.00
BUDGETARY FUND BALANCE:
Increase Revenue Estimates X Increase in Budgetary Fund Balance
Increase Expenditure Appropriations AND Decrease in Budgetary Fund Balance
Transfer Budget Appropriations No effect on Budgetary Fund Balance
from existing budget appropriations
from additional estimated revenues
from unappropriated fund balance
EXPLANATION:
This budget amendment is requested to provide for the following:
To increase revenue estimates by $348,760 and expenditure appropriations by $193,000 related to the plan check
fees.
ACCOUNTING ENTRY:
BUDGETARY FUND BALANCE
Number
Fund Account
Description
010 3605
General Fund Fund Balance
OVENUE ESTIMATES (3601)
Number
Fund /Division Account
Description
2900 5002
Building - Plan Check Fees
EXPENDITURE APPROPRIATIONS (3603)
Description
Division Number 2930
Building - Plan Check
Account Number 8080
Services - Professional & Technical
Division Number
Account Number
Division
Number
Account
Number
Division
Number
Account
Number
Signed:
Administrative Services Director
0 ned: > >! t .4. /--*' 4"4++i
Administrative App val: City Manager
Amount
Debit Credit
$155,760.00
$348,760.00
Automatic
$193,000.00
DateA !�
ate
Signed:
City Council Approval: City Clerk Date
City of Newport Beach 6 NO. BA- 034
BUDGET AMENDMENT
2003 -04 AMOUNT: $�s3,000.00
EFFECT ON BUDGETARY FUND BALANCE:
Increase Revenue Estimates n ncrease in Budgetary Fund Balance
X Increase Expenditure Appropriations AND Decrease in Budgetary Fund Balance
Transfer Budget Appropriations No effect on Budgetary Fund Balance
SOURCE:
from existing budget appropriations
X from additional estimated revenues
from unappropriated fund balance
EXPLANATION:
This budget amendment is requested to provide for the following:
To increase revenue estimates by $348,760 and expenditure appropriations by $193,000 related to the plan check
fees.
AGGOUNTING ENTRY:
BUDGETARY FUND BALANCE
Fund Account Description
010 3605 General Fund Fund Balance
REVENUE ESTIMATES (360 1)
Fund /Division Account Description
2900 5002 Building - Plan Check Fees
EXPENDITURE APPROPRIATIONS (3603)
Signed
Signed:
I: Administrative Services Director
City
Signed: (u4uu7&/" %/V
City Council Approval: City Clerk
Amount
Debit Credit
$155,760.00
$348,760.00
$193,000.00
Date
Da
e
to
Go
Date
Description
Division
Number
2930 Building - Plan Check
Account
Number
8080 Services - Professional & Technical
Division
Number
Account
Number
Division
Number
Account
Number
Division
Number
Account
Number
Signed
Signed:
I: Administrative Services Director
City
Signed: (u4uu7&/" %/V
City Council Approval: City Clerk
Amount
Debit Credit
$155,760.00
$348,760.00
$193,000.00
Date
Da
e
to
Go
Date