HomeMy WebLinkAbout13 - BA-053 Building Department Work DemandCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 13
March 11, 2003
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Building Department
Jay Elbettar, Building Official, 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
ISSUE:
The issue presented by this report is the need to provide additional funds to pay for outside
plan check services required by a much higher than anticipated work load when the
current fiscal year budget was developed. 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.
RECOMMENDATION:
Approve a budget amendment to appropriate $175,000 from unanticipated General Fund
revenue to the Building Department's Professional and Technical expenditure account
#2930 -8080.
DISCUSSION:
Construction Activity
The Building Department uses outside plan check consultants in addition to permanent
departmental staff to keep up with the increased workload resulting from the construction
boom. Last fiscal year (when the current year budget was being developed), staff projected
a reduction in construction activity due to the slowing economy. While the economy
slowed, construction activity continued to grow, primarily due to low interest rates.
Construction valuation for the first half of this fiscal year was $99,021,933, which exceeded
last year's construction valuation for the same period ($67,218,778) by 47% (see attached
Construction Activity Report).
Request for Budget Amendment
March 11, 2003
Page 2
Plan Check Streamlining
In 2002, the Building Department restructured the plan check and permit processing
procedures to ensure that projects are reviewed by all departments simultaneously. This
change in procedure requires processing additional sets of drawings and incorporating an
automated plan check tracking procedure to verify that all involved departments complete
the review in less than four weeks. This process increased the demand for plan check
consultant services to make sure that the plan check turn - around goal is achieved.
Funding Availability
As of February 28, 2003, revenue from the plan check activity was $673,837, which is over
90.5 percent% of the total anticipated revenue of $744,000 for the entire fiscal year. Based
on the status at this same point last year, total revenue from this category of plan checks
for the current year is now projected to be between $1,010,000 and $1,056,000. Revenues
from similar or related categories are also projected to significantly exceed the originally
budgeted amounts
Because of this activity, the expenditure budget for outside plan check services is proving
to be inadequate. The $198,000 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, 2002. It is estimated that an additional $175,000
will be required for outside plan checking services for the second half of this fiscal year.
However, based on the current and projected revenue status specified above, these
additional expenses will be fully recovered by the additional plan check revenues
anticipated for the current fiscal year.
Prepared by:
Submitted by:
i, Deputy Building Official / JWtUttA`r,-8uilding Director
Attachments: Construction Activity Report for Month of December 2002
CownI5tW6ReQBuageWme d_Feb 2003
CITY OF NEWPORT BEACH
BUILDING DEPARTMENT
3300 NEWPORT BLVD.
P.O.BOX 1768, NEWPORT BEACH, CA 92658 -8915
(949) 644 -3275
CONSTRUCTION ACTMTY REPORT FOR MONTH OF DECEMBER 2002
BUILDING PERMITS ISSUED
Current
Month
Previous
Month
Fiscal Year
To Date
Previous
Fiscal Year
Total Valuation:
$15,384,181
$15,154,876
$99,021,933
$67,218,778
Building Permits:
211
325
1,759
1,765
Total Permits:
620
734
4,490
4,662
Plan Submittals:
206
2101
1,286
1,149
BUILDING PERMITS ISSUED
Processing Permits /Change of Contractor /Fire Damage Repair /Dry-Rot Deck Repair
jy jeitar, Director
e- mail: enb _blg�,;tity.newport- beath.ca.us * W ebpage: www, city .newport- beath.ta.us/building
Number
Valuation
Dwelling
Units
Single Family Dwelling
11
$4,053,808
11
Duplex
4
$1,538,479
8
Patios /Decks/Trellis
6
$452,432
Pools/Spas
12
$254,500
Commercial Building
1
$540,000
Parking Structure
1
$2,103,493
Garage
2
$261,850
Residential Additions /Alterations
74
$2,959,885
Commercial Additions /Alterations
21
$2,198,000
Fire S rinkler /Alarms /Misc
47
$386,937
Demolitions:
One - family
Two - family dwelling
Other than dwelling
7
0
3
$46,500
$0
$19,200
(7)
0
Miscellaneous
Re -roofs (33)
Fences /Retaining Walls (16)
Signs /Banners (17)
'Misc. (15)
81
$569,097
TOTALS: 1
270
$15,384,181
12
Processing Permits /Change of Contractor /Fire Damage Repair /Dry-Rot Deck Repair
jy jeitar, Director
e- mail: enb _blg�,;tity.newport- beath.ca.us * W ebpage: www, city .newport- beath.ta.us/building
City of Newport Beach NO. BA- 053
BUDGET AMENDMENT
2002 -03 AMOUNT: $175,000.0
EFFECT ON BUDGETARY FUND BALANCE:
Increase Revenue Estimates Increase in Budgetary Fund Balance
�x Increase Expenditure Appropriations AND Decrease in Budgetary Fund Balance
Transfer Budget Appropriations qX 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 appropriate funds to cover expenses associated with high work demand in the Building Department. Also increase related
revenue estimates.
ACCOUNTING ENTRY:
Amount
BUDGETARY FUND BALANCE Debit Credit_
Fund Accoun t Description
REVENUE ESTIMATES (3601)
Fund /Division Account Description
2900 5002 Building Plan Check Fees $175,000.00
EXPENDITURE APPROPRIATIONS (3603)
Description
Division Number 2930 Building -Plan Check Permits
Account Number 8080 Services - Prof & Tech $175,000.00
Division Number
Account Number
Division Number
Account Number
Division Number
Account Number
Division Number
Account Number
�l Automatic System Ent?.
Signed: _ '
jJfi�ai/ ��f /l 3
Financial Approval: Administra�tive /Services Director Date
Administrative App val: City Manager Datd
Signed:
City Council Approval: City Clerk Date