HomeMy WebLinkAboutItem 2h - Plan Check Services budget increaseG- L
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DATE
TO:
February 4, 2014
Honorable Mayor and City Council
STAFF REPORT
Development Services Department
FROM: Jason Kruckeberg, Assistant City Manager /Development Services Director
By: Jim Kasama, Community Development Administrator
Don Stockham, Building Official
SUBJECT: INCREASE THE BUILDING SERVICES PLAN CHECK BUDGET FROM
$400,000 TO $800,000 FOR ADDITIONAL PLAN CHECK SERVICES
FOR FISCAL YEAR 2013 -14
Recommendation: Approve
SUMMARY
Due to the substantial increase in development activity throughout the City, the
$400,000 of pass- through funds budgeted for Building Services Plan Check expenses
for Fiscal Year 2013 -14 will be exhausted with the payment of December invoices. It is
recommended that the City Council approve a $400,000 increase of the Building
Services Plan Check budget to $800,000 for additional plan check services for the
remainder of this fiscal year.
BACKGROUND
Four hundred thousand dollars ($400,000) was budgeted for Building Services Plan
Check expenses for Fiscal Year 2013 -14. This was based on an expectation that
development activity would increase slightly from the preceding fiscal year; however,
development activity in the first half of this fiscal year has increased substantially in both
the number of projects submitted and the overall size and complexity of projects. At the
end of the last fiscal year, a total of 796 building plan checks had been submitted with
total receipts of $1,121,851 in plan check fees. As of the end of December 2013, 482
building plan checks have been submitted with total receipts of $824,655 in plan check
fees. At this pace, the total number of plan checks for FY 2013 -14 could be 964 (a 21 %
increase) with total receipts of $1,649,310 in fees (a 47% increase).
Plan Check Budget Increase
February 4, 2014
Page 2 of 3
DISCUSSION
Building Services contracts for plan check services with two firms: VCA Code Group,
and Scott Fazekas & Associates. The consultants are paid on a pass- through basis.
Plan checks are paid for by the applicant at the time of submittal, and the consultants
are paid after they perform the plan checks. For plan checks that are referred to a
consultant, approximately 40% of the plan check fees are retained by the City to cover
administrative costs, and the remaining 60% is provided as payment to the plan check
consultant. For FY 2013 -14, $400,000 was budgeted for Building Services Plan Check
expenses, and $351,755 has been paid to the plan check consultants for their services
through November of this fiscal year. There is $48,245 remaining in the Building
Services Plan Check expenditure account. The December invoices from the plan check
consultants total $58,312. With six months left in the fiscal year, it appears that at least
another $400,000 is needed to continue providing plan check services through the end
of the fiscal year.
FISCAL IMPACT
The increase of the budget for plan check services will have a positive impact on
General Fund revenue in FY 2013 -14. Plan Check expenses are paid on a pass -
through basis. The plan review consultants are paid for the plan checks they have
performed, and the fees for these plan checks are collected at the time the applicants
submit their plans. For every plan check referred to a consultant, the City retains
approximately 40% of the fee to cover administrative costs, and the remaining 60% is
for payment to the plan check consultant. Thus, a doubling of the pass- through budget
for plan check services from $400,000 to $800,000 could potentially lead to a doubling
of total receipts from plan check services from $800,000 to $1.6 million.
RECOMMENDATION
It is recommended that the City Council approve an increase the Building Services Plan
Check budget from $400,000 to $800,000 for additional plan check services for Fiscal
Year 2013 -14.
Approved:
a �
Dorniniic Lazza
City Manager