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HomeMy WebLinkAbout55A - RESO - AA - ADDING PBA POSITIONSREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: SEPTEMBER 16, 2014 TITLE: APPROPRIATION ADJUSTMENT TO RECOGNIZE ADDITIONAL PLANNING AND BUILDING AGENCY REVENUE AND RESOLUTION TO ADD BUILDING SAFETY AND PLANNING POSITIONS TO THE FY14 -16 BUDGET (CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1" Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Approve an Appropriation Adjustment recognizing $772,000 in additional Planning and Building Agency Revenue. 2. Adopt a resolution amending the City's basic classification and compensation plan and to amend the Fiscal Year 2014 -2015 annual budget to create five Building Safety positions and two Planning positions. DISCUSSION Background For many years the Building Division met or exceeded a 24 -hour turnaround time for all building, electrical, mechanical and plumbing inspections. This level of service was comparable to surrounding municipalities and represented the generally accepted performance goal for inspection services in the County. The Building Division was able to maintain this level of service with 15 specialty (electrical / plumbing) and combination building inspectors. Beginning in 2009, budget constraints and un- filled retirements resulted in the reduction of over 60 percent of inspection staff. While these reductions negatively impacted inspection turnaround times, the impact was lessened by a concurrent reduction in building activity due to the economic downturn. Building permit applications and inspection activity have steadily increased since 2010 as major development projects that were put on hold during the recession have restarted and new projects are being proposed. There are a number of large residential and commercial projects in various phases of the planning, design and construction process within the City including: 55A -1 Appropriation Adjustment and Amendment September 16, 2014 Page 2 Project Name Address Project Description Legado at the 200 E. First American 5 -story, 281 -unit multi - family residential project MET Way Lyon 1901 E. 1st Street 5 -story, 256 -unit multi - family and 3 -story Communities townhouse project 200 N. Cabrillo Park 6 -story, 219 -unit multi - family residential project The Madison Drive with 6,325 square feet of retails ace The 301 by 4 -story, 182 -unit multi - family residential project Le ado 301 E. Jeanette Lane above 2- levels of parking C&C 1206 N. Harbor 112 -unit residential project with a mix of single - Development Boulevard family and live /work units The Depot at 923 N. Santiago Street 70 -unit multi - family residential project with 9,000 Santiago square feet of retail /offices ace Parkview Town 555 E. Memory Lane 8 -story, 174 -unit independent senior living facility and Country Renovation of the food court area and Macy's Main Place 2800 N. Main Street building to add entertainment/restaurant uses and Mall Remodel a 24 -hour Fitness Discovery Science Center 2500 N. Main Street 53,868 square foot expansion of exhibit space Expansion This continued growth from the building industry compounded by limited inspection staff has resulted in building inspection turnaround times of three to five -days. On large projects, this substandard level of service results in increased costs to the developer as contractors are not able to continue construction until an inspection has occurred. On small projects, this delay in inspections often results in a property owner or contractor doing work illegally without permits. Over the last year Development Projects submitted to the Planning Division for design review has increased 33 percent. This increase is an indicator of continued future growth as development projects start with the Planning Division before progressing into building plan check and ultimately, permit issuance and construction. Additionally, the valuation of permits issued has also increased over the last year by 15.8 percent. This increase in building valuation indicates that the scope and scale of projects is also increasing as larger, and thus higher valuation, projects are being developed. These indicators of continued growth further underscore the need for adequate staffing levels to meet the needs of the development community. Economic Development Task Force On August 12, 2014 a presentation regarding building inspection service levels was given to the Economic Development Task Force, a panel consisting of local and regional economic development and business owners. The purpose of the presentation was to review current staffing and service levels and receive feedback from the panel regarding staff recommendations for ways to improve inspection turnaround times. 55A -2 Appropriation Adjustment and Amendment September 16, 2014 Page 3 Following the presentation, many of the Task Force members expressed concerns regarding the negative impacts that delayed inspection turnaround times cause. Most notably among these were the added costs to the developer that result from delays in the inspection process and inconsistency in information provided to the contractors that results from having different inspectors visiting the job site over the course of construction. The Task Force agreed with the recommended staffing increases in order to return to next -day inspection level of service. Development and Transportation City Council Committee On September 4, 2014 a presentation regarding building inspection service level improvements was given to the Development and Transportation Council Committee. Similar to the presentation given to the Economic Development Task Force, this presentation focused on current building inspection service and staffing levels and included the recommendations from the Economic Development Task Force regarding increasing staffing levels. The Council Committee supported the recommendations from staff and the Task Force that the negative impacts from delayed inspections hinders construction and economic development as well as causes unsafe construction as frustrated property owners and contractors elect to do work without permits. Conclusion / Recommendation Following a thorough review of current and projected workloads and staffing levels, in order to return to a next -day level of service for Building Inspections, it is anticipated that five additional Building Safety staff are required. This will include three Combination Building Inspectors, one Senior Combination Building Inspector and One Permit Processor. The Building Division is also implementing a number of technology and process enhancements to maximize the efficiency of both current and proposed inspection staff. These innovations include the development of a number of online services such as online inspections scheduling and online permitting which allow customers to access city hall 24/7 to schedule, cancel or check the status of inspections, plan checks and permits. The Building Division has also recently equipped each of its Building Inspectors with smart phones and plans to further expand the services that inspectors can provide in the field including posting inspection results and electronic correction notices. Providing adequate staffing to offer next -day inspections not only improves customer service and efficiency but also increases the safety and quality of construction by eliminating a common reason why small residential and commercial contractors pursue work without permits. The Planning Division is also requesting to create two Assistant Planner positions as part of this action. These entry-level positions will be primarily assigned to the public counter to assist walk - in and phone customers with planning, zoning and development related questions. These positions will work in concert with the building permit, plan check and inspection staff to improve customer service and reduce wait and turnaround times at the public counters. The planning positions will be funded from the savings resulting from the un- funding of a Principal Planner position and two part-time planning technician positions. 55A -3 Appropriation Adjustment and Amendment September 16, 2014 Page 4 STRATEGIC PLAN ALIGNMENT In March, 2014, the Santa Ana City Council adopted the Santa Ana Strategic Plan. This policy document established specific goals, objectives and strategies to guide the City's major efforts during the next five years. Many of the objectives and strategies identified under the Goal of Economic Development were related to business /job growth and improving customer service and efficiency to promote development in the City. Approval of this item supports the City's efforts to meet Goal No. 3 Economic Development, Objective No. 3 (promote a solutions -based customer focus in all efforts to facilitate development and investment in the community), Strategy C (explore opportunities to encourage a business friendly environment within the city through the reduction of non - essential regulatory requirements, improved coordination between agencies for development review and addition of monetary incentives), Goal No. 5 Community Health, Livability, Engagement & Sustainability, Objective No. 3 (facilitate diverse housing opportunities and support efforts to preserve and improve the livability of Santa Ana neighborhoods). Additionally, by utilizing ongoing revenue that exceeds projected revenues this action also supports Goal No. 4 City Financial Stability, Objective No. 2 (provide a reliable five -year financial forecast that ensures financial stability in accordance with the strategic plan), Strategy A (adopt a budget that is in alignment with the financial forecast and strategic plan). FISCAL IMPACT Increased development activity in Fiscal Year 2013 -2014 resulted in approximately $772,000 additional Planning and Building Agency revenue. While construction activity is variable based on market conditions, the number and scope of new residential, commercial and industrial projects received to date indicate a sustained increase in Planning and Building revenues above the projected amounts for Fiscal Year 2014 -2015 and the foreseeable future. This increased revenue will be used to offset the increased costs associated with additional Building Division staff (5 positions) in the amount of $565,000 in salaries and benefits (Account 01116530). Funding for the two Planning Division positions at an estimated cost of $190,000 (Account 01116510) will be provided through the savings resulting from the deletion of a Principal Planner position ($137,872) and two part-time planning technician positions ($52,628) resulting in no net increase in costs to fund these positions. APPROVED AS TO FUNDS AND ACCOUNTS: pA+ �� Karen Haluza Interim Executive Director Planning and Building Agency M F: rb MFIRFCA — Building Safety and Planning Positions - RFCA g- 162014 Francisco Gutierrez Executive Director Finance and Management ServicesJl6'- 55A -4 RESOLUTION NO. 2014- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA TO AMEND THE CURRENT ANNUAL BUDGET TO DELETE ONE FULL TIME POSITION AND ADD SEVEN FULL TIME POSITIONS IN THE PLANNING AND BUILDING AGENCY. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1: The City Council hereby finds, determines and declares as follows: A. On July 1, 2014, the City Council passed and adopted Ordinance No. NS -2867, establishing the City's Budget and authorizing position allocations for Fiscal Year 2014 -2015, and requiring that alterations in the allocation of authorized positions be reviewed and approved by the City Council. B. On March 18, 2014, the City Council adopted the 5 -year Santa Ana Strategic Plan. This plan established specific goals, objectives and strategies to guide the City's major efforts during the next five years. C. In keeping with the goals, objectives and strategies outlined in the Santa Ana Strategic Plan, along with recommendations from the Development and Transportation Council Committee, and the Economic Development Task Force, the Interim Executive Director of the Planning and Building Agency proposes deleting one (1) full time position and adding seven (7) full time positions in the Planning and Building Agency budget to assist with supporting development in the City and providing improved customer service. D. It is now desired to amend the Adopted Budget for Fiscal Year 2014 -2015, as amended, to effect these changes. Section 2: That Ordinance No. NS -2867, the Annual Budget for Fiscal Year 2014 -2015, as amended, shall be further amended by: A. Deleting one (1) full time Principal Planner position in the Planning and Building Agency, at the monthly five -step salary rate range as indicated: 5 -Step Salary Rate Range Effective 9/16/14 Monthly Salary Classification Title SRR Minimum - Maximum Principal Planner AM760 $8515 - $10350 55A -5 B. Adding seven (7) full time positions in the Planning and Building Agency, at the monthly seven -step salary rate ranges as indicated: Section 3: That except as amended by this Resolution, all other provisions of Ordinance No. NS -2867 setting forth the Annual Budget for Fiscal Year 2014 -2015, as amended, shall remain in full force and effect. 2014. Section 4: This Resolution shall be operative from and after September 16, ADOPTED this 16th day of September, 2014. Miguel A. Pulido Mayor APPROVED AS TO FORM: Sonia R. Carvalho City Attorney By: Joseph Straka Assistant City Attorney AYES: NOES: ABSTAIN: NOT PRESENT: Councilmembers Councilmembers Councilmembers Councilmembers 'P�PM 7 -Step Salary Rate Range Effective 9/16/14 Number of Monthly Salary Classification Title Positions Added SRR Minimum - Maximum Assistant Planner 1 2 643 $4810 - $6446 Combination Building 3 643 $4810 - $6446 Inspector Permit Processor 1 581 $3550 - $4764 Senior Combination 1 663 $5304 - $7107 Building Inspector Section 3: That except as amended by this Resolution, all other provisions of Ordinance No. NS -2867 setting forth the Annual Budget for Fiscal Year 2014 -2015, as amended, shall remain in full force and effect. 2014. Section 4: This Resolution shall be operative from and after September 16, ADOPTED this 16th day of September, 2014. Miguel A. Pulido Mayor APPROVED AS TO FORM: Sonia R. Carvalho City Attorney By: Joseph Straka Assistant City Attorney AYES: NOES: ABSTAIN: NOT PRESENT: Councilmembers Councilmembers Councilmembers Councilmembers 'P�PM CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2014 -_ to be the original resolution adopted by the City Council of the City of Santa Ana on September 16, 2014. Date: 55A -7 Clerk of the Council City of Santa Ana y •