HomeMy WebLinkAbout1988-05-03; City Council; 9413; Contract plan checking funding3 4B# ?q/
MTG. 5-3- 8r
IEPT. B-
RECOMMENDED ACTION:
Adopt Resolution No. 88- I 44 appropriating money from the
General Fund Contingency Account to the Building Department to cover contract plan checking costs for fiscal year 1987-88.
TITLE REQUEST FOR ADDITIONAL
APPROPRIATION FOR CONTRACT
PLAN CHECKING
ITEM EXPLANATION
The City's Building Department contracts with ESGIL Corporation for plan checking services. This contract provides considerable
flexibility in processing plans through the Building Department
and reduces the time necessary for plan checking when compared to
providing in-house services. The contract with ESGIL is based on a fixed formula which pays 80% of the City's plan check fee to ESGIL, while returning the remainder of the fee to cover City
costs.
The original budget did not anticipate the level of building that
has occurred and, therefore, under funded the plan check services
contract. The department has spent $197,498 through March and
will spend approximately $26,000 per month for the next three
months. The request for $78,000 is based on three months at
$26,000.
The Community Development Director is requesting that $78,000 be added to the Building Department's Miscellaneous Consultants account to cover these additional plan check costs for the remainder of 1987-88. The estimated revenue for plan check services more than offsets this request.
FISCAL IMPACT
$78,000 will be transferred from the General Fund Contingency
Account to the Building Department Miscellaneous Consultants account (001-820-3610-2479). This transfer is offset by
additional revenue from building related services and will not
negatively affect the City's fiscal position.
EXHIBITS
1. Resolution No. 88- I y'7/ approving additional appropriation
2. Memo to the City Manager from the Community Development
Director, dated March 8, 1988
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RESOLUTION NO. 88-144
A RESOzaTION OF TBE CITY CWJNCIL OF TEE CITY OF CARLSBAD,
CALIFORNIA, APPROPRIATING ADDITIONAL FUNDS FOR CONTRACT PIAN
CHECKING.
WHEREAS, the Building Department of the City of Carlsbad is
required to perform plan checks, and
WHEREAS, the demand for plan checks has been such that the
Building Department must contract with a private firm to perform
some of this work, and
WHEREAS, projections of costs based on average monthly
demand show that current appropriations are insufficient to cover
costs for the remainder of the 1987-88 fiscal year, and
WHEREAS, the City of Carlsbad receives revenues from plan
check and inspection fees to cover the cost of providing this
service :
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Carlsbad, California, as follows:
1. That the above recitations are true and correct.
2. That the additional appropriation of $78,000 for
Building Department Miscellaneous Consultants (001-820-3610-2479)
is hereby approved. 3
3. That the City Council authorizes and directs the City
Manager to fund the additional appropriation to the Building
Department by a fund transfer from the General Fund Contingency
Account.
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PASSED, APPROVED AND ADOPTED at a regular meeting of the
3arlsbad City Council held on the 3rd day of May I
1988, by the following vote, to wit:
AYES: Council Members Lewis, Kulchin, Pettine, Mamaux and Larson
NOES: None
ABSENT: None
ATTEST :
(SEAL)
2.
APRIL 18, 1988
To: CITY MANAGER
FROM: COMMUNITY DEVEIOPMENT
F”D TRANSFER
DIRECTOR
We are requesting a fund transfer of $78,000 to cover contract
building plan checking with Esgil Corporation for the balance of our fiscal year, April 1 through June 30, 1988. It has been very difficult to foresee our plan check costs during this early
period of growth management. Some developers responding to the
conditions imposed by our various zones might hasten to place
plans in plan check to be ready for the release of the zones for
permits. Others might decide not to risk any fees until the zones are clear and permits can be issued. This indecision is
reflected in our billings from Esgil. For example, the invoice
for the month of August, 1987, was $11,000, and for January,
1988, it was $40,000.
We are estimating $26,000 per month for the next five you will see in the tabulation below:
Ekgil Invoices 7/1/87 thru 3/31/88
Plan check Imxrme Balance for Support services - DFS Estimated Ekgil Invoices 4/1 thru 6/30/88 Estimated Plan check Imxrne 4/1 thru 6/30/88
Balance for Support service - DPS
197 , 498
258 , 603
78 , 000
86 , 189
!cwlms 275,498 344 , 792
months as
61 , 105
8,189
69 , 294
We are fortunate to have this association with Esgil who can
expand or contract to our needs. Our fixed contract amount is
80% of the plan check fee paid by the applicant, and we do not
have to maintain unproductive overhead when the economy declines.
Some time ago we became curious about the cost if we were to
employ plan check engineers instead of contracting. We estimated that we would need 4.5 engineers/plan checkers on staff to
maintain our present turn around times.
MARTY ORENYAK
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