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HomeMy WebLinkAbout7.6 Bldg Law Enforcement Contract f CITY OF DUBLIN 4L[o —,36 AGENDA STATEMENT CITY COUNCIL MEETING DATE: June 27, 1989 SUBJECT Building Law Enforcement Services Contract Review and Agreement Amendment (laugher & Associates, Inc. ) Report prepared by Paul Rankin, Assistant City Manager EXHIBITS ATTACHED o Memorandum from Mr. Victor Taugher to City Manager dated June 10, 1989 o Current Agreement o Amendment to Agreement RECOMMENDATION Review services and provide input on performance. Approve and authorize the Mayor to execute the amendment to the agreement. FINANCIAL STATEMENT: See Below DESCRIPTION Since 1983, the City has contracted with a private firm for services related to Building Law Enforcement. The firm of Taugher and Associates, Inc. , provides the services typically offered by a City Building and Safety Department. The services include: plan checking; inspection of building construction; housing code enforcement; zoning enforcement; and general administrative direction of the Building & Safety Department. The review will evaluate two separate components, Building Inspection and Zoning Investigation. BUILDING INSPECTION Personnel Provided Mr. Victor Taugher is the Building Official. His services are estimated to account for approximately 1 , 100 hours during Fiscal Year 1988-89 . This equates to slightly more than one half-time position ( . 60 Full-Time Equivalent) . In addition, it is estimated that the firm will provide 3, 400 hours of service by a Building Inspector classification. This equates to one full-time inspector and a second inspector working slightly over 3/4 time ( 2 . 20 Full-Time Equivalents) . Overall, Staff is quite impressed with the caliber of personnel obtained. Mr. Taugher is very active with the International Conference of Building Officials and respected within his field. Mr. Taugher has also been able to provide a Senior Building Inspector who has a great deal of experience and knowledge of the construction field. The stability of key personnel over the past several years has been an asset to the community. Given that the building industry can experience fluctuations, a contract arrangement allows the City to easily adjust to meet the demand. The contract arrangement has also been beneficial in obtaining services on a less than full-time basis from highly qualified individuals. Hours of Service - Building & Safety The Building & Safety Office maintains regular office hours from 8 : 00 a.m. to 5 : 00 p.m. each weekday. Typically, the Building Official is available from 8 : 00 a.m. to 12 : 00 noon, Monday through Friday. In addition, Mr. Taugher makes special appointments if a client needs to discuss a complex building issue. The Inspection Staff are usually available in the office from 8: 00 a.m. to 10 : 00 a.m. each weekday. As with Mr. Taugher, special appointments can be scheduled. Throughout the day, the public counter is staffed by City personnel from the Development Services Department. This includes the Building Secretary who is capable of processing applications and answering questions of a general nature. Staff does not have any indication that the hours of service need to be modified. -------------------------------------------------------------------------- COPIES T0: ITEM NO. 7� 61 Proposed Building & SaLcty Service Levels for 198; j0 During 1989-90, it is anticipated that the Building and Safety Department will experience an increased workload. The following represents comparisons of some of the key workload factors: ACTUAL ESTIMATED ESTIMATED 1987-88 1988-89 1989-90 Building Valuation $65, 724, 129 $30, 000, 000 $35, 000, 000 Permits Issued 1 , 068 860 900 Inspections 8, 537 7, 400 8, 700 Dwelling Units Issued 758 275 506 Dwelling Units Finaled 383 473 556 As shown above, it is anticipated that the number of inspections will increase by approximately 18%. This also coincides with significant i_pereases in estimated Dwelling Units issued (up 84%) and estimated Dwelling Units finaled (up 18%) . Attached to the Staff Report is an outline of specific projects anticipated to impact workloads through 1990-91 . In order to address this situation, Mr. Taugher has proposed to provide 4, 000 hours of inspection service. This equates to slightly more than two full-time Building Inspectors . Mr. Taugher' s time as Building Official is estimated to remain consistent with the 1988-89 Fiscal Year at 1 , 100 hours. Cost of Building Inspection Services As has been discussed in previous Building Law Enforcement contract reviews, the cost of services fluctuates depending upon the level of construction activity. The City is also able to recover costs through revenue collected from building permit fees . The City has maintained the fee structure utilized by Alameda County when the City incorporated in 1982 . No adjustments have been made to the fees since that time. The provision of Building Inspection Services includes both the contract costs and City expenses for support services . The following outlines the combined costs for Building Inspection Services : ACTUAL ACTUAL ESTIMATED RECOMMENDED 1986-87 1987-88 1988-89 1989-90 Taugher & Assoc. Inc. $206, 561 $278, 666 $249, 000 $293, 635 City Support Costs 38, 550 41 , 391 41 , 228 48, 432 Total Cost $245, 111 $320, 057 $290, 228 $342, 067 Total Revenue $567, 615 $513, 550 $249, 000 $320, 000 Although the 1988-89 costs exceed the expenses, these costs continue to be offset by revenues when the building inspection activity is reviewed over several years . This is important since permits may be obtained in one year and the actual inspection service is rendered in a future year. It should be noted, however, that the projection for 1989-90 continues to show a deficit. ( $320, 000 in revenue and $342, 067 in expenses. ) Another measure of the cost of service is to evaluate the contract costs per inspection. ACTUAL ESTIMATED ESTIMATED 1987-88 1988-89 1989-90 Contract Cost Per Inspection $ 32 . 64 $ 33 . 65 $ 33 . 75 1989-90 Proposed Costs and Contract Modifications The 1989-90 costs are based upon the proposed amendment to the agreement. Taugher and Associates have been able to retain a constant cost level when examined as a cost per inspection. Mr. Taugher has requested modifications in two areas which will impact the contract costs . First, he has requested an adjustment to the hourly rates . The percentage increase is approximately 5%, and it would result in the following changes : Current Rates Proposed Rates Building Official $ 73 . 50 $ 77 . 00 Building Inspector 46 . 00 48. 50 -2- It is important to note that the rates charged include vehicles, benefits and the contractor' s overhead. The second modification relates to the recovery of the insurance surcharge. Since Fiscal Year 1986-87, Mr. Taugher has charged an insurance surcharge. Since 1987-88, the surcharge has remained constant at $16, 000 per year. The insurance cost is billed as an additional hourly fee until the maximum amount has been paid. The current agreement calls for a $3 . 00 per hour surcharge with the maximum to be billed at $16, 000 . Mr. Taugher has proposed billing the surcharge at $4.00 per hour and continuing with the maximum amount billable at $16, 000 per year. This will allow the contractor to recover their insurance charges in May, rather than August. As shown in Mr. Taugher' s Memorandum, the City' s $16, 000 insurance subsidy only represents approximately 27% of Mr. Taugher' s total insurance costs. Staff believes that these adjustments are reasonable and it is recommended that they be incorporated in the proposed amendment. Cost Effectiveness of Building Inspection Activity In the 1988 review, it was noted that the certainty of development within the extended planning areas would warrant consideration of planning for an in-house Building & Safety function. The study process for these areas is now underway; however, it is not clear as to when actual development may occur. Given that these areas will also require significant infrastructure improvements to service the development, it is unlikely that construction in these areas will be impacting this department in the 1989-90 Fiscal Year. If the City were to provide the services with City employees, the personnel costs including fringe benefits are estimated as follows: Chief Building Official $ 74, 000 Senior Building Inspector 60, 000 Building Inspector 54, 000 Total Personnel Cost $188, 000 Additional Costs Contract Coverage for Vacation/Relief $ 30, 000 Vehicle Expense ( 2 Vehicles) 16, 000 Services & Supplies 3, 000 Indirect Cost (Additional Insurance, Personnel, Finance Administration) 11 , 000 Sub-Total Additional Costs $ 60, 000 Total Estimated 1989-90 Cost of In-House Building & Safety Services $248, 000 Estimated 1989-90 Contract Costs 293, 635 Additional Cost of Contract Building Inspector to City $ 45, 635 Although the 1989-90 projections indicate that the service can be provided at less cost by City personnel, it is most appropriate to look at this cost savings or additional expenses over more than one year. In the 1988 contract review, Staff conducted a review of the estimated savings from Fiscal Year 1983-84 through the estimated costs for 1988-89 . The comparison attempted to project the total cost of providing the Building Inspection Services in-house instead of with Contract employees. Over the six year period, it was estimated that the City had saved $32, 879 . When the data projected above for Fiscal Year 1989-90 is added, the end result is reversed and the contract service over the extended seven year period results in a $12, 756 cost to the City. Given that the timing of development in the extended planning areas has not been precisely defined, Staff is not recommending a change to in-house Building Inspection Services at this time. In addition to the extended planning area, Staff has noted that the developer time lines for construction would also impact the decision to bring the services in-house. For example, Staff anticipates that if approved projects within the City limits continued through completion in the next 12 to 18 months, it is anticipated that the workload would drop off prior to construction taking -3- place in the extended wreas . If this occurs, it _s advantageous to remain under a contract arrangement. However, if developers extend their construction process to the point that "build-out" is followed immediately by work in the extended areas, it would be to the City' s advantage to bring the services "in-house" . It should be noted that at that point, it may still be necessary to obtain certain services from a contract provider. This would include supplemental coverage during peak periods and vacation relief. ZONING ENFORCEMENT Contract Staffing Level This service is being evaluated separately, as a change is being proposed in Fiscal Year 1989-90 . In Mr. Taugher' s memorandum, he has estimated the need for 960 hours of Zoning Investigator services . If this were compared with a full-time City employee, it would equate to approximately a half-time position. (Adjustments were made to account for actual hours worked, excluding holidays and vacations. ) In addition to the investigation of zoning and property maintenance complaints, this position was also used to conduct the sign inventory. This data was used to inform sign owners when their signs did not meet the requirements of the Zoning Ordinance. Zoning Enforcement Workload Mr. Taugher has also provided workload measures for this service. The following are indicators of zoning related activities: 1987/88 1988/89 1989/90 Actual Estimated Estimated Zoning Investigations 1 , 526 1 ,824 1 , 800 Zoning Violations 220 212 220 Property Maintenance Inspections -0- 350 350 Property Maintenance Violations -0- 53 60 The Zoning Investigator has attempted to maintain regular hours. Typically, the hours were Monday, Wednesday, and a half day on Fridays. As shown above, the workload of the Zoning Investigator has remained relatively constant. Cost of Contract Zoning Investigator The proposed contract amendment contains a 5% increase in the rate for a Zoning Investigator. The current rate is $37 .50 per hour and it is proposed to increase to $39 . 50 per hour. The total annual cost for a Zoning Investigator working 960 hours is approximately $37, 920 . Cost Effectiveness As part of the Management Audit prepared by Hughes, Heiss, and Associates, Staff reviewed the cost of performing the service with an Assistant Planner classification. The estimated personnel cost (including fringe benefits) for a full-time Assistant Planner/Zoning Investigator is estimated at $41 , 080 . Staff estimates that the annual cost for mileage reimbursement would be approximately $600 . In comparison to the contract cost, the City would expend only $3, 760 for an additional 960 hours of service. Given a minimal cost for substantially more service hours, Staff is recommending that this portion of the contract be provided by a City employee in Fiscal Year 1989-90 . The Assistant Planner classification could also assist with the processing of Planning applications, when the workload associated with only zoning matters does not warrant a full-time position. This change will require time, since the City will need to develop a job specification and conduct a recruitment . Mr. Taugher has agreed to continue providing the service until such time as the City is able to implement the change. -4- Improved Level of Service The staffing of this position with a full-time employee also improves the level of service provided to the community. Given that this position often encounters the public in an enforcement situation, it is important that citizens attempting to correct problems have adequate access to the person handling the investigation. It is not Staff' s intent to utilize this position to modify the current City Council policy of investigating these matters on a complaint only basis. Mr Taugher' s personnel have always performed in a professional manner, however, the workload indicators and cost analysis indicate that it would be appropriate to provide this service with City personnel. This change also will allow the Planning Department to implement changes recommended in the Management Audit. Conclusion Staff would recommend that the City Council review the performance of Taugher and Associates and approve the proposed Contract amendment, which will be effective August 1 , 1989 . If the City Council concurs with the provision of Zoning Enforcement by a City Employee, Staff will proceed with the steps necessary to implement the change. Staff will also continue to evaluate the potential for performing other Building and Safety services with City Personnel. -5- Taugher and Associates, Inc. CONSULTING ENGINEERS P.O.BOX 20232 AREA CODE 415 18681 VINEYARD ROAD MEMORANDUM 537.2285 CASTRO VALLEY.CALIFORNIA 94546 June 10, 1989 . To: Richard Ambrose, City Manager From: Victor L. Taugher, Building Official Subject: 1989 - 90 Proposal- for Services (revised 6/10/89) 1988 - 89 Contract Review 1. Proposed 1989 - 90 contract A. Proposed Rates It is proposed that the basic rates for inspection services be increased as follows: Current Rate Proposed Rate Building Official $ 73 .50 $ 77. 00 Building Inspector 46. 00 48 .50 Zoning Investigator 37.50 39.50 City subsidy for liability 16, 000. 00 16, 000.00 The proposed rate reflects an increase of approximately 5%. No increase in the subsidy for liability insurance is requested. B. Insurance I have discussed insurance rates with my broker. While it is too early to obtain a definite quote, it is esti- mated that the cost of errors and omissions insurance for next year will be about the same as this year. However, it is possible that forced reductions in auto liability insurance due to Proposition 103 may lead to increases in other types of insurance. The following is the cost of my errors & ommissions insurance. 1985-86 1986-87 1987-88 1988-89 Insurance cost $28, 645 $40, 067 $46, 321 $56, 119 Increase 25, 865 14,202 6, 254 9,798 City Subsidy -0- 12, 000 16, 000 16, 000 1 It is requested that the City continue to subsidize insurance costs this year in the amount of $ 16, 000 with the hourly rate to be adjusted to $4 .00 per hour. -By changing the rate to $4. 00 per hour the $16, 000 subsidy will be recovered in May instead of August. C. Staffing Levels The attached Bar chart is a projection of scheduling of major projects. The time frame for these projects should be only considered indicators of work load. Depending on the economy and other factors, these times could either compress or lengthen out. Staffing levels projections for next year are as follows: Actual Estimated Budget Proposed 1988-89 1988-89 1988-89 1689-90 (10 months) Building Official 921 1100 1000 1100 Building Inspector 2816.9 3400 4250 4000 Zoning Investigator 840 960 960 960 D. Changes in Work Method We are looking foreward to an automated land information system and permit system which hopefully will be up and running in 1989 - 90. E. Agreement Amendment Attached is a Resolution revising the Rate Schedule. 2 . 1988 - 89 Contract Review A. 1987 _ 88 Fiscal Year Report Attached is the 1987 - 88 Fiscal Year report of Building Inspection Department Activity. 2 B. Statistical Protection 1987-88 1988-89 1989-90 Actual Estimated Estimated Bldg. Permit rev. $ 513 .556 $ 275,000 $ 320, 000 Bldg. Valuation 65,724 , 124 30, 000,000 35, 000, 000 Permits 1, 068 860 900 Inspections (Bldg. ) 8,537 7,400 81, 700 Res. Units completed 383 473 556 Zon. investigations 1,526 1,824 1,800 Open cases 115 131 106 New cases 220 212 220 Cases closed 194 237 230 Cases pending 131 106 95 Property Maint. Insp. 350 350 Open cases -0- 6 New cases 53 60 Cases closed 47 50 Cases pending 6 10 C. Self Evaluation Building Inspection Services have been provided in a timely manner in 1988-89. The attached statistical data bear out that services are being provided in an efficient manner. The bottom line cost per inspection increase reflects the increase in hourly rates. Attached are two letters of comendation. The sign enforcement program is proceeding as scheduled. Illegal signs remain on only 2 properties. All required notices for non-conforming signs were issued. A reminder notice now being delivered to effected properties. The property maintenence ordinace is now being implemented by the zoning investigator. The limited data indicates statistically that the program is proceeding well. However, the overall effect of the ordinance on the City has been remarkable. Owners are again taking pride in their properties and there has been a preceptable improvement in the appearance of many residential neighborhoods. In conclusion, I believe that contract performance has been carried out in an exemplary manner. 3 D. Cost of Service Actual Budget Estimated 1987-88 1988-89 1989-90 Cost Administration & Plan review $ 99, 904 $ 73, 345 $ 84, 385 Bldg. Inspection 178 , 355 194 ,735 193 , 250 Bldg. & Safety Contract Cost 278, 265 268,080 277, 635 Zoning Enforcement 38, 175 36, 000 37,760 Insurance Surcharge * 16, 000 16, 000 Total Contract Cost 316, 440 320, 080 331, 395 City Support 41 , 391 45, 385 48 , 845 $ 354, 638 $ 365, 465 $ 380, 240 Hours Bldg. Official 1385 1000 1100 Bldg. Inspection 3851.8 4250 4000 Zoning Investigation 955.5 960 960 * included in above costs 4 November 7, 1988 Mr. Richard C. Amboose City of Dublin 6500 Dublin Blvd. P.O. Box 2340 Dublin, CA 94568 Dear Mr. Ambrose: Pulte Home Corporation would like to extend a notice of recognition to you regarding the professionalism displayed by one of your building inspectors. Mr. Robert White has served as your representative for our Hacienda Heights project on Betlin Court and through many on-site and in-office conferences he has always been instrumental in helping us to find solutions to resolve the problems associated with the project. We commend his overall knowledge of the Uniform Building Codes and the specific codes and ordinances for the city of Dublin as well. He has never compromised his professional integrity for the sake of a hasty or unwarranted decision. His dedication to the City of Dublin, to the professional quality of the Building Industry, State Codes, and our homebuyers and your new citizens is refreshing and gratifying. He is definitely an asset to your staff. Sincerely, Don Fastabend Project Manager Pulte Home Corporation cc: Mr. Paul S. Rankin - Assistant Manager - City of Dublin Mr. Victor Taugher - Building Official - City of Dublin Mr. Richard Baker - President - Pulte Home Corporation Northern Division 1J(lltiC LOAD 1'1m,I1"C'1'TONS c au i 89 Ju I.y go �. Jan 8) 3 0 -— 1-1•-- Bordeaux q `3 Village VII 138 (50 comp].eto) 88 .c 1�,K i dar -- — f e . ldara 174 `1 :Village V 204 —20 - �t.. �;«•;,,:Ahmanson/Images iR Village IV 135 135 ' 11critagc Couunons• wt•:,. 216 : �'.:-Village IIZ 216 _ ' . Fallon School ��. Mansell Ranch :-. Dubney Office Bldg. Rainbow Investments (AddiCiun) _.._....--- :'.'Valley. Cl,risl;ian Ctr. (School) lst 1Jesta1,11 Develop. (Ci,mm. 11.1111;) B1 d gs ­Rainbow In (3 Bldg s) (Addition) Y .. Enca Plaza r•� Al%UNDMENT TO AGRM ICNT CITY OF DUBLIN AND TAUGHER & ASSOCIATES, INC. FOR BUILDING LAW ENFORCEMENT SERVICES WHEREAS, the City of Dublin (hereinafter referred to as "City") , and Taugher and Associates, Inc. (hereinafter referred to as ("Building Off ici'al") , first emtered into an Agreement on August 1, 1983 to provide Building Law Enforcement Services to the City of Dublin; and WHEREAS , the fees established in Exhibit "A" of the original agreement were to be annually reviewed and adjusted as mutually agreed upon by the Building Official and the City; and WHEREAS, an adjustment of fees for services has been made by the City on an annual basis in the past; and WHEREAS, the City wishes, to continue contracting for services from Building Official; and WHEREAS, an adjustment of fees for services rendered is desired by both the City and Building Official. NOW, THEREFORE, the parties hereto agrees as follows: SECTION I . ADJUSTMENT OF RATES, The Taugher & Associates, Inc. hourly rate schedule (Exhibit A) shall replace the rate schedule which was adopted by the City Council and became effective August 1, 1988 . The change in rate shall be effective August 1, 1989 and shall continue in effect until recinded or amended by the City Council, according to the provisions of the agreement. CITY OF DUBLIN Mayor Attest: City Clerk TAUGHER & ASSOCIATES, INC. Victor L . Taugher 1 EXHIBIT A RATE SCHEDULE CLASSIFICATION FEE RATE PER HOUR Buiding Inspector $ 48 .50* Inspection 48 . 50* Housing & Zoning Enforcement 48.50* Plan Checking (Residential and Non-Structural Commercial and Industrial Plan Checking) 48.50* Principal Building Official Inspection 48.50* Housing & Zoning Enforcement 48 .50* Plan Checking (Complex Residential, Commercial and Industrial Buildings) 77 . 00* Supervision and Administration 77 . 00* Zoning Investigator Zoning Enforcement 39.50 This rate will be effective for the period beginning on August 1, 1989 and ending on July 31, 1990 . The rates will be adjusted thereafter annually, as mutually agreed upon by the Building Official and the City of Dublin. In the event that the Building Official is requested to perform services in excess of forty (40) hours in any one (1) week, or in the event that there is an emergency requiring the services of the Building Official and the City is reimbursed for said services, the Building Official shall be compensated at 1 - 1/2 times the above hourly rates . Standard rates will apply for Building Official ' s attendance at Planning Commission and City Council Meetings. * An additional insurance surcharge of $4.00/hour not to exceed $16, 000. ** Supervision duties include review and coordination of work performed by Inspectors and clerical support staff. Administrative duties include City Council and Commission meeting attendance when requested, meetings with applicants and developers, inter-agency coordination and coordination with Staff, development of office procedures, operations, etc. 2