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Home My WebLink AboutBuilding Inspection 1st Quarter Fiscal year 2009 Update v � Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Anna Rosenberry, Finance Director Cal Doerksen,Acting Chief Building Official Chris Kukulski, City Manager SUBJECT: Building Inspection 1"Quarter FY09 Update July I-Sept 30, 2008 MEETING DATE: October 20,2008 RECOMMENDATION: Continue with current staffing levels in the department, and evaluate again after December 2008 (2"d Quarter FY09). BACKGROUND: Because of the difficulties estimating Building Inspection revenues and workloads (plans reviews & inspections)this fiscal year,we committed to make quarterly decisions regarding staffing levels and operating costs in the department. The FY09 Budget was balanced with the following assumptions: A. Without an increase in current fees, we estimated receiving approximately$70,000rmonth. This estimate was based on building permit activity during the last quarter(April-June)of FY08. The months of April, May, and June 2008 had seen a 31%decrease in pen-nit revenue from the same period in 2007, so it was clear that building activity in the City was changing. How much revenue we collect is a function of the number of permits sold and the type of project being constructed. For the first quarter of FY09, actual revenues collected averaged $95,000/month,or 35%above our estimated amount without the fee increase. Basis,for F109 Budget Estimates-Actual Revenues d" QTR FY08 Alwi12008 - $68,000 11 aY 2008 S6 3.000 June 2008 588,500 Average Per,llonth: - _ $73,000 Actual Revenues I"QTR FY09 July 2008 - --- ----- - - --�—�-$108,000 August 2008 $81,000 September 2008 $96,000 Average Per Month: $95,000 B. The Commission was not in support of raising building inspection fees until the Fund's reserve level hit 50%of annual expenditures. This equates to a reserve level of$597,000. • The Building Fund's cash reserve was at$803,000 at the end of September, an increase of$16,000 since July. We were not expecting the reserve to increase during this quarter, so this is good news. • The Department's budget averages $99,6001inonth. Actual spending for the quarter was $277,116, or$92,400imonth, slightly below our estimates(see the attached budget status report through September 2008.) The lower expenditure levels are attributed primarily to the fact that the Chief Building Official position remains vacant. • Assuming revenues decrease to$70,000 for the following nine months,the reserve will hit the target around March 2009. C. Staffing within the Department was decreased by 2 Building Inspectors and I Fire Inspector by the time the final budget was adopted. This left the department with 4 Building Inspectors and 1 Fire Inspector. "Inspections per Inspector Day"has historically been used to measure the workload of building inspectors, with 15-18 inspections/inspector-day being the accepted level. Inspections/Inspector Day Month Standard 15-18 July 2008 19.5 August 2008 17.8 September 2008 22.5 The August Hail Storm did damage to homes and businesses on the south side of the City, and as a result, increased inspection numbers and permits sales significantly in September. Of the 165 building permits for the month, 102 were roofing permits. Roofing permits and inspections will fall off in October, since this was a single, weather-related incident. Two large public projects,the City's Water Reclamation Facility and the County Detention Center,will require a significant amount of inspection and plan review efforts. With decisions to award construction bids expected in the month of November, staffing these projects may influence our recommendation at the end of December. Two of the past three months saw workloads above our standard in the department. But, given the continuing troubled economic events,the fact that the September hail storm was an isolated incident, and the possibility of two large public projects being awarded in November,we are not recommending any changes to staffing levels for the coming quarter. D. Building Permit Numbers: The number of permits increased 25% over our April, May,June 2008 levels. 102 of the 358 building permits(approx 28%)were roofing permits. Without these roofing permits,total permit numbers would still be ahead of our Spring levels. Building Permit Activity - 25% Increase 1,200 1,000 259 Soo DEMOLITION MOVING 228 181 ®FIRE SYSTEMS 600 e PLUMB./MECH. 174 ELECTRICAL 400 o PLAN CHECK o BUILDING 200 0 4Qtr FY08 1Qtr FY09 PERMITS 4Qtr FY08 1Qtr FY09 BUILDING 192 358 PLAN CHECK 200 205 ELECTRICAL 174 181 PLUMB./MECH. 228 259 FIRE SYSTEMS 24 19 MOVING 1 3 DEMOLITION 6 8 Total 825 1033 E. Continue to recruit and fill Chief Building Official position. If this position had been filled for the entire quarter, $20,340 in additional costs would have been charged to the department. We would still be within budget,but would not have added to the reserve. F. Because the Commission has expressed an interest in phasing-in any fee increases, we will develop recommendations in the coming weeks that would need to be implemented before the desired reserve level is reached. For the past decade,the volume of permits issued and revenues collected had been increasing each year. The tight labor market of the recent past made it difficult to recruit and retain qualified inspectors which resulted in higher-than-anticipate vacancy savings. Because of the sheer volume of applications for permits each year,the Building Inspection Division had to periodically lower its fees so that the Department didn't go over the one-year statutorily allowed cash reserve amount. Because of the additional work load, new department employees had been added, adding to the annual budget,but fees remained the same. With the slowdown of new construction during the last few months,these artificially low permit fees are not expected to keep pace with department costs, especially once the expense of the Chief Building Official is added. A proposal for a phased increase of Building Inspection fees will be presented to the Commission in November to ensure that plans and projects coming through the door will adequately fund the future staffing levels necessary to provide inspections. FISCAL EFFECTS: None. ALTERNATIVES: As suggested by the City Commission. Respectfully submitted, Anna Rosenberry, Finance Director Cal Doerksen, Acting Chief Building Official Chris Kukulski, City Manager Report compiled on: October 15, 2008 Attached Documents: Building Inspection Fund Expenditure Detail Report July, August, September 2008 Building Permit Reports City of BozemaQ It1 Ill�l\I.1\�PI�fH 1\111\HI�\ BUILDING PERMIT REPORT JULY 20081FY 2009 FISCAL YEAR 2009 Jul-2008 Jul-2007 YTD as of July-2008 YTD as of July-2007 THIS MONTH-FY2009 THIS MONTH-FY2008 YEAR TO DATE-FY2009 YEAR TO DATE-FY2008 NEW CONSTRUCTION NO VALUATION NO VALUATION NO VALUATION NO VALUATION SINGLE FAMILY 7 $1.827809 25 $4 973.758 7 $1,827,809 25 S4,973.758 DUPLEX 16'32 $5.350436 1632 $5,350,436 2 BIdgs 30 Un-Is 2 810gs 30 Units MULTI-FAMILY $1,691 088 $1,691.088 MISC(GARAGE SHED.FENCE.ETC.r 2 $40 250 2 $40 250 SSEM164Y BUSINESS 1 $446.527 3 $3,010 615 1 $446 527 3 $3,010.615 EDUCATIONAL FACTORY 1 $342,022 1 $342,022 HAZARDOUS INSTITUTIONAL 1 $5.555.180 1 $5,555.180 %1ERCHANTILE 1 $1,060.762 1 $1.060,762 "OTEVHOTEL STORAGE TOTAL 12 $8,930,528 38171 $15,367,919 12 $8,930,528 47191 $15,367,919 ADDITION/REMODEL NO VALUATION NO VALUATION NO VALUATION NO VALUATION RESIDENTIAL 18 $947.290 19 $380,959 17 $919,956 19 $380.959 COMMERCIAL 21 $13.375,511 11 $3,833.788 21 $13.375,511 11 $3,833.788 TOTAL 39 $14,322,801 30 $4,214,747 39 $14,322,601 30 $4.214,747 CONSTRUCTION VALUE REVENUE NO AMOUNT NO AMOUNT NO AMOUNT NO AMOUNT BUILDING 79 $55 037 83 $44 172 79 $55,037 83 $44.172 PLAN CHECK 108 $30.447 106 $48.336 108 $30,447 106 $48,336 ELECTRICAL 68 $7,245 65 $5,790 68 $7.245 65 $5 790 FLU.1BINGIAECHANICAL 102 $12.073 125 $13,449 102 $12,073 125 $13.449 FIRE ALARM"'SUFPRESSION SYSTEMS 11 $1,072 7 $1 484 11 $1,072 7 $1,484 MOVING 2 $40 2 $40 DEMOLITION 4 $70 5 $100 4 $70 5 $100 PENALTIES 21 $2,278 21 $2.278 MiSC REVENUE $199 $1 064 $199 $1,064 TOTAL 395 $108,460 391 $114,394 395 $108,460 391 $114,394 �1�► of Bo��m�� Itl Il Atl\I.1\iYl1 iY f\IIIll�ltt\ BUILDING PERMIT REPORT AUGUST 2008IFY 2009 FISCAL YEAR 2009 Aug-2008 Au -2007 YTD as of August-2008 YTD as of August-2007 THIS MONTH-FY2008 THIS MONTH-FY2007 YEAR TO DATE-FY2008 YEAR TO DATE-FY2007 NEW CONSTRUCTION NO VALUATION NO VALUATION NO VALUATION NO VALUATION SINGLE FAM.:LY 16 $3 155 632 26 $5 018,967 23 $4,983,441 51 $9 992.725 DUPLEX 3.6 $1.030.333 36 S7,555.924 3.6 $1.030.333 1938 $6,906.360 1 1 Bldg 4 Units 1 3 Bldg 34 Units `MULTI-FAMILY 4 $E51,649 $771 673 4 $651,649 $2 462.761 VISC(GARAGE.SHED.FENCE ETC( 2 $40.250 SSEL12LY 2 $4,959 496 2 $4.959.496 BUSINESS 1 $2,361,974 2 $3,688,692 2 $2,808,501 5 $6 699.307 EDUCATIONAL FACTORY 1 $342,022 HAZARDOUS INSTITUTIONAL 1 $5,555,180 MERCHANTILE 1 $190,000 1 $1,060.762 1 $190 000 MOTEL HOTEL STORAGE TOTAL 21127 $7,199,588 3M41 $16.184,752 33139 $16,130,116 821132 $31,552,671 ADDITI ON/RE MODEL NO VALUATION NO VALUATION NO VALUATION NO VALUATION RESIDENTIAL 119 $1.232,187 23 $981398 136 $2.152,143 42 $1,362,357 COMMERCIAL 15 $2.347,586 19 $2,188.819 36 $15,723,097 30 $6.022.607 TOTAL 134 $3,579,773 42 $3,170,217 172 $17,875,240 72 $7,384,964 CONSTRUCTION VALUE REVENUE NO AMOUNT NO AMOUNT NO AMOUNT NO AMOUNT BUILDING 114 $34,330 81 $44,855 193 $89.367 164 $89,027 PLAN CHECK 33 $23.924 98 $36,566 141 $54371 204 $84,902 ELECTRICAL 70 $5,035 86 $9,665 138 $12.280 151 $15,455 FLUPABING;MECHAN[CAL 96 $15.390 170 $16.381 198 $27,463 295 $29.830 FIRE ALARM:SUFPRESSION SYSTEMS 3 $296 7 $1,308 14 $1,368 14 $2,792 MOVING 2 $40 DEMOLITION 3 $166 2 $40 7 $236 7 $140 PENALTIES 19 $1.770 40 $4.048 A^,ISC REVENUE $519 $826 $718 $1,890 TOTAL 338 $81,429 444 $109.640 733 $189,891 835 $224,036 Ckof Bozema BUILDING PERMIT REPORT SEPTEMBER 20081FY 2009 FISCAL YEAR 2009 Sep-2008 Se -2007 YTD as of Sept-2008 YTD as of Sept-2007 THIS MONTH-FY2009 THIS MONTH-FY2008 YEAR TO DATE-FY2009 YEAR TO DATE-FY2008 NEW CONSTRUCTION NO VALUATION NO VALUATION NO VALUATION NO VALUATION SINGLE FAMILY E S1 565120 32 S9,.555 052 29 $6.548.561 83 $15.547 777 DUPLEX 24 $827,242 1,2 $258031 5,10 $1.857,575 2040 $71C4.391 4 Btdg 16 Un:L 1 Bldg 9 Un•L 5 Bldg 20 UnIL 4 Bldg 43 Umis MULTI-FAMILY $1 617 048 $1.088.3E5 S2268 C97 $3.551.130 MISC(GARAGE SHED FENCE ETC) 2 S26,400 2 $40.250 2 $26,400 ASSEMBLY 1 S692 900 1 SC92.900 2 S4.959.496 BUSINESS 1 $1.814998 3 $4b23,499 5 $6.C99307 EDUCATIONAL FACTORY 1 SW 022 HAZARDOUS INSTITUTIONAL 1 S5.555.160 MERCHANTILE 2 S9 734 276 1 $1.060.76, 3 $9 924.276 MOTELIHOTEL STORAGE 1 $21508 1 $10955800 1 $21508 1 S10.955.900 TOTAL 15M $6.538,816 39148 $27,617,928 48169 $22,668,932 1211180 S59,170,599 ADDITIONIREMODEL NO VALUATION NO VALUATION NO VALUATION NO VALUATION RESIDENTIAL 120 S1,116.844 9 1 $276.699 256 53.268966 51 $1.639256 COMMERCIAL 29 $13.263847 14 $2188819 C5 $28.976.944 44 S8.211426 TOTAL 149 $14.370,690 23 $2,465.718 321 $32,245,930 95 $9,850,682 CONSTRUCTION VALUE REVENUE NO AMOUNT NO AMOUNT NO AMOUNT NO AMOUNT BUILDING 105 $52 555 G7 $4 781 358 S141922 245 S135.808 PLAN CHECK 64 $22059 63 $55,481 205 S76430 267 $140.383 ELECTRICAL 43 $7 699 78 S9.827 181 S19,979 229 $25.282 PLUMBING!"ECHANICAL 61 $11.090 95 $8.252 258 S38.553 390 $38.082 FIRE ALARM'SUPPRESSION SYSTEMS 5 $1.336 4 S513 19 $2 704 18 S3.305 MOVING 1 S73 3 S113 DEMOL17ION 1 $33 1 S20 8 S21F9 8 $160 FENCE 1 $42 1 S42 PENALTIES 19 $1.50-4 59 $5 551 MICC REVENUE $276 $971 $994 S2,861 TOTAL 360 $96,665 308 $121,845 1093 $286,557 1157 $345.881 IFE_At'El 1, — — : - :1- ll'il -h .,TA T'ji FF -RAV 'I- YFA'. 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F N1 IEF -;NNEL ;El"D'E0 FLTY 10 OAI.AF:E-- 5 WAGE' '.A,'AT N ------------- ------------ ------------ ------------ ------------ ------------ 1 3 L 1 2 FI h 1'-5-32211-423.12-33 'A F A 1,T H FNTM I15-3220-423.12-34 LIFE IN.*1RM'L +) 115-3220-42--.12-35 UNEMPLO.MENT TAX 1 4P, 4 75 115-3220-423.12-36 F.I.C.A. i93 580 115-3220-423.12-37 WORKERS` COMP 68 0 ------------- ------------ ------------ ------------ ------------ ------------ * BENEFITS 1f,559 1 t,,5c() 4,162 12,397 '5 ------------- ------------ ------------ ------------ ------------ ------------ EEp.-rN,EL -2,412 17,999 54,413 '5 ------------- ------------ ------------ ------------ ------------ ------------ *** BUILDING INSPECTION FUNI' 7-',412 0 2,41-- 17,999 54,413 75 ------------- ------------ ------------ ------------ ------------ ------------ **** LIFE .-AFETY IN.7PE,-T-F "21 .12 0 -2,412 17, +Z "..,I. , 7� 7------ ------------ ------------ ------------ ------------ ------------ .**** ACTT".P'NC; TN,'-rF.-'T 1, 1 if. , 11 "F, 'I., 1"- /1