HomeMy WebLinkAbout2008/09/09 Item 13
CITY COUNCIL
AGENDA STATEMENT
. ~(r"
::S, ~ CITY OF
~CHULA VISTA
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SEPTEMBER 9, 2008, Item 0
ITEM TITLE:
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ACCEPTING A REPORT ON PROJECTED
REVENUE SHORIF ALLS IN THE DEVELOPJ\;IENT
SERVICES FUND AND MEASURES BEING
IIvIPLEl\IIENTED TO REDUCE EXPENDITURES (3/5THS
VOTE REQUIRED)
SUBMITTED BY:
REVIEWED BY:
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ADDING TWO CODE ENFORCEMENT
OFFICER POSITIONS TO THE PLANNING AND
BUILDING DEPARTMENT AL'iD APPROPRIATING
$133,000 FROM THE AVAILABLE BALANCE OF THE
GENERAL FUND BASED UPON HIGHER THA.l'\J
ANTICIPATED REVENUES FROM THE RESIDENTIAL
ABAL'iDONED PROPERTY PROGRAM (4/5THS VOTE
REQUIRED) .
CITY MANAGER (; 1/ W
CITY NlA.NAGER /YyU c;::r-
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4/5THS VOTE: YES I X I NO I I
SUMJVL<ill.Y
With the approval of the Fiscal Year 2008/2009 budget, the City Council authorized the
creation of a stand-alone Development Services Fund comprised of staff from the
Departments of Planning & Building, Public Works and Engineering responsible for the
planning, permitting, plan review, and inspection of development applications. As the
year-end closing process has progressed it has become apparent that despite deep cuts
made to the Development Services Fund as part of the Fiscal Year 200812009 budget,
development related workload and revenues are insufficient to support current staffing
and budget levels. As a result, in order to avoid further impacting General Fund reserves,
additional budget reductions are required. To reduce the number of employee layoffs,
staff is also recommending adding two Code Enforcement Officer positions to the
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SEPTEMBER 9, 2008. Item 13
-
Page 2 of 6
General Fund budget of the Planning and Building Department and filling the positions
internally. The cost of these positions would be fully offset by higher than anticipated
revenues from the residential abandoned property program.
ENVIRON\VlENTAL REVIEW
The Environmental Review Coordinator has reviewed the proposed activity, accepting a
report on projected revenue shortfalls in the Development Services Fund and adding two
code enforcement officer positions to the General Fund budget of the Planning and
Building Department, for compliance with the California Environmental Quality Act
(CEQA) and has determined that the activity is not a "Project" as detined under Section
15378 of the State CEQA Guidelines because it only involves personnel related actions
and allocation of funding.
RECOMMENDA nON
That the City Council adopt the resolutions.
BOARDS/COMMISSION RECOMMENDA nON
Not Applicable.
DISCUSSION
With the approval of the Fiscal Year 2008/2009 budget, the City Council authorized the
creation of a stand-alone Development Services Fund comprised of stall from the
Departments of Planning & Building, Public Works and Engineering responsible for the
planning, permitting, plan review, and inspection df development applications. The
primary purposes for creating a stand-alone Development Services Fund were to:
1. Better define and make more transparent the nexus between development
processing costs and fees,
2. Ensure that revenues generated tb..rough development processing fees are not
allocated in support of General Fund services such as Police, Fire, Public Works,
and Recreation, and
~. To insulate General Fund services from fluctuations in development activity.
As evidenced by the following data, the level of development activity in the City has
dropped precipitously during the past 4-5 years.
. Residential permits issued annually have dropped 88% since Fiscal Year
2003/2004 (from 3,694 to 432)
. Total permits issued annually have dropped 59% since Fiscal Year 2003/2004
(from 7,047 to 2,902)
. Total annual inspections have dropped 63% since Fiscal Year 2003/2004
(from 82,092 to 30,725)
. Annual billable hours to development projects by the Planning Division have
dropped 40% since Fiscal Year 2002/2003 (from 19,634 to 11,785)
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'}.:::.,
SEPTElVffiER 9, 2008, Item---'.=:..-
Page 3 of 6
In response to these trends, staffing for the development services portion of the Planning
and Building Department was reduced by 35% during the same time period (from 72 FTE
in Fiscal Year 2003/2004 to 47 FTE currently).
As the year-end closing process has progressed it has become apparent that despite deep
cuts already made to the Development Services Fund as part of the Fiscal Year
2008/2009 budget, the revenues being generated through development processing
activities continue to be insufficient to offset the costs of delivering these services.
Revenue projections and staffing levels recommended in the Fiscal Year 2008/2009
budget for the Development Services Fund were predicated upon a continuation of
development activity at levels equal to the first 6 months of Fiscal Year 2007/2008, the
most current data available at the time the budget was being developed. With the close of
Fiscal Year 2007/2008, it is now clear that what actually transpired in the second half of
Fiscal Year 2007/2008 was a significant worsening of the dov,nward trend in
development activity (see graphics below).
Development Services Planning Total
Project Accounting Hours Charged to Deposit Accounts
1,600
1,400
1,200
'" 1 ,000
~
" 800
0
J: 600
400
200
Jan-Jun~Avg...
=880 {-19%l
-3 ;; ~ :u ~ :u ~ ~ .c '" ~ ID
" Ii; ~ ro
0 -g -9 .Q ro Q. 5
~ '" .g " 0 2 ro <( ::; ~
0 Q; 1:5 v ~ " .Q ::;
<( '3. 0 > u ~ v
0 " u.
" Z 0
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Citywide Plan Check Fees Received
(Permit Applications)
$300,000
$250,000
July-DecAvg
.....=$156K.
Jan:June Avg
. _. ...::$ 82K..(-47%)
$50,000
Ul $200,000
QI
;:;
J:
QI
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QI
c:::
$150,000
$100,000
$-
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13-3
I"';
SEPTE,'vIBER 9, 2008, ltem~
Page 4 of6
Tctallnspections
4,:00
il 4,000
~ 3,500
a.
'" 3,000
i5
u 2,:00
'"
c 2,000
o
tl 1,;:00
8-
'" 1,000
c :00
Jan-June Avg
=:2,051 (,33~!o)
~ ~ ill ~ B B >. >. -c >. 1!
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Assuming development activity does not deteriorate further, revenues in the
Development Services Fund are projected at $9.5 million, a $1.4 million or 13%
reduction relative to Fiscal Year 2008/2009 budgeted revenues. Netting out budgetary
savings estimated at $328,000 and reduced overhead reimbursements to the General
Fund, estimated at $142,000 as a result of reduced staffing levels, results in a projected
deficit in the Development Services Fund of $0.8 million dollars for Fiscal Year
2008/2009 (see table below).
I Development Services FY 2008-09 FY 2008-09
Fund Bud!!et Projected
Revenues I $10,877,684 $9,494,731
Expenditures I $10,737,901 . $10,267,455
I Projected Surplus/(Deficit) I $139,783 ($772,724)
Projected revenues in the above table reflect:
. Assumption that Plan Check, Building Inspection, and Deposit Based
revenues will continue at Fiscal Year 2007/2008 levels
. Additional staff time reimbursement revenue from the Redevelopment
Agency as a result of using Planning staff for the development of a Southwest
Chula Vista Specific Plan ($200,000)
. New revenue from an anticipated SDG&E grant ($56,000)
. New revenue from a SANDAG habitat grant ($38,000)
Projected expenditures in the above table reflect anticipated savings from:
.
Vacant Planning Director position through November 30, 2008 ($73,000)
Savings from the voluntary furlough program ($34,000)
Upcoming Associate Planner vacancy ($83,000)
.
.
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SEPTEMBER 9,2008, Item 13
Page 5 of 6
. 4 positions being filled at levels lower than what was approved in the budget
($73,000)
. Miscellaneous reductions in services and supplies ($65,000)
Despite these efforts to enhance revenues and reduce costs, the Development Services
Fund is still projected to end the year with a $0.8 million deficit. As a result, the
follovving reduction in force is also being implemented (numbers in parentheses represent
Fiscal Year 2008/2009 savings):
. Eliminate 1.0 Assistant Director of Planning ($130,000)
. Eliminate 1.0 Development Services Counter Manager ($79,000)
. Eliminate 1.0 Plans Examiner ($104,000)
. Eliminate 1.0 Landscape Planner II ($82,000)
. Eliminate 3.5 Development Services Technician II's ($204,000)
. Eliminate 2.0 Building Inspector Irs ($161,000)
In an effort to reduce the number of layoffs, staff is recommending that t\NO Code
Enforcement Officer positions be added to the General Fund budget of the Planning and
Building Department and that the positions be filled internally. It is anticipated that the
cost of these two positions would be fully offset by higher than anticipated revenues from
the residential abandoned property program.
The reduction in the number of Development Services Technicians will result in a new
service deli very model and reduced hours of operapon for the development services
counter. The public counIer will only be open for Planning and Building transactions
from 11 :00 am to 4:00 pm Monday through Friday. These reduced hours \Nill allow some
of the Building field inspectors to complete their morning inspections and then report to
the public counter to provide assistance to the permit customers. This revised schedule
will also allow the remaining Development Services Technicians the time necessary to
complete essential behind-the-counter permit processi.Ilg steps.
It is important to note that current revenue projections for the Development Services
Fund assume a continuation of development activity at Fiscal Year 2007/2008 levels. If
development activity deteriorates further during Fiscal Year 2008/2009, then further cuts
to the Development Services Fund vvould be required now in order to avoid impacts to
General Fund reserves in the future. On the orher hand, if development activity picks up
relative to the previous Fiscal Year, then fewer cuts would be required. Given the
uncertainty surrounding future development activity, the reduction in force currently
bei.ng implemented in the Development Services Fund represents a balanced approach to
remaining fiscally conservative while simultaneously maki.ng every effort to avoid
cutting too deeply and Ihereby jeopardizing the City's ability to respond to future
development related workload and causing unnecessary layoffs.
13-5
SEPTEMBER 9, 2008, Item i 3
Page 6 of 6
DECISION lVLA.KER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is
not site specific and consequently the 500 foot rule found in California Code of
Regulations section l8704.2(a)(l) is not applicable La this decision.
FISCAL IMPACT
Based upon actual development activity and revenues realized in Fiscal Year 2007/2008
coming in lower that projected and budgetary savings anticipated in Fiscal Year
2008/2009, staff is projecting a net budget deficit of $0.8 million in the Development
Services Fund. This report summarizes the cuts that are being implemented in the
Development Services Fund to address this shortfall and thereby avoid impacting General
Fund reserves. The cost of adding two Code Enforcement Officer positions in the
General Fund is estimated at $133,000 for the remainder of Fiscal Year 2008/2009 (C
Step) and $196,000 annually (E Step). It is anticipated that the costs of these positions
will be fully ot1set by higher than anticipated revenues from the City's residential
abandoned property program thereby resulting in no net impact to General Fund.
ATTACHMENTS:
A. Summary of Development Services Fund Net Cost Reductions
Prepared by: Edward Van EenoQ, Dir.ector of Budget and Anaiy~is. Office of Budget and Analysis
13-6
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~~-,.!";~~~~ti'lli:i~illLat"~."i;;t;jd!tr~'ff!jJ6i'G'f1it0~~",.,,f', ,~~~,"l1<!B~'!-e~~,,-ffiF~
1 Salarl savings from vacant Director position thru November 30,2008 $ (73,000)
2 Salary savings from voluntary furlough $ (34,000)
3 Reduce Senior Plans Examiner to Plans Examiner $ (11,000)
4 Reduce 2 Principal Planner positions to Senior Planners $ (43,000)
5 Reduce Senior Planner position to Associate Planner $ (19,000)
Building Division Service and Supply savings (Microfilming, Books and
6 Publications, Training and Travel)
7 Associate Planner (vacant)
S u btota I
ATTACHMENT A
Development Services Fund Net Cost Reductions
FY 2009 Development Services Fund Budget
FY 2009 Development Services Fund Projected Revenues
Projected Gap
-1.0
$ 10,737,901
$ 9,200,734
$ (1,537,167)
$
$
$
(65,000)
(83,000)
(328,000)
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" '. ~if5,fJ,,",-.I,cdlf,,? _,,~-i:r,;;;,?:l~1~~~'f;Iig,_, 7i%, i5'J;,~, /M~I':'"'~'ffl'-"",,'4' .~", , _, ',' '!'ii.'"j!f'~tf,~, ""'.:::..,'.Af,*"..=, ,
8 RDA funding of Planning staff for development of Southwest Specific Plan $ (200,000)
9 SDG&E grant funding of 0.5 Associate Planner $ (56,000)
10 SANDAG habitat grant $ (38,000)
Subtotal $ (294,000)
". -'?'3n&""":"'Tllj!irresm;m.-,'r_~~:l'~,~''1iii''''''!l:i{:!ilii~~~ "'iJM~ ~-l!E:f',lln'!I'~1
,;~ .,' "'tJJ..!15;2;lHimHYilihidii&11f;~rJ~::p . .: gtSE!1!s7~JiI*j,dUL'i" j"^? %riLi:~VhjjD!i;J1;3fu;7ffiit9;!\ :::4rI#JLG5iriJEJ'iv' ';5fu ,;, 1H..3, : i1~~~ ,';5oo;;.t i~.';"
Reclassify two Building Inspector II positions to Code Enforcement Officers
11 (transfer to General Fund and fund with increased RAP revi;mues)
12 Development Services Technician II
13 Development Services Counter Manager
14 Plans Examiner
15 Assistant Director of Planning
16 Landscape Planner II
Subtotal
-2.0 $
-3.5 $
-1.0 $
-1.0 $
-1.0 $
-1.0 $
-9,5 $
17 Reduction in citywide overhead
Grand Total Budget Cuts and New Revenues
Summary of Personnel Reductions
Positions eliminated from Development Services Fund
Positions added to General Fund
Net Reduction
-10,5
2.0
-8.5
13-7
(161,000)
(204,000)
(79,000)
(104,000)
(130,000)
(82,000)
(760,000)
$
(142,000)
$ (1,524,000)
RESOLUTION NO. 2008-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ACCEPTING A REPORT ON PROJECTED
REVENUE SHORTF ALLS IN THE DEVELOPMENT
SERVICES FUND A..l'lD MEASURES BEING IMPLEIvIENTED
TO REDUCE EXPENDITURES
\VHEREAS, the level of development activity in the City has dropped precipitously
during the past 4-5 years; and
WHEREAS, as a result development related workload and revenues are insufficient to
support current development services staffing and budget levels; and
WHEREAS, the City Council has previously established a policy that development must
pay for itself; and
\VHEREAS, a reduction in force is necessary in order to mitigate a projected budget
deficit in the Development Services Fund of$0.8 million; and
WHEREAS, City staff has prepared a report outlining a plan for correcting the budgetary
imbalance and has submitted said report to the City Council for consideration.
NOW THEREFORE BE IT RESOLVED that the City Council of the City ofChula Vista
does hereby accept the report pertaining to projected revenue shortfalls and measures being
implemented to reduce expenditures in the Development Services Fund.
Submitted by
Approved as to form by
David R. Garcia
City Manager
\A~
<:;. Bart Mie~e~
/C\7rnterim Citv Attornev
~ .
13-8
RESOLUTION NO. 2008-
RESOLUTION OF THE CITY COliN-CIL OF THE CITY OF
CHULA VISTA ADDING TWO CODE ENFORCEJ'vIENT
OFFICER POSITIONS TO THE PLANNING Al'ID BUILDING
DEPARTJ'vIENT At'iD APPROPRLUING $133,000 FROM THE
A VAILABLE BALANCE OF THE GENER..A.L FUND BASED.
UPON HIGHER THAN A1'iTICIPATED REVENUES FROM
THE RESIDENTIAL ABAJ."<1)ONED PROPERTY PROGRAlv[
WHEREAS, the level of development activity in the City has dropped precipitously
during the past 4-5 years; and
WHEREAS, as a result development related workload and revenues are insufficient to
support current developIT)ent services stat1ing and budget levels; and
Vv'HEREAS, the City Council has previously established a policy that development must
pay for itself; and
WHEREAS, a reduction in force is necessary in order to mitigate a projected budget
deficit in the Development Services Fund of $0.8 million; and
WHEREAS, revenues being generated through the City's abandoned property program
are projected to be sufficient to support two additional Code Enforcement Officer positions; and
WHEREAS, filling these positions internally will reduce by two the number of employee
layoffs resulting from the reduction in force in the Development Services Fund.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby amend the personnel sen/ices budget of the Planning and Building Department
by adding two Code Enforcement Officer positions and appropriating $133,000 based upon
higher that anticipated revenue from the residential abandoned property program.
Submitted by
Approved as to form by
David R. Garcia
City Manager
\~~S
I.
....-:::: Bart Mies
"C~terim City Attorney
13-9
Ao1cL"ho...,.,J 1n+"rtY\o...-.l,'on
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- -
Co,-"nciirnember Steve Castaneda
City Of Chula Vista
278 Fourth Avenue
Chula Vista, Ca 91910
619.691.504.1 - 619.4 7G. 53 79 Fax
I\~EN1~
~ i i ~ ~ 211 ~ V
CIlY OF
(HUlA VISTA
DATE:
Monday, September 08, 2008
FROM:
Mayor and City Councilmembers
COllncilmem bers Steve Casta~RlldY Ramirez~
City rvlanager
TO:
cc:
RE:
FY2oo8/200g Budget Shortfalls
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Tomorrow's City Council Agenda Item # 13, "consideration of a report on projected
revenue shortfalls in the Development Services Fund and measures being implemented
to address the budgetary impacts" is another unfortunate reminder that we have not yet
,
tackled the budget issues that continue to plague oUP city. We continue to cut City
services and focus on nonessential items in our current budget. This situation that calls
for layoffs of City Personnel must be reconsidered
Before we cut additional services to the public, we must examine again if granting
$218,580.00 in vehicle allowances to 38 City employees, rather than reimbursing for
actual miles driven on city business, is the best use of scarce budget dollars In an
effort to show leadership on this issue, we eliminated our own FY2008/2009 vehicle
allowances We call again for the elimination of all remaining FY2008/2009 vehicle
allowances.
Additionally, we must examine the $485,349.00 Mayor's Office FY2008/2009 budget
We propose again that the Mayor' Office budget be trimmed to two times that of a
$152,822.00 City Council Office FY2008/2009 budget.
The $225,528.00 Mayor and Council Department ,~dministrative FY2008/2009 budget
can be trimmed by an additional 20% without impact to the public.
These few proposals contribute $443,391.00 back to essential services for Chula Vista
residents.
To be true to our employees, Chula Vista taxpayers and Chula Vista businesses, we
must cut these expenditures before we consider cutting any services to the public.