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HomeMy WebLinkAboutSS3 - Planning Department Staffing LevelsCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Study Session Agenda Item No. ss3 March 25. 2003 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Planning Department Patricia L. Temple, Planning Director, 949 - 644 -3228, ptemple @ city. newport- beach.ca. us SUBJECT: Planning Department Staffing Levels ISSUE: Should the City Council amend the Fiscal Year 2002 -03 budget to authorize additional positions in the Planning Department? RECOMMENDATION: Direct staff to place a budget amendment on the City Council Agenda to add two positions in the Planning Department. DISCUSSION: Background: Based on previous discussions with the City Council who were concerned about adequate Planning Department staffing levels, two additional positions were requested as part of the proposed Planning Department budget for FY 2002 -03. The two positions requested were an Associate Planner in Current Planning and an Assistant Planner in Advance Planning. The positions requested were considered of critical need due to the extremely high workload of discretionary cases going to the Planning Commission, as well as the fact that several legally required activities (such as monitoring of Development Agreements and affordable housing contracts) were not being done due to insufficient staff. Additionally, the City is about to adopt a new Housing Element, which will commit the City to a large number of additional programs, which we are required to show progress on each year. Planning Department Staffing Levels March 25, 2003 Page 2 As part of the discussion on these new positions, there was a discussion of the Planning Department fee schedule. It was indicated that the fees were insufficient to recover the cost of providing our services, principally due to the fact that we had a fixed fee system, where most communities charge an hourly rate for many services. Staff was directed to prepare a revised fee structure, including the establishment of an hourly rate for many types of applications, and a fixed fee schedule for smaller applications based upon the new hourly rate. After the adoption of the revised fee schedule, Council would then reconsider the staffing request of the Department, in light of improved revenues. The revised fee program was adopted by the City Council in late 2002, and it went into effect February 1, 2003. Analysis: Planning Department revenue was projected to be $210,000 in the FY 2002 -03 budget. With the new fees in place, we have projected revenue increases for our fixed fee applications and Zoning Plan Check. We have not estimated revenue increases from the hourly rate applications because we do not have enough data on what those changes will be. On just this partial basis, our new revenue over what would have been gathered under the old fees is $218,000 on an annual basis. The yearly cost of the two proposed positions (salary plus benefits) are as follows: Associate Planner: $77,200 Assistant Planner: $63,500 TOTAL: $140,700 Additionally, there may be a one -time expenditure of approximately $5,000 for equipment and furniture needed by the new staff. However, the total cost of the positions is easily covered by increased revenue, with an additional benefit to the General Fund of $72,300 ($218,000 - $145,700). Cost Recovery: Although revenue generated by the new fees is considerably higher than under the old system, and will cover the costs of additional staff, our overall revenue is still less than the total costs of providing Current Planning Services. On an overall basis, the cost of providing these services (Plan Check, and discretionary applications by staff and Planning Commission) is about 63% of the Planning Division budget (2710). This equates to approximately $1 Million. We estimate the fee increases will improve our cost recovery to about 60% of this amount, up from the 20% recovery rate we had under the old fee structure. It is staffs opinion that this rate of cost recovery is an appropriate reflection of the time we are providing services directly to applicants for permits. Planning Department Staffing Levels March 25, 2003 Page 3 Funding Availability: Improved Planning Department revenues will offset the increased staffing costs. Alternatives: Staff would like to see the Council establish both positions in the budget, but not fund the Assistant Planner position at the present time. Reconsideration of funding could occur when the City's overall budgetary picture is better known. Prepared by: atricia L. Temple, anning Director Submitted by: 2 Ij Sharon Z. Wood, A,6distant City Manager CITY OF NEWPORT BEACH City Council Minutes Study Session May 28, 2002 - 4:00 p.m. ROLL CALL Present: Heffernan, Bromberg, Glover, Mayor Ridgeway; O'Neil (arrived at 5:10 p.m.) Absent: Adams, Proctor (excused) CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. Council Member Heffernan stated that he planned to ask for a continuance of Item No. 23, Main Street Ficus Tree Removals, at the evening meeting based upon the short notice that was given to the public and their inability to contact experts in time. He also requested that a copy of Council Policy G -1, Retention or Removal of City Trees, be provided to him prior to the meeting. 2. 2002 -03 BUDGET REVIEW. Using a PowerPoint presentation, City Manager Bludau displayed a list of fourteen funds included in the 2002 -03 preliminary budget. He stated that there are an additional eight budgeted funds and several others that are non - budgeted. The general fund represents over 65% of the total dollars and also provides the greatest flexibility of any of the funds. City Manager Bludau stated that one of the funds not listed is the annexation fund, which is a fund set up from the payments received from the Irvine Ranch Water District (IRWD) to offset the Newport Coast assessments. Council Member Glover asked if the City's budget had been analyzed in conjunction with what is going on with the State budget. City Manager Bludau stated that it is too soon in the process since the State Legislature is just beginning to look at their alternatives. Administrative Services Director Danner added that the Vehicle License Fee (VLF), which totals $2.7 million, was not included in the revenue estimates, however. City Manager Bludau displayed the City's organizational chart. He then displayed a chart showing the total City revenue estimate of $149,722,799 for the 2002 -03 fiscal year and the amounts expected from the governmental, enterprise and internal services funds. Displaying a pie chart, City Manager Bludau noted that property taxes represent the largest revenue source to the City. Per Mayor Ridgeway's question, Administrative Services Director Danner clarified that the charts cover all revenue sources, and would be used for both the Capital Improvement Program (CIP) as well as the City's operating Volume 55 - Page 163 INDEX 2002 -03 Budget Review (40) City of Newport Beach $L•ad7-Se mutes May 28, 2002 INDEX taw �ization and contingency reserve funds. He noted that Council Policy F -2, Reserves/Designations of Fund Balances, requires that 10% of the general fund be kept in the contingency reserve fund and 2% in the stabilization reserve fund. Council Member Glover suggested that the City write a letter to the State and request information on how the $40 million for ERAF was spent. Mayor Ridgeway stated that it was supposed to have been spent on education. City Manager Bludau displayed a slide showing expense items not included in the budget ceilings. He stated that these were expenditures that staff knew the City would have, but the amount was unknown. Administrative Services Director Danner added that estimates were made for these items and the appropriate funds have been set aside. He noted that the slide also showed expense items that have been included in the budget and the ceilings for each. City Manager Bludau stated that although he has characterized the budget as a status quo budget, there are some additional expenditures for the annexation of Newport Coast and for the items not included in the budget, which are primarily personnel type items. City Manager Bludau displayed a list of the supplemental budget requests by department, which totaled $1,053,716. He noted that $340,396 of the requests were approved, primarily for the Fire Department. Referring to the previous slide, Council Member Heffernan asked if the $3.9 million budgeted for annexation expenses included landscaping and a traffic signal for Sage Hill. Public Works Director Badum stated that the traffic signal project is currently unfunded. General Services Director Niederhaus stated that landscaping has also not been budgeted. Council Member Heffernan stated that Newport Coast residents want to know what landscaping services the City will be taking over. Assistant City Manager Mff stated that the preannexation agreement is very specific about what will be paid for. City Manager Bludau admitted that the $3.9 million estimate is probably low. Per Mayor Pro Tem Bromberg's inquiry, City Manager Bludau stated that the issue of staffing in the Planning Department would be discussed later in the review. Mayor Ridgeway suggested that the discussion also include the fees that were increased the previous year to accommodate additional staffing in the Planning Department. City Manager Bludau displayed a list of the eight new full -time positions requested for the 2002 -03 fiscal year budget, and noted that only one has been approved. He explained that this was for a fire prevention specialist in the Fire Department and had already been postponed, but was needed due to the annexation of Newport Coast. He noted the two requested positions for the Planning Department and agreed that the department is understaffed. He stated that the idea of using fees to fund the additional Volume 55 - Page 166 CITY OF NEWPORT BEACH City Council Minutes Study Session June 11, 2002 - 4:00 p.m. ROLL CALL Present: Heffernan, Bromberg, Adams, Proctor, Mayor Ridgeway; Glover (arrived at 4:30 p.m.) Absent: O'Neil (excused) CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. Council Member Proctor confirmed that the street closures recommended in Item No. 5, Fourth of July Street Closure Resolution, were the same streets that were closed the prior year. In reference to Item No. 3, Swimming Regulations — Diving or Jumping from Public Property, Mayor Pro Tem Bromberg asked if a person would be allowed to jump from a seawall under the new ordinance. City Attorney Burnham stated that persons would be prohibited from jumping from any seawall. Mayor Ridgeway recalled an incident where the City was held liable for injuries caused by a person jumping off of a seawall. 2. 2002 -03 BUDGET REVIEW INCLUDING REVIEW OF STAFF PRIORITIES FOR FY 2002 -2003 (contd. from 5/28/02). Staff Priorities Using a PowerPoint presentation, City Manager Bludau stated that staffs first priority for the 2002.2003 fiscal year is to obtain all necessary approvals to extend the John Wayne Airport Settlement Agreement consistent with Scenario 1 as described in Environmental Impact Report (EIR) 582, and maintain the integrity of the Settlement Agreement once approved. He stated that the second priority is to complete the general plan outreach and begin the general plan update process. He stated that the goal is to complete the public outreach, determine the scope of the update and have all of the consultants working on the revisions by July of 2003. City Manager Bludau stated that Assistant City Manager Wood would be the staff member responsible for the priority. He listed the action steps that would need to take place to meet the goal. City Manager Bludau stated that the third priority is to prepare a draft of the Local Coastal Plan (LCP) and submit it to the California Coastal Commission staff by June 30, 2003. He stated that Planning Director Volume 55 - Page 191 INDEX 2002 -2003 Budget Review (35/40) City of Newport Beach June 11, 2002 fiscal year. Fire Chief Riley stated that 83.16 1h of the department's total budget is used for salaries and benefits. He noted that a significant portion of the budget is used for overtime due to the continuous staffing that must occur. Fire Chief Riley additionally pointed out the money budgeted for equipment maintenance and replacement, and noted that nearly $1 million is spent to keep the department's fleet operating. The budget also includes the rental fee for the temporary trailer and engine at the Santa Ana Heights station, and money for the fire communications system. He explained that this is a Joint Powers Agreement (JPA) for dispatch services. Council Member Glover asked how much the cost of the JPA increases per year. Fire Chief Riley stated that it's a reasonable increase at about 4 -%z°% to 5% per year. The program costs the City approximately $1,000 per day, seven cities participate and it is run out of Anaheim. Fire Chief Riley noted another JPA that the City participates in, which is the central training in Huntington Beach. He stated that participation in this JPA will be evaluated during the upcoming fiscal year. Lastly, Fire Chief Riley pointed out that over $120,000 is spent on junior lifeguard uniforms. Council Member Heffernan complimented the allocation plans provided in the resource allocation plan for each of the departments. He stated that they should be a part of the budget review because they provide a helpful four -year trend. Department Assistant City Manager Wood stated that most of the changes to the Planning Department budget for the 2002 -03 fiscal year are structural, meaning that how costs are shown and where they are presented has been changed. She noted that the amount budgeted for overtime has decreased due to an increase in staffing. She also pointed out the money budgeted for various projects. Council Member Glover asked for an update on the status of the project to develop new sign regulations. Assistant City Manager Wood stated that the project has not been started, due to the focus on the general plan update. Additionally, per Council Member Adams' question, Assistant City Manager Wood stated that $40,000 is being carried over for the project from the current fiscal year. Council Member Glover asked if $40,000 would be sufficient. Assistant City Manager Wood stated that it should be, and added that the work already done for the Balboa Peninsula and Mariners Mile might be useful when looking at the other parts of the City. INDEX Assistant City Manager Wood stated that the Planning Department has added a new division, which is the community development division. She stated that this is a part of the structural changes mentioned earlier. Volume 55 - Page 196 City of Newport Beach Study Session Minutes June 11, 2002 INDEX Mayor Ridgeway stated that he is aware of the Planning and Building Departments attempting to charge for the actual expenses incurred by staff for specific projects, and asked what percentage of project costs are covered by applicant fees. Assistant City Manager Wood stated that approximately 50% of costs are recovered in the Planning Department, and added that all of the fees should be reviewed. She additionally noted that two new positions were requested that were not approved by the City Manager, which included an Associate Planner to work on cases going to the Planning Commission and an Assistant Planner to work on code amendments and housing issues. She stated that if cost recovery were improved for development review, these positions could be funded through that revenue. Mayor Ridgeway stated that cost recovery should be a priority. City Manager Bludau stated that a report would be presented within the next couple of months. Council Member Glover recalled that a fee study had been done several years prior. Administrative Services Director Danner confirmed that the study was done about six years ago and that the fees have been adjusted annually based on cost of living and employee costs. Assistant City Manager Wood stated that fee studies, in general, dont take into account how much time is spent on various use permits, variances and zone changes. Council Member Glover stated that it was a thorough study. Assistant City Manager Wood stated that the information from staff could have been more detailed, but that they are now tracking the information and will have a good database when looking at adjusting the fees. Building Department Building Director Elbettar began by announcing that the Building Department will be holding a user group meeting on June 17, 2002, to present the new procedures for processing plan checks. He stated that it will also provide the opportunity to discuss other issues and respond to questions. Mayor Ridgeway stated that completing plan checks within four weeks will be a challenge, but he complimented the effort. City Manager Bludau clarified that the four -week goal would be from the time the plans are initially received to the time the City sends back its comments. Building Director Elbettar stated that the budget for the Building Department for the 2002 -03 fiscal year is basically status quo with no major changes, although there are some minor reallocation of funds and an increase in the training budget. Building Director Elbettar stated that the largest item in the operating budget is the $198,000 budgeted for the hiring of outside consultants to assist with plan checks. Per Mayor Ridgeway's question, Building Director Elbettar stated that the plans that are checked by outside consultants are still reviewed by staff for completeness. Mayor Ridgeway stated that he understood the need for private plan checks when the workload exceeds what can be done by staff, but he discouraged the use of outside consultants whenever possible. Building Director Elbettar stated that the use of outside consultants will Volume 55 - Page 197