Value Based Fee Schedule Analysis

Transcription

1 City of Las Vegas Department of Building and Safety Value Based Fee Schedule Analysis Presented by: Darcy Adelbai-Hurd, Vicki Brown, Josh Turley, & Mary Ann Weidner

2 Background Goal: Cover costs for the Department of Building and Safety, while maintaining the mission of provid[ing] reasonable controls for the construction, use and occupancy of buildings to ensure public safety (City of Las Vegas).

3 Recommendations Based on CPI analysis -applying one time 25% increase to base permit fees and valuation schedules. or Updating to a current Building Valuation Schedule and possibly reducing overall base permit fees.

4 How did we get there?

5 Summary of the Problem Limitations have been placed on Department by statute, city ordinance and administrative code. Current methods for generating revenues are based on antiquated fee & valuation schedules. Current budgeting does not include a line item for the allowable reserves.

6 Policy Questions 1. Is the environment ripe for restructuring the valuation and/or fee schedules? 2. Will restructuring the fee and/or valuation schedules enable the Building and Safety Department to cover the cost necessary to maintain its mission?

7 Millions BUILDING & SAFETY Historical Permit & Valuation Volume 2,000 TOTAL VALUATION TOTAL PERMITS 25,000 1,800 1,771 1,663 1,600 1,520 1,518 20,000 v A L U A T I O N 1,400 1,200 1, ,149 1,244 1,211 1,129 1,049 1,028 Averages 1, % ,000 10,000 p E R M I T C O U N T 400 5,

8 BUILDING & SAFETY Listings of Positions Budgeted Positions Average Filled Positions on FY % from Prior Yr -58%

9 Line of Business: Key Result Measures: Administrative Inspections Permits Operational Support A B C D E F G H I Plans are reviewed for Residential Commercial pricing & Plans check Plans check Wait Time to completed by Inspections initial review initial review see Technicians Customer Inspections available online completed completed by technician within an transactions completed to the by B&S staff B&S staff will be 20 average of 2 will be within 24 customer within an within an minutes or Days or less completed in hours of within 1 hour average of average of less (All for all 10 minutes request of inspection 20 days. 20 days. Plans) projects or less Total costs of the plans checks, permits and inspections will be covered by our fees. Customers will wait 20 minutes or less Qtr % 99.10% 95.20% 99.30% 99.70% 74.90% 83.40% 79.20% 99.30% Qtr % 98.90% 96.70% % % 83.70% 86.20% 85.70% 99.20% Qtr % 99.30% 96.60% % % 88.35% 89.83% 88.90% 99.40% Qtr % 90.50% % % 82.70% 87.10% 85.60% 99.20% YTD % 98.31% 94.65% 99.83% 99.91% 82.25% 86.50% 84.75% 99.25% Annual Target 97.00% 97.00% 90.00% 80.00% 80.00% 90.00% 90.00% 90.00% 90.00% Red * 82.45% 82.45% 76.50% 68.00% 68.00% 76.50% 76.50% 76.50% 76.50% % from Target 5.88% 1.35% 5.17% 24.79% 24.89% -8.61% -3.89% -5.83% 10.28% Information provided by the City of Las Vegas Building and Safety Department. * Red indicates 15% or more under target percent.

10 CPI Analysis Western Urban Non-Seasonally Adjusted Annual Average (Base Period December 1977 = 100) %

11 Fee Analysis Local Other* Blended Application Overall 13% 36% 24% Residential 12% 37% 24% Commercial 13% 35% 24% * Highs and lows were removed from analysis City of Las Vegas

12 Valuation Analysis Local Other IBC 100% Overall 6% 121% 111% Residential 10% 96% 78% Commercial 1% 148% 144% City of Las Vegas

13 So What?

14 Break Even Analysis In millions Based on CPI Based on Valuation Over/Under Application Actual Revenue Actual Bldg Revenue Actual Non- Bldg Revenue Potential Bldg Rev Indicated Potential Revenue Actual Expenses (7.7) (7.7) (7.7) Allowable Reserves (3.8) (3.8) (3.8) Exp including Reserves (11.6) (11.6) (11.6) Under/Over Exp including Reserves (2.2) % Under/Over -25% 12% 0%

15 Recommendations Based on CPI analysis -applying one time 25% increase to base permit fees and valuation schedules. or Updating to a current Building Valuation Schedule and possibly reducing overall base permit fees.

16 Additional Recommendations Improve the tracking of inspection hours Investigating non-permitted work via a partnership with Business Licensing & the Fire Department Investigate a joint venture with Clark County to develop a Memorandum of Understanding (MOU). Include the 50% reserves as line item in budget

17 Questions?

18 References City of Las Vegas (CLV), Building and Safety web site retrieved April 2, 2010 from City of Las Vegas (CLV), Uniform Administrative Code, 2006 Ordinance 5884, section City of Nashville Tennessee web site retrieved April 1, Knight, Christopher, Director of the City of Las Vegas Department of Building and Safety with Yolanda Palomo, Management Analyst for the City of Las Vegas. Interview: Questions and Answers. City of Las Vegas, Department of Building and Safety, 761 Fourth Street, Las Vegas, NV , Mar, Las Vegas Metropolitan Code (LVMC) B which repeals the Uniform Administrative Code 1997 Edition Maximus Report for the City of Nashville Tennessee and Davidson County Tennessee. Analysis for Fees for Service Report retrieved on April 1, tfina pdf N.R.S Limitations on fees for building permits, barricade permits, encroachment permits and enterprise fund requirements.