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HomeMy WebLinkAbout1999-05-11 - AGENDA REPORTS - ADDITIONAL FUNDS ENGINEERING (2)CITY OF SANTA CLARITA AGENDA REPORT CONSENT CALENDAR City Manager Approval: Item to be presented by: T. Brad Therrien DATE: May 11, 1999 SUBJECT: ALLOCATION OF ADDITIONAL FUNDS TO THE CONTRACTUAL SERVICES ACCOUNT FOR THE ENGINEERING SERVICES DIVISION OF THE TRANSPORTATION AND ENGINEERING SERVICES DEPARTMENT, ACCOUNT NO. 4310-8001 DEPARTMENT: Transportation and Engineering Services RECOMMENDED ACTION City Council authorize that additional funds be allocated to the Contractual Services Account No. 4310-8001 in the amount of $80,000, and increase estimated revenues in Account No. 001-6139 by $80,000. BACKGROUND Each year a certain amount of funds are budgeted for contractual services to perform plan project review. Revenues to offset these expenditures are also budgeted. Several events have occurred this fiscal year to cause the need to expend additional funds for these services; however, significantly more revenues have been collected to offset these costs. Accounting procedures require the City Council's authorization to increase the budget limit. Offsetting revenues have been received to cover the cost of the additional demands. The initial budget allocation for contractual services was established at $77,000 based upon revenue projections estimated at the time of budget preparation. This amount covers costs to review reports and plans by City consultants, such as geotechnical studies. Each developer must pay fees to cover the cost of these evaluations with the funds being placed in various revenue accounts. The original projection for development revenues for these work items was only $580,550. (This amount does not include revenues for development fees collected in other categories.) As of April 28, 1999, $650,507 in plan check revenues has been received, and a seasonal surge in submittals is expected. This will increase revenues further before the end of the fiscal year. The extremely high demand for this service has necessitated contracting with several consultants to help fill the gap. The increased demand for plan checking services, combined with the present difficulty in hiring qualified personnel, creates a tenuous position for the nda Item:... ALLOCATION OF ADDITIONAL FUNDS TO THE CONTRACTUAL SERVICES ACCOUNT May 11, 1999 - Page 2 City. Review times had slipped from the established goal of two weeks to approximately eight. With the assistance of contract personnel, the present review period has been reduced to five or six weeks. State law mandates that reviews of development projects occur in a timely manner or projects will be deemed "approved" without City review. The same section of State law (Subdivision Map Act) states that "...the local agency or designee shall upon request of the sub -divider, and for the purpose of meeting these time limits, contract or employ a private entity or persons on a temporary basis to perform services necessary to permit the agency or designee to meet the time limits." While the City is not in this situation at present, the forecast of additional demands on staff is a major concern. Falling behind the State - imposed mandates would be an extremely undesirable situation that should be avoided. ALTERNATIVE ACTIONS Deny the increase in the Contractual Services Account No. 4310-8001, resulting in a potentially greater backlog of plan check services. 2. Other action as determined by the City Council. FISCAL IMPACT Offsetting revenues have been collected from developers for this service. ATTACHMENTS None. TBT:js council\pinchk$.doc