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HomeMy WebLinkAbout06/13/2023 04. Community Development Department Budget Strategy Presentation Y�'1114'+ BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 4. For Meeting of: June 13, 2023 ITEM TITLE: Community Development Department Budget Strategy Presentation SUBMITTED BY: Joan Davenport, Community Development Director Joseph Calhoun, Planning Division Manager Glenn Denman, Code Administration Manager SUMMARY EXPLANATION: The Community Development Department has an annual budget of$2,809,900 which is approximately 1.8% of the General Fund. Revenues from user fees are anticipated to be $2,481,000 in 2023. In early 2023, the City Council adopted the recommendations from the FCS Group Fee Study which included fee increases to cover 100% of the actual cost to cover permit, license and land use applications. ITEM BUDGETED: NA STRATEGIC PRIORITY: APPROVED FOR SUBMITTAL BY THE CITY MANAGER RECOMMENDATION: Review and please ask questions, as appropriate. ATTACHMENTS: Description Upload Date Type ❑ Community DeN,elopment Budget Presentation 6/9/2023 Backup Material .. mayy, _ +i 41' , q., J • 4A . - VI,: t •: y4 .,r 4:115' ".." ' ivi.'. • ' ' ..' - - 10'. ;; ...., _..._ r ......„ . •tel..,r--- 10 r r r , i . COMMUNITY DEVELOPMENT I Budget Presentation June 1 3, 2023 DEPARTMENT ORGANIZATIONAL CHART - 26 FTE Code Administration Division ( 1 8) Planning Division (8) • Division Manager: Glenn Denman • Planning Manager: Joseph Calhoun • Supervising Code Inspector: Tony Doan • Senior Planner: Eric Crowell • Plans Examiner (2): Julia Rosales, Suzanne • Senior Planner: Vacant, long range DeBusschere • Senior Planner: Vacant • Building Inspectors (3): Mike Musgrove, • Assistant Planner: Connor Kennedy (July) Anson Morgan, John Zabell • Permit Coordinator: Patty Reynoso • Planning Technician: Eva Rivera • Permit Technicians (3:) Carissa Dellinger, ` Temp DA1 : Irene Linos (special project) Amanda Firth, vacant • Code Enforcement Officers (5): Jose Armenta, John Bartz, Pedro Contreras • Community Development Director: Joan (Clean City), Tia Hickman, Isidro Mendoza Davenport • Code Compliance Assistant (Clean • Community Development Assistant: Lisa City/Graffiti): Jeremy Viveros Maxey i `-- COMMUNITY DEVELOPMENT DEPARTMENT SERVICES Code Administration Division Service Units Permitting, Licensing and Operation of Front Counter • 3 Permit Techs (Carissa Dellinger, Amanda Firth, one vacant) • 3,223 total permits were issued in 2022. o Valuation of new construction was $133,102,755. o Permits were issued for 540 new dwelling units and 49 new commercial structures. • Processed the City of Yakima obligations of 7,000+ Business Licenses. Other regulatory licenses (478) are issued and renewed annually as well. ci Greets and directs public for Codes, Planning and Engineering. Certified Spanish interpretation is provided by 4 staff in the Codes Division. o Staff time was factored in the FCS Group Fee calculations. Development and Building fees are regulated by RCW 82.02.020 which limits fee structure to actual costs of processing, inspecting, review or preparing detailed statements related to applications. 3 COMMUNITY DEVELOPMENT DEPARTMENT SERVICES Code Administration Division Service Units Plan Review: Julia Rosales, Suzanne DeBusschere ® Reviewed submittals and managed corrections/edits from 1 ,013 plan reviews (2022) f) Staff currently requires electronic plan submittal and is managing the transition to full electronic processing. ▪ Processing of complete applications is approximately 2 weeks. • Staff time was factored in the FCS Group fee calculations. n Provides limited services to City of Selah, at the same rate charged in City of Yakima. 4 riii"..iAS 'i1/4:;etist*g4405401Arro43111106wry• ::1C -►,Ai.r COMMUNITY DEVELOPMENT DEPARTMENT SERVICES Code Administration Division Service Units Building Inspections (Mike Musgrove, Anson Morgan, John Zabel!) • Inspected and managed the approvals of physical construction of the 1 ,131 permits issued (2022) including 540 new dwelling units and 49 new commercial structures. • Inspected utility installations on private property, as a service to City Water and Sewer Divisions. E) Inspectors are partially funded by the Waste Water Division ($17,000 each inspector) o Customers receive an inspection within 24 hours of a request. o 8,279 construction and licensing inspections were performed by Building Inspectors in 2022. o Staff Time was included in the FCS Group fee study. o Provides contact services to the City of Selah, at the same rate that City projects require. 5 COMMUNITY DEVELOPMENT DEPORTMENT SERVICES Code Administration Division Service Units Dangerous Building/Code Compliance Program — Primary staff Glenn Denman, Tony Doan, Code Compliance Officers • Code Enforcement and Clean City Participation: 5 General Fund, 2 Clean City personnel • Maintains and Coordinates with other Department staff, legal team and Clean City to provide focused code enforcement of neighborhood structures that are in derelict, dilapidated or unsecured conditions. Also, problem or chronic repeat code enforcement violation locations using the tools in the IPMC. • City has collected over $42,000 in 2023 from liens on properties in 1 St Quarter. In all of 2022, the City collected less than $35,000 — EXPENDITURES to be factored. • In 2022, code compliance has certified $227,000 in liens to the 2023 county tax rolls. • Projected case numbers for 2023 are 2,445 cases. A typical case where voluntary compliance is achieved can take approximately 2 months to complete. o Staff time was NOT factored in the FCS Group fee calculations. 6 itr CHANGES IN SERVICES AND REVENUE 2023 6) The City contracted with FCS Group to calculate fee capture of 100% actual costs (May 1 , Building and Licenses and March 1 , Land Use). Fees are regulated by RCW 82.02.020 which allows cities to collect fees reasonable for the cost of the permit or approval to cover processing applications, inspecting, plan reviews, or preparing a detailed statement (related to SEPA). Fees may cover a portion of indirect costs to support the services. • Anticipated increased revenue in 2023 is expected to be ($600,000) • Anticipated increased revenue in 2024 is expected to be ($910,000) Numbers are based on 2021 and 2022 averages • Amended fees include a 4% Technology Fee; anticipated revenue ($24,000) ° Electronic application intake and plan review TASK : 10 % REDUCTION IN GENERAL FUND BUDGET Total General Fund Budget 2024 10% of 2024 Budget Codes: $1,846,552 $184,655 Proposed Reductions = Estimated Savings Total Eliminate a filled Plans Examiner Position $100,687 Vacant Code Compliance Officer $86,446 Total: $187,133 $187,133 (10.13%) 116.] IMPACT OF 10 % REDUCTION IN GENERAL FUND BUDGET • With reduction of one Code Compliance Officer (from 5): 20% reduction in at-large code compliance officers One at large officer handles approximately 400 cases per year • Result would be prioritizing complaints according to available staffing • Certain complaints from community members and violations of the municipal code would not be enforced • With reduction of one Plans Examiner (from two): • Average examination turn around time would double (from 2 weeks to 4 weeks) • Result would be one plans examiner for 1 ,013 plan reviews ▪ Amended fees were implemented in 2023 (May 1 , Building and Licenses and March 1 , Land Use). Anticipated increased revenue in 2023 is expected to be ($600,000), 2024 is (910,000) 9 • 000 COMMUNITY DEVELOPMENT DEPARTMENT SERVICES Planning Division Service Units Current Planning Land Use Applications — Primary Staff: Manager, Planning Tech, All Planners • Average number of annual project permits (2020-2022) = 626. Current Land Use: Class 1, 2, 3; Administrative Adjustment; Modification; Variance; Rezone; Comp Plan Amendment. Subdivision: Short Plat, Long Plat, Boundary Line Adjustment, Binding Site Plan. Environmental: SEPA, Critical Areas, Shorelines. • This Division has experienced significant staff turnover. Since December 2022, Planning staff has been limited to one Senior Planner, the Planning Manager and the Planning Technician. • In 2023, Council adopted the recommendations from the FCS Group Fee Study which calculated 100% capture of direct and indirect costs. Land Use applications fee changes went into effect on March 1 , 2023. Revenue from 2023 land use applications is expected to increase approximately $45,000 from the 2022 level. 2024 revenue increases are anticipated to be over $100,000 more than 2022 revenue, since the new rates will be in effect for the entire calendar year. COMMUNITY DEVELOPMENT DEPARTMENT SERVICES Planning Division Service Units Housing Subdivision involves the creation of new lots and adjustments or mergers of boundary lines. 2022 Subdivision Stats 120 In 2022, 114 buildable lots were created. Preliminary plats processed in 2022 will yield 100 10 146 buildable lots when completed 80 zl • A developer has 5 years after preliminary plat 60 6 approval to complete their project. 40 a The subdivision process is a key component in the 20 2 development of new streets, sidewalks, street lights, and utility extensions — paid for and n c 'S''°''Plat Final shoat Plat � 109 84 I- 37.;t�. - ---~ - 30 installed by the developer. L [ `A.pplkcrtioitsf _ 6 11 -u 4., , -r' 0 .0.,. AZiltilik - '. - " .-sE - IFF , f,,,,,AlptAt lk 1 om+A te. ti , : i. • COMMUNITY DEVELOPMENT DEPARTMENT SERVICES Planning Division Service Units Housing continued Completed Units Aug 21 -Apr 23 = 432 Since the 2040 Comprehensive Plan was Permitted Units Aug 21-Apr 23 = 960 adopted 2,433 dwelling units have been permitted — this accounts for 38% of our 2040 F,.,SO J00 goal in 6-years (through April 2023). ° I 0 'I0(l G 1. 1 1 , l 50 Dwellings Permitted 2018 - 2023 =(' i i t i j I I (, 4500 "�,r1 �e ,7e` „eS „7�pryy��°c1,t..0 e��, ��'\ ,,,' s��i��04' fie,°srcc�e ��e qj",�0-\ 0y 000 Q�. O� a 0 �`e o� e`" P ,yRO� �e e a R e�� P F- �� 't', Q 1 F yeQ ° cp.' ,, F 350(.' °e• 1 c c 1 Remodel .1 Bed!oin/Studio 2 Bedroom _3'• Bedroom e To1a 3000 5,0) e In August 2021 we started collecting and 0003973 reporting certificate of occupancy data. Progress 2,433 through April 2023: 1000 960 dwelling units permitted 500 836 (. 265 __ 225 _ 464 54° °` ') 432 C-of-O's issued 2018 2019 2070 2021 2022 2023 focal to 3io 12 COMMUNITY DEVELOPMENT DEPARTMENT SERVICES Planning Division Service Units Long Range Planning —Primary Staff (vacant), Planning Manager now provides services In 2022, the City Council authorized a new staff person dedicated to Long Range Planning. We are currently in the interview process for this position. The Long Range Senior Planner will act as project manager for various city projects, including: • Long range documents such as the Downtown Plan or other sub-area neighborhood plans; • The upcoming periodic update of the Comprehensive Plan - required to be complete by June 30, 2026 (RCW 36.70A (Growth Management Act)); • Other codes such as SEPA (YMC Ch. 6.88), Critical Areas (YMC Ch. 15.27), and Shorelines (YMC Title 17) require periodic updates in accordance with state requirements and changes in state RCW/WAC regulations; and, • Updates to the Comprehensive Plan and Development Regulations required to implement several housing- related bills recently passed by the legislature. 13 COMMUNITY DEVELOPMENT DEPARTMENT SERVICES Planning Division Service Units 1 Other Services n Hearing Examiner — conducts open record public hearings for higher-level land use requests and appeals. Annual budget for the contract is $35,000. Actual costs fluctuate year-to-year based on the number of public hearings. Boards and Committees: o Yakima Planning Commission — 2 meetings per month / 2 staff • Historic Preservation Commission — 1 meeting per month / 1 staff o Yakima Tree-City USA Board — 1 meeting every other month / 1 staff • Bicycle and Pedestrian Advisory Committee — 1 meeting per month / 1 staff • Of these, only the Bicycle and Pedestrian Committee is an optional committee. The three others are required to receive grant funding or certifications for City programs. • Staff estimate of preparation and assistance to the advisory committees is — 4 hours per meeting, per staff person. Staff support of the four committees is approximately $43,056 annually. 14 tiltir04,7,410 COMMUNITY DEVELOPMENT DEPARTMENT SERVICES Planning Division Service Units Community Development Director and Support Staff services • The Community Development Director and the Community Development Administrative Assistant are included in the Planning Division budget. The projected 2023 expenditure for this service is $209,991 . Projects handled by the CD Assistant include time-keeping and payroll for the department, purchasing, budget analysis, data reporting, SmartGov reporting and training, coordination with other departments and internally, as well as many other support roles. • The Director is responsible various functions related to land use matters in the City. Specifically, the roles of Zoning Administrator, Subdivision Administrator, FEMA and SEPA administrative officials are all fulfilled by the Director, as support and coordination to the Planning and Code Administration Divisions. • Due to staff vacancies, the Director has been Acting Manager for Neighborhood Development since October 2022 and assisting in writing various HUD related documents. This role has constrained the capacity to preform other functions of the Community Development Director during this reorganization. This topic will be more fully discussed during a later budget study session. 15 FlaIMP 1111111110111M1111111111111, TASK : 10 % REDUCTION IN GENERAL FUND - PLANNING DIVISION Total General Fund Budget 2024 10% of 2024 Budget Planning Division: $963,348 $96,343 Proposed Reductions = Estimated Savings Total Senior Planner (vacant) $103,065 $103,065 Total: $103,065 $ (10.7%) �6 IMPACT OF 10 % REDUCTION IN GENERAL FUND BUDGET n Vacant Senior Planner Position • This position was previously underfilled by an Assistant Planner. Land Use projects are currently being processed by 1 Senior Planner and the Planning Manager — workload will be divvied up further when our new Assistant Planner begins in July. • The 626 average annual projects will be processed by the remaining staff. • Timeliness (required under state law) of reviews has been achieved, but current planning has consumed the majority of capacity of staff to meet deadlines. Other long-range projects have been slowed down as a result. Business Practices • Planning Staff currently devotes around 600 hours per year reviewing Business License applications to determine if land use is required or not. The business license fee generates revenue for the Codes Division. The Planning Division is not compensated for the review of business licenses. • If Planning staff stopped the routine review of business licenses, that time could be reallocated to other projects but would increase the workload on Codes Division staff. • Alternatively, business license fees could be increased to account for the work done by Planning Staff. COMMUNITY DEVELOPMENT SUMMARY TASK: 10% REDUCTION 2024 Adopted Budget 10% Reduction 2023 Revenue (est.)* Code Administration $1 ,846,552 $184,655 $2,331 ,600* Planning Division $ 963,348 $ 96,335 $ 149,500* CD Summary $2,809,900 $280,990 $2,481 ,100* *Department revenue estimates were generated in 2022, prior to the completion of the final FCS Group Fee Study. Actual revenue for both Codes and Planning are projected to exceed the 2023 estimates by $600,000 to $910,000. Staff will closely monitor revenues. Proposed Reductions to General Fund: Do Not Fill Vacant Senior Planner $1 03,074 Total of Reductions $103,074 (4.2%) **Strategy to meet the intended 10% target: Evaluate increased revenues from Permits, Licensing and Land Use fees at end of 2023 and into 2024 to determine if the revenue from these exceed the 2023 Preliminary estimate enough to offset the $2,481 ,100. If the revenue does not generate the difference, the Department proposes evaluation of other staff reductions: Do Not Fill Vacant Code Compliance Officer $ 86,475 Eliminate one Plans Examiner (filled position) $100,687 18 QUESTIONS ?