CITY OF POMONA
COUNCIL REPORT
December 19, 2022
To: Honorable Mayor and Members of the City Council
From: James Makshanoff, City Manager
Submitted By: Anita D. Gutierrez, Development Services Director René Anderson, Human Resources/Risk Management Director SUBJECT: Adoption of Resolutions Amending the A-B Class Comp Plan To Add a New Group B Level Position, Amending the Memorandum of Understanding with the Pomona Mid-Management/Confidential Employees’ Association (PMMCEA) and the Pomona City Employees’ Chapter of the Teamsters Local 1932 (PCEA), and Amending the Authorized Staffing Levels and Citywide Salary Schedule within the Fiscal Year 2022-23 Operating Budget Related to Bringing Building and Safety Services In-House RECOMMENDATION:
It is recommended that the City Council adopt the following resolutions:
RESOLUTION NO. 2022-229 – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, AMENDING APPENDIX A OF THE COMPENSATION PLAN FOR EXECUTIVE MANAGEMENT GROUP A AND B EMPLOYEES BY ADDING THE BUILDING OFFICIAL CLASSIFICATION AND AMENDING THE AUTHORIZED STAFFING LEVELS IN THE DEVELOPMENT SERVICES DEPARTMENT FOR THE FISCAL YEAR 2022-23 OPERATING BUDGET BY THE ACTIONS LISTED HEREIN RESOLUTION NO. 2022-230 – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, AMENDING APPENDIX B OF THE MEMORANDUM OF UNDERSTANDING WITH THE POMONA CITY EMPLOYEES’ CHAPTER OF THE TEAMSTERS LOCAL 1932 BY ADDING VARIOUS BUILDING AND SAFETY CLASSIFICATIONS RESOLUTION NO. 2022-231 – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, AMENDING APPENDIX B OF THE MEMORANDUM OF UNDERSTANDING WITH THE POMONA MID-MANAGEMENT / CONFIDENTIAL EMPLOYEES’ ASSOCIATION TO ADD THE CLASSIFICATIONS OF DEPUTY BUILDING OFFICIAL AND BUILDING & SAFETY COORDINATOR RESOLUTION NO. 2022-232 – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA AMENDING THE CITY OF POMONA’S SALARY SCHEDULE FOR FISCAL YEAR 2022-23 TO MEET THE CALIFORNIA CODE OF REGULATIONS TITLE 2, SECTIONS 570.5 AND 571 TO REFLECT ADDING NEW CLASSIFICATIONS ASSIGNED TO THE NEWLY CREATED BUILDING & SAFETY DIVISION EXECUTIVE SUMMARY:
Building and Safety services in the City of Pomona have been provided by a contractor since 2009. The contractor, Interwest Consulting Group has provided those services under three separate contracts over the years. It is recommended to significantly reduce the City’s reliance on building and safety contract services and bring a majority of the Building and Safety Division in-house by creating eleven (11) new City positions for the Building and Safety Division. Approval of the proposed actions will authorize the requested positions.
FISCAL IMPACT:
The total cost for in-house building and safety services is estimated at $2,186,913, using conservative estimates of staff earnings & benefits at the top step in the pay range. The forecasted cost savings is between $200K - $500K per fiscal year. Table 1 below depicts estimated savings in the amount of $218K for FY2022-23, which is based on estimates of projected revenue of $3,700,000 and estimates of total Division costs. Staff used very conservative estimates when establishing the proposed in-house service costs, which provides an opportunity for additional savings, should costs not be as high as conservatively estimated, thus the range of forecasted savings between $200K - $500K.
Table 1: Contract Services vs. In-House Services Cost Comparison FY2021-22
FY2022-23*
Full Contract Services
FY2022-23* In-house Services
Total Billable Revenue
$3,859,633.21
$3,700,000.00
$3,700,000.00
Interwest Payments @ 65%
$2,509,231.62
$2,405,000.00
In-house Costs
$2,186,913.00
Amount Retained by City
$1,350,401.59
$1,295,000.00
$1,513,087.00
*Based on forecasted estimates as the fiscal year is not complete.
PREVIOUS RELATED ACTION:
In August 2009, due in part to economic decline at the time and the service costs outpacing revenue, the City Council approved outsourcing building and safety services. There were twelve budgeted positions for the Division in FY 2009-10, which had already downsized from staffing levels of 15 in previous years. Through a Request for Proposal (RFP) process, Interwest Consulting Group was awarded a three-year contract to provide building and safety services with an option to extend for two additional years. The contract rate was based on a sliding fee scale, with Interwest receiving 100% of fees up to $600,000, 85% of the next $150,000, and then 75% of fees over $750,000.
In 2014, the Interwest contract was set to expire, therefore the City again went through a competitive RFP process for building and safety services. In November 2014, the City Council awarded a three-year contract to Interwest Consulting Group to provide building and safety services at a rate of 65% of fees generated, which equated to an estimated annual cost of $1,280,500 based on revenue received, with the option to extend for two additional years. Then again in 2020, the City went through a competitive RFP process for building and safety services and ultimately awarded a three-year contract to Interwest Consulting Group to provide building and safety services at a rate of 65% of fees generated, with the option to extend for two additional years. The current contract with Interwest Consultation group will expire in March 2023 unless renewed.
DISCUSSION:
The goal of bringing building and safety services in-house is to create a more consistent and dependable team that can provide true integration with other City Departments and services, while also providing for more control over work culture, behaviors and expectations. Additionally, in-house services provide an opportunity for improved customer service and building community relationships. The current proposal for in-house services proposes a significant reduction in contract services, however they would not be eliminated entirely. The goal is to staff the Building and Safety Division at approximately 80% of need and augment with as-needed contract services for the remainder, which helps manage the fluctuations in market demand. The Building and Safety Division currently processes between 80 and 150 building permits per month, conducts over 1,000 inspections per month and receives between 700-900 contacts at the public counter per month.
This proposal will create eleven (11) new positions within the Building and Safety Division, which is managed by the Development Services Department. The new positions are shown in Table 2 below.
Table 2: New Building and Safety Positions
Position
Number of Positions
Unit/Group
Annual Salary Range
Building Official
1 B
$136,608 - $165,996
Deputy Building Official
1 PMMCEA-C
$112,080 - $136,236
Building & Safety Coordinator
1 PMMCEA-C
$65,100 - $79,140
Plans Examiner
1 PCEA
$83,304 - $101,316
Building Permit Technician II
3 PCEA
$56,136 - $68,184
Building Permit Technician I
Flex staffing
PCEA
$50,856 - $61,824
Senior Building Inspector
1 PCEA
$79,332 - $96,420
Building Inspector II
2 PCEA
$68,460 - $83,148
Building Inspector I
Flex staffing
PCEA
$61,956 - $75,300
Administrative Assistant I/II/III
1 PCEA
$50,856 - $61,824
Total Proposed Positions
11 The Division would reduce contract building and safety services to engineering and plan check services and, as needed, building inspector services to augment capacity; ensuring continuity of service and permit review time. The proposed organizational chart for the Building and Safety Division is shown in Figure 1 below.
Figure 1: Building and Safety Division Organizational Chart Time for Implementation
Upon adoption of the positions, staff would open the recruitment for the new positions in January 2023 with the goal of completing interviews and selection by March 2023; while simultaneously reducing contract service levels. We anticipate onboarding new City staff in April 2023.
Prepared by:
_____________________________
Anita D. Gutierrez
Development Services Director
Chris Munoz
Human Resources Manager
ATTACHMENT(S):
Attachment No. 1 – Resolution No. 2022-229
Attachment No. 2 – Resolution No. 2022-230
Attachment No. 3 – Resolution No. 2022-231
Attachment No. 4 – Resolution No. 2022-232
Building and Safety Services