Submitted By: Tye Chighizola
presenter
Presentation By: Cindy Krepps
end
Department: Growth Management
STAFF RECOMMENDATION (Motion Ready):
title
Adopt Budget Resolution 2023-118 amending the FY23 Budget to appropriate funds from the building fund reserve for building-related expenses in the amount of $284,903
end
OCALA’S RELEVANT STRATEGIC GOALS:
Operational Excellence, Economic Hub
PROOF OF PUBLICATION:
N/A
body
BACKGROUND:
The City had a five-year contract with GovSense for the implementation, module maintenance, and support services for its land management software system that expired on December 31, 2022. The contract can be renewed upon agreement by both parties. GovSense did not charge the city for the Permitting, Planning, Licensing, Code Enforcement, Inspections, or GIS modules during the first 5 years. GovSense will start charging for this maintenance but will give the city a 50% discount, resulting in a cost to the city of $29,964. The cost of support services is increasing from $27,000 annually to $39,702. The new annual cost for GovSense will be $69,666. Growth Management budgeted $27,000 in FY23 for GovSense as we were unaware of the cost increase during the budget process, so an additional $42,666 must be appropriated to pay the $69,666. Similarly, the City had a five-year agreement with Oracle NetSuite, which is the platform on which GovSense runs. This agreement has also expired and the new annual amount for 115 licenses and cloud services is $213,052. Growth Management did not have the increase during the budget process and had only budgeted $80,000, which is $133,052 short.
Due to being unable to fill 3 vacant, full-time Building Inspector positions, Growth Management has had to retain a part-time Inspector hired through MT Causley (SAFEbuilt) that was not included in the FY23 budget. The cost to retain this part-time position will be $66,560. ($80 per hour times 16 hours per week times 52 weeks = $66,560)
The city needs to hire a part-time instructor to provide electronic plan review software training (ePlans/ProjectDox) as well as impact fee processing training on an as-needed basis. The instructor, a former Impact Fee Coordinator for the Growth Management Department, is uniquely familiar with the City’s software and permitting processes. The instructor will be paid $42.50 per hour for up to 800 hours totaling $34,000.
In order to be responsive to our citizens, Growth Management has subscribed to Customer Building Telephone Satisfaction surveys at a cost of $4,625 through the Baldrige Group.
The Florida Building Code and National Electric Code are expected to be updated to the 8th Edition sometime in 2023 at a cost of approximately $4,000. The Building Inspectors need these books to keep current with the codes to perform their inspections.
FINDINGS AND CONCLUSIONS:
The City’s Building Fund is designed to support the operating expenses of the building division. The items being requested will aid building staff in carrying out their jobs.
In July 2019, the Florida Legislature passed a bill (HB 447) that states that a local government cannot carry forward an amount exceeding the average of its operating budget for enforcing the Florida Building Code for the previous 4 fiscal years. The 4-year average (fiscal years 2019 - 2022) for expenses is $2,015,366. The Reserve for Building Fund balance is approximately $3,825,832. According to the bill, funding needs to be used to pay for building expenses or fees should be reduced, which was done in FY22
FISCAL IMPACT: The proposed expenses will reduce the Reserve for Fund Balance (001-099-999-513-81-99170), which will assist in helping to meet legislative mandates.
PROCUREMENT REVIEW: N/A
LEGAL REVIEW: This Budget Resolution does not need to be reviewed and approved for form and legality by City Attorney, William E. Sexton.
ALTERNATIVE:
• Adopt with changes
• Table
• Deny
BUDGET RESOLUTION 2023-118
A RESOLUTION AMENDING THE FY23 BUDGET TO APPROPRIATE FUNDS FROM THE RESERVE FOR BUILDING FUND FOR BUILDING RELATED EXPENSES IN THE AMOUNT OF $284,903
WHEREAS, the City will be extending its contract with GovSense for implementation, module maintenance and support services until December 31, 2024; and
WHEREAS, an additional $42,666 is needed to pay for the GovSense module maintenance and increase in support services; and
WHEREAS, the City’s five-year agreement with Oracle NetSuite, which is the platform on which GovSense runs, has expired and the new annual amount for 115 licenses and cloud services has increased to $213,052; and
WHEREAS, an additional $133,052 is needed to pay for one year of Oracle NetSuite as only $80,000 was budgeted; and
WHEREAS, due to the inability to fill 3 vacant, full-time Building Inspector positions, Growth Management has had to retain a part-time Inspector hired through MT Causley (SAFEbuilt) that was not included in the FY23 budget; and
WHEREAS, the cost for a part-time Building Inspector will be $66,560.
WHEREAS, the City needs to hire an instructor to provide electronic plan review software training (ePlans/ProjectDox) as well as impact fee processing training on an as-needed basis; and
WHEREAS, the cost for the training services contract will be $34,000; and
WHEREAS, in order to be responsive to our citizens, Growth Management has subscribed to Customer Permitting Telephone Satisfaction surveys at a cost of $4,625 through the Baldrige Group; and
WHEREAS, the Florida Building Code and National Electric Code are expected to be updated to the 8th Edition sometime in 2023 at a cost of approximately $4,000; and
WHEREAS, the Building Inspectors need these books to keep current to perform their inspections; and
WHEREAS, due to the robust construction taking place in Ocala, the Reserve for Building Fund has been steadily increasing despite lowering fees; and
WHEREAS, according to Florida House Bill 447 passed in 2019, local governments should not carry forward a reserve that exceeds a four-year average of the annual cost of performing the building function; and
WHEREAS, the City’s Building Fund currently has a reserve balance of approximately $2,839,235, which exceeds the four-year average of its annual operating budget of $1,838,479.25; and
WHEREAS, since the expenses are necessary for the building operation and their cost will help reduce the reserve, it is an appropriate use of funding.
NOW, THEREFORE BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF OCALA, FLORIDA, duly assembled in regular session, that the FY23 Budget be amended as outlined below to appropriate funding as follows:
SOURCE:
001-099-999-513-81-99170 Reserve for Building Fund $284,903
USE:
001-016-061-524-52-34010 GRM Bldg. Other Services $105,185
001-016-061-524-52-54010 GRM Bldg. Books, Dues, Subscriptions $ 4,000
001-016-061-524-68-68010 GRM Bldg. Intangible Assets $175,718
TOTAL $284,903
This resolution adopted this ______ day of ______________________, 2023.
ATTEST: CITY OF OCALA
By: By:
Angel B. Jacobs Ire Bethea Sr.
City Clerk President, Ocala City Council
Approved as to form and legality:
By: _________________________________
William E. Sexton
City Attorney
Reviewed for accounting accuracy & completeness:
By: _________________________________
Peter A. Lee
City Manager