LTC 232-2010 Status of Building Development Process
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OFFICE OF THE. CITY MANAGER r;3 ~F'
No.: LTC #I-23_20,0 I LETTER TO COMMISSI~OI~ `:~W,
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TO: Mayor Matti Herrera Bower and Members of the City Commission
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FROM: Jorge M. Gonzalez, City Manager
DATE: September 1, 2010
SUBJECT: STATUS OF THE CITY OF MIAMI B H BUILDING DEVELOPMENT PROCESS
RECOMMENDATIONS AND OBSERVATIONS FROM WATSON RICE STUDY AS
REQUESTED BY THE FINANCE AND CITYWIDE COMMITEE
On August 13, 2008, the City entered .into a contractual agreement with TCBA Watson
Rice to conduct a Building Department Organizational and Operational Review. The
consultants, presented their final report and recommendations to the Finance and
Citywide Committee on May 5th 2009..
The Finance and Citywide Committee accepted the consultant recommendations and
" asked the Administration to provide. a written quarterly update in the form of a Letter to
Commission (LTC) and an annual presentation to the Finance and Citywide Committee.
Attached is the report through September 1, 2010. It outlines the progress made to date
on all ofthe 24 initiatives recommended by the consultant. For ease of reading; we have
underlined the progress made under each of the items since the last report.
Please feel free to contact me if you have any questions
JMG/AR/Is
Attachment
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CITY OF MIAMI BEACH BUILDING DEVELOPMENT PROCESS
RECOMMENDATIONS AND OBSERVATIONS
FROM WATSON RICE STUDY
STATUS REPORT AS OF SEPTEMBER 2010
1. Ensure that the Building Department's formal (and informal) organization and
.responsibility reporting structure is in compliance with the Florida Building Code.
Status: Implemented
The Building Department has undergone many changes in the past several years. These
changes have included administrative items, changes in the organizational structure,
and changes in systems and procedures. .
The latest organizational structure adopted on October 27, 2008 ensured that the
organizational alignment was consistent with the requirements of the Florida Building
Code by allocating all of the positions performing responsibilities under the Florida
Building Code to the Building Official. Furthermore, the name of the Engineering. Section,
. was modified to the Governmental Compliance Section to eliminate. any confusion as to
the nature of their work. Additionally, Senior Management is ensuring that the informal
organization follows strict adherence to the formal structure.
2. Separate the duties of fee assessment and receipt of fee payments.
Status:ln progress
.The Building Department has transferred one position to the Finance Department to
handle these responsibilities and work is ongoing to document all the payment points
and quantities/levels of work. Finance is actively recruiting forthis position.
We expect that the transfer of responsibilities will be completed- as soon as the
recruitment~is completed.
3. Implement customer service improvements.
Status: Implemented and Ongoing
Customer service improvements are a continuous effort in any service organization.
Some of the efforts that we are working on include:
.The organizations' approach .towards the customer begins at the top. Special
emphasis is placed on senior personnel in the Building Department to have superior
customer service skills.
• We discuss positive customer service experiences at our staff meetings and
recognize those employees who have achieved positive. experiences.
• We emphasize the City's Excellence Model standards for greetings, .messages and
call management to our employees.
4. .Develop and implement a simplified permit fee structure and calculation
methodology.
Status: Implemented
The City selected Maximus Consulting Services in February 2009 to conduct a fee
study:. The study analyzed the City's direct and indirect costs, and developed a fee
structure based on the level of effort dedicated to each permit.
The first reading of the Ordinance was unanimously approved on 12/9/09 and the
second reading'was unanimously approved on 1/13/10. The Fee Ordinance was
successfully implemented on 2/1/10.
. ^5. Develop policies and procedures to implement the Private Providerprocess.
Status: Implemented.
The City of Miami Beach has completed the policies and procedures to manage the
Private Provider Process and a program coordinator has been assigned.
6. Develop: a system . of exception reporting and staff accountability and
.responsibility reporting.
Status: On-going
The development of a performance measuring system is an on-going effort. To date, the
Department has implemented monthly, weekly and daily performance measures. A
mechanism to collect data for some measures is still pending. Other measures continue
. to be developed and documented to ensure that the information is reliable and
replicable.
• Temporary Certificates of Completion/Occupancy and Certificates of
Completion/Occupancy issued. The objective is to limit the number of temporary
certificates of occupancy and completion issued but at the same time balance the
immediate needs of our customers.
• Inspection Rejection .rates, per trade and per inspector. The objective is to
standardize the level of reviews conducted by the various. inspector.
TCC/CO and CC/CO weekly statistics (currently only monthly reporting). The
objective is to track the level of property value added to the tax rolls.
• CC/CO turnaround time. The objective is to measure and improve the turn-around
time for this final step in the process.
• Plan re-review rates
• Certificate of Use (CU) turnaround time
• Number of elevator inspections per week
• Number of past due elevator inspections .
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• Number of weekly citations issued
• Number of permit renewals and extensions granted
• Accounts payable turnaround time
• QMB process time statistics
• Number of expired TCOs
The monthly measures include:
• .Revenues by permit type
• 'Expenses
• Plan review turn-around time
• Number of expired permits
The weekly measures include:
• Average and Maximum Waiting Time to see a Permit Clerk
• .Percent of customer waiting over an hour to see a Permit Clerk
• Number of Customer Served per Week
• Number, of permit process thru 24 hour walk-thru process
• Number of applications dropped off for processing
• Number of Records Request Completed
• Records Management Average Turn-around Time
• Percentage of Records process within five day target
• Percent of buildings complying with 40 year recertification process
• Number of buildings that should have been notified of 40 year recertification and
.have not been
• .Number of buildings that should have received a violation for failure to comply with
40 year recertification that have not received a violation
• Number ofi calls received per week by the call center
• Average duration of call (handle time)
• Percent of abandoned calls
• Average speed of answer
The daily measures include:
• Number of inspections with "no access" and daily audit control
• Daily audit by supervisor of 10% of building fee payments
• Number of plan reviews that are over the plan review target times
• Number of inspections carry-over to the following day
7. Require inspectors and reviewers to document and support plan or
construction modifications that are in excess of established thresholds or
requirements.
Status: Implemented and ongoing
The Building Department .has implemented a procedure that requires inspectors to get
pre-approval from their section chiefs prior to suggesting a modification to the plans
approved by the plans examiner. To the extent .possible, the Chief consults with the
plans examiner to ensure that he understands both points of view prior to making a final
determination.
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8. Provide adequate and timely training. for staff.
Status: Implemented and ongoing
The Department has developed a Multi-year Department-wide Training Plan that
identifies all of the requirements for each functional group of the organization.. This Plan
has been fully funded beginning in FY 2009-10, and will be implemented over the next
three years.
Training courses employees .have participated include:
• LEED
• Flood. Plain Management
• NFPA: NEC Essentia-s
• NFPA: Certified Fire specialist
• Elevator Safety Technical Advisory Council
• Certified Fire Protection
• Radical Process Improvement Seminar
• BOAF & FAPGMI Conference
• National Electrical Code Essentials
• Process Improvement: We Don't Make Widgets Academy
Training needs will continue to be assessed and the Plan will be modified accordingly
9. Enhance monitoring and control over Building Department fiscal operations.
Status: Implemented and ongoing
Beginning in FY 2008-09, the Department filled a .position that has amongst its major
responsibilities, the fiscal ,operations of the Department. The responsibilities of this
individual include the preparation of the budget and the monthly monitoring of revenues
and expenses for the Department. These capabilities did not exist prior to this fiscal
year. In past years, the Chief of the Elevator Section was responsible for the preparation
of the department's budget.
A Budget Forecasting Model was developed to analyze permit activity and revenue for
accurate budget forecasting. Monthly budget meetings. are held to review these results
.and to carefully manage Departmental operating expenditures and salary projections.
10. Conduct a comprehensive review of the methodology used to calculate all fees
and ensure that all documents containing fee information are consistent.
Status: Implemented
The Department performed a detailed quality control of all fee related publications to
ensure that they were consistent with the Fee Ordinance and modified them accordingly.
Additionally, a quality control program was installed that requires the Permit Clerk
Supervisor to .randomly audit approximately 10% of the. permit fees charged. on a daily
basis. During the post-fee implementation period, 100% of the fee transactions were
being audited to ensure consistency with the adopted fee schedule_
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11. Provide adequate physical space for Building Department operations.
Status: In Progress
The Building Department was allocated additional space on the third floor of City Hall in
order to be able to provide the space for the electronic plan review work stations. The
inspectors have been relocated to the third floor. and the offices in the third floor have
been refurbished and occupied.
Additional customer service space is being added to the second floor lobby to improve
the functionality of the Department's processes. A plans storage and a re-designed
.records management. room, a payment and information kiosk, and the electronic plan
review work station area were completed in March 2010. A monitor displaying news
and advertising department initiatives has been mounted in the lobby to enhance the
customer experience and promote new services. The additional service window and the
upgrade of the lobby are scheduled to be completed in the Winter of 2010.
12. Create and staff a high-level customer advocates (ombudsman) position
responsive to customers interacting with building/development process
departments.
Status: Implemented
The position of Inspection. Services Coordinator was established and serves as the
Department's ombudsman and quality control inspector.
This responsibility was assigned to Mr. James Legget.
13. Require inspectors and reviewers to internally resolve inter-disciplinary, inter-
departmental, and/or intra-departmental conflicts before they are communicated
to the customer.
Status: Ongoing
This area continues to be one of the most critical areas to address, and a source of
complaints from the customers. The Building Development Task Force has dedicated
several meetings to identify the most common areas of inter-departmental conflicts and
establish .procedures to address them.
On October 29, 2010, Planning, Fire and Building plan reviewers and inspectors met in
the commission chambers to participate in a workshop to enhance inter-departmental
communication. The initial meeting has already yielded some areas to enhance
operational efficiency such as including required Fire inspections on particular permits.
.One. of Building's FY 2010 initiatives is to create the ability to communicate between
trades and departments
Procedures have been put in place that require inspectors and plan reviewers to discuss
potential conflicts with their Chiefs prior to being communicated to the public. ~.
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Directors of Planning, Fire. and Building will continue to hold. inter-departmental staff
meetings with .all inspectors and plan reviewers to encourage inter-departmental
communication and conflict resolution.
14. Use issues or conflicts as material for training of inspectors and plans
.reviewers.
Status: Implemented and ongoing
The department uses conflicts as a source of material during the Chief's staff meetings
and the monthly general .employee staff meetings. These are. used to reinforce positive
and eradicate negative behavior.
15. Consider outsourcing the Call Center operation.
Status: implemented
Pursuant to RFP No. 08-08/09, dated January 28, 2009, the City of Miami Beach
outsourced the Building Department's Call Center. Prior to April 22, 2009, customers
experienced extremely long hold times, high abandonment rates and often never
reached a live person. to answer questions or provide customer support. After the Call
. Center's April implementation, callers can speak to a friendly, knowledgeable
representative within seconds.
Approximately 50,000 calls are handled annually and the Department maintains at least
an 80% customer satisfaction level. The initiative significantly increased the community's
satisfaction with government, by striving for first call resolution and promoting excellent
customer service.
Under the new system, the average response time is approximately five seconds and
the abandonment call rate is about 2%.
16. Consider outsourcing the Permit Counter and Records Management Service
areas.
A) Permit Counter:
Status: In Progress
The recommendation to evaluate outsourcing of the permit counter was adopted in the
FY 2009-10 Budgef. Due to the status of labor negotiations as of August 25, 2010, the
Department. will prepare an RFP to solicit providers for this service. A draft is expected to
be sent to the Commission for approval in the Fall of 2010.
B) Records Management Service:
Status: Implemented
The Department has moved expeditiously to digitize most of the City's Building records
thus reducing departmental. personnel to a minimum level, and thereby pre-empting the
need to privatize the service..
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17. Analyze the effectiveness of the Department's- technology solutions to
providing customer support and;
18. Increase operating efficiency through the effective use of technology.
Status: Implemented and ongoing
The objectives of the Building Department's technology initiatives are to increase
operating efficiencies and improve the customer experience through innovative and user
friendly technology based solutions. The initiatives include: electronic plan review,
' central record automation, a new website, online forms, online permitting, handheld
computers for inspectors, vehicle tracking systems, QMB walk-thru plan review queuing
system, a new interactive voice response inbound call flow and the most ambitious
. initiative, the permitting. replacement system.
The electronic plan review system offers design professionals an expedited,
environmentally friendly, standardized method of review while adding consistency and
accountability of the plan reviewers. The pilot implementation began in September,
2009. The first phase of the project was implemented on May 24, 2010. Additional
processes are being implemented by City staff and will .include CIP and Planning pre-
development applications. The City is breaking new ground by collaborating with
external agencies, like WASD and DERM, to participate in the electronic plan review
system lead by the City. The project is on-schedule and on budget.
The central record automation implementation began in early 2009. The digitization
initiative has significantly reduced the turnaround time for records' requests from days to
hours. The.. reduction in paper will save the City valuable resources and promote a
`green' environment. The initiative makes valuable information more accessible to the
community. All records dated from 1925 to present are available in digital format. The
Records Section is in the .process of splicing large records into individual permits. Once
this exercise is complete, the records request turnaround time will be reduced from days
to hours. We hope to complete the splicing process by 2012, deaendina on available
resources.
'The Building Department launched an intuitively designed and highly functional website
in January, 2009. Web-enabled features include online payments, the ability for
contractors to pull sub-permits to approved master permits, and the capacity for home
owners to pull `remove and replace' type permits .over the Internet; these functions are
being finalized. The Department is in the testing phase of accepting ..permit application
forms online to continue to reduce over crowdedness in the lobby and expedite the
permitting .process.
Building inspectors are equipped with handheld computers that are used to enter real
time inspection results; these results are displayed on the Department's website. The
implementation eliminates the need for redundant entries, provides the ability to monitor
inspection routes and increases accountability.
Automated Vehicle Locating systems will be installed in the Building inspectors',
Code Compliance officers'.and Parking Department cars to improve daily efficiency and
serve as an internal control tool. The City issued an RFP in July. 2010 that supports the
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development of an enterprise system to equip. all City vehicles with the AVL system. A
.recommendation will be presented to Commission by October's meeting.
The Department successfully launched QMB- the plan review walk- thru queuing
system, in August, 2009. The application enables complete transparency for customers
walking plans through the review process. This system is utilized by the City of Miami
and was highly recommended by our customers as the best system around; QMB
increases the community's satisfaction with the Department by expediting the review .
process and making the experience completely transparent to the customers.
A revised interactive voice response (IVR) call flow was designed and implemented in
August, 2009. The new call flow provides for clear options to our customers addressing
their most common questions. It also allows for a live response within approximately four
seconds of selecting the option to speak with a representative.
The Building technology initiatives are increasing the community's satisfaction with City
Government, making the City more user friendly.
19. Review and analyze staffing levels.
Status: Implemented and ongoing
As part of the FY10 Budget process, performance levels and standards were developed
for all major staffing groups, and a mechanism was established to account for and
monitor staffing levels based on fluctuations in demand.
20. Appoint an individual to coordinate the efforts of the building/development
process departments.
Status: Implemented
In December 8, 2008 the .Building Director was appointed to Chair the Building
Development Task Force's Interdepartmental Team. As part of his role, Mr. Rey will
facilitate communication and guide the process improvement initiatives among the
Building Development Task Force team members: In addition, he coordinates
responses and directs staff and resources to facilitate building development projects.
21. Develop a formal policies and procedures manual for all building/development
process disciplines.
Status: In Progress
This is a recommendation that requires a large amount of staff resources to implement.
• We expect to document all the Department's .processes during the implementation of the
new permitting system. The manual will be completed concurrent with the
implementation. of the new system in late 2011.
22. Complete the process of developing plans review and inspection checklists.
Status: In Progress
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The implementation of the plan review checklist is being ,performed concurrently with the
implementation of the electronic plan review system, as this is one of the system
requirements to ensure uniform review and standards. -The plan review checklists are
incorporated into the electronic plan review process and are being implemented
concurrently with the system.
The implementation of the inspection checklist will be completed with the implementation
of the new permitting system, as the current system does not support the ability to have
checkliststhat are targeted to a specific inspection type.
23. Enhance staff knowledge and use of Department technology.
Status: In progress and ongoing
In general, the staff's knowledge of technology is very limited and it significantly
diminishes their productivity. Department staff continues to identify and implement
simple technology based solutions for existing. operations. The Administrative Support
Section has received additional Microsoft Office product training. Targeted systems
training for the operating division will begin in the Fall of 2010.
24. Perform a comprehensive review and analysis of the Permits .Plus system.
Status: In progress
.Based on the review of the existing system, it was determined that the best course of
action was to completely replace the system.
The permitting system. replacement will include permitting, inspections, code
enforcement and the business. tax receipt. Approximately one half of City departments
utilize the current permitting system. The new system will significantly increase
operating efficiencies, provide extensive auditing and security capabilities, contain
internal and external automated notification mechanisms to streamline operations and
enrich the customers' overall experience with the Building Department.
The City received ten proposals from various vendors throughout the North America,
however the information technology advisory group recommended to the selection
.committee that all of the proposals should be disqualified because they did not. meet the
City technical standard. All proposals were rejected. A new RFP was issued the City
received. eight proposals. The evaluation committee is in the process short listing the
vendors for further evaluation. A recommendation will be presented to Commission by
Lrear end.
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