LTC 028-2012 Quarterly Status Report Watson Rice Study MIAMI BEACH
OFFICE OF THE CITY MANAGER
NO. LTC # 028-2012 LETTER TO COMMISSION
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: February 2, 2012
SUBJECT: QUARTERLY STATUS REPORT OF THE CITY OF MIAMI BEACH BUILDING
DEVELOPMENT PROCESS RECOMMENDATIONS AND OBSERVATIONS FROM
WATSON RICE STUDY AS REQUESTED BY THE FINANCE AND CITYWIDE
COMMITTEE
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 5, 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 quarterly report, outlining the progress made to date on the remaining
initiatives recommended by the consultant. For ease of reading; we have underlined the
changes made under each of the items since the last report.
Please feel free to contact me if you have any questions.
Attachment
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CITY OF MIAMI BEACH BUILDING DEVELOPMENT PROCESS
RECOMMENDATIONS AND OBSERVATIONS
FROM WATSON RICE STUDY
STATUS REPORT AS OF JANUARY 2012
The previous Status Reports reported several recommendations with a status of "Implemented"
or "Implemented and Ongoing". To simplify these quarterly reports, those items will no longer
be reported again unless there is a change in status in any of those items.
The following recommendations have status updates or are still underway:
16.Consider outsourcing the Permit Counter and Records Management Service areas.
A) Permit Counter:
Status: On hold - Review completed, subject to Union Collective Bargaining
Agreement, September 2012
The recommendation to evaluate outsourcing of the permit counter was adopted in the FY
09/10 budget. The department outlined the scope of services for the privatization request for
proposal as part of the FY 10/11 budget process. However, pursuant to negotiations
between the City and the Communications Workers of America (CWA), the union that
represents the Permit Clerk classifications, no employees were to be laid off for the FY
10/11 budget year. The City has shelved the idea of outsourcing the permit counter at this
time. However, the department continues to evaluate the productivity and cost effectiveness
of the permit counter as it is currently configured.
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.
2. Separate the duties of fee assessment and receipt of fee payments.
Status: In progress
The Building Department has allocated one position to the Finance Department to handle these
responsibilities. Finance has filled this position. The staff person has been trained on the
EDEN financial system, and has trained in the Building Department cashiering process. In
addition, the Building Department is in the process of procuring two payment kiosks that will
handle all transactions being paid by credit card or check. All cash payment transactions will be
handled by the Finance Cashier located on the first floor of City Hall. We expect that the full
transfer of responsibilities and implementation of the kiosks will be completed within the first half
of 2012.
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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 December 9, 2009 and the
second reading was unanimously approved on January 13, 2010. The Fee Ordinance was
successfully implemented on February 1, 2010.
Due to issues raised regarding the new fee schedule in the last several months, the item was
discussed at the Finance and Citywide Projects Committee (Committee), where the
Administration was directed to bring the item before the full Commission. An ordinance revising
the fee schedule had its first reading at the July 13, 2011 City Commission Meeting, and was
adopted at its second reading at the September 14, 2011 City Commission Meeting. All
recommended changes to fees were for reductions. In addition, a key provision was added to
the ordinance whereby any permit fee (including all City department permit fees, but not
including any outside agency fees or surcharges) calculated at time of permit application
submittal is greater than ten percent (10%) of the value of construction as declared on the
permit application, the permit fee will be reevaluated by the Building Official or designee. Any
refunds due to the customer will be issued at the end of project construction.
The Committee suggested trying this methodology for a year's time and tracking the results.
Feedback would be taken and a discussion of the re-evaluation would be discussed at the same
time as the discounts and CPI to see if this methodology is the best practice or if further
refinements are needed.
The consultants have completed their review of the fees, and the Administration will be
presenting additional fee revisions recommended by the consultants to the Committee in early
2012 as part of the next budget cycle.
10.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 on 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 new 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.
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A brand new conference room equipped with a state of the art Smart Board was completed.
Lobby improvements have also been completed. Newly designed signage has been installed.
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
The Electronic Plan Review System, the Central Record Automation initiative, an intuitively
designed and highly functional website, the QMB (the plan review walk through queuing
system), handheld computers, and the Interactive Voice Response (IVR) have all been
implemented. The Automated Vehicle Locating (AVL) system has been installed in the
Building inspectors, Code Compliance officers, and Parking Department cars to improve daily
efficiency and serve as an internal control tool. The department is also in the process of
replacing its permitting software, Permits Plus. Please see recommendation number 24
below for further details.
21.Develop a formal policies and procedures manual for all building/development
process disciplines.
Status: In Progress
An outside consultant completed a high-level overview policies and procedures manual for the
Building Department which has been posted on the Department's website. Department staff is
now developing more detailed policies and procedures to serve as an instructional training
manual. In addition to being available on line, the Policies and Procedures Manual will be
distributed to all department staff. Staff will receive adequate training and copies to ensure that
they are aware of the appropriate policies and procedures.
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, the
business tax receipt process, the Special Event permit process, and the special master process.
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 (10) proposals from various vendors throughout North America, however
the information technology advisory group recommended to the selection committee that all of
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the proposals should be disqualified because they did not meet the City technical standard. All
proposals were rejected. A new RFP was issued and the City received eight (8) proposals.
The evaluation committee short-listed four (4) vendors for further evaluation. Demonstrations by
each of the four (4) vendors were provided. Working Teams comprised of key users throughout
the City evaluated each system and provided their recommendations to the evaluation
committee.
On February 9, 2011, the City Commission authorized the Administration to enter into
negotiations with Accela for their Accela Automation product. Negotiations were successfully
completed and contracts executed.
Project Kick-Off took place in July 2011. During this quarter, Accela and its partner consultant,
Kings Canyon Technologies, have finished conducting their system configuration analysis for
80% of all work processes to be included in the system. This phase entailed holding multiple
sessions with all the affected departments to learn each department's business processes. The
consultants will finish the remaininq work processes and then take that information back and
begin configuring the system based on the City's processes, which will then be reviewed by the
appropriate staff. The system is currently scheduled to "go live" in December 2012.
The following initiatives have been implemented, or are implemented and ongoing, and will no
longer be reported on again unless there is a change in status:
11.Conduct a comprehensive review of the methodology used to calculate all fees and
ensure that all documents containing fee information are consistent.
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