Explanation
BACKGROUND: The Transportation Division within the Public Service Department has, among other duties, the coordination, direction, inspection and supervision of the construction of streets, highways, bridges, storm sewers, sanitary sewers, street lighting, water distribution lines, traffic control devices and any other city-owned or operated facility and such other related matters as may arise in connection with such construction.
The Development Services Special Revenue Fund was created to support the construction inspection activities of Transportation Division of the Department of Public Service. This fund is supported partly by the construction inspection fees collected by the Transportation Division from customers of its inspection services, including private developers and city agencies.
Expenses relating to the operation of construction inspection have increased yearly. For instance, collective bargaining agreements have obligated the City to wage increases ranging from 2% to 4% per year. Similarly, other operating expenses such as health insurance, workers compensation, information technology, fuel for vehicles, and utility expenses increase every year.
In reviewing revenues and expenses in conjunction with key customer base representatives, the Public Service Department finds that construction inspection rates must be increased to balance expenses with revenues. As result of this review, an interim schedule of implementation to revise current fees has been effected administratively, with a future fee schedule proposed herein for codification. This codified fee schedule will not only allow the Division to better budget and project revenue, but also will allow customers to better prepare for future changes and adjust their bidding processes accordingly. As implementation of these fees occurs, further minor modifications and refinements that prove necessary for continued customer service improvements will be evaluated and possibly submitted as future legislation.
FISCAL IMPACT: These fees reflect the City's costs associated with processes and expenses related to construction inspection. If fees do not cover operating expenses then these inspections must be funded from other sources. All fees are deposited to the development services special revenue fund.
Title
To amend Chapter 901 of the Columbus City Codes 1959, to enact new construction inspection fees.
Body
WHEREAS, the Department of Public Service and its partners of the construction industry have conducted a review of expenses and revenues in conjunction with the construction inspection process; and
WHEREAS, the cost of all services rendered by Transportation Division relating to construction inspection are to be made self-sustaining through the creation of the Development Services Special Revenue Fund; and
WHEREAS, this fund is to be supported, in part, by the fees collected by the Transportation Division for services associated with the construction inspection process; and
WHEREAS, as a result of this review, revised fees are being proposed to reflect an incremental fee increase; and
WHEREAS, as implementation of these fees occurs, further minor modifications and refinements that prove necessary for continued customer service improvements will be evaluated and possibly submitted as future legislation; and
WHEREAS, this fee schedule will not only allow the Division to better budget and project revenue, but also will allow the industry to better prepare for future changes and adjust their bidding process accordingly, now, therefore:
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That effective 12:01 A.M., January 1, 2007, existing Section 901.01 of the Columbus City Codes, 1959 be amended to read as follows:
901.01 Agreements to improve street areas.
Upon receipt of requests for the right and privilege to cause the improvement of any public street, avenue, boulevard or alley in the city, the director of public service is authorized to enter into agreements, granting such right and privilege, and such agreements shall contain the following provisions and conditions.
(a) The pavements so constructed shall be in accordance with plans to be approved by the transportation administrator and the director of public service, which plans shall meet the standard minimum requirements as adopted by the city council.
(b) The transportation administrator shall furnish detailed specifications, which shall be complied with in every respect.
(c) The grades of the streets, alleys or other public ways to be so paved shall be as shown on the plans therefor and shall be recorded in the profile books in the office of the transportation administrator.
(d) The city shall be held free and harmless from any and all claims for damages of every nature arising or growing out of the improvements so agreed to be made.
(e) The party requesting such right and privilege shall pay the costs of inspection and the cost of fire hydrants and shall deposit, with the city treasurer through the transportation administrator, the sums of money estimated by the transportation administrator to be necessary therefor, and in the event that such estimated amounts are found to be insufficient shall deposit such additional amounts as are necessary upon demand. All unexpended monies so deposited shall be refunded.
(f) Such party shall furnish a surety bond or an irrevocable letter of credit issued by a bank and subject to the provisions of Chapter 1305 of the Ohio Revised Code satisfactory to the director of public service, or an escrow agreement acceptable to the city attorney and director of public service, or a certified check upon a solvent bank of the city, in the sum of one hundred (100) percent of the estimated cost of the proposed improvements to guarantee the performance of the agreement.
(g) Any violation of the terms of the agreement or noncompliance therewith shall constitute a breach of contract and the transportation administrator shall have the right and privilege to stop the work forthwith.
(h) Upon completion of the work in accordance with the plans and specifications therefore, the pavements shall become the property of the city at no cost to the city and without encumbrance of any nature.
(i) City council shall by ordinance establish and periodically amend a schedule of fees for the review of street plans. All fees are for the purpose of defraying costs incurred by the division of transportation for reviewing street plans to assure conformance to city specifications. Once the fee has been paid it shall not be refundable. The transportation administrator shall not release street plans for construction until the fee has been paid in full. All fees shall be paid to the city treasurer for deposit into the development services special revenue fund. The schedule of fees and service charges shall be posted in the office of the division of transportation, public service department.
(j) All fees collected are for the purpose of paying for services rendered by the Transportation Division for coordinating, directing, inspecting and supervising the construction of streets, highways, bridges, storm sewers, sanitary sewers, street lighting, water distribution lines, traffic control devices and any other city-owned or operated facility and such other related matters as may arise in connection with such construction to assure conformance to city specifications. All fees shall be paid to the city treasurer for deposit into the building services special revenue fund. The schedule of fees shall be as follows:
Classification Hourly Rate
Construction Inspector I (FTR & FTL) $52.00
Engineering Associate I $52.00
Engineer Aide I $52.00
Engineer Aide II $52.00
Engineering Associate II $55.00
Engineer-In-Training I $55.00
Surveyor-In-Training I $55.00
Engineer-In-Training II $62.00
Engineer I $62.00
Engineer II $62.00
Engineering Associate III $62.00
Engineer III $70.00
Engineer IV $70.00
Construction Materials Analysis Coordinator $70.00
Surveyor $70.00
Engineering Intern $40.00
Prevailing Wage Coordinator $48.00
Section 2. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.