DEVELOPMENT ADVISORY BOARD MINUTES

January 19, 2006

Members Present Ben Barcon Rus Brock Bernie Deutsch Carlo Gegen Herb Hacker John Hart Pete Hemingway Barbara Koffron Scott Mardian Herman Orcutt Ken Roth Paul Scott Patricia Thornham Darrell Wilson Members Absent Gary Corcoran Danny Ortega Greg Russell

Staff Karen Beckley, DSD Carole Borrego,DSD Ray Cons, DSD Nancy Hieger, DSD Derek Horn, DSD Larry Litchfield, DSD Joanne Owens, DSD Lee Spivey, DSD Brad Walldorf, WSD John Watson, Fire Tauny Woo, EAS Ex-Officio's Present Jim Baughman, Planning Michael Hamblin, Law Chaun Hill, Streets Patrick Ravenstein, NSD Derek Horn, DSD Aaron LaRoque, Water Services Ex-Officio's Absent None Others in Attendance

CALL TO ORDER
Barbara Koffron, DAB Chairperson, convened the meeting at 3:08 p.m.

Approval of November 17, 2005 Minutes:
Motion was made by Scott Mardian, seconded by John Hart, to approve the meeting minutes of November 17, 2005.
Herb Hacker stated that on Item No. 6 “and staff” should be added to the statement and read as follows:
Ms Koffron commended the DAB Technical Subcommittee and staff for meeting and doing such an excellent job with the amendments.

Motion was made by Bernie Deutsch, seconded by John Hart, to approve the meeting minutes of November 17, 2005 with the above change.
Motion carried unanimously.

Call to the Public (No Board Discussion):
None

SUBCOMMITTEE REPORTS:
Process & Procedures
Ben Barcon reported that this subcommittee met on Friday, January 13, 2006. The subcommittee reviewed statistical information that has been submitted to the DAB by Derek Horn. This report included the number of permits, number of plan reviews, number of pre-submittal meetings, etc. that Development Services produces. The subcommittee went over the format and discussed the report in more detail.

They also discussed the procedure for electronic job files. Development Services Department (DSD) is moving toward the electronic submittal of documents and would like to start a pilot program. Further details of this information are to follow in the minutes.

Fiscal & Performance
Scott Mardian stated that they did met and received presentations by DSD staff on fee definitions. The goals to create the fee schedule more uniform and have them available in the internet.
Muni-Financial also made a presentation to the subcommittee regarding DSD’s reserve fund and the maintenance of the fund.

Water Services Subcommittee
Carlo Gegan stated that the subcommittee did not meet.

Residential Fire Sprinklers
Ken Roth stated the Fire Safety Advisory Board is still reviewing this issue. He stated the Fire Safety Advisory Board is still working with the Homebuilders Association on this issue..

Technical
Pete Hemingway reported that they did not meet.

Discussion, Information, and Possible action on the Development Services Department Fee Schedule and Fund Balance Study:
Jim Seagraves, Principal Consultant, Muni-Financial, reported on the first draft of their studies that they have done on the review of DSD’s Special Revenue Fund and the review of DSD’s Fees and Fee Methodologies. He presented a Power Point Presentation to the Board and explained their findings.

Mr. Seagraves stated that currently the Special Revenue Fund is running a bit over 50% of the annual revenues, which has not been true historically. One of things Muni-Financial studied is whether or not this is a reasonable size, given the possibility of an economic downturn in the area. The history that was studied does not show any period where DSD experienced lower revenues from year to year. Mr. Seagraves stated they examined what is a reasonable amount for DSD’s Reserve Fund, so that DSD can continue operations throughout an economic downturn, survive it, move on, and recover.

Mr. Seagraves stated that the base case of the Special Revenue Fund moves in interesting patterns. Even through the revenues change in the trend averaging about 9% to 10% a year, by 2011 base case, DSD’s Special Revenue Fund has gone up to almost to 40 million and has gone back down to about 25 million. This fund has served it purpose and has been a cushion for DSD’s survival of slow periods and recovered.

Mr. Seagraves stated that if some of DSD staff relocated to another location would probably cost more using this fund than continuing to lease City Hall space. Also, the Special Revenue Fund is very sensitive to traumatic changes in revenue, along with traumatic changes in expenditures. Based on his analysis and reviewing the Special Revenue Fund, it is his conclusion that the Special Revenue Fund has about 50% of expenditures and is the safest place it could be, in DSD’s perspective. Mr. Seagraves also suggested an annual review of DSD fees, which would keep DSD closer to annual costs. He mentioned that after his review, that DSD looks a lot like an Independent Enterprise Fund.

Ben Barcon asked the difference between an Enterprise Fund and the way DSD is currently operating. Mr. Seagraves answered by saying in an Enterprise Fund, the Special Reserve Fund, would be totally DSD’s with discretion. Currently the way DSD is funded, the City still has the legal right to interfere with the Special Revenue Fund. Herman Orcutt suggested that DSD look into the Enterprise Fund, rather than using the Special Revenue Fund. Cindy Stotler stated she would like to take this information to the Budget Director and the Finance Director and see if they’re interested in something like this for DSD. Ms. Stotler will report back to the Board on this issue. Mr. Hart asked Mr. Seagraves how many city building departments were using an enterprise fund and his response was none that he knew of.

Lorelle Moe, Analyst II, Muni-Financial, stated that they did a fee study and did a comparative analysis. They were interested in finding the best practices and methodologies that other cities use, compared with Phoenix. They surveyed the cities looking for a method or model that was dependable, equitable to all customer classes, user friendly, and is 100% cost recoverable.

He introduced Bob Goodhue, as the new Assistant Director in the Development Services Department. Mr. Goodhue has replaced Jon Wendt and began his duties as Assistant Director on Tuesday, January 2, 2006.

Update, Discussion, and Possible action on the City of Phoenix Sewer Capacity:
Ray Quay, Assistant Water Services Director, stated that there are several areas around Phoenix that are experiencing issues in terms of the capacity of the existing sewer systems. In 2004 a 64 million-dollar program was approved by City Council to being to resolve those issues. Mr. Quay displayed a map of Phoenix showing the areas still of concern to the City, along with the areas that the problem has been resolved.

Currently the developers that are building in the areas of concern are being asked to come to the Water Services Department to review those issues. Substantial progress has been made, but to correct all areas will take some time.

Mr. Quay mentioned that an extensive amount of information is available on the City’s website. The original map of the areas, along with an updated map is available to view. All forms and indemnity agreements are available as well.

Discussion, Information, and Possible Action on the Amendment of the Height and Zoning Ordinance for Phoenix Sky Harbor International Airport / Overlay District Development:
Stephen Grubbs, Planner II, Aviation Department, presented a brief power point presentation regarding the amendment there existing height and zoning ordinance. Mr. Grubbs stated that the Height and Zoning Ordinance has not been amended since 1971. The airport has been working on updating this, but only includes one area. This area is just west of the Airport that they labeled the Downtown Zone. The boundaries are 7th Street to the East, Filmore to the North, 7th Avenue to the West, and Lincoln Street to the South. This is only a one square mile area that they would like to amend.

Mr. Grubbs explained the Downtown Zone Map, which is divided into 15 areas. Each area is indicated by the maximum building height. Maximum building height includes all rooftop appurtenances, obstruction lights, lightning arresting devices, etc.

Mr. Grubbs stated that this issue would be taken to the Planning Commission also known as the Airport Zoning Commission, along with City Council in February 2006. This was taken to the Central City Village Commission, and they passed it with a split vote.

Presentation, Discussion, and Possible Action on the Development Services Department Action Plan for Electronic Job Files:
Deneé McKinley, DSD Development Center Administrator, introduced Nancy Hieger, DSD Central Log-In Supervisor; Lee Spivey, Counter Supervisor; and Chris Null, DSD User Technology Specialist, as the DSD Team working on the Electronic Job Files Project. Ms. McKinley stated that DSD initiated a staff committee about nine months ago called, “Electronic Plan Review.” Staff has been working on developing a variety of pilot programs, as well as looking long term into actually have plans submitted electronically and completing the review totally on the computer.

Nancy Hieger, gave a brief power point presentation on Electronic Job Files. Ms. Hieger stated that Central Log In has began a pilot program to accept job files on a compact disc. This pilot program began January 15th and will continue through March 15th. This will assist the customers in a quicker more efficient in submitting the plans at Central Log In along with eliminating lost or misplaced files.

Ms. Hieger stated that job files accompany the building plan submittal, which usually contain specifications, soil reports, structural calculations, and details in customer correspondence. The benefits of this program would be the reduction of paper files and increased space in the plan review record retention areas. All submittals will be completed at the Central Log In Counter located in City Hall on the 2nd floor.

Ms. Hieger stated that they are asking for DAB support and asked to form a DAB Electronic Plans Subcommittee to study this new process.

Update, Discussion, and Possible Action on the new “DAB Project Simple Subcommittee”:
Bernie Deutsch stated that “Project Simple” is back and a new DAB Subcommittee has been formed. The three major issues that this subcommittee wants to address are; training, cultural change, and the process of cultural change. He will be doing a short presentation at the next DAB Process and Procedures Subcommittee meeting and will report back to the DAB at their March 2006 meeting.

Discussion, Update and Possible Action on the City of Phoenix Fire Codes:
Ms. Koffron stated that the Fire Code will be passed on to the full City Council. A date has not be set yet as to when it will be placed on their agenda. All Fire Code information is available on the City of Phoenix website.

Update, Discussion, and Possible Action on the Phoenix Building Code Outreach Training:
Tom Wandrie stated that DSD conducted an outreach program that was very well received and another program is being scheduled for Tuesday, February 28, 2006 at Civic Plaza. Recent city code amendments, items on the new code, and fire code amendments will be discussed. DSD will be partnering with the Fire Department to assist with the fire code issues. DSD is expecting approximately 200 in attendance.

Discussion Regarding Future DAB Agenda Items: