HomeMy WebLinkAbout05-07-2019 Item 07 - Online Electronic Transaction fee
Department Name: Community Development
Cost Center: 4006
For Agenda of: May 7, 2019
Placement: Consent
Estimated Time: N/A
FROM: Michael Codron, Community Development Director
Prepared By: Eric Hagen, Chief Building Official
SUBJECT: ELECTRONIC TRANSACTION FEE OF $0.10 PER TRANSACTION TO BE
PAID BY ON-LINE USER/PAYER
RECOMMENDATION
Approve an electronic transaction fee of $0.10 per transaction on fees associated with online
Community Development Department Payments to be paid by the payer.
DISCUSSION
As part of the 2017-19 Financial Plan, a Capital Improvement Plan (Attachment A – Electronic
Plan Submittal – 17-19 Capital Improvement Plan) was approved that includes the development
and implementation of a process for electronic submittal and review of development services
applications and plans. This project was driven by the need to help manage workloads, providing
easy and accessible services to customers, keep technology current, and streamline business
processes. The focus is to implement additional features and capabilities of the City’s permitting
software (EnerGov), which includes E-Review and E-Permit Solutions.
The Tyler Technologies online portal, Citizen Self Service will allow customers to access City of
San Luis Obispo EnerGov permits and plans remotely, submit applications online and schedule
inspections online. This implementation will also allow online payments which extend to other
fees currently collected with EnerGov permitting software. Currently all payments are done via
telephone, mail-in, or over the counter. Online payments will allow customers the convenience to
pay from home instead of coming to the Community Development Department in person or
spending money on postage. In order to collect payments online, the Tyler Technologies ‘My
GOV Pay API’ needs to be connected to a payment system. Vendors recommended by Tyler
Technologies included Bridgepay and Persolvent. Bridgepay was selected by the Finance
Department as it is the most compatible with the current workflow.
The online transaction gateway company, Bridgepay, charges a $0.10 fee per transaction. In
order to move forward with this CIP, the Community Development Department must decide
whether the additional fee will be incurred by the customer or by the City. Because of the Fiscal
Health Response Plan and the benefits that the customer will receive from being able to do
online payments, staff recommends passing this cost along to the customer. This decision is
consistent with other City departments that have already implemented on-line payment systems.
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Previous Council or Advisory Body Action
This project was identified in the 2017-19 Financial Plan that was approved by Council.
Policy Context
This project is in line with the Major City Goal of Fiscal Sustainability and supports economic
development by reducing overhead in the permitting process. If the payer incurs the $0.10
transaction fee, there will be no fiscal impact to the City. The customer is saving postage cost
and/or travel costs by choosing to use on-line payments.
Public Engagement
Public engagement was done during the initial identification of this project to be included in the
2017-19 Financial Plan.
CONCURRENCE
There is concurrence from the Community Development Department as part of the proposed
electronic submittal program. This project also has concurrence from the Information
Technology Division. The proposed program is consistent with other City departments that have
already implemented on-line payment systems.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this
report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15278.
FISCAL IMPACT
Budgeted: No Budget Year: 2017-19
Funding Identified: No
Fiscal Analysis:
This project is in line with the Major City Goal of Fiscal Sustainability and supports economic
development by reducing overhead in the permitting process. If the payor incurs the $0.10
transaction fee, there will be no Fiscal Impact to the City. The customer is already saving on
postage or travel costs by choosing to use online payments. The $0.10 transaction fee is a small
additional cost for the customer convenience considering some payments can be upwards of
$50,000. The City’s Budget Policies call for 100% cost recovery for activities associated with
permit issuance. The recommendation before the City Council supports this cost recovery policy.
If approved, this fee will be added to the City’s master fee schedule.
ALTERNATIVES
Designate the City to incur the $0.10 fee per transaction. This alternative is not recommended because
it is necessary to pass the cost on to the customer to achieve the City’s cost recovery policy objectives.
Attachments:
a - 2018 40600 Electronic Plan Review (Project #91862)
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CAPITAL IMPROVEMENT PLAN – COMMUNITY & NEIGHBORHOOD LIVABILITY
ELECTRONIC PLAN SUBMITTAL - FY 2017-19
Project Description Community Priority
☒ New IT Request ☐ Major City Goal & Other Important Objectives
☐ Measure G Priority
Purpose and Need
The project includes development and implementation of a process for electronic submittal and review
(E-Review) of development services applications and plans. This would be an enterprise solution that
would include the divisions that review and mark up development plans as part of the development
review process (Community Development, Public Works, Utilities, and Fire).
This request is being driven by the need to help manage workloads in addition to providing easy and accessible services to our customers, to keep
technology current and to streamline our business processes with automation to ensure efficiency, and help promote accountabi lity and transparency.
Further, the State of California requires building departments to accept electronic submittals for certain permits to streamline and expedite these permits.
Our customers have also expressed a sincere desire to save substantial expenses in printing multiple submittals, and staff expenses for transporting the
paper submittals.
This request supports the long standing Major City Goals: Housing, Climate Action, Multi-Modal Transportation, and Fiscal Sustainability and
Responsibility. 1) Housing – This project will facilitate the increased production of all housing types through reduced costs in printing plans and
facilitating a more efficient review process. 2) Climate Action – This project will reduce the City’s carbon footprint by reducing the number of trips
required submit plans an obtain the required building permits. 3) Multi-Modal Transportation - This project is an alternate for transportation by
remotely interfacing with the City to initiate and continue the plan review process without visiting a City office. 4) Fiscal Sustainability and
Responsibility – This project supports economic development by reducing overhead in the permitting process. This project is also a response to our
customers’ needs in establishing the capability of accommodating digital submittals and follow-up correspondence. Further, this project will facilitate
the capability of issuing non-review permits remotely and alleviating the workload at the front counter.
Status
This is a new project not included in the 2017-19 Financial Plan, however, the project is a part of Phase II of the EnerGov permitting software
implementation which is part of the current IT Strategic Plan. The focus will be to implement additional features and capabil ities of the EnerGov
solution such as enhancing the City's web site by implementing EnerGov Customer Service Solutions with gradual implementation. The approval of
this request would allow staff to implement the software licenses and hardware for an initial group of 12 key staff members t o develop the policy and
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CAPITAL IMPROVEMENT PLAN – COMMUNITY & NEIGHBORHOOD LIVABILITY
procedures. Upon completion of the electronic submittal solution staff will work with selected members of the community to te st the procedures for
efficiency.
The approval of this project will enable several process improvements and time saving measures when implemented. The approval of this request will
also provide the option for licensed contractors to obtain minor building permits, such as water heater replacements, HVAC replacements, roof covering
replacements, etc. through using the new E-Permit solution. The E-Review and E-Permit solutions will also allow online payments which extends to
other fees currently collected with EnerGov permitting software. Additionally, the project will provide real-time search capability for customers who
wish to obtain the status of permit applications, inspection results, and other requests. The project will help offset reduced staffing at the front counter
and improve counter operations at 919 Palm Street through a reduction in traffic and paper handling/storage.
Project Team
Lead Department: Community Development
Operating Program Number & Title: 40700 – Building & Safety
A project team will be assembled to ensure collaboration between all development services operating programs. The team will have representation
from Community Development (Development Review and Building & Safety), Public Works (Transportation and Arborist), Fire, Utilities, Admin and
IT.
Assignment Program/Work Group Estimated Hours
Design Dev Services Project Team 80
Process Development Dev Services Project Team 640
Implementation Dev Services Project Team 160
Training Dev Services Project Team 40
Maintenance Dev Services Project Team 8/yr
The initial phase cost of the project will be a one-time cost of $51,649 and an ongoing cost of $7,828 annually. Fiscal Year 18/19 cost are recommended
to be covered by over realized Development Services revenue. The ongoing cost are recommended to be covered by a 0.40% increase to the
Development Services IT Surcharge Fee.
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CAPITAL IMPROVEMENT PLAN – COMMUNITY & NEIGHBORHOOD LIVABILITY
Initial Projects Costs by Phase
Budget to Date 2017-18 2018-19 2019-20 2020-21 2021-22 Total
Construction (953) $4,000 $4,000
Equipment Acquisition (956) $14,400 $14,400
Computer Acquisition (963) $33,249 $33,249
Total $0 $0 $51,649 $0 $0 $0 $51,649
Ongoing Costs by Type
Budget to Date 2017-18 2018-19 2019-20 2020-21 2021-22 Total
Contract Services $7,828 $7,828 $7,828 $7,828 $31,312
Total $0 $0 $7,828 $7,828 $7,828 $7,828 $31,312
Project Funding by Source
Budget to Date 2017-18 2018-19 2019-20 2020-21 2021-22 Total
Development Services $59,477
$59,477
I.T. Surcharge $7,828 $7,828 $7,828 $23,484
Total $0 $0 $59,477 $7,828 $7,828 $7,828 $82,961
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