Public Works Design Review Fees - Bernalillo County

Roger Paul, Technical Services Department Director, Public WorksKevin Grovet, Development Review Manager, Public WorksTiequan Chen, Engineer, Public WorksDeanna Miglio, Right of Way Manager, Public WorksWe performed the following test work:We gained an understanding of the design review process and how the cost spreadsheet wasprepared by walking through the process with the personnel involved.We tested the spreadsheet for reasonableness based on our understanding of the tasksinvolved, the salaries and benefits of the personnel involved, and the amount of overheadallocated to each direct labor hour. Based on our analysis of the spreadsheet provided byPublic Works, the estimated cost for the design review process is approximately $762 for thetypical project.We obtained a listing of all utility construction projects that required a design review to beperformed in the last two years (October 1, 2010 through October 31, 2012). There were 67projects during this time, or approximately 34 per year. We used this historical data tocompare the amounts actually received to what would have been received with the $250 flatfee structure and with a cost recovery fee structure.EstimatedProjectsper yearDesignReviewFeesEstimatedDesignReviewCostsVariancePrevious Fee Structure 34 $ 11,717 $ 25,908 $ (14,191)$250 Set Fee Structure 34 $ 8,500 $ 25,908 $ (17,408)Cost Recovery Fee Structure 34 $ 25,908 $ 25,908 $ -RECOMMENDATIONS AND MANAGEMENT RESPONSESThe following are suggestions for improvement relating to the Bernalillo County Public Worksfee processes:1) Actual Cost and Time TrackingThere was not a process in place to capture and track the actual time and costs incurred in thedesign review process. The department collects other fees for various services provided to thepublic and there was no tracking done to determine the actual cost incurred. In order to gain abetter understanding of the actual time spent and costs involved in the various processes, thedepartment should monitor and track actual time and costs incurred for a couple months. Thiswill allow the department to better understand the actual cost associated with each process andupdate the fee schedules accordingly.2