Planning & Building Safety – April 2019
Construction – For the month of March in Fiscal Year 2018-2019, construction in El Segundo shows a decrease in permit and plan check revenue compared to February 2018 figures. Permit valuation for March was $10 million, compared to the prior year of $15.1 million. The total revenue of $371,000 for the month of March is 26% less than the prior year. Although there is a decrease for this month, when looking at the total revenue Year to Date, the numbers indicate a moderate decrease of 15% below its previous years at $1.85 M. The decrease in revenue was anticipated as the result the lowering of the plan check and permit fees (from the fee study) for commercial projects that went into effect in September 2018.
Future Construction Activity – Plan check revenue is reported every month as an early indicator of future construction activity. Plan check fees are paid when the project first comes to us for plan review which can be weeks or months before permit issuance and commencement of construction. Plan check figures are a good indicator of future workload. The month to month plan check revenue shows a 23% decrease, which is consistent with the Fiscal Year to date decrease of 28%. There are two possible reasons for this decrease. First, plan check and permit fees were reduced for commercial projects last year. Second, there has not been any large projects in the first quarter of the Fiscal Year, but we are anticipating to catch up with upcoming bigger projects.