Why Would Bellaire Pay Over $400,000 For Contracts For Building Officials?

Update 1/7/21: Council approved the very expensive contracts for building officials because they had no other choice. The current contract for that service expires the end of January.  We also discovered that the expensive Department director and recently hired assistant director don’t have the skills to do the job of a building official or for plan review service. In what used to be called the Inspection Department.   

We can’t seem to hire building officials, though Safebuilt apparently can, but we can manage to fill a vacant FTE position for an assistant director in Development Services.  The discussion ended with Council instructing Interim City Manager Brant Gary to post listings for a building inspector and an official for plan review services.  But based on past history, how long does the I-CM have to effect these hires? He had plenty of opportunity to move in this direction much earlier, but instead chose to promote these costly 9-month contracts.

Why did we reach this point?  What happened to fiscal responsibility?


Original Article

For some reason the City of Bellaire has chosen not to hire, or even attempt to hire, building officials. Instead, at the January 4, 2021, meeting Council will consider two 9-month contracts totaling $407,250 with an outside vendor.

Both contracts are with Safefbuilt LLC, based in Colorado.  One agreement is for building inspection and plan review services with an estimated amount of $227,250 for a period of 9 months. If you are keeping count, that’s over $25,000 a month.  (I added the red boxes to items of interest in the agreements.)  The cost for one year could run $303,000.

Click to View Fee Schedule

A second agreement is for Building Official services with an estimated amount of $180,000 for a period of 9 months.  The fee schedule at for this agreement clearly states $20,000 per month.  

After the initial 9-month contracts both agreements allow for two subsequent one-year renewal options upon mutual agreement of the parties and the approval of City Council.

Find the Agenda statements, Development Services presentation, Safebuilt Request For Proposal, and the proposed agreements here.  (The red boxes are my addition.)

What’s Going On?

Somehow the annual budget amounts for Bellaire building officials for a 12-month period, $117,000 and $96,000 according to interim City Manager Brant Gary’s Agenda Statement, have morphed into $407,250 for 9 months. The City Budget was approved this past September.

Click to view

To be clear, at this rate the initial 2021 budget estimate of $213,000 for two building officials could now cost over $500,000.  

Safebuilt Texas LLC is the first choice of only two applicants.  By my reckoning that’s not much of a choice.  More to the point, why is Bellaire even shopping for contracted services?  Is there some sort of prohibition on the City hiring building officials?  That has always been the standard in Bellaire, why did it change? 

Coincidentally, Safebuilt is already involved in the Bellaire operations, for $7,200 a month.  This is from ChaVonne Sampson, the Director of Development Services, “in the interim the Building Official is Kurt Kasson,  CBO, TCFP with support by Lee Swain, ICC Combination Residential/Commercial Inspector. Both are with SafeBuilt with a monthly fee of $7,200.”  

Why isn’t Bellaire posting positions for building officials on our City website, just as other cities do?  Safebuilt LLC seems to think they can find the necessary personnel, since they are posting online listings for Bellaire Building Officials.

Listings on Glassdoor for Bellaire Building Officials
Listing on Indeed for Building Officials – Bellaire

Some Background on Safebuilt LLC

At this time there is no website for Safebuilt Texas LLC, and no local address. An address on Sandy Lane in Fort Worth tracks to Winston Services, a company acquired by Safebuilt LLC. 

Safebuilt LLC, based in Loveland, CO, is the parent company.  Thomas Wilkas, the CFO with Safebuilt who would sign off on these agreements, is located in the Denver area. Most of the staff listed in the RFP included in the Council agenda (pp 35-63 of the pdf) have been with the company for two years or less.  Kurt Kasson, currently serving as the Bellaire building official, joined SAFEbuilt in March of 2020.  Lee Swain joined Safebuilt in 2018.

What’s The Problem?

Why would Council consider paying $407,250 to a Colorado company when we live in the fourth largest city in the country?  We can’t find employees here? Or at least area contractors?

At the contracted rates of over half a million dollars a year as suggested in these agreements, Bellaire could hire four (4) full-time City employees at the higher rate of $117,000 per year and still have money left over!  

By comparison, a list of seven employees in Bellaire’s Development Services shows just one permit technician and zero building officials.  Our neighbor, West University Place, currently employs two building officials and two permit technicians in their staff of seven, plus an urban forester.  Two similar sized cities next-door to each other.

If Bellaire is simply unable to attract qualified applicants for job openings, then we need to know why. The City is centrally located, pays well, and offers many benefits.  Are there internal problems that need to be addressed?  Outside factors or interference that affect employee performance and the ability to attract and retain solid applicants?  

What about the Development Services Department?  Are there problems in the department that could be addressed?  With only one permit technician and no building officials listed, what are the job descriptions and responsibilities of the rest of the current staff? Are the needs of the community being met?

Fool Me Once…

How can the City justify $400,000 for just 9 months of service, for two positions, to an out-of-state company?  A company over which the City has no control?  Recent events should be a warning to City Council to tread carefully with companies that are new to the City. 

And what’s going on in Bellaire?  Vehicles leased instead of purchased, a proposal submitted to the GLO to demolish our wastewater treatment plant and outsource our sewage treatment to Houston, and now contracts to outsource our inspection and plan review services to someone in Colorado.  Zoning that caters to commercial development over residential areas. (Ref the UV-D, the CMU, and now the proposed NBSDD for the old Chevron property.)  

The chart of comparable sized cities is from the Texas Comptroller’s office.

Annual revenue from property taxes has remained essentially flat for the past three years, at around $20.5 million per year. The City’s bonded debt per capita is one of the highest in the state, but future bond issues may be required and are still being discussed. This would seem to be a time to slow down City spending, not increase it.

There are consequences to change, and not always for the better.  Years ago when I worked as a realtor in Bellaire I was surprised to discover that buyers new to the area thought that Bellaire was part of Houston.  I would explain that Bellaire was a full-fledged independent city, with our own municipal services and very protective of residents. 

But now, with a trend towards outsourcing, privatization, and commercial development, will home buyers continue to feel that Bellaire is a well-managed small town?  Or will our image and reputation as an independent city of homes suffer from these changes?

 


Of interest as noted in the Agenda statement, under Sec. 252.022 of the Texas Local Government Code, “contracts for personal, professional, or planning services” are exempt from the requirements of competitive bidding.

Find the entire 12-21-2020 City Council agenda here.
Listen to the meeting here.

Agenda for January 4, 2021 – Telephonic Meeting @ 7 PM


Email the Mayor and City Council via our City Clerk, Tracy Dutton, at tdutton@bellairetx.gov and request that your email be forwarded to them.

Total outstanding bond debt on 9/30/2020 stands at $116.4 million.
$6 million in bonds remain unissued. 

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