Posts

How to improve the Permit Services Department in Ventura

How The Permit Services Department Can Improve Building Code Enforcement

Thomas Jefferson would have found Permit Services tyrannical

When government fears the people, there is liberty. When the people fear the government, there is tyranny.”

Thomas Jefferson

Permit Services Wraps Property Owners In Red Tape

It’s true what they say, “The more things change, the more they stay the same.” At least, that’s the case within Ventura Permit Services Department.

Nine years after the Ventura Grand Jury ruled that Ventura’s Code Enforcement Division was too aggressive, change has been slow in the Permit Services Department. So much so that during the 2020 City Council elections, three candidates ran on platforms to improve the department’s behavior. Now the City of Ventura believes that things will get better if it follows the consultant’s report titled the Matrix Report. However, those changes don’t go far enough. There needs to be a change in the philosophy within the department to make meaningful changes.

How Residents Interact With The Permit Services Department

One way to get involved in Ventura’s code enforcement is through the building and safety portion of the Permit Services Department. When a property owner applies for a building permit to perform some work to build or make home improvements, plans are required, and once a property owner starts the process, complications and delays begin.

For simple tasks, the owner pays a scheduled fee and the city issues a permit. An example of an easy job is replacing a water heater. After installing the heater, the property owner calls for an inspector.

A second way that owners can enter the system is through the involuntary Code Enforcement branch of Permit Services. In this scenario, someone complains about what the property owner is doing and calls City Hall and a code enforcement officer arrives on the scene to investigate the complaint.

The Process Breaks Down

It was clear to residents that a problem existed in 2012. Camille Harris, a concerned citizen, presented solutions to the city’s unfair code enforcement practices on CAPS TV. The feeling among residents was to avoid the building process as much as possible.

The 2011-2012 Ventura County Grand Jury opened an inquiry into the City of Ventura and its Code Enforcement Department’s practices and fee policies. At the time, many citizens complained of aggressive enforcement actions, verbal threats from code enforcement officers, unauthorized searches, threatening documents, preferential treatment, and an unfair appellate system. The Grand Jury condemned these code enforcement practices.

Changes within Ventura Code Enforcement Since 2012

The consultants made several recommendations in the Matrix Report. Click here for a complete listing of the changes.

Structurally, personnel and the department have changed. The Planning Department is now the Permit Services Department. Jonathan Wood is the Permits and Enforcement manager, and he oversees both permit issuance and code enforcement. Mr. Wood reports to Peter Gilli, the Community Development Director. In turn, Mr. Gilli answers to Akbar Alikhan, the Assistant City Manager. (see the Organization Chart)

Permit Services Organizational Chart

What Hasn’t Changed With Ventura Permit Services

By the end of June, the city will have completed 50% of the recommendations in the Matrix Report. Despite that, several things remain troublesome within Code Enforcement and Permit Services.

  • To residents, Code Enforcement and Permit Services appear to be punitive. For 40 years, department managers have said, “We work with people to make it user-friendly.” However, that statement is no more than ‘lip service.’ In reality, inspectors act as if they were police officers. They flash an official badge and demand entry, or they will get a warrant—the same behavior listed in the Grand Jury report. Several property owners told us disturbing stories. In some instances, one or more code enforcement inspectors arrive on-site uninvited. They videotape the scene and then write the property owners up.
  • Code enforcement employees defend their actions by saying they are looking out for everyone’s safety by enforcing state building codes. They didn’t create the regulations; they enforce them—the Nüremberg Jonathan Wood leads the Permit Services Departmentdefense.

When asked about judgment on the job, Mr. Wood puts it this way. “If there are areas with no life safety concerns that we can refer to the spirit of the law through common sense and judgment, we will.” Yet, we heard stories to the contrary. Property owners told us about inspectors that enter older buildings. They try to apply current building standards to them instead of researching the building standards at the time of construction.

It’s Not Easy To Protest

Protesting an accusation is difficult, time-consuming and frustrating. Once Code Enforcement receives a complaint, they assume the property owner is guilty until proven innocent. This mindset is contrary to the legal system in our country.

Inviting New Problems Into Your Home

Permit Services InspectorPermit Services still uses intimidation as a weapon. For example, the property owner calls for an inspection after installing a water heater replacement. The inspector arrives to make sure the water heater is hooked up correctly, the gas connection is correct, and the heater is strapped for earthquake protection. While there, the inspector looks for other building issues such as electrical, gas, venting, unpermitted structures, and more. If they see something, then off it goes to Code Enforcement. The homeowner soon receives a letter demanding corrections and threatening penalties unless the property owner makes changes within a limited time.

Permit Services Turns Neighbor Against Neighbor

Ventura Permit Services relies on snitchesComplaints drive almost all the code enforcement investigations. Reacting to accusations leaves little time for inspectors to discover infractions on their own.

Code Enforcement now forbids anonymous complainers. Anonymous informants were a source of irritation to property owners in the past. Yet, even if the informant identifies himself, it doesn’t prevent mischievous acts. One individual complained about a downtown business. It turns out the complainer owned a competing company and didn’t want his competitor to get an advantage.

Fear of Retaliation and Horror Stories

We heard many horror stories researching this topic, yet we cannot write about them because the property owners feared retribution or retaliation. Inciting fear seems contrary to creating a cooperative environment to improve the city. One theme was universal among the people we interviewed. No one sees a change in the mentality in Permit Services.

The Building and Planning Process Gets Longer

In the recent past, it took about 90 days to get a construction permit in Ventura. Today, it could take years. One contractor put it this way, “Ventura takes homeowner’s dreams and crushes them.”

Permit Services slows down construction plan approval

More Promises of Change in Permit Services

Changes are happening, but will they be enough? Two examples in 2020 illustrate some possible deficiencies.

First, the Matrix Report recommends that the city digitize its planning and permitting processes.

When COVID-19 hit, the city accelerated the conversion to digital. With change come problems. There was a two-month period when the system misplaced plans. Residents might tolerate hiccups during the conversion under normal circumstances. But this delay affected homeowners rebuilding after the Thomas Fire. The City Council promised the victims a speedy return to their homes. This delay was contrary to the Council’s stated intent.

Second, the city decided to streamline the communication process with Permit Services. The idea was to limit the points of contact to the department. For example, there is now only one telephone number and one email address to reach Permit Services. City managers thought a single point of contact would make communicating more straightforward. Yet, it has had the opposite effect.

Triaging the incoming communication can be slow. Then, when assigning the case to a caseworker, they will have to rank the request based on their workload. To anyone outside the department, the situation is not transparent. The name and contact information for the caseworker isn’t known until that person contacts the property owner. There are also times when a case isn’t assigned immediately, and it sits in limbo. With only one phone number or email, it’s impossible to follow up.

Editors Comments

Nine years ago, the Ventura Grand Jury recommended changes in Ventura’s Permit Services Department. Today, the city is making changes slowly. Unfortunately, stifling regulations, protracted processes and fees provide property owners no compelling reason to improve their properties. Little wonder that property owners are skeptical if any lasting change will happen at all. As a result, development in the city has been slow and difficult. Some victims of the Thomas Fire still are not returned to their rebuilt homes. That is unforgivable.

Permit Services rejoices at completing half the Matrix ReportThe city is implementing the Matrix Report. Yet, according to the timetable, the implementation will be 50% complete at best at the end of June 2021. And nothing in the Matrix report addresses the core problem: the attitude within the department.

The current philosophy in Permit Services is that the employees are there to enforce the rules—like the police force. Enforcement officers and inspectors carry badges and threaten penalties and fines as if they were the police. Nothing in the current process encourages the property owners to want to get permits and to have a qualified inspector look at what they are planning to do. That’s a shame.

If the department changed their attitudes ever so slightly to work with people and make the permitting and building process user-friendly, citizens wouldn’t fear working with Permit Services.

Seriously Consider Another Option

Some residents have suggested a citizen’s board or commission to oversee Permit Services. This idea would only create another bureaucratic and ‘toothless’ political group that the city staff will marginalize.

Any Board or Commission still does not alleviate the fear of retaliation. There must be anonymity.   The city needs an independent body, not controlled by the City Council, but with some ‘enforcement power.’ The details of such a body are not precise, but there is a model of an independent body called the ‘Long-Term-Care Ombudsmen program’ that creators can emulate and modify. Property owners could appeal to a state agency in case of a dispute. A single hearing could rectify abuses and award punitive damages.

Now is the time to act before the city loses focus on making the needed changes to Permit Services.

Demand The City Council Makes Meaningful Changes To The Permit Services Department

Below you’ll find the photos of our current City Council. Click on any Councilmember’s photo and you’ll open your email program ready to write directly to that Councilmember.

Didn't receive money from the Ventura Fire Department Received contributions from the Ventura Fire Department
Mike Johnson received no money from the Ventura Fire Department Jeannette Sanchez-Palacios received no money from the Ventura Fire Department
Jim Friedman received contributions from the Ventura Fire Department Lorrie Brown is a Ventura Fire Department apologist
Joe Schroeder received no money from the Ventura Fire Department

For more information like this, subscribe to our newsletter, Res Publica. Click here to enter your name and email address.

 

 

Retirement Pensions Are Our #1 Problem (and what you need to know about it)

retirement pensions & will rogers

“It’s not what we don’t know that hurts us, it’s what we know that ain’t so.”

—Will Rogers

retirement pensions deficit nationwide

America’s significant retirement pension funds are underfunded by an unfathomable $4.2 Trillion, according to an August 6 Wall Street Journal article. Ventura mirrors this phenomenon. Ventura workers participate in the state pension fund, CalPERS—the largest in the country. CalPERS is only 71% funded as of June 30, 2018, despite a 10-year bull market and a growing economy.

Because of the chronic funding shortfall, CalPERs demands rapidly increasing contributions from all participating local governments. Ventura will have permanent increases of at least $2 million per year for five to six consecutive years.

We respect the work city employees do. There is no denying that fire and police preform a vital job that is both dangerous and requires a high level of training and responsibility. Our concern is not about their work. It’s about the structure by which their retirement is accumulated and paid after retirement.

It is undeniable that city employees’ retirement pensions are crowding out the city’s ability to provide the service itself. Moreover, chronic underfunding of pensions will eventually hit a breaking point jeopardizing benefits too. Something in this equation has to change.

 

CalPERS retirement pensions obligation

Retirement Pensions Today

Most state, county and local pension benefits are considered to carry a virtually iron-clad guarantee to the workers to whom they have been promised. Even the smallest attempts to alter future benefits—much less current ones—have been met with furious opposition. Workers’ representatives and also the plan managers themselves—like CalPERS—oppose changes. That opposition has been mostly successful. Governments at all levels are hamstrung between their duties to provide on-going services to their citizens and their ever-increasing financial obligations to pension funds. In the State of California, once one hires an employee, their retirement cannot be changed.

A typical city employee would receive a pension almost the same as his or her working salary if they participated for their whole career. In the case of many public safety employees, their retirement will last longer than their employment as they are fully vested in their retirement pensions by age 50 or 55. For so-called “miscellaneous” employees (all others) the retirement age is higher, usually 62. Nevertheless, the years in retirement can still equal or exceed those worked.

Discussions about pensions get emotional because we’re talking about people’s future and security. What gets lost in the arguments is this. The law and politics guarantee retirement pension benefits, but not the actual returns on investments. There is no separate investment market for pension funds. All investment pools, large and small, invest in the same markets. The myth is that pensions are safe. They are not. The difference is that taxpayers pick up the difference between reality and what politicians promised.

Unprecedented Bull Market

For the past ten years, since mid-2009, there has been an incredible bull market in stocks. CalPERS has posted many good returns during those years. However, Ventura’s pensions are underfunded by $215.1 million. For far too long, pension promises have been at levels far beyond what the real markets can provide.

 

Ventura's specific retirement pensions problem

 

What Can We Do To Fix Retirement Pensions?

Politicians have made many attempts to improve the current system, but none have addressed the problem in a meaningful way. CalPERS does offer one solution: Cities can buy out of the system—technically—but the costs are so enormous that no municipality can realistically consider that an option. It’s no accident, of course. CalPERS’ onerous payment demand to end participation is designed to be a straight-jacket. As of June 30, 2017, for the City of Ventura, the amount required to get out of CalPERS is $1.254 Billion.

League of California Cities and Government Finance Officers Association recommended actions to confront unsustainable pensions.

  1. Reduce the unfunded liability by making annual catch-up payment even more than CalPERS instructs you to pay—if you can afford to pay more.
  2. Raise taxes
  3. Reduce services
  4. Require voter approval of any pension obligation bond, or POB.

Pension Obligation Bonds Explained

A city issues a pension obligation bond to pay down the unfunded pension liability. The POB converts the pension liability into a fixed rate of return. There are considerable underwriting costs when issuing a POB. The city invests the money received from the bond into higher returning investments, usually in the stock market. The central idea is that the stock market investments will produce a higher return than the fixed interest rate on the bond, thereby earning money for the pension fund.

A POB creates debt to pay off debt. Such a bond is essentially a gamble with public money. Simi Valley is considering issuing a POB, and Ventura might follow suit if Simi Valley is successful.

The League of California Cities and Financial experts, including Government Finance Officers Association, strongly discourage local agencies from issuing Pension Obligation Bonds (POBs). This approach (going into debt to pay off debt) “only delays and compounds the inevitable financial impacts.”

These are terrible choices for the public.

What The City Council Might Do To Reform Retirement Pensions

retirement pensions superheroThere are two other choices for our City Council to consider if they have the political will to do anything about this crisis that will cripple the City of Ventura.

  1. Make beneficiaries pay more. With the city covering 100 percent of the unfunded liability, the problem will continue to grow. There will be minimal reforms because the actuarial losses fall on the taxpayer. Capping the employer contribution at a fixed percentage of salary would cut pension costs for the city. As pension costs increase over the years, the employees will pay all the costs associated with the growth.
  2. Change when retired city employees may begin collecting pensions. This alternative solution applies to new employees only. What if police and fire could fully vest their generous pensions by age 50 or 55, as they do now, but the payments did not start until age 65? Why would that help? The reason is that even if the city makes no further contributions, the fund will have ten more years to grow. At current official pension growth rates, that would more than double the value of that fund over those ten years. Also, the retirement payment period would be ten years shorter, given the same life expectancy. Such a system would still offer retirement security, but it would start at what most of us consider average retirement age.

social security retirement pensionsPublic sector employees may resist the changes but think about it. Private sector employees don’t get their full social security until 65 or even 67, depending the year they were born. Moreover, Social Security is only going to be one quarter to one-half of your working earnings.

Editor’s Comments

Even with an unprecedented bull market, Ventura’s unfunded pension liability grew over the past ten years. During such a period, one would expect the excess liability to at least shrink some.

Instead, the pension liability is growing faster than market returns can ever expect to make up. CalPERS annual demand will now permanently increase by about $2 million per year for the five to six years and then stay there. There is no assurance it will not increase even further in the future. Something has to change. Otherwise, the city will either cut back needed services, raise taxes, or both.

Past retirement pension negotiations were based on union bargaining and raw political power, creating a gap between what politicians promised and what cities realistically can pay. We offer some solutions, but it will take political will to bring the retirement benefits back to reality. Changing the system is the only way these promised benefits can be truly sustainable and dependable for retirees. It’s also the only way that taxpayers can afford to pay for them.

Demand Retirement Pension Reform

Below you’ll find the photos of our current City Council. Click on any Councilmember’s photo and you’ll open your email program ready to write directly to that Councilmember.

Councilmembers
Councilmembers
Councilmembers Councilmembers

For more information like this, subscribe to our newsletter, Res Publica. Click here to enter your name and email address.