2012-3776 Ordinance I ,
ORDINANCE NO. 2012-3776
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, AMENDING SECTION
14-61 "PERMIT FEES"; SECTION 14-62 "BUILDING
PERMITS"; AND THAT PORTION OF APPENDIX A OF THE
CITY CODE BY MODIFYING INSPECTION FEES FOR
BUILDING, PLUMBING, ELECTRICAL, AND MECHANICAL
WORK, AND FOR OTHER BUILDING DEPARTMENT
ACTIVITIES; PROVIDING FOR REPEALER, SEVERABILITY,
CODIFICATION, AND AN EFFECTIVE DATE.
WHEREAS, on January 13, 2010, the City Commission adopted Ordinance No. 2010-
3670, modifying permit and inspection fees for Building, Plumbing, Electrical, and Mechanical
Work, and for other Building Department activities; and
WHEREAS, the Ordinance went into effect on February 1, 2010 and provided a
complete overhaul of the fee structure; and
WHEREAS, the City Administration has worked with the new fee structure since
implementation, and has identified a series of refinements to such fee structure that will help to
clarify and bring equity to certain types of permit applications.
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA:
Section 1. That Chapter 14 "Building Regulations", Article II "Construction
Standards", Division 2 "Permit Fees", Section 14-61 "Permit fees,
generally" is hereby amended as follows:
(d) Lost plans fee. When permitted set of plans are lost by the applicants, owners,
contractors, or any of their representatives, a recertification fee will be required to
reproduce, stamp and approve a new set of plans as a field copy. Such fee shall be
based on a cost per page as specified in appendix A, plus an $00.00 administrative
processing fee as outlined in appendix A.
(e) Revised plans processing fee. The charge for plans processing of revisions to a
permitted set of plans shall be based on the plan reviewer's actual review time
multiplied by the hourly rate as specified in appendix A, plus an $50.00
administrative processing fee as outlined in appendix A.
Section 2. That Chapter 14 "Building Regulations", Article II "Construction
Standards", Division 2 "Permit Fees", Section 14-62 "Building permits" is
hereby amended as follows:
(b) Refunds, time limitations, cancellations, .change of contractor. The fees charged
pursuant to the schedule in appendix A, provided the same are for a permit
required by Section 105.1 of the Florida Building Code, may be refunded by the
building official subject to the following:
(1) No refunds shall be made on requests involving:
a. Permit fees of$100.00 or less; or
b. Permits revoked by the building official under authority granted by the
Florida Building Code; or
c. Permits cancelled by court order; or
d. Permits which have expired; or
e. Permits under which work has commenced as evidenced by any
recorded inspection having been made by the department, unless the
refund is due to an overcharge by the city.
(2) A full refund shall be granted to a permit holder who takes out a permit
covering work outside the jurisdictional inspection area.
3 A full refund less the$5A�9 minimum up-front permit fee and an outside
( ) P P Y
agency fees shall be granted to a permit applicant who requests a refund
in writing, provided that no plan review has commenced.
A full refund less $100.00 or the up-front permit fee, whichever amount is
greater, rounded down to the nearest dollar, and any outside agency fees
shall be granted to a permit applicant who requests a refund in writing,
provided that a permit has not been issued.
A full refund less $100.00 or the up-front permit fee, whichever amount is
greater, rounded down to the nearest dollar, and any outside agency fees
shall be granted to a permit holder (to whom a permit has been issued)
who requests a refund in writing, provided:
a. That the permit holder makes a written request prior to the permit
expiration date; and
b. That no work as evidenced by any recorded inspection has
commenced under such permit.
Section 3. That Appendix A is hereby amended as follows:
Section this Description AFneun
code (Eff AmOUR
, ( festive
,
2010 thFough
Septembei: 30,
2010 mount
Effective
October 15,
2012
Division 2. Permit Fees.
14-61(b) Double fees for starting work prior to issuance of
permit, plus the following penalty:
First offense 4-x-00 i i 5.-00
119.26
Second offense 230.00 230.00
238.51
Subsequent offenses 575.00 575.00
596.28
14-61 (c)(1) Reins ection Fee: -
In compliance with Fla. Stat. 553.80(2)(c), any
subsequent reinspection after the first reinspection
shall be charged four times the cost of first
inspection or first reinspection, whichever is
greater. The cost of inspections is calculated
based on the actual time spent by the inspector
multiplied by the inspection fee hourly rate, as
specified in subsection 14-61(h). The actual time of
inspection is rounded up to the next quarter hour
se ment.
First reinspection 9-00 0.00
Second and subsequent re-inspection(s) Based on four times the cost of
first inspection or first re-
inspection, whichever is greater.
Reinspection of existing building to determine Based on four times the cost of
compliance with the applicable Building Code first inspection or first re-
inspection, whichever is greater.
14-61 d Lost pl ans fee:
Administrative processing fee 50.00 50.09
51.85
Plus the cost per page reproduced:
• Letter(8 '/2 x 11), Legal (8 '/2 x 14), & Ledger 4-09 4-00
11 x 17 1.04
. Arch D 24 x 36 &Arch E 36 x 48 0 249
f
2.29
• Other copies, up to Legal Size 8-0 6 0.0i 5
0.016
14-61 a Revised plans processing fee:
Administrative processing fee 80-00 50.00
51.85
Plus revised plans review fee: Based on actual time spent on
review multiplied by review fee
hourly rate, as specified in 14-
61
14-61 (f) Lost permit card fee: 100-09 76.00
77.78
14-61 Plans review and inspection fee hourly rate
The plan review and inspection fee hourly rate is
calculated at the beginning of each fiscal year
based on the department's approved budget,
overhead and indirect costs and the resources
assigned to the inspection program.
14-61 h Dedicated Inspectors
The requester will pay for the dedicated inspector
in addition to the regular permit fee. The fee for the
dedicated inspector is based on actual time spent
on inspection multiplied by the dedicated
inspector's cost to the City or the inspection fee
hourly rate, as specified in subsection 14-61(g),
whichever is greater.
14-61 i Plans re-review fee
First and second re-review 9:-08 0.00
Third and subsequent re-reviews: Based on four
times the amount of the upfront fee as specified in
14-62(a) in compliance with F.S.S
553.80(2)(b),any subsequent re-reviews after the
third review shall be charged a fee four times the
amount of the proportion of the permit fee
attributed to the plans review. The fee for plans
review is calculated based on the actual time spent
by the plans reviewer multiplied by the plans
review hourly rate, as specified in subsection 14-
61
14-61 Expedited Plan Review and Inspection Fee
Upon request from the applicant; the Department
may schedule an expedited plans review or
inspection on an overtime basis by Department
staff. When such service is provided, the Applicant
will reimburse the City for the cost of this service.
14-62 (a) Up-front processing fee: percent of estimated
permit fee or the minimum processing fee,
whichever is greater
Percent of estimated permit fee rounded up to the 20 PeFGePA 20 percent
nearest$5.00 increment
Minimum up-front fee 50.00 50.00
51.85
14-62(b)(4)b.2. Transfer of data from original to second building Based on one hour of work at the
permit holder where no work has commenced hourly rate as specified in
subsection 14-61
14-62(b)(4)b.2a Transfer of data from original to second building 150.00 i 50.90
permit holder where work has commenced 155.55
14-62(b)(6) Request for Building permit extension a-00:00 109-00
103.70
14-62 c Building Permit Fees:
Minimum Permit Fee i 00.00 i 09:-00
103.70
OCCUPANCY TYPE INCREMENTAL COST
PER INCREMENTAL
100 SQUARE FEET
New Construction or Reconfiguration of Space
Cost Per, 100 Square Feet based on Occupancy
Type as defined by the Florida Building Code.
Samples of Occupancy Types are provided for
illustrative purposes only and are not inclusive of
all uses within each Occupancy Type.
The fee is calculated based on the total square
footage multiplied by the rate per square foot, in
100 s are feet intervals, asspecified below
INCREMENTAL
OCCUPANCY TYPE COST PER INCREMENTAL100
SQUARE FEET
Amoun
2012) FmebFyaFy
thr
septembef
30,
Amoun
Effective
October 15
012
A-1, Assembly- Fixed Seating (Theater, Concert
Hall
• Up to 3,000 square feet 2 300.00
311.10
• From 3,000 square feet to 15,000 square feet above fee 37.38 7946
plus 81.05
• From 15,001 square feet to 50,000 square feet above fee 333 333
plus 38.76
A-2, Assembly- Food and Drink (Restaurant,
Night Club, Bar
• Up to 350 square feet 1,212. ° 300.00
311.10
• From 350 square feet to 1,750 square feet above fee 97.81 199.21
plus 206.58
• From 1,751 square feet to 3,500 square feet above fee - 199.21
plus 206.58
• From 3,501 square feet to 17,500 square feet above fee 97.81 97.9i
plus 101.43
• From 17,501 square feet to 50,000 square feet above fee 47.73 47.73
plus 49.50
A-3, Assembly(Worship, Amusement, Arcade,
Community Hall
• Up to 1,000 square feet 660.5-9 380.00
311.10
• From 1,000 square feet to 5,000 square feet above fee z 143.4-1
plus 148.72
• From 5,001 square feet to 50,000 square feet above fee 53.27 53.27
plus 55.24
B, Business
•U p to 500 square feet a-;001-16 300.00
311.10
*From 500 square feet to 2,500 square feet above fee 90.63 255.92
plus 265.39
*From 2,501 square feet to 25,000 square feet above fee 90.63 90.63
plus 83.62
•From 25,001 square feet to 50,000 square feet above fee 30.47 39.47
plus 40.93
D/E, Daycare and Educational
*Up to 3,000 square feet 622261- 300.00
311.10
•From 3,000 square feet to 15,000 square feet above fee 8 131.53
plus 136.39
•From 15,001 square feet to 50,000 square feet above fee 50.88 58:88
plus 52.76
1-1, Institutional, ambulatory
*Up to 1,500 square feet 749-93 399:-99
311.10
*From 1,500 square feet to 7,500 square feet above fee 61.5-1- 173.77
plus 180.20
*From 7,501 square feet to 50,000 square feet above fee 6-1.54 6i.5i
plus 63.79
1-2, Institutional, non-ambulatory
.Up to 4,500 square feet 43 1.90 390`:89
311.10
*From 4,500 square feet to 22,500 square feet above fee 66.25 95.69
plus 99.14
*From 22,501 square feet to 50,000 square feet above fee 66.25 66.25
plus 68.70
M, Mercantile (Department Store or Drug Store
*Up to 1,000 square feet 999.i 9 300.00
311.10
*From 1,000 square feet to 5,000 square feet above fee 85-71 256.50
plus 265.99
*From 5,001 square feet to 50,000 square feet above fee 84-7-1 91.71
plus 84.73
M, Mercantile Gas Station
•Up to 400 square feet 1,541.54 300.00
311.10
•From 400 square feet to 2,000 square feet above fee 7 47
plus 452.00
•From 2,001 square feet to 20,000 square feet above fee 125.87 125.49
plus 130.13
*From 20,001 square feet to 50,000 square feet above fee 687 697
plus 62.39
M, Mercantile Retail or Wholesale
*Up to 1,500 square feet 1;�-296.57 390.00
311.10
*From 1,500 square feet to 7,500 square feet above fee 1-97.-9 3
plus 369.52
•From 7,501 square feet to 50,000 square feet above fee 107.19 107.19
plus 111.16
R-1, Residential -Transient (Boarding House,
Hotel, Motel
•Up to 2,000 square feet 579.91 300.00
311.10
*From 2,000 square feet to 10,000 square feet above fee 47.53 117.51
plus 121.85
•From 10,001 square feet to 50,000 square feet above fee 47.53 47-53
plus 49.29
R-2, Residential - Permanent(Apartment,
Dormitory, Timeshare
*Up to 600 square feet 1,384.97 380.09
311.10
*From 600 square feet to 3,000 square feet above fee 1-13.62 384.96
plus 399.10
*From 3,001 square feet to 30,000 square feet above fee 2 1-1-3.62
plus 117.82
*From 30,001 square feet to 50,000 square feet above fee z 636
plus 55.66
R-3, Residential - Permanent (Dwellings, Custom
Homes
•Up to 1,500 square feet 497.19 308:89
311.10
*From 1,500 square feet to 2,500 square feet above fee 128.63 4�4 42
plus 440.12
•From 2,501 square feet to 10,000 square feet above fee 3 128.63
plus 133.39
*From 10,001 square feet to 50,000 square feet above fee 1-07.78 10:7.78
plus 111.76
R-4, Residential -Assisted Living (6-16 persons)
*Up to 1,500 square feet 683.86 300:88
311.10
*From 1,500 square feet to 7,500 square feet above fee 49.72 1-34.68
plus 129.30
*From 7,501 square feet to 50,000 square feet above fee 482
plus 50.52
S-1, Storage- Moderate Hazard (Repair Garage)
•Up to 500 square feet 7-66.27 300.09
311.10
*From 500 square feet to 2,500 square feet, above fee 61.63 1 1-3.43
plus 117.63
•From 2,501 square feet to 5,000 square feet, above fee 61-63 113.43
plus 117.63
*From 5,001 square feet to 25,000 square feet, above fee 61.63 641-63
plus 63.91
•From 25,001 square feet to 50,000 square feet above fee 39.24 30.24
plus 31.36
S-2, Storage- Low Hazard (excluding Parking
Garage)
•Up to 1,000 square feet 7.79 . 300.00
311.10
*From 1,000 square feet to 5,000 square feet above fe 58-89 163.24
lu 169.28
*From 5,001 square feet to 50,000 square feet above feO 68.80 59-.901
plus 60.97
S-2, Storage— Parking Garage
•Up to 15,000 square feet 149.82 14Q 22
155.36
*From 15,000 square feet to 50,000 square feet above fee 12.25 1-2.26
plus 12.70
Shell Building < 75 feet
*Up to 7,500 square feet 189.7-0 igg.70
196.71
*From 7,500 square feet to 50,000 square feet above fee a-5.60 4 5.60
plus 16.18
Shell Building > 75 feet
*Up to 15,000 square feet 444.63 144.93
150.19
*From 15,000 square feet to 50,000 square feet above fee 41-80 4 i.90
plus 12.24
For any square footage over 50,000 square feet, above fee
per Occupancy Type plus:
INCREMENTAL
OCCUPANCY TYPE COST PER INCREMENTAIL100
SQUARE FEET
i-ti euR Amoun+(Effon-
(Eff ebri rani 1 2009
QGtt ,
1, 2042) 2012 Amount
(Effective October 15,
2012
I, Institutional (Clinic or Hospital) 644 644
66.62
M, Mercantile (Retail or Wholesale only) 1 07.1-9 107.19
111.16
R, Residential 46.01 46.01-
47.72
S, Storage—excluding Parking Garage X86 29.05
30.13
S-2, Storage — Parking Garage or Shell Buildings 4 3.80 43.80
14.31
All other Occupancy Types,
including but not limited to:
A, Assembly;
B, Business;
D, Daycare;
E, Educational; and,
M, Mercantile (Department Store, Drug Store, 41.7 41.71
Gas Station) 43.26
Minimum Fee for minor alterations not requiring 425.-00 5.00
structural review 129.63
AmOUR
(EffeGtive Arrme ant(C#ontive
_G tebeF-t FebF an , 2
2012 thFough n�n
dprrrbe-F 30,
2042) mount
(Effective October
15 2012
Building Permits - Specialty Permits:
Kitchen, Bath and Indoor Flooring
* Kitchen Renovation- Single Family Home (R3) or i,Il i 3.00 AAA
Single Apartment Unit (R2) based on the fee for 1096.11
reconfiguration of space up to a maximum of (if 2
trades or less are required then apply minimum
permit fees per trade):
. Bath Renovation (Single Family Home (R3) or A -9A 654.00
Single Apartment Unit (R2) based on the fee for 678.20
reconfiguration of space up to a maximum of (if 2
trades or less are required then apply minimum
permit fees perkgdeh
• Flooring per 500 square feet or part thereof (if 205.00 177.90
fixture sets are included then a separate plumbing 183.55
permit is required)
Communication Equipment Enclosure
• with-out transfer switch and receptacle 334-90 33i-90
343.25
• with transfer switch and receptacle 393.00 393.00
407.54
Generators/Solar Systems
Generator-Single Family X90 300
189.00
Generator-Commercial
• Under 10,000 square feet or 2 -90 Wiz?99
non-life safety related generator 1196.00
• 10,000 to 50,000 sq ua re feet 2,983. 2,993.
1492.00
• Above 50,000 square .feet 9
1595.00
Solar Photovoltaic/Alternate Power
• Systems-Single Family 1,151 0 489.
245.00
. Systems-Commercial/Multi-Family 2,^=-X51.00 A9
950.00
Transfer Switch for Future Generator(per unit) 86!-00 200
146.00
Solar Water Heater System 4—,Ug .00 96.00
Swimming Pools
New Swimming Pool, Spa or Fountain —
Residential, including equipment, each
Under 1,000 gallons 1,411. 083.00
397.17
1,001-25,000 total gallons X800:00 8l-5.00
845.16
Over 25,000 total gallons 2,31 1, 90
1,311.81
Swimming Pool Renovation Residential
(non-structural) including equipment ,263 379.00
393.02
New Fountains - Commercial, including equipment X00 1,026.00
1,375.06
Swimming Pool, Spa or Fountain — Commercial,
including equipment, each
• Under 1,000 gallons 1,67 i,638.00
1,698.61
• 1,001-25,000 total gallons 2,68 2,644.00
2,741.83
• Over 25,000 total gallons 3,22 3,i 83.00
3,300.77
Swimming Pool Renovation Commercial (non-
structural) including equipment 1,679.94
Pool Equipment-Relocations 564.00 298.00
298.66
Pool Equipment Replacement 443.00 400.00
103.70
Swimming Pool Resurfacing:
• Residential 200.00 89.00
92.29
• Commercial 200 27-7.00
287.25
Swimming pool lighting (when installation not
covered by other permit):
• Residential Pool or Spa. 90.00 00-00
93.33
. Residential Combination Pool and Spa i Go.00
103.70
• Commercial or Multi-family Pool or Spa 200.00 200.00
207.40
• Commercial or Multi-family Combination Pool and 2 -09 275.00
Spa 285.18
Partial and Total Demolition
Total Demolition
• under 3 stories 371.00 367.00
380.58
• over 3 stories 429.00 422200
437.61
Partial Demolition
• Under 300 square feet 228.00
A URvor 1,000 square feet 770.00
• 300-1,000 square feet 737.31
. 1,001-5,000 square feet 448:00 X00
1178.03
• per 1,000 over 5,000 square feet 46i 0 429.00
132.74
Demolition of signs, fences and/or other thean 399400 374.00
above 387.84
Marine Permits
Docks - Residential (includes pilings associated
with dock construction and 2 moorings)
• Under 100 square feet 304.00 436.00
452.13
. 101-500 square feet 992.00 999.00
1026.63
• Per 100 square feet or part thereof over 500 73-00 71.00
square feet 73.63
Docks-Commercial (includes pilings associated
with dock construction and 2 moorings)
• Under 100 square feet, 4 900 i'00i. 9
1,038.04
• 101-500 square feet 4 36 -99 a- 1-99
1,400.99
• per 100 square feet or part thereof over 500 230.00 230.00
square feet 238.51
Dock Repair-Commercial-replace all but piles 211.00 211-00
(plumbing and electrical not included 218.81
Dock Repair-Residential-replace all but piles 1-4800 143.00
(plumbing and electrical not included 148.29
Seawalls & Seawall Repairs (including piles
• Under 75 linear feet 55i.00 477.00
494.65
• 75-150 linear feet 921.00 874.00
906.34
per 25 linear feet or part thereof over 150 linear 443.00 95.00
feet 88.15
Watercraft Lift
• Up to 2 systems (Dual arm lift is a single unit) 450.00 446.00
462.50
• Each additional system over 2 68.00 6800
70.52
Pilings or Moorings
• Up to 2 units 205.00 49800
205.33
• Each additional piling over 2 40.00 4808
41.48
Si ns
Building Sign (non-electric)- If sign has electrical
component, electrical sub-permit required:
• Cyr the fire+ 100 square feet 143.00 n
• Each 116.00
66.00 65.00
##,ereef
Electric Signs:
262.00 24700
• Each in addition to the sign fee above 71.00
371.00 366.00
48-00 47.00
Temporary and Special Event Fees
Temporary Platforms for public assembly, first 471-00 4-7 -00
approval 177.33
Temporary Bleachers for public assembly, first i 00-90 9i.00
approval 94.37
Temporary Platforms or Bleachers for public .X00 408
assembly, re-approval 19.70
Tents-excluding electric and plumbing, per tent
Up to 1,000 square feet 11400 114.-00
118.22
• Each additional 1,000 square feet over 40.00 27.00
1,000 28.00
Temporary Structure /Trusses/statues (no electrical 04480 314.00
or plumbing included) 325.62
Temporary Chiller 445.00 446.00
461.47
Temporary Generator 229.00 229.00
236.44
Construction Trailer, per trailer 547.00 547.00
567.24
Office Trailer, per trailer 664-90 66i.00
685.46
Temporary Power for Construction 217.00 212-1 7 09
225.03
Temporary Power for Test 48200 482.00
188.73
Temporary Multi-seat Toilet Trailer, per trailer 66.00 77.00
79.85
Temporary Individual Toilet, per event 29.00 46.00
16.59
Amusement Rides 57.00 57.90
59.11
Temporary electric work on circuses, carnivals, per 000.00 000.00
show. 311.10
Temporary Fencing 443.00 44 40
148.29
Building Component of Fire Permits:
• Cooking Hood Suppression (per system) 266.00 266.90
Multiple systems in same area (i.e. kitchen) will 275.84
be charged at 50% of above fee for each
additional system
• Room Fire Suppression System (per system) 285.00 285.00
295.55
. Fire Alarm Systems based on square feet
Up to 2,500 228.00 229.90
236.44
2,501 -3,000 314-00 0-1-400
325.62
3,001 -5000 399.00 39.00
413.76
5,001 - 10,000 a4-3-.00 644-.00
531.98
10,001 - 15,000 713.09 713.00
739.38
15,001 -30,000 012.00 Q1�2:A0
945.74
30,001 - 75,000
1,418.62
75,001 - 100,000 4,824.-00 a- 4.A0
1,891.49
100,001 - 150,000
2,600.80
150,001 - 500,000 3,192-
3,310.10
Over 500,000 3,976.00 3,876.00
4,019.41
Repair& replace Fire Alarm Panel Only
Up to 2,500 114.00 114.00
118.22
2,501-3,000 114.00 114.00
118.22
3,001-5000 41400 11-4.-00
118.22
5,001-10,000 11-4.00 114.00
118.22
10,001-15,000 114.00 114.08
118.22
15,001-30,000 1-14-00 11-4.00
118.22
30,001-75,000 41-480 11400
118.22
75,001-100,000 11400 41.40
118.22
100,001-150,000 114.00 114-00
118.22
150,001-500,000 41-4-00 444:00
118.22
Over 500,000 414.00 11400
118.22
Fire-Elevator recall Test
Base 456.00 56.00
161.78
Per Floor - 4.00 -54.00
56.00
s Electrical Smoke Detectors Fire Permit
®Under 5 devices 200.00 45$00
164.89
s Up to 25 devices 509:80 489.00
506.06
•Per additional 25 devices or part thereof 58-88 50 on
51.85
• Minor work on existing fire alarm
• 1 to 5 components 443.00 54.90
56.00
• 6 to 15 components 171.00 a-06.0
109.93
• Minor work on existing fire suppression system 143.00 4500
46.67
Building Trade Permits
Building Minimum Permit Fee Items
(Includes but not limited to: storage sheds, 1 14.00 x00.00
benches, mirrors, interior doors) 103.70
Building Permit for Minor Repairs 128.00 -9A
132.74
Painting Permit
• Residential - Based on Planning Fee Schedule 67.00 35:90
only 27.00
• Commercial 114.00 X09
27.00
Installation or replacement of windows and
exterior doors in all buildings, Shutters, fixed
lass or storefronts:
New installation or replacement, of above listed
items:
• 1 unit i 00.09 a-09.00
103.70
• 2-10 units 200.00 200.00
207.40
• 11-30 units 627.00 330:99
342.21
• 31-50 units 355-00 348.00
879.38
• 51 and more units (special inspection required), 40.00 49-90
per additional 5 units or part thereof 41.48
Shutters
New installation or replacement
. 1-30 units* 200-90 157.00
162.81
• Each additional 10 units or part thereof over 30 511-99 4990
50.81
*Unit is the opening between structural columns
Storefront including windows and doors
therein:
• Up to 100 square feet 342.90 335.00
347.40
• 101 to 1,000 square feet 855.00 846.00
877.30
Per additional 100 square feet over 1000 114.-00 i i i.00
115.11
Moving buildings or other structures:
• Under 1,500 square feet (does not Include cost 042.00 339.00
of new foundation or repairs to building or 351.54
structure.
. Per additional 1,500 square feet 400 125.00
129.63
Concrete slabs= Walkways, wood decks and
Paving (Where separate installation not
covered by prior permit :
Concrete slabs and walkways
• Per 1,000 square feet 229.00 440:00
114.07
Paving
• Per 1,000 square feet 228-00 5i-90
52.89
Railings
•0-100 feet 229.00 229.00
236.44
• 101-500 feet 31-4-00
325.62
•501-1,000 371-.00 371.00
384.73
•Above 1,000 square feet 4.28.00 429.00
443.84
Roofing, re-roofing and waterproofing:
Roofing and re-roofing
• Under 2,000 square feet 523.09 i 90.00
197.03
• Per each additional 1,000 square feet or part 68.00 X00
thereof 103.70
Waterproofing
• Under 2,000 square feet 523.90 248.00
257.18
• Per each additional 1,000 square feet or part 68.00 49.00
thereof 50.81
Fences and/or walls:
Single-family and duplex buildings:
• For first 75 linear feet or fractional part 314.00 i i 0.00
114.07
• For each additional 75 linear feet or fractional 400 490
art thereof 48.74
Multi-family, commercial and industrial buildings:
• For first 75 linear feet or fractional part 01-4.00 197.00
204.29
• For each additional 75 linear feet or fractional 77.00 77.00
art thereof 79.85
Awning, canopies and residential patio covers:
New
Single Family Home
04-80 X00
• Per Unit 150.00
All Other Occupancies
e ICInote 30 square feet 143.00 a-39.00
• 1-30 Units 146.00
D�rTeaGh additiGRal 30 6q pare feet 9TpuFt. 69.00 67.09 oreef .185.00
• Each additional 10 Units over 30
Carport Awning 294.00 X00:90
207.40
Replace fabric for awning, canopy or cover (no 440:00 74.-00
charge for single family home) 76.74
1463 Plumbing permit fees:
Minimum plumbing permit fee: 114.00 i G9:-90
403.70
This minimum does not apply to permits issued as
supplementary to current outstanding permits for
the same 'ob.
Plumbing Demolition Permit 4 -00 170.00
176.29
Plumbing Permits including Building, Electric
and Mechanical Components
Irrigation Systems
• First zone 399.00 95.00
88.15
• Each additional zone 57.00 29.00
29.04
Water and Drainage Risers and Mains, per 1 Unit
Per Riser or Main
• Multi Unit Residential (excluding SFH
• Up to 5 units 542. 642.00
562.05
• Each additional 5 over 5 29.00 29.00
30.07
• Commercial
• Up to 5 units 57-A:-00 7 -00
591.09
• Each additional 5 over 5 29.00 29.00
30.07
Natural Gas and Liquefied Petroleum, Appliances,
per 1 Unit per Outlet and appliance, such as
water heathers, stoves, dryers, etc
• Residential
• Up to 5 units 257.00 98.00
194.96
• Each additional 5 over 5 29.00 29.00
30.07
• Commercial
• Up to 5 units 285.00 00
293.48
• Each additional 5 over 5 29.00 29.09
30.07
Gas water heater or pool heater new-Single Family 408.90 96.00
Home no electric permits re uired Up to 5 Units 89.18
Gas water heater or pool heater new-Commercial 408.00 x-:00
no electric permits required) Up to 5 Units 166.96
• Each additional 10 over 5 29.00 29-00
30.07
Electrical Water Heater or Pool Heater- New
•.Up to 5 units 4 :00 86.00
89.18
• Each additional 10 over 5 X00 29.00
30.07
Electrical Water Heater or Pool Heater-
Re lacement
• Up to 5 units 86.00 8i.00
84.00
• Each additional 10 over 5 29.00 29.00
30.07
Plumbing Permits- Stand Alone
Fixtures or Interceptors:
Fixtures
• Fixture Rough
• Up to 5 units 229.00 200.00
100.00
• Each additional 10 over 5 29.00 29.00
30.07
• Fixture sets replacement
. Up to 5 units 143.00 143.00
100.00
• Each additional 10 over 5 29.00 29.00
30.07
Interceptors per unit
• Up to 5 units 229.00 229.09
236.44
• Each additional 10 over 5 29.-00 29.09
30.07
Re-piping Bathrooms/ Kitchens
• Up to 5 units 0009 200.09
207.40
• Each additional 10 over 5 29.09 29.00
30.07
Drainage or Connections:
Water Drainage (rainwater roof inlets, area drains,
surface inlets
• Up to 5 units 257.00 250.00
259.25
• Each additional 10 over 5 2-9.90 29.00
30.07
Condensation drains
• Up to 5 units X00.90 195-00
202.22
• Each additional 10 over 5 29.0 29.09
30.07
Water meter/Sub-meter connections to water
supply system or to appliances/installations not
covered by fixtures
• Up to 5 units 229.00 229.00
228.14
• Each additional 10 over 5 29.00 .00
30.07
Sub-meter with Backflow protection device
• Up to 5 units 275.00 217.00
225.03
• Each additional 10 over 5 29.00 29.00
30.07
Backflow protection devices
• Up to 5 devices 257.00 217.00
225.03
• Each additional 10 over 5 29.00 29.09
30.07
Wells, Tanks, Gas, Sewer:
Gas Venting/Flue Piping 200.00 454.00
166.96
Drywells or Discharge Wells
• Up to 5 units 228.90 220.00
228.14
• Each additional 10 over 5 29.00 X00
30.07
Natural gas & liquefied petroleum, 1 unit per outlet
and appliance
• Up,to 5 units 285.00 277.00
287.25
• Each additional 10 over 5 X00 29.00
30.07
Water/ as mains per 1 unit
• For the first 50 feet 229.90 219.00
226.07
• per additional 1 unit per 50 feet 57.00 56.00
58.07
Sanitary, storm, condensation drains and collector
lines per 1 unit
. For the first 50 feet 295-90 277.00
287.25
• per additional 1 unit per 50 feet 57.09 56:.00
58.07
14-64 Electrical permit fees:
Minimum permit fee including repair work per 114.00 AAA
ermit, unless other minimum feespecified 103.70
(This minimum does not apply to permits issued as
supplementary to current outstanding permits for
the same 'ob.
Electric Demolition 177.00 17,-r2.00
178.36
Electrical Safety Check for service reconnect 114.00 i Il0.00
114.07
Electric Alteration or Remodel:
• Minimum Fee or under 1500 square feet 262.00 458:00
174.22
• Per additional 1000 square feet over 1500 Il 33.00 89.00
92.29
Electric Permits including Building, Mechanical
and Plumbing Components
Parking lot lighting 314.00 27600
286.21
Access Controls/Card Access
• Under 5 devices 399.00 459.00
164.88
• Up to 25 devices 556.00 488.00
506.06
• Per additional 25 devices or part thereof 53-00 50.00
51.85
Electric Permits Stand Alone
Electric Services (meters):
• One meter, Minimum Fee 262.00 483-00
189.77
• 2-5 meters 485.00 477.00
494.65
Per additional meter over 5 30.00 30.00
31.11
Panel Replacement:
• One panel, Minimum Fee 2 -00 400
185.62
• 2-5 panels 344-00 3000
318.36
• Each additional 5 panels or part thereof over 76.00 75.00
77.78
Busway Installation:
• Under 15 linear feet, Minimum Fee 262.00 24-7.00
256.14
• 15-50 linear feet 371.00 371.00
384.73
• Each additional 50 linear feet of part thereof over 76:00 7-5.00
50 77.78
Low Voltage (Devices):
• Under 5 devices 234.00 7i.00
73.63
• Up to 25 devices 5790 246.00
255.10
• per additional 25 devices or part thereof 76.00 75.90
77.78
Empty Conduit for future low voltage):
• Under 5 openings, Minimum Fee 177.00 172.00
178.36
• Up to 25 openings 04499 297.90
307.99
• Per additional 25 openings or part thereof over 76.00 75.00
25 77.78
Charging Stations-Single Family Residence 154.00 44-00
159.70
Charging Stations-Commercial
• Up to 5 units 229.00 228.09
236.44
• Each additional 5 over 5 80.00 60.00
82.96
14-65 Mechanical permit fees:
Minimum mechanical permit fee: 114.00 4-90.00
103.70
This minimum does not apply to permits issued as
supplementary to current outstanding permits for
the same 'ob.
Mechanical Demolition Permit 11-4.00 i W.Go
103.70
Air conditioning and refrigeration: (Includes all
component parts of the system except water, duct,
electric and gas lines and connections that feed
se aratel
AC Unit New- Residential
• Installation of single unit 4300 2500
264.44
• Installation of 2-5 units 61 0.00 ?
551.68
• Each additional unit over 5 152.00 145.00
150.37
AC Unit New- Commercial, per unit
• Under 2,000 CFM 839.00 839.00
870.04
• Over 2,000 CFM
965.45
AC Unit Replacement, single unit - Single Family 238.00 i3i 0
Home (R3) or Single Apartment Unit (R2) 135.85
Residential
AC Unit Replacement, single unit-Commercial
• Under 2000 CFM 314.00 00500
316.29
• Over 2000 CFM 352.00 340.00
352.58
AC Unit Replacement for each and any additional 40.00 43.00
unit 44.59
AC Window Replacement over 12000 BTU, per unit 490.09 79.09
81.82
Cooling Tower with Structural Work M)83.00 3.00 X2.00
1090.92
Cooling Tower Replacement without structural work 209.00 203.00
210.51
Chiller Replacement with structural Work 942.00 542.09
562.05
Chiller Replacement without structural work 309.00 299.00
216.73
Pool Heat Pumps(New) 336.00 935:00
348.43
Pool Heat Pumps(Replacement) 43-7..90 3400
87.11
Raise existing Mechanical Equipment on Roof for 621.00 520.09
Re-roof 642.94
Refrigeration equipment replacement 256.00- 262.00
271.69
Furnaces and heating equipment including
commercial driers, ovens and other fired
objects not elsewhere classified. (.Includes all
component parts of the system except fuel and
electrical lines.) (For vented and unvented wall
heaters, see plumbing permit fees, natural and L.P.
as.
Gas or oil furnaces:
• Residential 462:88 94.00
87.11
• Commercial 285.00 284-00
294.51
Hood Replacement 342.00 340.00
352.58
Duct Work— New or Replacement
Residential
• Under 15 supply drops 257.00 428. 132.74
• Each additional 5 supply drops over 15, or part i 71-.00 85.-0088.15
thereof
Commercial
• Up to 600 linear feet 033.00 329. 341.17
• Each additional 200 linear feet over 600 linear 40.00 39.0040.44
feet
Exhaust Ventilation New or Replacement 26608 264,00273.77
Smoke Control Test:
• Under 10,000 square feet 46600 463.00207.4
• 10,000 to 50,000 square feet 634-00 692. 707.23
• Over 50,000 square feet 1,026. 1,025-881,062.93
Trash Chute .240-AG 200.99207.40
342.00 342-.80
Walk-in coolers and walk-in freezers each 11 i 5.00 115. 119.26
e ui ment fees add.
Elevators, escalators and other lifting
appa ratus:
Permit for new installation or major revamping_ner
ASME A 17.1 Section 8.7 Building permit required.
includes initial inspection and certificate.):
Installation of traction elevators and escalators, per
unit
Up to three stories 2,138 2,139.00
2217.11
• 3-10 stories 2,699 2,609.00
2704.50
• Each-additional story over 10 454-00
454.-0A 84.00
Installation of hydraulic elevator, per unit
• Up to three stories 112 nn 112 nn
�o �o
1,153.14
• 3-10 stories 1,415 1,415.00
1,467.36
Installation of wheelchair lift 941.09 941-.00
975.82
Installation of residential elevator, per unit 1'!16 X09
1,212.25
Installation of escalator, per unit 2,081-00 ,081.
2,158.00
Elevator Repair and Maintenance
Annual maintenance repair permit
(not to include major revamping) 580.00 880-09
601.46
Repairs (value over $5,000.00) per ASME 17.1, 81-0.09 81-0-90
Section 8.62 632.57
Repairs (Jack/Oil Lines)Up to $5,000.00 54$00 6i g.00
250.00
Repairs (Can Interior/other)Up to $5,000.00 291.00 291-.90
250.00
Roof window cleaning machine, each machine 104-00 104.00
107.85
Permit for removal of elevator from service 55i.00 559-09
570.35
Elevator Tests, Temporary Use, Variances and
Compliance Inspections:
Emergency Power Test 1,04 09 1,045.00
1,083.67
Elevator Fire Recall Test, per unit 98800 985.09
1,021.45
Temporary Use Permit 4,273 OV 4,270.
1,316.99_
Application for variances from codes to install or 043.00 500.00
modernize equipment 518.50
Annual fees for certificate of operation and
Inspection
Certificate of Operation for each unit mandated 74-.00 75.00
Renewal of Delinquent Certificate of Operation 444-00 100.00
Duplicate Certificate of Operation mandated 24.00 25.00
Dumbwaiters, elevators and escalators — certificate
and inspection:
Periodic (Annual) Inspection 209.00 200.00
207.40
The annual charge is based on the condition that -
the equipment is under a maintenance agreement
with a qualified maintenance company, in which
case there is no obligation for the City Inspection to
be given every year. If no maintenance agreement
is in effect August 1 st of every year, the City
Inspection will be performed every year and above
charges for the next fiscal year shall be 150% of
the one shown in these tables.
Reinspection fee, each re-inspection 443.00 400.00
103.70
Witnessing of 1-year tests per ASME A17.1, part X, 21-8.00 200.00
section 1000, rule 1000.1b 207.40
Witnessing of 5-year tests per ASME Al7.1,Part X, 293.00 259.00
section 1000, rule 1000.1b 259.25
Compliance inspection if witnessed test failed, per 400-00 400.00
inspection 103.70
Any elevator, escalator, etc, owner who fails to
comply with the order to correct a violation issued
within 30 days, is subject to an administrative fine
up to $500.00 in addition to any other penalty
provided by law. Fines can be imposed for every 30
days period that the violation remains active.
These fines, before or after paid, can be appealed
to the Department Director whose decision shall be
final. No clearance for the use of the elevator shall
be given until these fines have been paid or
waived.
The Department Director can delegate this appeal
function to the Department Assistant Director, the
City Building Official or the Deputy Building Official.
Boilers and pressure vessels, Installation
permit fees, including initial inspections and
certificate; does not include installation or
connection of fuel and water lines:
Boilers (as defined in the ASME Boiler and
Pressure Vessel Code)
Boilers and Pressure Vessels, 200,000-400,000 380.00 379.00
BTUs 393.03
Annual Inspection for Boilers 257.00 250.00
259.25
Other fees:
Pressure and process piping, sheet metal and duct 247.00 0
work and other mechanical lines: 250.95
14-66(2)a. Certificate of Occupancy fees:
Fees per Occupancy Type:
Assembly 594-00 594-00
612.87
Business, Mercantile
• under 20,000 square feet 401.00 401.00
415.84
• over 20,000 square feet 534.00 534-00
553.76
Daycare, Educational, Institutional 649.00 64 00
671.98
R-1, R-2 Building, Per Unit i 06.00 06.go
109.92
R-3, Single Family Home/Duplex/Triplex 306.00 306.00
317.32
S, Storage 402.00 402.00
416.87
Building Shell < 75 feet 488.00 459.00
474.95
Building Shell > 75 feet 012.00 912.00
945.74
14-66(2)b. Partial and Temporary Certificate of Occupancy or
Completion fees:
Partial certificate of occupancy or completion
Fees charged based on the percentage of the total
square footage being requested for
occupancy/completion times the cost of the final
certificate of occupancy or completion plus a
surcharge of 25% of the cost of the final certificate
of occupancy/completion for each partial certificate
issued
Temporary certificate of occupancy or completion
100% of final certificate of occupancy or completion
fee plus the cost of any additional required
inspections. Additional required inspections will be
charge based on actual time spend on inspection
multiplied by the hourly rate, as specified in Section
14-61(h
Extension of temporary certificate of occupancy or 143.00 i 00.00
completion, per period as set by the Building 103.70
Official
14-66(2 c Certificate of Completion fees:
Certificate of Completion fees for reconfiguration of
space are the same as Certificate of Occupancy
fees per section 14-66(2)a
Swimming Pool 228.00 228.00
236.44
Kitchen/Bath 76.00 76.00
78.81
Generator 162.00 162.00
167.99
Docks/Seawalls 229.00 229.-00
236.44
A/C Units and Cooling Towers per permit i x-00 i 8-1-:00
187.70
All Other Certificates of Completion, Minimum Fee Il 8i.00 118i-00
187.70
14-67.1 Reinspection of existing building to determine Based Based on actual
compliance with the applicable Building Code aGtual t4 time spent on
speRten inspection
+nspestie44 multiplied by the
inspection fee
tie hourly rate, as
specified in 14-
fee
Fate,h9uFly 61(g).
F tte' s
Forty-year recertification program fee:
14-67(a)
Per Non-threshold building 894.90 000-00
311.10
Per Threshold building 894.00 000.00
518.50
14-67(c) Late compliance fee, regular fee, plus 250.00 250.00
259.25
New inspection report fee if recertification not 000-00 300.00
completed within 90 days of building's being 311.10
declared unsafe
14-67.2
Employee training, education, safety, and
technology procurement and implementation for
service enhancement surcharge is 6% of each and
every Permit Fee
14-70
Other general fees
14-70 (l)
Added te buildiRg permits f9F state te study buildiRg 0 0-44
peF 4o.-.ate eel iR;6 +i.,�-Qo�'�r pte�64E=0
parts Y and YII (Radon R ,le)
Pursuant to Florida Statutes F.S. 553.721-In order
for the Department of Business and Professional
Regulation to administer the Florida Building Code,
there is created a surcharge to be assessed at the
rate of 1.5 percent of the permit fee associated with
enforcement of the Florida Building Code. The
minimum amount collected on any permit issued
shall be 2.
Pursuant to Florida Statutes F.S. 468.631-The
Building Code Administrators and Inspectors Fund
shall be funded through a surcharge to be
assessed at the rate of 1.5 percent of all permit
fees associated with enforcement of the Florida
Building Code. The minimum amount collected on
an ermit issued shall be $2.
14-70 (2)
Pursuant to Miami-Dade County Ordinance 8-12(e) 0.60 0.60
a Surcharge to building permits for County code
compliance program, per$1,000 of work valuation
14-70 (7)
Sanitation surchargeiFnpaGt fee for all building,
electrical, plumbing, mechanical demolition
ermits,4 0.30% of estimated cost of project:
Minimum 11-,600.
15.00
Maximum i,500.90 1,500.00
SECTION 4. REPEALER.
All ordinances or parts of ordinances in conflict therewith be and the same are hereby repealed.
SECTION 5. SEVERASILITY.
If any section, subsection, sentence, clause, provision or phase of this ordinance is held to be
invalid or unconstitutional by any court of competent jurisdiction, then said holding shall in no
way affect the validity of the remaining portions of this ordinance.
SECTION 6. CODIFICATION.
It is the intention of the Mayor and City Commission of the City of Miami Beach, and it is hereby
ordained that the provisions of this ordinance shall become and be made a part of the Code of
the City of Miami Beach, Florida. The sections of this ordinance may be renumbered or
relettered to accomplish such intention, and that the word "ordinance" may be changed to
"section", "article", or other appropriate word.
2012- 377
SECTION 7. EFFECTIVE DATE.
This Ordinance shall take effect on October 15, 2012.
PASSED and ADOPTED this 27th day of September , 2012.
183 MAYOR
ATTEST: \`��� ••• ."�
CITY CLERK :INCORP ORATED:
•: �j APPROVED AS TO
FORM AND LANGUAGE
�i4 • '' & FOR EXECUTION
City Attorney Date
TAAGENDA\2012\9-27-12\Permit Fee Revisions\Permit Fee Revisions Building Ordinance 09272012.doc
I'
COMMISSION ITEM SUMMARY
Condensed Title:
Ordinances Modifying The Building, Fire, Planning And Public Works Departments'Fees Related To The Building
Development Review Process Implemented On February 1,2010.
Key Intended Outcome Supported:
Strengthen Internal Controls; Maximize Efficient Delivery Of Services; Increase Community Satisfaction With City
Government;Minimize Taxes/Ensure Expenditure Trends Are Sustainable Over The Long Term;Improve The City's
Overall Financial Health And Maintain Overall Bond Rating
Supporting Data(Surveys,Environmental Scan,etc.):In the 2012 Community Satisfaction survey,which covered
the period of 2009 through February 2012, 47% of businesses described their experience with the Building
Department as positive, and 58% gave a positive evaluation of the department for overall satisfaction. 54% of
businesses perceived the Building Department as being open to hearing their concerns.50%of businesses thought
the Building Department's inspections were consistent over time or believed that the inspections were fair.70%of
businesses rated Building Department employees as courteous and professional and the same percentage thought
employees had proper training and knowledge.
Issue:
Shall the Mayor and City Commission approve the ordinances amending various fees related to the Building
Development Review Process in the City of Miami Beach?
Item Summa /Recommendation:
SECOND READING, PUBLIC HEARING
On January 13, 2010, the City Commission approved four ordinances for the Building, Fire, Planning and Public
Works departments related to the fees for the Building Development Process. These ordinances went into effect on
February 1, 2010 and provided a complete overhaul of the fee structure for the above mentioned departments.
Additional changes were adopted by the City Commission in September 2011 that went into effect on October 1,
2011,including reductions to the fees for certain permit types,a continuation of discounts for permit fees related to
certain permit types, a waiver of the Consumer Price Index (CPI) adjustments for 2011 and 2012, and the
introduction of a cap on permit fees at 10%of the calculated cost of construction.
The Administration had stated that it would return to the Committee for additional discussion after the 2011 changes
were adopted. The Administration held discussions with the Finance and Citywide Projects Committee(Committee)
in July and August,2012 regarding the following proposals,and the Committee recommended that they be forwarded
to the full City Commission for further consideration: 1) Fees related to Planning and Public Works'efforts in the
Alteration/Remodeling permit types should be reduced, 2) Discounts should continue past September 30, 2012,
3) The CPI increase for 2013 pursuant to the existing ordinance should not be waived,and 4)Fees related to certain
permit types should be revised, based on the evaluation of the 10%cap on permit fees and further evaluation of
permit fees in general,and that the CPI increase should not apply to these permit types.
Additionally,there is a scrivener's error in Section 15-42"Adjusted Rates"in the City's Code of Ordinances relative to
the fees for the Planning Department where the language refers just to that particular section but should refer to the
Article,not the Section. The Administration is recommending that the City Commission adopt the ordinance with the
proposed revisions.
Advisory Board Recommendation:
The Finance and Citywide Projects Committee heard this item at its July 10,2012 and August 22,2012 meetings and
recommended that the City Commission adopt the ordinances. The City Commission approved these ordinances on
first reading at their meeting on September 12,2012.
Financial Information:
Source of Amount Account
Funds: 1
2
OBPI Total
Financial Impact Summary: A cumulative loss of permit revenue of approximately $295,000 annually for the
Building Development Process departments(Building, Fire, Planning and Public Works).
City Clerk's Office Legislative Tracking:
Stephen Scott, Building Director
Sign-Offs:
Departmen,�Director ssistant City"ager City -ager
TAAGENDA\2 12\9-27-12\Permit Fee Revisions\Perm' ee Rev' ions coy6r page 09272012
AGENDA ITEMS RS A
1� MIAMIBEACH DATE q
MIAMI BEACH
City of Miami Beath, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfi.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the 7,- ommission FROM: Kathie G. Brooks, Interim City Manager tY 9
DATE: September 27, 2012 SECOND READING,PUBLIC HEARING
SUBJECT: ORDINANCES MODIFYING THE BUILDING, FIRE, PLANNING AND PUBLIC
WORKS DEPARTMENTS FEES RELATED TO THE BUILDING DEVELOPMENT
PROCESS IMPLEMENTED ON FEBRUARY 1, 2010.
ADMINISTRATION RECOMMENDATION
The Administration recommends that the City Commission adopt the four ordinances
amending various fees related to the Building Development Process in the City of Miami
Beach. These ordinances were approved on first reading by the City Commission at its
meeting on September 12, 2012.
INTRODUCTION
On January 13, 2010, the City Commission approved four ordinances for the Building, Fire,
Planning and Public Works departments related to the fees for the Building Development
Process.
These ordinances went into effect on February 1, 2010 and provided a complete overhaul of
the fee structure for the above mentioned departments. Additional changes were adopted
by the City Commission in September 2011 that went into effect on October 1, 2011,
including reductions to the fees for certain permit types, a continuation of discounts for
permit fees related to certain permit types, a waiver of the Consumer Price Index (CPI)
adjustments for 2011 and 2012, and the introduction of a cap on permit fees at 10% of the
calculated cost of construction.
The Administration had stated that it would return to the Committee for additional discussion
after the 2011 changes were adopted. The Administration held discussions with the Finance
and Citywide Projects Committee (Committee) in July and August, 2012 regarding the
following proposals, and the Committee recommended that they be forwarded to the full City
Commission for further consideration.
• Fees related to Planning and Public Works'efforts in the Alteration/Remodeling
permit types should be reduced,
• Discounts should continue past September 30, 2012, and become permanent
rather than roll over from year to year,
The CPI increase for 2013 pursuant to the existing ordinance should not be
waived, and
i Fees related to certain permit types should be revised downward, based on the
evaluation of the 10%cap on permit fees and further evaluation of permit fees in
general, and that the CPI increase should not apply to these permit types.
City Commission Memorandum
September 27,2012
Building Development Process Fees
Page 2 of 9
Additionally, there is a scrivener's error in Section 15-42"Adjusted Rates"in the City's Code
of Ordinances relative to the fees for the Planning Department where the language refers
just to that particular section but .should refer to the Article, not the Section. The
Administration is recommending the language in the Ordinance be changed for accuracy.
Lastly,there were scrivener's errors in the ordinances for the Building Department fees and
the Public Works Department fees during first reading,falling into the following categories,
which have been corrected in these second reading ordinances:
• Transposing a special (greater than/less than)character
• Not including revised fees where existing fees were struck through
• Not striking through language that should have been deleted
• A typographical error
BACKGROUND
Building Development Process
The Building Development Process ("Process") in the City of Miami Beach includes the
Building Department, the Fire Department's Fire Prevention Division, the Planning
Department and the Public Works' Engineering Division.
The Building Department provides process intake, routing, billing, and computer support for
the entire Process.The Building Department staff conducts plans review and inspections for
plumbing, structural, building, electrical, governmental compliance, elevator, accessibility
and mechanical trades as required by the different permit types for compliance with Florida
Building Code as well as the Miami Beach City Code.Additionally,the Building Department
reviews permit applications for compliance with outside regulatory agencies.
The Fire Department's Fire Prevention Division is involved in the majority of building permits
issued by the City, with the exception of single-family homes. A Fire Department fee is
collected for each building permit corresponding to the Fire Department's review and
inspection.
The Planning Department serves as staff to the City's Planning Board, Board of Adjustment,
Design Review Board, Historic Preservation Board, and Single Family Residential Review
Panel. Depending on the scope of the project, a new development is required to receive
approval from one or more of these Boards. The Planning Department processes
applications, reviews them and prepares recommendations to all of the above Boards. Fees
are assessed for the various planning applications according to a fee schedule contained
within the City Code. The Planning Department also reviews all building permits for
compliance with the City's land development regulations, comprehensive plan and
consistency with architectural review guidelines and preservation appropriateness criteria.
This zoning review is required to ensure compliance with existing legislation, zoning
requirements, and state growth management requirements.
The Public Works Department Engineering Division staff conducts plan reviews and
inspections for all construction activities that occur within the public right-of-way (streets,
roadways, waterways, alleys and sidewalks), public property and easements. The Public
Works Department also performs plan review activities supporting a variety of Building
City Commission Memorandum
September 27,2012
Building Development Process Fees
Page 3 of 9
Department permits on private property that will connect and/or will have potential impacts to
City-owned utilities, right-of-way and/or utility easements.
Further, the Building, Fire, and Planning Departments participate in the Certificate of
Occupancy or Completion process that allows for the use and occupancy of the structure
based on certifying that the use is permitted and that the structure is in compliance with
applicable City Codes.
2009 Building Development Process Fees Study
In mid-2009, the City initiated a study of costs and fees related to the Process with the
consulting firm Maximus Consulting Services Inc. ("Maximus"). The primary focus of the
study was to develop a simplified fee structure and associated fee levels for services
performed by the Building Department in enforcing the Florida Building Code, as well as
services performed by the Fire, Planning,and Public Works Departments in enforcing other
Federal, State and City Codes related to building permits.
On January 13, 2010, the City Commission approved four ordinances for the Building, Fire,
Planning and Public Works departments related to the fees for the Building Development
Process, as outlined in the Maximus study. These ordinances went into effect on February
1, 2010 and provided a complete overhaul of the fee structure for the above mentioned
departments.
At the time of implementation,there were increases in the fees related to the Process for the
Fire, Planning, and Public Works Departments. These were offset by discounts in the
Building Department fees so that, in the aggregate, the total combined fees charged to the
development community were to remain at. current levels. Decreases in Building
Department revenues were partially replaced by previously set aside Building Department
reserves in FY 2009/10 and are budgeted to be offset in FY 2011/12 so that costs related to
enforcing the Florida Building Code continue to be offset by Building revenues. Subsidies
from other general fund revenue sources were$725,000 in FY 2009/10,and$1 million in FY
2010/11. It is important to note that discounts were applied to fees to achieve three (3)
objectives: 1) ensure that permits are pulled for small projects. If permit fees represent a
large or excessive percent of the project costs, it will discourage customers from pulling
projects; n
permits, 2) provide lower fees for residential p o�ects, a d 3) incentivize environmental
projects.
In 2011, the Administration presented additional permit fee changes to the Committee for
consideration. These included additional reductions to the fees for certain permit types, a
continuation of discounts for permit fees related to certain permit types, a waiver of the
Consumer Price Index(CPI)increases for 2011 and 2012, and the introduction of a cap on
permit fees at 10% of the calculated cost of construction. The Committee recommended
these additional changes, and they were adopted by the City Commission and made
effective on October 1, 2011.
During the discussions regarding the 2011 changes, the Administration noted that further
changes were still being considered and would be brought back to the Committee for
consideration. Discussions were held at the July 10,2012 and August 22,2012 Committee
meetings, where the Committee recommended that the actions be brought forth to the full
City Commission for ratification.
City Commission Memorandum
September 27,2012
Building Development Process Fees
Page 4 of 9
Current Discussion Points
At this time, the Administration is proposing revising the permit fees as follows:
• Discounts should continue past September 30, 2012
When the current fee structure was adopted, there were some discounts built into the
fee structure that were set to expire on September 30, 2011. Last year, these were
extended and are now set to expire on September 30, 2012.
The original intent of these discounts were:
1) To ensure that permits are pulled for small projects. If permit fees represent
a large or excessive percent of the project costs, it will discourage customers
from pulling permits;
2) To provide lower fees for residential projects; and
3) To incentivize environmental projects.
h he ordinance be changed he Administration is recommending t at such that the t a g
discounts remain permanently in effect.
• Fees related to Planning and Public Works' efforts in the Alteration/Remodeling
Permit types should be reduced
As a result of concerns that were raised by certain segments of the development
community, as well as some concerns raised by staff, regarding the fee amounts and
administrative processes related to the fees, the Administration brought Maximus
back to review the status of the permit fee implementation to answer whether or not
the City met its original objectives, if staff was applying the fee structure correctly,
and to review the issues being encountered and identify appropriate solutions. A
copy of the Maximus report is attached as Attachment A.
Maximus' re-evaluation of the City's implementation revealed that the City's new
permit fee structure based on square feet is more simple than the previous schedule,
which was based on construction cost. Maximus spoke at length with Building
Department staff to determine if the staff was feeing permit applications correctly and
found that indeed they were. With regard to whether or not the Building
Development Process departments were recovering more in fees than costs for
operation, Maximus determined that the departments were under-recovering their
actual costs. Fee collection was actually less than what Maximus originally
projected, and not covering the costs of the departments related to the Building
Development Process.
Based on discussions Maximus had with staff, Maximus proposed refining plan
review and permit inspection times for the Alteration/Remodel permit types by the
Planning and Public Works Departments.
It should be noted that the levels of effort suggested for adjustment are not
significant components of the overall fees. Maximus estimates that the impact to the
permit fees collected will result in a savings to customers in the amount of
approximately $493,000. This amount will fluctuate depending on the number of
permits applied for,the amount of square footage being renovated,and other factors
City Commission Memorandum
September 27,2012
Building Development Process Fees
Page 5 of 9
outside of the City's control. The impact to the Planning Department Permit Fee
revenue was more significant,estimated at approximately$412,000,and the impact
to the Public Works Department budget is approximately$81,000,which will have to
be replaced by General Fund dollars to completely fund the operations.
The Administration recommends revising the permit fees for the Planning and Public
Works Departments for Alteration/Remodeling permit types in an effort to provide
more accurate permit fees and additional savings to the City's Building Development
Process customers.
• The CPI increase for 2013 pursuant to the existinq ordinance should not be waived
The current ordinances require the fees to be administratively adjusted annually to
reflect increase(s)or decrease(s)in the Consumer Price Index for Consumers in the
Southeast United States for all items, unless otherwise directed by the City
Commission. The Consumer Price Index(CPI)adjustments for 2011 and 2012 were
waived by the City Commission,finding it to be in the best interest of the City and the
public.
As a point of information for the City Commission's consideration, the CPI for the
southern region for all items from October 2010 through October 2011 was an
increase of 3.7%. This means that the fees will be increased by 3.7%. The
estimated impact on the Building Development Process departments' FY 2012/13
Current Service Level(CSL)revenues is approximately$404,000 if enacted effective
October 15, 2012. Further, the preliminary estimated subsidy for the FY 2012/13
CSL budget from non-Building General Fund revenues is approximately$1.4 million,
including indirect costs.Without the use of Building Department reserves set aside in
prior years, the subsidy would have been $2.9 million.
The Administration is recommending allowing the CPI increases of 3.7%take effect
effective October 15, 2012. It should be noted that the respective sections of the
City's Code of Ordinances dealing with the fees associated with all four (4)
departments' role in the Process allow for the fees to be "administratively adjusted
annually", and not changed by ordinance. However, since so many other changes
are proposed, the Administration felt it necessary to include the adjustment in the
attached ordinances to eliminate confusion for the codifier, staff and customers.
• Fees related to certain permit types should be revised based on the 10% cap on
permit fees and further evaluation of permit fees in general
As part of the revisions to the Building Department fees adopted in September 2011,
effective October 1, 2011, there is a 10% cap on permit fees. Section 14-61(p) of
the City's Code of Ordinances requires the Administration to reevaluate the permit
fees of any permit application where the permit fees, not including any outside
agency fees or surcharges, are greater than 10% of the value of construction as
declared on the permit application. Excluded from this process are permit
applications where the value of construction is less than $1,000 or the permit fee is
the minimum permit fee.
The reevaluation process consists of a plan reviewer using industry standard cost
estimating resources to confirm whether the value of construction as stated on the
permit application is in line with the construction industry. The Administration has
City Commission Memorandum
September 27,2012
Building Development Process Fees
Page 6 of 9
determined that the level of effort to reevaluate the construction values for all
applications triggered by the 10% cap would detract from the plan review level of
service if conducted by existing City staff. So, at the current time, this reevaluation
process is being conducted by supplemental staff hired through an agreement
between the City and a staffing provider, at a cost of approximately $140,000 per
year. It should be noted that this supplemental staffer is also a licensed inspector,
and can be called on to provide other functions as needed by the Department,so the
$140,000 is not entirely attributable to the 10% rule. However a very conservative
estimate is that approximately 55% of this inspector's time is utilized in conducting
the reevaluations.
Based on the plans submitted with the permit application, the evaluator uses RS
Means data, a widely accepted provider of construction costing, to determine the
industry standard value for the work described(determined value). The permit fees
are evaluated against the determined value to see if the fees are still greater than
10% of the determined cost.
• If the permit fees are less than 10% of the determined cost, no refund is
processed.
• If the fees are still more than 10% of the determined cost, a refund is
processed after the project construction is complete and passes all required
inspections,assuming that the refund meets the requirements of Section 14-
62(b)of the City's Code of Ordinances(refunds must exceed $100 in order
to be refunded).
• If a construction value cannot be determined by the above-indicated
resources, typically either because plans are not required as part of the
application submittal or RS Means doesn't have an appropriate category,the
actual level of effort for Ian review and inspection shall be calculated and
P P
charged, but shall not exceed the originally calculated fee at time of permit
application. When this occurs, the level of effort costs cannot be calculated
until the construction is complete, so a determination as to what the permit
fee will be and if any refund is due to the customer cannot be made until after
all inspections are complete and the project has received final approval.
The 10%permit fee cap has been in place since October 1,2011. Between October
1, 2011 and July 31, 2012, there were 11,172 permit applications approved. Of
those, only 1,481 (13.26%) triggered a 10% cap evaluation. The permit fees
associated with the over 11,000 approved permit applications exceeded$8.6 million.
If the permit fees associated with the permits that triggered the 10% cap were all
lowered to no more than 10% of the stated value of construction, the potential
reduction in permit fees would be approximately $511,000, which represents
approximately 6% of permit fees collected.
As of August 1, 2012, 1,434, or approximately 97%, of the permits that triggered a
10% cap reevaluation had been evaluated. Of those, 291 were approved for a
refund. This represents less than 20%of all permits triggered for reevaluation, and
less than 3%of all approved permit applications. Approximately$142,000 has been
approved for refunds back to the customers based on the 291 permits. This
represents 1.65% of the permit fees collected for the 11,172 permit applications
approved as of July 31, 2012. Of those remaining to be reviewed, the maximum
City Commission Memorandum
September 27,2012
Building Development Process Fees
Page 7 of 9
amount of any potential refunds was approximately $53,000. This number will be
revised as reevaluation takes place.
There are still approximately 180 permits that have been evaluated, but for which an
industry standard construction cost could not be determined, either because the
permit application does not require a plan submittal,or because RS Means does not
include a category or methodology for costing that kind of work out. The permit fees
for this work will be determined based on actual level of effort, but shall not exceed
the permit fee costs calculated at time of permit application. The total cumulative
amount of any potential refunds is approximately$125,000.
There are approximately 960 permits (approximately 65% of those triggered for a
10% cap evaluation)that have been reevaluated for which no refund is due to the
customer because the permit fees calculated at time of application are less than
10% of the value of work as determined using industry standard cost estimating
methodologies, as opposed to the value submitted at the time of application by the
applicant.
The sum of the refunds approved to date, the maximum exposure of those permit
fees yet to be reevaluated, and those that will be determined by level of effort is
$320,000. This equates to 3.7% of the approximately $8.6 million collected in
permits fees for those permits approved during the stated timeframe. It should be
stated that evaluating these plans, determining the industry standard construction
cost, and approving and processing any potential refunds is a labor intensive
process. The cost of supplemental staff reevaluate all triggered plans is
conservatively estimated to be approximately $77,000. Staff time related to
reviewing the determinations and processing the refunds has not been captured, but
has been time consuming.
Recommendations for Permit Fee Changes Related to 10% Permit Fee Cap
P
With the analysis of the 10% permit fee cap impact on revenue, staff has also reviewed the
types of permits most frequently resulting in a refund after reevaluation of the permit fees. It
is important to focus on those permit types approved for a refund, as those are the ones
where the reevaluation is reflecting that current permit fees are indeed greater than 10%of
the industry standard value of construction.
The five (5) permit types that resulted in the most refund approvals are provided here in
order from highest number of approvals to lowest. These five (5) permit types alone
represent approximately 70% of the permits where the reevaluation resulted in a refund
being issued to the customer.
• Alteration/Remodeling Permits—54 of 291 (18.56%)
• Alteration/Remodeling Condo Permits—46 of 291 (15.81%)
• Low Voltage Electrical Permits—44 of 291 (15.12%)
• Plumbing Alteration/Remodeling Permits--33 of 291 (11.34%)
• Partial Demolition Permits—25 of 291 (8.59%)
As was discussed at the July 10, 2012 Committee meeting, the Administration has already
proposed changes to the Alteration/Remodeling and Alteration/Remodeling Condo permit
types, by refining the fees for the Planning and Public Works Departments on
alteration/remodeling work. It is anticipated that these changes will reduce the
City Commission Memorandum
September 27,2012
Building Development Process Fees
Page 8 of 9
Alteration/Remodeling and Alteration/Remodeling Condo permits fees significantly enough
to no longer trigger a reevaluation on the majority of these types of permits.
With regard to the Low Voltage Electrical Permits, Plumbing Alteration/Remodeling Permits
and Partial Demolition permits, the Administration is proposing permit fee refinement as
identified in Appendix A of the City's Code of Ordinances, as outlined in the attached
summary of proposed fee recommendations(Exhibit 2), which outlines the permit fees for
the Building, Fire, Planning and Public Works Departments. Again, it is anticipated that
these reductions will reduce permit fees on these permit types significantly enough to have
permit fees remain under 10% of the determined value of construction for the majority of
these permit types. In the case of Low Voltage Electrical Permits, a fee will no longer apply
to these applications when they are submitted as part of a Master Permit,which will result in
further savings to customers.
In addition to the top five (5) permit types approved for refund, the Administration is
proposing refinements to the following permit types. These permit types represent another
approximately 7%of the permit types approved for a refund,which if approved,will address
approximately 77% of the permits approved for a refund.
• Awning/Canopy/Patio Cover Permit
• Signage Permit(both electric and non-electric)
• Repair Existing Elevator Permit
• Generators/Solar Systems
• Solar/Alternative Power
• Painting
• Installation of Plumbing Fixtures
The estimated financial impact of these fee reductions on an annual basis would be
approximately $206,000, not including the Alteration/Remodel changes described
previously. It should be noted that the Administration does not recommend that the
proposed CPI increase be applied to the permit categories outlined for revision above.
Additionally,there is a scrivener's error in Section 15-42"Adjusted Rates"in the City's Code
of Ordinances relative to the fees for the Planning Department where the language refers
just to that particular section but should refer to the Article, not the section. The
Administration is recommending the language in the Ordinance be changed for accuracy.
FISCAL IMPACTS OF PROPOSED REVISIONS
Based on the projections developed by Maximus and staff, it is anticipated that the fiscal
impact for the revisions proposed herein are as follows, assuming similar permit activity:
Revision Savin 90 cost
Planning Department Alteration/Remodeling Fee Revision $(412,009)
Public Works Department Alteration/Remodeling Fee Revision $ 81,000
CPI Increase $ 404,000
Fee Revisions Based on 10% Cap Evaluation and Further $(206,000)
Evaluation of Permit Fees in General
Net Change $(295,000)
City Commission Memorandum
September 27, 2012
Building Development Process Fees
Page 9 of 9
CONCLUSION
The Administration will continue to further evaluate permit fees for those where refinements
are recommended, as well as the remaining permit fee types, on a regular basis and bring
further recommendations to the Finance and Citywide Projects Committee for review and
discussion.
The Administration recommends that the City Commission revise the scrivener's error in
Section 15-42 of the City's Code of Ordinances, and revise fees related to the Building
Development Process as described in this memorandum, Exhibits 1 and 2,and the attached
ordinances, including:
• Fees related to Planning and Public Works'efforts in the Alteration/Remodeling
permit types should be reduced, as referenced in Exhibit 1, and
• Discounts should continue past September 30, 2012, rather than rolling over
from year to year,
• The CPI increase for 2013 pursuant to the existing ordinance should not be
waived, and
• Fees related to certain permit types should be revised, based on the evaluation
of the 10% cap on permit fees and further evaluation of permit fees in general,
and that the CPI increase should not apply to these permit types, as referenced
in Exhibit 2 and the attached ordinances.
KGB/JGG/SS/KT
T:\AGENDA\2012\9-27-12\Permit Fee Revisions\Permit Fee Revisions memo 09272012.doc
GOO bit .1
City of Miami Beach, Florida
Buildin, Development Services— Review of Implementation of Fee Study
May 2011
INTRODUCTION
This report is a review of the implementation of the development fee study conducted in
2009. It includes two deliverables; - the first reviews the structure of the fees with cost/
•revenue analysis, the second reviews current issues with the fee structure and proposes
recommendations for improvement.
REVIEW OF IMPLENTATION OF FEE STUDY (FIRST DELIVERABLE)
The City of Miami Beach contracted with MAXIMUS to conduct a cost of services study of
its development service fees. The study was completed in the fall of 2009, after which The
City of Miami Beach enacted the new fee schedule in February 1, 2010. The adopted fee
schedule includes discounts on various fee services from the full cost determined through
the cost analysis.
t
The objectives of the study were to:
a) Simplify the fee structure
b) Ensure that fees are revenue - neutral
c) Review if the City applied the fees correctly based on the final report
SIMPLICITY OF THE NEW FEE STRUCTURE
The City of Miami Beach spent a significant amount of staff time and effort during the cost
of service study to make sure that the data it provided was accurate and reasonable. It also
took the time to understand our proposed Nexus model and adapt it to the specific needs of
the City.
The City's development services fee schedule is a thirty -page document — many times
longer than we see in most cities, mostly due to the desire to tailor the schedule to a variety
of specific development activities. Length by itself does not create complexity, but it can
make it harder to find a specific item in a long list. It made the process of developing the
fee schedule take much longer than it usually does, but it is not our finding that the resulting
fee schedule is too complicated.
1
We feel that the City took a move toward simplicity by emphasizing per square foot charges }
in construction tables. We also recommend that the City limit the number of unique new
fee types that evolve over time, but a limited number of periodic changes is not, in our
opinion, a violation of the "keep it simple" principle.
REVENUE- NEUTRAL
To conduct a cost versus revenue comparison since the adoption of the new fee schedule,
we requested the following information from the City:
■ Revenue generated with new fees by month since adoption
■ City cost based on the FY 2010111 adopted budget
• Permit demand associated with those fees
MAXIMUS Consulting Services, Inc.
.15
.r
i
City of Miami Beach, Florida
Building Development Services- Review of Implementation of Fee Sturdy
May 2011
A detailed analysis with graphs of actual revenue and budgeted cost by month is attached
to this report in Excel format.
The table below shows the variance of revenue projection based on the change in fully -
loaded hourly rates from FY 2008 -09 to FY 2010 -11. The building department hourly rate
has increased by 12% but the hourly rates for Planning, Public Works and Fire have all
decreased,
2008/09 2010 /11
Fully- loaded Fully - loaded
hourly rate hourly rate % Change
Building $ 114.00 $ 127.53 12%
Planning $ 108.08 1 $ 98.80 1 -9%
Public Works $ 103.07 $ 85.49 471
Fire $ 95.46 1 $ 93.29 1 -2%
The table below shows the summary of actual revenue and budgeted costs for the four
departments involved in development services.
FY 2007/08 2CO9 Maximus Study 2011 Review
Percent Proj.
Total MAXIMUS Total MAXIMUS Cost Revenues
Projected Percent Projected Recovery Actual Revenue Estimated Percent with
Actual Revenue at Full Cost Revenue with with March 2010- Cost for FY Cast Proposed
TOTALREVENUE Revenues Cost Recovery I Discounts Discounts Feb 2011 2010/11 Recovery Revisions
BUILDING
Annual Revenue' $ 9,732,237 $ 9,536,470 $ 8,144,734 $ 7,833,458 $ 10,680,846 $ 7,833,458
Monthly Average S 811,020 $ 794,706 102% $ 678,728 85% $ 652,788 $ 890,071 73% $ 652,788
PLANNING
Annual Revenue $ 452,023 $ 1,597,015 $ 1,337,078 $ 1,163,547 $ 1,453,285 $ 751,274
Monthly Average S 37,669 $ 133,085 28% S 111,423 84 1 % $ 96,962 $ 121,107 80% $ 62,606
PUBLIC WORKS (Engineering)
Annual Revenue S 650,448 $ 1,313,507 $ 1,184,707 $ 599,599 $ 1,090,211 $ 520,265
Monthly Average $ 54,204 $ 109,459 SM. $ 98,726 90% $ 49,967 $ 90,851 55% $ 43,355
FIRE (Prevention)
Annual Revenue $ 648,049 $ 1,836,380 S 1,499,136 $ 1,408,680 $ 1,799,652 $ 783,847
Monthly Average $ 54,003 $ 153,032 3S% $ 124,928 82% $ 117,390 $ 149,971 78% $ 65,321
GRANDTOTAL $ 11,4SZ757 $ 14,283,373 80°,6 $ 12,16S,655 r 85 $ 11,005,2$4 1 $ 15,073,994 73%1$ 9,888,844
'Excludes One time project Closeout revenues in the amount of $ 2,673,120collected in FY 2007 /08and $922,627 collected between March 2010 and February 2011
Our understanding is that the development industry itself has changed since 2009, resulting
in a shift from major new construction to minor remodeling projects. That appears to be the
most likely reason for the shortfall.
MAXIMUS Consulting Services, Inc.
16
City of hliatni Beach, Florida
Building Development Services— Review of Cmplefnentation of Fee Study
May 2011
APPLICATION OF FEE STRUCTURE
Has the City applied the fee schedule correctly? Not having directly observed how City
staff calculated fees, MAXIMUS cannot answer this question based on direct observation of
how fees were calculated. However, City staff demonstrated to us that they understood
- how to calculate and apply fees.
Alteration /remodel applications generated the most discussion in this project, but that
discussion was more an expression of concern that the prices seemed high than how to
apply fees.. During this project, we had several conversations with City staff that left us
confident that they know how to apply fees correctly and that reasonable processes are in
place to avoid charging unfair or excessive fees.
One additional piece of evidence that staff are applying fees correctly is the finding that
revenues from permits are roughly equal to the underlying costs of each category of service
and in no case is revenue greater than the underlying cost pool
RECOMMENDATIONS ON CURRENT ISSUES (SECOND DELIVERABLE)
In 2009, the City of Miami Beach adopted a new fee schedule for permits issued by the
departments of Building, Fire, Planning and Public Works (Engineering). City staff have
gained experience using this schedule and feel that certain changes may improve the ease
Of use and collective understanding of how to apply the fees in the ordinance. The purpose
of this report is to address current issues and potential.. new fee categories that were
identified during brainstorming sessions with the City of Miami Beach. This report
addressed the following issues:
The latest proposed "glitch ordinance" drafted to amend the fee schedules
• Current issues with the fee structure, including:
o Alterations /Renovation Permits
o Single Family Homes
o ROW fees /crane fees
o High rise fees
'MAXIMUS also reviewed ten alteration /renovation projects that the City deemed illustrative
of questions about how to apply the pricing in the ordinance. These examples are provided
in a separate file.
"GLITCH BILL " - METHODOLOGY
The basic premise of activity -based costing is simple — apply an inclusive hourly that
reflects the cost of resources to the time required to provide a service. In our 2009 study, a
critical piece of our methodology was the hourly rate calculation. The model applies hourly
rates to City staff explanations of time requirements to provide various services With
respect to the "glitch bill,' we-find that the City correctly applied the MAXIMUS methodology
in calculations to arrive at prices for newly - listed services.
MAXIMUS Consulting Services, Inc.
-3-
17
City of Hiami Beach, Florida
Build ig Developruent Services— Review of Implementation of Fee Stuc y
ilfay 2011
We have three recommendations regarding the "Glitch Bill."
1) While it is sometimes necessary to add additional fee categories, the City should
implement a review process so that the new fee categories add clarification and
simplification and are not overly complicated or duplications of another fee. We
understand the City's need for the additional fees in the glitch bill and believe that
these add clarification.
2) Continue the practice of applying rates to estimated time to provide services. In
2009, we worked with staff to estimate the time to perform each service. We spent a
great deal of time refining these efforts and checking them against available hours
and comparing them to the reported effort required by other local building
development services. By extending time estimates by quantities of each
transaction type, we built up a total.time requirement for each department. We
reconciled the total time reported for each department to the time available in each
department, net of the time required for paid leave and administrative duties.
3) In the same vein, we suggest that the City of Miami Beach use the annual quantities
multiplied by the new fee prices to determine the financial impact of these changes.
The only new category that we recommend is one for "other projects not listed." It is
impossible to predict all of the types of construction that may occur. In such cases, we
recommend adding a category to the fee schedule as follows:
"Other projects not listed. in case of a project not otherwise listed, the Building
Director or designee shall apply the hourly rates for each department involved to an
estimate of time required to review and inspect a new project."
ALTERATIONS /REMODEL
HISTORY
Typically, we use a model with a. category for alteration /remodel permits in different
occupancy types. The effort required for such permits is less than that involved in
construction of new premises. In earlier drafts of our analysis for the City of Miami Beach,
our model contained Level 2 Alteration categories for various occupancy types.
During draft reviews of our results in 2009, the cost of these activities were deemed
sufficiently similar to new construction to merit eliminating the Level 2 Alteration permits in
each occupancy type where it had been to that point and simply using the new construction
category to price alteration /remodeling permits.
Recently, City staff indicated that for some of the applications received, the new
construction category might result in an unreasonably high cost — defined as a permit
whose price is a significant cost relative to the cost of the underlying construction work
itself. This may reflect construction industry trends in the last two years, in which,
nationally, there are more small alteration projects and fewer projects involving new
construction or significant remodeling.
N4AXl_MUS Consulting Services, Inc.
4-
18
City of Miami Bench, Florida
Building Development Services- Review of Implementation of Fee Siudy
tYlay 2011
In reviewing the current situation, MAXIMUS finds that a reasonable resolution is to
determine if the scope of remodeling will involve departments other than Building. The new
construction permit pricing assumes involvement of the departments of Building, Fire,
Planning and Public Works. After a detailed review, it was determined that all departments
are still involved, but that the labor estimates for Planning and Public Works needed to be
reduced to match the actual time that staff spend on these projects.
ATTACHMENT 2
City ofMami Beach, Florida
PROPOSED RENOVATION AND NEW CONSTRUCTION FEES
- PROPOSED DISCOUNTEDFEE=Irw' Foe Per
-
Square Footage ;: , - :: - ineiaiiferttatSgFt (Pertfilr{dmdSgFtl; =' 'i ''TOTk}.P,ROJBCTG�Tv
qas� Occupancy Type FROM UP TO Ae}ittAng Fine;
0 500 - Si S._:_Atl.3af °< 522E( =
B Businass 301 2.500 1 25592 2 93$7. t'`.: 88.}2 5 : 6- 3i0Si, ,3
2.501 25,000 $; `80.83 S;: '7.40. S "- `:o:i8 2 `0$7: Si.}0713:}8 - 5 - 12.22730 _
25,0011 So.00O S'� ; 3PaT Si ^ .5.7} S 440 S - '; ' 0.62' S ". , ° 52.34 3= 32280.Q9 f = �5,3TSAR
METHODOLOGY
We worked with City staff to review and update the time spent working on Level 2
alterations. The departments of Building and Fire reviewed their previous estimates and
confirmed that they were reasonable. The departments of Planning and Public Works
submitted changes. We used the same methodology as in the 2009 study:
1) We worked with staff to determined the labor effort for each type of Level 2
alteration by occupancy type
2) If staff asked us to scale the time estimates by project size, we did so based on
the same scaling percentages as the 2009 study
3) We extended the departmental hourly rates to the time data that the departments
supplied to reflect the cost of each activity
4). We update the fee schedule to show the actual cost and then applied the same
percentage discounts to the recommended fees as in 2009
SPECIAL CASES
There are two special cases that need to be noted:
1) Planning requested that we calculate a separate fee for alterations done in
historic districts because they require additional labor effort. While we
understand their desire for this request, we found that the difference or percent
fee increase for historic properties was about 1 %, which we believe is not
sufficiently material to justify the complexity of adding a new category to the fee
schedule.
2) Staff report that Change of Use should be charged as New Construction. The
City needs to clearly indicate this on the fee schedule. Our analysis has
assumed that no permits are change of use. This assumption will undervalue the
predicted revenue, but the City was not able to estimate how many alteration
permits at this time require a. change of use at this time.
MAXLM US Consulting Services, Inc.
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City of iVflami Beach, Florida
Buildi»d Development Services— Review of Implementation of Fee Study
lVay 2011
REVENUE'IMPACT
The City asked MAXIMUS to determine the financial impact of this change. The table
below reflects the updated data from Planning and Public Works.
Revenue Com arisbrt
Current Revenue Predicted Revenue (w/
(Building, Fire, Planning, updated labor and
Public Works ) discounts
Total $ 3,906,651 $ 3,413,214
Additional Public
Subsidy $ (493,437)
Additional Planning
Subsidy $ ( 412,273)
Additional Public
Works Subsidy $ ( 81,164)
SPECIALTY PERMITS VERSUS LEVEL 2 RENOVATIONS /NEW CONSTRUCTION
The current fee schedule contains specialty permits for construction permits such as
kitchen and bath remodels. The City asked what to do when an application covers what
would normally be several different specialty permit items - should they be charged for
specialty permits and when should they be charged based on the square footage of the
occupancy type of level 2 alteration /remodel (which is the same fee as new construction)?
The purpose of the fee schedule is to charge people what it costs to provide the services
their requests invoke. The cost for specialty permits was determine based on how much
staff time it would required to provide just that item. When a person needs to permit
multiple work items, the staff time required is actually less (due to economies of scale). For
example, inspectors can often make one trip to inspect multiple items.
The point at which the City's labor estimate for providing services based on level 2
alteration /remodel become more efficient than for specialty permits (usually after 2 -3
specialty permits are needed) is when the applicant should be charge for a level 2
alteration /remodel. The challenge here is that there are so many permutations of what an
applicant may wish to do, that it is not feasible to produce a schedule that anticipates all of
those project types. The schedules follow an average cost methodology. MAXIMUS is not
aware of any legal requirement to price services based on the requirements of single
customers. It is not even clear that such a method would provide reduced fees.
Theoretically, it would result in lower charges for some and higher charges for others. With
actual revenue data suggesting that City collections are below the full cost recovery levels
suggested in the 2009 report, it seems that, despite City concern about potentially
overcharging, that assessing a specialty permit fee for each feature is valid.
SINGLE FAMILY HOMES
NIAXIMUS Consulting Services. tnc.
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City of Nflami Beach, Florida
Building, Development Services— Review of Implementation of Fee Study
May 2011
The Building Department reviewed all labor time estimates and confirmed that the new
construction fee schedule time estimates were correct. Based on this, the City of Miami
Beach can make a policy decision to discount single family homes if it wishes, although the
cost data would support full cost pricing. The City has already decided to discount all
custom homes less than 1,500 square feet. However, this is a policy decision and does not
affect how much it actually costs the city to provide these services.
Square Footage TOTAL PROJECT COST- ;? TOTAL 0RO,lECT_COST:
Percent
Class Occupancy Type FROM UP TO FROM TO FROM fi0_", Discount
0 1.500 , $0 $ .9,635.18 ., SQ+`.: - 5,405.78 ,- " - 63%
R -3 Dwe(Iings— Custom Homes 1,501 2,500 S 9,775.66 $ 11,039.98; =S: °_.6,419.20 S- " ! 416 319 -98 '
2.50t 10,000 •5" 11,80.46 $. "21,578.04 5... 1_ {,180.46 S 21,576A0: a%
10,001 50,000 $'21,703.02 S 72,384.00 $' 21J03.02 ,$ 72,384,00 0%
In our experience, it is rare to discount single - family home permit prices. With all due
respect to limiting charges to applicants, these calculations reflect the value of the work
done, they amount to small percentages of total project cost and charging based on cost
protects other taxpayers from having to pay part of the cost of these private - benefit
transactions.
RIGHT OF WAY FEES /CRANE FEES
Public Works used to charge based for blocking of Right -of -Way, (plus .25 Per L.F. per day,
plus a Right -of -Way obstruction fee of $10.53 per square ft per day. The City is now
charging for the blocking of right
Crane operators complained that the current $953 ROW obstruction fee which the crane
operators pass onto their customers was too costly for crane lifts requiring less than 2
hours to complete.
Public Works was tasked to create a flexible ROW obstruction fee to be assessed
separately for local, collectors and arterial roadways /street corridors; by implementing a
priority /standard plan review process with priority reviews being processed as an
emergency review to be completed on the same day submitted.
The flexible obstruction rates for priority /standard reviews clearly demonstrate that staff
reduced level of efforts per category produced a significant fee reduction for crane
operations performed within the public rights of way.
In the "Glitch Bill" amending the original fee schedule, Public Works has proposed charging
for ROW based on the corridor classification (local, collector, arterial) and whether the
review is propriety or standard. This is a standard structure for Public Works and
tVLAXIMUS Consulting Services, Inc.
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City of Miami Beach, Florida
Building Development Services— Revie►v of Implementation of Fee Study
May 2011
MAXIMUS supports this change. This change also makes it easier for Public Works to
provide labor based justifications for their fees.
HIGH -RISE PERMITS
In 2009, MAXIMUS worked with City staff to gain an understanding of labor efforts for each
service. We ask City staff to decompose their work into steps and will estimate the time
required for each step. Since it is not feasible to ask how long the City spends with intake,
plan review, and inspection for each occupancy type and each size project within each
occupancy type, we make some simplifying assumptions.
■ For certain permit types, we asked questions about effort level differences for
projects of different sizes in a single occupancy type. For example, we asked staff
how, long it took to provide a group of services for the following sized businesses.
a�elafed 5fandard
(BG ' Building Use,' ; : Occupant
Class. e.., IBClFBC O anc T e Size s
Business :':::5ad
".' _ `' tom 'teteafllfRes= CommerciatScati» _° ':' -2 .
`�° ~ corn 7efe alliliies= Coinnie`rcia/ Scaliri "; ::_ ;. =.:< > .' >,5,000`°
cam Jetealfm4is_commercialScalf :�i 10000;
,.. coirJ fete alfllria�Goiir»erclatScalin ":: ::':•, 28;000
cOm leis atf "11nes= COmi»ertial ScaU `50;000
6 Business Hl'h_Rfse -cWO dO sf : '25,000
B _ Business=Hi h Rlse 50,000 sfta t0i3,000 sf ` :7a :000 .
B Business =Hi h Rise z104,006.sf i 500a .
■ The City's answers about how much longer it takes to serve a larger -sized project
within these key occupancy types represent a percentage difference that we can
apply to related occupancy types.
The standard MAXIMUS Nexus model contains an occupancy category for business and
business high -rise (as seen above). However, MAXIMUS confirmed that the labor required
to provide a business permit and a business high =rise permit were sufficiently similar to
combine the two categories.
In addition, the City grouped occupancy types where the cost per square foot for permits
greater than 50,000 was similar. On average, it always requires more time to permit a
larger building. As a result, the cost of a larger project should be more than a smaller sized
permit of the same occupancy type. However, the cost for square foot actually decreases.
The City has taken this unique aspect into consideration when developing their fees. Many
cities, especially those that have not based their fee structure on an activity-based costing
study, do not take this into consideration.
MAXIMUS Consulting Services, Inc.
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City of Aliand Beach, Florida
8W1dirr, Development Services— Review (?f Implementation n` Fee .Study
MaY 2011
Staff spent significant time deciding that this was the best solution. Unless the underlying
facts have changed — and'we have not seen evidence of this — we recommend no change
to the structure of the 2009 report on this point.
PUBLIC WORKS REVENUE
FY 20071,36 2009 Maum us Study 2011 Rauaw
Percent Cost
- Recovery Percent Cost Acual
Total MAAIPAUS based on FY Total MAMOUS Reco•.oryeuln Rew -rue
Esoma:ed Full 2007= Projected Ra Adopted .Marcn2010 ESOmated Cost Parcant Cost
TOTAL REVENUE Actua`. Pwenues Cost Revenues wile Adopted FeaS Fees Feb 2011 `or FY 2010/11 Recovery
- PUBLIC WDRKS
(Engineering)
Annual Resenue $650,448 51.313,507 51,184,707 5599,599 S 1,090.211
htonUlly A.era9e 554204 5109,459 50k 598,726 90% 549,967 S 90.851 55%
Coastal ReUew S
15,461 S IJ250
SawarCapacrtp
Cer(rrcahon letter
Application S 185 528 S 180.000
Bacl,now Annual
Mspecuon Parma tFre
Suppress,cn Fee) _S 154,607 5 154,000
Annual R e,enue
Adjusted S650.448 $957,911 5837.41; $599.599 $ 795,066
554,204 S79,826' 68% $59.765 87 $ 49,967 5 66.256 75 1 a
Based on our initial review, it appeared as if Public Works was only recovering 55% of
costs, while most other departments were recovering closer to 75 %. The main reason for
this difference is that our analysis included three new potential fee categories that were not
implemented. Excluding these, Public Works actually recovered 75% of cost.
In addition, the Public Works department has continued to see a decline in permit activity.
This is the main reason Public Works less than 100 %, of cost. In 2008, Public Works
performed 936 right -of -way permits. In 2011 the annualized number is projected to be 638,
which is a 68% decline in permit volume.
N LA`{IMUS Consulting Services. Inc.
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ORDINANCES TO BE SUBMITTED
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