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2014-28767 Reso RESOLUTION NO. 2014-28767 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE ADMINISTRATION TO DEVELOP A NEW PROGRAM FOR EXPEDITED LIEN SEARCHES WITH A TURN-AROUND TIME OF ONE BUSINESS DAY PER LIEN SEARCH, AND AUTHORIZING THE ADMINISTRATION TO CHARGE CUSTOMERS $250.00 FOR AN EXPEDITED CERTIFIED LIEN SEARCH AND $300.00 FOR AN EXPEDITED CERTIFIED LIEN SEARCH FOR PROPERTIES WITH INTERESTS IN A COMMON AREA. WHEREAS, the City of Miami Beach ("City") processes approximately 1,600 certified lien searches annually; and WHEREAS, current fees for certified lien searches range from $100 to $150 with approximate revenues at$227,500; and WHEREAS, in September 2009, the City established the current fee structure for lien searches; and WHEREAS, when conducting a certified lien search, City staff researches open building permits, code violations, building violations, in addition to unpaid amounts for City charges (i.e. water, sewer, stormwater, waste, resort tax, special assessments, business tax, and miscellaneous City bills); and WHEREAS, on July 2, 2014, City staff conducted an industry meeting for title companies to discuss the City's current lien processes; and i WHEREAS, the top 25 title search lien customers were invited to attend this meeting; and WHEREAS, during this meeting with the title search companies, the industry suggested that the City offer an expedited 24-hour certified lien search service; and WHEREAS, currently, the City publishes a turn-around time of ten business days for certified lien searches; and WHEREAS, the actual average turn-around time for these lien searches is approximately five business days; and WHEREAS, the industry, as a result of increased business in the real estate market, as well as their sensitivity to closing dates, has expressed an interest in a paid expedited certified lien search service; and WHEREAS, the Administration has analyzed the projected costs and revenues associated with developing a new program for expedited lien searches with a turn-around time of one business day per lien search; and WHEREAS, the Administration has additionally surveyed neighboring communities to see what the market is charging, where available, for expedited certified lien searches; and WHEREAS, it is projected that the proposed new program, which would charge $250 for an expedited certified lien search and $300 for an expedited certified search for properties with interests in a common area, would generate an additional $75,000 in revenue to the City; and WHEREAS, the Finance and Citywide Projects Committee, at its September 24, 2014 meeting, approved the proposed program. NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH that the Mayor and City Commission authorize the Administration to develop a new program for expedited lien searches with a turn-around time of one business day per lien search, and authorizing the Administration to charge customers $250.00 for an expedited certified lien search and $300.00 for an expedited certified lien search for properties with interests in a common area. PASSED and ADOPTED this 30 day of !Se TPiW bQr , 2014. i y' Philip Levine% 4or ATTEST: '' � �, v � X / RaYael E. Gra ado, City Cler ' ����0plp ORATD� . Ir 1- APPROVED AS TO JLM/PDW/GE/MM ', .. } ,�� �_ FORM & LANGUAGE T:\AGENDA\2014\Expedited Liens Reso.&o,,,'r•; ••e, & FOR EXECUTION City Attorney Dote COMMISSION ITEM SUMMARY Condensed Title: Resolution of the Mayor and City Commission of the City of Miami Beach, Florida,authorizing the Administration to develop a new program for expedited lien searches with a turn-around time of one business day;charging customers $250.00 for an expedited certified lien search and $300.00 for an expedited certified lien search including the common area. Key Intended Outcome Supported: Streamline the delivery of services through all departments. Supporting Data(Surveys, Environmental Scan,etc.): 67%of the businesses surveyed, agree or strongly agree that it was easy to get someone who could help them. Item Summa /Recommendation: The Administration recommends that the City Commission approve the item. The City of Miami Beach processes approximately 1,600 certified lien searches annually. Current fees for certified lien searches range from$100 to$150,with approximate revenues at$227,500 In September 2009, the City of Miami Beach established the current fee structure for lien searches. When conducting a certified lien search,City staff research open building permits,code violations;building violations, in addition to unpaid amounts for City. On July 2, 2014, City staff conducted an industry meeting for title companies to discuss the City's current lien processes. The top 25 title search lien customers were invited to attend this meeting. During this meeting,as well as,though routine correspondence with title search companies,requests for an expedited 24 hour certified lien service were suggested by the industry. Currently, the City publishes a turn-around time of ten business days for certified lien searches. The actual average turn-around time for these lien searches is approximately five business days. The Administration has analyzed the projected costs and revenues associated with developing a new program for expedited lien searches with a turn-around time of one business day. Administration has additionally surveyed neighboring communities to see what the market is charging,where available,for expedited certified lien searches. It is anticipated that proposed program would entail the efforts of one full-time entry level position of a Financial Analyst I with a salary of approximately$40,000 and total costs of$70,000. This analysis takes into account the labor costs and benefits,as well as, related materials and overhead associated with processing searches. It is projected that the proposed new program,charging$250 for an expedited certified lien search and$300 for an expedited certified condominium search,would generate an additional$75,000. Advisory Board Recommendation: F,he Finance and Citywide Projects Committee, at their September 24, 2014 meeting, recommended the proposed changes be approved by the Commission. Financial Information: Source of Amount Account . Approved Funds: 1 2 3 4 OBPI Total Financial Impact Summary: City Clerk's Office Legislative Tracking: Patricia D. Walker, ext. 6461 Sign-Offs: Department Director h' f financial Officer City Man er GPE PDW JLM TAAGENDA\2014\September 30\Expedited Lien Fee Summ.doc ,I IAMIBEACH AGENDA ITE �7G ' DATE 3 MIAMI BEACH City of Miami Beath, 1700 Convention Center Drive,Miami Beach,Florida 33139,www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Philip Levine and Members the City C mmission FROM: Jimmy L Morales, City Manager DATE: September 30, 2014 SUBJECT: RESOLUTION OF THE MAYOR ND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE ADMINISTRATION TO DEVELOP A NEW PROGRAM FOR EXPEDITED LIEN SEARCHES WITH A TURN-AROUND TIME OF ONE BUSINESS DAY; CHARGING CUSTOMERS $250.00 FOR AN EXPEDITED CERTIFIED LIEN SEARCH AND$300.00 FOR AN EXPEDITED CERTIFIED LIEN SEARCH INCLUDING THE COMMON AREA. ADMINISTRATION RECOMMENDATION Adopt the Resolution. KEY INTENDED OUTCOME SUPPORTED • Streamline the delivery of services through all departments. BACKGROUND The City of Miami Beach processes approximately 1,600 certified lien searches annually. Current fees for certified lien searches range from$100 to$150,with approximate revenues at $227,500 (Figure 1). Figure 1 — FY 2014/15 Lien Revenues - City of Miami Beach FY 2014/15 Certified Lien Search Revenues (Approximate) • of De'scriptibn Purch. Fee ReVenue Certified Lien Searches - Condos 1,350 $150.00 $202,500.00 Certified Lien Searches - Other 250 $100.00 $25,000.00 1,600 $227,500.00 In September 2009, the City of Miami Beach established the current fee structure for lien searches. When conducting a certified lien search, City staff research open building permits, code violations, building violations, in addition to unpaid amounts for City charges (i.e. water, sewer, stormwater, waste, resort tax, special assessments, business tax, and miscellaneous City bills). September 30, 2014 City Commission Memo Certified Lien Fee Resolution Page 2 of 3 ANALYSIS On July 2, 2014, City staff conducted an industry meeting for title companies to discuss the City's current lien processes. The top 25 title search lien customers were invited to attend this meeting. During this meeting with the title search companies, requests for an expedited 24 hour certified lien service were suggested by the industry. Currently, the City publishes a turn-around time of ten business days for certified lien searches. The actual average turn-around time for these lien searches is approximately five business days. The industry, as a result of expanded business in the real estate market, as well as, their sensitivity to closing dates, has expressed an interest for a paid expedited certified lien search. The Administration has analyzed the projected costs and revenues associated with developing a new program for expedited lien searches with a turn-around time of one business day. Administration has additionally surveyed neighboring communities to see what the market is charging, where available, for expedited certified lien searches. It is anticipated that proposed program would entail the efforts of one full-time entry level position of a Financial Analyst I with a salary of approximately $40,000 and total costs of $70,000. This analysis takes into account the labor costs and benefits, as well as, related materials and overhead associated with processing searches. It is projected that the proposed new program, charging $250 for an expedited certified lien search and $300 for an expedited certified condominium search, would generate an additional $75,000 (Figure 2). Figure 2— FY 2014/15 Proposed Lien Revenues City of Miami Beach FY 2014115 Analysis of Proposed Certified Lien Search Revenues • of ••• •• 1 Descri'Ption ° Budget Certified Lien Searches-Condos 950 $150.00 $142,500.00 Certified Lien Searches-Other 150 $100.00 $15,000.00 Expedited Lien Searches-Condos 400 $300.00 $120,000.00 Expedited Lien Searches-Other 100 $250.00 $25,000.00 Totall 1,600 1 $302,500.00 The Finance and Citywide Projects Committee, at their September_ 24, 2014 meeting, approved the proposed program. September 30, 2014 City Commission Memo Certified Lien Fee Resolution Page 3 of 3 CONCLUSION The City Administration recommends that the Mayor and City Commission of the City of Miami Beach, Florida, adopt the attached resolution, authorizing the authorizing the Administration to develop a new program for expedited lien searches with a turn-around time of one business day; charging customers$250.00 for an expedited certified lien search and $300.00 for an expedited certified Lien search including the common area. JLM/PDW/GE/MM TAAGENDA\2014\September 30,2014\ xp, ited Lien Fee Memo September 10,2014 I