Ordinance 2019-4253 LAND DEVELOPMENT AND PERMITTING FEES
ORDINANCE NO. 2019-4253
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, AMENDING THE
CODE OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING
APPENDIX A, "FEE SCHEDULE," TO REVISE THE PER-
SQUARE-FOOT FEES CHARGED FOR SERVICES RELATED
TO REVIEWS OF PLANNING BOARD, BOARD OF
ADJUSTMENT, HISTORIC PRESERVATION BOARD, OR
DESIGN REVIEW BOARD APPLICATIONS; AND PROVIDING
FOR REPEALER, SEVERABILITY, CODIFICATION, AND AN
EFFECTIVE DATE.
WHEREAS, the City of Miami Beach (the "City") has the authority to enact laws which
promote the public health, safety and general welfare of its citizens; and
WHEREAS, the City Code establishes fees for development review, permitting, and
other services to cover the City's costs of implementing the regulations contained therein; and
WHEREAS, the City Administration has reviewed the structure of fees associated with
Planning Board, Board of Adjustment, Historic Preservation Board, and Design Review Board
applications; and
WHEREAS, in order to better align the amount of permit fees charged with the actual
costs incurred by the City Administration in its review of land development board applications,
the Administration recommends the adoption of this Ordinance; and
WHEREAS, the amendments set forth below are necessary to accomplish the above
objectives.
NOW THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, AS FOLLOWS:
SECTION 1.
Appendix A to the City Code, entitled "Fee Schedule," is hereby amended as set forth in
"Exhibit A" to this Ordinance.
SECTION 2. REPEALER.
All ordinances or parts of ordinances and all section and parts of sections in conflict
herewith are hereby repealed.
SECTION 3. CODIFICATION.
It is the intention of the City Commission, and it is hereby ordained that the provisions of
this ordinance shall become and be made part of the Code of the City of Miami Beach as
amended; that the sections of this ordinance may be renumbered or relettered to accomplish
1
such intention; and that the word "ordinance" may be changed to "section" or other appropriate
word.
SECTION 4. SEVERABILITY.
If any section, subsection, clause or provision of this Ordinance is held invalid, the
remainder shall not be affected by such invalidity.
SECTION 5. EFFECTIVE DATE.
This Ordinance shall take effect ten days following adoption.
PASSED and ADOPTED this /3 day of /I4rc4 , 2019.
11111
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ATTEST:
Dan Gelber
3 ZY et Mayor
Ra ael E. G nad APPROVED AS TO
City Clerk FORM AND LANGUAGE
& FOR EXECUTION
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City Attorney -Date
First Reading: February 13, 2019 `
Second Reading: March 13, 2019 N
Underscore denotes new language
denotes deleted language
(Sponsored by Commissioner John Elizabeth Aleman)
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2
Subpart B. Land Development Regulations
Chapter 118.Administration and Review Procedures
118-6 Cost recovery
Review and Report by outside source TBD
118-7 Fees for the administration of land development regulations
General Fees for Public Hearing
Application for preliminary evaluation for public hearing 500.00
Application for public hearing.See Sec. 118-7 for applicable waivers 2,500.00
Fee may be reduced by
Fees for design review board or historic preservation board- For a 4/7 th affirmative
nonprofits proposing art in public places and/or non-commercial vote of the city
artistic murals,graphics and images commission via
resolution*
*The nonprofit corporation must be in operation for a minimum of
one year, must maintain its tax-exempt status in good standing with
the Internal Revenue Service (IRS) and must provide access of its
financial statements to the city, in order to assist the city commission
in determining the economic viability and/or necessity for the waiver
of fees.
Application for clarification of previously approved board order 1,500.00
Application for amendment to an approved board order 2,500.00
Application for extensions of time of a previously approved board
1,500.00
(non-administrative)
3 times original
Application for after the fact approval
fee
Advertisement(Additional fees may apply based on notice 1,500.00
requirement for LDR.Comp. Plan and corresponding map
amendments)
Mail Notice (per address) 4.00
Posting(per site) 100.00
Withdrawal or continuance prior to public hearing 500.00
Deferral of a public hearing 1,500.00
118-
Amendment of the Land Development Regulations, Zoning Map,
162(a),
(b) Comprehensive Plan, and Future Land Use Map
Amendment to the permitted, conditional or prohibited uses in a
2,500.00
zoning category(per use)
Amendment to the permitted, conditional or prohibited uses in the
comprehensive plan 2,500.00
Amendment to the zoning map designation (per square foot of lot
0.50
area) up to 5,000 sq.ft.
Amendment to the zoning map designation (per square foot of lot
0.70
area)5,001 sq.ft. and greater
Amendment of future land use map of the comprehensive plan (per
0.50
square foot of lot area) up to 5,000 sq.ft.
Amendment of future land use map of the comprehensive plan (per
0.70
square foot of lot area) 5,001 sq.ft. and greater
Amendment to the land development regulations(per section being
amended) 10,000.00
Amendment to the comprehensive plan (per goal, policy,or objective
being amended) 10,000.00
118-193 Conditional Use Permit
100.00
Application for conditional use permit for an assisted living facility
(per bed)
118-253 Design Review
.50
Application for Design Review Board approval (per gross square foot
of new construction) Up to a maximum
of$40,000
118-321 Land/Lot Split
See application fees under General Fees
118-353 Variances
Per variance requested—See section 118-7 for applicable waivers 500.00
118-
562, Certificate of Appropriateness
118-564
.50
Application for COA(per gross square foot of new construction) Up to a maximum
of$40,000
118-591 Historic Designation
Application for district designation (per platted lot) 100.00
Planning Director determination of architectural significance (142-
108) 2,500.00
Staff Review and Miscellaneous Fees
Preliminary zoning review(Dry Run) up to 5,000 sq.ft. 2,500.00
0.50
Preliminary zoning review(Dry Run) per square foot fee beyond
5,000 sq.ft. Up to a maximum of
$40,000
Board Order Recording up to 10 pages (11+pages will be assessed a
per page fee) 100.00
Status Reports 1,000.00
Progress Reports 2,500.00
Failure to appear before a board for Status or Progress Report 2,500.00
Zoning Verification letter(per address or folio- includes 1 hour of
250.00
research)
Zoning Interpretation Letter 1,000.00
Research per hour fee (beyond four hours per submittal) 150.00
Excessive Review per hour fee (beyond four hours per submittal) 150.00
Review of Covenants or Easement 5,000.00
Modification or release of Covenants or Easement 2,500.00
Courier(per package) 10.00
Recording fee (up to 10 pages) 100.00
Per page recording fee (beyond 10 pages) 10.00
Paint permit(non-online applications) 75.00
Signs(not requiring a building permit) 75.00
Hard copy(paper)submittal conversion of documents to electronic
TBD
format shall be charged at city's cost from vendor
Ordinances - R5 E
MIAMI BEAH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: March 13, 2019
1:30 p.m. Second Reading Public Hearing
SUBJECT: LAND DEVELOPMENTAND PERMITTING FEES
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AMENDING THE CODE OF THE CITY OF
MIAMI BEACH, FLORIDA,AMENDING APPENDIX A, "FEE SCHEDULE," TO
REVISE THE PER-SQUARE-FOOT FEES CHARGED FOR SERVICES
RELATED TO REVIEWS OF PLANNING BOARD, BOARD OF
ADJUSTMENT, HISTORIC PRESERVATION BOARD, OR DESIGN REVIEW
BOARD APPLICATIONS; AND PROVIDING FOR REPEALER,
SEVERABILITY, CODIFICATION,AND AN EFFECTIVE DATE.
RECOMMENDATION
The administration recommends that the City Commission adopt the Ordinance, amending
Appendix A.
ANALYSIS
HISTORY
On December 14, 2018, the Finance and City Wide Projects Committee (FCWPC) discussed
an item pertaining to developer fees associated with land use boards. The Committee
recommended that the City Commission amend appendix A (fees) to impose a temporary cap
on the per square foot fee associated with land use board applications. The Committee
recommended an initial cap of $40,000.00 and asked the Administration to study the figure
further.
On January 16, 2019 the City Commission discussed a proposed amendment to appendix A
(Fees) and directed the City Administration to bring back an ordinance amending appendix A
(fees)to create a cap on the per square foot fees for certain land use boards for first reading on
February 13, 2019. Additionally, the City Commission directed the City Manager to allow for a
temporary hold on per square foot fees for Design Review and Historic Preservation Board
applications that exceed $40,000, until an amendment to appendix A is adopted at second
reading. This hold is applicable until a second reading adoption of an amendment to appendix
A, and any relevant development application has been required to acknowledge such.
BACKGROUND
In 2014 a review of the City's adopted Development Review Fee Schedule was conducted to
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determine if the fees were still at the appropriate rates 10 years after the prior review. With
variations in economic conditions and increased rates for external costs, the fee schedule did
not accurately represent the costs to the City, and following multiple presentations and favorable
recommendations from, Finance and Citywide Committee, Land Use Development Committee,
Planning Board, and four hearings at City Commission, the fees were adjusted in October of
2015, with the intent to recover costs associated with development. In consideration of ongoing
projects, the new fees were not implemented until May of 2016. Additionally, prior fees were
honored for projects which had applied for board approval or building permit.
On April 26, 2017, the City Commission referred an item to the Finance and Citywide Projects
Committee to discuss the fees charged to developers to appear before the city's land use
boards. City staff conducted internal reviews and engaged the firm of Keith & Schnars to
expand on the city's review, compare City of Miami Beach fees and processes to other cities as
well as provide recommendations.
The fee review and analysis process included comparing the fee schedule in the City of Miami
Beach with the fee schedules in the following municipalities: City of Delray Beach, City of Fort
Lauderdale, City of Hollywood, Miami-Dade County, City of Miami, City of Coral Gables, and
City of Key West. Meetings were held with city staff and stakeholders to gather background
information and data on recent projects and some history on why the fees are not covering
enough of the expenses that they are intended to cover. Stakeholder groups included the Miami
Dade Preservation League and those who are in the development community, as members of
the Chamber of Commerce.
In comparison with other municipal fee schedules, several fees had major variations (higher and
lower), whereas others were approximately the same. However, the comparison is not
straightforward. Each of those municipalities has different expenses that are intended to be
covered by the fees, plus costs vary over time and it may depend on when their fee schedules
were adopted. Most of the development review processes in other cities are subsidized by their
general fund. Prior to CMB adjusting and updating the fee schedule in 2015, departments like
Planning were being subsidized by the general fund by 72%. As such the fee structure that
existed at the time was only capturing 28% of the costs associated with Plan review. After
adoption in 2015 and implementation in May of 2016, the fee structure is designed to capture
sufficient revenue to offset expense.
Another factor is the Consumer Price Index(CPI-U), which has increased annually in all but one
of the past 10 years. A $20,000 project in 2007 would cost $23,633 today and a $100,000
project in 2007 would cost$118,165 today. CPI-U and other fee increases were not adjusted in
the City's fee schedule until 2015 when the fees were analyzed, revised and a new fee schedule
adopted.
FINANCE AND BUDGET ANALYSIS
As indicated previously, upon an extensive review of the City's projected revenues, the Administration
does have some concerns with the impact that a uniform cap on the per square foot fee for certain
Land Use Board applications will have on revenues. As such, in order to minimize the impact of
modifications to the fee structure on revenues, the Administration is recommending that the per-
square-foot fee also be applied to all types of development equally (with some exceptions), and that
the fee be reduced from the current 0.50 per-square-foot fee to 0.30 per-square-foot.
Current
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.50 per square foot- New construction only
Proposed
.30 per square foot- New construction and renovations
Difference
.20-Applies to both new construction and renovations
A comprehensive set of recommendations was introduced at first reading, and is divided into
categories based on implementation time. They can be implemented either immediately, in
approximately six to eight months, or require a longer-term process to achieve results. The following
is a summary of the recommendations:
Recommendations For Immediate Action
1. Remove subsidized commissioner sponsorship. Apply the same fee charged for
private applications to those Code change amendments that are sponsored by the City
Commissioner on behalf of a property owner or developer. The ordinance to effectuate
this change was transmitted by the Planning Board with a favorable recommendation and it
is expected to be considered by the City Commission for first reading on April 10, 2019.
2. Temporary cap on fees. Until the per-square-foot fee is lowered, as recommended,
applications in process can have the per-square-foot fees capped at $40,000. This is
being brought to City Commission for first reading on February 13, 2019. The
Commission indicated interest in exploration of a future credit for those which have
recently paid in excess of $40,000, to be deliberated at the February Finance and
Citywide Projects Committee meeting. However, Sec. 118-7 provides that "There shall
be no refund or adjustment of fees."
Recommendations for Action in Six to Eight Months
1. Apply the per-square-foot fee to all types of development applications. Currently
there are multiple exemptions from the per-square-foot fee, particularly if it is not new
construction. To lower the overall fee, it is recommended that the fee will be applicable to
all types of developments, including redevelopment, remodels, and historic preservation
projects. The only exceptions that will remain are applications for replacement railings,
balconies, awnings, and carports.
2. Reduce the per-square-foot fee. The current fee is 0.50 per square foot. It is
recommended that the fee be lowered to no less than 0.30 per square foot. By applying
the fee to more application types, it has been noted to have only a minor impact on the
overall department budget.
3. Conditional Uses / Neighborhood Impact Establishments. Conditional use
applications are charged as regular applications except for the adult congregate living
facilities which require an additional fee. However, the conditional use applications add to
the review and staff time to prepare the report. Further, for those conditional uses which
are Neighborhood Impact Establishments (NI E), additional review time for the studies
(sound studies, etc.) and progress reports need to be considered. Based on the
established fee of$150 per hour for research, the Conditional Use/ NI E fee should be in
line with the average staff review of the average report/study for a conditional use. Using
an estimate of 15 hours, and the additional board (Planning Board) that would review the
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project, an additional fee should be established at $2,500 for a conditional use with an
NI E.
4. Resubmittal Fees / Excessive Review. There are many applications which require six
or more rounds of staff review before they are ready for a board, while they are only
charged one $2,500 review fee. Currently the fee schedule has a $150 per hour fee for
reviews in excess of four hours. It is difficult to track and assess this fee due to the
number of staff in various departments who reviews the plans; therefore, it is
recommended that the Excessive Review Fee be removed from the fee schedule. In its
place, a Resubmittal Fee of$1,250 should be established to be charged after the second
review of an application. Suggested is a resubmittal fee of $1,250, which is half of the
original $2,500 new application fee.
5. Variances. Variances are mostly a result of an antiquated code, and can be addressed in
three steps.
a. For the repetitive variance requests that are consistently granted, make text amendments
to the Land Development Regulations to avoid the need for a variance. A discussion item
pertaining to this subject is pending at the Land Use and Development Committee.
b. Revise the Land Development Regulations to establish an "administrative variance". This
is structured so that certain types of variances, such as fence heights, driveway aisle
widths and relocation of signs, (or up to a certain extent/measurement) for height and
massing, could be addressed during permit review and approved by the Planning Director
with no need for a board approval. Administrative variances may also be used for
implementation of preferred design features that trigger the need for a variance due to the
site conditions. Since an administrative variance would not require a board review or staff
report, the proposed application would realize a significant savings. Such administrative
review should remain at$500.A discussion item pertaining to this subject is pending at the
Land Use and Development Committee.
c. Finally, increase the fees for the remaining variance applications to encourage Land
Development Regulation compliance. The fee of$500 is about half of what is charged in
the other municipalities that were reviewed in this process. An increase to $750 is
recommended. This will be part of the discussion at the Land Use and Development
Committee.
Recommendations for Long Term Action
1. Land Development Regulations. It is recommended that the City consider a holistic
update to address the structure and complexity of the Land Development Regulations.
According to city staff, the complexity code adds to the time it takes for an application to
be ready for Board review. Additionally, staff is limited in what can be approved
administratively, adding time and cost to applicants. Consider simplification of the
structure of the code for ease of understanding and applicability. Such modifications
would provide predictability, facilitate design, reduce review time for the staff, and number
of resubmittals. This also would reduce the external costs borne by the applicant (aside
from city fees) by reducing the time to process the application. It is also recommended
that administrative approvals be expanded to include adjustments necessary due to site
conditions or preferred design elements. A discussion item pertaining to this subject is
pending at the Finance Committee.
2. Departmental Review Fees. In addition to this review on land use board fees, it is
recommended that the consultant be tasked with reviewing fees associated with the
actual building permit (Building, Fire, Public works and Planning departments) and provide
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a recommendation as appropriate. This would provide an independent evaluation of the
fees that would serve the best interests of the City.
FISCAL IMPACT
The impact on department revenue is estimated to be between $125,000 and $200,000
annually.
UPDATE
On February 13, 2019 the City Commission approved the attached Ordinance at First Reading,
amending Appendix A to establish a cap of $40,000.00 on the per square foot fee, and
scheduled a Second Reading Public Hearing for March 13, 2019. Additionally, the City
Commission directed the Administration to come back with a comprehensive fee ordinance and
referred the following items to the Land Use and Development Committee:
1. Application of the per-square-foot fee to all types of development applications.
2. Reduction in the per-square-foot fee.
3. A fee adjustment for Conditional Use and Neighborhood Impact Establishment
applications.
4. Revisions to the resubmittal and excessive review fees.
5. The consultant for review fees shall be tasked with reviewing departmental fees (Building,
Fire, Public Works and Planning)and provide a recommendation as appropriate.
CONCLUSION
The administration recommends that the City Commission adopt the Ordinance, amending
Appendix A.
Legislative Tracking
Planning
Sponsor
Commissioner John Elizabeth Aleman
ATTACHMENTS:
Description
o Ordinance
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