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Ordinance 2019-4260 AMENDMENT TO APPENDIX A - COMPREHENSIVE FEE ADJUSTMENTS LAND DEVELOPMENT AND PERMITTING FEES ORDINANCE NO. 2019-4260 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 AMEND PLANNING REVIEW FEES ASSOCIATED WITH LAND USE BOARD APPLICATIONS, BY AMENDING THE PER-SQUARE-FOOT FEES AND APPLICABILITY THEREOF, ESTABLISHING AN ADDITIONAL FEE FOR CONDITIONAL USE PERMITS FOR NEIGHBORHOOD IMPACT ESTABLISHMENT USES, ELIMINATING THE "EXCESSIVE REVIEW FEE," AND ESTABLISHING A RESUBMITTAL FEE; 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, recently, 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 REPEALER All ordinances or parts of ordinances and all section and parts of sections in conflict herewith are hereby repealed. 1 SECTION 3.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 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 day of mgr , 2019. ATTEST: // ,,,2"/ Dan Gelber 7/?/t , A °:*5L---- Mayor Rafael E. Granado APPROVED AS TO City Clerk FORM AND LANGUAGE & R XECUTION z - 3 19 City Attorney Date First Reading: April 10, 2019 OC Second Reading: May 8, 2019 Underscore denotes new language StriIFeugh denotes deleted language (Sponsored by Commissioner John Elizabeth Aleman) T:\AGENDA\2019\04 April\Planning\Appendix A Comprehensive Fees-First Reading ORD.docx ,e ' xt\\\id si• G * ':INCORr ORATED: '1 ' <0 EXHIBIT "A" APPENDIX A—FEE SCHEDULE * * 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 a Fees for design review board or historic preservation board-For nonprofits 4/7th proposing art in public places and/or non-commercial artistic murals,graphics affirmative and images vote of the city 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. Additional fee for Application for public hearing which includes a Neighborhood 2.500.00 Impact Establishment 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 (non- administrative) 1,500.00 3 times Application for after the fact approval original fee Advertisement(Additional fees may apply based on notice requirement for LDR. 1,500.00 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- 162(a), Amendment of the Land Development Regulations,Zoning Map, Comprehensive (b) Plan, and Future Land Use Map Amendment to the permitted, conditional or prohibited uses in a zoning 2,500.00 category(per use) Amendment to the permitted, conditional or prohibited uses in the 2,500.00 comprehensive plan Amendment to the zoning map designation (per square foot of lot area) up to 0.50 5,000 sq.ft. Amendment to the zoning map designation (per square foot of lot area) 5,001 0.70 sq.ft. and greater Amendment of future land use map of the comprehensive plan (per square foot 0.50 of lot area) up to 5,000 sq.ft. Amendment of future land use map of the comprehensive plan (per square foot 0.70 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 10,000.00 amended) 118- Conditional Use Permit 193 Application for conditional use permit for an assisted living facility(per bed) 100.00 118- 253 Design Review 38 .30 Application for Design Review Board approval (per gross square foot of new Up to a construction) maximum of$40,000 118- 321 Land/Lot Split See application fees under General Fees 118- Variances 353 Per variance requested—See section 118-7 for applicable waivers 500.00 118- 562, Certificate of Appropriateness 118- 564 39.30 Up to a Application for COA(per gross square foot of new construction) maximum of$40,000 118- Historic Designation 591 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 0759.30 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 100.00 fee) 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 research) 250.00 Zoning Interpretation Letter 1,000.00 Research per hour fee (beyond four hours per submittal) 150.00 350.00 Excessive Review per hour fee (beyond four hours per submittal) Resubmittal Fee (after second submittal) 1,250.00 per submittal 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 format shall TBD be charged at city's cost from vendor M:\$CMB\CCUPDATES\Land Use and Development Committee\2019\April 3,2019\Comprehensive Fee Adjustments-APPENDIX A- April 2019 LUDC.docx Ordinances- R5 C MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: May 8, 2019 10:15 a.m. Second Reading Public Hearing SUBJECT:AMENDMENT TO APPENDIX A - COMPREHENSIVE FEE ADJUSTMENTS LAND DEVELOPMENT AND 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 AMEND PLANNING REVIEW FEES ASSOCIATED WITH LAND USE BOARD APPLICATIONS, BY AMENDING THE PER-SQUARE-FOOT FEES AND APPLICABILITY THEREOF, ESTABLISHING AN ADDITIONAL FEE FOR CONDITIONAL USE PERMITS FOR NEIGHBORHOOD IMPACT ESTABLISHMENT USES, ELIMINATING THE "EXCESSIVE REVIEW FEE," AND ESTABLISHING A RESUBMITTAL FEE; AND PROVIDING FOR REPEALER, SEVERABILITY, CODIFICATION,AND AN EFFECTIVE DATE. RECOMMENDATION The Administration recommends that the City Commission adopt the attached ordinance amending Appendix A, "Fee Schedule," for planning review fees related to land use board reviews pursuant to Chapter 118, Subpart B—Land Development Regulations. 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. On March 13th, 2019, the Commission approved the $40,000 cap on the square foot fee on second reading which is now fully implemented. On February 13, 2019, at the request of Commissioner John Elizabeth Aleman, the City Commission referred the item to the Land Use and Development Committee (item R5Q). The subject referral pertains to the following comprehensive development fee adjustments: Page 388 of 1102 1. Application of the per-square-foot fee to all types of development applications. 2. Reduction in the per-square-foot fee. 3. Afee adjustment for Conditional Use and Neighborhood Impact Establishment applications. 4. Revisions to the resubmittal and excessive review fees. 5. Increasing the variance fee. On April 3, 2019 the Land Use and Development Committee reviewed the attached modifications to Appendix A and recommended approval. BACKGROUND In 2014 a review of the city's adopted development review fee schedule was conducted to 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, following multiple presentations and favorable recommendations from, Finance and Citywide Projects 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 if 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 the review of projects seeking approval from a land use board as well as the department's review of plans submitted for permit. 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 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, Page 389 of 1102 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. Restructured/Reduced fees Current Proposed Applicable to new construction, additions and remodels with Applicable to exception to minor new improvements such as construction balconies, awnings, and Square foot fee only $ 0.50 windows $ 0.30 Per hour beyond four Resubmittal Fee (per Excessive hours (per submittal after 2nd Review Fee submittal) $ 150.00 review) $1,250.00 Variance Per Variance $ 500.00 Per Variance $ 750.00 New fees Current Proposed Conditional Use Permits (CUP) with Neighborhood CUP with NIE Impact (no fee for the Establishment review of the $ (NIE) NIE) 2,500.00 CUP with ME review $5,000.00 FISCAL IMPACT The impact is estimated to be a reduction to the general fund revenues of between $125,000 and $200,000 annually. This estimate takes into consideration the recently adopted $40,000 cap on the square foot fee and assumes the approval of the new and restructured fee schedule proposed above. However, the impact could rise to approximately$350,000 if the square foot fee is not applied to additions and remodels or other changes identified above adopted. UPDATE The subject ordinance and amendment to Appendix A was approved at first reading on April 10, 2019, with no changes. CONCLUSION The administration recommends that the City Commission adopt the attached ordinance at first reading, amending Appendix A to establish new fees. Legislative Tracking Planning Page 390 of 1102 Sponsor Commissioner John Elizabeth Aleman ATTACHMENTS: Description ❑ AppendixA ❑ Form Approved ORD Page 391 of 1102 COMPREHENSIVE FEE ADJUSTMENTS—APPENDIX A 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 a Fees for design review board or historic preservation board - For nonprofits 4/7th proposing art in public places and/or non-commercial artistic murals,graphics affirmative and images vote of the city 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. Additional fee for Application for public hearing which includes a Neighborhood 2,500.00 Impact Establishment 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 (non- 1,500.00 Page 392 of 1102 administrative) 3 times Application for after the fact approval original fee Advertisement(Additional fees may apply based on notice requirement for LDR. 1,500.00 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, Comprehensive 162(a), (b) Plan, and Future Land Use Map Amendment to the permitted, conditional or prohibited uses in a zoning category(per use) 2,500.00 Amendment to the permitted, conditional or prohibited uses in the 2,500.00 comprehensive plan Amendment to the zoning map designation (per square foot of lot area) up to 0.50 5,000 sq.ft. Amendment to the zoning map designation (per square foot of lot area) 5,001 sq.ft. and greater 0.70 Amendment of future land use map of the comprehensive plan (per square foot 0.50 of lot area) up to 5,000 sq.ft. Amendment of future land use map of the comprehensive plan (per square foot of lot area) 5,001 sq.ft. and greater 0.70 Amendment to the land development regulations(per section being amended) 10,000.00 Page 393 of 1102 Amendment to the comprehensive plan (per goal, policy, or objective being 10,000.00 amended) 118- Conditional Use Permit 193 Application for conditional use permit for an assisted living facility(per bed) 100.00 118- 253 Design Review Q—.30 Application for Design Review Board approval (per gross square foot)of new Up to a constFuetien-j- maximum of$40,000 118 Land/Lot Split 321 See application fees under General Fees 118- Variances 353 Per variance requested—See section 118-7 for applicable waivers 500.00 118- 562, Certificate of Appropriateness 118- 564 50.30 Up to a Application for COA(per gross square foot)of new construction) maximum of$40,000 118- Historic Designation Page 394 of 1102 591 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. 2,500.00 838.30 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 research) 250.00 Zoning Interpretation Letter 1,000.00 Research per hour fee (beyond four hours per submittal) 150.00 150,00 - _. -- _ . _. __ _ _ -• - Resubmittal 1,250.00 per Fee (after second submittal). submittal Review of Covenants or Easement 5,000.00 Modification or release of Covenants or Easement 2,500.00 Courier(per package) 10.00 Page 395 of 1102 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 format shall TBD be charged at city's cost from vendor T:\AGENDA\2019\04 April\Planning\Appendix A Comprehensive Fees-First Reading APPENDIX A.docx Page 396 of 1102