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R5K-Amend Chapter 54 Floodplain Management -Malakoff-COMMISSION ITEM SUMMARY Condensed Title: Ordinance Amendment modifying the City's Flood Plain Management Ordinance to change the definition of Substantial Improvement to include improvements over a one year period as opposed to a five year period. Key Intended Outcome Supported: Maintain strong growth management policies. Supporting Data (Surveys, Environmental Scan, etc 48% of residential respondents and 55% of businesses rate the effort put forth by the City to regulate development is "about the right amount." Item Summa /Recommendation: FIRST READING The proposed Amendment to Chapter 54 represents only one change to the Flood Plain Management Ordinance, Chapter 54, to change the definition of "substantial improvement to refer to those improvements that took place during a one year period, as opposed to the current ordinance's requirement of a five year period. Advisory Board Recommendation: I None. Financial Information: Source of Amount Account Funds: 1 D 2 3 OBPI Total Financial Impact Summary: In accordance with Charter Section 5.02, which requires that the "City of Miami Beach shall consider the long term economic impact (at least 5 years) of proposed legislative actions," this shall confirm that the City Administration evaluated the long term economic impact (at least 5 years) of this proposed legislative action. The Amendment to the Ordinance will have no impact on the City's finances .. islative Trackin artment Director MIAMI BEACH 529 AGENDA neM Rs K DATE 1-lS"-lY MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Philip Levine and Members FROM: Jimmy L. Morales, City Manager DATE: January 15, 2014 SUBJECT: AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLO IDA, AMENDING THE CODE OF THE CITY OF MIAMI BEACH, BY AMENDING CHAPTER 54, ENTITLED "FLOODS," BY AMENDING ARTICLE II, ENTITLED "FLOODPLAIN MANAGEMENT," BY AMENDING DIVISION 1, ENTITLED "GENERALLY," BY AMENDING SECTION 54-35, ENTITLED "DEFINITIONS'' BY AMENDING THE DEFINITION OF "SUBSTANTIAL IMPROVEMENT" TO APPLY TO IMPROVEMENTS TAKING PLACE DURING A ONE YEAR PERIOD INSTEAD OF DURING A FIVE YEAR PERIOD; AND PROVIDING FOR REPEALER, SEVERABILITY, CODIFICATION, AND AN EFFECTIVE DATE. ADMINISTRATION RECOMMENDATION Approve the Ordinance. BACKGROUND The City Administration has reviewed its Flood Plain Ordinance for potential improvements to assist both homeowners and businesses that need to make substantial improvements to their structures. Chapter 54 currently requires that the value of all improvements to a structure over the previous five years be aggregated, and, if those improvements exceed 50% of the value of the building only (land value is excluded), that building must meet all current Flood Ordinance Requirements, including current elevation requirements. The requirements are covered by Chapter 54's definition of "Substantial Improvement" by requiring a property be brought up to current legal standards any time it is substantially approved. Over the years, many property owners have complained that they feel severely constrained by this calculation method. They say that the costs associated with bringing buildings up to current flood standards is prohibitive, and acts as a deterrent to the renovation and improvement to structures throughout the City. It is important to note that the requirement to go back five years for the purpose 530 City Commission Memorandum -Flood Plain Ordinance Amendment Page 2of2 of calculating the applicability of the "50% rule" is purely a function of Chapter 54 in the City Code, and not a requirement of the Federal Emergency Management Association (FEMA) or any other federal agency. In fact, the five year standard was only implemented by the City in 2009 (previously it had been 10 years). Property owners go to great lengths to ensure that the 50% rule does not apply to them, and many simply forego making necessary improvements that would increase property values for our residents, make properties safer, and improve neighborhood aesthetics. CONCLUSION For these reasons the City Administration recommends that the Mayor and Commission adopt the Ordinance by amending the definition of substantial improvement to include improvements that have taken place during the previous one year period as opposed to a five year period. ATTACHMENTS Attachment A: Proposed Ordinance JLM/JJ/MVF/SS T:\AGENDA\2014\January 15\floodamendmentsubstimpmemo.doc 531 ORDINANCE NO. -------- AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING THE CODE OF THE CITY OF MIAMI BEACH, BY AMENDING CHAPTER 54, ENTITLED "FLOODS," BY AMENDING ARTICLE II, ENTITLED "FLOODPLAIN MANAGEMENT," BY AMENDING DIVISION 1, ENTITLED "GENERALLY," BY AMENDING SECTION 54-35, ENTITLED "DEFINITIONS" BY AMENDING THE DEFINITION OF "SUBSTANTIAL IMPROVEMENT" TO APPLY TO IMPROVEMENTS TAKING PLACE DURING A ONE YEAR PERIOD INSTEAD OF DURING A FIVE YEAR PERIOD; AND PROVIDING FOR REPEALER, SEVERABILITY, CODIFICATION, AND AN EFFECTIVE DATE. WHEREAS, the City Administration has reviewed its Flood Plain Ordinance for potential improvements to assist both homeowners and businesses that need to make substantial improvements to their structures; and WHEREAS, many property owners are severely constrained by the fact that the City currently considers the last five years worth of improvements when determining whether those improvements constitute substantial improvement; and WHEREAS, the Federal Emergency Management Administration (FEMA) does not require a certain time frame for a determination regarding when substantial improvement to a structure occurs and other local governments define such period as within one year; and WHEREAS, by reducing the time frame for consideration in the definition of "substantial improvement" the City will be encouraging property owners to renovate historic and other types of properties without fear of financially devastating consequences. NOW, THEREFORE, BE IT DULY ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AS FOLLOWS: SECTION 1. That the definition of "substantial improvement" in Section 54-35 of Division 1 of Article II of Chapter 54 of the Code of the City of Miami Beach, Florida is hereby amended as follows. Other existing definitions in Section 54-35 are provided for reference purposes. CHAPTER 54 FLOODS * * 532 ARTICLE II. Floodplain Management DIVISION 1. Generally * * * Sec. 54-35. Definitions. Unless specifically defined below, words or phrases used in this article shall be interpreted so as to give them the meaning they have in common usage and to give this article its most reasonable application. * * * Addition (to an existing building) means any walled and roofed expansion to the perimeter or height of a building. * * * Existing construction means, for the purposes of floodplain management, structures for which "the start of construction" commenced before September 29, 1972. For the purposes of determining rates, existing construction shall mean structures for which the "start of construction" commenced before September 29, 1972. This term may also be referred to as "existing structures". Existing manufactured home park or subdivision means a manufactured home park or subdivision for which the construction of facilities for servicing the lots on which the manufactured homes are to be affixed (including at a minimum the installation of utilities, the construction of streets, and either final site grading or the pouring of concrete pads) is completed before September 29, 1972. * * * Floodplain management regulations means this article and other zoning ordinances, subdivision regulations, building codes, health regulations, special purpose ordinances (such as floodplain ordinance, grading ordinance, and erosion control ordinance), and other applications of police power which control development in floodprone areas. This term describes federal, State of Florida, South Florida Water Management District (SFWMD), or local regulations in any combination thereof, which provide standards for preventing and reducing flood loss and damage. * * * Historic structure means any structure that is: (a) Listed individually in the National Register of Historic Places (a listing maintained by the Department of Interior) or preliminarily determined by the Secretary of the Interior as meeting the requirements for individual listing on the National Register; or 2 533 (b) Certified or preliminarily determined by the Secretary of the Interior as contributing to the historical significance of a registered historic or a district preliminarily determined by the Secretary to qualify as a registered historic district; or (c) Individually listed on the Florida Inventory of Historic Places, which has been approved by the Secretary of the Interior; or (d) Individually listed on a local inventory of historic places in communities with historic preservation programs that have been certified either: 1. By the approved Florida program as determined by the Secretary of the Interior, or 2. Directly by the Secretary of the Interior; or (e) Designated as an historic building, historic structure, or a contributing structure located within a local historic district, by the City of Miami Beach. * * * New construction means, for floodplain management purposes, any structure for which the "start of construction" commenced on or after September 29, 1972. The term also includes any subsequent improvements to such structures. For flood insurance rates, structures for which the start of construction commenced on or after September 29, 1972, and includes any subsequent improvements to such structures. * * * Repetitive Joss structure means a building that has incurred flood-related damages on two occasions during a 1 0-year period ending on the date of the event for which claim is made, on the average, equaled or exceeded 25 percent of the market value of the building the time of each such flood event. * * * Structure means, for floodplain management purposes, a walled and roofed building, including a gas or liquid storage tank that is principally above ground, as well as a manufactured home. Substantial damage means damage of any origin sustained by a structure whereby the cost of restoring the structure to its before-damaged condition would equal or exceed 50 percent of the market value of the structure before the damage occurred. This term also includes "repetitive loss" structures as defined herein. Substantial improvement means any reconstruction, rehabilitation, addition, or other improvement of a structure, taking place during a fWe one-year period, in which the cumulative cost of which equals or exceeds 50 percent of the market value of the structure before the "start 3 534 of construction" of the improvement. This term includes structures that have incurred "substantial damage" regardless of the actual repair work performed. This term does not, however, include any repair or improvement of a structure to correct existing violations of State of Florida or local health, sanitary, or safety code specifications, which have been identified by the local code enforcement official prior to the application for permit for improvement, and which are the minimum necessary to assure safe living conditions. This term does not include any alteration of an existing historic structure, provided that the alteration will not preclude the structure's continued designation as a historic structure. SECTION 2. REPEALER. All ordinances or parts of ordinances in conflict herewith be and the same are hereby repealed. SECTION 3. SEVERABILITY. If any section, sentence, clause or phrase 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 4. 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 re-lettered to accomplish such intention, and the word "ordinance" may be changed to "section," "article," or other appropriate word. SECTION 5. EFFECTIVE DATE. This Ordinance shall take effect the ___ day of _________ , 2014. PASSED and ADOPTED this ___ day of , 2014. ATTEST: PHILIP LEVINE, MAYOR RAFAEL E. GRANADO, CITY CLERK Underline denotes additions and strike through denotes deletions (Sponsored by Commissioner Joy Malakoff) T:\AGENDA\2014\JANUARY\FLOODORDINANCEAMENDMENTSUBSTANTIALIMP 4 535 APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION THIS PAGE INTENTIONALLY LEFT BLANK 536