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R7G-Develop New Program For Expedited Lien SearchesCOMMISSION 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. Item Summary/Recommendation : The Administration recommends that the 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 al$227,500 ln 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{ime 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 exoedited certified condominium search. would an additional$75.000. The Finance and Citywide Projects Committee, at their September 24,2014 meeting, be aooroved bv the Commission. Financial lnformation : Source of I IFunds: f- I T t---- , II ll al oBPl I rotal I Financial lmpact Summary: Patricia D. Walker, ext.6461 Department Director f$n$rf lnancial Officer City Manaler GPE IVV- PDW JLM ,\ ,\2014\September 30\ Expedited Lien Fee Summ.doc AGENDA I \R7G oArE ?-30-lv* MIAMIBEACH 273 g MIAMIBEACH City of Miqmi Beqch, I200 Convention Center Drive, Miomi Beoch, Florido 33.l39. www.miomibeochfl.gov COMMISSION MEMORANDUM To: Mayor Philip Levine and Members FRoM: Jimmy L Morales, City Manager DATE: September30,2014 the City MIAM! 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 $25O.OO FOR AN EXPEDITED CERTIFIED LIEN SEARCH AND $3OO.OO FOR AN EXPEDITED CERTIFIED LIEN SEARCH INCLUDING THE COMMON AREA. ADMINISTRATION RECOMMEN DATION Adopt the Resolution. KEY INTENDED OUTGOME 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 2014115 Lien Revenues Gity of Miami Beach FY 2(,14t15 Gertified Lien Search Revenues (Approximate) ln 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). 274 September 30, 2014 City Commission Memo Ceftified 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 forthese lien searches is approximatelyfive business days. The industU, 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{ime 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 2014115 Proposed Lien Revenues City of Miami Beach FY 2014t15 Analysis of Proposed Certified Lien Search Revenues The Finance and Citywide Projects Committee, at their September 24, 2014 meeting, approved the proposed program. Lien Searches - Condos $142,500.00 275 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/PDWGE/MM 4 T:\AGENDAUOI4\Ssptember 30, ZOtlt€xpediteO Lien Fee Memo Soptember 10, 2014 276 RESOLUTION TO BE SUBMITTED 277 THIS PAGE INTENTIONALLY LEFT BLANK 278