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C4E-Ref- PB - Create Ch 133 Sustainability And Resiliency -Steinberg-Grieco-MIAMIBEACH City of Miomi Beoch, ,I700 Convention Cenier Drive, Miomi Beoch, Florido 33,l39, www.miomibeochfl.gov COMMISSION MEMORANDUM To: Mayor Philip Levine and Members FRoM: Jimmy L. Morales, City Manager DATE: September 2,2015 f the City CREATING CHAPTER 133 IN THE LAND DEVELOPMENT REGULATIONS OF THE CITY CODE PERTAINING TO SUSTAINABILITY AND RESILIENCY ADMI NISTRATION RECOMM EN DATION Refer the proposed Ordinance Amendment to the Planning Board for consideration and recommendation. BACKGROUND On April 15,2015, at the request of Commissioner Micky Steinberg, the City Commission referred an item to the Sustainability and Resiliency Committee, regarding the provision of renewable energy sources in new construction projects (ltem C4G). On May 6, 2015, at the request of Commissioner Micky Steinberg, the City Commission referred the item to the Land Use and Development Committee (ltem C4H). On June 24,2015, the Sustainability and Resiliency Committee discussed the item and continued it to the July 22,2015 meeting. On July 22, 2015, the Sustainability and Resiliency Committee discussed the item and recommended in favor of the item with a modification that LEED requirements apply to large scale single-family residences, as well as commercial new construction. Staff was also directed to research the average square footage of a single-family residence to determine the appropriate threshold. On June 17, 2015, the Land Use and Development Committee continued the item to the July 29, 2015 meeting. On July 29,2015, the Land Use and Development Committee recommended that the City Commission refer the attached Ordinance Amendment to the Planning Board, with a modification that the applicable square footage be reduced to 7,000 square feet. The Land Use Committee also requested that focus groups be convened for additional input, prior to the matter being considered by the Planning Board. ANALYSIS According to the U.S. Environmental Protection Agency (EPA), existing buildings are one of the biggest contributors to environmental pollution in the U.S., accounting for 40 percent of total energy use,72 percent electricity consumption, 39 percent of the carbon dioxide emissions, and 13 percent of total water consumption. The U.S. Green Building Council (USGBC) has developed Leadership in Energy and Agenda ltem C VE =Date a-d- /{-234 Commission Memorandum Refenal to Planning Board - Sustainability and Resiliency Ordinance September 2, 201 5 Page 2 ol 3 Environmental Design (LEED) green building rating system to address design and construction activities to improve energy efficiency and sustainability of residential and commercial buildings. LEED certified buildings save money and resources and have a positive impact on the health of occupants, while promoting renewable, clean energy. Required LEED Certification Staff has developed a draft ordinance, establishing regulations and procedures that will help the city become more resilient. This ordinance creates environmental standards for new development by requiring that all new construction be LEED Gold certified or better. LEED certification promotes efficient design, construction, operation, maintenance and deconstruction of buildings and site development. The green building provisions are designed to achieve the following objectives:o lncrease energy efficiency in buildings;o Encourage water and resource conservation;o Reduce waste generated by construction projects;o Reduce long{erm building operating and maintenance costs;. lmprove indoor air quality and occupant health;. Contribute to meeting the state and local commitments to reduce greenhouse gas production and emissions. There were concerns regarding the impact of this program on single-family residential properties. An analysis of the Single Family homes that have been approved by the Design Review Board or have an approved building permit over the last sixth months indicates that the average size of new homes is expected to be 6,452 square feet; the median size is 5,165 square feet; and the average size of the top 25o/o of homes is 7,186 square feet. lt is suggested that larger homes which will have the greatest environmental impact could be built to LEED standards in order to mitigate their impact. The proposed ordinance proposes that the following types of development at a minimum be certified as LEED Gold by the USGBC: 1. All new construction over 7,000 square feet; 2. Additions over 10,000 square feet; and 3. Rehabilitations of buildings larger than 10,000 square feet that exceed 50 percent of the building value. Sustainability Fee Prooram ln lieu of achieving LEED Gold certification, properties can elect to pay a sustainability fee. This fee is set as a percentage of the cost of construction. The proposed ordinance sets the percentage based on the level of LEED Gold certification, as follows: Level of LEED Certification Ach ieved Fee in Lieu of LEED Gold Certification (Percentage of Construction Cost) No Certification 5.0% LEED Certified or Equivalent 2.5o/o LEED Silver Certified or Equivalent 1.70/o LEED Gold Certified or Equivalent 0.0% 235 Commission Memorandum Referral to Planning Board - Sustainability and Resiliency Qrdinance September2,2015 Page 3 ot 3 The fees collected as part of this program will be used to establish a sustainability and resiliency fund. These funds will be used to include improvements that increase the resiliency of the City such as: 1. Environmental restoration projects, 2. Environmental remediation projects, 3. Environmental monitoring, 4. Green infrastructure, 5. Enhanced storm water quality and quantity improvements,6. Sustainabilityplanning efforts. The Sustainability and Resiliency Fund will also be used to fund new resiliency projects such as: living shorelines, water quality monitoring, soil remediation and establishing alternative forms of energy sources, such as solar. lt could also be used to supplement resiliency elements of existing capital improvement projects including incorporating bioswales and urban trees into existing street scape projects, water conservation irrigation systems, and enhanced water quality elements into future storm water and greywater projects. The proposed ordinance would require that within fifteen months of the effective date of the Ordinance a progress report be submitted to the City Commission to review the success on the regulations. Such review at minimum shall address the following: 1. Whether the sustainability requirements sufficiently respond to the climate of Miami Beach; and 2. The effectiveness of the Sustainability Fee; and3. The effectiveness of the review procedures. CONCLUSION ln accordance with the July 29, 2015 recommendation of the Land Use and Development Committee, the Administration recommends that the Mayor and the City Commission refer the attached Ordinance Amendment to the Planning Board. flt J LM/T R'|[47BAM/E SW/M KWFT T:\AGENDA\201S\SeptembeAPLANNlNc\Referral to Planning Board - Chapter 133 Sustainability MEMO.docx 236 SUSTAINABILITY AND RESILIENCY ORDINANCE NO. AN ORDINANCE OF THE MAYOR AND GITY COMMISSION OF THE C!ry OF MIAMI BEACH, FLORIDA, AMENDING THE LAND DEVELOPMENT REGULATTONS (LDR'S) OF THE CtTy GODE, By ESTABLISHTNG CHAPTER133, "SUSTAINABILITY AND RES!LlENCy," By ESTABLTSHTNG REQUIREMENTS FOR LEED GOLD CERTIFICATION, ESTABLISHING A SUSTAINABIL!ry FEE PROGRAM FOR PROJECTS THAT DO NOT ACHIEVETHE REQUIRED LEED CERTIFICATION, ESTABLISHING A SUSTAINABIL!ry AND RESILIENCY FUND FOR THE DEPOSIT OF FUNDS GENERATED THROUGH THE SUSTAINABILITY FEE PROGRAM, AND PROVIDING THE USES FOR WHICH THE REVENUE DEPOSITED IN THE SUSTAINABILITY AND RESILIENCY FUND CAN BE USED; PROVIDING FOR REVIEW, APPLICABILITY, CODIFICATION, REPEALER, SEVERABILITY AND AN EFFECTIVE DATE. WHEREAS, the City of Miami Beach has the authority to enact laws which promote the public health, safety and general welfare of its citizens; and WHEREAS, greenhouse gas emissions are a contributor to sea level rise which is a threat to public health, safety, and general welfare of the citizens of Miami Beach; and WHEREAS, it is in the best interest of the City to promote the economic and environmental health in the city, through sustainable and environmentally friendly design and construction which reduce demand for energy and greenhouse gas emissions; and WHEREAS, the Leadership in Energy & Environmental Design (LEED), is a green building certification program that recognizes best-in-class building strategies and practices; and WHEREAS, LEED certified buildings save money and resources and have a positive impact on the health of occupants, while promoting renewable, clean energy; and WHEREAS, the amendments set forth below are necessary to accomplish the above objectives. NOW THEREFORE, BE IT ORDAINED BY THE MAYOR AND GITY COMMISSTON OF THE CITY OF MIAMI BEACH, FLORIDA: SECTION 1. That Chapter l33, "Sustainability and Resiliency," is hereby established in the Land Development Regulations of the Code of the City of Miami Beach, FL as follows: Ghapter 133 - SUSTAINABILITY AND RESILIENCY ARTICLE I. - IN GENERAL Sec. {33-i - Definitions. 237 The followinq words. terms and phrases, when used in this article. shall have the meanino ascribed to them in this section. except where the context clearlv indicates a different meanino. or as may be amended from time to time. EutTdrno means anv structure havinq a roof supported by columns or walls for the shelter or enclosure of persons or property and includes the word structure and includes anv part thereof. Cify means City of Miami Beach. Consfrucfion means any proiect associated with the creation. development. or erectionof anv bullding elioible for lhe orooram. Enhanced storm water quality and quantity mprovemenfs means proiects that auqment water quality and quantity bv: reducinq polluted runoff: advancinq oroundwater recharoe. soil infiltration and erosion control: and restorinq habitat. EnvtTonmenfal monrtonnq means periodic or continuous surveillance or testino to determine the level of compliance with statutorv requirements and/or pollutant levels in various media (air. soil. water) or biota. as well as to derive knowledoe from this process. Examples of environmental monitorino include. but are not limited to: water quality samplinq and monitorinq. qroundwater testing and monitorinq. habitat monitorinq. etc. Envffonmenfal remedrafibn means clean-up of, or mitioation for, air. soil or water contamination from the Citv's solid waste manaqement system and those facilities for which the City is leqally responsible for environmental clean-up or mitioation. Envrronmenfal resforafion means the return of an ecosystem to a close approximation of its condition prior to disturbance. Escrow means an interest bearino bank account manaqed by the Citv, for the purpose of ensurinq that Sustainability Fees are satisfied by development that does not meet sustainability requirements, where the interest qenerated bv the account shall be kept by the Citv in order to offset the costs of administering said account. Green rnfrasfrucfure means both the natural environment and enoineered systems to provide clean water. conserve ecosvstem values and functions, and provide a wide arrav of benefits to people and wildlife. Green infrastructure uses veqetation. soils, and natural processes to manaoe natural resources and create healthier urban environments. Examples of qreen infrastructure practices include. but are not limited to: riqht-of-wav bioswales, qreen roofs, blue roofs, rain qardens. permeable pavements. infiltration planters. trees and tree boxes. rainwater harvestino svstems. LEED means Leadership in Eneroy and Environmental Desiqn (LEED) Green Buildino Ratinq System for Buildinq Desiqn and Construction. which is applicable to New Construction and Major Renovations. or other recoqnized oreen buildino ratino system approved bv resolution of the City Commission. LEED Scorecard means a quide to assist in determininq the total project score and achievable credits at the inception of a LEED Project. or equivalent document as part of another buildinq proqram approved bv resolution of the citv commission. 238 USGBC means the United States Green Buildino Council, or other recoqnized oreen buildinq proqram approved by resolution of the city commission. Sec. 133-2. - Purpose. The purpose of this chapter is to establish requlations and procedures that will help the city become a more sustainable and resilient communitv by encouraqinq sustainable development. This chapter shall define and establish new environmental goals and standards for a LEED certification-based oreen buildinq prosram. This will promote economic and environmental health of the city. throuoh sustainable and environmentally friendly desion and construction. This ordinance shall define and establish new environmental ooals and standards for a LEED certification-based qreen buildinq proqram throuqh efficient desion. construction, operation. maintenance and deconstruction of buildinqs and site development bv incorporatinq qreen buildinq practices and materials. The qreen building provisions are desioned to achieve the followinq objectives: 1. lncrease eneroy efficiencv in buildinqs: and 2. Encouraqe water and resource conservation: and 3. Reduce waste qenerated by construction projects: and 4. Reduce lono-term buildino operatinq and maintenance costs: and 5. lmprove indoor air quality and occupant health: and 6. Contribute to meetinq state and local commitments to reduce oreenhouse oas production and emissions. ARTIGLE II. - GREEN BUILD!NG REQUIREMENTS Sec. 133-31. - Sustainabilitv Requirements. 1. The followinq types of development, shall at a minimum be certified as Gold by the USGBC LEED standards: a. All new construction over 7.000 square feet. or b. Additions over 10.000 square feet to existinq buildinqs. or c. Rehabilitation of buildinqs larqer than 10.000 square feet. which exceeds 50 percent of the buildinq value. Sec. 133-32 - Review Procedures. 239 1. At the time of Buildino Permit application, the owner shall submit: a. Proof of reoistration with the USGBC: L A siqned and sealed affidavit from a LEED Accredited Professional. or applicable desiqnation professional. statinq that the proposed buildinq is desiqned to achieve the required certification: or ii. lf the proposed buildino is not anticipated to achieve the minimum level of certification required in section 133-31, then participation in the Sustainability Fee Prooram. pursuant to Chapter 133. Article lll. is required. b. A LEED Scorecard identifyinq anticipated credits to be achieved. c. The applicant shall post a bond or make a deposit to be held in escrow. in the amount equivalent to the fee for "No Certification" as described in section 133-52 (1). 2. Within one vear from the receipt of a Certificate of Occupancy. the owner shall submit proof of LEED certification by the Green Buildinq Certification lnstitute. a. lf the proposed buildino does not achieve the required level of LEED certification within the allotted timeframe. then the bond or funds held in escrow shall be utilized for participation in the Sustainability Fee Prooram. pursuant to Chapter 133. Article lll. b. The Planninq Director mav approve a one-time 6-month extension for qood cause upon the request of the applicant. ARTICLE III. - SUSTAINABILITY FEE PROGRAM Sec. 133-51. - Generallv. A Sustainabilitv Fee may be paid to the City in lieu of achievino the level of LEED certification required in Section 133-31 from the bond or funds in escrow that are required at the time of Buildinq Permit application. Sec. 133-52. - SustainabiliW Fee Calculation. 1. The fee is set as a percentaoe of the cost of construction as approved bv the Buildinq Official or their desiqnee. The percentaqe to be paid is based on the level of LEED certification required in Sec. 133-31. based on the followinq schedule: Level of LEED Certification Achieved Fee in Lieu of LEED Gold Certification (Percentaqe of Construction Cost) No Certification 5.Oo/o LEED Certified or Equivalent 2.5o/o LEED Silver Certified or Eouivalent 1.70/o LEED Gold Certified or Equivalent O.Oo/o 240 2. The Sustainabilitv Fee shall be evaluated and assessed (if necessary) upon the applicant's submittal of proof of LEED certification by the Green Buildinq Certification lnstitute pursuant to Section 133-32 (2). a. lf the level of LEED certification required bv Section 133-31 is achieved within the allottedtimeframe, the bond orthefunds in escrowdescribed in Section 133-32 (1) shall be returned in full to the applicant. b. lf a level of LEED certification lower than that which is required by Section 133-31 is achieved within the allotted timeframe. then only such portion of the bond or funds in escrow described in Section 133-32 (1) necessarv to satisfy the Sustainabilitv Fee for the level of certification achieved shall be forfeited to the Citv. with the remainder beinq returned to the applicant. c. lf proof of final LEED certification is not provided to the City within the allotted timeframe. then the entire bond orfunds in escrow described in Section 133-32 (1) shall be forfeited to the City. Sec. 133-54 - Deposit of funds: account. 1. The City shall establish a Sustainability and Resiliencv Fund. The revenue oenerated throuqh the Sustainabilitv Fee Proqram shall be deposited in the Sustainabilitv and Resiliency Fund. a. The Sustainabilitv and Resiliency Fund shall be established as interest-bearino accounts in a bank authorized to receive deposits of city funds. lnterest earned bv account shall be credited to that account and shall be used solely for the purposes specified for funds of such account. 2. Revenue in the Sustainabilitv and Resiliency Fund shall be utilized to provide improvements that increase the environmental sustainabilitv and resiliency of the City. Expenditures from these funds shall require citv commission approval. upon the recommendation of the Environment and Sustainability Division. 3. Such improvements that increase the resiliency of the City mav include: a. Environmental restoration proiects b. Environmental remediation proiects c. Environmental monitorino d. Green infrastructure e. Enhanced storm water quality and quantitv improvements f. Sustainabilityplanninqefforts SECTION 2. REVIEW. 241 A progress report shall be presented to the City Commission within fifteen (15) months of the effective date of this Ordinance in order to review the success of the regulations contained within. The review shall at a minimum address the following: 1. lf the sustainability requirements sufficiently respond to the climate of Miami Beach. 2. The effectiveness of the Sustainability Fee at encouraging sustainable development. 3. The effectiveness of review procedures. SEGTION 3. APPLICABILIry. This Ordinance shall not apply to developments that have an active land use board approval or that have been issued a building permit process number prior to the effective date of this Ordinance. SEGTION 4. REPEALER. All ordinances or parts of ordinances and all section and parts of sections in conflict herewith be and the same are hereby repealed. SEGTION 5. CODIFIGATION. 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 reentered to accomplish such intention; and that the word "ordinance" may be changed to "section" or other appropriate word. SECTION 6. SEVERABILIry. lf any section, subsection, clause or provision of this Ordinance is held invalid, the remainder shall not be affected by such invalidity. SEGTION 7. EFFECTIVE DATE. This Ordinance shalltake effect ten (10) days following adoption. PASSED and ADOPTED this day of ATTEST: GIry CLERK First Reading: Second Reading: 2015. MAYOR APPROVED AS TO FORM AND LANGUAGE & FOR EXECUTION First Reading: Second Reading: 2015 2015 City Attorney Date 242 Verified by: Thomas R. Mooney, AICP Planning Director Underscore denotes new language S+ril<*nreugh denotes deleted language M:\$CMB\CCUPDATES\Land Use and Development Committee\201S\July 29, 201S\Sustainabitity and Resitiency Ordinance Draft.docx 243