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P.H. 2020-53: (PUBLIC HEARING 2ND READING)
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF POMPANO BEACH, FLORIDA, AMENDING CHAPTER 152, “BUILDINGS,” BY AMENDING SECTION 152.10, “DOUBLE FEES; REINSPECTION FEES; CERTIFICATE OF OCCUPANCY,” TO MODIFY REINSPECTION FEES; BY AMENDING SECTION 152.12, “BUILDING PERMIT FEES,” TO MODIFY THE FEE STRUCTURE FOR BUILDING PERMITS AND TO PROVIDE FOR A TECHNOLOGY FEE; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE.
(Fiscal Impact: N/A)
FIRST READING: MARCH 10, 2020
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(Staff Contact: Jennifer Gomez/David Recor)
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Summary Explanation/Background:
The Development Services Department contracted PMG Associates, Inc. to evaluate the City’s permit fees. The enclosed study entitled “Analysis of Building Permit Fee Schedule,” was finalized in February 2020. The resulting text amendments amend the building permit fees found in Chapter 152 in order to be consistent with the study.
The text amendments are designed to simplify the permit fee schedule, insure that the fees are based on sound research and industry standards, provide resources to meet the operational demands of the Pompano Beach community and meet the operational expenditure needs of the Building Inspection Division. The recommended fees were determined through examination of the effort required by the Division.
The text amendments reduce the base permit fee from 2.6% of project value to 2.5% of project value. Consistent with the recommendations of the study, the percentage rate is further reduced for larger projects based on a scale. This change was recommended since the additional effort is not directly proportionate to the value of the project. In addition, the study recommends minor and/or new fees for the following: Minimum Fee, Re-Inspection Fee, A/C Change outs, Expedited Fees, Minimum Plan Review Fee, and an Education/ Technology Fee. Finally, the text amendments create a reduced submittal fee of 25% of the estimated Permit Fee for those applicants that are seeking a one-time “Dry Run” review.
The recommended percentage rate would reduce revenue by approximately $892,000 based on the most recent year’s activity. There is an increase in revenue of $402,500, due to the new Minimum Rate and other adjustments. The two adjustments realize a reduction of $489,500 annually, which would reduce the surplus to approximately $4.4 million in four years. The maintenance of a surplus is appropriate to cover years where there is a slowdown in the economy and permit fees do not match the planned expenditures.
Note: Since first reading, some very minor edits were made. A description of these changes are included in the attached Memo #20-289 and the revised ordinance is attached.
Origin of request for this action: City Manager’s Office
Fiscal impact and source of funding: N/A
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