AGENDA ITEM REPORT
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AN ORDINANCE AMENDING THE CITY’S CODE OF ORDINANCES, BY AMENDING CHAPTER 13, “LAND DEVELOPMENT CODE,” ARTICLE I, “ADMINISTRATION, REGULATIONS AND PROCEDURES,” DIVISION 4, “FEE SCHEDULES,” SECTION 13-83, “APPLICATION FEES, MISCELLANEOUS SERVICE CHARGES,” TO IMPLEMENT MANDATORY FEE REDUCTIONS FOR PRIVATE PROVIDERS PERFORMING PLANS REVIEW AND INSPECTION SERVICES PURSUANT TO SECTION 553.791, FLORIDA STATUTES, AND TO UPDATE BUILDING SAFETY INSPECTION REPORT REQUIREMENTS CONSISTENT WITH STATE LAW. (FIRST READING)
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BACKGROUND:
Section 553.791, Florida Statutes, authorizes property owners or contractors (with property owner approval) to retain licensed private providers to perform building code plans review and/or inspection services. The statute permits local governments to require a property owner who elects to use a private provider for plans review to also use a private provider for inspections. The statute requires local governments to reduce permit fees by the amount of cost savings realized when such services are not performed by the jurisdiction.
Recent amendments adopted by the Florida Legislature through House Bill (HB) 803 revised and expanded the statutory requirements applicable to local governments, utilizing the private provider process. The amended statute continues to authorize local governments to require a fee to the owner who elects to use a private provider for plans review to also use a private provider for required inspections. The statute further requires local governments to reduce permit fees to reflect the cost savings realized when plans review and/or inspection services are performed by a private provider rather than the local building department.
DISCUSSION:
The proposed ordinance updates the City’s Land Development Code to align with the current requirements of Section 553.791, Florida Statutes, while formally codifying the City’s methodology for calculating permit fee reductions associated with the use of private providers.
Following review of Section 553.791, Florida Statutes, and a survey of Broward County municipalities, staff determined that a percentage-based reduction is the most administratively efficient and equitable approach for implementation.
The proposed ordinance establishes two (2) separate fee reduction methods: one applicable to commercial construction projects as required by the amended statute, and a second applicable to all other permit types and private provider situations where the statute continues to allow local governments flexibility in calculating fee reductions based on actual avoided costs.
The proposed ordinance therefore distinguishes between commercial and noncommercial projects to ensure statutory compliance while preserving flexibility for the City to recover actual retained administrative and oversight costs associated with noncommercial permits.
Proposed fee reductions for commercial and noncommercial construction projects are as follows:
Commercial Project Scenario Fee Reduction
|
Private provider performs both plans review and inspections |
50% reduction of building permit fee |
|
City performs plan review; private provider performs inspection only |
25% reduction of building permit fee |
|
Private provider retained after permit issuance and no City inspections have been performed |
25% refund of building permit fee |
Noncommercial Project Scenario Fee Reduction
|
Private provider performs both plans review and inspections |
15% reduction of building permit fee |
|
City performs plan review; private provider performs inspection only |
5% reduction of building permit fee |
|
Private provider retained after permit issuance and no City inspections have been performed |
5% refund of building permit fee |
This structure reflects the estimated reduction in City staff time associated with plans review and inspection services performed by a private provider while preserving funding for administration, auditing, permitting, and enforcement responsibilities that remain with the City.
Although private providers may perform technical services, the City remains responsible for:
• Registration and verification of private provider and private provider firm information; administrative review and statutory audit functions;
• Review for completeness of required forms and documents;
• Review for compliance with local zoning, utilities and engineering, floodplain management, landscaping, and life-safety requirements unrelated to building code compliance;
• Issuance of Certificates of Occupancy and Certificates of Completion; and
• Enforcement authority under the Florida Building Code and applicable local regulations.
Staff reviewed fee structures in multiple Broward County municipalities and found that jurisdictions implementing percentage-based reductions for noncommercial private provider permits generally provide reductions averaging approximately twenty-four percent (24%) when a private provider performs both plans review and inspection services, and approximately thirteen percent (13%) when a private provider performs inspection services only. The City’s proposed fifteen percent (15%) and five percent (5%) reductions for noncommercial permits are, therefore, conservative in comparison to the countywide average and are intended to reflect the City’s retained administrative, auditing, permitting, and enforcement responsibilities.
**The municipal fee survey referenced above predates the adoption of HB 803 and is intended to provide context for the City’s proposed noncommercial private provider fee reductions.
This ordinance also proposes to update the building safety inspection report from forty (40) years to twenty-five (25) years consistent with recent changes to state law.
RECOMMENDATION:
At the March 11, 2026 Planning and Zoning Board Meeting, the Board unanimously voted to forward a recommendation of approval to the City Commission with the direction to staff to revise the ordinance as necessary to incorporate HB 803 private provider fee reduction requirements. Staff recommends approval of this ordinance.
FISCAL IMPACT:
The amended ordinance will reduce permit revenue for projects utilizing private providers. However, the proposed fee reductions are intended to reflect avoided costs associated with plans review and inspection services performed by private providers while preserving revenue associated with services retained by the City.