AGENDA ITEM REPORT
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*LAND DEVELOPMENT CODE AMENDMENT: 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. (PUBLIC HEARING)
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BACKGROUND:
Section 553.791, Florida Statutes, authorizes property owners or contractors to retain licensed private providers (building code administrators, engineers, or architects) 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. The statute allows flexibility in calculating the reduction, including use of a flat fee, percentage basis, or other reasonable methodology reflecting avoided costs. This proposed ordinance formally codifies the City’s building permit fee reductions when private providers are utilized and ensures consistency with state law requirements.
DISCUSSION:
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.
The proposed fee structure provides:
|
Scenario |
Fee Adjustment |
|
Private provider performs both plans review and inspections |
15% reduction of building permit fee |
|
City performs plans review; private provider performs inspections |
5% reduction of building permit fee |
|
Private provider retained after permit issuance (no City inspections performed) |
5% refund of building permit fee |
This structure reflects the estimated reduction in staff time associated with plans review and inspection services while preserving funding for administrative oversight, auditing, permit processing, 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 credentials
• Oversight and audit of inspection reports
• Issuance of Certificates of Occupancy/Completion
• Enforcement authority under the Florida Building Code
Staff reviewed fee structures in multiple Broward County municipalities and found that jurisdictions implementing percentage-based reductions to the building permit fee provide an average reduction of 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%) tiered reductions are, therefore, conservative in comparison to the countywide average and reflect a balanced approach that complies with statutory requirements while maintaining Building Division operational stability.
Finally, the Private Provider Statute applies exclusively to building code plans review and inspection services performed under the authority of the Building Division pursuant to Section 553.791, Florida Statutes. The fee reductions established by this amendment do not apply to plans review and inspections pertaining to planning and zoning, landscape, utilities and engineering, and fire. All applicable fees associated with those disciplines remain unchanged, as the City continues to perform those services regardless of whether a private provider is retained for building code review or inspections.
RECOMMENDATION:
Staff recommends approval of the proposed ordinance.
FISCAL IMPACT: The amendment may result in primary building permit and/or inspection fee reductions to permit revenue in cases where private providers are utilized.