CITY OF NORTH LAUDERDALE Building Permit Fee Schedule Review and Evaluation

INTRODUCTION City of North Lauderdale contracts with Calvin, Giordano & Associates, Inc. (CGA) to provide professional services Provide Data, Analysis, & Recommendations for Improvements KLW Code Consultants City of North Lauderdale Staff CITY OF NORTH LAUDERDALE – BUILDING PERMIT SCHEDULE REVIEW & EVALUATION

SUMMARY AND OVERVIEW Building Permit Fees Charged to Cover the Cost of Providing Service Total Building Permit Fee Revenues Should Approximate Total Costs Over Time Costs Continue to Rise, Rates Remain the Same, Deficits Result CITY OF NORTH LAUDERDALE – BUILDING PERMIT SCHEDULE REVIEW & EVALUATION

REVIEW AND OBSERVATIONS 20 Local Municipalities were Reviewed Based on Three Criteria: Size Demographics/Activity Proximity 4 Cities were Determined to be the Best Comparables: Margate, Tamarac, Lauderhill, & Lauderdale Lakes CITY OF NORTH LAUDERDALE – BUILDING PERMIT SCHEDULE REVIEW & EVALUATION

DATA AND ANALYSIS 4 Year Period from 2009 to 2012 Total Revenues vs Total Expenses Average Annual Expense: $764,932 Average Annual Revenue: $439,824 Average Annual Deficit: $325,108 Approximately 57.5% Coverage, 42.5% Deficit or Shortfall CITY OF NORTH LAUDERDALE – BUILDING PERMIT SCHEDULE REVIEW & EVALUATION

TYPES OF PERMIT FEE SCHEDULES Menu Based System (currently used by the City of North Lauderdale) Percentage of Value System Cost per Square Foot System Cost of Service System Combination or Hybrid of the above EXISTING RECOMMENDED OTHER OPTIONS REVIEWED CITY OF NORTH LAUDERDALE – BUILDING PERMIT SCHEDULE REVIEW & EVALUATION

TYPICAL PERMIT EXAMPLE CITY OF NORTH LAUDERDALE – BUILDING PERMIT SCHEDULE REVIEW & EVALUATION

ADVANTAGES OF PROPOSED FEE SCHEDULE Balances Costs & Revenues (Cost Recovery) Percent of Value System Easier to Understand and Administer than Current Menu Based System Permit Processing is Streamlined and Expedited Dedicates Funding for: Records Retention Technology Upgrades Mechanics Liens CITY OF NORTH LAUDERDALE – BUILDING PERMIT SCHEDULE REVIEW & EVALUATION

CONCLUSIONS AND RECOMMENDATIONS Modify Current Building Permit Fee Schedule - Balance Costs & Revenues Move from Menu Based System to Percentage of Value System – 1.95% Incorporate a Gradient Plan Review Fee - $25/$50/$75 etc. Per Permit Incorporate a: Records Retention (Archive) Fee-$3.00/permit Mechanics Lien Law Fee - $5.00/permit Technology Fee - $0.026% of Value of Improvements Incorporate an Automatic Adjustment Clause – CPI Based on the South Florida Area CITY OF NORTH LAUDERDALE – BUILDING PERMIT SCHEDULE REVIEW & EVALUATION

CITY OF NORTH LAUDERDALE Building Permit Fee Schedule Review and Evaluation Questions?