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HomeMy Public PortalAboutLTC 008-2014haw SAL OUR F LORI DA'S PARADISE OFFICE OF THE VILLAGE MANAGER NO. 008-2014 LETTER TO COUNCIL TO: Mayor Jean Rosenfield and Members of the Village Council FROM: Jorge M. Gonzalez, Village Manager DATE: July 10, 2014 SUBJECT: Bal Harbour Village Building Department — Shops Permitting Response The purpose of the this Letter to Council (LTC) is to provide a report on the results of my review of the matters raised at the June 17, 2014 Council Meeting regarding the construction at the Bal Harbour Shops and allegations of work being done without a permit. As you may recall, much of the concern centered on the ongoing construction of a new restaurant space on the second floor (The Grille at Bal Harbour). Several allegations were raised involving this space, and more generally, how permitting for construction was being handled by the Village, as well as specific anecdotal experiences with the Building Department by various residents. At the Council Meeting, I suggested that rather than engaging in a debate on the floor, without the benefit of all of the relevant facts, we should research the matter and prepare a full response in writing. Background At the February 19, 2013 Council Meeting, an item was approved authorizing the execution of an agreement with CAP Government (CAP) to provide Building Official services. This selection and subsequent engagement was handled in an expedited manner, with no documented competitive process. CAP has been providing building department services to the Village for approximately fifteen (15) months. CAP provides similar services to other municipalities in Miami -Dade and Broward counties, including Aventura, Weston, Cutler Bay and North Bay Village. The agreement essentially provides a provision for fee for services at a rate of 70% of gross building permit fees collected per month, or 65% if gross building permit fees exceed $50,000 in any given month. The Scope of Services including plans review of building, structural, electrical, mechanical and plumbing and inspections of building, accessibility, roofing, electrical, mechanical, gas and plumbing requirements as contained in the Florida Building Code, including any Miami -Dade County High -Velocity Zone and Village amendments thereto. Enforcement of Code Requirements The Village Code and the Florida Building Code establish specific requirements governing construction, the permitting and inspection of construction and the specific requirements of construction. The Village, specifically through the Code Compliance Division of the Police Department and the Building Department, is tasked with ensuring that construction anywhere in the Village is properly permitted and operating within the parameters provided by the Code. Given the nature of our community often times construction activity is not readily visible or apparent, such as in the cases of construction activity within high-rise and/or multi -family buildings and in a large shopping mall with various stand-alone stores in our business district. LTC No. 008-2014 Bal Harbour Village Building Department - Shops Permitting Response Page 2 of 6 Many times we rely on residents, condominium managers and other interested members of our community to alert Code Compliance, the Building Department or other Village staff, when work without or exceeding a permit is witnessed. This allows for a combination of proactive and complaint driven efforts to ensure compliance with our codes. Although assertions have been made publicly that the Village does not proactively enforce code provisions related to work without a permit or exceeding the permit, a review of citations issued over the last ten (10) months shows otherwise. In fact, the Police Department has confirmed that fifteen (15) violations for working without a permit have been issued between September 2013 and June 2014. Issues Surrounding Construction of Restaurant at the Bal Harbour Shops Several questions and statements were made at the June Council Meeting regarding the construction underway at the Bal Harbour Shops, specifically regarding the porte cohere, and restaurant construction on the second floor both on the East side of the property. For ease of review, I am addressing the issues raised at the Council Meeting in a Question and Answer format. Question: Why was construction allowed to create a restaurant on the second floor of the Bal Harbour Shops, when only a porte-cochere was permitted? As mentioned, the Building Department responds when complaints are received either from inspectors who observe violations during the course of inspections, Code Enforcement officers who patrol the Village, or members of the public. On May 21, 2014, Ms. Kelly visited the Building Department, where she requested inspection of the plans submitted for the construction project. She was advised that it could take a few days to produce the plans because they were in storage. This was followed by an email the very next day from Ms. Kelly making a formal public records request of the plans. On May 28, 2014, Ms. Kelly and Mr. Paul visited the Building Department to view the plans she had requested. They were advised that certain sheets within the plans were exempt from public records law pursuant to FSS 119.071 (3) SECURITY, which specifically exempts building plans for, "Retail and service development" facilities encompassing more than 400,000 square feet of gross floor area; or provides parking spaces for more than 2,500 motor vehicles, from review. They were, however, allowed to view sheets from the plans which were not exempted by Florida Statute. Later that day, Ms. Kelly returned to the Building Department with Mr. Tate demanding access to the entire set of plans. They again were informed that they could only review certain sheets within the set, and were afforded that opportunity. Mr. Tate claimed special security clearance and continued to demand access to the full set. At this time, the Building Department staff asked me to intervene. I immediately met with both Ms. Kelly and Mr. Tate, and informed them of the laws governing this issue. I also reminded them that if they felt work was being done without a permit, they should file a formal complaint with the Building Official, and that it was the Building Official's responsibility to investigate any complaint. Mr. Tate filed a verbal complaint. I directed the Building Department to immediately investigate the information provided in his complaint. LTC No.008-2014 Bal Harbour Village Building Department - Shops Permitting Response Page 3 of 6 On May 29, 2014, the Building Department conducted an inspection of the work site, and found that the project had done work in excess of the scope of the active permit for the porte cochere. Subsequently, they were instructed by the Building Department to stop performing any work in excess of the scope of the active permit. On June 6, 2014, 1 and a Building Department official met with representatives of the Bal Harbour Shops and advised them of their violation. They were also informed of the remedies available to them pursuant to the Florida Building Code. They were also informed of the penalties associated with their violation. On June 7, 2014, representatives from the Bal Harbour Shops requested and were granted an "Early Start;" pursuant to Florida Building Code Section 105.12 (Work Starting Before Permit Issuance). This section allows; "upon approval of the building official, the scope of work delineated in the building permit application and plan may be started prior to the final approval and issuance of the permit, provided any work completed is entirely at risk of the permit applicant and the work does not proceed past the first required inspection" The work on the second floor, which was performed without a permit, involved the installation of conduit, which if properly permitted, would not have involved an inspection until after the work was completed pursuant to Florida Building Code Section 110.3 (Mechanical). It should be noted that the permit for the tenant build out portion of the project has not yet been approved by the Building Department pending verification of minor zoning calculations. The Building Department anticipates that this will be resolved shortly, and a permit will then be issued. In the meantime, they are still operating under the "Early Start" approval. However, plans for the restaurant build -out were submitted for review in February 2014, with the following results: • Miami -Dade Water and Sewer approved the plans on February 24, 2014; • Miami -Dade Fire Department approved the plans on March 21, 2014; • Miami -Dade DERM approved the plans on March 24, 2014; and • Bal Harbour Shops/Gulfstream Architects and Engineers are still responding to the comments from the Village's Building Department regarding certain zoning calculations. Question: What is the penalty for working without a permit? Where is that identified? What is the dollar amount of penalty in this instance? Bal Harbour Village Code Section 6-27 and Section 109.4 of the Florida Building Code stipulate that work without a permit on a business property carry a fine of $200.00 or double permit fee, whichever is greater. The permit fee is estimated to be $40,000. As these codes call for a "Double Permit Fee" when work begins without permitting, thus the fee will be approximately $80,000 ($40,000 permit fee + $40,000 penalty). Question: Why was the Permit for the project not posted on the site for inspection by the public? Under the Florida Building Code Section 105.7 (Placement of Permit) the building permit or copy shall be kept on the site of the work until the completion of the project. It does not specifically require that it be posted for public viewing. In fact, as a general rule, the public is discouraged LTC No. 008-2014 Bal Harbour Village Building Department — Shops Permitting Response Page 4 of 6 from accessing active construction sites, especially without proper safety equipment, such as, hard hats, steel toed shoes, etc. as they can present unsafe conditions. Notwithstanding, the Bal Harbour Shops have been instructed to keep permits on site. We have also instructed them to maintain a copy of all active permits for their property in their Executive Offices. Question: How was it that the permit remained active since issuance in 2011 ? Under the Florida Building Code Section 105.4.1.3, a building permit remains active as long as an approved inspection is performed at least every 180 days. Additionally, permits may receive an extension (Florida Building Code 105.4.1.4), or be renewed (Florida Building Code Section 105.4.1.1). In this specific instance, the foundation permit for the porte cochere is dated August 2011. Subsequently above ground work was permitted in December 2011 - That permit ultimately expired. A new permit (Renewal) for the above ground work (same plan set) was issued in May 2012, which was also allowed to expire. Later, in May 2013, a new permit (Renewal) for the above ground work (same plan set) was issued, which is currently active. Permitted work currently being performed is being done under permit number BL-5-13-6568. Question: Is the work being done creating an unsafe condition? To date, more than 39 inspections have been conducted by the Building Department on this project since the initial foundation permit was issued in August 2011. Specifically under the current active permit, four (4) Building (structural and architectural) inspections have been conducted. In addition, a Special Inspector was required by the Building Department under the current permit. This Special Inspector has been performing inspections on this project since February 2014. As of this writing, there are no outstanding failed inspections. Question: Are there retail stores located on the third floor where previously only storage space was allowed? Was this work permitted? The Bal Harbour Shops have submitted plans for renovation of a retail/office space which was previously utilized by the Warren Henry Sales Center located on their third floor. This retail space is designated for Books and Books and Red Market retail stores. These plans are currently under review; however the Bal Harbour Shops has also requested an "early start" for this project, which has been granted. Additional review is being conducted related to the pending plans and zoning applications. Part of this review includes an analysis of required and provided parking at the Bal Harbour Shops. Question: What are the circumstances surrounding the issuance of the "tub permit' at 10155 Collins Avenue? There was an issue raised regarding the timeliness of a permit for installation of a disabled accessible bathtub at 10155 Collins Avenue. This issue was examined at the time the permit was issued, and it was found that the application was submitted to the building department on May 27, 2014, and the permit issued eight (8) days later. The agreement with CAP Government allows ten (10) days for plan review, so this was within their contractual response time. LTC No. 008-2014 Bel Harbour Village Building Department — Shops Permitting Response Page 5 of 6 Question: Was the Bal Harbour Yacht Club Dockmaster's Office constructed without permits? An allegation was made that the Dockmaster's Office was constructed without permits. Permits were issued and inspections were conducted on this office. Unfortunately, this occurred in spite of earlier Council action, which placed a pre -condition on the issuance of permits, that closing on the land exchange agreement between the Village and the Bal Harbour Yacht Club take place prior to the issuance of any building permits. More details on this matter are the subject of an Executive Session held earlier this year. Question: Why did Mrs. Mullen's permit take six (6) weeks to process? Why did Mrs. Mullen have to relocate during renovation of her unit? Mrs. Mullen's plan review took two and a half (2 1/2) weeks. I met with Mrs. Mullen in person at which time she acknowledge that the contractor performing her flooring work advised her that it would be easier to do the work if the unit was vacant, and she opted to relocate during the renovation. Ms. Cabrera also followed up with the permit expediter (Dale) who according to Mrs. Mullen, stated to her that the permit took six (6) weeks to obtain. At the meeting with Ms. Cabrera, Dale acknowledged that the permit took 2 1/2 weeks to obtain. Based on my research and conversations with CAP Village representative, no one from the Building Department instructed Dale or Mrs. Mullen that the unit should be vacated during the renovation. Question: What was CAP Government's involvement in the Shucker's dock collapse? Since this is a matter outside of our municipal jurisdiction, I have asked CAP Government to address this matter directly. A separate memo from CAP will be forthcoming. Summary of Recent Actions As you know, since my appointment as Village Manager, I have undertaken an initial review of Village processes and procedures, as well as organizational structure, to determine areas where potential efficiencies and process improvements can be implemented. This review is focused on ensuring operational efficiency and good government practices. While there are a number of areas that present opportunities for improvement, prioritizing when and how each is addressed is driven by levels of urgency. Although I agree that improvements can be made to the way building services are delivered to the stakeholders of Bal Harbour Village, there are other areas in Village government, which at this time have required more immediate action. That being said, I have taken several actions over the last several months in an effort to evaluate the performance of the Building Department, and to address issues brought up either through my interaction with members of the community or through personal observation. LTC No. 008-2014 Bal Harbour Village Building Department — Shops Permitting Response Page 6 of 6 1 requested that the Quality Assurance Coordinator assigned to the Police Department perform an evaluation of Building Department operations, including: • Interview of personnel — both full-time Village employees and contract employees; • Determine if assets and resources are being effectively utilized, accounted for and are adequate to accomplish the mission of the department; • Identify deficiencies in training, supervision, policies and procedures; and, • Determine if the contractor is adhering to the terms of their agreement with the Village. As a result, I have become increasingly involved in the day-to-day operations of the Building Department, while also enlisting the Chief of Police to ensure that there is synergy and consistency between Code Compliance and the Building Department regarding communication, the coordination of inspections and the issuance of warnings and violations. In addition, I have met with the President of CAP Government to share the feedback received from the community and interested stakeholders, as well as request that additional resources be dedicated to the Village in order to improve service delivery. Specifically, I have asked for a full- time Structural Plans Examiner and a full-time Permit Counter Manager in order to ensure greater supervision of staff, as well as increased efficiency of operations. These preliminary actions are only short-term solutions to address the more pressing issues impacting customer service. However, there are long-term decisions regarding how the department should be structured and how to achieve the level of service and performance expected by this Administration and the community, which will require additional analysis and planning to execute. I, much like the rest of the community, expect excellence in service delivery from Village government. My commitment to this community is that I will make changes in order to improve efficiency of operations, increase the level of service and professionalism of Village staff, and most importantly, ensure that this Administration exemplifies the principles of good government. As always, I am open to receiving feedback from residents, businesses and visitors alike, as there is always room for improvement. If you have any additional questions, please feel free to contact me Q JMG/DM Cap government Date: July 9, 2014 To: Jorge Gonzalez Manager of the Village of Bal Harbour From: Carlos A. Perlin, PE President of C.A.P. Government, Inc. RE: Information relating to C.A.P. Government, Inc. We have been asked to comment on questions and statements made during the Village's Commission Meeting of June 17, 2014. 1 understand that there were two issues; specifically, our role as Building Department inspectors during the collapse of the deck at Shuckers in North Bay Village and second, the permitting and construction at the Shops of Bal Harbour. BRIEF HISTORY C.A.P. Government, Inc. (CAP) was founded by Mr. Carlos A. Penin over twenty five years ago on April 10, 1989. It outsourced its first Building Department when the Village of Key Biscayne (1992) decided to break away from Miami -Dade County seeking better and more responsive service for its residents. Prior to then, CAP provided Municipal Engineering services to the cities of West Miami (1989) and South Miami (1990). The number of clients grew as the number of new cities increased and incorporation took hold. By 2005, we had grown into Broward County when the City of Weston decided to transfer their Building Department services from Broward County to our company. There are typically two reasons why CAP Government is retained by a municipality. First, a new municipality is incorporated and wants to have a say on their new Building Department, contracting with us to establish and run it. We have had, for many years, the opportunity to serve multiple municipal clients using this procurement method. Second, a municipality has issues with the service that is being provided by their existing Building Department and we are brought in to supplement or replace. Our company continues to develop and grow in this field as it provides customer focused level of service without sacrificing quality and timeliness of the delivery. We have a staff of over 90 employees serving almost 20 municipalities and three school boards in South Florida. NORTH BAY VILLAGE We were retained by North Bay Village, at the request of the Mayor, to provide staff and administer all of the technical functions for their Building Department. We were providing these services when the Shuckers Dock collapsed in June of 2013. We had our Chief Building Inspector and an Engineer at the scene of the collapse within 10 minutes of being notified of the incident. The following morning, two of our structural Engineers had boarded Police emergency 343 Almeria Avenue, Coral Gables, FL 33134 • 0 305.448.1711 • F 305.448.1712 • www.copfla.com cap Date: July 9, 2014 To: Jorge Gonzalez From: Carlos A. Penin, PE RE: Information relating to C.A.P. Government, Inc. Page 2 boats to inspect the collapsed structure. We were in the water performing underwater assessment of the structural components when not even the "first responders' wanted to do it Some facts about the collapse of the dock at Shuckers • The improvements on this property were built in 1971, over forty years ago and eighteen (18) years before we started our company. Our staff was not involved in the inspection of the construction at this site. • After many years, the owners of the facility retained an Architect / Engineering consultant that prepared and submitted plans for the rebuilding of the dock. These plans were approved by our staff at the North Bay Village Building Dept. The permits were never issued because, although the deadline was twice extended, the owners never proceeded with the work, nor even filing the Notice of Commencement (NOC). • The Owners of the facility were notified that the 40 year Certifications were due and the owner contracted an Engineering consultant to perform same. • As required by the Miami Dade County procedures, the Building Department confirms that the 40 year Certification report is prepared by a licensed Structural Engineer and the Building Department accepts this report. • The collapse is still mired in the legal system. C.A.P. Government, Inc. has received praise for our handling of the incident and the timely response of our professional staff. VILLAGE OF BAL HARBOUR • In March of 2013, C.A.P. Government began providing Building Department services at the Village of Bal Harbour. • We inherited a Department that lacks management and leadership. Processes had not been instituted properly and staff had their own way of performing the work. Improvements do not happen overnight and many of the issues that we deal with are a result of older permits and work methods that were established prior to our arrival. • Since our arrival, we have issued almost 1,800 permits with a valuation of work reaching seventy five million ($75,000,000) dollars. • In conclusion, we continue to work closely with the Village Manager to recommend effective processes and systems and have begun training to better serve the community. We continue to work in the direction of providing fair, friendly, accurate and expeditious service to all of our customers.