MIAMI MIRROR TRUE REFLECTIONS

850COMMERCESTREETUNFAZED

IstheBuildingDepartmentunderprivatesupervisionofPermitDoctor?

MIAMI MIRROR TRUE REFLECTIONS

DISCUSSIONOFRECORDBELOW
A phased permit for 850 Commerce Street was applied for and later voided. A Permit Doctor sign hung on the temporary construction fence, a sign probably not permitted by Planning as required, piqued my interest in phased permitting and the role that private inspectors play in that process. That is not to say that anything whatsoever is wrong about the permitting or the work on this project, but the job does provide an occasion for raising several points about a relatively novel form of permitting certain types of construction called phased permitting, which several major contractors have told me is limited to demolition and foundation work, which is not true. According to documents that must be filed with the city, demolition is not included. Phased permitting can encompass almost any kind of construction that the building officialgivesthenodto. Why was the regular permitting process substituted for the phased permitting process in this case? The Value on the Approved Permit of $963.469 is $470,093 MORE than the $566,439 stated a mere 7 days earlier. Will final documentation of valuation be required under criminal penalties of perjury? Why have undervaluations on other jobs been knowingly allowed by buildingdirectorswhenpartsofthefeegoingtothecountyetcarestillbasedonvaluation? Former Miami Beach fire inspector and permit doctor David Weston stated that phased permitting is conducive to even greater corruption than the regular permitting process, and that the privately hired inspection process constitutes an abnegation of government control and responsibility, therefore he has posed questions to county officials, and he has provided curiousinformationtolawenforcementonthesubject. However, despite numerous requests, Mr. Weston and city officials including the city manager andhisappointedbuildingdirectorhaveyettoprovideadescriptionoftheprecisedifferencein process between phased and regular permitting, and an explanation of why owners and developers would choose one form over the other, when the answers must be quite simple to the wellinformed, particularly the vested interests such as Jorge Perez and Russell Galbut who areusingphasedpermitstodeveloplargeprojectsinSouthBeach. Jimmy Morales, in a Memorandum to the Commission, pronounced that the phrase early start is synonymous with phased, arousing speculation that this form of permitting is Business As Usual, that is, of getting ahead of the job or starting work without express approvals with the unlikely risk that jobs would be stopped and fines would be actually be imposedifcaught. I found one such job, where a permit was given to demolish a nonexistent kitchen and bathroom represented on old plans that had never came to fruition. The real plan was to build

MIAMI MIRROR TRUE REFLECTIONS

out an empty penthouse. A small fee for the demo permit was paid, and nearly a half million dollars in construction was completed before I finally convinced the city manager, providing him with photographic evidence that there was no previous construction in the unit, to have inspectorsgoup,inspectandstopthejob. And then I complained that a doublepermit fee fine had not been imposed on what I believed was an effort to cheat the city of fees, On the other hand, the unlicensed general contractor claimed that he intended to get a master permit all along via his unlicensed architect and permit fixeror expeditor, who provided for therental ofacontractors license.He insisted that he was only doing what everybody else does, just get ahead of the job, for which a master permit was applied for, as an ownerbuilder remodel at less than half the contracted value although the owner was a pension fund managed by a Wisconsin developer and contractor unlicensed in Florida who had done unpermitted work in South Beach condo units he had flipped. It appeared that the owner could have completed over a million dollars of construction work for a few hundred dollars in permit fees and then walk away, letting the paperwork expire without calling for inspections. Indeed, the head inspector refused to arrange for an inspection of work that was ongoing during the stop work period unless he had evidence of construction. A $28,000 double permit fee fine was eventually imposed but reluctantly; Everybody does it was, in retrospect, probably a correct statement. The work dragged on and on and finally passed muster, but an arrangement was made that no fines for delays in compliance would be imposedbythespecialmasters,whohavebeenvirtuallyreducedtobeingapoliticalarmofthe BuildingDepartment. Incredibly, Commissioner Jonah Wolfson spearheaded an effort to waive double permit fees; the former city manager, apparently unwilling to upset what everybody does, recommended continued flexibility. The interim city manager agreed, but owners should have to confess wrongdoingi.e.startingworkwithoutpermits,beforegettingabreak. Thecityattorney,much to his credit, raised a legal objection to waiving state law, so an end run was made to the state boardinhopesofgettingageneralwaiverauthority. Soisphasedpermittingthelegitimizationofwhatalmosteverybodydidandeverybodyknew, and nobody cared about until a few people thought the rules should be strictly followed to preventfraudandwaste? Finally, what licenses does Permit Doctor hold that qualifies the private company that leases space from City Hall to administer permits and manage inspections? Why does the city no

MIAMI MIRROR TRUE REFLECTIONS

requiresocalledexpeditorstobeidentifiedontherecords?Thatwould enhancetheirvalueto thepublicifstatisticalanalysesdemonstratethattherewastrueexpedition.Ontheotherhand, anoverlyexpeditiousrecordmightflagexpeditorstolawenforcementfortracking.

850CommerceStreetPermitListasofFeb.4,2014
93FI3858 B1105284 B1200736 B1300951 B1305232 B1306689 B1400692 B1400761 B1400762 B1401236 B1401717 B1401953 BCO90021 BD120271 BD130192 BE132396 BE140052 BE140053 BM140102 BM140178 BM140404 BMS0003391 BMS1300979 BMS1301609 BMS1302898 BMS1303057 BP131757 BP132339 BP140139 FIREINSP BUILD BSBUILD BUILD BUILD BPHASED BUILD BSBUILD BSBUILD BSBUILD BSBUILD BSBUILD BCOCC BDEMOPRJ BDEMOPRJ BSUBELEC BSUBELEC BSUBELEC BSUBMECH BSUBMECH BSUBMECH BMISC BMISC BMISC BMISC BMISC BSUBPLUM BPLUM BSUBPLUM NOINSP FINAL FINAL APPROVED APPROVED REVOKED APPROVED APPLIED APPLIED APPROVED APPROVED APPLIED APPROVED CLOSED FINAL FINAL APPROVED APPROVED APPROVED APPROVED APPROVED CLOSED CLOSED CLOSED CLOSED APPROVED APPROVED APPROVED APPROVED 1993-08-31 2011-09-20 2011-11-17 2012-11-19 2013-07-09 2013-09-26 2013-11-06 2013-11-12 2013-11-12 2013-12-11 2014-01-15 2014-01-29 1990-06-29 2012-08-13 2013-04-04 2013-05-30 2013-10-04 2013-10-04 2013-10-18 2013-10-30 2013-12-17 2000-08-18 2013-01-03 2013-03-05 2013-06-20 2013-07-09 2013-06-25 2013-09-13 2013-10-17

MIAMI MIRROR TRUE REFLECTIONS

BP140284 BP140476 BR970220 BREV131627 BREV131692 BREV132159 BREV140008 BREV140731 BREV140823 BREV140882 FP060428 FP070261 FP130699 FP140035 FP140089 FP140157 FP140287

BSUBPLUM BSUBPLUM BREC BREV BREV BREV BREV BREV BREV BREV FPERM FPERM FPERM FPERM FPERM FPERM FPERM

APPROVED APPROVED VOID APPROVED APPLIED APPROVED APPROVED APPLIED APPLIED INREVIEW FINAL FINAL FINAL FINAL APPROVED APPROVED APPROVED

2013-11-06 2013-12-06 1997-07-11 2013-06-18 2013-06-28 2013-09-12 2013-10-02 2014-01-08 2014-01-22 2014-01-29 2006-06-14 2007-03-15 2013-08-12 2013-10-15 2013-10-30 2013-11-26 2014-01-30

InspectionsStatusPayment History

Case / Application / Permit Number Type / Classification

Address Parcel Number

B1305232 BUILD ALTRMD: Alteration/Remodeling BLDG: Building 850 COMMERCE ST Miami Beach, FL 33139 42030092100

File Date Status Status Date Valuation Fees Payments Balance Description

2014-07-30 APPROVED N/A $963,469.00 $19,207.93 $19,207.93 $0.00 PRIV PROV INSP ONLY - Interior Build

MIAMI MIRROR TRUE REFLECTIONS

out of a Restaurant and Exterior fountain and Windows/ Doors and Roof ( Green Roof), Fence and Canopy View Map(Click the "Back" button on the browser to return to Permit Manager.) Contacts Name CONSTRUCTION SERVICE SOLUTIONS Business N/A Relationship CONTRACTOR Phone N/A Name Business Relationship Phone Name Business Relationship Phone Name Business Relationship Phone Name Business Relationship InspectionsStatusPayment History COMMERCE ST PROPERTIES LLC N/A OWNER N/A CONSTRUCTION SERVICE SOLUTIONS N/A APPLICANT N/A HOMLEID, TANYA N/A ENGINEER N/A STA ARCH GROUP N/A ARCHITECT

Case / Application / Permit Number Type / Classification

Address Parcel Number

B1306689 BPHASED ALTRMD-C: Alteration/Remodeling Comm BLDG: Building 850 COMMERCE ST Miami Beach, FL 33139 42030092100

File Date Status Status Date Valuation Fees Payments Balance

2014-07-13 REVOKED N/A $566,439.00 $1,500.00 $1,500.00 $0.00

MIAMI MIRROR TRUE REFLECTIONS

Description

PHASE PERMIT PRIV PROV INSP ONLY for Inteior Buildout of RestaurauntB1305232

View Map(Click the "Back" button on the browser to return to Permit Manager.) Contacts Name CONSTRUCTION SERVICE SOLUTIONS, LLC N/A Business Relationship CONTRACTOR Phone N/A Name Business Relationship Phone Name Business Relationship Phone Name Business Relationship Phone Name Business Relationship Phone

CONSTRUCTION SERVICE SOLUTIONS, LLC N/A APPLICANT N/A HOMLEID, TANYA N/A ENGINEER N/A OCEAN ONE AT SOUTH POINTE LLC N/A OWNER N/A TRAGASH, TODD B N/A ARCHITECT N/A

MIAMI BEACH
OFFICE OF THE CITY MANAGER
NO LTC

263 2013

LETTER TO

CC
C1
i

g CL 1

TO

Mayor Matti Herrera Bower and Members of the City Commission

Jimmy L Morales City Manager July 31 2013
Implementation of New Phased Permitting Program by Building Department

FROM

DATE

SUBJECT

The purpose of this Letter to Commission is to inform the City Commission of the Implementation by the Building Department of a new Phased Permitting Program Phased permits sometimes called an early start permit allow certain types of construction to begin once a Phased Permit is approved by the Building Official and a complete set of plans has been submitted for review to obtain a full building permit Once approved phased permit holders have six months to obtain building permit approval during which time they can begin construction on their projects Phased permit holders will be required to sign a hold harmless agreement pay an administrative fee and submit other documents required by the Building Official or other DepartmentsAgencies No work will commence unless all required City Board approvals have been obtained and no life safety or Florida Building Code requirements will be compromised in any way It is important to note that only
commercial new construction commercial interior alterations and residential new

construction will be eligible for the program The document attached details the Phased

Permit Approval process and has been prepared for distribution to customers and
publication on our website and elsewhere

The phased permit process offers developers and builders the advantages of immediately beginning construction as long as they are willing to assume all of the risks associated with that early start Customers have long asked for such a program because delays in obtaining permits and the resulting ability to begin construction have serious financial implications for their projects The City s new Building DirectorOfficial Mariano Fernandez successfully implemented a similar program in the City of Miami that has drawn considerable praise from

the development community and enabled construction in that City to commence quickly and efficiently over the last several years
We are committed to finding innovative ways to better meet the needs of the business community and our citizens while also fulfilling all of our regulatory responsibilities We will continue to bring process improvement initiatives like this one to your attention as they are implemented

JLM JJ MVFSS

PHASED PERMIT APPROVAL

1 Bring two sets of plans calculations survey and a permit application to the permit counter to obtain a process number for your regular building permit

2 Once the upfront fee has been paid and the process number has been obtained bring an
additional application and two additional sets of plans of the architectural and structural portion of the building that you would like to permit under the Phased Permit process to the
Building Official for approval

3 In addition to the documents required above you will also be required to submit a letter
Miami Dade WASA of intention to issue the water and sewer allocation letter from

4 Take application to the Permit Counter to obtain a plan number and return to the see the
Building Official

5 Do not take Phased Permit plans to the Plans Processing Desk after obtaining your plan
number Before returning to the Building Official for plans approval you must first obtain approval from the Planning Department and the Flood Plain Compliance Section of the

Building Department Next see the Building Official with your plans and Phased Permit
Request Form and a letter from the private provider that will perform your inspections

until the actual Building permit is issued Phase Permit plans will not be reviewed by other
trades

6 After the approval of the Building Official you will need to return to the permit counter to obtain and pay for the permit Please be advised that the cost of the Phased Permit is non
refundable and will not be credited to the final building permit

7 You may need additional trade Phased permits electrical mechanical plumbing etc Please be sure to notify the permit counter when requesting these permits to link them

and not pull them from the phase permit This will ensure that the trade permits can be
transferred to the building permit once obtained

8 A National Pollutant and Discharge Elimination System NPDES permit may be required Storm water erosion and sediment control during construction demolition or related activities that impact one half 1 2 acre or more shall be in accordance with the city s
Municipal Separate Storm Sewer System MS4 permit

9 Separate permits from City of Miami Beach Public Works Department may be required for work on the public rights of way that involve paving sidewalks excavation drainage maintenance of trafficstreet closure tree removal relocation planting or dewatering etc as needed For applicable permits please contact Public Works Department at 305 673 7080
Note The Phased Permit cost is 2000 for Commercial New Construction 1500 for Commercial Interior Alteration only 1000 for Residential New Construction

and is valid for six 6 months only You must obtain your master permit within six
months from the date of issuance

PHASED

PERMIT

CITY OF MIAMI BEACH - NEW CONSTRUCTION AND INTERIOR AL TERA nONS INDElvfNITY At"ID HOLD HARtvlLESS

ONLY

WHEREAS, 105.13 entitled "Phased Project"; and

Permit Approval",

(Property Owner), in accordance wishes to commence construction at Address

with the Florida Building Code, 2010 ed., Section , hereinafter "the

\\lIEREAS, the Building Official is willing to issue a Phased Permit, subject to the Written Procedures Phased Permit, the receipt of which is hereby acknowledged by the Owner and Contractor; and

governing

the

WHEREAS, a National Pollutant and Discharge Elimination System (NPDES) permit may be required. Storm water, erosion and sediment control during construction, demolition, or related acti vities that impact one-half (1/2) acre or more, shall be in accordance with the City's Municipal Separate Storm Sewer System (MS4) permit; and WHEREAS, separate permits from the City of Miami Beach Public Works Department public right of way and in easements dedicated to the City; and are required prior to work in the

WHEREAS, all construction activity on new or existing structures within an historic district or site require a certificate of appropriateness in advance from the Historic Preservation Board or staff as required by the City Code; and WHEREAS, this Phased Permit does not allow any demolition. and other good and valuable consideration, the receipt and

NOW THEREFORE, in consideration of the above premises, sufficiency of which is acknowledge, Owner hereby agrees as follows: 1.

2.

3.

4. 5.

6. 7. 8.

In accordance with the Florida Building Code, 20 I 0 ed., Sec. 105.13, Owner agrees to indemnify and hold harmless and release and discharge the City of Miami Beach (hereinafter "City"), including its employees, from any and all liability arising out of, or in connection with the issuance of said Phased Permit. Owner agrees that this Phased Permit for the structure shall proceed at the holder's own risk with the building operation and without any assurance that a building permit for the entire structure will be granted. Owner further agrees that corrections may be required at the time of the issuance of the building permit to meet the requirements of the technical codes as well as the Land Development Regulations of the City Code. Owner agrees that if any demolition occurs on the Property, the Phased Permit shall be automatically revoked by the Building Official without further notice to the Property Owner and Contractor and all construction shall immediately stop. Owner agrees that if construction occurs on or over public property or a City easement, all encroachments shall be demolished, with proper permits, prior to the building permit being issued for the entire structure. Owner agrees that the Phased Permit does not imply review of or compliance with the Florida Fire Prevention Code and that any work requiring a Fire Permit is not included in this Phased Permit and therefore cannot commence without said permit. Any required Fire Permit cannot be issued without an approved design document as prescribed in Florida Statutes. The obligations of the Owner under this Agreement shall become operative and effective only upon the issuance to Owner of a Phased Permit for construction. Owner acknowledges that the acceptance of the Phased Permit is a complete waiver and estoppel as to any rights, real, apparent or otherwise, to challenge the validity of any conditions hereof. Owner acknowledges that any construction activity in violation of the above may require correction or removal to come into compliance with City Code and other applicable laws and regulations, at no cost to the City. do below.

hereunto

IN WITNESS, WHEREOF, and set their hand and seal on the date and year as indicated

SIGNATURE PAGE FOLLOWS

OWNER - NAME:

Owner's Signature STATEOF COUNTYOF _ _ ---:, as identification. ' who is

The foregoing instrument was acknowledged before me by personally known to me or has produced Witness my signature and official seal this day of

, in the County and State aforesaid.

Notary Public-State of My Commission Expires: Print Name CONTRACTOR-NAME:

Contractor's Signature STATEOF COUNTY OF _ _

The foregoing instrument was acknowledged before me by personally known to me or has produced Witness my signature and official seal this day of

, who is , as identification. , in the County and State aforesaid.

Notary Public-State of

Print Name My Commission Expires:

Accepted:

Building Official

Dated

This form was approved as to form and language and for Execution by the Office of the City Attorney - 06.04.13

Page 2 of2

BUILDING DEPARTMENT 1700 Convention Center Drive, 2nd Floor Miami Beach, Florida 33139 Phone: (305) 673-7610 Fax: (305) 673-7857

NOTICE TO BUILDING OFFICIAL OF USE OF PRIVATE PROVIDER

Project Name: Parcel Tax 10: Services to be provided: Plans Review _ Inspections _ _ _

Note: If the notice applies to either private plan review or private inspection services the Building Official may require, at his or her discretion, the private provider be used for both services pursuant to Section 553.791(2) Florida Statue. I , the fee owner, affirm I have entered into a contract with the Private Provider indicated below to conduct the services indicated
above.

Private Provider Firm: Address: Telephone: Email Address (Optional): Florida License, Registration or Certificate #:

_ _ _ _ _

I have elected to use one or more private providers to provide building code plans review and/or inspection services on the building that is the subject of the enclosed permit application, as authorized by s.553.791, Florida Statutes. I understand that the local building official may not review the plans submitted or perform the required building inspections to determine compliance with the applicable codes, except to the extent specified in said law. Instead, plans review and/or required building inspections will be performed by licensed or certified personnel identified in the application. The law requires minimum insurance requirements for such personnel, but I understand that I may require more insurance to protect my interests. By executing this form, I acknowledge that I have made inquiry regarding the competence of the licensed or certified personnel and the level of their insurance and am satisfied that my interests are adequately protected. I agree to indemnify, defend, and hold harmless the local government, the local building official, and their building code enforcement personnel from any and all claims arising from my use of these licensed or certified personnel to perform building code inspection services with respect to the building that is the subject of the enclosed permit application. I understand the Building Official retains authority to review plans, make required inspections, and enforce the applicable codes within his or her charge pursuant to the standards established by s. 553.791, Florida Statutes. If I make any changes to the listed private providers or the services to be provided by those private providers, I shall, within 1 business day after any change, update this notice to reflect such changes. The building plans review and/or inspection services provided by the private provider is limited to building code compliance and does not include review for fire code, land use, environmental or other codes. The following attachments are provided as required: 1. 2. Qualification statements and/or resumes of the private provider and all duly authorized representatives. Proof of insurance for professional and comprehensive liability in the amount of $1 million per occurrence relating to all services performed as a private provider, including tail coverage for a minimum of 5 years subsequent to the performance of building code inspection services.

Page 1 of3

INDIVIDUAL Name Address Phone _

Signature STATE OF FLORIDA COUNTyOF Before me, this day of _ 20 , personally appeared _

who executed the foregoing instrument, and acknowledged that same was executed for the purposes therein expressed. [

1 Personally

known

1 Procured

Identification - Type of Identification

Signature of Notary Public CORPORA TION Name

Seal

Address

Phone

Signature STATE OF FLORIDA COUNTyOF Before me, this of day of _ 20 a corporation, , personally appeared on behalf of the state corporation, _ who executed the fore

foregoing instrument, and acknowledged that same was executed for the purposes therein expressed. [ ] Personally known

[1 Procured Identification - Type of Identification

Signature of Notary Public PARTERSHIP Name,

Seal

Address

Phone

Signature STATE OF FLORIDA COUNTyOF Before me, this _ day of 20 , personally appeared _

partnership, who executed the foregoing instrument and acknowledged that same was executed for the purposes therein [

1 Personally

known [

1 Procured
Seal

Identification - Type of Identification

Signature of Notary Public

Page 2 of3