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Item E3 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: September 21,2000 Bulk Item: Yes No X Division: Growth Management Department: Building AGENDA ITEM WORDING: Briefing on Monroe County Flood Insurance Inspection Program and possible options for extending County inspection authority beyond the completion of that program. ITEM BACKGROUND: The Growth Management Division staff will brief the Commission on the general details of the process and procedures for the County's Flood Insurance Inspection Program, which is scheduled to begin in January 2001. In addition, the staff would like to discuss and receive direction from the Commission on possible options for expanding the County's authority to require compliance inspections after the Flood Insurance Inspection Program is completed. PREVIOUS RELEVANT BOARD ACTION: The Board of County Commissioners reaffirmed entering into participation with FEMA on a County Flood Insurance Inspection Program on July 22, 1999. STAFF RECOMMENDATION: Provide policy direction to staff on options to continue inspection authority beyond completion of Flood Insurance Inspection Program. TOTAL COST: $49,000.00 per year BUDGETED: Yes X No COST TO COUNTY: $49,000.00 per year COST PER MONTH: $4,800.00 per month APPROVED BY: County Attorney N/ A OMB/Purchasing N/ A Risk Management N/ A DEPARTMENT DIRECTOR APPROVAL: ~ 5J?- e~-// Josiph . Paskalik, C a Senior Director/Building Official DIVISION DIRECTOR APPROVAL: Timo tor of Growth Management DOCUMENTATION: Included X To follow Not required DISPOSITION: Agenda Item #: ca, E 3 County of Monroe Growth Management Division 2798 Overseas Highway Suite 410 Marathon, Florida 33050 Voice: (305) 289 2500 FAX: (305) 289 2536 Board of Countv Commissioners Mayor Shirley Freeman. Dist. 3 Mayor Pro Tern, George Neugent. Dist. 2 Commissioner Wilhelmina Harvey, Dist. 1 Commissioner Mary Kay Reich. Dist. 5 Commissioner Nora Williams, Dist. 4 MEMORANDUM FROM: Board of County Commissioners Timothy J. McGarry, AICP orJ Director of Growth Manage1"o/lt/ September 1, 2000 TO: DATE: SUBJECT: Monroe County Flood Insurance Inspection Program Overview At its September 21, 2000, regular meeting, the Growth Management Division staff will brief the Commission on the details of the Monroe County Flood Insurance Inspection Program, which is scheduled to begin on January 1, 2001. After this briefing, the staff would like to discuss and receive some policy direction from the Commission related to issue of ensuring on-going compliance after all inspections are completed under the program. Briefing on Inspection Program Summary of Process and Key Program Elements A summary of the County's Flood Insurance Inspection Program and a flow diagram of the process are provided in the attachment. The summary describes the specific actions and procedures for implementing the program, which are outlined in the flow diagram in the attachment. Program Schedule and Work Loads The County Growth Management Division proposes to submit an initial of 100 properties to the Federal Emergency Management Agency (FEMA) in January 2001. Based upon the January submission date and the six month notification period, the earliest date that the first inspection could occur will be July 2001. After the January submittal, an additional 50 properties per month will be submitted to FEMA to generate at least 600 inspections per year. This inspection schedule assumes two to three C :\DOCU MENT\AGEN DA \f1oodinsurprg. doc inspections per day, a workload that is well within the current resources of Building Department and Code Enforcement staffs. It is estimated that between 3,000 to 4,000 properties within unincorporated Monroe County will require on-site inspections. Based on this number, it will take five to seven years to complete the program. Program Costs The Growth Management Division staff estimates that the annual costs of the inspection part of the program will be $49,000 per year, which includes tasks necessary for determining compliance of all properties, even those not requiring an official inspection. These costs include administration, records research, and indirect expenses. The proposed inspection fee is $50.00. If the property is determined to be not in compliance, the property owner will be required to submit to the County Building Department a permit application and $36 fee (proposed), which will cover the costs for records and permit file research, processing of the demolition permit, and final on-site inspection. Ongoing Inspection Program As the Board of County Commissioners is aware, the Flood Insurance Inspection Program is one- time only. Once policy holders have gone through a compliance determination, they will not be required to have any further annual inspections to renew their flood insurance policies. Commissioners have expressed concerns with this limitation and the potential adverse effects it may have on the County's ability to maintain its participation in the National Flood Insurance Program and compliance with the Florida Statutes and County Code. Therefore, the Board requested that the Growth Management Division staff investigate options to address this issue, including reviewing the recommendations of the Citizen's Task Force that addressed FEMA compliance issues. Options The staff reviewed a range of options including: 1) conditioning demolition permits of property owners required to eliminate illegal below base flood enclosures that would allow the County to conduct follow-up compliance inspections for a reasonable period of time (one to three years) to ensure compliance; 2) placing a restrictive covenant on the property as a condition of receiving a ~ permit for the demolition of illegal below base flood enclosures that would allow the County to conduct inspections of property for ten or more years to ensure compliance; 3) negotiating with FEMA to authorize extension of the Flood Insurance Inspection Program; and, 4) requiring that a compliance inspection be conducted prior to the transfer of ownership of any property with a post- 1975 residence with a downstairs enclosure. Evaluation The first two options would be difficult to administer and monitor due to the potential number of such conditional permits and restrictive covenants. The Board of County Commissioners would have to approve each restrictive covenant. Although both options would grant the County the right to enter property to conduct these inspections, it is fairly certain that many property owners may well consider such authority as "too" intrusive, especially under Option 2. Option 1 would severely limit the number of years that such inspections would be authorized after the final inspection for compliance with the issued demolition permit is completed. Furthermore, both options would not affect properties found in compliance or not under the purview of the Flood Insurance Inspection Program (uninsured or privately insured properties). The staff has serious concerns about the fairness of Option 2 and the legal and policy basis for its application. Option 1 has a firmer policy and legal foundation, particularly due to the limited period of its applicability and direct relationship to a permitting compliance issue. Option 3 would require FEMA's agreement to continue the program. At this early juncture, FEMA may take the position that the need for such an extension is premature, but may be ready to consider it at a later date in the inspection program. [It is the staff's understanding that authority to extend the program will require a similar process as the one that established it in the first place.] This option still would not address those properties in noncompliance that are uninsured or privately insured. The fourth option would be fairly simple for the County to establish, administer, and monitor. It would require that a compliance inspection of all post-1974 residences with a downstairs enclosure be done prior to the transfer of ownership. Compliance inspections would be done by either County staff or private inspectors certified by the County. This option would be much less intrusive than Options 1 and 2. It would also allow for compliance inspections of some portion of the uninsured or privately insured residences. None of the uninsured or privately insured properties are addressed in the first three options. Furthermore, it will help reassure home buyers that their future residence meets flood plain regulations and make them aware of the limitations on use of their downstairs enclosure. Recommendation No action is required by the Board on the proposed County Flood Insurance Inspection Program. The Growth Management Division staff does request some policy direction on option(s) to ensure on-going flood plain compliance after the Flood Insurance Inspection Program is completed. The staff recommends that Option 4 (mandatory inspection prior to property transfer) be the recommended option to pursue at this time. Attachment Attachment Growth Manaqement Division Suite 410 2798 Overseas Highway Marcrthon,Aonda33050 Voice: (305) 289 2500 FAX: (305) 28~2536 County of Monroe . Board of County Commissioners Mayor Shirley Freeman, Dist. 3 Mayor Pro Tem Gee. Neugent, Dist. 2 Wilhelmina Harvey, Dist. 1 Nora Williams, Dist. 4 Mary Kay Reich, Dist. 5 SUMMARY OF COUNTY FLOOD INSURANCE INSPECTION PROGRAM Identification of Dotential violations The County staff will review property tax records to identifY those structures constructed after January 1, 1975 (date of implementation of Monroe County Floodplain Management Ordinance), referred to as Post Firm Structures. The structures to be identified will be Post FIRM structures that contain floor living area (FLA) beneath an elevated building. The County will start identifying the most recently built structures and work backwards. This order allows older structures where conversions may have occurred many years ago and now used as affordable housing units, to have more time to find replacement housing. In addition., applicants that have received permits with the condition that the Building Department be contacted within 30 days to correct illegal construction below base flood elevation, and have not yet done so, will be among the first identified regardless of the year the structure was built. Elevated structures with no enclosures or conwliant enclosures Structures identified on the property tax card that are elevated with no enclosures below base flood elevation will not require an inspection, but only a windshield survey to verifY status. Structures containing compliant, conforming below base flood elevation enclosures will not require an inspection if the property owner agrees to allow Monroe County to perform a verification site visit. Submission of Potential Violations to FEMA Monroe County will provide FEMA with a list of properties with potential illegal below base flood elevation enclosures. The National Flood Insurance Program (NFIP) through the insurance agents will notifY each of these applicants that an inspection will be due in order to renew their flood insurance policy. The applicants will be notified 6 months prior to their premium renewal date to afford ample opportunity to receive an inspection. Page 1 of 2 Time Manallement and lnsvection Fees After a property owner submits an application for an inspection with accompanying fee, Monroe County Growth Management Division staff will perform the inspection within 10 to 14 working days from the date of the application. Inspection applications will be available at all Monroe County Building Departments and on-line. There will be a $50.00 inspection fee. Within 5 working days from the date of the inspection by Monroe County, a status of compliance report will be mailed to the applicant. Avvlication To Comvlv The status of compliance will be described as "in compliance" or "not in compliance". This will allow the applicant to renew his insurance while research is performed to determine the scope of noncompliance. If the scope of noncompliance was authorized by benefit of a permit, (i.e. convenience bath, workshop or recreation room) the structure will be deemed "legally nonconforming". The applicant and the National Flood Insurance Program will receive a detailed letter identifying the legal nonconforming construction. The National Flood Insurance Program will rate the risk accordingly and assign the appropriate premium. A permit application for compliance with Floodplain Management must be submitted to the Building Department within 60 calendar days after receipt of the "status of compliance" letter notifying the property owner of noncompliant construction. There will be an application fee of $36.00 that is deductible from the permit fee if the permit fee exceeds the application fee. The County Staff will research the property and identifY the scope of the permit issued for construction below the base flood elevation. Demolition will be required for removal of any construction beyond the scope of the permit that was issued. If an application is not received within 60 calendar days from receipt of "status of compliance", code enforcement action will be initiated. If an applicant has not corrected the "illegal construction" before the next insurance premium due date, The National Flood Insurance Program will not renew the flood insurance policy. Page 2 of 2 ::: .~ ::: .... :.2 0- ..... g.,;:: ~ S:._ 0 0 ;;> .... ~ ... ~ ~d =.- = o Q..'- ,0 ''5 ~ ~ 9 ~~....o o.-;s=U ~"'O~~ .;: 6 ~ 8 <.So~= rJ)~ 0.0 ~rJ)..g::E ~ >.~>. o.~ = .D g. .- "'0 ~ ~"'O ~ ~ h:::=-=~.... "".- ::l t:: rJ) ~-t!:.D0'E O~Ste ~~"'O o.~ t::-~~~ 8. 0 .2:.D ~ ....~-~ ~~~~::E >..;:; ... o ~ ~ g ...C; ... 0._ 0 .'" ~ 0. 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