News

By Steve Plunkett, Jane Smith and Rich Pollack

Highland Beach and Gulf Stream have struck a deal in which the former will process the latter’s applications for building permits.
“We’re excited about this. We’ve been kind of in a purgatory here,” Gulf Stream Town Manager Greg Dunham said after a special meeting on Aug. 26 that culminated with a 3-0 vote to approve the arrangement.
A day earlier, Highland Beach commissioners OK’d their side of the bargain on a 5-0 vote.
“This is an example of how small towns can work together for the benefit of everyone,” said Highland Beach Commissioner Evalyn David.
Under the agreement, the Highland Beach Building Department will provide building plan review and inspection services to Gulf Stream, work that until last spring had been handled by Delray Beach.
 In May, Delray Beach ordered an abrupt halt to engineering, floodplain and landscaping review for Gulf Stream plans after discovering its building department was doing the reviews without necessary City Commission authorization.
Gulf Stream hired outside engineers and a landscape architect to pinch-hit on the reviews and solicited bids from three third-party firms while also negotiating with Highland Beach to take over the work.
Highland Beach Town Manager Marshall Labadie touted the advantages to both towns.
“Overall, the building permit fees generated by the Town of Gulf Stream customers would cover all variable costs (plan review and inspections) and its proportion of fixed costs and provide an administrative fee to cover management costs, all while improving service for Highland Beach customers by securing greater access to more inspectors and plan reviewers,” Labadie wrote in his Manager’s Minute online newsletter. The inspections and reviews are done by an outside contractor, CAP Government Inc.
Dunham said Gulf Stream officials “have been working on this for longer than we really liked.”
Highland Beach officials originally were scheduled to consider the proposal on Aug. 2, but the mayor was absent so the matter was postponed until Aug. 4. At that special meeting, commissioners decided to ask their Financial Advisory Board to review the terms at its Aug. 23 meeting. Commissioners then approved the agreement on Aug. 25.
Some final tweaks included striking a clause that applications from both towns would be handled first-come, first-served and that Gulf Stream residents would pay the same fees as those charged to Highland Beach properties.
Labadie said the permit fees paid by Gulf Stream may not be the same. “In fact, the Town Commission has signaled its desire to maintain the 10% discount to Highland Beach customers put in place earlier this year,” he said.
The first-come, first-served idea was scrapped to give Highland Beach flexibility in scheduling small jobs submitted shortly after a much larger project such as a home renovation.
Dunham said the next step will be to schedule the transition toward the Highland Beach takeover and away from Delray Beach’s withdrawal.
Meanwhile, Delray Beach city commissioners on Aug. 9 unanimously agreed to stop processing building permits for Gulf Stream on Oct. 10.
The city is installing a computerized permit system that allows builders and others to submit plans online. City staff sent a letter to Gulf Stream in late April about the upgrade and that paper plans would not be accepted after the transition. Delray Beach estimated the annual cost to Gulf Stream would be $13,208 for storing and maintaining the electronic system.
Delray Beach also wanted Gulf Stream to pay for travel time and a portion of the salary and benefits when one of the Delray Beach inspectors or its contractors drives to the town to inspect a building.
Delray Beach has been processing Gulf Stream’s permits for nearly 13 years. The town’s permits account for between 3.6% and 5.6% of the building fund revenue, said Anthea Gianniotes, the city’s development services director. The town’s permits comprise 3% to 20% of the permits processed annually by Delray Beach.
Highland Beach estimates Gulf Stream’s permits will add around 40% to its workload. Gulf Stream won’t have to pay extra for inspections because the third-party inspectors come from their company offices in West Palm Beach, passing through Gulf Stream on their way to Highland Beach.
The new agreement between Highland Beach and Gulf Stream is of a “continuing nature,” with either side able to terminate it by giving no fewer than 90 days’ written notice.