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Agenda 03/08/2016 Item #16F 1 3/8/2016 16.F.1 . EXECUTIVE SUMMARY Recommendation to approve the termination of Agreements between Fine & Dandy Service, Inc., (d/b/a NAPKING), and the Collier County Water-Sewer District for payment of Wastewater Impact Fees and Allowance for Funds Prudently Invested Fees related to building permit number 2010070017,and a debt write-off in the amount of$13,639.12. OBJECTIVE: To terminate an Equipment Security Agreement (Attachment A), a Customer Payment Agreement (Attachment B), and a General Agreement (Attachment C) for the payment of a Wastewater Impact Fee and an Allowance for Funds Prudently Invested(AFPI) Fee assessed on a tenant buildout permit for the addition of three commercial washing machines and to write- off the unpaid balance as bad debt. CONSIDERATIONS: At the September 14, 2010, Board meeting (Agenda Item 6E), Ms. Denise Denard, owner of NAPKING, submitted a public petition for either a partial or complete waiver of the Wastewater Impact Fee and the AFPI fees associated with permit number 2010070017, or a payment plan. The Board directed staff to investigate possible options, and on October 12, 2010, (Agenda Item 10E)the Board heard presentations from the petitioner and staff about the available options. On December 14, 2010, the Board approved the above-referenced Agreements and a State of Florida Uniform Commercial Code Financing Statement Form (Attachment D) which was filed with the State of Florida on January 31, 2011. When the impact fees were calculated for permit #2010070017 in 2010, they were based on a methodology that used an ERC (equivalent residential connection) and flows as listed in the Florida Administrative Code. On November 12, 2013, the Board amended the provisions of the Impact Fee Program for Existing Commercial Redevelopment (a.k.a. Change of Use Program) to include assessment of Water and Wastewater Impact Fees related to a change of use to only be assessed if the existing water meter (meter) is upsized. The meter size was not upsized in this case, so if the same circumstance occurred anytime subsequent to the effective date of the amendment on December 1, 2013, the fees would not have been assessed. Additionally, on February 10, 2015, the Board approved an ordinance amending Chapter 74 of the Collier County Code of Laws and Ordinances adopting updated Water and Wastewater Impact Fee rates that included a change to a meter-based methodology for calculation of the fee. This change to meter size was beneficial to commercial fees payers, as in most cases the impact fee assessment is lower (as proven in numerous alternative studies) and the process for calculating the impact fee is less complex, therefore allowing customers to accurately estimate fees. To the benefit of the County, this methodology streamlined the administrative process both internally and externally and more accurately addressed the demand and capacity requirements of commercial users. Furthermore, the AFPI fee was eliminated in 2012. Packet Page -958- 3/8/2016 16.F.1 . The County has received $10,429.64 of the $24,068.76 amount originally assessed, which consisted of all required payments through April 2015. On September 14, 2015, Denise Denard, an owner of NAPKING, notified the County in writing (Attachment E) that NAPKING had officially closed, all assets were liquidated to pay creditors, they are no longer in possession of the equipment, and they have vacated the premises. In consideration of monies received from this Agreement, recent modifications to commercial impact fee calculations, the sunset of the AFPI fee, the amendment to the Change of Use Program, and the potential cost involved in pursuing any fees owed/debt collection, staff recommends terminating all existing agreements. FISCAL IMPACT: The unpaid balance of $13,639.12, which consists of $11,883.00 in Wastewater Impact Fees and $1,756.12 in AFPI Fees, will be written off as bad debt. GROWTH MANAGEMENT IMPACT: There is no associated Growth Management Impact. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved as to form and legality, and requires majority vote for approval. —JAK RECOMMENDATION: To terminate the Equipment Security Agreement, Customer Payment Agreement, and General Agreement between Fine & Dandy Service, Inc. and the Collier County Water-Sewer District and to write-off$13,639.12 as bad debt. Prepared by: Amy Patterson, Director, Capital Project Planning, Impact Fees and Program Management Division, Growth Management Department Attachments: 1. Attachment A- Equipment Security Agreement 2. Attachment B - Customer Payment Agreement 3. Attachment C - General Agreement 4. Attachment D - State of Florida Uniform Commercial Financing Statement Form 5. Attachment E-Letter from Owner Packet Page -959- 3/8/2016 16.F.1. COLLIER COUNTY Board of County Commissioners Item Number: 16.16.F.16.F.1. Item Summary: Recommendation to approve the termination of Agreements between Fine & Dandy Service, Inc. (d/b/a NAPKING) and the Collier County Water-Sewer District for payment of Wastewater Impact Fees and Allowance for Funds Prudently Invested Fees related to building permit number 2010070017, and a debt write-off in the amount of$13,839.69. Meeting Date: 3/8/2016 Prepared By Name: FleishmanPaula Title: Operations Analyst, Senior, Capital Project Planning, Impact Fees and Program Management 1/27/2016 12:55:16 PM Submitted by Title: Operations Analyst, Senior, Capital Project Planning,Impact Fees and Program Management Name: FleishmanPaula 1/27/2016 12:55:17 PM Approved By Name: ZautckeLaura Title: Management/Budget Analyst, Senior,Utilities Finance Operations Date: 2/1/2016 8:15:32 AM Name: MarcellaJeanne Title: Executive Secretary,Transportation Administration Date: 2/4/2016 1:29:20 PM Name: PattersonAmy Title: Division Director-IF, CPP &PM, Capital Project Planning,Impact Fees and Program Management Date: 2/10/2016 12:19:43 PM Name: KlatzkowJeff Title: County Attorney, Packet Page -960- 3/8/2016 16.F.1. Date: 2/11/2016 4:08:29 PM Name: IsacksonMark Title: Division Director-Corp Fin&Mgmt Svc, Office of Management&Budget Date: 2/23/2016 3:53:32 PM Name: CasalanguidaNick Title: Deputy County Manager, County Managers Office Date: 2/28/2016 3:23:48 PM Packet Page -961- 3/8/2016 16.F.1. ATTAtr,ivitN I H EOUIPMENT SECURITY AGREEMENT THIS EQUIPMENT SECURITY AGREEMENT--(hereinafter called the "Agreement"), made and entered into on this 1 day of te![.ei. 2010, by and between FINE & DANDY SERVICE, INC. d/b/a NAPKING, authorized to do business in the State of Florida, whose business address is 4344 Enterprise Avenue, Unit 6, Naples, Florida 34104, (hereinafter called the "Debtor") and BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, AS THE EX-OFFICIO GOVERNING BOARD OF THE COLLIER COUNTY WATER-SEWER DISTRICT, (hereinafter called the "Secured Party"). WITNESSETH: 1. Security Interest. Debtor grants to Secured Party a security interest ("Security Interest") in all equipment(as such term is defined by the Uniform Commercial Code as in effect in Florida) in which Debtor now has or hereafter acquires any right and the proceeds therefrom ("Collateral") presently including, but not limited to, the equipment listed on Exhibit A, attached hereto. The Security Interest shall secure the payment of Debtor's Wastewater Impact Fees and Allowance for Funds Prudently Invested Fee as described in the General Agreement and Intent and Customer Payment Agreement, attached hereto as Exhibit B and C, respectively, in the principal amount of Twenty Four Thousand Sixty-Eight and 76/100 Dollars($24,068.76) and the payment and performance of all other liabilities and obligations of Debtor to Secured Party (collectively with the"Customer Payment Agreement"called the"Obligations"). 2. Financing Statements and Other Action. Debtor agrees to do all acts which Secured Party deems necessary or desirable to protect the Security Interest or to otherwise carry out the provisions of this Agreement. 3. Debtor's Place of Business. Debtor warrants that: (a) Debtor's principal place of business is presently 4344 Enterprise Avenue, Unit 6,Naples, Florida 34104. (b) On or about December 1, 2010,Debtor's principal place of business will be 4573 Enterprise Avenue,Unit 6, Naples, Florida 34104. (c) The records concerning Debtor's accounts and contract rights are located at 4344 Enterprise Avenue, Unit 6,Naples, Florida 34104. (d) The record owner of the real estate on which the Collateral is located is Arnold & Arnold Investments, Inc.,whose principle address is 3073 S. Horseshoe Drive, Suite 118,Naples, Florida 34104. Page I of 6 Packet Page -962- 3/8/2016 16.F.1 . 10. Default. If, while any Obligations are outstanding and any one or more of the following events of default shall occur: (a) any representation made by Debtor is untrue or any warranty is not fulfilled; (b) Debtor fails to pay any amounts due under any of the Obligations when due and such failure continues for a period of fifteen (15) days; (c) the Debtor fails to observe or perform any covenant, warranty or agreement under; (i) this Agreement and such failure continues for a period of fifteen (15) days after Secured Party gives written notice of such failure to the Debtor; or (ii) under any other document executed by Debtor in connection with the Obligations and such failure shall not be remedied within the time permitted under such document. (d) Debtor shall be in default under any other obligation undertaken by Debtor which default has a material adverse effect on the financial condition of Debtor or on the value of the Collateral; (e) Debtor or any guarantor of the Obligations is involved in any financial difficulty as evidenced by: (i) an assignment, composition or similar device for the benefit of creditors;or (ii) inability to pay debts when due; or (iii) an attachment or receivership of assets not dissolved within thirty(30)days; or (iv) the filing by Debtor or any guarantor of a petition under any chapter of the Federal Bankruptcy Code or the institution of any other proceeding under any law relating to bankruptcy, bankruptcy reorganization, insolvency or relief of debtors; or (v) the filing against Debtor or any guarantor of an involuntary petition under any chapter of the Federal Bankruptcy Code or the institution of any other proceeding under any law relating to bankruptcy, bankruptcy reorganization, insolvency or relief of debtors where such petition or proceeding is not dismissed within thirty(30)days from the date on which it is filed or instituted, then in each such event Secured Party may declare Debtor in default and exercise the Rights on Default as hereinafter defined. Page 3of6 Packet Page -963- .410i 3/8/2016 16.F.1. 11. Rights on Default. In the event of a default under this Agreement, Secured Party may: (a) by written notice to Debtor declare the Obligations, or any of them, to be immediately due and payable without presentment, demand, protest or notice of any kind, all of which are hereby expressly waived by Debtor; and (b) exercise the rights and remedies accorded a secured party by the Uniform Commercial Code or by any document securing the Obligations; and (c) perform any warranty, covenant or agreement which the Debtor has failed to perform under this Agreement; and (d) take any other action which Secured Party deems necessary or desirable to protect the Collateral or the Security Interest. No course of dealing or delay in accelerating the Obligations or in taking or failing to take any other action with respect to any event of default shall affect Secured Party's right to take such action at a later time. No waiver as to any one default shall affect Secured Party's rights upon any other default. Secured Party may exercise any or all of its Rights on Default concurrently with or independently of and without regard to the provisions of any other document which secures an Obligation. After default, Debtor, upon demand by Secured Party, shall assemble the Collateral at Debtor's cost and make it available to Secured Party at a place to be designated by Secured Party. The requirement of the Uniform Commercial Code that the Secured Party give Debtor reasonable notice of any proposed sale or disposition of the Collateral shall be met if such notice is given to Debtor at least ten(I0)business days before the time of such sale or disposition. 12. Notices. Any notice under this Agreement shall be in writing and shall be deemed delivered if mailed,postage prepaid to a party at the principal place of business specified in this Agreement or such other address as may be specified by notice given after the date hereof. 13. Successors and Assigns. This Agreement shall inure to the benefit of and shall bind the heirs, executors, administrators, legal representatives, successors and assigns of the parties. The obligations of Debtor, if more than one, shall be joint and several. 14. Governing Law. This Agreement shall be governed by and construed under the laws of Florida. Page 4 of 6 Packet Page -964- 3/8/2016 16.F.1 . Od IN WITNESS WHEREOF, the DEBTOR and the SECURED PARTY have each, respectively, by an authorized person or agent, hereunder set their hands and seals on the date and year first abov: ' ritten. DEBTOR• Fine & Dandy Service, Inc, d/b/a NapKing ialgat.Pg4° Wi °`•' , By: 66,,,,,e‘.(4 1�l?Q/GC!. le-0 ENISE C. DENARD,DIRECTOR Print Name e -'Ra 0G�'o Wi ness Signature Cepe4a. CG.S\ n P t Name SECURED PARTY: . ,,,,,;: ATTEST: BOARD OF COUNTY COMMISSIOOERS OF DWIGHT E. BROCK, CLERK COLLIER COUNTY, FLORIDA;`;_,AS THE GOVERNING BODY OF COLLIER COUNTY AND EX-OFFICIO THE GOVERNING BOARD • � ��� , OF THE COLLIER COUNTY WAx g-SEWER W* , ,: c,,. DISTRICT W B . --4, .- ... By: - # +!f 'tom;°• ii.t uiy Clerk FRED W. COYLE, CHAIRM . N � 3 i ffigyrt..oa•r'1: I�' Approval for form and legal Sufficiency: Jenni er B. White Assistant County Attorney Page 5 of 6 Packet Page -965- 3/8/2016 16.F.1. EXHIBIT A LIST OF COLLATERAL Capital Equipment Description Make Model Serial Number Commercial Washer 1 WASCOMAT exsm665s 66280-0001036 Commercial Washer 2 WASCOMAT exsm665c1 66280-0000498 Commercial Washer 3 WASCOMAT exsm665c1 66280-0000760 Flatwork Finisher 1 Shariyer Finish Flatwork Finisher 9950x66 cmvl 7782rr Flatwork Finisher 2 Chicago Flatwork Finisher comet661y 155z91 Page 6 of 6 Packet Page-966- 3/8/2016 16.F.1 .- Debtor agrees to notify Secured Party of the addition or discontinuance of any place of business or any change in the information contained in this paragraph. 4. Location of Collateral. Debtor agrees that all of the Collateral shall be located at Debtor's place of business specified in this Agreement. None of the Collateral shall be removed from the locations specified in paragraph 3 other than in the ordinary course of business, 5. Encumbrances. Debtor warrants that Debtor has title to the Collateral. Debtor acknowledges that Provident Bank has filed two UCC Financing Statements in the Florida Secured Transaction Registry for a Sharperfinish Master 2000 folding machine and warrants that there are no other sums owed, claims, liens, security interests, or other encumbrances against the Collateral. Debtor agrees to notify Secured Party of any claim, lien, security interest, or other encumbrance made against the Collateral and shall defend the Collateral against any claim, lien, security interest,or other encumbrance adverse to Secured Party. 6. Maintenance of Collateral. Debtor shall preserve the Collateral for the benefit of Secured Party, Without limiting the generality of the foregoing, Debtor shall: (a) make all repairs,replacements, additions and improvements necessary to maintain any equipment in good working order and condition;and (b) pay all taxes, assessments, or other charges on the Collateral when due. Debtor shall not sell, lease or otherwise dispose of any item of the Collateral except with the prior written consent of the Secured Party and shall not use the Collateral in violation of any law. 7. Maintenance of Records. Debtor agrees to keep accurate and complete records listing and describing the Collateral. Secured Party shall have the right at any time to inspect the Collateral and to audit and make copies of any records or other writings which relate to the Collateral or the general financial condition of Debtor. 8. Insurance. Debtor shall maintain insurance covering the Collateral against such risks, with such insurers, in such form, and in such amounts as shall from time to time be reasonably required by Secured Party. All insurance policies shall be written so as to be payable to Secured Party in the event of loss and shall provide for ten (10) days' written notice to Secured Party of cancellation or modification. At the request of Secured Party, all insurance policies shall be furnished to and held by Secured Party. 9. Fixtures. It is the intention of Debtor and Secured Party that none of the Collateral shall become fixtures. Page 2 of Packet Page -967- 3/8/2016 16.F.1. CoATTACHMENT B 7e ' ou Public`Utililies Division Utility Billing & Customer Service CUSTOMER PAYMENT AGREEMENT ACCOUNT#: SITE ADDRESS: 4573 Enterprise Ave., Unit 6,Naples,Florida 34104 BILLING ADDRESS: 2271 Harbor Rd.,Naples,Florida 34104 OWNER NAME: Denise Denard or Michael Rhodes Beginning balance$24,068.76 Number of Months,for Pay Plan 120 Months I/We,Denise Denard or Michael Rhodes,agree to pay$ 200.57 dollars by the due date each Month. Signature: //41.1-ae ,7X1'4d- Home Phone#: — Work Phone#: ‘.2,3 T ✓(;,S,? 0 ?O d Cell Phone #: 3_` c — 0 g0 0 Prepared By: Donna Patterson Date: 10/14/10 Approved By: — cuww C\r i ` Date:__ ,\__ \.0 `��rrtt�� rarr,, lJiiftyMg&Customer Service Deparnent•4420 Mercantile Ave.•Nees Honda'34104.239-252-2350•'Water/Sewer Bil ling&Trash Collection 239-2522380 Packet Page-968- 3/8/2016 16.F.1 . , ATTACHMENT C Colk-r County PUBLIC UTILITIES 3301 Tamiami Trail E,Bldg.H,3rd f1 Ph.239.252.4215 Fax 239.252.6727 NAPLES,FL 34112 gilbertmoneivaiz@eolliergov.net General Agreement and Intent The purpose of this document is to outline the general agreement of terms discussed by the Collier County Waster-Sewer District(CCWSD)staff(Mr. Jim DeLony, Mr. Tom Wides, Mr. Gilbert Moncivaiz),Ms. Denise Denard(Applicant),and Michael Rhodes on October 12,2010. These terms will be entered into the Executive Summary presented to the Board on October 26, 2010. Due to the extraordinary and specific circumstances of the situation concerning permit number 2010070017, the Board authorized a one-time exception to the Consolidated Impact Fee Ordinance, Ordinance 2001-13, as amended. The Board directed the CCWSD to enter into a payment plan agreement with the Applicant for a wastewater impact fee and AFPI fee for permit 2010070017. The CCWSD and the Applicant have agreed to the following terms for this one-time exception: 1. The supporting documentation for permit 2010070017 will be revised or re-submitted to the Growth Management Division to reflect three commercial washing machines. 2. The wastewater impact fee of $20,970 and the AFPI fee of $3,098.76 (a total of $24,068.76) are based upon three commercial washing machines and the flows as listed in the Florida Administrative Code. 3. The payment plan will be interest free over a period of 10 years (requiring equal monthly payments). 4. A lien in the amount of $24,068.76 will be initiated against the business' capital equipment. Applicant's Signature: ,, 4yi(oeY Applicant's Printed Name: cl itJ 45 Date: f') / i3 07) Hand Delivered and Witnessed by Gilbert Moneivaiz, Impact Fee Coordinator, Public Utilities Division on October 15, 2010. 2 1614 /0 7.5/01, Packet Page -969 ATTAI 3/8/2016 16.F.1 . STATE OF FLORIDA UNIFORM COMMERCIAL CODE FLORIDA SECURED TRANSACTION REGISTRY FINANCING STATEMENT FORM FILED t A.NAME&DAYTIME PHONE NUMBER OF CONTACT PERSON 1 239-252-2553 • 2011 Jail 31 08:00 AM B.SEND ACKNOWLEDGEMENT TO: ****** 201103973604 ****** Name Thomas G.Wides, Operations Director Address Collier County Public Utilities Address 3339 Tamiami Trail E., Suite 305 . cirylState/Zip Naples, Florida 34112 I. DEBTOR'S EXACT FULL LEGAL NAME—INSERT ONLY ONE DEBTOR NAME(la OR Ib)—Do Not Abbreviate or Combine Names I ORGANIZATION'S NAME Fine& Dandy Service, Inc.,d/b/a NapKing Lb INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME SUFFIX Denard Denise C. I.c MAILING ADDRESS Line One This space not available. 1 4573 Enterprise Avenue, Unit 6 MAILING ADDRESS Line Two CI Yles FATE ' PPOOST�A4L CODE ' CO Y I.d TAX ID# REGUIREo ADD'L INFO — I.e TYPE OF ORGANIZATION IS JURISDICTION OF ORGANIZATION I.g ORGANIZATIONAL ID# ssn 159-549739 RE:ORGANIZATION DEBTOR Linen Supply Service Collier County DONE 2. ADDITIONAL DEBTOR'S EXACT FULL LEGAL NAME—INSERT ONLY ONE DEBTOR NAME(2a OR 21)—Do Not Abbreviate or Combine Names 2.a ORGANIZATION'S NAME Fine& Dandy Service, Inc.,d/b/a NapKing 2.b INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME SUFFIX Rhodes Michael P. 2.c MAILING ADDRESS Line One This space not available. 4573 Enterprise Avenue, Unit 6 MAILING ADDRESS Line Two CI l� POSTAL CODE COUNTRY �34 2.d TAX ID# REQUIRED ADD'L INFO 2.e TYPE OF ORGANIZATION 2.f JURISDICTION OF ORGANIZATION 2.g ORGANIZATION L IDfi ssn 593-07-0144 RE ORGANIZATION DEBTOR Linen Supply Service Collier County ONE , 3. SECURED PARTY'S NAME (or NAME of TOTAL ASSIGNEE of ASSIGNOR SIP)—INSERT ONLY ONE SECURED PARTY(3a OR3b)_ 3.a ORGANIZATION'S NAME Collier County Board of County Commissioners, as the Ex-Officio Governing Board of the Collier County Water-Sewer District 3.b INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME - SUFFIX c MAILING ADD SS Litye One This space not available. Collier County Public Utilities 336NG pDDR S 1 tTw�uite 305 1ITY ' STATE POSTAL CODE ' COUNTRY amtaml ral aples FL 134112 US . 1 4.This FINANCING STATEMENT covers the following collateral: Capital Equipment Description Make Model Serial Number Commercial Washer 1 WASCOMAT exsm665s 66280-0001036 Commercial Washer 2 WASCOMAT exsm665c1 66280-0000498 Commercial Washer 3 WASCOMAT exsm665c1 66280-0000760 Flatwork Finisher 1 Sharper Finish Flatwork Finisher 9950x66 cmv17782rr Flatwork Finisher 2 Chicago Flatwork Finisher comet66ly 155z91 5.ALTERNATE DESIGNATION(if applicable) t1 LESSEE/LESSOR CONSIGNEE/CONSIGNOR' BAILEE/BAILOR AG.LIEN NON-UCC FILING SELLER/BUYER 6.Florida DOCUMENTARY STAMP TAX—YOU ARE REQUIRED TO CHECK EXACTLY ONE BOX tjAll documentary stamps due and payable or to become due and payable pursuant to s.201.22 F.S.,have been paid, 0 Florida Documentary Stamp Tax is not required. 7.OPTIONAL FILER REFERENCE DATA • STANDARD FORM-FORM UCC-I (REV.OI/2009) Filing Office Copy Approved by the Secretary of State,State of Florida it Packet Page-970- , Au 3/8/2016 16.F.1 . Denise Denard 2271 Harbor Road Naples, fl 34104 September, 14th 2015 GilbertMoncivaiz Impact Coordinator 2800 N Horseshoe Drive Naples, Fl 34104 Dear Gilbert, As per our conversation: On April 30th 2015 we have officially closed Fine & Dandy Service( DBA Napking). We had to liquidate all of our assets in order to pay off our creditors and are no longer in possession of equipment and materials that would sustain this operation. We have vacated the premises at 4573 Enterprise Ave and are no longer creating an impact. Please feel free to contact us if you have any further questions. I Sincerely, Michael Rhodes and Denise Denard < ,P r lb 1 / , ie...47a,„66/ Packet Page-971-