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Agenda 06/12/2018 Item #10A06/12/2018 EXECUTIVE SUMMARY Recommendation to direct the County Attorney to advertise and bring back for a Public Hearing an Ordinance which would create the unpaved private road emergency repair municipal service taxing unit by authorizing a levy of not to exceed one (1) mil of ad valorem taxes per year. ______________________________________________________________________________ OBJECTIVE: To protect the health, safety, and welfare of citizens that have unpaved, private road access and egress. CONSIDERATION: Many roads in the unincorporated portion of Collier County are unpaved, private roads not maintained by the County which may become impassable if not maintained. It is imperative that all roads in the County are passible to emergency services vehicles to protect the public health, safety, and welfare in certain emergencies, including fires, hurricanes, and floods. Currently, there is no ready available funding source to pay for reactive and proactive repairs when an emergency vehicle cannot access private roads deemed impassable or when a private road is imminently expected to fail. The creation of a municipal service taxing unit is the best method to provide funding to enable the County to make emergency repairs to private roads upon the notification by the local fire district or the Collier County Sheriff’s Office that the road is, or soon will be, impassable. The proposed Ordinance seeks to strike a balance with the Board’s obligations to safeguard the health, safet y and welfare of the citizens of Collier County, with its duty to respect the Constitutional private property rights of owners of private roads, and the prohibition of public expenditures for a private purpose. With the establishment of a Municipal Service Taxing Unit (MSTU) as a funding source, the cost utilized to repair the private roads will be ultimately borne solel y by the residents serviced by the private road, the County Attorney has opined that the proposed procedure is legally sound. There are approximately 105 miles of unpaved private roads with public access within Collier County with adjoining properties with an estimated taxable value of $290,000,000. At an average cost of $9,000 per mile for limerock road repairs, the estimated revenues may cover repairs on approximately 32 miles of unpaved roads. To acknowledge that some unpaved roads may be in good condition and under continuous maintenance by the property owners utilizing the road, the proposed ordinance establishes an opt-out provision for roads that are not likely to require maintenance within a five-year period. To opt out, the property owner must show that the road is passable and that there is a sustainable maintenance plan in place by the property owner or owners on that road. If at a point in the future the road becomes impassable to emergency vehicles and emergency maintenance is required by the County, those previously opted-out homes shall become subjected to the tax levied herein beginning the next fiscal year and continuing the following years. 10.A Packet Pg. 96 06/12/2018 FISCAL IMPACT: Estimated cost of advertising is $350. If approved at a future Board meeting, this MSTU Ordinance will set in motion a series of fiscal steps including: (1) creation of the unpaved private road Municipal Service Taxing Unit (MSTU) Fund and related Cost Center; and (2) a mechanism to establish the budget based upon certified taxable value and applied millage rate not to exceed 1 mil per year. Based upon a projected taxable value equal to $290,000,000 the taxes would raise approximately $290,000 per year. The effect of the proposed MSTU, including the tax levy implications, will not be realized until the 2019 tax year (FY 2020). This assumes that the enabling ordinance and related filings will be completed prior to December 31, 2018. GROWTH MANAGEMENT IMPACT: There is no Growth Management impact associated with this Executive Summary. 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: That the Board of County Commissioners directs the County Attorney to advertise, and bring back for a Public Hearing, an ordinance which would create the unpaved private road emergency repair Municipal Service Taxing Unit (MSTU). Prepared by: Commissioner William L. McDaniel, Jr., District 5 ATTACHMENT(S) 1. Unpaved _Road_MSTU_Ordinance_2018 (002) (DOCX) 10.A Packet Pg. 97 06/12/2018 COLLIER COUNTY Board of County Commissioners Item Number: 10.A Doc ID: 5892 Item Summary: Recommendation to direct the County Attorney to advertise and bring back for a Public Hearing an Ordinance which would create the unpaved private road emergency repair municipal service taxing unit by authorizing a levy of not to exceed one (1) mil of ad valorem taxes per year. (Commissioner McDaniel) Meeting Date: 06/12/2018 Prepared by: Title: Executive Secretary to County Manager – County Manager's Office Name: MaryJo Brock 06/06/2018 2:10 PM Submitted by: Title: County Manager – County Manager's Office Name: Leo E. Ochs 06/06/2018 2:10 PM Approved By: Review: Office of Management and Budget MaryJo Brock Level 3 OMB Gatekeeper Review Skipped 06/06/2018 11:20 AM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 06/06/2018 3:10 PM County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 06/06/2018 3:29 PM Board of County Commissioners MaryJo Brock Meeting Pending 06/12/2018 9:00 AM 10.A Packet Pg. 98 Page 1 of 3 ORDINANCE NO. 2017-_____ AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, CREATING THE PRIVATE ROAD EMERGENCY REPAIR MUNICIPAL SERVICE TAXING UNIT; PROVIDING FOR THE BOARD OF COUNTY COMMISSIONERS TO BE THE UNIT’S GOVERNING BODY; PROVIDING FUNDING AND THE LEVY OF NOT TO EXCEED ONE (1) MIL OF AD VALOREM TAXES PER YEAR; PROVIDING FOR THE COLLECTION OF TAXES; PROVIDING FOR AN OPT-OUT MECHANISM; PROVIDING FOR DUTIES OF THE COUNTY MANAGER; PROVIDING FOR CONFLICT AND SEVERABILITY; PROVIDING FOR INCLUSION IN THE COLLIER COUNTY CODE OF LAWS AND ORDINANCES; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, many roads in the unincorporated portion of Collier County are unpaved, private roads not maintained by the County, which may become impassable if not maintained; and WHEREAS, it is imperative that all roads in the County are passable to emergency services vehicles to protect the public health, safety, and welfare in certain emergencies, including fires, hurricanes and floods; and WHEREAS, there is currently no mechanism or funding source to pay for emergency repairs when an emergency vehicle cannot access private roads deemed impassable; and WHEREAS, the Board of County Commissioners has determined that the creation of a municipal service taxing unit is the best method to provide funding to enable the County to make emergency repairs to private roads upon the notification by the local fire district or the Collier County Sheriff’s Office. NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that: SECTION ONE: Authority. This Ordinance is adopted pursuant to the provisions of Section 125.01 and Chapter 200, Florida Statutes, and other applicable provisions of law. SECTION TWO: Creation of the Municipal Service Taxing Unit. There is hereby created and established the Private Road Emergency Repair Municipal Service Taxing Unit, hereinafter referred to as the “MSTU.” The property subject to the MSTU shall be all properties adjacent to and/or takes access from an unpaved, private road in unincorporated Collier County. 10.A.1 Packet Pg. 99 Attachment: Unpaved _Road_MSTU_Ordinance_2018 (002) (5892 : MSTU Ad Valorem Taxes) Page 2 of 3 SECTION THREE: Purpose and Governing Body. The MSTU is created for the purpose of providing emergency repairs to unpaved, private roads in Collier County where the County is notified by a local fire district or the Collier County Sheriff’s Office that such roads are, or soon will be, impassable to emergency vehicles and such disrepair is a danger to the health, safety, and welfare to the citizens of Collier County. The roads shall be repaired only to the extent that they are made passable to emergency vehicles. Such repair does not designate an ownership interest in the road by the County. The governing body of the MSTU shall be the Board of County Commissioners of Collier County, Florida. SECTION FOUR: Funding and Levy of Taxes. For the purpose of implementing this Ordinance, the Board of County Commissioners shall annually, at the time required by general budgetary law, make an itemized estimate of the amount of money required to carry out the business of the MSTU for the next fiscal year, which shall be from October 1 to and including the following September 30. The estimate shall describe the purpose for which the monies are required and the amount necessary to be raised by taxation within the MSTU. At the time and place for fixing the annual rate of taxation for County purposes, the Board of County Commissioners shall fix and cause to be levied on all properties within the MSTU, subject to taxation, a millage rate not to exceed one (1) mil per year. SECTION FIVE: Tax Assessment and Collection. Taxes herein provided for shall be assessed and collected in the same manner and form as provided for the assessment and collection of general County taxes and subject to the same fees for assessing and collecting as general County taxes. SECTION SIX: Opting Out. Upon application to the County Manager or his Designee, the property owners abutting and/or takes access from an unpaved road may opt out of the tax levied herein upon a finding by the County Manager that the road is not likely to require maintenance within the next five fiscal years. In order to opt out, the property owner must show that the road is passable and that there is a sustainable maintenance plan in place by the property owner or owners on that road. If at a point in the future the road becomes impassable to emergency vehicles and emergency maintenance is required by the County, as determined by the County Manager or his Designee, those previously opted-out homes shall become subjected to the tax levied herein beginning the next fiscal year and continuing the following years. SECTION SEVEN: Duties of the County Manager or Designee. The duties of the County Manager or designee are as follows: 10.A.1 Packet Pg. 100 Attachment: Unpaved _Road_MSTU_Ordinance_2018 (002) (5892 : MSTU Ad Valorem Taxes) Page 3 of 3 1. To aid and assist the Board in carrying out the purposes of the MSTU in accordance with established practices and policies of the Board of County Commissioners and as set forth in this Ordinance; 2. To prepare and recommend to the Board an itemized annual budget of the amount of money required to carry out the business of the MSTU for the next fiscal year; 3. To provide periodic written reports to the Board of the activities of the MSTU and its finances in accordance with established guidelines of the Board; and 4. To administer the opt-out provisions in Section Six herein. SECTION EIGHT: Conflict and Severability. In the event this Ordinance conflicts with any other Ordinance of Collier County or other applicable law, the more restrictive shall apply. If any court of competent jurisdiction holds any phrase or portion of this Ordinance invalid or unconstitutional, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portion. SECTION NINE: Inclusion in the Code of Laws and Ordinances. The provisions of this Ordinance shall become and be made a part of the Code of Laws and Ordinances of Collier County, Florida. The sections of the Ordinance ma y be renumbered or re- lettered to accomplish such, and the word “ordinance” may be changed to “section,” “article,” or any other appropriate word. SECTION TEN: Effective Date. This Ordinance shall be effective upon filing with the Florida Department of State. PASSED AND DULY ADOPTED by the Board of County Commissioners of Collier County, Florida, this ______ day of ________________, 2018. ATTEST: BOARD OF COUNTY COMMISSIONERS DWIGHT E. BROCK, Clerk COLLIER COUNTY, FLORIDA By: ___________________________ By: _____________________________ , Deputy Clerk Andy Solis, Chairman Approved as to form and legality: _______________________________ Jeffrey A. Klatzkow, County Attorney 10.A.1 Packet Pg. 101 Attachment: Unpaved _Road_MSTU_Ordinance_2018 (002) (5892 : MSTU Ad Valorem Taxes)