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Agenda 06/26/2018 Item #9A06/26/2018 EXECUTIVE SUMMARY Recommendation to adopt an Ordinance which would create the unpaved private road emergency repair municipal service taxing unit by authorizing a levy of not to exceed one (1.0000) 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 Area 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 passable to emergency services vehicles to protect the public health, safety, and welfare in certain emergencies, including fires, hurricanes, and floods. Currently, there is insufficient funding 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, safety 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 solely 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. At its June 12, 2018 regular meeting, the Board authorized the County Attorney to advertise the proposed ordinance for future consideration. FISCAL IMPACT: If approved, 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 specific cost center; and (2) a mechanism to establish the budget based upon certified taxable value and applied millage rate not to exceed 1.0000 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. 9.A Packet Pg. 39 06/26/2018 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 adopts the proposed ordinance which would create the unpaved private road emergency repair Municipal Service T axing Unit (MSTU). Prepared by: Commissioner William L. McDaniel, Jr., District 5 ATTACHMENT(S) 1. Proposed Ordinance - Private Road MSTU (PDF) 2. Legal ad - Agenda ID 5940 (PDF) 9.A Packet Pg. 40 06/26/2018 COLLIER COUNTY Board of County Commissioners Item Number: 9.A Doc ID: 5940 Item Summary: ***This item to be heard at 9:15 a.m.*** Recommendation to adopt 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. Meeting Date: 06/26/2018 Prepared by: Title: Legal Assistant/Paralegal – County Attorney's Office Name: Virginia Neet 06/13/2018 10:13 AM Submitted by: Title: County Attorney – County Attorney's Office Name: Jeffrey A. Klatzkow 06/13/2018 10:13 AM Approved By: Review: County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 06/13/2018 11:24 AM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 06/14/2018 8:35 AM Office of Management and Budget Allison Kearns Additional Reviewer Completed 06/15/2018 10:41 AM County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 06/15/2018 3:50 PM Board of County Commissioners MaryJo Brock Meeting Pending 06/26/2018 9:00 AM 9.A Packet Pg. 41 9.A.1 Packet Pg. 42 Attachment: Proposed Ordinance - Private Road MSTU (5940 : Adoption of Private Road MSTU Ordinance) 9.A.1 Packet Pg. 43 Attachment: Proposed Ordinance - Private Road MSTU (5940 : Adoption of Private Road MSTU Ordinance) 9.A.1 Packet Pg. 44 Attachment: Proposed Ordinance - Private Road MSTU (5940 : Adoption of Private Road MSTU Ordinance) 9.A.2 Packet Pg. 45 Attachment: Legal ad - Agenda ID 5940 (5940 : Adoption of Private Road MSTU Ordinance)