Agenda 07/09/2019 Item #11B (PBSD Sidewalk & Stormwater Maintenance)07/09/2019
EXECUTIVE SUMMARY
Recommendation to authorize a capital contribution of $500,000 per year for a period of ten years
to replace and transfer maintenance of sidewalks, and certain drainage outfalls to the Pelican Bay
Services Division in perpetuity.
OBJECTIVE: To authorize Pelican Bay Services Division (“PBSD”) to assume responsibilities for
the replacement of existing county sidewalks and stormwater maintenance within Pelican Bay with a
finite County capital contribution for construction and maintenance.
CONSIDERATIONS: The Pelican Bay Services Division (“PBSD”) Municipal Service Taxing and
Benefit Unit (“MSTBU”) of Collier County, Florida was established by Collier County Ordinance
2002- 27, as amended, for the purpose of providing street lighting, water management, beach
renourishment, ambient noise management, extraordinary law enforcement service and beautification,
including but not limited to beautification of recreation facilities, sidewalk, street and median areas,
identification markers, the maintenance of conservation or preserve areas including the restoration of
the mangrove forest preserve and to finance the landscaping beautification of only that portion of U.S.
41 from Pine Ridge Road to Vanderbilt Beach Road.
Historically, Collier County Road and Bridge Maintenance Division has maintained the asphalt
sidewalks in Pelican Bay. Due to aging infrastructure and tree roots intrusions, the existing sidewalks
that were originally built in the early 1980’s have reached the end of their service life and can no longer
be repaired adequately to the desired standards of the community. The current budget is insufficient to
replace the existing asphalt sidewalks with concrete sidewalks as desired by the Pelican Bay
community. An engineering analysis of probable cost for concrete sidewalk replacement in Pelican
Bay is approximately $6 million dollars.
Additionally, the County prepared an inventory of Pelican Bay roadway or public drainage facilities
and easements and identified 86,055 linear feet of pipes and culverts throughout the Pelican Bay
community. Of this piping, approximately 51,630 linear feet is owned and maintained by the County,
and 34,425 linear feet is owned by Pelican Bay. PBSD and other County staff identified 7,696 linear
feet of pipe that exists outside of the right of way that will be assumed by PBSD maintenance to avoid
conflicts with community property. The portion of the drainage system being transferred over to PBSD
is in fair condition and will be rehabilitated systematically over the coming years.
In anticipation of obtaining long-term financing for a Capital sidewalk replacement project and
assumption of drainage outfalls defined in this agreement, the project as currently conceived would
be implemented in three phases to be constructed over three fiscal years beginning in Fiscal Year
2020.
This proposal provides Pelican Bay the certainty they desire in achieving the level of service the
community expects with respect to sidewalks. It also allows the PBSD to handle encroachments in the
drainage easements between homes with a higher level of discretion than the County allows. The
transfer of assets will be memorialized in current and future budget documents by reference to the
attached resolution. This item was presented to the PBSD Board on May 8, 2019 and was approved
unanimously.
The Director of Corporate Finance and Management Services provided loan options for up to $20 million
to be paid back by way of debt service. Collier County would contribute $500,000 per year over the
amortized life of the debt, not to exceed 10 years. Collier County would also contribute an additional
$20,000 per year in perpetuity to be utilized for maintenance or enhancements to make the sidewalks
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compliant with ADA standards and to reduce liability. The proposed loan option for up to $20 million
would provide funding for the sidewalk and drainage system improvements outlined herein and would
also provide funding for other capital improvement projects being planned in the community, including
lake bank erosion control improvements throughout the community and the expansion and renovation of
the PBSD maintenance and operation facility.
FISCAL IMPACT: This asset exchange proposal is predicated on the Pelican Bay Services Division
(PBSD) receiving from the County over a ten (10) year period $500,000 annually which would be
budgeted as a transfer from the Unincorporated Area General Fund (111). A second important component
of this asset exchange is providing the PBSD with authorization to proceed with financing up to
$20,000,000 with proceeds to be used to replace, rehabilitate and construct new infrastructure described
in this executive summary.
Preliminary discussions on a plan of finance has occurred with the County’s bond counsel, the County’s
financial advisor and the County Attorney along with members of the County’s Finance Committee. Final
discussions would occur after receiving Board direction. Based on discussions to date, the preferred
financing structure would contain the following components;
• Competitively solicited bank loan
• Amortization ranging from seven (7) to ten (10) years
• Provision for periodic draws based upon funding requirements and timing
• Stand-alone PBSD credit with no County backstop provision in loan agreement (like CRA
debt)
• Assessment revenue pledged as repayment source
• PBSD credit profile positive given history of assessment collections at 96% plus
• No PBSD referendum required when pledge is assessment revenue
This preliminary financing profile was discussed with members of the PBSD Board and received positive
consideration. Preliminary calculations on this financing is shown as an attachment to this executive
summary.
GROWTH MANAGEMENT IMPACT: This item complies with the Collier County Growth
Management Plan.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved as to
form and legality, and requires a majority vote for Board action. -JAK
RECOMMENDATION: That the Board of County Commissioners authorize a capital contribution of
$500,000 a year for a period of ten years to replace and transfer maintenance of sidewalks, and certain
drainage outfalls to the Pelican Bay Services Division in perpetuity.
Prepared by: Lisa Jacob, Interim Operations Manager, Pelican Bay Services Division
ATTACHMENT(S)
1. Resolution PBSD Sidewalks and Stormwater (PDF)
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2. Preliminary Financing Calculations (PDF)
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COLLIER COUNTY
Board of County Commissioners
Item Number: 11.B
Doc ID: 9134
Item Summary: Recommendation to authorize a capital contribution of $500,000 per year for a
period of ten years to replace and transfer maintenance of sidewalks, and certain drainage outfalls to the
Pelican Bay Services Division in perpetuity. (Sean Callahan, Corporate Business Operations Executive
Director and Mark Isackson, Corporate Financial and Management Services Division Director)
Meeting Date: 07/09/2019
Prepared by:
Title: Project Manager, Associate – Pelican Bay Services
Name: Lisa Jacob
05/28/2019 9:48 AM
Submitted by:
Title: Project Manager, Associate – Pelican Bay Services
Name: Lisa Jacob
05/28/2019 9:48 AM
Approved By:
Review:
County Manager's Office Sean Callahan Executive Director - Corp Bus Ops Completed 06/14/2019 12:15 PM
Office of Management and Budget Laura Wells Level 3 OMB Gatekeeper Review Completed 06/14/2019 2:47 PM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 06/14/2019 4:40 PM
Budget and Management Office Mark Isackson Additional Reviewer Completed 06/27/2019 11:23 AM
County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 06/28/2019 8:00 AM
Board of County Commissioners MaryJo Brock Meeting Pending 07/09/2019 9:00 AM
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11.B.1
Packet Pg. 75 Attachment: Resolution PBSD Sidewalks and Stormwater (9134 : PBSD Sidewalks and Stormwater)
11.B.2
Packet Pg. 76 Attachment: Preliminary Financing Calculations (9134 : PBSD Sidewalks and Stormwater)