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Agenda 11/13/2012 Item #11B11/13/2012 Item 11.13. EXECUTIVE SUMMARY Recommendation to consider the use of federal payment in lieu of tax (PILT) dollars and ad valorem tax revenue to construct approximately $600,000 in improvements to Ochopee Fire Control District Station 61 located at the Port of the Islands. OBJECTIVE: Identify the funding sources to construct improvements to Ochopee Fire Control District Station 61 at Port of the Islands. CONSIDERATIONS: In September of 2009, Station 61 was activated through occupancy of a portion of a hotel located at Port of the Islands. Fire district personnel currently occupy two rooms equivalent to 517 square feet and the hotel facility was built in 1964. The station's compliment consists of one engine and two employees. Station 61 is one of three active stations located within the Ochopee Fire Control District. A fourth station may be located along Alligator Alley pursuant to State Legislation earmarking certain toll revenue for capital construction of the facility. Station 61 serves an area that stretches from State Road 92 to Wayside Park on Route 41. The area along Route 41 encompasses about 12 miles and this station serves the entire MSTU district when main station personnel are deployed on a call. The structure planned for renovation is owned by the County and consists of approximately 7,000 square feet. Parks and Recreation utilizes about 3,300 square feet for a marina office and store with the remaining 3,700 square feet planned for conversion and renovation for use as functioning Station. Attached for review is a preliminary project budget for the renovation as well as a floor plan of the proposed station. The project all in is estimated at $600,000. It should be noted that staff has exhausted all known opportunities to fund this project with grant dollars. As documented during the FY 2013 budget workshop, taxable value within the Ochopee Fire Control District has decreased 36% since the peak of $481 M in FY 2008. With the district at its millage cap of $4.0000 per $1,000 of taxable value, property tax revenue has steadily declined and the district's beginning cash balance has eroded 81% since FY 2008 down to $165,200 at September 30, 2011. To insure that minimum service levels are maintained a portion of federal PILT dollars have been transferred from the General Fund (00 1) during FY 2012 and FY 2013 in the amount of $434,600 and $431,700 respectively. The following table illustrates the economic landscape within the District since fiscal year 2002. Packet Page -342- 11/13/2012 Item 11.13. Ochopee Fire Control District Economic Landscape General Fund Ochopee Ochopee Ochopee Ochopee Ochopee Ochopee Budget Fiscal Year PILT Deposit PILT Transfer Transfer % Millage Rate Taxable Value Beginning FY Cash Bal. Approved Budget FTE's %of TV FY 2002 $619,491 $379,600 61.28% 4.0000 $178,690,994 $1,226,400 13 0.69% FY 2003 $707,541 $186,500 26.36% 4.0000 $201,009,864 $281,600 $1,247,100 14 0.62% FY 2004 $727,453 $242,800 33.38% 4.0000 $237,334,735 $222,500 $1,384,100 14 0.58% FY 2005 $738,570 $270,600 36.64% 4.0000 1 $262,065,694 $372,800 $1,509,600 14 0.58% FY 2006 $745,818 $0 0.00% 4.0000 $330,578,075 $573,700 $1,790,800 14 0.54% FY 2007 $741,280 $0 0.00% 4.0000 $445,131,839 $468,000 $2,316,700 15 0.52% FY 2008 $731,350 $0 0.00% 4.0000 $483,320,005 $788,000 $2,540,200 15 0.53% FY 2009 $1,644,592 $0 0.00% 4.0000 $481,166,372 $849,300 $2,837,800 15 0.59% FY 2010 $1,229,064 $0 0.00% 4.0000 1 $420,740,913 $511,300 $2,231,300 15 0.53% FY 2011 $1,240,307 $0 0.00% 4.0000 $330,220,388 $485,500 $1,867,100 15 0.57% FY 2012 $1,266,939 $434,600 34.30% 4.0000 $311,317,899 $165,200 $1,782,200 15 0.57% FY 2013 Budget $700,000 1 $431,700 61.67% 4.0000 $309,885,646 $111,700 $1,804,200 15 0.58% This MSTU does not have sufficient cash reserves or flexible millage capacity to fund a $600,000 station renovation project. Funding the desired project given the current financial outlook within the MSTU would require one or more of the following; One time increased transfer from the General Fund in an amount which reflects the full budget allocation of federal PILT dollars or such greater amount sufficient to fund the project. Amendment to the MSTU ordinance increasing the millage rate for a specific duration in a specific amount required to fund all or part of the planned renovation costs. Taken in context, the above revenue generating options could be used to raise sufficient dollars in a single year to fund the project or over multiple years as part of a fund advance or loan repayment strategy. If Board direction was to pursue a small bank loan similar to the recent approach taken within the Radio Road MSTU, a MSTU referendum would be required which would authorize the use of ad valorem dollars to pay the debt service. However, if the Board were to conclude that it is more appropriate to generate the dollars within a shorter duration through a General Fund subsidy or interest free advance, a referendum would not be necessary. The table below summaries the most practical options connected with funding the proposed renovations through this MSTU. Packet Page -343- 11 /13/2012 Item 11.13. FISCAL IMPACT: Funding Option Financial Impact Advantage Disadvantage 1. One time FY 2013 Would require up to a Provides the MSTU Fear of the unknown. General Fund subsidy $600,000 budget with a quick and Any reduction in in an amount up to amendment from readily accessible General Fund reserves $600,000., General Fund reserves funding source with given the County's but the impact upon no obligation for heavy reliance upon beginning FY 2014 payback allowing the property tax, cash could be project to proceed in competing need for mitigated by excess an expeditious capital and equipment turn -back over manner. replacement, regular forecast in FY 2013. threat from State This of course property tax limiting assumes GF revenue legislation and exceeds budget and continued economic prudent expense side concerns must be management occurs. measured and prudent. 2. Advance up to Re- payment of all MSTU gains access to The General Fund $600,000 from the advance funds to the funds during FY 2013 becomes the bank General Fund interest General Fund over a allowing the project which is certainly free during FY 2013 period of not more to proceed and the convenient for the with repayment over than five (5) years. General Fund receives MSTU but paves the time as determined by $1.0000 mill increase a payback of way for other requests the Board and the raises $310,000 and advanced dollars over under the "past MSTU's ability to allows for a two year a period of not more practice" argument. pay. payback window. than five (5) years. MSTU millage rate $.5000 mill increase increase by ordinance raises $155,000 and to allow for inter -fund allows for a 4 year advance repayment. payback window. 3. Provide a General This hybrid approach Reduces the subsidy The General Fund Fund subsidy to the minimizes the General impact to the General becomes the bank MSTU in the amount Fund subsidy and Fund and provides the which is certainly of $268,300 which provides for re- MSTU with readily convenient for the represents the payment of advance accessible funding. MSTU but paves the remaining FY 2013 funds over a period of way for other requests federal PILT revenue not more than five (5) under the "past budget and advance years. Increasing the practice" argument. from the General millage by .5000 MSTU millage rate Fund the remaining would likely repay the increase by ordinance amount up to advance over two to re -pay the GF. $331,700. years. 4. No General Fund Self contained impact No General Fund Looking at a two year subsidy or advance. to the MSTU. $1.0000 impact. delay in the project Instead, increase the mill increase per allowing sufficient MSTU millage over a $1,000 of TV would time to generate limited time period generate $310,000 at revenue from the sufficient to raise the the current taxable millage increase. dollars over two years value. Packet Page -344- 11/13/2012 Item 11.13. Funding Option Financial Impact Advantage Disadvantage 5. Pursue a MSTU Would require a No General Fund Would require a bank loan to finance millage rate increase impact. Project is referendum within the the project. to pay back the debt. fully vetted within the MSTU with no Some minor cost of District. guarantee of approval. issuance would be Project start most incurred. Iikely delayed until FY 2015 assuming a successful referendum. GROWTH MANAGEMENT IMPACT: None LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney. No legal issues are raised at this time. The County Attorney will work with staff to implement Board direction, if any. -JAK RECOMMENDATION: Recommendation that the Board direct the County Manager or his designee and the County Attorney's office to proceed with funding for the project under option 3; that the necessary MSTU ordinance amendment be prepared and brought back to the Board for ratification; and that all necessary budget amendments be approved. Prepared by: Mark Isackson, Director of Corporate Finance and Management Services, County Manager's Office Packet Page -345- 11 /13/2012 Item 11.13. COLLIER COUNTY Board of County Commissioners Item Number: 11.B. Item Summary: Recommendation that the Board of County Commissioners consider the use of federal payment in lieu of tax (PILT) dollars and ad valorem tax revenue to construct approximately $600,000 in improvements to Ochopee Fire Control District Station 61 located at the Port of the Islands. (Mark Isackson, Director of Corporate Finance and Management Services) Meeting Date: 11/13/2012 Prepared By Name: BrockMaryJo Title: Executive Secretary to County Manager, CMO 11/5/2012 4:51:38 PM Submitted by Title: Executive Secretary to County Manager, CMO Name: BrockMaryJo 11/5/2012 4:51:39 PM Approved By Name: PriceLen Title: Administrator, Administrative Services Date: 11/5/2012 5:28:07 PM Name: IsacksonMark Title: Director -Corp Financial and Mgmt Svs,CMO Date: 11/6/2012 2:05:42 PM Name: IsacksonMark Title: Director -Corp Financial and Mgmt Svs,CMO Date: 11/6/2012 2:53:14 PM Packet Page -346- 11/13/2012 Item 11.13. BUDGET FOR PORT OF THE ISLANDS PUBLIC SAFETY BLDG. "OCHOPEE FIRE DISTRICT STATION #61" Total Existing Structure at Port of the Islands 6,971 sq.ft. Marina Office and Store 3,289 sq.ft. This Renovation Project to Station #61 3,682 sq.ft. Site Work $ .90,791 Structural $ 32,917 Architectural- doors, windows, insulation, etc $ 94,729 Plumbing % Fire Protection $ 71,748 HVAC $ 36,500 Electrical $ 131,270 Gen Conditions, Insurance & Bonds $ 37,376 Sub Total General Contractor $ 495,331 $135 per sq.ft. Fees & Permits By Owner $ 46,000 Commissioning /FFE (allowance estimate) $ 8,000 Sub Total for Project $ 549,331 Contingency for unknowns 8% $ 49,669 Total Projected Project Budget $ 699,000 $163 per sq.ft. Packet Page -347- a 1 CA) \ N O N r+ CD 3 4 $ � d a � jZ _L o - C cz d B E w CL 2 E 0 o C o `w LL O ® L) 00 ru LL � 1 CA) \ N O N r+ CD 3 11/13/2012 Item 11.13. PART I - CODE Chapter 122 - SPECIAL DISTRICTS ARTICLE VIII. - OCHOPEE FIRE CONTROL DISTRICT ARTICLE VIII. - OCHOPEE FIRE CONTROL DISTRICT Sec. 122 -226. - Creation. Sec. 122 -227. - Governing board powers and duties Sec. 122 -228. - Prerequisite to tax levy. Sec. 122 -229. - Advisory board. Sec. 122 -230. - Construction of article Secs. 122 - 231 -122 -250. - Reserved. Sec. 122 -226. - Creation. (a) The Ochopee Fire District is hereby created. It is hereby declared to be the intent of this article to confirm creation of this district as a municipal service taxing unit pursuant to F.S. § 125.01(1)(q). (b) The district boundaries shall include: All of Township 50 South, Range 34 East; Township 51 South, Range 34 East; Township 52 South, Range 34 East; Township 53 South, Range 34 East; Township 50 South, Range 33 East; Township 51 South, Range 33 East; Township 52 South, Range 33 East; Township 53 South, Range 33 East; Township 50 South, Range 32 East; Township 51 South, Range 32 East; Township 52 South, Range 32 East; Township 53 South, Range 32 East; Township 50 South, Range 31 East; Township 51 South, Range 31 East; Township 52 South, Range 31 East; Township 53 South, Range 31 East; Township 50 South, Range 30 East; Township 51 South, Range 30 East; Township 52 South, Range 30 East; Sections 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12 and that portion of Chokoloskee Island contained in Sections 30 and 31, Township 53 South, Range 30 East; Sections 1, 2, 11, 12, 13, 14, 23, 24, 25, 26, 35 and 36, Township 50 South, Range 29 East; Sections 1, 2, 11, 12, 13, 14, 23, 24, 25, 26, 35 and 36, Township 51 South, Range 29 East; Sections 1, 2, 11, 12, 13, 14, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 35 and 36, Township 52 South, Range 29 East; Sections 1, 2, 11, 12, 13, 14, 23, 24, 25, 26 and 36, Township 53 South, Range 29 East; including the incorporated area of the City of Everglades being more particularly described as the Town of Everglades as described in Plat Book 1, pages 87 -95 of the Public Records of Collier County, Florida; and including Sections 3, 4, 5, 6, 8, 9, 10, 11, 13, 14 and 24, Township 52 South, Range 28 East; Sections 35 and 36 and all that area south and east of State Road 92 within Section 34, Township 51 South, Range 27 East; Section 1, Township 52 South, Range 27 East. (Ord. No. 75 -6, § 1(1); Ord. No. 78 -3, § 1; Ord. No. 92 -100, § 1) State law reference- Authority to create municipal service taxing or benefit unit, F.S. § 125.01(1)(q). Sec. 122 -227. - Governing board, powers and duties. (a) The governing board shall be the Board of County Commissioners. The business affairs of the district shall be administered and conducted by the board. It shall have the authority as prescribed in F.S. § 125.01(1)(q), including the authority to establish, equip, operate and maintain a fire department, ambulance service and rescue service within the district. The board shall buy, lease, sell, exchange or Page 1 of 5 Collier County, Florida, Code of Ordinances Packet Page -349- 11 /13/2012 Item 11.13. PART I - CODE Chapter 122 - SPECIAL DISTRICTS ARTICLE VIII. - OCHOPEE FIRE CONTROL DISTRICT otherwise acquire and dispose of firefighting equipment and other property, real, personal or mixed, that it may from time to time deem necessary to prevent and extinguish fire or provide ambulance and rescue services within the district. This shall include, but is not limited to, the authority to provide water, water supply, water stations and other necessary buildings; accept gifts or donations of equipment or money for the use of the district; and to do all things necessary to provide for an adequate water supply, for prevention and proper fire protection for the district. The board shall have the authority to extend its services outside the district under a mutual aid agreement with another district or to residents not receiving fire, ambulance or rescue services from another source. The board shall have the power to hire and fire necessary personnel, to investigate for fire and safety hazards and to promulgate rules and regulations for the prevention of fire and for fire control in the district. (b) The board shall appoint a committee of from three to five electors residing within the district to serve staggered terms of two years each to hold meetings at such time and places as it shall determine for the purpose of advising the board regarding the affairs of the district. At least one of the committee members who lives within the city limits of Everglades City shall represent the city's interest in the affairs of the district. Such representative shall be named by the mayor and approved by City Council of the City of Everglades and be confirmed by the Board of County Commissioners, as governing body. (c) The advisory committee shall annually prepare a tentative district budget and estimate the funds, their purpose and the ad valorem taxes necessary to carry out the provisions of this article for the following fiscal year as prescribed by F.S. ch. 129. (d) Upon adoption of the district budget by the board it shall cause the budget to be recorded in the board minutes and shall cause to be levied on all property within the district a millage sufficient to fund the budget not exceeding four mills in any one year to be assessed and collected as though county taxes. (e) The Board of County Commissioners shall: (1) Cause to be issued all warrants for service, equipment, materials and other expenses incurred by the district. (2) On or before the end of each fiscal year prepare an annual report of the receipts and expenditures of the district to the governing board as required by F.S. § 218.20 et seq. (Ord. No. 75 -6, § 1(2); Ord. No. 78 -3, § 1; Ord. No. 81 -41, § 1; Ord. No. 82 -76, § 1; Ord. No. 87 -70, § 1; Ord. No. 92 -100, § 1) State law reference— Board of county commissioners to be governing body of unit, F.S. § 125.01(2). Sec. 122 -228. - Prerequisite to tax levy. Prior to the levy of any taxes by the Ochopee Fire District on the properties located within the incorporated area of the City of Everglades, the City of Everglades must have adopted an ordinance, pursuant to the provisions of F.S. ch. 125. The ordinance shall set forth the number of years that the Ochopee Fire District may include the area within the corporate limits of the City of Everglades, the type of services to be provided by the Ochopee Fire District, and all other provisions as required by law. (Ord. No. 75 -6, § 2; Ord. No. 92 -100, § 2) Page 2 of 5 Collier County, Florida, Code of Ordinances Packet Page -350- 11/13/2012 Item 11.B. PART I - CODE Chapter 122 - SPECIAL DISTRICTS ARTICLE VIII. - OCHOPEE FIRE CONTROL DISTRICT Sec. 122 -229. - Advisory board. (a) Confirmed. The creation and establishment of the Ochopee Fire District Advisory Board is hereby confirmed and ratified. (b) Appointment and Composition. (1) The Board shall be composed of five members. As a general guideline, membership shall consist of one (1) member from each of the following areas: a. Everglades City - recommended by the Mayor. b. Plantation Island. c. Chokoloskee. d. Lee Cypress. e. Ochopee. (2) Notwithstanding subsection (1) above, the Board of County Commissioners may appoint as a member any permanent resident of the District. (3) Members of the Board shall be appointed by and serve at the pleasure of the Board of County Commissioners. Said members shall be permanent residents within the District, except for the member appointed from Everglades City, and all shall be electors of the County. (4) Appointment of members to the Board shall be by resolution of the Board of County Commissioners, which resolution shall set forth the date of appointment and the term of office. (c) Terms of office. The initial terms of office of the advisory board shall be as follows: (1) Three members will serve until December 31, 1989. (2) Two members will serve until December 31, 1990. Thereafter, each appointment or reappointment shall be for a term of two years. A member of the advisory board may be reappointed by the Board of County Commissioners for one successive term. However, other qualified applicants may be considered for any vacancy. Appointments to fill any vacancies on the board shall be for the remainder of the unexpired term of office. (d) Removal from office; failure to attend meetings. (1) Any member of the advisory board may be removed from office, with or without cause, by a majority vote of the Board of County Commissioners. (2) If any member of the advisory board fails to attend two consecutive board meetings without a satisfactory excuse or if a member is absent from more than one -half of the board's meetings in a given fiscal year, the board shall declare the member's seat to be vacant and the vacancy shall be filled by the Board of County Commissioners. (e) Officers; quorum; rules of procedure. Page 3 of 5 Collier County, Florida, Code of Ordinances Packet Page -351- 11 /13/2012 Item 11.13. PART I - CODE Chapter 122 - SPECIAL DISTRICTS ARTICLE VIII. - OCHOPEE FIRE CONTROL DISTRICT (1) Annually the membership of the advisory board shall elect a chairman and vice - chairman from among the members. Officers' terms shall be for one year, with eligibility for reelection. (2) The presence of three or more members shall constitute a quorum of the advisory board necessary to take action and transact business. In addition, an affirmative vote of three or more members shall be necessary in order to take official action, regardless of whether three or more members of the board are present at the meeting. (3) The advisory board shall, by majority vote of the entire membership, adopt rules of procedures for the transaction of business and shall keep a written record of meetings, resolutions, findings and determinations. Copies of all board minutes, resolutions, reports, and exhibits shall be submitted to the Board of County Commissioners. (f) Reimbursement of expenses. Members of the advisory board shall serve without compensation, but shall be entitled to receive reimbursement for expenses reasonably incurred in the performance of their duties upon prior approval of the Board of County Commissioners. (g) Functions, powers and duties.'The functions, powers and duties of the advisory board shall be as follows: (1) To provide input and review major department regulating documents. (2) To review and participate in the short/long term training programs. (3) To participate in the goal setting process. (4) To review and provide input for departmental programs or activities as determined by the emergency services administrator. (5) To coordinate and represent the fire department with community groups at fund raising activities. (6) To prepare and recommend to the Board of County Commissioners an itemized budget of the amount of money required to carry out the business of the Ochopee Fire District for the next fiscal year. In carrying out this responsibility, the board shall, no later than April 1 of each year, meet with the county emergency services administrator or his designee and outline to the administrator those projects which the board wishes to accomplish during the next fiscal year. Based upon this information the administrator or his designee shall prepare a proposed budget for the district, in accordance with standard county guidelines regarding the preparation of budgets. This proposed budget shall then be reviewed by the board and upon approval by the board be transmitted through the emergency services administrator to the Board of County Commissioners for adoption in accordance with the procedures for the adoption of budgets set forth under general law and the Board of County Commissioners' policy. Should the board fail to approve a budget by June 1 of each year, the county administrator shall be authorized to submit a proposed budget to the Board of County Commissioners. (7) To adopt and amend guidelines to govern their operation and the operation of the district, subject to approval by the Board of County Commissioners. (h) Duties of emergency services administrator. The duties of the emergency services administrator, or his designee, shall be: Page 4of5 Collier County, Florida, Code of Ordinances Packet Page -352- 11/13/2012 Item 11.13. PART I - CODE Chapter 122 - SPECIAL DISTRICTS ARTICLE VIII. - OCHOPEE FIRE CONTROL DISTRICT (1) To administer the activities of the district in accordance with established policies of the Board of County Commissioners and guidelines adopted by the board. (2) To prepare the annual budget in accordance with subsection (g)(6) of this section. (3) To provide periodic written reports. to the board, the county administrator and the Board of County Commissioners on the activities of the district and its finances in accordance with established guidelines of the Board of County Commissioners or the board. (4) To attend all board meetings. (i) Review process. The advisory board shall be reviewed once every four years commencing in 1990, in accordance with the procedures contained in chapter 2, article VIII, division 2 of this Code. (Ord. No. 89 -98, §§ 1 -9; Ord. No. 2011 -06, § 1) Cross reference— Boards, commissions, committees and authorities, § 2 -816 et seq. Sec. 122 -230. - Construction of article. This article shall be liberally construed to effectuate its public purpose. (Ord. No. 75 -6, § 2(1)) Secs. 122 -231- 122 -250. - Reserved. Page 5 of 5 Collier County, Florida, Code of Ordinances Packet Page -353-