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Item M6 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: April 21. 2004 Division: BOCC Bulk Item: Yes NOX Department: County Administrator AGENDA ITEM WORDING: Progress report on Draft ofInitial Assessment Resolution for the South Stock Island Wastewater Assessment Program. Directing the Board's attention to Exhibit II Assessment Notice Letter, and Exhibit III Consent and Acknowledgement Agreement ITEM BACKGROUND: Previous report and schedule for completing the program by Nabors, Giblin & Nickerson, P.A. on March 17,2004. Schedule of Critical Events attached. PREVIOUS RELEVANT BOCC ACTION: BOCC gave County Administrator authority to proceed with Scope of Services provided by GSG (Government Services Group) to develop the special assessment roll for the South Stock Island Utility project. CONTRACT/AGREEMENT CHANGES: STAFF RECOMMENDATIONS: TOTAL COST: N/A BUDGETED: Yes -L No COST TO COUNTY: N/A SOURCE OF FUNDS: N/A REVENUE PRODUCING: Yes No AMOUNTPERMONTH_ Year APPROVED BY: County Atty _ OMBlPurchasing -L Risk Management_ DIVISION DIRECTOR APPROVAL: ~t1~~~ Sheila A. Barker DOCUMENTATION: Included X To Follow_ Not Required_ DISPOSITION: AGENDA ITEM #IDIt- Critical Events Schedule Stock Island, FL Develop Database for Preliminary Assessment Roll Board of County Commissioners Project Status Meeting Draft Initial Assessment Resolution March 12 - April 30,2004 March 17, 2004 March - April 2004 Board of County Commissioners Meeting - Final Policy Direction - Key West Print and Stuff Notices/Consent Agreements Mail Notices Notices Due to County (postmarked) Prepare Final Assessment Roll Provide County with Initial Assessment Resolution Board of County Commissioners Adopt Initial Assessment Resolution - Key West County Publishes Notice of Public Hearing Public Hearing to Adopt Final Assessment Resolution (Special Meeting - Key West) Certify Assessment Roll to Tax Collector April 21, 2004 April 22 - 30, 2004 April 30, 2004 July 1, 2004 July 1 - 14, 2004 July 7,2004 July 14, 2004 July 21,2004 August 11, 2004 By September 15, 2004 DRAFT #2: 3/29/04 MONROE COUNTY, FLORIDA SOUTH STOCK ISLAND W ASTEW A TER ASSESSMENT PROGRAM INITIAL ASSESSMENT RESOLUTION ADOPTED JULY 14,2004 SECTION 1.01. SECTION 1.02. SECTION 1.03. SECTION 2.01. SECTION 2.02. SECTION 2.03. SECTION 2.04. SECTION 2.05. SECTION 2.06. SECTION 2.07. SECTION 3.01. SECTION 3.02. SECTION 3.03. SECTION 4.01. SECTION 4.02. SECTION 4.03. TABLE OF CONTENTS PAGE ARTICLE I DEFINITIONS AND CONSTRUCTION DEFINITIONS ...... .................... ..... ....... ................ ........ ............... .......2 INTERPRETATION.. ........ ...... .............. ................. ..... ....... ......... .......4 GENERAL FINDINGS ................... .......... .... ...... ......... ........... ...........4 ARTICLE II W ASTEW A TERASSESSMENTS DESCRIPTION OF PROPERTY TO BE ASSESSED ......................6 IMPOSITION OF ASSESSMENTS................................................... 6 PREPAYMENT AMOUNTS .............................................................6 COMPUTATION OF ANNUAL ASSESSMENTS........................... 6 PREPAYMENT OPTION ......... .........................................................8 MANDATORY PREPAYMENT .......................................................8 REALLOCATION UPON FUTURE SUBDIVISION....................... 9 ARTICLE III NOTICE AND PUBLIC HEARING NON-AD VALOREM ASSESSMENT ROL .................................. 12 PUBLIC IffiARING ....................... ... .... ................... ... ..................... 12 NOTICE BY PUBLICATION..........................................................12 ARTICLE IV GENERAL PROVISIONS METHOD OF COLLECTION .........................................................13 SEVERABILITy.... ............ .... ... ... ......... .... ..................... .................. 13 EFFECTIVE DATE. ....................... ....... .... ............ ............. .............. 13 APPENDIX A APPENDIX B APPENDIX C TABLE OF APPENDICES AFFIDAVIT OF MAILING Exhibit I Data provided by the KW Resort Utilities Corp. Exhibit II Form of Mailed Notice Exhibit III Form of Consent and Acknowledgment Agreement FORM OF NOTICE TO BE PUBLISHED INITIAL WASTEWATER ASSESSMENT NOTICE FROM KW RESORT UTILITIES CORP. RESOLUTION NO. - 2004 A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA, RELATING TO THE PROVISION OF WASTEWATER CAPACITY; DESCRIBING TIIE PROPERTY ELECTING TO PAY ANNUAL WASTEWATER ASSESSMENTS TO FUND THE WASTEWATER CAPACITY FEE AND RELATED COSTS; DETERMINING THE CAPACITY FEE, INTEREST RATE AND OTHER COSTS TO BE ASSESSED AND THE OTHER TERMS AND CONDITIONS OF THE ANNUAL WASTEWATER ASSESSMENTS; ESTABLISHING THE AMOUNT AND TERM OF THE ANNUAL WASTEWATER ASSESSMENT FOR EACH PARCEL OF PROPERTY TO BE ASSESSED; DIRECTING PREPARATION OF THE INITIAL NON-AD VALOREM ASSESSMENT ROLL; ESTABLISHING A PUBLIC HEARING TO CONSIDER IMPOSITION OF THE PROPOSED WASTEWATER ASSESSMENTS AND THE MElHOD OF THEIR COLLECTION; DIRECTING THE PROVISION OF NOTICE IN CONNECTION THEREWIlH; AND PROVIDING AN EFFECTIVE DATE. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA, AS FOLLOWS: ARTICLE I DEFINITIONS AND CONSTRUCTION SECTION 1.01. DEFINITIONS. As used in this Resolution, the following terms shall have the following meanings, unless the context hereof otherwise requires. "Annual Capacity Fee Payment" means the amount computed for each Tax Parcel pursuant to Section 2.04(A) hereof. "Board" means the Board of County Commissioners of Monroe County, Florida. "Capacity Fee" means $2,700 per "equivalent development unit" or "equivalent dwelling unit," the current capacity fee approved for the Utility by the Florida Public Service Commission. The Capacity Fee for each Tax Parcel is set forth in Appendix A to this Resolution. "Collection Cost" means the amount computed for each Tax Parcel pursuant to Section 2.04(B) hereof. "Consent and Acknowledgment Agreement" means the agreement required by Sections 2.02 and 2.03 of the Ordinance as a condition precedent to receiving the privilege of paying the Capacity Fee and related costs in installments as an Wastewater Assessment rather than as a lump sum at the time of connection to the Utility's vacuum wastewater system. "County" means Monroe County, a political subdivision of the State of Florida. 2 "County Administrator" means the chief administrative officer of the County, designated by the Board to be responsible for coordinating the Wastewater Assessments, or such person's designee. "Final Assessment Resolution" means the resolution described in Section 2.06 of the Ordinance, which shall confirm, modify or repeal this Resolution. "Fiscal Year" means the period commencing on October 1 of each year and continuing through the next succeeding September 30, or such other period as may be prescribed by law as the fiscal year for the County. "Non-Ad Valorem Assessment Roll" means a non-ad valorem assessment roll, as defined in Section 197.3632(1)(e), Florida Statutes. "Ordinance" means Ordinance No. 027-2003. "Prepayment Amount" means the amount required to prepay remaining balance of Wastewater Assessment for each Tax Parcel following certification of the Non-Ad Valorem Assessment Roll for the ad valorem tax bill to be mailed in November 2004, as computed annually pursuant to Section 2.04(E) hereof. "Property Appraiser" means the Monroe County Property Appraiser. "Statutory Discount" means the amount computed for each Tax Parcel pursuant to Section 2.04(C) hereof. "Tax Collector" means the Monroe County Tax Collector. "Tax Parcel" means a parcel of property to which the Property Appraiser has assigned a distinct ad valorem property tax identification number. 3 "Tax Roll" means the real property ad valorem tax assessment roll described in Section 193.114(2), Florida Statutes. "Uniform Assessment Collection Act" means Sections 197.3632 and 197.3635, Florida Statutes, or any successor statutes authorizing the collection of non-ad valorem assessments on the same bill as ad valorem taxes, and any applicable regulations promulgated thereunder. "Utility" means KW Resort Utilities Corp., a Florida Corporation. "Wastewater Assessment" means an annual special assessment imposed against property for which a Consent and Acknowledgment Agreement was executed to fund the cost of providing wastewater capacity to serve the property and related costs, computed in the manner described in Section 2.04 hereof. SECTION 1.02. INTERPRETA TION. Unless the context indicates otherwise, words importing the singular number include the plural number, and vice versa; the terms "hereof," "hereby," "herein," "hereto," "hereunder" and similar terms refer to this Resolution; and the term "hereafter" means after, and the term "heretofore" means before, the effective date of this Resolution. Words of any gender include the correlative words ofthe other gender, unless the sense indicates otherwise. SECTION 1.03. GENERAL FINDINGS. It IS hereby ascertained, determined and declared that: (A) Article VIII, Section 1 of the Florida Constitution, and Sections 125.01 and 125.66, Florida Statutes, grant to a board of county commissioners all powers of local 4 self-government to perform county functions and to render services for county purposes in a manner not inconsistent with general law, or with special law approved by vote of the electors, and such power may be exercised by the enactment of county ordinances. (B) The Board of County Commissioners of Monroe County, Florida, has enacted the Ordinance to authorize the imposition of Wastewater Assessments to allow payment of the cost to provide wastewater capacity over a period of years instead of at the time of connection to the Utility's vacuum wastewater system. (C) A reduction in the amount of costs due at the time of connection from the owners of property required to connect the Utility's vacuum wastewater system by the availability of an Wastewater Assessment option that permits the Capacity Fee and related costs to be paid over a period of years provides a special benefit to property and encourages connection to the vacuum wastewater system on a timely basis. (D) Since the Capacity Fee and related costs are directly related to each specific parcel of property to be assessed, the Wastewater Assessment provides an equitable method of funding the Capacity Fee and related costs. (E) In order to reduce the amount of the Wastewater Assessments, the County will provide an internal loan for a term up to 20 years with interest at 4.00 percent per annum. The County's interest rate is lower than the commercial interest rate otherwise available to the owners of property subject to the Wastewater Assessment. 5 ARTICLE II WASTEWATER ASSESSMENTS SECTION 2.01. DESCRIPTION OF PROPERTY TO BE ASSESSED. The Tax Parcels against which Wastewater Assessments shall be imposed are described in Appendix A. SECTION 2.02. IMPOSITION OF ASSESSMENTS. Wastewater Assessments shall be imposed against the Tax Parcels described in Appendix A for a period of five, ten, fifteen or twenty years, as designated in Appendix A for each Tax Parcel. The first annual Wastewater Assessment will be included on the ad valorem tax bill to be mailed in November 2004. When imposed, the Wastewater Assessment for each Fiscal Year shall constitute a lien upon such Tax Parcels pursuant to the Ordinance. SECTION 2.03. PREPAYMENT AMOUNTS. The Capacity Fee for each Tax Parcel to be assessed is set forth in Appendix A. A Prepayment Amount for each Tax Parcel shall be computed annually, as provided in Section 2.04(E) hereof. SECTION 2.04. COMPUTATION OF ANNUAL ASSESSMENTS. The annual Wastewater Assessment shall be computed for each Tax Parcel in the manner set forth below. (A) Annual Capacity Fee Payment. The "Annual Capacity Fee Payment" for each Tax Parcel is set forth in Appendix A hereof and is equal to the debt service on the 6 Capacity Fee for such Tax Parcel amortized in equal annual installments over the term designated in Appendix A for such Tax Parcel with interest at 4.00 percent per annum. (B) Collection Cost. The "Collection Cost" shall be computed each Fiscal Year for each Tax Parcel by (1) dividing (a) the Prepayment Amount for such Tax Parcel, by (b) the sum of the aggregate Prepayment Amount, and (2) multiplying the result by the estimated cost to be incurred by the County during any Fiscal Year in connection with collection of the Wastewater Assessments. (C) Statutory Discount. The "Statutory Discount" shall be computed for each Tax Parcel as the amount allowed by law as the maximum discount for early payment of ad valorem taxes and non-ad valorem assessments, such amount to be calculated by deducting (1) the sum of (a) the Annual Capacity Fee Payment, and (b) the Collection Cost, from (2) the amount computed by dividing (a) the sum of (i) the Annual Capacity Fee Payment, and (ii) the Collection Cost, by (b) the factor of 0.96. (D) Annual Wastewater Assessment. The annual Wastewater Assessment for each Tax Parcel shall be computed as the sum of (1) the Annual Capacity Fee Payment, (2) the Collection Cost, and (3) the Statutory Discount. (E) Adiusted Prepayment Amount. Upon certification of the Non-Ad Valorem Assessment Roll for each Fiscal Year, the Prepayment Amount for each Tax Parcel shall be recomputed by deducting (1) the principal amortized by Annual Capacity Fee Payment determined in Section 2.04(A) above and included on the Non-Ad Valorem Assessment Roll for the Tax Parcel, from (2) the Prepayment Amount utilized to compute the annual 7 Wastewater Assessment included on the Non-Ad Valorem Assessment Roll for such Tax Parcel. The new Prepayment Amount shall become effective upon payment of the ad valorem tax bill which includes the Wastewater Assessment certified for such Fiscal Year. SECTION 2.05. PREPAYMENT OPTION. (A) The owner of each Tax Parcel subject to the Wastewater Assessments shall be entitled to prepay all future unpaid annual Wastewater Assessments upon payment of an amount equal to the sum of (1) the Prepayment Amount for such Tax Parcel, and (2) interest on the Prepayment Amount, from the date of the most recent ad valorem tax bill, computed at the rate of 4.00 percent per annum. The amount of all prepayments made pursuant to this Section 2.05(A) shall be final. (B) During any period commencing on the date the annual Non-Ad Valorem Assessment Roll is certified for collection pursuant to the Uniform Assessment Collection Act and ending on the next date on which unpaid ad valorem taxes become delinquent, the County may reduce the amount required to prepay the future unpaid annual Wastewater Assessments for the Tax Parcel by the amount of the Wastewater Assessment that has been certified for collection with respect to such Tax Parcel. SECTION 2.06. MANDATORY PREPAYMENT. (A) The owner of a Tax Parcel subject to the Wastewater Assessment shall immediately prepay all future unpaid annual Wastewater Assessments for such Tax Parcel if (1) the Tax Parcel is acquired by a public entity through condemnation, 8 negotiated sale or otherwise, or (2) a tax certificate has been issued and remams outstanding in respect of the Tax Parcel and the County, at its sole option, elects to accelerate the Wastewater Assessment. Failure by the property owner to comply with this Section 2.06(A), will result in the remaining Prepayment Amount (plus interest computed at the rate utilized to compute the Annual Capacity Fee Payment in Section 2.05(A) hereof) being placed on the Tax Parcel's ad valorem tax bill for the next Fiscal Year, in addition to its share of the Collection Cost and Statutory Discount. (B) The amount required to prepay the future unpaid annual Wastewater Assessments will be equal to the Prepayment Amount for such Tax Parcel. The amount of all prepayments made pursuant to this Section 2.06 shall be final. (C) During any period commencing on the date the annual Non-Ad Valorem Assessment Roll is certified for collection pursuant to the Uniform Assessment Collection Act and ending on the next date on which unpaid ad valorem taxes become delinquent, the County may reduce the amount required to prepay the future unpaid annual Wastewater Assessments for the Tax Parcel by the amount of the Wastewater Assessment that has been certified for collection with respect to such Tax Parcel. SECTION 2.07. REALLOCATION UPON FUTURE SUBDIVISION. (A) Upon subdivision of any Tax Parcel subject to the Wastewater Assessment, and compliance with the conditions set forth below, the Prepayment Amount for such Tax Parcel shall be reallocated among the subdivided parcels. 9 (B) In order to have the Prepayment Amount for such Tax Parcel reallocated in connection with any such subdivision, the owner shall be required to apply to the County and comply with each of the following conditions: (1) a recorded plat, approved site plan or comparable document must be provided to the County sufficient in detail to describe adequately the location of the Tax Parcel and the individual parcels in the proposed subdivision; (2) the Property Appraiser must have assigned distinct ad valorem property tax identification numbers to each individual subdivided parcel; (3) at the expense of the property owner, an appraisal must be provided by a "certified general appraiser," as defined in Section 475.611(g), Florida Statutes, approved by the County, which indicates the fair market value of the Tax Parcel prior to the subdivision and the fair market value of each individual subdivided parcel; in determining the fair market value of the individual subdivided parcels, the appraiser may take into consideration any infrastructure improvements that are then under construction if funds sufficient for their completion are secured to the satisfaction of the Board; (4) a proposed reallocation of the Prepayment Amount to each individual parcel must be provided to the County; provided however, that no portion of the Prepayment Amount may be reallocated to property proposed for dedication to the public or to common use of the subdivided parcels; (5) the fair market value of each separate parcel after the subdivision must be at least five times the Prepayment Amount reallocated thereto; and 10 (6) the property owner shall pay an assessment reallocation fee to the County for each individual parcel resulting from the subdivision, in an amount to be established by resolution of the Board. (C) If the owner of any Tax Parcel subject to the Wastewater Assessment subdivides such Tax Parcel and fails to comply with the foregoing conditions, the County shall reallocate the Prepayment Amount among the subdivided parcels, based upon the land value, without improvements, assessed to each subdivided parcel by the Property Appraiser. At its sole option, the County may obtain an appraisal of the subdivided parcels at any time and reallocate the Prepayment Amount based upon the land value, without improvements, reflected in the appraisal. If an appraisal is obtained, the cost of the appraisal will be allocated among the subdivided parcels on the basis of the value reflected therein and added to the Prepayment Amount of the Wastewater Assessment for each subdivided parcel in the Fiscal Year following receipt of the appraisal. It is hereby found and determined that the foregoing method of reallocating the Prepayment Amount among subdivided parcels is fair and reasonable, taking into consideration the opportunity for reallocation available to the owner and the requirement to provide adequate security for the County. (D) Upon reallocation of the Prepayment Amount for any Tax Parcel among subdivided parcels, the Annual Capacity Fee Payment for such Tax Parcel shall be reallocated to the subdivided parcels proportionally to the reallocated Prepayment Amounts. 11 ARTICLE III NOTICE AND PUBLIC HEARING SECTION 3.01. NON-AD VALOREM ASSESSMENT ROLL. The County Administrator is hereby directed to prepare the preliminary Non-Ad Valorem Assessment Roll in the manner provided in the Ordinance. The preliminary Non-Ad Valorem Assessment Roll shall be maintained by the County Administrator and open to public inspection. The foregoing shall not be construed to require that the Non-Ad Valorem Assessment Roll be in printed form if the amount of the Wastewater Assessment for each Tax Parcel can be determined by use of a computer terminal available to the public. SECTION 3.02. PUBLIC HEARING. A public hearing will be conducted by the Board at 5:05 p.m., or as soon thereafter as the matter can be heard, on August 11, 2004, at the County Commission Chambers in the Harvey Government Center, 1200 Truman Avenue, Key West, Florida, to consider (A) imposition of the Wastewater Assessments, and (B) collection of the Wastewater Assessments pursuant to the Uniform Assessment Collection Act. SECTION 3.03. NOTICE BY PUBLICATION. Upon completion of the Non-Ad Valorem Assessment Roll, the County Administrator shall publish a notice of the public hearing authorized by Section 3.02 hereof in the manner and the time provided in Section 2.05 of the Ordinance. Such notice shall be in substantially the form attached hereto as Appendix B. 12 ARTICLE IV GENERAL PROVISIONS SECTION 4.01. METHOD OF COLLECTION. The Wastewater Assessments shall be collected pursuant to the Uniform Assessment Collection Act. Upon adoption of a Final Assessment Resolution confirming this Resolution and imposing the Wastewater Assessments, the Non-Ad Valorem Assessment Roll shall be certified to the Tax Collector pursuant to the Uniform Assessment Collection Act. SECTION 4.02. SEVERABILITY. If any clause, section or provision of this Resolution shall be declared unconstitutional or invalid for any reason or cause, the remaining portion of said Resolution shall be in full force and effect and be valid as if such invalid portion thereof had not been incorporated herein. SECTION 4.03. EFFECTIVE DATE. This Resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED by the Board of County Commissioners of Monroe County, Florida, at a regular meeting ofthe Board held on the 14th day of July, 2004. Mayor Nelson Mayor Pro Tern Rice Commissioner McCoy Commissioner Neugent Commissioner Spehar 13 (SEAL) Attest: DANNY L. KOLHAGE By: Deputy Clerk BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA By: 14 Mayor/Chairperson APPENDIX A AFFIDAVIT OF MAILING AFFIDAVIT OF MAILING STATE OF FLORIDA COUNTY OF LEON BEFORE ME, the undersigned authority, personally appeared Camille Tharpe, who, after being duly sworn, deposes and says: 1. At the direction of the Monroe County Administrator and on behalf of KW Resort Utilities Corp., I have mailed or directed the mailing of a notice by first class mail to the owner of each parcel of property identified in Exhibit I hereto at the address shown on the real property assessment tax roll maintained by the Monroe County Property Appraiser for the purpose of the levy and collection of ad valorem taxes. 2. The notices were mailed on or before April 30, 2004, in the form attached hereto as Exhibit II to owners of the parcels of property identified in Exhibit I hereto, using the number of equivalent dwelling units set forth in Exhibit I. The parcels to be notified and the number of equivalent dwelling units assigned to each parcel was provided by KW Resort Utilities Corp. 3. An Acknowledgment and Consent Agreement in the form attached hereto as Exhibit III was included with each notice. FURTHER AFFIANT SA YETH NOT. Affiant A-I STATE OF FLORIDA COUNTY OF LEON The foregoing instrument was acknowledged before me by Camille Tharpe, who is personally known to me or who has produced as identification and did (did not) take an oath. WITNESS, my hand and official seal this _ day of , A.D., 2004. Signature of person taking acknowledgment Name of acknowledger (printed) My commission expires: A-2 EXHIBIT I DATA PROVIDED BY KW RESORT UTILITIES CORP. [to come) A-3 EXHffiIT II FORM OF MAILED NOTICE KW Resort Utilities Corp. 6450 College Road Key West, Florida 33040 (305) 294-9578 Si necesita esta informacion en espaiiol por favor de /lame Monroe County a 292-4570 [NAME] [ADDRESS] [ADDRESS] [CITY] [STATE] [ZIP] [PARCEL ID] Re: South Stock Island Wastewater Assessment Program Dear Property Owner: As you are probably aware, KW Resort Utilities Corp. has entered into an agreement with Monroe County to provide wastewater capacity for South Stock Island. Under the rate tariff established by the Florida Public Service Commission, property connecting to the wastewater system will be required to pay a capacity fee of $2,700 for each "equivalent dwelling unit" or "EDU" before receiving service. One EDU has been assigned to each single-family and multi-family residential dwelling unit. EDUs have been assigned to each commercial parcel based on the wastewater service it requires, compared to a residential dwelling unit. In other words, if a business requires three times as much wastewater service as a residential dwelling unit, three EDUs have been assigned. Your tax parcel, as identified above, has been assigned [INSERT NUMBER] EDU(s). Under its agreement with the County, KW Resort Utilities Corp. is entitled to retain $600 of the capacity fee from each EDU for an upgrade to advanced wastewater treatment and is required to pay $2,100 to reimburse funds advanced by the County under the agreement. A-4 To make it easier for property owners to connect, the County has developed a program to finance 95 percent of the capacity fee. You may choose to pay 5 percent of the capacity fee ($135 per EDU) now and finance the balance ($2,565 per EDU) for up to 20 years or pay the full $2,700 when you connect to the wastewater system. If you choose the financing plan, the County intends to bill and collect the annual payments as a special assessment on your ad valorem (property) tax bill. The amounts that will appear on your tax bill will include 4% interest and your share of the County's cost to put the assessments on the tax bill. Failure to pay your tax bill, which will include your assessment, will cause a tax certificate to be issued against the property, which may result in a loss of title. You may also prepay your remaining assessment in full at any time. Whether you choose to pay the full capacity fee at connection or participate in the financing program, you will be responsible for hiring and paying a plumber to connect your property to the wastewater system and for paying the Utility's inspection fee. The amount of your annual assessment will depend on the number of years you choose to pay. The following chart shows the annual assessment for [INSERT NUMBER] EDUs over terms of 5, 10, 15 and 20 years. Term 5 Years 10 Years 15 Years 20 Years Annual Assessment INSERT AMOUNT] INSERT AMOUNT INSERT AMOUNT INSERT AMOUNT If you wish to participate in the County's voluntary deferred payment program, please sign and return the enclosed Consent and Acknowledgment Agreement. Two witnesses to your signature must also sign. You will need to fill in your choice of term and the corresponding annual assessment in paragraphs (2) and (3), using the amounts in the table. If you do not choose to participate, you will be required to pay the full capacity charge at the time of connection. If you have any questions, please call the General Manager ofKW Resort Utilities Corp., Doug Carter, at 305/294-9578. The Board of County Commissioners will hold a public hearing to finalize the assessments at 5:05 p.m., or as soon thereafter as the matter can be heard, on August 11, 2004, in the County Commission Chambers at Harvey Government Center, 1200 Truman A venue, Key West, Florida. You are invited to attend and participate in the public hearing or to file written comments with the County Administrator's Office prior to or during the hearing. Whether or not you attend the public hearing, your property will be included in the deferred payment program if you return the enclosed Consent and Acknowledgment Agreement and will not be included unless you elect to do so. If you A-5 decide to appeal any decision made by the Board with respect to any matter considered at the hearing, you will need a record of the proceedings and may need to ensure that a verbatim record is made, including the testimony and evidence upon which the appeal is to be made. In accordance with the Americans with Disabilities Act, if you need a special accommodation or an interpreter to participate in this proceeding, please contact the County Administrator's office at 305/492-4441 at least 3 days prior to the hearing. KW RESORT UTILITIES CORP. A-6 EXHIBIT III FORM OF CONSENT AND ACKNOWLEDGMENT AGREEMENT CONSENT AND ACKNOWLEDGEMENT AGREEMENT [INSERT NAME], (the "Owner"), the sole owner of the property described below (the "Owner's Property"), intending that it and its successors in interest shall be legally bound hereby, has executed and delivered this Consent and Acknowledgment Agreement for the purpose of inducing the Monroe County, Florida (the "County") to impose special assessments permitting payment of the capacity reservation fee (the "Capacity Fee") required to connect the Owner's Property to the wastewater system owned and operated by KW Resort Utilities Corp. (the "Utility") over the term of years described in paragraph (2) rather than immediately upon connection. The Owner hereby consents and acknowledges as follows: (1) Under the rate tariff established by the Florida Public Service Commission, property connecting to the Utility's wastewater system will be required to pay a Capacity Fee of $2,700 for each "equivalent development unit" or "EDU" before receiving service. (2) The Owner acknowledges that the number of EDUs assigned to the Owner's Property ([INSERT NUMBER)) is correct and consents to the imposition of an annual special assessment to fund 95 percent of the Capacity Fee (the "Annual Assessment") against the Owner's Property for a period of _ years. The Owner's Property is described as follows: [INSERT SUMMARY LEGAL DESCRIPTION FROM TAX ROLL] (3) Upon the execution of this Consent and Acknowledgement Agreement, the Owner shall pay $[INSERT 135 x NUMBER OF EDUS], five percent of the Capacity Fee, to the Utility. The Owner acknowledges that an Annual Assessment of $ will be included on the annual ad valorem tax bill for the Owners Property each year for the period described in paragraph (2) and that failure to pay the Annual Assessment will cause a tax certificate to be issued against the Owner's Property which may result in a loss of title. (4) The Owner acknowledges that the Annual Assessment provides a special benefit to Owner's Property by reducing the immediate cost of connecting to the Utility's wastewater system and that the provision of wastewater service possesses a logical A-7 relationship to the use and enjoyment of the Owner's Property by properly and safely disposing of wastewater generated on the Owner's Property in an environmentally responsible manner. (5) The terms of this Consent and Acknowledgement Agreement shall be deemed a covenant running with the Owner's Property and shall be binding upon the Owner, the Owner's heirs and assigns, and shall be recorded in the public records of Monroe County, Florida. IN WITNESS WHEREOF, the Owner has executed and delivered this Consent and Acknowledgement Agreement this _ day of , 20_ [INSERT NAME OF OWNER] By: Witnesses: A-8 APPENDIX B FORM OF NOTICE TO BE PUBLISHED To Be Published on or before July 21,2004 [INSERT SMALL MAP OF STOCK ISLAND] NOTICE OF HEARING TO IMPOSE AND PROVIDE FOR COLLECTION OF SPECIAL ASSESSMENTS IN THE SOUTH STOCK ISLAND W ASTEW A TER ASSESSMENT AREA Si necesita esta informacion en espaiiol por favor de /lame Monroe County a 292-4570 Notice is hereby given that the Board of County Commissioners of Monroe County, Florida will conduct a public hearing to consider imposing special assessments to fund the cost of providing wastewater capacity to serve certain property located on Stock Island. The special assessments will only be imposed against property for which a Consent and Acknowledgment Agreement has been executed and delivered to KW Resort Utilities Corp. by July 1,2004. The hearing will be held at 5:05 p.m., or as soon thereafter as the matter can be heard, on August 11, 2004, at the County Commission Chambers in the Harvey Government Center, 1200 Truman Avenue, Key West, Florida, for the purpose of receiving public comment on the proposed assessments and collection of the assessments on the ad valorem tax roll. All affected property owners have a right to appear at the hearing and to file written objections with the County Administrator anytime prior to the public hearing. If a person decides to appeal any decision made by the Board with respect to any matter considered at the hearing, such person will need a record of the proceedings and may need to ensure that a verbatim record is made, including the testimony and evidence upon which the appeal is to be made. In . accordance with the Americans with Disabilities Act, persons needing a special accommodation or an interpreter to participate in this proceeding should contact the County Administrator at 305/292-4441 at least 48 hours prior to the date of the hearing. The assessment for each parcel of property will be based upon the actual cost of providing wastewater capacity to serve the property and additional costs incurred by the City related to this program, including interest and collection costs. A more specific description of the assessment program is set forth in the Initial Assessment Resolution adopted by the Board on July 14,2004. Copies of the Initial Assessment Resolution and the preliminary Non-Ad Valorem Assessment Roll are available for inspection at the B-1 County Administrator's office, located at The Historic Gato Cigar Factory, 1100 Simonton Street, Suite 2-205, Key West, Florida. The assessments will be collected on the ad valorem tax bill, as authorized by Section 197.3632, Florida Statutes. Failure to pay the assessments will cause a tax certificate to be issued against the property which may result in a loss of title. The Board intends to collect the assessments in installments, the first of which will be included on the ad valorem tax bill to be mailed in November 2004. If you have any questions, please contact the County Administrator at 305/292- 4441. MONROE COUNTY, FLORIDA B-2 APPENDIX C INITIAL WASTEWATER ASSESSMENT NOTICE FROM KW RESORT UTILITIES CORP. [to come) B-1