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Item L09County of Monroe A BOARD OF COUNTY COMMISSIONERS Mayor George Neugent, District 2 The Florida. Key y w) Mayor Pro Tem David Rice, District 4 �r Danny L. Kolhage, District 1 Heather Carruthers, District 3 Sylvia J. Murphy, District 5 County Commission Meeting April 12, 2017 Agenda Item Number: L.9 Agenda Item Summary #2764 BULK ITEM: No DEPARTMENT: Sustainability TIME APPROXIMATE: STAFF CONTACT: Rhonda Haag (305) 453 -8774 11:00 a.m. AGENDA ITEM WORDING: Presentation, discussion and direction regarding the proposed canal special assessment program for the first six (6) canal demonstration projects. ITEM BACKGROUND: The presentation will present assessment calculations, assessment options and financing options for operations and maintenance costs for the first six demonstration project canals. Government Services Group will lead the presentation. The Monroe County Board of County Commissioners has previously approved restoration work totaling approximately $7 million to improve the water quality on the following seven (7) canals as part of a pilot program to test the efficacy of the technologies: canals 29 (Key Largo); 83 (Rock Harbor); 266, 277, 287 and 290 (Big Pine Key); and 470/472 (Geiger Key). The objective of the pilot program was to test the efficacy of four different types of technologies (or combinations thereof) on the canals (backfilling, organic removal, air curtains, and culverts) and use the improved canals as a predictor for the cost and water quality gains to be achieved. Without future operations and maintenance work, any gains accomplished by the restoration work will slide backwards and be lost, the full value of the restoration work will not be realized, and it will be impossible to measure the gains of the restoration work. All of the canals, with the exception of the one canal that used only the backfilling technology (canal 29 in Key Largo), will require future expenditure of funds to cover operations and maintenance costs. The property owners on the canals where work was performed have already and will continue to realize benefits as a result of the restoration work, including but not limited to gains in overall appearance of their property, increase in property values, and improved use of the canals for fishing, swimming and other recreational uses. It is therefore appropriate for the County to collect funds to cover the cost of O &M from the property owners who realize the special benefits of the restoration work in the form of special assessments, provided the cost is distributed so that they are fairly and reasonably apportioned to the subject properties. The County is authorized under Section 125.01(1)(q) to establish municipal service benefit units within all or any part of the unincorporated county, within which may be provided essential facilities from funds derived from special assessments on the properties located within the municipal service benefit unit (MSBU). Canal restoration work falls within the definition of "other essential facilities and municipal services." Staff formerly requested approval to move forward with a special assessment program in accordance with Section 197.3632, Florida Statutes, in order to pay for the O &M work on the canals, which steps will include a public hearing to approve an ordinance creating the MSBU and presentation of initial and final assessment resolutions. Staff anticipates a presentation of an Initial Assessment Resolution in May 2017 and a Final Assessment Resolution in June 2017, both of which shall delineate more specifically the specific properties to be levied and the amount of the assessment on each property. PREVIOUS RELEVANT BOCC ACTION: 11/14/16: Approval of a resolution directing staff to continue with development of a program to collect special assessments and the creation of municipal service benefit units (MSBUs) to collect funds to pay for ongoing operation and maintenance (O &M) costs for existing canal water quality restoration projects. 12- 14 -16: Public hearing to consider approval of a resolution of Monroe County, Florida electing to use the uniform method of collecting non -ad valorem special assessments levied within the County toward the cost of providing Operations and Maintenance costs for canal restoration demonstration projects on Big Pine Key, Geiger Key and Key Largo; stating a need for such levy; providing for the mailing of this resolution; and providing for an effective date. 01- 18 -17: Approval of a $28,000 base contract with Government Services Group, Inc., plus two 1- year options for $5,000 each year, to provide professional services to assist the County in setting up the special assessment program to fund operations and maintenance of the Canal Restoration Demonstration Project Canals in Big Pine Key, Geiger Key and Key Largo, with the work to be performed in FY 2017 for special assessments to be collected beginning in FY 2018. CONTRACT /AGREEMENT CHANGES: N/A STAFF RECOMMENDATION: DOCUMENTATION: MSBU specific rates FINAL Monroe County Canals Assessment Program Report Final FINANCIAL IMPACT: Effective Date: April 12, 2017 Expiration Date: N/A Total Dollar Value of Contract: N/A Cynthia Hall Total Cost to County: TBD Current Year Portion: $0 Budgeted: TBD Source of Funds: TBD CPI: N/A Indirect Costs: N/A Estimated Ongoing Costs Not Included in above dollar amounts: TBD Revenue Producing: TBD If yes, amount: Grant: N/A County Match: TBD Insurance Required: N/A Pending Additional Details: N/A REVIEWED BY: Rhonda Haag Completed 03/27/2017 6:48 PM Cynthia Hall Completed 03/27/2017 6:58 PM Budget and Finance Completed 03/28/2017 9:42 AM Maria Slavik Completed 03/28/2017 10:01 AM Kathy Peters Completed 03/28/2017 2:52 PM Board of County Commissioners Pending 04/12/2017 9:00 AM °i l J ' m o � o = N Q N C O = R m y C � a 0 c c `c a T e 9 v 0 p = C C � N O � d R C.1 99 d a� m 0 R 7 C = G a m a O H ° � e 7 V Lf, @ N C J O V a< a H � c e O � V ,, iS N e V If, 9 a o o o olc o o o O c 0 0 0 0 c O O O O c N N N N c m d rn Ln l c N a) -1 N t N I� L17 d t d N d CO f v> v> v> v> 4 ti m i— O r It CO (h LP c N O N a) r d d -1 a) c a) Ln O N r fH fH fH r j 4 ka m 0 0 0 m -1 0 0 d d U m r m d N -1 N r N O L N d N Ln c O N I� ti t W d m C0 c N N N -1 c I-- d O a) c I-- Ln m O L m -1 -1 ti rl rl rl t e EH EH EH 4 CO -1 a) O L Ln O c1 Ln t -1 N -1 V3 L EH EH EH 4 0i d N CO c m 0 r I n N r-- O L17 N t fH r j EFJ fH c EH 4 N N O O I� e EH EH EH 4 O O O LO L d d d Ln r m m m m c LO O O d N N N ka c EH EH EH EH 4 U Q 1 (6 � U U k s o C C m 6 F6 t O O O CY CY — CY O O Q O t Q� } } } O w w w = z z z O CO CO CO O I-- O m co m rn a) N N N (E)sE) - ) m � Ln a m C I� C4 J EH K ) i (0 d CO fH K ) m a i Ln a fH K ) LI) h I N C { Lf Liz d N C4 tp K ) hl � h � ) EA Ef 0 C O c O c+ ? ffJ K hl O C O 6 fH K h ) 0 0 c i m a f k fH K ) 1 > U S � - 1 U > C LL W LL Y LL w � z LL a c, c� c c0 d I— C ti r N d ale ,d a N 0 n CO CO N a, a m N O p N ai O t0 N a) M N O O e N n N M N N 46 N ° o M N P C s d H d 7 V Ri O N If , Rm r c c c 4 c t C c 4 t c u c c 4 a) to CO Ln O N n 0 a N O O e�l N O O O N n N a N 0 n a W N N le ) i ) ) ) ) ) i ) Ui C u a a C u c u Monroe County, Florida Assessment Program to Fund Canal Maintenance Services MARCH 2017 Presented by: Government Services Group, Inc. 1500 Mahan Drive, Suite 250 Tallahassee, FL 32308 (850) 681 -3717 (850) 224 -7206 (fax) ! a W, 11111m, f ry INTRODUCTION .......................................................................................................................... ..............................1 ASSESSMENTPROGRAM .......................................................................................................... ..............................3 IMPLEMENTATION PHASE ...................................................................................................... ............................... 10 Government Services Group, Inc. I i list of Tables Table 1 —Canal Restoration Demonstration Projects Capital Costs ................................ ............................... 3 Table 2— Number of Parcels by DOR Code ........................................................................ ............................... 5 Table 3 —Canal Restoration Demonstration Projects Annual Maintenance Costs ......... ............................... 5 Table 4— Number of Platted Lots by Canal ........................................................................ ............................... 6 Table 5— Annual Canal Maintenance Services Assessment Rates ................................ ............................... 7 a Government Services Group, Inc. I ii ntroduction Monroe County, Florida (County) has engaged Government Services Group, Inc. (GSG) to assist in developing and implementing a special assessment program to fund the ongoing canal maintenance services (Canal Maintenance Services) within the unincorporated areas of the County. The County intends to collect the assessments pursuant to the uniform method of collection in section 197.3632, Florida Statutes. GSG is a consulting firm located in Tallahassee and Orlando that specializes in government finance and taxation issues by working with cities, counties, special districts, and state agencies, to develop unique funding and service delivery solutions for critical infrastructure and service needs. GSG has developed extensive experience in structuring and implementing alternative revenue sources in Florida. BACKGROUND There are over 500 residential canals located within the incorporated and unincorporated areas of Monroe County. Most of the residential canals were constructed in the 1950s by developers who wanted to meet the demand of waterfront living and who also needed a source of fill material for construction of residences and businesses and therefore, dredged finger canals throughout the County. Construction of residential canals was initiated before resource managers fully understood their impacts on local water quality and the broader coastal ecosystems. Depending upon how much fill material was required at the time of development, many of the canals were dredged to a depth in excess of 20 feet. Most canals were designed as long, multi- segmented, dead -end canal networks which maximize waterfront property but resulted in little or no tidal flushing. Without adequate tidal flushing, the canals from their onset accumulated oxygen consuming sediments, nutrients and organic matter. In 2008, the Florida Department of Environmental Protection (FDEP) developed the first Florida Keys Reasonable Assurance Document ( FKRAD) for the purpose of addressing both anthropogenic nutrient loading and diminished dissolved oxygen (DO) concentrations within the canals. Through the implementation of the FKRAD prescribed management activities (Wastewater Management, Stormwater Management, and the adherence to Regulatory Guidelines), it was expected that Monroe County would not be required to establish Total Maximum Daily Loads (TMDLs) to address either the nutrient loading or diminished DO concentrations in the residential canals. In the 2011 FKRAD update, the FDEP acknowledged that due to the varying nature of the residential canals within Monroe County, the actual improvement in water quality from the implementation of the three above referenced general management activities was unknown. Furthermore, the 2011 FKRAD stated that it expected that DO concentrations in the residential canals would likely not achieve Class III Marine Surface Water DO standards even after these management activities, due to the varying nature of the canals with respect to poor circulation, weed wrack, organic sediments and water depth. As a result, FDEP stated that it intended to continue to work with the Florida Keys National Marine Sanctuary in the study of potential improvements to the canals beyond the management activities listed above. Government Services Group, Inc. 1 1 The Water Quality Protection Program Canal Restoration Advisory Subcommittee (WQPP Canal Subcommittee) determined that the first step to address the water quality problem was to prepare a Canal Management Master Plan (CMMP) to provide an updated water quality assessment of all residential canals within the County, develop a methodology to prioritize need for water quality improvement, and identify appropriate restoration options. Phase 1 of the CMMP, which developed a management process for addressing the restoration of the residential canals was completed in June 2012 and concentrated on only 23 canals. The objective of Phase 2 of the CMMP was to complete the CMMP process throughout the County and develop a basic conceptual framework for canal restoration and management including prioritization and development of feasible strategies to improve water quality. Phase 2 tasks included the expansion of the GIS canal attribute table, the preparation of a countywide canal ranking system and development of suitable water quality technologies. The countywide canal water quality ranking process consisted of the following: • Completion of a Water Quality Assessment of the approximately 500 canals • Assignment of a Water Quality Classification of Good, Fair or Poor to each canal • Ranking Scoring Sheet applied to Poor Water Quality canals to further assist in prioritizing need for water quality improvement Upon ranking of the residential canals related to water quality as part of Phase 2 of the CMMP, 171 canals received the ranking of Good, 180 canals received the ranking of Fair, and 131 canals received the ranking of Poor. In 2013, the Monroe County Board of County Commissioners (BOCC) approved funding of $5 million for implementation of a minimum of 5 different restoration technologies throughout unincorporated Monroe County. The technologies under consideration included: • Removal of accumulated organics from within canals • Weed gates, air curtains or other physical barriers to minimize additional organic accumulation in the canals • Culvert connections to facilitate flushing • Pumping systems to facilitate flushing, and • Backfilling to remove deep stagnant zones. Ultimately, in 2014, an initial seven canals were selected for restoration, with three major forms of restoration technology used within the seven demonstration canals. Backfilling restoration consists of placing truckloads of clean fill to raise the canal bottom to encourage revegetation of sea life. Installation of concrete culverts that connect sections of the canal system work to enhance the natural tidal flushing. Organic removal and air curtain installation removes trash and debris which eliminates hydrogen sulfide odor, improves water clarity and reduces future seaweed entrapment in the canal. Government Services Group, Inc. 1 2 Table 1 provides the canal location, restoration technology used and capital costs for the seven demonstration canals. Table 1 Canal Restoration Demonstration Projects Capital Costsl Canal Name Restoration Technology Restoration Capital Cost 29 Key Largo Backfilling $1,360,000 83 Rock Harbor Organic Removal / Backfilling and Air Curtain $1,500,000 266 Big Pine Key Organic Removal and Air Curtain $1,300,000 277 Big Pine Key Culvert $424,000 287 Big Pine Key Air Curtain $101,000 290 Big Pine Key Organic Removal and Air Curtain $800,641 470/472 Geiger Key Culvert $199,000 Source: AMEC 1 Capital Costs as of March 2017 At a November 14, 2016 Special Meeting, the BOCC provided direction on the following funding issues • RESTORE and Stewardship Act funds will be allocated annually to new canal restoration project capital costs • Municipal Service Benefit Units (MSBUs) will be created and special assessments will be imposed for the annual costs of the operations & maintenance for the demonstration projects OBJECTIVES The County retained GSG to develop a special assessment program capable of funding the assessable costs associated with the Canal Maintenance Services. The Uniform Method of collection for special assessments pursuant to section 197.3632, Florida Statutes requires the use of data that is available on the ad valorem tax roll. Accordingly, the challenge is to develop a non -ad valorem assessment program which employs property information that is readily available or reasonably should be included and consistently updated on the ad valorem tax roll. To this end, GSG has been charged to use the County's estimates of the costs of the maintenance services provided, develop a simple, fair and reasonable apportionment methodology for such assessable costs and calculate preliminary assessment rates. The objectives of this effort are to: • Develop a description of the proposed apportionment methodology. • Develop the estimated assessable cost calculations for the Canal Maintenance Services. • Calculate preliminary rates based on the cost estimates for the Canal Maintenance Services. Government Services Group, Inc. 1 3 STUDY METHODOLOGY GSG performed the following tasks in accomplishing the project objectives: • Analyzed the ad valorem tax roll information from the Monroe County Property Appraiser. • Used the County's Geographic Information Systems (GIS) files, verified all parcels within the each of the demonstration project areas and confirmed that the affected parcels conform to the apportionment methodology. • Coordinated the research to provide data necessary to develop a fair and reasonable apportionment methodology. • Calculated preliminary annual assessment rates, based on the estimated assessable costs provided by the County and the proposed apportionment methodology. Government Services Group, Inc. 1 4 MMMMMNM 0 11 ASSESSMENT AREA PROPERTY COMPOSITION GSG obtained information from the ad valorem tax roll from the Monroe County Property Appraiser's office and the GIS files from Amec Foster Wheeler (AMEC) to develop the assessment roll for the Canal Maintenance Assessment Program. The Property Appraiser assigns a four -digit code to classify the use of the property based on the Florida Department of Revenue (DOR) property use codes reflected in Rule 12D- 8.008, Florida Administrative Code. Table 2 provides a listing of the number of parcels for each DOR property use code within the Assessment Area. Note that the in -kind contributions from Monroe County exceed the proportion of the estimated project costs that would be attributable to County -owned property through the Assessment Program, which will therefore, not be assessed. Table 2 Number of Parcels by DOR Code DOR DOR Description Parcel Count 0000 VACANT RESIDENTIAL 36 0100 SINGLE FAMILY IMPROVED 113 0200 MOBILE HOME 72 0800 MULTI FAMILY (LESS THAN 10 UNITS) 1 1000 VACANT COMMERCIAL 2 8000 VACANT GOVERNMENTAL 4 9900 ACREAGE NON AGRICULTURAL 1 Total 229 Source: 2016 Ad Valorem Tax Roll PROJECT COST ESTIMATES Each of the three restoration technologies require a different level of maintenance services. Backfilling of the canal requires no additional maintenance services. Culvert placement requires minimal maintenance services. The air curtain installation requires the most costly maintenance services. Table 3 provides the canal location, restoration technology used and annual maintenance costs for the seven demonstration canals. Note that because there are no maintenance services associated with the backfilling restoration technology, Canal #29 Key Largo is not included in the assessment program. Table 3 Canal Restoration Demonstration Projects Annual Maintenance Costs Canal Restoration Technology 0 &M Costs 83 Rock Harbor Organic Removal /Backfilling and Air Curtain $25,340 266 Big Pine Key Organic Removal and Air Curtain $20,840 287 Big Pine Key Air Curtain $20,840 290 Big Pine Key Organic Removal and Air Curtain $14,855 Subtotal by Air Curtain Technology $81,875 Government Services Group, Inc. 1 5 Canal Restoration Technology 0 &M Costs 277 Big Pine Key Culvert $1,800 470/472 Geiger Key Culvert $1,800 Subtotal by Culvert Technology $3,600 Total $85,475 Source: AMEC SPECIAL BENEFIT ASSUMPTIONS The following assumptions and legislative declarations support a finding that the Canal Maintenance Services confer a special benefit on the assessed parcels, as follows: • Protecting and enhancingtheir value, use and enjoyment; • Promoting health, welfare, convenience and safety for all assessed property owners in the assessment area; • Stabilization of or the increase of property values; • Establishing and preserving adequate water access to all properties within the assessment area; and • Improved appearance of the assessment area. The development of the proposed assessment methodology is based upon the assumptions that appropriate legislative findings are prepared and included in the assessment resolution required to implement the program. PROPOSED ASSESSMENT METHODOLOGY The proposed assessment methodology for the Canal Maintenance Services is based on the number of platted lots attributed to each tax parcel. It is fair and reasonable to allocate the costs of the maintenance services because each lot has the same potential to benefit from the canal maintenance services. Accordingly, the number of platted lots will serve as an indication of each parcel's share of the potential benefit from Canal Maintenance Services. The number of platted lots will serve as the billing units for the Canal Maintenance Services assessment program as provided in Table 4. Table 4 Number of Platted Lots by Canal Canal Name Number of Platted Lots 83 Rock Harbor 34.33 266 Big Pine Key 44.10 287 Big Pine Key 26.00 290 Big Pine Key 13.00 277 Big Pine Key 44.25 470/472 Geiger Key 58.00 Source: 2016 Ad Valorem Tax Roll and GIs Files Government Services Group, Inc. 1 6 COMPUTATION OF ASSESSMENTS PRO FORMA ANNUAL CANAL MAINTENANCE SERVICES ASSESSMENT RATES The annual assessment for each parcel of property will include its share of the annual maintenance services costs, and the annual collection cost for the assessments. An amount will also be added to cover the statutory discount applicable to early payment of ad valorem taxes and special assessments. Table 5 provides the annual canal maintenance assessment rates per lot for each category of technology. The rates are based on the following assumptions: • Total annual maintenance (0 &M) costs are $81,875 and $3,600 respectively for the Air Curtain Technology and the Culvert Technology. • Administrative Costs are the costs to reimburse the County for administering the assessment program and are calculated at five percent of the annual maintenance costs. • GSG Costs include the costs for the annual maintenance and update of the assessment roll. These costs are reimbursable through the assessment program and are $5,000. • Tax Collector costs are the costs for the County to bill and collect the assessments using the tax bills mailed annually around November 1St by the Monroe County Tax Collector and are $1,000 for any assessment program with less than 2,000 records. • Statutory Discount reflects a five percent reserve for the under - collection of assessments due to the discount on annual property tax bills allowed for property owners that pay prior to March 1St Table 5 Annual Canal Maintenance Services Assessment Rates Restoration Technology O &M Costs Admin Costs GSG Costs Tax Collector Statutory Total Annual Annu: Costs Discount Assessment Assessment /Lc Air Curtain Technology $81,875 $4,094 $2,673 $535 $4,459 $93,635 $797.3 Culvert Technology $3,600 $180 $2,327 $465 $329 $6,901 $67.4 Source: AMEC, Tax Roll data Government Services Group, Inc. 1 7 01 111211ra The following section describes all of the steps required to implement and collect the proposed special assessments on the ad valorem tax bill in Fiscal Year 2017 -18 and thereafter. The County will be required to follow the statutory deadlines provided in section 197.3632, Florida Statutes to implement the special assessments. Following this section is a critical events schedule identifying specific dates for all significant remaining events for the County to comply with these tasks. RESOLUTION OF INTENT To use the tax bill collection process, a local government must follow the strict procedures provided in section 197.3632, Florida Statutes (Uniform Method). A local government must initiate the process almost a year before it intends to begin using the Uniform Method to collect the assessments. The process begins with the passage of a resolution of intent prior to January 1 or, if the property appraiser, tax collector, and local government agree, March 1. The adoption of a resolution of intent does not obligate the local government to use the method or to impose a special assessment, but it is a prerequisite to using the Uniform Method. The local government must publish notice of its intent to consider a resolution to use the Uniform Method weekly for four consecutive weeks prior to a public hearing on the matter. If the resolution is adopted, the governing board must send a copy of it to the property appraiser, the tax collector, and the Florida Department of Revenue by January 10 or, if the property appraiser, tax collector, and local government agree, March 10. The County completed this requirement on December 14, 2016. ASSESSMENT ORDINANCE The County will need to adopt an ordinance to establish the assessment process under its home rule power. The Assessment Ordinance should outline the procedural steps and notifications required to impose a recurring annual special assessment that is consistent with the Uniform Assessment Collection Act. The adoption of the Assessment Ordinance will require one public hearing. The adoption of the Assessment Ordinance is scheduled for May 17, 2017. INITIAL ASSESSMENT RESOLUTION The Initial Assessment Resolution begins the assessment process for a specific project and does not require a public hearing. However, in this case, the County has chosen to conduct a public hearing on adoption of the Initial Assessment Resolution. Government Services Group, Inc. 1 8 The Initial Assessment Resolution must include the following: • Describes the property to be located within the proposed assessment area; • Describes the services proposed for funding from proceeds of the assessments; • Estimates the costs; • Describes with particularity the proposed method of apportioning the costs among the parcels of property located within the proposed assessment area, such that the owner of any parcel of property can objectively determine the number of assessment units and the amount of the assessment; • Includes specific legislative findings that recognize the fairness provided by the apportionment methodology; • Sets a public hearing date for adoption of a Final Assessment Resolution; and • Directs and authorizes the mailed and published notifications to those property owners included on an initial assessment roll. The adoption of the Initial Assessment Resolution is scheduled for May 17, 2017. NOTICE TO PROPERTY OWNERS (MAILED AND PUBLISHED) The County is required to publish notice of the public hearing and to mail an individual notice to each property owner. The mailed notice must include the following information: • The purpose of the assessment; • The total amount to be levied against the parcel; • The unit of measurement applied to determine the assessment; • The number of units contained in the parcel; • The total revenue to be collected by the assessment; • A statement that failure to pay the assessment will cause a tax certificate to be issued against the property, which may result in a loss of title; and • A statement that all affected property owners have a right to appear at the public hearing and to file written objections with the County within 20 days of the notice; and the date, time and place of the public hearing. The mailed and published notices are scheduled for May 31, 2017. PUBLIC HEARING AND FINAL ASSESSMENT RESOLUTION The County is required to hold a public hearing on the Final Assessment Resolution. Immediately followingthe public hearing, the County may adoptthe Final Assessment Resolution which must: • Create the assessment area(s); • Confirm, modify or repeal the Initial Assessment Resolution with such amendments, if any, as may be deemed appropriate by the Commission; Government Services Group, Inc. 1 9 • Establish the maximum amount of the assessment for each assessment unit; • Approve the assessment roll, with such amendments as it deems just and right; and • Determine the method of collection. The adoption of the Final Assessment Resolution is scheduled for June 21, 2017. CERTIFICATION OF THE ASSESSMENT ROLL AND COLLECTION OF ASSESSMENTS The assessment roll must be certified to the Monroe County Tax Collector by September 15, 2017. Collection of the special assessments and ad valorem taxes begins in November. Failure to pay the assessments and taxes result in the issuance of a tax certificate and may result in the sale of a tax deed. Any minor modifications, corrections or errors must be made in accordance with the procedure applicable to the correction of errors on the tax roll, upon written direction from the County to the Monroe County Tax Collector. The Fiscal Year 2017 -18 Assessment Roll will be certified by September 15, 2017. CRITICAL EVENTS SCHEDULE The schedule below provides a detailed review of the remaining critical events schedule: Event Date BOCC Presentation on Assessment Method ology& Rates (if necessary) April 12, 2017 BOCCapprovalto advertise Home RuleOrdinance April 12, 2017 County advertises Public Hearingto adopt Ordinance (County requires 30 days) By April 26, 2017 Public Hearing/Home Rule Ordinance and Initial Assessment Resolution Adopted May17, 2017 Publication Deadlinefor Notice ofPublicHearingre: Final Resolution By May 31, 2017 Mail Notices To Affected Property0wners ByMay31, 2017 Public Hearingto Adopt Final Assessment Resolution June 21, 2017 GSG certifies assessment roll to Tax Collector By September 15, 2017 Government Services Group, Inc. 1 10 4/11/2017 1. Restore canals to meet State water quality standards 2. Able to fish and swim in canals again. 3. Protect human health and natural resources - Canals that don't flush and have rotting seaweed may contain bacteria, viruses and noxious hydrogen sulfide and methane gases 4. Reduced smell in the canals — clearer water — more fish, seagrass and other marine life. 5. Provide private- sector construction jobs for restoration and O &M 6. Ensure continued vibrancy of the $1.36 marine -based tourism industry of the Florida Keys. Tourists want clean water on rental housing & to use nearshore waters for water sports 7. Avoid potential regulatory TMDL mandates. 1 Canal 2g - BackfilIing Sexton Cove, Key Largo Canal 266 - Organic Removal /Air Curtain Canal 290 — Organic Removal and Air Curtai between Avenues I & J, Big Pine Key 1 T AIK LVKIAIR NVVTC1 TO Canal w Canal 287 Air Curtain Atlantic Estates, Big Pine Key Before �$ After After _ -- ' �., 1: is Y h qq � 3 ett� n 1 T AIK LVKIAIR NVVTC1 TO Canal w Canal 287 Air Curtain Atlantic Estates, Big Pine Key Before �$ After After _ -- ' �., Canals 277- Culvert Watson Blvd, Big Pine Key Canal 472 - Culvert Geiger Key in 4/11/2017 ff 2 year demonstration canal pre and post monitoring program $300,00o Grant to FIU - Funds expire September 2017 FIU final report for demonstration projects due in fall 2. Initial trends • Showing positive results for projects, especially the culverts and backfilling projects. • The organic removal and air curtain projects may require additional restoration technologies to provide i00% restoration. 3. FDEP • Regulatory monitoring - DEP presentation today • Canal Monitoring - coordinating with County on implementing a water quality monitoring program for future canal projects after EPA funds expire per lot cost of O &M and the MSBU anticipated to reduce. ' B. Operations and Maintenance (O &M) - includes electricity, repairs, maintenance, and equipment replacement costs based on to year life cycle. C. MSBU - Assessment includes O &M Costs plus other County costs such as tax collector, admin fees, assessment collector, etc. D. Homeowners not responsible for O &M activities • Lot owners adjacent to the canal all pay an equal amount per lot • Homeowners can enjoy their newly improved canal without doing the repairs themselves or collecting funds from volunteers • County preserves its capital investment 5 Canal 266 Organic Removal and Air CUrt(IRn Dr's Arm, Big Pine Key litters Lane ILA Canal 287 Air Curtain Tropical Estates, Big Pine Key 'il 4 . Canal 290 Organic Removal and Air Curtain Avenue f, Big Pine Key Avenue J IF , Canal 83 Organic Removal, Backfilling and Air Curtain - Rock Harbor, Key Largo r° � 4 s mt` �a 7. Canal 277 Culvert Big Pine Key Canals 472/470 Culvert Mars & Venus Lanes, Geiger Key AV Canals 472/470 Culvert Mars & Venus Lanes, Geiger Key 4/11/2017 y A. Homeowners pay 100% of the O &M under MSBU assessment beginning November 2017. County pays $0. C. Cap the assessments at $200 annual. County pays $70,149 /year E. Delay assessment 1 year only. County pays $85,475 1 year only • FIU completes canal monitoring and final report, the technologies' effectiveness is evaluated • Staff researches options to lower the costs of the O &M • Residents pay 100% O &M beginning November 2018, $ TBD F. County transfers O &M responsibility to homeowners, they collect their own funds and provide their own O &M. County pays $0 G. No O &M performed. County pays $0 and removes the air curtains. Possibly maintain the 2 culverts. t8 9 Continue to GSG Presentation B. Cap the assessment at 50% annual. County pays $50,268 /year 4/11/2017 IJCIdy dJJC»IIICIIL 1 yCdl VIII-f. %.LPulIny Nays ,?W a,-+i.J L ycaI only • FIU completes canal monitoring and final report, the technologies' effectiveness is evaluated • Staff researches options to lower the costs of the O &M. New amount to be determined. • Residents pay 100% O &M beginning November 2018 END 10 4/11/2017 IwMa Fsobta Ab9Un4CM 24,621 151 5,624 1,402 10,738 5,875 ■lal.r 6Aimp79e0Pamakit Ab91 Nvis Ir�aatr u1.9asr rreA44.1 45 1,455 122 446 slut elr Me" YMCA M-1 WM.1 AMA...1 v bA.W C.bo." A.rraa C4.I s4n.r. T.rrb am Cab 482 4M a.Y4s11 49% A4 W A-0d A.KU "M aaCNMw M aryr+cW v%Mk%w#.U- M30 Sim Vol :159 :1377 $74977 5433 2a9GPKKD Ory—N Mwku4 0000 :1012 :1001 5701 :1154 $21.711 44.]0 787 BIG P44: BEY a rGL60A $20840 slat M 5118 $J.IV SUM 1400 1r10BIGPn aEY Oraticn.wl.tlAiOMn $1405 $743 5796 w $7B6 $18.750 13a 1W wbyAnC.ftbl h. er sn,05 ta.4a 117.0 9MM $316N ao9.a 7T70GPKKEY CAV :1600 190 :l.an :703 $155 $3]51 415 47OV472GDGERKEY OAe $1910 00 51.3M 5781 174 $3.60 5800 LIY. ►/50.174.x10 4408 of Ina SWA ma M.0 71141 "4425 1774 aka KAW $4M MOM 711M Mn4.wbe-* 4104431 124111 474257 C4.41'a4nx.YAW 14TY 41aY11 M a4a1 $14251 IwMa Fsobta Ab9Un4CM 24,621 151 5,624 1,402 10,738 5,875 48,417 6Aimp79e0Pamakit Ab91 Nvis 22305 45 1,455 122 446 2.315 26660 bbAhAIW&WPwub6MEY 42,7% 107 ?,079 1324 11,796 4120 7UM 71111 70,80 362 so 2,314 11167 1410 97 67 Souma GSM6Ad *bw Tax A* -- 77 :7 7 :1 11 Sumo9ry of Tax Pa99k A adog 4 NowkArgesnnls Ilk , 67111 W=r* MMaM61d UyWod MEAN Tdlb Impn AR l l9mek 9$40 141 2,097 745 176 L597 14,208 Unmpwwcanlpavk 2254 19 314 45 3 303 2936 Ca1PaeWs49FM1 4794 160 7,771 790 M 1,$00 17,146 4/11/2017 Monroe County, Florida Assessment Program to Fund Canal Maintenance Services April 12, 2017 S I G Government Services Group, Inc. www. WeServeGovernments. com Outline of Presentation rww. • Scope of Services • Demonstration Projects Technologies that require 0 &M • Capital and Operations & Maintenance Costs • Assessment Methodology • Assessment Costs • Assessment Rates • Next Steps 1 4/11/2017 www. Scope of Services GSG engaged to assist the County in developing and implementing a special assessment program to fund the ongoing canal operations and maintenance (0 &M) services within the six (6) Demonstration Projects that require ongoing 0 &M (Note: Canal #29 Key Largo Backfilling, does not require 0 &M and therefore will not be included in the assessment program) Demonstration Projects Technologies Canal Restoration Technology 29 KEY LARGO" Backfilling 83 ROCK HARBOR Organic Removal /Backfilling and Air Curtain 266 BIG PINE KEY Organic Removal and Air Curtain 287 BIG PINE KEY Air Curtain 290 BIG PINE KEY Organic Removal and Air Curtain 277 BIG PINE KEY Culvert 470/472 GEIGER KEY Culvert " Canal 29 does not require 0 &M; will not be included in assessment program a 2 4/11/2017 WWW. Assessment Methodology • Special benefit assumptions — Protecting and enhancing the property's value, use and enjoyment; — Promoting health, welfare, convenience and safety for all assessed property owners in the assessment area; — Stabilization of or the increase of property values; — Establishing and preserving adequate water access to all properties within the assessment area; — Improved appearance of the assessment area; and — Improved water quality in the canal • Based on the number of platted lots attributable to each tax parcel 6 3 WWW.Weserve Costs: Capital and Operations & Maintenance Canal Restoration Technology capital Costa Maintenance Costa 29 KEY LARGO Backfllling $1,360,000 $0 83 ROCK HARBOR Organic Removal /Backfilling and Air Curtain $1,500,000 $25,340 266 BIG PINE KEY Organic Removal and Air Curtain $1,300,000 $20,840 287 BIG PINE KEY Air Curtain $101,000 $20,840 290 BIG PINE KEY Organic Removal and Air Curtain $800,641 $14.855 277 BIG PINE KEY Culvert $424.000 $1,800 470/472 GEIGER KEY Culvert $199,000 $1800 Total $5.684,641 $85.475 5 WWW. Assessment Methodology • Special benefit assumptions — Protecting and enhancing the property's value, use and enjoyment; — Promoting health, welfare, convenience and safety for all assessed property owners in the assessment area; — Stabilization of or the increase of property values; — Establishing and preserving adequate water access to all properties within the assessment area; — Improved appearance of the assessment area; and — Improved water quality in the canal • Based on the number of platted lots attributable to each tax parcel 6 3 4/11/2017 Assessment Costs WWW. • Total annual maintenance (0 &M) costs for the 6 projects with 0 &M costs: — $81,875 for the Air Curtain Technology — $3,600 for the Culvert Technology. • Administrative Costs are the costs to reimburse the County for administering the assessment program and are calculated at five percent of the annual maintenance costs. • GSG Costs include the costs for the annual maintenance and update of the assessment roll. These costs are reimbursable through the assessment program and are $5,000. • Tax Collector costs are the costs for the County to bill and collect the assessments using the tax bills mailed annually around November 1St by the Monroe County Tax Collector and are $1,000 for any assessment program with less than 2,000 records. • Statutory Discount reflects a five percent reserve for the under - collection of assessments due to the discount on annual property tax bills allowed for property owners that pay prior to March 1St E WWW.Weserve Assessment Methodology - Platted Lots Per Canal Number of Platted Canal Restoration TechnoloaY Lots 83 ROCK HARBOR Organic Removal /Backfilling and Air Curtain 34.33 266 BIG PINE KEY Organic Removal and Air Curtain 44.10 287 BIG PINE KEY Air Curtain 26.00 290 BIG PINE KEY Organic Removal and Air Curtain 13.00 277 BIG PINE KEY Culvert 44.25 470/472 GEIGER KEY Culvert 58.00 7 Assessment Costs WWW. • Total annual maintenance (0 &M) costs for the 6 projects with 0 &M costs: — $81,875 for the Air Curtain Technology — $3,600 for the Culvert Technology. • Administrative Costs are the costs to reimburse the County for administering the assessment program and are calculated at five percent of the annual maintenance costs. • GSG Costs include the costs for the annual maintenance and update of the assessment roll. These costs are reimbursable through the assessment program and are $5,000. • Tax Collector costs are the costs for the County to bill and collect the assessments using the tax bills mailed annually around November 1St by the Monroe County Tax Collector and are $1,000 for any assessment program with less than 2,000 records. • Statutory Discount reflects a five percent reserve for the under - collection of assessments due to the discount on annual property tax bills allowed for property owners that pay prior to March 1St E 4/11/2017 5 www.weServs Assessment Rates for the Six Canals www. waserve Rates Total 0100% Of 08M Admin OSO Tax Collector Ststutory Total Annual Assessed Costs Annual Restoration Technoogy Costs Costs @5% Costs @$Sk Costs @ $ik Discount 05% Asswmsnt Lob Assmt/Lot Air Curtain Technology $81,875 $4,094 $2,673 $535 $4,459 $93,635 117.43 $797.37 Culvert Technology $3,600 $180 $2,327 $465 $329 $6.901 102.25 $67.49 9 5 www. waserve Alternative Assessment Rates for the Six Canals Rates Rates Rates Rant Total 0100% of costs 050% of costs @Annual 00% Of Costs 03M AssessedAnnual Assmt of $200 Annual Restoration Technology costs Lots Assmt/Wt Z : AeamVLot ca0 /Lot AssmVLOt Air Curtain TechnoloV $81,875 117.43 $797.37 $398.68 $200.00 $0.00 Culvert Technolop $3.600 102.25 $67.49 $33.75 $67.49 $000 County Contribution Required $0 $50,268 $70,149 $85.475 10 5 4/11/2017 www. Next Steps Assessment Ordinance Initial Assessment Resolution Mailed Notices to Property Owners Public Hearing to Adopt Rates Assessment Roll Certified Tax Bills Mailed May 17, 2017 May 17, 2017 May 31, 2017 June 21, 2017 September 15, 2017 November 2017 11 9