HomeMy WebLinkAbout2007-011ORDINANCE NO. 2007-011
AN ORDINANCE OF INDIAN RIVER COUNTY, FLORIDA
ESTABLISHING CHAPTER 214, CODE OF ORDINANCES;
IMPOSING A STATE ROAD 60 INTEREST SHARE FEE TO
RECOVER THE INTEREST LOSS INCURRED UNDER
,THE ADVANCE CONSTRUCTION OF SEGMENT
IMPROVEMENTS TO STATE ROAD 60 PURSUANT TO
ADVANCE CONSTRUCTION AGREEMENTS WITH THE
FLORIDA DEPARTMENT OF TRANSPORTATION;
PROVIDING THAT NEW DEVELOPMENT OCCURRING
WITHIN THE STATE ROAD 60 RADIUS OF INFLUENCE
SHALL PAY A STATE ROAD 60 INTEREST SHARE FEE
AS A CONDITION OF DEVELOPMENT APPROVAL;
APPROVING A TECHNICAL MEMORANDUM
CALCULATING THE STATE ROAD 60 INTEREST SHARE
FEE BASED UPON THE NEW TRIPS PROVIDED WITHIN
THE STATE ROAD 60 RADIUS OF INFLUENCE AS A
CONSEQUENCE OF THE CONSTRUCTION OF SEGMENT
IMPROVEMENTS TO STATE ROAD 60; DEFINING
CERTAIN TERMS; AND PROVIDING AN EFFECTIVE
DATE.
BE IT ORDAINED by the Board of County Commissioners of Indian River
County, Florida:
SECTION 1. CREATION OF CHAPTER 214, CODE OF ORDINANCES.
Chapter 214, Code of Ordinances of Indian River County, Florida is hereby adopted to
read as follows:
Section 214.01. Title. This Ordinance shall be known and may be cited as
the "State Road 60 Interest Share Fee Ordinance."
Section 214.02. Definitions. When used in this Ordinance, the following
terms shall have the following meanings unless the context clearly requires otherwise:
(a) As used in this article, the term "Advance Construction Agreements" shall
mean collectively: (1) that reimbursement agreement between the County and the
Florida Department of Transportation for the advance construction of the Segment One
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ORDINANCE NO. 2007-011
Improvements; and (2) that reimbursement agreement between the County and the
Florida Department of Transportation for the advance construction of the Segment Two
Improvements.
(b) As used in this article, the term "Building Permit" shall mean an official
document or certificate issued by the County, under the authority of ordinance or law,
authorizing the construction or siting of any building. 'Building Permit" shall also include
tie -down permits for those structures or buildings, such as a mobile home, that may not
require a Building Permit or other approvals that do not require any other type of permit
before the respective item may lawfully be occupied, used, or operated where the use of
such structures or buildings are anticipated to generate new Trips. "Building Permit,"
when used in the context of the use of land or water and in situations where a typical,
conventional permit is not issued by the County for the respective improvement or use,
such as for a golf course, where such use is anticipated to generate new Trips, means
whatever is the last written approval or permission issued by the County to authorize the
respective improvement.
(c) As used in this article, the term "Board" shall mean the Board of County
Commissioners of the County.
(d) As used in this article, the term "Comprehensive Plan" shall mean the
local government comprehensive plan adopted by the County pursuant to the provisions
of the Local Government Comprehensive Planning Act, Chapter 163, Part II, Florida
Statutes.
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ORDINANCE NO. 2007-011
(e) As used in this article, the term "Concurrency Management System" shall
mean the regulations incorporated in the Land Development Regulations of the County,
Chapter 910 of the County Code.
(f) As used in this article, the term "County" shall mean Indian River County,
Florida.
(g) As used in this article, the term "Director of Public Works" shall mean the
individual designated as the director of public works by the County, or such person's
designee.
(h) As used in this article, the term "Interest Component" shall mean the loss
in interest earnings by the County or costs of borrowing to enable the advance payment
of the principal amount required under the Advance Construction Agreement from
available County funds.
(i) As used in this article, the term "New Development" shall mean projected
construction or land improvements required to obtain a concurrency certificate under the
Concurrency Management System, or, if not required to obtain a concurrency
certificate, required to pay a Transportation Impact Fee.
0) As used in this article, the term "Segment One Improvements" shall mean
the improvements to that portion of State Road 60 from 66th Avenue to 82nd Avenue
which are the subject of an Advance Construction Agreement.
(k) As used in this article, the term "Segment Two Improvements" shall mean
the improvements to that portion of State Road 60 from 82nd Avenue to 1-95 which are
the subject of an Advance Construction Agreement.
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ORDINANCE NO. 2007-011
(1) As used in this article, the term "Segment Improvements" shall mean
collectively the Segment One Improvements and the Segment Two Improvements.
(m) As used in this article, the term "State Road 60 Interest Share Fee" shall
mean the fee calculated on a per new Trip, or fractional new Trip, basis for all New
Development occurring within the State Road 60 Radius of Influence imposed in
Section 214.06. The County de minimis Trip threshold (8 Trips/2-lane, 15 Trips/4+lane)
shall not exempt development from payment of the State Road 60 Interest Share Fee, if
any portion of the development falls within the State Road 60 Radius of Influence.
(n) As used in this article, the term "State Road 60 Radius of Influence"
means that geographic area or areas identified in the Technical Memorandum in which
the new Trips needed by New Development are anticipated to consume a portion of the
transportation capacity on State Road 60 to be created by the Segment Improvements.
(o) As used in this article, the term "Technical Memorandum" shall mean the
technical memorandum calculating the State Road 60 Interest Share Fee pursuant to
the Advance Construction Agreements incorporated by reference in Section 214.04.
(p) As used in this article, the term "Transportation Impact Fee" shall mean
the impact fee imposed pursuant to the Indian River County Traffic Facilities and Fair
Share Roadway Improvements Ordinance in Chapter 1010 of the County Code.
(q) As used in this article, the term "Trip" shall mean a one-way movement of
vehicular travel from an origin to a destination. The word Trip shall have the meaning
which it has in commonly accepted traffic engineering practices and may also include
fractional Trips, or portions of a whole Trip, as necessitated by the County concurrency
or building permit application procedure.
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Section 214.03. Findings. The Board hereby finds and determines:
(a) The anticipated transportation demands on State Road 60 will exceed the
level of service established in the Comprehensive Plan and thus applications for New
Development are anticipated to fail to meet the requirements of the Concurrency
Management System in accommodating new Trips within the State Road 60 Radius of
Influence.
(b) While the Segment Improvements will eliminate existing deficiencies and
create new Trip capacity within the State Road 60 Radius of Influence consistent with
the transportation projections contained and the level of services established in the
Comprehensive Plan, the State Road 60 Interest Share Fee constitutes a reasonable
estimation of the Interest Component to be incurred to provide new Trip capacity..
(c) Projected allocation of available Federal and State Funds in the five-year
Transportation Improvement Program adopted by the Indian River County Metropolitan
Planning Organization are insufficient to fund the Segment Improvements on a basis
concurrent with the projected demands for transportation capacity needed by New
Development within the State Road 60 Radius of Influence in a manner consistent with
the Comprehensive Plan.
(d) The County by resolution has determined to agree with the Florida
Department of Transportation to enter into Advance Construction Agreements providing
for the advance construction of the Segment Improvements conditioned upon the
advancement of their cost of construction by the County.
(e) The Advance Construction Agreements will provide for reimbursement to
the County from available State and Federal Funds of the principal amount advanced
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ORDINANCE NO. 2007-011
but do not provide or allow for any reimbursement to the County for the Interest
Component.
(f) The new Trip capacity of State Road 60 generated by the Segment
Improvements provides a direct nexus to New Development occurring within the State
Road 60 Radius of Influence under the assumptions contained in the Comprehensive
Plan and benefit such New Development in achieving compliance with the requirements
of the Concurrency Management System.
(g) It is fair, equitable and appropriate to place the burden of that portion of
the Interest Component for the Segment Improvements attributable to the provision of
new Trips capacity on New Development occurring within the State Road 60 Radius of
Influence rather than absorb the loss of such interest earnings or borrowing costs which
would otherwise be available to provide other essential services and infrastructure.
(h) The portions of the Technical Memorandum entitled "Summary of
Reimbursement Costs," "Trip Cost Allocation" and "State Road 60 Interest Share Fee
Calculation," including the utilization of a two (2) percent allocation adjustment increase
in the Interest Component in the State Road 60 Interest Share Fee calculation to
accommodate costs of collection, are hereby ratified and approved.
(i) The data set forth in the Technical Memorandum, which were employed in
the calculation of the State Road 60 Interest Share Fee to be imposed in conformance
with this Ordinance, are the most recent and localized data available.
Section 214.04. Adoption Of Technical Memorandum. The Technical
Memorandum calculating the State Road 60 Interest Share Fee pursuant to the
Advance Construction Agreements and attached hereto as Appendix A, is hereby
ORDINANCE NO. 2007-011
adopted and approved and incorporated in this Ordinance by this reference. The
portions of the Technical Memorandum entitled Summary of Reimbursement Costs, Trip
Cost Allocation and SR60 Interest Share Fee Calculation contained in the Technical
Memorandum are hereby ratified and confirmed by the Board.
Section 214.05. Imposition. After the effective date of this Ordinance, the
State Road 60 Interest Share Fee shall be imposed on New Development occurring
within the State Road 60 Radius of Influence within both the unincorporated and
municipal areas and shall be collected in the amount imposed, at the time provided and
in the manner calculated in Section 214.06.
Section 214.06. Payment.
(a) A State Road 60 Interest Share Fee in the amount of $7,677 per new
westbound Trip for the Segment One Improvements and $17,731 per new westbound
Trip for the Segment Two Improvements is hereby imposed on New Development within
the State Road 60 Radius of Influence.
(b) The number of new Trips to be consumed by each New Development of
the capacity provided in the Segment Improvements shall be individually calculated by
the Director of Public Works or documented in a new Trip generation study performed
specifically for New Development pursuant to a generally accepted standard traffic
engineering methodology approved in advance of the study preparation.
(c) The total State Road 60 Interest Share Fee to be paid by each New
Development shall be the number of new Trips so determined multiplied by the charge
per new Trip for each of the Segment Improvements as provided in this Section
individually determined by the Director of Public Works or pursuant to an approved new
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ORDINANCE NO. 2007-011
Trip engineering study as provided in this Section. In the event the new Trips so
determined result in a fractional new Trips calculation under the methodology applied in
the Technical Memorandum, such fractional new Trips shall be the factor multiplied by
the charge per new Trip for each of the Segment Improvements to determine the
applicable total State Road Interest Share Fee to be paid.
(d) The total State Road 60 Interest Share Fees so determined or calculated
shall be paid as a condition of the issuance of an initial concurrency certificate pursuant
to the Concurrency Management System or as a condition of the issuance of a Building
Permit at the time of the payment of the Transportation Impact Fee in the event the New
Development is exempted from compliance with the Concurrency Management System.
Section 214.07. Alternative Interest Share Fee Calculation. In the event
an owner of a New Development believes that the new Trips anticipated to be
consumed by the New Development within the State Road 60 Radius of Influence are
less than that individually calculated by the Director of Public Works pursuant to the
provisions of Section 214.06, such owner may file with the Director of Public Works an
alternative new Trips calculation for the New Development from an independent source
applying a generally accepted standard traffic engineering methodology performed by a
professional engineer licensed in the State of Florida with traffic engineering expertise.
If the Director of Public Works determines that the alternative calculation of the new
Trips as performed by a generally accepted standard traffic engineering methodology is
correct and in compliance with the requirements of this Section, an alternative State
Road 60 Interest Share Fee shall be calculated and paid. If the Director of Public
Works determines that the new Trips contained in such alternative calculation do not
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ORDINANCE NO. 2007-011
comply with the requirements of this Section, the Director of Public Works shall notify
the owner by certified mail, returned receipt requested, rejecting the alternative new
Trips calculation and the reason therefore. The owner may appeal the decision of the
Director of Public Works by following the procedures set forth in Section 100.06 of the
County Code. As a condition of the filing of an appeal, the owner of New Development
shall, prior to or at the time of the filing of an appeal, pay the State Road 60 Interest
Share Fee based upon the new Trips calculated by the Director of Public Works. Such
payment shall be deemed paid "under protest" and shall not be considered a waiver of
any review rights.
Section 214.08. Use Of State Road 60 Interest Share Fee Proceeds. The
State Road 60 Interest Share Fee payments shall be accounted for separately from
other County funds and shall be transferred periodically into the appropriate County
account to reimburse the interest loss incurred by such advance payment.
Section 214.09. No Developer Contribution Credit. Notwithstanding the
provisions of Section 1010.04 of the County Code relating to the calculation of credit
against the payment of Transportation Impact Fees, no credit shall be given against the
payment of Transportation Impact Fees as a consequence of the payment by New
Development of the State Road 60 Interest Share Fee.
Section 214.10. Construction Of State Road 60 Interest Share Fee. The
New Development subject to the State Road 60 Interest Share Fee shall be the New
Development that would be subject to payment of the Transportation Impact Fee and
exemptions to payment of the Transportation Impact Fee and adjustments in the
payment of the Transportation Impact Fee resulting from changes in use and shall be
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ORDINANCE NO. 2007-011
fully applicable to the obligation of New Development to pay the State Road 60 Interest
Share Fee.
SECTION 2. REFUND. If the County does not enter into an Advanced
Construction Agreement by December 31, 2007, then all monies collected under this
Ordinance shall be refunded.
SECTION 3. EFFECTIVE DATE. This Indian River County State Road 60
Interest Share Fee Ordinance shall become effective immediately upon its passage and
adoption by the Board and filing with the Secretary of State as provided by law.
This ordinance was advertised in the Press Journal on the 3rd day of March 2007, for a
public hearing on the 13th day of March 2007, at which time it was moved for adoption
by Commissioner 0' Bryan , and seconded by Commissioner
Wheeler , and adopted by the following vote:
Chairman Gary C. Wheeler
Vice Chairman Sandra L. Bowden
Commissioner Wesley S. Davis
Commissioner Peter D. O'Bryan
Commissioner Joseph E. Flescher
Aye
Aye
Aye
Aye
Nay
The Chairman thereupon declared the ordinance duly passed this 13th day of March,
2007.
Attest: J. K. Barton, Clerk
By )A�a4 Zell
Deputy Clerk
Approved as t for gal
S i ty�
William K. DeBraal
Assistant County Attorney
INDIAN RIVER COUNTY, FLORIDA
by its Board of County Commissioners
By I--'��
Gary C. W eler, Chairman
BCC Approved:
March 13, 2007
TU—
ACKNOWLEDGMENT by the Department of State of the State of Florida, this \c( day
of M r' -"c-''' , 2007.
FATally Data\General Data\WPDATA\PROJECTS\Indian River County\06121\Ordinance_Final_2.doc
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APPENDIX A
TECHNICAL MEMORANDUM
State Road 60 Interest Share Fee Ordinance
Technical Memorandum
Indian River County (County) and the Florida Department of Transportation
(FDOT) plan to enter into a joint participation agreement to advance the widening
of State Road 60 (SR60). The County desires to advance the SR60 widening to
an earlier date than would otherwise occur in the FDOT work program. The
County will advance the construction funding for the SR60 widening project, and
be repaid by the FDOT, without interest, at a later date. To recover the loss of
potential interest earnings on the advanced funds, the County plans to impose a
SR60 interest share fee to be imposed on new development impacting SR60.
This technical memorandum details the methodology used in formulating and
applying the SR60 interest share fee. The technical memorandum contains the
following four sections.
1. SR60 radius of influence
2. Summary of reimbursement costs
3. Trip cost allocation
4. SR60 interest share fee calculation
1. SR60 Radius of Influence
The SR60 radius of influence is defined as the geographic area in which traffic
generated by new development is anticipated to consume a portion of the
transportation capacity on SR60 created by widening SR60 from 4 -lanes to 6 -
lanes. The SR60 widening will be done in two segments. Segment One is
between 66th Avenue and 82"d Avenue. Segment Two is between 82nd Avenue
and 1-95.
The County's current radius of influence for new development is eight (8) miles.
The 8 -mile radius of influence has been conceptually approved by both the
County Planning and Zoning Commission and the Board of County
Commissioners. The 8 -mile radius of influence is planned for formal adoption by
the County with the upcoming modifications to Chapter 952 of the County Land
Development Regulations.
Applying the County standard, the SR60 radius of influence shall be fixed at a
distance of 8 miles. If any portion of a new development is located within 8 miles
of the SR60 Segment One (66th Avenue to 82nd Avenue) or Segment Two (82nd
Avenue to 1-95) improvements, then the entire development shall be subject to
the SR60 interest share fee for Segment One and/or Segment Two. The County
de minimus trip threshold (8 trips/2-lane, 15 trips/4+ lane) shall not exempt
development from payment of the SR60 interest share fee, if any portion of the
development falls within the 8 -mile SR60 radius of influence.
2. Summary of Reimbursement Costs
In accordance with the County / MOT advance construction agreement, the
County will pay $37,862,924 to the MOT in October, 2007 to move forward the
Segment One (66th Avenue to 82nd Avenue) widening project. MOT will repay
the Segment One funding to the County, without interest, in October, 2009. In
October, 2008, the County will pay an estimated $30 million to the MOT for the
Segment Two (82nd Avenue to 1-95) widening. The $30 million advance funding
will be repaid to the County, without interest, over a six-year period at $5 million
per year, beginning in October, 2011. A summary of the payments to and from
the MOT for both Segment One and Segment Two is shown in the table below:
Fiscal Year
Advances to FDOT
Payments from
FDOT
Balance Due from
FDOT
2007/08
$37,862,924
$37,862,924
2008/09
$30,000,000
$67,862,924
2009/10
$37,862,924
$30,000,000
2010/11
$30,000,000
2011/12
$5,000,000
$25,000,000
2012/13
$5,000,000
$20,000,000
2013/14
$5,000,000
$15,000,000
2014/15
$5,000,000
$10,000,000
2015/16
$5,000,000
$5,000,000
2016/17
$5,000,000
$0
Totals
$67,862,924
$67,862,924
----
The advance funding agreements will result in the loss of interest earnings on the
principal amounts advanced to the FDOT. County staff assumed an interest rate
of 4.5% for the lost interest calculation. This rate is slightly lower than the
average interest earned on County investments over the most recent 12 -month
period (4.93% for January, 2006 through December, 2006). The lost interest
earnings on the advances to MOT are tabulated on the next page.
2
Fiscal Year
Advances to
FDOT
Payments from
FDOT
Balance Due
from FDOT
Lost Interest
Earnings
2007/08
$37,862,924
$37,862,924
$1,703,832
2008/09
$30,000,000
$67,862,924
$3,130,504
2009/10
$37,862,924
$30,0001000
$1,567,545
2010/11
$30,0001000
$1,474,234
2011/12
$5,000,000
$25,000,000
$1,315,574
2012/13
$5,000,000
$20,000,000
$1,149,775
2013/14
$5,000,000
$15,000,000
$976,515
2014/15
$5,000,000
$10,000,000
$795,458
2015/16
$5,000,000
$5,000,000
$606,254
2016/17
$5,000,000
$0
$408,535
Totals
$67,862,924
$67,862,924
---1$13,128,226
The above table indicates the lost interest on the fund advances. There is
additional lost interest however due to the delayed repayment of the interest
share fee. Staff performed an analysis to determine the amount of additional
interest expense due to this repayment delay. In performing the analysis, staff
estimated an annual traffic growth rate of 5% on SR60, with half (50%) of the
SR60 traffic growth due to new development and the remaining half (50%) due to
background traffic growth.
Based on these projections, the net cumulative cash flow from the
advancements, along with the estimated revenues, results in an additional
interest expense of $1,040,613 through fiscal year 2016/17. Added to the
$13,128,226 in lost interest from the table above, the additional interest expense
raises the total lost interest in this project to $14,168,839.
Allowing for 2% uncollectibles, the total lost interest figure was finalized at
$14,452,216 ($4,345,404 for Segment One; $10,106,812 for Segment Two).
Traffic generated by new development, representing half (50%) of the traffic
increase, will be required to pay the interest share fee. The remaining half
(50%), consisting of background traffic growth, will not pay the interest share fee.
Because the background traffic on SR60 will not pay the interest share fee, staff
estimates that only 50% of the lost interest will actually be recovered. Once the
6 -lane capacity of SR60 is reached, the interest share fee can no longer be
collected because no additional concurrency applications from developers will be
approved.
3. Trip Cost Allocation
To determine the number of traffic trips upon which to allocate the lost interest
expenses, County staff subtracted the current 4 -lane capacity of SR60 from the
future 6 -lane capacity. For Segment Two, the calculation was straightforward.
The existing 4 -lane capacity is 2,000 vehicles per hour (peak hour, peak
direction/westbound) and the future 6 -lane capacity is 2,570 vehicles per hour.
The difference (2,570 minus 2,000) equals 570 vehicles. Consequently, the lost
interest expenses were allocated over 570 westbound vehicles, or trips.
The Segment One calculation was more complicated. Because Segment One is
presently over -capacity by 104 vehicles per hour, there initially appeared to be
fewer vehicles to absorb the lost interest expenses. This was offset however by
the lower signal -per -mile ratio on Segment One. The lower signal -per -mile ratio
resulted in a higher 6 -lane capacity (2,790 vehicles per hour) for Segment One.
After subtracting the existing 4 -lane capacity (2,120 vehicles per hour) and the
over -capacity amount (104 vehicles per hour) from the Segment One 6 -lane
capacity (2,790 vehicles per hour), the result was 566 vehicles. Consequently,
the lost interest expenses for Segment One were allocated over 566 westbound
vehicles, or trips.
4. SR60 Interest Share Fee Calculation
The Table on the following page summarizes the lost interest expenses (Section
2 of this Technical Memorandum) and the trip allocation analysis (Section 3) and
indicates the interest share fee per trip for both Segment One and Segment Two.
SR60 Segment One (66th Avenue to 82nd Avenue) = $7,677 per westbound trip
SR60 Segment Two (82nd Avenue to 1-95) = $17,731 per westbound trip
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State Road 60 Interest Share Fee Calculation
ASSIImPd Interact Rata = d 5no/
Available
Interest Loss
Interest Loss
2%
Capacity
Trips for
Interest
SR60 Segment
on FDOT
Advances
on Delayed
Payments
Uncollectible
Allowance
Total Interest
Loss
Increase (4-
lane to 6 -lane)
Trips Over
Capacity
Interest
Share
Share
per Trip
66th Ave. to 82nd Ave.
$3,641,131
$619,069
$85,204
$4,345,404
670
104
566
$7,677
82nd Ave. to 1-95
$9,487,095
$421,544
1 $198,173 1
$10,106,812
570 1
0 1
570 1$17,731