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HomeMy WebLinkAbout6/14/1991BOARD OF COUNTY COMMISSIONERS INDIAN RIVER COUNTY, FLORIDA AGENDA SPECIAL MEETING JUNE 14, 1991 9:00 A.M. - COUNTY COMMISSION CHAMBER COUNTY ADMINISTRATION BUILDING 1840 25th STREET VERO BEACH, FLORIDA COUNTY COMMISSIONERS Richard N. Bird , Chairman Gary C. Wheeler, Vice Chairman Margaret C. Bowman Don C. Scurlock, Jr. Carolyn K. Eggert James E. Chandler, County Administrator Charles P. Vitunac, County Attorney Jeffrey K. Barton, Clerk to the Board * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 9:00 AM 1. CALL TO ORDER 2. Discussion regarding Special Assessments ANYONE WHO MAY WISH TO APPEAL ANY DECISION WHICH MAY BE MADE AT THIS MEETING WILL NEED TO ENSURE THAT A VERBATIM RECORD OF THE PROCEEDINGS IS MADE WHICH INCLUDES THE TESTIMONY AND EVIDENCE UPON WHICHCTHE APPEAL WILL BE BASED. For - 3 PA.CE 5 t 5 JUN 14199 SPECIAL MEETING Friday, June 14, 1991 The Board of County Commissioners of Indian River County, Florida, met in Special Session at the County Commission Chambers, 1840 25th Street, Vero Beach, Florida, on Friday, June 14, 1991, at 9:00 o'clock A.M. Present were Richard N. Bird, Chairman; Gary C. Wheeler, Vice Chairman; Carolyn K. Eggert; Margaret C. Bowman and Don C. Scurlock, Jr. Also present were James E. Chandler, County Administrator; Charles P. Vitunac, County Attorney; and Barbara Bonnah, Deputy Clerk. The Chairman called the meeting to order. ASSESSMENT ALTERNATIVES - PRO'S AND CON'S Chairman Bird announced that today's workshop meeting was called for the purpose of discussing special assessment alternatives for water, sewer and paving projects with special attention being given to the 12th Street Water Service Project public hearing next Tuesday, June 18, 1991. Prior to the presention of the assessment scheduled for alternatives, Administrator Chandler wished to have Community Development Director Robert Keating give a brief overview of how this project ties into the requirements of the Comprehensive Plan with regard to the urban service areas. Director Keating advised that by 1995, 30 percent of the existing residential units must be connected to water. The Comp Plan also calls for the installation of public water and sewer to the eastern, urban area of the county by 2010. Utilities Director Terry Pinto advised that in an effort to meet the Comp Plan requirements, the Utilities Department is concentrating on subdivisions with "undersized" lots, such as those in the 12th Street Water Service Project. These substandard Tots are less than half an acre with existing wells and septic tanks. Once a new lot has public water, its minimum size can be one-quarter acre. The county is concentrating on the undersized lots because of public health reasons. By bringing water to these areas, the potential of well contamination from a septic tank is eliminated. Of the 610 lots in the 12th Street project, 358 of them, or 59 percent, are substandard lots. The County has POOK JUN 14.91 PAGE JUN 14 1051 BOOK 83 FAGS 577 a petition from 81 lot owners who want county water in their homes. The assessments cover the total cost of the construction of the distribution system, which is estimated at $827,825. The approximate boundaries of the project are 12th Street to the north, 8th Street to the south, 43rd Avenue on the west and 27th Avenue to the east. Administrator Chandler noted that in addition to considering the assessment methodologies, we will be exploring the feasi- bility of a more flexible plan for payment of the assessments, such as 10 years at 9-3/4o instead of the current payment plan of 2 years at 12%. However, the main concern today is the method of assessing the lot owners. Three alternatives will be discussed this morning: square footage basis, front footage basis, and per unit basis. The Board reviewed the following memo and charts: DATE: JUNE 12, 1991 TO: HARRY E. ASHER - ASSISTANT DIRECTOR OF UTILITY SERVICES FROM: WILLIAM F. McCAIN CAPITAL PROJECTS ENGINEER DAN CHASTAIN MANAGER OF SAS�iiENT PROJECTS SUBJECT: ASSESSMENT ALTERNATIVES - PRO'S AND CON'S Attached is a summary of the pro's and con's of the three assessment alternatives. SOUARE FOOT BASIS no's: 1. Most equitable in commercial and industrial application; addresses what ultimate use of property could be; i.e., size of lot a size of building. 2. Addresses house size to lot size in providing adequate pressure for fire flow and consumption; i.e., larger home needs potentially more flow and pressure. 3. Equitable in regard to lot size; the larger the lot, the more pipe constructed across front (generally). on's: 1. Some smaller homes on large-sized parcels of land (with perhaps good intentions) may feel they are not being treated equitably. 2. Doesn't address current land use (possibly existing Agricultural, for example). 2 FRONT FOOTAGE BASIS 1. A property owner with smaller frontage would pay less than an owner with greater frontage, regardless of overall property size, home improvement size, and water demand. 2. Directly addresses actual construction cost to cross (i.e., serve) said property. Con's: 1. Less equitable if neighboring/area properties have less frontage but are larger; i.e., greater depth, cul-de-sac properties, etc. 2. Does not address additional pressure or flow requirements necessary'for larger home on larger lot (for consumption or fire protection). PER UNIT BASIS Pro's: 1. A larger lot owner would not pay more than a smaller lot owner. 2. Addresses only current property use, lowering assessment on large undeveloped properties (see No. 1 of Con's). Gon,s: 1. If per unit used, do you address existing units or ultimate zoned number of units? If existing is used, the rest of the project picks up the cost of construction for ultimate use of that property; i.e., system must be constructed for the potential ultimate use of property. If the Utilities Department was to pick the difference between current use assessed and ultimate use assessed on larger tracts, for the purpose of future assessment at the time of development, the cost would have to be increased annually (at a set interest rate). Potentially, after enough years, the assessment could be more than the property value. 2. Some properties may have the size and potential of development 'of additional residences, rezoning potential, possibly including commercial, multi -family, etc. Larger, more expensive, replacement cost improvements have greater fire protection/water needs. 3 StAi 141991 BOOK 83 ME 5 7 MiN 14 14q1 EXHIBIT A VARIOUS ASSESSMENT METHODS COST ANALYSIS BOOK 83 FACE 57C C SQUARE SQUARE FT. FRONT FRONT UNIT UNIT LOCATION FOOTAGE METHOD FOOTAGE FOOTAGE $ METHOD METHOD $ LOT 1 26,866 $2,122.41 150 $2,129.55 1 $1,703.64 LOT 2 13,500 $1,066.50 75 $1,064.78 1 $1 ,703.64 LOT 3 27,000 $2,133.00 150 $2,129.55 1 $1,703.64 LOT 4 40,365 $3,188.84 225 $3,194.33 1 $1,703.64 LOT 5 26,960 $2,129.84 150 $2,129.55 1 $1,703.64 LOT 6 27,000 $2,133.00 150 $2,129.55 1 $1,703.64 LOT 7 27,000 $2,133.00 150 $2,129.55 1 $1,703.64 LOT 8 26,960 $2,129.84 150 $2,129.55 3 $5,110.93 215,651 $17,036.43 1,200 $17,036.43 10 $17,036.43 SQUARE FOOTAGE RATE = $.0790 VACANT LOTS = 6 UNITS PER ACRE 11 t LO' 26.066 . FT. -r I , !LOT 21 Lot3 I LOT 44 ; 1 ir ` I13.300 So. FT.I ` 27.`00. FT. I 140 365 S0. FT I o ol: to o l `0 1— tI M41•...,co / liTs a a I I I 1 I aI ii. I • 1 I I 1 75 _ ',x 1_75_75=j,__75' i_ 75 _i 75' I • 1 `'9- 50'i 75' I 150' T �) I I119 I 126,960 S0. FT. 1 1' LOT Ii >o 16 0 30 00 00 SCALI 21FOS i'= 30' 150' 150' 150' I 1 119 1 j 1 VACANT ' 1 II, 27.000 Sc. FT 1 27.000 S0. FT 1 26.960 So. FT. I I LOT6 LOT7 •LOT8 il! EXHIBIT A ZONING 6 UNITS PER ACRE 4 EXHIBIT B VARIOUS ASSESSMENT METHODS COST ANALYSIS SQUARE SQUARE FT. FRONT FRONT UNIT UNIT LOCATION FOOTAGE METHOD FOOTAGE FOOTAGE $ METHOD METHOD $ LOT 1 15,000 $1,185.00 LOT 2 15,000 $1,185.00 LOT 3 15,000 $1,185.00 LOT 4 15,000 $1,185.00 LOT 5 15,000 $1,185.00 LOT 6 25,390 $2,005.81 LOT 7 27,375 $2,162.63 LOT 8 102,052 $8,062.11 229,817 $18,155.54 100 $1,427.10 100 $1,427.10 100 $1,427.10 100 $1,427.10 100 $1,427.10 123.6 $1,763.89 25 $356.77 623.6 $8,899.38 1,272 $18,155.54 1 $756.48 1 $756.48 1 $756.48 1 $756.48 1 $756.48 3 $2,269.44 3 $2,269.44 13 $9,834.25 24 $18,155.54 SQUARE FOOTAGE RATE = $.0790 VACANT LOTS = 6 UNITS PER ACRE I t' t I 1750' 1 LOT 8 1 218.60• 1 % 102,052 S0. FT. I 1 " C I rl /1 H .• in t N LOT 71 r"10017 1001—[' - - 1001"-ioo' r" l00% ' — . ` 27.375 S0. FT. •' 15,000 S0. FT. 1 15.000 S0. FT. 1 15,000 SO. R. 1 15,000 S0. FT. 1 15,000 S0. FT. 1 •\ 218.60•• 1 I 1 1 1 1 1 joto 10 to jo _, in in in !1.2 in 25,390 So. FT. \'` . 1 t T 1-1 I LO1 21 LOT 3 _ ,LLOT 41 _ LOT _5_ _ LOT 6_ am 1 JUN 14J99 EXHIBIT B 5 BOOK 83 FALL bSO ;JUN 14 1991 EXHIBIT C VARIOUS ASSESSMENT METHODS COST ANALYSIS BOOK 83 PAGE I SQUARE SQUARE FT. FRONT FRONT UNIT UNIT LOCATION FOOTAGE METHOD FOOTAGE FOOTAGE $ METHOD METHOD $ LOT 1 37,900 $2,994.10 291.7 $4,347.82 1 $805.68 LOT 2 35,700 $2,820.30 275 $4,098.90 1 $805.68 LOT 3 13,960 $1,102.84 131 $1,952.57 1 $805.68 LOT- 90,000 $7,110.00 10 $149.05 12 $9,668.14 LOT 5 49,700 $3,926.30 406 $6,051.47 6 $4,834.07 LOT 6 37,900 $2,994.10 291.7 $4,347.82 5 $4,028.39 265,160 $20,947.64 SQUARE FOOTAGE RATE = $.0790 ___..____ T, 300' o • VACANT 1111•1110 111. R. L___0_11=••_____ =Li 70 7>a 1• • 30• LAT MR OW 411.IID GO 1,405 $20,947.64 26 $20,947.64 LAT 2 37.780 7G. R. W - 111•111•1•1 111.11•101.11. VACANT 0.700 7a. R. DO LOT 1 1 (, 37.I0>o. R. I I I 1 I I 1 I� 1 I= VACANT '!I 37•11,110 79. R. I 291.67. i EXHIBIT- C ZONING 16 UNITS PER ACRE 6 EXHIBIT D VARIOUS ASSESSMENT METHODS COST ANALYSIS SQUARE SQUARE FT. FRONT FRONT UNIT UNIT LOCATION FOOTAGE METHOD FOOTAGE FOOTAGE $ METHOD METHOD $ LOT 1 37,900 $2,994.10 291.7 $4,348.74 1 $4,190.41 LOT 2 37,900 $2,994.10 291.7 $4,348.74 1 $4,190.41 LOT 3 49,708 $3,926.93 406 $6,052.75 1 $4,190.41 LOT 4 49,708 $3,926.93 406 $6,052.75 1 $4,190.41 LOT 5 90,000 $7,110.00 10 $149.08 1 $4,190.41 265,216 $20,952.06 1,405 $20,952.06 5 $20,952.06 SQUARE FOOTAGE RATE = $.0790 300' 1 I 1 1 LOT 5 I0 0 1 MOOS fi. i7. 1 I 1 END .11101111. OM. 11.1. LOT 3 4$.7m S. R. 51 OD =0 300--------- • rauaPM 30• JUN 4 091 -r 1 1 ---_---_----_--- EXHIBITMP MmMilr D ZONING : 3 UNITS. PER ACRE 7 BOOK IM0--- 111 LOT 1 I I ; 37.930 m. FT. , I ;l; 1"31 A?' ••••••ii I I .IMMIOEM1=1. 000•11 Off/ Ill II I37.1110 �I' ..o. R. 1 LOT 2 ;,3111.7.1l FA6E.J32 JUN I4199. BOOK C� rAGE 55 After discussing the pros and cons of the various method- ologies for over one hour, Director Pinto recommended square footage as the most equitable way to calculate special assessments. Commissioner Scurlock was absolutely convinced that the square footage methodology was the most equitable, and Attorney Vitunac advised that the square -footage method is the only one that has been upheld by the Supreme Court of Florida. That was a case where a county was charging a dog track $1 -million for water and sewer for a parking lot, but the owner was arguing that it was going to be used only as a parking lot and would never have any facilities built on it. The Supreme Court said that the utilities improved the property because someday the property could be subdivided. Commissioner Scurlock realized there may be some inequities with the square footage methodology, but felt we would be far better off by looking at those situations on an individual basis through the Board of County Commissioners sitting as the Equalization Board rather than trying to come up with a Rube Goldberg approach that has never been tested in court. Director Pinto pointed out that the square footage assessment is not new. It goes back over 100 years. The reason they came to a square footage assessment is because other methodologies have failed. Commissioner Eggert noted that in the calls she's been getting people have been upset over the size of the impact fee as well as the assessment. She inquired if there had been any kind of explanation about the impact fee in the information that went out to the residents. Director Pinto advised that we have an information sheet that tells the amount of the impact fee and the cost for setting the meter, but there was some confusion in the very beginning of this project. The current total impact fee for water is $1320, but $502 of the impact fee pays for lines and storage in that system. So, in essence, that impact fee has reduced the assessment Commissioner Eggert was concerned that the explanation of the impact fees and the assessment costs just is not getting out to the people. It seemed to her that a little more information would be helpful. In fact, she understood that is what we were going to do when we talked about this a couple of years ago. Director Pinto suggested that if the Board decides to go with the square footage assessment and addressing the inequities through the Board of Equalization, we make up a little pamphlet 8 of all of our charges and include an explanation of the adopted method of assessment. For the record, Commissioner Bird gave the following recap: ... We are into this project because we were invited to take a look at this area by a petition request to provide service to this area. .., There is an area in the service area of undersized lots that mandates us under our Comp Plan to take a look at it for utility service. ... In starting to look at this area, it was determined that there would be other areas and properties that would benefit by the project if we were to service the area that petitioned for the service and the area of undersized Tots. That was the way staff came up with the overall project area and came up with an estimated cost to provide service to that area. ... Staff is recommending that the cost be passed back to the owners of property in that area through the square footage method of assessment. Once that assessment is determined for those particular properties, individual property_ owners who feel they must appeal that assessment will have the opportunity to appeal through the Board of County Commissioners sitting as the Board of Equalization at a public hearing scheduled at 9:00 o'clock A.M. on Tuesday, June 18, 1991. Chairman Bird hoped that prior to the public hearing on Tuesday there would be some kind of guidelines established for hearing any appeals that might be made, and Attorney Vitunac advised that the first guiding Tight is that the cost to the person's property does not exceed the benefit. The second guiding light is that his share of the cost should be proportional to that charged everyone else on the system. There cannot be favorites. The third guiding light, and this is important on the square footage method, is that whatever relief you give to one person, that same theory must be applied throughout the hearing. So, if the very first appeal is from an individual who wants to reduce his lot size and you give him relief, you must give everyone else that same relief. Therefore 9 POOK AR d 14 1991 BOOK 83 PAGE 585 the Board would have to make a finding right from the beginning not to give relief on the square footage method of assessment because they have determined fairness. The Board will look at other factors, but the property owners cannot argue any longer that they do not like the square footage method of assessment. Chairman Bird suggested that at the outset of Tuesday's public hearing Attorney Vitunac repeat the guidelines just given in order to inform any of the applicants what their burden of proof is. Commissioner Eggert understood that benefits are not just in terms of what the property is at the current time but benefits that could potentially happen to that property in the future. Attorney Vitunac explained that it encompasses all forms of benefits, such as increased value, etc., but Commissioner Eggert felt people think of it as what is there now and not the fact that they could divide their property or develop a larger acreage. Commissioner Scurlock pointed out that there is an economy to doing the project in terms of reading meters and in servicing the lines. It is a concise service area, and from that standpoint it ends up not inordinately impacting our system. There being no other questions of staff, Chairman Bird commended the Utilities staff on their presentation this morning. He felt it was very helpful and informative. There being no further business, on Motion duly made, seconded and carried, the Board adjourned at 10:30 o'clock A.M. ATTEST: Clerk Chairman