Okaloosa County BOCC — July 15, 2014 — 2014-07-15 Initial Assessment Resolution

OKALOOSA COUNTY, FLORIDA INITIAL ASSESSMENT RESOLUTION FOR THE OKALOOSA COUNTY BEACH RESTORATION PROJECT MUNICIPAL SERVICES BENEFIT UNIT FISCAL YEAR 2014-2015 ADOPTED JULY 15, 2014  RESOLUTION 14- A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF OKALOOSA COUNTY, FLORIDA, RELATING TO THE CONSTRUCTION AND FUNDING OF BEACH RESTORATION WITHIN THE BEACH RESTORATION MUNICIPAL SERVICE BENEFIT UNIT; PROVIDING RECITALS, AUTHORITY AND DEFINITIONS; ADOPTING THE INITIAL ASSESSMENT RESOLUTION; PROVIDING FOR THE ASSESSMENT ROLL; PROVIDING FOR THE IMPOSITION OF THE ASSESSMENTS TO FUND THE BEACH RESTORATION IN THE DESTIN SUBAREA; PROVIDING FOR COLLECTION OF THE ASSESSMENTS PURSUANT TO THE UNIFORM ASSESSMENT COLLECTION ACT; PROVIDING FOR THE EFFECT OF THIS RESOLUTION; PROVIDING SEVERABILITY AND AN EFFECTIVE DATE. WHEREAS, the Board of County Commissioners of Okaloosa County, Florida (the “County”) adopted Ordinance 07-71 on December 4, 2007 (the “Ordinance”), to create the Okaloosa County Beach Restoration Project Municipal Service Benefit Unit (the “MSBU”) and to authorize the imposition of special assessments to partially fund the Beach Restoration Project within the boundaries of the MSBU; and WHEREAS, the Ordinance has been amended periodically to remove certain areas from the boundaries of the MSBU and to exclude certain properties from the special assessments; and WHEREAS, pursuant to the Original Assessment Resolutions, the Assessments are to be collected over an eight (8) year Assessment Period, beginning in Fiscal Year 2008. Throughout the Assessment Period the methodology established in the Original Assessment Resolutions is to be applied within the boundaries of the MSBU established pursuant to the Ordinance; and 1  WHEREAS, at a duly noticed public hearing to be held on August 19, 2014, the Board will consider the adoption of the “Final Assessment Resolution.” Such Final Assessment Resolution would confirm the terms and provisions of this Initial Assessment Resolution and approve the final Assessment Roll for Fiscal Year 2014- 2015. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF OKALOOSA COUNTY, FLORIDA, AS FOLLOWS: SECTION 1. RECITALS. The above recitals are adopted and incorporated as part of this Resolution. SECTION 2. AUTHORITY. This Initial Assessment Resolution (“Resolution”) is adopted pursuant to the Ordinance, Chapter 125, Florida Statutes, Article VIII, Section 1, Florida Constitution, and other applicable provisions of law. SECTION 3. DEFINITIONS. All capitalized words and terms not otherwise defined herein shall have the meanings set forth in the Ordinance. As used in this Resolution, the following terms shall have the following meanings, unless the context hereof otherwise requires: "Assessment" means an annual special assessment imposed against property located within the Destin Subarea of the MSBU to fund the Project Cost of Beach Restoration within that subarea, and related expenses. "Assessment Coordinator” means the Director of the Okaloosa County Tourist Development Department, or his designee, to administer and coordinate Assessments. "Assessment Period" means the time period estimated by the County during which Assessments are imposed for any portion of the Obligations that remain 2 outstanding unless otherwise prepaid. The Assessment Period shall be established as eight (8) years commencing with Fiscal Year 2008. "Assessment Roll" means the non-ad valorem assessment roll, as amended and supplemented, relating to the Project Cost of the Beach Restoration within the Destin Subarea, and related expenses. "Beach Restoration" means the select clearing and grubbing, fill and sand mining, shoreline, berm, and dune stabilization and restoration, and provision of infill sand. "Board" means the Board of County Commissioners of Okaloosa County, Florida. "Building" means any structure, whether temporary or permanent, built for support, shelter or enclosure of persons, chattel, or property of any kind. "Capital Cost" means all or any portion of the expenses that are properly attributable to the acquisition, design, construction and installation (including demolition, environmental mitigation and relocation) of the Beach Restoration and imposition of the Assessments under generally accepted accounting principles; and including reimbursement to the County for any funds advanced for Capital Cost and interest on any interfund or intrafund loan for such purposes. "Collection Cost" means the estimated cost to be incurred by the County during any Fiscal Year in connection with the collection of Assessments. "County" means Okaloosa County, a political subdivision of the State of Florida. “County Administrator” means the administrative head of the County which the Board has authority to control or such person's designee. 3  "Dwelling Unit" means a building, or portion thereof, which is lawfully used for residential purposes, consisting of one or more rooms arranged, designed, used, or intended to be used as living quarters for one family only. “Feasibility Study” means the study adopted pursuant to Section 5(E) of this Resolution. "Final Assessment Resolution" means the resolution described in Section 10 of the Ordinance that imposes Assessments within the Destin Subarea of the MSBU. "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. "MSBU" means the Okaloosa County Beach Restoration Municipal Service Benefit Unit, a description of which is attached hereto and incorporated herein as Appendix A. “Obligations” means notes, bonds or other evidence of indebtedness secured by proceeds of the Assessments that are issued to finance the Project Cost. "Ordinance" means Ordinance 07-71, as amended. “Project” means the Beach Restoration of those portions of the beaches within the Destin Subarea and located within or adjacent to the boundaries of the MSBU which have been classified as critically eroded areas by the State of Florida. "Project Cost" means (A) the Capital Cost of the Beach Restoration, (B) the Transaction Cost associated with any Obligations attributable to the Beach Restoration, (C) interest accruing on such Obligations for such period of time as the County deems appropriate, (D) the debt service reserve fund or account, if any, established for the 4 Obligations attributable to the Beach Restoration, and (E) any other costs or expenses related thereto. "Property Appraiser" means the Okaloosa County Property Appraiser. "Tax Parcel" means a parcel of property to which the Property Appraiser has assigned a distinct ad valorem property tax identification number. "Tax Roll" means the real property ad valorem tax assessment roll maintained by the Property Appraiser for the purpose of the levy and collection of ad valorem taxes. "Transaction Cost" means the costs, fees and expenses incurred by the County in connection with the issuance and sale of any series of Obligations, including but not limited to (A) rating agency and other financing fees; (B) the fees and disbursements of bond counsel and disclosure counsel, if any; (C) the underwriters' discount; (D) the fees and disbursements of the County's financial advisor; (E) the costs of preparing and printing the Obligations, the preliminary official statement, the final official statement, and all other documentation supporting issuance of the Obligations; (F) the fees payable in respect of any municipal bond insurance policy; (G) administrative, development, credit review, and all other fees associated with any pooled commercial paper or similar interim financing program; and (H) any other costs of a similar nature incurred in connection with issuance of such Obligations. "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. 5  SECTION 4. INTERPRETATION. 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 of the other gender, unless the sense indicates otherwise. SECTION 5. LEGISLATIVE 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 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 Okaloosa County, Florida, has enacted the Ordinance providing for the creation of an MSBU and authorizing the imposition of Assessments to fund the construction of the Project to serve the property located therein. (C) The MSBU created two subareas, however, assessments are only imposed within the Destin Subarea, the proceeds of which are to be used to fund construction of the Project in that Destin Subarea. (D) The Project provides a special benefit to all property located within the Destin Subarea of the MSBU including improving and securing road access, protecting the natural environment associated with the beach, providing enhanced storm 6 protection, protecting and enhancing the market value and marketability of properties within the Destin Subarea of the MSBU, and enhancing the use and enjoyment of such property through the provision of aesthetic benefits and recreational beach amenities. The Project will provide property owners within the Destin Subarea of the MSBU with a greatly expanded beach area for their use and enjoyment. The presence of the beach also serves as a primary motivator for people to live in the Destin Subarea of the MSBU or to visit those properties. (E) The Board hereby adopts and incorporates by reference that certain study entitled “Okaloosa County Funding Feasibility Study for Beach Restoration on Okaloosa Island and City of Destin,” dated October 1, 2007, prepared by Coastal Tech (the “Feasibility Study”), including particularly the assumptions, methodology, conclusions and findings in such study as to the allocation of anticipated benefits and costs of the Project amongst properties within the Destin Subarea of the MSBU. The Feasibility Study is available for inspection at the Emerald Coast Convention & Visitors Bureau, located at 1540 Miracle Strip Parkway, Ft. Walton Beach, Florida 32548. (F) Since the benefits received by properties from the Project vary depending on the type of benefit and proximity to the Project, with all properties receiving a recreational benefit and with beachfront properties receiving a storm protection benefit, it is fair and reasonable for the County to establish separate Areas and apportion a share of the Capital Cost among the Areas as set forth in the Feasibility Study. (G) The Board finds that the treatment of hotel and commercial facilities within the boundaries of the MSBU as more fully described in the Feasibility Study is fair and reasonable based upon the respective benefits derived from the Project. Any 7 differences in the treatment of various property uses is based upon reasonable and appropriate differences existing between these properties as more fully discussed in the Feasibility Study. (H) The Board hereby finds and determines that the Assessments to be imposed in accordance with this Resolution provide an equitable method of funding the construction of the Project by fairly and reasonably allocating the cost to specially benefitted property based upon the relative degree of benefit attributable to each parcel as more fully described in the Feasibility Study. (I) Certain properties were excluded from the Project area and it would be inequitable for those properties to pay the assessments. Therefore, they are excluded from the Assessment Roll. (J) The Board hereby finds that each property within the Destin Subarea of the MSBU will be benefited by the construction of the Project in an amount not less than the Assessment imposed against such property, computed in the manner set forth in this Resolution and the Feasibility Study. SECTION 6. ASSESSMENT ROLL. The County Administrator is hereby directed to prepare a projected estimate of the Capital Cost of the Project and to prepare the Assessment Roll in the manner provided in the Ordinance. The Assessment Roll shall apportion that portion of the Project Cost to be funded by Assessments among the parcels of real property within the Destin Subarea of the MSBU, less those properties excluded from the Project (the “Excluded Properties”), as reflected on the Tax Roll in conformity with this Resolution and the Feasibility Study. The estimate of Capital Cost, the Feasibility Study, this Resolution and the Assessment 8 Roll shall be maintained on file in the offices of the County Administrator and open to public inspection. The foregoing shall not be construed to require that the Assessment Roll be in printed form if the amount of the Assessment for each Tax Parcel can be determined by use of a computer terminal available to the public. The Assessment Roll shall reflect that each Tax Parcel be assessed the same amount as assessed against that parcel for Fiscal Year 2013-2014. A copy of the updated Assessment Roll for Fiscal Year 2014-2015, this Resolution, and a copy of the Feasibility Study shall be made available for public inspection at the office of the County Administrator for 20 days prior to the public hearing. SECTION 7. PUBLIC HEARING. There is hereby established a public hearing to be held by the Board at 6:00 PM (CDT), August 19, 2014 at the Water & Sewer Building, 1804 Lewis Turner Boulevard, Fort Walton Beach, FL, or as soon thereafter as the matter can be heard, to accept public comment on the Assessments and the collection of such Assessments pursuant to the Uniform Method of Collection. SECTION 8. NOTICE BY PUBLICATION. The County Administrator shall publish a notice of the August 19, 2014, public hearing. The notice shall be published no later than twenty (20) days prior to the public hearing, in substantially the form attached hereto as Appendix B. SECTION 9. NOTICE BY MAIL. To the extent required, the County Administrator shall also provide notice of the public hearing by first class mail to the Owners of any assessable properties, only in the event circumstances described in Section 11 of the Ordinance so require. Such notices shall be in substantially the form 9 attached hereto as Appendix C and shall be mailed no later than twenty (20) days prior to the public hearing. SECTION 10. IMPOSITION OF ASSESSMENTS. Assessments shall be imposed against property located within the Destin Subarea of the MSBU, less the Excluded Properties, for each Fiscal Year of the Assessment Period, the amount of which shall be computed in accordance with the methodology set forth in the Feasibility Study. The apportionment methodology contained in the Feasibility Study is hereby approved and found to be a fair and reasonable method of apportioning the Capital Costs among the benefited properties. The Tax Parcels described in the Assessment Roll are hereby found to be specially benefited by the provision of the Beach Restoration Project in the amount of the annual Assessment set forth in the Assessment Roll. When imposed, the Assessment for each Fiscal Year shall constitute a lien upon the Tax Parcels located in the MSBU equal in rank and dignity with the lien of all state, county, district or municipal taxes and other non-ad valorem assessments. SECTION 11. REALLOCATION UPON FUTURE SUBDIVISION. If a Tax Parcel includes more than one parcel unit, the Assessment imposed against such Tax Parcel may be reallocated among parcels containing such parcel units upon (1) application of the Owner and (2) assignment of a distinct ad valorem property tax identification number to each parcel or any combination of parcels containing such parcel units by the Property Appraiser. SECTION 12. METHOD OF COLLECTION. The Assessments shall be collected pursuant to the Uniform Assessment Collection Act. 10  SECTION 13. 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 14. EFFECTIVE DATE. This Resolution shall take effect immediately upon its adoption. DULY ADOPTED this 15th day of July, 2014. BOARD OF COUNTY COMMISSIONERS OF OKALOOSA COUNTY, FLORIDA By: (SEAL) Charles K. Windes, Jr. Chairman ATTEST: By: Don Howard, Clerk APPROVED AS TO FORM AND CORRECTNESS: By: Gregory T. Stewart, County Attorney 11  APPENDIX A DESCRIPTION OF BOUNDARIES OF MSBU  Okaloosa County Beach Project Municipal Service Benefit Unit Destin West Assessment Area MATTIE M KELLY BLVD MAIN ST 30C 30D EEGGLLIN IN 98 30 30F N GULF OF MEXICO MAP PROJECTION: Lam bert Conform al Conic P rojec tion Okaloosa County, Florida Legend: Stateplane: Flor ida North (0903) NAD 1983(90), NAVD 1988. PUBLIC RECORD: This map was created by Ok aloos a County GIS and is in the public dom ain pursuant to Chapter 119, Flor ida Statutes . PROPERTY LINES DISCLA IME R: Okaloosa County hereby ex pressly dis claim s any liability f or errors or omissions in these maps, indexes or legends. MSBU BOUNDARY LINE PARCE L DISCLA IME R: This Property Ownership M ap was prepared Produced by: Okaloosa County GIS for appr aisal purposes only. It is not intended for conveyanc es, nor is it a survey. August 2012 Pr oject: \\gissv2\G ISpro je cts\ma pdoc s\TDC\De stinMSBU11x 17 Amen d8-1-2012.mxd, PDF: \\g issv2\GISp rojects\PDF docs\TDC\CDestin MSBU11x17 Ame nd8-1-2012.PDF, Scale: not to scale, Page Size: 11hx17w , MSBU Revised; 9/1/2012, By: K.Steele  DESCRIPTION OF BOUNDARIES OF MSBU The Destin Subarea included within the MSBU is defined as follows: Begin at the NW corner of The Dunes of Destin as recorded in the Official Records of Okaloosa County BK 13 PG 40; thence north along an extension of the west boundary of said subdivision to the intersection with the southerly right of way of U.S. Hwy 98; thence northwesterly along the southerly right of way of U.S. 98 to the NW corner of Sandpiper Cove Phase One BK 1 PG 146; thence southwesterly along the west boundary of Sandpiper Cove Ph 1 to the intersection with the water’s edge of Old East Pass Lagoon; thence along water's edge easterly, southerly, and westerly to the corner lot 124 Block F Holiday Isle BK 2183 PG 2854; thence continue along waters edge of East Pass and East Pass Towers Condo Ph 1, BK 1286 PG 1404; intersection with the water's edge of the East Pass and the Gulf of Mexico at the Destin Pointe Subdivision; thence southerly along the water's edge; thence easterly along the water's edge to the intersection with the west boundary of The Dunes of Destin; thence northerly along the west boundary to the point of beginning. Less that property between Reference Marker 20.7 and 23.5  APPENDIX B FORM OF NOTICE TO BE PUBLISHED  FORM OF NOTICE TO BE PUBLISHED To Be Published by [INSERT MAP OF MSBU SHOWING DESTIN SUBAREA] OKALOOSA COUNTY BEACH RESTORATION PROJECT MUNICIPAL SERVICE BENEFIT UNIT NOTICE OF HEARING TO IMPOSE AND PROVIDE FOR COLLECTION OF SPECIAL ASSESSMENTS WITHIN THE DESTIN SUBAREA Notice is hereby given that the Board of County Commissioners of Okaloosa County, Florida, will conduct a public hearing to consider reimposing non-ad valorem special assessments against parcels of property located within the Destin Subarea of the Okaloosa County Beach Restoration Project Municipal Service Benefit Unit (MSBU), and to collect the special assessments on the ad valorem tax bill for the Fiscal Year beginning October 1, 2014 and for the remainder of the assessment period. The amount of the assessment will be the same amount as levied for the last Fiscal Year. A public hearing will be held on August 19, 2014 at 6:00 p.m., in the Water & Sewer Building, 1804 Lewis Turner Boulevard, Fort Walton Beach FL, or as soon thereafter as the matter can be heard, for the purpose of receiving public comment on the proposed assessments, including the collection on the ad valorem tax bill. If you are a person with a disability who needs any accommodation to participate in this proceeding, you are entitled, at no cost to you, to the provision of certain assistance. Please contact the Board of County Commissioners at (850) 651-7105, or in writing to the Board of County Commissioners, 1804 Lewis Turner Boulevard, Suite 100, Ft. Walton Beach, Florida 32547, at least three days prior to the public hearing. All affected property owners have a right to appear at the hearing and to file written objections with the Board of County Commissioners within twenty days of the publication of this notice. If a person wishes to appeal any decision made by the Board of County Commissioners 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. The assessments are proposed to fund the restoration of the beach within the Destin Subarea of the MSBU ("Destin Restoration Project"). The assessment for each parcel of property will depend on the benefits accruing to the property based upon the B-1 parcel’s location in relation to the Destin Restoration Project, the number of dwelling units, the parcel size and the use of the property. All property being assessed within the Destin Subarea will be subject to a Recreation Area Assessment. Additionally, parcels being assessed within the Destin Subarea of the MSBU located on the beach shall be within the Storm Damage Reduction Area, and subject to an additional assessment. A more specific description of the methodology is contained in the Funding Feasibility Study. Additionally, as the amount of the assessment varies among the benefited properties through the consideration of various factors, the maximum annual amount of the assessment for each property also varies. Therefore, the maximum annual assessment for each specific property is contained in the updated Assessment Roll for the Fiscal Year commencing October 1, 2014. The Funding Feasibility Study, the updated Assessment Roll, the MSBU Ordinance and all relevant County resolutions are available for inspection at the Office of the County Administrator, 1804 Lewis Turner Boulevard, Suite 400, Ft. Walton Beach, Florida 32547, and at the Emerald Coast Convention & Visitors Bureau, located at 1540 Miracle Strip Parkway, Ft. Walton Beach, Florida 32548. The County intends to finance the Destin Restoration Project over a period of eight years, commencing with the 2008 Fiscal Year. The assessments will be collected in eight annual assessments on the ad valorem tax bill, pursuant to section 197.3632, Florida Statutes, beginning in November 2008 and continuing annually thereafter for the remainder of the assessment period. Failure to pay the assessments will cause a tax certificate to be issued against the property which may result in a loss of title. Questions regarding the assessment and the process for collection may be directed to (850) 651-7131. OKALOOSA COUNTY, FLORIDA BOARD OF COUNTY COMMISSIONERS B-2  APPENDIX C FORM OF NOTICE TO BE MAILED (IF REQUIRED)  FORM OF NOTICE TO BE MAILED (IF REQUIRED) __, 2014 Property Owner Name Property Address City ST Zip RE: Parcel Control Number: PIN Beach Restoration Municipal Service Benefit Unit Dear Property Owner: On December 4, 2007, the Okaloosa County Board of County Commissioners adopted Ordinance 07-71, as amended, creating the Okaloosa County Beach Restoration Project Municipal Services Benefit Unit (MSBU), which contains the Destin Subarea. The purpose of this MSBU is to provide for beach restoration in the Destin Subarea (Destin Restoration Project). The cost of the Destin Restoration Project will be funded by assessments against properties benefited by the Destin Restoration Project and by other revenues. The amount of the assessment for each parcel of property will depend on the benefits accruing to that property based upon the parcel’s location in relation to the Destin Restoration Project, the number of dwelling units, the parcel size and the use of the property. All property within the Destin Subarea of the MSBU will be included in the Recreation Area (REC Area) with a portion of the assessment costs allocated on a pro rata basis among the properties. Properties located on the beach within the Destin Subarea shall be included within the Storm Damage Reduction Area (SDR Area). Property within the SDR Area will be allocated a portion of the assessment costs based upon a point system which considers the above factors. The County intends to finance this assessment project. This will permit the costs attributed to your property to be amortized over the remainder of the total assessment period not to exceed eight (8) years beginning in 2008. The annual assessment on your property will include your share of principal, interest and collection costs. The maximum annual assessment proposed to be imposed on your property shall not exceed $ . The County intends to include the annual assessments on your ad valorem tax bill to be mailed in November, 2014 and will continue annually thereafter. Failure to pay the assessments will cause a tax certificate to be issued against the property which may result in loss of title. The total C-1 proposed assessment to be collected on all properties within the Destin Subarea of the MSBU is $ , inclusive of all administrative costs and statutory discounts over the total eight (8) year assessment period for the project commencing in Fiscal Year 2008. The Board of County Commissioners will hold a public hearing on August 19, 2014 at 6:00 p.m., in the Water & Sewer Building, 1804 Lewis Turner Boulevard, Fort Walton Beach FL, for the purpose of receiving comments on the proposed assessments, including collection on the ad valorem tax bill. You are invited to attend and participate in the public hearing or to file written objections with the County Commission prior to or during the hearing. If you decide to appeal any decision made by the Board of County Commissioners with respect to any matter considered at the hearing, you will need a record of the proceeding and may need to ensure that a verbatim record is made, including the testimony and evidence upon which the appeal is to be made. If you are a person with a disability who needs any accommodation or an interpreter to participate in this proceeding, you are entitled, at no cost to you, to the provision of certain assistance. Please contact the Office of the Board of County Commissioners at (850) 651-7105, or in writing to the Board of County Commissioners, 1804 Lewis Turner Boulevard, Suite 100, Ft. Walton Beach, Florida 32547. A copy of the updated Assessment Roll for Fiscal Year 2014-2015, the Final Report of the Funding Feasibility Study, the Ordinance, and all relevant County resolutions are available at the Office of the County Administrator, 1804 Lewis Turner Boulevard, Suite 400, Ft. Walton Beach, Florida 32547, and at the Emerald Coast Convention & Visitors Bureau, located at 1540 Miracle Strip Parkway, Ft. Walton Beach, Florida 32548. Questions regarding your assessment and the process for collection may be directed to (850) 651-7131. C-2