HomeMy WebLinkAboutAgenda Packet 03-21-2017 CAPE CANAVERAL CITY COUNCIL MEETING
Library Meeting Room
201 Polk Avenue, Cape Canaveral,Florida 32920
AGENDA
March 21, 2017
6:00 PM
CALL TO ORDER:
PLEDGE OF ALLEGIANCE:
ROLL CALL:
PUBLIC PARTICIPATION:
Any member of the public may address any items that do not appear on the agenda and any agenda
item that is listed on the agenda for final official action by the City Council excluding public hearing
items which are heard at the public hearing portion of the meeting,ministerial items (e.g. approval of
agenda, minutes, informational items), and quasi-judicial or emergency items. Citizens will limit
their comments to three (3) minutes. The City Council will not take any action under the "Public
Participation" section of the agenda. The Council may schedule items not on the agenda as regular
items and act upon them in the future.
CONSENT AGENDA:
6:15 p.m. 6:20 p.m.
1. Approve Minutes for February 21, 2017 Regular City Council Meeting.
2. Resolution No. 2017-04; authorizing an additional extension of time for the property
owners (Baugher and Lagges) to deliver to the City the Unity of Title Agreements in
executed and recordable form in accordance with Resolution No. 2016-03; providing for
repeal of prior inconsistent resolutions, severability and an effective date.
3. Approve Interlocal Agreement with Brevard County Property Appraiser (BCPA) and
Brevard County Tax Collector (BCTC), to contract with a third party vendor, Tax
Management Associates, Inc. (TMA), for the review of the validity of all residency-based
property tax exemptions; the City agrees to have 28% of the proceeds of the collections
paid to the vendor.
PUBLIC HEARING:
6:20 p.m. 6:30 p.m.
4. Ordinance No. 04-2017; establishing minimum dimensions for automobile parking spaces
within the City; providing for the repeal of prior inconsistent ordinances and resolutions,
severability, incorporation into the City Code and an effective date, first reading.
City of Cape Canaveral, Florida
City Council Meeting
March 21, 2017
Page 2 of 2
ITEM FOR DISCUSSION:
6:30 p.m. 6:40 p.m.
5. PACE Program Membership Discussion.
REPORTS:
6:40 p.m. 6:50 p.m.
ADJOURNMENT:
Pursuant to Section 286.0105, Florida Statutes, the City hereby advises the public that: If a person
decides to appeal any decision made by the City Council with respect to any matter considered at this
meeting,that person will need a record of the proceedings, and for such purpose that person may need
to ensure that a verbatim record of the proceedings is made, which record includes the testimony and
evidence upon which the appeal is to be based. This notice does not constitute consent by the City for
the introduction or admission into evidence of otherwise inadmissible or irrelevant evidence,nor does
it authorize challenges or appeals not otherwise allowed by law. In accordance with the Americans
with Disabilities Act: all interested parties may attend this Public Meeting. The facility is accessible to
the physically handicapped. Persons with disabilities needing assistance to participate in the
proceedings should contact the City Clerk's office (868-1220 x220 or x221) 48 hours in advance of
the meeting.
Item No. 1
CITY COUNCIL REGULAR MEETING
CAPE CANAVERAL LIBRARY MEETING ROOM
201 Polk Avenue,Cape Canaveral, Florida
TUESDAY
February 21,2017
6:00 PM
[DRAFT] MINUTES
CALL TO ORDER: The Chair called the Meeting to Order at 5:58 P.M. Council Member Betty
Walsh led the pledge of allegiance.
ROLL CALL:
Council Members Present:
Council Member Mike Brown
Mayor Bob Hoog
Mayor Pro Tem Brendan McMillin
Council Member Rocky Randels
Council Member Betty Walsh
Others Present:
City Manager David Greene
City Attorney Anthony Garganese
City Clerk Mia Goforth
Administrative/Financial Services Director John DeLeo
Capital Projects Director Jeff Ratliff
Community Development Director David Dickey
Culture and Leisure Services Director Gustavo Vergara
Economic Development Director Todd Morley
Public Works Services Director Ralph Lotspeich
Community Engagement/Deputy Public Works Services Director Joshua Surprenant
Brevard County Sheriff's Office Lieutenant Michael Green
Cape Canaveral Volunteer Fire Dept. Assistant Chief John Cunningham
PRESENTATIONS/INTERVIEWS: Proclamation supporting the Merritt Island National Wildlife
Refuge Community Conservation and Education Center: Mayor Hoog read the highlights of and
presented the Proclamation to Merritt Island Wildlife Association President Chris Fairey and Vice
President Laurilee Thompson. Discussion ensued regarding the allocation of money approved by
the United States Department of Interior, Fish and Wildlife to fund construction of the Center.
PUBLIC PARTICIPATION: Ray Osborne, 209 Holman Road, spoke about PACE (Property
Assessed Clean Energy) funding and read letters from citizens in favor of subscribing to the PACE
program. Discussion ensued and included how the Program is forthcoming and will be on the March
City Council Meeting Agenda with a positive recommendation from Staff.
City of Cape Canaveral, Florida
City Council Regular Meeting
February 21, 2017
Page 2 of 4
[DRAFT]
Accept the Annual Audited Financial Statements and Independent Auditor's Report for the Fiscal
Year ended September 30, 2016 — Presentation by Zach Chalifour, James Moore & Co: Zach
Chalifour, CPA, James Moore & Co., introduced himself and associates Caity Walker, Audit
Manager and Doug Gillikin, Senior Accountant; provided a summary presentation of the Annual
Audit for Fiscal Year ending September 30, 2016 and thanked City Council and Staff. Council
Members thanked Mr. Chalifour for his one-on-one meetings with each. City Manager Greene
suggested City Council formally accept the Audit Report. A motion was made by Mayor Pro
Tem McMillin, seconded by Council Member Walsh, for approval of the Annual Audited
Financial Statements and Independent Auditor's Report for the Fiscal Year ended
September 30, 2016. The motion carried 5-0 with voting as follows: Council Member Brown,
For; Mayor Hoog, For; Mayor Pro Tem McMillin, For; Council Member Randels, For and
Council Member Walsh, For.
CONSENT AGENDA: Mayor Hoog inquired if any items were to be removed from the Consent
Agenda for discussion.No items were removed.
1. Approve Minutes for January 17, 2017 Regular City Council Meeting.
2. Resolution No. 2017-02; in support of the 'Safe Cities, Safe Florida' initiative through the
Florida League of Cities, Inc. during the fiscal year 2016-2017; providing for the repeal of
prior inconsistent resolutions; severability and an effective date.
3. Resolution No. 2017-03; commending the Florida Association of City Clerks for its 45th
Anniversary; providing for the repeal of prior inconsistent resolutions; severability and an
effective date.
4. Approve Agreement between the City of Cape Canaveral and Space Coast Art Festival,
Inc. and authorize the Mayor to execute Agreement for same.
A motion was made by Council Member Randels,seconded by Mayor Pro Tem McMillin,to
approve the Consent Agenda. The motion carried 5-0 with voting as follows: Council
Member Brown, For; Mayor Hoog, For; Mayor Pro Tem McMillin, For; Council Member
Randels,For and Council Member Walsh, For.
PUBLIC HEARINGS:
5. Ordinance No. 03-2017; amending Sections 50-4 and 2-283 of the Cape Canaveral City
Code regulating sleeping and camping upon public streets and sidewalks,beach end streets,beach
dune crossovers, beaches and parks; providing for procedures to remove personal property
remaining in camp sites; providing for penalties; and providing for the repeal of prior inconsistent
ordinances and resolutions, incorporation into the City Code, severability and an effective date,
second reading: City Attorney Garganese read the title into the record and reviewed the item. The
Public Hearing was opened. There being no comment, the Public Hearing was closed. A motion
was made by Council Member Walsh, seconded by Council Member Randels, to adopt
Ordinance No. 03-2017 at second reading. The motion carried 5-0 with voting as follows:
City of Cape Canaveral, Florida
City Council Regular Meeting
February 21, 2017
Page 3 of 4
[DRAFT]
Council Member Brown, For; Mayor Hoog, For; Mayor Pro Tem McMillin, For; Council
Member Randels, For and Council Member Walsh, For.
REPORTS:
City Attorney Garganese advised the Southgate closing for property along North Atlantic Avenue
is final and the City now has possession of the easement property; the Amenities Easement
regarding the future Cumberland Farms has been recorded by the City Clerk's Office; the Puerto
del Rio road closing has been extended due to infrastructure in the right of way and may require
an easement granted back to the Homeowners Association from the City prior to closing,the details
of which will be worked out within the next sixty days.
Council Member Walsh thanked Staff for a presentation to residents of Villages of Seaport on
happenings in the City; mentioned the graffiti map placed on the website is working very well and
reported the Trash Bash and the City's Founders Day Spring Festival are both on April Pt.
Community Engagement/Deputy Public Works Services Director Surprenant provided details
regarding Keep Brevard Beautiful Trash Bash event; and the upcoming Community Brainstorm at
the Recreation Center.
Council Member Randels mentioned the bus route change at Polk Avenue; the new Space Coast
Area Transit App; the painting Mayor Hoog purchased from the Central Brevard Art Association
during the recent Fine Arts Show, is now displayed in City Hall; and various events in Brevard
County.
Council Member Brown thanked Staff for an excellent Friday Fest; congratulated Culture and
Leisure Services Director Vergara on the new addition to his family; praised Staff for the excellent
Sea Oats Planting event; stated he met with Florida Representative Bill Posey on Feb 1st and
discussed the half cent sales tax initiative; maintaining tax exempt status regarding municipal
bonds and the need for more privatized national flood insurance to help reduce rates for citizens.
Mayor Pro Tem McMillin congratulated Cultural Programs Manager Molly Thomas for her second
appointment by County Commissioner Barfield to the Brevard Historical Commission. Culture
and Leisure Services Director explained the Commission's mission is to preserve and enhance
cultural and historical resources in Brevard County. Mayor Pro Tem McMillin reported he and
Council Member Randels attended the Transit One Summit hosted by Space Coast Area Transit.
Items discussed were busses,general transportation issues in the County, the bike sharing program
in Cocoa Beach with Zagster and the initiative to include the City of Cape Canaveral and Port
Canaveral in the Program. He thanked the Auditors and Dr. Tom Friejo for the Strategic Planning
meeting.
Mayor Hoog requested Dr. Tom Friejo provide an overview of the Strategic Planning Process and
upcoming Retreat. Dr. Friejo thanked the City Council and Staff. Mayor Hoog praised the City
Council and Staff Team for all of the accomplishments made so far and stated he is looking forward
to the Retreat.
City of Cape Canaveral, Florida
City Council Regular Meeting
February 21, 2017
Page 4 of 4
[DRAFT]
ADJOURNMENT:
There being no further business, the Meeting adjourned at 6:51 P.M.
Mia Goforth, CMC, City Clerk Bob Hoog, Mayor
City of Cape Canaveral
[city seal] City Council Agenda Form
Meeting Date: 03/21/2017
Item No. 2
Subject: Resolution No. 2017-04; authorizing an additional extension of time for the property
owners (Baugher and Lagges) to deliver to the City the Unity of Title Agreements in executed
and recordable form in accordance with Resolution No. 2016-03; providing for repeal of prior
inconsistent resolutions, severability and an effective date.
Department: Community Development
Summary: At its March 22, 2016 Regular Meeting, City Council approved Resolution No.
2016-03 that provided for two separate divisions of land related to two adjoining parcels (24-
37-15-00-00752.0&24-37-15-00-00778.0)located along Astronaut Boulevard and the resulting
Unity of Title(UOT).A condition included in the Resolution required the executed and recorded
Unity of Title Agreements be submitted to the City within 90 days of adoption of the Resolution
(June 22,2016) or the Agreement would be deemed null and void.
As the property owners had not completed the sale by the June 22nd deadline, the Council at its
June 21, 2016 Regular Meeting, passed Resolution No. 2016-10 that extended the deadline 60
days to August 22, 2016. The City further extended the deadline 60 days with the passage of
Resolution No. 2016-16 on August 16, 2016.
According to documents submitted by the applicants,the real estate closing occurred on or about
November 22, 2016. Therefore, Resolution No. 2017-04 has been prepared to retroactively
extend the deadline to April 30,2017 which will provide additional time for the property owners
to deliver the Unity of Title Agreements to the City. All of the terms and conditions of
Resolution No. 2016-03 shall remain in full force.
Submitting Director: David Dickey [initials DD] Date: 3/13/17
Attachments:
1 - Site Aerial
2 -Resolution No. 2016-03
3 -Resolution No. 2017-04
Financial Impact: Cost of Resolution preparation and Staff time/effort to complete Agenda
Item.
Reviewed by Administrative/Financial
Services Director: John DeLeo [initials JD] Date: 3/13/17
The City Manager recommends that City Council take the following action:
Adopt Resolution No. 2017-04.
Approved by City Manager: David L. Greene [initials DLG] Date: 3/13/17
Attachment 1
[aerial picture]
Attachment 2
RESOLUTION NO. 2016-03
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CAPE CANAVERAL, BREVARD COUNTY, FLORIDA;
PROVIDING FOR TWO SEPERATE DIVISIONS OF LAND
RELATED TO TWO ADJOINING PARCELS OF LAND
LOCATED ALONG ASTRONAUT BOULEVARD AND
OWNED BY ROBERT A. BAUGHER, TRUSTEE, AND
KYRIACOS J. LAGGES AND MARIANTHI LAGGES,
TRUSTEE FOR PURPOSES OF ADJUSTING PROPERTY
BOUNDARIES FOR FUTURE DEVELOPMENT PERMIT
PURPOSES; PROVIDING FOR UNITY OF TITLE
AGREEMENTS TO ESTABLISH NEW LOTS OF RECORD
FOR DEVELOPMENT PERMIT PURPOSES; PROVIDING
FOR REPEAL OF PRIOR INCONSISTENT RESOLUTIONS,
SEVERABILITY,AND AN EFFECTIVE DATE.
WHEREAS, the City is granted the authority,under Section 2(b),Article VIII,of the State
Constitution,to exercise any power for municipal purposes, except when expressly prohibited by
law; and
WHEREAS, Robert A. Baugher, Trustee (hereinafter"Baugher") is the owner of certain
real property located adjacent to Astronaut Boulevard which has a Parcel Identification Number of
24-37-15-00-00752.0 (hereinafter referred to as "Baugher Property"); and
WHEREAS,Kyriacos J. Lagges and Marianthi Lagges, Trustee(hereinafter"Lagges") is
the owner of certain real property located adjacent to Astronaut Boulevard and adjacent to the
Baugher Property which has a Parcel Identification Number of 24-37-15-00-00778.0 (hereinafter
referred to as"Lagges Property"); and
WHEREAS, Lagges has submitted to the City a site plan application to construct an
expansion of the existing commercial parking lot on the Lagges Property to accommodate a
restaurant/bar expansion and tenant demands located and operating on the Lagges Property; and
WHEREAS,because Lagges' proposes to locate the parking lot expansion on a portion of
the Baugher Property, Lagges and Baugher have privately agreed, in furtherance of the Lagges'
site plan application and other mutual interests,to adjust the boundaries of the Baugher and Lagges
Properties by splitting and conveying to the other a small portion of their property for future
development purposes; and
WHEREAS, the City Council desires to recognize the aforesaid two lot splits and the
adjusted boundaries agreed to by Baugher and Lagges for future development permit purposes
including,but not limited to,the City's approval of the site plan application submitted by Lagges;
City of Cape Canaveral
Resolution No.2016-03
Page 1 of 4
and
WHEREAS,the two lot splits and adjusted property boundaries agreed to by Baugher and
Lagges are more particularly depicted and legally described herein; and
WHEREAS,the City Council of the City of Cape Canaveral fords that this Resolution is in
the best interests of the public health, safety, and welfare of the citizens of Cape Canaveral.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF CAPE
CANAVERAL HEREBY RESOLVES, AS FOLLOWS:
Section 1. Recitals. The foregoing recitals are deemed true and correct and are hereby fully
incorporated by this reference.
Section 2. Recognition and Approval of Lot Split Unity of Title.
(a) Subject to the conditions stated below, the City Council hereby recognizes and
approves for future development permit purposes, the two divisions of the real property generally
located along Astronaut Boulevard, and legally described in"Exhibit A" (hereinafter the"Lagges
to Baugher Lot Split") and Exhibit "B" (hereinafter the "Baugher to Lagges Lot Split"). Said
Exhibits are attached hereto and fully incorporated herein by this reference.
(b) The Lagges to Baugher Lot Split comprising of approximately 0.03 acres,more or
less, shall no longer be considered part of the Lagges Property for development purposes upon
conveyance of said property to Baugher.
(c) The Baugher to Lagges Lot Split comprising of approximately 0.15 acres, more or
less, shall no longer be considered part of the Baugher Property for development purposes upon
conveyance of said property to Lagges.
(d) As a condition of the two lot splits recognized and approved by this Resolution and
Lagges pending site plan approval for the expansion of the commercial parking lot, Baugher and
Lagges shall each be required to execute and record in the Official Records of Brevard County,
Florida, a Unity of Title Agreement, which will provide as follows:
(1) Lagges' Unity of Title Agreement shall aggregate the remaining portion of Lagges
Property (existing Tax Id. Property 24-37-15-00-00778.0 less the Lagges to Baugher Lot Split)
with the Baugher to Lagges Lot Split for purposes of creating a new lot of record for
development permit purposes. The new lot of record is legally described and depicted on
Exhibit "C," which is attached hereto and fully incorporated herein by this reference.
(hereinafter the"New Lagges Lot").
(2) Baugher's Unity of Title Agreement shall aggregate the remaining portion of
City of Cape Canaveral
Resolution No.2016-03
Page 2 of 4
Baugher's Property (existing Tax Id. Property 24-37-15-00-00752.0 less the Baugher to Lagges
Lot Split) with the Lagges to Baugher Lot Split for purposes of creating a new lot of record for
development permit purposes. The new lot of record is legally described and depicted on
Exhibit "D," which is attached hereto and fully incorporated herein by this reference.
(hereinafter the"New Baugher Lot").
The Unity of Title Agreements required by this Section (d) shall be fmalized by the City
Manager and City Attorney in a form substantially similar to the form attached hereto as Exhibit
"E."
(e) Upon recordation of this Resolution and Unity of Title Agreements in the Official
Public Records of Brevard County, Florida, the New Lagges Lot and the New Baugher Lot shall
each be deemed a lot of record for development permit purposes within the City of Cape Canaveral
pursuant to applicable law.
Section 3. Repeal of Prior Inconsistent Resolutions. All prior inconsistent resolutions
adopted by the City Council, or parts of prior resolutions in conflict herewith, are hereby repealed
to the extent of the conflict.
Section 4. Severability. If any section, subsection, sentence, clause, phrase, word or
provision of this Resolution is for any reason held invalid or unconstitutional by any court of
competent jurisdiction,whether for substantive,procedural,or any other reason,such portion shall
be deemed a separate, distinct and independent provision, and such holding shall not affect the
validity of the remaining portions of this Resolution.
Section 5. Instructions to Staff. The City Clerk in consultation with the City Attorney is
hereby directed to record this Resolution in the Official Public Records of Brevard County,Florida
at such time the fully executed and recordable Unity of Title Agreements have been delivered to
the City by Lagges and Baugher. At such time, the Community Development Director is hereby
directed to modify city maps and documents to reflect the new lots approved herein upon
recordation of this Resolution.
Section 6. Effective Date. This Resolution shall become effective immediately upon
adoption by the City Council of the City of Cape Canaveral. However,the Resolution shall not be
binding upon the affected properties described hereunder until recorded by the City in accordance
with the requirements of this Resolution. If the Unity of Title Agreements are not delivered to the
City in executed and recordable form within ninety (90) days of the adoption of this Resolution,
this Resolution shall automatically be deemed null and void.
[Signature Page Follows]
City of Cape Canaveral
Resolution No.2016-03
Page 3 of 4
ADOPTED by the City Council of the City of Cape Canaveral, Florida, this 22nd day of
March, 2016.
[signature]
Bob Hoog, Mayor
For Against
John Bond Motion
Mike Brown X
Bob Hoog X
Brendan McMillin Second
Betty Walsh X
ATTEST (City Seal).
Mia Goforth
City Clerk
Approved as to legal form and sufficiency for
the City of Cape Canaveral only:
ANTHONY A. GARGANESE, City Attorney
[signature]
City of Cape Canaveral
Resolution No.2016-03
Page 4 of 4
[Drawing of] SKETCH AND ACCOMPANING LEGAL DESCRIPTION
IN A PORTION OF SECTION 15, TOWNSHIP 24 SOUTH,
RANGE 37 EAST, BREVARD COUNTY, FLORIDA
LEGAL DESCRIPTION:
Parcel No. 2 (as prepared)
Commence at the intersection of the West right
of way line of State Road A-1-A, a.k.a.
Astronaut Boulevard, and the South boundary
line of Section 15, Township 24 South, Range
37 East, Brevard County, Florida, thence run
N37'21'20"W along the West right of way line of
State Road A-1-A a distance of 1500.00 feet
to the Point of Beginning; thence run N
89'2720W, parallel to the South of said
Section 15, a distance of 70.98 feet; thence
aforesaid West right of way line or State Road
A-1-A: thence run 537'21'10"E, along said West
right of way line a distance of 44.15' to the
Point of Beginning. Said parcel contains 1226.75
Square feet, being 0.03 acres more or less.
[Drawing of] SKETCH AND ACCOMPANING LEGAL DESCRIPTION
IN A PORTION OF SECTION 15, TOWNSHIP 24 SOUTH,
RANCE 37 EAST, BREVARD COUNTY, FLORIDA
LEGAL DESCRlPIION:
Parcel No. 1 (as prepared)
A portion of that particular parcel of land as
described in Official Records Book 3359, at
Page 4184 of the Public Records of Brevord
County, Florida and more particularly described
os follows:
COnimence of the intersection of the West right
of way line of State Road A-1-A, a.k.a.
Astronaut Bo.levara. one the South bounda•y
line of Section 15. fownshp 24 South. Range
37 East. _Brevard County, Florida, thence run
N37'21'20-W along the 'West right of way line of
Stole Rood A-1-A a distance of 1,500.00
feet; thence run N 69'1.720"W, parallel to Ina
South of said Section 15, o tlistonce of 70.98
feet to the Point of Beginning; thence run
N52`6'15"W, a distance of 105.94'; thence run
NN3772.09-w. a distance of 36.13: thence run
N37'21'10"W, a distance of 74.03; thence run
589'27'20-E, o distance of 177.65' to the
of Beginning. Said parcel contains 6490.73 ,
square feet, being 0.15 acres more or less.
[Drawing of] SKETCH AND ACCOMPANING LEGAL DESCRIPTION
IN A PORTION OF SECTION 15, TOWNSHIP 24 SOUTH,
RANGE 37 LAST, BREVARD COUNTY, FLORIDA
LEGAL DESCRIPTION:
Parol No. 4 (as prepared)
A portion of that particular parcel of land as
described in Official Records Book 3359, at Page
4184 and Official Records Book 5456. at Page 7625
of the Public Records of Brevard County, Florida and
more particularly described as follows: Commence at
the intersection of the West right of way line of
State Rood A-1-A, 0.6.0. Astronaut Boulevard, and
the South boundary line of Section 15, Township 24
South, Range 37 East. Brevard County, Florida,
thence run N37'21'20-W along the West right of way
line of State Road A-I-A a distance of 1544.15
feet to the Point of Beginning; thence run S
52'16'15'W. a distance of 161.51 feet; thence run
N3772'09'W, a distance of 36.13 feet; thence run
552'37'St'W, a distance of .33.98 feet. thence run
N3T21't0'w, a distance of 184.22 feet, thence run
1452'37'51'E. a distance of 33.98 feet; thence run
S37.22'09'E, a distance of 36.13 feet; thence run
N52'38'50'5. a distance of 196.73 feet to the
aforesaid West right of way line of Stole Rope
A-1-A; thence run S37'21.10'E, along said West
right of way line, a distance of 218.85 feet to the
Point of Beginning. Sold parcel contains 41.832.34
square feet, being 0.96 acres more or less.
[Drawing of] SKETCH AND ACCOMPANING LEGAL DESCRIPTION
IN A PORTION OF SECTION 1 TOWNSHIP 24 SOUTH,
RANGE 37 EAST, BREVARD COUNTY, FLORIDA
LEGAL DESCRIPTION:
Parcel No. 3 (us prepared)
A portion of that particular parcel of land as
described in Official Records Book 3359, at Page
4184 and Official Records Book 5456, at Page 7625
of the Public Records of Brevard County, Florida and
more particularly described as follows:
Commence at the intersection of the West right of
way line of State Road A-1-A, a.k.a. Astronaut
Boulevard, and the South boundary line of Section
15, Township 74 South, Range 37 East, Brevard
County, Florida, thence run N3T21'10 W along the
West right of way line of State Road A-1-A a
distance of 1350.00 feet to the Point of Beginning;
thence run N 89'27'20'W, parallel to the South of
said Section 15, a distance of 300.00 feet; thence
run N37.21'10'W, a distance of 150.00 feet; thence
run 589'27'20T, a distance of 50.00 feet, thence
run 537.21'20't, a distance of 74.03 feet, thence
run N52'37'S1'F, a distance of 33.98 feet; thence
run S37'27'091, a distance of 36.13 feet; thence
run N52'16'15'E, a distance of 105.94 feet to the
aforesaid West right of way line of State Road
A-1-A; thence run 537.21'10'E. along said West
right of way line, a distance of 194.15 feet to the
Point of Beginning. Said parcel contains 30,106.65
square feet, being 0.69 acres more or less.
Resolution No. 2016-03
EXHIBIT"E"to Resolution No. 2016-
Prepared by and return to:
Anthony A. Garganese
City Attorney of Cape Canaveral
PO Box 2873
Orlando, Florida 32802
(407) 425-9566
Tax Parcel Id:
UNITY OF TITLE AGREEMENT
THIS UNITY OF TITLE AGREEMENT is executed this day of
, 2016, by and between ("Owner"), a ,
whose address is , Cape Canaveral, Florida, 32920; and the CITY
OF CAPE CANAVERAL, a Florida municipal corporation,whose address is 105 Polk Avenue,
Cape Canaveral, Florida 32920 (hereinafter "the City").
WITNESSETH:
WHEREAS, Owner owns a parcel of land located within the jurisdictional limits of the
City of Cape Canaveral which is identified as tax parcel identification number 24-37-15-00-
00 .0 ("Existing Parcel"); and
WHEREAS, Owner conveyed a small portion of the Existing Parcel ( acres more or
less) to an adjacent property owner, which is legally described in Exhibit "A" ("Conveyed
Property"); and
WHEREAS, Owner acquired a small portion of property ( acres more or less) from
the same adjacent property owner, which is legally described in Exhibit "B" ("Acquired
Property"); and
WHEREAS, Owner desires to adjust the boundaries of the Existing Parcel to account for
the Conveyed and Acquired Property in order to have the City recognize and approve a new lot
of record for future development permit purposes;and
WHEREAS, the new lot of record is legally described in Exhibit "C" ("New Parcel");
and
UNITY OF TITLE AGREEMENT
City of Cape Canaveral/
Page 1 of 4
Resolution No. 2016-03
Exhibit "E"
WHEREAS, Owner and City have agreed to record this Agreement to recognize that the
Owner will have unity of ownership and title in the New Parcel; and
WHEREAS, Owner and the City desire to have the New Parcel recognized by the City as
one(1) lot for development purposes under the City's land development regulations; and
NOW, THEREFORE, in consideration of the mutual covenants contained herein, the
receipt and sufficiency of which is acknowledged by the parties, the parties agree as follows:
1. Recitals. The foregoing recitals are true and correct and are hereby fully incorporated
into this Agreement by this reference.
2. The Property. Owner represents and warrants that it possesses fee simple title to the
New Lot which is legally described on Exhibit"C."
3. Representations of Owner. Owner hereby represents and agrees as follows:
A. Owner agrees, as a condition of future development permit applications submitted
to the City, that the New Lot described in paragraph 2 of this Agreement, upon
recording of this Agreement, shall be unified in ownership and title for
development purposes.
B. Owner further agrees to not sell, convey, or assign any interest in the New Lot,
which would cause the loss of unity of ownership or title, without first obtaining
the written consent of the City of Cape Canaveral. Nothing herein is intended to
prohibit or restrict the Owner from selling, conveying or assigning the New Lot as
a unified parcel of land or encumbering the New Lot with easements or other
interests in land that do not cause loss of unity or ownership of title.
C. Owner agrees and consents that this Agreement shall be recorded in the office of
the Clerk of Circuit Court in and for Brevard County,Florida, and that all costs of
recording shall be paid by the Owner.
D. Owner agrees that the provisions of this Agreement shall be binding upon the
heirs, personal representative, successors and assigns of Owner. This Agreement
shall run with the land.
[Signature pages follow]
UNITY OF TITLE AGREEMENT
City of Cape Canaveral/
Page 2 of 4
Resolution No. 2016-03
Exhibit "E"
IN WITNESS WHEREOF, the parties hereto caused this Agreement to be executed by
their duly authorized representatives as of the date first written above.
OWNER:
Print Name/Title:
STATE OF FLORIDA
COUNTY OF BREVARD
I HEREBY CERTIFY that on this day,before me,an officer duly authorized in the State
and County aforesaid to take acknowledgments,personally appeared
❑ to me known personally to be the persons described in the foregoing instrument, or ❑ who
have produced as identification.
WITNESS my hand and official seal in the State and County last aforesaid this
day of , 2016.
Notary Public
My Commission Expires:
UNITY OF TITLE AGREEMENT
City of Cape Canaveral/
Page 3 of 4
Resolution No. 7016-03
Exhibit "E"
THE CITY:
CITY OF CAPE CANAVERAL,
a Florida municipal corporation.
ATTEST:
Robert Hoog, Mayor
Angela Apperson, MMC
City Clerk
Approved as to legal form and sufficiency for the City only:
Anthony A. Garganese, City Attorney
UNITY OF TITLE AGREEMENT
City of Cape Canaveral/
Page 4 of 4
Attachment 3
RESOLUTION NO.2017-04
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CAPE CANAVERAL, BREVARD COUNTY, FLORIDA;
AUTHORIZING AN ADDITIONAL EXTENSION OF TIME
FOR THE PROPERTY OWNERS (BAUGHER AND
LAGGES) TO DELIVER TO THE CITY THE UNITY OF
TITLE AGREEMENTS IN EXECUTED AND RECORDABLE
FORM IN ACCORDANCE WITH RESOLUTION NO. 2016-
03; PROVIDING FOR REPEAL OF PRIOR INCONSISTENT
RESOLUTIONS, SEVERABILITY AND AN EFFECTIVE
DATE.
WHEREAS, the City is granted the authority, under Section 2(b), Article VIII, of the State
Constitution, to exercise any power for municipal purposes, except when expressly prohibited by
law; and
WHEREAS, pursuant to Resolution No. 2016-03, the City Council authorized a lot split
of real property subject to several terms and conditions; and
WHEREAS, one of the conditions requires that the affected real property owners (Baugher
and Lagges) deliver to the City executed Unity of Title Agreements in recordable form within 90
days of the effective date of Resolution No. 2016-03; and
WHEREAS, the City Council adopted Resolution No. 2016-10 and 2016-16 extending the
delivery date of the Agreements. However, the applicants did not complete the conveyance of the
subject properties until after the deadline imposed by the City to deliver the Agreements; and
WHEREAS, the City has recently been provided a copy of the recorded Warranty Deeds
executed by Baugher and Lagges, on or about November 22, 2016, to effectuate the lot split
authorized under Resolution No. 2016-03; and
WHEREAS, the property owners have requested additional time to deliver the Unity of
Title Agreements; and
WHEREAS, the City Council desires to grant the request for additional time in accordance
with the terms and conditions of this Resolution; and
WHEREAS, the City Council of the City of Cape Canaveral finds that this Resolution is
in the best interests of the public health, safety, and welfare of the citizens of Cape Canaveral.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CITY COUNCIL OF
THE CITY OF CAPE CANAVERAL, BREVARD COUNTY, FLORIDA, AS FOLLOWS:
Section 1. Recitals. The foregoing recitals are deemed true and correct and are hereby fully
incorporated by this reference.
City of Cape Canaveral
Resolution No.2017-04
Page 1 of 2
Section 2. Extension of Time to Deliver the Unity of Title Agreements.
(a) The City Council hereby grants an extension of time for Baugher and Lagges to
deliver the Unity of Title Agreements required by Resolution No. 2016-03 no later than April 30,
2017. If the Unity of Title Agreements are not delivered to the City in executed and recordable
form by the end of the extension period, Resolution No. 2016-03 shall automatically be deemed
null and void.
(b) All other terms and conditions set forth in Resolution No. 2016-03 not modified by
this Resolution shall remain in full force and effect.
Section 3. Repeal of Prior Inconsistent Resolutions. All prior inconsistent resolutions
adopted by the City Council, or parts of prior resolutions in conflict herewith, are hereby repealed
to the extent of the conflict.
Section 4. Severability. If any section, subsection, sentence, clause, phrase, word or provision
of this Resolution is for any reason held invalid or unconstitutional by any court of competent
jurisdiction, whether for substantive, procedural, or any other reason, such portion shall be deemed
a separate, distinct and independent provision, and such holding shall not affect the validity of the
remaining portions of this Resolution.
Section 5. Effective Date.This Resolution shall become effective immediately upon adoption
by the City Council of the City of Cape Canaveral.
ADOPTED by the City Council of the City of Cape Canaveral, Florida, this 21st day of
March, 2017.
ATTEST (City Seal): Bob Hoog, Mayor
Name FOR AGAINST
Mia Goforth, CMC, Mike Brown
City Clerk Bob Hoog
Brendan McMillin
Approved as to legal form and sufficiency Rocky Randels
for the City of Cape Canaveral only: Betty Walsh
Anthony A. Garganese, City Attorney
City of Cape Canaveral
Resolution No.2017-04
Page 2 of 2
City of Cape Canaveral
[city seal] City Council Agenda Form
City Council Meeting Date: 3/21/2017
Item# 3
Subject: Approve Interlocal Agreement with Brevard County Property Appraiser (BCPA) and
Brevard County Tax Collector (BCTC), to contract with a third party vendor, Tax Management
Associates, Inc. (TMA), for the review of the validity of all residency-based property tax
exemptions; the City agrees to have 28% of the proceeds of the collections paid to the
vendor; authorize the Mayor to execute the Agreement on the City's behalf.
Department: Legislative
Summary: The Homestead Property Tax Exemption, which is defined by the Florida
Constitution, is a valuable benefit for permanent Florida residents. Coupled with the Save Our
Homes cap, homeowners' savings on property taxes can climb into the thousands of dollars
annually. Due to its money-saving benefits, the Homestead Property Tax Exemption is ripe for
fraudulent or improper claims. A claim of improper homestead exemption shifts the burden of
property tax payments to other property owners and denies cities, school districts and other
taxing authorities of needed revenue.
Per the Brevard County Property Appraiser Homestead Background Memorandum (Attachment
1), the current method used by the BCPA for detecting possible homestead exemption fraud
relies primarily on reports from citizens and returned mail from the post office. The majority of
potential fraud cases come in as tips and complaints from the general public. They also rely
heavily on returned, undeliverable mail as that is a red flag that a homestead exemption is no
longer valid. The homestead fraud department has a staff of four plus a manager. In 2016, this
limited staff worked 988 cases generated by these reactive methods, resulting in 251 new liens
totaling $738,410 being filed and $1,140,876 being collected and paid to the taxing authorities
from previously filed liens. From 1999 through 2016, the investigative efforts of this staff have
resulted in $235 million in property value being returned to the tax roll countywide, with $5.6
million in back payments, penalties and interest collected via property liens per applicable state
statutes.
The BCPA and BCTC desire to contract with TMA for audit services which has helped to
recover millions in tax dollars for other counties. Findings will be returned to the BCPA so that
they can validate that the homestead was improper and file liens against parcels receiving
undeserved benefits.
By entering into an Agreement with the BCPA and BCTC, the City would agree to have 28%
of the proceeds of any tax, penalties and interest collected from back taxes assessed or tax liens
filed paid to TMA. The City may opt out of this Agreement provided it notifies the BCPA and
BCTC in writing at least ninety (90) days before the end of the fiscal year. The Agreement shall
renew automatically on an annual basis until such time as the TMA Audit Agreement is
terminated or otherwise expires.
Staff recommends that Agreement for Use of Property Tax Collections to Fund Exemption Audit
Services (Attachment 2)be approved.
Submitting Department Director John DeLeo [initials] Date: 3/10/17
City Council Meeting
Date: 3/21/2017
Item# 3
Page 2 of 2
Attachments:
1. Brevard County Property Appraiser Homestead Background Memorandum.
2. Agreement for Use of Property Tax Collections to Fund Exemption Audit Services.
3. Tax Management Associates, Incorporated and Brevard County, Florida, Agreement
for Provision of Exemption Audit Services for Tax Revenue Enhancement.
Financial Impact: Staff time to prepare this Agenda Item and cost of the Audit.
Reviewed by Administrative/Financial
Services Director: John DeLeo [initials] Date: 3/10/17
The City Manager recommends that City Council take the following action:
Approve Interlocal Agreement with Brevard County Property Appraiser (BCPA) and Brevard
County Tax Collector (BCTC), to contract with a third party vendor, Tax Management
Associates, Inc. (TMA), for the review of the validity of all residency-based property tax
exemptions; the City agrees to have 28% of the proceeds of the collections paid to the vendor;
authorize the Mayor to execute the Agreement on the City's behalf.
Approved by City Manager: David L. Greene [initials] Date: 3/13/17
Attachment 1
[brevard county seal] Dana Blickley, CFA
Brevard County Property Appraiser
P.O. Box 429
Titusville, FL 32781-0429
(321) 264-6700
www.BCPAO.us
MEMORANDUM
DATE: February 1, 2017
TO: Brevard County Taxing Authorities
FROM: Milo M. Zonka, Sr. Director, Finance & Administration [initials MMZ]
RE: Homestead Exemption Audit Agreement Background
The Homestead Property Tax Exemption, which is defined by the Florida Constitution, is a valuable
benefit for permanent Florida residents. Coupled with the Save Our Homes cap, homeowners' savings
on property taxes can climb into the thousands of dollars annually. Due to its money-saving benefits, the
Homestead Property Tax Exemption is ripe for fraudulent or improper claims. A claim of improper
homestead exemption shifts the burden of property tax payments to other property owners, and denies
cities, school districts and other taxing authorities of needed revenue.
Florida Statute 196.011 (9) provides a process for filing liens for back taxes, 50% penalties, and 15%
interest per annum for a period up to ten (10) years on parcels that receive undeserved homestead
exemption.The amounts collected are returned to the taxing authorities by the Tax Collector.The
Property Appraiser does not receive any portion of the funds collected under this statute.
The current method of detecting possible homestead exemption fraud relies primarily on reports from
citizens and returned mail from the post office.The majority of potential fraud cases come in as tips and
complaints from the general public. We also rely heavily on our returned, undeliverable mail as that is a
red flag that a homestead exemption is no longer valid. Our homestead fraud department has a staff of
four plus a manager. In 2016, this limited staff worked 988 cases generated by these reactive methods,
resulting in 251 new liens totaling $738,410 being filed and $1,140,876 being collected and paid to the
taxing authorities from previously filed liens. From 1999 through 2016, the investigative efforts of this
staff have resulted in $235 million in property value being returned to the tax roll countywide, with $5.6
million in back payments, penalties and interest collected via property liens per applicable state
statutes.
There are many cases of homestead fraud that go undetected using these methods.There are new
technological developments in software and database mining that allow companies to run statistical,
mass data analysis that we do not have the capabilities to run.This software enables us to uncover
potential undeserved homestead exemptions by identifying property owners who receive benefits or
have indications of residence in other jurisdictions nationwide.
Continues on Page2
MEMO: Homestead Exemption Audit Agreement Background—Page 2
We desire to contract with a vendor who offers a service that has helped to recover millions in tax
dollars for other counties. They use their mass data analysis software to detect possible homestead
exemption fraud paired with their highly trained investigative staff to verify information. They then
return their findings to us so that we can validate that the homestead was improper and file liens
against parcels receiving underserved benefits.
We believe that a more aggressive and comprehensive discovery approach of improper homestead will
occur if we utilize a qualified third-party vendor versus increasing our staffing to more proactively work
this higher volume. We also believe that taxing authorities will receive a greater financial gain using this
approach despite the fact that a portion of the proceeds will be paid to the vendor(a maximum of 28%
of collected liens). If no liens are filed and paid, the vendor will not be paid.
This proposal will require the Property Appraiser and Tax Collector to execute an Interlocal Agreement
with each taxing authority in which the taxing authority agrees to have 28%of the proceeds of the lien
collections paid to the vendor, plus the Tax Collector's authorized reimbursement rate.
The Property Appraiser and Tax Collector have selected Tax Management Associates (TMA) as the
vendor for this project, using a piggyback on TMA's recent agreement with the Duval County Tax
Collector and Property Appraiser. TMA was selected as a result of Duval County's RFP process and is an
established market leader in this field. TMA currently contracts with Sarasota and Pinellas counties as
well, and we have received strong references from each. We are confident that TMA will execute their
portion of the project expeditiously and professionally.
We expect to achieve the necessary taxing authority agreement approvals by March/April 2017. TMA
will begin their work immediately and the Property Appraiser's review and approval effort will begin
thereafter. In order to maintain an orderly work flow, we will meter cases through the Property
Appraiser's office to ensure that both the Property Appraiser and Tax Collector can handle the workflow
without additional staffing. Based on the Property Appraiser's previous experience, it is anticipated that
taxing authorities will begin to see lien payments in 2017 that will continue into 2018 and beyond as
liens are paid off.
The proposal creates a funding mechanism to allow us to review the validity of all residency-based
property tax exemptions and should serve to decrease the number of exemptions that are improperly
claimed.A copy of the proposed Agreement between your agency and the Property Appraiser and Tax
Collector is attached as an action item for your consideration.
We respectfully request that you join us in our efforts to reduce the incidence of improper exemptions
by executing the attached Agreement.
For your review only, also included is a copy of the agreement between TMA and the Property Appraiser
and Tax Collector offices.
Titusville: 321-264-6700 Merritt Island: 321-454-6620 Viera: 321-690-6880 Melbourne: 321-255-4440 Palm Bay: 321-952-4574
Attachment 2
Agreement for Use of Property Tax Collections to Fund
Exemption Audit Services
THIS AGREEMENT ("Agreement") is made and entered into as of this day of
, 2017, by and between the BREVARD COUNTY PROPERTY APPRAISER
("PROPERTY APPRAISER"), BREVARD COUNTY TAX COLLECTOR ("TAX
COLLECTOR"), and the undersigned Local Governing Boards of the TAXING AUTHORITIES
of Brevard County,hereinafter referred to collectively as the "TAXING AUTHORITIES."
WHEREAS, the PROPERTY APPRAISER is responsible under Florida law for
the administration of ad valorem property tax exemptions, including homestead exemption, and
the preparing and filing of tax liens for back taxes related to the removal of undeserved exemptions;
and
WHEREAS, the TAX COLLECTOR is responsible under Florida law for the collection
and distribution of ad valorem property taxes, including back taxes and tax liens, and associated
penalties, fees, and interest; and
WHEREAS, the TAXING AUTHORITIES receive local property tax revenue to fund
essential public services; and
WHEREAS,the Parties to this Agreement recognize that there may be property owners on
the Brevard County tax roll claiming undeserved and/or fraudulent personal exemptions from ad
valorem property tax, such as the homestead exemption, (hereinafter collectively referred to as
"Personal Exemptions"), which reduces property tax revenue and unfairly shifts the property tax
burden to other property owners; and
WHEREAS, the PROPERTY APPRAISER and TAX COLLECTOR intend to contract
with TAX MANAGEMENT ASSOCIATES, INC. ("TMA") for audit services to identify
properties with undeserved Personal Exemptions for the purpose of collecting taxes due on those
properties, which funds would otherwise be unavailable to the TAXING AUTHORITIES
(hereinafter the "TMA Audit Agreement"); and
WHEREAS, TMA shall provide said audit services in exchange for the fee established in
the TMA Audit Agreement, which consists of an amount equal to twenty-eight percent (28%) of
any tax, penalties, and interest collected from back taxes assessed or tax liens filed by the
PROPERTY APPRAISER on parcels identified through a TMA audit as having undeserved
Personal Exemption(s) (hereinafter, the "Fee"); and
WHEREAS, the Fee shall be paid exclusively from the taxes, penalties, and interest
collected in relation to the removal of Personal Exemptions as a result of audits performed by
TMA, and shall not constitute a pledge or general obligation of tax funds or create an obligation
Page 1 of 5
on the TAXING AUTHORITIES to appropriate or make monies available for the purpose of this
Agreement beyond the fiscal year in which the Agreement is executed; and
NOW, THEREFORE, the PROPERTY APPRAISER, TAX COLLECTOR, and
undersigned TAXING AUTHORITY, for and in consideration of the mutual promises, covenants,
and conditions herein contained and other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, agree as follows:
TERMS
1. Incorporation of Recitals. The recitals set forth above are hereby incorporated into
and deemed a part of this Agreement.
2. Authorization of Reduced Collections for Fee Payment:
The undersigned TAXING AUTHORITY authorizes the TAX COLLECTOR to deduct
TMA's Fee, as established in the TMA Audit Agreement, from the total property tax, penalties
and interest collected as the result of the removal of Personal Exemption(s) pursuant to TMA
audits. The TAX COLLECTOR shall distribute the remaining tax revenue to the undersigned
TAXING AUTHORITY according to governing Florida law.
This Agreement does not constitute a pledge or general obligation of ad valorem taxation,
or create any obligation on any TAXING AUTHORITY to appropriate or make monies available
for any tax year, and does not create the right in any party to compel the exercise of the ad valorem
taxing power of any TAXING AUTHORITY.
The TAX COLLECTOR shall annually make available to each TAXING AUTHORITY
an accounting of all tax proceeds collected pursuant to the TMA Audit Agreement, the Fees paid
to TMA, and the total funds distributed to each TAXING AUTHORITY.
3. Term & Termination: This Agreement shall be effective as of the date of execution
for an initial term of twelve (12) months. Thereafter, the Agreement shall renew automatically on
an annual basis until such time as the TMA Audit Agreement is terminated or otherwise expires.
Upon termination or expiration of the TMA Audit Agreement, this Agreement automatically
expires except for such provisions as survive termination as further agreed herein.
Any TAXING AUTHORITY may opt out of this Agreement provided it notifies the
PROPERTY APPRAISER and TAX COLLECTOR in writing at least ninety (90) days before the
end of a fiscal year. The option shall be effective upon the first day of the following fiscal year.
The parties acknowledge that TMA audit services shall not be provided for any parcel in a
specific tax district if any TAXING AUTHORITY in that tax district does not sign, or subsequently
Page 2 of 5
withdraws from, an agreement or memorandum of understanding for use of property tax
collections to fund exemption audit services.
Upon termination of this Agreement, Fees for all audits completed by TMA in effected tax
districts up to the date of the notification of termination shall be payable in accordance with the
terms provided by the TMA Audit Agreement. Because tax liens may not be paid within the term
of this Agreement, the authorization of reduced collections for Fee payment shall survive the
termination of the Agreement, and shall terminate upon the later of the collection and payment of
all liens related to TMA audits, or the expiration of such liens as a matter of Florida law.
4. Severability: Should any provision, portion, or application of this Agreement be
determined by a court of competent jurisdiction to be illegal,unenforceable, or in conflict with any
applicable law or constitutional provision, or should future changes to Florida law conflict with
any portion of this Agreement, the parties shall negotiate an equitable adjustment in the affected
provisions of this Agreement with a view toward effecting the purpose of this Agreement, and the
validity and enforceability of the remaining provisions, portions, or applications thereof, shall not
be impaired. If a future change to Florida law conflicts with or preempts the entirety of this
agreement, the agreement will be immediately terminated, subject to the termination provisions
herein.
5. Public Records: The parties are public agencies subject to Florida's public records
laws, including records retention, production, and confidentiality provisions. The PROPERTY
APPRAISER and TAX COLLECTOR agree to retain all records maintained by their agencies and
associated with the performance of this Agreement in compliance with applicable Florida records
retention schedules, and to make all non-confidential or exempt records available for inspection or
copying upon request and in compliance with Florida's public records laws.
6. Liability: The PROPERTY APPRAISER retains sole discretion and authority to
grant,deny or remove exemptions, or file liens for undeserved Personal Exemptions in accordance
with Florida law.All legal costs involving appeals of the removal of Personal Exemptions resulting
from audits shall be the responsibility of the PROPERTY APPRAISER. The undersigned
TAXING AUTHORITY has no decision-making authority in relation to exemptions or liens under
this Agreement and assumes no liability for any claims, damages, losses, or expenses, direct,
indirect or consequential, arising out of or resulting from the actions of TMA, the PROPERTY
APPRAISER, or the TAX COLLECTOR under this Agreement or the TMA Audit Agreement.
7. Notice: Any notice required to be given under this Agreement shall be made in
writing and sent by first class mail, postage paid, or by hand delivery to, the contact and address
for the party as it appears on the signatory page of this Agreement.
8. Applicable Law: The terms and conditions of this Agreement shall be governed by
the laws of the State of Florida.
Page 3 of 5
9. Sole Benefit: This Agreement is for the sole benefit of the parties hereto, and in no
event shall this Agreement be construed to be for the benefit of any third party,nor shall any party
be liable for any loss, liability, damages or expenses to any person not a party to this Agreement.
10. Headings: Headings herein are for convenience of reference only and shall not be
considered in any interpretation of this Agreement.
11. Execution: The parties agree that this Agreement may be signed in counterparts.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by the proper officer of each, as of the date first written above.
PROPERTY APPRAISER:
DATE:
DANA BLICKLEY, CFA
PROPERTY APPRAISER
400 SOUTH STREET
TITUSVILLE,FL 32780
321-264-6700
APPROVED AS TO LEGAL FORM
For the Property Appraiser:
Signature:
TAX COLLECTOR:
DATE:
LISA CULLEN,CFC
TAX COLLECTOR
400 SOUTH STREET
TITUSVILLE,FL 32780
321-264-6969
APPROVED AS TO LEGAL FORM
For the Tax Collector:
Signature:
Page 4 of 5
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by the proper officer of each, as of the date first written above.
TAXING AUTHORITY
NAME:
AUTHORIZED SIGNATURE:
PRINT NAME:
TITLE:
DATE SIGNED:
PRIMARY CONTACT:
ADDRESS 1:
ADDRESS 2:
CITY, STATE, ZIP:
PHONE:
EMAIL:
APPROVED AS TO LEGAL FORM
For the TAXING AUTHORITY:
Signature:
Name & Title:
Page 5 of 5
Attachment 3
[FOR INFO ONLY-Watermark]
Tax Management Associates, Incorporated
& Brevard County, Florida
Agreement for Provision of Exemption Audit Services for Tax
Revenue Enhancement
This Agreement (the "Agreement") is made and entered into this day of
, 2017 by and between the BREVARD COUNTY PROPERTY
APPRAISER, with its principal place of business located at 400 South St. Titusville, FL
32780 ("PROPERTY APPRAISER"), the BREVARD COUNTY TAX COLLECTOR,
with its principal place of business located at 400 South St. Titusville, FL 32780 ("TAX
COLLECTOR"), and TAX MANAGEMENT ASSOCIATES, INC, TMA] a company
authorized to conduct business in Florida, to assist the PROPERTY APPRAISER
through the performance of audits to verify entitlement to personal xemptions from ad
valorem taxation granted on the County tax roll. The PROPERTY APPRAISER, TAX
COLLECTOR, and TMA are hereinafter jointly referred to as "Parties."
Contractual services may begin upon full execution of this contract.
WITNESSETH:
WHEREAS, the PROPERTY APPRAISER is responsible under Florida law for the
administration of ad valorem property tax emptions and the preparing and filing of tax
liens for back taxes related to the removal of undeserved exemptions; and
WHEREAS, the TAX COLLECTOR is responsible under Florida law for the
collection and distribution of ad valorem property taxes, including tax liens, and
associated penalties, fees, interest; and
WHEREAS THE PROPERTY APPRAISER desires to obtain services to Audit the
Brevard County tax roll (hereinafter "Audit Services") to identify undeserved personal
exemptions from ad valorem property tax. Such exemptions include, but may not be
limited to, the homestead exemption granted pursuant to Article VII, section 6 of the
Florida Constitution, and exemptions governed by Chapters 193 and 196, Florida Statutes
(hereinafter collectively "Personal Exemptions"); and
NOW, THEREFORE, in consideration of the promises mutually exchanged, the
Parties agree as follows:
1) INCOPORATION OF RECITALS. The recitals set forth above are hereby
incorporated into and deemed a part of this Agreement.
2) EXEMPTION AUDIT SERVICES
a. TMA agrees to furnish Audit Services to identify undeserved Personal
Exemptions on the Brevard County tax roll. The Audit Services provided by
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[FOR INFO ONLY-Watermark]
TMA will be performed in accordance with the terms and conditions in this
Agreement and in compliance with all applicable Florida law.
b. It is expressly agreed by the Parties that the PROPERTY APPRAISER shall
retain the final discretion to act on any and all Audit recommendations made by
TMA. The PROPERTY APPRAISER shall remove Personal Exemptions and
prepare and file tax liens in accordance with governing Florida law and
PROPERTY APPRAISER internal policies and procedures. The PROPERTY
APPRAISER retains the right to limit a lien to certain tax years, waive penalties
and interest, or revoke a lien, as allowed by Florida law. This Agreement does
not, and shall not be construed to delegate any of the PROPERTY APPRAISER’S
statutory duties, obligations, or decision-making authority related to the
administration of exemptions.
c. The PROPERTY APPRAISER shall assign properties to TMA for Audit Services
as may hereafter be deemed appropriate. TMA agrees that no TMA employee
will discuss any aspect of an Audit being performed, except with authorized TMA
personnel, authorized PROPERTY APPRAISER or TAX COLLECTOR officials,
and the property owner being audited (to the extent hereafter determined
appropriate by the PROPERTY APPRAISER), unless otherwise directed to do so
by the PROPERTY APPRAISER. All correspondence to property owners in
connection with audits will be signed by the PROPERTY APPRAISER or by its
authorized designee.
d. TMA agrees to audit all Personal Exemptions assigned for Audit for the most
current year and applicable prior years in compliance with Florida Statutes, which
provide for property tax liens for undeserved Personal Exemption for up to ten
(10) years.
e. The PROPERTY APPRAISER agrees to make available to TMA the Brevard
County tax roll of granted exemptions for the years for which audits are to be
performed. Additionally, as necessary, the PROPERTY APPRAISER may make
available copies of Personal Exemption applications and supporting documents,
or information provided in said applications, subject to confidentiality provisions
established by Florida law and addressed in Section (3), herein.
f. TMA agrees to provide training to designated employees of the PROPERTY
APPRAISER as to all aspects of the Audit Services provided pursuant to this
Agreement. Any appropriate designee of the PROPERTY APPRAISER may
perform an Audit with TMA personnel, provided the PROPERTY APPRAISER
shall be responsible for any related expenses of such PROPERTY APPRAISER
employee.
3) PUBLIC RECORDS RETENTION & CONFIDENTIALITY
a. The PROPERTY APPRAISER and TAX COLLECTOR are public agencies
subject to Florida’s Public Records Law, including records retention, production,
and confidentiality provisions.
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b. TMA and its employees and agents shall be bound by all applicable public
records laws to the same extent that those laws apply to the PROPERTY
APPRAISER and TAX COLLECTOR, (collectively the “public agency”). These
requirements include but may not be limited to those stated in Chapter 119,
Florida Statutes, and Sections 193.114 and 193.074 Florida Statutes, under which
social security numbers, Personal Exemption applications and supporting
documents and any information provided within the application or supporting
documents, are CONFIDENTIAL and EXEMPT from disclosure.
c. Specifically, TMA agrees to
i. Keep and maintain public records required by the public agency to
perform the Audit Services.
ii. Upon request from the public agency’s custodian of public records,
provide the public agency with a copy of the requested records or allow
the records to be inspected or copied within a reasonable time at a cost
that does not exceed the cost provided by law.
iii. Ensure that public records that are exempt or confidential and exempt
from public records disclosure requirements are not disclosed except as
authorized by law for the duration of the term of this Agreement and
following completion of the contract if the contractor does not transfer
the records to the public agency.
iv. Upon completion of this Agreement, transfer, at no cost to the public
agency, all public records in possession of TMA or keep and maintain
public records required by the public agency to perform the Audit
Services. If TMA transfers all public records to the public agency upon
completion of this Agreement, TMA shall destroy any duplicate public
records that are exempt or confidential and exempt from public records
disclosure requirements. If TMA keeps and maintains public records
upon completion of this Agreement, TMA shall meet all applicable
requirements for retaining public records. All records stored
electronically must be provided to the public agency, upon request from
the public agency’s custodian of public records, in a format that is
compatible with the information technology systems of the public
agency.
4) COSTS AND PAYMENT FOR AUDIT SERVICES:
a. For services furnished under this Agreement TMA shall be paid an amount equal
to twenty-eight percent (28%) of the gross taxes, penalties, and interest collected
by the Tax Collector in relation to the removal of Personal Exemptions as a result
of any audit performed by TMA (hereinafter the “Fee”).
i. The Property Appraiser shall file liens on properties submitted by TMA
as ineligible for the homestead exemption when the Property Appraiser
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has determined in his sole discretion that such properties are ineligible
for the exemption.
ii. If, prior to filing a lien, the Property Appraiser determines in his sole and
absolute discretion to not pursue the lien as such filing is not warranted
or not supportable in a court of law, then such audit services shall be
considered to not have produced any compensable service.
iii. If, after filing a lien, the Property Appraiser determines to remove or
delete, or otherwise abate amounts that are not properly owed on
homestead properties as previously determined to be ineligible for the
homestead exemption through the TMA audit, then TMA will not be
paid on such amounts meeting these criteria.
b. The Fee shall be calculated upon full or partial payment of any qualifying tax lien,
whether payment is made prior to or after recording of the lien, and shall be
calculated based on taxes levied by all taxing authorities in the tax district of the
audited property for each tax year, pursuant to associated Interlocal Agreements
with each taxing authority. If no Interlocal Agreement exists with a specific
taxing authority for whatever reason, the PROPERTY APPRAISER shall not
provide Personal Exemptions for that non-participating taxing authority to TMA
for Audit Services. The partial or full payment of any tax lien arising during a
period of non-participation by a taxing authority is not a qualifying tax lien, and
no portion of the collection of a non-qualifying tax lien shall be included in the
calculation of fees due TMA.
c. The Fee shall be paid exclusively from the taxes, penalties, and interest collected
in relation to the removal of Personal Exemptions as a result of audits performed
by TMA. The Fee shall not be payable from future ad valorem tax levies.
d. This Agreement does not constitute a pledge or general obligation of ad valorem
taxation, or create any obligation on any taxing authority to appropriate or make
monies available for the purpose of the Agreement for any tax year. This
Agreement does not create the right in any party to compel the exercise of the ad
valorem taxing power of any taxing authority, and does not impair the taxing
power of any taxing authority.
e. To facilitate TMA’s billing for audit fees, the Tax Collector agrees to provide
TMA a monthly report listing all taxes, penalties and interest collected as a result
of TMA’s audits. The report shall include the parcel number, property owner, site
address of the properties audited, total collected amount and the collection date.
This report, if possible, should be in spreadsheet format; if not available in
spreadsheet format, a system-generated report will be acceptable. TMA shall then
invoice the Tax Collector monthly for applicable Audit Fees based on the Tax
Collector’s monthly report. Audit Fees will be due and payable within fifteen
(15) days following the billing date.
f. If the TAX COLLECTOR distributes a TMA Fee based on a lien payment that is
subsequently reversed for any reason—including but not limited to a correction to
the tax roll, a final judgment in a lawsuit, or a bounced check—the TAX
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COLLECTOR provides notice to TMA and TMA shall return the Fee to the Tax
Collector. If, in a month immediately following the payment reversal, the total
balance of TMA Fees for the monthly distribution exceeds the Fee made pursuant
to the reversed payment (the “reversed Fee”), said reversed Fee will be withheld
from the monthly distribution. Any such withholding will be reflected in the
TAX COLLECTOR’S monthly report. If the balance of the TMA Fees in the
following month is not sufficient to cover the reversed Fee, the TAX
COLLECTOR will send TMA a bill for the remainder of the reversed fee, and
TMA will remit the full amount billed within 30 days. Regardless, the Tax
Collector may continue to withhold from payments owed to TMA such amounts
as necessary to recover all reversed Fees. Should a reversed payment be
subsequently repaid or otherwise restored for any reason, TMA retains the right to
the reversed Fee, which will be redistributed upon receipt by the
TAX COLLECTOR of a new payment, in full accordance with this Agreement.
g. Collections on all properties the Property Appraiser authorizes TMA to send a
Homestead Audit Questionnaire to that are identified by TMA as potentially
having received undeserved Personal Exemption(s) shall be construed to be the
result of the provided Audit Services and shall be subject to TMA’s Fee under
these payment provisions. However, no fee shall be paid on properties the
Property Appraiser identified as potentially having received undeserved Personal
Exemptions prior to providing TMA the Personal Exemption data file, or if the
PROPERTY APPRAISER discovers an undeserved Personal Exemption on a
property that was not identified by TMA as potentially having received
undeserved Personal Exemption(S), no Fee shall be paid in relation to that
property.
i. Each individual property, as denoted by the parcel identification number
on the property tax roll, shall be treated as a separate account under
these payment terms. Any individual account is severable and treated as
unique and distinct in terms of the amount owned to TMA for services
provided under this contract. Payments of the Fee for multiple accounts
may be made together provided that an accounting of the Fee for each
individual account is provided.
h. All expenses incurred by TMA in performing audits under this Agreement
including, but not limited to, travel, food, lodging, mileage, postage, salaries, etc.
shall be the responsibility of TMA. TMA shall maintain a sufficient workforce of
employees necessary to provide the contracted services, and there shall be no
additional compensation paid to TMA for said employees.
i. All legal costs involving appeals of the removal of Personal Exemptions resulting
from audits shall be the responsibility of the PROPERTY APPRAISER. TMA
shall be responsible for defending its audit findings throughout any appeals
process, as appropriate and necessary, without additional cost to the PROPERTY
APPRAISER. Defense of audit findings may include personal appearances at
meetings with property owners or their representatives, and provision of
testimony and evidence concerning information identified in an audit at any
administrative, judicial, or quasi-judicial hearings.
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5) TERMINATION
a. This Agreement shall become effective from the date entered above and shall
remain in effect for an initial term of twelve (12) months from the effective date
as specified in a Notice to Proceed letter issued to TMA by the PROPERTY
APPRAISER, and at the PROPERTY APPRAISER’S election, in his sole
discretion, shall continue in effect thereafter on a year-to-year basis, but not to
extend beyond April 12, 2021. After the initial term, any Party can terminate this
agreement by providing thirty (30) days’ notice of termination to the other Parties
in writing.
b. If through any cause, TMA, the PROPERTY APPRAISER, or the TAX
COLLECTOR fails to fulfill its obligations as provided by this Agreement, or
materially violates any of the covenants or stipulations within this Agreement, or
becomes unsatisfied with services rendered, and such failure or violation
continues for thirty (30) days after written notice thereof by a Party, any Party
shall thereupon have the right to terminate this Agreement immediately upon
giving written notice to the other Parties. Said notice shall be delivered to the
Parties by hand delivery or first class mail, postage paid to the mailing address as
specified herein under “Notice.”
c. In the event that the two largest county-wide taxing authorities terminate the
Interlocal Agreement or sufficient funds are otherwise not available to support
this Agreement for a new fiscal period, the PROPERTY APPRAISER shall notify
TMA of such occurrence and the Agreement shall terminate on the last day of the
current fiscal period without penalty or expense. In the event of such termination,
Fees for all Audits completed by TMA up to the date of the notification of
termination of the Interlocal Agreement or insufficient budgeted funds shall be
payable in accordance with the terms provided by this Agreement.
d. In the event of termination for any reason other than those specified in paragraph
5)c., all Audits assigned to TMA and on which TMA has initiated work or
expended resources, shall be completed by TMA and all Fees for completed
audits shall be payable in accordance with the terms as provided by this
Agreement. Because tax liens may not be paid within the term of this Agreement,
provisions related to the payment of Fees shall survive the termination of the
Agreement term, and shall terminate upon the later of the collection and payment
of all liens related to TMA audits, or five (5) years after a lien has been filed.
e. Upon completion of all Audits, TMA shall provide any records related to this
Agreement to the PROPERTY APPRAISER for record retention purposes, as
further addressed in Section (3), herein.
6) GENERAL PROVISIONS
a. INDEMNIFICATION: To the fullest extent permitted by law, TMA shall
indemnify, defend and hold harmless the PROPERTY APPRAISER, TAX
COLLECTOR, the taxing authorities, and their officials, agents, and employees,
from and against all claims, damages, losses and expenses, direct, indirect or
consequential (including, but not limited to, fees and charges of attorneys and
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other professionals and costs related to court action or arbitration) arising out of
or resulting from the performance of this contract or the actions of TMA or its
officials, employees, agents, or contractors under this Agreement or under any
agreements entered into by TMA in connection with this Agreement. This
indemnification shall survive the termination of this Agreement.
b. NON-DISCRIMINATION: TMA represents that it has adopted and will
maintain throughout the term of this Agreement a policy of nondiscrimination or
harassment against any person with regard to race, color, sex (including
pregnancy), sexual orientation, gender identity or expression, religion, political
affiliation, national origin, disability, age, marital status, veteran status, or any
other impermissible factor in recruitment, hiring, compensation, training,
placement, promotion, discipline, demotion, transfers, layoff, recall, termination,
working conditions and related terms and conditions of employment.
c. LAW CONTROLLING: The laws of the state of Florida shall control and
govern this Agreement.
d. NON-ASSIGNMENT: This Agreement is not assignable by any Party, by
operation of law or otherwise.
e. MODIFICATION: This Agreement may be modified only by a written
agreement executed by all Parties hereto.
f. ENTIRE AGREEMENT: This Agreement constitutes the entire agreement of
the Parties and no other agreement or modification to this agreement, expressed or
implied, shall be binding on any Party unless same shall be in writing and signed
by all Parties. This Agreement may not be orally modified. Any modifications
must be in writing, expressly titled a modification or addendum to this
Agreement, attached to this Agreement, and signed by all Parties.
g. SEVERABILITY: Should any provision, portion, or application thereof of this
Agreement be determined by a court of competent jurisdiction to be illegal,
unenforceable, or in conflict with any applicable law or constitutional provision,
or should future changes to Florida law conflict with any portion of this
Agreement, the Parties shall negotiate an equitable adjustment in the affected
provisions of this Agreement with a view toward effecting the purpose of this
Agreement, and the validity and enforceability of the remaining provisions,
portions, or applications thereof, shall not be impaired. If a future change to
Florida law conflicts with or preempts the entirety of this Agreement, the
Agreement will be immediately terminated, subject to the public records
provisions herein.
h. HEADINGS: The subject headings of the paragraphs are included for purposes
of convenience only and shall not affect the construction or interpretation of any
of its provisions. This Agreement shall be deemed to have been drafted by all
Parties, and no purposes of interpretation shall be made to the contrary.
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i. NOTICE: Any notices to be given or submitted by any Party to the others
pursuant to this Agreement shall be made in writing and sent by first class mail,
postage paid or by hand delivery to:
PROPERTY APPRAISER:
BREVARD COUNTY PROPERTY APPRAISER
400 South Street
Titusville, FL 32780
ATTN: Dana Blickley, Property Appraiser
TAX COLLECTOR:
BREVARD COUNTY TAX COLLECTOR
400 South Street
Titusville, FL 32780
ATTN: Lisa Cullen, Tax Collector
TMA:
TAX MANAGEMENT ASSOCIATES, INC
2225 Coronation Blvd.
Charlotte, NC 28227
ATTN: Richard Cooke, Jr., Chief Executive Officer
EXECUTED AND ENTERED INTO BY THE PARTIES HERETO.
PROPERTY APPRAISER AUTHORIZED SIGNATURE:
____________________________________ DATE: ______________________________
Dana Blickley
TITLE: As PROPERTY APPRAISER
BREVARD COUNTY PROPERTY APPRAISER
STATE OF FLORIDA
COUNTY OF BREVARD
The foregoing instrument was acknowledged before me this _________ day of _____________, 2017, by,
Dana Blickley as Brevard County Property Appraiser, who is personally known to me or has produced
____________ as identification. ____________
___________________________________
Notary Public Signature __________________ Notary Seal:
TAX COLLECTOR AUTHORIZED SIGNATURE:
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____________________________________ DATE: ______________________________
Lisa Cullen
TITLE: As TAX COLLECTOR
BREVARD COUNTY TAX COLLECTOR
STATE OF FLORIDA
COUNTY OF BREVARD
The foregoing instrument was acknowledged before me this _________ day of _____________, 2017, by
Lisa Cullen as Brevard County Tax Collector, who is personally known to me or has produced
____________ as identification. ____________
___________________________________
Notary Public Signature __________________ Notary Seal:
TMA AUTHORIZED SIGNATURE:
____________________________________ DATE: ______________________________
Richard Cooke, Jr.
TITLE: As CHIEF EXECUTIVE OFFICER
TAX MANAGEMENT ASSOCIATES, INC
STATE OF NORTH CAROLINA
COUNTY OF Mecklenburg
The foregoing instrument was acknowledged before me this _________ day of _____________, 2017, by,
__________________________ as __________________________ of ____________________________,
on behalf of the company, who is personally known to me or has produced ____________ as identification.
___________________________________
Notary Public Signature _______________ Notary Seal:
APPROVED AS TO LEGAL FORM AS TO
THE PROPERTY APPRAISER AND TAX
COLLECTOR ONLY BY THE
OFFICE OF GENERAL COUNCIL, BREVARD COUNTY
Signature: ________________________________
9
[City Seal] City of Cape Canaveral
City Council Agenda Form
City Council Meeting Date: 3/21/2017
Item No. 4
Subject: Ordinance No. 04-2017; establishing minimum dimensions for automobile parking
spaces within the City;providing for the repeal of prior inconsistent ordinances and resolutions,
severability, incorporation into the City Code and an effective date, first reading.
Department: Community Development
Summary:Currently,City Code states an offstreet parking space"consists of a minimum paved
area of 200 square feet for parking an automobile, exclusive of access drives or aisles thereto."
This is the only reference in the Code that provides any type of dimensional standard for a
parking space.Note that no minimum width or length for a space is included. This is not typical
of local government codes and creates an opportunity for unconventionally sized parking spaces.
The following table includes the dimensional parking space standards for a sampling of Florida
cities/counties:
[Table]
Location Width Length SQ.Ft.
Cape Canaveral n.a. n.a. 200
N.Miami Beach 9 18 162
Cocoa Beach 9 20 180
Cocoa 10 20 200
Melbourne 10 20 200
Titusville 10 20 200
Daytona Beach 9 19 171
Lakeland 9 18 162
Ocala 9.5 19 180.5
Brevard County 9 20 180
Parking spaces also vary in dimension by the layout/location of the space.A typical parallel parking
space is 10 feet wide by 24 feet long. This allows for the proper maneuvering of a vehicle. Many
jurisdictions allow for a certain percentage of total parking spaces to be designated as "compact" for
use by smaller vehicles.These spaces can be as small as 16 feet in length and 7.5 feet in width. Angled
parking varies by the angle of the space and the width of the aisle.
Any discussion about the minimum parking space size needs to include an understanding of the size
of today's vehicles. Throughout the last several decades,vehicle sizes have varied and in large part
have changed according to the prevailing gas price. The average mid-size sedan is approximately
71.4 inches by 190 inches. The average SUV is 78.2 inches by 208 inches and the average compact
car is 68.8 inches by 177 inches.
In the 1971 version of the City's Zoning Ordinance,the definition of an offstreet parking space
required a minimum of 200 square feet with minimum dimensions of 10 feet by 20 feet. In 1983,
an offstreet parking space required 200 square feet. There was no minimum width or height.
Also, for property zoned C-1 or M-1, sites that included more than 400 spaces could dedicate
up to twenty-five percent (25%) of those spaces for compact car parking. These spaces could
City Council Meeting
Date: 3/21/2017
Item No. 4
Page 2 of 2
consist of a minimum of 160 square feet. In 1994, the definition read the same as the 1983
version.
As indicated above, today's Code does not provide dimensional standards related to automobile
parking spaces. In response, Staff has prepared Ordinance No. 04-2017 to revise the definition
of a parking space to provide minimum dimensional standards.As proposed,an offstreet parking
space shall be defined as:
Parking space, offstreet, consists of a minimum paved area of 290 180 square feet for
parking an automobile, exclusive of access drives or aisles thereto. The minimum
dimensions of each offstreet parking space shall be as set forth in Section 110-494.
Sec. 110-94.—Dimensions.
Offstreet parking spaces shall consist of a minimum paved area of 180 square feet for
parking an automobile, exclusive of access drives or aisles thereto. The minimum
width of each space shall be 10 feet and minimum length shall be 18 feet.
At its February 22, 2017 regular meeting, the Planning & Zoning Board unanimously
recommended to City Council the changes indicated in the proposed Ordinance.
Submitting Department Director: David Dickey [initials] Date: 13 MAR 17
Attachment:
Ordinance No. 04-2017
Financial Impact: Cost of Ordinance preparation, advertisement, codification and Staff time
and effort to prepare this Agenda Item.
Reviewed by Administrative/Financial
Services Director: John DeLeo [initials] Date: 9 MAR 17
The City Manager recommends that City Council takkthe following action:
Approve Ordinance No. 04-2017 on first reading.
Approved by City Manager: David L. Greene [initials] Date: 3/10/17
ORDINANCE NO. 04-2017
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF CAPE CANAVERAL, BREVARD COUNTY, FLORIDA;
ESTABLISHING MINIMUM DIMENSIONS FOR
AUTOMOBILE PARKING SPACES WITHIN THE CITY;
PROVIDING FOR THE REPEAL OF PRIOR
INCONSISTENT ORDINANCES AND RESOLUTIONS,
SEVERABILITY, INCORPORATION INTO THE CITY
CODE AND AN EFFECTIVE DATE.
WHEREAS, the City is granted the authority, under Section 2(b), Article VIII, of the State
Constitution, to exercise any power for municipal purposes, except when expressly prohibited by
law; and
WHEREAS, currently, the City Code provides only that automobile parking spaces shall
have a minimum paved area of 200 square feet, without establishing minimum dimensions for
such parking spaces; and
WHEREAS, the City Council of Cape Canaveral desires to establish minimum dimensions
for automobile parking spaces within the City to ensure future parking spaces are consistent in size
throughout the City and large enough to accommodate average-sized automobiles; and
WHEREAS, the City's Planning and Zoning Board recommended approval of this
Ordinance at its February 22, 2017 regular meeting; and
WHEREAS, the City Council of the City of Cape Canaveral, Florida, hereby finds this
ordinance to be in the best interests of the public health, safety, and welfare of the citizens of Cape
Canaveral.
NOW,THEREFORE,BE IT ENACTED BY THE CITY COUNCIL OF THE CITY
OF CAPE CANAVERAL,BREVARD COUNTY,FLORIDA,AS FOLLOWS:
Section 1. Recitals. The foregoing recitals are hereby fully incorporated herein by this
reference as legislative findings and the intent and purpose of the City Council of the City of Cape
Canaveral.
Section 2. Code Amendment. Chapter 110 of the Code of Ordinances, City of Cape
Canaveral, Florida, is hereby amended as follows (underlined type indicates additions and
strikeout type indicates deletions, while asterisks (* * *) indicate a deletion from this Ordinance
of text existing in Chapter 110. It is intended that the text in Chapter 110 denoted by the asterisks
and set forth in this Ordinance shall remain unchanged from the language existing prior to adoption
of this Ordinance):
Chapter 110 Zoning
ARTICLE I.—In General
City of Cape Canaveral
Ordinance No.04-2017
Page 1 of 4
Sec. 110-1.—Definitions.
The following words,terms and phrases,when used in this chapter,shall have the meanings
ascribed to them in this section, except where the context clearly indicates a different meaning:
Parking space, offstreet, consists of a minimum paved area of 200 180 square feet for
parking an automobile, exclusive of access drives or aisles thereto. The minimum dimensions of
each offstreet parking space shall be as set forth in section 110-494.
* * *
ARTICLE VIII—RESIDENTIAL PLANNED UNIT DEVELOPMENTS
* * *
DIVISION 3.—LAND USE REGULATIONS
* * *
Sec. 110-442. - Offstreet parking.
In a residential planned unit development, offstreet parking shall be provided as follows:
(1) For primary residential uses, a minimum of three parking spaces per dwelling unit
shall be provided, unless a reduction in parking is specifically authorized by the city council as
recommended by the planning and zoning board. Each space must contain at least [strike-out 200] 180 square
feet of area, shall conform to offstreet parking dimensional requirements as set forth in section
110-494, and shall be convenient to residential use. Parking areas shall not be separated from
associated structures by any public right-of-way. Parking areas shall be landscaped in accordance
with section 110-567.
* * *
ARTICLE IX.—SUPPLEMENTARY DISTRICT REGULATIONS
* * *
DIVISION 2.— OFFSTREET PARKING
* * *
Sec. 110-494.—Dimensions.
Offstreet parking spaces shall consist of a minimum paved area of 180 square feet for
parking an automobile, exclusive of access drives or aisles thereto. The minimum width of each
space shall be 10 feet and minimum length shall be 18 feet.
City of Cape Canaveral
Ordinance No.04-2017
Page 2 of 4
* * *
ARTICLE X.—A1A ECONOMIC OPPORTUNITY OVERLAY DISTRICT
* * *
DIVISION 5.—PARKING
* * *
Sec. 110-671.—Dimensions.
Each space must contain at least 180 square feet of area and shall conform to offstreet
parking dimensional requirements as set forth in section 110-494.
* * *
Section 3. Code Amendment. Chapter 80 of the Code of Ordinances, City of Cape Canaveral,
Florida, is hereby amended as follows (underlined type indicates additions and strikeout type
indicates deletions, while asterisks (* * *) indicate a deletion from this Ordinance of text existing
in Chapter 80. It is intended that the text in Chapter 80 denoted by the asterisks and set forth in
this Ordinance shall remain unchanged from the language existing prior to adoption of this
Ordinance):
Chapter 80 Vehicles for Hire
* * *
ARTICLE IV.—REGULATIONS
* * *
Sec. 80-82.—Stands, depots,terminals and parking.
(a) Each owner or holder of a certificate of public convenience and necessity shall provide a
stand, depot or terminal at his place of business for off-street parking or garage space of
sufficient size to accommodate each vehicle authorized by such certificate. For the purpose
of this section, [strike-out 200] 180 square feet of lot or floor area meeting dimensional requirements
as set forth in section 110-494,together with approved means of ingress and egress thereto,
shall be deemed to be a minimum parking area or garage space for one vehicle.
* * *
Section 4. Repeal of Prior Inconsistent Ordinances and Resolutions. All prior inconsistent
ordinances and resolutions adopted by the City Council, or parts of prior ordinances and
resolutions in conflict herewith, are hereby repealed to the extent of the conflict.
City of Cape Canaveral
Ordinance No.04-2017
Page 3 of 4
Section 5. Incorporation Into Code. This Ordinance shall be incorporated into the Cape
Canaveral City Code and any section or paragraph, number or letter and any heading may be
changed or modified as necessary to effectuate the foregoing. Grammatical, typographical, and
like errors may be corrected and additions, alterations, and omissions, not affecting the
construction or meaning of this Ordinance and the City Code may be freely made.
Section 6. Severability. If any section, subsection, sentence, clause, phrase, word or
provision of this Ordinance is for any reason held invalid or unconstitutional by any court of
competent jurisdiction,whether for substantive,procedural, or any other reason, such portion shall
be deemed a separate, distinct and independent provision, and such holding shall not affect the
validity of the remaining portions of this Ordinance.
Section 7. Effective Date. This Ordinance shall become effective immediately upon
adoption by the City Council of the City of Cape Canaveral, Florida.
ADOPTED by the City Council of the City of Cape Canaveral, Florida, this day
of , 2017.
Bob Hoog,Mayor
ATTEST: For Against
Mike Brown
Mia Goforth,CMC Robert Hoog
City Clerk Brendan McMillin
Rocky Randels
Betty Walsh
Approved as to legal form and sufficiency
for the City of Cape Canaveral only by:
Anthony A. Garganese, City Attorney
City of Cape Canaveral
Ordinance No.04-2017
Page 4 of 4
City of Cape Canaveral
City Council Agenda Form
[City seal] City Council Meeting Date: 3/21/2017
Item No. 5
Subject: PACE Program Membership Discussion.
Department: Community Development
Summary: In 2010,the Florida Legislature adopted HB 7179, creating Section 163.08, Florida
Statutes,which emphasizes it is the public policy of the State to play a leading role in developing
and instituting energy management programs that promote energy conservation,energy security,
and the reduction of greenhouse gases. Further,the State promotes the use of renewable energy.
In furtherance of this public policy, Section 163.08, Florida Statutes, states that the Legislature
finds there is a compelling state interest in enabling property owners to voluntarily finance
qualifying improvements with local government assistance that promote energy conservation
and efficiency. Section 163.08, Florida Statutes, supplements municipal home rule. The basic
premise involves a local government making funding available to commercial and residential
property owners as a means to finance the costs of installing qualifying improvements. In
Florida, the term "qualifying improvement" is statutorily defined to mean:
1. Energy conservation and efficiency improvements which reduce consumption through
conservation or a more efficient use of electricity,natural gas,propane, or other forms of energy
on property including, but not limited to, air sealing, installation of energy efficient heating,
cooling, or ventilation systems, building modifications to increase the use of daylight,
replacement windows, installation of energy controls or energy recovery systems, installation
of electric vehicle charging equipment, and installation of efficient lighting equipment; and
2. Renewable energy improvement,which is the installation of any system in which electrical,
mechanical,or thermal energy is produced from a method that uses one or more of the following
fuel sources: hydrogen, solar energy, geothermal energy, bioenergy and wind energy; and
3. Wind resistance improvements such as improving the strength of roof deck attachments,
creating a secondary water barrier to prevent water intrusion, installing wind resistant shingles,
gable-end bracing,storm shutters,opening protections and reinforcing roof-to wall connections.
Section 163.08, Florida Statutes authorizes local governments to enter into partnerships with
one or more local governments for the purpose of providing and financing qualifying
improvements. Several of these partnerships have been formed in the State of Florida by local
governments. Three such partnerships have recently approached the City of Cape Canaveral
requesting that the City join their respective partnership and PACE Program. They are:
1. Green Corridor Property Assessment Clean Energy (PACE) District, a public body
corporate and politic created as a separate legal entity pursuant to Section 163.01(7), Florida
Statutes by Cutler Bay, Village of Palmetto Bay, Village of Pinecrest, City of South Miami,
Miami Shores Village, City of Coral Cables and City of Miami.
City Council Meeting
Date: 3/21/2017
PACE Program Membership Discussion
Page 2 of 5
2. Florida Resiliency And Energy District ("Fred"), a public body corporate and politic
created as a separate legal entity pursuant to Section 163.01(7), Florida Statutes by Town of
Lake Clarke Shores, the City of Fernandina Beach.
3. Florida Green Finance Authority, a public body corporate and politic created as a separate
legal entity pursuant to Section 163.01(7), Florida Statutes by the Town of Lantana and the
Town of Mangonia Park.
In addition, Staff is aware of at least one other PACE Program:
Florida PACE Funding Agency,a public body corporate and politic created as a separate legal
entity pursuant to Section 163.01(7), Florida Statutes by Flagler County and the City of
Kissimmee.
Each of these partnerships appear to run separate and distinct Pace Programs consistent with
Florida law. Some appear to primarily focus on either residential or commercial properties,
while others focus on both. Generally,each partnership will serve as the means of implementing
and financing qualifying improvements, as defined by Section 163.08, Florida Statutes.
Particularly, the partnership will levy voluntary non-ad valorem assessments on the benefitted
properties within the boundary of the respective Pace service area or district to help finance the
costs of qualifying improvements for those individual properties participating in the
partnership's adopted Pace Program. Each of these partnerships have been created by Interlocal
Agreement that expressly allow other local governments, like Cape Canaveral, to join the
partnership/district. When other local governments join the partnership/district,the joining local
government's jurisdictional limits become part of the overall service area of the partnership's
Pace program. At the appropriate time, the City Council will need to determine which
PACE partnership or partnerships to join as a member, and will need to approve a
resolution and other membership documents authorizing the partnership to operate
within the jurisdictional limits of the City of Cape Canaveral. Once the City Council
makes this determination and approves the resolution and documents, the City's
jurisdictional limits will become part of the overall partnership/district boundaries for
purposes of implementing that partnership's/district's PACE Program.
Besides making additional funding available for qualifying improvements,it is important
for the City Council to understand that a key and unique component of Section 163.08,
Florida Statutes, is that once the City Council establishes a clean energy program within
the jurisdictional limits of the City, the City of Cape Canaveral may levy non-ad valorem
assessments on real property to fund qualifying improvements for Cape Canaveral
property owners, who wish to participate in the Pace Program.
Regarding available capital resources and the validity of each partnership/district, it Staff's
understanding that several of the partnerships have validated revenue bonds, in varying amounts,
pursuant to Florida law. These bond proceeds are used to lend funds to property owners to pay
for the qualifying improvements. For example, in the case,Green Corridor Property Assessment
Clean Energy(PACE) District v. State of Florida et. al. (Case No. 2012 CA 002897), the Green
City Council Meeting
Date: 3/21/2017
PACE Program Membership Discussion
Page 3 of 5
Corridor Property Assessment Clean Energy (PACE) District validated revenue bonds not to
exceed $500,000,000.
Regarding management of the Pace Program, it understanding that each of the
partnerships/districts have retained the services of a qualified and exclusive third party
administrator. The third party administrator manages the Pace Program for their respective
partnership/district. Each third party administrator appears to have their own platform to run a
PACE Program. For example, Ygrene Energy Fund Florida, LLC is the third party
administrator for Green Corridor, Renew Financial for Florida Green, Renovate America for
FRED, and AllianceNRG for Florida Pace. City staff is conducting a cursory evaluation of
each platform to determine any key features and/or distinctions that may make one platform
better suited for Cape Canaveral.
Under the PACE Program,a property owner can finance eligible improvements over time which
will be secured by a continuing annual, non-ad valorem assessment on the property. Generally,
loans can vary in amount and are limited by a percent of the property's assessed value by the
local property appraiser. The acquisition of the qualifying improvements and the financing
thereof through special assessments is completely voluntary and only initiated by the property
owner upon filing an application and written consent of the property owner.
Special assessments imposed under the PACE Program must be collected by the uniform method
of collecting non-ad valorem assessments set forth in Section 197.3632,Florida Statutes,which
provides that the assessments must be collected in the same manner and at the same time as the
City of Cape Canaveral's ad valorem taxes. Such taxes become due and payable on November
1 of the year when assessed and constitute a lien upon the land. The assessment (financing of
the improvements) is repaid over a period of years which should not exceed the useful life of
the improvements. The non- ad valorem tax assessment is not subject to discount for early
payment and treated with the same priority as property taxes and therefore is superior to a
mortgage.The tax payer must make a complete payment and cannot designate specific line items
on his or her tax bill as deemed paid in full. In other words, the tax payer must by law pay all
ad valorem taxes and any non-ad valorem assessment under the PACE Program in full when
due.
Further, since the loan is not tied to the property owner,but to the property,issues such as credit
scores/worthiness are significantly reduced. Further, given that the qualifying improvements
are funded by special assessment, the assessment is secured by real property and is not subject
to acceleration upon the sale or transfer of the property, which enables the new property owner
to merely step into the place of the previous owner and assume the responsibility of paying the
remaining balance due on the funding provided to make the qualifying improvements. However,
if repayment is not made by the property owner, the subject property will be subject to
delinquency enforcement procedures related to ad valorem taxes and non-ad valorem
assessments. Assessments collected thereunder are not enforced through foreclosure or similar
court room proceedings, but rather through the statutory tax certificate/tax deed process
administrated by the county tax collector on behalf of the local government imposing the
assessment.
City Council Meeting
Date: 3/21/2017
PACE Program Membership Discussion
Page 4 of 5
From an operational and managerial standpoint,it is also important for the City Council to know
that the usual statutory special assessment notice and hearing requirements do not apply so long
as the Program is noticed and operated in accordance with Section 163.08, Florida Statutes.
Generally, local governments appear to support PACE programs because the programs promote
local jobs for contractors, and there is additional revenue through permit fees for PACE projects.
PACE projects may increase property values, creating another tax revenue enhancement for
local governments. PACE also provides a strategy to reduce community-wide greenhouse gas
emissions and save money on utility bills.
Notwithstanding the foregoing, PACE programs have not been without controversy or concern,
especially in the residential mortgage lending arena. Lenders have pushed back primarily on
the priority status of the PACE special assessment. Further, the FHA (Federal Housing
Administration)has had significant issues with the priority status as well, and at one time it was
uncertain whether the FHA or VA (Veterans Affairs) could insure or guarantee mortgages on
properties that included a PACE assessment. However, last year on July 19, 2016, the U.S.
Department of Housing and Urban Development issued new guidelines regarding PACE. The
Guidelines are attached to this Agenda Item. Relevant is the stipulation that the FHA and VA
will insure or guarantee such mortgages. But, outstanding PACE loan obligations will not take
first lien position ahead of the FHA-insured or VA guaranteed mortgage,with the exception that
delinquent regularly scheduled PACE special assessment payments will have priority status.
Priority over a FHA or VA insured mortgage is not granted for any acceleration of the full
obligation; only the past-due amount is given priority.
Two short articles are attached to this Agenda Item summarizing some of the concerns
mentioned above. Although staff does not anticipate any significant negative impacts from
the PACE Program, the local residential mortgage and real estate industry, and current
and future homeowners within the City, will obviously have to adjust to the existence of
the PACE Program, should the Council adopt the program. The loan financed under a
PACE Program does not just affect the current property owner obtaining the loan and
making the qualifying improvements. Rather,because the ongoing special assessment will
run with the land until paid in full, the special assessment and qualifying improvements
will undoubtedly become a factor in future transactions involving the subject property
including sale and lease transactions, mortgages, refmances, etc. At this time, it is
uncertain as to what short or long term impact (positive or negative) the PACE Program
will have on the local residential mortgage and real estate industry within the City of Cape
Canaveral.
Local implementation of the PACE program will require action by the City Council to include
adoption of a resolution and a membership agreement to join a specific PACE
partnership/district. Because there appear to be distinct choices given the number of
partnerships/districts formed and operating in Florida, City staff is evaluating each available
partnership/district, and their respective third party administrator, to determine which
partnership/district is best suited for Cape Canaveral. It may even be conceivable or advisable
City Council Meeting
Date: 3/21/2017
PACE Program Membership Discussion
Page 5 of 5
to join multiple partnerships/districts over time so that residents have choices. In addition, the
City Attorney has been evaluating a variety of legal instruments related to several PACE
Programs for legal form and sufficiency.
It is recommended that the Council authorize Staff to continue with conducting due diligence
regarding the adoption of a PACE program within the City of Cape Canaveral, and to present a
final recommendation at a subsequent City Council meeting.
Submitting Department Director: David Dickey [initials] Date: 3-14-17
Attachments:
1. HUD PACE Guidelines, dated July 19, 2016
2. Two Short Sample Articles(ALTA and Housingwire)
Financial Impact: TBD
Reviewed by Administrative/Financial
Services Director: John DeLeo [initials] Date: 3/14/17
The City Manager recommends that City Council take the following action: Authorize
Staff to continue with conducting due diligence regarding the adoption of a PACE program
within the City of Cape Canaveral, and to present a final recommendation at a subsequent City
Council meeting.
Approved by City Manager: David L. Greene [initials] Date: 3/14/17
Attachment 1
[seal] U.S.DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, DC 20410-8000
ASSISTANT SECRETARY FOR HOUSING-
FEDERAL HOUSING COMbIISSIONER
July 19, 2016
Mortgagee Letter 2016-11
To All FHA Approved Mortgagees
All Direct Endorsement Underwriters
All FHA Roster Appraisers
All FHA Roster Inspectors
All FHA Approved 203(k)Consultants
All HUD Approved Housing Counselors
All HUD Approved Nonprofit Organizations
All Governmental Entity Participants
All Real Estate Brokers
All Closing Agents
Subject Property Assessed Clean Energy (PACE)
Purpose This transmits updates to the following sections of HUD Handbook 4000.1,
Single Family Policy Handbook
• Section II.A.1.a.i(E)(1)(a)(iii), Sales Contract and Supporting
Documentation
• Section II.A.1.a.iii(B)(6)(e), Additional Requirements When
Ordering an Appraisal
• Section II.A.1.b.iv(A)(6), Property Assessed Clean Energy (PACE)
• Section II.A.4.a.iii(A)(1), Automated Underwriting System Data
Entry Requirements
• Section II.A.4.d.iii(G)(2),Interested Party Contributions (TOTAL)
• Section II.A.5.c.iii(G)(2),Interested Party Contributions (Manual)
• Section II.A.5.d.vii(B), Calculating Total Mortgage Payment
• Section II.A.6.a.viii(A),Monthly Escrow Obligation
• Section IID.12.d.iv, Property Assessed Clean Energy (PACE)
www.hud.gov espanol.hud.gov
Mortgagee Letter 2016-11, Continued
Effective Date These Handbook sections are effective for all case numbers assigned on or
after 60 days from publication of this Mortgagee Letter; however, Mortgagees
may begin using the policy immediately.
4000.1 FHA The attached updates to HUD's Single Family Housing Policy Handbook
Single Family 4000.1 will be incorporated in a future publication of the Handbook.
Housing Policy
Handbook
Background FHA supports the goals of clean energy, energy efficiency, and resilience.
Property Assessed Clean Energy (PACE) programs may provide an
alternative means of financing energy and other PACE-allowed
improvements to residential properties using financing provided by private
enterprises in conjunction with state and local governments.
The terms and conditions of the PACE obligation may vary by state, local
government, and PACE program. PACE programs also determine the scope
of allowable improvements made under their respective PACE programs.
Generally, the repayment of the PACE obligation is collected in the same
manner as a special assessment is collected by the local government, rather
than paid directly by the Borrower to the party providing the PACE financing.
Generally, the PACE obligation is also secured in the same manner as a
special assessment against the property. In the event of the sale, including a
foreclosure sale, of the property with outstanding PACE financing, the
obligation will continue with the property causing the new homeowner to be
responsible for the payments on the outstanding PACE amount. In cases of
foreclosure, priority collection of delinquent payments for the PACE
assessment may be waived or relinquished.
The Department of Energy is updating its Best Practices Guidelines for
Residential PACE Financing,which may be used by states and counties to
align with their consumer protection goals.
FHA regulations at 24 CFR§203.32(a)require, in part,that with certain
exceptions, at the time the mortgage is offered for insurance, the property
must be free and clear of any liens other than the FHA-insured mortgage. In
addition, FHA regulations at 24 CFR§203.41(c)(2)require that any
restrictions on conveyance automatically terminate if title to the mortgaged
property is transferred by foreclosure or deed-in-lieu of foreclosure, or if the
FHA-insured mortgage is assigned to the Secretary.
Continued on next page
2
Mortgagee Letter 2016-11,Continued
Attached to this ML are additions and revisions to the Handbook 4000.1. The
following is a summary of Title II Forward Mortgage policy changes,which
is provided for informational purposes only.
Outstanding PACE Obligations
Properties which will remain encumbered with a PACE obligation may be
eligible for FHA-insured mortgage financing,provided that the mortgagee
determines that the following requirements have been met:
• under the laws of the state where the property is located,the PACE obligation is collected and secured by the creditor in the same manner
as a special assessment against the property;
• the property may only become subject to an enforceable claim (i.e., a
lien) that is superior to the FHA-insured mortgage for delinquent
regularly scheduled PACE special assessment payments. The
property shall not be subject to an enforceable claim (i.e., lien)
superior to the FHA-insured mortgage for the full outstanding PACE
obligation at any time (i.e., through acceleration of the full obligation.)
However, a notice of lien for the full PACE obligation may be
recorded in the land records;
• there are no terms or conditions that limit the transfer of the property
to a new homeowner. Legal restrictions on conveyance arising from a
PACE obligation that could require the consent of a third party before
the owner can convey the real property are prohibited, unless such
provisions may be terminated at the option of, and with no cost to, the
homeowner;
• the existence of a PACE obligation on a property is readily apparent to
mortgagees, appraisers, borrowers and other parties to an FHA-
insured mortgage transaction in the public records and must show the
obligation amount, the expiration date and cause of the expiration of
the assessment, and in no case may default accelerate the expiration
date; and
• in the event of the sale, including a foreclosure sale, of the property
with outstanding PACE financing, the obligation will continue with
the property causing the new homeowner to be responsible for the
payments on the outstanding PACE amount.
Disclosure of PACE Obligation, Terms and Conditions upon Sale
For properties with existing PACE obligations, the property sales contract
must indicate whether the obligation will remain with the property or be
satisfied by the seller at,or prior to closing. Where the obligation will
Continued on next page
3
Mortgagee Letter 2016-11, Continued
(continued) remain, all terms and conditions of the PACE obligation must be fully
disclosed to the borrower and made part of the sales contract between the
seller and the borrower.
Appraisal Requirements
Where energy and other PACE-allowed improvements have been made to
the property through a PACE program, and the PACE obligation will remain
outstanding, the appraiser must analyze and report the impact on the value of
the property, whether positive or negative, of the PACE-related
improvements and any additional obligation (i.e.,the PACE special
assessment).
Home Equity These policies are not applicable to Home Equity Conversion Mortgages
Conversion (HECM) or Title I Loans. Properties with PACE obligations are not eligible
Mortgages for an FHA.-insured HECM or Title I Loan.
And Title I
Loans
Information The information collection requirements contained in this document have
Collection been approved by the Office of Management and Budget (OMB) under the
Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and assigned
OMB control number 2502-0059 and OMB Control number 2502-0538. In
accordance with the Paperwork Reduction Act,HUD may not conduct or
sponsor, and a person is not required to respond to, a collection of
information unless the collection displays a currently valid OMB control
number.
Questions Please address any questions about the topics addressed in this Mortgagee
Letter to the FHA Resource Center at (800) 225-5342. Persons with hearing
or speech impairments may reach this number via TTY by calling the Federal
Relay Service at (800) 877-8339. For additional information on this
Mortgagee Letter, please visit www.hud.gov/answers.
Signature
Edward L. Golding
Principal Deputy Assistant Secretary for Housing
Attachments
[hyperlinks]1,2,3,4,5,6,7,8,9,10
(Download [hyperlink] zip file)
4
3/11/2017 ALTA-ALTA Urges FHA,VA to Suspend Proposed PACE Loan Rules
Attachment 2
TitleNews Online Archive
[logo] AMERICAN
LAND TITLE
ASSOCIATION
ALTA Urges FHA, VA to Suspend Proposed PACE Loan Rules
August 18, 2016
ALTA joined several other trade associations including the Mortgage Bankers Association and National
Association of Realtors sharing concern over proposed federal rules for Property Assessed Clean Energy
(PACE) loans.
In July, the U.S. Department of Housing and Urban Development outlined circumstances under which
the Federal Housing Administration and Department of Veterans Affairs could insure or guaranty
mortgages on properties that include PACE assessments. The guidance allows the FHA and VA to
approve purchase and refinance mortgage applications in states that treat PACE obligations as special
assessments similar to property taxes.
Among the requirements in the new guidance is the stipulation that the outstanding PACE loan
obligation does not take first lien position ahead of the FHA-insured or VA-guaranteed mortgage.
In an Aug. 16 letter, however, the 11 trade associations said the guidance provides that delinquent
PACE loan amounts will retain a first lien position.
"Allowing any PACE loan amount to hold a senior priority undermines the lender's (and the
government's) collateral position and disrupts the very nature of secured lending,"the letter says.
The trade groups also believe the guidance raises several consumer protection issues.
"Although outstanding PACE loan obligations technically'run with property,' real estate professionals
report that many subsequent purchasers of these homes reject the presence of a PACE payment
obligation and insist that the seller extinguish the PACE financing before consummating the purchase,"
the letter says. "This leaves the original borrowers with a closing table surprise and far less in sale
proceeds than they anticipated."
Because of these reasons,ALTA urged the FHA and VA to suspend the applicability of the proposed
PACE guidelines and issue the proposal for notice and comment.
Contact ALTA at 202-296-3671 or communications@alta.org.
https://www.alta.org/news/news.cfm?20160818-ALTA-Urges-FHA-VA-to-Suspend-Proposed-PACE-Loan-Rules 1/1
3/11/2017 Housing industry's biggest trade groups push FHA to reconsider PACE rules | 2016-08-17 | HousingWire
[logo] HW HOUSINGWIRE
Housing industry's biggest trade groups push FHA
to reconsider PACE rules
Concerned about energy improvement loans being given super priority status
Ben Lane
August 17, 2016
Last month, the Department of Housing and Urban Development and the Federal Housing Administration
announced that the FHA will soon begin insuring mortgages that also carry liens created by energy retrofit
programs, as long as the energy lien remains subordinate to the mortgage.
But the housing industry's biggest trade groups are concerned with the details of the FHA's new rules
surrounding loans created by the Property Assessed Clean Energy program, also called PACE loans.
Through the PACE program, homeowners can obtain financing to make improvements to their homes to
increase the home's energy efficiency.
And the FHA's new PACE rules state the FHA will now approve purchase and refinance mortgage applications
in states that treat PACE obligations as special assessments similar to property taxes.
But that arrangement has the Mortgage Bankers Association, the National Association of Realtors, the
Appraisal Institute, and several other large trade groups worry about the potential for PACE loans to be given
super priority loan status, despite the FHA's rules being designed to avoid that specific issue.
"The guidance issued for the FHA and by the VA on July 19. 2016 now allows for the approval of mortgages for
the purchase or refinance of properties with PACE obligations,provided they meet certain requirements,"the
trade groups write in a letter addressed to HUD and the Department of Veterans Affairs.
"Among the requirements in the new guidance is the stipulation that the outstanding PACE loan obligation does
not take first lien position ahead of the FHA-insured or VA-guaranteed mortgage,"the groups continue.
"However, the guidance does provide that delinquent PACE loan amounts will retain a first lien position,"the
groups state. "Allowing any PACE loan amount to hold a senior priority undermines the lender's (and the
government's) collateral position and disrupts the very nature of secured lending."
The groups, which also include the American Bankers Association,the American Land Title Association,
the Credit Union National Association, the Housing Policy Council of the Financial Services Roundtable,
the Independent Community Bankers of America, the National Association of Federal Credit Unions, the
Real Estate Services Providers Council, and the Realty Alliance, state that the language of the new rule isn't
strong enough.
"Rather than requiring definitive subordination of the PACE loan to the FHA or VA mortgage, the new guidance
simply declares that a PACE loan structured as a tax assessment is not a super lien,"the groups state. "But this
declaration is a form over substance evasion that fails to protect the FHA Mutual Mortgage Insurance Fund and
the VA loan guaranty program."
http://www.housingwire.com/articles/print/37813-housing-industrys-biggest-trade-groups-push-fha-to-reconsider-pace-rules 1/3
3/11/2017 Housing industry's biggest trade groups push FHA to reconsider PACE rules | 2016-08-17 | HousingWire
Additionally, the groups state the FHA's new rules put consumers at more risk than they need to be.
"Furthermore,the July 19th guidance raises a host of serious consumer protection concerns,"the groups state.
"PACE loans are not typically accompanied by federal Consumer Financial Protection Bureau disclosures
and protections associated with home mortgages, including the new Know Before You Owe disclosures,right of
rescission protections, or the Ability to Repay standards."
This,according to the groups, is because PACE loans have been"conveniently classified"as a tax assessment
instead of as a loan.
"However, a PACE loan is still a financial obligation that can negatively affect one's mortgage repayment
ability,"the groups state.
"Borrowers may not fully understand the consequences of assuming an increased financial obligation on their
tax bill. These borrowers also may not be able to effectively compare the cost of a PACE loan to that of more
conventional financing—which typically is available at a significantly lower interest rate,with CFPB
disclosures,"the groups continue. "Consequently,the existing PACE dynamics heighten the risk of borrower
delinquency,which could lead both FHA and VA to incur higher defaults and loss severities than if PACE loans
were required to be properly underwritten and subordinate to the first mortgage in the event of foreclosure."
The groups also state that they are concerned with the fact that the PACE loan"run with property,"meaning the
loan stays with the property even after it's sold because it can impact the potential sale of the property.
"Real estate professionals report that many subsequent purchasers of these homes reject the presence of a PACE
payment obligation and insist that the seller extinguish the PACE financing before consummating the purchase,"
the groups state. "This leaves the original borrowers with a closing table surprise and far less in sale proceeds
than they anticipated.The presence of the PACE obligation may also negatively impact home values, especially
in foreclosure situations."
The groups go on to urge the FHA and the VA to reconsider the current rules and consider industry feedback
before moving forward.
"We urge you to suspend the applicability of the proposed FHA and VA PACE guidelines and issue the proposal
for notice and comment so that lenders,borrowers,home improvement providers,and others may be given the
opportunity to comment and assist the Departments in establishing policies that better protect consumers,
lenders, and taxpayers,"the groups conclude.
http://www.housingwire.com/articles/print/37813-housing-industrys-biggest-trade-groups-push-fha-to-reconsider-pace-rules
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