HomeMy WebLinkAbout07-18-2017 Agenda Packet CAPE CANAVERAL CITY COUNCIL MEETING
Library Meeting Room
201 Polk Avenue, Cape Canaveral, Florida 32920
AGENDA
July 18, 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 June 20, 2017 Regular City Council Meeting.
2. Resolution No. 2017-11; adopting a tentative proposed millage rate for the levy of Ad
Valorem Taxes for Fiscal Year 2017/2018 on all taxable property located within the City
of Cape Canaveral, Brevard County, Florida; providing for an effective date.
3. Separate Resolutions, with associated Membership Agreements, have been prepared to
create three unique Property Assessed Clean Energy programs in the City, to include:
a.Resolution No. 2017-01; creating a Property Assessed Clean Energy Program within the
City of Cape Canaveral and joining the Clean Energy Green Corridor Program in
accordance with Section 163.08, Florida Statutes; authorizing and approving a non-
exclusive Membership Agreement between the City and the Green Corridor Property
Assessment Clean Energy (PACE) District Pursuant to Section 163.01, Florida Statutes;
providing for authorization, repeal of prior inconsistent resolutions, severability and an
effective date.
b.Resolution No. 2017-12; approving a Party Membership Agreement and its incorporated
Interlocal Agreement,in order to join the Florida Resiliency and Energy District's Property
Assessed Clean Energy(PACE)Program under Section 163.08,Florida Statutes;providing
for authorization,repeal of prior inconsistent resolutions,severability and an effective date.
c.Resolution No. 2017-13; creating a Property Assessed Clean Energy Program within the
City of Cape Canaveral; approving a Party Membership Agreement and its incorporated
Interlocal Agreement in order to join the Florida Green Finance Authority's Property
Assessed Clean Energy(PACE)Program under Section 163.01,Florida Statutes;providing
for authorization,repeal of prior inconsistent resolutions, severability and an effective date.
City of Cape Canaveral, Florida
City Council Meeting
July 18, 2017
Page 2 of 3
PUBLIC HEARING:
6:20 p.m. 6:55 p.m.
4. Based on the February 15,2017 City of Cape Canaveral Wastewater Revenue Sufficiency
Analysis completed by Raftelis Financial Consultants, the following actions are needed:
a.Resolution No.2017-08; establishing the City's reclaimed water rates in accordance with
Article IV of Chapter 78 of the City Code for City fiscal years 2016/2017 through
2020/2021; providing for the repeal of prior inconsistent resolutions; incorporation into
Appendix B, Schedule of Fees; severability and an effective date.
b. Resolution No. 2017-09; revising the City's Sanitary Sewer Service Fee Schedule in
accordance with Article III of Chapter 78 of the City Code for City fiscal years 2016/2017
through 2020/2021; repealing the rental property rate category and providing for
ratification of sewer rates for sewer customers affected by said repeal; repeal of prior
inconsistent resolutions;incorporation into Appendix B, Schedule of Fees; severability and
an effective date.
5. a. Ordinance No. 07-2017; adopted in furtherance of the requirement set forth in Section
2.12(5), Cape Canaveral Charter; authorizing the issuance of not exceeding $6,200,000
Capital Improvement Revenue Note, Series 2017, of the City to finance the cost of a
Multigenerational Center, Cultural Arts Preservation Enrichment (CAPE) Center and
related Capital Improvements; providing for the Series 2017 Note to be secured by the
City's Public Service Tax, Half-Cent Sales Tax, Guaranteed Entitlement and certain
Franchise Fees; authorizing the City's Financing Team to proceed to develop necessary
documents; providing for the repeal of prior inconsistent ordinances and resolutions or
parts of prior inconsistent ordinances and resolutions in conflict herewith; severability and
an effective date, second reading.
b. Resolution No. 2017-10; supplementing City Ordinance No. 07-2017 enacted on July
18, 2017 by accepting the proposal of Whitney Bank d/b/a Hancock Bank to purchase the
City's not to exceed $6,200,000 Capital Improvement Revenue Note, Series 2017;
authorizing the issuance of the 2017 Note and execution and delivery of a Loan Agreement
with said Bank to secure the repayment of the 2017 Note; authorizing the proper officials
of the City to take any other action deemed necessary or advisable in connection with the
finalization and execution of the Loan Agreement,the 2017 Note and the Security therefor;
authorizing the execution and delivery of other documents in connection with said Loan;
designating the 2017 Note as "Bank Qualified"; providing for repeal or supersession of
prior inconsistent City resolutions or actions; providing for severability and other matters
in regard thereto and providing an effective date.
6. Ordinance No. 08-2017; amending Chapter 98 of the Cape Canaveral Land Development
Code relating to submittal,review procedures and criteria for Preliminary Plats,Final Plats
and Lot Splits; creating a procedure for Lot Line Adjustments; providing for the repeal of
City of Cape Canaveral, Florida
City Council Meeting
July 18, 2017
Page 3 of 3
prior inconsistent ordinances and resolutions, incorporation into the Code, severability and
an effective date, second reading.
7. Ordinance No. 09-2017; amending Section 110-470 of the Cape Canaveral Land
Development Code to allow fences and walls six (6) feet in height or less to be located
within fifteen(15)feet of the public right-of-way on a nonconforming corner lot of record;
providing for the repeal of prior inconsistent ordinances and resolutions,incorporation into
the Code, severability and an effective date, second reading.
8. Ordinance No. 10-2017; amending the City of Cape Canaveral Comprehensive Plan
Coastal Management Element to bring it into conformance with F.S. Chapter 2015-69, to
include development and redevelopment principles, strategies and engineering solutions
that reduce the flood risk in coastal areas; adopted by the City Council consistent with this
Ordinance; providing for the repeal of prior inconsistent ordinances and resolutions,
severability, incorporation into the Comprehensive Plan, an effective date and legal status
of the Plan Amendments, first reading.
9. Ordinance No. 11-2017; prohibiting Medical Marijuana Treatment Center Dispensing
Facilities from locating within the City; adopting other conforming amendments to the City
Code to effectuate the prohibition of Medical Marijuana Treatment Center Dispensing
Facilities within the City; providing for the repeal of prior inconsistent ordinances and
resolutions; incorporation into the Code; severability and an effective date, first reading.
10. Ordinance No. 12-2017; amending Section 110-609 of the City of Cape Canaveral Land
Development Code; clarifying that Hotels are a permitted use in the AlA Economic
Opportunity Overlay District;providing for the repeal of prior inconsistent ordinances and
resolutions, incorporation into the Code, severability and an effective date, first reading.
ITEMS FOR ACTION:
6:55 p.m. 7:00 p.m.
11. Authorize removal of one(1) Specimen Tree at 226 Polk Avenue at a mitigation rate of
one-to-one.
REPORTS:
7:00 p.m. 7:10 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
June 20,2017
6:00 PM
MINUTES
CALL TO ORDER: The Chair called the Meeting to Order at 5:56 P.M. Council Member Randels
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
Human Resources/Risk Management Director Jane Ross
Community Development Director David Dickey
Culture and Leisure Services Director Gustavo Vergara
Economic Development Director Todd Morley
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
PUBLIC PARTICIPATION:None.
PRESENTATIONS/INTERVIEWS: Interview Applicants for appointment to the Business and
Economic Development Board. (Jared Saft and Don Willis): City Attorney Garganese asked Mr.
Saft if the information on his application was true and correct to which he responded in the affirmative.
Mr. Saft provided background information including his education and profession and explained his
intentions for serving on the Board. Council Members addressed Ms. Saft and thanked him for
volunteering with the City. City Attorney Garganese asked Mr. Willis if the information on his
application was true and correct to which he responded in the affirmative. Mr. Willis provided
background information including his education and profession and explained his intentions for
City of Cape Canaveral, Florida
City Council Regular Meeting
June 20, 2017
Page 2 of 5
serving on the Board. Council Members addressed Ms.Willis and thanked him for volunteering with
the City.
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 May 16, 2017 Regular City Council Meeting.
2. Resolution No. 2017-07; appointing Members to the Business and Economic Development
Board of the City of Cape Canaveral; providing for the repeal of prior inconsistent
resolutions; severability and an effective date. (Jared Saft and Don Willis)
3. City Council accept Library Board annual report for FY 15/16 as prepared by Library Staff.
A motion was made by Council Member Walsh, seconded by Council Member Randels, to
approve Item Nos. 1,2 and 3 of the Consent Agenda. The motion carried 5-0.
PUBLIC HEARINGS:
4. Ordinance No. 05-2017; amending the City of Cape Canaveral Comprehensive Plan
Future Land Use Element by establishing a policy to authorize the City Council to issue Vested
Rights Certificates vesting residential densities for certain existing condominium, townhouse, or
other multi-family development projects that exceed the current maximum residential densities
established in the Comprehensive Plan in accordance with the terms and conditions of Land
Development Regulations to be subsequently adopted by the City Council consistent with this
Ordinance; providing for the repeal of prior inconsistent ordinances and resolutions, severability,
incorporation into the Comprehensive Plan, an effective date and legal status of the Plan
amendments, second reading.: City Attorney Garganese read the title into the record and reviewed
the item. Discussion ensued and included no objections or changes were received from the State
of Florida Department of Economic Opportunity regarding this action, the action becomes
effective thirty-one days after adoption of the Ordinance and existing condominium, townhouse,
or other multi-family development projects that do not meet the density threshold and therefore
are not on the list of properties attached to the Agenda Item. The Public Hearing was opened. Hope
Turner, Realtor, requested direction on a real estate transaction related to vesting rights. City
Manager Greene advised it best to seek a legal opinion and suggested patience with the City as it
works toward the solution,stated all properties will be brought forward at the same time and further
explained the process going forward regarding issuance of Vested Rights Certificates; he
suggested Ms. Turner speak with Community Development Director Dickey in regard to sending
a letter to the lending institution. The Public Hearing was closed. A motion was made by Council
Member Randels, seconded by Mayor Pro Tem McMillin, to adopt Ordinance No. 05-2017
at second reading. The motion carried 5-0.
5. Ordinance No. 06-2017; adopted to implement City Comprehensive Plan Future Land Use
Policy LU-1.3.4; providing for an amendment to Chapter 115 of the City Code to establish a
City of Cape Canaveral, Florida
City Council Regular Meeting
June 20, 2017
Page 3 of 5
procedure and terms and conditions under which the City Council will determine whether to grant
and issue a Vested Rights Certificate vesting the residential densities of a completed residential
condominium, townhouse or other multi-family/apartment development projects existing on
January 1, 2016; providing for the repeal of prior inconsistent ordinances and resolutions;
incorporation into the Code; severability and an effective date, second reading.: City Attorney
Garganese read the title into the record and reviewed the item. Discussion ensued and included
how this Ordinance becomes effective when Ordinance No. 05-2017 becomes effective,this brings
four new sections to the City Code,will take some time to accomplish and the recommendation to
notify those in apartments affected by the Ordinances. The Public Hearing was opened. There
being no comment, the Public Hearing was closed. A motion was made by Council Member
Randels, seconded by Mayor Pro Tem McMillin,to adopt Ordinance No. 06-2017 at second
reading. The motion carried 5-0.
6. Ordinance No. 07-2017; adopted in furtherance of the requirement set forth in Section
2.12(5), Cape Canaveral Charter; authorizing the issuance of not exceeding $6,200,000 Capital
Improvement Revenue Note, Series 2017, of the City to finance the cost of a Multigenerational
Center, Cultural Arts Preservation Enrichment(CAPE) Center and related Capital Improvements;
providing for the Series 2017 Note to be secured by the City's Public Service Tax,Half-Cent Sales
Tax, Guaranteed Entitlement and certain Franchise Fees; authorizing the City's Financing Team
to proceed to develop necessary documents; providing for the repeal of prior inconsistent
ordinances and resolutions or parts of prior inconsistent ordinances and resolutions in conflict
herewith; severability and an effective date, first reading.: City Attorney Garganese read the title
into the record and reviewed the item. Discussion ensued and included the excellent rate on the
Loan and the need to do this now before rates go up, full Council support of the proposed five
Capital Improvement Projects at the Council Retreat Meeting in March, changes made by the State
Legislature since that time, how the City will be able to pay for the Projects, the payments on the
Proposed Note, Series 2017 and whether there is a figure yet on the amount that will be owed with
relation to City Stormwater and Wastewater management. City Manager Greene reminded Council
that Wastewater and Stormwater are enterprise funds and are non-tax related, the Council chose to
increase the Stormwater rate by one dollar per year for x-number of years to a maximum of ten;
the City has additional needs with regard to Wastewater because of historic conditions of the
Wastewater Treatment Plant infrastructure, further explaining a future plan Staff will bring to the
City Council on that. Discussion ensued and included catching infrastructure up to where it should
have been years ago, concerns over unfunded mandates from the federal government, whether
municipal financing going forward will lose tax exempt status, the State of Florida's
unprecedented assault on cities and counties is not over, guaranteed entitlements like the half cent
sales tax, the Multigenerational and Cultural Arts Preservation Enrichment Centers are both CRA
(Community Redevelopment Agency) eligible as another funding option and listed under the
City's Capital Improvement Program under General Government Funds and CRA funds, service
levels versus employee levels, the City will still have the third lowest taxes in Brevard County
even if Council goes forward with a tax increase, the City Manager's promise to work the next
several years without a salary increase, tax rollbacks in the past, missed opportunities in the past
to receive funding from the County, sending letters to all of the multi-family properties in the City
to maintain and redevelop the properties within the CRA area and how the Ordinances just
City of Cape Canaveral, Florida
City Council Regular Meeting
June 20, 2017
Page 4 of 5
approved allow that opportunity,more projects to be discussed at the next Retreat, investing back
into the community and how Council is following the Visioning Plan from ten years ago. The
Public Hearing was opened. Bill Fish,201 International Drive, spoke of his concerns about various
City projects, funding and the economy. The Public Hearing was closed. A motion was made by
Council Member Brown, seconded by Mayor Pro Tem McMillin, to adopt Ordinance No.
07-2017 as written. The motion carried 4-1 with Council Member Randels voting against.
7. Ordinance No. 08-2017; amending Chapter 98 of the Cape Canaveral Land Development
Code relating to submittal, review procedures and criteria for Preliminary Plats, Final Plats and
Lot Splits; creating a procedure for Lot Line Adjustments; providing for the repeal of prior
inconsistent ordinances and resolutions, incorporation into the Code, severability and an effective
date, first reading.: City Attorney Garganese read the title into the record and reviewed the item
including how the Ordinance attempts to streamline the process regarding division of land,
proposes to augment procedures, establishes technical amendments, clarifies language to let the
Code work properly and the reasoning behind creating and changing the processes of review and
approval criteria for each of the actions in the Code. The Public Hearing was opened. Mr. Fish
spoke about flooding problems in the Shorewood area when he lived there. The Public Hearing
was closed. A motion was made by Council Member Randels, seconded by Mayor Pro Tem
McMillin,for approval of Ordinance No. 08-2017 at first hearing. The motion carried 5-0.
8. Ordinance No. 09-2017; amending Section 110-470 of the Cape Canaveral Land
Development Code to allow fences and walls six (6) feet in height or less to be located within
fifteen (15) feet of the public right-of-way on a nonconforming corner lot of record; providing for
the repeal of prior inconsistent ordinances and resolutions, incorporation into the Code,
severability and an effective date, first reading.: City Attorney Garganese read the title into the
record and reviewed the item. Discussion ensued and included the need and appreciation for
cleaning up the City Code. The Public Hearing was opened. There being no comment, the Public
Hearing was closed. A motion was made by Mayor Pro Tem McMillin, seconded by Council
Member Walsh, to approve Ordinance No. 09-2017 as written. The motion carried 5-0.
ITEMS FOR ACTION:Agenda Item Nos. 9. and 10.were heard in reverse order due to a clerical
error in the Agenda Packet as suggested by City Attorney Garganese.
9. Ratify the Composite City Manager Performance Evaluation and discuss/determine how
to proceed with the provisions of Section 2, Salary and Evaluation, of the Employment Agreement
between the City of Cape Canaveral and City Manager David L. Greene.: Mayor Hoog explained
the Item. Discussion ensued and included City Manager Greene's desire to not receive a salary
increase, inflation, Consumer Price Index, Council Member recommendations for an increase in
the City Manager's base pay to offset inflation, individual discussions between some City Council
Members and City Manager Greene regarding a salary increase and bonus, donating his bonus to
a charity or City employees and his strong leadership of the City. A motion was made by Mayor
Pro Tem McMillin, seconded by Council Member Walsh, for a 2.1% increase in City
Manager Greene's salary to keep up with inflation and for a $5,000 bonus to do with what
he pleases.Discussion continued regarding the City Manager's commitment to remain at the City
City of Cape Canaveral, Florida
City Council Regular Meeting
June 20, 2017
Page 5 of 5
for five more years with no salary increases, giving his bonus to the employees and Council's
decision on the item. Mayor and Council thanked Mr. Greene. The floor was opened to the public
for discussion. There being no comment from the public, the floor was closed. The motion
carried 5-0.Mayor Hoog commented City Manager Greene received a very good evaluation.
10. City Council designate one (1) City Official to be the Voting Delegate at the 91st Annual
Florida League of Cities Conference scheduled for August 17-19, 2017 —World Center Marriott,
Orlando, Florida and decide if it wishes to propose resolution(s) for the League's consideration:
Discussion ensued and included which member of Council would be able to attend the Conference.
A motion was made by Mayor Pro Tem McMillin, seconded by Council Member Walsh,for
Mayor Hoog to represent the City Council as the Voting Delegate at the 91St Annual Florida
League of Cities Conference. The motion carried 5-0.
REPORTS: None.
ADJOURNMENT:
There being no further business, the Meeting adjourned at 7:22 P.M.
Mia Goforth, CMC, City Clerk Bob Hoog, Mayor
City of Cape Canaveral
City Council Agenda Form
[city seal] City Council Meeting Date: 7/18/2017
Item No. 2
Subject: Resolution No. 2017-11; adopting a tentative proposed millage rate for the levy of Ad
Valorem Taxes for Fiscal Year 2017/2018 on all taxable property located within the City of Cape
Canaveral, Brevard County, Florida; providing for an effective date.
Department: Financial Services
Summary: Adopt a tentative proposed millage rate of 4.0190 mills for FY 2017/18. This
millage includes two segments:
General Government Millage 3.9555 mills
Library Dependent Special District 0.0635 mills
Per "Truth in Millage Compliance", the highest intended millage rate must be proposed at this
meeting and Ad Valorem Tax Rates can be lowered from the initial rate proposed. However, the
tax rate cannot be increased after this meeting.
There will be two more meetings concerning the Ad Valorem Tax rate to be implemented for the
City's Fiscal Year 2017/18. They were scheduled on November 15,2016, by the City Council:
1. September 5,2017: a Tentative Millage rate will be established.
2. September 19,2017: a Final Millage rate will be established.
Submitting Department Director: John DeLeo Date: 7/3/17
Attachment: Resolution No. 2017-11
Financial Impact:
The proposed millage rate of 4.0190 provides a property tax revenue stream of $4,310,185.
These revenues are represented in the Proposed FY 2017/18 Budget at a 95% receipt rate and
allow for a balanced budget.
Reviewed by Administrative/Financial
Services Director: John DeLeo Date: 7/3/17
The City Manager recommends that City Council tal the following action:
Adopt Resolution No. 2017-11.
Approved by City Manager: David L. Greene Date: 7/6/17
RESOLUTION NO.2017-11
A RESOLUTION OF THE CITY OF CAPE CANAVERAL,
BREVARD COUNTY, FLORIDA, ADOPTING A
TENTATIVE PROPOSED MILLAGE RATE FOR THE
LEVY OF AD VALOREM TAXES FOR FISCAL YEAR
2017/2018 ON ALL TAXABLE PROPERTY LOCATED
WITHIN THE CITY OF CAPE CANAVERAL, BREVARD
COUNTY, FLORIDA; PROVIDING FOR AN EFFECTIVE
DATE.
WHEREAS, the City wishes to impose Ad Valorem Taxes based upon an approved
millage rate; and
WHEREAS,Florida Statute 200.065 expressly provides no millage shall be levied until a
resolution or ordinance has been approved by the governing board of the taxing authority and upon
preparation of a tentative budget,but prior to adoption thereof, each taxing authority shall compute
a tentative proposed millage rate necessary to fund the tentative budget other than the portion of
the budget to be funded from sources other than ad valorem taxes.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Cape
Canaveral, Brevard County, Florida, as follows:
Section 1. The total millage for all City operating purposes is 4.0190 mills on the dollar
of taxable value for the 2017/2018 Fiscal Year for the City of Cape Canaveral, Florida. This
millage represents a rate above the previous year's rate.
Section 2. The City of Cape Canaveral, Brevard County, Florida, hereby adopts and
imposes a tentative proposed millage rate of 3.9555 mills for General Government Millage. This
tentative proposed Ad Valorem Tax shall be levied upon the 2017 Tax Assessment Roll for Ad
Valorem Tax on all taxable property located within the City of Cape Canaveral and is to be used
for the City's Fiscal Year beginning October 1, 2017 and ending September 30, 2018.
City of Cape Canaveral,Florida
Resolution No.2017-11
Page 1
Section 3. The City of Cape Canaveral, Brevard County, Florida, hereby adopts and
imposes a tentative proposed millage rate of 0.0635 mills for the Library Dependent Special
District, as approved in the 1985 referendum election. This tentative proposed Ad Valorem Tax
shall be levied upon the 2017 Tax Assessment Roll for Ad Valorem Tax on all taxable property
located within the City of Cape Canaveral and is to be used for the City's Fiscal Year beginning
October 1, 2017 and ending September 30, 2018.
Section 4. This Resolution shall become effective immediately upon its adoption.
ADOPTED BY the City Council of the City of Cape Canaveral, Brevard County, Florida,
this 18th day of July, 2017.
Bob Hoog,Mayor
ATTEST:
Name For Against
Mia Goforth,CMC Mike Brown
City Clerk
Bob Hoog
Brendan McMillin
Rocky Randels
Betty Walsh
Approved as to Form:
Anthony A. Garganese, City Attorney
City of Cape Canaveral,Florida
Resolution No.2017-11
Page 2
City of Cape Canaveral
City Council Agenda Form
City Council Meeting Date: 7/18/2017
Item No. 3
Subject: Separate Resolutions, with associated Membership Agreements, have been prepared
to create three unique Property Assessed Clean Energy programs in the City, to include:
a. Resolution No. 2017-01; creating a Property Assessed Clean Energy Program within the
City of Cape Canaveral and joining the Clean Energy Green Corridor Program in
accordance with Section 163.08, Florida Statutes; authorizing and approving a non-
exclusive Membership Agreement between the City and the Green Corridor Property
Assessment Clean Energy(PACE)District Pursuant to Section 163.01, Florida Statutes;
providing for authorization, repeal of prior inconsistent resolutions, severability and an
effective date.
b. Resolution No. 2017-12; approving a Party Membership Agreement and its incorporated
Interlocal Agreement, in order to join the Florida Resiliency and Energy District's
Property Assessed Clean Energy (PACE) Program under Section 163.08, Florida
Statutes;providing for authorization,repeal of prior inconsistent resolutions,severability
and an effective date.
c.Resolution No.2017-13; creating a Property Assessed Clean Energy Program within the
City of Cape Canaveral; approving a Party Membership Agreement and its incorporated
Interlocal Agreement in order to join the Florida Green Finance Authority's Property
Assessed Clean Energy (PACE) Program under Section 163.01, Florida Statutes;
providing for authorization, repeal of prior inconsistent resolutions, severability and an
effective date.
Department: Community Development
Summary: At its March 21, 2017 Regular Meeting, City Council was provided an overview of
the PACE Program in Florida and how it may benefit property owners in Cape Canaveral with
respect to making/financing energy efficiency improvements to their real property(Attachment
1). The Council directed Staff to conduct further due diligence on adoption of a local PACE
program and vet interested third party administrators of the respective programs.
On April 18, 2017, Staff reached out to three potential PACE partners to request additional
information on their programs and better understand their services and to determine the best fit
for residents of Cape Canaveral. Information requested included:
1. Examples of past agreements used with other Florida municipalities;
2. A sampling of City/County governments in Florida currently being operated within;
3. 3-5 reference letters from the Mayor or City/County Manager of counties/cities you are
currently operating in;
4. A plan on how you will utilize(within Brevard County) contractors and suppliers;
5. A draft marketing plan that will be used to inform Cape Canaveral residents of the
program; and
6. A description of how program contractors will be qualified and what degree of monitoring
will be provided.
City Council Meeting
Date: 7/18/2017
Item No. 3
Page 2 of 4
Staff received a response from the following companies;
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 Gables and City of Miami. Ygrene
Energy Fund Florida,LLC (Ygrene)is the third party administrator for Green Corridor.
Ygrene was founded in 2010 with its first Florida office opened in 2013.Ygrene is serving
more than 7.2 million people in 85 cities and 10 counties in Florida.They have over 1,115
certified contractor companies that have completed 8,635 projects which represents over
$216 million in PACE financed contracts. The majority of projects consist of roof and
window/door retrofits. Based on the information provided,Ygrene has not completed any
projects in Brevard County.
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 and the City of Fernandina Beach. Renovate America is the third
party administrator for FRED.
Renovate America was founded in 2009 and asserts to be the country's largest provider
of PACE financing with over 88,000 homeowners financing more than $2.1 billion in
energy and efficiency improvements throughout the United States. They have been
approved to operate in 30 states and within the last month have begun providing services
in Florida. Renovate America is operating in Broward County, Charlotte County,
Hillsborough County, City of Orlando, City of Winter Park, City of Fernandina Beach,
City of Satellite Beach and the City of Boynton Beach among others.
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 Magnolia Park. Renew Financial is the third party administrator
for Florida Green.
Renew began operations in August 2016 and currently operates in over 72 Florida
jurisdictions (including the City of Satellite Beach) serving more than 5 million people
across 16 counties. Since its inception, Renew has funded 457 projects in Florida in the
amount of $7.87 million. Renew operates in 10 states with over 50,000 completed
projects; representing over $1 billion in financing.
Based on the submitted information, each of the potential providers register and vet local
contractors in the area to include credit checks, requiring a copy of proper licensure/insurance,
a Better Business Bureau review and minimum number of years in business. The providers also
conduct training for the contractors about program parameters. Projects are only funded upon
sign-off by the homeowner. Each also offers a dispute resolution process as well as added
protection for customers over 65 years of age.
City Council Meeting
Date: 7/18/2017
Item No. 3
Page 3 of 4
Marketing of the program varies slightly between the respective providers. Renew will focus
on recruitment and training of contractors who will in-turn provide information to homeowners
and maintain a searchable database on its website of all registered contractors to offer Renew
PACE financing in the City. Ygrene will utilize a direct mail campaign and leverage digital,
social and event marketing, advertising using radio, cable TV,billboards and event sponsorship.
Renovate uses a combined approach to include leveraging its contractor network to
educate/inform homeowners and a digital marketing campaign to generate awareness of its
services.
The City Attorney's office has prepared the attached Resolutions to create three separate
Property Assessed Clean Energy Programs within the City as well as the associated Membership
Agreements between the City and the three sponsoring districts.
The purpose of the Membership Agreement is to facilitate financing of qualifying improvements
for property owners within the City, by utilizing the respective programs. The Agreements are
non-exclusive which allows the City, at its sole discretion, to join any other entity providing
these services and authorize the boundaries of the respective programs to include the legal
boundaries of the City.
Further, the Agreement stipulates PACE providers will be solely responsible for all matters
associated with origination,funding,financing and administration of the respective assessments,
including responding to any complaints or inquiries by participants, tax certificate holders or
lenders.
The Agreements require the providers to acknowledge the City has no authority to bind the
County Tax Collector and the County Property Appraiser and that the providers will be required
to enter into separate agreements with these entities. Further, the City shall not incur nor ever
be requested to authorize or take steps to authorize any obligations secured by special
assessments associated with qualifying improvements imposed by the respective programs. The
parties agree that the City shall be a non-voting member of the respective districts for the term
of the Agreement.
Either party may terminate the Membership Agreement upon ninety days prior written notice.
The provider's obligations and responsibilities under the Agreement shall survive termination
in regards to financing agreements and assessments.
Submitting Department Director: David Dickey Date: 7/11/17
Attachments:
1 - PACE Program Background Information
2 - Resolution No. 2017-01 with Exhibit"A"
3 - Resolution No. 2017-12 with Exhibit "A"
4- Resolution No. 2017-13 with Exhibit"A"
Financial Impact: TBD
Reviewed by Administrative/Financial
Services Director: John DeLeo Date: 7/11/17
City Council Meeting
Date: 7/18/2017
Item No. 3
Page 4 of 4
The City Manager recommends that City Council take the following action(s):
Approve Resolution No. 2017-01, No. 2017-12 and No. 2017-13 and authorize the Mayor to
execute the respective Membership Agreements for the purpose of providing a PACE program
within the City limits.
Approved by City Manager: David L. Greene Date: 7/11/17
Attachment 1
Background: In 2010, the Florida Legislature adopted HB 7179,creating Section 163.08, Florida
Statutes, which emphasizes 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 the Legislature finds 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.
The 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. Adoption of the
attached resolution(s)will authorize the partnership(s)to operate within the jurisdictional limits of
the City of Cape Canaveral and will result in the City's jurisdictional limits becoming 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
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(s)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 participating Cape Canaveral property
owners.
Regarding available capital resources and the validity of each partnership/district, it is 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
Corridor Property Assessment Clean Energy (PACE) District validated revenue bonds not to
exceed$500,000,000.
Regarding management of the PACE Program, 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.
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.
From an operational and managerial standpoint, it is also important for Council to know 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 included in Exhibit 1 to this Attachment. 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.
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 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, refinances, 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.
Attachment 1
Exhibit 1
U.S.DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON,DC 20410-8000
ASSISTANT SECRETARY FOR HOUSING-
FEDERAL HOUSING COMMSSIONER
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 T 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 zip file)[hyperlink]
4
Attachment 2
RESOLUTION NO. 2017-01
A RESOLUTION OF THE CITY OF CAPE CANAVERAL,
BREVARD COUNTY, FLORIDA, CREATING A PROPERTY
ASSESSED CLEAN ENERGY PROGRAM WITHIN THE CITY OF
CAPE CANAVERAL AND JOINING THE CLEAN ENERGY
GREEN CORRIDOR PROGRAM IN ACCORDANCE WITH
SECTION 163.08, FLORIDA STATUTES; AUTHORIZING AND
APPROVING A NON-EXCLUSIVE MEMBERSHIP AGREEMENT
BETWEEN THE CITY AND THE GREEN CORRIDOR
PROPERTY ASSESSMENT CLEAN ENERGY (PACE) DISTRICT
PURSUANT TO SECTION 163.01, FLORIDA STATUTES;
PROVIDING FOR AUTHORIZATION, REPEAL OF PRIOR
INCONSISTENT RESOLUTIONS, SEVERABILITY AND AN
EFFECTIVE DATE.
WHEREAS, in 2010, the Florida Legislature adopted HB 7179 (Section 163.08,
F.S.)(the "PACE Act"), which allows local governments to create Property Assessed Clean
Energy (PACE) programs in order to provide the upfront financing for energy conservation and
efficiency (i.e. energy-efficient heating, cooling or ventilation systems), renewable energy (i.e.
solar panels), wind resistance (i.e. impact resistant windows) and other improvements that are
not inconsistent with state law (the "Qualifying Improvements"); and
WHEREAS, PACE programs not only assist residents and business owners in reducing
their carbon footprint and energy costs, but also stimulate the local economy by the creation of
needed construction jobs; and
WHEREAS, the PACE Act authorizes local governments that create PACE programs to
enter into a partnership in order to provide more affordable financing for the installation of the
Qualifying Improvements; and
WHEREAS, the Town of Cutler Bay, Village of Palmetto Bay, Village of Pinecrest, City
of South Miami, Miami Shores Village, City of Coral Gables and the City of Miami entered into
that certain Interlocal Agreement in 2012, which was recorded at Official Record Book 28217,
Page 0312 of Miami Dade County, Florida (the "Interlocal Agreement), establishing the Green
Corridor Property Assessment Clean Energy (PACE) District, a separate and distinct legal entity
in accordance with Section 163.01(7), for the purpose of administering a PACE program; and
WHEREAS, given the wide spread energy and economic benefits of PACE programs,
the City Council desires to join the Clean Energy Green Corridor PACE District, a public body
corporate and politic, in order to provide the upfront financing to property owners for Qualifying
Improvements and to enter into an interlocal agreement with the District, pursuant to section
163.01, Florida Statutes, for the purpose of financing such improvements; and
WHEREAS, the City Council finds that this Resolution is in the best interest and welfare
of the residents of the City of Cape Canaveral.
City of Cape Canaveral
Resolution No.2017-01
Page 1 of 3
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF CAPE CANAVERAL, FLORIDA,AS FOLLOWS:
Section 1. Recitals. The above recitals are true and correct and are incorporated herein by
this reference.
Section 2. Creation of PACE Program. The City Council hereby creates a PACE
Program pursuant to Section 163.08, Florida, for the purpose of providing upfront financing to
property owners for Qualifying Improvements.
Section 3. Adoption of Membership Agreement. The City Council hereby
approves a non-exclusive membership agreement pursuant to Section 163.01, Florida Statutes
between the City of Cape Canaveral and the Green Corridor Clean Energy Property Assessed
(PACE) District in substantially the form attached hereto as Exhibit "A" relating to the Clean
Energy Green Corridor (the "Membership Agreement"). The Membership Agreement shall
apply within the jurisdictional limits of the City of Cape Canaveral. Further, the Membership
Agreement shall be non-exclusive and shall not interfere with any other PACE Program that the
City has or will create, join or participate in on or after the Effective Date of this Resolution
pursuant to Section 163.08, Florida Statutes or other applicable law.
Section 4. Authorization. The City Manager or designee is hereby authorized to
execute the Membership Agreement and any other legal instrument necessary to implement the
Membership Agreement, subject to review by the City Attorney for legal form and sufficiency.
Section 5. Repeal of Prior Inconsistent Resolutions. All prior resolutions or parts
of resolutions in conflict herewith are hereby repealed to the extent of the conflict.
Section 6. Severability. If any section, subsection, sentence, clause, phrase, word or
portion of this Resolution is for any reason held invalid or unconstitutional by any court of
competent jurisdiction, such portion shall be deemed a separate, distinct and independent
provision and such holding shall not affect the validity of the remaining portion hereto.
Section 7. Effective Date. This Resolution shall take effect immediately upon
adoption.
[Adoption Page Follows]
City of Cape Canaveral
Resolution No.2017-01
Page 2 of 3
ADOPTED and RESOLVED, by the City Council of the City of Cape Canaveral,
Florida, this 18th day of July, 2017.
Bob Hoog, Mayor
ATTEST: For Against
Mia Goforth, CMC Mike Brown
City Clerk
Bob Hoog
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
Resolution No.2017-01
Page 3 of 3
Resolution No. 2017-01
Exhibit "A"
MEMBERSHIP AGREEMENT
BETWEEN THE GREEN CORRIDOR PROPERTY ASSESSMENT
CLEAN ENERGY (PACE) DISTRICT AND CITY OF CAPE CANAVERAL
This Membership Agreement(the"Membership Agreement")is entered into this day
of , 2017 by and between the Green Corridor Property Assessment Clean
Energy (PACE) District, a public body corporate and politic (the"Green Corridor"), and City of
Cape Canaveral, Florida, a Florida municipal corporation (the "City") (collectively, the
"Parties")for the purpose of providing a PACE program within the jurisdictional limits of the City
of Cape Canaveral, Florida.
RECITALS
WHEREAS, on August 6, 2012, the Green Corridor was created as a separate legal entity
pursuant to Section 163.01(7),Florida Statutes, to finance qualifying improvements in accordance
with Section 163.08, Florida Statutes; and
WHEREAS, on July 18, 2017, the City Council of the City of Cape Canaveral, Florida
adopted Resolution No. 2017-01 agreeing to join the Green Corridor as a non-voting member in
order to finance qualifying improvements in the City of Cape Canaveral in accordance with
Section 163.08, Florida Statutes; and
WHEREAS, the Parties have determined that entering into this Membership Agreement
is in the best interest and welfare of the property owners within the Green Corridor and City of
Cape Canaveral.
NOW, THEREFORE, in consideration of the terms and conditions, promises and
covenants hereinafter set forth, the Parties agree as follows:
1. Recitals Incorporated. The above recitals are true and correct and incorporated
herein.
2. Purpose. The purpose of this Membership Agreement is to facilitate the financing
of qualifying improvements for property owners within the jurisdictional limits of
the City of Cape Canaveral in accordance with Section 163.08,Florida Statutes, by
virtue of the City's joining the Green Corridor as a non-voting member and utilizing
the Green Corridor's existing program (the "Program").
3. Qualifying Improvements. The City shall allow the Green Corridor to provide
financing of qualifying improvements, as defined in Section 163.08, Florida
Statutes, on properties within the City of Cape Canaveral.
4. Non-Exclusive. The Green Corridor Program is non-exclusive, meaning the City
specifically reserves the right, at its sole discretion, to join any other entity
providing a similar program under Section 163.08, Florida Statutes or other
Membership Agreement
Green Corridor/City of Cape Canaveral
1
applicable law, or create its own program under Section 163.08,Florida Statutes or
other applicable law.
5. Program Guidelines: The Parties agree that, unless the City desires to implement
its own local program guidelines as described below, the Program to be offered in
the City will be wholly governed by the Green Corridor's Program Guidelines. If
the City desires to implement its own local program guidelines, it may do so upon
sixty (60) days written notice to the Green Corridor. Any such local program
guidelines can be amended and changed only by the authorized designee of the
City. These local program guidelines shall be consistent with the Green Corridor's
guidelines. The City may adopt more restrictive guidelines than that of the Green
Corridor. However, if there is a conflict between the Green Corridor's guidelines
and the City's guidelines, the Green Corridor's guidelines shall control.
6. Boundaries. Pursuant to this Membership Agreement, the boundaries of the Green
Corridor shall include the legal boundaries of the City, which boundaries may be
limited, expanded, or more specifically designated from time to time by the City at
the City's sole discretion. The City will provide written notice to the Green
Corridor of any such limitation, expansion or designation. As contemplated in the
Interlocal Agreement (as defined in Section 8) and as supplemented by this
Membership Agreement, the Green Corridor will, on a non-exclusive basis, levy
voluntary non ad-valorem special assessments on the benefitted properties within
the boundaries of the City to help finance the costs of qualifying improvements for
those individual properties. Those properties receiving financing for qualifying
improvements shall be assessed from time to time, in accordance with Section
163.08, Florida Statutes and other applicable law. Notwithstanding termination of
this Membership Agreement or notice of a change in boundaries by the City of
Cape Canaveral as provided for above, those properties that have received
financing for qualifying improvements shall continue to be a part of the Green
Corridor, until such time that all outstanding debt has been satisfied.
7. Financing Agreement. The Parties agree that the Green Corridor may enter into a
financing agreement, pursuant to Section 163.08, Florida Statutes, with property
owner(s)within the City who obtain financing through the Green Corridor.
8. Amended and Restated Interlocal Agreement. The Parties agree that the City shall
be subject to all terms, covenants and conditions of the Amended Restated
Interlocal Agreement recorded in the Official Records of Miami-Dade County at
Official Records Book 28217, Page 0312, which created the Green Corridor (the
"Interlocal Agreement"). In the event of any conflict between the Interlocal
Agreement and this Membership Agreement, this Membership Agreement shall
control the rights and obligations of the City.
9. Responsibilities of the Green Corridor; Indemnification. The Green Corridor shall
be solely responsible for all matters associated with origination, funding, financing
and administration of each of the Green Corridor's authorized non ad-valorem
assessments, including responding to any complaints or inquiries by participants,
tax certificate holders, lenders or others relating to the Program's special
Membership Agreement
Green Corridor/City of Cape Canaveral
2
assessments, the Program's financing agreements, the Program's qualifying
improvements, or any other aspect of the Program. Green Corridor shall defend,
indemnify and hold harmless the City, its officers, employees, attorneys and
agents, from and against any and all demands, claims, losses, suits, liabilities,
causes of action, judgment or damages, arising out of, related to or in any way
connected with Green Corridor's, and/or any of Green Corridor's designees or
agents, performance or non-performance of any provision of this Membership
Agreement or the PACE Program arising from contracts between Green Corridor
and/or any of Green Corridor's designees and agents and any third parties made
pursuant to this Membership Agreement. In addition,the foregoing obligation shall
expressly include all demands, claims, losses, suits, liabilities, causes of action,
judgment or damages, arising out of or based on a challenge to whether the
voluntary non-ad valorem assessment constitute a lien of equal dignity to taxes or
greater priority than other recorded instruments, as authorized by the PACE
enabling act under Florida law. Also, Green Corridor agrees to indemnify and hold
harmless the City from and against collection risk related to the bonds issued for
PACE assessments within the City. The Parties also agree that the City and its
employees, officers and attorneys shall also receive the full benefits of the
indemnification provided for in Section 16 of the Interlocal Agreement, and that
such indemnification provision shall also apply to the City.
10. Agreements with Tax Collector,Property Appraiser and Municipalities. The Green
Corridor acknowledges that the City has no authority to bind the County Tax
Collector and the County Property Appraiser, and the Green Corridor will be
required to enter into separate agreement(s) with the County Tax Collector and/or
the County Property Appraiser, which shall establish the fees (if any)to be charged
by the Tax Collector and Property Appraiser for the collection or handling of the
Program's special assessments. If required by the tax collector and property
appraiser,the City agrees to enter into those agreements as a third-party to facilitate
the collection of the non-ad valorem special assessments imposed by Green
Corridor. However, Green Corridor shall be solely responsible for professionally
coordinating all interface with the tax collector and property appraiser. Green
Corridor shall take all action necessary for the lawful levy of the special
assessments against all lands and properties specifically benefitted by the
acquisition, construction and financing of qualifying improvements. The City shall
not incur or ever be requested to authorize or take steps to authorize any obligations
secured by special assessments associated with qualifying improvements imposed
by Green Corridor.
11. Resale or Refinancing of a Property. The Green Corridor recognizes that some
lenders may require full repayment of the Program's special assessments upon
resale or refinancing of a property subject to the Program's special assessments.
The Green Corridor agrees to provide written disclosure of this matter to all City
of Cape Canaveral property owners that may utilize the Program.
12. Term; Green Corridor's Obligations After Termination. This Membership
Agreement shall remain in full force and effect from the date of its execution by
both Parties. Any Party may terminate this Membership Agreement upon ninety
Membership Agreement
Green Corridor/City of Cape Canaveral
3
(90) days prior written notice. Green Corridor's obligations and responsibilities
under this Membership Agreement shall survive termination in regards to financing
agreements and assessments that have not been satisfied by Cape Canaveral
property owners prior to the termination of the Agreement, and such obligations
and responsibilities shall remain in effect until the outstanding debt has been
completely satisfied. The termination of this Membership Agreement shall also
constitute a termination of the City's joining the Green Corridor PACE Program
and termination and release of the City from any and all duties, rights and
obligations under the Interlocal Agreement and as a limited member of the Green
Corridor District.
13. Consent. This Membership Agreement and any required resolution or ordinance of
an individual Party shall be considered the City's consent to joining the Green
Corridor and participation therein, as required by Section 163.08, Florida Statutes.
14. Voting Rights. The Parties agree that the City shall be a non-voting member of the
Green Corridor for the term of this Membership Agreement.
15. Notices. Any notices to be given hereunder shall be in writing and shall be deemed
to have been given if sent by hand delivery, recognized overnight courier (such as
Federal Express), or by written certified U.S. mail, with return receipt requested,
addressed to the Party for whom it is intended, at the place specified. For the
present, the Parties designate the following as the respective places for notice
purposes:
If to Green Corridor:
Paul Winkelj ohn, Executive Director
Green Corridor
5385 Nob Hill Rd.
Sunrise, FL 33351
If to City of Cape Canaveral:
Attn: City Manager
City Hall
100 Polk Avenue
Cape Canaveral, Florida 32920
With a Copy to:
City Attorney
Anthony A. Garganese
111 N. Orange Avenue, Suite 2000
Orlando, Florida 32802
16. Amendments. It is further agreed that no modification, amendment or alteration in
the terms or conditions herein shall be effective unless contained in a written
document executed by the Parties hereto.
Membership Agreement
Green Corridor/City of Cape Canaveral
4
17. Joint Effort. The preparation of this Membership Agreement has been a joint effort
of the Parties hereto and the resulting document shall not, solely as a matter of
judicial construction, be construed more severely against one of the Parties than the
other.
18. Merger. This Membership Agreement incorporates and includes all prior
negotiations, correspondence, agreements or understandings applicable to the
matters contained herein; and the Parties agree that there are no commitments,
agreements or understandings concerning the subject matter of this Membership
Agreement that are not contained in this document. Accordingly, the Parties agree
that no deviation from the terms hereof shall be predicated upon any prior
representations or agreements, whether oral or written. It is further agreed that no
change, amendment, alteration or modification in the terms and conditions
contained herein shall be effective unless contained in a written document,
executed with the same formality and of equal dignity herewith by all Parties to
this Membership Agreement.
19. Assignment. The respective obligations of the Parties set forth in this Membership
Agreement shall not be assigned, in whole or in part, without the written consent
of the other Party hereto.
20. Records. The Parties shall each maintain their own respective records and
documents associated with this Membership Agreement in accordance with the
requirements for records retention set forth in Chapter 119, Florida Statutes.
21. No Third Party Beneficiaries. It is the intent and agreement of the Parties that this
Agreement is solely for the benefit of the Parties and no person not a party hereto
shall have any rights or privileges hereunder.
22. Severability. In the event a portion of this Membership Agreement is found by a
court of competent jurisdiction to be invalid, the remaining provisions shall
continue to be effective.
23. Law, Jurisdiction, Venue. This Membership Agreement shall be interpreted and
construed in accordance with and governed by the laws of the state of Florida. The
Parties agree that the exclusive venue for any lawsuit arising from, related to, or in
connection with this Agreement shall be in the state courts of the Eighteenth
Judicial Circuit in and for Brevard County,Florida,the United States District Court
for the Middle District of Florida, Orlando Division, or United States Bankruptcy
Court for the Middle District of Florida, Orlando Division, as appropriate.
24. Sovereign Immunity. No provision of this Membership Agreement, the Interlocal
Agreement, or any other legal instrument between the Parties to implement the
Program, shall be construed or deemed a waiver or avoidance of any common law
or statutory right to sovereign immunity or of any other defenses, privileges and
immunities enjoyed by the City or Green Corridor and their respective elected and
appointed officers, employees and agents under any applicable law. Nothing in this
Membership Agreement is intended to inure to the benefit of any third party for the
Membership Agreement
Green Corridor/City of Cape Canaveral
5
purpose of allowing any claim which would otherwise be barred under the doctrine
of sovereign immunity or by operation of law. This Paragraph shall survive
termination.
25. Covenant Not To Impose Any Financial Obligations On The City. Green Corridor
covenants and agrees for itself and its members (voting and nonvoting),
directors, officers, employees, contractors and agents that Green Corridor shall not
have any right or power to impose or otherwise monetarily obligate the City to pay
any assessment, charge, fee, penalty, dues or any other compensation or funds
arising out of or in any way concerning the City's participation in the membership,
the Interlocal Agreement and this Membership Agreement. Not under any
circumstances whatsoever shall the City be liable for or obligated to pay, secure or
perform any debts, liabilities, conditions or obligations arising out of any financing
agreement or instrument, special assessment, lien, mortgage agreed to by any
property owner or its representative under the Program. Furthermore, the City shall
not be responsible or obligated for paying any debts, obligations or liabilities arising
out of or resulting from any acts or omissions of Green Corridor or its members,
directors, officers, employees, contractors and agents.
26. Effective Date. This Membership Agreement shall become effective upon the
execution by the Parties hereto.
27. Reporting to the City. On an annual basis, or upon request of the City in writing,
Green Corridor shall provide the City with a written report reporting on the
implementation of the PACE Program within the jurisdictional limits of the City.
The report will include a summary of the properties serviced, the Qualifying
Improvements made, the amount paid for the Qualifying Improvements, and such
other information reasonably requested by the City. In addition, upon request by
the City, Green Corridor shall provide the City with a copy of its annual audit
required by Florida law.
28. Recordation. If required, this Membership Agreement shall be filed by the Authority
with the Clerk of the Court in the Public Records of Miami-Dade County as an
amendment to the Interlocal Agreement and recorded in the public records of the
City of Cape Canaveral, Brevard County in accordance with Section 163.01(11),
Florida Statutes.
IN WITNESS WHEREOF, the Parties hereto have made and executed this Membership
Agreement on this day of July, 2017.
ATTEST: GREEN CORRIDOR PROPERTY
ASSESSMENT CLEAN ENERGY
(PACE)DISTRICT
By: By:
District Secretary Executive Director
Membership Agreement
Green Corridor/City of Cape Canaveral
6
APPROVED AS TO FORM
AND LEGAL SUFFICIENCY:
By:
Weiss Serota Helfman
Cole & Bierman P.L., District Attorney
ATTEST: CITY OF CAPE CANAVERAL,
FLORIDA
By: By:
Mia Goforth, CMC, City Clerk Bob Hoog, Mayor
APPROVED AS TO FORM
AND LEGAL SUFFICIENCY for the
City of Cape Canaveral only:
By:
Anthony A. Garganese, City Attorney
Membership Agreement
Green Corridor/City of Cape Canaveral
7
Attachment 3
RESOLUTION NO. 2017-12
A RESOLUTION OF THE CITY OF CAPE CANAVERAL,
BREVARD COUNTY, FLORIDA, APPROVING A PARTY
MEMBERSHIP AGREEMENT AND ITS INCORPORATED
INTERLOCAL AGREEMENT, IN ORDER TO JOIN THE
FLORIDA RESILIENCY AND ENERGY DISTRICT'S PROPERTY
ASSESSED CLEAN ENERGY (PACE) PROGRAM UNDER
SECTION 163.08, FLORIDA STATUTES; PROVIDING FOR
AUTHORIZATION, REPEAL OF PRIOR INCONSISTENT
RESOLUTIONS, SEVERABILITY AND AN EFFECTIVE DATE.
WHEREAS, in 2010, the Florida Legislature adopted HB 7179 (Section 163.08, F.S.)
(the "PACE Act"), which allows local governments to create Property Assessed Clean Energy
(PACE) programs in order to provide the upfront financing for energy conservation and
efficiency (i.e. energy-efficient heating, cooling, or ventilation systems), renewable energy (i.e.
solar panels), wind resistance (i.e. impact resistant windows) and other improvements that are
not inconsistent with state law(the"Qualifying Improvements"); and
WHEREAS, PACE programs not only assist residents and business owners in reducing
their carbon footprint and energy costs, but also stimulate the local economy by the creation of
needed construction jobs; and
WHEREAS, the PACE Act authorizes local governments that create PACE programs to
enter into a partnership in order to provide more affordable financing for the installation of the
Qualifying Improvements; and
WHEREAS, the Town of Lake Clarke Shores, the City of Fernandina Beach, and the
Florida Development Finance Corporation entered into that certain Interlocal Agreement dated
September 6, 2016, (the "Interlocal Agreement), establishing the Florida Resiliency and Energy
District, a separate and distinct legal entity in accordance with Section 163.01(7), for the purpose
of administering a PACE program under the PACE Act; and
WHEREAS, other local governments may join the Florida Resiliency and Energy
District program by executing a Party Membership Agreement whereby such a local government
becomes a limited member to the Interlocal Agreement; and
WHEREAS, given the wide spread energy and economic benefits of PACE programs,
the City Council desires to join the Florida Resiliency and Energy District as a limited member
in order to provide the upfront financing to property owners within the City for Qualifying
Improvements and to enter into an interlocal agreement with the District, pursuant to section
163.01, Florida Statutes, for the purpose of financing such improvements; and
WHEREAS,the City Council finds that this Resolution is in the best interest and welfare
of the residents of the City of Cape Canaveral.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF CAPE CANAVERAL,FLORIDA,AS FOLLOWS:
City of Cape Canaveral
Resolution No.2017-12
Page 1 of 3
Section 1. Recitals. The above recitals are true and correct and are incorporated herein
by this reference.
Section 2. Creation of PACE Program. The City Council hereby creates a PACE
Program pursuant to Section 163.08, Florida, for the purpose of providing upfront financing to
property owners for Qualifying Improvements.
Section 3. Adoption of Party Membership Agreement. The City Council hereby
approves a non-exclusive party membership agreement between the Florida Resiliency and
Energy District and the City of Cape Canaveral in substantially the form attached hereto as
Exhibit "A" (the "Membership Agreement"). The Membership Agreement shall apply within
the jurisdictional limits of the City of Cape Canaveral. Further, the Membership Agreement
shall be non-exclusive and shall not interfere with any other PACE Program that the City has or
will create, join or participate in on or after the Effective Date of this Resolution pursuant to
Section 163.08, Florida Statutes or other applicable law.
Section 4. Authorization. The City Manager or his designee is hereby authorized to
execute the Membership Agreement and any other legal instrument necessary to implement the
Membership Agreement, subject to review by the City Attorney for legal form and sufficiency.
Section 5. Repeal of Prior Inconsistent Resolutions. All prior resolutions or parts
of resolutions in conflict herewith are hereby repealed to the extent of the conflict.
Section 6. Severability. If any section, subsection, sentence, clause, phrase, word or
portion of this Resolution is for any reason held invalid or unconstitutional by any court of
competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision
and such holding shall not affect the validity of the remaining portion hereto.
Section 7. Effective Date. This Resolution shall take effect immediately upon
adoption.
[Adoption Page Follows]
City of Cape Canaveral
Resolution No.2017-12
Page 2 of 3
ADOPTED and RESOLVED, by the City Council of the City of Cape Canaveral,
Florida, this 18th day of July, 2017.
Bob Hoog,Mayor
ATTEST: For Against
Mia Goforth, CMC Mike Brown
City Clerk
Bob Hoog
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
Resolution No.2017-12
Page 3 of 3
Resolution No. 2017-12
Exhibit "A"
This instrument was prepared by or under the supervision
of(and after recording should be returned to):
Joseph P. Stanton
Broad&Cassel
Bank of America Center
390 North Orange Avenue
Suite 1400
Orlando,FL 32801-4961
(SPACE reserved for Clerk of Court)
LIMITED PURPOSE PARTY MEMBERSHIP AGREEMENT BETWEEN
THE FLORIDA RESILIENCY AND ENERGY DISTRICT AND THE CITY OF
CAPE CANAVERAL
This Limited Purpose Party Membership Agreement (the "Agreement") is entered
into this day of , 2017 by and between the 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, and the CITY OF
CAPE CANAVERAL, a Florida municipal corporation (the "City") (collectively, the
"Parties") for the purpose of providing a Property Assessed Clean Energy ("PACE")
program within the legal boundaries of the City.
NOW, THEREFORE, in consideration of the above recitals,terms and conditions,
promises and covenants hereinafter set forth, the Parties agree as follows:
SECTION 1. PURPOSE. The purpose of this Agreement is to facilitate
the financing of Qualifying Improvements through a PACE program, in accordance with
Section 163.08, Florida Statutes, and provide an efficient process for real property owners
within the legal boundaries of the City of Cape Canaveral to access the Florida
Development Finance Corporation (FDFC) PACE program and permit FRED to
administer the FDFC PACE program within such legal boundaries.
SECTION 2. PARTIES TO THE INTERLOCAL AGREEMENT. The
Interlocal Agreement, dated September 6, 2016 (the "Interlocal Agreement") between the
Town of Clarke Shores, the City of Fernandina Beach, the Florida Development Finance
Corporation (FDFC) in the limited capacity described therein and any subsequent parties
thereto is incorporated herein by this reference. The City is hereby deemed a party to the
Interlocal Agreement by virtue of becoming a "limited member" under the Interlocal
Agreement, as necessary to fulfill the purposes described in this Agreement, including
access to financing and processing of non-ad valorem special assessments by FRED,within
the legal boundaries of the City of Cape Canaveral, as more specifically described below,
and in accordance with federal, state and local laws, rules, regulations, ordinances, and all
operational program standards of the City of Cape Canaveral. In the event of any conflict
between the Interlocal Agreement and this Agreement, this Agreement shall control the
rights and obligations of the Parties.
1
FDFC 12-21-16
SECTION 3. FINDING OF SPECIAL BENEFIT AND LEVY OF
SPECIAL ASSESSMENTS. The City hereby fmds and acknowledges that access to
fmancing for Qualifying Improvements through the FDFC PACE Program provides a
special benefit to real property within its legal boundaries which special benefit is secured
by the imposition, levy, apportionment and collection of non-ad valorem special
assessments consistent with the common powers provided in this Agreement, FRED and
the City acknowledge and agree that the non-ad valorem special assessments arising from a
property owner's voluntary participation in the FDFC PACE Program shall be levied by
FRED on behalf of the City and the receipt and distribution of any non-ad valorem special
assessments imposed by FRED are purely ministerial acts.
FRED shall be solely responsible for all matters associated with origination, funding,
financing, collection and administration of each of the FRED's authorized non-ad valorem
assessments. FRED's responsibilities include: (1) FRED defending, indemnifying and
holding harmless the City and its officers, attorneys and employees as provided in the
Interlocal Agreement and this Agreement; (2) FRED responding to any complaints or
inquiries by participants, tax certificate holders, lenders or others relating to the Program's
special assessments, the FDFC Pace Program's financing agreements, the Program's
qualifying improvements or any other aspect of the FDFC Pace Program; (3) FRED
ensuring and being responsible for compliance with all laws, rules and regulations in the
imposition and collection of any special assessments levied upon property owned by
participating property owners who have entered into a financing agreement.
SECTION 4. QUALIFYING IMPROVEMENTS. FRED may provide
Access to financing for Qualifying Improvements to real property within the legal
boundaries of the City of Cape Canaveral, in accordance with Section 163.08, Florida
Statutes, and subject to the terms of this Agreement, as well as applicable federal, state
and City law.
SECTION 5. FINANCING AGREEMENT. Before extending any
financing or subjecting any participating real property within the legal boundaries of the
City to the non-ad valorem special assessment authorized therein, FRED, for itself and
any FRED designee or agent, shall, on a non-exclusive basis pursuant to Section 163.08,
Florida Statutes and this Agreement, enter into a financing agreement (the "Financing
Agreement") with property owner(s) within the legal boundaries of the City who qualify
for financing through FRED. The Financing Agreement shall include a thorough
explanation of the PACE financing process and specify at what point in the process the
special assessment will be added to the real property's owner's property tax bills (after
completion of the project(s), permit approval and approval by the property owner).
SECTION 6. BOUNDARIES OF THE PACE PROGRAM. For the
limited purposes of administering the PACE program and imposing non-ad valorem special
assessments as described in this Agreement, the legal boundaries of FRED shall include
the legal boundaries of the City of Cape Canaveral, which legal boundaries may be limited,
2
FDFC 12-21-16
expanded to reflect annexation, or more specifically designated from time to time by the
City by providing written notice to FRED. Upon execution of this Agreement and written
request thereafter, the City agrees to provide FRED the current legal description of the
legal boundaries of the City of Cape Canaveral.
SECTION 7. ELIGIBLE PROPERTIES. Within the legal boundaries of
the City, improved real property, including any residential, commercial, agricultural and
industrial use may be eligible for participation in the FDFC PACE program within the
limits otherwise prescribed in Section 163.08, Florida Statutes.
SECTION 8. SURVIVAL OF SPECIAL ASSESSMENTS. During the
term of this Agreement, FRED may levy voluntary non-ad valorem special assessments on
participating properties within the legal boundaries of the City to help secure the financing
of costs of Qualifying Improvements constructed or acquired on such properties based on
the finding of special benefit by the City incorporated into Section 3 hereof. Those
properties receiving financing for Qualifying Improvements shall be assessed by FRED
until such time as the financing for such Qualified Improvement is repaid in full, in
accordance with Section 163.08, Florida Statutes, and other applicable law.
Notwithstanding termination of this Agreement or notice of a change in the legal
boundaries of the City as provided for herein, those properties that have received financing
for Qualifying Improvements shall continue to be a part of FRED, until such time that all
outstanding debt has been satisfied.
SECTION 9. TERM. This Agreement shall remain in full force and effect from
the date of its execution by both Parties. Any Party may terminate this Agreement for
convenience upon ninety (90) days prior written notice ("Termination Notice") in
accordance with the terms of the Interlocal Agreement. Beginning on the date FRED
receives a Termination Notice from the City ("Termination Date"), FRED shall not
approve any new applications affecting property within the legal boundaries of the City
referenced in the Termination Notice. Notwithstanding termination of this Agreement,
however, property owners whose applications were approved prior to the Termination
Date, and who received funding through the FDFC PACE program, shall continue to be a
part of FRED, for the sole purpose of FRED imposing assessments for the repayment of
such property's outstanding debt, until such time that all outstanding debt has been
satisfied. The termination of this Agreement shall also constitute a termination of the City's
joining FRED's PACE Program and termination and release of the City from any and all
duties, rights and obligations under the Interlocal Agreement and as a limited member of
FRED.
SECTION 10. CONSENT. This Agreement, together with Resolution No.
2017-12 adopted by the City Council of Cape Canaveral approving this Agreement, shall
be considered the Parties' consent to authorize FRED to exercise its powers pursuant to
Section 163.08, Florida Statutes and to provide access for the FDFC PACE program to
operate within the legal boundaries of the City, as required by Section 163.08, Florida
Statutes.
3
FDFC 12-21-16
SECTION 11. CITY COORDINATOR. The City's Community Development
Director or such other City employee or agent designated by the City Manager in writing,
shall serve as the City's primary point of contact and coordinator. The City will advise
FRED of any changes to the City's primary contact and coordinator within 30 days of
such changes.
SECTION 12. CARBON OR SIMILAR CREDITS. To the extent
permitted by law, in the event that the Financing Agreement or any other PACE agreement
with the property owner provides for the transfer of any carbon or similar mitigation credits
derived from Qualifying Improvements to FRED, any such carbon or similar mitigation
credits derived from properties within the legal boundaries of the City, shall be shared in
equal parts between FRED and the City.
SECTION 13. LIMITED OBLIGATIONS. Neither FRED nor any of FRED's
designees or agents thereof is authorized to issue bonds, or any other form of debt, on
behalf of the City. To the extent that FRED or any of FRED's designees or agents thereof
issues PACE-related bonds under its own authority in connection with this Agreement, the
security for such bonds may be secured by non-ad valorem special assessments imposed by
FRED on participating properties within the legal boundaries of the City. The issuance of
such bonds shall not directly or indirectly or contingently obligate the City to levy or to
pledge any form of taxation whatsoever, or to levy ad valorem taxes on any property within
their territorial limits to pay the bonds, and the bonds shall not constitute a lien upon any
property owned by the City or any pledge of City revenues. For any such bonds, the bond
disclosure document, if any, shall include reference to the fact that the City is not an obligated
party, and also adequately disclose material attendant risks with the FDFC PACE Program.
SECTION 14. RESPONSIBILITIES OF FRED; INDEMNIFICATION.
FRED shall be solely responsible for all matters associated with origination, funding,
financing and administration of each of the authorized non-ad valorem assessments,
including responding to any complaints or inquiries by participants, tax certificate holders,
lenders or others relating to the FDFC Program's special assessments, financing agreements,
qualifying improvements or any other aspect of the FDFC PACE Program. FRED shall
defend, indemnify and hold harmless the City, its officers, employees, attorneys and agents,
from and against any and all demands, claims, losses, suits, liabilities, causes of action,
judgment or damages, arising out of, related to or in any way connected with FRED's and/
or any of FRED's designees or agents, performance or non-performance of any provision of
this Agreement or the FDFC PACE Program arising from contracts between FRED and/or
any of FRED's designees and agents and any third parties made pursuant to this Agreement.
In addition, the foregoing obligation shall expressly include all demands, claims, losses,
suits, liabilities, causes of action, judgment or damages, arising out of or based on a
challenge to whether the voluntary non-ad valorem assessment constitute a lien of equal
dignity to taxes, or greater priority than other recorded instruments, as authorized by the
PACE enabling act under Florida law. Also, FRED agrees to indemnify and hold harmless
the City from and against collection risk related to the bonds issued for PACE assessments
within the City.
4
FDFC 12-21-16
Further, the Parties understand that the City and its employees, officers and attorneys shall
also receive the full benefit of any indemnification of the members under the Interlocal
Agreement, and that such provisions shall fully apply to the City as if specifically set forth
herein. The City shall promptly notify FRED of any claim giving rise to a right to indemnify
and shall fully cooperate with FRED in defense of such claims.
This Section 14 shall survive termination of this Agreement.
SECTION 15. AGREEMENTS WITH TAX COLLECTOR AND
PROPERTY APPRAISER. This Agreement shall be subject to the express condition
precedent that FRED enter into separate agreement(s) with the tax collector and the
property appraiser having jurisdiction over the legal boundaries of the City, which shall
provide for the collection of any non-ad valorem special assessments imposed by FRED
within the legal boundaries of the City. If required by the tax collector and property
appraiser, the City agrees to enter into those agreements as a third-party to facilitate the
collection of the non-ad valorem special assessments imposed by FRED. FRED shall be
solely responsible for professionally coordinating all interface with the tax collector and
property appraiser. FRED shall take all action necessary for the lawful levy of the special
assessments against all lands and properties specifically benefitted by the acquisition,
construction and financing of qualifying improvements. The City shall not incur or ever
be requested to authorize or take steps to authorize any obligations secured by special
assessments associated with qualifying improvements imposed by FRED.
SECTION 16. OPINION OF BOND COUNSEL. FRED warrants, based on
FRED's legal counsel's review of the bond validation judgment and the underlying bond
documents that the FDFC PACE program's structure complies with the bond validation
judgment and the underlying bond documents.
SECTION 17. AGENTS OF FRED. FRED shall ensure that its agents,
administrators, subcontractors, successors and assigns are, at all times, in compliance with
the terms of this Agreement and applicable City, state and federal laws. FRED
acknowledges and agrees that FDFC is an agent of FRED pursuant to the Interlocal
Agreement.
SECTION 18. NOTICES. Any notices to be given hereunder shall be in writing
and shall be deemed to have been given if sent by hand delivery, recognized overnight
courier (such as Federal Express), or by written certified U.S. mail, with return receipt
requested, or by electronic mail, addressed to the Party for whom it is intended, at the place
specified. For the present, the Parties designate the following as the respective places for
notice purposes:
If to FRED:
The Florida Resiliency and Energy District
5
FDFC 12-21-16
c/o Florida Development Finance
Corporation William "Bill" F. Spivey, Jr.
Executive Director
800 N. Magnolia Avenue, Suite 1100
Orlando, Florida 32803
407.956.5695 (t)
bspivey@fdfcbonds.com
and Issuer's Counsel with Broad and Cassel
Joseph Stanton, Esq.
Bank of America Center
390 North Orange Avenue
Suite 1400
Orlando, FL 32801-4961
407.839.4200 (t)
j stanton @bro adandc as sel.com
If to City of Cape Canaveral:
Attn: City Manager
City Hall
100 Polk Avenue
Cape Canaveral, Florida 32920
With a Copy to:
City Attorney
Anthony A. Garganese
111 N. Orange Avenue, Suite 2000
Orlando, Florida 32802
SECTION 19. AMENDMENTS. No modification, amendment or alteration
in the terms or conditions contained herein shall be effective unless contained in a written
document prepared with the same or similar formality as this agreement and executed by
the City and FRED or other delegated authority authorized to execute same on their behalf.
SECTION 20. JOINT EFFORT. The preparation of this Agreement has been a
joint effort of the Parties hereto and the resulting document shall not, solely as a matter of
judicial construction, be construed more severely against one of the Parties than the other.
SECTION 21. MERGER. This Agreement represents the final and complete
understanding of the Parties regarding the subject matter hereof and supersedes all prior
and contemporaneous negotiations, correspondence, agreements or understandings
applicable to the matters contained herein; and the Parties agree that there are no
commitments, agreements or understandings concerning the subject matter of this
6
FDFC 12-21-16
Agreement that are not contained in this document. Accordingly, the Parties agree that no
deviation from the terms hereof shall be predicated upon any prior representations or
agreements, whether oral or written.
SECTION 22. ASSIGNMENT. The respective obligations of the Parties set
forth in this Agreement shall not be assigned, in whole or in part, without the written
consent of the other Party hereto.
SECTION 23. THIRD PARTY BENEFICIARIES. None of the Parties intend
to directly or substantially benefit a third party by this Agreement. Therefore, the Parties
acknowledge that there are no third party beneficiaries to this Agreement and that no third
party shall be entitled to assert a right or claim against either of them based upon this
Agreement; provided, however, that counsel to the Parties may rely on this
Agreement for purposes of providing any legal opinions required by the issuance of debt
to finance the Qualifying Improvements.
SECTION 24. RECORDS. The Parties shall each maintain their own respective
records and documents associated with this Agreement in accordance with the
requirements for records retention set forth in Chapter 119, Florida Statutes.
SECTION 25. RECORDING. This Limited Purpose Party Membership
Agreement shall be filed by FRED as an amendment to the Interlocal Agreement with the
Clerk of the Circuit Court in the Public Records of the County where FRED maintains its
principal place of business, and in Brevard County, in accordance with Section 163.01(11),
Florida Statutes.
SECTION 26. SEVERABILITY. In the event a portion of this Agreement is
found to be unenforceable by a court of competent jurisdiction, that part shall be deemed
severed from this Agreement and the remaining provisions of this Agreement shall remain
in full force and effect.
SECTION 27. EFFECTIVE DATE. This Agreement shall become effective
upon the execution by both Parties hereto, and recordation in accordance with Section 25
herein.
SECTION 28. LAW, JURISDICTION, AND VENUE. This Agreement
shall be interpreted and construed in accordance with and governed by the laws of the state
of Florida. The Parties agree that the exclusive venue for any lawsuit arising from, related
to, or in connection with this Agreement shall be in the state courts of the Eighteenth
Judicial Circuit in and for Brevard County, Florida, the United States District Court for
the Middle District of Florida, Orlando Division or United States Bankruptcy Court for
the Middle District of Florida, Orlando Division, as appropriate.
7
FDFC 12-21-16
SECTION 29. SOVEREIGN IMMUNITY. No provision of this
Agreement, the Interlocal Agreement, or any other legal instrument between the Parties to
implement the FDFC PACE Program, shall be construed or deemed a waiver or avoidance
of any common law or statutory right to sovereign immunity or of any other defenses,
privileges and immunities enjoyed by the City or FRED and their respective elected and
appointed officers, employees and agents under any applicable law. Nothing in this
Agreement is intended to inure to the benefit of any third party for the purpose of allowing
any claim which would otherwise be barred under the doctrine of sovereign immunity or by
operation of law. This Paragraph shall survive termination.
SECTION 30. COVENANT NOT TO IMPOSE ANY FINANCIAL
OBLIGATIONS ON THE CITY. FRED covenants and agrees for itself and its members
(voting and nonvoting), directors, officers, employees, contractors and agents that FRED
shall not have any right or power to impose or otherwise monetarily obligate the City to pay
any assessment, charge, fee, penalty, dues or any other compensation or funds arising out of
or in any way concerning the City's participation in the membership, the Interlocal
Agreement and this Agreement. Not under any circumstances whatsoever shall the City be
liable for or obligated to pay, secure or perform any debts, liabilities, conditions or
obligations arising out of any financing agreement or instrument, special assessment, lien,
mortgage agreed to by any property owner or its representative under the FDFC PACE
Program. Furthermore, the City shall not be responsible or obligated for paying any debts,
obligations or liabilities arising out of or resulting from any acts or omissions of FRED or its
members, directors, officers, employees, contractors and agents.
SECTION 31. REPORTING TO THE CITY. On an annual basis, or upon
request of the City in writing, FRED shall provide the City with a written report reporting on the
implementation of the FDFC PACE Program within the jurisdictional limits of the City. The report
will include a summary of the properties serviced, the Qualifying Improvements made, the amount
paid for the Qualifying Improvements and such other information reasonably requested by the City.
In addition, upon request by the City, FRED shall provide the City with a copy of its annual audit
required by Florida law.
[SIGNATURE PAGES FOLLOW]
8
FDFC 12-21-16
[SIGNATURE PAGE TO LIMITED PURPOSE PARTY MEMBERSHIP AGREEMENT]
IN WITNESS WHEREOF, the Parties hereto have made and executed this Agreement
on this day of , 2017.
CITY OF CAPE CANAVERAL
By:
Bob Hoog
Mayor
For the City of Cape Canaveral, Florida
Attest:
By:
Mia Goforth, CMC, City Clerk
Date:
STATE OF FLORIDA
COUNTY OF
The foregoing instrument was acknowledged before me this day of
, 2017, by Bob Hoog, Mayor of the City of Cape Canaveral, Florida, who is
personally known to me or has produced as identification.
Printed/Typed Name:
(SEAL) Notary Public-State of Florida
Commission Number:
9
FDFC 12-21-16
[SIGNATURE PAGE TO LIMITED PURPOSE PARTY MEMBERSHIP AGREEMENT]
WITNESS: FLORIDA DEVELOPMENT FINANCE
CORPORATION on behalf of FLORIDA
RESILIENCY AND ENERGY DISTRICT
By:
William "Bill" F. Spivey, Jr.
WITNESS: Executive Director
STATE OF FLORIDA
COUNTY OF
The foregoing instrument was acknowledged before me this day of
, 2017, by William "Bill" F. Spivey, Jr., Executive Director of the Florida
Development Finance Corporation, who is personally known to me/has produced
as identification.
Printed/Typed Name:
(SEAL) Notary Public-State of Florida
Commission Number:
10
FDFC 12-21-16
Attachment 4
RESOLUTION NO. 2017-13
A RESOLUTION OF THE CITY OF CAPE CANAVERAL,
BREVARD COUNTY, FLORIDA, CREATING A PROPERTY
ASSESSED CLEAN ENERGY PROGRAM WITHIN THE CITY OF
CAPE CANAVERAL; APPROVING A PARTY MEMBERSHIP
AGREEMENT AND ITS INCORPORATED INTERLOCAL
AGREEMENT IN ORDER TO JOIN THE FLORIDA GREEN
FINANCE AUTHORITY'S PROPERTY ASSESSED CLEAN
ENERGY (PACE) PROGRAM UNDER SECTION 163.08,
FLORIDA STATUTES; PROVIDING FOR AUTHORIZATION,
REPEAL OF PRIOR INCONSISTENT RESOLUTIONS,
SEVERABILITY AND AN EFFECTIVE DATE.
WHEREAS, in 2010, the Florida Legislature adopted HB 7179 (Section 163.08,
F.S.)(the "PACE Act"), which allows local governments to create Property Assessed Clean
Energy (PACE) programs in order to provide the upfront financing for energy conservation and
efficiency (i.e. energy-efficient heating, cooling, or ventilation systems), renewable energy (i.e.
solar panels), wind resistance (i.e. impact resistant windows) and other improvements that are
not inconsistent with state law (the "Qualifying Improvements"); and
WHEREAS, PACE programs not only assist residents and business owners in reducing
their carbon footprint and energy costs, but also stimulate the local economy by the creation of
needed construction jobs; and
WHEREAS, the PACE Act authorizes local governments that create PACE programs to
enter into a partnership in order to provide more affordable financing for the installation of the
Qualifying Improvements; and
WHEREAS, the Town of Lantana, Florida, a Florida municipal corporation ("Lantana")
and the Town of Mangonia Park, Florida, a Florida municipal corporation, ("Mangonia Park")
entered into an Interlocal Agreement, dated June 11, 2012, as first amended on August 11, 2014
and second amended on April 7, 2016 with document execution May 9, 2016, establishing the
Florida Green Finance Authority, a separate and distinct legal entity in accordance with Section
163.01(7), as a means of implementing and financing a qualifying improvements program for
energy and water conservation and efficiency, renewable energy and wind-resistance
improvements, and to provide additional services consistent with law; and
WHEREAS, given the wide spread energy and economic benefits of PACE programs,
the City Council desires to join the Florida Green Finance Authority, a public body corporate and
politic, in order to provide the upfront financing to property owners for Qualifying
Improvements and to enter into an interlocal agreement with the District, pursuant to section
163.01, Florida Statutes, for the purpose of financing such improvements; and
WHEREAS, the City Council finds that this Resolution is in the best interest and welfare
of the residents of the City of Cape Canaveral.
City of Cape Canaveral
Resolution No.2017-13
Page 1 of 3
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF CAPE CANAVERAL, FLORIDA,AS FOLLOWS:
Section 1. Recitals. The above recitals are true and correct and are incorporated
herein by this reference.
Section 2. Creation of PACE Program. The City Council hereby creates a PACE
Program pursuant to Section 163.08, Florida, for the purpose of providing upfront financing to
property owners for Qualifying Improvements.
Section 3. Adoption of Membership Agreement. The City Council hereby
approves a non-exclusive membership agreement pursuant to Section 163.01, Florida Statutes
between the City of Cape Canaveral and the Florida Green Finance Authority in substantially the
form attached hereto as Exhibit "A" relating to the Authority's PACE program (the
"Membership Agreement"). The Membership Agreement shall apply within the jurisdictional
limits of the City of Cape Canaveral. Further, the Membership Agreement shall be non-
exclusive and shall not interfere with any other PACE Program that the City has or will create,
join or participate in on or after the Effective Date of this Resolution pursuant to Section 163.08,
Florida Statutes or other applicable law.
Section 4. Authorization. The City Manager or designee is hereby authorized to
execute the Membership Agreement and any other legal instrument necessary to implement the
Membership Agreement, subject to review by the City Attorney for legal form and sufficiency.
Section 5. Repeal of Prior Inconsistent Resolutions. All prior resolutions or parts
of resolutions in conflict herewith are hereby repealed to the extent of the conflict.
Section 6. Severability. If any section, subsection, sentence, clause, phrase, word or
portion of this Resolution is for any reason held invalid or unconstitutional by any court of
competent jurisdiction, such portion shall be deemed a separate, distinct and independent
provision and such holding shall not affect the validity of the remaining portion hereto.
Section 7. Effective Date. This Resolution shall take effect immediately upon
adoption.
[Adoption Page Follows]
City of Cape Canaveral
Resolution No.2017-13
Page 2 of 3
ADOPTED and RESOLVED, by the City Council of the City of Cape Canaveral,
Florida, this 18th day of July, 2017.
Bob Hoog, Mayor
ATTEST: For Against
Mia Goforth, CMC Mike Brown
City Clerk
Bob Hoog
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
Resolution No.2017-13
Page 3 of 3
Resolution No. 2017-13
Party Membership Agreement Exhibit "A"
To The Florida Green Finance Authority
This Membership Agreement(the"Membership Agreement")is entered into this day
of , 2017 by and between the Florida Green Finance Authority, a public body
corporate and politic(the"Authority"), and City of Cape Canaveral,Florida, a Florida municipal
corporation(the"City") (collectively, the"Parties")for the purpose of providing a PACE program
within the jurisdictional limits of the City of Cape Canaveral, Florida.
RECITALS
WHEREAS, Section 163.01, F.S., the "Florida Interlocal Cooperation Act of 1969,"
authorizes local government units to enter into interlocal agreements for their mutual benefit; and
WHEREAS, the Town of Lantana, Florida, a Florida municipal corporation ("Lantana")
and the Town of Mangonia Park, Florida, a Florida municipal corporation, ("Mangonia Park")
entered into an Interlocal Agreement, dated June 11, 2012, as first amended on August 11, 2014
and second amended on April 7, 2016 with document execution May 9, 2016, establishing the
Florida Green Finance Authority as a means of implementing and financing a qualifying
improvements program for energy and water conservation and efficiency, renewable energy and
wind-resistance improvements, and to provide additional services consistent with law; and
WHEREAS, on July 18, 2017, the City Council of the City of Cape Canaveral, Florida
adopted Resolution No. 2017-13 agreeing to join the Authority by becoming an Additional Party
under the Interlocal Agreement in order to finance qualifying improvements in the City of Cape
Canaveral in accordance with Section 163.08, Florida Statutes; and
WHEREAS,the City of Cape Canaveral desires to become a member of the Florida Green
Finance Authority in order to facilitate the financing of qualifying improvements for properties
located within the City of Cape Canaveral.
NOW,THEREFORE, it is agreed as follows:
1. Recitals Incorporated. The above recitals are true and correct and incorporated herein.
2. Purpose. The purpose of this Membership Agreement is to facilitate the financing of
qualifying improvements for property owners within the jurisdictional limits of the City of Cape
Canaveral in accordance with Section 163.08, Florida Statutes, by virtue of the City's joining the
Authority as an Additional Party and utilizing the Authority's existing PACE program (the
"Program").
3. Interlocal Agreement. The Interlocal Agreement between the Florida Green Finance
Authority, the Town of Lantana and the Town of Mangonia Park, entered into on June 11, 2012
and as amended on August 11, 2014 and April 7, 2016 with document execution May 9, 2016 (the
1
"Interlocal Agreement"), for the purpose of facilitating the financing of qualifying improvements
for properties located within the Authority's jurisdiction via the levy and collection of voluntary
non-ad valorem assessments on improved property, is hereby supplemented and amended on the
date last signed below by this Party Membership Agreement, which is hereby fully incorporated
into the Interlocal Agreement, to include the City of Cape Canaveral.
The Authority, together with its member Parties, and the City of Cape Canaveral, with the
intent to be bound thereto, hereby agree that the City of Cape Canaveral shall become a Party to
the Interlocal Agreement together with all of the rights and obligations of Parties to the Interlocal
Agreement.
4. Qualifying Improvements. The City shall allow the Authority to provide financing of
qualifying improvements, as defined in Section 163.08, Florida Statutes, on properties within the
City of Cape Canaveral.
5. Non-Exclusive. The Authority's Program is non-exclusive, meaning the City specifically
reserves the right, at its sole discretion, to join any other entity providing a similar program under
Section 163.08, Florida Statutes or other applicable law, or create its own program under Section
163.08, Florida Statutes or other applicable law.
6. Program Guidelines: The Parties agree that, unless the City desires to implement its own
local program guidelines as described below, the Program to be offered in the City will be wholly
governed by the Authority's Program Guidelines. If the City desires to implement its own local
program guidelines, it may do so upon sixty (60) days written notice to the Authority. Any such
local program guidelines can be amended and changed only by the authorized designee of the City.
These local program guidelines shall be consistent with the Authority's guidelines. The City may
adopt more restrictive guidelines than that of the Authority. However, if there is a conflict between
the Authority's guidelines and the City's guidelines, the Authority's guidelines shall control.
7. Boundaries. Pursuant to this Membership Agreement,the boundaries of the Authority shall
include the legal boundaries of the City, which boundaries may be limited, expanded or more
specifically designated from time to time by the City at the City's sole discretion. The City will
provide written notice to the Authority of any such limitation, expansion or designation. As
contemplated in the Interlocal Agreement (as defined in Section 3) and as supplemented by this
Membership Agreement, the Authority will, on a non-exclusive basis, levy voluntary non ad-
valorem special assessments on the benefitted properties within the boundaries of the City to
help finance the costs of qualifying improvements for those individual properties. Those
properties receiving financing for qualifying improvements shall be assessed from time to time,
in accordance with Section 163.08, Florida Statutes and other applicable law. Notwithstanding
termination of this Membership Agreement or notice of a change in boundaries by the City of
Cape Canaveral as provided for above, those properties that have received financing for
qualifying improvements shall continue to be a part of the Authority, until such time that all
outstanding debt has been satisfied.
2
8. Financing Agreement. The Parties agree that the Authority may enter into a financing
agreement, pursuant to Section 163.08, Florida Statutes, with property owner(s) within the City
who obtain financing through the Authority.
9. Responsibilities of the Authority; Indemnification. The Authority shall be solely
responsible for all matters associated with origination, funding, financing and administration of
each of the Authority's authorized non-ad valorem assessments, including responding to any
complaints or inquiries by participants, tax certificate holders, lenders or others relating to the
Program's special assessments, the Program's financing agreements, the Program's qualifying
improvements, or any other aspect of the Program. The Authority shall defend, indemnify and
hold harmless the City, its officers, employees, attorneys and agents from and against any and all
demands, claims, losses, suits, liabilities, causes of action, judgment or damages, arising out of,
related to, or in any way connected with Authority's, and/or any of Authority's designees or
agents, performance or non-performance of any provision of this Membership Agreement or the
PACE Program arising from contracts between Authority and/or any of Authority's designees
and agents and any third parties made pursuant to this Membership Agreement. In addition, the
foregoing obligation shall expressly include all demands, claims, losses, suits, liabilities, causes
of action, judgment or damages, arising out of or based on a challenge to whether the voluntary
non-ad valorem assessment constitute a lien of equal dignity to taxes, or greater priority than
other recorded instruments, as authorized by the PACE enabling act under Florida law. Also, the
Authority agrees to indemnify and hold harmless the City from and against collection risk related
to the bonds issued for PACE assessments within the City.
10. Agreements with Tax Collector, Property Appraiser and Municipalities. The Authority
acknowledges that the City has no authority to bind the County Tax Collector and the County
Property Appraiser, and the Authority will be required to enter into separate agreement(s)with the
County Tax Collector and/or the County Property Appraiser, which shall establish the fees (if any)
to be charged by the Tax Collector and Property Appraiser for the collection or handling of the
Program's special assessments. If required by the tax collector and property appraiser, the City
agrees to enter into those agreements as a third-party to facilitate the collection of the non-ad
valorem special assessments imposed by Authority. However, the Authority shall be solely
responsible for professionally coordinating all interface with the tax collector and property
appraiser. Authority shall take all action necessary for the lawful levy of the special assessments
against all lands and properties specifically benefitted by the acquisition, construction and
financing of qualifying improvements. The City shall not incur or ever be requested to authorize
or take steps to authorize any obligations secured by special assessments associated with qualifying
improvements imposed by the Authority.
11. Resale or Refinancing of a Property. The Authority recognizes that some lenders may
require full repayment of the Program's special assessments upon resale or refinancing of a
property subject to the Program's special assessments. The Authority agrees to provide written
disclosure of this matter to all City of Cape Canaveral property owners that may utilize the
Program.
12. Term; Authority's Obligations After Termination. This Membership Agreement shall
remain in full force and effect from the date of its execution by both Parties. Any Party may
3
terminate this Membership Agreement upon ninety(90)days prior written notice. The termination
of this Membership Agreement shall also constitute a termination of the City's joining the
Authority's PACE Program and termination and release of the City from any and all duties, rights
and obligations under the Interlocal Agreement and as a member of the Authority. The Authority's
obligations and responsibilities under this Membership Agreement shall survive termination in
regards to financing agreements and assessments that have not been satisfied by Cape Canaveral
property owners prior to the termination of the Agreement, and such obligations and
responsibilities shall remain in effect until the outstanding debt has been completely satisfied.
13. Consent. This Membership Agreement and any required resolution or ordinance of an
individual Party shall be considered the City's consent to joining the Authority and participation
therein, as required by Section 163.08, Florida Statutes.
14. Voting Rights. The Parties agree that the City shall only have voting rights that are
provided under the Interlocal Agreement, if any.
15. Notices. Any notices to be given hereunder shall be in writing and shall be deemed to have
been given if sent by hand delivery, recognized overnight courier(such as Federal Express), or by
written certified U.S. mail, with return receipt requested, addressed to the Party for whom it is
intended, at the place specified. For the present, the Parties designate the following as the
respective places for notice purposes:
If to the Authority:
Attention: Board Chair
500 Greynolds Circle
Lantana, FL 33462
If to City of Cape Canaveral:
Attn: City Manager, Cape Canaveral
100 Polk Avenue
Cape Canaveral, FL 32920
With a copy to: City Attorney, Cape Canaveral
Garganese, Weiss & D'Agresta, P.A.
111 N. Orange Avenue, Suite 2000
Orlando, FL 32801
16. Amendments. It is further agreed that no modification, amendment or alteration in the
terms or conditions herein shall be effective unless contained in a written document executed by
the Parties hereto.
4
17. Joint Effort. The preparation of this Membership Agreement has been a joint effort of the
Parties hereto and the resulting document shall not, solely as a matter of judicial construction, be
construed more severely against one of the Parties than the other.
18. Merger. This Membership Agreement incorporates and includes all prior negotiations,
correspondence, agreements or understandings applicable to the matters contained herein; and
the Parties agree that there are no commitments, agreements or understandings concerning the
subject matter of this Membership Agreement that are not contained in this document.
Accordingly, the Parties agree that no deviation from the terms hereof shall be predicated upon
any prior representations or agreements, whether oral or written. It is further agreed that no
change, amendment, alteration or modification in the terms and conditions contained herein shall
be effective unless contained in a written document, executed with the same formality, and of
equal dignity herewith by all Parties to this Membership Agreement.
19. Assignment. The respective obligations of the Parties set forth in this Membership
Agreement shall not be assigned, in whole or in part, without the written consent of the other Party
hereto.
20. Records. The Parties shall each maintain their own respective records and documents
associated with this Membership Agreement in accordance with the requirements for records
retention set forth in Chapter 119, Florida Statutes.
21. No Third Party Beneficiaries. It is the intent and agreement of the Parties that this
Agreement is solely for the benefit of the Parties and no person not a party hereto shall have any
rights or privileges hereunder.
22. Severability. In the event a portion of this Membership Agreement is found by a court of
competent jurisdiction to be invalid, the remaining provisions shall continue to be effective.
23. Law, Jurisdiction, Venue. This Membership Agreement shall be interpreted and construed
in accordance with and governed by the laws of the state of Florida. The Parties agree that the
exclusive venue for any lawsuit arising from,related to, or in connection with this Agreement shall
be in the state courts of the Eighteenth Judicial Circuit in and for Brevard County, Florida, the
United States District Court for the Middle District of Florida, Orlando Division, or United States
Bankruptcy Court for the Middle District of Florida, Orlando Division, as appropriate.
24. Sovereign Immunity. No provision of this Membership Agreement, the Interlocal
Agreement or any other legal instrument between the Parties to implement the Program, shall be
construed or deemed a waiver or avoidance of any common law or statutory right to sovereign
immunity or of any other defenses, privileges and immunities enjoyed by the City or Authority
and their respective elected and appointed officers, employees and agents under any applicable
law. Nothing in this Membership Agreement is intended to inure to the benefit of any third party
for the purpose of allowing any claim which would otherwise be barred under the doctrine of
sovereign immunity or by operation of law. This Paragraph shall survive termination.
25. Covenant Not To Impose Any Financial Obligations On The City. Authority covenants
and agrees for itself and its members (voting and nonvoting), directors, officers, employees,
5
contractors and agents that Authority shall not have any right or power to impose or otherwise
monetarily obligate the City to pay any assessment, charge, fee, penalty, dues or any other
compensation or funds arising out of or in any way concerning the City's participation in the
membership, the Interlocal Agreement and this Membership Agreement. Not under any
circumstances whatsoever shall the City be liable for or obligated to pay, secure or perform any
debts, liabilities, conditions or obligations arising out of any financing agreement or instrument,
special assessment, lien or mortgage agreed to by any property owner or its representative under
the Program. Furthermore, the City shall not be responsible or obligated for paying any debts,
obligations or liabilities arising out of or resulting from any acts or omissions of Authority or its
members, directors, officers, employees, contractors and agents.
26. Effective Date. This Membership Agreement shall become effective upon the execution by
the Parties hereto.
27. Reporting to the City. On an annual basis, or upon request of the City in writing,
Authority shall provide the City with a written report reporting on the implementation of the PACE
Program within the jurisdictional limits of the City. The report will include a summary of the
properties serviced, the Qualifying Improvements made, the amount paid for the Qualifying
Improvements and such other information reasonably requested by the City. In addition, upon
request by the City, Authority shall provide the City with a copy of its annual audit required by
Florida law.
28. Recordation. This Membership Agreement shall be filed by the Authority with the Clerk
of the Court in the Public Records of Palm Beach County as an amendment to the Interlocal
Agreement and recorded in the public records of the City of Cape Canaveral, Brevard County in
accordance with Section 163.01(11), Florida Statutes.
IN WITNESS WHEREOF, the Parties hereto subscribe their names to this Interlocal
Agreement by their duly authorized officers.
ATTEST: The Florida Green Finance Authority, a separate
legal entity established pursuant to Section 163.01(7),
Florida Statutes
By: By:
Secretary of the Authority Chair of the Authority
Approved by Authority Attorney
as to form and legal sufficiency
Authority Attorney
6
ATTEST: CITY OF CAPE CANAVERAL, through its
CITY COUNCIL
By:
Mia Goforth, CMC Bob Hoog
City Clerk Mayor
Clerk of the City Council of the City
Of Cape Canaveral, Florida
[Seal] day of , 2017.
Approved as to form by:
City of Cape Canaveral, City Attorney
Garganese, Weiss & D'Agresta, P.A.
111 N. Orange Avenue, Suite 2000
Orlando, FL 32801
By:
Anthony A. Garganese (Date)
City Attorney
7
City of Cape Canaveral
[city seal] City Council Agenda Form
City Council Meeting Date: 7/18/2017
Item No. 4
Subject: Based on the February 15, 2017 City of Cape Canaveral Wastewater Revenue
Sufficiency Analysis completed by Raftelis Financial Consultants, the following actions are
needed:
a. Resolution No.2017-08;establishing the City's reclaimed water rates in accordance with
Article IV of Chapter 78 of the City Code for City fiscal years 2016/2017 through
2020/2021; providing for the repeal of prior inconsistent resolutions; incorporation into
Appendix B, Schedule of Fees; severability and an effective date.
b. Resolution No. 2017-09; revising the City's Sanitary Sewer Service Fee Schedule in
accordance with Article III of Chapter 78 of the City Code for City fiscal years
2016/2017 through 2020/2021;repealing the rental property rate category and providing
for ratification of sewer rates for sewer customers affected by said repeal;repeal of prior
inconsistent resolutions; incorporation into Appendix B, Schedule of Fees; severability
and an effective date.
Department: Public Works Services
Summary:
A recent City of Cape Canaveral Wastewater Revenue Sufficiency Analysis was prepared by
Raftelis Financial Consultants, Inc. (Attachment 1) in order to establish sewer and reclaimed
rates for City fiscal year 2016/2017 through 2020/2021. Results of the Analysis will be
presented and discussed.
Associated with the Analysis presentation are the following two proposed City Resolutions:
• Resolution No. 2017-08 establishing reclaimed irrigation usage fee rates and
equivalencies (Attachment 2); and
• Resolution No. 2017-09 amending the Sewer Utility fee rates,rate factors and
customer classifications (Attachment 3).
The Analysis contains findings, conclusions, recommendations and supporting data associated
with the design and determination of recommended sewer customer reclassifications, rate
structure modifications, reclaimed water rates and sewer rate component adjustments of
approximately 2.50% for the next four fiscal years ending in 2020/21 for the cost recovery
system of the Sewer Utility.
Resolution No. 2017-08 revises Appendix B, Schedule of Fees, of the Code of Ordinances to
reflect the reclaimed water irrigation usage fees and customer classifications including the basis
of determining equivalencies and applicable multi-year rate structures(see Table 12 below from
the Analysis).Reclaimed water irrigation proposals reflected in the Analysis include,but are not
limited to,the following:
• Reclaimed irrigation water service is a valuable service and costs for such services
should be recovered from those who benefit through a rate structure that does not require
an added expense of metering usage.
o An equivalency basis referred to as Equivalent Reclaimed Irrigation Connection
(ERIC) is proposed setting the service levels as follows:
City Council Meeting
Date: 7/18/2017
Item No. 4
Page 2 of 3
• 1 - inch diameter connection= 1 ERIC
• 2 - inch diameter connection=4 ERICs
• 4 - inch diameter connection= 12 ERICs
o The rate structure for reclaimed water irrigation connections is limited to a flat
monthly charge per ERIC due to the unmetered condition of all connections.
Table 12. Schedule of Proposed Multi-Year User Rates
2016/17 2017/18 2018/19 2019/20 2020/21
Customer Charge per Bill
All Classes $2.03 $2.09 $2.15 $2.21 $2.27
Readiness to Serve Charge
per ERU
Single Family $17.33 $17.77 $18.22 $18.68 $19.15
Commercial $21.68 $22.23 $22.79 $23.36 $23.95
Public Buildings $17.33 $17.77 $18.22 $18.68 $19.15
Usage Rate per 1,000 gal.
Single Family $5.64 $5.79 $5.94 $6.09 $6.25
Commercial $7.04 $7.22 $7.41 $7.60 $7.79
Public Buildings $5.64 $5.79 $5.94 $6.09 $6.25
Sewer Flat Rate
Multi-Family $29.70 $30.45 $31.22 $32.01 $32.82
Reclaimed Water Flat Rate
per ERU
All Classes $7.34 $7.53 $7.72 $7.92 $8.12
Resolution No. 2017-08 revises Appendix B, Schedule of Fees, of the Code of Ordinances
generally as follows:
SCHEDULE OF RATES.
2016/17 2017/18 2018/19 2019/20 2020/2021
Customer Charge per Bill
All Classes $2.03 $2.09 $2.15 $2.21 $2.27
Readiness to Serve Charge per ERU
Single Family $17.33 $17.77 $18.22 $18.68 $19.15
Commercial $21.68 $22.23 $22.79 $23.36 $23.95
Public Buildings $17.33 $17.77 $18.22 $18.68 $19.15
Usage Rate per 1,000 gal.
Single Family $5.64 $5.79 $5.94 $6.09 $6.25
Commercial $7.04 $7.22 $7.41 $7.60 $7.79
Public Buildings $5.64 $5.79 $5.94 $6.09 $6.25
City Council Meeting
Date: 7/18/2017
Item No. 4
Page 3 of 3
Sewer Flat Rate
Multi-Family $29.70 $30.45 $31.22 $32.01 $32.82
Resolution No. 2017-09 also repeals the sewer rate for Rental Property established by
Resolution No. 2012-06. The Rental Property category was never implemented by the City.
Sewer customers that would have fallen within this rate category continue to be charged under
the commercial rate category. Because the commercial rate resulted in a lower sewer rate being
paid by the affected sewer customers,the Resolution ratifies all previous sewer charges imposed
by the City on the affected Rental Property customers from the effective date of Resolution No.
2012-06 and no refund is owed to said customers. Furthermore,the Resolution expressly repeals
and retroactively deems the Rental Property rate category null and void from the date that
Resolution No. 2012-06 became effective. Sewer customers that would have fallen under the
Rental Property category will continue to be charged under the commercial rate category.
Current reclaimed and sewer rates will remain the same until October 1,2017. At that time,the
reclaimed and sewer rates will be adjusted on an annual basis in accordance with the new rate
schedules being adopted by the attached Resolutions.
Submitting Department Director: John DeLeo/Jeff Ratliff 7/5/17
Attachment:
Attachment#1 Wastewater Revenue Sufficiency Analysis—February 15, 2017
Attachment#2: Resolution No. 2017-08.
Attachment#3: Resolution No. 2017-09.
Financial Impact: There will be no fiscal impact for the current fiscal year. Rate structure
modifications will generate sufficient revenue to offset future financial obligations for the next
four fiscal years. Staff time to prepare this Agenda Item.
Reviewed by Administrative/Financial
Services Director: John DeLeo Date: 7/5/17
The City Manager recommends that City Council take the following action:
Adopt Resolution No. 2017-08 and Resolution No. 2017-09.
Approved by City Manager: David L. Greene Date: 7/8/17
Attachment 1
950 S.Winter Park Drive Phone 407 . 960 .1806 www.raftelis.com
Suite 240 fax 407. 960 .18113
Casselberry, FL. 32707
RAFTELIS
February 15, 2017
John DeLeo
Director of Administrative and Financial Services
City of Cape Canaveral
105 Polk Ave.
Cape Canaveral, FL 32920
Subject: Wastewater Revenue Sufficiency Analysis
Dear Mr. DeLeo
The City of Cape Canaveral (the "City") retained Raftelis Financial Consultants, Inc. (RFC) to perform a
wastewater revenue sufficiency analysis for the Utility enterprise(the "Utility"). The primary goals of the
analysis are: 1) to generate sufficient revenues to: a) provide for operating requirements including
Operating and Maintenance (O&M) expenses, Debt Service and coverage, Renewal and Replacement
(R&R), and transfers; b) fully fund existing and near term capital improvements program (CIP); and c)
increase the Operating and R&R reserve funds to fiscally adequate levels; and 2) maintain a just and
equitable rate structure for all customer classifications.
Approach
This study utilizes a systematic approach to identify the sufficiency of revenue, generated from the
existing schedule of rates and charges,to address needs of forecasted operating fiscal requirements, CIP
and reserve funds. The primary tasks of this approach consists of:
1) Forecasting the revenue sufficiency, based on existing user rates and customer activities, to
meet existing fiscal requirements associated with operating budgets including existing debt
service, required transfers and minor capital needs appropriated annually from rate
revenues;
2) Forecasting fiscal requirements through fiscal year 2020/21 based on growth and inflation;
3) Incorporating the probable funding sources for the CIP;and
4) Identifying if rate adjustments are necessary for operating requirements, CIP and reserve
fund objectives.
The study process utilizes a dynamic Excel spreadsheet computer model to manage data, project
requirements, calculate results from alternative assumptions, test the appropriateness of the results,
provide a mechanism to document results and make available a user-friendly platform to interface with
City staff and public presentations.
Existing Sewer Revenue Generating System
The Utility's existing cost recovery system for providing sewer service is comprised of: (i) user rates and
charges (monthly base and usage charges); (ii) other charges for services (special service requests,
penalties, interest earnings, reclaimed water hook-up fees, miscellaneous services, etc.); and (iii)
Assessment Fees from new connections. It should be noted that operating revenues provided through
user rates and charges, and other charges for services are unrestricted and primarily utilized to pay the
Utility's operating and maintenance expenses and capital improvements; whereas Assessment Fee
revenues, which are actually impact fees, are restricted and limited for use in expansion related projects
and debt service.
Mr.John DeLeo February 15, 2017
Revenue Sufficiency Analysis Page 2
The Utility's existing cost recovery system was last adjusted with the adoption of Resolution No. 2012-06
adopted April 17, 2012, and provided for annual rate adjustments through fiscal year 2015/16. The
existing rate structure provides for the following:
1. Customer Billing Charge—a fixed charge per bill.
2. Sewer Readiness to Serve Charge—a uniform charge per Equivalent Residential Unit(ERU),where
one ERU is equal to the service characteristics of a Single Family dwelling unit.
3. Usage Rate—a charge based on the recorded billable metered water usage and a uniform rate
per 1,000 gallons.
4. Flat Sewer Charge—a fixed charge per residential dwelling unit for Multi-Family class only.
5. Flat Reclaimed Water Charge—a fixed charge per Equivalent Irrigation Connection(EIC).
Summarized in Table 1 are the existing monthly rate components and amounts effective as of October 1,
2015. It should be noted that pursuant to agreements, the City currently does not charge for reclaimed
water used by the City of Cocoa Beach and Port Canaveral.
Table 1. Existing Monthly Rates and Charges
Amount
Customer Charge per Bill $2.03
Readiness to Serve Charge per ERU
Single Family $17.33
Commercial $21.68
Public Buildings $17.33
Usage Rate per 1,000 gal.
Single Family $5.64
Multi-family $0.00
Commercial $7.04
Sewer Service Charge
Multi-family $29.70
Reclaimed Per ERIC'S
All Customer $7.34
A comparison of typical Single Family monthly 5,000-gallon wastewater service bill amounts,exclusive of
taxes and other charges,for regionally located utilities, is provided in Graph 1. It is important to note that
utilities throughout Florida and the nation differ significantly in: a) the way they are capitalized; b)
operations: c)service areas; d) customer characteristics;e) geographical location; f) quality of service;g)
community standards and many other factors. These differences are all reflected in the amounts charged
and resulting impacts on customer classes. Additionally, a significant number of utilities use water
revenues to subsidize sewer revenue shortfalls. This combined revenue approach to rates is not
uncommon; however,since the City provides only sewer services the sewer rates herein more accurately
reflect the costs of such services.
Mr.John DeLeo February 15, 2017
Revenue Sufficiency Analysis Page 3
GRAPH 1. WASTEWATER BILL
COMPARISON @ 5,000 GALLONS
Barefoot Bay xt i.x.i
CC-Existing s r.:4,
Palm Bay $46.95
Cocoa - -41-1,162±11111111111.111111.111111
Melbourne ` 846A$
I olly 11111 $41.44 11111111111
North Brevard $39.60 111
NSB illimoi- $38.96 - -
West Melbourne -imam - x$38$2 1111111
Vern Beach $37.84
Ormond Beach $31.0®
Indian River Cnty $30.I7-
-- Most utilities subsidize wnstew,icr
Rockledge $29.Is requirements through water rates.
Cocoa 241.1111111111111111.
0 10 20 30 40 50 60 70
[end of graph 1]
Existing and Projected Customers
The initial customer data provided by the City was reviewed and after discussions with City staff was
determined to adequately represent the sewer customers currently connected along with total ERUs and
usage activity by customer classification. Also,as concurred by City staff,growth in sewer customers have
historically been relatively low and are projected to remain low for the purpose of this study. A summary
of the Utility's wastewater customers for fiscal year 2015/16 along with corresponding ERUs, billable
usage and revenue by classification is provided in Table 2. Further customer details and growth
projections are provided in Schedule 1.
Table 2. FY 2015/16 Wastewater Connections,ERUs, Usage and Revenue Relationships
Average(monthly) 1, Annual Usage Revenues
Connections % ERUs % Amount 1 °i6 Amount
Single Family 1,767 64.1% 1,797 20.1% 57,565 19.4% $821,600 21.2%
Multi-Family 762 27.6% 6,553 73.2% 162,018 54.6% 2,354,100 60.7%
Commercial 226 8.2% 601 6.7% 76,429 25.8% 700,000 18.0%
Public Bldg. 3 0.1% 6 0.1% 478 0.2% 4,000 0.1%
Grand Total 2,758 100.0% 8,957 100.0% 296,489 100.0% $3,879,700 100.0%
1.In thousands of gallons.
Fiscal Requirements
Fiscal Requirements represent the budgeted financial obligations of the enterprise required to sustain
services of the Utility. These Fiscal Requirements are grouped pursuant to two primary categories of
Operating and CIP. The first category Operating requirements, are intended to be paid from revenues
derived primarily from charges for services through the approved scheduled of user rates, charges and
fees, including miscellaneous charges and certain interest income. The fiscal Operating requirements
include expenses, debt service and transfers associated with day to day needs to provide services
Mr.John DeLeo February 15, 2017
Revenue Sufficiency Analysis Page 4
summarized as: (i) Operating and Maintenance (O&M) Expenses; (ii) Debt Service; (iii) Debt Service
Coverage; and (iv) Other Non-Operating Expenses and Transfers,which can also include R&R and certain
ongoing minor capital items such as tools,equipment,etc. It should be noted that this sufficiency analysis
is suggesting that the R&R transfer be increased from the currently budgeted 5.0 percent of prior year's
Total Revenues in fiscal year 2016/17 to 7.5 percent of prior year's Total Revenues in fiscal year 2017/18
and 10.0 percent for fiscal years thereafter. Fiscal Requirements for major capital improvements and
replacement of vehicles are generally funded from: 1)debt proceeds;2)accumulated operating reserves,
3) contributions;4)assessments; 5)grants;or 6) a combination of these funding mechanisms.
Operating Requirements
The Operating requirements projected through fiscal year 2020/21 provided in Table 3 as summarized
from Schedule 2, include annual adjustments to address increases from labor merit and inflation. It
should be noted that these projections provided a limited amount of ongoing capital, as major
requirements for the Capital Improvement Program (CIP) are addressed separately.
Table 3. Projected Operating Requirements
2016/17 2017/18 2018/19 2019/20 2020/21
Personnel Services $1,162,100 $1,196,900 $1,232,800 $1,269,800 $1,307,800
Operating Expenses 960,000 972,700 985,600 1,002,300 1,023,100
Subtotal O&M Expenses $2,122,100 $2,169,600 $2,218,400 $2,272,100 $2,330,900
SRF Debt Service $16,700 $443,500 $549,200 $586,200 $603,200
Transfers and Contingency 969,400 1,085,700 1,181,800 1,182,500 1,182,800
Total Operating Requirements $3,108,200 $3,698,800 $3,949,400 $4,040,800 $4,116,900
CIP Requirements
The CIP is shown in Table 4 by fiscal year,as summarized from details provided by the City in Schedule 3.
Table 4 reflects that a large portion of the CIP is eligible to be funded through SRF loans and the remaining
portions of the CIP would be funded from Operating and R&R reserve funds. Only a few eligible projects
are anticipated to utilize SRF funding, while the CIP is primarily funded from Operating and R&R reserve
funds.
Table 4. Projected Capital Improvement Program Requirement
5-yr Total 2016/17 2017/18 2018/19 2019/20 2020/21
SRF Eligible Projects $6,605,100 $3,792,700 $1,197,200 $856,700 $684,500 $74,000
Non-SRF Projects 232,000 145,400 65,400 4,200 17,000 0
Total Uses $6,837,100 $3,938,100 $1,262,600 $860,900 $701,500 $74,000
Projected Revenue Sufficiency Assuming No Rate Adjustments
Revenue sources to support Utility operations are predominantly from service charges generated from
monthly user rates,charges and fees. To a lesser extent, revenues are also provided from miscellaneous
fees and charges for one-time connection activities, penalties, special requests and interest earnings on
unrestricted reserves, collectively Other Revenues. Revenues are first used to address the Operating
requirements of O&M Expenses,debt service and certain non-operating needs. Thereafter, Revenues are
directed at supporting the CIP and maintaining prudent levels in the Unrestricted Operating and R&R
Reserve Funds,which are central in maintaining and enhancing creditworthiness. It should be noted that
CIP requirements can be funded from various sources including but not limited to operating surplus,
reserves, proceeds from debt,grants and contributions.
Mr.John DeLeo February 15, 2017
Revenue Sufficiency Analysis Page 5
The initial task of this study is to determine the sufficiency of existing rates to satisfy the Operating
requirements, provide sufficient surpluses to support the CIP through Pay-As-You-Go, additional debt or
a combination of these funding sources and maintain prudent levels of reserves. Illustrated in Graph 2,
as derived from Table 5, are annual operating results based on the existing rate structure and rates
projected through fiscal year 2020/21. The results demonstrate that projected revenues from existing
rates are marginally adequate in the short term and will not be sufficiency to address the Operational and
CIP Requirements through fiscal year 2020/21 (the yellow line). It should be noted that: 1) the CIP has
been fully funded through reserve funds and SRF loans; and 2) debt service associated with both existing
and anticipated SRF loans' are included as Operational requirements in Graph 2.
GRAPH 2. REVENUE SUFFICIENCY
$4.5 -
54.0
$3.5
$3.0
$23
s
G
•c 52.0
•
51.5
$1.0 I .
50.5
$0.0
2016/17 2017/18 2018/19 2019/20 2020/21
-$0.5
Revenue rrOperational Requirements Difference
[end of graph 2]
Table 5. Operating Revenue Sufficiency Existing Rates (no rate adjustments)
2016/17 2017/18 2018/19 2019/20 2020/21
User Rates $3,900,300 $3,903,600 $3,907,000 $3,910,400 $3,913,800
Other Revenue 117,000 70,300 73,500 73,400 75,900
Total Revenue $4,017,300 $3,973,900 $3,980,500 $3,983,800 $3,989,700
O&M Expenses 2,122,100 2,169,600 2,218,400 2,272,100 2,330,900
Net Revenue $1,895,200 $1,804,300 $1,762,100 $1,711,700 $1,658,800
Debt Service 16,700 443,500 549,200 586,200 603,200
Non-Oper Exp 969,400 1,085,700 1,181,800 1,182,500 1,182,800
Surplus (Deficit) $909,100 $275,100 $31,100 -$57,000 -$127,200
SRF Loan Coverage
Required 1.15 1.15 1.15 1.15 1.15
Achieved 113.49 4,07 3.21 2.92 2.75
Projected SRF loan based on:a)20-year semiannual payment; b)2.0 percent interest rate;c)2.0 percent loan
cost;and d)capitalized interest for assumed 1-year construction periods.
Mr.John DeLeo February 15, 2017
Revenue Sufficiency Analysis Page 6
Capital Improvement Program Sources and Uses of Funds
The forecasted sources to fund the CIP, as previously discussed, consist of amounts from existing
Unrestricted Operating and R&R Reserve Funds along with proceeds from SRF loans. CIP funding,shown
in Table 6 and illustrated in total in Graph 3, is representative of a reasonable approach based on the
utility's funding capacity. However,to accomplish the CIP as shown,it is assumed that in the event funding
capacity is not available,the utility will either: 1)delay projects as necessary;or 2)structure the financing
such that the impact of new debt service coincides with the future funding capacity availability.
Table 6. COP Sources and Uses
5-yr Total 2016/17 2017/18 2018/19 2019/20 2020/21
Sources:
Beginning Balance $0 $0 $0 $0 $0
Reserve Fund Sources:
Unrestricted Operating 850,000 500,000 350,000 0 0 0
R&R 1,194,000 170,000 200,000 300,000 450,000 74,000
Existing SRF Loans 2,950,000 2,950,000 0 0 0 0
New SRF Loans 1,843,100 318,100 712,600 560,900 251,500 0
Total Sources $6,837,100 $3,938,100 $1,262,600 $860,900 $701,500 $74,000
Uses:
SRF Eligible Projects $6,605,100 $3,792,700 $1,197,200 $856,700 $684,500 $74,000
Non-SRF Projects 232,000 145,400 65,400 4,200 17,000 0
Total Uses $6,837,100 $3,938,100 $1,262,600 $860,900 $701,500 $74,000
Ending Balance $0 $0 $0 $0 $0 $0
GRAPH 3. CIP FUNDING SOURCES
OF $6.837 MILLION
Reserves,
$850,000,12%
Prior SRF Loans, R&R Funds,
52,950,000,43% r, 51,194,000, 18%
New SRF Loans,
\\4141 51,843,100,27°ru
[end of graph 3]
Mr.John DeLeo February 15, 2017
Revenue Sufficiency Analysis Page 7
Existing and Projected Reserve Funds
The Utility enterprise has several reserve funds; however, this study focuses on the ability of the
Unrestricted Operating and R&R Reserve Funds to support the CIP. The Unrestricted Operating Reserve
Fund provides for the accumulation and expenditure of earnings(Surpluses from Operations)of the utility
and is generally considered as the backbone funding source for capital improvements and financial
stability. Impact Fee funds can be utilized primarily for expansion related facilities;whereas,expenditures
from the R&R Reserve Fund are directed primarily at improvements associated with renewals and
replacement of system facilities.
A key financial measure of financial stability and creditworthiness of a wastewater utility is its ability to
maintain adequate levels of reserve funds. Due to the smaller size of the City's Utility enterprise and the
primary source of revenue being wastewater service charges, the City should consider increasing the
minimum balances to approximately $1.0 million in the Unrestricted Operating Reserve Fund and $0.5
million in the R&R Reserve Fund. These minimum amounts will,in addition to increasing creditworthiness
of the enterprise, provide cash resources to more effectively manage the CIP, respond to grants requiring
matching cash funds and address emergencies.
The projected activities of the Unrestricted Operating and R&R Reserve Funds as shown in Table 7 and
illustrated in Graph 4 demonstrate the inability of operating revenues, without rate adjustments, to
maintain the desired/suggested minimum balances in both the Unrestricted Operating Reserve Fund and
R&R Fund.
Table 7. Primary Fund Balances Available for CIP(no rate adjustments)
2016/17 2017/18 2018/19 2019/20 2020/21
Unrestricted.Operating Reserve Fund
Beginning Bal. $501,600 $910,700 $835,800 $866,900 $809,900
Annual Operating Surplus 909,100 275,100 31,100 -57,000 -127,200
Transfer to Project Fund -500,000 -350,000 0 0 0
Ending Balance $910,700 $835,800 $866,900 $809,900 $682,700
Minimum Balance $777,100 $924,700 $987,400 $1,010,200 $1,029,200
Impact Fee(Expansion) Fund
Beginning Balance $0 $12,100 $$,24,300 $36,500 $48,800
Impact Fees 12,100 12,100 12,100 12,100 12,100
Transfer to Project Fund 0 0 0 0 0
Ending Balance $12,100 $24,300 $36,500 $48,800 $61,200
R&R Fund
Beginning Bal. $170,600 $185,600 $286,900 $434,300 $382,400
Transfer In (From Operations) 185,000 301,300 397,400 398,100 398,400
Transfer to Project Fund -170,000 -200,000 -250,000 -450,000 -74,000
Ending Cash Balance $185,600 $286,900 $434,300 $382,400 5706,800
Minimum Target Balance $500,000 $500,000 8500,000 $500,000 $500,000
Mr.John DeLeo February 15,2017
Revenue Sufficiency Analysis Page 8
GRAPH 4. RESERVE FUND BALANCES
End of Fiscal Year
51.6+
$1.4
51.2
51.b --- 1 I
i=
° 50.s -
50.6 ,
SOA
50.2 .
50.0 lIII MN ir
2016/17 2017/18 2018/19 2019/20 2020/21
8101mpaci Fee(Expansion)Fund t< iUnrestrictcd Operating Reserve Fund
t. tR&R Fund Desired combined Minimum Balances
[end of graph 4]
Rate Adjustments for Revenue Sufficiency
The operating revenue sufficiency previously illustrated in Graphs 3 and 4, and presented in Tables 6 and
7 reflected results without any changes to rates. Although adequate to provide for O&M expenses, debt
service, coverage, R&R and Transfers in fiscal years 2016/17 through 2018/19, the forecasted revenues
from existing rates were not adequate to address: 1)operating cash requirement in fiscal years 2019/20
through 2020/21;and 2) building reserves for reasonable financial strength and creditworthiness. These
shortfalls can be addressed through a series of rate adjustments as shown in Table 8, which basically
medicate increases from inflation.
Table 8. Schedule of Multi-Year Rate Adjustments and User Rates
2016/17 2017/18 2018/19 2019/20 2020/21
Wastewater
Adjustment 1 0.00% 2.50% 2.50% 2.50% 2.50%
Customer Charge per Bill
All Classes $2.03 $2.09 $2.15 $2.21 $2.27
Readiness to Serve Charge per ERU
Single Family $17.33 $17.77 $18.22 $18.68 $19.15
Commercial $21.68 $22.23 $22.79 $23.36 $23.95
Public Buildings $17.33 $17.77 $18.22 $18.68 $19.15
Usage Rate per 1,000 gal.
Single Family $5.64 $5.79 $5.94 $6.09 $6.25
Commercial $7.04 $7.22 $7.41 $7.60 $7.79
Public Buildings $5.64 $5.79 $5.94 $6.09 $6.25
Sewer Flat Rate
Multi-Family $29.70 $30.45 $31.22 $32.01 $32.82
Reclaimed Water
Adjustment 0.00% 2.50% 2.50% 2.50% 2.50%
Flat Rate All Classes $7.34 $7.53 $7.72 $7.92 $8.12
1. Effective first full billing cycle on or after October 1,2017 and each October 1st thereafter through 2020.
Mr.John DeLeo February 15, 2017
Revenue Sufficiency Analysis Page 9
Results of the rate adjustments on monthly bills for different customer classes are illustrated on Graph 5.
Monthly bill amounts shown in Graph 5 do not include the Customer Charge per Bill as this is an equal
amount for all customers per bill and would distort the Multi-Family comparison. Amounts shown for
Single Family and Commercial are based on 5,000 gallons per month, whereas, the amount shown for
Multi-Family is a flat rate per dwelling unit originally designed on usage slightly above 2,000 gallons per
month per dwelling unit.
GRAPH 5. TYPICAL MONTHLY BILL
$70.00
563.00 14.1.51
1,x.4,.
SrA.ao
150.4,1
$53.40 15:.6
$30,00 .. >,.si
51.5.00 - •
5.14.00
535.40 that
0945
S30.00 129.7012
525.00
520.00 -
515.00
510.00
55.00
50.00
2016/17 2017/18 2015/19 2019/20 2020/21
r Single Family la 3K Gal .Muhl-Family r Cammerrial la 5 K Gal
[end of graph 5]
Financial results of the rate adjustments are presented in Table 9, as summarized from Schedule 4,
indicating positive but declining cash flows for the forecasted fiscal years. These declining cash flows
suggest that each year careful attention is given to the operating and capital budgets to ensure that the
Utility remains in a financial position to address ongoing and future operations.
Table 9. Operating Revenue Sufficiency Existing Rates
2016/17 2017/18 2018/19 2019/20 2020/21
User Rates $3,900,300 $4,003,200 $4,109,000 $4,216,900 $4,327,500
Other Revenue 117,000 71,900 77,800 81,300 88,900
Total Revenue $4,017,300 $4,075,100 $4,186,800 $4,298,200 $4,416,400
O&M Expenses 2,122,100 2,169,600 2,218,400 2,272,100 2,330,900
Net Revenue $1,895,200 $1,905,500 $1,968,400 $2,026,100 $2,085,500
Debt Service 16,700 443,500 549,200 586,200 603,200
Non-Oper Exp 969,400 1,085,700 1,191,900 1,203,100 1,214,200
Surplus (Deficit) $909,100 $376,300 $227,300 $236,800 $268,100
SRF Loan Coverage
Required 1.15 1.15 1.15 1.15 1.15
Achieved 113.49 4.30 3.58 3.46 3.46
Graph 6 illustrates the forecasted operating results based on the proposed future rate adjustments as
tabulated in Table 9. The declining balance between revenues and Operating Requirements is largely due
to the anticipated increases in SRF debt service associated with funding capital improvements
Mr.John DeLeo February 15, 2017
Revenue Sufficiency Analysis Page 10
GRAPH 6. REVENUE SUFFICIENCY
$4.5
$4.0
$3.5
$3.0
e $2.5
i $2.0
$1.5 ? -
51.0
$0.5
$0,0 _
11111111=11 _MIME
2016/17 2017/18 2018/19 2019/20 2020/21
-.Rcvenuc rrOperational.Requirements Difference
[end of graph 6]
Reserve Fund Balance Post CIP Funding
The result of rate adjustments on reserve funds as reflected in Table 10 and illustrated in Graph 7,shows
the strengthening of the forecasted Unrestricted Operating Reserve Fund balances above the suggested
minimums along with providing the previously proposed funding for the CIP.
Table 10. Primary Fund Balances Available for CIP
2016/17 2017/18 2018/19 2019/20 2020/21
Unrestricted Operating Reserve Fund
Beginning Bal. $501,600 $910,700 $937,000 $1,164,300 $1,401,1{)0
Annual Operating Surplus 909,100 376,30(1 227,300 236,800 268,100
Transfer to Project Fund -500,000 -350,000 0 0 0
Ending Balance $910,700 $937,000 $1,164,300 $1,401,100 $1,669,200
Minimum Balance $777,100 $924,700 $989,900 $1,015,400 $1,037,100
Impact Fee(Expansion) Fund
Beginning Balance $0 $12,100 $24,300 $36,500 $48,800
Impact Fees 12,100 12,100 12,100 12,100 12,100
Transfer to Project Fund 0 0 0 0 0
Ending Balance $12,100 $24,300 $36,500 $48,800 $61,200
R&R Fund
Beginning Bal. $170,600 $185,600 $286,900 $444,400 $413,100
Transfer In (From Operations) 185,000 301,300 407,500 418,700 429,800
Transfer to Project Fund -170,000 -200,000 -250,000 -450,000 -74,000
Ending Cash Balance $185,600 $286,900 S444,400 $413,100 $768,900
Minimum Target Balance $500,000 $500,000 $500,000 $500,000 $500,000
Mr.John DeLeo February 15, 2017
Revenue Sufficiency Analysis Page 11
GRAPH 7. RESERVE FUND BALANCES
End of Fiscal Year
$15
$2.0
$1.5
$LO
$0.5
$0.0 •
2016/17 2017/18 2018/19 2019/20 2020/21
Mlmpact Fee(Expansion)Fund L 'Unrestricted Operating Reserve Fund
!
JR&R Fund Desired Combined Minimum Balances
[end of graph 7]
Findings, Conclusions and Recommendations
During the process of this revenue sufficiency analysis, data was obtained from the City regarding
customers, operations, budgets and policies, which were relied upon as to accurately reflect financial
conditions of the Utility. Sufficient data was obtained to develop reasonable financial forecasts based on
goals of increasing revenue stability and fully funding the budgeted CIP.
This analysis has concluded that:
• Revenues from existing rates are not sufficient to fully address the budgeted CIP through fiscal
year 2020/21.
• The Utility has a customer classification that is not currently being utilized and forecasted not to
be necessary in the future.
• A significant number of the budgeted CIP projects are eligible for funding through SRF loans.
• Funding for CIP projects should be managed to take full advantage of the low interest SRF loans.
It is therefore recommended that the City:
1) Proceed to adopt the following multi-year wastewater user rate adjustments with an effective
date of the first full billing cycle on or after October 1,2017 and each October 1 through 2020.
Fiscal Year
2017/18 2018/19 2019/20 2020/21
Adjustment 1 2.50% 2.50% 2.50% 2.50%
1. For administrative purposes roundup rate to next whole cent.
2) Eliminate the customer classification of Rental Property.
3) Reevaluate the wastewater user rates periodically or whenever significant changes occur in the
cost, debt service or other principal activities.
Mr.John DeLeo February 15, 2017
Revenue Sufficiency Analysis Page 12
The expenses, costs, and criteria associated with ratemaking are representative of averages that are
developed primarily from historic data and/or projections based on opinions and assumptions. Significant
amounts of historical review and analysis, together with the development of assumptions based on
prudent engineering, financial, and ratemaking relationships were utilized in the development of the
forecasts provide herein. Some of the assumptions will inevitably change or not materialize, and
unanticipated events may occur which could significantly change the results presented herein.
Thanks and appreciation is extended to the City of Cape Canaveral for providing us this opportunity and
to the City's fine staff that provide data and assistance in the understanding and development of critical
data.
Very Truly Yours,
RAFTELIS FINANCIAL CONSULTANTS, INC.
Marco H. Rocca,CMC
Principal Consultant
Schedule 1
Wastewater and Reclaimed Water Customer Growth Projections
Reference
Factor 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21
Accounts
Single Family 1 1,767 1,769 1,771 1,773 1,775 1,777
Multi-Family 2 762 763 764 765 766 767
Commercial 3 226 227 227 227 227 227
Rental Property 4 0 0 0 0 0 0
Public Buildings 5 3 3 3 3 3 3
Total 2,758 2,762 2,765 2,768 2,771 2,774
ERUs
Single Family 1 1,797 1,799 1,801 1,803 1,805 1,807
Multi-Family 1 2 6,553 6,560 6,567 6,574 6,581 6,588
Commercial 3 601 616 616 616 616 616
Rental Property 2 4 0 0 0 0 0 0
Public Buildings 5 6 6 6 6 6 6
Total 8,957 8,981 8,990 8,999 9,008 9,017
Reclaimed Water ERICs
All Classifications 6 910 910 910 910 910 910
Billable Flow Avg Flow 3 In Thousands of Gallons Annually
Single Family 2.67 57,565 57,629 57,693 57,757 57,821 57,885
Multi-Family 2.06 162,018 162,191 162,364 162,537 162,710 162,883
Commercial 10.60 76,429 78,336 78,336 78,336 78,336 78,336
Rental Property 0.00 0 0 0 0 0 0
Public Buildings 6.64 478 478 478 478 478 478
Total 296,489 298,634 298,871 299,108 299,345 299,583
Growth Reference Factors
Single Family 1 1.0010 1.0010 1.0010 1.0010 1.0010
Multi-Family 2 1.0010 1.0010 1.0010 1.0010 1.0010
Commercial 3 1.0000 1.0000 1.0000 1.0000 1.0000
Rental Property 4 , 1.0000 1.0000 1.0000 1.0000 1.0000
Public Buildings 5 1.0000 1.0000 1.0000 1.0000 1.0000
ERICs 6 1.0000 1.0000 1.0000 1.0000 1.0000
1. Multi-Family ERUs represents the number of dwelling units.
2. Not currently being used.
3.Thousands of gallons per month.
Page 1 of 1
Schedule 2
Net Rate Fiscal Requirements
Escalation
Factor 2016/17 2017/18 2018/19 2019/20 2020/21
Personnel Services
Salaries and Wages 3 $586,300 $603,900 $622,000 $640,700 $659,900
Overtime 3 6,300 6,500 6,700 6,900 7,100
FICA Taxes 3 45,300 46,700 48,100 49,500 51,000
Retirement Contribution 3 31,600 32,500 33,500 34,500 35,500
Retirement Match 3 13,600 14,000 14,400 14,800 15,200
Life and Health Insurance 3 107,400 110,600 113,900 117,300 120,800
Worker's Compensation 3 11,200 11,500 11,800 12,200 12,600
Unemployment Compensation 3 9,000 9,300 9,600 9,900 10,200
Reimbursement of GF Payroll Exp. 3 351,400 361,900 372,800 384,000 395,500
Subtotal $1,162,100 $1,196,900 $1,232,800 $1,269,800 $1,307,800
Operating Expenses
Engineering Services 2 $15,000 $15,200 $15,400 $15,600 $15,900
Banking Fees 2 2,300 2,300 2,300 2,300 2,300
Audit Expense 2 22,500 22,700 22,900 23,200 23,700
Contract Services 5 48,900 49,400 49,900 50,700 51,800
Travel Per Diem 2 2,400 2,400 2,400 2,400 2,400
Communication Service 5 7,500 7,600 7,700 7,800 8,000
Postage 5 300 300 300 300 300
Utilities 5 178,700 180,700 182,700 185,600 189,500
Sludge Disposal Fees 5 117,000 118,300 119,600 121,500 124,100
General Insurance 2 82,500 83,300 84,100 85,400 87,100
Buildings&Grounds Maint. 2 12,900 13,000 13,100 13,300 13,600
Plant&Equip. Maintenance 6 97,400 100,300 103,300 106,400 109,600
Collection System Maint. 6 74,000 76,200 78,500 80,900 83,300
Printing 6 500 500 500 500 500
Miscellaneous 2 2,000 2,000 2,000 2,000 2,000
Operating Supplies 5 12,000 12,100 12,200 12,400 12,700
Safety Supplies 5 7,300 7,400 7,500 7,600 7,800
Chemicals 5 108,900 110,100 111,300 113,100 115,500
Uniforms 2 6,300 6,400 6,500 6,600 6,700
Motor Fuel&Lubricants 5 10,500 10,600 10,700 10,900 11,100
Small Tools 2 3,800 3,800 3,800 3,900 4,000
Lab Supplies 5 45,100 45,600 46,100 46,800 47,800
Reclaimed Water Supplies 5 5,300 5,400 5,500 5,600 5,700
Subscriptions&Training 2 5,100 5,200 5,300 5,400 5,500
Operating Fees&Licenses 2 6,900 7,000 7,100 7,200 7,300
Contingency 1 84,900 84,900 84,900 84,900 84,900
Subtotal $960,000 $972,700 $985,600 $1,002,300 $1,023,100
Total O&M $2,122,100 $2,169,600 $2,218,400 $2,272,100 $2,330,900
Debt Service
Existing SRF Loans Input $16,700 $422,500 $480,200 $480,200 $480,200
Anticipated SRF Loans Input 0 21,000 69,000 106,000 123,000
Subtotal $16,700 $443,500 $549,200 $586,200 $603,200
Page 1of 2
Escalation
Factor 2016/17 2017/18 2018/19 2019/20 2020/21
Transfers&Contingencies
Transfer to General Fund 1 $784,400 $784,400 $784,400 $784,400 $784,400
R&R 11 185,000 301,300 407,500 418,700 429,800
Subtotal $969,400 $1,085,700 $1,191,900 $1,203,100 $1,214,200
Total $3,108,200 $3,698,800 $3,959,500 $4,061,400 $4,148,300
Other Revenue
Utility Penalty Income 9 $61,800 $63,300 $64,900 $66,500 $68,200
Reuse Hook-Up Fees 9 2,900 3,000 3,100 3,200 3,300
Interest Earnings Input 0 5,600 9,800 11,600 17,400
Transfer from CC CRA Fund 0 52,300 0 0 0 0
Subtotal $117,000 $71,900 $77,800 $81,300 $88,900
Net Fiscal Requirement $2,991,200 $3,626,900 $3,881,700 $3,980,100 $4,059,400
Escalation
Factor 2016/17 2017/18 2018/19 2019/20 2020/21
Zero 0 0.000 0.000 0.000 0.000 0.000
Constant 1 0.000 1.000 1.000 1.000 1.000
Inflation 2 0.000 1.010 1.010 1.015 1.020
Personnel 3 0.000 1.030 1.030 1.030 1.030
Growth 4 0.000 1.001 1.001 1.001 1.001
Repairs&Maintenance 6 0.000 1.030 1.030 1.030 1.030
Interest Earnings 7 0.000 0.010 0.010 0.010 0.010
Utilities 8 0.000 1.011 1.011 1.016 1.021
Rate Adjustments 9 0.000 1.025 1.025 1.025 1.025
Growth * Rate Adjustments 10 0.000 1.026 1.026 1.026 1.026
Renewal and Replacement 11 0.000 7.5% 10.0% 10.0% 10.0%
Page 2 of 2
Schedule 3
Projected Detailed Capital Improvement Program
SRF
Eligible 5-Yr total 2016/17 2017/18 2018/19 2019/20 2020/21
Oxidation Ditch Reconfiguration Yes $2,200,000 $2,200,000 $0 $0 $0 $0
Holman Road Improvements-Ph.11&111 Yes 750,000 750,000 0 0 0 0
RAS Pump/Motor Replacement Yes 64,000 25,000 27,000 12,000 0 0
WAS Pump/Motor Replacement Yes 36,500 17,500 0 0 0 19,000
Internal Recycle Pump/Motor Replacement Yes 87,000 33,000 34,000 5,000 7,500 7,500
Reclaimed Water Pump Replacement Yes 87,000 21,000 22,000 22,000 22,000 0
Lift Station Pump Replacement Yes 131,000 50,000 26,500 27,000 27,500 0
Emergency Generators Yes 45,000 45,000 0 0 0 0
Transfer Basin Pump/Motor Replacement Yes 67,000 16,000 16,500 17,000 17,500 0
De-Grit System Yes 180,000 180,000 0 0 0 0
Variable Frequency Drive Installation Yes 15,300 7,600 0 7,700 0 0
Blower Pipe for Digester/2nd Anoxic Basin Yes 22,500 22,500 0 0 0 0
Sludge Holding Blowers Yes 25,000 25,000 0 0 0 0
Bleach System Upgrades Yes 30,500 2,500 11,000 12,000 2,500 2,500
Vehicle Replacement-WWTP No 154,000 98,000 56,000 0 0 0
Computer and Server Replacement No 53,000 42,400 4,400 4,200 2,000 0
WWTP Generator Replacement Yes 120,000 120,000 0 0 0 0
Instrumentation Upgrades Yes 47,000 20,000 12,000 5,000 5,000 5,000
WWTP SCADA System Yes 130,000 130,000 0 0 0 0
Mixer Replacement Yes 25,300 8,400 8,400 0 0 8,500
Shop Equipment-Heavy Duty Tools No 10,000 5,000 5,000 0 0 0
Piermount Mixer Rehab. Yes 99,000 75,000 24,000 0 0 0
A/C Replacement Yes 13,000 5,000 0 2,000 0 6,000
Specialty Lab Equipment Yes 15,700 15,700 0 0 0 0
RAS Pump control panel Yes 13,500 13,500 0 0 0 0
Valve Replacements Yes 50,000 10,000 10,000 10,000 10,000 10,000
Lift Station Rehab Yes 1,075,000 0 250,000 412,500 412,500 0
Intermediate Pump Station By-pass Yes 282,000 0 282,000 0 0 0
WAS Pump Control Panel Yes 12,500 0 12,500 0 0 0
Force Main Replacement Yes 570,000 0 330,000 240,000 0 0
Sand Filter Valve Replacement Yes 32,000 0 32,000 0 0 0
TSS Oven Replacement Yes 5,000 0 5,000 0 0 0
Distilled Water System Replacement Yes 16,800 0 16,800 0 0 0
Sand Filter Air Compressors Yes 25,500 0 25,500 0 0 0
Pump Enclosure Structures Yes 52,000 0 52,000 0 0 0
WWTP Facility Fence Replacement Yes 70,000 0 0 70,000 0 0
Refrigerator Replacement Yes 8,500 0 0 8,500 0 0
WWTP Lab Dishwasher Replacement Yes 6,000 0 0 6,000 0 0
WWTP Electrical/Lighting Rehab Yes 180,000 0 0 0 180,000 0
Office Equipment Upgrades No 15,000 0 0 0 15,000 0
Wastewater Sampler Replacement Yes 8,000 0 0 0 0 8,000
Asphalt Patching/Striping Yes 7,500 0 0 0 0 7,500
Total $6,837,100 $3,938,100 $1,262,600 $860,900 $701,500 $74,000
Page 1 of 1
Schedule 4
Proforma Operating Statement
2016/17 2017/18 2018/19 2019/20 2020/21
User Revenue
Single Family $742,200 $762,400 $783,000 $803,800 $825,400
Multi-family 2,356,600 2,418,800 2,482,600 2,548,200 2,615,500
Commercial 717,300 735,600 754,900 774,100 793,400
Public Buildings 4,000 4,200 4,200 4,300 4,500
Reclaimed Water 80,200 82,200 84,300 86,500 88,700
Total User Revenue $3,900,300 $4,003,200 $4,109,000 $4,216,900 $4,327,500
Other Revenues 117,000 71,900 77,800 81,300 88,900
Total Revenues $4,017,300 $4,075,100 $4,186,800 $4,298,200 $4,416,400
O&M Expenses 2,122,100 2,169,600 2,218,400 2,272,100 2,330,900
Net Revenues $1,895,200 $1,905,500 $1,968,400 $2,026,100 $2,085,500
Debt Service
Existing SRF Loans $16,700 $422,500 $480,200 $480,200 $480,200
Anticipated SRF Loans - 21,000 69,000 106,000 123,000
Total Debt Service $16,700 $443,500 $549,200 $586,200 $603,200
Balance After Debt Service $1,878,500 $1,462,000 $1,419,200 $1,439,900 $1,482,300
Non-Operating
Transfer to General Fund $784,400 $784,400 $784,400 $784,400 $784,400
R&R 185,000 301,300 407,500 418,700 429,800
Total Non-Operating $969,400 $1,085,700 $1,191,900 $1,203,100 $1,214,200
Net Surplus/(Deficit) $909,100 $376,300 $227,300 $236,800 $268,100
Page 1 of 1
Attachment 2
RESOLUTION NO.2017-08
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAPE
CANAVERAL,BREVARD COUNTY,FLORIDA; ESTABLISHING THE
CITY'S RECLAIMED WATER RATES IN ACCORDANCE WITH
ARTICLE IV OF CHAPTER 78 OF THE CITY CODE FOR CITY
FISCAL YEARS 2016/2017 THROUGH 2020/2021; PROVIDING FOR
THE REPEAL OF PRIOR INCONSISTENT RESOLUTIONS;
INCORPORATION INTO APPENDIX B, SCHEDULE OF FEES;
SEVERABILITY AND AN EFFECTIVE DATE.
WHEREAS, the City is granted 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, Article IV of Chapter 78 of the Cape Canaveral Code of Ordinances
establishes the City's reclaimed water utility; and
WHEREAS, section 180.13(2), Florida Statutes, provides that the City Council may
establish just and equitable rates or charges to be paid to the City for the use of utilities by each
person, firm or corporation whose premises are served thereby; and
WHEREAS, section 78-180 of the Code of Ordinances requires that rates for reclaimed
water services be established by resolution of the City Council; and
WHEREAS,Raftelis Financial Consultants, Inc. recently completed a Sewer System Rate
Study dated February 2017 ("the Study"),which includes findings, conclusions,recommendations
and supporting analysis related to reclaimed water rates; and
WHEREAS, after careful consideration and deliberation, and after considering the Study,
the City Council deems it is in the best interests of the public health, safety and welfare of its
citizens to establish and adopt the reclaimed water rates set forth herein, which rates are hereby
found to be just and equitable.
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 hereby deemed true and correct and are hereby
fully incorporated herein by this reference as a material part of this Resolution.
Section 2. Amendment to Appendix B, Schedule of Fees, Related to Reclaimed Water
Rates. The City Council of the City of Cape Canaveral hereby adopts the following amendments
to the Cape Canaveral Code of Ordinances, Appendix B, Schedule of Fees (underlined type
indicates additions to and strikethrough type indicates deletions from the existing text in Appendix
B):
APPENDIX B—SCHEDULE OF FEES
City of Cape Canaveral
Resolution No.2017-08
Page 1 of 3
CHAPTER 78. UTILITIES
***
Article IV. Reclaimed Water
***
(d) Reclaimed water rates shall be charged based on Equivalent Reclaimed Irrigation
Connections ("ERICS") established by the size of the customer's connection to the City's
reclaimed water system as follows:
1-inch diameter connection = 1 ERIC
2-inch diameter connection = 4 ERICS
4-inch diameter connection= 12 ERICS
Each customer class shall be charged the flat rate per ERIC identified below for reclaimed
water service. New rates shall take effect on October 1st of each year.
Reclaimed Water Flat Rate 2016/17 2017/18 2018/19 2019/20 2020/21
Per ERIC
All Customer $7.34 $7.53 $7.72 $7.92 $8.12
Classes'
1—Does not include wholesale,bulk,large user or other customer under separate contract or agreement with
the City.
Section 3. Incorporation into Appendix B, Schedule of Fees. The fee schedule set forth in
this Resolution shall be incorporated into Appendix B, Schedule of Fees, to the Cape Canaveral
Code of Ordinances and any section, paragraph number, letter or heading in Appendix B 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 Resolution and the City Code, may be freely made.
City of Cape Canaveral
Resolution No.2017-08
Page 2 of 3
Section 4. Repeal of Prior Inconsistent Resolutions. All prior inconsistent resolutions
adopted by the City Council, or prior resolutions in conflict herewith, are hereby repealed to the
extent of the conflict.
Section 5. Severability. If any section, subsection, sentence, clause, phrase, word or portion
of this Resolution is for any reason held invalid or unconstitutional by any court of competent
jurisdiction, 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 6. Effective Date. This Resolution shall become effective immediately upon adoption
by the City Council of the City of Cape Canaveral, Florida. However, the rates established under
this Resolution for City fiscal year 2016/2017,which are the same rates as the previous City fiscal
year, shall be deemed effective retroactively from October 1, 2016.
ADOPTED at a Regular Meeting of the City Council of the City of Cape Canaveral,
Florida, assembled this 18th day of July, 2017.
Bob Hoog, Mayor
ATTEST: Name FOR AGAINST
Mike Brown
Mia Goforth, CMC, Bob 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
Resolution No.2017-08
Page 3 of 3
Attachment 3
RESOLUTION NO.2017-09
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAPE
CANAVERAL, BREVARD COUNTY, FLORIDA; REVISING THE
CITY'S SANITARY SEWER SERVICE FEE SCHEDULE IN
ACCORDANCE WITH ARTICLE III OF CHAPTER 78 OF THE CITY
CODE FOR CITY FISCAL YEARS 2016/2017 THROUGH 2020/2021;
REPEALING THE RENTAL PROPERTY RATE CATEGORY AND
PROVIDING FOR RATIFICATION OF SEWER RATES FOR SEWER
CUSTOMERS AFFECTED BY SAID REPEAL; PROVIDING FOR THE
REPEAL OF PRIOR INCONSISTENT RESOLUTIONS,
INCORPORATION INTO APPENDIX B, SCHEDULE OF FEES,
SEVERABILITY AND AN EFFECTIVE DATE.
WHEREAS, the City is granted 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, Article II of Chapter 78 of the Cape Canaveral Code of Ordinances
establishes the City's sanitary sewer system; and
WHEREAS, Article III of Chapter 78 establishes the service rates, deposits and billing
procedures for the City's sanitary sewer customers; and
WHEREAS, section 180.13(2), Florida Statutes, provides that the City Council may
establish just and equitable rates or charges to be paid to the City for the use of utilities by each
person, firm or corporation whose premises are served thereby; and
WHEREAS, section 78-152 of the Code of Ordinances requires that all revisions to
sanitary sewer rates be approved by resolution of the City Council; and
WHEREAS,Raftelis Financial Consultants, Inc. recently completed a Sewer System Rate
Study dated February 2017 ("the Study"),which includes findings, conclusions,recommendations
and supporting analysis related to the City's sanitary sewer rates; and
WHEREAS, based on the recommendations of the Study, the City Council desires to
revise the fees and charges related to its sanitary sewer system and to eliminate a classification for
rental property; and
WHEREAS, after careful consideration and deliberation, and after considering the Study,
the City Council deems it is in the best interests of the public health, safety and welfare of its
citizens to establish to update and revise the City's sanitary sewer system rates and charges as set
forth herein, which rates are hereby found to be just and equitable.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CITY COUNCIL OF
THE CITY OF CAPE CANAVERAL,BREVARD COUNTY,FLORIDA,AS FOLLOWS:
City of Cape Canaveral
Resolution No.2017-09
Page 1 of 5
Section 1. Recitals. The foregoing recitals are hereby deemed true and correct and are hereby
fully incorporated herein by this reference as a material part of this Resolution.
Section 2. Amendment to Appendix B, Schedule of Fees, Related to Sanitary Sewer
Service Rates. The City Council of the City of Cape Canaveral hereby adopts the following
amendments to the Cape Canaveral Code of Ordinances, Appendix B, Schedule of Fees
(underlined type indicates additions to and strikethrough type indicates deletions from the existing
text in Appendix B):
APPENDIX B—SCHEDULE OF FEES
CHAPTER 78. UTILITIES
Y'.**
Article III. Service Rates, Deposits and Billing Procedures
(b)Schedule of fees.
***
(4) Equivalent residential unit (ERU): One ERU shall be equal to one detached
residential dwelling unit with an individual water meter of 0.75 inches or less. ERUs for all
connections other than: (i)residential dwelling units with an individual water meter of 0.75 inches
or less; and(ii)multi-family; shall be pursuant to the following basis:
ERU Basis
(A) For Single-Family,Multi-Family,Commercial and Public Buildings
Meter Size ERU
0.75" 1.00
1.0" 2.50
1.5" 5.00
2.0" 8.00
City of Cape Canaveral
Resolution No.2017-09
Page 2 of 5
3.0" 15.00
4.0" 25.00
6.0" 60.00
8.0" 80.00
(B) SCHEDULE OF RATES.
2016/17 2017/18 2018/19 2019/20 2020/2021
Customer Charge per Bill
All Classes $2.03 $2.09 $2.15 $2.21 $2.27
Readiness to Serve Charge
per ERU
City of Cape Canaveral
Resolution No.2017-09
Page 3 of 5
Single Family $17.33 $17.77 $18.22 $18.68 $19.15
Commercial $21.68 $22.23 $22.79 $23.36 $23.95
Public Buildings $17.33 $17.77 $18.22 $18.68 $19.15
Usage Rate per 1,000 gal.
Single Family $5.64 $5.79 $5.94 $6.09 $6.25
Commercial $7.04 $7.22 $7.41 $7.60 $7.79
Public Buildings $5.64 $5.79 $5.94 $6.09 $6.25
Sewer Flat Rate
Multi-Family $29.70 $30.45 $31.22 $32.01 $32.82
***
Section 3. Incorporation into Appendix B, Schedule of Fees. The fee schedule set forth in
this Resolution shall be incorporated into Appendix B, Schedule of Fees, to the Cape Canaveral
Code of Ordinances and any section, paragraph number, letter or heading in Appendix B 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 Resolution and the City Code, may be freely made.
Section 4. Repeal of Prior Inconsistent Resolutions. All prior inconsistent resolutions
adopted by the City Council, or prior resolutions in conflict herewith, are hereby repealed to the
extent of the conflict.
Section 5. Severability. If any section, subsection, sentence, clause, phrase, word or portion
of this Resolution is for any reason held invalid or unconstitutional by any court of competent
jurisdiction, 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 6. Repeal of Rental Property Rate; Ratification of Rate. The sewer rate for
Rental Property established by Resolution No.2012-06 was never implemented by the City. Sewer
customers that would have fallen within this rate category continue to be charged under the
commercial rate category. Because the commercial rate resulted in a lower sewer rate being paid
by the affected sewer customers, the City Council hereby ratifies all previous sewer charges
imposed by the City on the affected Rental Property customers from the effective date of
Resolution No. 2012-06 and no refund is owed to said customers.Furthermore,the Rental Property
rate category, as stated above,is hereby expressly repealed and retroactively deemed null and void
from the date that Resolution No. 2012-06 became effective, and sewer customers that would have
fallen under the Rental Property category shall continue to be charged under the commercial rate
category.
Section 7. Effective Date. This Resolution shall become effective immediately upon adoption
by the City Council of the City of Cape Canaveral, Florida. However, the rates established under
this Resolution for City fiscal year 2016/2017,which are the same rates as the previous City fiscal
year, shall be deemed effective retroactively from October 1, 2016.
City of Cape Canaveral
Resolution No.2017-09
Page 4 of 5
ADOPTED at a Regular Meeting of the City Council of the City of Cape Canaveral,
Florida, assembled this 18th day of July, 2017.
Bob Hoog,Mayor
ATTEST: Name FOR AGAINST
Mike Brown
Mia Goforth, CMC, Bob 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
Resolution No.2017-09
Page 5 of 5
4-11
City of Cape Canaveral
ftigiiik„ City Council Agenda Form
City Council Meeting Date: 7/18/2017
Item No. 5a
Subject: Ordinance No. 07-2017;adopted in furtherance of the requirement set forth in Section
2.12(5), Cape Canaveral Charter; authorizing the issuance of not exceeding$6,200,000 Capital
Improvement Revenue Note, Series 2017, of the City to finance the cost of a Multigenerational
Center, Cultural Arts Preservation Enrichment (CAPE) Center and related Capital
Improvements; providing for the Series 2017 Note to be secured by the City's Public Service
Tax, Half-Cent Sales Tax, Guaranteed Entitlement, Communication Services Tax and certain
Franchise Fees; authorizing the City's Financing Team to proceed to develop necessary
documents;providing for the repeal of prior inconsistent ordinances and resolutions or parts of
prior inconsistent ordinances and resolutions in conflict herewith; severability and an effective
date, second reading.
Department: Administrative Services
Summary: The Ordinance authorizes the Finance Team, under the direction of the City
Manager, to approve and take such action, and execute such documents on behalf of the City,
deemed reasonably necessary to effectuate the loan closing authorized by this Ordinance. In
addition, to the extent required by the lending institution and deemed advisable by the Finance
Team,the Mayor is hereby authorized to execute loan documents on behalf of the City.
At its June 20, 2017 Meeting, City Council approved Ordinance No. 07-2017 at first reading
and to proceed forward with Hancock Bank's Council-supported, 10-year loan with an interest
rate of 2.05%. As of July 5, 2017, the Bloomberg Finance Report shows the current interest
rate on a 10-year loan is 2.35%.
The Finance Team and the selected lender have prepared loan documents in anticipation of the
final award by City Council on July 18th, second reading. The closing has been tentatively set
for July 20, 2017.
This Capital Improvement Revenue Note, Series 2017 will be fully supported by pledged
revenues from the Public Service Tax, Half-Cent Sales Tax, Guaranteed Entitlement,
Communication Services Tax and certain Franchise Fees. These pledged revenues provide
coverage of 2.48x based on a projected maximum annual debt service of $689,203. No Ad
Valorem taxes will be pledged to support this Capital Improvement Revenue Note, Series 2017.
The Notice of Public Hearing was advertised in Florida Today on July 6, 2017 and allows
Council to act on this Ordinance.
Submitting Department Director: John DeLeo Date: 7/11/17
Attachment: Ordinance No. 07-2017.
Financial Impact: Reference Financial Impact above.
Reviewed by Administrative/Financial
Services Director: John DeLeo Date: 7/11/17
City Council Meeting
Date: 7/18/2017
Item No. 5a
Page 2 of 2
The City Manager recommends that City Council take the following action:
Adopt Ordinance No. 07-2017, second reading, which includes authorization to approve
Whitney Bank(d/b/a Hancock Bank) as the lender and preparation of loan documents.
Approved by City Manager: David L. Greene Date: 7/11/17
ORDINANCE NO. 07-2017
AN ORDINANCE OF THE CITY OF CAPE CANAVERAL, BREVARD
COUNTY, FLORIDA, ADOPTED IN FURTHERANCE OF THE
REQUIREMENT SET FORTH IN SECTION 2.12(5), CAPE CANAVERAL
CHARTER; AUTHORIZING THE ISSUANCE OF NOT EXCEEDING
$6,200,000 CAPITAL IMPROVEMENT REVENUE NOTE, SERIES 2017,
OF THE CITY TO FINANCE THE COST OF A MULTIGENERATIONAL
CENTER, CULTURAL ARTS PRESERVATION ENRICHMENT (CAPE)
CENTER AND RELATED CAPITAL IMPROVEMENTS; PROVIDING
FOR THE SERIES 2017 NOTE TO BE SECURED BY THE CITY'S PUBLIC
SERVICE TAX, HALF-CENT SALES TAX, GUARANTEED
ENTITLEMENT, COMMUNICATIONS SERVICES TAX AND CERTAIN
FRANCHISE FEES; AUTHORIZING THE CITY'S FINANCING TEAM
TO PROCEED TO DEVELOP NECESSARY DOCUMENTS; PROVIDING
FOR THE REPEAL OF PRIOR INCONSISTENT ORDINANCES AND
RESOLUTIONS OR PARTS OF PRIOR INCONSISTENT ORDINANCES
AND RESOLUTIONS IN CONFLICT HEREWITH; SEVERABILITY AND
AN EFFECTIVE DATE.
BE IT ENACTED BY THE CITY COUNCIL OF THE CITY OF CAPE CANAVERAL,
BREVARD COUNTY, FLORIDA, as follows:
SECTION 1. Authority for this Ordinance. This Ordinance is enacted pursuant to the
provisions of Chapter 166, Part II, Florida Statutes, Section 2.12(5) of the City Charter, City of
Cape Canaveral, Florida (the "City") and other applicable provisions of law(the "Act").
SECTION 2. Findings. It is hereby ascertained, determined and declared that:
(A) The City (i) pursuant to Section 166.231, Florida Statutes and certain ordinances,
levies a tax on the purchase of certain utility services provided within the jurisdictional limits of
the City (the "Public Service Tax"); (ii)pursuant to the provisions of Chapter 218,Part VI,Florida
Statutes, receives a distribution from the Local Government Half-Cent Sales Tax Clearing Trust
Fund (the "Half-Cent Sales Tax"); (iii) in accordance with the provisions of Chapter 218, Part II,
Florida Statutes,receives funds from the Revenue Sharing Trust Fund for Municipalities, a portion
of which distribution is the "guaranteed entitlement" as defined in Section 218.21, Florida Statutes
(the "Guaranteed Entitlement"); (iv)pursuant to the authorization set forth in Chapter 202,Florida
Statues,the City receives the Communications Services Tax(the"Communications Services Tax")
and (v) receives fees as a result of granting various entities permission to provide within the City
electric and directly electric-related services and a natural gas distribution system(collectively,the
"Franchise Fees"). Such Public Service Tax, Half-Cent Sales Tax, Guaranteed Entitlement,
Communications Services Tax and Franchise Fees are not now pledged in any manner other than
to the City's Capital Improvement Revenue Note, Series 2014.
(B) The City is without currently available funds to pay for all of the costs of acquiring
and constructing a Multigenerational Center, a Cultural Arts Preservation Enrichment (CAPE)
City of Cape Canaveral
Ordinance No.07-2017
Page 1 of 3
Center and related capital improvements (the "Project"), and therefore proposes to pay a portion
of such costs thereof from the proceeds of its not exceeding $6,200,000 Capital Improvement
Revenue Note, Series 2017 (the "Series 2017 Note") to be issued by the City.
(C) The principal of, premium, if any, and interest on the Series 2017 Note and all
required sinking fund, reserves and other payments will be payable solely from (i) the Public
Service Tax, the Half-Cent Sales Tax, the Guaranteed Entitlement, the Communications Services
Tax and the Franchise Fees and (ii) until applied in accordance with the provisions of a
supplemental resolution (the "Resolution") of the City adopted prior to the delivery of the Series
2017 Note, all moneys, including investments thereof, on deposit in or credited to certain funds
and accounts established under the Resolution (collectively with (i) above, the "Pledged
Revenues") and the City will never be required to levy ad valorem taxes on any property therein
to pay the principal of and interest on the Series 2017 Note or to make any other payments provided
for herein or in the Resolution, and the Series 2017 Note will not constitute a lien upon any
properties owned by the City or located within the boundaries of the City, but will be payable
solely from the Pledged Revenues in the manner provided in this Ordinance and in the Resolution
supplemental hereto.
(D) It is necessary and desirable to confirm the professionals who will continue to assist
the City in the proceedings necessary for the authorization, sale and issuance of the Series 2017
Note and investment of proceeds of the Series 2017 Note.
SECTION 3. Authorization of Series 2017 Note and Acquisition and Construction of
Project. The issuance by the City of its not exceeding $6,200,000 Capital Improvement Revenue
Note, Series 2017 for the purpose of paying costs of acquiring and constructing the Project and the
cost of issuance for the Series 2017 Note is hereby authorized.The Series 2017 Note shall be dated,
shall bear interest at a rate or rates not exceeding the maximum legal rate per annum, shall mature,
shall be subject to redemption, shall be secured solely by a lien upon and pledge of the Pledged
Revenues and shall have such other characteristics as shall be provided by the Resolution. Any
Note(s)required by the lender shall be in form approved by the City Manager in consultation with
the Finance Team, as hereinafter defined, consistent with the terms and conditions of this
Ordinance and the Resolution.
SECTION 4. Designation of Finance Team and Approval of Terms of Engagement.
The Finance Team with respect to the Series 2017 Note shall consist of: Larson Consulting
Services, LLC, as Financial Advisor to the City, Akerman LLP as Bond Counsel, Garganese,
Weiss & D'Agresta, PA as City Attorney, the City Manager, the Finance Director and the City
Clerk(the "Finance Team"). Under the direction of the City Manager,the Finance Team is hereby
approved and shall take such action and execute such documents on behalf of the City, deemed
reasonably necessary to effectuate the loan closing authorized by this Ordinance. In addition, to
the extent required by the lending institution and deemed advisable by the Finance Team, the
Mayor or Mayor Pro Tem is hereby authorized to execute loan documents on behalf of the City.
SECTION 5. Conflicting Prior Inconsistent Ordinances and Resolutions. All prior
inconsistent ordinances and resolutions or parts of prior inconsistent ordinances and resolutions in
City of Cape Canaveral
Ordinance No.07-2017
Page 2 of 3
conflict herewith are hereby repealed and all prior inconsistent ordinances and resolutions or parts
of prior inconsistent ordinances and resolutions not in conflict herewith are hereby continued in
full force and effect.
SECTION 6. Severability. If any portion, clause, phrase, sentence or classification of
this Ordinance is held or declared to be either unconstitutional, invalid, inapplicable, inoperative
or void, then such declaration shall not be construed to affect other portions of this Ordinance; it
is hereby declared to be the express opinion of the City Council of the City of Cape Canaveral that
any such unconstitutional, invalid, inapplicable, inoperative or void portion or portions of this
Ordinance did not induce its passage, and that without the inclusion of any such portion or portions
of this Ordinance, the City Council would have enacted the valid constitutional portions thereof
SECTION 7. Effective Date. The provisions within this Ordinance shall take effect
immediately upon the adoption date.
ADOPTED by the City Council of the City of Cape Canaveral, FL this 18th day of July,
2017.
Bob Hoog,Mayor
ATTEST:
Name FOR AGAINST
Mike Brown
Mia Goforth, CMC,
City Clerk Bob Hoog
First Reading: June 20, 2017 Brendan McMillin
Legal Ad Published: July 6, 2017
Second Reading: July 18, 2017 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.07-2017
Page 3 of 3
,ti ¢A` 14,4 1iCity of Cape Canaveral
-4 ii. . x City Council Agenda Form
sx
City Council Meeting Date: 7/18/2017
Item No. 5b
Subject: Resolution No. 2017-10; supplementing City Ordinance No. 07-2017 enacted on July
18,2017 by accepting the proposal of Whitney Bank d/b/a Hancock Bank to purchase the City's
not to exceed $6,200,000 Capital Improvement Revenue Note, Series 2017; authorizing the
issuance of the 2017 Note and execution and delivery of a Loan Agreement with said Bank to
secure the repayment of the 2017 Note; authorizing the proper officials of the City to take any
other action deemed necessary or advisable in connection with the finalization and execution of
the Loan Agreement, the 2017 Note and the Security therefor; authorizing the execution and
delivery of other documents in connection with said Loan; designating the 2017 Note as "Bank
Qualified";providing for repeal or supersession of prior inconsistent City resolutions or actions;
providing for severability and other matters in regard thereto and providing an effective date.
Department: Administrative Services
Summary: Pursuant to City Council action/direction on June 20, 2017, the Financing Team,
under leadership of the City Manager, selected Whitney Bank (d/b/a Hancock Bank) as its
lender. The Financing Team and Whitney Bank (d/b/a Hancock Bank) have prepared loan
documents (Exhibit A to Attachment). The loan of $6,200,000 represents a Project Fund of
$6,140,000 and Cost of Issuance of$60,000. The final terms served the City's best interest and
are:
Loan: $6,200,000
Term: 10 years
Rate: 2.05%
Total Debt Service: $6,860,663
Principal & Interest Payment: $689,203
Staff recommends City Council approve Resolution No. 2017-10. Resolution No. 2017-10
supplements Ordinance No. 07-2017 by further outlining the Loan Agreement, terms and
conditions.
Key Terms of the Loan Agreement are:
The City shall not issue any debt payable from any of the Pledged Revenues while the 2017
Note is outstanding. Pledged Revenues for the preceding Fiscal Year must be equal to at least
1.50 times the maximum debt service for all outstanding debt secured and payable from a first
lien on Pledged Revenues and any additional proposed debt. For calculation purposes if the
interest rate on the proposed additional debt will be a variable interest rate, the rate shall be
calculated at the initial rate.
The Debt Service Fund will be held by Whitney Bank (d/b/a Hancock Bank). Commencing
February 1,2018 and no later than the 1st day of each month,the City shall deposit to the Debt
Service Fund an amount equal to at least one-sixth(1/6)of the interest due on the 2017 Note on
the next Payment Date and an amount equal to at least one-twelfth(1/12)of the principal amount
due on the 2017 Note on the next February 1. Deposit amounts in the Debt Service Fund will be
used solely for making payments on the 2017 Note. The closing has been tentatively set for July
20,2017.
City Council Meeting
Date: 7/18/2017
Item No. 5b
Page 2 of 2
Submitting Department Director: John DeLeo Date: 7/11/17
Attachment: Resolution No. 2017-10 with Exhibit A - Loan Agreement.
Financial Impact: The P&I is $689,203. The net annual cost of the loan to the General
Government is $689,203.
Reviewed by Administrative/Financial
Services Director: John DeLeo Date: 7/11/17
City Manager recommends that City Council to take the following action:
Adopt Resolution No. 2017-10, which includes authorizing the execution and delivery of the
Loan Agreement with Hancock Bank to secure the repayment of said Note.
Approved by City Manager: David L. Greene Date: 7/11/17
RESOLUTION NO. 2017-10
A RESOLUTION OF THE CITY OF CAPE CANAVERAL, BREVARD
COUNTY, FLORIDA; SUPPLEMENTING CITY ORDINANCE NO.
07-2017 ENACTED ON JULY 18, 2017 BY ACCEPTING THE PROPOSAL
OF WHITNEY BANK D/B/A HANCOCK BANK TO PURCHASE THE
CITY'S NOT TO EXCEED $6,200,000 CAPITAL IMPROVEMENT
REVENUE NOTE, SERIES 2017; AUTHORIZING THE ISSUANCE OF
THE 2017 NOTE AND EXECUTION AND DELIVERY OF A LOAN
AGREEMENT WITH SAID BANK TO SECURE THE REPAYMENT OF
THE 2017 NOTE; AUTHORIZING THE PROPER OFFICIALS OF THE
CITY TO TAKE ANY OTHER ACTION DEEMED NECESSARY OR
ADVISABLE IN CONNECTION WITH THE FINALIZATION AND
EXECUTION OF THE LOAN AGREEMENT, THE 2017 NOTE AND THE
SECURITY THEREFOR; AUTHORIZING THE EXECUTION AND
DELIVERY OF OTHER DOCUMENTS IN CONNECTION WITH SAID
LOAN; DESIGNATING THE 2017 NOTE AS "BANK QUALIFIED";
PROVIDING FOR REPEAL OR SUPERSESSION OF PRIOR
INCONSISTENT CITY RESOLUTIONS OR ACTIONS; PROVIDING FOR
SEVERABILITY AND OTHER MATTERS IN REGARD THERETO AND
PROVIDING AN EFFECTIVE DATE.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CAPE CANAVERAL,
BREVARD COUNTY, FLORIDA,AS FOLLOWS:
SECTION 1. Authority for this Resolution. This Resolution is adopted pursuant to the
provisions of Chapter 166, Part II, Florida Statutes, the Florida Constitution and other applicable
provisions of law and City Ordinance No. 07-2017 enacted on July 18, 2017 (the "Ordinance").
SECTION 2. Findings. It is hereby ascertained, determined and declared:
(A) The City of Cape Canaveral, Florida(the "City") deems it necessary, desirable and
in the best interests of the City and its residents and it serves a paramount public purpose that the
City issue its Capital Improvement Revenue Note, Series 2017 (the "2017 Note") to acquire and
construct the Project as defined in the Ordinance, all as more particularly described in the
Ordinance and the Loan Agreement (as defined herein).
(B) Pursuant to Section 2(b),Article VIII of the State Constitution, and Section 166.021,
Florida Statutes,municipalities have the governmental, corporate and proprietary powers to enable
them to conduct municipal government,perform municipal functions and render municipal services,
and may exercise any power for municipal purposes, except when expressly prohibited by law. The
issuance by the City of the 2017 Note to acquire and construct the Project and the execution and
delivery of the Loan Agreement to secure the 2017 Note is not prohibited by law.
(C) Based on the present volatility of the market for municipal debt in consultation with
the City's financial advisor, Larson Consulting Services, LLC, it has been determined it is in the
City of Cape Canaveral
Resolution No.2017-10
Page 1 of 4
best interest of the City to issue the 2017 Note pursuant to the Ordinance, this Resolution and the
Loan Agreement by negotiated sale, allowing the City to issue the 2017 Note at the most
advantageous time, allowing the City to obtain the best interest rate and other terms for the 2017
Note, and accordingly, the City Council of the City hereby finds and determines that it is in the
best financial interest of the City that a negotiated sale of the 2017 Note to Whitney Bank d/b/a
Hancock Bank(the"Bank")on the terms attached hereto and in the Loan Agreement be authorized.
SECTION 3. Authorization of Issuance of 2017 Note. The City hereby authorizes
issuance of the 2017 Note to acquire and construct the Project and to pay costs of issuing the 2017
Note as more particularly described in the Loan Agreement.
SECTION 4. Approval of Form of and Authorization of Loan Agreement and 2017
Note and Execution Loan Agreement and 2017 Note. The repayment of the loan as evidenced
by the 2017 Note shall be pursuant to the terms and provisions of the Ordinance, this Resolution,
the Loan Agreement and the 2017 Note. The City hereby approves the Loan Agreement by and
between the City and the Bank in substantially the form attached hereto as EXHIBIT "A" (the
"Loan Agreement") and the 2017 Note in substantially the form attached to the Loan Agreement
and authorizes the Mayor or the Mayor Pro Tern of the City (collectively, the "Mayor") and the
City Clerk or any deputy or assistant City Clerk of the City (collectively, the "City Clerk") to
execute and deliver on behalf of the City the Loan Agreement and the 2017 Note each with such
changes, insertions and additions as they may approve, their execution thereof being conclusive
evidence of such approval.
SECTION 5. Payment of Debt Service on 2017 Note. Pursuant to the Ordinance and
the Loan Agreement, the 2017 Note will be secured by the Pledged Revenues (as defined in the
Ordinance and the Loan Agreement) on a parity with the City's outstanding Capital Improvement
Revenue Note, Series 2014.
SECTION 6. Authorization of Other Document to Effect Transaction. To the extent
that other documents including but not limited to notices, certificates, opinions or other items are
needed to effect any of the transactions referenced in this Resolution, the Ordinance, the Loan
Agreement, the 2017 Note, and the security therefor,the Mayor,the City Clerk, the City Manager,
the Administrative Services Director, the Finance Director, the City Attorney, Financial Advisor
and Bond Counsel are hereby authorized to execute and deliver such documents, certificates,
opinions or other items and to take such other actions as are necessary for the full, punctual and
complete performance of the covenants, agreements, provisions and other terms as are contained
herein and in the documents included herein by reference.
SECTION 7. Paying Agent and Registrar. The City hereby accepts the duties to serve
as registrar and paying agent for the 2017 Note.
SECTION 8. Limited Obligation. The obligation of the City to repay amounts under the
Loan Agreement and the 2017 Note are limited and special obligations, payable solely from the
sources and in the manner set forth in the Ordinance and the Loan Agreement and shall not be
deemed a pledge of the faith and credit or taxing power of the City.
City of Cape Canaveral
Resolution No.2017-10
Page 2 of 4
SECTION 9. Designation of 2017 Note as Bank Qualified. The City hereby designates
the 2017 Note as a "qualified tax-exempt obligation" within the meaning of Section 265(b)(3) of
the Internal Revenue Code of 1986, as amended (the "Code"). The City does not reasonably
anticipate that the City, any subordinate entities of the City, and issuers of debt that issue "on
behalf of the City,will during the calendar year 2017 issue more than$10,000,000 of"tax-exempt"
obligations, exclusive of those obligations described in Section 265(b)(3)(C)(ii) of the Code.
SECTION 10. Repeal of Prior Inconsistent Resolutions and Actions. All prior
resolutions or actions of the City in conflict herewith are hereby superseded and repealed to the
extent of such conflict.
SECTION 11. Effect of Partial Invalidity. If any one or more provisions of this
Resolution, the Loan Agreement, or the 2017 Note shall for any reason be held to be illegal or
invalid, such illegality or invalidity shall not affect any other provision of this Resolution,the 2017
Note or the Loan Agreement but this Resolution, the Loan Agreement and the 2017 Note shall be
construed and enforced as if such illegal or invalid provision had not been contained therein. The
2017 Note shall be issued and Loan Agreement shall be executed and this Resolution is adopted
with the intent that the laws of the State of Florida shall govern their construction.
SECTION 12. Effective Date. This Resolution shall take effect immediately upon the
adoption date.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of
the City of Cape Canaveral, Florida, assembled this 18th day of July, 2017.
Bob Hoog,Mayor
ATTEST:
Name FOR AGAINST
Mike Brown
Mia Goforth, CMC,
City Clerk Bob Hoog
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
Resolution No.2017-10
Page 3 of 4
EXHIBIT "A"
LOAN AGREEMENT
City of Cape Canaveral
Resolution No.2017-10
Page 4 of 4
LOAN AGREEMENT
Dated July 20,2017
By and Between
CITY OF CAPE CANAVERAL, FLORIDA
and
WHITNEY BANK D/B/A HANCOCK BANK
42113950;3
TABLE OF CONTENTS
(The Table of Contents for this Loan Agreement is for convenience of reference only and
is not intended to define, limit or describe the scope or intent of any provisions of this Loan
Agreement.)
Page
ARTICLE I DEFINITION OF TERMS 1
Section 1.01. Definitions 1
Section 1.02. Interpretation 4
Section 1.03. Titles and Headings 4
ARTICLE II REPRESENTATIONS AND WARRANTIES OF THE PARTIES 4
Section 2.01. Representations and Warranties of City 4
Section 2,02, Covenants of the City 5
Section 2.03. Representations and Warranties of Bank 5
ARTICLE III THE 2017 NOTE 6
Section 3.01. Purpose and Use 6
Section 3.02. The 2017 Note 6
Section 3.03. Adjustments to 2017 Note Rate 6
Section 3.04. Conditions Precedent to Issuance of 2017 Note 7
Section 3.05. Registration of Transfer; Assignment of Rights of Bank 8
Section 3.06. Ownership of the 2017 Note 9
Section 3.07. Use of Proceeds of 2017 Note Permitted Under Applicable Law 9
Section 3.08. Authentication 9
ARTICLE IV COVENANTS OF THE CITY 10
Section 4.01, Performance of Covenants 10
Section 4.02. Payment of 2017 Note 10
Section 4.03. Tax Covenant 10
Section 4.04. Compliance with Laws and Regulations 10
Section 4.05. Additional Debt 10
Section 4.06. Debt Service Fund 11
Section 4.07. Covenant Regarding Pledged Revenues 11
ARTICLE V EVENTS OF DEFAULT AND REMEDIES 11
Section 5.01. Events Of Default 11
Section 5.02. Remedies 12
Section 5.03. Remedies Cumulative 12
Section 5.04. Waivers, Etc. 12
ARTICLE VI MISCELLANEOUS PROVISIONS 12
Section 6.01, Covenants of City, Etc.; Successors 12
Section 6.02. Term of Agreement 13
Section 6.03. Amendments and Supplements 13
Section 6.04, Notices 13
Section 6.05. Benefits Exclusive 13
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42113950;3
Section 6.06. Severability 14
Section 6.07. Payments Due on Saturdays, Sundays and Holidays 14
Section 6.08. Counterparts 14
Section 6.09. Applicable Law 14
Section 6.10. No Personal Liability 14
Section 6.11. Incorporation by Reference 15
Section 6.12. Waiver of Jury Trial 15
Exhibit A Form of Note Including Purchaser's Certificate A-1
ii
42113950;3
LOAN AGREEMENT
THIS LOAN AGREEMENT (the "Agreement"), made and entered into this 20th day of
July, 2017 by and between the CITY OF CAPE CANAVERAL, FLORIDA (the "City"), a
municipal corporation of the State of Florida, and WHITNEY BANK D/B/A HANCOCK
BANK, a Mississippi state banking corporation authorized to do business in Florida, and its
successors and assigns (the "Bank").
WITNESSETH:
WHEREAS, capitalized terms used in these recitals and not otherwise defined shall have
the meanings specified in Article I of this Agreement;
WHEREAS, the City, pursuant to the provisions of the Florida Constitution, Chapter
166, Florida Statutes, Ordinance No. 07-2017 of the City (the "Ordinance") and other applicable
provisions of law (all of the foregoing, collectively, the "Act"), and Resolution No. 2017-10,
adopted by the City on July 18, 2017 (the "Resolution"), is authorized to borrow money, and
more particularly issue the 2017 Note described below for the City's public purposes; and
WHEREAS, regarding an intended borrowing by the City to construct a City owned and
operated multi-generational center, a cultural arts preservation enrichment center and related
capital improvements (the "Project"), the Bank has agreed to purchase the 2017 Note on the
terms set forth herein.
NOW, THEREFORE, the parties hereto agree as follows:
ARTICLE I
DEFINITION OF TERMS
Section 1.01. Definitions. Capitalized terms used in this Agreement shall have the
respective meanings as follows unless the context clearly requires otherwise:
"Act" shall have the meaning assigned to that term in the recitals hereof.
"Agreement" shall mean this Loan Agreement and all modifications, alterations,
amendments and supplements hereto made in accordance with the provisions hereof.
"Authorized Denominations" shall mean$1,000 and integral multiples thereof.
"Bank" shall mean Whitney Bank d/b/a Hancock Bank, a Mississippi state banking
corporation, and its successors and assigns.
"Bond Counsel" shall mean, Akerman LLP, or any other attorney at law or firm of
attorneys of nationally recognized standing in matters pertaining to the exclusion of interest on
obligations issued by states and political subdivisions from federal income taxation hired by the
City to render an opinion on such matters with regard to the 2017 Note.
1
42113950;3
"Business Day" shall mean any day other than a Saturday, a Sunday, or a day on which
the office of the Holder at which payments on the 2017 Note are due or the offices of the City are
lawfully closed.
"City" shall mean the City of Cape Canaveral, Florida, a municipal corporation of the
State of Florida.
"City Clerk" shall mean the City Clerk of the City or any deputy or assistant city clerk of
the City and such other person as may be duly authorized to act on his or her behalf.
"City Manager" shall mean the City Manager of the City and such other person as may be
duly authorized to act on his or her behalf.
"Code" shall mean the Internal Revenue Code of 1986, as amended from time to time,
and the applicable rules and regulations promulgated thereunder.
"Communications Services Taxes" shall mean the taxes on local communications
services levied on the City pursuant to section 202,19(1), Florida Statutes.
"Communications Services Tax Revenues" shall mean all revenues received by the Issuer
from the levy of Communications Services Taxes.
"Debt Service" shall mean principal and interest, and other debt-related costs, due in
connection with the 2017 Note, as applicable.
"Debt Service Fund" shall mean the City of Cape Canaveral Capital Improvement Debt
Service Fund created under Section 4.06 of that loan agreement dated February 26, 2014 by and
between the City and Hancock Bank executed and delivered in connection with the issuance of
the Parity Debt.
"Default Rate" shall mean the 2017 Note Rate plus five percent (5.0%)provided such rate
shall not exceed the highest rate of interest allowed by applicable law.
"Determination of Taxability" shall mean, with respect to the 2017 Note, any
determination, decision or decree by the Commissioner or any District Director of the Internal
Revenue Service, as such officers are identified by the Code, or any court of competent
jurisdiction, that the interest payable under the 2017 Note is includable in federal gross income
(as defined in Section 61 of the Code) of the Holder.
"Event of Default" shall mean an Event of Default as defined in Section 5.01 of this
Agreement.
"Finance Director" shall mean the City's Administrative/Financial Services Director or
such other person as may be duly authorized to act on his or her behalf.
"Financial Advisor" shall mean Larson Consulting Services, LLC, Orlando, Florida or
any other Securities and Exchange Commission and Municipal Securities Rulemaking Board
licensed municipal advisor designated by the City.
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42113950;3
"Fiscal Year" shall mean the 12-month period commencing October 1 of each year and
ending on the succeeding September 30, or such other 12-month period as the City may
designate as its "fiscal year" as permitted by law.
"Franchise Fees" shall mean collectively the franchise fees received by the City pursuant
to that agreement known as "Cape Canaveral Natural Gas Franchise," and the franchise fees
received by the City from Florida Power and Light Company pursuant to a City ordinance
adopted on August 16, 2011.
"Guaranteed Entitlement" shall mean the guaranteed entitlement portion of the state
revenue sharing funds available to the City pursuant to Part II of Chapter 218, Florida Statues.
"Half-Cent Sales Tax" shall mean any and all proceeds of the local government half-cent
sales tax distributed to the City from the Local Government Half-Cent Sales Tax Clearing Trust
Fund, as defined and described in Part VI, Chapter 218, Florida Statues, as amended.
"Holder" and "Noteholder" shall mean the Bank as the initial holder of the 2017 Note and
any subsequent registered holder of the 2017 Note.
"Loan" shall refer to an amount equal to the outstanding principal of the 2017 Note,
together with unpaid interest and penalties, if any, which have accrued.
"Maturity Date" shall mean the date on which all principal and all unpaid interest accrued
on the 2017 Note shall be due and payable in full, which date shall be, if not sooner due to
prepayment, February 1, 2027.
"Parity Debt" shall mean the City's outstanding Capital Improvement Revenue Note,
Series 2014.
"Payment Date" shall mean each February 1 and August 1, commencing February 1,
2018 until the 2017 Note has been paid in full.
"Pledged Revenues" shall mean collectively the Communications Services Tax
Revenues, the Public Services Tax Revenues, the Guaranteed Entitlement, the Half-Cent Sales
Tax, the Franchise Fees and amounts on deposit in the Debt Service Fund.
"Public Services Tax" shall mean such tax as levied and collected by the City pursuant to
the authority of Section 166.231, Florida Statutes.
"Public Services Tax Revenues" shall mean all revenues received by the Issuer from the
levy of the Public Services Tax.
"Resolution" shall mean Resolution No. 2017-10, adopted at a meeting of the City
Council of the City on July 18, 2017, which, among other things, authorized the execution and
delivery of this Agreement and the issuance of the 2017 Note.
"2017 Note" shall mean the City of Cape Canaveral, Florida Capital Improvement
Revenue Note, Series 2017.
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42113950;3
"2017 Note Rate" shall mean the rate of interest to be borne by the 2017 Note, which
shall be a fixed rate equal to 2.05% per annum, calculated on the basis of a 360-day year of 12,
30-day months, subject to adjustment as provided herein and in the 2017 Note.
Section 1.02. Interpretation. Unless the context clearly requires otherwise, words of
masculine gender shall be construed to include correlative words of the feminine and neuter
genders and vice versa, and words of the singular number shall be construed to include
correlative words of the plural number and vice versa. This Agreement and all the terms and
provisions hereof shall be construed to effectuate the purpose set forth herein and to sustain the
validity hereof.
Section 1.03. Titles and Headings. The titles and headings of the Articles and Sections
of this Agreement, which have been inserted for convenience of reference only and are not to be
considered a part hereof, shall not in any way modify or restrict any of the terms and provisions
hereof, and shall not be considered or given any effect in construing this Agreement or any
provision hereof or in ascertaining intent, if any question of intent should arise.
ARTICLE II
REPRESENTATIONS AND WARRANTIES OF THE PARTIES
Section 2.01. Representations and Warranties of City. The City represents and
warrants to the Bank as follows:
(a) Existence. The City is a municipal corporation of the State of Florida, duly
created and validly existing under the laws of the State of Florida, with full power to enter into
this Agreement, to perform its obligations hereunder and to issue and deliver the 2017 Note to
the Bank. The making, execution and performance of this Agreement on the part of the City and
the issuance and delivery of the 2017 Note has been duly authorized by all necessary action on
the part of the City and will not violate or conflict with the Act, the City Charter, or any
agreement, indenture or other instrument by which the City or any of its material properties is
bound.
(b) Validity, Etc. This Agreement, the 2017 Note, the Ordinance and the Resolution
are valid and binding obligations of the City enforceable against the City in accordance with
their respective terms, except to the extent that enforceability may be subject to valid bankruptcy,
insolvency, reorganization, moratorium or similar laws relating to or from time to time affecting
the enforcement of creditors' rights and except to the extent that the availability of certain
remedies may be precluded by general principles of equity.
(c) No Financial Material Adverse Change. No material adverse change in the
financial condition of the City or the Pledged Revenues has occurred since the audited financial
statements of the City for its year ended September 30, 2016.
(d) Powers of City. The City has the legal power and authority to pledge the Pledged
Revenues to the repayment of the 2017 Note as described herein and in the Ordinance and none
of the Pledged Revenues are pledged to any other obligations of the City other than the Parity
Debt to which all of the Pledged Revenues are pledged.
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(e) Authorizations, etc. No authorization, consent, waiver, approval, license,
exemption of or registration or filing with any court or governmental department, council, board,
bureau, agency or instrumentality, domestic or foreign, has been or will be necessary for the
valid execution, delivery and performance by the City of this Agreement, the 2017 Note and the
related documents, except such as have been obtained, given or accomplished.
(f) Advice. The City has sought and obtained financial, legal, tax, accounting and
other advice (including as it relates to structure, timing, terms and similar matters) with respect
to the proposed issuance of the 2017 Note from its financial, legal and other advisors (and not the
Bank or any of its affiliates) to the extent that the City desired to obtain such advice. The City
acknowledges that neither the Bank nor any of its affiliates shall act as a fiduciary for the City or
in the capacity of broker, dealer, municipal securities underwriter or municipal advisor with
respect to the proposed issuance of the 2017 Note and neither the Bank nor any of its affiliates
has provided, and will not provide, financial, legal, tax, accounting or other advice to or on
behalf of the City with respect to the proposed issuance of the 2017 Note.
Section 2.02. Covenants of the City. The City covenants as follows:
At no costs to the Holder, the City will furnish to the Holder (i) within 210 days
following the end of each Fiscal Year, a comprehensive annual financial report of the City for
such Fiscal Year prepared in accordance with generally accepted accounting standards, which
shall include a balance sheet and income statement as of the end of such Fiscal Year, and an
audit report of an independent certified public accountant or firm thereof, (ii) any other financial
information, including but not limited to the City's annual budget, which the Holder may
reasonably request.
Section 2.03. Representations and Warranties of Bank. The Bank represents and
warrants to the City as follows:
(a) Existence. The Bank is a Mississippi state banking corporation, authorized to do
business in the State of Florida, with full power to enter into this Agreement, to perform its
obligations hereunder and to make the Loan. The performance of this Agreement on the part of
the Bank and the making of the Loan have been duly authorized by all necessary action on the
part of the Bank and will not violate or conflict with applicable law or any material agreement,
indenture or other instrument by which the Bank or any of its material properties is bound.
(b) Validity. This Agreement is a valid and binding obligation of the Bank
enforceable against the Bank in accordance with its terms, except to the extent that enforceability
may be subject to valid bankruptcy, insolvency, financial emergency, reorganization, moratorium
or similar laws relating to or from time to time affecting the enforcement of creditors' rights (and
specifically creditors' rights as the same relate to banks) and except to the extent that the
availability of certain remedies may be precluded by general principles of equity.
(c) Knowledge and Experience. The Bank (i) has such knowledge and experience in
financial and business matters that it is capable of evaluating the merits and risks of making the
Loan and purchasing in the 2017 Note, (ii) has received and reviewed such financial information
concerning the Pledged Revenues as it has needed in order to fairly evaluate the merits and risks
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of making the Loan and purchasing in the 2017 Note; and (iii) is purchasing the 2017 Note as an
investment for its own account and not with a current view toward resale to the public.
ARTICLE III
THE 2017 NOTE
Section 3.01. Purpose and Use. On the date of this Agreement, the Bank shall fund to
the City the Loan in the principal amount of Six Million Two Hundred Thousand Dollars
($6,200,000). The Loan will be evidenced by the 2017 Note. The proceeds of the 2017 Note
shall be used solely to construct the Project and to pay costs of issuing the 2017 Note.
Section 3.02. The 2017 Note. The 2017 Note shall be substantially in the form set forth
as Exhibit A to this Agreement. The general terms of the 2017 Note shall be as follows:
(a) Amount of 2017 Note. The aggregate principal amount of the 2017 Note shall be
Six Million Two Hundred Thousand Dollars ($6,200,000).
(b) Interest. The 2017 Note shall bear interest at the 2017 Note Rate payable on each
Payment Date. The 2017 Note Rate shall be subject to adjustment as provided in Sections 3.03
and 5.02 hereof. The Holder shall promptly notify the City in writing of any adjustments in a
2017 Note Rate. Notwithstanding any provision hereof the contrary, in no event shall the
interest rate on the 2017 Note exceed the maximum rate permitted by law. Interest on the 2017
Note shall be computed on the basis of 12, 30-day months and a 360-day year.
(c) Prepayments and Principal Payments. The 2017 Note shall be subject to
prepayment at the option of the City, without any prepayment penalty or fee as provided in the
Note. Any prepayment shall be made on such date as shall be specified by the City in a written
notice delivered to the Holder not less than ten (10) days prior to the specified prepayment date.
Any prepayment shall be applied first to accrued interest, then to other amounts owed the
Holder, and finally to principal in inverse order of maturity in Authorized Denominations.
Principal on the 2017 Note is payable on each February 1 commencing February 1, 2018
as set forth in the 2017 Note.
Section 3.03. Adjustments to 2017 Note Rate. The 2017 Note Rate shall be subject to
adjustment by the Bank as hereinafter described and as provided in the 2017 Note.
In the event of a Determination of Taxability, the 2017 Note Rate shall be adjusted to
cause the yield on the 2017 Note to equal what the yield on the 2017 Note would have been
absent such Determination of Taxability (the "Taxable Rate") effective retroactively to the date
on which interest on the 2017 Note is determined to be included in gross income for federal
income tax purposes. Immediately upon notification to the City of a Determination of
Taxability, the City agrees to pay to the Noteholder subject to such Determination of Taxability
the Additional Amount (as defined herein). "Additional Amount" means (i) the difference
between (a) interest on the 2017 Note for the period commencing on the date on which the
interest on the 2017 Note (or portion thereof) is included in gross income for federal income tax
purposes and ending on the earlier of the date the 2017 Note ceased to be outstanding or such
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adjustment is no longer applicable to the 2017 Note (the "Taxable Period") at a rate equal to the
Taxable Rate and (b) the aggregate amount of interest paid on the 2017 Note for the Taxable
Period under the provisions of the 2017 Note without considering the Determination of
Taxability, plus (ii) any penalties and interest paid or payable by the Noteholder to the Internal
Revenue Service by reason of such Determination of Taxability.
If the 2017 Note ceases to be a "qualified tax-exempt obligation" under Section 265(b)(3)
of the Code then the 2017 Note Rate shall be adjusted to cause the yield on the 2017 Note to
equal what the yield on the 2017 Note would have been in the absence of such change or
amendment in the tax laws or regulations or other cause.
The Holder shall promptly notify the City in writing of any adjustments pursuant hereto.
Such adjustments shall become effective as of the effective date of the event causing such
adjustment. Adjustments pursuant hereto may be retroactive. The Holder shall certify to the
City in writing the additional amount, if any, due to the Holder as a result of an adjustment
pursuant hereto. Notwithstanding any provision here to the contrary, in no event shall the
interest rate on the 2017 Note exceed the maximum rate permitted by law.
Section 3.04. Conditions Precedent to Issuance of 2017 Note. Prior to or
simultaneously with the delivery of the 2017 Note, there shall be delivered to the Bank the
following, each in form and substance reasonably acceptable to the Bank:
(a) an opinion of legal counsel to the City substantially to the effect that (i) the
Resolution and Ordinance have been duly adopted and enacted, respectively, and this Agreement
and the 2017 Note have been duly authorized, executed and delivered by the City and each
constitutes a valid, binding and enforceable agreement of the City in accordance with their
respective terms, except to the extent that the enforceability of the rights and remedies set forth
therein may be limited by bankruptcy, insolvency, or other laws affecting creditors' rights
generally or by usual equity principles; (ii)the City's execution, delivery and performance of this
Agreement and execution and issuance of the 2017 Note are not subject to any authorization,
consent, waiver, approval or review of any governmental body, public officer or regulatory
authority not heretofore obtained or effected; (iii) the execution, issuance and delivery of the
2017 Note has been duly and validly authorized by the City, and the 2017 Note constitutes a
valid and binding special obligation of the City enforceable in accordance with its terms; (iv) the
City (A) is a municipal corporation duly organized and validly existing under the laws of the
State of Florida, and (B) has power and authority to adopt the Resolution and enact the
Ordinance, to execute and deliver this Agreement, to execute and deliver the 2017 Note, and to
consummate the transactions contemplated by such instruments; (v) the execution, delivery and
performance of the 2017 Note and this Agreement, and compliance with the terms thereof and
hereof, under the circumstances contemplated hereby, do not and will not in any material respect
conflict with, or constitute on the part of the City a breach or default under, any indenture,
mortgage, deed of trust, agreement or other instrument to which the City or to which its
properties are subject or conflict with, violate or result in a breach of any existing law,
administrative rule or regulation,judgment, court order or consent decree to which the City or its
properties are subject; (vi) there is no claim, action, suit, proceeding, inquiry, investigation,
litigation or other proceeding, at law or in equity, pending or to the best of such counsel's
knowledge, threatened, in any court or other tribunal, state or federal (A) restraining or
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enjoining, or seeking to restrain or enjoin, the issuance, sale, execution or delivery of the 2017
Note, (B) in any way questioning or affecting the validity or enforceability of any provision of
this Agreement, the 2017 Note, the Resolution or the Ordinance, (C) in any way questioning or
affecting the validity of any of the proceedings or authority for the authorization, sale, execution
or delivery of the 2017 Note, or of any provision made or authorized for the payment thereof, or
(D) questioning or affecting the organization or existence of the City or the right of any of its
officers to their respective offices; (vii) the City has the legal authority to construct the Project,
to grant a lien on the Pledged Revenues as described herein and in the Ordinance; and (viii) all
conditions contained in the ordinances and resolutions of the City precedent to the issuance of
the 2017 Note have been complied with;
(b) an opinion of Bond Counsel (who may rely on opinion of legal counsel to the
City), substantially to such effect that such counsel is of the opinion that: (i) this Agreement
constitutes a valid and binding obligation of the City enforceable upon the City in accordance
with its terms; (ii) the 2017 Note is a valid and binding special obligation of the City enforceable
in accordance with its terms, payable solely from the sources provided therefor in this
Agreement and the Ordinance; (iii) assuming compliance by the City with certain covenants
relating to requirements contained in the Code interest on the 2017 Note is excluded from gross
income for purposes of federal income taxation; (iv)the 2017 Note is a "qualified tax-exempt
obligation" within the meaning of Section 265(b)(3) of the Code; and (v) the 2017 Note is
exempt from registration under the Securities Act of 1993, as amended, and the Resolution, the
Ordinance and this Agreement are exempt from qualification under the Trust Indenture Act of
1939, as amended;
(c) a copy of a completed and executed Form 8038-G to be filed with the Internal
Revenue Service by the City;
(d) the original executed 2017 Note and Agreement;
(e) copies of the Ordinance and Resolution; and
(f) such other documents as the Bank reasonably may request (including, without
limitation, Florida Division of Bond Finance forms).
When the documents and items mentioned in clauses (a) through (f), inclusive, of this
Section shall have been delivered to the Bank, and when the 2017 Note shall have been executed
as required by this Agreement, the City shall deliver the 2017 Note to or upon the order of the
Bank upon receipt of the purchase price therefor.
Section 3.05. Registration of Transfer; Assignment of Rights of Bank. The City as
the registrar shall keep at the office of the City Clerk in the City's records the registration of the
2017 Note and the registration of transfers of the 2017 Note as provided in this Agreement. The
transfer of the 2017 Note may be registered only upon the books kept for the registration of the
2017 Note and registration of transfer thereof upon surrender thereof to the City as registrar
together with an assignment duly executed by the Holder or its attorney or legal representative in
the form of the assignment set forth on the form of the 2017 Note attached as Exhibit A to this
Agreement; provided, however, that such 2017 Note may be transferred only in whole and not in
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part. In the case of any such registration of transfer, the City shall execute and deliver in
exchange for the 2017 Note a new 2017 Note registered in the name of the transferee. In all
cases in which a 2017 Note shall be transferred hereunder, the City shall execute and deliver at
the earliest practicable time a new 2017 Note in accordance with the provisions of this
Agreement. The City may make a charge for every such registration of transfer of a 2017 Note
sufficient to reimburse it for any tax or other governmental charges required to be paid with
respect to such registration of transfer, but no other charge shall be made for registering the
transfer hereinabove granted. The 2017 Note shall be issued in fully registered form and shall be
payable in any lawful coin or currency of the United States.
The registration of transfer of a 2017 Note on the registration books of the City shall be
deemed to effect a transfer of the rights and obligations of the Bank under this Agreement to the
transferee. Thereafter, such transferee shall be deemed to be the Bank under this Agreement and
shall be bound by all provisions of this Agreement that are binding upon the Bank. The City and
the transferor shall execute and record such instruments and take such other actions as the City
and such transferee may reasonably request in order to confirm that such transferee has
succeeded to the capacity of Bank under this Agreement and the 2017 Note.
No transfer shall be permitted absent the City's receipt of a certificate in form and
substance similar to the one included as part of Exhibit A hereto from such proposed transferee.
Every prior Holder of a 2017 Note shall be deemed to have waived and renounced all of such
owner's equities or rights therein in favor of every bona fide purchaser, and every such bona fide
purchaser shall acquire absolute title thereto and to all rights represented thereby.
In the event any 2017 Note is mutilated, lost, stolen, or destroyed,the City shall execute a
new 2017 Note of like date and denomination as that mutilated, lost, stolen or destroyed,
provided that, in the case of any mutilated 2017 Note, such mutilated 2017 Note shall first be
surrendered to the City, and in the case of any lost, stolen, or destroyed 2017 Note, there first
shall be furnished to the City evidence of such loss, theft or destruction together with an
indemnity satisfactory to it.
Section 3.06. Ownership of the 2017 Note. The person in whose name the 2017 Note
is registered shall be deemed and regarded as the absolute owner thereof for all purposes, and
payment of or on account of the 2017 Note shall be made only to the Holder thereof or such
owner's legal representative. All such payments shall be valid and effectual to satisfy and
discharge the liability upon the 2017 Note, and interest thereon, to the extent of the sum or sums
so paid.
Section 3.07. Use of Proceeds of 2017 Note Permitted Under Applicable Law. The
City represents, warrants and covenants that the proceeds of the 2017 Note will be used as
provided in Section 3.01 hereof, and that such use is permitted by applicable law.
Section 3.08. Authentication. Until the 2017 Note shall have endorsed thereon a
certificate of authentication substantially in the form set forth in Exhibit A, duly executed by the
manual signature of the City Clerk as registrar, it shall not be entitled to any benefit or security
under this Agreement. The 2017 Note shall not be valid or obligatory for any purpose unless and
until such certificate of authentication shall have been duly executed by the registrar, and such
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certificate of the registrar upon the 2017 Note shall be conclusive evidence that such the Note
has been duly authenticated and delivered under this Loan Agreement.
ARTICLE IV
COVENANTS OF THE CITY
Section 4.01. Performance of Covenants. The City covenants that it will perform
faithfully at all times its covenants, undertakings and agreements contained in this Agreement
and the 2017 Note and in any proceedings of the City relating to the Loan provided that any
payments due hereunder shall be paid solely from Pledged Revenues.
Section 4.02. Payment of 2017 Note.
(a) The City does hereby irrevocably pledge the Pledged Revenues as security for the
repayment of the 2017 Note.
(b) The 2017 Note is a special obligation of the City secured solely by a prior lien
upon the Pledged Revenues and payable from the Pledged Revenues as provided in the
Ordinance and this Agreement. The 2017 Note will be payable on a parity and rank equally as to
lien on and source and security for payment from the Pledged Revenues, and in all other
respects, with the Parity Debt. The 2017 Note will not constitute a general debt, liability or
obligation of the City or the State of Florida or any political subdivision thereof within the
meaning of any constitutional or statutory limitation. Neither the faith and credit nor the taxing
power of the City or of the State of Florida or any political subdivision thereof is pledged to the
payment of the principal of or interest on the 2017 Note and the Holder shall never have the right
to compel any exercise of any ad valorem taxing power of the City or of the State of Florida or
any political subdivision thereof, directly or indirectly to enforce such payment. The 2017 Note
shall not constitute a lien upon any property of the City except upon the Pledged Revenues.
Section 4.03. Tax Covenant. The City covenants to the Holder that the City will not
make any use of the proceeds of the 2017 Note at any time during the term of such Note which,
if such use had been reasonably expected on the date the 2017 Note was issued, would have
caused such Note to be an "arbitrage bond" within the meaning of the Code. The City will do all
acts including complying with the requirements of the Code and any valid and applicable rules
and regulations promulgated thereunder necessary to insure the exclusion of interest on the 2017
Note from the gross income of the Holder thereof for purposes of federal income taxation.
Section 4.04. Compliance with Laws and Regulations. The City shall maintain
compliance with all federal, state and local laws and regulations applicable to the construction
and improvements of the Project and the Loan.
Section 4.05. Additional Debt. As long as the 2017 Note is outstanding, the City (a)
shall not issue any debt payable from or enjoying a lien upon any of the Pledged Revenues
ranking prior and superior to the lien created by the Ordinance and this Agreement for the benefit
of the 2017 Note and (b) shall not issue any debt payable from any of the Pledged Revenues on a
parity with the Parity Debt or the 2017 Note unless there shall have been obtained and filed with
the City and the Holder of the 2017 Note a certificate of the City's Finance Director (i) setting
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forth the amount of Pledged Revenues for the Fiscal Year immediately preceding the issuance of
such additional debt; (ii) stating that such Pledged Revenues equal at least 1.50 times the
maximum debt service for all outstanding debt secured by and payable from a first lien on such
Pledged Revenues and such additional proposed debt; and (iii) stating either that no Event of
Default has occurred or if such Event of Default has occurred that it shall have been cured. For
purposes of such calculation if the interest rate on the proposed additional debt will be a variable
interest rate, the rate for purposes hereof shall be calculated at the initial rate.
Section 4.06. Debt Service Fund. Commencing August 25, 2017 and no later than the
25th day of each month thereafter the City shall deposit to the Debt Service Fund an amount
equal to at least one-sixth (1/6th) of the interest coming due on the 2017 Note on the next
Payment Date and an amount equal to at least one-twelfth (1/12) of the principal amount coming
due on the 2017 Note on the next February 1. The City shall adjust the amount of any deposit to
the Debt Service Fund so as to provide sufficient moneys therein to pay the amounts due on any
Payment Date. Amounts on deposit in the Debt Service Fund shall be used solely for making
payments on the 2017 Note and the Parity Debt. Deposits of Pledged Revenues to the Debt
Service Fund for the 2017 Note shall be made pro rata with all deposits of Pledged Revenues
made to the Debt Service Fund for the Parity Debt and the Debt Service Fund shall continue to
be held by the Bank for as long as the 2017 Note remains outstanding.
Section 4.07. Covenant Regarding Pledged Revenues. As long as the 2017 Note is
outstanding the City covenants to (i) take all steps, actions, and proceedings necessary for the
enforcement and collection of the Pledged Revenues, (ii) not to repeal the actions of the City
authorizing the receipt of the Pledged Revenues, and (iii) not to amend or modify its proceedings
in any manner which would impair or adversely affect the power of the City to receive any of the
Pledged Revenues or adversely affect in any manner the pledge of the Pledged Revenues or the
rights of the Holder.
ARTICLE V
EVENTS OF DEFAULT AND REMEDIES
Section 5.01. Events Of Default. The following events shall each constitute an "Event
of Default:"
(a) The City defaults in the payment of the principal of or interest on the 2017 Note
when due.
(b) There shall occur the dissolution or liquidation of the City, or the filing by the
City of a voluntary petition in bankruptcy, or the commission by the City of any act of
bankruptcy, or adjudication of the City as a bankrupt, or assignment by the City for the benefit of
its creditors, or appointment of a receiver for the City, or the entry by the City into an agreement
of composition with its creditors, or the approval by a court of competent jurisdiction of a
petition applicable to the City in any proceeding for its reorganization instituted under the
provisions of the Federal Bankruptcy Act, as amended, or under any similar act in any
jurisdiction which may now be in effect or hereafter enacted.
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(c) The City shall default in the due and punctual performance of any other of the
covenants, conditions, agreements and provisions contained in the 2017 Note or in this
Agreement on the part of the City to be performed, and such default shall continue for a period
of thirty days after written notice of such default shall have been received from the Holder of the
2017 Note. Notwithstanding the foregoing, the City shall not be deemed in default hereunder if
such default can be cured within a reasonable period of time and if the City in good faith
institutes curative action and diligently pursues such action until the default has been corrected.
The City shall notify the Holder of any Event of Default within 2 days of discovery
thereof.
Section 5.02. Remedies. A Holder of the 2017 Note or any trustee or receiver acting for
such Holder may either at law or in equity, by suit, action, mandamus or other proceedings in
any court of competent jurisdiction, protect and enforce any and all rights under the laws of the
State, or granted and contained in this Agreement, and may enforce and compel the performance
of all duties required by this Agreement or by any applicable statutes to be performed by the City
or by any officer thereof. Only if any debt payable from the Pledged Revenues on parity with
the 2017 Note is accelerated shall the Holder shall have the right to declare the 2017 Note
immediately due and payable. The City shall pay the Holder the reasonable fees and costs
incurred by the Holder and its agents in pursuing such remedies.
In addition, any amount due hereunder or under the 2017 Note not paid when due shall
bear interest at the Default Rate from and after five (5) days after the date due.
Section 5.03. Remedies Cumulative. No remedy herein conferred upon or reserved to
the Holder is intended to be exclusive of any other remedy or remedies, and each and every such
remedy shall be cumulative, and shall be in addition to every other remedy given hereunder.
Section 5.04. Waivers, Etc. No delay or omission of the Noteholder to exercise any
right or power accruing upon any default shall impair any such right or power or shall be
construed to be a waiver of any such default or any acquiescence therein; and every power and
remedy given by this Agreement to the Noteholder may be exercised from time to time and as
often as may be deemed expedient.
The Noteholder may waive any default which in its opinion shall have been remedied
before the entry of final judgment or decree in any suit, action or proceeding instituted by it
under the provisions of this Agreement or before the completion of the enforcement of any other
remedy under this Agreement, but no such waiver shall be effective unless in writing and no
such waiver shall extend to or affect any other existing or any subsequent default or defaults or
impair any rights or remedies consequent thereon.
ARTICLE VI
MISCELLANEOUS PROVISIONS
Section 6.01. Covenants of City, Etc.; Successors. All of the covenants, stipulations,
obligations and agreements contained in this Agreement shall be deemed to be covenants,
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stipulations, obligations and agreements of the City to the full extent authorized or permitted by
law, and all such covenants, stipulations, obligations and agreements shall be binding upon the
successor or successors thereof from time to time, and upon any officer, board, council,
authority, agency or instrumentality to whom or to which any power or duty affecting such
covenants, stipulations, obligations and agreements shall be transferred by or in accordance with
law.
Section 6.02. Term of Agreement. This Agreement shall be in full force and effect
from the date hereof until the 2017 Note and all other sums payable to the Holder hereunder have
been paid in full.
Section 6.03. Amendments and Supplements. This Agreement may be amended or
supplemented from time to time only by a writing duly executed by each of the City and the
Holder.
Section 6.04. Notices. Any notice, demand, direction, request or other instrument
authorized or required by this Agreement to be given to or filed with the City or the Bank, shall
be deemed to have been sufficiently given or filed for all purposes of this Agreement if and
when sent by certified mail, return receipt requested:
(a) As to the City:
City of Cape Canaveral, Florida
P.O. Box 326
Cape Canaveral, Florida 32920
Attention: City Manager
(b) With a copy to:
Anthony Garganese, Esq.
111 N. Orange Avenue, Suite 2000
Orlando, Florida 32802
(c) As to the Bank:
Whitney Bank d/b/a Hancock Bank
113 Designer Circle
Dothan, Alabama 36303
Attention: Steven E. Cole
or at such other address as shall be furnished in writing by any such party to the other, and shall
be deemed to have been given as of the date so delivered or deposited in the United States mail.
Either party may, by notice sent to the other, designate a different or additional address to which
notices under this Agreement are to be sent.
Section 6.05. Benefits Exclusive. Except as herein otherwise provided, nothing in this
Agreement, expressed or implied, is intended or shall be construed to confer upon any person,
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firm or corporation, other than the City and the Holder, any right, remedy or claim, legal or
equitable, under or by reason of this Agreement or any provision hereof, this Agreement and all
of its provisions being intended to be and being for the sole and exclusive benefit of the City and
the Holder.
Section 6.06. Severability. In case any one or more of the provisions of this
Agreement, any amendment or supplement hereto or of the 2017 Note shall for any reason be
held to be illegal or invalid, such illegality or invalidity shall not affect any other provision of
this Agreement, any amendment or supplement hereto or the 2017 Note, but this Agreement, any
amendment or supplement hereto and the 2017 Note shall be construed and enforced at the time
as if such illegal or invalid provisions had not been contained therein, nor shall such illegality or
invalidity or any application thereof affect any legal and valid application thereof from time to
time. In case any covenant, stipulation, obligation or agreement contained in the 2017 Note or in
this Agreement shall for any reason be held to be in violation of law, then such covenant,
stipulation, obligation, or agreement shall be deemed to be the covenant, stipulation, obligation
or agreement of the City to the full extent from time to time permitted by law.
Section 6.07. Payments Due on Saturdays, Sundays and Holidays. In any case where
the date of maturity of interest on or principal of the 2017 Note or the date fixed for prepayment
of the 2017 Note shall be other than a Business Day, then payment of such interest or principal
shall be made on the next succeeding Business Day with the same force and effect as if paid on
the date of maturity or the date fixed for prepayment, and no interest on any such principal
amount shall accrue for the period after such date of maturity or such date fixed for prepayment.
Section 6.08. Counterparts. This Agreement may be executed in any number of
counterparts, each of which when so executed and delivered, shall be an original; but such
counterparts shall together constitute but one and the same Agreement, and, in making proof of
this Agreement, it shall not be necessary to produce or account for more than one such
counterpart.
Section 6.09. Applicable Law. This Agreement shall be governed exclusively by and
construed in accordance with the applicable laws of the State of Florida.
Section 6.10. No Personal Liability. Notwithstanding anything to the contrary
contained herein or in the 2017 Note, or in any other instrument or document executed by or on
behalf of the City in connection herewith, no stipulation, covenant, agreement or obligation of
any present or future member of the City Council of the City, officer, employee or agent of the
City, officer, employee or agent of a successor to the City, in any such person's individual
capacity, shall cause such person to be liable personally for any breach or non-observance of or
for any failure to perform, fulfill or comply with any such stipulations, covenants, agreements or
obligations, nor shall any recourse be had for the payment of the principal of or interest on the
2017 Note or for any claim based thereon or on any such stipulation, covenant, agreement or
obligation, against any such person, in his or her individual capacity, either directly or through
the City or any successor to the City, under any rule or law or equity, statute or constitution or by
the enforcement of any assessment or penalty or otherwise and all such liability of any such
person, in his or her individual capacity, is hereby expressly waived and released.
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Section 6.11. Incorporation by Reference. All of the terms and obligations of the
Ordinance and the Resolution are hereby incorporated herein by reference as if all of the
foregoing were fully set forth in this Agreement. All recitals appearing at the beginning of this
Agreement are hereby incorporated herein by reference.
Section 6.12. Waiver of Jury Trial. THE BANK AND THE CITY HEREBY
KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT EITHER
MAY HAVE TO A TRIAL BY JURY IN RESPECT TO ANY LITIGATION BASED
HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THE
RESOLUTION, THIS AGREEMENT, THE 2017 NOTE OR ANY OTHER AGREEMENT
CONTEMPLATED TO BE EXECUTED IN CONJUNCTION HEREWITH, OR ANY
COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL
OR WRITTEN), OR ACTIONS OF EITHER PARTY.
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[Signature Page for LOAN AGREEMENT
dated as of July 20, 2017 between
City of Cape Canaveral, FL and Whitney Bank d/b/a Hancock Bank]
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the date first set forth herein.
CITY OF CAPE CANAVERAL,FLORIDA
By:
ATTEST: Mayor
City Clerk
WHITNEY BANK D/B/A HANCOCK
BANK
By:
Name: Steven E. Cole
Title: Senior Vice President
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EXHIBIT A
FORM OF NOTE
PRIOR TO BECOMING A HOLDER, A PROPOSED PURCHASER SHALL
EXECUTE A PURCHASER'S CERTIFICATE IN THE FORM ATTACHED HERETO
CERTIFYING, AMONG OTHER THINGS, THAT SUCH HOLDER IS A "QUALIFIED
INSTITUTIONAL BUYER" AS SUCH TERM IS DEFINED IN THE SECURITIES ACT OF
1933, AS AMENDED, AND RULE 144a THEREUNDER.
CITY OF CAPE CANAVERAL, FLORIDA
CAPITAL IMPROVEMENT REVENUE NOTE,
SERIES 2017
Principal Sum Maturity Date Note Rate Date of Issuance
$6,200,000 February 1, 2027 2.05% July 20, 2017
The CITY OF CAPE CANAVERAL, FLORIDA (the "City"), for value received, hereby
promises to pay, solely from the sources described in the within mentioned Agreement, to the
order of WHITNEY BANK D/B/A HANCOCK BANK, a Mississippi state banking corporation,
or its assigns (the "Holder"), the Principal Sum, such principal to be paid in installments on each
February 1 in the amounts set forth on Exhibit "A" hereto, with all unpaid principal and interest
due in full on the above referenced Maturity Date, and to pay interest on the outstanding
principal amount hereof from the most recent date to which interest has been paid or provided
for, or if no interest has been paid, from the Date of Issuance shown above, on February 1 and
August 1 of each year (each, a "Payment Date"), commencing on February 1, 2018, until
payment of said principal sum has been made or provided for, at the above referenced Note Rate,
subject to adjustment as described herein, calculated on the basis of 12, 30-day months and a
360-day year. Payments due hereunder shall be payable in any coin or currency of the United
States of America which, at the time of payment, is legal tender for the payment of public and
private debts, which payments shall be made to the Holder hereof by check mailed to the Holder
at the address designated in writing by the Holder for purposes of payment or by bank wire or
bank transfer as such Holder may specify in writing to the City or otherwise as the City and the
Holder may agree.
The Note Rate shall be adjusted in accordance with Sections 3.03 and 5.02 of that certain
Loan Agreement by and between the Holder and the City, dated July 20, 2017, as amended and
supplemented from time to time (the "Agreement'). Such adjustments may be retroactive.
This 2017 Note is issued for the purpose of providing the City funds to construct various
capital improvements including a multi-generational center, cultural arts preservation enrichment
center and related capital improvements under the authority of and in full compliance with the
Constitution and Statutes of the State of Florida, including particularly Chapter 166, Florida
Statutes, Ordinance No 07-2017 of the City and other applicable provisions of law, and
Resolution No. 2017-10, adopted by the City Council of the City on July 18, 2017, and the
Agreement.
Exhibit A-1
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This 2017 Note is a limited, special obligation of the City, payable from and secured
solely by a lien upon and pledge of the Pledged Revenues, as defined and described and in the
manner provided in the Agreement.
All capitalized terms not otherwise defined herein shall have the meanings ascribed to
such terms in the Agreement.
This 2017 Note may be prepaid by the City in whole, but not in part, on any date as
provided in the Agreement from any legally available monies at a prepayment price of 100% of
the principal amount to be redeemed without any prepayment penalty or fee, plus accrued
interest to the prepayment date. This 2017 Note may be prepaid in part on any February 1 as
provided in the Agreement from any legally available monies at a prepayment price of 100% of
the principal amount to be redeemed, without any prepayment penalty or fee plus accrued
interest to the prepayment date in Authorized Denominations. Any prepayments shall be applied
as provided in Section 3.02(c) of the Agreement.
Notice having been given as provided in the Agreement, the principal amount to be
prepaid shall become due and payable on the prepayment date stated in such notice, together
with interest accrued and unpaid to the prepayment date on such principal amount; and the
amount of principal and interest then due and payable shall be paid upon presentation and
surrender and exchange (if prepayment is part) of this 2017 Note to the office of the Registrar.
If, on the prepayment date, funds for the payment of the principal amount, together with interest
to the prepayment date on such principal amount, shall have been given to the Holder, as above
provided, then from and after the prepayment date interest on such principal amount of this 2017
Note shall cease to accrue.
Notwithstanding any provision in this 2017 Note to the contrary, in no event shall the
interest contracted for, charged or received in connection with this 2017 Note (including any
other costs or considerations that constitute interest under the laws of the State of Florida which
are contracted for, charged or received) exceed the maximum rate of nonusurious interest
allowed under the State of Florida as presently in effect and to the extent an increase is allowable
by such laws, but in no event shall any amount ever be paid or payable by the City greater than
the amount contracted for herein. In the event the maturity of this 2017 Note is prepaid in
accordance with the provisions hereof, the Agreement or the Resolution, then such amounts that
constitute payments of interest, together with any costs or considerations which constitute
interest under the laws of the State of Florida, may never exceed an amount which would result
in payment of interest at a rate in excess of that permitted by Section 215.84(3), Florida Statutes,
as presently in effect and to the extent an increase is allowable by such laws; and excess interest,
if any, shall be cancelled automatically as of the date of such prepayment, or, if theretofore paid,
shall be credited on the principal amount of this 2017 Note unpaid, but such crediting shall not
cure or waive any default under the Agreement or Resolution.
THIS 2017 NOTE SHALL NOT BE OR CONSTITUTE AN INDEBTEDNESS OF THE
CITY OR THE STATE OF FLORIDA (THE "STATE"), WITHIN THE MEANING OF ANY
CONSTITUTIONAL, STATUTORY OR CHARTER LIMITATIONS OF INDEBTEDNESS,
BUT SHALL BE PAYABLE SOLELY FROM THE PLEDGED REVENUES, AS PROVIDED
IN THE AGREEMENT AND THE ORDINANCE. THE HOLDER SHALL NEVER HAVE
Exhibit A-2
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THE RIGHT TO COMPEL THE EXERCISE OF THE AD VALOREM TAXING POWER OF
THE CITY, OR AD VALOREM TAXATION IN ANY FORM OF ANY PROPERTY
THEREIN TO PAY THIS 2017 NOTE OR THE INTEREST HEREON.
Upon the occurrence of an Event of Default the Holder of the 2017 Note shall also have
such remedies as described in the Agreement.
The City hereby waives presentment, demand, protest and notice of dishonor. This 2017
Note is governed and controlled by the Agreement and reference is hereby made thereto
regarding interest rate adjustments and other matters.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
Exhibit A-3
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IN WITNESS WHEREOF, the City has caused this 2017 Note to be signed by its Mayor
by his manual signature, and the seal of the City to be affixed hereto or imprinted or reproduced
hereon, and attested by its City Clerk, manually, and this 2017 Note to be dated the Date of
Issuance set forth above.
CITY OF CAPE CANAVERAL,FLORIDA
[SEAL]
By:
Mayor
ATTEST:
By:
City Clerk
Exhibit A-4
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FORM OF CERTIFICATE OF AUTHENTICATION
Date of Authentication:
This 2017 Note is being delivered pursuant to the within mentioned Agreement.
CITY OF CAPE CANAVERAL,FLORIDA,
as Registrar
By:
City Clerk
Exhibit A-5
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ASSIGNMENT
FOR VALUE RECEIVED the undersigned sells, assigns and transfers unto
(please print or typewrite name, address
and tax identification number of assignee)
the within 2017 Note and all rights thereunder, and hereby irrevocably constitutes and appoints
Attorney to transfer the within 2017 Note on the books kept
for registration thereof, with full power of substitution in the premises.
Name of Holder:
By:
Exhibit A-6
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EXHIBIT A
NOTE -PRINCIPAL PAYMENT SCHEDULE
Year Amount
2018 $564,000
2019 576,000
2020 588,000
2021 600,000
2022 613,000
2023 625,000
2024 638,000
2025 652,000
2026 665,000
2027 679,000
Exhibit A-7
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PURCHASER'S CERTIFICATE
City of Cape Canaveral, Florida(the "City")
Ladies and Gentlemen:
The undersigned, as a purchaser of the City of Cape Canaveral, Florida Capital
Improvement Revenue Note, Series 2017 (the "2017 Note") dated July 20, 2017, consisting of
one typewritten Note, hereby certifies that we have been provided (a) a copy of City Ordinance
No. 07-2017 adopted by the City of Cape Canaveral, Florida (the "City") on July 18, 2017,
authorizing the issuance of the 2017 Note (the "Ordinance") (b) a copy of City Resolution
No. 2017-10, adopted by the City on July 18, 2017, authorizing the issuance of the 2017 Note
(the "Resolution"), (c) the Loan Agreement dated July 20, 2017, between the City and us, [as
assignee of]Whitney Bank d/b/a Hancock Bank (the "Agreement") and (d) such financial and
general information respecting the Pledged Revenues (as such term is defined in the Agreement)
and the City, and the 2017 Note described above as we deem necessary to enable us to make an
informed investment judgment with respect to the purchase of the 2017 Note.
We hereby make the following representations, which representations may be relied upon
by the City:
A. We are aware:
(i) that investment in the 2017 Note involves various risks;
(ii) that the 2017 Note is not a general obligation of the City; and
(iii) that the principal and interest on the 2017 Note is payable solely from the
Pledged Revenues as specified in the Ordinance and the Agreement.
B. We understand that no official statement, offering memorandum or other form of
offering document was prepared or is being used in connection with the offering
or sale of the 2017 Note (collectively, "Disclosure Documents"), but we have
been afforded access to all information we have requested in making our decision
to purchase the 2017 Note and have had sufficient opportunity to discuss the
business of the City with its officers, employees and others. We have not
requested any Disclosure Documents in connection with the sale of the 2017
Note. We do not require any further information or data incident to our purchase
of the 2017 Note.
C. In purchasing the 2017 Note, we have made our own inquiry and analysis with
respect to the 2017 Note and the security therefor, and other material matters
affecting the security and payment of the 2017 Note. We are aware that revenue
Exhibit A-8
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obligations such as the 2017 Note involve certain economic variables and risks
that could affect the security of the 2017 Note.
D. We have knowledge and experience in financial and business matters and are
capable of evaluating the merits and risks of our investment in the 2017 Note and
have determined that we can bear the economic risk of our investment in the 2017
Note.
E. We acknowledge the understanding that the 2017 Note is not registered under the
Securities Act of 1933, as amended (the "1933 Act") or Chapter 517, Florida
Statutes, and that the Ordinance, the Resolution and the Agreement are not
qualified under the Trust Indenture Act of 1939, as amended, and that the City has
no obligation to effect any such registration or qualification.
F. We are purchasing the 2017 Note for our own account. We do not currently
intend to syndicate the 2017 Note, Although we retain the right to transfer the
2017 Note in the future, we understand that the 2017 Note may not be readily
transferable.
G. We have received all documents requested by us incident to our purchase of the
2017 Note.
H. We acknowledge that we are a "qualified institutional buyer" within the meaning
of Rule 144a of the 1933 Act.
I. We have not asked that the 2017 Note bear a CUSIP and we do not intend to seek
CUSIP for the 2017 Note.
J. We understand that no filing will be made with respect to the 2017 Note with
EMMA, the Municipal Securities Rulemaking Boards continuing disclosure site.
K. There will be no credit rating obtained for the 2017 Note and we have not asked
for or sought such a rating.
Signed as of the day of ,
By:
Authorized Officer
Exhibit A-9
42113950;3
City of Cape Canaveral
[city seal] City Council Agenda Form
City Council Meeting Date: 7/18/2017
Item No. 6
Subject: Ordinance No. 08-2017; amending Chapter 98 of the Cape Canaveral Land
Development Code relating to submittal, review procedures and criteria for Preliminary Plats,
Final Plats and Lot Splits; creating a procedure for Lot Line Adjustments; providing for the
repeal of prior inconsistent ordinances and resolutions,incorporation into the Code,severability
and an effective date, second reading.
Department: Community Development
Summary: Until 2010, all plats processed in the City followed a two—step process,
preliminary and final plat approval. Each of these steps required a public hearing in front of
the Planning&Zoning(P&Z) Board as well as the City Council. hi total, four public hearings
were required to obtain an approved plat.
In 2010, due to the burdensome nature of the platting process, the City created a new process
for platting minor subdivisions of land. The new process, known as a "lot split", allowed for
a "division of a tract of land or lot that would result in the creation of exactly one additional
tract of land or lot." This process condensed the two-step process to a single approval that
required one hearing before the P&Z Board and one before City Council.
The proposed Ordinance advances the effort to streamline/augment the current process,notably:
1. Lot Line Adjustment - the proposed Ordinance creates a Lot Line Adjustment process
(Sec. 98-67), whereby minor boundary adjustments, between adjacent parcels, can be
administratively approved without triggering platting requirements. The Section also
establishes application requirements, a review process and additional criteria that must
be met prior to approval of a Lot Line Adjustment. A survey of the original and
reconfigured lots prepared by a licensed land surveyor shall be required. In most cases,
affected property owners will be required to enter into a Unity of Title Agreement with
the City.
2. Approval Criteria—the proposed Ordinance adds 6 criteria that must be met in order to
approve a lot split or preliminary and final plat. The criteria are aimed at ensuring the
compatibility of the application with the surrounding neighborhood and adequate public
services are available.
3. Variance Process—currently,a variance request from the subdivision regulations is first
considered by the P&Z Board, with final action taken by the Board of Adjustment. As
proposed, a variance will be considered by the P&Z Board with final action taken by
the City Council. An aggrieved party shall have the right to file an action in a court of
competent jurisdiction.
At its May 24,2017 Regular Meeting,the P&Z Board recommended to City Council the changes
indicated in the proposed Ordinance.
The Notice of Public hearing was advertised in Florida Today on July 6, 2017.
City Council Meeting
Date: 7/18/2017
Item No. 6
Page 2 of 2
Submitting Department Director: David Dickey Date: 7-10-17
Attachment:
Ordinance No. 08-2017
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 Date: 7/6/17
The City Manager recommends that City Council take the following action:
Adopt Ordinance No. 08-2017 on second reading.
Approved by City Manager: David L. Greene Date: 7/8/17
ORDINANCE NO. 08-2017
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF CAPE CANAVERAL, BREVARD COUNTY, FLORIDA,
AMENDING CHAPTER 98 OF THE CAPE CANAVERAL
LAND DEVELOPMENT CODE RELATING TO
SUBMITTAL, REVIEW PROCEDURES AND CRITERIA
FOR PRELIMINARY PLATS, FINAL PLATS AND LOT
SPLITS; CREATING A PROCEDURE FOR LOT LINE
ADJUSTMENTS; PROVIDING FOR THE REPEAL OF
PRIOR INCONSISTENT ORDINANCES AND
RESOLUTIONS, INCORPORATION INTO THE CODE,
SEVERABILITY AND AN EFFECTIVE DATE.
WHEREAS, the City of Cape Canaveral 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, the City Council desires to streamline and update the requirements and
procedures for consideration and approval of preliminary and final plats and lot splits consistent
with the requirements of Chapter 177, Florida Statutes; and
WHEREAS, the City Council desires to update the criteria for approval of preliminary
and final plats consistent with the requirements of Chapter 177, Florida Statutes; and
WHEREAS, the City Council also desires to create a process for lot line adjustments,
which shall not result in the creation of any additional lots; and
WHEREAS, the Planning and Zoning Board has reviewed these proposed amendments
at a duly noticed public hearing held on May 24, 2017, and said Board has recommended approval
of the amendments to the City Code; and
WHEREAS, the City Council hereby finds that this Ordinance is in the best interests of
the public health, safety and welfare of the citizens of Cape Canaveral, Florida; and
NOW, THEREFORE, THE CITY OF CAPE CANAVERAL HEREBY ORDAINS
AS FOLLOWS:
Section 1. Recitals. The foregoing recitals are true and correct and are fully incorporated
herein by this reference.
Section 2. Code Amendment. Chapter 98, Zoning, 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 98. It is intended that the text in Chapter 98, denoted by the asterisks and
City of Cape Canaveral
Ordinance No.08-2017
Page 1 of 14
set forth in this Ordinance shall remain unchanged from the language existing prior to adoption of
this Ordinance):
Chapter 98 Subdivisions
Article I In General
Sec. 98-1. -Definitions.
Planning Official means the Community Development Director or his or her designee.
Subdivision means the division of a tract of land into twe three or more lots or parcels for
the purpose of transfer of ownership or building development or, if a new street is involved, any
division of a tract of land. The term "subdivision"includes resubdivision and replatting, and,when
appropriate to the context, shall relate to the process of subdividing or the land subdivided.
Sec. 98-3. -Powers of planning and zoning board.
The city council delegates to the planning and zoning board the advisory powers expressed
in this chapter.
Sec. 98-4. -Variance.
(a)Hardship. Whenever the planning and zoning board finds that hardship may result from
strict compliance with this chapter, based on applicable criteria and requirements set forth in this
chapter, it may recommend to the city council that the regulations be varied so that substantial
justice may be done and the public interest secured; provided that such variance will not have the
effect of nullifying the intent and purpose of the comprehensive plan or these regulations.
(b) Application. Any person owning an interest in any real property may apply to the
city council for a variance from these regulations. The application shall first be
submitted to the planning and zoning board for study and written recommendation, and shall be
accompanied by a fee established by the city council. The city
council shall consider the recommendation of the planning and zoning board as part of the official
record when hearing an application for a variance. The application shall be in such form as
approved by the planning official and shall contain the following minimum
information:
(1) The name of the owner of the particular real property.
City of Cape Canaveral
Ordinance No.08-2017
Page 2of14
(2)If the applicant is other than all the owners of the particular property,written consent signed
by all owners of the particular real property shall be attached.
(3) The legal description of the particular real property, accompanied by a certified survey of
that portion of the map maintained by the tax assessor reflecting the boundaries of the
particular real property.
(4) The current zoning classification, special use classification, with any specified conditions,
or conditional use designation as recorded on the official zoning maps.
(5) The variance from the provisions of this chapter requested plus the basis for the request.
(6) Names and addresses of all property owners owning property within 200 feet of the
particularly property, accompanied by a certified survey or that portion of the map
maintained by the tax assessor reflecting the boundaries of the parcels affected.
(c)Public hearing; notice. Upon receipt of the executed application and recommendation from the
planning and zoning board, the city council shall forthwith schedule a
hearing on the application. Notice of the time and place of the public hearing shall be given to the
applicant at least 15 days prior to the public hearing. Notice of the time and place of the public
hearing on the application shall be published once at least 15 days prior to the public hearing in a
newspaper of general circulation within the county. The notice shall contain the name of the
applicant, the legal description of the affected property, the existing zoning classification, special
use classification or conditional use designation and requested variance from the provisions of this
chapter. In addition, a notice containing the aforementioned information shall be posted in the city
hall by city officials, and a notice containing the information mentioned in this subsection,
excluding the legal description but including total affected acreage, shall be posted by the applicant
for the variance on the affected property at least 15 days prior to the public hearing. If the property
abuts a public road right-of-way, the notice shall be posted in such a manner as to be visible from
that road right-of-way. An affidavit signed by the owner or applicant evidencing posting of the
affected real property must be received by the city prior to the time that such matter is heard by
the city council. Failure to provide such affidavit prior to the hearing shall
result in tabling the application for one meeting at cost to the applicant or denial of the request. It
shall be unlawful for any person to remove the notice containing the information mentioned in this
subsection from the affected property or from the city hall. Any person found guilty of violating
this section shall be subject to legal action.
(d)Prerequisites to granting. A variance may be granted when it will not be contrary to the public
interest where, owing to special conditions, a literal enforcement of the provisions of these
regulations will result in hardship; provided specifically, however, that economic or personal
medical reasons shall not be considered as grounds for establishing hardship sufficient to qualify
an applicant for a variance. In order to authorize any variance from the terms of these regulations,
the city council shall find all of the following factors to exist:
(1) Special conditions and circumstances exist which are not applicable to other lands,
structures or buildings in the applicable zoning classification; and
(2) The special conditions and circumstances do not result from the actions of the applicant;
and
(3) Granting the variance requested will not confer on the applicant any special privilege that
is denied by the provisions of this chapter to other lands or structures in the identical zoning
classification; and
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Ordinance No.08-2017
Page 3 of 14
(4) Literal interpretation of the provisions of these regulations would deprive the applicant of
rights commonly enjoyed by other properties in the identical zoning classification under
the provisions of this chapter and will constitute unnecessary and undue hardship on the
applicant; and
(5) The variance granted is the minimum variance that will make possible the reasonable use
of the land, building or structure; and
(6)The granting of the variance will be in harmony with the general intent and purpose of this
chapter and such variance will not be injurious to the area involved or otherwise
detrimental to the public welfare.
In no case shall the city council grant a
variance which will result in a change of land use that would not be permitted in the applicable
zoning classification.
(e) Conditions. In granting ef any variance, the
city council may prescribe appropriate conditions and safeguards in conformity with this
chapter and any ordinance enacted by the city. The city council may also, as
a condition of approval,recommend compliance with any site plan or other specification submitted
by the applicant when it has relied upon such site plan or specifications in granting the variance.
Violation of such conditions and safeguards, when made a part of the terms under which the
variance is granted, shall be deemed a violation of this chapter. Variances granted from a specific
requirement of this chapter shall be in full force only as long as that specific requirement is in
effect. Furthermore, the city council may prescribe a reasonable time limit
within which the action for which the variance is required shall be begun or completed, or both.
Sec. 98-5. -Appeals and arbitrations.
(a) Any party
aggrieved by any final decision of the city council made under section 98-4 shall have the right to
file an appropriate action in a court of competent jurisdiction.
(b) The board of adjustment city council shall not rehear a variance once decided unless an error
in substantive or procedural law is found following the decision, or unless the
city council makes a finding based on a presentation by the applicant that new evidence, not
discoverable by the applicant prior to the initial hearing, is found. A different or more effective
presentation or clarification of the same evidence or matters considered at the initial hearing shall
not be grounds for a rehearing before the city council.
***
Article II Plats and Lot Splits
***
Division 1.— Generally
City of Cape Canaveral
Ordinance No.08-2017
Page 4 of 14
Sec. 98-31. -Division of land; review and approval required; zoning.
(a) Any subdivision of land into two or more parcels shall be subject to the requirements of
this article.
(b) No owner of real property shall sell, offer to sell or lease lots or tracts of land from such
property without first having divided such property in accordance with the requirements of this
article.Before such lot or tract is divided,the lots or tracts proposed to be divided shall be surveyed
by a duly licensed Florida surveyor and approved by the city council by plat or lot split resolution
in accordance with the specific applicable provisions of this article and F.S. ch. 177. No permit
shall be issued for the construction of any building or structure or for an electrical or sewer hookup
on any lot or tract sold in violation of this article; provided, however, that any such violation can
be remedied by complying with the provisions of this article. Additionally, any subdivision or lot
split approved pursuant to this article shall in every respect meet the criteria established elsewhere
in this article and the City Code for the category of zoning and other relevant codes under which
the property is zoned.
***
Division 3.— Preliminary Plat
***
Sec. 98-45. - City review.
(a) The applicant shall submit copies of the preliminary plat and other information as
prescribed in section 98-41 for review by the city staff. City staff shall determine the number of
copies to be submitted for review.Upon receipt of the documents the planning official shall review
and forward to the appropriate city reviewing staff a copy of all documents submitted and such
other documents as deemed appropriate to enable the city reviewing staff to review the application
and either find the application to be sufficient, or point out areas that are inadequate or improper.
The city attorney shall review the title opinion or certification, protective covenants, articles of
incorporation and bylaws and shall make recommendations, if necessary.
(b) Within 30 days, the city reviewing staff will return in writing all comments,
recommendations and questions to the applicant.
(c) Should any comment or recommendation made by a member of the city reviewing staff
require the applicant to revise its submittal, the city reviewing staff shall review the revised
submittal and return all comments, recommendations and questions to the planning official, who
shall then forward all documents to the applicant.
(d) Upon receiving satisfactory reviews from all of the city reviewing staff,the applicant shall
submit revised copies of the plat and other information as prescribed in section 98-41. The number
City of Cape Canaveral
Ordinance No.08-2017
Page 5 of 14
of copies required shall be determined by city staff Upon receipt of all documents, the planning
official shall schedule the application for consideration by the planning and zoning board and city
council as required by this chapter. The planning and zoning board shall recommend, in writing,
approval, approval with conditions or disapproval to the city council. All recommendations,
conditions and changes of the planning and zoning board shall be noted on the preliminary plat,
which shall be provided to the city council.
Sec. 98-46. -Planning and zoning board and city council review.
(a) The planning and zoning board and city council shall review the preliminary plat and other
material submitted for conformity with this Code and may negotiate on changes deemed advisable_
The planning and zoning board and city council shall vote to either accept, reject or modify the
planning official's recommendation. All conditions and changes shall be noted on the preliminary
plat by the planning official as directed by the city council.
Sec. 98-47. - General criteria for approval.
Prior to the planning and zoning board recommending approval to the city council,
applicants shall demonstrate to the planning and zoning board, and the planning and zoning board
must find, that the proposed preliminary plat meets the criteria listed in subsections (a) through
(dj.) below. Further, prior to approving any proposed preliminary plat, the applicant must
demonstrate to the city council, and the city council must find, that the proposed preliminary plat
meets the criteria listed in subsections (a) through (j.)below.
(a) The application in compliance with the provisions of this article and applicable law.
(b) The application is consistent with the city's comprehensive plan.
(c) The application does not create any lots,tracts of land or developments that do not conform
to the City Code.
(d) The application provides for proper ingress and egress through a public or approved private
street or perpetual cross access easements.
(e) The application is compatible and in harmony with the surrounding neighborhood
including with respect to the size of existing surrounding lots and development trends in
the neighborhood which have been previously approved by the city council.
(f) The application does not create burdensome congestion on the streets and highways.
(g) The application promotes the orderly layout and use of land.
(h) The application provides for adequate light and air.
(i) The application does not create overcrowding of land.
City of Cape Canaveral
Ordinance No.08-2017
Page 6 of 14
Q) The application does not pose any significant harm to the adequate and economical
provision of water, sewer and other public services.
Division 4.—Final Plat
Sec. 98-60. -Application for approval.
Application shall be made for subdivision final plat approval as follows:
(a) Upon the documents required under this division being presented to the city, the planning
official shall review and forward to the appropriate city reviewing staff a copy of all submittals
and such other documents as he or she deems appropriate to enable the city reviewing staff to
review the subdivision and either find the application to be sufficient, or point out areas that are
inadequate or improper. The city attorney shall review the title opinion or certification, protective
covenants, articles of incorporation and bylaws and shall make recommendations, if applicable.
(b) Within 30 days, the reviewing staff will return in writing all comments, recommendations
and questions to the planning official, who shall then forward all documents to the applicant.
(c) Should any comment or recommendation made by a member of the city reviewing staff
require the applicant to revise its subdivision submittal, the city reviewing staff shall review the
revised submittal and return all comments, recommendations and questions to the planning
official, who shall then forward all documents to the applicant.
(d) Upon receiving satisfactory reviews from all of the city reviewing staff and revised copies
of the plat, the planning official shall schedule the application for consideration by the planning
and zoning board.
Sec. 98-61. - Planning and zoning board and city council review; general criteria for
approval.
(a) When all requirements under this division have been satisfied, the planning and zoning
board will vote to recommend approval, approval with conditions, or disapproval of the
subdivision final plat, and these recommendations will be submitted to the city council at the next
regularly scheduled council meeting or as soon as possible thereafter. The city council shall vote;
to either accept, reject, or modify the board's recommendation.
(b) Prior to the planning and zoning board recommending approval to the city council,
applicants shall demonstrate to the planning and zoning board, and the planning and zoning board
must find, that the proposed final plat meets the criteria listed in subsections (1) through {4)(10)
below. Further, prior to approving any proposed final plat, the applicant must demonstrate to the
City of Cape Canaveral
Ordinance No.08-2017
Page 7 of 14
city council, and the city council must find, that the proposed final plat meets the criteria listed in
subsections (1)through(10)below.
(1) The application is in compliance with the provisions of this article and applicable law.
(2) The application is consistent with the city's comprehensive plan.
(3) The application does not create any lots, tracts of land or developments that do not
conform to the City Code.
(4) The application provides for proper ingress and egress through a public or approved
private street or perpetual cross access easements.
(5) The application is compatible and in harmony with the surrounding neighborhood
including with respect to the size of existing surrounding lots and development trends
in the neighborhood which have been previously approved by the city council.
(6) The application does not create burdensome congestion on the streets and highways.
(7) The application promotes the orderly layout and use of land.
(8) The application provides for adequate light and air.
(9) The application does not create overcrowding of land.
(10) The application does not pose any significant harm to the adequate and economical
provision of water, sewer and other public services.
Division 5.—Lot Splits
Sec. 98-66.—Lot splits.
The city council may by resolution at a public hearing grant waivers from the platting
requirements of this chapter for divisions of land that constitute a lot split.
(a) Definition. For purposes of this
section, the term "lot split" shall mean a division of a tract of land or lot that will result in the
creation of exactly one (1) additional lot or tract of land provided the lot or tract of land to be split
is a previously platted lot or legal description of record.
City of Cape Canaveral
Ordinance No.08-2017
Page 8 of 14
(b)Lot Split Review and Processing. Every lot split shall be processed in the following manner:
(1) Application. An application form provided by the community development
department shall be completed and filed with the department, accompanied with the
following:
a. An application fee approved by the city council by resolution;
b. One or more paper copies of the proposed lot split as specified in the application
form and an electronic copy if requested by the department;
c. A statement indicating whether new streets,water, sewer, drainage structures or
other infrastructure are required off-site to provide sufficient access or municipal
services to the subject land; and
d. Legal descriptions and acreage of the two proposed lots or tracts of land and a
scaled drawing showing the intended division shall be prepared by a duly
licensed land surveyor registered in the state. If a lot or tract of land contains any
principal or accessory structures, a survey showing the structures on the lot or
tract of land shall accompany the application.
e. A title opinion or report of the affected land verifying the record owner(s) and
any mortgage holders.
(2)City Staff Review.
a. Upon receipt of a complete lot split application, the planning official shall
review and forward to the appropriate city reviewing staff a copy of same and
such other documents to enable the city reviewing staff to review the
application and either find the application to be sufficient or point out areas
that are inadequate or improper. The city attorney shall review the title opinion
or certification.
b. City reviewing staff shall return in writing all comments, recommendations
and questions to the applicant within 30 days of receipt of applicant's complete
application.
c. Should any comment or recommendation made by the city reviewing staff
require the applicant to revise its submittal,the city reviewing staff shall review
the revised submittal and return all comments,recommendations and questions
to the planning official, who shall then forward all documents to the applicant.
City of Cape Canaveral
Ordinance No.08-2017
Page 9 of 14
d. Upon receiving satisfactory reviews from all of the city reviewing staff, the
applicant shall submit revised copies of the lot split and other information
required by this section. The number of copies required shall be determined by
city staff. Upon receipt of all documents, the planning official shall schedule
the application for consideration by the planning and zoning board.
(3) Public hearings.
The planning and zoning board shall consider an application for lot split at a duly
noticed public hearing and shall vote to recommend approval or disapproval of the lot split
to the city council. Upon receipt of the planning and zoning board's recommendation,
the city council
shall, at a duly noticed public hearing, either approve, approve with conditions, or deny the proposed
lot split. Any approval of a lot split shall be by resolution of the city council.
(4) Review criteria. Before any lot split is recommended for approval by the planning
and zoning board or approved by the city council, the applicant must demonstrate,
and the planning and zoning board or city council must find, that the proposed lot
split meets the following criteria:
a. The proposed lot split shall in every respect meet the criteria
established elsewhere in this chapter and the city code for the category of
zoning and other relevant codes and applicable law under which the property
is zoned.
b. The application is consistent with the city's comprehensive plan.
c. The application does not create any lots, tracts of land or developments that
do not conform to the City Code.
d. The application provides for proper ingress and egress to all affected
properties through a public or approved private street or perpetual cross access
easements-.
e. The application is compatible and in harmony with the surrounding
neighborhood including with respect to the size of existing surrounding lots
and development trends in the neighborhood which have been previously
approved by the city council.
f. The application does not create burdensome congestion on the streets and
highways.
City of Cape Canaveral
Ordinance No.08-2017
Page 10 of 14
g. The application promotes the orderly layout and use of land.
h. The application provides for adequate light and air.
i. The application does not create overcrowding of land.
j. The application does not pose any significant harm to the adequate and
economical provision of water, sewer, and other public services.
(5) (g) Special notice for residential lot splits. Any proposed lot split of a residentially
zoned property shall require special notice be provided to adjacent property owners
at least 14 days prior to the planning and zoning board and city council hearings on
the proposed residential lot split. Said notices shall be provided by regular mail to
adjacent property owners within 500 feet of the property subject to the lot split
application, and shall include the address and legal description of the subject
property, and the date, time and location of the planning and zoning board and city
council hearings.Notice of the planning and zoning board and city council hearings
may be consolidated into one notice. Notices provided under this subsection are
hereby deemed to be courtesy notices only and the failure to provide or receive said
notices shall not be a basis of appealing any decision made under this section.
Applicants shall be solely responsible for the cost of the notices required by this
subsection.
(c) Recording. Upon approval of any lot split by resolution of the city council, the
resolution of the city council shall be duly recorded in the official public records of
Brevard County in and the lot split shall be reflected on the
appropriate city maps and documents.
(d) Restriction on additional lot split minor plat. No further division of an approved lot split is
permitted under this section, except through the plat review and approval
process procedures of this article.
Division 6.—Lot Line Adjustments
Sec. 98-67.—Lot Line Adjustments.
(a)Lot Line Adjustment. An adjustment of a lot line between contiguous lots or parcels(hereinafter
"lots" or"lot") which may be platted or unplatted and which are under separate ownership or the
same ownership shall be exempt from the platting requirements of this chapter if the lot line
adjustment does not create any additional lot and meets all of the following conditions.
City of Cape Canaveral
Ordinance No.08-2017
Page 11 of 14
(1) It is demonstrated that the request is to correct an engineering or surveying error in
a recorded plat or is to permit a boundary change between adjacent lots; and
(2) Both landowners whose lot lines are being adjusted provide written consent to the
lot line adjustment; and
(3) Instrument(s) evidencing the lot line adjustment shall be filed in the official records
of Brevard County, Florida, upon approval, and shall indicate that the result of the lot line
adjustment will meet the standards of,and conforms to,the requirements of the city code,including
the dimensional requirements of the zoning district and the subdivision in which the lots are
located. However, in cases of an existing nonconforming lot of record, the adjustment shall not
increase the nonconformity of the lot; and
(4) It is demonstrated that the lot line adjustment will not affect the development rights
or permitted density or intensity of use of the affected lots by providing the opportunity to create
a new lot(s) for resale or development or by making the density or intensity of any lot
nonconforming.
The aggregation of multiple lots under common ownership shall not be considered a lot line
adjustment and may be accomplished through a unity of title agreement with the city.
(b)Lot Line Adjustment Review and Processing. Every lot line adjustment shall be processed in
the following manner:
(1) Application. An application form provided by the community development
department shall be completed and filed with the department, accompanied with the following:
a. An application fee approved by the city council by resolution;
b. A narrative describing the reason(s) for the lot line adjustment and proposed
reconfiguration;
c. An affidavit by all property owners that they consent to the lot line adjustment and
resulting lot formation;
d. A survey of the original and proposed reconfigured lots prepared by a duly licensed
land surveyor registered in Florida. The survey shall also include:
i. The location of any principal or accessory buildings or structures and the
existing and proposed setbacks on each lot;
ii. The existing location of all utilities serving the lots; and
iii. The location of proposed access to the lots, including the location of
proposed access easements;
e. A title opinion or report of the affected land verifying the record owner(s) and any
mortgage holders;
f. Where required by the planning official, a joinder and consent from any affected
mortgage holders; and
g. Proposed deeds appropriate to accomplish any necessary property conveyances to
effectuate the lot line adjustment if the lots are under separate ownership.
(2) Review and Criteria. The planning official shall approve, approve with conditions, or
deny the lot line adjustment using the criteria established below:
a. The lot line adjustment shall not result in the creation of any additional lot;
City of Cape Canaveral
Ordinance No.08-2017
Page 12 of 14
b. The lots resulting after the lot line adjustment shall meet all dimensional requirements
specified for the applicable district as outlined in Chapter 110,Article VII of this Code,
except that in cases of an existing nonconforming lot of record, the adjustment shall
not increase the nonconformity of the lot;
c. The lot line adjustment shall not create a nonconforming setback for any existing
building or structure;
d. All lots modified by the lot line adjustment procedures shall have access in compliance
with the standards established by the City;
e. The lot line adjustment shall not cause lot lines to bisect on-site sewage disposal
systems, prevent adequate access to water supply, obstruct fire lanes or otherwise
interfere with the provision of utilities or emergency services;
f. The lot line adjustment shall not violate an applicable requirement or condition of a
previous land use action, subdivision, plat or site plan;
g. All lot line adjustments shall be recorded surveys consistent with the requirements of
applicable law. All lot lines being adjusted shall be surveyed, and newly established
lot corners shall be determined;
h. All conditions for a lot line adjustment as established in subsection (a) shall be
satisfied.
(c) Unity of Title. In most cases, the planning official shall require the affected property owners
to enter into a unity of title agreement with the city for purposes of creating the new developable
lots resulting from the lot line adjustment. The city manager shall be required to execute the unity
of title agreement on the city's behalf provided the application is in compliance with the provisions
of this section. The planning official may determine not to require a unity of title agreement for
insubstantial boundary changes.
(d) Recording. No lot line adjustment shall be recorded unless approved as provided in this
section. The lot line adjustment shall be recorded with the Clerk of Court within 12 months of
approval by the planning official, and one reproducible copy shall be furnished to the community
development department.
Section 3. 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.
Section 4. 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 5. 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.
City of Cape Canaveral
Ordinance No.08-2017
Page 13 of 14
Section 6. 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 18th day of
July, 2017.
Bob Hoog,Mayor
ATTEST: For Against
Mia Goforth, CMC Mike Brown
City Clerk
Robert Hoog
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
1St Reading: June 20, 2017
Advertisement: July 6, 2017
2nd Reading: July 18, 2017
City of Cape Canaveral
Ordinance No.08-2017
Page 14 of 14
City of Cape Canaveral
City Council Agenda Form
City Council Meeting Date: 7/18/2017
Item No. 7
Subject: Ordinance No. 09-2017; amending Section 110-470 of the Cape Canaveral Land
Development Code to allow fences and walls six (6) feet in height or less to be located within
fifteen (15) feet of the public right-of-way on a nonconforming corner lot of record; providing
for the repeal of prior inconsistent ordinances and resolutions, incorporation into the Code,
severability and an effective date, second reading.
Department: Community Development
Summary: Currently, the City Code includes minimum setbacks that regulate where a
structure can be located on a lot. Specifically, the Code establishes front, side and rear yard
setbacks which vary by the respective zoning district. The minimum side yard setback for all
corner lots, regardless of zoning, is 25 feet.
However, the City Code reduces the side setback to 15 feet for corner, nonconforming lots of
record in the R-2 and R-3 zoning districts. Sec. 110-191 of the City Code defines a Lot of
Record as "a lot which is part of a subdivision recorded in the official record books of Brevard
County, Florida, or a parcel of land described by metes and bounds legal description, the
description of which has been recorded in the official record books of Brevard County,Florida,
and complies with the subdivision of land regulations of the city." That same section of the
Code defines a nonconformity as "...any lot, structure, use of land or structure, or
characteristic of any use or structure which was lawful at the time of subdivision,construction,
or commencement,as the case may be,which over time no longer complies with the City Code
or other applicable law due to a subsequent change of the City Code or other law."
The majority of the nonconforming lots of record were platted prior to the City's incorporation
and have a typical dimension of 50' wide x 125' in depth (6,250 sq. ft.). The R-2 and R-3
zoning districts require a minimum of 7,500 square feet and the lot be a minimum of 75' wide.
This results in a large number of residential lots not meeting the City's minimum zoning
standards and therefore being unbuildable. To address this issue, Sec. 110-496 sets out certain
development rights for nonconforming lots of record:
Sec. 110-196. —Nonconforming lots of record.
In any zoning district in which single-family dwellings or duplexes are permitted,
a single-family dwelling or duplex, and customary accessory buildings may be
erected, expanded,or altered on any single lot of record,notwithstanding that such
lot fails to meet the requirements for area, width, and/or depth for the applicable
zoning district. This provision shall only apply where yard dimensions and
requirements other than area, width, and/or depth conform in all other respects
with the land development regulations for the applicable zoning district.
A related matter that continues to challenge owners of corner nonconforming lots of record is
the erection/placement of a fence. Sec. 110-470 of the City Code states that"In any residential
district, no fence or wall in any side or rear yard shall be over six feet in height or over four
City Council Meeting
Date: 7/18/2017
Item No. 7
Page 2 of 2
feet in height if within 25 feet of any public right-of-way, unless otherwise specified in this
section." This language limits property owners to the installation of a four foot high fence on
the side yard that fronts the City street. This situation results in a lack of privacy/security for
nonconforming corner lots.
The practical application of this language is that a structure/house(which can be up to 25 feet in
height) on a nonconforming corner lot can be located 15 feet from the side yard property line,
yet a six foot fence is required to be 25 feet from the same property line. The only option for a
property owner is to erect a four foot high fence 15 feet from the property line and stair stepping
it to 6 feet at 25 feet. The proposed Ordinance would allow a six foot fence to be located 15 feet
or more from the public right-of-way.
At its May 24, 2017 Regular Meeting, the Planning & Zoning Board recommended to City
Council the changes indicated in the proposed Ordinance.
The Notice of Public Hearing was advertised in Florida Today on July 6, 2017.
Submitting Department Director: David Dickey Date: 7-7-17
Attachment:
Ordinance No. 09-2017
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 Date: 7/6/17
The City Manager recommends that City Council take the following action:
Adopt Ordinance No. 09-2017 on second reading.
Approved by City Manager: David L. Greene Date: 7/6/17
ORDINANCE NO. 09-2017
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF CAPE CANAVERAL, BREVARD COUNTY, FLORIDA;
AMENDING SECTION 110-470 OF THE CAPE
CANAVERAL LAND DEVELOPMENT CODE TO ALLOW
FENCES AND WALLS SIX (6) FEET IN HEIGHT OR LESS
TO BE LOCATED WITHIN FIFTEEN (15) FEET OF THE
PUBLIC RIGHT-OF-WAY ON A NONCONFORMING
CORNER LOT OF RECORD; PROVIDING FOR THE
REPEAL OF PRIOR INCONSISTENT ORDINANCES AND
RESOLUTIONS, INCORPORATION INTO THE CODE,
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, Sections 110-297, 110-317 and 110-373 of the City of Cape Canaveral Land
Development Code, respectively applicable to the R-2, R-3 and Townhouse zoning districts,
establish the minimum side yard setback for corner lots of 25 feet, but reduce such side yard
setbacks for nonconforming corner lots of record to 15 feet; and
WHEREAS, Section 110-470(a)(1) of the City of Cape Canaveral Land Development
Code restricts the placement of fences and walls,providing that in any residential district,no fence
or wall in any side yard shall be over four feet in height if within 25 feet of any public right-of-
way; and
WHEREAS, the City Council desires to provide an exception to the restriction on the
placement of fences and walls above four feet tall on nonconforming corner lots of record to reflect
and be consistent with the applicable 15-foot setback; 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):
City of Cape Canaveral
Ordinance No.09-2017
Page 1 of 4
Chapter 110 Zoning
* * *
ARTICLE IX.— SUPPLEMENTARY DISTRICT REGULATIONS
DIVISION 1.— GENERALLY
* * *
Sec. 110-470.—Fences,walls and hedges.
(a) Fences and walls may be permitted in any yard, except as specified in section 110-469,
provided the following restrictions shall apply:
(1) In any residential district, no fence or wall in any side or rear yard shall be over six feet
in height or over four feet in height if within 25 feet of any public right-of-way, unless
otherwise specified in this section;
(2) In any residential district where property abuts a public beach access parking area, the
fence or wall in a side, rear or front yard which abuts the public parking area shall not
exceed six feet in height;
(3) In any commercial or industrial district, no fence or wall in any side or rear yard shall be
over eight feet in height or over four feet in height if within 25 feet of any public right-
of-way. When the boundary of a commercial or industrial zoning district abuts any
residential zoning district, and a fence or wall is used to meet the requirements of section
110-566,the fence or wall shall have a minimum height of six feet and a maximum height
of eight feet;
(4) No wall shall be built along unimproved property boundaries until and unless the owner
has obtained and paid for a building permit for the principal structure;
(5) All concrete boundary walls are to be finished by stuccoing or painting in neutral colors
at the time they are constructed. All fences shall be constructed or installed such that the
finished side faces abutting properties or public rights-of-way. If chain-link is used for
fencing, the same must have a top rail and the rail and chain-link must be coated in a
rubber or vinyl material; and
(6) No words or symbols, other than street addresses and names of occupants in residential
districts, shall be permitted on exterior boundary fences or walls, except a small sign,not
to exceed 32 square inches, may be attached identifying the fence manufacturer or
installer.If there are such nonallowed words or symbols,they shall be covered or removed
within seven days of notification to the owner by the city.
(7) Notwithstanding Section 110-470(a)(1) above, in the R-2, R-3 and Townhouse districts
on nonconforming corner lots of record, fences and walls may be up to six feet in height
if constructed or installed in the side yard and are 15 feet or more from the public right-
of-way.
(b) Hedges may be permitted in any yard, except as specified in section 110-469 of this code,
provided the following restrictions shall apply:
City of Cape Canaveral
Ordinance No.09-2017
Page 2 of 4
(1) Any hedge planted to satisfy the visual screening requirements provided within section
110-566 of this Code shall have a minimum height at time of planting of three feet and
will be required to reach a minimum height of six feet,unless otherwise provided by this
chapter, and a density of at least 80 percent opacity within two years of planting;
(2) No hedge planted to satisfy the visual screening requirements of section 110-566 of this
Code and located adjacent to a property boundary shall exceed four feet in height if within
25 feet of any public right-of-way;
(3) Any hedge located adjacent to any public right-of-way, sidewalk or easement utilized for
public purposes shall be set back a minimum of three feet from the property line or
easement boundary to ensure such hedge will not encroach into or impede the use of such
public right-of-way, sidewalk or easement;
(4) Any hedge planted or otherwise established in accordance with this chapter shall be
comprised of a desirable species of vegetation as defined in chapter 102 of this Code, as
may be amended from time to time; and
(5) All hedges shall be maintained in accordance with Chapter 34 of this code and all other
applicable statues, ordinances, and regulations affecting landscaping and vegetation.
* * *
Section 3. 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.
Section 4. 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 5. 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 6. 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 18th day of July,2017.
[Signature page follows]
City of Cape Canaveral
Ordinance No.09-2017
Page 3 of 4
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
1st Reading: June 20, 2017
Advertisement: July 6, 2017
2nd Reading: July 18, 2017
City of Cape Canaveral
Ordinance No.09-2017
Page 4 of 4
City of Cape Canaveral
City Council Agenda Form
[city seal] City Council Meeting Date: 7/18/2017
Item No. 8
Subject: Ordinance No. 10-2017; amending the City of Cape Canaveral Comprehensive Plan
Coastal Management Element to bring it into conformance with F.S. Chapter 2015-69, to
include development and redevelopment principles, strategies and engineering solutions that
reduce the flood risk in coastal areas; adopted by the City Council consistent with this
Ordinance; providing for the repeal of prior inconsistent ordinances and resolutions,
incorporation into the Comprehensive Plan, an effective date and legal status of the Plan
amendments, first reading.
Department: Community Development
Summary:As required by Florida law,local governments in coastal areas must include a coastal
management element in comprehensive plans.The element must set forth principles,guidelines,
standards and strategies to reduce the risk of flooding. Section 163.3178, F.S., requires coastal
management to be based on studies,surveys and data and to contain a redevelopment component
which outlines the principles which shall be used to eliminate inappropriate and unsafe
development in coastal areas.
Effective July 1, 2015, a new law (chapter 2015-69) went into effect that amends the
requirements of the City's Coastal Management (CM) Element. Under the new law, the CM
Element must now contain six (6) specific new requirements (new policy language to address
requirement is shown in parenthesizes):
1. Include development and redevelopment principles, strategies and engineering solutions
that reduce the flood risk in coastal areas which results from high-tide events, storm
surge, flash floods, stormwater runoff and the related impacts of sea-level rise(see CM-
1.13.1).
2. Encourage the use of best practices development and redevelopment principles,
strategies and engineering solutions that will result in the removal of coastal real property
from flood zone designations established by the Federal Emergency Management
Agency(see CM-1.13.1 & 5).
3. Identify site development techniques and best practices that may reduce losses due to
flooding and claims made under flood insurance policies issued in Florida (see CM-
1.13.1).
4. Be consistent with, or more stringent than,the flood-resistant construction requirements
in the Florida Building Code and applicable flood plain management regulations set forth
in 44 C.F.R. part 60 (see CM-1.13.2).
5. Require that any construction activities seaward of the coastal construction control lines
established pursuant to Section 161.053 be consistent with Chapter 161 (see CM-1.13.3).
6. Encourage local governments to participate in the National Flood Insurance Program
Community Rating System administered by the Federal Emergency Management
Agency to achieve flood insurance premium discounts for their residents (see CM-
1.13.4 & 5).
The CM Element must now include"development and redevelopment principles, strategies and
engineering solutions that reduce the flood risk in coastal areas which results from high-tide
events, storm surge, flash floods, stormwater runoff and related impacts of sea level rise."The
City Council Meeting
Date: 7/18/2017
Item No. 8
Page 2 of 2
reference to sea-level rise, as one of the causes of flood risk, signals an important new challenge
in the long-term resilience of Florida's communities.
As discussed above,Florida Statute establishes minimum requirements local governments must
now include in CM Elements.However,the State is encouraging communities to take additional
steps to develop strategies to become more resilient to the impacts of rising seas over time.These
efforts, collectively known as adaptation planning, are steps a community takes to address
current and future coastal flooding.
Adaptation planning is rooted in data generated from an analysis of the City's key assets
(economic, infrastructure, natural) and how they may be impacted by various sea level rise
scenarios. Models used in the analysis have been designed by the US Army Corps of Engineers,
University of Florida and the National Oceanic and Atmospheric Administration.
The attached Ordinance addresses the six new requirements required by Chapter 2015-69 and
also includes policies that indicate the City's willingness to pursue adaptation planning
strategies over the next few years. The first step will be to conduct a vulnerability analysis as
described in the preceding paragraph.
As the proposed Ordinance revises Comprehensive Plan text,it will be transmitted to the Florida
Department of Economic Opportunity for its review. Once reviewed by the appropriate State
agencies,it will be sent back to the City(with any suggested revisions) for adoption.
At its June 28, 2017 Regular Meeting, the Planning & Zoning Board recommended to City
Council the changes indicated in the proposed Ordinance.
The Notice of Hearing for First Reading was advertised on June 16, 2017.
Submitting Department Director: David Dickey Date: 7-11-17
Attachment:
Ordinance No. 10-2017 with Attachment 1 —City of Cape Canaveral Comprehensive Plan
Coastal Management Element
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 Date: 7/10/17
The City Manager recommends that City Council take the following action:
Approve Ordinance No. 10-2017 on first reading.
Approved by City Manager: David L. Greene Date: 7/11/17
ORDINANCE NO. 10-2017
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF CAPE CANAVERAL, BREVARD COUNTY, FLORIDA,
AMENDING THE CITY OF CAPE CANAVERAL
COMPREHENSIVE PLAN COASTAL MANAGEMENT
ELEMENT TO BRING IT INTO CONFORMANCE WITH
F.S. CHAPTER 2015-69, TO INCLUDE DEVELOPMENT
AND REDEVELOPMENT PRINCIPLES, STRATEGIES
AND ENGINEERING SOLUTIONS THAT REDUCE THE
FLOOD RISK IN COASTAL AREAS; ADOPTED BY THE
CITY COUNCIL CONSISTENT WITH THIS ORDINANCE;
PROVIDING FOR THE REPEAL OF PRIOR
INCONSISTENT ORDINANCES AND RESOLUTIONS,
SEVERABILITY, INCORPORATION INTO THE
COMPREHENSIVE PLAN, AN EFFECTIVE DATE AND
LEGAL STATUS OF THE PLAN AMENDMENTS.
WHEREAS, section 163.3161 et. seq.,Florida Statutes(2011)established the Community
Planning Act, which was formerly known as the Local Government Comprehensive Planning and
Land Development Regulation Act; and
WHEREAS, the Community Planning Act requires each municipality in the State of
Florida to prepare, adopt, and update a Comprehensive Plan; and
WHEREAS, Florida has more than 1,200 miles of coastline, almost 4,500 square miles
of estuaries and bays and more than 6,700 square miles of other coastal water. The majority of
the State's residents live within 60 miles of coast. Florida is the single most vulnerable of the 50
states to higher tides associated with sea level rise ; and
WHEREAS, Effective July 1, 2015, the Florida Legislature passed a new law (chapter
2015-69, Laws of Florida, codified at S. 163.3178, F.S.) that amends the requirements of the
City's Comprehensive Plan, Coastal Management Element(Element); and
WHEREAS, Under the new law, the Element must now contain six (6) specific new
requirements. Notably, that the Element must now include development and redevelopment
principles, strategies, and engineering solutions that reduce the flood risk in coastal areas which
results from high-tide events, storm surge, flash floods, stormwater runoff and related impacts of
sea level rise; and
City of Cape Canaveral
Ordinance No. 10-2017
Page 1 of 5
WHEREAS, the City Council also finds that it is an important government interest to
protect the interests of public and private property owners within the City limits; and
WHEREAS, the Local Planning Agency of the City of Cape Canaveral held a duly
noticed public hearing on June 28, 2017 in accordance with the procedures in Chapter 163, Part
II, Florida Statutes, on the proposed Comprehensive Plan amendment and considered findings
and advice of staff, citizens and all interested parties submitting written and oral comments and
has recommended adoption to the City Council; and
WHEREAS, the Local Planning Agency recommended the City Council transmit the
subject comprehensive plan text amendment to the Florida Department of Economic Opportunity
for its review and comment; and
WHEREAS, the City Council hereby finds that this Ordinance is in the best interests of
the public health, safety, and welfare of the citizens of Cape Canaveral, Florida; and
NOW, THEREFORE, THE CITY OF CAPE CANAVERAL HEREBY ORDAINS
AS FOLLOWS:
Section 1. Recitals. The foregoing recitals are true and correct and are fully incorporated
herein by this reference.
Section 2. Authority. This Ordinance is adopted in compliance with, and pursuant to, the
Community Planning Act, Sections 163.3161 et. seq., Florida Statutes.
Section 3. Purpose and Intent. The purpose and intent of this Ordinance is to adopt
comprehensive plan text amendments amending the text of the Coastal Management Element of
the City of Cape Canaveral Comprehensive Plan.
Section 4. Adoption of Comprehensive Plan Text Amendments. The City Council of the
City of Cape Canaveral hereby adopts the following amendments to the City of Cape Canaveral
Comprehensive Plan, Coastal Management Element, attached hereto as "Attachment
1" (underlined type in Attachment 1 indicates text being added to the Comprehensive Plan, and
strikeout type indicates text being deleted from the Comprehensive Plan.
Section 5. 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. 10-2017
Page 2 of 5
Section 6. Incorporation Into Comprehensive Plan. Upon the effective date of the
Comprehensive Plan amendments adopted by this Ordinance, said amendments shall be
incorporated into the City of Cape Canaveral Comprehensive Plan 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 Comprehensive Plan may be freely made.
Section 7. 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 8. Effective Date and Legal Status of the Plan Amendment. The effective date of
the Comprehensive Plan Amendment adopted by this Ordinance shall be thirty-one (31) days
after the state land planning agency notifies the City that the plan amendment package is
complete pursuant to section 163.3184(3)(c), Florida Statutes. If the plan amendment is timely
challenged,the plan amendment shall not become effective until the state land planning agency
or the Administration Commission enters a final order determining the adopted amendment to
be in compliance. No development orders, development permits, or land use dependent on this
plan amendment may be issued or commenced before it has become effective. After and from
the effective date of this plan amendment, the Comprehensive Plan Amendment set forth
herein shall amend the City of Cape Canaveral Comprehensive Plan and become a part of that
plan and the plan amendment shall have the legal status of the City of Cape Canaveral
Comprehensive Plan, as amended.
[Signature Page Follows]
City of Cape Canaveral
Ordinance No. 10-2017
Page 3 of 5
Bob Hoog, Mayor
ATTEST: For Against
Mike Brown
Mia Goforth, CMC
City Clerk Robert Hoog
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
1st Advertisement: June 16, 2017
1st Reading July 18, 2017
2nd Advertisement: , 2017
2nd Reading: , 2017
City of Cape Canaveral
Ordinance No. 10-2017
Page 4 of 5
ATTACHMENT 1
CITY OF CAPE CANAVERAL
COMPREHENSIVE PLAN
COASTAL MANAGEMENT ELEMENT
City of Cape Canaveral
Ordinance No. 10-2017
Page 5 of 5
Ordinance No. 10-2017
Attachment 1
City of Cape Canaveral
Comprehensive Plan
COASTAL MANAGEMENT ELEMENT
GOALS, OBJECTIVES and POLICIES
Ordinance No. 10-2017
Attachment 1
GOAL CM-1
Provide for the preservation and conservation of the City's coastal resources so that the
economic, social and/or aesthetic value which these resources provide to the community
are not destroyed and are available to future generations.
OBJECTIVE CM-1.1
The City shall protect, conserve, or enhance the two remaining coastal wetlands, living
marine resources,coastal barriers,and wildlife habitat. The measurement of this objective
is the extent to which these resources are protected,conserved or enhanced and the degree
to which the following Policies are implemented.
POLICY CM-1.1.1
The City shall develop guidelines to protect, conserve, and, where possible, seek
restoration of the vital areas of the coastal zone,including,as appropriate,wetlands,water
quality,water quantity,wildlife habitat, living marine resources (such as manatees), and
beach and dune systems. The City shall promote protection of environmentally sensitive
areas,beach preservation and tree protection.
POLICY CM-1.1.2
The City shall provide for development which is consistent with resource tolerance,
carrying capacity and the ability of the City to efficiently provide and maintain necessary
services as set out in other Elements.
POLICY CM-1.1.3
The City shall continue to work with County, State and Federal governments in
maintenance, restoration, and enhancement of the overall quality of the coastal
environment,including but not limited to,its amenities and aesthetic values.
POLICY CM-1.1.4
The City shall work with County, State and Federal governments in the orderly and
balanced utilization and preservation, consistent with sound conservation principles, of
all living and non-living coastal zone resources.
POLICY CM-1.1.5
The City shall identify and implement methods of avoiding irreversible and irretrievable
commitments of coastal zone resources.
City of Cape Canaveral Comprehensive Plan June 28,2017
Coastal Management Element Page 1
Ordinance No. 10-2017
Attachment 1
POLICY CM-1.1.6
In cooperation with state and federal regulatory agencies and private developers,the City
shall monitor development in those areas with overriding environmental limitations to
development.
POLICY CM-1.1.7
The City shall make sure that it has an effective ordinance for the control of noxious exotic
plants in the coastal zone,including the following noxious species:
Causarina cunninghamians (Beefwood)
Causarina glauca (Scaley-bark Beefwood)
Causarina equisetifolia (Australian Pine)
Dioscorea bulbif era (Devil's Potato)
Melaleuca quinquenervis (Punk Tree or Cajeput)
Rincinus communis (Castor Bean)
Sansevieria hyuacinthoides (African Bowstring)
Schinus terebinthifolius (Brazilian Pepper)
OBJECTIVE CM-1.2
The City shall take action in an effort to maintain or improve estuarine environmental
quality. The measurement of this Objective is the quality of the estuarine environment
and the degree to which the following Policies are implemented.
POLICY CM-1.2.1
The City shall work toward limiting the specific and cumulative impacts of development
and redevelopment upon wetlands, water quality, water quantity, wildlife habitat, and
living marine resources,and beach and dune systems.
POLICY CM-1.2.2
The City shall enforce its ordinances which minimize man-induced sedimentation,
excessive freshwater runoff,and other non-point pollution sources.
City of Cape Canaveral Comprehensive Plan June 28,2017
Coastal Management Element Page 2
Ordinance No. 10-2017
Attachment 1
POLICY CM-1.2.3
The City shall maintain and enforce its Stormwater Management Ordinance in an effort
to maintain or reduce the current level of stormwater runoff.
OBJECTIVE CM-1.3
The City shall maintain criteria and/or standards for prioritizing shoreline uses, giving
priority to water-dependent uses, particularly those consistent with existing shoreline
uses. The measurement of this Objective is the development and adoption of such criteria
and/or standards.
POLICY CM-1.3.1
The City shall establish priorities for shoreline uses, providing for siting of water-
dependent and water-related uses; establish performance standards for shoreline
development; and establish criteria for marina siting which address: land use
compatibility, availability of upland support services, existing protective status or
ownership, hurricane contingency planning, protection of water quality, water depth,
environmental disruptions and mitigation actions, availability for public use, and
economic need and feasibility.
POLICY CM-1.3.2
The City shall review, update (if necessary) and enforce hazard mitigation regulations
relating to building practices; floodplain use; beach and dune alteration; stormwater
management; sanitary sewer and septic tanks;and land use;and the City shall adopt the
recommendations of the hazard mitigation annex of the local peacetime emergency plan
and applicable existing interagency hazard mitigation reports--all with the underlying
rationale of reducing the exposure of human life and property to natural hazards.
POLICY CM-1.3.3
The City shall adopt regulations through the Land Development Code to enhance current
standards to manage shoreline erosion.
OBJECTIVE CM-1.4
The City shall develop measures for protection of beaches and dunes, establish
construction standards which minimize the impacts of man-made structures on beach and
dune systems, and work toward restoration of altered beaches and dunes. The
measurement of this Objective is the development of such measures and the extent to
which beaches and dunes are protected and/or restored and the development of
standards to minimize the impacts of man-made structures on the beach and dune
systems plus the degree to which the following Policies are implemented.
POLICY CM-1.4.1
The City shall closely monitor beachfront development to insure to the greatest extent
possible that the dune system is preserved as a natural buffer to storm surge.
City of Cape Canaveral Comprehensive Plan June 28,2017
Coastal Management Element Page 3
Ordinance No. 10-2017
Attachment 1
POLICY CM-1.4.2
In areas where beaches and dunes are being eroded,the City shall encourage and support
a multi-jurisdictional approach to stabilization and restoration projects, preferably
utilizing native vegetation as the stabilizing medium.
POLICY CM-1.4.3
The City shall continue to enforce the coastal construction control line law and shall assure
that projects within its area of jurisdiction abide by the setback requirements.
POLICY CM-1.4.4
No new construction shall be allowed that threatens the stability of either the dune
systems or the beach itself. Land development projects in beach areas east of S.R.- A1A
should provide for dune stabilization and preservation. In all cases, existing dune
vegetation should be preserved to the maximum extent feasible.
POLICY CM-1.4.5:
The City shall continue to prohibit motorized vehicles from operating on the dune system
except in emergency situations.
POLICY CM-1.4.6
The City should continue to work with the Canaveral Port Authority to actively
mitigate impacts of Port operations on the City's beaches.
OBJECTIVE CM-1.5
The City shall limit public expenditures that subsidize development permitted in coastal
high-hazard areas, except for restoration or enhancement of natural resources. The
measurement of this Objective is the extent to which public expenditures are limited in
coastal high-hazard areas except in the case of restoration or enhancement of natural
resources and the degree to which the following Policy is implemented.
POLICY CM-1.5.1
The City shall incorporate a provision to implement the above Objective in its Land
Development Regulations.
City of Cape Canaveral Comprehensive Plan June 28,2017
Coastal Management Element Page 4
Ordinance No. 10-2017
Attachment 1
OBJECTIVE CM-1.6
The City shall direct population concentrations away from known or predicted coastal
high-hazard areas. The measurement of this Objective is the extent to which population
concentrations are directed away from the coastal high-hazard area and the degree to
which the following Policy is implemented.
POLICY CM-1.6.1
Through the Future Land Use Plan and the City's zoning ordinance, the City shall
discourage development in the coastal high-hazard areas; however, relocation or
replacement of existing infrastructure away from these areas shall only be required in an
emergency situation where it is economically feasible to do so. The Coastal High Hazard
Area(CHHA)is defined as the area below the elevation of the category 1 storm surge line
as established by a Sea, Lake, and Overland Surges from Hurricanes (SLOSH)
computerized storm surge model.
OBJECTIVE CM-1.7
The City shall work toward reducing its local hurricane evacuation times based upon the
Brevard County's Comprehensive Emergency Management Plan. The measurement of
this Objective is the length of time required for evacuation in the event of a major storm
requiring evacuation plus the degree to which the following Policies are implemented.
POLICY CM-1.7.1
The City shall stress to the public the importance of early and orderly evacuation in the
event of a major storm requiring such evacuation.
POLICY CM-1.7.2
The City shall maintain and update,as required, its list of persons requiring help during
evacuation.
POLICY CM-1.7.3
The City shall limit development if it would unreasonably increase hurricane evacuation
times.
POLICY CM-1.7.4
The City shall coordinate hurricane evacuation procedures and disaster mitigation with
Brevard County and neighboring communities.
OBJECTIVE CM-1.8
The City shall prepare a post-disaster redevelopment plan which will reduce the exposure
of human life and public and private property to natural hazards. The measurement of
this Objective is the development of a post-disaster redevelopment plan plus the degree
to which the following Policies are implemented.
City of Cape Canaveral Comprehensive Plan June 28,2017
Coastal Management Element Page 5
Ordinance No. 10-2017
Attachment 1
POLICY CM-1.8.1
The City shall establish a mechanism for obtaining input on this matter from affected
property-owners, the general public, public officials, and experts which will involve
meetings among these persons and a means to develop recommendations leading to the
preparation of the post-disaster redevelopment plan.
POLICY CM-1.8.2
The City shall use the following as the guiding principle for its post-disaster
redevelopment plan: Reducing the exposure of human life and property to natural
hazards.
POLICY CM-1.8.3
The City's post-disaster redevelopment plan shall include policies to:distinguish between
short-term and long-term reconstruction needs; facilitate the removal, relocation or
structural modification of damaged infrastructure and structures;limit redevelopment in
areas of repeated damage;and facilitate the adoption of recommendations of interagency
hazard mitigation reports into the Comprehensive Plan.
OBJECTIVE CM-1.9
The City shall strive to increase the amount of public access to the beach or shoreline
consistent with estimated public need. The measurement of this Objective is the number
of additional public access points to the beach and/or shoreline of the Banana River plus
the degree to which the following Policies are implemented.
POLICY CM-1.9.1
The City shall evaluate the number,type, and location of existing shoreline access points
to determine if more are needed and how they will be financed.
POLICY CM-1.9.2
The City shall continue to encourage public access at the time of development of the areas
along the beach.
POLICY CM-1.9.3
The City shall enforce public access to beaches renourished at public expense.
POLICY CM-1.9.4
The City shall continue to enforce the public access requirements of the Coastal Zone
Protection Act of 1985.
POLICY CM-1.9.5
The City shall provide transportation or parking facilities for beach and river shoreline
access,to the extent feasible.
City of Cape Canaveral Comprehensive Plan June 28,2017
Coastal Management Element Page 6
Ordinance No. 10-2017
Attachment 1
OBJECTIVE CM-1.10
The City shall provide for protection,preservation,or sensitive reuse of historic resources,
as these are identified within the City. The measurement of this Objective is the extent to
which historic resources are protected,preserved or reused in a sensitive manner and the
degree to which the following Policies are implemented.
POLICY CM-1.10.1
The City shall pursue sources to fund an archeological survey to determine historically
significant sites in need of protection.
POLICY CM-1.10.2
As historic resources are identified,the City shall develop criteria for protection of historic
resources, including establishment of performance standards for development and
sensitive reuse.
POLICY CM-1.10.3
The City shall maintain a list of historic resource sites to be used to cross-check against
proposed development.
OBJECTIVE CM-1.11
The City shall establish level of service standards, areas of service and phasing of
infrastructure in the coastal area. The measurement of this Objective is the availability of
infrastructure when needed, plus the degree to which the following Policies are
implemented.
POLICY CM-1.11.1
The City shall require developers to finance and install water and sewer lines, drainage
facilities and local streets to serve development as it occurs, consistent with concurrency
management.
POLICY CM-1.11.2
The City shall ensure that required infrastructure is available to serve the development in
the coastal area at the densities proposed by the Future Land Use Plan, consistent with
coastal resource protection and safe evacuation, by assuring that funding for
infrastructure will be phased to coincide with the demands generated by development or
redevelopment.
POLICY CM-1.11.3
Though no area of the City presently requires redevelopment, if and when such
conditions emerge, the City shall identify the redevelopment area and work towards
eliminating any unsafe conditions and inappropriate uses therein.
City of Cape Canaveral Comprehensive Plan June 28,2017
Coastal Management Element Page 7
Ordinance No. 10-2017
Attachment 1
OBJECTIVE CM-1.12
The City shall work with County, State and Federal governments in protecting the
environment in the coastal zone. The measurement of this Objective is the degree to which
such collaboration takes place, including the extent to which the following Policy is
implemented.
POLICY CM-1.12.1
The City shall coordinate with area resource protection plans such as aquatic preserve
management plans, and the Surface Water Improvement and Management (SWIM)
program administered by the St.Johns River Water Management District.
POLICY CM-1.12.2
The City will ensure that any stormwater management,aquifer recharge,and water reuse
policies and projects are consistent with the Goals of the SJRWMD's Indian River Lagoon
Basin program, including its Comprehensive Conservation Management Plan, to restore
and protect the Indian River Lagoon through the enhancement of water quality and
natural systems in the basin.
POLICY CM-1.12.3
The City will ensure that any new regulation to protect water resources is consistent with
SJRWMD's environmental resource permitting and consumptive permitting use
permitting rules.
POLICY CM-1.12.4
The City will promote and encourage the use of low impact development techniques(such
as the Florida Water Stars"^ program, which is a point based, new home certification
program for water-efficient developments,similar to the Federal Energy Star program).
OBJECTIVE CM-1.13
The City shall eliminate unsafe and inappropriate development and mitigate the flood
risk to existing and planned development in areas of high risk of flooding due to storm
surge,high tide events,flash flood, stormwater runoff and sea level rise.
POLICY CM-1.13.1
The City shall require that new development and redevelopment in areas that are of high
risk of flooding due to storm surge, high tide events, flash flood, stormwater runoff and
sea level rise incorporate building design specifications, engineering solutions, site
development techniques and management practices that reduce risk and losses due to
flooding.
City of Cape Canaveral Comprehensive Plan June 28,2017
Coastal Management Element Page 8
Ordinance No. 10-2017
Attachment 1
POLICY CM-1.13.2
The City shall require that new development and redevelopment in areas that are of high
risk of flooding due to storm surge, high tide events, flash flood, stormwater runoff and
sea level rise meets or exceed the flood-resistant construction requirements of the Florida
Building Code.
POLICYCM-1.13.3
The City shall require that construction activities seaward of the Coastal
Construction Control Line established pursuant to Section 161.053, F.S., be consistent
with Chapter 161,F.S.
POLICY CM-1.13.4
The City shall continue to participate in and comply with National Flood Insurance
Program (NFIP) regulations.
POLICY CM-1.13.5
The City shall continue to participate in the Community Rating System (CRS) Program,
which involves managing and documenting activities that the City performs to gain
points under FEMA's CRS Program.
OBJECTIVE CM-1.14
The City shall adopt and implement strategies which increase community resiliency and
protect property, infrastructure and cultural and natural resources from the impacts of
climate change, including sea level rise, changes in rainfall patterns and extreme
weather events.
POLICY CM-1.14.1
The City shall collaborate with Brevard County to increase regional resilience by sharing
technical expertise, participating in annual summits, assessing local vulnerabilities,
advancing agreed-upon mitigation and adaptation strategies and developing joint state
and federal legislation policies and programs.
POLICY CM-1.14.2
The City shall collaborate with the East Central Florida Reginal Planning Council and
other appropriate governmental agencies in the preparation of a Vulnerability Analysis
to determine the feasibility of establishing Adaptation Action Areas as provided by
Section 163.3177(6)(g)(10), Florida Statutes, to identify areas vulnerable to coastal storm
surge and sea level rise impacts.
POLICY CM-1.14-3
The City shall coordinate with Brevard County, other local governments, federal, state
and regional agencies and private property owners to develop initiatives and goals to
City of Cape Canaveral Comprehensive Plan June 28,2017
Coastal Management Element Page 9
Ordinance No. 10-2017
Attachment 1
address sea level rise, to include participation in the East Central Florida Regional
Planning Council's preparation of a Regional Resiliency Plan.
POLICY CM-1.14.4
The City shall promote the use of mitigation strategies to increase energy efficiency and
conservation and to reduce greenhouse gas emissions. The mitigation strategies may
include, but are not limited to, the adoption of Comprehensive Plan policies or land
development regulations pertaining to land use and transportation strategies such as
encouraging compact residential development, incentives for mixed use and
redevelopment projects that maximize internal trip capture, clustering residential
densities along transit routes, improving access to transit and non-motorized movement,
requiring interconnectivity among adjoining parcels of land and incentives for green
building methods.
City of Cape Canaveral Comprehensive Plan June 28,2017
Coastal Management Element Page 10
City of Cape Canaveral
City Council Agenda Form
City Council Meeting Date: 7/18/2017
Item No. 9
Subject: Ordinance No. 11-2017;prohibiting Medical Marijuana Treatment Center Dispensing
Facilities from locating within the City; adopting other conforming amendments to the City
Code to effectuate the prohibition of Medical Marijuana Treatment Center Dispensing Facilities
within the City; providing for the repeal of prior inconsistent ordinances and resolutions;
incorporation into the Code; severability and an effective date, first reading.
Department: Community Development
Summary: On September 16, 2014, the City Council adopted Ordinance No. 09-2014 to
establish operational and locational criteria related to Medical Marijuana Treatment Centers.
The action anticipated that the voters would approve a proposed constitutional amendment
known as The Florida Medical Marijuana Initiative(Amendment 2).
Amendment 2 was approved by 71 percent of the electorate. It became effective on January 3,
2017 and required laws be in place by July 3, 2017 for how patients can qualify and receive
medical marijuana. Governor Rick Scott signed legislation(SB 8-A),which was crafted during
the Legislative Special Session, on June 23, 2017 to implement Amendment 2.
Highlights of the legislation include:
• Exempts marijuana and marijuana delivery devices from sales and use tax.
• Establishes procedures for physicians to issue certifications to patients who have
qualifying medical conditions.
• Allows marijuana edibles and vaping,but prohibits smoking.
• Eliminates a 90 day waiting period for a patient to receive medical marijuana.
• Establishes qualifications to become a caregiver to assist qualified patients.
Another notable provision of the newly signed law is that it contains specific preemption
provisions regarding dispensary facilities. Specifically, SB 8-A provides that a municipality
may, by ordinance, ban medical marijuana treatment center dispensing facilities from being
located within its boundaries. However, if a municipality does not ban dispensing facilities, it
may not place specific limits either on the number of dispensing facilities that may locate in the
municipality and, further, may not enact ordinances for permitting or determining the location
of dispensing facilities which are more restrictive than its ordinances permitting or determining
the locations for pharmacies.
In short, local governments can either completely ban dispensing facilities or allow them to
locate anywhere that a pharmacy can. With respect to Cape Canaveral, this would allow a
dispensing facility to be located anywhere within the Astronaut Boulevard corridor as well as
a large percentage of the N. Atlantic Avenue corridor. Further,the City would not be allowed
to restrict the number of dispensing facilities or establish spacing standards from schools,
churches, daycares, parks, etc.
This is in stark contrast to the City's current rules that treat a medical marijuana treatment center
similar to a pain management clinic in that these facilities are limited to property zoned Cl, C2
or M1 as a Special Exception. The City also established separation requirements of no less than
City Council Meeting
Date: 7/18/2017
Item No. 9
Page 2 of 2
one-half-mile distance between each pain management clinic and/or medical marijuana
treatment center—regardless of the municipal boundaries of the City.Treatment centers are also
required to be spaced a minimum of 1,000 feet from any public or private school, church or
daycare facility.
To maintain land use control over dispensing facilities, the proposed Ordinance bans these
facilities from being located within City limits. Notable provisions include:
1. The term "Medical Marijuana Treatment Center" is redefined to "Medical Marijuana
Treatment Center Dispensing Facility"in Sec. 110-1 to make it consistent with the newly
enacted law.
2. A Medical Marijuana Treatment Center has been removed from the list of Special
Exceptions within the C-1, C-2 and M-1 zoning districts (Article VII, Division 5).
3. References to"Medical Marijuana Treatment Centers have been removed from Sec. 110-
489 (Supplementary District Regulations).
The City's Planning & Zoning Board recommended approval of Ordinance No. 11-2017 at its
July 5, 2017 meeting.
The Notice of Public Hearing was advertised in Florida Today on June 30, 2017.
Submitting Department Director: David Dickey Date: 7-10-17
Attachment:
Ordinance No. 11-2017
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 Date: 7/10/17
The City Manager recommends that City Council take the following action:
Approve Ordinance No. 11-2017 on first reading.
Approved by City Manager: David L. Greene Date: 7/10/17
ORDINANCE NO. 11-2017
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF CAPE CANAVERAL, BREVARD COUNTY, FLORIDA;
PROHIBITING MEDICAL MARIJUANA TREATMENT
CENTER DISPENSING FACILITIES FROM LOCATING
WITHIN THE CITY; ADOPTING OTHER CONFORMING
AMENDMENTS TO THE CITY CODE TO EFFECTUATE
THE PROHIBITION OF MEDICAL MARIJUANA
TREATMENT CENTER DISPENSING FACILITIES
WITHIN THE CITY; PROVIDING FOR THE REPEAL OF
PRIOR INCONSISTENT ORDINANCES AND
RESOLUTIONS; INCORPORATION INTO THE CODE;
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, currently,the City regulates medical marijuana treatment centers in a similar
manner as pain management clinics,which are permitted by special exception in the C-1, C-2 and
M-1 zoning districts, subject to the general conditions for special exceptions and additional
requirements established in Sec. 110-489 of the Land Development Code; and
WHEREAS, the City's current regulations were adopted in 2014, prior to Florida voters
approving the Florida Right to Medical Marijuana Initiative ("Amendment 2"), which amended
the Florida Constitution to authorize"Medical Marijuana Treatment Centers"; and
WHEREAS, the Florida Legislature passed SB 8-A, amending section 381.986, Florida
Statutes, in the 2017 Special Session, approved by the Governor on June 23, 2017, which
implements Amendment 2 and which further contains specific preemption provisions regarding
dispensary facilities of medical marijuana treatment centers; and
WHEREAS, specifically, SB 8-A provides that a municipality may, by ordinance, ban
medical marijuana treatment center dispensing facilities from being located within the boundaries
of that municipality, but that a municipality that does not ban dispensing facilities may not place
specific limits either on the number of dispensing facilities that may locate in the municipality and,
further,may not enact ordinances for permitting or determining the location of dispensing facilities
which are more restrictive than its ordinances permitting or determining the locations for
pharmacies licensed under chapter 465, Florida Statutes; and
WHEREAS, the City Council determines that it must update its ordinances relating to
medical marijuana treatment center dispensing facilities to comply with state law; and
WHEREAS,the City Council determines that it is in the best interests of the public health,
safety and welfare of the citizens of Cape Canaveral to ban medical marijuana treatment center
dispensing facilities from being located within the boundaries of the City.
City of Cape Canaveral
Ordinance No. 11-2017
Page 1 of 10
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
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:
* * *
Medical marijuana treatment center dispensing facility means
a facility of a medical marijuana treatment center, as that term is defined in s. 29,Art. X of
the Florida State Constitution, which dispenses marijuana, products containing marijuana, related
supplies or educational materials to qualifying patients or their personal caregivers, as defined in
s. 29, Art. X of the Florida State Constitution and section 381.986, Florida Statutes, but shall not
include facilities growing, cultivating or processing marijuana or derivative products.
* * *
ARTICLE VII.—DISTRICTS
* * *
DIVISION 5.— C-1 LOW DENSITY COMMERCIAL DISTRICT
* * *
Sec. 110-334. - Special exceptions permissible by board of adjustment.
(a) Special exceptions may be permitted for the following:
City of Cape Canaveral
Ordinance No. 11-2017
Page 2 of 10
(1) Automotive service stations that were lawfully approved and permitted by the city
pursuant to a special exception prior to the effective date of Ord.No. 11-2015 [November
17,2015] shall be considered a lawful,conforming use subject to all applicable conditions
and requirements imposed by the city when said use was previously permitted. In
addition, such automotive service stations may be modified to allow no more than ten
fueling stations (where one vehicle can be accommodated for refueling) within any one
filling station property or location, whether said filling station is located on one lot or
comprises more than one lot. An automotive service station may be modified to allow up
to 16 fueling stations on a single lot of at least one acre with at least 275 feet of single
street frontage.
Any request for a modification to such special exception is subject to Chapter 110,Article
II, Division 4, City Code, and all other applicable provisions of the City Code.
(2) Pain management clinics, subject to the requirements of section 110-489 of this Code.
(3)Commercial establishments which sell, dispense, serve or store alcoholic beverages or
which permit the consumption of alcoholic beverages on their premises subject to section
110-171.
DIVISION 6.— C-2 COMMERCIAL/MANUFACTURING DISTRICT
* * *
Sec. 110-343. - Special exceptions permissible by the board of adjustment.
(a) Special exceptions may be permitted for the following:
(1) Pain management clinics, subject to the requirements of section 110-489 of this Code.
(2)Commercial establishments which sell, dispense, serve or store alcoholic beverages or
which permit the consumption of alcoholic beverages on their premises subject to section
110-171.
DIVISION 7.—M-1 LIGHT INDUSTRIAL AND RESEARCH AND DEVELOPMENT
DISTRICT
* * *
Sec. 110-354. - Special exceptions permissible by board of adjustment.
(a) Special exceptions may be granted for the following:
City of Cape Canaveral
Ordinance No. 11-2017
Page 3 of 10
(1) Conveyor systems for purposes of moving aggregate and other materials, subject to the
following:
a. Conveyor systems must be connected and adjacent to Port Canaveral.
b. Conveyor systems crossing the setback must be constructed in a north-south
direction, perpendicular to Port Canaveral.
c. Conveyor systems must be completely enclosed where located within a setback.
d. Conveyor systems shall not exceed 30 feet in height,where located within a setback.
e. Conveyor systems in the setbacks shall not be located within 750 feet from any other
existing or approved conveyor system(s). This measurement shall be drawn as a
straight line connecting the conveyor systems.
(2) Pain management clinics, subject to the requirements of section 110-489 of this Code.
(3)Commercial establishments which sell, dispense, serve or store alcoholic beverages or
which permit the consumption of alcoholic beverages on their premises subject to section
110-171.
ARTICLE IX.–SUPPLEMENTARY DISTRICT REGULATIONS
DIVISION 1.– GENERALLY
Sec. 110-489. -Pain management clinic and medical marijuana treatment center dispensing
facility regulations.—
(1)Pain management clinics and medical marijuana treatment centers may only be permitted
by special exception in the C-1, C-2 and M-1 zoning districts, subject to the general conditions for
special exceptions and subject to the following requirements:
(a) State registration. Pain management clinics
must be registered with the state if required by Florida law. If registration is required by
state law, then proof of registration, application for registration or letter of exemption
must be provided with the special exception application for the pain management clinic.
(b) Pain management clinic licensing. Each pain management clinic shall be operated by a
medical director who is a Florida-licensed physician, board-certified in pain medicine,
and who shall be responsible for complying with all requirements related to registration
and operation of the clinic. The designated physician must have a full, active, and
unencumbered license under F.S. ch. 458 or ch. 459, and shall practice at the clinic
location for which the physician has assumed responsibility. Within ten days after
termination or absence of the medical director, the clinic must notify the city of the
identity of another medical director for the clinic.
City of Cape Canaveral
Ordinance No. 11-2017
Page 4 of 10
(c) Separation requirements from similar uses. There shall be no less than one-half-mile
distance between each pain management clinic regardless of the municipal boundaries
of the city.
(d) Separation requirements from schools, churches and daycare facilities. No pain
management clinic shall be permitted to locate
within 1,000 feet of any public or private school, church,or daycare facility and no public
or private school, church, or daycare facility shall be permitted to locate within 1,000 feet
of a pain management clinic.
(e) Hours of operation. Pain management clinics
shall only be permitted to operate between the hours of 9:00 a.m. and 7:00 p.m., Monday
through Friday, and 9:00 a.m. to 12:00 p.m. on Saturday.
(f) Requirement for indoor operation and prohibition on loitering. There shall be no outdoor
seating areas, queues, or customer waiting areas. All activities of the pain management
clinic; including sales, display, preparations and
storage; shall be conducted entirely within an enclosed building. A pain management
clinic shall provide adequate seating for its patients
and business invitees.The pain management clinic
shall not direct or encourage any patient or business invitee to stand, sit, gather or loiter
outside of the building where the clinic or center operates, including in a parked car,
including in any parking areas, sidewalks, rights-of-way, or neighboring properties for
any period of time longer than reasonably required for patients to conduct their official
business and depart. The pain management clinic
shall post conspicuous signs on at least three sides of the building stating that no loitering
is allowed on the property.
(g) Vehicular traffic. The pain management clinic
shall ensure that there is no queuing of vehicles in the rights-of-way.No pain management
clinic shall have a drive-through or drive-in service
aisle.
(h) Prohibition of on-site consumption of pain management drugs, marijuana or alcohol. No
consumption of a pain management drug, marijuana, or alcoholic beverage shall be
allowed on the premises, including in the parking areas, sidewalks, or rights-of-way.
(i) Parking. Any parking demand created by a pain management clinic
shall not exceed the parking spaces located or allocated on site, as
required by the city's parking regulations. An applicant shall be required to demonstrate
that on-site traffic and parking attributable to the pain management clinic
will be sufficient to accommodate traffic and parking demands
it generates, based upon a current traffic and parking study prepared by a certified
professional.
(j) Prohibition on cash only businesses. Limiting payment for goods or services to cash only
is prohibited.
(k) Daily reports required. Pain management clinics
shall be required to submit to the Brevard County Sheriffs Office a daily summary
containing the following information from the prior business day:
(i) The total number of prescriptions written that day;
City of Cape Canaveral
Ordinance No. 11-2017
Page 5 of 10
(ii) The total number of doses of drugs sold and/or dispensed by the pain management
clinic that day(including samples),specifying
how many doses were sold or dispensed; the person prescribing or dispensing same;
and the manner of payment by each person who was dispensed drugs at the clinic
that day; and
(iii) The state of residence of each person to whom drugs were prescribed or dispensed
that day.
(1) Prohibition on home occupations. A pain management clinic
shall not be permitted as a home occupation.
(m) No pain management clinic shall be wholly or
partially owned by, or have any contractual relationship (whether as a principal, partner,
officer, member, managing member, employee, independent contractor, or otherwise)
with any physician,pharmacist,or any other person who prescribes drugs and who,within
five years prior to the receipt of any application for special exception:
(i) Has been suspended, had his or her license revoked, or been subject to disciplinary
action for prescribing,dispensing,administering,providing,supplying,or selling any
controlled substance in violation of any state, federal, or similar law where such
person is licensed to practice;
(ii) Has been convicted of, pled nolo contendere to, or violated any plea agreement
regarding an arrest for,a violation of any state,federal, or similar law related to drugs
or alcohol, specifically including but not limited to, prescribing, dispensing,
administering,providing, supplying, or selling any controlled substance;
(iii) Has been suspended, had his or her license revoked, or been subject to disciplinary
action by any state, federal, or other governmental entity where such person is
licensed to practice;
(iv) Has had any state,federal,or other governmental entity where such person is licensed
to practice take any action against such person's license as a result of dependency on
drugs or alcohol; or
(v) Has been convicted of, pled nolo contendere to, or violated any plea agreement
regarding an arrest for, any felony or crime involving moral turpitude.
(n) No pain management clinic shall be wholly or
partially owned by, or have as a principal, partner, officer, member, managing member,
or otherwise where the owner is an entity, any person who:
(i) Has been convicted of, pled nolo contendere to, or violated any plea agreement
regarding an arrest for,a violation of any state,federal, or similar law related to drugs
or alcohol; or
(ii) Has been convicted of, pled nolo contendere to, or violated any plea agreement
regarding an arrest for, any felony or crime involving moral turpitude.
(o) No pain management clinic shall employ any
person, as an independent contractor or otherwise, who:
(i) Has been convicted of, pled nolo contendere to, or violated any plea agreement
regarding an arrest for,a violation of any state,federal, or similar law related to drugs
City of Cape Canaveral
Ordinance No. 11-2017
Page 6 of 10
or alcohol, specifically including but not limited to, prescribing, dispensing,
administering, providing, supplying or selling any controlled substance; or
(ii) Has been convicted of, pled nolo contendere to, or violated any plea agreement
regarding an arrest for, any felony or crime involving moral turpitude within the five
years preceding the application for special exception.
(p) Landlord responsibilities.
(i) Any landlord, leasing agent, or owner of property upon which a pain management
clinic operates,who knows, or in the exercise
of reasonable care should know, that a pain management clinic
is operating in violation of city code or applicable Florida law,
including the rules and regulations promulgated by the state department of health,
must prevent, stop, or take reasonable steps to prevent the continued illegal activity
on the leased premises.
(ii) Landlords who lease space to a pain management clinic
must expressly incorporate language into the lease or rental agreement stating
that failure to comply with city code is a material non-curable breach of the lease and
shall constitute grounds for termination of the lease and immediate eviction by the
landlord.
(q) Additional application information. An applicant seeking a special exception for a pain
management clinic shall,in addition to the general
application information required for special exceptions, provide the following:
(i) The pain management clinic's registration
number issued by the Florida Department of Health, as required by Florida law.
(ii) For pain management clinics, the name of the medical director, as required herein,
responsible for complying with all requirements related to operation of the pain
management clinic and the medical director's Drug Enforcement Agency number.
(iii) A list of all persons associated with the management or operation of the pain
management clinic, whether paid or unpaid,
part-time or full-time, including all contract labor and independent contractors. This
list shall include, but not be limited to, all owners, operators, employees and
volunteers. For persons listed, the following additional information must be
provided:
(A) Person's title, current home address, telephone number and date of birth;
(B) List of all criminal convictions whether misdemeanor or felony; that are drug
related;
(C) A copy of a current Florida driver's license or government issued photo
identification; and
(D) A set of fingerprints.
(iv) If the property owner is different from the owner of the pain management clinic,
the applicant shall provide the name, address,
telephone number and a copy of a Florida driver's license or government issued photo
identification of the property owner along with the application.
(v) An inventory of diagnostic equipment to be located at the clinic;
City of Cape Canaveral
Ordinance No. 11-2017
Page 7 of 10
(vi) A natural disaster management plan;
(vii)A floor plan showing the location and nature of adequate security measures,
including those required by the State of Florida for controlled substances, to
safeguard all drugs to be dispensed in the course of its business.
(viii) An affidavit of the medical director of the pain management clinic,
signed under oath, attesting:
(A) That their practice is located at the subject site;
(B) That no employees of the facility have been convicted of a drug-related felony
within the five years preceding the application for special exception;
(C) That the pain management clinic will not
knowingly employ any such convicted felons thereafter; and
(D) For pain management clinics, that the medical director shall be required to
inform the city within ten days should the medical director be terminated or
otherwise leave the affiliation of the pain management clinic as medical director.
The medical director of the pain management clinic,
shall be required to keep all application information
updated with the city at all times, even after issuance of a special exception, and said
information shall be verified annually by the city in conjunction with the city's local
business tax receipt renewal process. The medical director of the pain management
clinic, shall notify the city of any
change to the information within ten days of any new person becoming associated
with the pain management clinic or any other
change to the application information required herein. Failure to properly maintain
updated information with the city shall be grounds for revocation of the special
exception.
(r) Single special exception application/Single classification of special exception. Only one
special exception may be issued for a location or any single building and only under a
single classification for either a pain management clinic or medical marijuana treatment
center.
(s) Compliance with law. The pain management clinic
shall at all times be subject to the requirements of all applicable federal, state, county and
local laws and ordinances, as they may be amended from time to time.
(t) Suspension or revocation of special exception. Any special exception granted for a pain
management clinic may be temporarily suspended
or absolutely revoked by majority vote of the board of adjustment at a public hearing,
when the board of adjustment has determined by competent substantial evidence that
either:
(i) The pain management clinic has obtained the
special exception upon false statements, fraud, deceit, misleading statements, or
suppression of material facts;
(ii) The pain management clinic has committed
substantial violations of the terms and conditions on which the special exception was
granted;
City of Cape Canaveral
Ordinance No. 11-2017
Page 8 of 10
(iii) The pain management clinic no longer meets
the requirements of this section or other applicable law; or
(iv) The medical director or any other employee of the pain management clinic
knowingly allowed illegal activities to be conducted on the premises.
Prior to any special exception being revoked, the pain management clinic
shall be provided with minimum due process including notice
of the grounds for revocation and hearing date, an opportunity to be heard, the right to
present evidence, and the right to cross-examine adverse witnesses.
(u) Certification affidavit by applicants for related uses.
(i) Any application for a business tax receipt under chapter 70 of this Code, as a pain
management clinic as such terms is
defined in section 110-1 of this Code, shall be accompanied by an executed affidavit
certifying registration with the State of Florida and the city as a pain management
clinic, as applicable. The failure of an
applicant to identify the business in the application for a business tax receipt as a
pain management clinic or medical marijuana treatment center will result in the
immediate expiration of the business tax receipt and immediate ceasing of all activity
conducted in the pain management clinic.
(ii) Any applicant's application for a business tax receipt and executed affidavit relating
to use as a pain management clinic, where
applicable, shall be provided to the city building division at the time of the proposed
use.
(2)Medical marijuana treatment center dispensing facilities shall be prohibited from locating in
any district of the City.
Footnotes:
***
Section 3. 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.
Section 4. 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
City of Cape Canaveral
Ordinance No. 11-2017
Page 9 of 10
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 5. 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 6. 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
1st Advertisement: June 30, 2017
1st Reading: July 18, 2017
2nd Advertisement:
2nd Reading:
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. 11-2017
Page 10 of 10
City of Cape Canaveral
[city seal] City Council Agenda Form
City Council Meeting Date: 7/18/2017
Item No. 10
Subject: Ordinance No. 12-2017; amending Section 110-609 of the City of Cape Canaveral
Land Development Code; clarifying that Hotels are a permitted use in the A 1 A Economic
Opportunity Overlay District; providing for the repeal of prior inconsistent ordinances and
resolutions, incorporation into the Code, severability and an effective date, first reading.
Department: Community Development
Summary: With adoption of Ordinance No. 02-2016 in July 2016, City Council approved a
sweeping change related to allowed uses in the various zoning districts throughout the City.
In particular, Sec. 110-352 was revised to allow hotels, with a minimum of 150 rental units,
as a permitted use in the M-1 district. Prior to this,hotels were not allowed in the M-1 district.
However, this new language created a conflict with standards contained in the Economic
Opportunity Overlay District (EOOD) section of the Code; specifically Sec. 110-609 which
states that hotels and motels are only allowed in the M-1 district as a special exception. As a
result, the EOOD is now more restrictive with respect to hotel development than property
outside the EOOD.
As a result, the proposed Ordinance represents a conforming amendment to make Sec. 110-
609 consistent with Sec. 110-352,to allow hotels/motels as a permitted use in the M-1 district
in the EOOD.
All of the M1 zoning in the City is located within the EOOD, immediately south of Port
Canaveral. A 40-acre district lies east of N. Atlantic Avenue, largely centered on the
Transmontaigne terminal facility.The second district,which is approximately 75-acres in size,
is located between N. Atlantic Avenue and Astronaut Boulevard. These areas of the City are
prime for redevelopment and are logical expansion areas for City/Port hospitality districts.
From a policy standpoint, the EOOD was created to "promote hospitality related commercial
development that capitalizes on the economic benefits of Port Canaveral..." To that end,
development standards applicable to the EOOD were made more flexible and streamlined than
those applicable to the balance of the City. The proposed Ordinance is a continuation of the
Council's intent with respect to creating a favorable regulatory environment within the EOOD.
The Planning&Zoning Board recommended approval of Ordinance No. 12-2017 at its June 28,
2017 meeting.
Submitting Department Director: David Dickey Date: 7-10-17
Attachment:
Ordinance No. 12-2017
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 Date: 7/6/17
City Council Meeting
Date: 7/18/2017
Item No. 10
Page 2 of 2
The City Manager recommends that City Council take the following action:
Approve Ordinance No. 12-2017 on first reading.
Approved by City Manager: David L. Greene Date: 7/8/17
ORDINANCE NO. 12-2017
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF CAPE CANAVERAL, BREVARD COUNTY, FLORIDA;
AMENDING SECTION 110-609 OF THE CITY OF CAPE
CANAVERAL LAND DEVELOPMENT CODE;
CLARIFYING THAT HOTELS ARE A PERMITTED USE IN
THE AlA ECONOMIC OPPORTUNITY OVERLAY
DISTRICT; PROVIDING FOR THE REPEAL OF PRIOR
INCONSISTENT ORDINANCES AND RESOLUTIONS,
INCORPORATION INTO THE CODE, 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,Ordinance No.02-2016 amended Sec. 110-352 of the City of Cape Canaveral
Land Development Code ("Code") to allow hotels, with a minimum of 150 rental units, as a
permitted use in the M-1 district; and
WHEREAS, Sec. 110-609 of the Code currently provides that hotels and motels that are
also in the AlA Economic Opportunity Overlay District are only allowed as a special exception in
the M-1 District; and
WHEREAS, the City Council desires to correct this inconsistency in the Code related to
hotels in the M-1 district; and
WHEREAS, Sec. 110-627(1)(b) of the Code already further provides that hotels within
the AlA Economic Opportunity Overlay District must have 150 units with no minimum lot size;
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):
City of Cape Canaveral
Ordinance No. 12-2017
Page 1 of 4
Chapter 110—ZONING
* * *
ARTICLE X.—AlA ECONOMIC OPPORTUNITY OVERLAY DISTRICT
* * *
DIVISION 2.—ADMINISTRATION
* * *
Sec. 110-609. -Use matrix.
The District is intended to serve as both the main gateway area into the city as well as the
main street to the city's proposed Town Center. The following land use matrix (Table 1) identifies
the uses which are permitted by right (P), permitted by a special exception (SE), or not allowed
(NA).
Table 1. Land Use Matrix
Uses (not a complete listing)* C-1 C-2 M-1
Retail P P P 1
Personal Services P P SE 1
Hotels and Motels P P 1 P SE
Banks P P
Waterfront Restaurant P P SE
Assisted Living Facility SE SE 1 NA
Pharmacies 2 P P NA
Flex space (office, showroom,warehouse) 2 SE SE P
Convenience store w/gas 2 SE SE P
High tech/light manufacturing 2 SE P P
Warehousing 2 NA SE P
Off-site cruise ship parking accessory to hotels and motels 2 SE SE SE
Commercial Parking Facility (minimum lot size of 5 acres)4 NA NA SE
Port of Call Facility [Permitted pursuant to a Development P P P
Agreement(DA)] 1 (w/DA) (w/DA) (w/DA)
Attraction and Destination uses 1 PD PD PD
Mixed Use Development uses (i.e. Town Center) 1 1 PD 1 PD 1 PD
City of Cape Canaveral
Ordinance No. 12-2017
Page 2 of 4
1 Added use.
2 Use included to clarify intent of code.
*Uses not specifically listed may be approved as a Planned Development(PD).
Section 3. 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.
Section 4. 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 5. 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 6. 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
1st Reading: July 18, 2017
Advertisement:
City of Cape Canaveral
Ordinance No. 12-2017
Page 3 of 4
2nd Reading:
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. 12-2017
Page 4 of 4
City of Cape Canaveral
City Council Agenda Form
[city seal] City Council Meeting Date: 7/18/2017
Item No. 11
Subject: Authorize removal of one (1) Specimen Tree at 226 Polk Avenue at a mitigation rate
of one-to-one.
Department: Community Development
Summary: On June 12, 2017, a tree removal application was submitted to Staff for removal of
one (1) Live Oak Tree by Daniel M. Coon located at 226 Polk Ave., Cape Canaveral. The
applicant purchased the property with the intent of demolishing the existing house and
rebuilding a single-family home with a pool. The subject tree is located five feet from the
proposed house and within the pool footprint.
On June 15,2017,City Arborist Tim Davis conducted a site inspection and verified that the tree
requested for removal is a Specimen Live Oak Tree. He submitted a Tree Hazard Evaluation
Form. The tree has a diameter at breast height(dbh) of forty-one (41) inches, is approximately
forty (40) feet in height and has a seventy-five (75) foot canopy spread. The Arborist's report
indicates that at the time of the inspection the tree was in good health.
Sec. 102-41(b), City Code, states that: "Notwithstanding any other provision of this division,
specimen trees shall not be removed except for extraordinary circumstances and hardships and
only by final permit approved by the city council. As a condition of removal of any specimen
tree, the city council shall have the right to require that replacement trees be planted or a
contribution to the tree bank be made [...]"
Staff recommends City Council authorize removal of the Specimen Tree(Sec. 102-41),with the
required mitigation completed by the time of issuance of Certificate of Occupancy (C.O.) for
the proposed single-family home. Staff recommends removal of the tree be mitigated at a ratio
of one-to-one which can be in the form of a contribution to the City's Tree Bank or planting of
replacement trees.
Submitting Department Director: David Dickey Date: 7-7-17
Attachments:
1 -Aerial Photo
2 -Permit Application for the Removal of Tree
3 -Tree Hazard Evaluation Form
4- Photos of the Tree
5 -City Code Section 102-41
Financial Impact: Staff time and effort to complete the Agenda item.
Reviewed by Administrative/Financial
Services Director: John DeLeo Date: 7/6/17
City Council Meeting Date: 7/18/2017
Item No. 11
Page 2 of 2
The City Manager recommends that City Council take the following action:
Authorize removal of one (1) Specimen Tree located at 226 Polk Avenue at a mitigation ratio
of one-to-one.
Approved by City Manager: David L. Greene Date: 7/6/17
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Attachment 2
Date: 6/12/17
RECEIVED CITY OF CAPE CANAVERAL Tracking#
JUN 12 2017 PERMIT APPLICATION Permit#
FOR THE REMOVAL OF TREES
Authority: City of Cape Canaveral Code of Ordinances Sec. 102-37(e)
(321) 868-1222
City of Cape Canaveral Building Department 7510 N.Atlantic Ave. Cape Canaveral, FL 32920
You may download this application: www.cityofcapecanaveral.org You may fax to: (321)868-1247. Important: Please complete the checklist
on this form and provide documentation as indicated. A copy of contract may be required. Applications will not be accepted unless complete.
APPLICANT WILL BE CALLED WHEN PERMIT IS READY.
(Contractor or Owner is required to sign for the permit, unless indicated otherwise by affidavit. I.D. may be required)
Address of Job Site: 226 Polk Ave East 333 1 of Lot 10, West 33.3 1 of Lot 11
Legal description of property: TWN: RNG: SEC: SUBD: Avon By The Sea BLK: 2 LOT: [see above] PB: 3 PG: 7
Property Owner Name: Coon Phone: 480-5573 Address: 200 Madison Ave, CC
Contractor Name: Name of Company:
Address:
State License No.: Phone(office): Phone(cell/pager.): Fax:
Please check all that apply(proof may be required). Of the tree(s)to be removed,are all the trees: dead? diseased?
suffering from severe structural defects? posing a clear and obvious safety hazard? large portion of tree over dwelling
Please clarify the reason tree(s)must be removed: in the footprint of planned single family residence
Do you plan to relocate the tree(s)or re-plant new tree(s)? Please describe: replant new trees per city code when the new dwelling is built
Notes: d.b.h. is diameter at breast height(4 1/2 feet above grade)
Caliper is the measurement of a tree 12 inches from the soil level.
A Specimen Tree is one with a 24"or greater caliper measurement.
City Council shall have final approval authority for the removal of Specimen Trees.
X Type of Residential Quantity of Of the trees planned for removal, Sum total dbh of all inches Valuation of
Building built or proposed protected/native how many have caliper of all protected/native tree removal
on the property trees over 3" dbh measurement of 24"or larger? trees to be removed work
to be removed
X Single Family Residence 1 1? split trunk $800.00
Townhome
Apartment
Other(specify)
X Permit Application Checklist Notes
X Completed Permit Application
A plan showing location and sizes of trees to be removed and planted showing all existing/proposed construction and landscaping
Contractor's State License Record will be kept on file after initial submittal
Current Worker's Comp. Policy/Exemption Record will be kept on file after initial submittal
City Council Approval(if needed - please attach approval minutes) For removal of specimen or historic trees
Application is hereby made to obtain a permit to do the tree removal and replacement work as indicated. I certify that no
work or installation has commenced prior to the issuance of a permit and that all work will be performed to meet the
standards of all laws regulating tree removal in this jurisdiction. A copy of the permit shall be posted on-site until all tree
removal activities are complete. By signing, applicant affirms that all above is true and correct and that he/she is an
authorized agent of the Contractor and/or the Owner and has the authority to apply for this permit.
Applicant's Name: DANIEL M. COON Applicant's Signature: DLMh Date: 6/12/2017
Notary use only: In the State of Florida,County of Brevard sworn and subscribed before me this 12th day of June, 2017,
by Daniel Mirlen Coon .
Printed name of Applicant X who produced identification: FL Driver's License or
is personally known to me.
Seal: KAREN HUTCHINSON MY COMMISION# FF 951009 Karen Hutchinson
EXPIRES: January 18, 2020 Bonded Thru Notary Public Underwriters Signature - Notary Public At Large
G:\Bldg.Dept.Forms\BP Appl. Removal of Trees (3 D.U.) This form may be duplicated.
My wife and I purchased the subject property, 226 Polk Ave, out of foreclosure following an extended
period of neglect and recurring code violations. We see great potential with the location and intend to
follow through on replacing this eyesore with a newly constructed single family resident for our
personal use. It was brought to our attention while soliciting bids for demolition that one of the three
Live Oak trees on the property was potentially a Specimen tree.The City of Cape Canaveral Arborist
has determined that one of the trees meets the criteria to be classified a specimen Live Oak and as
such requires approval by the City Council for removal. While it was not known to us at the time of
purchase, it is our intent to work with the City Council to come to an equitable resolution concerning
the disposition of the identified specimen tree. The other two Live Oak trees, 12" & 16", are located on
the property such that they will not require removal and are not being considered for removal. We
have discussed our situation with the neighbors and none have expressed opposition to removal of the
subject tree.As noted in the Arborists report the subject tree is in close proximity(6') to the existing
structure, proposed new residence (5') and is in the foot print of the proposed pool (see attached
drawing and pictures). We respectfully request that the City Council approve removal of the subject
tree in consideration of the following criteria as set forth in Section 102-41:
The tree is in the foot print of the current and proposed structures.
The tree is located such that the foot print cannot be effectively relocated to accommodate preserving
the tree.
The tree canopy extends over the existing and proposed structure to such an extent as to pose a safety
hazard to the structure and occupants. At least 1/3 of the tree canopy would need to be removed to
allow demolition and new construction.
The lot is very low, prone to flooding, and must be filled (^'18") to comply with building codes. Such a
raise in elevation would threaten the long term viability of the tree.
The tree occupies an interior position on the lot and as such will be effectively hidden from public view
thus contributing little to the aesthetics of the neighborhood.
Two significant Live Oak trees will be retained which are healthy and are not threatened but the
proposed structures ("'11'from footprint).
The proposed new construction is feasible and complies with all required setbacks and easements.
It is not possible to shift lot lines to accommodate the location of the tree.
Note:The tree report denotes the tree as a 41" Live Oak however the tree is in fact not symmetric(see
attached photos). The tree is most probably composed of two which have merged over the years to
form a single tree with an elongated trunk measuring 24"x 41".An equivalent symmetric diameter was
determined to be 34" based on a measured 106" circumference at 1 foot above grade.The more
standard measure Diameter at Breast Height (DBH) is not practical given that the tree splits at two feet
above grade.
Thank you for your consideration of this subject: Daniel & Kathleen Coon, 200 Madison Ave, CC
[construction plans]
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Attachment 3
[ISA LOGO]® A Photographic Guide to the Evaluation of Hazard Trees in Urban Areas
TREE HAZARD EVALUATION FORM 2nd Edition
Site/Address: 226 Polk Ave. Cape Canaveral HAZARD RATING: 3-12
Map/Location: 1 4 4 9
Failure + Size + Target = Hazard
Owner: public private X unknown other Potential of part Rating Rating
Date: 6-15-17 Inspector: City of Cape Canaveral - Tim Davis Immediate action needed
Date of last inspection: Unkown Needs further inspection
Dead tree
TREE CHARACTERISTICS
Tree#: 1 Species: Quercus Virginiana "Live OAK"
DBH: 41" # of trunks: 2 Height: 40' Spread: 75'
Form: X generally symmetric ❑minor asymmetry ❑major asymmetry ❑stump sprout ❑stag-headed
Crown class: ❑ dominant Xco-dominant ❑intermediate ❑suppressed
Live crown ratio: 95 % Age class: ❑young ❑semi-mature Xmature ❑over-mature/senescent
Pruning history: ❑crown cleaned ❑excessively thinned ❑topped Xcrown raised ❑pollarded ❑crown reduced ❑flush cuts ❑cabled/braced
❑none ❑multiple pruning events Approx.dates:
Special Value: Xspecimen ❑heritage/historic ❑wildlife ❑unusual ❑street tree ❑screen ❑shade Xindigenous Xprotected by gov. agency
TREE HEALTH
Foliage color: Xnormal ❑chlorotic ❑necrotic Epicormics? Y X N Growth obstructions:
Foliage density: Xnormal ❑sparse Leaf size: ❑normal ❑small ❑stakes ❑wire/ties ❑signs ❑cables
Annual shoot growth: ❑excellent Xaverage ❑poor Twig Dieback? Y N X ❑curb/pavement ❑guards
Woundwood development: ❑excellent Xaverage ❑poor ❑none Xother housE
Vigor class: ❑excellent Xaverage ❑fair ❑poor
Major pests/diseases:
SITE CONDITIONS
Site Character: Xresidence ❑commercial ❑industrial ❑park ❑open space ❑natural ❑woodland\forest
Landscape type: ❑parkway ❑raised bed ❑container ❑mound Xlawn ❑shrub border ❑wind break
Irrigation: Xnone ❑adequate ❑inadequate ❑excessive ❑trunk wettled
Recent site disturbance? Y N X ❑construction ❑soil disturbance ❑grade change ❑line clearing ❑site clearing
%dripline paved: 0% 10-25% X 25-50% 50-75% 75-100% Pavement lifted? Y N X
%dripline w/ fill soil: 0% X 10-25% 25-50% 50-75% 75-100%
%dripline grade lowered: 0% X 10-25% 25-50% 50-75% 75-100%
Soil problems: ❑drainage ❑shallow ❑compacted Xdroughty ❑saline ❑alkaline ❑acidic ❑small volume ❑disease center ❑history of fail
❑clay ❑expansive ❑slope ° aspect:
Obstructions: ❑lights ❑signage ❑line-of-sight ❑view ❑overhead lines ❑underground utilities ❑traffic ❑adjacent veg. ❑
Exposure to wind: Xsingle tree ❑below canopy Xabove canopy ❑recently exposed ❑windward, canopy edge ❑area prone to windthrow
Prevailing wind direction: East Occurrence of snow/ice storms Xnever ❑seldom ❑regularly
TARGET
Use Under Tree: Xbuilding ❑parking ❑traffic ❑pedestrian Xrecreation ❑landscape ❑hardscape ❑small features ❑utility lines
Can target be moved? Y N X Can use be restricted? Y N X
Occupancy: ❑occasional use ❑intermittent use ❑frequent use Xconstant use
The International Society of Arboriculture assumes no responsibility for conclusions or recommendations derived from use of this form.
TREE DEFECTS
ROOT DEFECTS:
Suspect root rot: Y N X Mushroom/conk/bracket present: Y N X ID:
Exposed roots: ❑severe ❑moderate Xlow Undermined: ❑severe ❑moderate Xlow
Root pruned: 0 distance from trunk Root area affected: 0 % Buttress wounded: Y N X When:
Restricted root area: ❑severe Xmoderate ❑low Potential for root failure: ❑severe ❑moderate Xlow
LEAN: deg.from vertical Xnatural ❑unnatural ❑self-corrected Soil heaving: Y N X
Decay in plane of lean: Y N X Roots broken Y N X Soil cracking: Y N X
Compounding factors: Lean severity: ❑severe ❑moderate Xlow
CROWN DEFECTS: Indicate presence of individual defects and rate their severity(s=severe, m=moderate,I=low)
DEFECT ROOT CROWN TRUNK SCAFFOLDS BRANCHES
Poor taper L L L L
Bow,sweep L L L L
Codominants/forks N/A L L L
Multiple attachments N/A L L L
Included bark L L L L
Excessive end weight N/A L L L
Cracks/splits L L L L
Hangers N/A L L L
Girdling L L L L
Wounds/seam L L L L
Decay L L L L
Cavity L L L L
Conks/mushrooms/bracket L L L L
Bleeding/sap flow L L L L
Loose/cracked bark L L L L
Nesting hole/bee hive L L L L
Deadwood/stubs N/A L L L
Borers/termites/ants L L L L
Cankers/galls/burls L L L L
Previous failure L L L L
HAZARD RATING
Tree part most likely to fail: Healthy Tree Failure potential: 1 -low;2-medium;3-high;4-severe
Size of part: 1 -<6"(15 cm):2-6-18"(15-45 cm);
Inspection period: annual biannual other 1 Time 3 - 18-30" (45-75 cm); 4 - >30"(75 cm)
Failure Potential+Size of Part+Target Rating=Hazard Rating
Target rating: 1 -occasional use;2 intermittent use;
1+ 4 + 4 = 9 3-frequent use;4-constant use
HAZARD ABATEMENT
Prune: ❑remove defective part ❑reduce end weight ❑crown clean ❑thin ❑raise canopy ❑crown reduce ❑ restructure ❑shape
Cable/Brace: Inspect further: ❑root crown ❑decay ❑aerial ❑monitor
Remove tree: Y N Replace? Y N Move target: Y N X Other:
Effect on adjacent trees: Xnone ❑evaluate
Notification: ❑owner ❑manager Xgoverning agency Date: 6-15-17
COMMENTS
Can tree be removed: ❑Yes ❑No Cab tree be root pruned ❑Yes XNo
The tree I inspected today, was a LIVE Oak. At the time of my inspection this tree was in good health and is a specimen Tree. The existing house is six feet from the tree.
If you have any questions, Please call me. 321-863-7341 Thank you Tim Davis Fh0509A
Attachment 4
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Attachment 5
Sec. 102-41. -Specimen trees.
(a) Specimen trees shall be preserved or relocated on site to the greatest extent feasible.
(b) Notwithstanding any other provision of this division, specimen trees shall not be removed except for
extraordinary circumstances and hardships and only by final permit approved by the city council. As a
condition of removal of any specimen tree, the city council shall have the right to require that
replacement trees be planted or a contribution to the tree bank be made in accordance with section
102-43, except replacement and/or tree bank contribution shall be based on a maximum of a two-to-
one ratio of cumulative diameter (dbh) basis of specimen trees removed using the data in Table 1.
(c) In reviewing an application for final permit to remove a specimen tree, the city council shall consider
the following:
(1) Whether the site design, as determined by a preland-clearing inspection, are feasible to allow the
use permitted, as established by the applicable zoning district regulations. Streets, rights-of-way,
easements, utilities, lake perimeters and lot lines shall be shifted whenever possible to preserve
trees.
(2) Whether the specimen tree is located within the footprint of the proposed structure or if more than
one-third of the specimen tree canopy would be required to be removed in order to accommodate
the proposed structure, and whether or not it is feasible to relocate the structure.
(3) Whether the location of the specimen tree prevents any access to the property from a publicly
dedicated and maintained roadway, or whether the tree constitutes a hazard to pedestrian or
vehicular traffic that cannot be mitigated without removing the tree.
(4) Whether the location of the specimen tree interferes with or prevents the construction of utility
lines, drainage facilities, roadways or required vehicular use area which cannot be practically
relocated or rerouted.
(5) Whether the specimen tree is diseased,weakened by age,storm,fire or other injury so as to pose
a danger to persons, property, site improvements or other trees.
(Ord. No. 05-2005, § 2, 4-19-05; Ord. No. 12-2009, § 2, 1-5-10)
Page 1