TO: Board of County Commissioners
THROUGH: John A. Titkanich, Jr., County Administrator
THROUGH: Nancy A. Bunt, Assistant County Administrator
FROM: Addie Javed, P.E., Public Works Director
DATE: July 30, 2025
SUBJECT: Initial Assessment Resolution for Waters Edge Phase II Culvert Replacement Project
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BACKGROUND
In October of 2006 Waters Edge Phase II subdivision executed a deed giving the county ownership of the roads and road easements located within the subdivision, thus making the County responsible for maintenance and repair of the roadways. However, this did not include the drainage infrastructure for the subdivision including the culverts allowing passage of the canal on 1st Street SW. The culverts are permitted through Indian River Farm Water District in the name of the HOA. The culvert pipes for both entries into the subdivision are failing and in need of replacement. Upon a 2023 agreement with the subdivision homeowner’s association and its attorney the Board of County Commissioners approved a contract with Timothy Rose Construction to construct replacement culverts for a total price of $1,366,739.00 on June 18, 2024. The contract included two projects. One was the replacement of the Waters Edge culverts, and the other was the replacement of culverts on County property. The Waters Edge portion of the contract was for a total of $537,974.50, which includes an $80,000 contingency or ‘force’ account. On October 8, 2024, the Board passed the first resolution establishing a Special Assessment Providing for the Replacement of Culverts for Waters Edge Phase II Subdivision. At subsequent meetings the Board passed additional resolutions relating to this matter. However, on July 1, 2025, the Board adopted a new Uniform Assessment Collection Act, significantly changing the procedures. It has been determined that for uniformity and clarity the previous Waters Edge special assessment resolutions should be repealed and replaced with this new special assessment enacted in compliance with the Uniform Assessment Collection Act. The HOA had previously requested a 15-year payoff period, and the County agreed. The assessment roll (attached) has been filed with the Clerk and made publicly available for review as required. Public Works has notified all affected owners and the date of August 12, 2025, special session has been publicly noticed as required by Code.
The public hearing will be held at 5:01 p.m. on September 10, 2025, in the Commission Chambers, Indian River County Administration Complex, 1801 27th Street, Vero Beach, Florida, for the purpose of receiving public comment on the proposed assessments and their collection on the ad valorem tax bill.
ANALYSIS
The special assessment is to be levied on each property in the Waters Edge Phase II subdivision equally and payable over 15 years through property taxes. All lots/owners are receiving an equal benefit from the project. The Waters Edge portion of the project provides residents the ability to safely ingress and egress the subdivision and offers no benefit to the general public.
BUDGETARY IMPACT
Funding in the amount of $1,367,000.00 is budgeted and available in Optional Sales Tax/Road & Bridge/Construction In Progress/1st Street SW & 35th Avenue Culvert, 31521441-066510-21017. Reimbursement for the residents’ share of $537,974.50 will be received over the next 15 years and deposited into the Optional Sales Tax Fund. An additional 4% will be added to the assessment annually to fund administrative costs incurred by both the Property Appraiser (2%) and the Tax Collector (2%). Per Florida Statute 129.01(2)(c) an additional 5% will be added to account for non-collectibles.
The cost of publication of the required public notice for the public hearing is estimated to be $300.00. The cost of mailing notices for the public hearing is estimated to be $75.00. The cost of recording the assessment resolution is estimated to be $74.00 for a total of $449.00. Funding for the total is available in Optional Sales Tax/Road & Bridge/Construction in Progress/1st Street SW & 35th Avenue Culvert, 31521441-066510-21017.
PREVIOUS BOARD ACTIONS
The Board approved the contract on June 18, 2024, the first resolution on October 8, 2024, and on April 8, 2025, the Board approved the resolution confirming the Special Assessments in Connection with the Replacement of Culvert Piping in Waters Edge Phase II Subdivision.
POTENTIAL FUTURE BOARD ACTIONS
The Board will hold a public hearing on September 10, 2025, to approve the final resolution and set the rates for the special assessment. The Board may need to consider a future resolution once the project is completed to adjust the amounts based upon the total costs of the project. There will hopefully be a surplus and the amounts will go down.
STAFF RECOMMENDATION
County staff recommends that the Board approve the Initial Assessment Resolution confirming the Special Assessments in Connection with the Replacement of Culvert Piping in Waters Edge Phase II Subdivision and set this matter for a final hearing on September 10, 2025, to finalize the special assessment.