Introduced by: Mayor
Date: 1/04/94
Public Hearing: 2/01/94
Action: Enacted as Amended
Vote: Unanimous
KENAI PENINSULA BOROUGH
ORDINANCE 94-03
AN ORDINANCE CONFIRMING THE ASSESSMENT
ROLL FOR THE EAST SCOUT LAKE LOOP UTILITY SPECIAL ASSESSMENT
DISTRICT AND ESTABLISHING THE METHOD FOR TERMINATING ASSESSMENTS
AND MAKING REFUNDS TO PROPERTY OWNERS, AND PROVIDING FOR THE
ISSUANCE AND SALE OF NOT TO EXCEED $220,000 PRINCIPAL AMOUNT
SPECIAL ASSESSMENT BONDS FOR THE EAST SCOUT LAKE LOOP UTILITY
SPECIAL ASSESSMENT DISTRICT AND FIXING DETAILS OF SAID BONDS
WHEREAS,the Assembly, by Resolution 93-52,
established the East Scout Lake Loop Utility Special Assessment
District (the "District"); and
WHEREAS,the total costs of constructing the
improvements, including all allowable amounts as provided in AS
29.46.110 ("Costs"), are now known; and
WHEREAS,the District special assessment roll
has been prepared and the total costs of the improvement spread
equally among all the lots and tracts within the District; and
WHEREAS,the Assembly, on February 1, 1994,
held a hearing on the assessment roll at which time all persons
objecting to assessments were given an opportunity to present
their objections; and
WHEREAS,notice of the assessment and hearing
was mailed to each owner of record as shown on the rolls of the
Borough Assessor more than ten days before the hearing; and
WHEREAS,the Assembly found no errors or
inequalities in the roll; and
WHEREAS,the Assembly finds that the roll
should be confirmed; and
WHEREAS,the Assembly has planned, designed,
developed, constructed, equipped, acquired property for, or
otherwise provided for a natural gas pipeline in the District
(the "Project"); and
WHEREAS,special assessments will be levied on
properties in the District that are specially benefitted by the
Project, and said special assessments, with interest thereon,
will be sufficient (together with other amounts) and available to
pay the principal and interest on the hereinafter defined Bonds;
and
WHEREAS,it is deemed necessary and advisable
and in the best interests of the Borough and its inhabitants that
not to exceed $220,000 principal amount of special assessments
bonds be issued at this time in a single series, as hereafter
fixed and determined, for the purpose of paying the Cost of the
Project (the "Bonds"):
NOW, THEREFORE, BE IT ORDAINED BY THE KENAI PENINSULA
BOROUGH ASSEMBLY:
SECTION 1.Classification. This
ordinance is a non-code ordinance.
SECTION 2.Confirmation of Roll. The
assessment roll for District as presented to the Assembly on
February 1, 1994 is confirmed.
SECTION 3.Notice of Assessment. Within
thirty days after the date of this ordinance, the Finance
Director shall mail to the record owner of each property assessed
a statement designating the property, the assessment amount, the
method of payment, the rate of interest on the unpaid balance of
the assessment, the time of delinquency, and the penalties on
delinquent payments. Within five days after the statements are
mailed, the Finance Director shall publish a notice that the
statements have been mailed.
SECTION 4.Payment of Assessment. The
entire assessment may be prepaid without interest or penalty
within thirty days of the date of mailing of the assessment
statement. Thereafter, the assessment may be prepaid in whole or
in part with interest to the payment date. Interest on the unpaid
amount of the assessment shall accrue at a rate per annum equal
to the rate of interest on the Bonds. Assessments that are not
prepaid shall be paid in ten annual installments on the 1st of
each year, commencing March 1, 1995. Installments shall consist
of equal amounts of principal, plus accrued interest.
SECTION 5.Delinquencies. If an
installment of the assessment is delinquent, the balance of the
assessment, plus accrued interest, becomes due and delinquent
thirty days after the date of notice of the installment
delinquency if the installment, penalty and interest have not
been paid within the thirty days. Notice of the delinquency shall
be mailed to the owner of record. The notice must contain notice
of the nonpayment of the installment and that the balance of the
assessment, plus accrued interest, will become due and delinquent
if the installment, interest and penalty are not paid within
thirty days of the date of the notice. The penalty of delinquent
installment and assessment payments is the same as the penalty
for delinquent second half real property taxes in effect on the
date of the delinquency.
SECTION 6.Establishment of Guaranty Fund.
There is established the East Scout Lake Loop Utility Special
Assessment Bond Guaranty Fund to which the Assembly may annually
appropriate a sum the Assembly determines to be adequate, with
other available funds, to cover a deficiency in meeting payments
of principal and interest on the Bonds if the reason for the
deficiency is nonpayment of assessments when due. Money received
from actions taken against property for nonpayment of assessments
confirmed by this ordinance shall be credited to the Guaranty
Fund. Amounts in the Guaranty Fund shall be used to pay principal
and interest on the Bonds when other funds are not available for
that purpose.
SECTION 7.Sinking Fund. There is
established the District Sinking Fund (the "Sinking
Fund"). Payments of principal and interest on assessments
confirmed by this Ordinance shall be deposited in the Sinking
Fund. Amounts in the Sinking Fund shall be used to pay principal
and interest on the Bonds, and are hereby pledged for that
purpose.
SECTION 8.Establishment of reserve and Refund Accounts.
A. There is established the District Reserve and Refund Account (the "Reserve and Refund Account").
B. There shall be paid into the Reserve and Refund Account:
1. That part of the Bond proceeds not expended or required for the initial District Costs, and
2. All monies received form ENSTAR Natural Gas Company that are refund entitlements arising out of new customers connecting to the gas line installed with the District, and
3. The final refund due under the ENSTAR line extension tariff, and
4. Sinking Fund balances after discharge of the Bonds, and
5. Interest on the average Reserve and Refund Account balance and average Sinking Fund balance at the rate determined by the Finance Director to be the average interest earned on Borough investments during the year.
C. Until the Bonds have been discharged, the funds within the Reserve and Refund account may be used only to pay the difference between the amount of principal and interest due on the Bonds and the amount of special assessment payments including interest, received and available to pay that amount; provided, if the Finance Director determines that the amount of funds available in the Reserve and Refund account substantially exceed those that are reasonable expected to be needed to meet assessment delinquencies, the Finance Director may, to the extent of such excess, make a prepayment on the Bonds.
D. At such time as the Finance Director determines that the
sum of the amounts in the Reserve and Refund Account, the
Guaranty Fund, and the Sinking Fund equals or exceeds the amount
required to discharge the Bonds and any other amounts that may be
owing on the Bonds, the Finance Director shall cause such payment
to be made and the Bonds to be discharged.
SECTION 9.Distribution of Reserve and Refund Account Funds.
A. Upon the discharge of the Bonds and after refunds as provided in Section 10 of this ordinance, the funds remaining in the Reserve and Refund Account, the Guaranty Fund, and the Sinking Fund shall be distributed as provided under this section.
B. When the balance of such funds divided by the number of
parcels within the District equals $200 or more, the Finance
Director shall refund to the owner of record as shown on the
records of the Borough Assessor an amount equal to the fund
balance divided by the number of lots with the District;
provided, after the Borough receives the final refund from
ENSTAR, the Finance Director shall distribute the balance of the
funds by sending to each owner of record as shown on the most
recent records of the Borough Assessor an amount equal to the
fund balance divided by the number of lots within the District.
If any lot or tract within the District is divided into two or
more lots, the refund for such re subdivided lots shall be
computed by counting the resubdivided lots as a single lot for
purposes of determining the initial refund entitlement. The
initial refund entitlement shall then be divided equally among
the resubdivided lots.
SECTION 10.Termination of Assessment and Refund of Prorata Share of Assessment Prepayments.
A. Upon the discharge of the Bonds, all unpaid, nondelinquent assessment installments are cancelled. The Finance Director shall refund to the owner of record as shown on the records of the Borough Assessor of each lot for which a prepayment of the assessment was made an amount equal to the difference in the total assessment paid by the lot and the amount paid by lots for which no prepayments were made.
B. For any lot upon which foreclosure proceedings to recover
delinquent assessment installments has been commenced prior to
the cancellation of remaining assessment installments, the amount
due shall be recomputed as provided in subsection A, except there
will be no refund.
SECTION 11.Appropriation. There is
appropriated for the purposes set out in this ordinance the
refunds from ENSTAR attributable tot he District, all assessments
and interest in the District, assessment foreclosure proceeds and
interest earned on the funds as provided in Section 8B5. The
appropriation under this section does not lapse until after the
final refund required under section 9B has been made.
SECTION 12.Authority for Ordinance.
The Borough has ascertained and hereby determines that each and
every matter and thing as to which provision is made in this
Ordinance is necessary in order to carry out and effectuate the
purposes of the Borough in accordance with our constitution and
statutes of the State of Alaska, and the Code of Ordinances of
the Borough, and to issue the bonds.
SECTION 13.Obligation of Bonds. The
Bonds are as special obligation of the District of the Borough
and are payable solely from assessments levies against the
properties which are specially benefited by the Project within
the District and funds pledged for the payment of the Bonds under
this Ordinance. Said assessments shall constitute the Sinking
Fund for the payment of the principal of and interest on the
Bonds. Neither the full faith and credit nor the taxing power of
the Borough are pledged to the payment of the principal of and
interest on the Bonds.
SECTION 14.Authorization of Bonds and
Purpose of Issuance. For the purpose of providing part of the
funds required to pay the Cost of the Project, and to pay all
costs incidental thereto and to the issuance of the Bonds, the
Borough hereby authorizes and determines to issue and sell the
Bonds in one series in the aggregate principal amount of not to
exceed $220,000.
SECTION 15.Maturities, Payment Dates,
Designation and Form of Bonds. The Bonds shall be designated
Kenai Peninsula Borough Special Assessment Bonds (East Scout Lake
Loop Project), shall be dated the date of their delivery to the
Purchaser, and shall mature on the tenth anniversary payment date
in the year 2004.
The Bonds shall bear interest from their date at a rate to be
fixed and determined by the Finance Director of the borough at
the time of sale. Installments of principal and interest on the
Bonds (the "Installment Payments") shall be payable
annually on February 1 of each year, commencing February 1, 1995.
Each Installment Payment shall consist of an equal amount of
principal, plus accrued interest.
The Bonds shall be registered as to principal and interest as
herein provided. The Bonds shall each be of the denomination of
One Thousand Dollars ($1,000) or any integral multiple of $1,000
of the same interest rate and maturity, approved by the Borough,
such approval to be evidenced by the execution of such Bonds. The
Bonds shall be numbered separately in the manner and with such
additional designation as the Borough deems necessary for
purposes of identification. The Bonds shall be substantially in
the form of such Bond hereinafter set forth, with such
appropriate variations, omissions or insertions as are permitted
or required by this Ordinance, and may have endorsed thereon such
legends or text as may be necessary or appropriate to conform to
the rules and regulations of any governmental authority, or any
usage or requirement of law with respect thereto. Each Bond shall
bear a number or letter, or a number and letter, distinguishing
it from every other Bond.
SECTION 16.Details of Bonds. Each of
the Bonds shall be signed by the manual signature of the Mayor
and the official seal of the Borough (or a facsimile thereof)
shall be affixed, imprinted or otherwise reproduced on the Bonds,
and attested by the manual signature of the Borough Clerk. In
case any officer whose signature shall appear on any Bond shall
cease to be such officer before the delivery of such Bonds, such
signature shall nevertheless be valid and sufficient for all
purposes the same as if he or she had remained in office until
such delivery.
The principal, redemption price of, and the interest on the
Bonds shall be payable in any coin or currency of the United
States of America, which at the respective dates of payment
thereof is legal tender for the payment of public and private
debts.
Payment of the principal of and interest on the Bonds shall be
made by check or draft mailed to the registered owner of record
as of the 15th day of the month proceeding each Installment
Payment date at the address appearing on the registration books
kept the Borough.
SECTION 17.Transfer and Exchange of Bonds
and Deliver of New Bonds. Any Bond may be transferred only
upon the books kept for the registration and transfer of Bonds by
the Borough, upon surrender thereof at the office of the Borough,
together with an assignment duly executed by the registered owner
or the owner's attorney in such form as shall be satisfactory to
the Borough. Upon the transfer of any such Bond, there shall be
executed in the name of the transferee, and the borough shall
authenticate and deliver a new registered Bond or Bonds of the
same maturity in any other authorized denominations.
In all cases in which Bonds may be transferred or exchanged
under this Ordinance, there shall be executed, and the Borough
shall authenticate and deliver, Bonds in accordance with the
provisions of this Ordinance. Any such transfer or exchange shall
be without cost to the registered owner, except that the Borough
may make a charge for every such registration, transfer or
exchange of Bonds sufficient to reimburse it for any tax, fee, or
other governmental charge required to be paid with respect to
such registration, exchange or transfer, and such charge or
charges shall be paid before any such new Bond shall be
delivered. The Borough shall not be required to make any such
registration, transfer, or exchange of a Bond during the fifteen
days next preceding and interest payment date on such Bond.
SECTION 18.Ownership of Bonds. As to
any Bond, the person in whose name the same shall be registered
on the Bond Register shall be deemed and regarded as the absolute
owner thereof for all purposes, and payment of or on account of
the principal of such bond and the interest on such Bond shall be
made only to or upon the order to the registered owner thereof or
the owner's legal representative, but such payments shall be
waived and effectual to satisfy and discharge the liability upon
such Bond, including the interest thereon, to the extend of the
sum or sums so paid.
SECTION 19.Mutilated, Destroyed, Stolen or
Lost Bonds. In case any Bond shall become mutilated or be
destroyed, stolen, or lost, the Borough may cause to be executed,
and shall deliver, a new Bond of like interest rate, principal
amount and maturity in exchange and substitution for and upon
cancellation of such mutilated Bond, or in lieu of and in
substitution for such Bond destroyed, stolen or lost, upon the
owner thereof paying the reasonable expenses and charges of the
Borough in connection therewith and in the case of a Bond
destroyed, stolen or lost, filing by the owner with the Borough
evidence satisfactory to the Borough that such Bond was
destroyed, stolen or lost, and of the owner's ownership thereof,
and furnishing the Borough with indemnity satisfactory to it. Any
new Bond so delivered may bear a number differing from the number
of the Bond it replaces.
SECTION 20.Redemption and Prepayment of
Bonds. The Bonds are subject to redemption or prepayment at
the option of the Borough, in whole or in part, at any time
without penalty or premium.
SECTION 21.Form of Bond. Each Bond
shall be in substantially the following form, with such
variations, omissions and insertions as may be required or
permitted by this Ordinance:
UNITED STATES OF AMERICASTATE OF ALASKAKENAI PENINSULA BOROUGH1994 Special Assessment Bond(East Scout Lake Loop Project)
NO. _______ $____________
INTEREST RATE
Registered Owner
Principal Amount
DOLLARS
The Kenai Peninsula Borough (the "Borough"), a
municipal corporation of the State of Alaska, for value received,
acknowledges itself indebted and hereby promises to pay (but only
out of the sources hereinafter mentioned) to the Registered Owner
identified above, or registered assigns, the Principal Amount
shown above, and to pay (but only out of the sources hereinafter
mentioned) interest on the unpaid principal sum from the date
hereof at the Interest Rate per annum shown above. Installments
of principal and interest (the "Installment Payments:) shall
be payable annually on __________ 1 of each year, commencing
__________ 1, 1995 until __________ 1 , 2004, when the entire
remaining principal balance hereof plus accrued interest shall be
paid in full. Each Installment Payment shall consist of an equal
amount of principal plus accrued interest. The principal,
interest and redemption price of this Bond 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.
Payment of principal and interest shall be made by check or
draft mailed to the Registered Owner of record as of the 15th day
of the month preceding each Installment Payment date at the
address appearing on the Bond Register of the Borough.
This Bond is one of the 1994 Special Assessment Bonds (East
Scout Lake Loop Project) of the Kenai Peninsula Borough, Alaska,
of like tenor and effect except as to serial numbers, aggregating
not to exceed $220,000 in principal amount, and constituting
Bonds authorized for the purpose of raising finds to pay the cost
of natural gas pipeline improvements in the East Scout Lake Loop
Utility Special Assessment District of the Borough
("District"), and issued under Ordinance 94-____ of the
Borough (the "Ordinance").
The Bonds are subject to redemption or prepayment by or on
behalf of the Borough prior to maturity in whole or in part on
any date.
This Bond is transferable as provided in the Ordinance (i)
only upon the registered books of the Borough kept for that
purpose at the office of the Borough, and (ii) upon surrender of
this Bond together with a written instrument of transfer duly
executed by the Registered Owner or the attorney of the
Registered Owner duly authorized in writing, and thereupon a new
fully registered Bond or Bonds in the same aggregate principal
amount and maturity shall be issued to the transferee in exchange
therefor as provided in the Ordinance and upon the payment of
charges, if any, as therein prescribed. The Borough may treat and
consider the person in whose name this Bond is registered as the
absolute owner hereof for the purpose of receiving payment of, or
on account of, the principal or redemption price, if any, hereof
and interest due hereon and for all other purposes whatsoever.
This Bond is payable solely from assessments levied against
properties specially benefited within the District and is a
special obligation of said District. Said assessments constitute
a sinking fund for the payment of principal of and interest on
the Bond and the properties specially benefited are pledged to
secure the Bond.
The Owner of this Bond shall not have any claim thereunder
against the Borough except for payment from special assessments
made for the improvements for which the Bond was issued and
except for payment from the funds pledged for that purpose under
Ordinance 94-____ of the Borough adopted February 1, 1994. The
remedy of the Owner of this Bond shall be confined to the
enforcement of such assessments and to such funds. The Borough
shall not be liable to the Owner of this Bond for any loss to
such funds occurring in the lawful operation thereof.
THIS BOND IS NOT A GENERAL OBLIGATION OF THE BOROUGH AND
NEITHER THE FULL FAITH AND CREDIT NOR THE TAXING POWER OF THE
BOROUGH IS PLEDGED TO ITS PAYMENT.
IT IS HEREBY CERTIFIED AND RECITED that all conditions, acts,
or things required by the Constitution or statutes of the State
of Alaska and the Code of Ordinances of the Borough to exist, to
have happened or have been performed precedent to or in the
issuance of this Bond, exist, have happened and have been
performed, and that the series of Bonds of which this is one,
together with all other indebtedness of the Borough, is within
every debt and other limit prescribed by said Constitution,
statutes or Code of Ordinances.
IN WITNESS WHEREOF, THE KENAI PENINSULA BOROUGH, ALASKA has
caused this Bond to be signed in its name and on its behalf by
the signature of its Mayor and its corporation seal to be
hereunto affixed, imprinted, or otherwise reproduced, and
attested by the signature of its Clerk, all as of the _____ day
of ____________, 1994.
__________________________
[S E A L] Don Gilman, Borough Mayor
ATTEST:
______________________________
Gaye J. Vaughan, Borough Clerk
SECTION 22. Bond Sale. The sale of the
bonds shall be authorized and approved by Resolution of the
Borough.
SECTION 23.Ratification and Delivery.
All actions taken by the Mayor and the Finance Director relative
to the sale of the Bond are hereby in all respects ratified and
confirmed. The appropriate officers of the Borough are hereby
authorized and directed to do all things necessary to the prompt
execution, issuance and delivery of the Bond and for the proper
application and use of the Bond proceeds.
SECTION 24.Authority of Officers. The
Mayor, the Finance Director, and the Borough Clerk, from time to
time, are, and each of them hereby is, authorized and directed to
do and perform all things and determine all matters not
determined by this Ordinance, to the end that the Borough may
carry out its obligations under the Bonds and this Ordinance.
SECTION 25.Miscellaneous. No recourse
shall be had for the payment of the principal of or the interest
on the Bonds or for any claim based thereon or on this Ordinance
against any member of the Assembly or officer of the Borough or
any person executing the Bonds. The Bonds are not and shall not
be in any way a debt or liability of the State of Alaska or of
any political subdivision thereof and shall not create or
constitute an indebtedness or obligation, either legal, moral or
otherwise, of said State of Alaska or any political subdivision
thereof.
SECTION 26.Severability. If any one or
more of the covenants and agreements provided in this Ordinance
to be preformed on the part of the borough shall be declared by
any court of competent jurisdiction to be contrary to law, then
such covenant or covenants, agreements or agreements shall be
null and void and shall be deemed separable from the remaining
covenants and agreements in this Ordinance and shall in no way
affect the validity of the other provisions of this Ordinance or
of the Bonds.
SECTION 27.Effective Date. This
Ordinance shall take effect immediately.
ENACTED BY THE KENAI PENINSULA BOROUGH ASSEMBLY THIS
1st DAY OF FEBRUARY, 1994.
_______________________________
Betty J. Glick, Assembly President
ATTEST:
______________________________
Gaye J. Vaughan, Borough Clerk