MEMORANDUM

TO: Ron Drathman, Assembly President

Kenai Peninsula Borough Assembly Members

FROM: Bill Popp, Assembly Member

DATE: July 22, 1999

RE: Amendment to KPB 14.31.050 allowing the borough to pay all or part of the filing fee for Road Local Improvement District (LID) projects

The above-referenced ordinance allows the borough to pay all or part of the filing fee for a road LID project. The filing fee under the current ordinance is used to defray the costs of attaining the engineer's design for the project which is distributed to the LID petitioners as the basis for the cost estimate for construction. The costs of the engineer's design, and thus the filing fee, can vary depending on the complexity and mileage involved in the LID project. Two projects are presently pending. The mayor has expressed a willingness for the RSA to share in the costs of the filing fee in order to publicize and encourage participation in the road LID program. However, the current ordinance requires the petition sponsors to pay the entire filing fee. The ordinance must be revised in order for the borough to pay part of the filing fee costs.

Allowing the RSA to defray partial filing fee costs for a limited number of LID projects or for a limited time frame may allow the borough to successfully complete its first LID projects. Additionally, if LID projects are completed they may serve as a pilot program allowing the borough to revise the LID program and ordinance as necessary in order to facilitate future LID projects. The amended ordinance still requires 100 percent of a completed LID project to be borne by the benefited parcels, including the costs of design, so the RSA will recoup the filing fee for completed projects.

The amended ordinance was submitted to the RSA board on July 20, 1999, for review and comment. As a result of that review, the RSA board recommends a sunset clause for the ordinance. The sunset clause would allow the borough to defray the costs of filing fees temporarily, which would publicize and encourage participation in the program and limit the impact on the RSA budget.

It is requested that the ordinance be heard on shortened time to facilitate construction projects going forward this year.