Ordinance 99-56 Memo

MEMORANDUM

TO: Ronald Drathman, Assembly President

Members of the Kenai Peninsula Borough Assembly

THRU: Mike Navarre, Borough Mayor

THRU: Jim Lawyer, Director of Assessing

FROM: Clyde Johnson, USAD Coordinator

SUBJECT: Ross Road USAD

DATE: August 30, 1999

INTRODUCTION:

A petition has been received for the purpose of forming a Utility Special Assessment District (USAD) in the Ross Road area of Sterling, Alaska. There are 17 parcels involved with the formation of this district. This proposal allocates 100% of the costs to the 17 benefited parcels involved in the formation of the District. The first petition signature was dated August 18, 1999. All signatures were received by August 24, 1999 thereby meeting the 30 day circulation requirement of regulation /resolution 92-54(D). A separate signature page for each property owner was issued along with a map of the benefited parcels (attachment 4 to the resolution); a petition information sheet (attachment 5 to the resolution); and a commitment letter from ENSTAR (attachment 6 to the resolution). Signatures of owners for 12 parcels were needed to meet the 70% approval requirement of KPB 5.35.050; validated signatures for 13 parcels, or 76.4%, were obtained (attachment 1 to the resolution, Clerk?s certification).

PROJECT BACKGROUND:

The project cost is estimated at $43,679.97 (FORTY-THREE THOUSAND SIX HUNDRED SEVENTY-NINE DOLLARS AND NINETY-SEVEN CENTS).

The proposed method of allocating the cost is by equal allocation of the assessment among all benefited parcels, i.e., dividing the cost by the number of benefited parcels. The per-parcel cost is estimated to be $2,569.41. KPB 5.35.090 requires the assembly determine that an equal allocation of costs to each lot is reasonable where the lots are of disparate size (where ?one or more parcels are more than three times the size of the typical lot?). Equal allocation is reasonable because the immediate benefit of being able to connect a service line to the mainline is the same for all parcels.

1) As required by KPB 5.35.070 no lien for this project may exceed 21% of the fair market value of the property, after giving effect to the estimated benefit from the improvement. Within this project there are zero (0) lots that exceed the 21% limitation.

2) Pursuant to KPB 5.35.070(D) no more than 4% of the lots may have tax delinquencies. As of today's date, August 24, 1999, five (5) lots within the proposed district, or 29.4%, have tax arrearages.

3) This USAD will require the acquisition of easements. If Enstar is unable to acquire the easements the gas line may not be installed. Any prepayments of the assessments for individual parcels will be returned if the easements cannot be acquired and the gas line is not installed; however, the non-refundable filing fee will not be returned.

4) The following list of attachments to the resolution support and are incorporated by reference in the Resolution of Necessity:

The Clerk?s certification of the petition, dated August 26,1999;

A profile information sheet for the proposed USAD containing the tax parcel identification, the assessed value before and after the proposed improvement, the name of each parcel owner, the value-to-cost ratio (which may not exceed 21%), maximum assessment and any prepayment needed, whether the property owners have approved the proposed district and tax delinquencies. The profile sheet further specifies the total costs for the proposed USAD, the number of lots, and cost of the improvement per lot.

The estimated assessment roll including the tax parcel identification number, legal description, estimated assessment per parcel, owner?s name and mailing address;

A map of the proposed district showing the benefited parcels, which benefited parcels are improved, and the proposed course of the main line;

The petition form cover sheet which explained to petitioners the nature of the project, its total and per-parcel cost, filing and signature deadlines and requirements, the approved withdrawal prohibition, and the filing fee.

A letter/statement from Enstar Natural Gas dated August 20, 1999, stating the total linear feet on the project, cost per linear foot, and that they are prepared to construct the proposed improvement during the 1999 season (KPB 5.35.050).

7. Memo from the Finance Director, dated the 20^th day of August 1999, stating that in-house financing will be used and setting forth the number and frequency of payments.