MEMORANDUM
TO: Timothy Navarre, Assembly President
Members, Kenai Peninsula Borough Assembly
THRU: Dale Bagley, Mayor
THRU: Holly B. Montague, Assistant Borough Attorney
FROM: Gary Davis, Roads Director
DATE: March 22, 2001
SUBJECT: Ordinance 2001-05 establishing a road service area ("RSA") match program
At its March 6, 2001 meeting, the RSA board voted in favor of the borough RSA match program for pavement projects. Additionally, the board approved proposed amendments to also allow a match program to bring substandard roads to borough standards in order to provide an additional service to taxpayers within the RSA who do not own property on borough-maintained roads. The suggested funding is $150,000 for the pavement match program and $25,000 for the substandard road match program. However, funding the programs is not done through this ordinance, but will rather be part of the budget process.
The RSA recommends the following amendments. Suggested language to be added is shown bold, underlined, and italicized, and suggested deletions are shown [bracketed, bold, and italicized].
1. Amend the title as follows
AN ORDINANCE ENACTING KPB 5.20.170 AND KPB 14.31.055 ESTABLISHING A ROAD SERVICE AREA RIAD [PAVEMENT] MATCH FUND AND [PAVEMENT] MATCH PROGRAM
2. Amend the third whereas clause as follows:
WHEREAS, pavement reduces maintenance costs and provides improved roads for residents within the road service area providing a borough contribution of up to 25 percent of the costs of a road improvement assessment district ("RIAD") project will encourage participation in this road improvement program; and
3. Add the following as the fourth whereas clause:
WHEREAS, improving substandard roads to RSA maintenance standards is a way of providing an additional service to property owners within the RSA whose properties are not currently accessed by a borough-maintained road; and
4. Amend Section 1 as follows:
SECTION 1. That KPB 5.20.170 is hereby enacted to read as follows:
5.20.170. Road improvement assessment district (RIAD) [Pavement] Match Fund.
The Kenai Peninsula Borough Road Service Area RIAD [Pavement] Match Fund is established to receive, account, and disburse funds for road improvement assessment district project costs set forth in KPB 14.31.110. The fund shall earn interest at the rate for the borough's investment pool. Appropriations and disbursements from the fund are to be used solely to defray the costs associated with road improvement assessment districts formed pursuant to KPB 14.31. The Road Service Area fund provides capitalization of the RIAD [Pavement] Match Fund. The RIAD [Pavement] Match Fund shall be used only for projects which proceed through construction. Monies remaining in the fund at the end of the fiscal year will not lapse.
5. Amend Section 4 as follows:
SECTION 4. That KPB 14.31.055 is hereby enacted to read as follows:
14.31.055. Road Service Area [Paving] Match Program.
A. There is established pursuant to KPB 5.20.170 a borough match program for pavement projects for roads certified for borough maintenance and gravel projects for roads not certified for maintenance in order that they may be certified for maintenance. The road service area board may authorize that up to 25 percent of the costs of a RIAD be defrayed from this fund subject to the assembly's annual appropriation to the fund.
B. The annual deadline application for the [pavement] match program is June 1 of each year.
C. The road service area board shall consider the following factors in evaluating applications for the [pavement] match program:
1. for purposes of the pavement match program, whether the road is certified for borough maintenance;
2. for purposes of the gravel match program, whether it is economically feasible to improve the road to RSA certification standards;
[2] 3. to what extent do the assessed values of properties support the scope of work for each project;
[3]4. the number of applications for projects received that year;
[4]5. the funds available in the Road Improvement Assessment District [Pavement] Match Fund;
[5]6. whether an application for district formation has been previously filed and whether conditions have changed to make the project more feasible than in past application years;
[6]7. the number of residents served;
[7]8. the number of parcels served; [and]
[8]9. the feasibility of the project's compliance with KPB 14.31.080 criteria regarding restrictions on formation[.]; and
10. whether there is alternate access to properties served by the road and the condition of that alternate access.
D. The road service area board may adopt procedures by board resolution for implementation of this program consistent with this chapter.
5. Amend Section 5 as follows:
SECTION 5. That KPB 14.31.110 is hereby amended as follows:
14.31.110. Costs assessed.
The assembly shall assess against the benefitted parcels [one hundred percent of all] costs of the improvement that are allowable under AS 29.46.110 which are not subject to the road service area [pavement] match program, including without limitation costs of land acquisition, design, engineering, administrative overhead, professional services, financing costs and interest; provided that the assessment allocated to a parcel shall be reduced by the amount of any prepayment for that parcel under KPB 14.31.080(A).
6. Amend Section 6 as follows:
SECTION 6. Notwithstanding KPB 14.31.055(B), the deadline for applications for the [pavement] match program for FY-2002 shall be October 1, 2001.
7. Amend Section 7 as follows:
SECTION 7. That this ordinance takes effect immediately upon its enactment. RIADS initiated in FY-01 may apply for contribution from the RIAD Pavement Match Fund established under KPB 5.25.170 pursuant to the provisions of KPB 14.31.055.