MEMORANDUM
TO: Pete Sprague, Assembly President
Kenai Peninsula Borough Assembly Members
THRU: Dale Bagley, Borough Mayor
THRU: Shane Horan, Director of Assessing
FROM: Clyde Johnson, Special Assessment Coordinator
DATE: December 4, 2003
SUBJECT: Resolution 2003-124Char Subdivision USAD - Resolution of Necessity
INTRODUCTION:
A petition has been received for the purpose of forming a Utility Special Assessment District (USAD) in the Char Subdivision area located south of Soldotna along the Sterling Highway. This proposal allocates 100 percent of the costs to the 74 benefited parcels involved in the formation of the District. The first petition signature was dated July 28, 2003. All signatures were received by August 27, 2003, 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 (exhibit 4 to the resolution); a petition information sheet (exhibit 5 to the resolution); and a commitment letter from ENSTAR (exhibits 6 and 7 to the resolution). Signatures of owners for 52 parcels were needed to meet the more than 70 percent approval requirement of KPB 5.35.050; validated signatures for 52 parcels, or 70.27 percent were obtained (exhibit 1 to the resolution, Clerk's certification). Additionally, signatures for six more parcels were validated following the Clerk's certification, bringing the total number of signatures received on this project to 58.
PROJECT BACKGROUND:
1) The project cost is estimated at $161,810 (ONE HUNDRED SIXTY-ONE THOUSAND EIGHT HUNDRED TEN DOLLARS).
2) 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 $2,186.62. 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 main line is the same for all parcels.
3) As required by KPB 5.35.070(C) no lien for this project may exceed 21 percent of the fair market value of the property, after giving effect to the estimated benefit from the improvement. Within this proposed project there are four (4) lots that exceed the 21 percent limitation. In order to reduce the liens to the allowable level an amount of $2,184.72 must be submitted prior to the adoption of the resolution to proceed with the construction of the improvement.
4) Pursuant to KPB 5.35.070(D), a special assessment district may not be approved where properties that will bear more than 10 percent of the estimated costs of the improvement are delinquent in payment of borough property taxes from the immediately preceding year. For this project the immediately preceding tax year is 2002. As of today's date, November 26, 2003, one lot within the proposed district, or 1.39 percent, is delinquent in payment of their 2002 property tax.
5) The following list of exhibits to the resolution support and are incorporated by reference in the Resolution of Necessity:
1. The Clerk's certification of the petition, dated October 23, 2003;
2. 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 percent), 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.
3. The estimated assessment roll including the tax parcel identification number, legal description, estimated assessment per parcel, assessed value, owners name and mailing address;
4. A map of the proposed district showing the benefited parcels, which benefited parcels are improved, and the proposed course of the mainline;
5. 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.
6. A letter/statement from Enstar Natural Gas dated July 8, 2003, stating the total linear feet on the project, cost per linear foot, and that they are prepared to construct the proposed improvement during the 2003 season (KPB 5.35.050).
7. Supplemental letter/statement from Enstar Natural Gas, dated November 25, 2003 stating that if approved by Kenai Peninsula Borough Assembly at the December 16, 2003 meeting the project would be constructed during the 2004 construction season at the 2003 construction rates
8. Memo from the Finance Director dated the 27th day of October 2003, stating that in-house financing will be used and setting forth the number and frequency of payments.