MEMORANDUM

To: Gary Superman, Assembly President

Kenai Peninsula Borough Assembly Members

Thru: Dale Bagley, Borough Mayor

Thru: Shane Horan, Director of Assessing

From: Clyde Johnson, Special Assessment Coordinator

Subject: Pollard Loop USAD - Resolution to Proceed

Date: June 29, 2005

The purpose of the Resolution to Proceed is to authorize the Borough to take the necessary steps to authorize ENSTAR Natural Gas Company to construct the natural gas main line. The Resolution to Proceed establishes the parcels to be included in the project, along with each parcel's estimated assessment.

The Resolution of Necessity, resolution 2005-046, was adopted on June 7, 2005, and the 30-day objection period ended on July 7, 2005. KPB 5.35.120 states that if objections have not been received from owners of lots or parcels bearing one-half or more of the estimated costs of improvement, the assembly shall, within thirty days, consider a resolution determining to proceed with the proposed special assessment project. As of June 29, 2005 two (2) written objections were received from parcel owners within the proposed project.

The individual assessment for each parcel in the USAD is estimated at $2,156.69 as set forth in the estimated assessment roll attached to the Resolution to Proceed. The total project cost is $174,691.89.

As required by KPB 5.35.070(C) 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 proposed project there are two (2) lots that exceed the 21% limitation. In order to reduce the liens to the allowable level an amount of $1,097.57 must be submitted prior to the adoption of the resolution to proceed with the construction of the improvement.

Approval of the Resolution to Proceed authorizes the Mayor to enter into an agreement to proceed with the construction of the project and to record liens on the benefited parcels detailed on the estimated assessment roll. As previously indicated in the Resolution of Necessity the intended means of financing this project is by an inter-fund loan from the Borough general fund.

Please feel free to contact me if you have any questions.