MEMORANDUM

KENAI PENINSULA BOROUGH

LEGAL DEPARTMENT

144 N. Binkley Street Tel. (907) 262-8609

Soldotna, Alaska 99669 Fax (907) 262-8686

TO: Members, Kenai Peninsula Borough Assembly

THRU: Bill Popp, Assembly President

FROM: Holly B. Montague, Assistant Borough Attorney

DATE: January 3, 2000

SUBJECT: Amendments to KPB 14.31

Please find attached an ordinance amending KPB 14.31 regarding road local improvement districts. The petition to form a road LID which is circulated within the proposed improvement district includes an engineer's estimate of construction costs. However, actual construction costs may vary from the engineer's estimate which is disallowed by KPB 14.31.090(G) without seeking the nonobjection of the petitioners. There may often, if not always, be a variance between the engineer's estimate and actual construction costs. The engineer's estimate cannot necessarily account for factors such as changed market conditions, survey or right-of-way problems that may require resolution, or untested subbase concerns. The ordinance amendment would allow the construction costs to exceed the engineer's estimate by no more than 25%. If the construction costs exceed the engineer's estimate by more than 25%, then the assembly shall hold an additional public hearing and may approve the district if objections are not received by owners bearing one-half the costs of the improvement project. Additionally, an amendment to KPB 14.31.120 is made to the ordinance allowing an equal allocation of the costs among the lots in a proposed district. This method of assessment is particularly appropriate where lots may vary in area, but not greatly, and all or most lots are subject to residential use and are not further subdividable.