HomeMy WebLinkAboutORD2023-016 Amending City Code 5.20 Improvement Districts Sponsored by: Regis
Introduction: June 12,2023
Public Hearing: June 26, 2023
Enactment: June 26, 2023
CITY OF SEWARD,ALASKA
ORDINANCE 2023-016
An Ordinance of the Seward City Council, Amending Seward City Code
Chapter 5.20 Improvement Districts
WHEREAS,there is a need to provide a mechanism in code for the City Council to,when
funds are available, provide for up to 50 percent of the costs of extending public utilities to
property owner's undeveloped property in order to incentivize installation of public utilities and
residential development within city boundaries.
NOW,THEREFORE,THE CITY OF SEWARD ORDAINS that:
Section 1.Seward City Code 5.20 is amended to read as follows(new language is in bolded
italics and underlined and deleted language is stricken):
Chapter 5.20. Improvement Districts
5.20.010 Authority and Intent
(LA special improvement district may be initiated either by council or by petition from
property owners for any public improvements.
(b) It is the intent of this chapter to permit the city, when funds are available, to pay for
a portion of the costs of extending public utilities to the undeveloped property in order
to incentivize installation of public utilities and property development within city
boundaries.
5.20.015 Initiation.
(a) Initiation by petition. Improvement districts and assessments may be initiated by petition to
the council of the owners of up to one-half in value of the property to be benefitted. A
petition shall be in a form prescribed by the city manager which shall include a description
of the improvementg sought by the petition as well as a list of the parcel(s) to be
bene rted.
h' h ill b t 1 t 50 p nt oft a sti..mated cost o f the ; ' ' '' -
petition. The petition,when signed, shall be filed with the city clerk.
(b) Initiation by council. The council by motion or other action may direct the city manager to
make a survey and report on a proposed council initiated special improvement district.
CITY OF SEWARD,ALASKA
ORDINANCE 2023-016
5.20.020 Reports on necessity, cost,etc.
Upon receipt by the city manager of the petition from the city clerk, or upon direction of the
council,the city manager shall make a survey and report to council concerning the need for and
desirable extent and estimated cost of each proposed local improvement. The report shall contain
a map or legal description of the proposed district. After completion of the report, a public
hearing shall be held.
5.20.025 Hearings on necessity.
(a) Purpose. The hearing shall determine whether the proposed improvement district is in the
public interest and necessary.
(b) Notice.
(1) Notice of the public hearing shall be published in a newspaper of general circulation in
the city at least once a week for four consecutive weeks prior to the time fixed for the
hearing, and the fourth publication shall occur at least one week prior to the hearing.
The city clerk shall send a written notice by first class mail at least 15 days prior to the
time of hearing to each owner of property to be assessed.
(2) The notice shall include a summary of the improvement,the designation of the
properties to be assessed in the special improvement district,the purpose of the public
hearing and the time and place fixed for the public hearing. Mailed notices shall
include a designation of the addressee's property to be assessed. Each notice shall
generally inform the property owner of the manner and method of protesting or
objecting to the action to be taken at the public hearing.
(c) Written protests. If protests in writing are made by the owners of property who shall bear 50
percent or more of the estimated cost of the improvement,the council shall not proceed with
the improvement until the protests have been reduced to less than 50 percent, except upon
the approval of not less than few the members of the council.
(d) Changes and revisions. After hearing all interested persons favoring or opposing the
proposed improvement,the council may decrease the extent or value of the improvement,
and may delete from the district properties not benefited by the improvement.
5.20.030 Resolution to proceed.
After the public hearing is closed, council shall adopt or reject a resolution to proceed with
the proposed improvement. The resolution to proceed shall find that the improvement is
necessary and will benefit the properties to be assessed. The findings of the council are
conclusive. The resolution shall require an account to be kept of all costs of the improvements
and direct the proper city official to proceed with design and construction of the improvements
subject to acquisition of the necessary financing.
(Ord. 425, 1976; Ord. 93-18)
CITY OF SEWARD,ALASKA
ORDINANCE 2023-016
5.20.035 Computation of assessments.
(a) Costs of improvements. The costs of an improvement shall be the actual costs of the
improvement, including acquisition of interests in land for the improvement, design,
engineering,administration, overhead,professional services,guarantee fund,bond costs and
interest incurred as a result of the improvement and all other costs resulting from the
construction of the improvement.
(b) Method of apportionment. All property included within the improvement district shall be
considered and held to be all the property specially benefited by such public improvement
and shall be the property to be assessed to pay the cost and expense thereof. Council may
determine upon and use any method for spreading the assessment among the properties
within the district,which bears a reasonable relationship to the benefit received by the
properties.
(c) Assessment roll. After the improvement has been completed and the costs of the
improvement computed, the city manager shall prepare an assessment roll for the district.
The special assessment roll shall contain property descriptions, names of owners of record
and assessment amounts. When the assessment roll is completed,the council shall fix a time
and place for a public hearing on objections to the assessment roll.
5.20.040 Hearings on objections to assessment roll.
(a) Purpose. The hearing shall provide affected property owners the right to object to the
method of apportionment used in the assessment roll.
(b) Notice.
(1) Notice of the public hearing shall be published in a newspaper of general circulation in
the city at least once a week for four consecutive weeks prior to the time fixed for the
hearing, and the fourth publication shall occur at least one week prior to the hearing.
The city clerk shall send a written notice by first class mail at least 15 days prior to the
time of hearing to each owner of property to be assessed.
(2) The notice shall include a summary of the improvement,the designation of the
properties to be assessed in the special improvement district,the purpose of the public
hearing and the time and place fixed for the public hearing. Mailed notices shall state
the amount of assessment against the particular tract. Each notice shall generally
inform the property owner of the manner and method of protesting or objecting to the
method of apportionment.
(c) Correction to the roll. All persons concerned shall have a right to present their objections to
the assessment and to point out errors and inequalities and submit such reasons for
amendments and corrections as they may have. Council shall have power to vary the
assessments in individual cases where the property assessed is not benefited commensurate
with the amount of the assessment. After the council has heard all objections and
suggestions, it shall correct all errors. When the roll is finally determined,the city clerk
shall so certify.
CITY OF SEWARD,ALASKA
ORDINANCE 2023-016
5.20.045 Resolution on assessments.
After the public hearing and determination of the assessment roll,the council by resolution
shall confirm the special assessment roll of the special assessment district. The resolution shall
provide for the levy and payment schedule of the assessments.No payment shall be required
within 60 days after the resolution. Deferred or installment payments shall bear such interest as
the city council may prescribe in the resolution.
5.20.050 Notice of assessment.
Within ten days after final passage of the resolution levying the assessment, the city clerk
shall mail,postage prepaid, a notice to the owner of each property assessed, which notice shall
designate the property,the amount of the assessment,the time of delinquency and the amount of
penalty. Within five days after the notices have been mailed,the clerk shall file his affidavit
setting forth such mailing,which affidavit shall be conclusive as to the facts therein set forth.
5.20.055 Receipts from special assessments.
Accounts for special assessment rolls shall be created and maintained in accordance with
generally accepted governmental accounting principles. Moneys collected from special
assessments shall be used solely to pay the cost of the improvements to which they apply and to
the principal of and interest on indebtedness to the city.
5.20.060 Premature expenditures.
No expenditures,other than for administrative engineering and legal work for any local
improvement,the cost of which is to be borne by special assessments on the property benefited,
shall be made unless the cash is on hand or bonds have been authorized to finance the cost
thereof.
5.20.065 Special assessment bonds—authorized.
The council may by ordinance authorize the issuance and sale of special assessment bonds
to pay all or part of the cost of an improvement in a district.
5.20.070 Special assessment bonds—guarantee fund.
Before the council may issue special assessment bonds, it shall establish a guarantee fund
and appropriate to the fund annually a sum adequate to cover any deficiency in meeting
payments of principal and interest of bonds issued by reason of nonpayment of assessments
when due. In anticipation of delinquent assessments there may be added to each separate
assessment appearing on the assessment roll a sum not less than three percent nor greater than
ten percent of the assessment.
5.20.075 Penalty.
Penalty for late payment of assessments shall be set in the resolution confirming the special
assessment district.
CITY OF SEWARD,ALASKA
ORDINANCE 2023-016
5.20.080 Assessment of all benefiting property.
The council may assess for an improvement any real property, or any interest in real
property, and the property specially benefited may include abutting,adjoining,adjacent,
contiguous,noncontiguous or other property or interest in property benefited directly or
indirectly by the improvement. The property to be assessed may include any property which is
otherwise, for any reason, exempt from taxation by law.
5.20.085 Property owner.
. The person whose name is listed on the latest tax roll as the owner of the property to be
assessed is presumed to be the legal owner of the property. If the property owner is unknown, the
property may be assessed in the name of the "unknown owner." No assessment is invalidated by
a mistake, omission or error in the name of the owner if the property is correctly described.
5.20.090 Assessments to be lien on property.
Such assessment shall be a lien upon the property assessed from the time the assessment is
levied, which lien shall be paramount and superior to any other lien heretofore or hereafter
created whether by mortgage or otherwise,except a lien for prior assessments and for general
taxes, and shall be payable at such time as city council may prescribe and may be enforced in the
same manner provided for the collection and enforcement of general taxes.
5.20.092 Delinquent assessment installments.
Upon the delinquency of an assessment installment there shall be due and payable in
addition to the delinquent installment a penalty on the delinquent installment determined in
accordance with the resolution
confirming the assessment roll. Notice of the delinquency shall be mailed to the owner of
record. The notice shall describe the delinquency and state that the entire principal balance of the
assessment,plus accrued interest and penalty on the principal balance, shall be due and payable
if the delinquent installment,plus penalty and interest, is not paid within six months of the date
of the delinquency. A delinquency in the payment of an installment is cured by payment of the
delinquent installment,plus penalty and interest,within six months of the date of the
delinquency. If a delinquent installment,plus penalty and accrued interest, is not paid within six
months of the date of the delinquency,the entire principal balance of the assessment,plus
accrued interest and penalty on the principal balance, shall be due and payable.
5.20.095 Foreclosure of liens for unpaid assessments.
Liens for unpaid assessments shall be foreclosed and the property sold in the same manner
as provided for foreclosure of property for taxes.
CITY OF SEWARD,ALASKA
ORDINANCE 2023-016
5.20.100 Assessments to be binding.
The regularity or validity of assessments as provided herein may not in any manner be
contested or questioned by any proceeding whatsoever by any person not filing objections to
such assessment roll prior to the confirmation thereof.
5.20.105 Appeals.
The decision of council upon any objective may be reviewed by the state superior court in
the manner prescribed by law and city charter.
5.20.110 Reassessments—Invalidation of original assessment.
Whenever an assessment provided for in this chapter is set aside, annulled or declared void,
or its enforcement refused by a court of the state or the United States,whether directly or by
virtue of a decision of a court,the council may,by ordinance or resolution, make a new
assessment or reassessment upon the lots,blocks or parcels of land benefited by the
improvement. The reassessment shall be based on the special and peculiar benefit of the
improvement to the respective parcels of land assessed at the time it was originally made.
5.20.115 Reassessments—Valid notwithstanding irregularities.
The proceedings required by law to be taken before the making of an original assessment
are not required to be taken in connection with a reassessment under this chapter. The
reassessment shall be made and become a charge upon the property notwithstanding the
omission, failure or neglect of an officer,body or person to comply with the provisions of law
relating to improvement and assessment,and whether or not the proceedings of the council or a
person connected with the work may have been irregular or defective and whether or not an
irregularity was jurisdictional.
Section 2.This ordinance shall take effect ten days following enactment.
ENACTED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA,this
26th day of June,2023.
THE CITY OF SEWARD, ALASKA
Sue McClure,Mayor
woo,
CITY OF SEWARD,ALASKA
ORDINANCE 2023-016
AYES: Osenga, Finch, Barnwell, DeMoss, Calhoon, Wells, McClure
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
Kris Peck
City Clerk
(City Segl0tItnu..l••.
of sEryq•.•,
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City Council Agenda Statement
Meeting Date: June 12, 2023
To: City Council
From: Norm Regis, Acting City Manager
Subject: Ordinance 2023-016: Amending Seward City Code Chapter 5.20
Improvement Districts
Background and justification:
During the Seward City Council Special Meeting on May 8t", Council directed City Administration
to bring forward an Ordinance to address the needed modifications to Title 5 which would allow
the City to provide a mechanism for assisting private property owners in the installation of public
utilities which are required for residential development. Although the City has a current program
for assisting Developers, no such mechanism is in place for private landowners. Recently, a
petition was filed by several landowners inside City limits, but no code language existed for City
Council to provide financial assistance for the cost of the utilities. Additional discussion needs to
take place regarding funding such a program as well if this ordinance passes.
Code Sections affected by this Ordinance:
Amended Section Section Title Amendment
5.20.010 Author[ and Intent Added"intent"to the headin
5.20.010 a Authority and Intent Added section b to provIde a mechanism for City Financial ContrlbUtlon
5.20.015 a Initiation Added verbiage requIrInq the list of parcels to be included in the petition
5.20.015 a Initiation Removed 50%cost provIslon as that info is unknown at the time of petition
5.20.015 a Initiation Added verbiage to incorporate A5 29.46 verbia e re ardin 50%of property value representation
5.20.025 c Hearinq on Necessity Incorporated A5 29.46.1020 b
Comprehensive and Strategic Plan Consistency Information
This legislation is consistent with (citation listed):
Comprehensive Plan: 3.3 Housing
Strategic Plan:
Other:
Certification of Funds
Total amount of funds listed in this legislation: $ 0
This legislation (✓):
Creates revenue in the amount of: $
Creates expenditure in amount of: $
Creates a savings in the amount of: $
x Has no fiscal impact
Funds are (✓):
Budgeted Line item(s):
Not budgeted
x Not applicable
Fund Balance Information
Affected Fund (✓):
General SMIC Electric Wastewater
Boat Harbor Parking R Water Healthcare
Motor Pool Other
Note:amounts are unaudited
Available Fund Balance: $ n/a
Finance Director Signature: ' ._
Attorney Review
x Yes Attorney Sam Severin
Signature:
Not applicable Comments:
Administration Recommendation
x Adopt
Ordinance
Other:
City of Seward
City Manager's Office -
PO Box 167 • Seward, AK 99664
907-224-3331
www.citvofseward.us
Improvement District— Citizen Initiated
Petitioner and Alternate Petitioner Information
Please list the petitioner and alternate petitioner information. The petitioner is the spokesperson
for the Improvement District. The alternate petitioner speaks on the behalf of the petitioner when
the petitioner is unavailable.
Petitioner:
Name:
Address:
Email:
Phone number(s):
Alternate Petitioner:
Name:
Address:
Email:
Phone numbers :
Improvement District Information
Please provide a description of the improvement sought by the petition, along with the location
of the improvement.
Information Regarding Petition Process
Seward City Code 5.20.15 (a) requires the attached petition to be signed by the owners of
property which will bear at least 50 percent of the estimated cost of the improvement sought by
the petition. When the petition is signed, the petition is filed with the City Clerk's Office.
The city clerk will certify the petition and forward it to the city manager. The city manager will
prepare a survey and report in the form of a resolution to the city council concerning the need
for and the desirable extent and estimated cost of the improvement district. A public hearing will
be held on the resolution. The city clerk will notify each property owner in the improvement
district, of the date and time of the public hearing, 15 days prior to the time of public hearing.
The city council will hold the public hearing and will either adopt or reject the resolution to proceed
with the improvement. After hearing all interested persons favoring or opposing the proposed
improvement, the council may decrease the extent or value of the improvement, and may delete
from the district, properties not benefited by the improvement. The findings of the council are
conclusive.
For office use only
Date petition received: Received by:
City clerk certification:
Certified: 0 Yes ❑ No Date certified:
Reason for denial:
Date forwarded to city manager:
City council agenda date:
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