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Home My WebLink AboutRES2026-048 DRP Application - DarlingSponsored by: Sorensen Amended & Approved: May 11, 2026 CITY OF SEWARD, ALASKA RESOLUTION 2026-048 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING THE DEVELOPER REIMBURSEMENT PROGRAM APPLICATION SUBMITTED BY RESURRECTION BAY INVESTMENTS FOR ELECTRICAL EXTENSIONS BENEFITING LOTS 1-11, WITHIN THE MOUNT ALICE ESTATES DEVELOPMENT, AND AUTHORIZING AN EXPENDITURE IN THE AMOUNT OF $48,233 AND APPROPRIATING FUNDS WHEREAS, on April 13, 2026, the City Council held a work session to review Developer Reimbursement Program applications and directed administration to return with resolutions funding each applicant at 50 percent; and WHEREAS, Resurrection Bay Investments LLC has submitted a full application requesting participation in the Developer Reimbursement Program for the extension of electrical infrastructure to serve properties within the Mount Alice Estates development; and WHEREAS, the subject properties are proposed lots within the Mount Alice Estates development, which are anticipated to be subdivided into approximately 14 parcels and currently require extension of electrical service from Nash Road to the end of Darling Circle to allow for future residential development; and WHEREAS, the total estimated cost of the project is approximately $96,466, and the property owner will pay for the installation of public improvements upfront, utilizing Reimbursement Method 2, with the City reimbursing up to 50 percent of eligible costs through the Developer Reimbursement Program in the amount of $48,233; and WHEREAS, Administration has determined that the proposed project is in the public's interest, is necessary, and will benefit the properties to be served; and WHEREAS, following completion of the project, actual costs will be finalized, and a subsequent resolution will be brought forward to Council to establish final reimbursement terms in accordance with the Developer Reimbursement Program. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA: Section 1. Special Improvement District, referred hereto as the Mt. Alice Estates Improvement District, will include Lots 1-11, within the Mount Alice Estates Development (Legal Description: SEWARD MERIDIAN SW EI/2 NE1/4 & GOVT LOTS 4 & 5 EXCLUDING NASH ROAD ROW) CITY OF SEWARD, ALASKA RESOLUTION 2026-048 Page 2 of 3 Section 2. After full review by the City Council of all the facts and opinions presented, it is hereby determined that the proposed improvements are in the public's interest, are necessary, and will benefit the properties to be served. Section 3. The City Council hereby approves reimbursement of 50 percent of the costs related to the installation of the electrical improvements and authorizes the City Manager to proceed with the design and construction of the Utility Improvement District. Section 4. Reimbursement authorized under this resolution is contingent upon the developer providing documentation, signed and sealed by a licensed professional engineer, demonstrating that adequate onsite wells and septic systems are feasible and sustainable for each lot within the subdivision in accordance with applicable regulatory requirements, such that all required improvements necessary for issuance of building permits can reasonably be achieved. Section 5. The City Manager is hereby authorized and directed to keep account of all costs associated with the improvements, including acquisition of interests in land, design, engineering, administration, overhead, professional services, bond or loan costs, and all other costs resulting from the construction of the improvements. Section 6. Funding in an amount not to exceed $48,233 is hereby appropriated from the Developer and Incentive and Reimbursement Fund (80071-0000-8101-0191), and other applicable funds as determined necessary, for reimbursement of eligible costs associated with this project. Section 7. Following completion of the project, actual costs will be calculated, and a subsequent resolution will establish final reimbursement terms in accordance with the Developer Reimbursement Program. Section 8. This resolution shall take effect immediately upon adoption. APPROVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA THIS 11'h DAY OF MAY 2026. Sue McClure, Mayor CITY OF SEWARD, ALASKA RESOLUTION 2026-048 Page 3 of 3 AYES: NOES: ABSENT: ABSTAIN: ATTEST: Warner, Barnwell, Crites, Draper, Calhoon, McClure None Osenga None 7' Kris Peck City Clerk City Council Agenda Statement Meeting Date: May 11, 2026 To: City Council Through: Kat Sorensen, City Manager From: Daniel Meuninck, Community Development Director Subject: Resolution 2026-048: Approving the Developer Reimbursement Program Application Submitted by Resurrection Bay Investments for Electrical Extensions benefiting Lots 1-11, within the Mount Alice Estates Development and Authorizing an Expenditure in the Amount of $48,233 and Appropriating Funds Background and justification: On April 13, City Council held a work session to review Developer Reimbursement Program (DRP) applications. At that time, Council directed administration to return with resolutions funding each applicant at 50 percent. Administration has determined that the proposed project is in the public interest, is necessary, and will benefit the properties to be served. City Code Section 5.20.035 states that "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." The proposed improvements include extension of electrical infrastructure from Nash Road to the end of Darling Circle to serve the proposed lots. The total estimated cost of the project is approximately $96,466. The property owner will pay for the installation of public improvements upfront, and the City will reimburse up to 50 percent of eligible costs, utilizing Reimbursement Method 2, not to exceed $48,233, in accordance with the Developer Reimbursement Program. Following completion of the project, actual costs will be finalized. A subsequent resolution will be brought forward to Council to establish final reimbursement terms in accordance with the Developer Reimbursement Program. All utility installations are subject to the Development's Subdivision Agreement and all applicable codes and permits. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: 3.3.1: 3.3.1.1., 3.3.1.2., 3.3.1.3 Strategic Plan: Other: Total amount of funds listed in this legislation: This legislation (✓): Creates revenue in the amount of: Creates expenditure in the amount of: Creates a savings in the amount of: X Has no fiscal impact Funds are (✓): Budgeted Line item(s): 80071-0000-8101-0191 X $ $48,233 $ $48,233 Not budgeted Not applicable Fund Balance Information Affected Fund (✓): General Boat Harbor Motor Pool X SMIC Parking Other Net Position as of 04/30/2026 Yes Electric Water DRP FUND Attorney Signature: Not applicable Comments: Wastewater Healthcare Note: amounts are unaudited $ 3,417,807 Finance Director Signature: Administration Recommendation HAdopt Resolution Other: