HomeMy WebLinkAboutRes2021-016Sponsored by: Regis
CITY OF SEWARD, ALASKA
RESOLUTION 2021-016
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, CONFIRMING THE SPECIAL ASSESSMENT ROLL OF
THE GATEWAY SUBDIVISION IMPROVEMENT DISTRICT AND
PROVIDING FOR THE LEVY, PAYMENT TERMS, AND PENALTIES
OF THE SPECIAL ASSESSMENT DISTRICT, AND APPROPRIATING
FUNDS
WHEREAS, following apublic hearing held on January 27, 2020, the Seward City Council
authorized the construction of utility improvements described as the Gateway Subdivision Utility
Assessment District; and
WHEREAS, a special assessment district was created and will apportion the total cost of
the improvements equally among the thirteen (13) properties to benefit from the improvements;
and
WHEREAS, Ordinance 2020-006 authorized and appropriated $337,375 as the estimated
costs of the improvements; and
WHEREAS, the total costs of the improvements came in at $427,971.08, and when
apportioned among the thirteen (13) properties, results in total assessments to each property of
$32,920.86; and
WHEREAS, actual costs exceeded the previously -appropriated amount by $90,596.08, so
an additional appropriation is necessary; and
WHEREAS, the Seward City Council hereby finds that the method of apportioning costs
as attached hereto, is fair, and hereby establishes the Special Assessment Roll as attached hereto.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA that:
Section 1. The Special Assessment Roll for the Improvement District known as the
Gateway Subdivision Utility Assessment District; a copy of which is attached hereto and
incorporated herein by reference, is hereby approved and confirmed.
Section 2. Assessments are hereby levied against the properties set forth in the Special
Assessment Roll in the amounts listed opposite each property listed in said roll.
Section 3. Installment payments are hereby declared acceptable, with payments required
pursuant to the following schedule:
CITY OF SEWARD, ALASKA
RESOLUTION 2021-016
Annual Payment Date: November 1, 2021
Rate of Interest: Deferred or installment payments of special
assessments shall bear interest at an
annualized rate of the lesser of:
(1) the prime rate plus 4%, as the prime rate
is published in the Wall Street Journal's
Consumer Money Rates for the date the
resolution confirming the special
assessment roll is adopted; or
(2) 15 percent (15%).
Maximum Annual Installments: 10
Penalty for Late Payment: 10%
Section 4. Funding in the amount of $45,298.04 is hereby appropriated from the Water
Fund account 17000-0-3710-0-80070 to the Utility Improvement District infrastructure
account no. 80070-0000-8101.
Section 5. Funding in the amount of $45,298.04 is hereby appropriated from the
Wastewater Fund account 18000-0-3710-0-80070 to the Utility Improvement District
infrastructure account no. 80070-0000-8 10 1.
Section 6. This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 25"
day of January, 2021.
AYES:
NOES:
ABSENT:
ABSTAIN:
DeMoss, McClure, Casagranda, Bacl
None
None
None
n
CITY OF SEWARD, ALASKA
RESOLUTION 2021-016
ATTEST:
Brenda J. BalloukMMC
City Clerk
(City
C
1
SEAL
OF
,
Meeting Date: January 25, 2021
To: City Council
Through: Norm Regis, Acting City Manager
From: Sam Hickok, Acting Finance Director
Jackie C. Wilde, Community Development Director
Agenda Item: Assessment Roll for Gateway Subdivision Utility Improvement District
In May 2019, the City of Seward received a request to extend utility services and create the
Gateway Utility Improvement District. The City Utilities provided cost estimates to provide
service to the area, estimating a total cost of $337,375, to be divided among ten (10) parcels.
Resolution 2020-006 was introduced to the Seward City Council on January 13, 2020 and was
enacted following a second public hearing, on January 27, 2020, this resolution approved a
utility assessment district for the following lots: Lots 1, 2, 3, and 4, Block 3, and Lots 38, 39, 40,
41, 42, 43, and 44, Block 2, of Gateway Subdivision.
The developer worked with City Manager regarding adding additional Iots to the assessment due
to cost of expansion. The project required a 14-foot hole be dug to put the infrastructure in. This
hole would have to be dug again for future infrastructure expansion. The City Manager and
developer agreed to add the additional lots and put the needed infrastructure in now with an
adequate cost savings for the City and developer.
The project was completed at a total cost of $427,971.08, which is $90,596.08 over the original
cost estimate. These costs will now be assessed to the property owners who benefit from the
improvements, upon approval of the assessment roll by the City Council. With a total of thirteen
(13) properties being assessed, assessments will be $32,920.85 per lot.
Attached, is the assessment roll for the Gateway Improvement District containing property
descriptions, names of owners of record, and assessment amounts. Seward City Code 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 interests accrued as a result of
the improvement and all other costs resulting from the construction of the improvement." The
backup documentation supporting the costs of the improvement district is available in the finance
department.
No public hearing is required, due to the fact that the affected properties are owned by the
applicant of the assessment district. On January 25, 2021, the Council shall determine the
assessment roll. The resolution shall provide for the levy and repayment terms, including interest
rate, and proposed penalties for late payments. No payment shall be required within sixty days
after the resolution. Deferred or installment payments shall bear such interest as the City Code
may prescribe in the resolution. It should be noted that per SCC 5.20.092, if an assessment
installation payment is delinquent for more than six months after the due date, the entire
principal balance of the assessment, plus accrued interest and penalty on the principal balance,
shal-1 be immediatelk; due and Tarable. In the event the balance
becomes subject to foreclosure by the City.
;1; 1 . I UN-Vvqw-jIvswv
in the Wallstreet Journal Consumer Money Rates section on the day Council approves the
assessment roll. As of December 28, 2020, the prime rate was 3.25%. The maximum rate
allowed by State law for real property taxes is 15%, per AS 29.45.250. The administration
recommends that the interest rate for special assessments not exceed the maximum rate allowed
for property taxes. The administration further recommends that the penalty rate be set at 10%
which is the same rate used by the Kenai Peninsula Borough for delinquent payment of property
taxes, and the same rate used for the City's other special assessment districts. It is also
recommended that individuals desiring to finance their assessments, be allowed to finance them
over ten years, with annual installment payments beginning November 1, 2021. Annual
payments for a $32,920.85 assessment repaid over ten years at an interest rate of 7.25% are
$4,741.50.
INTENT: Confirm the special assessment roll of the Gateway Subdivision Utility Improvemen
District, providing for the levy, terms of repayment, and penalties of the special Improvemen
district.
CONSISTENCY CHECKLIST:
Cornprehensive Plan (document source here):ZI pg2-20 The rate of
housing developed outside city limits continues to outpace development
reasonably priced housing within Seivard such as zoning changes or ta r
increinentfinance. 13.5pg2-30 ... Some development within city linzits
is stymied by the lack of sufficient ivaterandsewerservice. 2.2.11 pg I-
10 Promote injill development by encouraging and promoting
cI' nstruction on vacant sites in areas of the city which are already
established.3.3.1 pg 1-14 Encourage development of new housing in
Seward. 3.3.1.2 pg 1-14 Create incentives to provide landfor housing
develII ment within the City of Seivard. 3.3.1.3 I 1-14 Assess solittion
to extend cost- effective utilities to hotne sites on land zonedfor
residential development. Authorize engineer studies to determine the
cost o f jtrili�y extensions todevelopable land with in the city.
Strategic Plan (document source here): pg 3 Growth Management and —
Land Use Planning. We have an attractive community in which to live
Work be e4cated and recreate where growth is orderly and driven by
cI' mmunity consensus Growth and land use planning are
coordinated through the collaboration Irivate andpithlic
entities We promote andfacilitate balanced development. Pg 5 Develop
infrastructure expansion plansfor currently undeveloped
residential and commercial property. pg 9 Pronzote Residential and
Commercial Development Inside the City Encourage constniction of
residential and seasonal housing at all market levels. Pg 18 Expand
availabty of affordable diverse year-round housing. Seward has a
ivide range of housing alternatives to meet the varied needs of
Seward s long term and seasonal residents.
her (list): MEN
FISCAL NOTE•
Council approved Resolution 2020-006, appropriating $337,375 for the Gateway Improvement
District. Actual costs came in $90,596.08 above the estimate, requiring an additional appropriation to
be split between the Water and Wastewater enterprise funds.
Approved by Finance Department:
ATTORNEY REVIEW: Yes NoX Not Applicable.
RECOMMENDATION•
Approve Resolution 2021- OXX, confirming the special assessment roll of the Gateway Subdivision
Utility Improvement District, providing for the levy, terms of repayment, and penalties of the special
Improvement district
January 26, 2021
CITY OF SEWARD, ALASKA
Notice of Levy of Assessments Gateway Subdivision Utility Assessment District
Pursuant to Seward City Code Chapter 5.20, the following; assessments have been levied by the City of
Seward, Alaska, for the cost of special improvements which were constructed and described as the
Gateway Subdivision Utility Assessment. District. The cost of the improvements have been apportioned
equally among; the thirteen (13) properties which will benefit from construction of the improvements. All
property owners were properly noticed of all hearings and actions of the Seward City Council with respect
to the assessments.
The assessments were levied by the passage of City of Seward Resolution 2021-016 on January 25,
2021. The affected property owners" names and addresses, the legal descriptions of the relevant parcels
of real property, and the assessment amounts are found on the attached table.
Dated this 251" day of January, 2021,
renda Ballou,AMC'
City Clerk
After recording, return to: Community Development
City of Seward
P.O. Box 167
Seward, AID 99664-0167
Attachment (1 page)
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