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Home My WebLink AboutRes2022-039 Zimmerman DRP Application Sponsored by: Bower Public Hearing: May 9, 2022 CITY OF SEWARD,ALASKA RESOLUTION 2022-039 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, DETERMINING IT IS IN THE PUBLIC'S INTEREST, AND NECESSARY, TO PROCEED WITH THE SPECIAL IMPROVEMENT DISTRICT FOR AND BENEFITTING,LOTS 33,34,35,36,AND 37 BLOCK 2, AND LOTS 4, 5, AND 6 BLOCK 3 OF THE GATEWAY SUBDIVISION, ADOPTING THE INITIAL ASSESSMENT ROLL, ACCEPTING THE CITY MANAGER'S RECOMMENDATION TO APPROVE THE APPLICATION RECEIVED FOR THE GATEWAY SUBDIVISION, AND AUTHORIZING AN EXPENDITURE IN THE AMOUNT OF$311,873 FOR WATER, SEWER, AND ELECTRICAL IMPROVEMENTS AND APPROPRIATING FUNDS WHEREAS, in January 2022, the City received a request to extend utility services and create an assessment district in the Gateway Subdivision; and WHEREAS, the Planning and Zoning Commission confirmed the criteria of the application were met; and WHEREAS, the departments of Community Development, Public Works, and Electric reviewed the request and provided cost estimates to furnish water,sewer,and electric service to the area; and WHEREAS,total estimated cost for the special improvement district is $311,873,and this cost will be divided and assessed on the 8 parcels of land; and WHEREAS,Administration has reported the costs and the need for improvements,and is requesting authorization to expend up to $311,873 for water, sewer, and electrical improvements in case of unforeseen expenditures; however,only the actual costs will be assessed; and WHEREAS,the City Manager recommends the developer be reimbursed 50%of the costs related to installation of public utilities through reduced special assessments; and WHEREAS, after the project is completed, the actual costs will be calculated to determine the final assessment and will be reassessed and recorded with the reduced assessment amounts, through a subsequent resolution adopted by the council; and WHEREAS, the Zimmerman Utility Improvement District is located inside City limits in the Gateway Subdivision. CITY OF SEWARD,ALASKA RESOLUTION 2022-039 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1. The special improvement district,referred hereto as the Zimmerman Utility Improvement District, will include the following area: Lots 4, 5, 6, Block 3, and Lots 33, 34, 35, 36, and 37, Block 2, of Gateway Subdivision. Section o 2. After full review by the City Council of all the facts and P opinions resented, P it is hereby determined that the proposed Zimmerman Utility Improvement District is in the public's interest, and necessary, and will benefit the properties to be assessed. Section 3. The City Council hereby accepts the City Manager's recommendation to approve the reimbursement of 50% of the costs related to the installation of public utilities and is hereby authorized to proceed with the design and construction of the Zimmerman Utility Improvement District. Section 4. The City Manager is hereby authorized and directed to keep account of all the costs and improvements, including acquisitions of interests in land for the improvements, including design, engineering, administration, overhead, professional services, guaranteed fund, bond, or loan costs and interest incurred as a result of the improvements, and all other costs resulting from the construction of the improvements. Section 5.Funding in the amount of$311,873 is hereby appropriated from the 800071- 0000-4700 Developer and Incentive and Reimbursement Fund. Section 6. After the project is completed, the actual costs will be calculated to determine the final assessment and will be reassessed and recorded with the reduced assessment amounts,through a subsequent resolution adopted by the council. Section 7. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the C'ty of Seward, Alaska, this 9th day of May, 2022. T E IT 0 EWA , ASKA sty Ter ,Mayo CITY OF SEWARD, ALASKA RESOLUTION 2022-039 AYES: DeMoss, McClure, Casagranda, Osenga, Calhoon, Terry NOES: None ABSENT: Wells ABSTAIN: None ATTEST: Brenda J. Ballo , MMC City Clerk (City Seal) .•( Of SFIy 4. : C>>.•O••)ORgi•• rO`o • •• SEAL •= G *set OF AV....* ....... City Council Agenda Statement r Meeting Date: April 25, 2022 � To: City Council Through: Janette Bower, City Manager -- From: Jason Bickling, Community Development Director Agenda Item: Resolution 2022-039: Determining it is in the Public's Interest, and Necessary, to Proceed with the Formation of a Special Improvement District for and Benefitting, Lots 33, 34, 35, 36, and 37 Block 2, and Lots 4, 5, and 6 Block 3 of the Gateway Subdivision, Adopting the Initial Assessment Roll, Accepting the City Manager's Recommendation to Approve the Application Received for the Gateway Subdivision, and Authorizing an Expenditure in the amount of $311,873 for Water, Sewer, and Electrical Improvements and Appropriating Funds Background and justification: In January of 2022, the City received a request to extend utility services and create an assessment district in the Gateway Subdivision for Lots 4, 5, 6, Block 3, and lots 33, 34, 35, 36, and 37, Block 2, in the Zimmerman Utility Improvement District. All properties above are owned by Mr. Zimmerman. On February 15, 2022, the Planning and Zoning Commission confirmed the criteria of the application were met, as per code. Administration has determined that the proposed Special Improvement District is in the public interest and necessary and will benefit the properties to be assessed. The Community Development, Public Works, and Electric Departments, have reviewed and provided cost estimates to furnish water, sewer, and electric service to the area. Based on recommendations from each department, the total estimated cost for the special improvement district is approximately, $311,873. City Code Section 5.20.035 states that"the costs of improvement shall be the actual costs of the improvement, design, engineering, administration, overhead, professional services, guaranteed fund, bond costs and interest incurred as a result of the improvement and all other costs resulting from the construction of the improvement." The City Manager recommends: ➢ The total estimated cost for the special improvement district be divided and assessed in full on the 8 parcels; ➢ The City will pay the invoices related to the actual costs; ➢ The developer be reimbursed 50%of the costs related to installation of public utilities through reduced special assessments; ➢ After the project is completed, the actual costs will be calculated to determine the final assessment and will be assessed and recorded with the reduced assessment amounts, through a subsequent resolution adopted by the council. This resolution will contain the levy, payment terms, and penalties for the special assessment district. The Manager's decision is based on: ➢ Seward Municipal Code 5, 22.030, subsection (a) - Mr. Zimmerman completed and filed the required application for reimbursement. ➢ Seward Municipal Code 5. 22.030, subsection (b) —the application is complete and filing fee paid in full. ➢ Seward Municipal Code 5. 22.030, subsection (c) — the Planning and Zoning Commission reviewed the application and found the applicant meets for the requirement for reimbursement. ➢ Seward Municipal Code 5. 22.030, subsection (e) — the required statement regarding properties owned within the special improvement district was provided, an itemized report concerning the estimated direct cost was provided, and a statement regarding the purpose and use of the property promoting public interest and compliance with the comprehensive plan was provided. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive 3.3.1: 3.3.1.1, 3.3.1.2, 3.3.1.3 Plan: Strategic Plan: Other: Certification of Funds Total amount of funds listed in this legislation: $ 311,873 This legislation (✓): Creates revenue in the amount of: $ X Creates expenditure in amount of: $ Creates a savings in the amount of: $ Has no fiscal impact Funds are (✓): X Budgeted Line item(s): 800071-0000-4700 Developer and Incentive and Reimbursement Fund Not budgeted Not applicable Finance Director Signature: Attorney Review✓ Administration Recommendation X Yes X Adopt Resolution Not applicable Other: