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Home My WebLink AboutRes2022-102 Harmon Developer Incentive CITY OF SEWARD,ALASKA Sponsored by: Bower RESOLUTION 2022-102 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ACCEPTING THE CITY MANAGER'S RECOMMENDATION TO APPROVE THE HARMON CONSTRUCTION DEVELOPER INCENTIVE AND REIMBURSEMENT PROGRAM APPLICATION WITH 50% REIMBURSEMENT OF THE WATER, SEWER,AND ELECTRICAL IMPROVEMENTS, IN AN ESTIMATED AMOUNT OF $161,565, AND APPROPRIATING FUNDS WHEREAS, on July 24 2022, the City Clerk received a Developer Incentive and Reimbursement Application requesting reimbursement for half the eligible costs to extend utility services to the Harmon Subdivision of 6 lots; and WHEREAS,the Harmon Subdivision is located inside City limits in the Forest Acres Subdivision; 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 utility improvements is estimated at, $323,130.00; and WHEREAS, after the project is completed, the actual costs will be calculated to determine the final costs; and WHEREAS,the City Manager recommends the developer be reimbursed 50%of the costs related to installation. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1. The special utility improvement district, referred hereto as the Harmon Utility Improvement District, will include the following area: Forest Acres Sub Lots BT, BB, BP (Lots B1, B2, B3, B4, B5, B6). Section 2. 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 Harmon Utility Improvement District. Section 3. The City Manager is hereby authorized and directed to keep account of all CITY OF SEWARD,ALASKA RESOLUTION 2021-102 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 4. Funding in the amount of$6,800 is hereby appropriated from the 80071- 0000-8101 Developer and Incentive and Reimbursement Fund, $73,015 from the 17100- 0000-8101 Water fund ARPA and $81,750 from the 18100-0000-8101 Sewer Fund ARPA for a grand total of$151,565.00 Section 5. After the project is completed, the actual costs will be calculated to determine the final reimbursement amount,through a subsequent resolution adopted by the City Council. Section 6. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 12th day of September, 2022. T T ,/ •11'11 le 4atr --- Christy Terry, ,ayor AYES: Calhoon, Casagranda, DeMoss, Osenga, McClure, Terry NOES: None ABSENT: Wells ABSTAIN: None ATTEST: rends J. Bal , MMC City Clerk .0's OFFte $ • �s• • f' �� 4%= E. 1= AL �: . = ,`''•+•,mist" City Council Agenda Statement Meeting Date: September 12, 2022wL! To: City Council Through: Janette Bower, City Manager From: Jason Bickling, Community Development Director Agenda Item: Resolution 2022-102: Accepting the City Manager's Recommendation to Approve the Harmon Construction Developer Incentive and Reimbursement Program Application with 50% Reimbursement of the Costs for Water, Sewer, and Electrical Improvements, in an Estimated Amount of $161,565, and Appropriating Funds Background and justification: On July 25, 2022, the City Clerk received a complete Developer Reimbursement Application from Harmon Construction to extend utility services for Forest Acres Sub Lots BT, BB, BP (Lots B1, B2, B3, B4, B5, B6). All properties above are owned by Mr. Harmon. The total estimated costs of the improvements are $323,130. The City Manager recommends: ➢ City council approval of reimbursement 50% of the costs related to installation of public utilities; ➢ After the project is completed, the actual costs will be calculated and Harmon Construction be reimbursed 50% of the actual costs. The Manager's decision is based on: ➢ Seward Municipal Code 5.22.010 —this project meets the code language's intent to increase installation of public utilities and property development with city boundaries. This project will extend utility services to 6 properties. ➢ Seward Municipal Code 5.22.035 B., - Mr. Harmon will follow this code provision and will privately finance the utility extension under the code terms. ➢ Seward Municipal Code 5, 22.075 A., - Mr. Harmon completed and filed the required application for reimbursement. ➢ Seward Municipal Code 5. 22.075 B., — the filing fee paid in full. ➢ Seward Municipal Code 5. 22.075 C., subsection (c) — the applicant is complete. Harmon Construction will pay all costs of the utility expansion up front and when the project is complete, will provide receipts to the city for reimbursement of half of the eligible utility improvements. The 50% reimbursement will occur at this time. Due to this process, an assessment district is not required. SCC 5.22.035 (B) states: 1. Extensions may be completed by a private developer who privately finances the utility extension under the terms of an agreement with the City. 2. The agreement with the City may provide for reimbursement to the developer for up to 50 percent of the costs of installing the utility extensions on undeveloped land. 3. A developer is not eligible for reimbursement until the extension has been completed. 591 The Community Development, Public Works, and Electric Departments, have reviewed and provided cost estimates to furnish water, sewer, and electric service to the area. The city will be using ARPA Funds to pay for the water and sewer expenses and the DRP Funds to pay for the remaining eligible expenses. Estimated Costs Totals Account Paid From DRP ARPA Engineering Water $ 7,030.00 $ 3,515.00 Engineering Sewer $ 10 000.00 $ 5,000.00 Water Install $ 139 000.00 $ 69 500.00 Sewer Install $ 153 500.00 $ 76 750.00 Electric $ 10 185.00 $ 5,092.50 Survey $ 3,415.00 $ 1,707.50 Totals $ 323 130.00 $ 6,800.00 $ 154 765.00 DRP 80071-0000-8101 $ 6,800.00 ARPA- Water 17100-0000-8101 $ 73 015.00 ARPA-Sewer 18100-0000-8101 $ 81,750.00 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: Certification of Funds Total amount of funds listed in this legislation: $ 161,565 This legislation (✓): Creates revenue in the amount of: $ X Creates expenditure in amount of: $ $161,565 Creates a savings in the amount of: $ Has no fiscal impact Funds are (✓): Budgeted Line item(s): $6,800 800071-0000-8101 DRP Fund x Not budgeted $73,015 17100-0000-8101 and $81,750 18100-0000-8101 Not applicable Unassigned Fund Balance and Available Unrestricted Cash Balance Information Fund (✓): General SMIC Electric Wastewater Boat Harbor Parking F1 Water F1 Healthcare Motor Pool x Other Available water/sewer ARPA funds: $ 577,195.00 x Other Available DRP funds: $ 923,814.90 Unassigned Fund Balance*: $ n/a *unaudited numbers Available Unrestricted Cash Balance*: $ n/a Finance Director Signature: 592 Attorney Review RYes Attorney Signature: X Not applicable Comments: Administration Recommendation XeAdopt Resolution Other: 593