HomeMy WebLinkAboutRes2022-116 Hilltop Devel Reimb Program Sponsored by: Bower
Public Hearing: November 28, 2022
CITY OF SEWARD,ALASKA
RESOLUTION 2022-116
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 FORMATION OF A SPECIAL
IMPROVEMENT DISTRICT FOR AND BENEFITTING, PROPOSED
LOTS 1-75 (T 1N R 1W SEC 33 SEWARD MERIDIAN SW 2013016
GATEWAY SUB ADDN NO 2 TRACTS C4,C5,C6&C7 TRACT C-4) OF
THE GATEWAY SUBDIVISION, ACCEPTING THE CITY MANAGER'S
RECOMMENDATION TO APPROVE THE DEVELOPER
REIMBURSEMENT APPLICATION RECEIVED FOR THE HILLTOP
PROPERTIES IMPROVEMENT DISTRICT, AND AUTHORIZING AN
EXPENDITURE IN THE AMOUNT OF $3,993,000 FOR WATER, SEWER,
AND ELECTRICAL IMPROVEMENTS, ROADS, PAVING, AND
APPROPRIATING FUNDS
WHEREAS,on October 4,2022,the City received a request to extend utility services
and create an assessment district in the 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 special improvement district is
approximately, $3,993,000, and this cost will be divided and assessed on the 75 parcels of
land; and
WHEREAS,Administration has reported the costs and the need for improvements,and is
requesting authorization to expend up to$3,993,000 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 the project 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 Hilltop Properties Utility Improvement District is located inside City
limits in the Gateway Subdivision.
111 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD,ALASKA
RESOLUTION 2022-116
CITY OF SEWARD,ALASKA that:
Section 1. The special improvement district, referred hereto as the Hilltop Properties
Utility Improvement District, will include the following area: Proposed Lots 1-75 of the
Gateway Subdivision (T 1N R 1W SEC 33 SEWARD MERIDIAN SW 2013016 GATEWAY
SUB ADDN NO 2 TRACTS C4,C5,C6&C7 TRACT C-4).
Section 2. After full review by the City Council of all the facts and opinions presented,
it is hereby determined that the proposed Hilltop Properties 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 projects costs and is hereby authorized to proceed
with the design and construction of the Hilltop Properties 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$734,000 is hereby appropriated from the 80071-
0000-8101 Developer and Incentive and Reimbursement Fund, $775,000 from the 17100-
0000-8101 Water fund ARPA and$1,059,000 from the 18100-0000-8101 Sewer Fund ARPA,
$1,425,000 from the Capital Acquisition Fund for a grand total of$3,993,000.00
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 City of Seward, Alaska,this 28th
day of November, 2022.
THE CITY OF SEWARD,ALASKA
Sue McClure, Mayor
CITY OF SEWARD, ALASKA
IIRESOLUTION 2022-116
AYES: Barnwell, Finch, DeMoss, Wells, Calhoon, McClure
NOES: None
ABSENT: Osenga
ABSTAIN: None
ATTEST:
Aeti
Brenda J. Ballo , MMC
City Clerk
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City Council Agenda Statement
Meeting Date: November 28, 2022
To: City Council
Through: Janette Bower, City Manager
From: Jason Bickling, Community Development Director
Agenda Item: Resolution 2022-116: Determining It Is In The Public's Interest, And
Necessary, To Proceed With The Formation Of A Special Improvement
District For And Benefitting, Proposed Lots 1-75 Subdivision (T 1N R 1W
SEC 33 SEWARD MERIDIAN SW 2013016 GATEWAY SUB ADDN NO 2
TRACTS C4,C5,C6&C7 TRACT C-4), Of The Gateway Subdivision, Accepting
The City Manager's Recommendation To Approve The Development
Reimbursement Application Received For The Hilltop Properties
Improvement District, And Authorizing An Expenditure In The Amount Of
$3,993,000 For Water, Sewer, And Electrical Improvements And
Appropriating Funds
Background and justification:
On October 4, 2022, the City received a request to extend utility services and create an
assessment district in the Hilltop Properties Subdivision for proposed Lots 1-75 (T 1N R 1W
SEC 33 SEWARD MERIDIAN SW 2013016 GATEWAY SUB ADDN NO 2 TRACTS C4,C5,C6&C7
TRACT C-4), in the Hilltop Properties Improvement District. All properties above are owned
by Hilltop Properties LLC.
Administration has determined that the proposed Special Improvement District is in the
public interest and necessary and will benefit the property 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, $3,993,000. 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 proposed 75 parcels;
➢ The City pay the invoices related to the actual cost as described above;
➢ The developer be reimbursed 50% of the project costs 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.
216
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.
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.
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: $
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): $73,4000 800071-0000-8101 DRP Fund, $1,425,000 CAFUND
Not budgeted $775,000 17100-0000-8101 and $1,059,000 18100-0000-8101
Not applicable
Unassigned Fund Balance and Available Unrestricted Cash Balance Information
Fund (✓):
General SMIC Electric Wastewater
Boat Harbor Parking R Water RHealthcare
Motor Pool Other
Unassigned Fund Balance*: $ *unaudited numbers
Available Unrestricted Cash Balance*: $
157
Finance Signature:
217
Attorney Review
RYes Attorney Signature:
X Not applicable Comments:
Administration Recommendation
XeApprove Resolution
Other:
218