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HomeMy WebLinkAboutRES2023-029 Forest Acres Improvement District - FAILED FAILED Sponsored by: Bower Public Hearing: March 28, 2023 CITY OF SEWARD, ALASKA RESOLUTION 2023-029 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, DETERMINING IT TO BE IN THE PUBLIC INTEREST AND NECESSARY TO PROCEED WITH THE PROPOSED IMPROVEMENT DISTRICT FOR AND BENEFITING LOTS 17, 18, 19,20,21,CR,CQ1,CQ2, CD, CF1, CF2, CG2, CP2, CG1, CP1, CO, CH, AX, AY, AZ, BA, BCl, BC2, BD1, BD2, BE1, AND BE2 OF FOREST ACRES SUBDIVISION FOR AN AMOUNT NOT TO EXCEED THREE MILLION, NINE HUNDRED THOUSAND, SIX HUNDRED AND ELEVEN DOLLARS ($3,900,611) WHEREAS, the City of Seward has identified a community need for more residential development and is actively taking steps to improve the availability of homes in the community; and WHEREAS, SCC 5.20.015(A) states: "Initiation by petition. Improvement districts and assessments may be initiated by petition in a form prescribed by the City Manager which shall include a description of the improvement sought by the petition. The original or copies of the petition shall be signed by the owners of property which will bear at least 50 percent of the estimated cost of the improvement sought by the petition. The petition,when signed, shall be filed with the city clerk;" and WHEREAS, the City of Seward received a petition from property owners on December 2,2022,and sent a letter to the petitioners on December 14,2022,to confirm receipt of the petition for an Improvement District; and WHEREAS, the City Manager made a survey and report as required by SCC 5.20.020 concerning the need for and desirable extent and estimated cost of each proposed local improvement; and WHEREAS, the Forest Acres Feasibility Study, as drafted on behalf of the City Manager by R&M Consultants, contains a map of the proposed district and identifies the costs and methods for provision of water, sewer, electric, and road improvements necessary for this proposed improvement district; and WHEREAS, this report contains a plan which defines the improvement district, the properties to be assessed, and demonstrates the benefit; and WHEREAS, the total estimated costs for the improvement district based upon the feasibility study are $3,900,611, which will be allocated to the benefitting properties; and CITY OF SEWARD,ALASKA RESOLUTION 2023-029 WHEREAS,the City Clerk provided notice of the public hearing in a newspaper of general circulation once a week for four consecutive week prior to the time fixed for the public hearing and the fourth publication occurred once per week prior to the public hearing; and WHEREAS, the City Clerk sent a written notice by first class mail 15 days prior to the time of hearing to each owner of the property to be assessed, which included an advisement to owners of their ability to file a written protest; and WHEREAS, this Improvement District is necessary and will benefit the properties to be assessed. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1. The Improvement District will include the following benefiting lots: 17, 18, 19, 20, 21, CR, CQ1, CQ2, CD, CF1, CF2, CG2, CP2, CG1, CP1, CO, CH, AX, AY, AZ, BA, BC1, BC2, BD1, BD2, BE1, and BE2 of Forest Acres Subdivision. Section 2. After full review by the City Council of all the facts and information presented, it is hereby found and determined that the proposed improvement district is in the public interest, necessary, and will benefit the properties to be assessed. Section 3. The method of apportionment shall be based upon the square feet-property size which is listed as Method 2 in the Feasibility Study. Section 4. The City Manager is hereby authorized and directed to proceed with the design and construction of the improvement district. Section 5. The City Manager is hereby authorized and directed to create an account which will be kept of all costs of the improvements and directs the proper city official to proceed with design and construction of the improvements subject to acquisition of the necessary financing. Section 6. The City Manager is authorized to pursue bonding per SCC 5.20.065 to finance the improvements for this project and project funding will be based upon availability of bonding at a reasonable rate. Section 7. This resolution shall take effect upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 28th day of March, 2023. CITY OF SEWARD, ALASKA RESOLUTION 2023-029 THE CITY OF SEWARD,ALASKA FAILED Sue McClure, Mayor AYES: None NOES: Calhoon, Finch, Osenga, Wells, Barnwell, McClure ABSENT: DeMoss ABSTAIN: None ATTEST: FAILED Brenda J. Ballou, MMC City Clerk (City Seal) City Council Agenda Statement a Meeting Date: March 28, 2023 t! To: City Council From: Janette Bower, City Manager Subject: Resolution 2023:029, Determining it to be in the Public Interest and Necessary to Proceed with the Proposed Improvement District for and Benefiting Lots 17, 18, 19, 20, 21, CR, CQ1, CQ2, CD, CF1, CF2, CG2, CP2, CG1, CP1, CO, CH, AX, AY, AZ, BA, BC1, BC2, BD1, BD2, BE1, and BE2 of Forest Acres Subdivision for an Amount Not to Exceed Three Million, Nine Hundred Thousand, Six Hundred And Eleven Dollars ($3,900,611) Background and justification: As part of the City of Seward's effort to increase residential development throughout City limits,City Administration has been working with R&M Engineering on examination of utility expansion options. One of the areas within City Limits that lacks water, sewer, roads, and electric services is the northwest corner of "Forest Acres", which includes the parcels that would benefit from this improvement district. The attached Forest Acres Subdivision Feasibility Study is one element of the effort to expand infrastructure. Most of these lots were purchased in the past two years by private individuals who are seeking to construct single family homes. Prior to construction of new homes, water, sewer, electric, and road improvements must be made. In response to this need for utilities, the citizens have filed a petition to the City for an Improvement District. SCC 5.20.015(A) states: "Initiation by petition. Improvement districts and assessments may be initiated by petition in a form prescribed by the city manager which shall include a description of the improvement sought by the petition. The original or copies of the petition shall be signed by the owners of property which will bear at least 50 percent of the estimated cost of the improvement sought by the petition. The petition, when signed, shall be filed with the city clerk." The City Clerk received the petition on December 2, 2022, and sent a letter to the petitioners on December 14, 2022, to confirm receipt of the petition for an Improvement District. Subsequently, City Administration worked with R&M Engineering to update the Feasibility Study to reflect the apportionment of the costs based upon the available methodologies which would equitably apply the project costs to each of the affected property owners. SCC 5.20.025(A) outlines the process for a public hearing and states,"The hearing shall determine whether the proposed improvement district is in the public interest and necessary." Following the public hearing, the City Council shall adopt or reject a resolution to proceed with the proposed improvement district.Additionally, the City Clerk has provided for the public notice to occur for four consecutive weeks and mailed a written notice 15 days prior to the public hearing to the affected property owners. This resolution accomplishes the following: 239 1. Determines that it is in the public interest to proceed with the proposed improvements to the benefiting lots. 2. Authorizes and directs the City Manager to proceed with the design and construction of the improvement district. 3. Authorizes and directs the City Manager to create an account which will be kept of all costs of the improvements and direct the proper City official to proceed with design and construction of the improvements subject to acquisition of the necessary financing. 4. Confirms the method of apportionment of cost to be utilized shall be based upon the square feet-property size. This is Apportionment Method 2 outlined in the Feasibility Study. This methodology is consistent with SCC 5.20.035(b): "Council may determine upon and use any method for spreading the assessment among the properties within the district, which bears a reasonable relationship to the benefit received by the properties". Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: 3.7.1.1 Continue to upgrade and expand utilities 3.3 Housing Strategic Plan: Other: Certification of Funds Total amount of funds listed in this legislation: $ 3,900,611 This legislation (✓): Creates revenue in the amount of: $ x Creates expenditure in amount of: $ 3,900,611 Creates a savings in the amount of: $ Has no fiscal impact Funds are (✓): Budgeted Line item(s): Funding to be obtained from a future Revenue Bond x Not budgeted Not applicable Fund Balance Information Affected Fund (✓): x General SMIC Px x Electric Wastewater Boat Harbor Parking Water Healthcare Motor Pool Other Revenue Bond Note: amounts are unaudited Fund Balance/Net position — restricted $ Fund Balance/Net position — unrestricted/unassigned $ Available Unrestricted Cash Balance: $ 240 Finance Director Signature: Attorney Review x Yes Attorney Signature: ?-cr Not applicable Comments: Administration Recommendation eApprove Resolution Other: 241