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HomeMy WebLinkAbout1984-10-10 Council Packet - Work SessionKenai City Council Work Session October 9, 1984 Street Maintenance Land Solo Contract Assessment Percentage CITY OF KENAI 210 FIOALOO KENAI, ALASKA N611 TELEPHONE 289. 7636 NOTICE OF WORK SESSION There will be a work session of the Kenai City Council on Tuesday, Oct. 9, 1984 at 7s00 PM in the Council chambers. To be discuseeds 1. Maintenance of City Street Approved/Not Approved by City. 2. Land Solo Contract/Deed of Trust, 2nd Position on Assignment. 3. Setting Percentage for Assessments. Janet Whelan City Clerk DA1EDs Oct. S, 1984 0 A, f I y► I i I Y I I I 1 � .q CITY OF KENAI eajil oj 4"„ 210 FIDAL00 96NA1, ALASKA 99611 TBL6PMON9 219. 7535 September 28, 1904 TOs Wm. J. Rrighton, City Mnnnyer FROMs Keith Kornnlio, Director of Public Works SUBJECTS Road Acceptance for Maintenance Policy 1 will comment on each of the four paragrnpho of the road policies oubmitted by Councilman Wiae on September 19, 1984. 1. "All grovel rondo for which the City has filed for State Revenue Sharing if not to City Standards shall be brought to ouch standards at City expense," The Public Worka Department is 100 percent in agreement with this portion of the policy statement. There are approximately eight miles of dirt, mud, or sand streets that are not up to the City Standard Specifications but are maintained by the City. Public Worku is very much in favor of upgrading those eight miles of roads and has rsqueotod ouch through the State Legislative CIP Grant Fundo. One point that should he made clear in that the City of Kenai does maintain all of the roads for which we are receiving State Revenue Sharing Funds. 2. "All platted gravel/dirt rondo on which there front two or more dwelling atructures shall be accepted for maintenance, if neeoocary upgraded to otandarda and added to the State Revenue Sharing System," The Public Worka Department han home problemo with thin paragraph of the policy statement. There are over four milon of dirt, mud, or sand rondo located within the City of Kenai that are not up to the City of Kenai's Specifications and are not maintained by the City of Kenai. There may be quite a few more than four miles of rondo that fit this category that wo do not have knowledge of since we do nothing to maintain thou, and concentrate only on the City -maintained roads. It would be neeeasary to upgrade sill of the roads in this /' category to City Standardu. it the► rand mnt City Standarda, we would be maintaininq Lhum. 1he rondo in thin catugury nre in such poor shape thnt the City would he opendinq at leaut twice as long in maintaining them ns our other nceeptod stroots. Our policy in the pnot hna boon to nok the owners, at their expense to upgrade theno roads to City Standards. 3. "All other roads: gravol/dirt/pnpor ohnll he brought to City Standards by the owners at their expense before the City shall accept them for maintenance. The City may support upgrading of rands with dwelling structures an a shared bonio after case by case review.'' The Public Works Department foeln that all roads that do not moot City Specifications should be upgraded by the owner at the Owner's expense before they will be accepted for maintenance. It would seem that an LID would be an excellent tool for accomplishing this type of upgrading. 4. "The City shall, on issuing all building permito annotato all permits as to whether or not the proposed structure fronts on a City -maintained road." The Public Works Department does not have a problem with thin statement although we question its effectiveness, and it will take some additional review time by our Building Inspector. The Building Permits are obtained by the construction contractor who is building the building. In most all cases, the owner of the property is in no way involved in obtaining the permit. Even individuals who build their own home normally do not obtain a building permit or inquire about one until after the property is purchased. SUMMARY CITY MAINTAINED STREETS Est. Miles Paved Roads 22 Good Gravel Roads 22 Dirt/Mud Roads Maintained but not up to City Specs. R 52 ROADS NOT MAINTAINED Dirt/Mud Roads not Maintained & not up to City Specs 4 I hope my comments above will be helpful, and I do appreciate the Council asking my opinion on this matter. KK/jet • t"O" adPt)tio:: Op t};� I'ullo',.i:.F� p0110y :JLaLtMWjti All gravel roads for which tho city has filod for Otata Revenue Sharin,T if not tO (`ity ntnn+-irri^ nhnll to brought Cto csuc;h atandards at city expense. 'All platted Gravel/Dirt roads on which there front two or more dwelling structures shall be accapted for maintenance, if necessary upgraded to standards and added to the State Revenue Sharing System. All other roadss gravel/dirt/ paper shall be brought to eity/yiAjlM)(1fi%i standards by the owners at their expense before the city shall accept them for maintenance. The city m may support upgrading of roads with dwelling structures on a shared basis after case by ease r¢rview. The eitP shall on issuing all building permits annotate all permits as to whether or not the prposed struture fronts on a city maintained road. C A U, CITY OF KENAI "Od 6;apdW 4 414ae4ao' 219 FIDALOO KENAI, ALASKA 99611 -- TELEPHONE283.7535 MEMO TOs Honorable Mayor h Members 0./ City Council FROMs Tim Rogers, City Attorney- REs Deeds of Trust in Land Sale Contracts on City Lands DATES 5/11/84 This memo is a result of attempts by various individuals to enter into land sale contracts as opposed to first deeds of trust with the City of Kenai on presently leased parcels of land. The present code gives the Administration discretionary power to enter into land sale contracts. In the past two such contracts have been entered into. The reason that land sale contracts would be considered, as opposed to deeds of trust, is because the provisions for land sale contracts purport to make it permissible under the code for the City to take a second position whereas the deed of trust provisions require the City to be in a first position. Since deeds of trust are the common means of securing debts on real estate its Alaska, the law in Alaska on mortgages is sparce. Alaska has adopted the lien theory of mortgages as opposed to the title theory. Thus, a person who owns title to real estate and gives a mortgage to another to secure an indebtedness, has not executed a convoyarsce, but has merely given a security for the debt. the debtor cannot be divested of title, or dispossessed of his property. Bank of Wrangell vfi. Alaska Aoint 1c Lumber Mills, 12 Ak 330, 84 F.bupp. I jAk 1949). It has been found that a document entitled "Real Estate Conditional Contr;ict With Escrow" was, in fact, an equitable mortgage. Stephen,; vas. Aero Lumber Company, 354 F.2d 732 (C.A. Alaska 1966). Jhua, it would appear that a real estate contract gives the same rights in land as a deed of trust. Further, as shown by Alaska Statutes sections deal inq with remedies of the mortgagee in a default Situation (AS 9.35.110 -330, and AS 9.45.170 - 220,', foreclosute of a mortgage lien is 1 through judicial act torn rathur Ihar► throtJoh private fsnin an in the caner of is doed of trust which intnnnrs it would bo much more expensive, burdrsnoornet, and times -consuming to recover property through a real estate cantravt than under a doed of trust which does not require a judicial proc:eodinq. With a real estate contract, it junior lionhoidor who has foro- elosed out hats 60 dayu from the time of confirmation of the sale within which to rudetsm the property, and any nuhnequent junior lienholder has 60 duyn from that redomption within which he cart redeem, and no oft, until the lnst junior lienholder han had his chance to redoam. This means that a portion in a second or worne position it; going to has required to reimburne tho person in first or nanior position. Under either system, should an individual sell raw land which in subsequently developed and the person who sold the land be in neeond position, the person in second position would have to pay off the indebtedness owed the person in first position to nave the land. This could mean that a pertion who cold land for $50,000 would have to pay off the person in first position holding It mortgngn for improvements regardless of the amount to protect his $50,000 investment. However, with a dead of trust, the sale date is the date of payment for both junior lienholdern and tho debtor without any redemption period. Under a real estate contract foreclosure, the mortgagor retains a right to redeem the property either before the confirmation of sale, or within a 12 month period after the confirmation of sale. A deed of trust provides no redemption period once the sale taken place, and the sale takes place without judicial involvement since it in a alreamlined and expedited procedure. A first deed of trust, at; opposed to a first mortgage is always easier to foreclose in this event of a default. Where a creditor is in a second position, either for a dead of trust or mortgage, that creditor in at risk if the creditor in first position forecloses. The creditor in second position han two choices; first, he can forget hit; security arid try to collect a debt personally from the debtor or, sacund, he can preserve his security by buying at the foreelostire sale or, its this caucs of a mortgage, redeeming suboaquent to the bale. Of Bourne, there is the unpalatable choice of eating it. In any case, this debt owing the first creditor could be substantial onough to nqut3ezq out the second creditor. The Konai City Code with thtt inclusion of X14C 22.05.045(c) purports to lot a person out from under the requirements of XMC 22.05.045(a). The latter code provision requires a lessees who is purchacaing and who has a lion for financing upon the land, to cash the City out in order to contiurnmate Chet sale. Subsection (c) allows the lessees to avoid the cash out, by depositing an unrecorded real estate cunt racy t with an escrow agfsnt , making paymeritti thereon pursuant to the terms of the, contract. Under r� FA x A , 11 � [t ■� s latter proviftIois li 11b«tral fnrtlit ttit it provttltun to allawud that s f a dofatilt oer.tit'a, tilt, ht/yt,r hen 311 dr►y►i t o cure the cult aft or rocoIvIntl nutlet, of the cft,fault.. lhrt fatty also ban cnu power to take tt►e lit, fIrmattvrt act inn of rot rtnvtrig this curitract of unlit, and kttopifig Ihu payrf►artt11 that. 1►nve prevlolls) ly boon made as rutitill . It in ill fill pucportttdly providt,d that a buyer gains r►o oc;ustablt, intt,ruot purouant to a contract of aalra that is foror.lonad upon, Till rfilurnma to dsftrustaecf below. When dualirig with a contract of oalo, ona sa dt,elinq wsth an unrecorded info rument. Thitreforo, there iss alwayo the puogibilsty that a buyer, who I" nhowr► ats a lutsooe on the record, could sneer fndebtudneno and csroate cra(istora will) would hays no notice of the contract of onle nnrf therefore riot be bound by it and thtla have priority over the City if they lit tamptud to forcc lnae 118110, on the propt,rt y. While the City may have a romody againot the buyer/lenooe, that rernedy and fifty c;onto Might tint this buyer it cup of coffee, if the buyur/lannue were inaolvunt after nubouquent lienholdara took thuira. Thu biq problem is what happt,nn when it buyer defaulta7 Under Kh1C 22.0:.045(c), a for foittir© it, purportedly rival Iabln. Thin la contrary to state gtattste Irlaofav of; the foracicinuro provlaiona of AS 9.35.110-330 and A, 9.45.170-220 are concerned. lhio combined with the fact that, the coclrta abhor a forfeiture moans that the proviaiono for a forfnstura in the contract of hale may not be onforeutibla. At boat it would have to be litigated; at worst the City would logo. It' the City loot, it would moan that what we have sa a real ofstato contract that it, really an unrecorded uquitablu mortryagu that tins to be forucloned upon pursuar►t to Alanka Statutes which would mitan that peraunu who became lsenhuldurcs of a laanoa/buyur gultnoquont to the uxeeutiun of an unreeorduil real r)gt rite contract but before foruclooure procuuriinga were rout itsstttd would probably fit and 11hoad of this City. Aaauma a laagt,t,/purchafsc)r w111 oat pay off the indrbtedrseao owccl to tha City upon nalu of thu City landn, i'urthrlr oftacime it financial inol itut ion after ravlowanrl finant!1al hitstory and data relative: to a Cst y lrsr;r;eo/buyur of tlse City wi 11 not nisbordinatu itrs lour► to Ilia sistoroat of the tasty. GIVar► the above, there to a real gUaution why tha City, without tlo much afs reviewing the financial ot,aturt, and Mastery of tilt, Irtfsnett/buyer would even connidar aubordsnatsna ttts snlararut, The City its dealing with public is000t fs aricf funds an(f doeo not hove the a►tme frertdum and latitude that is private untily such no it privfttrt 1t:r►dl,1r;" inutitut tors. The City it; huff to a hasher otandarrf of fiscal roupanoibslity than Its tha call', in tilt) private ssactor osneu it if; charged with a pubs tc t rut;I . 3 k J11W 0 In ahort the City -iihould rivvor suborlillint" Its interent purutinlit to the tortnu at' KMC 22 .05.045 I%e and that prov in toti of the code should be retwinclud. TJR/md 14 9 W . CITY OF KENA1 %Oil G;apdal 4 4"„ 210 FIDALOO K6NA1, ALASKA 99611 Tm"14ON02$3. 7535 , Aj ILI TOs Wm. J. Brighton, City Manager FROMs Keith Kornelis, Public Works Director REs 1985-86 C.I.P. DATES October 9, 1984 Froms Worksessions ons August 7, 1984 August 27, 1984 September 5, 1984 October 3, 1984 1985-86 CIP Priority No. PRIORITIZED PROJECT LIST 1. Community Center 2. Balance of S. Highbush, Davidson, Bumblebee, E. Alisk, Swires, Highbush - G 3. Robin, Kenaitze, Eagle Rock, Sandpiper, Tern, S. Strawberry - G 4. Harbor/Bulkhead/Dredgery, Dock, Barge Facility, & Fuel Facility 5. Cook Inlet View Drive b Lilac - G 6. S. Spruce St. - Spur to beach do Kenai Ave. - P 7. Juliuseen, Basinview, Ames, Bambara, Angler - G R. Float Plane Basin 9. VIP Subdivision - G 10. 18-Hole Golf Course 11. Riverview, Mission, Upland, Overland, Highland, etc. - Old Town - P A. 8. C. 0. E. F. G. H. 1. J. K. L. M. N. 0. P. 0. R. NOT PRIORITIZED AS YET Coho & Coral Street - G Richfield Drive - G Kinno, Colonial (Mulholland) Stoelhood - G Aupon & Fifth - G tut, 2nd, & 3rd (East of Forest) - P N. Spruce, Second, & Third - P LACK - P Bernie Huos Fitneoa Trail Extension Addition to City Hall HEM - P Extend N. Taxiway Airport - P Beaver Creek Fire Station Runway Extension at the Airport RV Camper Park - Spruce & beach A.P. Way & Trading Bay - P R.V. Camper Park (First St. & Softball Field) Beach Access Trail at End of Forest Drive Renovation of Old City Dump Site for Rec. Fields lo