HomeMy WebLinkAboutOrdinance No. 3034-2018Sponsored by: Council Member Knackstedt
CITY OF KENAI
ORDINANCE NO. 3034-2018
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI , ALASKA, REPEALING KENAI
MUNICIPAL CODE CHAPTERS 16.05-GENERAL PROVISIONS, AND 16 .10-PROCEDURE,
WITHIN TITLE 16-PUBLIC IMPROVEMENTS AND SPECIAL ASSESSMENTS AND RE-
ENACTING AND RENAMING CHAPTER 16 .05-SPECIAL ASSESSMENT DISTRICTS .
WHEREAS , amending the City's process for forming special assessment districts to complete or
improve capital projects by including more notice requ irements, specificity and certainty towards
the front end of the process is in the City's best interest; and,
WHEREAS, the proposed amendments are intended to ensure property owners and the City have
as much information as is reasonably possible prior to agreeing to the project and spending
significant time and resources; and,
WHEREAS, requiring 60% as opposed to 50% of affected property owners to approve a project
ensures a greater majority of property owners desire to have the project built and accept
responsibility for full or partial payment; and,
WHEREAS , providing a payment deferral process for low-income residents will help those
residents maintain their households while supporting certain capital improvements .
NOW , THEREFORE , BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA,
as follows :
Section 1. Repeal of Chapter 16 .05 of the Kenai Municipal Code : That Kenai Municipal Code,
Chapter 16 .05-General Provisions , is hereby repealed as follows:
(16.05.010 ASSESSMENT AUTHORITY.
(A) THE CITY COUNCIL MAY ASSESS AGAINST THE PROPERTY OF A
GOVERNMENTAL UNIT AND PRIVATE REAL PROPERTY BENEFITED ALL OR A
PORTION OF THE COST OF CONSTRUCTING OR IMPROVING CAPITAL
IMPROVEMENTS. ANY SUCH SPECIAL ASSESSMENT SHALL BE IN PROPORTION TO ,
AND SHALL NOT EXCEED, THE VALUE OF THE BENEFIT FROM THE IMPROVEMENT.
(B) ALL BENEFITED REAL PROPERTY, INCLUDING THAT WHICH IS EXEMPT FROM
TAXATION IN ACCORDANCE WITH LAW , SHALL BE LIABLE FOR THE COST OF PUBLIC
IMPROVEMENTS ASSESSED UNLESS SPECIFICALLY EXEMPTED FROM
ASSESSMENTS FOR PUBLIC IMPROVEMENTS BY LAW. NO ASSESSMENTS SHALL BE
LEVIED IN EXCESS OF TWENTY-FIVE (25 %) PERCENT OF THE FAIR MARKET VALUE
OF PROPERTY AFTER GIVING EFFECT TO THE BENEFIT ACCRUING FROM THE
WORK OR ACTION FOR WHICH ASSESSED, EXCEPT WHERE ALL BENEFITED
OWNERS WAIVE THE ABOVE 25% LIMITATION AND AGREE TO ACCEPT ON A
PROPORTIONAL BASIS 100 % OF THE COSTS OF IMPROVEMENTS PROPERTY.
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16.05.020 HOW IMPROVEMENT PROPOSAL IN ITIATED.
AN IMPROVEMENT PROPOSAL MAY BE INITIATED BY:
(A) PETITION TO THE CITY COUNCIL FILED WITH THE CITY CLERK, BY THE OWNERS
OF PROPERTY IN THE PROPOSED IMPROVEMENT DISTRICT, OR,
(B) RESOLUTION OF THE CITY COUNCIL.
16.05.030 REQUIREMENTS OF PETITION.
THE PETITION SHALL INCLUDE A DESCRIPTION OF THE PROPOSED IMPROVEMENTS.
UNLESS ALL BENEFITED PROPERTY OWNERS' SIGNATURES ARE REQUIRED BY VIRTUE
OF KMC 16.05 .010, THE PETITION SHALL BE SIGNED BY THE OWNERS OF FIFTY
PERCENT (50%) OR MORE OF THE PROPERTIES WHICH WILL BE BENEFITED BY THE
PROPOSED IMPROVEMENT. NO PROPERTY OWNER MAY WITHDRAW HIS APPROVAL OF
THE PROPOSED IMPROVEMENT FOR A PERIOD OF SIX (6) MONTHS AFTER THE
PETITION HAS BEEN FILED, UNLESS AUTHORIZED BY COUNCIL .
16.05.040 CONTENTS OF RESOLUTION.
THE RESOLUTION OF THE CITY COUNCIL INITIATING AN IMPROVEMENT PROPOSAL
SHALL INCLUDE A DESCRIPTION OF THE PROPOSED IMPROVEMENT AND DIRECT THE
CITY MANAGER TO MAKE AN INVESTIGATION AND REPORT THEREON .
16.05.050 PERMISSIBLE METHODS FOR FINANC ING LOCAL IMPROVEMENT
DISTRICTS.
(a) BY GENERAL OBLIGATION BONDS :
(1) LOCAL IMPROVEMENT DISTRICTS FOR CAPITAL IMPROVEMENTS MAY BE
FINANCED BY USE OF FUNDS OBTAINED FROM THE SALE OF GENERAL
OBLIGATION BONDS APPROVED BY THE VOTERS OF THE CITY OF KENAI FOR
SUCH CAPITAL IMPROVEMENTS.
(2) THE PRINCIPAL AND INTEREST OF GENERAL OBLIGATION BONDS SO
ISSUED SHALL BE PAYABLE FROM THE LEVY OF ASSESSMENTS SO ISSUED
SHALL BE PAYABLE FROM THE LEVY OF ASSESSMENTS AGAINST THE
PROPERTY BENEFITED, BUT ANY DEFICIENCY IN MEETING PAYMENTS OF
PRINCIPAL AND INTEREST SHALL BE MADE UP BY AN APPROPRIATION FROM
THE GENERAL FUND . THE ASSESSMENTS SHALL CONSTITUTE A SINKING FUND
FOR THE PAYMENT OF PRINCIPAL AND INTEREST ON THE BONDS .
(3) INTEREST ON FUNDS BORROWED TO FINANCE THE CAPITAL
IMPROVEMENT PRIOR TO THE SALE OF GENERAL OBLIGATION BONDS SHALL
BE A COST OF THE IMPROVEMENT DISTRICT.
(b) BY SPECIAL ASSESSMENT BONDS :
(1) THE CITY COUNCIL MAY, BY ORDINANCE , AUTHORIZE THE ISSUANCE AND
SALE OF SPECIAL ASSESSMENT BONDS TO PAY ALL OR PART OF THE COST OF
AN IMPROVEMENT IN A LOCAL IMPROVEMENT DISTRICT. THE PRINCIPAL AND
INTEREST OF BONDS SO ISSUED SHALL BE PAYABLE SOLELY FROM THE LEVY
OF SPECIAL ASSESSMENTS AGAINST PROPERTY TO BE BENEFITED. THE
ASSESSMENTS SHALL CONSTITUTE A SINKING FUND FOR THE PAYMENT OF
PRINCIPAL AND INTEREST ON THE BONDS . THE PROPERTY BENEFITED MAY BE
PLEDGED BY THE COUNCIL TO SECURE A PAYMENT.
(2) INTEREST ON FUNDS BORROWED TO FINANCE THE CAPITAL
IMPROVEMENT PRIOR TO THE SALE OF SPECIAL ASSESSMENT BONDS SHALL
BE A COST OF THE IMPROVEMENT DISTRICT.
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(C) BY CITY FUNDS (WITH OR WITHOUT SUBSEQUENT RECOVERY BY
ASSESSMENT AGAINST BENEFITED PROPERTY).
(D) BY ANY COMBINATION OF TWO OR MORE OF THE ABOVE.
16.05.060 AUTHORIZED CAPITAL IMPROVEMENTS.
A SPECIAL ASSESSMENT DISTRICT FOR A PUBLIC IMPROVEMENT MAY BE INITIATED
FOR ANY ONE OR MORE OF THE FOLLOWING IMPROVEMENTS:
(A) STREETS , ROADS , PARKWAYS , STREET LIGHTING, CURBS , GUTIERS,
DRIVEWAYS, CURB CUTS, AND SIDEWALKS ;
(B) STORM SEWERS, DRAINS , OR SETILING BASINS;
(C) SANITARY SEWERS, INCLUDING INTERCEPTORS, COLLECTORS, LATERALS ,
AND SEWER SERVICE CONNECTIONS ;
(D) PARKS OR PLAYGROUNDS ;
(E) OFF-STREET PARKING FACILITIES;
(F) CHANGES IN CHANNELS OF STREAMS OR WATERCOURSES;
(G ) WATER SUPPLY SYSTEMS, INCLUDING WATER MAINS, WATER DISTRIBUTION
LINES , WATER SERVICE CONNECTIONS , AND FIRE HYDRANTS ;
(H) PUBLIC SHELTERS ; OR
(I) STREET, ROAD, PARKWAY AND SIDEWALK DRAINAGE, DUST CONTROL, OR
SNOW REMOVAL.
16.05.070 PROPERTY ASSESSED .
THE COUNCIL MAY ASSESS FOR AN IMPROVEMENT ANY REAL PROPERTY BENEFITED
OR ANY INTEREST IN REAL PROPERTY BENEFITED, AND THE PROPERTY BENEFITED
MAY INCLUDE ABUTIING, ADJOINING, ADJACENT , CONTIGUOUS , NON-CONTIGUOUS,
OR OTHER PROPERTY OR INTEREST IN PROPERTY BENEF ITED DIRECTLY OR
INDIRECTLY BY THE IMPROVEMENT. THE PROPERTY TO BE ASSESSED MAY INCLUDE
ANY PROPERTY WHICH IS OTHERWISE FOR ANY REASON EXEMPT FROM T AXA Tl ON BY
LAW . A BENEFITED PROPERTY MAY BE INCLUDED IN WHOLE OR IN PART IN MORE THAN
ONE LOCAL IMPROVEMENT DISTRICT.
16.05.080 AMOUNT ASSESSED.
THE COUNCIL MAY ASSESS 100% OF ANY OR ALL COSTS OF A PUBLIC IMPROVEMENT
AGAINST THE PARCELS OF PROPERTY BENEFITED BY THE IMPROVEMENT. UNLESS A
SPECIFIC METHOD OF COMPUTATION OF THE BENEFIT TO THE PROPERTY IS
EXPRESSLY PROVIDED IN THIS CHAPTER FOR ASCERTAINING THE AMOUNT TO BE
ASSESSED AGAINST THE PROPERTY BENEFITED BY A DESIGNATED IMPROVEMENT,
THE COUNCIL SHALL ASSESS EACH PARCEL OF PROPERTY IN A LOCAL ASSESSMENT
DISTRICT IN PROPORTION TO THE VALUE OF THE BENEFITS RECEIVED FROM THE
IMPROVEMENTS .
16.05.090 COSTS.
THE COSTS OF A N IMPROVEMENT SHAL L BE THE ACTUAL COSTS OF THE
IMPROVEMENT , INCLUDING ACQUISITION OF INTEREST IN LAND FOR THE
IMPROVEMENT , DESIGN , ENGINEERING , ADMINISTRATION , OVERHEAD,
PROFESSIONAL SERVICES, BOND COSTS, AND INTEREST INCURRED AS A RESULT OF
THE IMPROVEMENT, AND ALL OTHER COSTS RESULTING FROM THE CONSTRUCTION
OF THE IMPROVEMENT. BOND INTEREST SHALL BE CALCULATED FROM THE FIRST
DATE WHEN ACTUAL COSTS ARE INCURRED BY THE CITY.
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16.05.100 METHOD OF ASSESSMENT.
THE PROVISIONS OF THIS CHAPTER SHALL NOT PREVENT OR BE CONSTRUED TO
PREVENT THE COLLECTION OF ASSESSMENTS OR PAYMENT IN LIEU OF ASSESSMENTS
FOR IMPROVEMENTS IN ANY OTHER MANNER AS PROVIDED BY LAW . THE METHODS
OF ASSESSMENT ARE DESCRIBED IN GENERAL HEREIN AND WILL REQUIRE DECISIONS
OF POLICY BY THE COUNCIL TO MEET CURRENT NEEDS . IN GENERAL, THE
ASSESSMENT RATE FOR ANY SPECIAL ASSESSMENT DISTRICT IS COMPUTED BY
DIVIDING THE TOTAL ASSESSABLE COST OF SUCH IMPROVEMENT BY THE TOTAL
NUMBER OF ASSESSMENT UNITS . THE ENTIRE PROJECT IS CONSIDERED AS A WHOLE
WHEN COMPUTING THE ASSESSMENT RATE AND APPL YING IT TO ALL PROPERTIES .
THE COST OF INSTALLING THE IMPROVEMENT IN FRONT OF OR PAST AN Y PARTICULAR
PARCEL OF PROPERTY IS ONLY ONE METHOD PERMITTED OF ASSESSMENT. EXCEPT
AS OTHERWISE PROVIDED BY LAW, ORDINANCE, OR BY COUNCIL-APPROVED POLICY
FOR A PARTICULAR LOCAL IMPROVEMENT DISTRICT, COSTS WILL BE ALLOCATED ON
A SQUARE FOOTAGE BASIS EXTENDING ONE LOT DEEP ADJACENT TO IMPROVEMENTS
IN SUBDIVIDED AREAS, MIDWAY BETWEEN STREETS UP TO 150 FEET OF DEPTH IN
UNSUBDIVIDED RESIDENTIAL AREAS , AND UP TO 300 FEET OF DEPTH IN UNSUBDIVIDED
COMMERCIAL AND INDUSTRIAL AREAS. GREATER AREA MAY BE INCLUDED WHEN
ASSESSING COSTS FOR INTERCEPTOR SEWERS OR WATER MAINS PROVIDING FIRE
PROTECTION . ]
Section 2. Repeal of Chapter 16 .10 of the Kenai Municipal Code : That Kenai Municipal Code ,
Chapter 16 .10-Procedure , is hereby repealed as follows :
[16.10.010 CITY MANAGER ACTION.
THE CITY MANAGER SHALL , WITHIN SIXTY (60) DAYS AFTER THE FILING OF THE
PETITION OR PASSAGE OF THE RESOLUTION, MAKE A SURVEY OF, AND REPORT ON,
THE PROPOSED IMPROVEMENT TO THE CITY COUNCIL CONCERNING THE NEED FOR,
THE DESIRABLE SCOPE OF , AND THE ESTIMATED COST OF THE PROPOSED
IMPROVEMENT, PROSPECTIVE GRANTS THAT MIGHT BE SECURED TO ASSIST IN
PAYMENT FOR THE IMPROVEMENT, RECOMMENDATION AS TO GRANT APPLICATION ,
AND THE RECOMMENDED PERCENTAGE OF THE IMPROVEMENT PLAN COST TO BE
ASSESSED AGAINST THE PROPERTY BENEFITED . THE REPORT SHALL CONTAIN A
DESCRIPTION DEFINING THE DISTRICT AND THE PROPERTIES TO BE ASSESSED AND
SHOWING THE DESIRABLE SCOPE OF THE PROPOSED IMPROVEMENT. THE PROPOSED
IMPROVEMENT DISTRICT MAY BE DEFINED BY:
(A) METES AND BOUNDS DESCRIPTION ; OR
(B) BY A DESIGNATION OF THE BENEFITED PROPERTIES TO BE ASSESSED BY LOT ,
BLOCK, AND SUBDIVISION .
16.10.020 PRELIMINARY ASSESSMENT ROLL.
WITHIN THIRTY (30) DAYS AFTER CONSIDERATION BY THE COUNC IL OF THE SURVEY
AND REPORT, THE CITY MANAGER WILL PREPARE AND FILE WITH THE CITY CLERK A
PRELIMINARY ASSESSMENT ROLL FOR THE PROPOSED IMPROVEMENT . THIS
PRELIMINAR Y ASSESSMENT ROLL WILL INCLUDE THE NAME OF THE RECORD OWNER ,
A BRIEF DESCRIPTION OR DESIGNATION OF THE PROPERTY, AND THE ESTIMATED
AMOUNT TO BE ASSESSED AGAINST THE PROPERTY. (Ord. 791)
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16.10.030 SETTING OF PUBLIC HEARING ON IMPROVEMENT DISTRICT.
WITHIN THIRTY (30) DAYS AFTER THE PRESENTATION OF THE PRELIMINARY
ASSESSMENT ROLL BY THE CITY MANAGER, THE COUNCIL SHALL BY RESOLUTION SET
A DATE WITHIN SIXTY (60) DAYS AFTER THE DATE OF SETTING FOR A PUBLIC HEARING
ON THE PROPOSED IMPROVEMENT. (Ord . 791)
16.10.040 NOTICE OF PUBLIC HEARING ON IMPROVEMENT DISTRICT.
PRIOR TO THE DATE OF HEARING, THE CITY CLERK SHALL PUBLISH A NOTICE AT LEAST
ONCE A WEEK FOR FOUR (4) CONSECUTIVE WEEKS IN A NEWSPAPER OF GENERAL
CIRCULATION DISTRIBUTED WITHIN THE MUNICIPALITY. THIS NOTICE SHALL INCLUDE
A SUMMARY OF THE IMPROVEMENT, THE DESIGNATION OF THE PROPERTIES TO BE
ASSESSED IN THE LOCAL IMPROVEMENT DISTRICT, THE PURPOSE OF THE PUBLIC
HEARING, THE TIME AND PLACE FIXED FOR THE PUBLIC HEARING, THE FACT THAT A
PRELIMINARY ASSESSMENT ROLL IS ON FILE WITH THE CITY CLERK, AND
INFORMATION AS TO THE MANNER AND METHOD OF MAKING WRITTEN PROTEST OR
OBJECTION TO THE ACTION TO BE TAKEN . THE CITY CLERK SHALL ALSO SEND NOTICE
BY MAIL TO EVERY RECORD OWNER OF PROPERTY WITHIN THE PROPOSED LOCAL
IMPROVEMENT DISTRICT AT LEAST FIFTEEN (15) DAYS PRIOR TO THE PUBLIC HEARING
WHICH , IN ADDITION TO THE INFORMATION CONTAINED IN THE PUBLISHED NOTICE,
SHALL INCLUDE A DESIGNATION OF THE ADDRESSEE 'S PROPERTY TO BE ASSESSED
AND THE ESTIMATED COST TO BE ASSESSED AGAINST SUCH PROPERTY. (Ord . 791)
16.10 .050 WRITTEN OBJECTIONS.
OBJECTION TO THE IMPROVEMENT PLAN MAY BE FILED IN WRITING WITH THE CITY
CLERK UNTIL, BUT NOT ON, THE DATE OF PUBLIC HEARING. THE CITY CLERK SHALL
PRESENT TO COUNCIL AT THE TIME OF THE HEARING, ALL OBJECTIONS FILED IN
WRITING . (Ord . 791)
16.10.060 PUBLIC HEARING ON IMPROVEMENT DISTRICT.
AT THE TIME AND PLACE NOTICED, THE COUNCIL SHALL HOLD A PUBLIC HEARING
UPON THE NECESSITY FOR THE PROPOSED IMPROVEMENT . THE COUNCIL SHALL
HEAR ALL INTERESTED PERSONS FAVORING OR OPPOSING THE PROPOSED
IMPROVEMENTS AND SHALL CONSIDER ALL WRITTEN OBJECTIONS FILED . (Ord. 791)
16.10.070 COUNCIL ACTION.
AFTER THE PUBLIC HEARING IS CLOSED, THE COUNCIL MAY INCREASE OR DECREASE
THE SCOPE OR VALUE OF THE IMPROVEMENT, OR MAY DELETE FROM THE PROPOSED
IMPROVEMENT DISTRICT PROPERTIES NOT BENEFITED BY THE IMPROVEMENT OR ADD
PROPERTIES WHICH WOULD BE BENEFITED AND SHALL ADOPT A RESOLUTION
DIRECTING CONTINUATION OR TERMINATION OF THE MODIFIED IMPROVEMENT
DISTRICT. NO CHANGE MAY BE MADE RESULTING IN AN IMPROVEMENT DISTRICT
OBJECTED TO BY OWNERS OF PROPERTIES BEARING FIFTY PERCENT (50%) OR MORE
OF THE ESTIMATED COST TO BE BORNE BY THE PROPERTY OWNERS EXCEPT WITH
THE APPROVAL OF AT LEAST SIX (6) MEMBERS OF THE COUNCIL. THE RESOLUTION
DIRECTING CONTINUATION SHALL FIND THAT THE IMPROVEMENT IS NECESSARY AND
OF BENEFIT TO THE PROPERTIES TO BE ASSESSED , AND THAT IT IS NOT OBJECTED TO
BY OWNERS OF PROPERTIES BEARING FIFTY (50) PERCENT OR MORE OF THE
ESTIMATED COSTS TO BE BORNE BY PROPERTY OWNERS OR , IN THE ALTERNATIVE,
THAT IT HAS BEEN APPROVED BY AT LEAST SIX (6) MEMBERS OF THE COUNCIL. THE
FINDINGS OF THE COUNCIL ARE CONCLUSIVE . THE RESOLUTION SHALL FURTHER
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REQUIRE THAT AN ACCOUNT BE KEPT OF ALL COSTS OF THE IMPROVEMENT AND THAT
AFTER ALL COSTS ARE KNOWN THE CITY MANAGER SHALL PREPARE AN ASSESSMENT
ROLL FOR THE IMPROVEMENT. THE RESOLUTION SHALL STATE THE ESTIMATED
PERCENTAGE OF THE COSTS OF THE IMPROVEMENT TO BE ASSESSED AGAINST THE
BENEFITED PROPERTIES. (Ord. 791)
16.10.080 ASSESSMEN T ROLL.
AFTER THE IMPROVEMENT HAS BEEN COMPLETED AND THE COSTS OF THE
IMPROVEMENT COMPUTED , THE CITY MANAGER SHALL PREPARE AND FILE WITH THE
CITY CLERK AN ASSESSMENT ROLL FOR THE ASSESSMENT DISTRICT. THE
ASSESSMENT ROLL SHALL CONTAIN , AS TO EACH PROPERTY TO BE ASSESSED, A
BRIEF DESCRIPTION OR DESIGNATION OF THE PROPERTY, THE NAME OF THE RECORD
OWNER OF THE PROPERTY TO BE ASSESSED , AND THE AMOUNT TO BE ASSESSED
AGAINST THE PROPERTY. THE PERSON IN WHOSE NAME PROPERTY IS LISTED ON THE
MUNICIPAL PROPERTY TAX ROLL AS OWNER IS CONCLUSIVELY PRESUMED TO BE THE
LEGAL OWNER OF RECORD . IF THE OWNER IS UNKNOWN, THE ASSESSMENT MAY BE
MADE AGAINST THE "UNKNOWN OWNER." (Ord. 791)
16.10.090 SETTING HEARING ON ASSESSMENT ROLL.
AFTER THE ASSESSMENT ROLL IS FILED , THE COUNCIL SHALL FIX THE TIME AND PLACE
FOR A PUBLIC HEARING ON OBJECTIONS TO THE ASSESSMENT ROLL. (O rd. 791)
16.10 .100 NOTICE OF PUBLIC HEARING ON ASSESSMENT ROLL.
NOTICE SHALL BE GIVEN FOR THE PUBLIC HEARING ON THE ASSESSMENT ROLL AS
PRESCRIBED IN KMC 16.10.040. THE NOTICE TO BE PUBLISHED SHALL INCLUDE A
SUMMARY OF THE IMPROVEMENT, THE DESIGNATION OF THE PROPERTIES TO BE
ASSESSED IN THE ASSESSMENT DISTR ICT, THE PURPOSE OF THE PUBLIC HEARING ,
AND THE TIME AND PLACE FIXED FOR THE PUBLIC HEARING . THE NOTICE BY MAIL, IN
ADDITION TO THE INFORMATION CONTAINED IN THE PUBLISHED NOTICE, SHALL
INCLUDE THE AMOUNT OF THE ACTUAL ASSESSMENT AGAINST THE PROPERTY
OWNED BY THE ADDRESSEE. EACH NOTICE BY MAIL SHALL GENERALLY INFORM THE
PROPERTY OWNER OF THE MANNER AND METHOD OF PROTESTING OR OBJECTING TO
THE ACTION TO BE TAKEN AT THE PUBLIC HEARING . (Ord. 791)
16.10.110 PUBLIC HEARING ON ASSESSMENT ROLL.
AT THE PUBLIC HEARING, AN OWNER OF THE PROPERTY TO BE ASSESSED SHALL
HAVE THE RIGHT TO PRESENT HIS OBJECTIONS TO THE ASSESSMENT ROLL BY
SHOWING ERRORS AND INEQUALITIES IN THE ASSESSMENT ROLL AND BY SUBMITTING
ANY REASON FOR AMENDMENT AND CORRECTION OF THE ASSESSMENT ROLL. (Ord.
791)
16.10.120 CORRECTION AND DETERMINATION OF ASSESSMENT ROLL.
AFTER THE PUBLIC HEARING , THE COUNCIL MAY CORRECT ANY ERROR OR
INEQUALITY IN THE ASSESSMENT ROLL. WHEN THE ROLL IS Fl NALLY DETERMINED , THE
CITY CLERK SHALL SO CERTIFY AND THE ROLL SHALL BE OFFICIALLY RECORDED. (Ord .
791)
16.10.130 RESOLUTION CONFIRMING ASSESSMENT ROLL AND FIXING PAYMENT.
AFTER THE PUBLIC HEARING AND DETERMINATION OF THE ASSESSMENT ROLL ,
COUNCIL , BY RESOLUTION , SHALL CONFIRM THE ASSESSMENT ROLL OF THE LOCAL
IMPROVEMENT DISTRICT. THE RESOLUTION SHALL PROVIDE FOR THE LEVYING OF THE
ASSESSMENT AGAINST THE PROPERTY INCLUDED WITHIN THE DISTRICT AND MAY
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ESTABLISH A SINKING FUND FOR PAYMENT OF PRINCIPAL AND INTEREST ON ANY
BONDS WHICH MAY BE SOLD TO FINANCE THE IMPROVEMENT. THE RESOLUTION
SHALL ALSO FIX TIMES OF PAYMENT, SCHEDULE OF PAYMENTS, RATE OF INTEREST
ON UNPAID INSTALLMENTS, THE DATE OF DELINQUENCY OF ASSESSMENTS, AND THE
PENAL TY AND INTEREST TO BE PAID ON DELINQUENT ASSESSMENTS . ON DELINQUENT
ASSESSMENTS, PENAL TY SHALL BE IN ACCORDANCE WITH THE PROVISIONS OF KMC
1.75 .010. (Ords. 791 , 944)
16.10 .140 PAYMENT.
PAYMENT MAY NOT BE REQUIRED SOONER THAN SIXTY (60) DAYS AFTER
ASSESSMENT. PAYMENT MAY BE IN A LUMP SUM OR BY INSTALLMENTS. (Ord. 791)
16.10.150 NOTICE OF PAYMENT.
(A) WITHIN THIRTY (30) DAYS AFTER THE TIME OF PAYMENT HAS BEEN FIXED , THE
CITY CLERK SHALL MAIL A STATEMENT TO EACH OWNER OF RECORD
DESIGNATING THE PROPERTY, THE ASSESSMENT AMOUNT, THE TIME OF
DELINQUENCY, AND PENAL TIES.
(B) WITHIN FIVE (5) DAYS AFTER THE STATEMENTS ARE MAILED, THE CITY CLERK
SHALL PUBLISH NOTICE THAT THE STATEMENTS HAVE BEEN MAILED.
(Ord. 791)
16.10.160 OBJECTION AND APPEAL.
(A) THE REGULARITY OR VALIDITY OF AN ASSESSMENT MAY NOT BE CONTESTED
BY A PERSON WHO DID NOT FILE WITH THE CITY CLERK A WRITTEN OBJECTION TO
THE ASSESSMENT ROLL BEFORE ITS CONFIRMATION.
(B) THE DECISION OF THE CITY COUNCIL UPON AN OBJECTION MAY BE APPEALED
TO THE SUPERIOR COURT WITHIN THIRTY (30) DAYS OF CONFIRMATION OF THE
ASSESSMENT ROLL.
(C) IF NO OBJECTION IS FILED OR AN APPEAL TAKEN WITHIN THE TIME PROVIDED
IN THIS SECTION, THE ASSESSMENT PROCEDURES SHALL BE CONSIDERED
REGULAR AND VALID IN ALL RESPECTS .
(Ord. 791)
16.10.170 REASSESSMENT.
(A) THE CITY COUNCIL SHALL WITHIN ONE (1) YEAR CORRECT ANY DEFICIENCY
FOUND BY A COURT IN AN ASSESSMENT.
(B) PROCEDURE FOR NOTICE AND PUBLIC HEARING FOR REASSESSMENT MUST
CONFORM TO THAT UTILIZED FOR THE INITIAL ASSESSMENT PROCEDURES.
(C) PAYMENTS ON THE INITIAL ASSESSMENTS ARE CREDITED TO THE PROPERTY
UPON REASSESSMENT.
(D) THE REASSESSMENT BECOMES A CHARGE UPON THE PROPERTY
NOTWITHSTANDING FAILURE TO COMPLY WITH ANY PROVISION OF THE
ASSESSMENT PROCEDURE.
(Ord. 791)
16.10.180 SUPPLEMENTAL ASSESSMENT.
(A) IF ADDITIONAL COSTS ARE INCURRED THAT ARE CHARGEABLE TO AN
ASSESSMENT DISTRICT AFTER THE INITIAL ASSESSMENT ROLL HAS BEEN
APPROVED BY THE CITY COUNCIL, THE CITY MANAGER MAY PREPARE AND FILE
WITH THE CITY CLERK A SUPPLEMENTAL ASSESSMENT ROLL.
(B) PROCEDURE FOR NOTICE AND PUBLIC HEARING FOR A SUPPLEMENTAL
ASSESSMENT MUST CONFORM TO THAT UTILIZED FOR THE INITIAL ASSESSMENT.
(C) BILLINGS AND PAYMENTS ON A SUPPLEMENTAL ASSESSMENT SHALL BE KEPT
SEPARATE FROM THE INITIAL ASSESSMENT. SUPPLEMENTAL ASSESSMENTS MAY
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HAVE PAYMENT TERMS AND DUE DATES DIFFERENT FROM THE INITIAL
ASSESSMENT.
(D) MORE THAN ONE SUPPLEMENTAL ASSESSMENT MAY BE ALLOWED.
(E) THE SUM OF ALL SUPPLEMENTAL ASSESSMENTS IN ANY ONE ASSESSMENT
DISTRICT MAY NOT EXCEED TWENTY PERCENT (20%) OF THE INITIAL APPROVED
ASSESSMENT ROLL.]
Section 3. Re-enactment and re-naming of Chapter 16.05 of the Kenai Municipal Code : That
Kenai Municipal Code, Chapter 16.05-General Provisions , is hereby re-enacted and re-named
as follows:
Chapter 16.05 Special Assessment Districts
16.05.010 Assessment Authority.
(a) The City Council may assess against the real property of a governmental unit and
private real property benefited by a capital improvement project, all or a portion of the cost
of construct ing or improving such capital improvements . Any such special assessment shall
be in proportion to, and shall not exceed, the value of the benefit from the improvement.
(b) All benefited real property, including that which is exempt from taxation in accordance
with law, shall be liable for the cost of public improvements assessed, unless specifically
exempted from assessments for public improvements by law.
16.05.020 Authorized Capital Improvement s.
A special assessment district for a public improvement may be initiated for any one or more of
the following improvements:
(a) Streets. roads, street lighting, curbs. gutters. driveways, and s idewalks;
(b) Storm sewers. drains . or settling basins;
(c) Sanitary sewers systems , including mains. connections and extensions ;
(d) Changes in channe ls of streams or watercourses;
(e) Water supply systems. including water mains. water distribution lines . water service
connections. and fire hydrants ;
16.05 .030 Property assessed.
The Council may assess for an authorized capital improvement. any real property benefited or
any interest in real property benefited. and the property benefited may include abutting, adjoining ,
adjacent. contiguous, non-contiguous. or other property or interest in property benefited directly
or indirectly by the improvement. A benefited property may be included in whole or in part in more
than one local improvement district
16.05.040 Amount Assessed.
The Council may assess 100% of any or all costs of a public improvement against the parcels of
property benefited by the improvement. Unless a specific method of computation of the benefit to
the property is expressly provided in this Chapter for ascertaining the amount to be assessed
against the property benefited by a designated improvement. the Council shall assess each parcel
of property in a local assessment district in proportion to the va lue of the benefits received from
the improvements.
16.05.050 Costs.
The costs of an authorized capital improvement shall be the actual costs of the improvement,
including acquisition of interest in land for the improvement. design, engineering, administration,
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overhead, professional services. bond costs. and interest incurred as a result of the improvement.
and all other costs resulting from the construction of the improvement. Bond interest shall be
calculated from the first date when actual costs are incurred by the City.
16.05.060 Permissible Methods for Financing Local Improvement Districts .
(a) By general obligation bonds:
(1) Local improvement districts for capital improvements may be financed by use of
funds obtained from the sale of general obligation bonds approved by the voters of the
City of Kenai for such capital improvements .
(2) The principal and interest of general obligation bonds so issued shall be payable
from the levy of assessments so issued against the property benefited, but any
deficiency in meeting payments of principal and interest shall be made up by an
appropriation from the general fund. The assessments shall constitute a sinking fund
for the payment of principal and interest on the bonds.
(3) Interest on funds borrowed to finance the capital improvement prior to the sale of
general obligation bonds shall be a cost of the improvement district.
(b) By special assessment bonds:
(1) The City Council may. by ordinance, authorize in compliance with the City Charter
the issuance and sale of special assessment bonds to pay all or part of the cost of an
improvement in a local improvement district. The principal and interest of bonds so
issued shall be payable solely from the levy of special assessments against property to
be benefited . The assessments shall constitute a sinking fund for the payment of
principal and interest on the bonds. The property benefited may be pledged by the
Council to secure a payment.
(2) Interest on funds borrowed to finance the capital improvement prior to the sale of
special assessment bonds shall be a cost of the improvement district.
(c) By City or grant funds (with or without subsequent recovery by assessment against
benefited property).
(d) By any combination of two or more of the above.
16.05.070 Method of Assessment.
The provisions of this chapter shall not prevent or be construed to prevent the collection of
assessments or payment in lieu of assessments for improvements in any other manner as
provided by law. The methods of assessment are described in general herein and will require
decisions of policy by the Council to meet current needs. In general, the assessment rate for any
specia l assessment district is computed by dividing the total assessable cost of such improvement
by the total number of assessment units. The entire project is considered as a whole when
computing the assessment rate and applying it to all properties .
16.05.080 Initiation of Special Assessment District.
A special assessment district may be initiated by :
(a) A sponsor of a proposed district may submit an application detailing the proposed
improvement and a map or description of the proposed geographic area subject to
inclusion in the special assessment district to the City Clerk.
(b) The City Council may adopt a resolution directing the City Manager to subm it an
application for a proposed special assessment district to the City Clerk.
16.05.090 Review of Petition Application.
(a) District boundaries-Review by Administration. After receiving an application for a
petition to form a special assessment district. the City Administration shall determine
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whether the boundaries of the proposed district are proper. The boundary will be
considered improper if:
( 1) any property adjacent to the proposed district will be benefited by the proposed
improvement and is clearly excluded for the primary purpose of enabling the
included properties to meet assessment percentage and signature requirements
of this Chapter;
(2) the boundary covers a large. non-contiguous area. such as parcels
unconnected by roadways or property lines;
(3) the boundary includes too many parcels with the intention of diluting costs or
minimizing the effect of delinquent properties; or
(4) such other grounds as may be established by regulation .
(b) Based upon the proposed district boundaries, the City Manager, or designee shall
inform the sponsor whether the proposed district may violate any of the restrictions on
district formation in this Chapter.
(c) District boundaries-Deemed improper. In the event that the City Manager finds the
proposed boundary is improper. the boundary description shall be returned to the sponsor
along with a written explanation describing why the proposed boundary has been deemed
improper. The sponsor may modify and resubmit the boundary description to the City Clerk.
(d) Administrative report. Once the City Manager approves the boundaries of the proposed
district. administration w il l prepare an initial report for the Council to consider for approval
of an order for an engineer's or architects estimate regarding the proposed project. The
initial administrative report shall contain the following information:
(1) Sponsor's application. description and scope of the proposed project;
(2) Review of restrictions on formation for the proposed project;
(3) need for. the desirable scope of, and preliminary opinion of cost of the proposed
improvement. including professional services and construction;
( 4) Available funding, prospective grants that might be secured to assist in payment
for the improvement. recommendation as to grant application including other and
other proposed special assessment projects that may require funding;
(5) the recommended percentage of the improvement plan cost to be assessed
against the property benefited;
(6) Any additional comments that may help the City Council; and
(7) The City Managers recommendation for the proposed project.
(e) Provide to Council. The City Manager or designee shall provide the administrative report
to the Council and prepare a resolution to approve the engineers or architects estimate.
16.05.095 Resolution Approving Engineer's or Architect's Estimate.
(a) Council Approval for engineer's or architects estimate. The Council shall determine by
resolution whether to approve an order for an engineer's or architects estimate conditioned
on the filing of an application fee by the sponsor:
(b) Non-refundable application fee. Upon receiving notice provided by the City Clerk that
the City Council has approved an order for an engineer's estimate the sponsor must submit
a non-refundable application fee of $1 .500. before any additional efforts are made by the
City to proceed with the proposed district.
(c) Engineer's or Architect's estimate. After the sponsor submits the non-refundable
application fee to City Clerk , the C ity Manager or designee shall obtain an estimate from
an appropriate professional of the cost of the improvement proposed for the district. The
estimate must include all professional service and construction costs including a
reasonable contingency of not less than 10% of the construction costs. City administration
will re-evaluate whether the proposed district violates any of the restrictions on district
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formation in this Chapter, taking into account the estimated costs. and inform the sponsor
if any violations have been identified . The City Clerk shall provide the cost estimate to the
sponsor after it is received by the City.
(d) Sponsor's intent to proceed. If the sponsor wishes to proceed after receiving the cos t
estimate from the City Clerk , the sponsor must submit to the Clerk a written notice of intent
to proceed with the project.
(e) After the written notice to proceed is rece ived from the sponsor. the City Clerk shall
provide notice of the proposed special assessment district to all parcel owners within the
proposed district by regular mail, at least 10 days prior to the City Council's consideration
of the ordinance to approve the petition report and recommend City Matching funds , if any.
The Notice shall include the following:
(1) A description of the special assessment district and proposed improvement;
(2) A map of the proposed improvement;
(3) The date of the public hearing on the Ord inance to approve the petition report and
City Matching funds, if any;
(4) Engineer's or architect's estimate of cost;
(5) An estimate of the amount to be assessed to each parcel in the proposed district;
(6 Proposed financing terms; and
(6) Notice that the legal description of parcels within the proposed district as of the
date the City Council approves the resolution to approve the peti t ion report and
recommend City Matching funds. if any, will be used to determine assessment s. Any
action to re-plat parcels within the proposed district must be completed and recorded
before the date the City Council approves the resolution .
(f) If any changes are made to the proposed district boundary by the sponsor after the clerk
receives the sponsor's written intent to proceed with the project. the revised district shall
be subject to all steps for preclearance and resubmission of the proposed district as
provided in this section. The sponsor will not be required to submit an additional application
fee.
16.05.100 Preparation and Issuance of Pet it ion Report.
After the sponsor submits a written notice to proceed , the City manager o r designee w ill prepare
a special assessment district petition report for the City Council. The petition report will include
the following :
(a) A description of the proposed improvement;
(b) The estimated roll :
(1) The tota l estimated cost of the improvement based on the engineer's or architects
estimate and other allowable costs . including a min imum 10% contingency based on
the construction costs ;
(2) The name of the record owner of each parcel in the proposed district;
(3) The ta x parcel number of each parcel in the proposed district;
(4) The legal description of each parcel in the proposed district;
(5) The assessed valuation of each parcel in the proposed district;
(6) An estimate of t he amount to be assessed to each parcel in t he proposed district;
and
(7) Whet her the re are other special assessment li ens against any of the parcels in the
proposed district; and
(8) A description of any parcels that violate any restrictions on district format ion
(c) A map of the proposed district;
(d) Proposed financing terms
(e) A description of the limitations on withdrawing a petition signature , and
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(f) The name. address and daytime telephone number of the sponsor of the petition.
The City Manager or designee shall prepare an Ordinance to Approve the Petition Report and
Matching Funds for Council consideration.
16.05.110 Ordinance to Approve the Petition Report and Matching Funds.
The Council may adopt a ordinance approving the petition report and providing matching funds
after consideration of a recommendation from the City Manager.
16.05.120 Circulation and Filing of Petition; Signature Requirements.
(a) After the City Council approves the petition report and a City match if any match, the
City Administration shall create the final petition and distribute at least one copy to the
sponsor.
(b) The petition must include the petition report approved by the City Council and a
signature page with instructions.
(c) Upon receiving a copy of the petition from the City Clerk, the sponsor is responsible for
distributing the petition to all property owners within the approved boundaries and
collecting the signatures of those property owners who support the formation of the Special
Assessment District. Completed petition signature page(s) must be filed with the City Clerk
within 45 days of the date the City Clerk distributes the petitions to the sponsor.
(d) In order for the City Council to consider the proposed special assessment district
further. the petition must contain the signatures of the owners of record of (a) at least 60
percent of the total number of parcels subject to assessment within the proposed district
and (b) at least 50 percent in assessed value of the property to be benefited, in order to be
considered by the Council for formation.
( e) Multiple owners. When a parcel is owned by more than one person or entity, signatures
for each owner are required in order for the parcel to count towards the signature
thresholds.
(f) Signature bv Proxy. Signatures by proxy will not be accepted by the clerk.
(g) Power of Attorney. The signature of a power of attorney will only be accepted by the
clerk if the signature is accompanied by a copy of the Power of Attorney document
providing authority for such signatures.
(h) Business entities.
( 1) Corporations. Where a parcel is owned by the corporation. the petition must be
signed by two individuals: one of whom is the chair of the board, the president. or the
vice president. and the other of whom is the secretary or treasurer; or by another
person or persons who have been given authority via corporate resolution .
(2) Limited liability companies. Where a parcel is owned by a LLC, the petition must
be signed by a member if the LLC is member-managed, or by the manager, if a
manager has been designated .
(3) Other business owners . Where a parcel is owned by another type of business
entity , only those persons who have signatory authority to bind the business entity
under Alaska Statutes may sign the petition as owner.
( 4) Trusts. Where a parcel is owned by a trust. only the trustee may sign as the
property owner. If there are co-trustees . a majority must sign the petition in order for
the parcel to count towards the signature thresholds unless otherwise provided in the
trust document. The signature of the trustee(s) must be accompanied by a certification
that the trustee(s) has the authority to sign on behalf of the trust.
(i) City of Kenai. The City Manager shall be the designee for signing any petition when
City land is part of the proposed district. Where the City abstains from participating in the
petition signature process. the total number of parcels within the district. for the purpose of
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calculating the signature thresholds, will be reduced by the number of parcels owned by
the City within the proposed district.
(j) A signature on a petition may be withdrawn only by written notice from the signer
submitted to the City Clerk prior to certification of the petition signatures by the City Clerk.
A withdrawal is effective only if notice of the withdrawal is submitted before the filing of the
completed petition.
(k) The sponsor shall timely submit the petition signatures to the Clerk. If the Clerk finds
that the petition contains sufficient signatures. the Clerk shall after 45 days from the petition
is distributed to the sponsor. certify the petition and submit the petition to the City Manager.
who will prepare a resolution to form the district and proceed with the improvement for
Council consideration .
16.05.130 Restrictions on District Formation.
(a) A special assessment district may not be formed if it violates any of the following
restrictions:
(1) No assessments shall be levied in excess of twenty-five (25%) percent of the fair
market value of property after giving effect to the benefit accruing from the work or
action for which assessed.
(A) For the purposes of this restriction. the estimated amount of the assessment
against a parcel will be reduced by the amount of a prepayment of the
assessment for the parcel that is received by the City before the Council acts on
the resolution to form the district and proceed with the improvement. If the
Council does not approve the resolution to form the district and proceed with the
improvement, the City will refund the prepayment.
B. Any such prepayment must be received no later than the close of business at
least 15 days prior to the date the Council will act on the resolution to form the
district and proceed with the improvement.
(2) In no case shall a special assessment district be approved by the Council where
properties that will bear more than 10 percent of the estimated costs of the
improvement are subject to unpaid, past-due Kenai Peninsula Borough or City
property taxes at the time the Council approves the resolution to form the district and
proceed with the improvement.
(A) For the purposes of this restriction. the delinquent tax may be paid before the
City Council acts on the resolution to form the district and proceed with the
improvement. Any such payment must be received no later than the close of
business at least 15 days prior to the date the Council will act on the resolution
to form the district and proceed with the improvement.
(b) The legal description of parcels within the proposed district as of the date of the City
Council resolution to approve the petition report and recommend a match will be used to
determine assessment. No subdivision. reversion of acreage, or lot line adjustment will be
recognized for assessment purposes after the City Council approves a resolution to
approve the petition report.
16.05.140 Resolution to Form District and Proceed with Improvement.
(a) The City Manager shall submit the following information to the Council with the
resolution to form the district and proceed with the improvement:
(1) The petition report. updated to account for any change in information;
(2) A description of the current condition of improvements to be improved. and a
statement of the need for the proposed local improvement; and
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(3)The method of financing the improvement; e.g ., bonding , City investment. or a
combination .
(b) The Council shall hold a public hearing on the resolution. The Clerk shall give notice of
the public hearing on the resolution:
(1) By certified mail, return receipt requested, mailed not less than 30 days before the
date of the hearing. to each record owner of a parcel in the proposed district; and
(2) By publication once a week for two consecutive weeks in a newspaper of general
circulation in the City, with the first publication appearing not less than 30 days before
the date of the hearing; and,
(3) By posting on or near the property to be improved in a location where the posting(s)
may be reasonable noticed by affected property owners
(c) Each notice of the public hearing shall include the following :
( 1) A description of the special assessment district and the proposed improvement;
(2) The date of public hearing:
(3) The place for reviewing the estimated assessment roll. and
(4) The procedure for presenting objections to the formation of the district.
(d) Written comments . including any objections as to the necessity of the formation of the
district may be filed with the City Clerk for a period of 30 days after mailing the notice of
the public hearing.
(e) After public hearing, the Council may adopt the resolution to form the district and
proceed with the improvement. The resolution must:
(1) Describe the improvement and its location;
(2) Describe the parcels benefitted by the improvement;
(3) Approve the estimated cost of the improvement;
(4) Make a finding that the improvement is necessary and should be made
(5) Identify any parcels within the boundaries excluded from the district. which will not
receive the benefit of the improvement and will not be subject to the assessment;
(6) If the City manager signed the petition on behalf of the City, approve the City
Manager's action;
(7) Include an estimated assessment roll showing the amount of the assessment
against each parcel;
(8) Authorize the City Manager to proceed with the design and construction of the
improvement; and
(9) Require the clerk to record in the district recorder's office a copy of the resolution
to proceed and the estimated assessment roll.
(f) After passage of the resolution to proceed . the improvement may be constructed in any
manner consistent with applicable City Ordinances.
16.05.150 Ordinance of Appropriation.
(a) An ordinance of appropriation shall be scheduled for action at the same Council meeting
as the resolution to form the district and proceed with the improvement. The amount of the
appropriation shall be equal to the estimated cost of the improvement presented in the
petition report under, including a reasonable contingency .
(b) In the event that the lowest. responsive . responsible. qualified bid exc eeds the
appropriation . and the price cannot be reduced. then no contract may be entered without
further Council approval and if additional costs to the property owners are required .
certification of a new petition .
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16.05.160 Ordinance Levying Assessments.
(a) After the improvement has been completed and the actual cost ascertained. the City
Manager shall prepare and submit to the City Council an assessment roll containing a
description of the parcels in the special assessment district. the names of their record
owners . and the amounts of the assessments. The assessment roll shall be submitted with
an ordinance confirming the assessment roll and levying the assessments . The ordinance
shall provide for the levying of the assessment against the property included within the
district and may establish a s inking fund for payment of principal and interest on any bonds
which may be sold to finance the improvement. The ordinance shall also fi x times of
payment. schedule of payments. rate of interest on unpaid installments . the date of
delinquency of assessments, and the penalty and interest to be paid on delinquent
assessments. On delinquent assessments. penalty shall be in accordance with the
provisions of KMC
The assessment roll shall be filed with the City Clerk at the time of the introduction of the
ordinance and shall be open to public inspection .
(b) The City Clerk shall give notice of the public hearing on the ordinance:
( 1) By regular mail mailed not less than 10 days before the date of the hearing to each
record owner of a parcel in the district; and
(2) By publication in a newspaper of general circulation at least once a week for four
consecutive weeks.
(c) The notice mailed to each record owner in the district shall state that the assessment
roll is on file in the office of the Ci ty Clerk and is available for public inspection . the time
and place for the hearing of objections to an assessment. and the amount of the
assessment to be levied against the parcel.
(d) After the public hearing on the ord inance, the Council shall correct any errors or
inequalities in the assessment roll. and confirm the corrected roll by adoption of the
ordinance.
16.05.170 Payment.
Payment may not be required sooner than si x ty (60) days after assessment. Payment may be
in a lump sum or by installments .
16 .05.180 Not ice of Payment.
(a) Within thirty (30) days after the time of payment has bee n fixed. the Ci ty Clerk shall
mail a statement to each owner of record designating the property , the assessment
amount. the time of delinquency, and penalties .
(b) W ithi n five (5) days after the statements are mailed , the City Clerk shall
publish notice t hat the statements have been mailed.
16.0 5.190 Object ion and Appea l.
(a) The regularity or validity of an assessment may no t be contested by a person who did
not file with the City Cle rk a written objection to the assessment roll before its confirmation.
(b ) The decision of the City Council upon an objection may be appealed to the Superior
Court within thirty (30) days of confirmation of the assessment roll.
(c) If no ob jection is filed or an appeal ta ken within the time provided in th is section , the
assessment procedures shall be considered regula r and valid in all respects .
16 .05.200 Reassessment.
(a) The City Council shall within one (1) year correct any deficiency found by a court in an
assessment.
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(b) Procedure for notice and public hearing for reassessment must conform to that utilized
for the initial assessment procedures.
(c) Payments on the initial assessments are credited to the property upon reassessment.
(d) The reassessment becomes a charge upon the property notwithstanding failure to
comply with any provision of the assessment procedure.
16.05.210 Supplemental Assessment .
(a) If additional costs are incurred that are chargeable to an assessment district after the
initial assessment roll has been approved by the City Council. the City Manager may
prepare and file with the City Clerk a supplemental assessment roll .
(b) Procedure for notice and public hearing for a supplemental assessment must conform
to that utilized for the initial assessment.
(c) Billings and payments on a supplemental assessment shall be kept separate from the
initial assessment. Supplemental assessments may have payment terms and due dates
different from the initial assessment.
(d) More than one supplemental assessment may be allowed .
(e) The sum of all supplemental assessments in any one assessment district may not
exceed twenty percent (20%) of the initial approved assessment roll.
16.05.220 Principal Payment Deferral
(a) The principal of the special assessment lien on real property owned and occupied as
the primary residence and permanent place of abode by a Kenai resident who is indigent
may be deferred as provided in this section . The deferral of payment on the principal of
the special assessment lien means that such payment will be postponed, but not
forgiven. Interest will continue to accrue on the assessment during the period of deferral.
(b) For purposes of this section, a resident is indigent if the person's adjusted gross
income is less than 200 percent of the current U .S. Health and Human Services Poverty
Guidelines for Alaska. An application for indigence may be filed on a City form with the
City Clerk no later than February 1 of each calendar year.
(c) Deferral is for the principal balance only. Individuals who qualify for the deferral must
pay the accrued interest by the due date each year.
(d) The deferred assessment, including all unpaid accrued interest, becomes due and
payable in full when the property ceases to be owned or occupied by the Kenai resident
who qualified for the deferral. Any remaining balance due shall be paid on the same
schedule as would have been in place if no deferral had applied.
(e) If the resident who previously qualified for the deferral no longer qualifies. but
continues to own and occupy the property. then payments on the principal will resume,
starting with the next payment due.
Section 2. Severability: That if any part or provision of this ordinance or application thereof to
any person or circumstances is adjudged invalid by any court of competent jurisdiction, such
judgment shall be confined in its operation to the part, provision, or application directly involved
in all controversy in which this judgment shall have been rendered , and shall not affect or impair
the validity of the remainder of this title or application thereof to other persons or circumstances .
The City Council hereby declares that it would have enacted the rema inder of this ordinance even
without such part, provision , or application.
Section 3. Effective Date : That pursuant to KMC 1.15.070(f), this ordinance shall take effect
30 days after adoption.
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Ordinance No. 3034-2018
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ENACTED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, this 15th day of August, 2018.
A_, . xke-e S,.
BRIAN GABRIEL SR, MAYOR
Introduced: July 5, 2018
Enacted : August 15, 2018
Effective: September 14, 2018
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''tltff~ «1/tfi · a Pa~t, Ct~ «1/t/i a h.twc-e 11
210 F idalgo Ave , Kenai , Alaska 99611 -7794
Telephone : (907) 283-7535 I Fax: (907) 283-3014
www.kenai .ci ty
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
Mayor Brian Gabriel and Kenai City Council
Scott Bloom, City Attorney
June 27, 2018
Ordinance No. 3034-2018 -Local Improvement Districts/ Comparative
Analysis
This memo compares the proposed changes in Ordinance 3034-2018 to the existing code :
1. 16.05.010 Assessment Authority
This section, which describes the City's assessment authority , is materially the same as the
existing KMC 16.05.010 except that language in existing KMC 16.05.010 (b) regarding restrictions
on assessments is moved in the Ordinance to KMC 16.05.130-Restrictions on District Formation ,
for consistency and clarity.
2. 16.05.020 Authorized Cap ital Improvements
This section , listing the types of projects which can be constru cted or improved by the creation of
a local improvement district, replaces KMC 16.05.060 . The main revis ions are the removal of
temporary services such as dust control and snow removal which are inconsistent with capital
improvements, and the removal of projects such as off-street parking, parks and playgrounds and
public shelters . The projects removed were projects that benefit the community as a whole , and
are not conducive to defining an assessment district.
3. 16.05.030 Property Assessed
This section describi ng the property that can be assessed fo r a capital improvement is materially
the same as the e xisting KMC 16 .05 .070 .
Page 2 of 4
Ord. No . 3034-2018
4. 16.05.040 Amount Assessed
This se ction is materially the sa me as ex isting KMC 16.05 .080 and provides that the City can
assess 100% of the projec t costs to benefited properties and that the benefited properties should
generally pay in proportion to t he benefit received .
5. 16.05.050 Costs
This section describing the costs that can be assessed for a project is materially the same as
existing KMC 16.05.090.
6. 16.05.060 Pe r miss ible Methods for Fina ncing Local Improvement Districts
This section describing the funding sources the City can use to finance a projects ; City funds ,
grant funds and bonds, is similar to existing KMC 16.05 .050 and only clarifies that grant funds
can be used and that the use of special assessment bonds must comply with the City's applicable
Charter restrictions on bonding.
7. 16.05.070 Method of Assessment
This section , similar to exi sting KMC 16.05.100, describes that generally assessments are
determined based on the total project cost divided by the number of benefited parcels. The new
section removes specific language regarding determinations based on lot frontage to
improvements, to allow greater flexibility for Council to determine assessment methods and
consistency with current practice .
8. 16.05.080 Initiation of Special Assessment District
This section describes that the formation of a special assessment district may be started by a
c itizen sponsor submitting an application to the City Clerk, or by Council resolution directing the
City Manager to submit an application to the Clerk. This new section provides more detail on how
the process is started, as compared to ex isting KMC 16.05 .020 .
9. 16.05.090 Review of Petition Application
This new section of code provides for an upfront interactive process between the petition sponsor
and administration to review the sponsor's plans and ensure they meet the minimum objective
requirements for an assessment district. Only once the City Manager confirms that the minimum
requirements are met, will the City Manager provide a report for Council along with a resolution
to approve an engineer's or architects cost estimate . The process of the City Manager providing
a report to the City Council is somewhat similar to ex isting KMC 16 .10.010, however the new
code prov ision is more specific as to the information to be provided to Council.
10 . 16.05.095 Reso lution Approvi ng Eng ineer's o r Architect 's Estimate
This is a new section of code consistent with the theme of the changes to the process in making
sure that as much information is known to the property owners before they sign a petition in favor
of the impro vement. After reviewing the report and recommendation by the City Manager, the City
Council decides in the first legislative action whether to spend funds to obtain a cost estimate
from a professional. Council's approval is subject to the sponsor providing $1 ,500 as an
application fee . This fee serves to purposes, it ensures the sponsor is serious about go ing forward,
Page 3 of 4
Ord. No. 3034-2018
and helps defray the City's costs should the project not proceed. Once the professional cost
estimate is received, the City ensures the project still meets the minimum requirements for the
district formation and the sponsor must confirm that he or she still wants to proceed . Once this is
completed the City Clerk will provide a notice to all the residents and the City will prepare a petition
report.
11. 16.05.100 Preparation and Issuance of Petition Report
This new section requires the Administration to prepare and issue a pet ition report with specific
information. The intent again is to ensure all relevant facts within reason are known prior to
property owners signing a petition. Existing KMC 16.05.030 touches on the petition report having
a description of the improvements, but no other specific requirements .
12. 16.05.110 Ordinance to Approve Petition Report and Matching Funds.
This new section of code provides for the council to approve the petition report, which will be
circulated with the petition, and commits any matching funds. An ordinance is required to commit
the matching funds. There is not an equivalent section in existing code.
13. 16.05.120 Circulation and Filing of Petition; Signature Requirements
This new code section provides much greater detail on the process for signing and collecting
signatures than in the existing code section KMC 16.05.030. The petition must include the petition
report approved by Council including the amount of matching funds, if any. The biggest change
from existing code is requiring 70% of property owner's signatures versus 50% in the existing
code. This is a significantly higher bar.
14. 16.05.130 Restrictions on District Formation
This section describes certain restriction on forming an assessment district. For example
assessments can 't exceed 25% of the value of a benefited parcel, and there is a threshold for the
number of properties that can have unpaid City and Borough sales taxes. These provisions are
to safeguard the City 's ability to recoup its costs . The 25% threshold comes from existing KMC
16.05.010 and the safeguard for unpaid property taxes is new. The idea being if property taxes
are not paid , neither will assessments be paid.
15. 16.05.140 Resolution to Form District and Proceed with Improvement
This section of code provides for the legislation to form the district and proceed with construction
of the project. It requires the Clerk to give notice for the hearing by certified mail at least 30 days
before the Resolution and to advertise , including a new requirement to post temporary signage at
or near where the improvement is to be constructed or improved . This is a similar process as to
what is described in existing KMC 16.10.040 through 070, except that in the process proposed
there is more certainty in the project scope and process. This allows the City to move away from
allowing 50% of property owners who might object to the project at this point to stop it, as provided
in e xisting KMC 16.10.070, because the property owners had more information that is not subject
to change earlier in the process . For example, an engineer's estimate which the City commits to
not exceeding and commitment of matching funds.
16. 16.05.150 Ordinance of Appropriation
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Ord. No . 3034-2018
This is the legislation appropriating the funds to construct or improve the project. The new
proposed ordinance provides that the project will not go forward if the bid amount exceeds the
appropriated amount, which matches the amount circulated in the petition. This is to ensure that
the property owners cost is not increased without their approval. Appropriation of funds is not
specifically provided for in the existing Chapter on assessment districts .
17.16.05.160 Ordinance Levying Assessments
This section provides the legislation that creates the levy of assessments after the project has
been completed . It is similar to existing KMC 16.10.080 through 130.
18.16.05.170 Payment
This section specifies that payments can be made in installments or lump sum and cannot be
required until at least 60 days after the assessment. This mirrors existing KMC 16.10.140.
19. 16.05.180 Notice of Payment
This section provides notice requirements for payments due and is the same as existing
16.10.140.
20. 16.05.190 Objection and Appeal
This section which provides the process for appealing an assessment is the same as existing
KMC 16.10.160
21.16.05.200 Reassessment
This section describes the process for a reassessment if a court finds the City 's process deficient.
It is the same as existing KMC 16.10.170.
22. 16,05.210 Supplemental Assessment
This section which is the same as existing KMC 16 .10.180 provides for a process for a
supplemental assessment, should one be needed.
23. Principal Payment Deferral
This is a new section of code that provides a payment deferral process of indigent residents in an
assessment district.
"tlrffate a1it/e, a Pair~ Ct'tj a1/t/e, a f"v.tu.r-e 11
210 Fidalgo Ave , Kenai , Alaska 99611-7794
Telephone: (907) 283-7535 I Fax: (907) 283-3014
www.kenai .city
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
Mayor Brian Gabriel and Kenai City Council
Henry Knackstedt, Council Member
June 27, 2018
Ordinance No. 3034-2018 -Repealing Kenai Municipal Code Chapters
16.05-General Provisions, And 16.10-Procedure , Within Title 16-Public
Improvements and Special Assessments and Re-Enacting and Renaming
Chapter 16.05-Special Assessment Districts
Ordinance 3034-2018 is a significant rewrite of two existing Chapters of City code governing the
creation of special assessment districts to complete or improve capital projects.
After experiencing the process at the City and drawing from my professional experience in road
improvement assessment districts, I feel the City 's process can be improved. There are three
main themes to the recommended changes: ( 1) provide certainty to property owners before they
sign a petition; (2) provide increased notice to property owners and the public; and (3) provide
specificity in code regarding each step of the process. While these projects generally never make
everyone happy, at the very least the amendments are intended to ensure all affected property
owners are well informed and understand the process as much as reasonably possible. The
proposed amendments do require 70% of property owners to support the project instead of 50%
as is currently written, to ensure a greater majority support the projects.
Providing certainty to property owners is addressed by providing a professional estimate of cost
that cannot be exceeded without a new petition, having the City commit to matching funds if any,
and providing a City approved petition report prior to property owners signing a petition. Increased
notice is accomplished by requiring certain notices to be certified, more notice, specifying the
information that must be contained in notices , additional publication of notices and even physical
posting of notices near the project. Increasing specificity in the process includes specifying when
subdivisions of property must be completed to count for voting and assessment purposes, what
information must be in the petition report, and who can sign a petition .
Other significant changes include providing for a more interactive process at the beginning
between the City and petition sponsor to determine project scope and boundaries. Requiring a
$1,500 filing fee to move forward after the administration is comfortable that the project meets
Page 2 of 2
Ord. No. 3034-2018
minimum requirements and before significant City resources are spent. The amount is intended
to help defray City costs if the project does not go forward after City funds are spent and to make
sure the sponsor is serious about going forward with the project. I also recommend including a
payment deferral process for low income residents, so that projects can be completed without
increased costs to vulnerable residents while protecting the City's interest through security in the
property.
Attached is a flow chart of the process that the Ordinance proposes .
Thank you for your consideration.
'Vtff ~ tt1/tlv a Paif~ Ct'tf tt1/tlv a h.tar-e 11
210 Fidalgo Ave, Kenai , Alaska 99611 -7794
Telep hone: (907) 283-7535 I Fax: (907) 283-3014
www. kenai.city
MEMORANDUM
TO:
FROM:
DATE:
Mayor Brian Gabriel and Kenai City Council
Scott Bloom, City Attorney
August 9, 2018
SUBJECT: Amendment Memorandum for Ordinance No. 3034-2018 -Repealing
and Replacing Chapter 16.05 Special Assessment Districts.
This memorandum provides recommended amendments to Ordinance 3034-2018 . I request
Council move the following amendments:
1. Amend section 16.05.120(h)(4) on page 12 of 17 of the Ordinance by clarifying the
signatory requirements for trusts:
(4) Trusts . Where a parcel is owned by a trust, only the trustee may sign as the
property owner. If there are co-trustees, a majority must sign the petition in order for
the parcel to count towards the signature thresholds unless otherwise provided in the
trust document. The signature of the trustee(s) will only be accepted by the clerk if it
is accompanied by a copy of the trust document. must be accompanied by a
certification that the trustee(s) has the authority to sign on behalf of the trust.
2. Amend section 16.05 .140(f) on page 14 of 17 of the Ordinance by maintain decisions
consistent with current city code at the time the assessme nt is levied :
(f) After passage of the resolution to proceed , the improvement may be constructed ~
force account or by contract, or in any other manner provided by lm'V. in any manner
consistent with applicable City Ordinances.
3 . Amend the Special Assessment Flow Chart to remove and replace Resolution with
Ordinance in KMC 16.05.095(e) notice inclusions.
Thank you for your consideration