HomeMy WebLinkAboutORDINANCE 0333-1977CITY OF KENAI
ORDINANCE NO. 333-77
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA , PROVIDING
FOR A SPECIAL EXCEPTION TO ORDINANCE NO. 314-76 RELATING TO SPECIAL
DEFERRED ASSESSMENTS, WATER AND SEWER.
WHEREAS, the Far~o~a Homestead on Redoubt Boulevard, City of Kenal, fronts
some 2,110 feet on a water and sewer line provided by improvement assessment
disi~'iet, and
WHERe. AS, certain representations were made to ,e. dley 8nd/o~, ~uth D~sons by
ad.ministration at the time of forming and levying such assessments, e~nd
WHEREAS, in the interest of equity, certain adjustments are required.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KF~NAI,
ALASKA, as follows:
Section 1: Deferred assessments on Sewer District S-2, Resolution
No. 76-82, Identification Numbers 207 and 208 in the amounts of $8,974 and $9,153.00
respectively and Wate~ District W-l, Re~olution No. 76-8I, ldenttfleation Numbers 332
and 333 in the amounts of $8,974.60 and $9,153.00 respectively, Pa~sons Homestead,
be exempt f~om provisions of those resolutions relative to deferred assessments and
Ordinance No. 314-76 of the City of Kenai to the extent that the above listed deferred
assessment be exempt from interest and/or penalty until any part of the homestead
as it exists as of January I, 1977 is subdivided or title or oont~ol is transferred to
other than Hedle¥ and/or Ruth Parsons, owners of re~ord as of January 1, 1977.
Section 2: Those assessments not deferred, $3,341.25 for each water
improvement and sewer improvement, may be paid in f~ll without penalty
if such payment is made pMor to May 20, 1977.
ORDI~ANCE NO. 333-77, Page Two
Section 3: As per exi~ing policy, water and sewer connections may be
made at the property owners expense upon payment only of existing, water and
sewer tap fees.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this
of April, 1977.
City Clerk
20th
FIRST READING:
SECOND READING:
F~FFECTIVE DATE:
Ap~ql 6, 1977
April 20, 1977
n~,~v 20. 1977
day
P~ep~red fst
Ap~:o~ed ~sr
, I , ! '~ ~ ' ,I ~ ....
II ' , ' , , ~ ' "]~
MEMORANDUM TO:
FROM:
DATE:
SUBJECT:
CITY OF [(ENAI, ALASKA
Honorable Mayor & City Council
J~nis C. Williams, City Attorney
March II, 1977
PARSOMS ASSESSMENTS
The Parsons have requested that they be allowed an extension of time to pay their
regular assessment without interest or penalty and that they, in effect, be exempted
from the provisions of Ordinance 314-76 rel~ardinf~ special deferred assessments
which was passed by the Council in October of 1976.
I have discussed this question with the Finance Director and he has asked whether
it would be legal to take such actions in light of the constitutional equal protection
guarantee.
Equal p~,otectton in the sense that it applies in this ease, requires impartiality
as between persons similarly situated. The genre, al rule is that equal protection
is denied where a public law applies (in its operation as distinguished from its
enforcement) differently to different persons under the same or similar circum-
stances.
Thus, to decide the question, we must look at the other persons affected as
well as the Par~ns. With regard to the regular (un-deferred)
assessments representing the first 330 feet of frontage, I cannot see that the Parsons
are in any different situation than any of the other persons in the 1973 districts.
This, however, is a question for determination by the leRdslative body.
To aid you in maktnp: your decision, you ne~.d sufficient data to determine why
the Parsons are or are not differently situated.
With regard to the special deferred assessments, the Parsons property could
possibly be construed to be in a different class from other properties upon which
special deferred assessments have been levied because of the very large amount of
frontage on the water md sewer lines. It is only where some persons which are
excluded from the operation of the ordinance a*'e, as to the particular subject
matter, in no differenttable class from those included in its operation that the ordinance
eon be declared dise~mtnatory in the zense of being ax~itrary and uneonstitutional.
In order to determine if the Parsons are in a differentiable class, their property must
be compared with all other properties which have speetal deferred assessments
levied against them. To Make your decision, you need detailed information regarding
the other special deferred assessments. It is a~ain a legislative determination. If
there is reasonable b~sis for any elassificstion the Council might choose to make,
the courts are unlikely to overturn it.
MEMORANDLWI TO:
DATE:
SUBJECT:
CITY OF KENAI, ALASK~
Honorable Mayor & City Council
Ross A. Kinney, Finance Director
March I1, 1977
SPECIAL ASSESSMENTS
Mr. and Mrs. Parsons have requested that payment of assessment levied
on the first 330 feet of frontage in the amount of $6,682.50 be paid in a lump sum
without interest and penalty ff paid within 60 days of Coun, tl approval.
It should be pointed out that the penalty was forgiven for installments
due prior to April 1, 1977 and interest for the period of ~areh 1, 1973 to l~areh 1,
1974 was waived.
Ccnumcil policy to-date has been that 8% interest has and will be charged
on the outstanding prdneipal amount to the date of payment. Penalty of 10%
will be charged on delinquent installment payments made after April I, 1977
with the ~xeeption of the 1975 and 1976 installments. To allow the Parsons the
advantage of not paying the 8% interest from March 1, 1974 to the date of payment,
and waiver of the 10% penalty on the 1977 installment payment should it not be
paid prior lo April I, 1977 would be an injustice to the other property ownc~.s
against whose property asses~rnents were levied unless they are also allowed
the same privilege.
Assessment prineipal and interest payments recsived thus far by the
City and those to be received in the future on the 1973 distidets will not pay the
prini~ipal and interest on the bonds sold lo finance the construction of the various
Any reductions in principal, interest, and penalty such as those that
have been made and those being considered are simply shifting the burden of
payment from those who benefitted to the City as ~ whole. The monies required
to rstire the bonded debt remain unchanged.
The question of dc~....~t'red assessments has once again been raised. The
Parsons are requesting that $36,255.20 of assessments be defert, ed until the
property in question is subdivided or title transferred from their family. In
order to accomplish this, Ordinance No. 314-76 must be rescinded.
The repeal of this crdinanee raises the following questions:
I. What sources of funding will be used to retire the bonded indebted-
ness in lieu of these assesi~ents?
2. How does the City intend to app',y the money sl~ould the prope~y
not be subdivided or title t~ansferred prior to date of final payment on the bonds.".
RAK: sp
MEMORANDUM, Page Two
Another problem is the mechanics by which the Parsons could be given the
proposed exemptions.
The extension of time to pay without penalty and the exemption from interest
proposed would require a resolution which would in effect amend the reassessment
resolutions recently passed. I again would advise you against taking this action
only for the Parsons because I cannot see how they are in any dfffex, ent situation
from other persons in these districts.
It will require an ordinance to treat the Parsons differently from others with
t'egard to special deferred assessments since the Weatment of all special deferred
assessments was established by Ot'dinanee 314-76, In light of the Pere~ns situation,
the Council might wish to reconsider the policies set fot'th in Ordinance 314-76.
If you axe going to heat, the Parsons, the only fair wsy to handle the matter would
be to eau for a public hearing with notice to all persons with special defert,ed assess-
monte. In this way, you would heat, the problems of tho other property owners and
be in e better position to determine s possible new policy ox* a basis for dffferent~t~on
of the Parsons,
Jew: sp
CITY OF KENAI
ORDINANCE NO, 314-75
AN ORDINANCE OF TIlE COUNCIL OF TIlE CITY OF EENAI CLAR!FYING TI-IF. STATUS
OF SPIICIAL DEFERRED ASSESSMENTS IN CERTAIN WATER AlgD sEWER IMPROVEMENT
DISTRICTS,
WIIERF, A$, Ordinance 234-73 creating Sewer Improvement District 73-S2,
Resolution 74-4 creating Water Improvement District No. 80 Resolution No. 74-5
erecting Water Improvement District ?3-Wl, Resolution No. 74-6 creating Water
Improvement District 73-W2, Resolution No. 74-9 creating Water Improvement District
?$-W$, Itcsolution 74-10 creating Sewer Improvement District 73~S1 contain a provision
reading as follows:
fie much of parcels of benefitted land with frontage in excess of 330 ft.
on this distrdet, held as an unsubdivided parcel, may have payments
deferred on assessments until such parcel or parcels are subdivided.
WHEREAS, such provisions do not clearly delineate how and when such special
dofom'cd payments arc to bo made, and
WHI~RI~AS, it is the intent of the Council to establish a policy with regard to special
deferred payments in the above-named districts,
NOW, THIIIilIFORE, Bll IT ORDAINED by the Council of the City of Kenai, Alaska
aa follows:
Section I: Section 5(R) of Resolutions 74-1, 74-5, 74-8, 74-9 and 74-I0
and Section 40/) of Ordinance 254-73 are and each of them is hereby amended to
road in their antS'sty as follows:
R. Parcels of benefitted land in this district with frontage
in excess of 330 feet may have that portion of their assessment payments
attx'ibutable to the excess of 330 feet deferral', until such parcel is sold
or r. ubdividc~. If any payments are deferred, they shall bc handled in the
following manner:
a. Tho total special deferred assessment shall be set up in
installments over tho life of the district in the same manner as assessments
which have not boon deferred. Such schedule of installments is hereinafter
referred to as tho '~ nstallmont schedule". The sum of the principal and
interest of oath payment shall be hereinafter referred to as the "annual
installment". The dates upon which payments are due in accordance with the
installment schedule arc hereinafter referred to as tho "schedul~ due dates".
~)FtDINANCE NO. 3[~'6 ~ Page Two
b. No annual installment on spectral deferred assesamenls shall be
due until .'.he parcel is subdivided o~ title to the parcel is transferred. A
parcel shall be deemed subdivided when the subdivision plat is duly recorded
with the Kenai District Recorder in a~cordanee with statute, The title to a
parcel shall be deemed to have been transferred when the instrument evtdencl.'.l~;
transfer of title is duly recorded with the Kenai District Recorder in a~cordance
with ~tatuteo
o, Upon subdivision of a parcel, all annual installments whose
schedule due dates have posed, shall be flue and payable with interest at the
rate of $ percent on the principal portion of each annual installment from its
schedule due date to the date payment is made, If payment is not nJade within
90 days of the date of subdivision, a penalty of I0 percent shall be added to
the amount due, Such penalty shall be based on the total of the annual install-
ments only and not upon interest on the annual installments.
d. Upon transfer of title to a parcel, annual installments shall be-
como sue in the same manner as if the parcel were subdivided and interest
and penalty shall be computed in the same mannee.
e. Annual installmenls remaining after payment is made in accordance
with sv.~pat-a~-~'aphs e. or d. hereinabove shall be made according to the
installment schedule in the same manner as assessments whioh have not been
deferred.
f. In the event special deferred assessments on a parcel have ~ot
been paid in accordance with othe~ applicable provisions of law by the last
schedule due date in the installment schedule, all annual installments in the
installment eehedule shall immediately become due and payable with interest
at the rate of $ percent on the prinlcipal portion of each annual installment
from its schedule due date to the date of payment. If payment is not made within
90 days of the last schedule due date, a penalty of 10 percent on the total
of all the annual ins!.nlJments shall be added to the amount du ~,
· Ig, Parcels upon which special deferred assessments have become
due and payable shall be subject to foreclosure in accordance with statute
in the same manner as parcels with assessments which have not been deferred.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 20th
October, 1976.
ATTEST:
'S~ C. Peter, City Clerk
MAYOR JAMES A.'ELSON
day of
FIRST READING: october' 6, 1976
SF, COND READING: October 20. 1976
]~FFECTIVF, DATE: November 20,-1976
Mayor & Council
(;lty of
:'.0, Po×
I:h'U; 'llato' :~r~'J ,Sewer' Ar;::r:r;r;menL~ - ,'3-2:
~entlemen:
When the City proposed in~t~l].ation of w~ter and sewer
liner, ~n Uomoslte Loop ;..butting our property, we ob-
Jected. We did not der-;~.re p,;bJ, ic '::;~ter :~nd cov;e~ at
that time end had no intention of subdividing or other-
wise developing our home~tood. No'~/ we are in receipt
of assessments totalling $4~-,'~37.70. At t. i~ time, v,e
are not utilt$ing public v,;~te or ~:cw,.z. nor do we intend
to use it in the foreseeable futu,'e.
In accordance with the attached letter, dated June 28,
1972, there was a pledge by the City that none of the
assessments would be duo until Item 1 or Item 2 were
effected. It also a'ppe¢~rs thr~t there would be no interest
levied ag;~lnot our propertie~ unti. 1, agsln, either Item 1
or Item 2 became effective.
Now we are 1nforme~ that:
I, The first 330 feet of _.~"~"~,,,,-........~_ is not exempt or de-
ferred from ~sses~ment - $6,682.~0 plus lntereut.
2. The ,-.,~],'Jtfon~Jl fronto':~;, op.~,roxJ..~atel:! 1900 fe t,
v,'hlle deferred, is belnr; char;ed 39 [ntore.'-~t. Further,
that thi~ mean.~ ~-,,/- .~.'0 :,,'ill ;ro'~; during the period
of deferral, ma×lmum of ton (10)
','e feel~ justifiably, that v~e have been misled and taken
odv:~ntage of.
We therefore petition the City gouncil to waive interest
during the life of the deferment and further', permi~
the deferment period to run until our homcste~d is sub-
divided or title trans£erred from the Parsons family.
We ~cree to ocknowledge and make approprlote po./ment on
the flrr~t ~,~,0 feet of £ronta~e totaling ~6,65~.D0 in a
lump sum~ no interest or penalty if paid within 60 days
of council approval; £urthor, that Parsons' house be
allowed %'~ater and se,~er v;~th no change in deferment,
only hook-up fees.
Enclosed is letter from City of Kenal doted June 2~, 1Q72.
Ruth A. Parsons
'X -- --
June 28, 1972
Star Route #3
Kenai, Alaska 99611
Dear Mr. & Mrs. Parsons:
In regards to your inquiry concerning assessments for
projects WPC-ALA-35 and WPC-AK-10-19-1017, Kenai's sewer
interceptor lines and water transmission line projects,
the City has outlined the following assess~:cnt prcvisions
for large undeveloped land holdings:
1. No assessment will be levied against the property
until the time of actual "hook up".
2. At that time, assessments will be levied only
against the subdivided lot on which the connected dwelling
sets.
3. Assessments under this provision shall be treated
according to the City's "payment in lieu of assessment
provision."
4. Property which falls under this category shall not
receive any consideration for having available water and/or
sewer facilities until the date of actual hook-up. Such
consideration shall cover subdivision rights, fire in-
surance adjustment or certificate of adequacy provisions.
I hope this clarifies your position in regards to future
assessments. However, should you require future info~mation,
please feel free to call this office at any time.
Sincerely,
¢..(' ~. '.',,,.,,k ~- ,~ ~. /~
Assistant City Manager