HomeMy WebLinkAboutRESOLUTION 1991-62SUSBSTITUTE
Suggested By:
~BBOM:/TZON 9~-6S
Mayor
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA,
DECLARING THE PROVIDING OF WATSRAND SEWSRSERVICES TO THOMPSON
PARK SUBDIVISION THE CITY OF KENAIeS 1992 NUMBER ONE, HEALTH
HAZARD PRIORITY AND REQUESTING FROM THE LEGISLATURE $4.5 MILLION
TO ACCOMPLISH THE PROJECT.
WHEREAS, the Thompson Park Subdivision was designed over
twenty years ago and many lots within the subdivision are
insufficient in size to be permitted by the Department of
Environmental Conservation, under present regulations, for on-
site septic tank, cesspool systems, and water wells; and,
WHEREAS, the City of Kenai is aware of the need and desire
of the residents of the Thompson Park Subdivision to receive
water and sewer services through testimony taken at a work ·
session in October, 1990 and a survey taken in October, 1990;
and,
WHEREAS, testimony and discussions have established'that
small lot sizes in the subdivision cause wells to be drilled in
close proximity to septic systems, which has resulted in the
redrilling of wells, diminished water q~ality, frequent
replacement of septic systems, creating an extreme health hazard;
and,
WHEREAS, the survey asked property owners of the Thompson
Park Subdivision if they wanted water and sewer installed tulder
the condition that the property owners will be assessed'25%'of
the actual cost; and,
WHEREAS, survey results received by the November 7, 1990
cutoff date confirmed:
Lots in Thompson Park: 178
Surveys Railed: 108
Surveys returned: 60
No. of Lots Returned Surveys Represent: 110%
~S
47 YES surveys representing 92% lots = 92% YES
13 NO surveys representing 18 lots =
18 NO
Page i of 2
NOW THEREFORE, BE IT RESOLVED BY THE coUNcIL OF THE CITY OF
KENAI, ALASKA, that the provision of water and~sewer services to
the Thompson Park Subdivision ts declared the City of Kenaits
1992 Number One, Health Hazard Priority; and,
BE IT FURTHER RESOLVED, that the City· of Kenai'reqUests $4.5
Million from the Legislature to accomplish the project.
PASSED BY THE COUNCIL OF THE CITy OF KENAZ, ALASKA, the'16thday
of October, 1991. --
~ t' , er Kev er
ATTEST=
(10/16/91)
l~Bl-lgB1
ENAI
210FIDALO, O KENAI, ALABKA 91~11
TELEPHONE 2e,t - 1'~
FAX 907-283-3014
TO:
FROM:
DATE:
SUBJECT:
Kenai City Council
Charles A. Brown, Finance Directo~
October 10, 199!
Thompson Park, Sample Assessment Roll
This memo explains the attached sample assessment roll dated October
10, 1991. The roll is D~t a prel~minary assessment roll; it does not
meet code requirements. It was prepared only to give Council and
administration an idea of the size of the project and potential
assessments.
Cost____~s
Costs of the project were provided by the Public Works ~)epartment, and
they are very preliminary.'
Sewer interceptor
Subdivision water and sewer
800,000
700,000
In October, 1990, a survey was sent to the property owners that
indicated an average assessment for an averaged size lot, based on an
assessment of 25% of cost, would be about $1,800. That figure was not
accurate. If we only assess 25% of subdivision water and sewer costs,
the estimated assessments will be about $537,066, as shown on the
attached sample roll, last column. This is an average assessment of
$3,399 per lot ($537,066/158 lots). The reason for the increase is
that the cost estimate of providing subdivision water and sewer has
doubled since the last estimate.
Assumptions
In order to prepare this sample roll in time to get it in the October
16, 1991 council packet, limited effort was conducted. Square
·
Memorandum
Kenai City Council
October 10, 1991
Page Two
footages, the basis for spreading costs, were estimated based upon tax
roll information. To obtain the charter limits (25% of fair market
value), I added $2,500 for water and $3,000 for sewer to assessed
values. I obtained these figures from the Borough assessing
department. For their purposes, they use these figures as an increase
in assessed value for water and sewer.
Council should be aware that the estimated assessment is the lesser
of:
(c)
Value of the benefit to the parcel.
Charter limit, 25% of fair market value.
Calculated assessment based upon square
costs.
footage spread of
I am most uncertain about (A), above. It is subjective and needs more
work. You may hear that if a homeowner has a good, reliable well and
septic system already on his lot, City water and sewer installed on
his street adds no value at all to his lot. Or, we could say that if
the lot is too small to develop now because of DEC restrictions on
size, then City water and sewer adds much more value than $5,500. I
can't deal with these arguments here.
Analysis
The estimated cost of the entire project, including the sewer
interceptor, is $4,500,000. This ts an average cost per lot of
$28,481 ($4,500,000/158). On the sample assessment roll, I spread the
entire project cost to each lot, based, upon square footage. _Look.at.._
the column entitled "Cost of Entire Project". For some parcels, it's
costing nearly $100,000 (based on square footage) to supply water-and
sewer to Thompson Park.
When we spread only direct subdivision costs (exclude the
interceptor), the average cost per lot reduces to about $17,000
($2,700,000/158). Of course, we are not proposing to assess that
much, but you ought to know what the total costs are.
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