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HomeMy WebLinkAboutRESOLUTION 1977-281 i i ~ ,~ ~ . CITY OF KENAI ~G~~ ~ ~~ 4~ RESOLUTION NO. 77-28 / ~~~ ~~ ~, A RESOLUTION OF THE COUNCIL OF THE. CITY OF KENAI, ALASKA, WANING INTEREST IN A DEFERRED ASSESS!11F.NT AND EXTENDING THE PERIOD OF DEFERMENT. WHEREAS, the Parsons Homestead on Redoubt Boulevard, City of Kenai, fronts some 2,110 feet on a water and sewer line provided by improvement assessment district, and WHEREAS, certain representations were made to the Parsons family by the City administration at the time of forming and levying such assessments, and WHEREAS, in the interest of equity, certain adjustments are required. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Kenai, Alaska, that deferred assessments on Sewer District S-2, Resolution No. ?6-82, " Identification numbers 20? and 208 in the amounts of $8,974.60 and $9,153.00 respectively and Neater District W-1, Resolution No. 76-81, Identification Number 332 and 333 in the amounts of $8,974.60 and $9,153.00 respectively, Parsons Homestead, be exempt from 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 pe:ialty until any part of the homestead as it exists as of January 1, 1977 is subdivided or title or control is transferred from the Parsons family. BE IT FURTHER RF^QLVED that those assessments not deferred, $3,341.25 for each water itnp=~ovement and sewer improvement, may be paid in full without penalty or interest if such payment is made prior to A4ay 1? , 1977. BE IT FURTHER RESOLV>:;D that as per existing policy, water and sewer connections may be made at the property owner upon payment only of existing water and sewer tap fees . v'~~w PASSED $Y THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 16th day of March, 1977. ATTEST: JAMES A. ELSON, MAYOR Sue C. Peter. City Clerk ---~--T --- _ _ _ _ _ _ _ ~ ~ ~~-.-.- CITY OF KENAI , ALASKA ^ MEA40RANDUR4 TO: Honorable ~-~[ayor ~ City Council FROM: Janis C. Williams, City Attorney DATE: March ll, 1977 SUBJECT: PARS(1NS ASSESS~-'-F.NTS 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 regarding special deferred assessments which was passed by the Council in netober 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 protection in the sense that it applies in this case, requires impartiality ' as between persons similarly situated. The general rule is that equal protection ~ is denied where a public law applies (in its operation as distinguished from its ~ enforcement) differently to different persona under the same or similar circum- ~ stances. Thus, to decide the question, we must look at the other persons affected as well as the Parsons. 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 legislative body . To aid you in making your decision, you need 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 speeiel deferred assessments have been levied because of the very large amount of frontage on the water and sewer lines. It is only where some persons which are excluded from the operation of the ordinance are, as to the particular subject matter. in no differentiable class from those included in its operation that the ordinance can be declared discriminatory in the sense of being artitrary and unconstitutional . In order to determine if the Parsons are in a differentiable class, their property must be compared with all other properties which have special deferred assessments levied against them. To make your decision, you need detailed information regarding the other special deferred assessments. It is again a legislative determination. If there is reasonable basis for any classification the Council might choose to make, the courts are unlikely to overturn it. 1 u ~~ i r~ I ~ r ~__ /'1 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 fn 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 different situation from other persons in these districts. It will require an ordinance to treat the Parsons differently from others with regard to special deferred assessments since the treatment of all special deferred assessments was established by Ordinance 314-76. In light of the Parsons situation , the Council might wish to reconsider the policies set forth in ordinance 314-76. If you are going to hear the Parsons, the only fair way to handle the matter would be to call for a public hearing with notice to all persons with special deferred assess- ments. In this way, you would hear the problems of the other property owners and be in a better position to determine a possible new policy or a basis for differentiation of the Parsons. JCW: sp ,i ~J ~ - l~ - ---- - --- --- 'Z '"_ CITY OF KENA1, ALASKA MEMORANDUM TO: Honorable Mayor 4 City Council FROM: Ross A. Kinney, Finance Director DATE: March 11, 1977 SUBJECT: SPECIAL ASSESSMENTS w - ~ Mr. a»d Mrs. Parsons have requested that payment of assessment levied on the first 330 feet of frontage in the amount of S6, 682.50 be paid in a lump sum without interest and penalty if paid within 60 days of Council 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 march 1, 1973 to March 1., 1974 was waived . Council policy to-date has been that 8$ interest has and will be charged on the outstanding principal amount to the date of payment. Penalty of 10$ will be charged on delinquent installment payments made after April 1, 1977 with the exception of the 1975 and 1976 installments. To allow the Parsons the advantage of not paying the 8$ interest from A'-arch 1, 1974 to the date of payment, and waiver of the 10$ penalty on the 1977 installment payment should it not be paid prior to April 1, 1977 would be an injustice to the other property owners against whose property assessments were levied unless they are also allowed the same privilege. Assessment principal and interest payments received thus far by the City and those to be received in the future on the 1973 districts will not pay the principal and interest on the bonds sold to finance the construction of the various projects. 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 a whole. The monies required to retire the bonded debt remain unchanged . The question of deferred assessments has once again been raised . The Persona are requesting that X36,255.20 of assessments be deferred 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 ordinance raises the following questions: 1. What sources of funding will be used to retire the bonded indebted- ness in lieu of these assessments? 2. How does the City intend to apply the money should the property not be subdivided or title transferred prior to date of final payment on the bonds? RAK: sp A CITY OF KENAI ORDINANCE NO. 314-76 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI CLARIFYING TtIE STATUS OF SPECIAL DEFERRED ASSESSA7ENTS IN CERTAIN WATER AND SEWER IAiPROVEIIENT DISTRICTS . WHEREAS. Ordinance 234-73 creating Sewer Improvement District 73-S2, Resolution 74-4 creating Water Improvement District No. 8, Resolution No. ?4-5 creating Water Improvement District 73-W1, Resolution No. 74-6 creating Water Improvement District 73-[V2, Resolution No. 74-9 creating Eater Improvement District • 73-W5. Resolution 74-10 creating Sewer Improvement District 73-S1 contain a provision reading as follows: So much of parcels of benefitted land with frontage in excess of 330 ft. on this district, 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 deferred payments are to be made . and _ WHEREAS, it is the intent of the Council to establish a policy with regard to special deferred payments in the above-named districts. NOW , THEREFORE , BE IT ORDAINED by the Council of the City of Kenai , Alaska as follows: Section 1: Section 5(E) of Resolutions 74-1, ?4-5, 74-6, 74-9 and ?4-10 And Section 4(L) of Ordinance 234-73 are and each of them is hereby amended to read in their entirety as follows: B. Parcels of benefitted land in this district with frontage + in excess of 330 feet may have that portion of their assessment payments attributable to the excess of 330 feet deferred until such parcel is sold or subdivided. If any payments are deferred, they shall be handled in the following manner: A. The total special deferred assessment shall be set up in installments over the life of the district in the same manner as assessments which have not been deferred . Such schedule of installments is hereinafter referred to as the '~ nstalln:ent schedule" . The sum of the principal and interest of each payment shall be hereinafter referred to as the "annual installment" . The dates upon which payments are due fn accordance with the ~ installment schedule are hereinafter referred to as the "schedule due dates" . i~ s i i ~~ . E__ _ I ! _ ` r -T ORDINANCE NO. 314- °"` -Page Two --- r -~ b. No annual installment on special deferred assessments shall be due until the parcel is subdivided or 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 accordance with statute. The title to a parcel shall be deemed to have been transferred when the instrument evidencing transfer of title is duly recorded with the Kenai District Recorder in accordance with statute. e. Upon subdivision of a parcel, all annual installments whose schedule due dates have pased, shall be due and payable with interest at the rate of 8 percent on the principal portion of each annual installment from its schedule due date to the date payment is made. If payment is not made within 90 days of the date of subdivision, a penalty of 10 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 vn the annual installments. d. Upon transfer of title to a parcel, annual installments shall be- come clue in the same manner as if the parcel were subdivided and interest and penalty shall be computed in the same manner. e. Annual installments remaining after payment is made in accordance with subparagraphs c . or d . hereinabove shall be made according to the installment schedule in the same manner as assessments which have not been deferred . f. In the event special deferred assessments on a parcel have not been paid in accordance with other applicable provisions of law by the last schedule due date in the installment schedule, all annual installments in the installment schedule shall immediately become due and payable with interest at the rate of 8 percent on the prinicipal portion of eael: 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 aU the annual installments shall be added to the amount due. . g. 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 day of October, 1976. ATTEST: S C. Peter, City Clerk ~~~ MAYOR JA11iES A. ELSON FIRST READING: October 6, 1976 SECOND READING: October 20. 1976 EFFECTIVE DATE: November 20, 1976 Ev. - ~L - - - ~----- - - - - - - - •--- _ _ _ _ __ _ T ~ ___„-T-___ _ __ __ t ~~ T~ v ~ ~t ~; ~,~~' Mayor & Council City of Kenai P.O. Box `$0 Kenai, hlaska RE: '~:ate~• and Sever Assessments - S-2 207,?Og Gentlemen: When the City proposed installation of v~ate^ and se~:er lines in Iiomesite Loop «buttin our property, vie ob- ~ected. YJe did not desire public ::•ater and se~a•er at that time and had no intention of subdividing or other- wise developing our homestead. IVO;v ;ve are in receipt of assessments totalling a42,937.70. At t::is time, v.e are not utilising public vr:.te or se•r:er nor do ;:e intend to use it in the foreseeable future. In accordance with the attached letter, dated June 2°, 1972, there teas a pledge by the City that none of the assessments would be due until Item 1 or Item 2 mere effected. It also appears th~rt there v:ould be no interest levied against our properties until, again, either Item 1 or Item 2 became effective. Now we are informed that: 1. The first 330 feet of frontage is not exempt or de- ferred from assessment - $0,682.50 plus interest. ~ ~ .J I ~--- jP - - ----- - ---- - - e-- - - -- _ __ _ - --- ----- -- - T ~ ~ ____ _ a. ~+• ., ~ ~ _T __t 2. The additional frorta;e, approximately 1900 feat, while deferred, is being charted 3'~ interest. Further, that this meanr, 3b,2-x.20 v:ill grovr during the period of deferral, maximum oP ten (10) years, to ~b5,2;9.4~. ':'e feel, justifiably, that :~:e have been misled and taken advantage of. 'Ae therefore petition the City Council to tiraive interest during the life of the deferment and further, permit the deferment period to run until our homeste~.d is sub- divided or title transferred from the Parsons family. We agree to acknov~ledge and make aapropriate pa;/rent on the first 330 feet of ironta,e totaling ~b,6~2.~0 in a lump sum, no interest or penalty if paid vrithin 50 d~~ys of council approval; further, that Parsons house by allov:ed rater snd sevrer with no change in determent, only hook-up fees. Enclosed is letter from City of Kenai wated rune ?°, 1;']2. edle V. Parso ~~ Ruth A. Parson~c .~ J r --r ~' ;~: •~ •: ~ ~ s..:• _: .4 ~, , i ~~ s' 1 ~ ~ _ .-~~ r ~~ :,~. ~. ~ '~ i~ ~w: ,... ~% :: ~,: ,•~ v ~':\ ~ V ~~ .. ~. . ~ ~ G '~~ ~";=~~ t •i. . !ep n- ~. ~ \l ~~....J f ___._.u~•_-..- ~_..__~~--- o. June 28, 1972 .,~ -..r T.- -~ Y Mr. 6 Mrs. Hedley Parsons ~_~ - - - ~~_ ~~-_ --^ -----~~~~~ Star Route #3 Kenai, Alaska 99611 Dear Mr. & Mrs. Parsons: In regards to your inquiry concerning assessments for projects WPC-ALA-35 and ~~TPC-AK-10-19-1017, Kenai's sewer interceptor lines and water transmission line projects, the City :za:, outlined t:~~: rollc:~.rg assessr..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. Iiowever, should you require future information, please feel free to call this office at any time. Sincerely, . ~ ). ~ruce A. Massey Assistant City Manager ...8~/~ : - - ~-- .~.M..,,,..._._. _..~. ~, C__ _ ~ i -u