HomeMy WebLinkAbout1976-12-09 Council Minutes - Special Meeting%,
KENAI CITY COUNCIL - SPECIAL MEETING
DECEMBER 9, 1976 - 5:30 P.M.
KENAI PUBLIC SAFETY BUILDING
MAYOR JAMES A. ELSON PRESIDING
PLEDGE OF ALLEGIANCE
ROLL CALL
Present: Tom Ackerly, Walter Sweet, Dan Whelan, Richard Morgan, Betty Glick,
Edward Ambarian and James Elson.
Absent: None
Mayor Elson advised that this Special Meeting of the Kenai City Council was called
to render a decision with regard to the following Water and Sewer Improvement
Districts in the matter of reassessments:
Water Improvement District No. 73-W1, Sewer Improvement District No. 73-92,
Water Improvement District No. 8, Water Improvement District No. 73-W2, Sewer
Improvement District No. 73-81, Water Improvement District No. 73-W5, and
Sewer Improvement District No. 73-S3.
Mayor Elson advised that Administration had provided Council with information on
loss of revenue, principal and interest and data as to proposed method of collection
as well as a summary of protests - names, districts, identification number, and
a summary narrative. Also included in Administration's report was statistical data
and a legal statement regarding fair market value and how assessments are handled
in other communities. Mayor Elson reported that Administration stated that two
adjustments appear reasonable: (1) Bell property - as there was an apparent error
in computation of square footage regarding Water Improvement District No. 8 and
that the assessment should be adjusted from $3,776.83 to $1,626.50; (2) Tschoepl
property - Mr. Tschoepl's original requested sewer service was quoted at $982
and the assessment levied was $1,671.37. Administration recommends that his assess-
ment be adjusted from $1,671.37 to $982.
Mayor Elson opened the meeting for Council discussion.
Councilman Morgan stated he would like to comment on the 25% limitation as set out in
the City Charter and the reasoning behind this limitation as Councilman Morgan was a
member of the Charter Commission. Councilman Morgan stated that the Charter Commis-
sion members felt that this would be a way in which the City could not "ram -rod"
utilities through to the people in the City in a disapportioning manner. The Commission
included improvements on the land and specifically did not separate land and Improve-
ments. Councilman Morgan advised that at the time, most assessments were done on
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KENAI CITY COUNCIL, SPECIAL MEETING, DECEMBER 9, 1976 Page 2
n a front foot basis and the thinking of the commission was that an individual with a
relatively high income and the wherewithal to have a nice home and be able to pay
the assessments as compared to that individual living in a cabin on a modest income j
who would be forced to sell his property because of assessments. Councilman Morgan i
stated that he could now see that because of land speculation an inequity arises and
thus consideration perhaps should be given to changing the Charter in the near future.
Also, Councilman Morgan further stated that he felt the cost of the assessments in
1973 were not out of line as the costs were higher in 1967 and, therefore, felt that the
assessments in total are not out of line though perhaps were not done in accordance
with proper procedures. Councilman Morgan inquired if there were any lands behind
the 150' frontage being charged and was advised by Mr. Wise that as some work had been
done in the Mommsen Subdivision area prior to the assessment district construction
where the City had to bring water to put these people on the system, the charge was
dor.: on the entire square footage of the property but only assessed at $.02/sq. ft.
basis.
Mayor Elson read the draft resolution which will be used for each individual
water and sewer improvement district.
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"A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, CONFIRMING _
THE REASSESSMENT ROLL AS CORRECTED FOR
IMPROVEMENT DISTRICT NO.
WHEREAS, the Council by Resolution No. has established
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Improvement District No. , and
WHEREAS, the Council has recognized that within said improvement district there
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may be assessments which exceed the limit of 25% of the fair cash market value
Including the water or sewer improvement as set out by Section 7-3 of the Charter of i
the City of Kenai, and; t
WHEREAS, the Council, by Resolution No. 76-64 has directed that the said improvement i
district be reassessed for the purpose of complying with Section 7-3 of the City Charter.
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NOW, THEREFORE BE IT RESOLVED, by the Council of the City of Kenai, Alaska,
as follows:
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Section 1: The Council hereby finds that:
a. A preliminary reassessment roll has been compiled and is on file with the
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City Clerk.
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KENAI CITY COUNCIL, SPECIAL MEETING, DEC'EMBER 9,1976
Page 3
b. The reassessment roll has been computed in accordance with the
formula set forth in Resolution No. 76-64.
e. The notice requirement of the Code of the City of Kenai with respect
to reassessments have been met.
Section 2: There to hereby confirmed the reassessment roll which has
been corrected, pursuant to public hearing at a meeting held December 1,
1976, and as such meeting may have been adjourned for additional action
or work upon assessment roll corrections.
Section 3: There is hereby re -levied against the property benefitted
the costs levied by Section 4 of Resolution No. as such costs have been
adjusted for each individual parcel in accordance with the 25% limitation of
Section 7-3 of the City Charter and the assessment as set out in the reassess-
ment roll, as confirmed hereinabove to hereby the amount levied against
each individual parcel.
Section 4: Payment of assessment levied by Resolution No. shall be
reapplied in the following manner and payments of assessment relevied herein- .�
above shall be made in the following manner:
a. "Installment schedule" shall mean herein that schedule of payments
containing principal and interest which is set up based on the principal amount
{ of the assessment. Interest in such schedule shall be at the rate of 9% per ,
annum . Schedules shall be set up with ten schedule due dates one year apart
with the first schedule due date being April 1, 1974. "Annual Installment" shall
mean herein the sum of the principal and interest of each installment payment.
b. If no adjustment has been made in an assessment, the installment schedule
shall continue as curri-ntly set up. Interest at the rate of 8% per annum from
the schedule due date to the date of payment shall be computed on the principal
portion of any annual installment which is past due. No penalty shall be charged
on annual installments paid after the schedule due date but on or before
April 1, 1977 due to litigation. For annual installments due on or before April 1,
1977 and not paid by such date, a penalty in the amount of 10% of the past due
annual installments or portions thereof shaU be assessed. Annual installments
due after 1977 and not paid on or before the schedule due date shall be assessed
a penalty of 10% of the past due annual installment. In the event penalty has
been paid prior to the date hereof, such amount of penalty shall be credited
to the annual installment due April 1, 1977 or any further annual installments
due. If no further annual installments are due, the penalty amount shall be
—r refunded to the current owner of the parcel as reflected in the Kenai Peninsula
- - Borough Assessment Rolls.
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KENAI CITY COUNCIL, SPECIAL MEETING, DECF,MAFR 9, 1976 Page 4
C. If an assessment has been reduced, any reduction will first be applied
to reduce the principal amount of the deferred assessment on the parcel, If
any. If there is no deferred assessment, or if the amount reduced to more than
the deferred assessment, the principal portion of the regular assessment shall
be reduced accordingly. A new payment schedule shall then be set up based
on the new principal amount. The total payments in the new schedule whose
schedule due dates have passed shall be subtracted from the total annual
Installment payments made on the parcel to date. The resulting amount will be
credited to the annual installment due April 1, 1977, or if it exceeds that Install-
ment, to subsequent annual installments. Any installments made late prior to
the date hereof resulting in delinquent interest being assessed will be re-
figured based on the new annual installment amount and the over payment of
Interest will be credited to future annual installments. Interest on the principal
portion of the unpaid new installment amounts shall accrue at the rate of 8%
per annum from the schedule flue date to the date of payment. A penalty
of 10% of the unpaid new annual installment shall be assessed for any amount
paid after the schedule due date, except those annual installments due on
or before April 1, 1977. No penalty shall be assessed on such annual install-
ments U they are paid on or before April 1, 1977. When there are no future
annual installments against which to credit any amount over -paid on the parcel
a refund will be made to the current owner of the parcel as reflected in the
Kenai Peninsula Borough Tax Assessment Rolls.
d. Any deferred assessments remaining on parcels after the reductions ;
herein shall be handled in the manner provided for by Ordinance No. 314-76."
Councilman Morgan stated he felt that this matter should not have been "ram-rodded"
down the citizen's throats but the City is facing the question of putting it on the general ;
tax rolls and 9 the City were not to assess, the people would have a legitimate argument.
Councilman Morgan stated he felt that the people on the water and sewer systems have to
carry own weight and, therefore, felt that it would behoove the Council to go ahead and
establish each water and sewer improvement district as have been presented for Council
consideration.
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MOTION:
r Councilman Morgan moved, seconded by Councilman Sweet, for adoption of Resolution
No. 76-81, Water Improvement District No. 73-W1.
Motion passed unanimously by roll call vote.
MOTION:
Councilman Whelan moved, seconded by Councilman Ambarian, for adoption of
Resolution No. 76-82, Sewer Improvement District No. 73-82.
Motion passed unanimously by roll call vote.
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KENAI CITY COUNCIL, SPECIAL MEETING, DECEMBER 9, 1976 Page 5
MOTION:
Councilman Whelan moved, seconded by Councilman Sweet, for adoption of Resolution
1. No. 76-83, Water Improvement District No. 8, as amended to provide for a reduction
of the Bell property (Identification No. 41) assessment from $3,776.83 to $1,626.50.
Motion passed unanimously by roll call vote with Councilwoman Glick abstaining because
of residency in Water Improvement District No. 8.
MOTION:
Councilman Sweet moved, seconded by Councilman Whelan, for adoption of Resolution
No. 76-84, Water Improvement District No. 73-W2.
Motion passed unanimously by roll call vote.
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Councilman Ambartan moved, seconded by Councilman Sweet, for adoption of Resolution j
No. 76-85, Sewer Improvement District No. 73-S1.
Motion passed unanimously by roll call vote with Councilwoman Glick abstaining because
of residency in Sewer Improvement District No. 73-S1.
MOTION:
Councilman Sweet moved, seconded by Councilwoman Glick, for adoption of Resolution
No. 76-86, Water Improvement District No. 73-W5.
Motion passed unanimously by roll call vote.
MOTION:
Councilman Sweet moved, seconded by Councilwoman Glick, for adoption of Resolution
No. 76-87, Sewer Improvement District No. 73-S3, as amended to provide for adjustment
of the Tsehoepl property (Identification No. 13) assessment from $1,671.37 to $982. i
Motion passed unanimously by roll call vote.
There being no further business to be brought before the Council of the City of Kenai,
at their Special Meeting of December 9, 1976, the meeting adjourned at 6:15 p.m.
Respectfully submitted,
Sue C. Peter, City Clerk
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COUNCIL MLETING OF SPFrIAT, AIRETING 12-9-76
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