TO:                Ron Long, Assembly President

                        Members of the Kenai Peninsula Borough Assembly

THRU:           John J. Williams, Borough Mayor

THRU:           Shane Horan, Director of Assessing

FROM:          Clyde Johnson, Special Assessment Coordinator

DATE:           May 24, 2006

SUBJECT:    Resolution 2006-044 forming the Chinulna Point Subdivision Road Improvement Assessment District (RIAD) and proceeding with the improvement

MAYOR’S REPORT

Property owners in the proposed Chinulna Point Subdivision Road Improvement Assessment District (RIAD) have worked with the borough administration to form the proposed RIAD. At its meeting of March 7, 2006, the Road Service Area Board adopted RSA Resolution 2006-02, approving the petition for formation of this RIAD prior to its circulation among benefited property owners and approving up to $95,134.71 as the RSA match for this project (see Exhibit 1). A completed petition for the formation of the Chinulna Point Subdivision Road Improvement Assessment District (RIAD) was received on April 18, 2006. The borough clerk subsequently certified the petition with 28 of 33 property owners (84.8%) of the property owners supporting the proposed district (see Exhibit 2), sent all required notices to the property owners and published the required information concerning the proposed district as required by borough code. Following the certification of the petition two parcels were removed from this project, as it was determined that they were not directly benefited by the proposed improvement. The petition sponsor for the project was notified of this action and resulting increase in the estimated assessment. The slight increase in the estimated assessment per parcel did not adversely affect the neighborhood support for this project. This matter is now presented to the assembly for approval to proceed with the project. Any objections received will be provided to the assembly on the hearing date. KPB 14.31.090 requires that the mayor’s report accompany the resolution to proceed and that it contain the following information, all of which is detailed in the referenced attachments to this memo.

1)  A legal description of the benefited parcels and a map of the proposed district. See Attachment 3, the estimated assessment roll, and Attachment 4, a map of the proposed Chinulna Point Subdivision RIAD.

2)  A description of the current condition of the rights-of-way proposed for improvement and a statement of the need for the proposed local improvement: See Attachment 5, a staff report directed to the RSA board dated July 5, 2005.

3)  The proposed allocation of the cost of the improvement among parcels in the district is by equal allocation to each of the benefited parcels in the proposed district. See Attachments 3 & 5.

4)  The estimated amount to be assessed against each parcel. See Attachments 3 and 5.

5)  A profile of the parcels in the proposed district, including the nature of ownership and status of tax payments. See Attachments 5 and 6, the RIAD Profile Information Sheet dated May 24, 2006. There are currently no parcels within the proposed district delinquent in payment of real property taxes. This satisfies KPB 14.31.080, which requires that no more than 10 percent of the parcels in the proposed district be delinquent in the immediately preceding tax year.

6)  Whether there are other special assessment liens against any of the parcels in the proposed district. There are no other borough special assessment liens on parcels in this district.

7)  A description of any benefited parcels that exceed the assessment-to-value ratio set forth in KPB 14.31.080(A). No lien will exceed the 25 percent of the value of a parcel as required by Borough Code. The thirty improved parcels range in value from $105,800 to $613,900 thereby indicating the assessment will be substantially less than the 25 percent maximum. The three unimproved parcels range in value from $15,500 to $61,600 and have sufficient value to support the estimated assessment lien of $3,068.86. See Attachments 3 and 5.

8)  The method of financing the improvement, e.g., bonding, borough investment, or a combination. This project will be financed as a borough investment. See Attachment 7, a letter from the Finance Director.

9)  All estimated costs of the improvement set forth in KPB 14.31.110. See Attachments 3 and 5, and also Attachment 8, the engineer’s estimate of cost for this project.

Staff will be available at the June 6, 2006 assembly meeting to answer any additional questions.