CITY OF HOMER

HOMER, ALASKA

City Manager/PWD

ORDINANCE 07-06

 

 

AN ORDINANCE OF THE CITY COUNCIL AUTHORIZING EXPENDITURE OF HOMER ACCELERATED WATER AND SEWER PROGRAM (HAWSP) FUNDS FOR FAIRVIEW AVENUE WATER MAIN EXTENSION FROM KACHEMAK WAY TO HEATH STREET AND APPROVING THE CREATION OF A DEFERRED ASSESSMENT ON BENEFITED PROPERTIES.

 

 

            WHEREAS, A property owner on Fairview Avenue is preparing to build a house on a lot that is not currently served by a water main; and

 

            WHEREAS, The property owner attempted to initiate a water LID, but the attempt failed due to lack of support; and

 

WHEREAS, the property owner is now proceeding to design and install a water main to serve the property; and

 

            WHEREAS, Due to drinking water quality issues  and the importance of looping the water system, Public Works has  recommended that the main be extended the entire block from Kachemak Way to Heath Street; and

 

            WHEREAS, The proposed loop water main will benefit other lot owners within the limits of this project; and

 

            WHEREAS, Homer City Code does not provide a method that allows a “developer” who extends a main that benefits other properties reimbursement by others when future connection is made; and

 

            WHEREAS, A remedy for this situation is for the City to reimburse the “developer” for the costs of extending that portion of the main that benefits others and create deferred assessments, based on fairly apportioned construction costs on benefited properties; and

 

            WHEREAS, These assessments will be due and payable to the City, only if and when connection permits are applied for.

 

            NOW, THEREFORE, The City of Homer Ordains:

 

Section 1. That use of the HAWSP Funds is hereby authorized for the Fairview Water Main Extension and Improvements:

 

Page 2 of 3

Ordinance 07-06

City of Homer

 

Account No. Description Amount

Funding Source. HAWSP $72,000.00

 

Expenditure: HAWSP Fairview Avenue Water Main $72,000.00

Account: 153-375

 

Section 2.  The owner of Lot C pays for the installation of the western half of the extension that would front lots A, B, C and D.  Lots A and B already have service connections.  The owner of Lot C is responsible for 75% of the cost; the City reimburses the owner of Lot C for 25% of the cost and places a deferred assessment on Lot D equal to 25% of the cost.

 

Estimated Cost Responsibility:

 

Lot A

$ 0

Lot B

$0

Lot C

$27,000

Lot D

$9,000

 

Section 3.  The owner of Lot C pays for the installation of the eastern portion of the main extension that would benefit Lots E, F, G and H and the City reimburses the owner of Lot C for 25% of the cost and places a deferred assessment on Lots E, F, G and H equal to 25% of the cost.

 

Estimated Cost Responsibility:

 

Lot E

$9,000

Lot F

$9,000

Lot G

$9,000

Lot H

$9,000

 

Section 4.  The City Council requires the owner of Lot C to initially install and pay for the cost of a new water main from Kachemak Way to Heath Street, with an estimated cost of $72,000. 

 

Section 5.  The City Council authorizes the City to reimburse the owner for that portion of the main that benefits the other property.  The estimated cost is $45,000.

 

Section 6.  The City Council approves the placement of deferred assessments on the other benefited properties.  The total deferred assessments are estimated to be $45,000.

 

Section 7.  This ordinance is not of a permanent nature and is a non code ordinance.

 

 

 

 

Page 3 of 3

Ordinance 07-06

City of Homer

 

PASSED AND ENACTED BY THE CITY COUNCIL OF HOMER, ALASKA this ________ day of ______________, 2007.

 

                                                                        CITY OF HOMER




                                                                        _____________________________

                                                                        JAMES C. HORNADAY, MAYOR

 

 

ATTEST:



_____________________________________

JO JOHNSON, CMC, CITY CLERK

 

 

YES:

NO:

ABSTAIN:

ABSENT:

 

First Reading:

Public Hearing:

Second Reading:

Effective Date: 

 

Reviewed and Approved as to form and content:

 

________________________                                                ________________________

Walt E. Wrede, City Manager                                                  Gordon J. Tans, City Attorney

 

Date:____________________                                                Date:____________________                                                                                                                                                                                                                                                                                                                        _________________________

           

 

Fiscal information: Estimated project cost is $72,000 with 25% paid for by the Homer Accelerated Water and Sewer Program.  Six parcels will have deferred assessments.  The assessments will be born by HAWSP until such time when connection permits are applied for.

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