CITY OF HOMER

HOMER, ALASKA

Finance. Clerk.

RESOLUTION 03-143(S)(A)

A RESOLUTION OF THE CITY OF HOMER, ALASKA, APPROVING AND CONFIRMING THE FINAL ASSESSMENT ROLL FOR THE OCEAN DRIVE LOOP BLUFF EROSION CONTROL IMPROVEMENT/ASSESSMENT DISTRICT, WHICH HAS BEEN CREATED AND ESTABLISHED FOR THE PURPOSE OF PAYING THE COST OF CERTAIN IMPROVEMENTS IN THE CITY OF HOMER; AND LEVYING AND ASSESSING THE AMOUNT THEREOF AGAINST THE LOTS, TRACTS, PARCELS OF LAND AND OTHER PROPERTY SHOWN ON SAID ROLL.

WHEREAS, In compliance with Chapter 17, Improvement District, of the Homer City Code, the City Council of the City of Homer (the "City") adopted Resolution 00-89(A) on September 25, 2000, stating the intent of the City to form the Ocean Drive Loop Bluff Erosion Control Improvement/Assessment District ("District"), with the provision that property owners within the District would be assessed to pay 100% of the cost of the improvements constructed therein; and

WHEREAS, A public hearing was held by the City Council on November 27, 2000 to hear objections to the formation of the District; and

WHEREAS, The City Council adopted Resolution 01-22 on March 27, 2001, forming the District and directing the undertaking of the improvements therein (known as the "Ocean Drive Bluff Erosion Control Improvement Project"); and

WHEREAS, The Ocean Drive Bluff Erosion Control Improvement Project was completed and accepted by the Public Works Department, forwarded for final assessment process and a public hearing date set for August 25, 2003, via Resolution 03-67, adopted on July 8, 2003; and

NOW, THEREFORE, BE IT RESOLVED by the City Council of Homer, Alaska as follows:

Section 1. The Council having made all revisions to the roll it deems necessary, hereby finds and determines that the final assessment roll for the District (in the form attached hereto as Exhibit A) is just and equitable and that no assessment against property within the District is greater than the special benefits to be derived from the improvements. Accordingly, the final assessment roll, in the total amount of $1,039,875.00 $1,014,032.00, is hereby approved and confirmed, and the assessments set forth therein are hereby levied against each lot, tract and parcel of property described in the roll.

Page Two

Resolution 03-143(S)(A)

City of Homer

Section 2. The amount of any assessment, or any portion thereof, against property in the District not paid on or prior to 5:00 p.m., local time, January 2, 2004 shall be payable in 20 equal annual installments, together with interest on the diminishing principal balance thereof at a rate of .5% per annum higher than the average interest rate of the bonds sold for the District. Interest shall commence to accrue on January 2, 2004. The first installment shall become due and payable on or prior to 5:00 p.m., local time, September 1, 2004, with subsequent installments to be due and payable annually thereafter on each September 1. Annual installments, including interest and any penalty, shall be paid in full when due. Partial payments made on the installment due date shall be accepted by the Treasurer of the City, but the account will be considered delinquent until full installment is paid in full.

Section 3. Any installment not paid when due shall thereupon become delinquent. All delinquent installments shall be subject to a penalty equal to 10% of the amount of the installment, including interest, and the defaulted assessment, plus penalty, shall bear interest (from the due date) at the rate of 15% per annum until paid. If any assessment installment is not paid when due, the assessment lien shall be enforced by foreclosure as provided in Title 9 of the Homer Code. An action also may be maintained against the property owner for the amounts due, including principal, interest, penalties, costs, attorney fees and other sums due

Section 4. The lien of any assessment may be discharged at any time after the prepayment period by payment of the entire principal amount of the assessment remaining unpaid together with interest thereon to the due date of the next installment.

Section 5. If any one or more of the provisions of this resolution shall be declared by a court of competent jurisdiction to be contrary to law, then such provision shall be null and void and shall be deemed severable from the remaining provisions of this resolution and shall in no way affect the validity of the other provisions of this resolution.

PASSED and ADOPTED by the City Council of the City of Homer, Alaska this 1st day of December, 2003.

CITY OF HOMER

________________________

JACK CUSHING, MAYOR

ATTEST:

____________________________________

MARY L. CALHOUN, CMC, CITY CLERK

Page Three

Resolution 03-143(S)(A)

City of Homer

Fiscal Note: Total project cost: $1,014,032.00. City of Homer to assume an assessment for 60 feet of Road Right of Way (Lake Street) and 30 feet of pedestrian easement that have frontage along the seawall and are protected by it.100% assessed to the property owners, amount allocated per bluff front foot or $585.13 per bluff front foot.

The Sections of the Now Therefore Be it Resolved Clause were written by the Bond Attorney.

Directives from the Council:

The Manager is directed to make Changes to the Resolution as amended and adjust the Assessment Roll accordingly -

Assessment amount from $1,039,875.00 to $1,014,032.00 or $585.13 per bluff front foot.

City of Homer to assume an assessment for 60 feet of Road Right of Way (Lake Street) and 30 feet of pedestrian easement that have frontage along the seawall and are protected by it

The Manager is directed to investigate or have investigated the current performance of the seawall under storm and normal conditions to determine the effectiveness of the design and the corrective work and to determine whether a Notice of Defect should be given to the design- builder.

The Manager is directed to work with Dr. Phukan and investigate options for dedicating a percentage of any recovery or settlement monies Dr. Phukan may receive from the manufacturer to a special fund dedicated to routine maintenance of the seawall.

The Manager is directed to inform property owners within the assessment district that the City will assess its options and actions available to it if the seawall fails or the warranty takes effect.

The Manager is directed to inform the property owners that they are the principle owners of the seawall.

The Manager is directed to inform the property owners that they have primary responsibility for routine maintenance as those costs defined in the November 7, 2003 letter from the City to the property owners. In addition, the City will pay its proportion of ownership share of those costs.

The Manager is directed to inform the property owners that they have the primary responsibility for the cost of insurance and that the City will pay its proportion of ownership share of those costs.

The Manager is directed to inform the property owners that they are strongly encouraged to form a homeowners association so that the City has a legal entity with which to conduct transactions and enter into written agreements.

Resolution 03-143(S)(A) adopted December 1, 2003 confirms the Final Assessment Roll.

Attest/Certified ____________________________________________

Mary L. Calhoun, CMC, City Clerk