7.1.2 Revised Bluesheet
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION
DATE TIME
02/26/2007 4:00 P.M.
AGENDA SECTION
NO:
7
ORIGINATING DEPARTMENT: APPROVED FOR
AGENDA:
ITEM
NO.
Page 1
1
DEVELOPMENT SERVICES
BY: Mike Schrage, Deputy City Mgr BY:
ITEM: Resolution No. 07-6356
Resolution Declaring the Intent of the Governing Body to Initiate Proceedings by the Governing Body
for Street, Storm Drainage, Water System and Sanitary Sewer Improvements
BACKGROUND:
June 19, 2006 development of West Diamond Drive was discussed by the City Commission in study
session. At that time, staff provided a historical overview of the efforts that had taken place to date to
develop an improvement and financing plan to develop West Diamond Drive. The presentation
identified the proposed improvements as water, sanitary sewer, storm sewer, and street
improvements. Off-site upgrades to the City's water system were also identified. Cost estimates
were provided; the benefit area was described; and cost allocations including possible allocations of
cost through 12-6a special assessment financing and cost recovery were discussed. It was also
noted that the properties located south of West Diamond Drive were contained within the city limits of
Salina while the properties north of West Diamond Drive were not within the city limits which could
have an impact on the cost allocation options available to the City. A copy of the referenced
presentation has been attached.
Based upon the outcome of the study session, staff has worked closely with the property owners
involved to discuss and consider multiple options to structure a benefit district, and negotiate the
provisions of an annexation agreement and special benefit district petition. One outcome of the
discussions that took place is that Com Co, Inc., the owners of the property located north of West
Diamond Drive which is currently outside the city limits, have agreed to annex approximately two-
thirds of their property (approximately 36 acres) in to the city limits in order to participate in the benefit
district and utilize agricultural deferrals.
There also was considerable discussion between City staff, the property owners, and their design
professional, McPherson Engineering & Land Surveying Services regarding the design and
configuration of the proposed improvements. Ultimately, the proposed improvements have been
designed and submitted to the City for review. The plans have been reviewed and approved by City
staff and the attached Preliminary Engineering Estimate & Feasibility Report has been prepared and
finalized.
Additionally, staff worked very closely with the property owners and the City's bond counsel, Gilmore
& Bell, regarding formation of a special assessment district and the methodology utilized to allocate
costs for each proposed improvement to the applicable properties. The final result represents the
outcome of considerable discussion involving City staff, the property owners, and bond counsel.
The attached maps graphically represent the cost allocations for each proposed improvement. The
allocations can be summarized as follows:
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION
DATE TIME
02/26/2007 4:00 P.M.
AGENDA SECTION
NO:
7
ORIGINATING DEPARTMENT: APPROVED FOR
AGENDA:
ITEM
NO.
Page 2
Street - Costs allocated 50% north and 50% south of West Diamond Drive and sub-allocated equally
per square foot within the two areas.
DEVELOPMENT SERVICES
BY: Mike Schrage, Deputy City Mgr
BY:
Sewer - Costs allocated 50% north and 50% south of West Diamond Drive and sub-allocated equally
per square foot within the two areas.
Storm Sewer - 100% of costs allocated to Parcels 1-4 which are the undeveloped parcels south of
West Diamond Drive, since the storm sewer improvements exclusively benefit those parcels, with
costs allocated equally per square foot.
Water - Water system improvements have been divided in to 4 components. 1.) Upgrade to existing
system beginning at North 9th Street and terminating at the eastern limit of the benefit district. 2.)
Water main installation paralleling West Diamond Drive. 3.) Water line loop from West Diamond
Drive north to a point parallel to Monarch Road. 4.) Water line loop from the terminus of the north-
south portion to Monarch Road. The costs for each component have been allocated as follows:
1.) Existing System Upgrade - 100% of the costs have been allocated to the City since it is an
upgrade to an existing water main and a need previously identified in the October 2005 Bucher, Willis
& Ratliff Diamond Drive Master Plan Report.
2.) West Diamond Drive Water Main - Costs allocated 50% north and 50% south of West Diamond
Drive and sub-allocated equally per square foot within the two areas.
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION
DATE TIME
02/26/2007 4:00 P.M.
AGENDA SECTION
NO:
7
ORIGINATING DEPARTMENT: APPROVED FOR
AGENDA:
ITEM
NO.
Page 3
DEVELOPMENT SERVICES
1
BY: Mike Schrage, Deputy City Mgr BY:
3.) North-south water line loop from West Diamond Drive to a point parallel to Monarch Road - City
to fund 100% of the costs with the intent to recover 50% of the costs from Parcel 10 as a benefit fee
under 12-6a19 if the subject parcels should ever benefit by connecting to the water main. It should
be noted that Parcels 7 & 8 were not assessed the remaining 50% of the cost since they have been
allocated benefit from the east-west waterlines adjoining the parcels on the north and south.
Additionally, the extension of the water line from West Diamond Drive to Monarch Road is
necessitated by the improved system performance that will be gained from a loop. Consequently, the
remaining 50% benefit was assigned to the City-at-Iarge.
4.) Water line loop from the terminus of the north-south portion to Monarch Road - City to fund 100%
of the costs with the intent to recover the costs from Parcel 10 II as a benefit fee under 12-6a 19 if the
subject parcels should ever benefit by connecting to the water main.
The resulting special assessment district is comprised of 3 primary components. 1.) Property subject
to special assessments (Parcels 1-6 according to the allocation methodology described above.) 2.)
Property subject to Agricultural Deferrals (Parcels 7 & 8) 3.) Property subject to benefit fees as
provided by K.SA 12-6a19 at the time the subject property receives benefit (Parcels 9 & 10). The
attached maps detail the applicable assessments for each category of improvement.
As noted above, Com Co, Inc. has agreed to annex parcels 7 & 8 in to the city limits based upon the
results of several discussions and the negotiated terms of an annexation agreement, special benefit
district petition, and preliminary engineering and feasibility report which have all incorporated the
assessment methodology described above. As a result, an annexation agreement has been finalized
and Com Co has agreed to make application for annexation.
The City's Bond Counsel has been consulted regarding the appropriate progression of City
Commission actions to formally consider and approve annexation of property proposed to be included
in the special assessment district as well as approve an Authorization and Advisability Resolution.
They have advised that action cannot be taken on an Authorization and Advisability Resolution until
all property proposed to be included within the benefit district is formally annexed in to the City.
They have further advised that, as a means to coordinate consideration of annexation and creation of
a special assessment district, the attached Resolution Declaring the Intent of the Governing Body to
Initiate Proceedings by the Governing Body for Street, Storm Drainage, Water System and Sanitary
Sewer Improvements is an acceptable method used to declare the City's intention to proceed with the
proposed special assessment district at the time that the annexation request is considered and acted
upon.
The annexation a reement and related attachments are included on the a enda as companion items
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION
DATE TIME
02/26/2007 4:00 P.M.
AGENDA SECTION
NO:
7
ORIGINATING DEPARTMENT: APPROVED FOR
AGENDA:
ITEM
NO. 1 BY: Mike Schrage, Deputy City Mgr BY:
Page 4
to the proposed Resolution Declaring the Intent of the Governing Body. In light of the annexation
request and agreement, the procedural steps related to creation of a Special Assessment District for
West Diamond Drive would be as follows:
DEVELOPMENT SERVICES
. Adopt Resolution Declaring the Intent of the Governing Body
. Approve Annexation Agreement
. Approve Annexation Ordinance on 1st & 2nd Reading
. Publish Notice of Annexation
. Receive properly executed Special Benefit District Petition
.. Approve Authorization and Advisability Resolution
The discussions related to benefit districts in general and this project in particular have highlighted
additional items for future consideration. Those items include a review of the City's current special
assessment policy; provision for a more formal risk assessment and/or cost benefit analysis; and
review of financial security requirements for projects involving one land owner as well as projects with
multiple land owners. Staff has begun working on the above mentioned items and anticipates that
this topic will be presented in a future study session for further consideration by the City Commission.
CONFORMANCE WITH COMPREHENSIVE PLAN:
The City's Shared Vision Statement and Strategic Plan contain the following provisions that may be
considered to be applicable to this project.
Shared Vision Statements
. The City Commission of Salina will have committed to providing the highest quality City
services possible within available resources.
. Salina will encourage and be supportive of industrial development, economic expansion,
market-driven tax base growth, and home grown entrepreneurialism.
Strategic Goals
Goal # 3 The City will provide the highest quality of services, consistent with Governing Body
direction, available resources and staff commitment to quality.
Goal # 4 The City will maintain growth and development policies that are updated to reflect current
conditions and desired growth direction.
FISCAL NOTE:
This project is proposed to be financed with general obligation bonds as a special assessment benefit
district project with the costs sub-allocated as follows:
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION
DATE TIME
02/26/2007 4:00 P.M.
AGENDA SECTION
NO:
7
ORIGINATING DEPARTMENT: APPROVED FOR
AGENDA:
ITEM
NO. 1
Page 5
City cost not subject to reimbursement
Special Assessments
Ag Deferrals
12-6a19 Cost Recovery
Total Cost
DEVELOPMENT SERVICES
BY: Mike Schrage, Deputy City Mgr
BY:
$ 51,597.60 $72.438.60
$395,698.22
$278,204.70
$ g7,144.00 $66,303.00
$812,644.52
RECOMMENDED ACTION:
In order to facilitate the development of West Diamond Drive as previously discussed, it is
recommended that Resolution No. 07-6356 Declaring the Intent of the Governing Body to Initiate
Proceedings by the Governing Body for Street, Storm Drainage, Water System and Sanitary Sewer
Improvements be approved.
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