01-10067 Cap Cost Recovery Charconsoi�aaieesaa�a
(Published in The Salina Journal December 14 and 21, 2001)
ORDINANCE NUMBER 01-10067
AN ORDINANCE ESTABLISHING A CAPITAL COST RECOVERY CHARGE
FOR THE PURPOSE OF PAYING A PORTION OF THE COST OF THE INSTALLATION
OF WATER AND SANITARY SEWER MAINS (PROJECT NO. 99-1183) IN THE
VICINITY OF SOUTH NINTH STREET AND WATER WELL ROAD.
BE IT ORDAINED by the governing body of the City of Salina, Kansas:
Section 1. Authority. This ordinance is adopted pursuant to the City's home rule authority
under Article 12, Section 5 of the Kansas Constitution and in accordance with K.S.A. 12-137.
Section 2. Legislative Findings. The governing body finds that:
A. Under Project 99-1183, the City caused to be installed sanitary sewer main on
South Ninth Street from Schilling Road to Water Well Road and along South Ninth Street
from Water Well Road five hundred (500) feet south and water main on South Ninth Street
from Riffel Drive to Berg Road (the "Project").
B. In Resolution Number 99-5484 (sanitary sewer) and Resolution Number 99-
5485 (water) the governing body identified the area it deemed to be benefited when
identifying the improvement district for the Project (the "Improvement District"), which
included property under the control of the Kansas Department of Transportation (KDOT)
legally described on Exhibit A attached and incorporated herein (the "Highway Right-of-
way").
C. With respect to the Highway Right-of-way, the State of Kansas determined
pursuant to K.S.A. 12-3506 that it was not liable for the special assessments that would
otherwise be levied against the Highway Right-of-way as a tract within the Improvement
District.
D. By Ordinance Number 01-10030 (the "Assessment Ordinance"), the
governing body levied special assessments against the various tracts within the Improvement
District, other than the Highway Right-of-way, for the purpose of paying the cost of the
Project.
E. As provided in the Assessment Ordinance, the City -at -large has undertaken to
pay the special assessments that would otherwise be levied against the Highway Right-of-
way, while reserving the ability to utilize any legally available method to recover the City's
costs resulting from the payment of such assessments upon development of the Highway
Right-of-way for non -highway right-of-way uses.
F. The Highway Right-of-way includes 1,337,292 square feet or 30.70 acres,
more or less. That portion of costs of the Project allocated to the Highway -Right-of-way
pursuant to the Assessment ordinance equaled $115,550.16. Consequently, the costs of the
Project allocated to the Highway Right-of-way on a per square foot basis equals $.0864 per
square foot.
G. KDOT has removed the Interstate 135 access ramp previously located on the
Highway Right-of-way and the governing body is advised that KDOT is offering for sale its
interest in the Highway Right-of-way.
Section 3. Policy Objective. The policy objective of this ordinance is to provide for the
reimbursement of the City's water and wastewater utility fund for the proportionate cost of
assessments paid by the City for water and sanitary sewer improvements potentially serving
property currently under the control of KDOT as highway right-of-way at such time as the property
is developed for uses other than highway right-of-way.
Section 4. Imposition of charge. After the effective date of this ordinance, any party
seeking to develop any portion of the land within the Highway Right-of-way for a use other than
highway right-of-way shall be required to pay a charge of $.0864 per square foot plus an interest
factor to be determined on the basis of the City's loss of investment income from August 1, 2001
(the date of issuance of the general obligation bonds used to finance the Project) through the date of
payment of the charge (the "Capital Cost Recovery Charge").
C-11- SA.
Section 5. Payment of charge. Prior to development of any tract of land subject to the
Capital Cost Recovery Charge, the party seeking to develop the tract must pay to the City in a lump
sum the Capital Cost Recovery Charge applicable to the square footage of land included within the
tract to be developed. For purposes of this ordinance, "development" shall mean either final
approval of a subdivision plat by the City, or, if approval of a subdivision plat by the City is not
required for any reason, then upon:
(a) use of the tract by KDOT for any purpose other than highway right-of-way;
(b) use of the tract for any purpose following acquisition by or reversion to the owner
(including any related or affiliated person or entity) of any abutting platted tract;
(c) commencement of the delayed special assessments applicable to Unplatted Tracts 1,
2, 3 or 4, as provided in the Assessment Ordinance, following acquisition by or
reversion of the tract to the owner of one of the abutting Unplatted Tracts 1, 2, 3 or
4; or
(d) connection to the City's water or sewer system or issuance of a building permit for
construction of improvements to be located on the tract following acquisition of the
tract by any person or entity other than those abutting owners addressed in (b) and
(c) above.
When the public interest is served by a reasonable delay in payment of the lump sum Capital Cost
Recovery Charge, the governing body may approve an agreement with the party seeking to develop
the tract specifying when the lump sum payment shall be made and any other relevant terms or
conditions.
Section 6. Alternative to lump sum payment. Due to the unique circumstance created as a
result of the position of KDOT regarding the special assessments otherwise applicable to the land
included in the Highway Right-of-way, the governing body may, as an alternative to payment of the
Capital Cost Recovery Charge, allow a party upon becoming the owner of any portion of the
Highway Right-of-way (either by acquisition of KDOT's right-of-way interest or by KDOT's
abandomnent of its right-of-way interest) to reimburse the City for the proportionate amount of the
assessments paid by the City on a square footage basis and to consent to the levy of the
proportionate share of the remaining special assessments against the acquired portion of the
Highway Right-of-way on a square footage basis. The amount necessary to reimburse the City for
assessments paid will include the sum of the proportionate share of the series of principal and
interest payments paid by the City, plus an interest factor to be determined on the basis of the City's
loss of investment income as a result of having made the series of principal and interest payments.
Section 7. Effective Date. In accordance with K.S.A. 12-137, this ordinance shall be
published once each week for two (2) consecutive weeks in the official city newspaper and shall be
effective sixty (60) days after its final publication, unless within sixty (60) days of its final
publication a petition signed by a number of electors of the city equal to not less than ten percent
(10%) of the number of electors who voted at the last preceding regular city election shall be filed
with the county election officer of Saline County demanding that such ordinance be submitted to a
vote of the electors, in which case it shall not take effect until submitted to a referendum and
approved by a majority of the electors voting thereon.
(SEAL)
ATTEST:
Lieu Ann Nicola, City Clerk
Introduced: November 26, 2001
Passed: December 10, 2001
Ystin M. Sea n, Mayor
C11.10 Salina
Ordinance No. 01-10067
Exhibit "A"
HIGHWAY RIGHT-OF-WAY
A TRACT OF LAND LOCATED IN THE EAST HALF (E%) OF SECTION TWO, TOWNSHIP
FIFTEEN SOUTH, RANGE THREE WEST (2-T15S-R3W) OF THE SIXTH PRINCIPAL
MERIDIAN (6TH P.M.), IN SALINE COUNTY, KANSAS, MORE PARTICULARLY
DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF THE
SOUTH HALF OF THE NORTHEAST QUARTER (S%2 NE'/4) OF SAID SECTION TWO (2);
THENCE WEST ALONG THE NORTH LINE OF THE SOUTH HALF OF THE NORTHEAST
QUARTER (S%i NE'/4) OF SAID SECTION TWO (2) ON AN ASSUMED BEARING OF NORTH
EIGHTY-NINE DEGREES, FIFTY-SIX MINUTES, AND TWENTY-NINE SECONDS WEST
(N89°56'29"W), A DISTANCE OF SIXTY-ONE AND NINETY-TWO HUNDREDTHS (61.92)
FEET TO THE WEST RIGHT-OF-WAY LINE OF NINTH STREET AND THE POINT OF
BEGINNING; THENCE SOUTH ONE DEGREE, TWENTY-SEVEN MINUTES, AND
TWENTY-EIGHT SECONDS WEST (SO1 °27'28"W), ALONG SAID WEST RIGHT-OF-WAY, A
DISTANCE OF ONE THOUSAND FIVE HUNDRED TWENTY-NINE AND NINETY-EIGHT
HUNDREDTHS (1,529.98) FEET; THENCE SOUTH THIRTY-FOUR DEGREES, SIXTEEN
MINUTES AND ELEVEN SECONDS WEST (S34-16'1 1"W), A DISTANCE OF ONE
THOUSAND ONE HUNDRED SIXTY-ONE AND NINE HUNDREDTHS (1,161.09) FEET;
THENCE SOUTH SEVENTEEN DEGREES, FIFTY MINUTES, AND THIRTY-SIX SECONDS
WEST (S 17°50'36"W), A DISTANCE OF ONE THOUSAND ONE HUNDRED SIXTY-SEVEN
AND SEVENTY-TWO HUNDREDTHS (1,167.72) FEET; THENCE NORTH TWO DEGREES,
FIFTY MINUTES, AND NINE SECONDS EAST (NO2°50'09"E), A DISTANCE OF TWO
THOUSAND TWO HUNDRED SEVENTY-EIGHT AND SIXTY-FIVE HUNDREDTHS
(2,278.65) FEET TO A POINT ON THE NORTH LINE OF THE SOUTHEAST QUARTER
(SE'/4) OF SAID SECTION TWO (2); THENCE SOUTH EIGHTY-NINE DEGREES, FIFTY-
EIGHT MINUTES AND THIRTY-SIX SECONDS EAST (S89°58'36"E), ALONG THE NORTH
LINE OF SAID SOUTHEAST QUARTER (SEI/4), A DISTANCE OF FOUR HUNDRED FOUR
AND SIXTY HUNDREDTHS (404.60) FEET; THENCE NORTH EIGHTEEN DEGREES,
SEVEN MINUTES, AND FIVE SECONDS EAST (N18°07'05"E), A DISTANCE OF ONE
THOUSAND TWO HUNDRED NINETY-SIX AND SEVEN HUNDREDTHS (1,296.07) FEET;
THENCE NORTH SEVENTY-TWO DEGREES, EIGHTEEN MINUTES, AND NINE SECONDS
WEST (N72°18'09"W), A DISTANCE OF SIXTY AND ZERO HUNDREDTHS (60.00) FEET;
THENCE NORTH SEVENTEEN DEGREES, FORTY-ONE MINUTES, AND FIFTY-ONE
SECONDS EAST (N17°41'51"E), A DISTANCE OF SEVENTY-EIGHT AND SEVENTY
HUNDREDTHS (78.70) FEET TO A POINT ON THE NORTH LINE OF THE SOUTH HALF OF
THE NORTHEAST QUARTER (SI/2 NEI/4) OF SAID SECTION TWO (2); THENCE SOUTH
EIGHTY-NINE DEGREES, FIFTY-SIX MINUTES, AND TWENTY-NINE SECONDS EAST
(S89°56'29"E), ALONG SAID NORTH LINE, A DISTANCE OF ONE HUNDRED SIXTY-
THREE AND THIRTY-EIGHT HUNDREDTHS (163.38) FEET BACK TO THE POINT OF
BEGINNING. THE ABOVE DESCRIBED TRACT OF LAND CONTAINS ONE MILLION,
THREE HUNDRED THIRTY-SEVEN THOUSAND, TWO HUNDRED NINETY-TWO
(1,337,292) SQUARE FEET OR THIRTY AND SEVENTY HUNDREDTHS (30.70) ACRES,
MORE OR LESS