04-10242 Cost Recovery1
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(PublishS4,in the Salina Journal on November // '2004)
ORDINANCE NUMBER 04-10242
AN ORDINANCE ESTABLISHING A CAPITAL COST RECOVERY CHARGE
FOR THE PURPOSE OF PAYING A PORTION OF THE COST OF A WATER
DISTRIBUTION SYSTEM IN THE VICINITY OF SCHILLING ROAD AND OHIO
STREET.
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. Protect description. Under Project No. 04-1450, the City intends to construct a
twelve inch (12") water line loop along South Ohio Street from Magnolia Road south
to Schilling Road and along Schilling Road from Ohio Street west to the Union
Pacific railroad tracks (the "Project").
B. Benefit Area. The area benefited by the Project consists of the area legally described
on the attached and incorporated Exhibit A and depicted on the attached and
incorporated Exhibit B (the `Benefit Area").
C. Benefits to Benefit Area. The Project benefits the Benefit Area by providing fire
protection and domestic water service.
D. Development Policy. City of Salina Resolution Number 89-4066, adopted March 6,
1989, established the City's development policy for the financing of public
improvements within the City. The policy provides, in part:
"D. Water System.
1. In residential area, the cost of lines, valves and hydrants for 6
inch water mains shall be assessed 100% to the benefit district. If the city
desires to place a larger water main to or through the area to benefit the
overall system, the benefit district shall pay the cost equivalent of a 6 inch
line and the City Water Utility Fund shall pay the remainder.
2. In a commercial or industrial area, the benefited property
owner or owners shall pay 100% of the cost of the distribution system to
satisfy their requirements.
3. The cost of service lines shall be paid by the benefitted
property"
E. Fairness in relation to other properties within the City. Consistent with the City
policy regarding the distribution of costs for financing of public water systems set
forth above, the proportion of the Project attributable to the Benefit Area should be
equivalent to the cost of constructing a six inch (6") water line, which has been
determined to be $319,389.76. The public interest is most fairly served by the
assignment of that cost to the Benefit Area as such costs would be assigned to
similarly situated properties located elsewhere within the City.
F. Method of Allocation. It is most reasonable to base the assignment of costs to the
Benefit Area on the basis of the square footage of developable land area located
within the Benefit Area. The Benefit Area includes 458.64 acres, more or less, of
developable land area, resulting in a per square foot charge of $0.016.
Section 3. Policy Objective. The policy objective of this ordinance is to provide for the
reimbursement of the City's utility fund for the proportionate cost of a water system needed to serve
the industrial, commercial, and residential development of the Benefit Area.
Section 4. Imposition of Charge. After the effective date of this ordinance, any owner of
land who seeks to develop property located within the Benefit Area shall be required to pay a
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charge of $0.016 per square foot, plus interest at the compound rate of 3.4111367 per cent per
annum (which equals the average rate of interest paid by the City under its most recent general
obligation bond issue in July, 2004) calculated from the effective date of this ordinance until the
date the charge is paid (the "Capital Cost Recovery Charge"). The amount of the City the Capital
Cost Recovery Charge shall be based upon the developable square footage of the legally described
parcel being developed.
Section 5. Payment of Charge. Payment of the Capital Cost Recovery Charge to the City
shall be made as follows:
Commercial or Industrial. For commercial or industrial development projects within the
Benefit Area, payment of the Capital Cost Recovery Charge to the City shall be made as a
condition of the issuance of a building permit.
Residential. For residential development projects within the Benefit Area, payment of the
Capital Cost Recovery Charge to the City shall be made as a condition of the City's formal
acceptance of the public infrastructure improvements for that phase of the residential
development project. No building permits shall be issued for any residential construction
within that phase of the residential development project until the Capital Cost Recovery
Charge for that entire phase of the development has been paid to the City.
Existing Residences not served by City Water System. Three existing residences located at
2645, 2655, and 2749 South Ohio Street are within the Benefit Area and are not served by
the City's public water system as of the effective date of this ordinance. Each of those
existing residences shall separately qualify to be permitted to hook into the waterline
constructed under the Project upon (1) annexation of the lot upon which the residence is
located and (2) payment of a Capital Cost Recovery Charge based upon an attributed lot size
of one-quarter (1/4) acre (the size of a typical lot in the proposed Quail Meadow Estates
Addition).
Section 6. 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.
Section 7. Recording of Notice. Following the effective date of this ordinance, the City
Clerk is directed to record with the Office of the Saline County Register of Deeds a Notice of
Capital Cost Recovery Charge with a certified copy of this ordinance and a legal description of the
Benefit Area attached.
{SEAL}
ATTEST:
LL_� /�
Lieu Arm Elsey, CMC, Cit Jerk
Introduced: November 1, 2004
Passed: November 8, 2004
Passed by a vote of P yes; 0 no; _ abstain
Shadwick, Mayor
Exhibit "A"
Boundary Description for South Ohio Waterline Benefit Area
Commencing at the Northwest Corner of Section 31, Township 14 South, Range 2 West of the 6th Principal
Meridian, Saline County, Kansas; thence South along the West Section line a distance of 50.00 feet, to the
point of beginning;
- thence N 900 00' 00" E, a distance of 1235.64 feet to the Northeast corner of Lot 6, Block 1, Eastview
Estate;
- thence S 000 59'20" E, parallel with said West line of Section 31, a distance of 1279.54 feet;
- thence S 000 59'20" E, parallel with said West line of Section 31, a distance of 1306.86 feet;
- thence S 000 59' 20" E, parallel with said West line of Section 31, a distance of 2585.00 feet, to the North
right of way line of Schilling Road;
- thence S 900 00'00" W, along the North right of way line of Schilling Road, a distance of 1247.67 feet;
- thence S 380 08' 31" W, a distance of 230.68 feet, more or less;
- thence S 030 26' 13" E, to the Southwest corner of Ohio and Schilling, a distance of 219.26 feet;
- thence S 000 24'33" W, along the West right of way line of Ohio Street, a distance of 2268.54 feet;
- thence N 890 57' 35" W, to the East right of way of railroad, a distance of 2517.52 feet;
- thence N 000 09' 46" W, along the East right of way of said railroad, a distance of 2642.59 feet;
- thence N 000 09' 46" W, continuing along the East right of way of said railroad, a distance of 995.39 feet;
- thence S 890 55'49" E, a distance of 1876.50;
- thence N 000 21' 11" E, a distance of 322.91 feet, to South line of Bonnie Ridge Addition;
- thence N 900 00' 00" W, along the South line of Bonnie Ridge Addition, 451.01 feet, to a distance of
1235.64 feet from East Section line of said Section 36;
- thence N 000 59' 20" W, a distance of 3879.63 feet to a point on the North line of Section 36:
- thence N 890 40' 00" E, a distance of 1235.64 feet back to the point of beginning.