Chapter 13.16
DEVELOPER EXTENSIONS1
Sections:
13.16.010 Purpose.
13.16.020 Definitions.
13.16.030 Developer extensions – Latecomer agreements.
13.16.040 Fee.
13.16.050 Cost recovery methodology.
13.16.060 City’s authority to collect reimbursement.
13.16.900 Severability.
13.16.010 Purpose.
The purpose of this chapter is to establish regulations, as authorized by RCW 35.91.020, regarding the execution and administration of agreements for reimbursement, or “latecomer agreements,” under Chapter 35.91 RCW. (Ord. 1327 § 1, 2009; Ord. 898 § 1, 2001).
13.16.020 Definitions.
As used in this chapter, the following terms shall have the meanings indicated:
“Cost of construction (cost)” means the sum of the direct construction costs incurred to construct utility system improvements. The direct construction costs include, but are not limited to, all related design services, engineering, surveying, legal services, bonding costs, environmental mitigation, acquisition of right-of-way and/or easements, government agency fees, testing services, inspection, plan review and approval, labor, materials, equipment rental, and contractor and/or subcontractor fees or charges. The cost of construction shall not include costs that will be reimbursed by other means, at the time of construction or development, such as credits or grants.
“Developer extension” means an extension of existing city utility facilities to enable previously unserved properties to be served, which extension is undertaken and paid for by any person other than the city.
“Developer extension agreement” means an agreement setting the terms, conditions and standards by which a person agrees to undertake a developer extension.
“Latecomer agreement” means an agreement, authorized by RCW 35.91.020, whereby persons seeking to connect to a developer extension are required to pay their fair pro rata share of the cost of the developer extension, which payment is transmitted by the city to the person originally undertaking the developer extension. This reimbursement requirement is limited to a period not to exceed 20 years from the date the extension is dedicated to the city.
“Person” means any individual person or any public or private entity or organization other than the city.
“Utility” means water, stormwater or sanitary sewer service. (Ord. 1327 § 1, 2009; Ord. 898 § 2, 2001).
13.16.030 Developer extensions – Latecomer agreements.
A. In any case where a latecomer agreement is contemplated in connection with a developer extension, the latecomer agreement shall be finalized, approved by the council and executed prior to or simultaneous with the city’s acceptance of ownership of the developer extension.
B. No developer extension shall be undertaken without prior execution of a developer extension agreement. Where the person undertaking a developer extension wishes to be reimbursed pursuant to a latecomer agreement, such desire shall be made clear to the city in writing prior to the execution of the developer extension agreement relating to the developer extension. Where a latecomer agreement is contemplated, the city’s standard form latecomer agreement should be made an exhibit to and included by reference in the developer extension agreement executed between the city and the developer of the extension, and the developer extension agreement should clearly provide that the latecomer agreement must be finalized and executed prior to the city accepting ownership of the extension. Should no request for a latecomer agreement made pursuant to this subsection be made prior to execution of a developer extension agreement, the person undertaking such developer extension shall be deemed to have waived any entitlement to a latecomer agreement, and no latecomer agreement shall subsequently be considered or executed with respect to such developer extension.
C. Should a developer extension be transferred to and accepted by the city without the execution of a latecomer agreement, the person undertaking such developer extension shall be deemed to have waived any entitlement to a latecomer agreement, and no latecomer agreement shall subsequently be considered or executed with respect to such developer extension.
D. Nothing in this chapter shall be deemed to preclude the inclusion of further terms or conditions within any developer extension agreement or latecomer agreement, nor shall this chapter be deemed to preclude the city from applying further conditions to the approval of any developer extension agreement or latecomer agreement. (Ord. 1327 § 1, 2009; Ord. 898 § 3, 2001).
13.16.040 Fee.
In addition to any fee provisions which may be included with any latecomer agreement executed pursuant to this chapter to recover the city’s administrative costs, there shall be charged to any person requesting a latecomer agreement pursuant to this chapter a fee of $500.00 to cover the cost of public notification, agreement review, development, and city council process time. No request for a latecomer agreement shall be processed unless such fee has been paid. (Ord. 1327 § 1, 2009; Ord. 898 § 4, 2001).
13.16.050 Cost recovery methodology.
The following general guidance shall govern the cost recovery methodology for latecomer agreements executed pursuant to this chapter; provided, that the city council may approve additional or different terms in any particular latecomer agreement:
A. The cost of extension of utility lines across the frontage of the applicant’s property is the expected duty of the applicant and will not be a cost recoverable through a latecomer agreement, except for beneficiaries directly across the road or adjacent to the utility extension.
B. Pipe size upgrades will be reimbursed by the city to the developer only when a planned capital improvement is contemplated within three years of the execution of a developer extension agreement.
C. Depth of sewer will not be a cost recoverable item. Pipe size will not be a cost recoverable item except as noted in subsection B of this section.
D. Any developments or short plats that are connecting to a utility where a latecomer agreement applies shall pay the latecomer fees at final plat. Latecomer fees paid at final plat will be exempt from administration fees.
E. All lots of record identified in the latecomer agreement will pay the applicable latecomer fee when their building permit is issued or, for existing buildings, when the utility connection is made.
F. The city’s administration fee for a latecomer agreement shall be 10 percent and shall be charged to the latecomer.
G. Extension of the sewer, storm water and water systems or addition of new facilities shall be designed according to the adopted water and sewer comprehensive plan or per the public works director’s direction.
H. The public works director or his designee will make recommendations to the city council as to an appropriate pro rata share for latecomer fees.
I. Recoverable costs shall include all costs reasonably associated with this extension. These costs include but are not limited to design, construction, acquiring utility easements or right-of-way, public notification and information, and any professional services deemed appropriate by the public works director to establish complete cost compilation and assessment of costs on a fair, pro rata share of the extension, subject to such rules and regulations the city council may provide.
J. The city council will determine the method of cost allocation used, which may include but not necessarily be limited to:
1. Front foot method;
2. Zone front foot method;
3. Square footage method;
4. Contract method;
5. Other equitable method approved by the city council;
6. Any combination of the methods in subsections (J)(1) through (5) of this section. (Ord. 1327 § 1, 2009; Ord. 898 § 5, 2001).
13.16.060 City’s authority to collect reimbursement.
A. Pursuant to RCW 35.91.020, if the city contributes partially or fully to the financing of water, sanitary sewer or stormwater facility projects, it has the same rights to collect reimbursements as do private owners of real estate who enter into latecomer agreements with the city under this chapter.
B. The city may obtain reimbursements for projects funded solely by the city or in conjunction with private developers. If projects are jointly financed, the amount of reimbursement received by each participant in the financing must be a pro rata share. The city is authorized to enter into such contracts with private parties as are necessary to finance and construct the project and secure pro rata reimbursements. The public works director based on information submitted by the owner will estimate pro rata share of costs. The public works director may require engineering costs or construction bids to be provided. The public works director will formulate an assessment reimbursement area (benefit area) based upon a determination of which parcels did not contribute to the original cost of such infrastructure improvement and who may connect to or specially benefit from such infrastructure.
C. The city may not collect any additional reimbursement, assessment, charge or fee for the infrastructure or facilities for which the city collected pro rata reimbursement under this section.
D. Cost recovery methodology for the city’s reimbursement shall be governed by BLMC 13.16.050; provided, that the city council, acting on the recommendation of the public works director or designee, may approve additional or different methodology in regard to any particular project.
E. The city shall record in the office of the Pierce County auditor, against every property in the reimbursement area of any project the city funds or co-funds, a notice of additional water or sewer facility tap or connection charges pursuant to RCW 65.08.170. (Ord. 1327 § 2, 2009).
13.16.900 Severability.
If any section, sentence, clause or phrase of this chapter should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this chapter. (Ord. 898 § 6, 2001).
Code reviser’s note: Section 7 of Ord. 898 provides:Section 7. The provisions of this Ordinance shall apply to any developer extension for which an executed developer extension agreement existed as of the effective date of this Ordinance where such developer extension has not yet been transferred to and accepted by the City; provided, that the provisions of Section 3 subsection (B) of this Ordinance shall not apply to any such developer extension.