Chapter 2.50
DEVELOPER REIMBURSEMENT AGREEMENTS
Sections:
2.50.020 Purpose.
2.50.050 Definitions.
2.50.080 Agreement.
2.50.100 Assessment reimbursement area and charge.
2.50.120 Implementation of developer reimbursement agreements for street system improvements.
2.50.140 Implementation of developer reimbursement agreements for utility system improvements.
2.50.160 Rights and nonliability of city.
2.50.190 Term of developer reimbursement agreements.
2.50.220 Ownership of systems.
2.50.250 Defective work.
2.50.280 Connection/use prepayment requirement.
2.50.290 Removal of unauthorized connections or taps.
2.50.350 Payment of developer reimbursement charge.
2.50.020 Purpose.
The purpose of this developer reimbursement chapter is to define the rules and regulations for executing contracts between the city and developers for privately financed construction of municipal water, sewer, storm sewer, electricity, natural gas, and street system improvements by providing a means for partial cost recovery from later users of the system(s) who did not contribute to the capital costs thereof and for establishing assessment reimbursement areas defining which property is subject to such charges. [Ord. 4114, 1997.]
2.50.050 Definitions.
The following definitions shall apply to this chapter:
“Cost of construction” means those costs incurred for design, acquisition of right-of-way and/or easements, labor, materials and installation as required to create an improvement which complies with city standards.
“Developer reimbursement agreement” means a written contract between the city, as approved and executed by the city engineer, and one or more property owners, which provides for construction of municipal improvements and for partial reimbursement to the party causing such improvements to be made of a portion of the costs of such improvements by owners of property benefitted by the improvements, as authorized and described in Chapters 35.71 and 35.91 RCW.
“Developer reimbursement charge” or “assessment” means a fair pro rata charge to be paid by an owner of property within an area benefitted by the privately financed construction of municipal improvements pursuant to this chapter.
“Municipal improvements” for the purposes of this chapter means water, sewer, storm sewer, electricity, natural gas, or street system improvements constructed in conjunction with a development which provide potential for service to properties not having participated in the original project cost.
“Reimbursement area” or “benefit area” means that area within the city’s urban growth area, which area includes parcels of real estate adjacent to, or likely to require connection to or service by, the water, sewer, storm sewer, electricity, natural gas, or street system improvements constructed by a developer who has applied to the city for a developer reimbursement agreement pursuant to this chapter.
“Street system improvements or facilities” means the acquisition of right-of-way and/or easement, and the design, inspection, grading, paving, installation of curbs, gutters, sidewalks, street lighting, traffic control devices and other similar improvements in accordance with city standards.
“Utility system improvements” means the acquisition of right-of-way and/or easements, and the design, inspection and installation of improvements to city standards as per the following:
1. “Water system improvements” includes such things as reservoirs, wells, mains and appurtenances such as valves, fire hydrants, monitoring systems, pumping stations, and pressure reducing stations;
2. “Sewer system improvements” includes such things as treatment plants, mains and manholes, pump stations, force mains, and monitoring systems;
3. “Storm sewer system improvements” includes such things as mains, retention/detention facilities, pumping stations, inlets, catch basins, and manholes;
4. “Electric system improvements” includes such things as cables, poles, conduits, service vaults, junction boxes, generators, and monitoring systems.
5. “Natural gas system improvements” includes such things as distribution mains, meters, valves, pressure regulators, pump stations, cathodic protection systems, and monitoring systems. [Ord. 4114, 1997.]
2.50.080 Agreement.
A. A developer who uses private funds for the construction of municipal improvements where the cost of construction is greater than $4,000, said limit to be adjusted annually in accordance with the ENR (Engineering News Record) Index, in the city or within the city’s utility service area may apply to the city to establish a developer reimbursement agreement in order to recover a pro rata share of the costs from subsequent connections and/or use of the constructed system(s).
B. The application must be on a form prescribed by the city engineer and must be accompanied by a nonrefundable application fee of $50.00. In the event an agreement is developed for reimbursement, an additional administrative fee will be assessed. This fee will be based on cost incurred by the city in developing the agreement, establishing the benefit area, and calculating the pro rata share assigned to each property.
C. The city engineer may require the applicant to submit a certified statement by a state of Washington licensed professional engineer containing an itemization of the total projected cost of the system improvements and a copy of the design drawings and specifications.
D. The city engineer is authorized to establish policies and procedures for processing applications and determining eligibility of a system for a developer reimbursement agreement consistent with the requirements of this chapter.
E. Applicants for developer reimbursement agreements must comply with all city ordinances and regulations in order to be eligible for reimbursement agreements.
F. A developer reimbursement agreement application shall not be accepted for the improvement of a developer’s abutting right-of-way and transitions as required pursuant to city ordinance. An exception may be allowed when vertical grade and alignment changes are required by the city engineer to promote traffic safety and the city engineer recommends a developer reimbursement agreement.
G. The proposed improvements must be consistent with the comprehensive utility, and/or transportation plans of the city.
H. The city must have the capability and capacity to service both the proposed development and subsequent connections resulting from enforcement of the reimbursement agreement.
I. The application must comply with the requirements of this chapter and all other applicable city ordinances. [Ord. 4114, 1997.]
2.50.100 Assessment reimbursement area and charge.
A. The city engineer shall formulate an assessment reimbursement area (benefit area) based on the following:
1. For Utility Systems. The assessment reimbursement area shall be based upon a determination of which parcels did not contribute to the original cost of the utility system improvement(s) and are located so that they may subsequently be served by or use such improvement(s), including through laterals or branches connecting thereto.
2. For Street Systems. The assessment reimbursement area shall be based upon a determination of which parcels adjacent to the improvement would require similar street improvements upon development.
B. The city engineer or her/his designee will determine the assessments or charges for parcels within the reimbursement area by calculating the fair pro rata share of the cost of construction for each property which might tap, connect or be served by the system(s), determined on an area, front footage, or other equitable basis.
C. For street systems, a notice containing the assessment reimbursement area boundaries, the preliminary assessments or charges, and a description of the property owner’s rights and options under this chapter, including the right to request a public hearing before the city council with regard to the area boundaries and assessments, will be forwarded by registered mail to the property owners of record as shown on the records of the Kittitas County assessor within the proposed assessment reimbursement area.
D. If any property owner notified pursuant to subsection (C) of this section makes a written request for a hearing within 20 days of the mailing of the notice, a hearing shall be held before the city council. Notice of such hearing shall be given to all affected property owners.
E. All notice requirements set forth in this chapter shall be the sole responsibility of the applicant and shall be satisfied by a notarized affidavit that the applicant has mailed the notices pursuant to the requirements set forth herein.
F. After reviewing the public hearing testimony and the preliminary determination of the city engineer, the city council may approve, modify or reject the assessment reimbursement area and/or charges. The city council’s determination shall be final. [Ord. 4114, 1997.]
2.50.120 Implementation of developer reimbursement agreements for street system improvements.
A. Upon approval of the developer reimbursement agreement and charges and establishment of the assessment reimbursement area, the applicant (or, if the improvements are to be installed by the city, the city) may begin construction of the improvements; provided, however, that all other applicable city ordinances have been complied with.
B. After the construction has been completed and accepted by the city in accordance with the terms of the developer reimbursement agreement, the final cost of the improvements shall be compared to the preliminary assessments established by the city engineer, and the agreement and charges shall be modified accordingly.
C. The developer reimbursement agreement and a notice of the agreement shall be recorded in the Kittitas County auditor’s office within 30 days of the final execution of the agreement. It shall be the sole responsibility of the applicant to record the agreement and the notice.
D. The applicant shall mail a copy of the agreement and notice to each owner of record of all properties subject to the developer reimbursement charge. The applicant shall provide a notarized affidavit that the applicant has mailed the agreement and notice.
E. Once the agreement and notice are recorded and mailed, the developer reimbursement agreement and charge shall be binding on all owners of record within the assessment reimbursement area. [Ord. 4114, 1997.]
2.50.140 Implementation of developer reimbursement agreements for utility system improvements.
A. After the construction has been completed, and final costs have been provided to the city, an agreement will be prepared to reflect the actual improvement costs and to assign these costs to the properties included in the reimbursement area.
B. The developer reimbursement agreement shall be recorded in the Kittitas County auditor’s office within 30 days of the final execution of the agreement. It shall be the sole responsibility of the applicant to record the agreement.
C. Once the agreement is recorded, the developer reimbursement agreement and charge shall be binding on all owners during the period specified in the agreement. [Ord. 4114, 1997.]
2.50.160 Rights and nonliability of city.
The city reserves the right to refuse to enter into any developer reimbursement agreement or to reject any application thereof. All applicants for developer reimbursement agreements shall be deemed to release and waive any claims for any liability of the city in the establishment and enforcement of such agreements. The city shall not be responsible for locating any beneficiary or survivor entitled to benefits under developer reimbursement agreements. Any collected funds not claimed by a developer prior to the expiration of a developer reimbursement agreement shall inure to the benefit of the appropriate utility or fund. [Ord. 4114, 1997.]
2.50.190 Term of developer reimbursement agreements.
No developer reimbursement agreement shall extend for a period longer than 20 years (nor longer than five years for natural gas system improvements) from the date of final acceptance by the city. [Ord. 4629 § 1, 2012; Ord. 4114, 1997.]
2.50.220 Ownership of systems.
A. Upon approval of a developer reimbursement agreement and the completion and acceptance of construction, the system(s) shall become the property of the city. The city may charge and receive fees for utility system use according to the city’s established rates.
B. A copy of the engineering “as built” plans, specifications and drawings, including all necessary right-of-way and easement documents, shall be provided to the city prior to acceptance of the utility or street system improvements.
C. No connection to or other use of the facilities will be allowed or permitted until the city has officially accepted the construction. [Ord. 4114, 1997.]
2.50.250 Defective work.
If the improvements are installed by private contractors, the applicant shall be responsible for all work found to be defective within one year after the date of acceptance of the improvements by the city. The applicant shall provide the city with a “maintenance guarantee bond” or equivalent acceptable to the city in the amount of 10 percent of the value of the system improvements to be in effect for a period of one year from the date of final approval and acceptance of the system(s). If the applicant does not correct the work within a reasonable period after notice of the defect, the city shall be reimbursed for costs of correcting such defective work either by the applicant or by the bond proceeds. [Ord. 4114, 1997.]
2.50.280 Connection/use prepayment requirement.
A. Except as otherwise provided, connection to or use of the system(s) shall be prohibited and development permission shall not be granted unless the city has received payment, or acceptable assurance of payment, of the developer reimbursement charge, including administration costs.
B. The city will exercise its best efforts to assure compliance with this section; provided, however, that in no event shall the city incur liability for an unauthorized connection to or use of the facilities. [Ord. 4114, 1997.]
2.50.290 Removal of unauthorized connections or taps.
Whenever any tap or connection is made into any utility system(s) without payment being made as required by this chapter, the public works director shall cause to be removed such unauthorized tap or connection and all connecting pipe located in the city right-of-way without any liability to the city or city officials. [Ord. 4114, 1997.]
2.50.350 Payment of developer reimbursement charge.
A. Each payment of the developer reimbursement charge shall be made to the city in one lump sum including administrative costs. The city will pay over the amounts due to the beneficiary within 60 days of receipt.
B. When the developer reimbursement fee for a particular lot or parcel has been paid, at the request of the owner/payor, the city engineer will approve a certification of payment which may be recorded by said owner.
C. Throughout the term of the agreement, the beneficiary shall in writing certify annually in January the name(s) and address(es) of the beneficiary. The city is not responsible for locating any person who may be entitled to benefits under any agreement. Failure to receive the annual certification required under this subsection will give the city cause to refuse to make payment under the agreement, and money received may become the sole and exclusive property of the city. [Ord. 4114, 1997.]