Chapter 13.40
DEVELOPER RECOVERY CONTRACTS

Sections:

13.40.010    Conditions for latecomer fees and recovery contracts.

13.40.020    Developers able to recover costs.

13.40.030    Provisions for recovery contracts.

13.40.010 Conditions for latecomer fees and recovery contracts.

(1) When a developer extends city utilities, namely water and/or sewer mains, or installs such improvements to these utilities as lift stations, reservoirs and pumps to a development site, be it a subdivision or a commercial development, the developer is entitled to reimbursement from properties not within the development but within the area of extension if those properties are to benefit from such extension or improvement.

(2) Reimbursement is to be based on each property’s share in the cost of extension and/or improvements. (Ord. 463 § 1, 1994)

13.40.020 Developers able to recover costs.

At the option of the city council, any party having constructed a public water or sewer line at its own cost may be allowed to enter into a recovery contract with the city, providing for partial reimbursement to such party, or its assigns, for the costs of such construction, including the costs of engineering and design work, and all costs of labor and materials reasonably incurred. (Ord. 463 § 2, 1994)

13.40.030 Provisions for recovery contracts.

(1) Within 90 days after a utility line is accepted by the city and a bill of sale/warranty and as-builts are filed with respect to the same, the proponent of the recovery contract shall submit a request for the same, together with supporting documentation showing all costs incurred in the project.

(2) An assessment area shall be formulated based upon a determination by the city as to which parcels of real estate adjacent to the utility line will be directly benefited by the utility line provided by the developer.

(3) The reimbursement share of all property owners in the assessment area shall be the pro rata share of the total cost of the project, less any contributions paid by the city. Each reimbursement share shall be determined by using a method of cost apportionment which is based upon the benefit received by each property from the project. This will generally be prorated on a front footage or equivalent basis. There shall be no reimbursement to the proponent for the share of the benefits which are allocated to its property.

(4) The contract, upon approval by the city council, shall be recorded in the records of the Chelan County auditor within 30 days of such approval. The recorded contract shall constitute a lien against all real property within the assessment area which did not contribute to the original cost of the utility project.

(5) If, within a period of 15 years from the date the contract was recorded, any property within the assessment area applies for connection to the utility line, the lien for payment of the property’s proportionate share shall become immediately due and payable to the city as a condition of receiving connection approval. All such assessments shall be in addition to the city’s normal connection fees, as set by the annual fee schedule resolution.

(6) All assessments collected by the city pursuant to a recovery contract shall be paid to the original proponent, its personal representative, successors or assigns, within 30 days after receipt by the city, less the administrative charge as determined by the city council and as required in the individual recovery contracts.

(7) At the termination of the 15-year recovery period, the lien shall continue, but all collections thereafter shall be for the benefit of the city and shall be deposited in the city’s utility fund.

(8) Nothing in this section, nor any provision in a recovery contract, shall be construed as establishing the city as a public utility in areas not already connected to the city’s utility system, nor shall this section, or any recovery contract, be construed as establishing express or implied rights for any property owner to connect to the city’s utility system without first qualifying for such connection by compliance with all applicable city ordinances. (Ord. 655 § 1, 2006; Ord. 463 § 3, 1994)