Chapter 13.18
UTILITY LOCAL IMPROVEMENT DISTRICT FORMATION BY PETITION

Sections:

13.18.010    Title.

13.18.020    Definitions.

13.18.030    Purpose.

13.18.040    Development of project proposal.

13.18.050    Briefing to the board.

13.18.060    Development of petition content.

13.18.070    Petition circulation.

13.18.080    Informational meetings.

13.18.090    ULID project boundary.

13.18.100    Preliminary design and costs.

13.18.110    Petition approval criteria.

13.18.120    Special benefit analysis.

13.18.130    ULID staff report.

13.18.010 Title.

This chapter may be cited as either the “Utility Local Improvement District Formation By Petition Ordinance” or Kitsap County Code, Chapter 13.18.

(Ord. 506 (2013) § 1 (part), 2013)

13.18.020 Definitions.

Unless the context indicates otherwise, the terms used in this chapter shall be as set forth in this section:

“Board” means the Kitsap County board of county commissioners.

“Boundary” means the geographical limits of property to be included in a proposed utility local improvement district.

“Declaration” means a sworn statement made pursuant to RCW 9A.72.085.

“Director” means the director of the Kitsap County public works department or his or her designee.

“Petition” means a document signed by interested property owners requesting the county form a utility local improvement district.

“Petition method” means utilizing a petition to initiate a request to form a ULID submitted by property owners.

“Special benefit” means the difference in fair market value of a property before and after installation of a utility improvement.

“Special benefit analysis” means evaluation of the special benefit amount each property would derive from installation of a utility improvement.

“Utility local improvement district (ULID)” means a method of financing utility installation using assessments paid by each property owner to finance the design and construction of a utility improvement. The assessments can be collected up to a twenty-year period to repay long term bonds issued to finance the project.

“ULID proponent” means a property owner soliciting signatures from other property owners within a boundary on a petition to form a ULID. The ULID proponent will be the primary contact with county staff during the formation process.

(Ord. 506 (2013) § 1 (part), 2013)

13.18.030 Purpose.

The purpose of this chapter is to establish an administrative process for forming a ULID through the petition method as an alternative to the process defined in Chapter 36.94 RCW. The final determination on the formation of a ULID is a discretionary decision made by the board of county commissioners. A ULID proponent may seek to petition the board through the process set forth in Chapter 36.94 RCW, or through the process set forth in this chapter. The process set forth in this chapter is intended to provide clear guidelines for the public, county staff, and the board for an effective ULID formation process.

(Ord. 506 (2013) § 1 (part), 2013)

13.18.040 Development of project proposal.

The development of a project proposal will be a collaboration between ULID proponents, Kitsap County public works, and the Kitsap public health district on a case by case basis. The proposal will consist of the following:

1.     Initial boundary limits to encompass an area to include property owner interest, public works’ long range utility plan, and environmental concerns.

2.     Initial project improvements to meet the needs of the property owners and utility division.

3.     Initial cost estimates/benefit based on the list of improvements. From the project cost, a range for assessments will be calculated and the initial legwork will be completed to determine the need for a special benefit analysis.

4.     Public outreach will apprise the property owners of the proposed project through:

•    Circulation of an interest survey;

•    A series of informational meetings;

•    Mailings or direct contact.

(Ord. 506 (2013) § 1 (part), 2013)

13.18.050 Briefing to the board.

The proposed project will be presented to the board and should include the following:

1.    Limits of the project and improvements.

2.    Evaluation of the level of interest from property owners based on the public outreach component in Section 13.18.040.

3.    Estimated costs with an evaluation of project funding components.

The board will provide direction on proceeding with the petition development.

(Ord. 506 (2013) § 1 (part), 2013)

13.18.060 Development of petition content.

The director shall provide a standardized petition to be used by ULID proponents for a proposed ULID. Information provided in the petition will be based on the proposed project, current county assessor’s tax parcel information, county’s comprehensive plan, facility plan, survey and geographical information system data.

Circulation of the petition will be limited to one hundred twenty days from the date county staff provides it to the ULID proponent.

The petition will include the following:

1.    Instructions for proper petition execution;

2.    Legal description of the ULID boundary;

3.    ULID boundary map;

4.    List of utility improvements;

5.    Estimated range of preliminary costs for improvements to property owners;

6.    Signature line for all property owners for each tax parcel number within the ULID boundary;

7.    Date petition was provided by county staff.

(Ord. 506 (2013) § 1 (part), 2013)

13.18.070 Petition circulation.

It will be the responsibility of the lead ULID proponent to sign a petition circulation declaration with the return of the petition to the director. The declaration will provide a sworn testimony for the following:

1.    Information regarding the proposed ULID was provided to one hundred percent of the property owners within the boundary.

2.    At least eighty-five percent of the property owners within the proposed ULID boundary have had an opportunity to review and sign the petition.

3.    All signatures are original.

(Ord. 506 (2013) § 1 (part), 2013)

13.18.080 Informational meetings.

The ULID proponent should conduct a sufficient number of meetings to allow property owners the opportunity to attend and be provided information regarding the proposed project. If requested, the director or designee will attend such informational meetings to answer questions regarding county involvement and the ULID process.

(Ord. 506 (2013) § 1 (part), 2013)

13.18.090 ULID project boundary.

The ULID project boundary as described on the petition may be adjusted from the initial boundary limits as directed by the board. Changes to the project boundary may be based on topographical limitations, project cost analysis, funding, economic impacts, future maintenance and operation concerns, and consistency with the long range goals of the utility. County staff will establish the legal description for the boundary.

(Ord. 506 (2013) § 1 (part), 2013)

13.18.100 Preliminary design and costs.

A preliminary engineering design and cost will be developed by county staff based on information provided in current public works facility plan documents. Deviation from the planning level design may be due to new or differing technology, changes in best management practices or standard operating procedures, and new or changed regulation requirements at the time of the development of ULID petition. The project costs will be based on planning level costs provided in the facility plan and will be adjusted where possible to reflect available current pricing and any costs incurred to date. Any project costs provided are only an estimation of potential assessments for property owners and may be adjusted based on further analysis of the special benefit for each property.

(Ord. 506 (2013) § 1 (part), 2013)

13.18.110 Petition approval criteria.

Once the petition has been returned to director, it will be verified for the following:

1.    Declaration has been signed;

2.    Petition met the requirements in Section 13.18.060;

3.    Meets the Chapter 36.94 RCW criteria for the necessary fifty-one percent approval by property owners based on land area;

4.    Certificate of sufficiency is provided by the county auditor.

In addition, in order to be successful, a petition should include the following:

1.    Support by at least sixty-five percent of the total property owners in the area;

2.    Consistency with the Kitsap County Public Works Sewer Standards;

3.    Consistency with the Kitsap County Sewer Facility Plan for the area;

4.    A cost effective proposal for both the property owners and the county;

5.    Utilize the county’s standard petition format.

(Ord. 506 (2013) § 1 (part), 2013)

13.18.120 Special benefit analysis.

A special benefit analysis will be conducted to determine the benefit the improvements would have to each property. The analysis may be done by county staff or by an independent entity depending on the complexity of the ULID. The special benefit analysis will be done prior to the filing of the final assessment roll, RCW 36.94.240. If an independent entity prepares the special benefit analysis during the formation process, the county shall fund the analysis only in the case where a petition proposing a ULID meets the director’s approval. All costs associated with a special benefit analysis will be included in the final total project cost.

(Ord. 506 (2013) § 1 (part), 2013)

13.18.130 ULID staff report.

Prior to the formation hearing, the director will provide the board a report consisting of:

1.    Overview of project;

2.    Petition summary with indication of level of interest;

3.    Preliminary project costs;

4.    Any special benefit analysis results;

5.    Financial impacts to the utility;

6.    Recommendations to the board.

(Ord. 506 (2013) § 1 (part), 2013)