Chapter 3.28
LOCAL IMPROVEMENTS
Sections:
3.28.010 Proceedings subject to statutes and ordinance.
3.28.020 Initiation of improvement.
3.28.030 Establishment of local improvement districts.
3.28.040 Making of improvements.
3.28.050 Manner of assessments.
3.28.070 Bond – Issuance and sale.
3.28.080 Warrants – Lien on fund.
3.28.090 Collection of assessment – Local improvement district fund.
3.28.095 Foreclosure of delinquent assessments.
3.28.110 Bond – Installment plan.
3.28.140 Local improvement district guaranty fund.
3.28.160 Authorization of payment.
3.28.170 Limitation of interest rate.
3.28.010 Proceedings subject to statutes and ordinance.
Whenever the city council shall provide for making local improvements and for paying the whole or any portion of the cost and expense thereof by levying and collecting special assessments on property especially benefited, the proceedings therefor shall be in accordance with the provisions of an act of the legislature of the state, entitled “An Act Relating to Local Improvements in Cities and Towns and Repealing Certain Acts and Parts of Acts,” approved March 17, 1911, and acts amendatory thereof (being Chapters 35.43, 35.44, 35.45, 35.49, 35.50 and 35.55 RCW), and the provisions of this chapter and ordinances amendatory thereof. (Ord. 329, 1980; Ord. 115, 1960)
3.28.020 Initiation of improvement.
A. Any such improvement may be initiated either upon petition or by resolution therefor, but such improvement may be ordered only by ordinance.
B. In case the improvement is initiated by petition, such petition shall be presented to and filed with the city clerk-treasurer, or such other officer as may be designated by the city council. The mayor shall thereupon examine such petition, determine the sufficiency thereof and ascertain if the facts therein stated are true and shall cause an estimate of the cost and expense of such improvement to be made and shall transmit the same to the city council, together with all papers and information in his possession regarding the same, together with his recommendation thereon and a description of the boundaries of the district and a statement of the proportionate amount of the cost and expense of such improvement which shall be borne by property within the proposed assessment district, and a statement of the actual valuation of the real estate, including 25 percent of the actual valuation of the improvements in such proposed district according to the valuation last placed upon it for purposes of general taxation, together with all other outstanding and unpaid local improvement assessments against the property included in the district, excluding penalties and interest; and in case the petition is sufficient, shall also submit a diagram showing thereon the lots, tracts or parcels of land and other property which will be especially benefited thereby and the estimated amount of the cost and expense of such improvement to be borne by each lot, tract or parcel of property; provided, that no such diagram shall be required where such estimates are on file in the office of the city engineer or other designated city office, together with a detailed copy of the preliminary assessment roll and the plans and assessment maps of the proposed improvement.
C. The city council may initiate such improvement directly by resolution declaring its intention to order such improvement and setting forth the nature and territorial extent thereof and notifying all persons who may desire to object thereto to appear and present such objections at a meeting of the city council, or a committee thereof, at the time specified in such resolution. Such resolution shall be published in at least two consecutive issues of the official newspaper of the city, or, if there is no official newspaper, in a newspaper of general circulation within the city, and the date of hearing thereon shall be at least 15 days after the date of the first publication of the resolution. The chairman of the street committee shall submit to the city council, at or prior to the date fixed for such hearing, the same date and information required to be submitted in the case of a petition.
D. Notice of the hearing upon such resolution shall be given by mail at least 15 days before the day fixed for hearing to the owners or reputed owners of all lots, tracts and parcels of land or other property to be specially benefited by the proposed improvement, as shown on the rolls of the county treasurer, directed to the address thereon shown. The notice shall set forth the nature of the proposed improvement, the estimated cost, and the estimated benefits of the particular lot, tract or parcel.
E. The city council may by ordinance authorize the making of any such improvement and, in case of an improvement initiated by resolution of the city council, such ordinance may be passed on or at any time after the date of the hearing specified in the resolution. (Ord. 329, 1980; Ord. 115, 1960)
3.28.030 Establishment of local improvement districts.
A. Every ordinance ordering a local improvement to be paid in whole or in part by assessments against the property specially benefited shall establish a local improvement district to be known as “local improvement district no. _______” which shall embrace as nearly as practicable all the property specially benefited by the improvement.
B. Unless otherwise provided in the ordinance ordering the improvement, the improvement district shall include all the property between the termini of the improvement abutting upon, adjacent, vicinal or proximate to the street, avenue, lane, alley, boulevard, park drive, parkway, public place or square proposed to be improved to a distance of 90 feet back from the marginal lines thereof or to the centerline of the blocks facing or abutting thereon, whichever is greater (in the case of unplatted property, the distance back shall be the same as in the platted property immediately adjacent thereto); provided, that if the local improvement is such that the special benefits resulting therefrom extend beyond the boundaries as set forth in this section, the council may create an enlarged district to include as nearly as practicable all the property to be specially benefited by the improvement; the petition or resolution for an enlarged district and all proceedings pursuant thereto shall conform as nearly as is practicable to the provisions relating to local improvement districts generally, except that the petition or resolution must describe it as an enlarged district and state what proportion of the amount to be charged to the property specially benefited shall be charged to the property lying between the termini of the proposed improvement and extending back from the marginal lines thereof, to the middle of the block (or 90 feet back) on each side thereof, and what proportion thereof to the remainder of the enlarged district; provided further, that whenever the nature of the improvement is such that the special benefits conferred on the property are not fairly reflected by the use of the aforesaid termini and zone method, the ordinance ordering the improvement may provide that the assessment shall be made against the property of the district in accordance with the special benefits it will derive from the improvement without regard to the zone and termini method. (Ord. 329, 1980; Ord. 115, 1960)
3.28.040 Making of improvements.
All local improvements, the funds for the making of which are derived in whole or in part from assessments upon property specially benefited, shall be governed under RCW 35.43.190. (Ord. 473, 1985; Ord. 329, 1980; Ord. 115, 1960)
3.28.050 Manner of assessments.
The cost and expense of any such improvement, or such portion thereof as the city council may determine to be assessed, shall be distributed and assessed against all the property included in such local improvement district, in accordance with the special benefits conferred thereon, and in the manner provided by law. (Ord. 329, 1980; Ord. 115, 1960)
3.28.060 Bond – Permitted.
The city council may provide by ordinance for the payment of the whole or any portion of the cost and expense of any local improvement by bonds of the improvement district, but no bonds shall be issued in excess of the cost and expense of the improvement, nor shall they be issued prior to 20 days after the 30 days allowed for the payment of assessments without penalty or interest. (Ord. 329, 1980; Ord. 115, 1960)
3.28.070 Bond – Issuance and sale.
A. Local improvement bonds may be issued to the contractor or sold by the officers authorized by the ordinance directing their issue to do so, in the manner prescribed therein, and at no less than par and accrued interest. Any portion of the bonds of any issue remaining unsold may be issued to the contractor constructing the improvement in payment thereof.
B. The proceeds of all sales of bonds shall be applied in payment of the cost and expense of the improvement. (Ord. 329, 1980; Ord. 115, 1960)
3.28.080 Warrants – Lien on fund.
A. The city council may provide by ordinance for the issuance of warrants in payment of the cost and expense of any local improvement district fund. The warrants shall bear interest at the rate of not to exceed eight percent per annum and shall be redeemed either in cash or by local improvement bonds for the same improvement authorized by ordinance.
B. All warrants against any local improvement fund sold by the city or issued to a contractor and by him sold or hypothecated for a valuable consideration shall be claims and liens against the improvement fund against which they are drawn prior and superior to any right, lien or claim of any surety upon the bond or bonds given to the city by or for the payment of persons who have performed work thereon, furnished materials therefor, or provisions and supplies for the carrying on of the work. (Ord. 329, 1980; Ord. 115, 1960)
3.28.090 Collection of assessment – Local improvement district fund.
A. All assessments for local improvements shall be collected by the city clerk-treasurer and shall be kept in a separate fund to be known as “local improvement district no. _____ fund.” and shall be used for no other purpose than the redemption of warrants drawn upon the bonds issued against the fund to provide payment for the cost and expense of the improvement.
B. As soon as the assessment roll has been placed in the hands of the city clerk-treasurer for collection, he shall publish a notice in the official newspaper of the city for 10 consecutive daily or two consecutive weekly issues, that the roll is in his hands for collection and that any assessment may be paid within 30 days from the date of the first publication of the notice without penalty, interest or costs. (Ord. 329, 1980; Ord. 115, 1960)
3.28.095 Foreclosure of delinquent assessments.
Whenever any local assessment shall have been made payable in installments and if on the first day of January in any year, two or more installments are delinquent or if the final installment has been delinquent for more than one year, then the entire assessment shall be due and payable. Under these circumstances, the city attorney is authorized to commence foreclosure proceedings on the delinquent assessment or delinquent installments by an appropriate action on behalf of the city, in Island County superior court. The foreclosure proceeding shall be in accordance with the provisions of Chapter 35.50 RCW, as now exists or as may hereafter be amended. The collection thereof shall be enforced in the manner prescribed by the laws of the state of Washington. Proceedings brought to foreclosure such delinquent assessments shall be commenced on or before December 31st of that year, but not before the city clerk-treasurer has notified by certified mail the persons whose names appear on the assessment roll as owners of the property charged with payment of the assessments or installments which are delinquent, at the address last known to the clerk-treasurer, said notice to be issued 30 days before the commencement of the proceedings. (Ord. 752, 1997)
3.28.100 Bond – Assessment.
In all cases where bonds are issued to pay the cost and expense of a local improvement, the ordinance levying the assessments shall provide that the sum charged against any lot, tract or parcel of land or other property, or any portion thereof, may be paid during the 30-day period allowed for the payment of assessments without penalty or interest and that thereafter the sum remaining unpaid may be paid in equal annual installments. The number of installments shall be less by two than the number of years which the bonds issued to pay for the improvement are to run. Interest on the whole amount unpaid at the rate fixed by the ordinance shall be due on the due date of the first installment of principal and each year thereafter on the due date of each installment of principal. The first installment shall become due and payable during the 30-day period succeeding the date one year after the date of first publication of the notice by the city clerk-treasurer as provided in Section 3.28.090, and annually thereafter each succeeding installment shall become due and payable in like manner. If the whole or any portion of any assessment remains unpaid after the first 30-day period provided for, interest upon the whole unpaid sum shall be charged at the rate to be fixed by ordinance not exceeding eight percent per annum, and each year thereafter one of the installments, together with interest due upon the whole of the unpaid balance, shall be collected. Any installment not paid prior to the expiration of the 30-day period during which such installment is due and payable shall thereupon become delinquent. All delinquent installments shall be subject to a charge for interest at the bond rate and to an additional charge of a five percent penalty levied upon both principal and interest due on each installment or installments. (Ord. 329, 1980; Ord. 115, 1960)
3.28.110 Bond – Installment plan.
In case the improvement is made on the bond installment plan, the clerk-treasurer shall, at the expiration of 30 days after the first publication of the notice to pay assessment, report to the city council the amount collected by him upon the roll and shall specify in the report the amount remaining unpaid upon the roll, and the city council may then, or at a subsequent meeting, by ordinance, direct the mayor and the clerk-treasurer to issue the bonds on the local improvement district established by the ordinance ordering the improvement in an amount equal to the amount remaining unpaid on the assessment. (Ord. 473, 1985; Ord. 329, 1980; Ord. 115, 1960)
3.28.120 Bond – Form.
All bonds, unless otherwise specially ordered by the council, issued in pursuance of the provisions of this chapter, may be in substantially the following form:
No.________
$_________
UNITED STATES OF AMERICA
STATE OF WASHINGTON
LOCAL IMPROVEMENT BOND
CITY OF LANGLEY
N.B. This bond is issued by virtue of the provisions of RCW 35.45.010 et seq., 35.45.070 of which reads as follows:
“Neither the holder nor the owner of any bond or warrant issued under the provisions of this act shall have any claim therefore against the city or town by which the same is issued, except for payment from the special assessments made for the improvement for which said bond or warrant was issued, and except as against the local improvements guaranty fund of such city or town, and the city or town shall not be liable to any holder or owner of such bond or warrant for any loss to the guaranty fund occurring in the lawful operation thereof by the city or town. The remedy of the holder or owner of a bond or warrant in case of nonpayment, shall be confined to the enforcement of the assessment and to the guaranty fund.”
The City of Langley, a municipal corporation of the State of Washington, hereby promises to pay to _________________ or bearer __________ Dollars ($______), in lawful money of the United States, with interest thereon at the rate of _______ percent per annum, payable annually out of the fund established by Ordinance No.___ of said City, and known as “Local Improvement District No. _____ Fund,” and not otherwise, except from the guaranty fund, as herein provided. Both principal of and interest on this bond are payable at the office of the City Clerk/Treasurer of the City.
A coupon is hereto attached for each installment of interest to accrue hereon and said interest shall be paid only on presentation and surrender of such coupon to the City Clerk/Treasurer.
This bond is payable on the ______day of ________,19____, but is subject to call by the City Clerk/Treasurer of said City whenever there shall be sufficient money in said Local Improvement Fund to pay the same and all unpaid bonds of the series of which this bond is one, which are prior to this bond in numerical order, over and above sufficient for the payment of interest on all unpaid bonds of said series. The call for payment of this bond, or of any bond of the series of which this is one, shall be made by the City Clerk/Treasurer by publishing the same once in the official newspaper of the City, and when such call is made for the payment of this bond it will be paid on the day the next interest coupon thereon shall become due after said call and upon said day interest upon this bond shall cease and any remaining coupons shall be void.
The City Council of said City as the agent of said Local Improvement District No. ________ established by Ordinance No. ______, has caused this bond to be issued in the name of said City as the bond of said Local Improvement District, the bond or the proceeds thereof to be applied in part payment of so much of the cost and expense of the improvement of under said Ordinance No.______ as is levied and assessed against the property included in said Local Improvement District No. _______ and benefited by said improvement and the said Local Improvement Fund has been established by ordinance for said purpose; and the holder or holders of this bond shall look only to said fund and to the Local Improvement Guaranty Fund of the City of Langley for the payment of either the principal of or interest on this bond.
This bond is one of a series of________ bonds aggregating in all the principal sum of _________Dollars ($_______), all of which bonds are subject to the same terms and conditions as herein expressed.
IN WITNESS WHEREOF, the City of Langley has caused these presents to be signed by its Mayor and attested by its City Clerk/Treasurer and sealed with its corporate seal this______ day of____________ 19_____.
CITY OF LANGLEY, WASHINGTON
BY______________________________
MAYOR
Attest:
____________________________
CITY CLERK/TREASURER
(Ord. 329, 1980; Ord. 115, 1960)
3.28.130 Bond – Coupon form.
There shall be attached to each bond such a number of coupons as shall be required to represent the interest thereon payable either annually or semiannually, as the case may be, for the term of the bonds, which coupons shall be substantially in the following form:
On the _______day of _________19_____ the CITY OF LANGLEY, STATE OF WASHINGTON, promises to pay to the bearer at the office of the City Clerk/Treasurer
________Dollars ($___________ ), being (six) (twelve) months’ interest due that day on Bond No. ______ and not otherwise provided that this coupon is subject to all the terms and conditions contained in the bond to which it is annexed, and if said bond shall be called for payments before maturity hereof, then this coupon shall be void.
CITY OF LANGLEY, WASHINGTON
By_______________________________
MAYOR
ATTEST:_______________________
CITY CLERK/TREASURER
The city clerk-treasurer shall keep in his/her office a register of all such bonds in which he/she shall enter the local improvement district for which the same are issued and the date, amount and number of each bond and the terms of payment. (Ord. 329, 1980; Ord. 115, 1960)
3.28.140 Local improvement district guaranty fund.
In accordance with Chapter 35.54 RCW, there is created in the office of the city clerk-treasurer a fund for the purpose of guaranteeing, to the extent of such fund, the payment of bonds, warrants and notes of the city issued to pay for any local improvement ordered in local improvement districts in the city or in any area wholly or partly outside its corporate boundaries. This fund shall be designated the local improvement guaranty fund and is sometimes referred to in this code as the “guaranty fund.” (Ord. 479, 1985; Ord. 473, 1985; Ord. 329, 1980; Ord. 116, 1960)
3.28.150 City as trustee.
There shall be levied, from time to time, as other taxes are levied, sums sufficient to meet the financial requirements of the local improvement guaranty fund. Whenever the city shall have paid out of the guaranty fund any sum on account of principal and interest on a local improvement bond, warrant or note guaranteed hereunder, the city, as trustee for such fund, shall be subrogated to all of the rights of the owner of the bond, warrant or note so paid, and the proceeds thereof, or of the underlying assessments, shall become a part of such fund. (Ord. 479, 1985; Ord. 329, 1980; Ord. 116, 1960)
3.28.160 Authorization of payment.
Whenever any bond, warrant or note guaranteed under the provisions of the laws of the state in pursuance of which the ordinance codified in this chapter is passed shall be in default, the city clerk-treasurer shall be and is authorized and directed, upon the presentation and delivery of such defaulted bond, warrant or note, to purchase the same by executing, duly issuing and delivering to the person or persons presenting the same, in the order of their presentation, and the city clerk-treasurer shall honor and pay a warrant on the guaranty fund in such amount as may be necessary to pay in full any such bond, warrant or note together with any interest thereon. (Ord. 479, 1985; Ord. 329, 1980; Ord. 116, 1960)
3.28.170 Limitation of interest rate.
Warrants drawing interest at a rate to be fixed by the city clerk-treasurer, as issuing officer, under the direction of the city council, shall be issued, as other warrants are issued by the city, against the local improvement guaranty fund to meet any liability accruing against it. At the time of making its annual budget and tax levy, the city shall provide for the levying of a sum sufficient, with the other resources of the fund, to pay warrants so issued during the preceding fiscal year. Such warrants shall at no time exceed five percent of the outstanding obligations guaranteed by the guaranty fund. (Ord. 479, 1985; Ord. 473, 1985; Ord. 329, 1980; Ord. 116, 1960)
3.28.180 Surplus funds.
The city clerk-treasurer is authorized and directed to pay into the local improvement guaranty fund all interest received from bank deposits of and earnings from that fund, as well as any surplus remaining in any local improvement district fund guaranteed under the laws of the state after the payment of all outstanding bonds, warrants or notes payable primarily out of such local improvement district fund and any other money permitted by law to be deposited into the local improvement guaranty fund. (Ord. 479, 1985; Ord. 329, 1980; Ord. 116, 1960)
3.28.190 Liability.
Neither the owner nor the holder of any bond, warrant or note issued against a local improvement fund after the passage of the ordinance codified in this chapter shall have any claim therefor against the city, except for payment from the special assessments made for the improvement for which said bond, warrant or note was issued, and except as against the local improvement guaranty fund created by this chapter. The city shall not be liable to any holder or owner of such bond, warrant or note for any loss to the guaranty fund occurring in the lawful operation thereof by the city. The remedy of the holder or owner of a bond, warrant or note in case of nonpayment shall be confined to the enforcement of the assessment and to the guaranty fund. A copy of RCW 35.45.070, the provisions of which are incorporated by reference in this chapter, shall be plainly written, printed or engraved on each bond issued and guaranteed hereunder. (Ord. 479, 1985; Ord. 329, 1980; Ord. 116, 1960)