Chapter 14.28
WATER, SANITARY SEWER, AND STORM SEWER LATECOMER REIMBURSEMENT CONTRACTS

Sections:

14.28.010    Purpose.

14.28.020    Definitions.

14.28.030    Water, storm sewer and sanitary sewer latecomer reimbursement contracts.

14.28.040    City participation in latecomer reimbursement agreement – Creation of assessment reimbursement area.

14.28.050    Submittal of latecomer reimbursement request.

14.28.060    Latecomer reimbursement contract to include conditions required in accordance with adopted city policies and standards.

14.28.070    Consistency with comprehensive plan required.

14.28.080    Conditions of connection of the water or sewer facility to the municipal system.

14.28.090    Contract must provide for pro rata reimbursement to owner – Duration of reimbursement period – Extension of reimbursement period.

14.28.100    Property owner entitled to reimbursement to provide current contact information every two years.

14.28.110    Determination of reimbursement area and latecomer fee.

14.28.120    Public hearing required.

14.28.130    Latecomer reimbursement contract must be adopted by ordinance and recorded.

14.28.140    Owner to submit total cost of water or sewer facility.

14.28.150    Approval and acceptance of facilities by city.

14.28.160    Latecomer reimbursement fee to be paid prior to tap, connection or use – Removal of tap or connection.

14.28.170    No liability for failure to collect.

14.28.180    Administrative fees.

14.28.010 Purpose.

The purpose of this chapter is to prescribe rules and regulations governing water, sanitary sewer, and storm sewer latecomer contracts as prescribed by Chapter 35.91 RCW. (Ord. 3285 § 1, 2023).

14.28.020 Definitions.

The definitions set forth in RCW 35.91.015 are hereby adopted and incorporated by this reference as if set forth in full. (Ord. 3285 § 1, 2023).

14.28.030 Water, storm sewer and sanitary sewer latecomer reimbursement contracts.

The city shall enter into a water and sewer latecomer reimbursement contract with an owner of real property, when the following conditions apply:

(1) The owner elects to install water or sewer facilities solely at the owner’s expense.

(2) The owner has submitted a request for a latecomer reimbursement contract prior to the approval of the water or sewer facility by the municipality.

(3) An ordinance other than the general development ordinances of the city has been adopted that requires that water or sewer facilities be constructed in the location of the proposed property development as a prerequisite to further property development.

(4) The facilities are within the corporate limits or within 10 miles of the corporate limits. (Ord. 3285 § 1, 2023).

14.28.040 City participation in latecomer reimbursement agreement – Creation of assessment reimbursement area.

(1) The city council of the city of Puyallup may by ordinance or contract, and pursuant to the provisions of RCW 35.91.020(b), authorize the city engineer to participate in financing water or sewer facilities development projects authorized and improved or constructed in accordance with this chapter and RCW 35.91.020(1)(a), whereby the city may join in the financing of improvement projects and may be reimbursed in the same manner as the owners of real estate who participate in the projects; alternatively

(2) The city of Puyallup may implement an assessment reimbursement area on its own initiative without the participation of private property owners, pursuant to RCW 35.91.060, wherein the city finances the cost of the water and/or sewer improvements within the assessment reimbursement area and becomes the sole beneficiary of the reimbursements charged to the property owners benefiting from the improvements. The terms and conditions of the city’s participation shall be specified in the ordinance adopting the assessment reimbursement area and program pursuant to PMC 14.28.130(1). (Ord. 3285 § 1, 2023).

14.28.050 Submittal of latecomer reimbursement request.

The request for a water and sewer latecomer reimbursement contract must be submitted by the owner of property to the city prior to the issuance of permits for the proposed water and/or sewer facility. (Ord. 3285 § 1, 2023).

14.28.060 Latecomer reimbursement contract to include conditions required in accordance with adopted city policies and standards.

The latecomer reimbursement contract must include conditions required by the city in accordance with its adopted policies and standards. (Ord. 3285 § 1, 2023).

14.28.070 Consistency with comprehensive plan required.

The requirement for the city to enter a water or sewer latecomer contract under the preceding section shall only be applicable if the water or sewer facilities are consistent with all applicable comprehensive plans and development regulations of the city. Unless the city gives the owner written notice of its intent to request a comprehensive plan amendment, the owner must request and secure a comprehensive plan amendment for the water or sewer facility, if required. (Ord. 3285 § 1, 2023).

14.28.080 Conditions of connection of the water or sewer facility to the municipal system.

Connection of the water or sewer facility to the municipal system is subject to the following conditions:

(1) The water or sewer facility has been constructed to plans and specifications approved by the city.

(2) The water or sewer facilities have been inspected and approved by the city.

(3) The water or sewer facilities have been transferred to the city, without cost to the city, upon acceptance by the city.

(4) The owner has fully complied with all of the owner’s obligations under the latecomer reimbursement contract and with the city’s rules and regulations.

(5) The owner has provided sufficient security to the city to ensure completion of the water or sewer facility and other performance under the contract.

(6) The owner has paid the city all of its costs associated with the water or sewer facility, including, but not limited to, engineering, legal and administrative costs.

(7) The city has verified and approved all of the owner’s contracts and costs related to the water or sewer facility. (Ord. 3285 § 1, 2023).

14.28.090 Contract must provide for pro rata reimbursement to owner – Duration of reimbursement period – Extension of reimbursement period.

(1) The latecomer reimbursement contract shall provide for the pro rata reimbursement in the amount established in the latecomer reimbursement contract to the owner or owner’s assigns for a period of 20 years by any owner of property who did not contribute to the original cost of construction, is within the identified benefited area, and subsequently taps into or uses the water or sewer facilities within the period that the latecomer reimbursement is effective.

(2) The latecomer reimbursement contract may provide for extension of the 20-year period for the duration of any moratorium, phasing ordinance, concurrency designation, or other governmental action that prevents making applications for, or the approval of, any new development within the benefit area for a period of six months or more. Any amendment extending the reimbursement period must specify the duration of the extension and must be filed and recorded with the county auditor. Property owners who are subject to the reimbursement obligations under this section shall be notified of the contract extension under this subsection. (Ord. 3285 § 1, 2023).

14.28.100 Property owner entitled to reimbursement to provide current contact information every two years.

The latecomer reimbursement contract shall include a provision requiring that every two years from the date of execution a property owner entitled to reimbursement under a latecomer reimbursement contract must provide the city with information regarding the current contact name, address and telephone number of the person, company, or partnership that originally entered the contract. If the property owner fails to comply with this requirement within 60 days of the specified time, the city may collect any reimbursement fees owed to the property owner under the contract and deposit such funds in the city’s capital fund. (Ord. 3285 § 1, 2023).

14.28.110 Determination of reimbursement area and latecomer fee.

(1) The city engineer or designee shall determine the boundaries of the reimbursement area for all applications based upon the identification of parcels located so that they may subsequently tap into or use the same.

(2) The amount of the latecomer fee shall be established so that each property subject to the latecomer fee will pay a fair pro rata share of the costs of the improvements as determined at the sole discretion of the city engineer or designee using a reasonable method to figure the pro rata share on a front-foot or area assessment basis or both, or by determining the total capacity of the water or sewer improvements expressed in equivalent residential units (ERUs) and dividing the total cost by the number of ERUs created by construction or added by improvement of the water or sewer facility, or by any other appropriate method as determined by the city engineer.

(3) The amount of the latecomer reimbursement fee may be estimated on the best information available for any public hearing. The actual latecomer reimbursement fee shall be determined after construction and verification of all costs. (Ord. 3285 § 1, 2023).

14.28.120 Public hearing required.

A public hearing shall be held before the city council with regard to the reimbursement area boundaries and the amount of the latecomer reimbursement fee. Notices shall be sent by first-class mail to the property owners within the proposed reimbursement area containing:

(1) The name of the applicant;

(2) A description and the location of the proposed water or sewer improvements;

(3) A map of the reimbursement area boundaries;

(4) An assessment roll showing:

(a) The total front footage of property currently paying the costs of construction;

(b) The total area and front footage of the property physically capable of being served by the proposed utility line (including subsection (4)(a) of this section);

(c) The names and permanent mailing addresses of all property owners covered by subsections (4)(a) and (b) of this section; and

(5) The preliminary estimate or final total cost of the latecomer reimbursement fee.

The notices shall be sent not less than 21 days prior to the date set for the public hearing. The applicant shall provide the city with the list of the names and addresses of persons entitled to notice under this section 45 days prior to the date of the public hearing, and the applicant shall be solely responsible for the correctness of that list, and shall defend and indemnify the city against any suit or claim that a person entitled to notice did not receive notice due to an error in the list. (Ord. 3285 § 1, 2023).

14.28.130 Latecomer reimbursement contract must be adopted by ordinance and recorded.

(1) The council’s decision regarding the assessment reimbursement area and program is determinative and final and the decision granting an assessment reimbursement area and program shall be adopted by ordinance.

(2) Prior to the collection of any latecomer fees, the latecomer reimbursement contract agreement must be recorded with the Pierce County auditor. It shall be the sole responsibility of the applicant to record the reimbursement agreement.

(3) Within 30 days after receipt of evidence that the latecomer reimbursement contract has been recorded, the city engineer or designee shall record a notice of additional water or sewer facility tap or connection charges with the Pierce County auditor’s office as required by RCW 65.08.170. (Ord. 3285 § 1, 2023).

14.28.140 Owner to submit total cost of water or sewer facility.

Within 120 days of the completion of a water or sewer facility, the owner of the real estate must submit the total cost of the water or sewer facility to the city. The city shall use the total cost as the basis for determination of the actual latecomer reimbursement fee to be paid by owners of real property who subsequently tap into or use the contracted water or sewer facilities and who did not contribute to the original cost of construction. (Ord. 3285 § 1, 2023).

14.28.150 Approval and acceptance of facilities by city.

Upon completion of the water and sewer facilities constructed pursuant to a water or sewer latecomer reimbursement contract in accordance with the approved plans and specifications and requirements of the contract, the city shall approve and accept such facilities. (Ord. 3285 § 1, 2023).

14.28.160 Latecomer reimbursement fee to be paid prior to tap, connection or use – Removal of tap or connection.

(1) No person, firm or corporation shall be granted a permit or otherwise authorized to tap into or use any water or sewer facilities subject to a latecomer reimbursement contract without first paying to the city, in addition to any and all other costs and charges made or assessed for such tap or use, the latecomer fee required by the provisions of latecomer reimbursement contract under which such facilities were constructed.

(2) All amounts so collected by the city shall be paid out under the terms of the latecomer reimbursement contract within 60 days after receipt.

(3) Whenever any tap or connection is made into any such contracted water or sewer facility without the latecomer fee having been first paid, the city may remove, or cause to be removed, such unauthorized tap or connection and all connecting tile or pipe located in the facility right-of-way and dispose of unauthorized material so removed without any liability whatsoever. (Ord. 3285 § 1, 2023).

14.28.170 No liability for failure to collect.

The city shall have no liability to any person, corporation or partnership entitled to payment of latecomer fees collected by the city for the city’s failure to collect latecomer fees unless such failure was willful or intentional. (Ord. 3285 § 1, 2023).

14.28.180 Administrative fees.

The city may collect such fees as are reasonable and proportionate to the expenses incurred when administering this chapter. These fees may include, but are not necessarily limited to, application fees and administrative fees associated with the approval, collection, and disbursement of latecomer payments. (Ord. 3285 § 1, 2023).