ARTICLE 24-1
Public Improvements Cost Recovery in General
Section
24-1-1 Title
24-1-2 Purpose
24-1-3 Definitions
24-1-4 Construction of special public improvements
24-1-5 Authorization of reimbursement agreements
24-1-6 Reimbursement agreements; terms; collections, and costs
24-1-7 Reimbursement amounts payable to city
24-1-8 Notice of intention to approve special public improvements
24-1-9 Assessment Districts, Improvement Districts; general obligation bond projects; cost apportionment
24-1-1 TITLE.
This article shall be known as the Public Improvements Cost Recovery Ordinance.
(Ord. 03-853, passed 8-11-2003; Am. Ord. 04-903, passed 6-14-2004)
24-1-2 PURPOSE.
This article is intended to provide for the extension of special public improvements into undeveloped areas of the city by supporting the extension of the improvements and providing for recovery of the costs of the improvements from the owners of parcels who specifically benefit from the improvements and who are not subject to any other assessments or special charges for the benefit which they receive from the special public improvement. This article further creates a procedure whereby the party or parties who have advanced the funds for the extension of special public improvements may enter into agreements with the city to be reimbursed by the city.
(Ord. 03-853, passed 8-11-2003; Am. Ord. 04-903, passed 6-14-2004)
24-1-3 DEFINITIONS.
The following definitions shall apply unless the context clearly indicates or requires a different meaning.
BENEFITTED PARTY. The person or entity creating a demand for or otherwise utilizing special public improvements resulting in a special benefit for which the benefitted party has not specifically contributed to the costs of providing the special public improvements.
CITY. The City of Goodyear, Arizona.
COSTS. The actual cost of:
(1) Land or real property, right-of-way or easement acquisition if allowed by law and approved by the city;
(2) Construction of the special public improvements as determined by the construction contract price or by the actual costs, such construction to include, but shall not be limited to construction and installation of water pipes, lines, tanks and wells, sanitary, irrigation and storm sewer lines and systems, asphaltic and concrete paving, curb, gutter and sidewalks, street lights, traffic signals, bus bays, drainage structures, bridge structures, public park improvements and public landscaping and public facilities such as police and fire stations, all to the extent allowed by law;
(3) Inspection, testing and permit fees;
(4) Engineering and design fees required for preparation of plans and specifications;
(5) Administrative charges paid to the city by the developer or owner;
(6) Incidental fees, expenses and charges approved by the city.
DEVELOPMENT AGREEMENT. An agreement between one or more parties and the city pursuant to A.R.S. § 9-500.05.
GENERAL PUBLIC BENEFIT. That portion of the expense of the special public improvement which is deemed by the city to indirectly benefit the entire city not withstanding the fact that the special public improvement specially benefits the property subject to reimbursement.
REIMBURSEMENT AMOUNT. The charge which must be paid to the city and imposed upon the owner or developer of property which has or will receive the benefit of special public improvements benefitting their property.
SPECIAL BENEFIT. A benefit to a specific parcel of real property from a special public improvement based on criteria established by the city.
SPECIAL PUBLIC IMPROVEMENTS. Any publicly dedicated rights of way, any street, drainage, water or sewer improvements or facilities or any other improvements of facilities which are financed by bonds, general funds, private development funds, water utility funds or sewer utility funds, or a community facilities district or improvement district and for which reimbursement is requested under this article.
(Ord. 03-853, passed 8-11-2003; Am. Ord. 04-903, passed 6-14-2004)
24-1-4 CONSTRUCTION OF SPECIAL PUBLIC IMPROVEMENTS.
Prior to a permit being issued for construction of special public improvements for which a reimbursement amount is being requested, the following requirements shall be met:
(A) A map, drawing or diagram describing all property which will be benefitted by any special public improvements to be installed shall be provided to the Community Development Department and the Public Works Department.
(B) The field engineering, plans and specifications required for the special public improvement may be prepared by the party seeking reimbursement or the city. If prepared by the party seeking reimbursement they must be approved by the Director of Community Development or his/her designee. The engineering costs for preparation of plans and staking of the special public improvements only, which are incurred by the party seeking reimbursement, may be included as determined by the Director of Community Development or his/her designee in the agreed construction costs as provided in this section.
(C) For any special public improvements which are constructed, the party seeking reimbursement shall cause to be furnished and installed to city standards and specifications all facilities within the boundary of the designated area of the development.
(D) Detailed plans and specifications for special public improvements which are extensions to existing public facilities must be approved by the Director of Community Development or his/her designee prior to construction. The costs for preparation of plans and specifications, diagrams, legal descriptions and other information required to comply with this article shall be assumed by the party seeking reimbursement but are subject to reimbursement under terms of this article.
(E) The project shall be procured, financed and constructed in accordance with Arizona law, city code requirements and as determined by the city. The burden is on the initial person, whether it be an owner, developer, contractor or other, to prove costs associated with the improvements. The costs shall be formally presented to the City Council for its approval, modification or rejection. Thereafter the approved costs shall be termed "Reimbursement Amount".
(F) The city will perform inspections during the construction of the special public improvements and will charge the owner for such inspections. The costs of such inspections may be included in any repayment agreement.
(G) Upon acceptance by the city, ownership of special public improvements that meet city standards shall be vested in the city.
(Ord. 03-853, passed 8-11-2003; Am. Ord. 04-903, passed 6-14-2004; Am. Ord. 05-965, passed 9-12-2005)
24-1-5 AUTHORIZATION OF REIMBURSEMENT AGREEMENTS.
(A) In conjunction with the planning or development of any property for which a special public improvements project will be constructed, the developer or owner paying the costs of the special public improvements may request the city to enter into an agreement to collect reimbursement amounts from the developers and owners of parcels specially benefitted by the project.
(B) Upon completion of construction of special public improvements the cost of which were financed by bonds issued by the city or a community facilities district, including improvement or assessment bonds or private development funds, the city may impose upon and collect reimbursement amounts pursuant to the terms of this article.
(C) The City Council or its designee shall be authorized to enter into reimbursement agreements under this article for the purpose of reimbursing the party or parties paying the cost of the special public improvements where the costs for such special public improvements exceed the proportionate share of the parties paying for the special public improvements. The agreements shall become effective when recorded in the office of the Maricopa County Recorder.
(D) No improvements constructed pursuant to this article shall be subject to both reimbursement agreements under this article and assessments pursuant to law.
(E) Any costs advanced by the party or parties paying for special public improvements or for the general public benefit which all or part of such improvements are provided for in the city’s Capital Improvement Program ("CIP") Master Utility Service Plans and/or Impact Fee Ordinances shall be reimbursed to the party or parties paying of such improvements through Impact Fee Credits. Any portion of the cost for special public improvements or improvements which benefit the general public which is not provided for in the city’s CIP shall be reimbursed to the party or parties who incurred the cost through a reimbursement agreement with the city.
(Ord. 03-853, passed 8-11-2003; Am. Ord. 04-903, passed 6-14-2004)
24-1-6 REIMBURSEMENT AGREEMENTS; TERMS; COLLECTIONS, AND COSTS.
(A) The reimbursement agreement shall designate the parcels and persons who are entitled to reimbursement amounts and shall include a map, drawing or diagram of the properties and respective amounts from which reimbursement amounts may be collected. In the event bonds of the city, including Improvement District, or Community Facilities District or assessment bonds, have been issued to finance the construction of the special public improvements and related facilities, the city shall receive all reimbursement amounts and apply such amounts to the debt service funds of the applicable bond issue.
(B) The reimbursement agreement shall set forth the total of the reimbursement amount to be paid to the city, which shall repay such reimbursement amounts to the person or entity entitled thereto, including a community facilities district. The total of the reimbursement amounts shall not exceed that portion of the agreed construction costs of the special public improvement allotted to property outside the area of the owner. The reimbursement agreement shall terminate in 15 years from the effective date of the reimbursement agreement or when the total amount provided for by this article is repaid, whichever is earlier.
(C) The approved construction costs as described in § 24-1-4(E) will be used for calculation of all reimbursement amounts.
(D) Upon entry into a reimbursement agreement with the city, the owner shall have the right to connect into the special public improvement in consideration for entry into the reimbursement agreement.
(E) The field engineering, plans and specifications required for a special public improvement shall be prepared by the developer and approved by the Engineering Department prior to completion of construction. The engineering costs for preparation of plans and staking of the special public improvements on the property which are incurred by the owner may be included as determined by the engineering department as provided in this article. The city, or its designated representative, will perform the inspections during construction.
(F) The city shall have sole and exclusive control of connections to the special public improvement. Connections to the special public improvement may only be made upon issuance of a written permit from the Community Development Department. It shall be unlawful to make a connection to a special public improvement without a permit. The unlawful connections may be removed by the city and the costs of removal assessed to the party making connection.
(G) Upon final plat or site plan approval (at city’s option) the owners of the benefitted property shall pay 100% of the benefitted property’s share of the cost of the special public improvement to the city.
(H) An annual charge will be assessed pursuant to a procedure adopted by the city for the administration of each reimbursement agreement. This annual charge shall be the greater of $100 per year or 0.5% of the outstanding balance due under the agreement.
(I) Any owner may assign the benefits arising out of any reimbursement agreement with the city. The assignments alone shall not relieve the owner from its duties and obligations under the agreement. The assignment shall require prior written notice to the city.
(Ord. 03-853, passed 8-11-2003; Am. Ord. 04-903, passed 6-14-2004)
24-1-7 REIMBURSEMENT AMOUNTS PAYABLE TO CITY.
(A) When a special public improvement is constructed by the city or a developer or their contractors to provide service or benefit to a parcel of an owner, which owner or their predecessors in interest did not pay for any of the costs of the special public improvement, the city may impose and collect a reimbursement amount. The reimbursement amount shall be based on the benefitted parcel’s share of the benefit received as compared to the total cost of the special public improvement. The reimbursement amount shall be paid to the city prior to the issuance of final plat or site plan approval at the city’s option.
(B) It shall be unlawful for any person to extend service from a special public improvement to his or her property for which a reimbursement amount has been imposed without first paying the reimbursement amount and obtaining a permit issued by the Community Development Department.
(C) The reimbursement obligation under this section shall terminate in 15 years from the effective date of the reimbursement agreement or when the total amount provided for by this article is repaid, whichever is sooner.
(D) The city shall collect reimbursement amounts for any special public improvements provided by the developer or financed by improvement district assessment district bonds, a community facilities district, water utility funds, sewer utility funds, development fee funds and general obligation bond funds which were specifically designated as subject to reimbursement from special public improvement reimbursements.
(E) To the extent the developer advances funds to construct under this article which are for the general public benefit, the developer shall receive repayment under the provisions of this article.
(Ord. 03-853, passed 8-11-2003; Am. Ord. 04-903, passed 6-14-2004)
24-1-8 NOTICE OF INTENTION TO APPROVE SPECIAL PUBLIC IMPROVEMENTS.
(A) After the determination of the Director of Community Development or his/her designee that public health, safety and welfare requires the construction of special public improvements prior to the development of the adjacent or nearby property but for which the adjacent or nearby property will be specially benefited, a resolution of intention to approve the special public improvements shall be submitted to the City Council. The resolution shall include supporting materials which explain the methodology used for determining which property was benefited and the amount or extent of the benefit of the special public improvements to those designated benefitted properties.
(B) Prior to acting on the resolution of intention to order the special public improvements, the City Council shall hold a public hearing. The public hearing shall be for the purpose of receiving comment on whether the proposed special public improvements are required for the public health, safety, welfare and convenience. Those owners of real property within the area subject to reimbursement for special public improvements shall receive notice in writing of the public hearing and any continued public hearing not less than 30 days prior to the public hearing or continued public hearing. Any notice shall include a copy of any supporting materials which explain the methodology used by the engineering department for determining which property was benefitted and the cost or extent of the special public improvement to the benefitted property. The party requesting the agreement shall pay the cost of providing the information.
(C) After the public hearing is concluded, the City Council shall determine whether the public health, safety and welfare require the special public improvements. If the City Council so determines, then the City Council shall adopt the resolution of intention to approve the special public improvement. The determination shall include a statement that the owners of specially benefited property from the improvements shall be required to reimburse the city for the benefit received from the special public improvement.
(D) The resolution of intention to order the special public improvement shall contain:
(1) A description of the special public improvement.
(2) A description of the estimated total cost of the special public improvement.
(3) A general description of the estimated total cost and cost per frontage foot or cost per acre of the proposed special public improvement.
(4) A description of the special public improvement project area and a map and list of all owners of real property who will be receiving a special benefit from the construction of the special public improvement.
(5) A determination of that portion of the special public improvement which is for general obligation bonds, special assessments or improvement which is for general public benefit and that portion which is for special benefit of the owners.
(6) A preliminary estimate of the portion of the special public improvement which will be financed with general obligation bonds, special assessments, a community facilities district, or improvement district assessments and the portion which will be financed with reimbursements for special public improvements.
(E) The City Council’s decision on necessity for special public improvements shall be final and conclusive.
(Ord. 03-853, passed 8-11-2003; Am. Ord. 04-903, passed 6-14-2004; Am. Ord. 05-965, passed 9-12-2005)
24-1-9 ASSESSMENT DISTRICTS, IMPROVEMENT DISTRICTS; GENERAL OBLIGATION BOND PROJECTS; COST APPORTIONMENT.
(A) Upon collection of reimbursement amounts pursuant to any special public improvement which is located in a municipal district and financed by assessments, including a community facilities district, such funds shall be deposited with the finance director. The funds shall be applied against the outstanding indebtedness for which bonds are to be or have been issued.
(B) Reimbursements for special improvements may be used in combination with any bond issue, permitted by law, provided that the bond issue question submitted to the qualified electors indicates that such reimbursements may be required of benefitted property owners. All amounts collected from the reimbursements shall be deposited in the appropriate bond fund from which the special public improvement project is financed.
(Ord. 03-853, passed 8-11-2003; Am. Ord. 04-903, passed 6-14-2004)