Chapter 13.32
REIMBURSEMENT AGREEMENTS FOR UTILITY IMPROVEMENTS
Sections:
13.32.010 Purpose.
13.32.020 Definitions.
13.32.030 Minimum project size.
13.32.040 Application.
13.32.050 City mayor's determination – Review by city council.
13.32.060 Determination of reimbursement area boundary and preliminary reimbursement fee.
13.32.070 Interest – When authorized – Accrual.
13.32.080 Preliminary approval by city council.
13.32.090 Construction project – Acceptance by city.
13.32.100 Final approval by city council.
13.32.110 Written agreement – Term of agreement – Recording.
13.32.120 Collection of reimbursement fees – No liability for failure to collect.
13.32.130 Disposition of undeliverable reimbursement fees.
13.32.010 Purpose.
The purpose of the chapter is to prescribe rules and regulations for exercise of the authority to enter into utility reimbursement agreements granted to the city by Chapter 35.91 RCW. (Ord. 504 § 1, 1995).
13.32.020 Definitions.
As used in this chapter, the terms listed below shall be defined as follows:
(1) “City mayor” shall mean the city mayor of the city of Kittitas or his or her designated representative.
(2) “Cost of construction” shall mean those costs incurred for design, acquisition of right-of-way and/or easement, construction, materials and installation required in order to create an improvement which complies with city standards. In the event of a disagreement between the city and the applicant concerning the cost of the improvement, the city mayor's determination shall be final.
(3) “Reimbursement agreement” means a written contract between the city and one or more property owners providing for construction of “water or sewer facilities” and for partial reimbursement to the party causing such improvements to be made of a portion of the costs of such improvements by owners of property benefited by the improvements, as more specifically described in Chapter 35.91 RCW.
(4) “Water or sewer facilities” shall have the meaning specified in RCW 35.91.020 as it now reads, or as hereafter mentioned. (Ord. 504 § 1, 1995).
13.32.030 Minimum project size.
In order to be eligible for a reimbursement agreement, the estimated cost of the proposed improvement must not be less than $3,500. (Ord. 504 § 1, 1995).
13.32.040 Application.
An application for reimbursement agreement shall be submitted to the city at least 90 days prior to planned construction of the sewer or water facilities. The application for reimbursement agreement shall be on a form provided by the city. The application fee for a reimbursement agreement shall be $500.00 nonrefundable which shall be submitted to the city with the written application and shall be accompanied by:
(1) Preliminary utility design drawings showing the location and design of the water or sewer facilities;
(2) Itemized statement of estimated construction costs prepared, signed and sealed by a licensed civil engineer or in the form of a bid submitted by a qualified contractor (if more than one bid has been obtained, all bids must be submitted to the city);
(3) Such other information as the city mayor or his or her designee determines is necessary to properly review the application. (Ord. 504 § 1, 1995).
13.32.050 City mayor's determination – Review by city council.
The city mayor reviews all applications and shall make recommendation that preliminary approval be granted by the city council, only if the following requirements are met:
(1) The project satisfies the minimum size requirements set forth in KMC 13.32.030; and
(2) The proposed improvements fall within the description of “water or sewer facilities” as those terms are described and defined in Chapter 35.91 RCW;
(3) The application submitted is complete and the application fee has been paid;
(4) The proposed reimbursement agreement is in the best interest of the city and its residents;
(5) The applicant seeking the reimbursement agreement is the proper party to receive such reimbursement;
(6) The person seeking a reimbursement agreement agrees, in writing, to convey, dedicate and deliver the completed water or sewer facilities to the city upon final completion of construction, subject to city inspection, approval and final acceptance; and the person seeking the reimbursement agreement agrees, in writing, to acquire, dedicate and convey to the city all easements and rights-of-way appurtenant to said water or sewer facilities deemed necessary and appropriate by the city, which conveyance, dedication and delivery to the city shall be in writing by deed or other written instrument deemed appropriate by the city; and the person seeking the reimbursement agreement agrees, in writing, to provide “as built” record drawings satisfactory to the city of the completed water to sewer facilities.
In the event any of the above criteria are not satisfied, the city mayor may condition the recommendation to the city council as necessary in order for the application to conform to such criteria, or shall deny the application. In the event an application is denied, the applicant may obtain a review of the final determination by filing a request therefor with the city clerk no later than 10 days after mailing a copy of the final determination to the applicant at the address listed on the application. In reviewing any final determination of the city mayor denying the application, the city council shall apply the criteria set forth above, and the applicant clearly demonstrates that the criteria had been satisfied. (Ord. 504 § 1, 1995).
13.32.060 Determination of reimbursement area boundary and preliminary reimbursement fee.
In the case of all applications which are recommended by the city mayor for a preliminary approval by the city council, the city mayor shall define the reimbursement area based upon a determination of which parcels did not contribute to the original cost of the water or sewer facility for which the reimbursement agreement applies, and which may subsequently tap into or use the same, including not only those which may connect directly thereto, but also those who may connect to laterals or branches connecting thereto. An estimated amount of the reimbursement fee shall be established so that each party will pay a share of the cost of the improvements, which is proportional to the benefits which accrue to the property. In determining the proportional share, the city may use any method deemed appropriate including, but not limited to, the front footage of the property or the square footage of the property. (Ord. 504 § 1, 1995).
13.32.070 Interest – When authorized – Accrual.
(1) Interest charges may be included in a reimbursement agreement, subject to city council approval, if the city mayor finds the following criteria are satisfied:
(a) The person seeking a reimbursement agreement has submitted an application requesting inclusion of interest in the reimbursement agreement; and
(b) The person seeking a reimbursement agreement has incurred interest charges in financing the cost of construction of the water or sewer facilities, which interest charges shall not be recouped by the developer in the sale of the development and/or properties benefited by installation of the water or sewer facilities; and
(c) The inclusion of interest charges in the reimbursement agreement is otherwise fair and equitable.
(2) The city mayor shall review all requests for inclusion of interest charges and shall make recommendations that preliminary approval be granted by the city council in accordance with the procedures in KMC 13.32.050, if the requirements of subsection (1) of this section are met.
In the event the city mayor determines the requirements of subsection (1) of this section are not met, the city mayor may condition the recommendation to the city council as necessary in order for the application to conform to such criteria, or shall deny the request for inclusion of interest charges. In the event the request for inclusion of interest charges is denied, the applicant may obtain review of the final determination by filing a request therefor with the city clerk no later than 10 days after mailing a copy of the final determination to the applicant at the address listed on the application. The city council shall review the city mayor's determination in accordance with the provisions of KMC 13.32.050 and/or 13.32.080 as applicable.
(3) If the inclusion of interest charges is approved by the city council pursuant to KMC 13.32.080, such changes shall be deemed included in the proportionate reimbursement fee to be borne by each property within the reimbursement area boundary.
(4) The interest rate to be included within any reimbursement agreement shall be six percent per annum; provided, that interest shall not begin to accrue until two years after the date the reimbursement agreement is executed pursuant to KMC 13.32.110.
(5) Accrued interest shall not exceed 50 percent of the proportionate share of construction costs borne by each property within the reimbursement area boundary. (Ord. 504 § 1, 1995).
13.32.080 Preliminary approval by city council.
(1) Upon recommendation of approval of the application, determination of the estimated costs of construction, request for inclusion of interest charges, the reimbursement area and fees by the city mayor, the application and supporting documentation shall be submitted to the city council for preliminary approval. The city council shall thereupon set at least one public hearing to determine whether or not the preliminary approval should be granted, and shall cause appropriate notice of the public hearing to be published, and shall cause written notification by letter to be sent to each property owner within the reimbursement boundary area proposed to pay a share of the costs of the improvements.
(2) After public hearing, and after consideration of the application, supporting documentation, city mayor's recommendation, and testimony presented at the public hearing, the council shall grant preliminary approval for a reimbursement agreement, deny the application for reimbursement agreement, or condition or modify preliminary approval as the city council determines appropriate. The city council may set further public hearing or hearings as it deems necessary or appropriate prior to making a determination regarding the application.
(3) If preliminary approval is granted, such preliminary approval shall constitute, subject to any modification or condition imposed by the city council:
(a) Acceptance and approval of the application for reimbursement agreement;
(b) Approval for the reimbursement area boundary;
(c) Approval of the proportionate share of construction costs to be borne by each property within the reimbursement area boundary, expressed as a percentage of the final construction costs;
(d) Approval of inclusion of interest charges, if granted by the city council. (Ord. 504 § 1, 1995).
13.32.090 Construction project – Acceptance by city.
(1) Upon final completion of construction of the water or sewer facility, the person seeking a reimbursement agreement shall convey, dedicate and deliver the completed water or sewer facility to the city, subject to city inspection, approval and final acceptance. The person seeking the reimbursement agreement shall also acquire, dedicate and convey to the city all easements and rights-of-way appurtenant to said water or sewer facilities deemed necessary and appropriate by the city, which conveyance, dedication and delivery shall be in writing by deed or other written instrument deemed appropriate by the city. The person seeking a reimbursement agreement shall also provide to the city “as built” record drawings satisfactory to the city of the completed water or sewer facilities.
(2) Upon final completion of recommendation by the city mayor for final approval, the person seeking the reimbursement agreement shall submit an itemized statement of actual construction costs prepared, signed and sealed by a licensed civil engineer, or by affidavit of the applicant. The city mayor shall forward the itemized statement of actual construction costs to the city council with the recommendation for final approval and execution of a reimbursement agreement. The city mayor shall also submit to the city council a designation of actual amounts of the reimbursement fee to be assigned to each property within the reimbursement area boundary, so that each property will pay a share of the costs of the improvements which is proportional to the benefits which accrue to the property. (Ord. 504 § 1, 1995).
13.32.100 Final approval by city council.
(1) Upon receipt of the city mayor's recommendation for final approval of a reimbursement agreement, together with supporting documentation and assignment of proportional reimbursement fees to the subject properties within the reimbursement area boundary, the city council shall approve and authorize a written reimbursement agreement, subject to such conditions deemed necessary or appropriate by the city council.
(2) In the event that costs incurred by the city for engineering or other professional consultant services required in processing the application the city mayor shall so advise the city council and council approval shall be conditioned upon receipt of payment by the applicant of any additional amount sufficient to compensate the city for its costs in excess of the application fee.
(3) Failure of the person seeking a reimbursement agreement to convey the completed water or sewer facilities to the city, together with necessary easements and rights-of-way thereto, the itemized list of actual construction cost, the “as built” record drawings of the completed project, and any other required documentation within 60 days of the date of final completion of the water or sewer project, shall be grounds for denial of a reimbursement agreement. (Ord. 504 § 1, 1995).
13.32.110 Written agreement – Term of agreement – Recording.
(1) Upon final approval of reimbursements and upon payment of all outstanding fees to the city, the applicant shall sign a reimbursement agreement in the form supplied by the city, and the city council shall authorize the mayor to sign the reimbursement agreement on behalf of the city.
(2) No reimbursement agreement shall provide for reimbursement for a period longer than 15 years from the date of final acceptance of the improvement by the city.
(3) In order to become effective a reimbursement agreement must be recorded with the office of the Kittitas County auditor. It shall be the sole responsibility of the beneficiary of the reimbursement agreement to record said agreement, and to provide verification satisfactory to the city that said agreement has been duly recorded. A copy of the executed and recorded reimbursement agreement shall be kept on file by the city clerk and available for public inspection. (Ord. 504 § 1, 1995).
13.32.120 Collection of reimbursement fees – No liability for failure to collect.
(1) After the recording of a reimbursement agreement, the city shall not permit connection of any property within the reimbursement area to any water or sewer facility constructed pursuant to the reimbursement agreement, unless the share of the costs of such facilities required by the recorded agreement is first paid to the city.
(2) Upon receipt of any reimbursement fees, the city shall deduct a five percent administrative fee and remit the balance of the reimbursement fees to the party entitled to the fees pursuant to the agreement; provided, that the total administrative fee collected by the city shall not exceed $500.00 for any water and/or sewer facility subject to a particular reimbursement agreement. In the event that through error the city fails to collect a required reimbursement fee prior to approval of connection to a sewer or water facility, the city shall make diligent efforts to collect such fee, but the city shall under no circumstances be obligated to make payment to the party entitled to the reimbursement, or in any other way be liable to such party, unless such reimbursement fee has actually been paid to the city. (Ord. 504 § 1, 1995).
13.32.130 Disposition of undeliverable reimbursement fees.
In the event that, after reasonable effort, the party of which the reimbursement fees are to be paid pursuant to a reimbursement agreement cannot be located, and upon the expiration of 180 days from the date the fees were collected by the city, the fees shall be subject to disposition pursuant to applicable unclaimed property laws of the state of Washington. (Ord. 504 § 1, 1995).