Chapter 2.50
REIMBURSEMENT AGREEMENTS

Sections:

2.50.010    Purpose – Scope.

2.50.020    Short title.

2.50.030    Chapter not exclusive.

2.50.040    Definitions.

Article I. Assessment District Procedure

2.50.100    Application.

2.50.110    District Engineer’s determination.

2.50.120    Engineer’s report.

2.50.130    Resolution of intention.

2.50.140    Exclusions.

2.50.150    Notice of hearing.

2.50.160    Protests.

2.50.170    Ballots.

2.50.180    Hearing and tabulation of ballots.

2.50.190    Modifications.

2.50.200    Majority protest.

2.50.210    Applicant’s determination to terminate.

2.50.220    Final determination.

2.50.230    Recordation of notice.

Article II. Reimbursement Agreements

2.50.300    Minimum provisions.

2.50.310    Maximum term.

2.50.320    Administration charge.

2.50.330    Reimbursement charge account.

2.50.340    Prepayment.

2.50.350    Limitation.

2.50.360    Recordation of agreement.

2.50.370    Construction – Acquisition.

2.50.380    Standards.

2.50.390    Actual costs – Modification of reimbursement charge.

2.50.400    Supplemental proceedings.

2.50.410    Ownership of improvements.

2.50.010 Purpose – Scope.

The purpose of this chapter is to provide a procedure by which supplemental size, capacity, numbers, length or configuration of public improvements may be constructed at the original cost of an owner of property specially benefitted by the improvements exclusive of the supplemental portion of the improvements, and the owner may be reimbursed by charges paid by the owners of other properties, based upon the special benefits the supplemental portion of the improvements confers upon those other properties. [Ord. 264, 1995; Ord. 273, 1997; Ord. 327, 2010.]

2.50.020 Short title.

This chapter may be cited and referred to as the “Dublin San Ramon Services District reimbursement agreement ordinance.” [Ord. 264, 1995; Ord. 273, 1997; Ord. 327, 2010.]

2.50.030 Chapter not exclusive.

This chapter does not provide an exclusive procedure for the construction of public improvements, but any proceedings brought under another act or general law may provide that such proceedings be supplemented by any part of this chapter. [Ord. 264, 1995; Ord. 273, 1997; Ord. 327, 2010.]

2.50.040 Definitions.

In this chapter, the following definitions apply:

    “Acquire” or “acquisition” means the acceptance by the District of improvements which are authorized to be made, constructed or acquired under this chapter and which are in existence and installed in place (irrespective of whether or not the improvements are in actual use or operation) on or before the date of adoption of a resolution of intention for the acquisition.

    “Benefit area” means the area comprising all lands specially benefitted by the improvements, or any portion thereof, acquired or constructed under this chapter, with respect to which a reimbursement agreement has been entered into.

    “Benefitted property” means those parcels of real property receiving a special benefit from an improvement, or any portion thereof, acquired or constructed under this chapter with respect to which a reimbursement agreement has been entered into.

    “CCI” means the Construction Cost Index (CCI) for San Francisco published in the Engineering News-Record (McGraw-Hill, Inc., publisher) for the last week of December of each year during which reimbursement charges under a reimbursement agreement are outstanding, which index shall be used for adjusting the reimbursement charges as provided in this chapter. If the index is no longer published, the General Manager shall select an index most nearly conforming.

    “Costs of the improvements” means the cost of acquisition or construction of the improvements (including labor and materials), together with all incidental costs, including, but not limited to, costs incurred by the District in processing the application for the reimbursement agreement, costs of environmental review and preparation of documents under the California Environmental Quality Act (Public Resources Code Section 21000 et seq.), planning, engineering and legal costs incurred by or on behalf of the District, costs of preparing or reviewing legal descriptions of parcels of property, providing estimates of construction, surveys, preparing documents (including the reimbursement agreement, plans, specifications and other contract documents for acquisition or construction of the improvements), printing and reproduction costs, costs of title searches, appraisal fees, property acquisition costs, costs of relocating or altering any public utility facilities required by acquisition or construction of the improvements, costs of mailing and posting of notices and ballots, costs of tabulating ballots, costs of recordation, and any and all other costs incurred by or for the District and by or for the applicant who enters into a reimbursement agreement, which costs are necessary or incidental to carrying out proceedings under this chapter.

    “Excess costs” means the capital costs of the supplemental improvements, which excess costs shall be charged against the benefitted properties, excluding the applicant’s parcel(s) of property.

    “Improvements” means any major infrastructure improvement acquired or constructed under this chapter which is to be dedicated to public use and/or conveyed to the District, including, without limitation, a public utility facility which the District is empowered by law to own, operate or maintain.

    “Owner,” for purposes of this chapter only, means the owner of record, as shown on the last equalized assessment roll of the county, or as the owner is otherwise known to the District, which may include the owner as defined in DSRSDC 1.20.080, Definitions.

    “Reimbursement agreement” means the agreement entered into with an owner of property under this chapter.

    “Reimbursement charge” means that charge in the nature of a proposed assessment imposed pursuant to Proposition 218, imposed under a reimbursement agreement, which is imposed as a condition of issuance of a construction permit or any other entitlement to connect to, gain access to, or use an improvement acquired or constructed pursuant to a reimbursement agreement, including annual adjustments corresponding to the percentage of change of the CCI, times the factor of 1.15 to provide reimbursement to the District for costs incurred in administering the reimbursement charge.

    “Special benefit” means a particular and distinct benefit over and above general benefits conferred on parcels of real property located in the District or to the public at large. General enhancement of property value does not constitute a “special benefit.”

    “Supplemental improvements” means that portion of the improvements which exceed the size, capacity, number, length or configuration of those improvements determined by the District to be necessary to serve the property owned by the applicant, the cost of which shall be reimbursable to the applicant solely through the collection and payment of reimbursement charges. [Ord. 264, 1995; Ord. 273, 1997; Ord. 327, 2010.]

Article I. Assessment District Procedure

2.50.100 Application.

An applicant who is required by the District to provide improvements for dedication to public use which include supplemental size, capacity, numbers, length or configuration which specially benefit parcels of property not owned by the applicant may apply for a reimbursement agreement. Under the reimbursement agreement, the improvements shall be acquired or constructed, and the excess costs shall be reimbursed to the applicant, solely from the reimbursement charges collected by the District from owners of properties within the areas specially benefitted by the supplemental improvements provided by the applicant. An application shall be made in the form and manner prescribed by the General Manager. [Ord. 264, 1995; Ord. 273, 1997; Ord. 327, 2010.]

2.50.110 District Engineer’s determination.

Upon receipt of an application, the District Engineer shall determine whether the improvements proposed to be acquired from, or constructed by, the applicant require supplemental size, capacity, number, length or configuration for the benefit of parcels of property not owned by the applicant. If the District Engineer does determine that such improvements do or shall contain such supplemental size, capacity, number, length, or configuration, the District Engineer shall further determine whether the estimated costs of the improvements, including such supplemental size, capacity, number, length or configuration, equal or exceed $100,000. If the District Engineer determines that the costs do not exceed that amount, the District Engineer shall reject the application, and proceedings under this chapter shall terminate. If the District Engineer determines that the estimated costs of the improvements equal or exceed $100,000, the District Engineer shall prepare the detailed engineer’s report described in DSRSDC 2.50.120, Engineer’s report. The applicant shall first deposit with the District the estimated costs (as determined by the District Engineer) of preparing the detailed engineer’s report and conducting all proceedings through and including the adoption of the resolution described in DSRSDC 2.50.220, Final determination, which costs shall be nonrefundable by the District, but which shall be included in the costs of the improvements. [Ord. 264, 1995; Ord. 273, 1997; Ord. 327, 2010.]

2.50.120 Engineer’s report.

Upon making the determination that the estimated costs of the improvements, including the supplemental improvements, equal or exceed the amount specified in DSRSDC 2.50.110, District Engineer’s determination, the District Engineer shall prepare a detailed engineer’s report to the Board which shall include the following:

A.    The estimated costs of the improvements, including the supplemental improvements;

B.    A description of each parcel of benefitted property by legal description, assessor’s parcel number, or other description sufficient to identify the same;

C.    The name and address of the owner of each parcel of benefitted property, and the assessed valuation of each parcel of benefitted property, each determined with reference to the most recent equalized assessment roll prepared by the county assessor, or as otherwise determined by the District Engineer;

D.    A general description of the improvements and the portion thereof constituting the supplemental improvements;

E.    A description of the benefit area, which may be in the form of a plat or map;

F.    The formula or other basis upon which the amount of the reimbursement charge is calculated, which shall include reference to annual adjustments corresponding to the percentage of change of the CCI, and which shall be multiplied by the factor of 1.15 to compensate the District for administering the reimbursement charge;

G.    The duration of the payments;

H.    The estimated excess costs of the supplemental improvements;

I.    The estimated reimbursement charge for each parcel of benefitted property, which shall comprise the amount chargeable to each such parcel of property based upon proportionate special benefit derived by each such parcel of property in relationship to the entirety of the excess cost, subject to annual adjustments corresponding to the percentage of change of the CCI, which charge shall be multiplied by the factor of 1.15;

J.    Such other information as may be necessary or useful in applying the formula adopted by the Board for the calculation of reimbursement charges, and/or such other information as the District Engineer deems relevant or appropriate regarding the application for a reimbursement agreement.

The District Engineer shall complete the report within 30 days after making the determination described in DSRSDC 2.50.110, District Engineer’s determination. That time may be extended by the District Engineer as the District Engineer deems necessary to obtain additional information from the applicant in order to make the application complete, or otherwise to obtain data, descriptions, or other information not maintained in District records. Upon completion of the report, the District Engineer shall submit the report to the General Manager, who shall place the matter of consideration of the report and of adoption of a resolution of intention to enter into a reimbursement agreement on the agenda of the Board within 30 days of receipt of the report. [Ord. 264, 1995; Ord. 273, 1997; Ord. 327, 2010.]

2.50.130 Resolution of intention.

Upon consideration of the Engineer’s report, the Board may determine preliminarily to grant the application for a reimbursement agreement by adopting a resolution of intention to acquire or construct the improvements under this chapter and to establish a reimbursement charge which will be collected from the owners of the parcel of benefitted property whenever the owners apply for a construction permit or allocation of water and/or sewer capacity rights, or other entitlement to connect to, obtain access to, or use the improvements. The resolution of intention shall include:

A.    A statement of the formula or other basis upon which the amount of the reimbursement charge is proposed to be calculated and imposed throughout the benefit area;

B.    The time, date and place for hearing by the Board of any and all protests to the granting of the application for a reimbursement agreement;

C.    The inclusion or exclusion of parcels of property within the proposed benefit area;

D.    The costs of the improvements;

E.    The excess costs;

F.    The amount of the proposed reimbursement charge with respect to each parcel of benefitted property;

G.    The formula upon which the proposed reimbursement charge is based; and

H.    The amount or extent of the supplemental size, capacity, number, length or configuration of the improvements with respect to which a reimbursement charge is proposed to be collected. [Ord. 264, 1995; Ord. 273, 1997; Ord. 327, 2010.]

2.50.140 Exclusions.

Only special benefits are assessable, and the District shall separate the general benefits from the special benefits conferred on a parcel. No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.

Parcels within the District that are owned or used by any agency, the state of California or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. However, the Board may provide for a contribution to payment of the costs of the improvements in proportion to the benefit to be derived by any District-owned parcel from such improvements. If a lot or parcel of land belonging to the United States, or to the state of California, or to any county, city, district (including this District) or other public agency, which lot or parcel is used for performance of any public function, is included within a benefit area, the Board may, in its resolution of intention, declare that such a lot or parcel shall be omitted from the benefit area and not be subject to a reimbursement charge if it finds, based on clear and convincing evidence, that such lot or parcel in fact receives no special benefit. Nothing in this section shall be construed to require that an assessment be imposed on parcels of property owned by the United States if to do so would be contrary to the Supremacy Clause of the United States Constitution.

The District Engineer, in his or her report prepared under DSRSDC 2.50.120, Engineer’s report, or the Board, may exclude one or more parcels of property from a benefit area, and exempt the owner thereof from the payment of a reimbursement charge, upon finding that the parcel or parcels of property is or are adequately served by existing public improvements which provide substantially the same benefit to the parcel of property as those proposed to be provided under a reimbursement agreement and would therefore receive only a general benefit, if that, from the supplemental improvements. Such parcel(s) of property may continue to be served by such existing improvements, or the owner may be permitted to connect the parcel(s) of property to, obtain access to, or use the improvements acquired or constructed under this chapter without cost or charge, as the District Engineer or Board may determine. [Ord. 264, 1995; Ord. 273, 1997; Ord. 327, 2010.]

2.50.150 Notice of hearing.

The General Manager shall cause notice of the hearing upon the reimbursement charge to be given not less than 45 days before the hearing, by: (A) mailing, postage prepaid, to the owners of each parcel of specially benefitted property within the proposed benefit area; and (B) posting along all open streets in the benefit area (if any), not more than 1,000 feet in distance apart, but not less than three in all, notices of the hearing. Each mailed notice shall contain a ballot which includes the District’s address for receipt of the ballot once completed by any owner receiving the notice whereby the owner may indicate his or her name, reasonable identification of the parcel, and his or her support or opposition to the proposed assessment.

Each notice shall advise that the Board will be considering the imposition of reimbursement charges, the total amount of excess costs chargeable to the benefitted area, the amount chargeable to the owner’s particular parcel, the duration of the payments, the reason for the assessment and the formula or other basis upon which the amount of the proposed assessment was calculated, together with the date, time, and location of a public hearing on the proposed assessment. Each notice shall also include, in a conspicuous place thereon, a summary of the procedures applicable to the completion, return, and tabulation of the ballots required pursuant to the preceding paragraph of this section, including a disclosure statement that the existence of a majority protest, as defined in DSRSDC 2.50.200, Majority protest, will result in the reimbursement charge not being imposed. [Ord. 264, 1995; Ord. 270, 1996; Ord. 273, 1997; Ord. 327, 2010.]

2.50.160 Protests.

At any time not later than the hour set for hearing protests, an owner of a parcel of benefitted property liable to be charged a reimbursement charge may make an oral or written protest against the imposition of the reimbursement charges, the inclusion or exclusion of parcels of property within the benefit area, the costs of the improvements, the excess costs, the amount of the proposed reimbursement charge, the formula or other basis upon which the amount of the proposed reimbursement charge is based, and the amount or extent of the supplemental size, capacity, number, length, or configuration of the proposed improvements with respect to which a reimbursement charge is proposed to be collected.

The protest, if submitted in writing, or the protestant, if the protest is submitted orally at the hearing, must describe the parcel of property in which the person or persons making the protest is interested (sufficient to identify the parcel of property), and if the person making the protest is not shown as owner of the parcel of property on the last equalized assessment roll or as otherwise known to the District, the protestant must present evidence satisfactory to the District that the person is the owner of the parcel of property. Each protest must state the grounds for the protest. [Ord. 264, 1995; Ord. 273, 1997; Ord. 327, 2010.]

2.50.170 Ballots.

The ballot that accompanies the notice pursuant to DSRSDC 2.50.150, Notice of hearing, shall be in a form that conceals its contents once it is sealed by the person submitting the ballot. Each ballot shall be signed and either mailed or otherwise delivered to the address indicated on the ballot. Regardless of the method of delivery, all ballots shall be received at the address indicated, or the site of the public testimony, in order to be included in the tabulation of a majority protest pursuant to DSRSDC 2.50.200, Majority protest. Ballots shall remain sealed until the tabulation of ballots pursuant to DSRSDC 2.50.180, Hearing and tabulation of ballots, commences; provided, that a ballot may be submitted, changed, or withdrawn by the person who submitted the ballot as described in DSRSDC 2.50.180, Hearing and tabulation of ballots.

Ballots not submitted within the time and in the manner provided above shall be deemed to be waived voluntarily. No form of protest other than the submission of a written ballot pursuant to this section will affect the determination of whether a majority protest, as defined in DSRSDC 2.50.200, Majority protest, exists. [Ord. 264, 1995; Ord. 273, 1997; Ord. 327, 2010.]

2.50.180 Hearing and tabulation of ballots.

At the time and date set for hearing on protests, the Board shall, at the place stated in the notice, proceed to conduct a public hearing and consider all objections or oral protests made as required by DSRSDC 2.50.160, Protests, and consider any written protests so made, if any. At the public hearing, any interested person shall be permitted to present written or oral testimony.

Prior to the conclusion of the public testimony on the proposed assessment at the hearing, a ballot may be submitted, changed, or withdrawn by the person who submitted the ballot. The Board may continue or adjourn the hearing from time to time.

At the conclusion of the public hearing conducted pursuant to this section, an impartial person designated by the District, who does not have a vested interest in the outcome of the proposed assessment, shall tabulate all ballots submitted, and not withdrawn, in support of or opposition to the proposed assessment.

In tabulating the ballots, each ballot shall be weighted according to the proportional financial obligation of the parcel of benefitted property. In the event that more than one of the record owners of an identified parcel submits an assessment ballot, the amount of the proposed assessment to be imposed upon the identified parcel shall be allocated to each ballot submitted in proportion to the respective record ownership interests or, if the ownership interests are not shown on the record, as established to the satisfaction of the District by documentation provided by those record owners.

During and after the tabulation, the assessment ballots shall be treated as disclosable public records, as defined in California Government Code Section 6252, and equally available for inspection by the proponents and the opponents of the proposed assessment. [Ord. 264, 1995; Ord. 273, 1997; Ord. 327, 2010.]

2.50.190 Modifications.

At the hearing, the Board may, on its own motion or in response to any protest, direct the District Engineer to make a modification in the formula or other basis upon which the reimbursement charge is based, the excess costs, the amount of the reimbursement charge, the apportionment of the costs of the improvements between the supplemental improvements and the improvements necessary to serve the applicant’s property, and the extent or boundaries of the benefit area, including the inclusion or exclusion of parcels of property within the area. The District shall then give a new notice of hearing pursuant to DSRSDC 2.50.150, Notice of hearing, and shall follow the procedures described in DSRSDC 2.50.160, Protests, and following. [Ord. 264, 1995; Ord. 273, 1997; Ord. 327, 2010.]

2.50.200 Majority protest.

Pursuant to Proposition 218, a majority protest exists if, upon the conclusion of the hearing, ballots submitted, and not withdrawn, in opposition to the assessment exceed the ballots submitted, and not withdrawn, in favor of the assessment.

Thus, if the Board finds that the written ballots in opposition to the imposition of the reimbursement charge have been submitted by the owners of the parcels of properties that would bear more than 50 percent of the proportional financial obligation of all of the properties in the proposed benefit area, the Board shall terminate proceedings, and the District shall not impose, extend, or increase the reimbursement charge. In the event of such termination, all costs incurred by the District in conducting the proceedings to the date of termination shall be borne solely by the applicant. No further, or reinstituted, proceedings for the imposition of the same, or substantially the same, reimbursement charge shall be taken under this chapter for a period of six months after the termination. [Ord. 264, 1995; Ord. 273, 1997; Ord. 327, 2010.]

2.50.210 Applicant’s determination to terminate.

At or before the hearing, any continued or subsequent hearing, the applicant may determine, by submitting a request in writing, to terminate proceedings. Such written request shall be filed with the General Manager. The General Manager shall endorse thereon the date of its receipt, and shall report the request to the Board. If the applicant requests to terminate proceedings, no further proceedings shall be taken for a period of six months from the date the election was filed with the General Manager. In the event of such termination, all costs incurred by the District in conducting the proceedings to the date of termination shall be borne solely by the applicant. [Ord. 264, 1995; Ord. 273, 1997; Ord. 327, 2010.]

2.50.220 Final determination.

Upon completion of the hearing, and if the proceedings have not been terminated, the Board may adopt a resolution approving the application for the reimbursement agreement, determining the benefit area, approving the formula or other basis for the apportionment of benefits, determining the excess costs, specifying the reimbursement charge, and approving and authorizing execution of the reimbursement agreement. [Ord. 264, 1995; Ord. 273, 1997; Ord. 327, 2010.]

2.50.230 Recordation of notice.

The General Manager shall cause a copy of the resolution adopted by the Board as provided in DSRSDC 2.50.220, Final determination, with a description of the parcels of property within the benefit area appended to it, to be submitted to the county recorder, for the county or counties in which the benefit area is located, for recordation in the official records of the county. In addition, the General Manager shall cause a notice of assessment to be furnished to any individual requesting the notice or any owner of a parcel of property subject to a reimbursement charge levied by the local agency within five working days of receiving a request for such notice. The District shall charge a reasonable fee for this service, the amount of which shall be set by separate ordinance or resolution of the Board of Directors. The notice shall substantially comply with the provisions of subdivision (c) of California Government Code Section 53754, or such other statute that may replace Section 53754 or subdivision (c) thereof. [Ord. 264, 1995; Ord. 273, 1997; Ord. 327, 2010.]

Article II. Reimbursement Agreements

2.50.300 Minimum provisions.

A reimbursement agreement entered into under this article shall include, but not be limited to, provisions relating to acquisition or construction of the improvements, payment of all District fees and costs, indemnification of the District, the term of the agreement, collection and payment of the reimbursement charge, and such other provisions as the Board deems appropriate. Each agreement is subject to approval as to form by counsel for the District. [Ord. 264, 1995; Ord. 273, 1997; Ord. 327, 2010.]

2.50.310 Maximum term.

The maximum term of a reimbursement agreement is 20 years. Notwithstanding the foregoing, any such agreement may provide that the term may be extended once for a specified period, not to exceed 10 years, if at the expiration of the initial term more than 25 percent of the excess costs remain outstanding as uncollected reimbursement charges. However, the initial term of such agreement shall not be so extended if the outstanding excess costs do not exceed the minimum amount of costs of the improvements specified in DSRSDC 2.50.110, District Engineer’s determination. [Ord. 264, 1995; Ord. 273, 1997; Ord. 327, 2010.]

2.50.320 Administration charge.

Upon collecting a reimbursement charge, the District shall deduct and retain an amount sufficient to reimburse the District for its costs, including, without limitation, personnel costs (hours worked times then-current billing rates) and any other costs incurred (e.g., services contracted for by the District, costs of mailing, etc.) in collecting and paying the charge over to the applicant. [Ord. 264, 1995; Ord. 273, 1997; Ord. 327, 2010.]

2.50.330 Reimbursement charge account.

The General Manager shall provide for the accounting of the collection and payment of reimbursement charges. Nothing in this chapter requires the District to segregate reimbursement charges collected by the District from general funds of the District or to maintain special funds or accounts for such charges. [Ord. 264, 1995; Ord. 273, 1997; Ord. 327, 2010.]

2.50.340 Prepayment.

The owner of a parcel of benefitted property may pay the reimbursement charge against the parcel of property at any time during the term of the reimbursement agreement under which the charge is made, and before, but not after, issuance of a construction permit or any other entitlement to connect to, gain access to, or use the improvements acquired or constructed under the agreement. [Ord. 264, 1995; Ord. 273, 1997; Ord. 327, 2010.]

2.50.350 Limitation.

By entering into a reimbursement agreement, the District shall not be deemed an insurer or guarantor for the collection or payment to the applicant of any reimbursement charge or otherwise guarantee the collection and payment over to the applicant of any reimbursement charge. [Ord. 264, 1995; Ord. 273, 1997; Ord. 327, 2010.]

2.50.360 Recordation of agreement.

The General Manager shall cause a copy of each reimbursement agreement, or a memorandum thereof, including the descriptions of the benefitted properties affected, to be submitted to the county recorder for the county in which the benefitted properties are located, for recordation in the official records of the county. [Ord. 264, 1995; Ord. 273, 1997; Ord. 327, 2010.]

2.50.370 Construction – Acquisition.

Improvements to be constructed under the reimbursement agreement may be constructed by the District or by the applicant, as the Board determines. If the improvements are to be constructed by the District, the improvements shall be constructed under contract awarded to the lowest responsive bid from a responsible bidder after advertisement for bids in accordance with the District’s procedures governing the construction of District projects.

If the improvements are to be constructed by the applicant, the applicant shall solicit no fewer than three competitive bids for the construction of the improvements and shall award the contract to the lowest responsive bid from a responsible bidder. However, if the applicant is licensed by the state to conduct the business of contracting which includes construction of improvements of the kind and nature described in the reimbursement agreement, the applicant may construct the improvements.

If the improvements have been constructed and installed, and are to be acquired pursuant to the reimbursement agreement, the District Engineer shall verify, through records maintained by the applicant in the ordinary course of business, or by inspections of the improvements by the District Engineer at the cost of the applicant, the means by which the improvements were constructed and installed and shall identify the contractor or other person who constructed and installed the improvements. [Ord. 264, 1995; Ord. 273, 1997; Ord. 327, 2010.]

2.50.380 Standards.

The improvements shall be constructed in strict compliance with the plans and specifications approved, or other requirements established, by the District Engineer. Construction of the improvements shall not be commenced unless and until the District Engineer has approved the plans and specifications and established such requirements. If the improvements have been constructed and installed and are to be acquired, the District Engineer shall verify, by records maintained by the applicant in the ordinary course of business, or by inspection of the improvements by the District Engineer at the cost of the applicant, construction of the improvements in compliance with the foregoing standards. [Ord. 264, 1995; Ord. 273, 1997; Ord. 327, 2010.]

2.50.390 Actual costs – Modification of reimbursement charge.

If the improvements are constructed by the District, the District Engineer shall verify the actual cost of construction based upon the District’s records of payment to its contractor and other District records relating to expenditures for the costs of the improvements. If the improvements have been constructed (in the case of acquisition thereof) or are to be constructed by the applicant, the District Engineer shall verify the actual cost of construction based upon information furnished by the applicant. The applicant shall submit contracts, subcontracts, invoices, timecards, and such other information as the District Engineer shall reasonably require for the purpose of verifying the costs.

If the actual cost of construction, as verified by the District Engineer, is more than 10 percent less than the amount allocated thereto as a portion of the costs of the improvements by the Board under DSRSDC 2.50.220, Final determination, the District Engineer shall recalculate the reimbursement charge using the same formulas used by the Board in determining the reimbursement charge and shall report the recalculated reimbursement charge to the Board and the applicant. Thereupon, the Board may determine that the reimbursement charge shall be correspondingly reduced, in which case the Board shall adopt a resolution revising the reimbursement charge, notice of which shall be given by mail to the owners of the benefitted properties.

If the actual costs of construction, as verified by the District Engineer, are more than 10 percent greater than the amount allocated as a portion of the costs of the improvements by the Board under DSRSDC 2.50.220, Final determination, and equal or exceed the amount specified in DSRSDC 2.50.110, District Engineer’s determination, the District Engineer shall likewise recalculate the reimbursement charge and report the recalculated reimbursement charge to the Board and the applicant. Thereupon, the Board shall commence supplemental proceedings on the recalculated reimbursement charge under DSRSDC 2.50.400, Supplemental proceedings.

A copy of the resolution of the Board revising the reimbursement charge shall be submitted by the General Manager to the county recorder of the county within which the benefitted properties are located, for recordation in the official records of the county. Upon adoption of the resolution, the reimbursement charge specified in the reimbursement agreement shall be deemed amended and revised, and the reimbursement charge which shall be collected under the reimbursement agreement shall be the revised charge. [Ord. 264, 1995; Ord. 273, 1997; Ord. 327, 2010.]

2.50.400 Supplemental proceedings.

Except to the contrary provided in DSRSDC 2.50.410, Ownership of improvements, if the Board determines that, following completion of the original proceedings upon an application for a reimbursement agreement, further or supplemental proceedings are required, the further or supplemental proceedings shall be conducted according to the procedures specified for the original proceedings. [Ord. 264, 1995; Ord. 273, 1997; Ord. 327, 2010.]

2.50.410 Ownership of improvements.

Upon completion of construction of the improvements and acceptance thereof by the District, title to the improvements shall vest in the District. In the case of improvements which are to be acquired under a reimbursement agreement, title to the improvements shall vest upon acceptance by the Board. [Ord. 264, 1995; Ord. 273, 1997; Ord. 327, 2010.]