Chapter 12.35
ASSESSMENT REIMBURSEMENT CONTRACTS

Sections

12.35.010    Title.

12.35.020    Application.

12.35.030    Purpose.

12.35.040    Authority.

12.35.050    Assessment reimbursement contracts.

12.35.060    Right of refusal – Waiver of liability.

12.35.070    Guidelines establishment authority.

12.35.080    Application – Contents.

12.35.090    Application requirements – Fees.

12.35.100    Notices.

12.35.110    Notice to property owners.

12.35.120    City Council action.

12.35.130    Contract execution and recording.

12.35.010 Title.

This chapter shall be entitled “Assessment Reimbursement Contracts.” [Ord. 1578 § 101, 2013.]

12.35.020 Application.

This chapter shall be applicable to an owner required to construct or improve street projects which the owners elect to install as a result of ordinances that require the projects as a prerequisite to further property development, that meets the requirements of chapter 35.72 RCW. [Ord. 1578 § 102, 2013.]

12.35.030 Purpose.

This chapter is intended to implement and thereby make available to the public the provisions of chapter 35.72 RCW. [Ord. 1578 § 103, 2013.]

12.35.040 Authority.

Assessment reimbursement areas and contracts may only be authorized by the City Council pursuant to chapter 35.72 RCW. [Ord. 1578 § 104, 2013.]

12.35.050 Assessment reimbursement contracts.

An owner may apply to the City to establish a street assessment reimbursement contract (“ARC”) for recovery by the owner or the owner’s assigns, of a pro rata share of the costs of constructing such improvements, from other property owners that are determined to be within the assessment reimbursement area pursuant to RCW 35.72.040 and determined to have a reimbursement share based upon a benefit to the property owner pursuant to RCW 35.72.030. No latecomer agreement shall extend for a period longer than 15 years from the date of final acceptance by the City. [Ord. 1578 § 105, 2013.]

12.35.060 Right of refusal – Waiver of liability.

The City Council reserves the right to refuse to enter into any ARC or to reject an application. All ARCs shall include language indicating that the applicant releases and waives any claims for liability of the City in the establishment and enforcement of ARCs. The City is not responsible for locating a beneficiary or survivor entitled to benefits by or through ARCs. Any collected funds unclaimed by developers after three years from the expiration of the contract are returned to parties making payment to the City. Any remaining undeliverable funds shall inure to the benefit of the appropriate utility and/or fund approved by the City Council. [Ord. 1578 § 106, 2013.]

12.35.070 Guidelines establishment authority.

The Planning, Building and Public Works Director, working under the direction of the City Manager or the City Manager’s designee, shall establish administrative rules, regulations, policies, and procedures necessary to implement the provisions of this chapter. [Ord. 1578 § 107, 2013.]

12.35.080 Application – Contents.

Applications for the establishment of an assessment reimbursement area are accompanied by the application fee as set by this chapter and shall include the following items:

(1) Detailed construction plans and drawings of the entire project to be borne by the assessment reimbursement area prepared and stamped by a state licensed engineer.

(2) Itemization of all costs of the project including, but not limited to, design, grading, paving, installation of curbs, gutters, storm drainage, sidewalks, street lights, right-of-way landscaping, street trees, engineering, construction, property acquisition, and contract administration.

(3) A map and legal description identifying the proposed boundaries of the assessment reimbursement area and each separately owned parcel within such area. Such map shall identify the location of the project in relation to the parcels of property in such area.

(4) A proposed assessment reimbursement roll stating the proposed assessment for each separate parcel of property within the proposed assessment reimbursement area as determined by apportioning the total project cost on the basis of the benefit of the project to each such parcel of property within said area.

(5) A complete list of record owners of property within the proposed assessment reimbursement area certified as complete and accurate by the applicant and which states names and mailing addresses for each such owner.

(6) Envelopes addressed to each of the record owners of property within the assessment reimbursement area who have not contributed their pro rata share of such costs. Proper postage for certified mail shall be affixed or provided.

(7) Copies of executed deeds and/or easements in which the applicant is the grantee for all property necessary for the installation of such project. [Ord. 1578 § 108, 2013.]

12.35.090 Application requirements – Fees.

All applications for ARCs are on forms approved by the City Attorney and are accompanied by a nonrefundable application fee in an amount to be determined by written executive order of the City Manager or the City Manager’s designee to reimburse the City for expenses in processing the application. The application fee shall include a separate fee for each parcel to be encumbered by the agreement. [Ord. 1578 § 109, 2013.]

12.35.100 Notices.

All notices required by this chapter, including notices approved as to form by the City, and pre-addressed envelopes with proper postage affixed are the responsibility of the applicant for latecomer agreement. The City is responsible for mailing the notices. [Ord. 1578 § 110, 2013.]

12.35.110 Notice to property owners.

Prior to the execution of a contract with the City establishing an assessment reimbursement area, the Planning, Building and Public Works Director or designee shall mail, via certified mail, a notice to all property owners of record within the proposed assessment reimbursement area as determined by the City on the basis of information and materials supplied by the applicant, stating the preliminary boundaries of such area and assessments along with substantially the following statement:

As a property owner within the assessment reimbursement area whose preliminary boundaries are enclosed with this notice, you or your heirs and assigns will be obligated to pay under certain circumstances a pro rata share of construction and contract administration costs of a certain street and/or utility project that has been preliminarily determined to benefit your property. The proposed amount of such pro rata share or assessment is also enclosed with this notice. You, or your heirs and assigns, will have to pay such share if any development permits are issued for development on your property within 15 years of the date a contract establishing such area is recorded with King County, provided such development is included within the assessment reimbursement area and would have required similar street improvements for approval. You have a right to request a hearing before the City Council within 20 calendar days of the date of this notice. All such requests must be made in writing and filed with the City Clerk. After such contract is recorded it is binding on all owners of record within the assessment area who are not a party to the contract.

[Ord. 1578 § 111, 2013.]

12.35.120 City Council action.

If an owner of property within the proposed assessment reimbursement area requests a hearing, notice of such is given to all affected property owners in the manner provided in DMMC 12.35.080, 12.35.100, and 12.35.110. At such hearing the City Council shall take testimony from affected property owners and make a final determination of the area boundaries, the amount of assessments, length of time for which reimbursement is required, and shall authorize the execution of appropriate documents. The City Council’s ruling on these matters is determinative and final. If no hearing is requested, the council may consider and take final action on these matters at any public meeting 20 calendar days after notice was mailed to the affected property owners. [Ord. 1578 § 112, 2013.]

12.35.130 Contract execution and recording.

(1) Within 30 days of final City Council approval of an ARC, the applicant shall execute and present such contract for the signature of the appropriate City officials.

(2) The ARC must be recorded in the King County Department of Records within 30 days of the final execution of the agreement. It is the sole responsibility of the applicant to record said agreement and to provide the City with a copy of the recorded instrument. Failure to comply with the requirements of this subsection is grounds for unilateral rescission of the contract by the City.

(3) Once recorded, the ARC is binding on owners of record within the assessment area who are not party to the agreement. [Ord. 1578 § 113, 2013.]