Chapter 3.08
LOCAL IMPROVEMENTS
Sections:
3.08.010 Proceedings – Compliance with state law.
3.08.020 Initiation – Order by ordinance.
3.08.030 Initiation – Petition – Filing – Examination.
3.08.040 Initiation – By resolution – Objections – Hearing.
3.08.050 Authorization of improvement by ordinance.
3.08.060 Form of ordinance – Property to be included.
3.08.070 Done by city or by bid contract.
3.08.080 Cost and expense – Distribution and assessment.
3.08.090 Provision for payment by bonds.
3.08.100 Bonds – Issuance and sale.
3.08.110 Issuance of warrants – Redemption.
3.08.120 Collection of assessments.
3.08.130 Payments – Installments.
3.08.140 Report of amount collected.
3.08.150 Form of bonds and coupons.
3.08.160 Date of commencement of foreclosure.
3.08.170 Acceleration on default.
3.08.180 Administrative costs.
3.08.190 Time and place of sale.
3.08.010 Proceedings – Compliance with state law.
Whenever the city council provides for making local improvements and for paying the whole or any portion of the cost and expense thereof by levying and collecting special assessments on property especially benefitted, the proceedings therefor shall be in accordance with the provisions of an act of the legislature of the state, entitled “An Act Relating to Local Improvements in Cities and Towns and Repealing Certain Acts and Parts of Acts,” approved March 17, 1911, and acts amendatory thereof (being Chapters 35.43, 35.44, 35.45, 35.49, 35.50 and 35.53 RCW), and the provisions of this chapter and ordinances amendatory thereof. (Ord. 78 § 1, 1960).
3.08.020 Initiation – Order by ordinance.
Any such improvement may be initiated either upon petition or by resolution therefor, but such improvement may be ordered only by ordinance. (Ord. 78 § 2, 1960).
3.08.030 Initiation – Petition – Filing – Examination.
A. In case the improvement is initiated by petition, such petition shall be presented to and filed with the city clerk, or such other officer as may be designated by the city council.
B. The public works director shall thereupon examine such petition, determine the sufficiency thereof and ascertain if the facts therein stated are true, and shall cause an estimate of the cost and expense of such improvement to be made and shall transmit the same to the city council, together with all papers and information in his possession regarding the same; together with his recommendations thereon and a description of the boundaries of the district and a statement of the proportionate amount of the cost and expense of such improvement which shall be borne by property within the proposed assessment district, and a statement of the actual valuation of the real estate, including 25 percent of the actual valuation last placed on it for purpose of general taxation; together with all other outstanding and unpaid local improvement assessments against the property included in the district, excluding penalties and interest. In case the petition is sufficient, he shall also submit a diagram showing thereon the lots, tracts or parcels of land and other property which will be specially benefitted thereby and the estimated amount of the cost and expense of such improvement to be borne by each lot, tract or parcel of property; provided, that no such diagram shall be required where such estimates are on file in the office of the city engineer, or other designated city office, together with a detailed copy of the preliminary assessment roll and the plans and assessment maps of the proposed improvement. (Ord. 1859 § 4, 2014; Ord. 78 § 2, 1960).
3.08.040 Initiation – By resolution – Objections – Hearing.
A. The city council may initiate such improvement directly by resolution declaring its intention to order such improvement and setting forth the nature and territorial extent thereof and notifying all persons who may desire to object thereto to appear and present such objections at a meeting of the city council, or a committee thereof, at the time specified in such resolution. Such resolution shall be published in at least two consecutive issues of the official newspaper of the city, or, if there is no official newspaper, in a newspaper of general circulation within the city, and the date of hearing thereon shall be at least 15 days after the date of the first publication of the same. The city engineer shall submit to the city council, at or prior to the date fixed for such hearing, the same data and information required to be submitted in the case of a petition.
B. Notice of the hearing upon such resolution shall be given by mail at least 15 days before the day fixed for hearing to the owners or reputed owners of all lots, tracts, and parcels of land or other property to be specially benefitted by the proposed improvement, as shown on the rolls of the county treasurer, directed to the address thereon shown. The notice shall set forth the nature of the proposed improvement, the estimated cost, and the estimated benefits of the particular lot, tract, or parcel. (Ord. 78 § 2, 1960).
3.08.050 Authorization of improvement by ordinance.
The city council may, by ordinance, authorize the making of any such improvement and, in case of an improvement initiated by resolution of the city council, such ordinance may be passed on or at any time after the date of the hearing specified in the resolution. (Ord. 78 § 2, 1960).
3.08.060 Form of ordinance – Property to be included.
A. Every ordinance ordering a local improvement to be paid in whole or in part by assessments against the property specially benefitted shall establish a local improvement district to be known as “Local Improvement District No. ____,” which shall embrace as nearly as practicable all the property specially benefitted by the improvement.
B. Unless otherwise provided in the ordinance ordering the improvement, the improvement district shall include all the property between the termini of the improvement abutting upon, adjacent, vicinal, or proximate to the street, avenue, lane, alley, boulevard, park drive, parkway, public place or square proposed to be improved to a distance of 90 feet back from the marginal lines thereof or to the centerline of the blocks facing or abutting thereon, whichever is greater (in the case of unplatted property, the distance back shall be the same as in the platted property immediately adjacent thereto); provided, that if the local improvement is such that the special benefits resulting therefrom extend beyond the boundaries as above set forth, the council may create an enlarged district to include as nearly as practicable all the property to be specially benefitted by the improvement; the petition or resolution for an enlarged district and all proceedings pursuant thereto shall conform as nearly as is practicable to the provisions relating to local improvement districts generally, except that the petition or resolution must describe it as an enlarged district and state what proportion of the amount to be charged to the property specially benefitted shall be charged to the property lying between the termini of the proposed improvement and extending back from the marginal lines thereof to the middle of the block (or 90 feet back) on each side thereof, and what proportion thereof to the remainder of the enlarged district; provided, further, that whenever the nature of the improvement is such that the special benefits conferred on the property are not fairly reflected by the use of the aforesaid termini and zone method, the ordinance ordering the improvement may provide that the assessment shall be made against the property of the district in accordance with the special benefits it will derive from the improvement without regard to the zone and termini method. (Ord. 78 § 3, 1960).
3.08.070 Done by city or by bid contract.
A. All local improvements, funds for the making of which are derived in whole or in part from assessments upon property specially benefitted, shall be made either by the city itself or by contract upon competitive bids in the manner provided by law.
B. The city council shall determine whether such local improvement shall be done by contract or by the city itself. (Ord. 78 § 4, 1960).
3.08.080 Cost and expense – Distribution and assessment.
The cost and expense of any such improvement, or such portion thereof as the city council may determine to be assessed, shall be distributed and assessed against all the property included in such local improvement district, in accordance with the special benefits conferred thereon, and in the manner provided by law. (Ord. 78 § 5, 1960).
3.08.090 Provision for payment by bonds.
The city council may provide by ordinance for the payment of the whole or any portion of the cost and expense of any local improvement by bonds of the improvement district, but no bonds shall be issued in excess of the cost and expense of the improvement, nor shall they be issued prior to 20 days after the 30 days allowed for the payment of assessments without penalty or interest. (Ord. 78 § 6, 1960).
3.08.100 Bonds – Issuance and sale.
A. Local improvement bonds may be issued to the contractor or sold by the officers authorized by the ordinance directing their issue to do so, in the manner prescribed therein, and at not less than par and accrued interest. Any portion of the bonds of any issue remaining unsold may be issued to the contractor constructing the improvement in payment thereof.
B. The proceeds of all sales of bonds shall be applied in payment of the cost and expense of the improvement. (Ord. 78 § 7, 1960).
3.08.110 Issuance of warrants – Redemption.
A. The city council may provide by ordinance for the issuance of warrants in payment of the cost and expense of any local improvement, payable out of the local improvement district fund. The warrants shall bear interest at the rate of not to exceed eight percent per year and shall be redeemed either in cash or by local improvement bonds for the same improvement authorized by ordinance.
B. All warrants against any local improvement fund sold by the city or issued to a contractor and sold or hypothecated by him for a valuable consideration shall be claims and liens against the improvement fund against which they are drawn prior and superior to any right, lien or claim of any surety upon the bond or bonds given to the city by or for the contractor to secure the performance of his contract or to secure the payment of persons who have performed work thereon, furnished materials therefor, or provisions and supplies for the carrying on of the work. (Ord. 78 § 8, 1960).
3.08.120 Collection of assessments.
A. All assessments for local improvements shall be collected by the finance director-treasurer and shall be kept in a separate fund to be known as “Local Improvement Fund, District No. ____,” and shall be used for no other purpose than the redemption of warrants drawn upon and bonds issued against the fund to provide payment for the cost and expense of the improvement.
B. As soon as the assessment roll has been placed in the hands of the city finance director-treasurer for collection, he shall publish a notice in the official newspaper of the city of 10 consecutive daily or two consecutive weekly issues, or, if there is no official newspaper, in a newspaper of general circulation within the city, that the roll is in his hands for collection and that any assessment may be paid within 30 days from the date of the first publication of the notice without penalty, interest or costs. (Ord. 1746 § 1 (Exh. A), 2011; Ord. 78 § 9, 1960).
3.08.130 Payments – Installments.
A. In all cases where bonds are issued to pay the cost and expense of a local improvement, the ordinance levying the assessments shall provide that the sum charged against any lot, tract, and parcel of land, or other property, or any portion thereof, may be paid during the 30-day period allowed for the payment of assessments without penalty or interest and that thereafter the sum remaining unpaid may be paid in equal annual installments.
B. The number of installments shall be less by two than the number of years which the bonds issued to pay for the improvement are to run. Interest on the whole amount unpaid at the rate fixed by the ordinance shall be due on the due date of the first installment of principal and each year thereafter on the due date of each installment of principal.
C. The first installment shall become due and payable during the 30-day period succeeding a date one year after the date of first publication of the finance director-treasurer’s notice, as provided in FMC 3.08.120, and annually thereafter each succeeding installment shall become due and payable in like manner.
D. If the whole or any portion of any assessment remains unpaid after the first 30-day period herein provided for, interest upon the whole unpaid sum shall be charged at the rate to be fixed by ordinance, not exceeding eight percent per year, and each year thereafter one of the installments, together with interest due upon the whole of the unpaid balance, shall be collected.
E. Any installment not paid prior to the expiration of the 30-day period during which such installment is due and payable shall thereupon become delinquent. All delinquent installments shall be subject to a charge for interest at the rate fixed on the unpaid balance of the roll and to an additional charge of five percent penalty levied upon both principal and interest due on such installment or installments. (Ord. 1746 § 1 (Exh. A), 2011; Ord. 78 § 10, 1960).
3.08.140 Report of amount collected.
In case the improvement is made on the bond installment plan, the finance director-treasurer shall, at the expiration of 30 days after the first publication of the notice to pay assessment, report to the city council the amount collected by him upon the roll and shall specify in the report the amount remaining unpaid upon the roll, and the city council may then, or at a subsequent meeting, by ordinance, direct the mayor and finance director-treasurer to issue the bonds on the local improvement district established by the ordinance ordering the improvement in an amount equal to the amount remaining unpaid on the assessment roll. The ordinance shall specify the denomination of the bonds which, except for bond numbered “one,” shall be in multiples of $100.00 each. (Ord. 1746 § 1 (Exh. A), 2011; Ord. 78 § 11, 1960).
3.08.150 Form of bonds and coupons.
A. All bonds, unless otherwise specially ordered by the council, issued in pursuance of the provisions of this chapter, may be in substantially the following form:
No. ________ $ ________
UNITED STATES OF AMERICA
STATE OF WASHINGTON
LOCAL IMPROVEMENT FUND
CITY OF FIFE LOCAL IMPROVEMENT DISTRICT NO. ____
N.B. This bond is issued by virtue of the provisions of RCW 35.45.010 et seq., Section 35.45.070 of which reads as follows:
Neither the holder nor the owner of any bond or warrant issued under the provisions of this act shall have any claim therefor against the city or town by which the same is issued, except for payment from the special assessments made for the improvement for which said bond or warrant was issued, and except as against the local improvement guaranty fund of such city or town, and the city or town shall not be liable to any holder or owner of such bond or warrant for any loss to the guaranty fund occurring in the lawful operation thereof by the city or town. The remedy of the holder or owner of a bond or warrant in case of nonpayment, shall be confined to the enforcement of the assessment and to the guaranty fund.
The city of Fife, a municipal corporation of the State of Washington, hereby promises to pay to __________________ or bearer ____________ Dollars ($_____), in lawful money of the United States, with interest thereon at the rate of ___ percent per annum, payable annually out of the fund established by Ordinance No. ____ of said city, and known as “Local Improvement Fund, District No. ___,” and not otherwise, except from the guaranty fund, as herein provided. Both principal of and interest on this bond are payable at the office of the finance director-treasurer.
A coupon is hereto attached for each installment of interest to accrue hereon and said interest shall be paid only on presentation and surrender of such coupon to the finance director-treasurer.
This bond is payable on the ____ day of ______, 20___, but is subject to call by the finance director-treasurer of said city whenever there shall be sufficient money in said local improvement fund to pay the same and all unpaid bonds of the series of which this bond is one, which are prior to this bond in numerical order, over and above sufficient for the payment of interest on all unpaid bonds of said series. The call for payment of this bond, or of any bond of the series of which this is one, shall be made by the finance director or city clerk by publishing the same once in the official newspaper, or if there is no official newspaper, in a newspaper of general circulation within the city, and when such call is made for the payment of this bond it will be paid on the day the next interest coupon thereon shall become due after said call and upon said day interest upon this bond shall cease and any remaining coupons shall be void.
The city council of said city, as the agent of said Local Improvement District No. ____, established by Ordinance No. ____, has caused this bond to be issued in the name of said city as the bond of said Local Improvement District, the bond or the proceeds thereof to be applied in part payment of so much of the cost and expense of the improvement of _________ under said Ordinance No. ____, as is levied and assessed against the property included in said Local Improvement District No. ____ and benefited by said improvement and the said Local Improvement Fund has been established by ordinance for said purpose; and the holder or holders of this bond shall look only to said fund and to the Local Improvement Guaranty Fund of the city of Fife for the payment of either the principal of or interest on this bond.
This bond is one of a series of bonds aggregating in all the principal sum of ________ Dollars ($____), all of which bonds are subject to the same terms and conditions as herein expressed.
IN WITNESS WHEREOF, the city of Fife has caused these presents to be signed by its city manager and attested by its finance director-treasurer and sealed with its corporate seal this ____ day of ___________, 20___.
CITY OF FIFE, WASHINGTON
By _________________________
CITY MANAGER
ATTEST:
____________________________
CITY CLERK
B. There shall be attached to each bond such a number of coupons as shall be required to represent the interest thereon payable either annually or semiannually, as the case may be, for the term of the bonds, which coupons shall be substantially in the following form:
On the ____ day of ______, 20___, the CITY OF FIFE, STATE OF WASHINGTON, promises to pay to the bearer at the office of the finance director-treasurer ________ Dollars ($_____), being (six) (12) months’ interest due that day on Bond No. _____ of the bonds of Local Improvement District No. ____, and not otherwise, provided that this coupon is subject to all the terms and conditions contained in the bond to which it is annexed, and if said bond shall be called for payment before maturity hereof, then this coupon shall be void.
CITY OF FIFE, WASHINGTON
By _________________________
CITY MANAGER
ATTEST:
____________________________
CITY CLERK
C. The finance director-treasurer shall keep in his office a register of all such bonds in which he shall enter the local improvement district for which the same are issued and the date, amount and number of each bond and the terms of payment. (Ord. 1751 § 1 (Exh. A), 2011; Ord. 1746 § 1 (Exh. A), 2011; Ord. 1398 § 29, 2000; Ord. 78 § 12, 1960).
3.08.160 Date of commencement of foreclosure.
Thirty-one days after the date when two installments of any local improvement district assessments are delinquent, the city treasurer is authorized to send a delinquent assessment notice to the address last known to the city treasurer, stating the amount due upon each separate lot, tract or parcel of property, and that foreclosure proceedings will be commenced 30 days after receipt of the notice. If the person whose name appears on the tax roll of the county assessor as owner of the property or the address shown for the owner differs from that appearing on the city’s assessment roll, the city treasurer shall also mail a copy to that person or that address. Upon failure to pay the delinquent assessment and the passage of 30 days, the city attorney is authorized to commence foreclosure by any method provided by RCW Title 35. (Ord. 1738 § 1, 2011).
3.08.170 Acceleration on default.
Should any property assessed under an LID fail to pay the yearly assessment as they come due for two or more successive years, then the city may, at its discretion, accelerate the full amount of the remaining LID assessments and demand payment of that full amount. Should the city initiate litigation to foreclose on the lien of the LID assessments, then the city shall have the option to claim in that litigation the full amount of the unpaid LID accelerated assessments; provided, that payment of all the delinquent installments, together with interest, penalty and administrative costs, at any time before entry of judgment and foreclosure shall extend the time of payment on the remainder of the assessment as if there had been no delinquency or foreclosure. (Ord. 1908 § 1, 2015; Ord. 1738 § 2, 2011).
3.08.180 Administrative costs.
A. For the purposes of this chapter, “administrative costs” shall mean all costs, fees, and expenses incurred by the city associated with collection of an assessment that has become delinquent, or enforcement or protection of the city’s assessment lien rights, whether or not suit has been filed, including, but not limited to, costs of the LID administrator, title insurance fees, court costs and reasonable attorneys’ fees (including those court costs and attorneys’ fees incurred in any bankruptcy proceeding, alternate dispute resolution process, or appeal), and foreclosure sale costs.
B. Administrative costs shall be included in and shall be a part of the assessment lien. All administrative costs shall be paid before assessment installments shall be considered paid current.
C. The city shall be entitled to an award of administrative costs in any legal proceeding associated with collection of an assessment that has become delinquent, or enforcement or protection of the city’s lien rights, including, but not limited to, any foreclosure action, bankruptcy proceeding, alternate dispute resolution process, or appeal. (Ord. 1908 § 2, 2015; Ord. 1738 § 3, 2011).
3.08.190 Time and place of sale.
Should the city obtain a judgment or order of sale authorizing the city treasurer to sell any property with delinquent LID liens that have been foreclosed, then the city treasurer shall give notice of the time and place where such sale is to take place for 10 days successively by posting notice thereof in three public places in the county, one of which shall be in the office of the city treasurer, and one of which shall be posted on the property in question. The city treasurer shall schedule the sale at 10:00 a.m. on any Friday of any month on the steps of the Fife City Hall or such other place to which the sale may be adjourned from the front steps of the Fife City Hall. (Ord. 1738 § 4, 2011).