Chapter 3.30
REIMBURSEMENT AGREEMENTS

Sections:

3.30.010    Application authorized – Purpose – Term.

3.30.020    Rights and nonliability of city.

3.30.030    Application requirements.

3.30.040    Eligibility of applicants.

3.30.050    Procedures for reimbursement agreements.

3.30.090    Severability.

3.30.010 Application authorized – Purpose – Term.

Any developer utilizing private funds to install infrastructure (street, water, or sewer (sanitary and/or storm)) improvements and appurtenances may apply to the city to establish a latecomer agreement for recovery of a prorated share of the cost of constructing said public improvement from other properties that will later derive a benefit from said improvements. No reimbursement agreement/latecomers’ agreement shall extend from a period longer than 15 years from the date of final acceptance by the city unless a longer period is allowed pursuant to RCW 35.72.020 or 35.91.020. The city council shall have discretion to authorize or not to authorize latecomer agreements on a case-by-case basis. (Ord. 2629 § 1, 2006)

3.30.020 Rights and nonliability of city.

The city reserves the right to refuse to enter into any latecomer agreement or to reject any application therefor. All applications for latecomers’ agreements shall be made on the basis that the applicant releases and waives any claims for any liability of the city in establishment and enforcement of latecomer agreements. The city shall not be responsible for locating any beneficiary or survivor entitled to benefits by or through latecomer agreements.

3.30.030 Application requirements.

All applications for latecomer agreements shall be on forms approved and established by the public works director.

3.30.040 Eligibility of applicants.

In order to be eligible for processing of latecomer agreements, applicants for latecomer agreements shall be in compliance with all city ordinances, rules, and regulations.

3.30.050 Procedures for reimbursement agreements.

A. If a reimbursement agreement is requested, the property owner shall submit project plans and a site plan, map or diagram of the proposed benefited area prepared by a licensed professional engineer, ownership reports on properties within the proposed benefited areas, a cost estimate for the project based upon the plans of a civil engineer from which reimbursable costs shall be estimated, and such other information as the city may require.

B. Property owners requesting a reimbursement agreement shall submit, along with the application, a nonrefundable payment in the amount of $3,000 and $300.00 per parcel in the proposed benefited area to be applied to the city’s legal, engineering and administrative costs (including but not limited to staff time, and costs for title reports, appraisers, or other costs) associated with preparing the reimbursement agreement, which costs shall be included as reimbursable costs in the reimbursement agreement; provided, that whenever city engineering, legal, and administrative costs exceed the payment required herein, the city shall not process the application until such costs have been paid in full.

C. The public works director will formulate an assessment reimbursement area (benefit area) based upon a determination of which parcels did not contribute to the original cost of such infrastructure improvement and which connect to or specially benefit from such infrastructure.

D. The public works director based on information submitted by the owner will estimate pro rata share of costs. The public works director may require engineering costs or construction bids to be provided.

E. The public works director, in the public works director’s discretion, may utilize the application fee to pay the costs of an appraiser to be retained by the city to assist the public works director in formulating an assessment reimbursement area.

F. The preliminary determination of area boundaries and assessments, along with a description of the property owner’s rights and options, shall be forwarded by first class mail to the property owners of record as shown on the records of the Snohomish County assessor within the proposed assessment area. A hearing shall be held before the city council, notice of which shall be given to all affected property owners at least 20 days in advance of the council meeting. At the hearing, the city council determines whether to accept, reject, or modify the proposed reimbursement agreement. If the city council accepts, it shall establish the reimbursement area; provided, that the city council may only increase the reimbursement area upon new notice to the owners of the affected property.

G. Prior to commencing construction of the project, the owner shall submit three competitive construction bids on forms provided by the public works department based upon city-approved plans to the city. Upon completion of the project, a reasonable pro rata share of project costs shall be established by the city, which shall then notify owners of the benefited properties of the amount of reimbursement connection charges against their property and the date the reimbursement agreement shall be presented to the city council for public hearing. On the date scheduled, the city council shall hear from affected parties and thereafter set the terms of the reimbursement agreement and maximum amount and terms of reimbursement from affected properties. The decision of the city council shall be final and determinative.

H. The latecomer agreements must be recorded in the Snohomish County auditor’s office within 30 days of the final execution of the agreement. It shall be the sole responsibility of the latecomer applicant to record said agreement.

I. Once recorded, the latecomer agreement shall be binding on owners of record within the assessment area who are not party to the agreement. (Ord. 2629 § 2, 2006; Ord. 2147 § 1, 1997)

3.30.090 Severability.

If any section, subsection, sentence, clause phrase, or word of this chapter should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality thereof shall not affect the validity or constitutionality of any other section, subsection, sentence, clause, phrase, or work of the ordinance codified in this chapter. (Ord. 2147 § 2, 1998)