Chapter 13.20
DELAYED BENEFIT AGREEMENTS

Sections:

13.20.010    Delayed benefit agreements authorized.

13.20.020    Benefited property may be charged at time of connection to water or sewer service.

13.20.010 Delayed benefit agreements authorized.

The city may enter into delayed benefit agreements to partially repay developers for the cost of construction of water or sewer lines to serve the developer’s property but which may provide a benefit to other property owners by reason of such construction. Each delayed benefit agreement shall be approved by the city council and shall be entered into on the following terms and conditions and may include such other terms as the city council may require:

A. Plans and specifications for proposed extension shall be first approved by the city engineer. The specifications shall include bonding and insurance for the developer to hold the city harmless and to provide a guarantee of workmanship and materials for a period of one year from the date of acceptance by the city.

B. The developer shall secure all necessary easements or rights-of-way at no cost to the city. Such easements shall be to the benefit of the city and shall include a continuing rights for operation, maintenance, and replacement. Title to the completed improvements shall be vested in the city.

C. The amount of any reimbursement shall be based upon the allocation to the benefited property as determined by the city engineer and shall include all engineering and legal costs which shall be included in the cost of construction.

D. Delayed benefit agreements shall not exceed a term of 15 years and shall provide for interest at a rate of interest equal to the rate of interest applicable to the city at the time of the project; provided, that said rate shall not exceed 10 percent per annum. The aggregate amount of interest shall not exceed the property owner’s share of the cost of the project as determined under subsection C of this section. Interest shall run from the date of the agreement to the date of payments.

E. All delayed benefit charges received by the city shall promptly be forwarded to the developer by U.S. mail at the address last indicated to the city. Any delayed benefit charges which are unclaimed or returned as undeliverable shall be held by the city until expiration of the delayed benefit agreement at which time such unclaimed funds shall be deposited into the city’s general fund and the city shall have no further obligation to the developer.

F. All delayed benefit agreements shall be recorded with the Kittitas County auditor by the developer. The cost of such recording shall be paid by the developer. [Ord. 709, 1992; Ord. 664, 1990.]

13.20.020 Benefited property may be charged at time of connection to water or sewer service.

The owner of the benefited property may be charged his/her share of the cost of the water or sewer lines as determined under RMC 13.20.010(C) when he/she applies for connection to the water and sewer line. Such charge shall be paid prior to any hook-up to city water or sewer. [Ord. 664, 1990.]