Chapter 17.14
UTILITY LATECOMER AGREEMENTS

Sections:

17.14.010    Purpose.

17.14.020    Definitions.

17.14.030    Developer extensions—Latecomer agreements.

17.14.040    Administrative fees.

17.14.050    Latecomer fees—Assessment reimbursement area.

17.14.010 Purpose.

The purpose of this chapter is to establish regulations, as authorized by RCW 35.91.020, regarding the execution and administration of agreements for reimbursement, or “latecomer agreements,” under Chapter 35.91 RCW. (Ord. 1856-0814 § 4 (part), 2014)

17.14.020 Definitions.

As used in this chapter, the following terms shall have the meanings indicated:

A.    “Benefiting party” means any parcel that can utilize a utility extension consistent with the Growth Management Act and the city’s public works standards.

B.    “Construction costs” means the sum of all costs incurred to construct utility system improvements. The cost of construction shall not include costs that will be reimbursed by other means, at the time of construction or development, such as credits or grants.

1.    Direct construction costs include the costs to advertise, award, administer and construct the utility system extension.

2.    Preconstruction costs include, but are not limited to, all related design services, engineering, surveying, legal services, bonding costs, environmental mitigation, acquisition of right-of-way and/or easements, government agency fees, testing services, inspection, plan review and approval, labor, materials, equipment rental, and contractor and/or subcontractor fees or charges.

C.    “Developer extension” means an extension of existing city utility facilities to enable previously unserved properties to be served, which extension is undertaken and paid for by any person other than the city.

D.    “Developer extension agreement” means an agreement setting the terms, conditions and standards by which a person agrees to undertake a developer extension.

E.    “Person” means any individual person or any public or private entity or organization other than the city.

F.    “Utility” means water, stormwater, reclaimed water, or sanitary sewer service.

G.    “Utility latecomer agreement (ULA)” means a contract authorized by RCW 35.91.020 between the city and a developer who constructs or participates in the construction of a developer extension, whereby the city agrees to transmit pro rata share payments, made by persons seeking to connect to the developer extension, to the developer. Unless extended pursuant to RCW 35.91.020, the reimbursement period is twenty years from the date the extension is dedicated to the city. (Ord. 1856-0814 § 4 (part), 2014)

17.14.030 Developer extensions—Latecomer agreements.

A.    In any case where a latecomer agreement is contemplated in connection with a developer extension, the latecomer agreement shall be finalized, approved by the council and executed prior to or simultaneous with the city’s acceptance of ownership of the developer extension.

B.    No developer extension shall be undertaken without prior execution of a developer extension agreement. Where the person undertaking a developer extension wishes to be reimbursed pursuant to a latecomer agreement, such desire shall be made clear to the city in writing prior to the execution of the developer extension agreement relating to the developer extension, and the applicant shall execute a latecomer agreement in the form acceptable to the city.

C.    Conditions. In order to qualify for reimbursement pursuant to a latecomer agreement, a developer extension must be:

1.    Located within the city’s boundaries, or within ten miles of the city’s corporate limits;

2.    Consistent with all applicable comprehensive plans and development regulations of municipalities through which the facilities will be constructed or will serve, any approvals pursuant to which are the developer’s obligation; and

3.    Constructed according to plans and specifications approved by the city and in full compliance with the applicable developer extension agreement and all applicable laws, regulations, codes and standards. (Ord. 1921-0518 (part), 2018; Ord. 1856-0814 § 4 (part), 2014)

17.14.040 Administrative fees.

The city may charge to any person requesting a latecomer agreement pursuant to this chapter appropriate fees to cover the city’s administrative costs. (Ord. 1856-0814 § 4 (part), 2014)

17.14.050 Latecomer fees—Assessment reimbursement area.

A.    Within one hundred twenty days of completion of the developer extension, the person responsible for the developer extension and requesting reimbursement pursuant to a latecomer agreement shall submit to the city the total cost of the developer extension, including such supporting documentation as the city may require. This information will be used by the city as the basis for determining reimbursements by future benefiting parties not contributing to the cost of the developer extension.

B.    The public works director or designee will make recommendations to the city council as to an appropriate pro rata share for latecomer fee assessment.

C.    Recoverable costs may include all costs reasonably associated with the extension. These costs include but are not limited to both direct construction costs and preconstruction costs deemed appropriate by the city to establish complete cost compilation and assessment of costs on a fair, pro rata share of the extension, subject to such rules and regulations adopted by the city.

D.    An assessment reimbursement area shall be formulated by the city based upon a determination by the city of which parcels adjacent to the utility extension can utilize the extension. The latecomer fee will be assessed to and remain with each parcel. Once the latecomer agreement is recorded, the terms of the agreement shall run with the land and bind subsequent owners of the properties affected. (Ord. 1921-0518 (part), 2018; Ord. 1856-0814 § 4 (part), 2014)