Chapter 13.20
UTILITY REIMBURSEMENT AGREEMENTS

Sections:

13.20.010    Purpose.

13.20.020    Definitions.

13.20.030    Written application.

13.20.040    Application fee.

13.20.050    Review of application by town council.

13.20.060    Written agreement.

13.20.070    Construction of facilities.

13.20.080    Length of reimbursement.

13.20.090    Conveyance of system improvements.

13.20.100    Approval and acceptance of facilities.

13.20.110    Costs of water or sewer facilities.

13.20.120    Defective work.

13.20.130    Indemnification.

13.20.140    Implementation of reimbursement agreement.

13.20.150    Collection of reimbursement fees.

13.20.160    No appeal.

13.20.010 Purpose.

The purpose of this chapter is to prescribe rules and regulations for exercise of the authority to enter into a utility reimbursement agreement granted to the town by Chapter 35.91 RCW, otherwise known as the Municipal Water and Sewer Facilities Act. (Ord. 669 § 1, 2006).

13.20.020 Definitions.

As used in this chapter, the terms listed below shall be defined as follows:

“Applicant” means any owner of real property who is requesting a reimbursement agreement.

“Cost of construction” means those acts (excluding interest charges or other financing costs) incurred for design, acquisition for right-of-way and/or easements, construction, materials and installation required in order to create an improvement for water or sewer facilities which complies with town standards.

“Reimbursement agreement” means a written contract between the town and one or more applicants providing both for construction of water or sewer facilities and for reimbursement to the applicant or applicants constructing the facilities for part of the costs of the facilities by owners of real property benefited by the improvements.

“Water or sewer facilities” means storm, sanitary, or combination sewers, pumping stations, and disposal plans, water mains, hydrants, reservoirs, or appurtenances. (Ord. 669 § 1, 2006).

13.20.030 Written application.

A request to enter into a reimbursement agreement shall be done by filing a written application with the town clerk. The written application shall include:

A. Each applicant’s name, physical address, mailing address, and telephone number;

B. Preliminary utility design drawings;

C. Itemized estimate of construction costs prepared and signed by a licensed civil engineer or in the form of a bid submitted by a qualified contractor (if more than one bid has been obtained, all bids must be submitted to the town);

D. Scaled vicinity drawing, stamped by a licensed civil engineer or licensed land surveyor depicting the proposed water or sewer facilities, the location, the proposed benefited area, and dimensions;

E. Separate legal description for each tax parcel within the proposed benefited area;

F. Douglas County assessor’s numbers for each tax parcel within the proposed benefited area;

G. An estimated amount of the reimbursement charge that each owner of real property in the proposed benefited area will pay, which shall be established by a licensed civil engineer and in a sum so that each owner may be assessed a fair, pro rata share of the cost of construction of the water or sewer facilities that is proportional to the benefits which accrue to each owner; and

H. Such other information as the town council determines is necessary to properly review the application. (Ord. 669 § 1, 2006).

13.20.040 Application fee.

A. When the applicant files the written application with the town clerk, the written application must be accompanied by an initial $250.00 application fee. In addition, the town shall charge as an application fee any expenses and costs incurred, including engineering, attorney, or other professional consultant services, required in processing the application.

B. All application fees shall be nonrefundable.

C. Town council approval of the application shall be conditioned upon receipt by the town of payment of all application fees. (Ord. 669 § 1, 2006).

13.20.050 Review of application by town council.

After a completed application has been filed with the town clerk and all application fees have been paid, the town council shall hold a public meeting to consider the application. Owners of real property to be affected shall be given notice of such public meeting at least 10 days in advance of the public meeting. Notice shall be by mail to owners as listed in the records of the Douglas County treasurer. Notice by mail shall be presumed complete three days after mailing. The applicant shall draft and mail the notices specified herein and shall sign an affidavit of mailing to assure notices are complete and file a copy of the notice and affidavit of mailing with the town clerk prior to the public meeting. (Ord. 669 § 1, 2006).

13.20.060 Written agreement.

A. Upon approval of the application, the town and applicant shall enter into a reimbursement agreement.

B. In order to become effective, a reimbursement agreement must be recorded with the Douglas County auditor. After the reimbursement agreement has been signed by all parties, the applicant shall record the agreement, with a notice legally describing all properties within the benefited area, which shall constitute the notice required by RCW 65.08.170 as it now reads, or as hereafter amended.

C. The applicant shall record the reimbursement agreement with the Douglas County auditor within 10 days after the final signature is obtained on the reimbursement agreement.

D. Nothing in this chapter shall be construed as requiring the town to enter into a reimbursement agreement. The town reserves the right to deny any application. (Ord. 669 § 1, 2006).

13.20.070 Construction of facilities.

A. After the reimbursement agreement has been signed by all parties, and all necessary permits and approvals have been obtained by the applicant, the applicant shall construct the water or sewer facilities and, upon final completion, request final inspection and acceptance of the water or sewer facilities by the town, subject to any required obligation to repair defects.

B. All construction, inspection and testing of water or sewer facilities shall conform to town standards. (Ord. 669 § 1, 2006).

13.20.080 Length of reimbursement.

No reimbursement agreement shall provide for reimbursement for a period longer than 15 years from the effective date of the agreement. (Ord. 669 § 1, 2006).

13.20.090 Conveyance of system improvements.

Reimbursement agreements under this chapter are subject to the applicant conveying full title to all improvements and necessary real property, public easements and rights-of-way. Such improvements, real property, easements, and rights-of-way shall be free of all encumbrances. Easements must provide that the town has no duty to replace or repair facilities built in the easement areas except parking surfaces and/or lawn turf. (Ord. 669 § 1, 2006).

13.20.100 Approval and acceptance of facilities.

A. Upon the completion of the water or sewer facilities pursuant to the reimbursement agreement, the town council shall be authorized to approve and accept the same as facilities of the town and to charge for their use such water or sewer rates as the town may be authorized by law to establish, and if any such water or sewer facilities are so approved and accepted, all further maintenance and operation costs of said water or sewer facility shall be borne by the town.

B. No connection to, or other use of, the water or sewer facilities will be allowed or permitted until the town has officially approved and accepted such facilities. (Ord. 669 § 1, 2006).

13.20.110 Costs of water or sewer facilities.

The final costs of construction of the water or sewer facilities shall be reviewed against the preliminary assessments established by the town. Upon a showing of good cause as determined by the town, the reimbursement agreement shall be modified to include cost overruns up to a maximum of 10 percent. In the event that actual costs are less than the preliminary assessments by 10 percent or more, the reimbursement agreement shall be modified to reduce the charges set forth in the reimbursement agreement to the actual costs incurred. For any revisions under this section, the applicant shall cause a revised list of charges to be recorded with the Douglas County auditor. (Ord. 669 § 1, 2006).

13.20.120 Defective work.

The applicant shall be responsible for all work found to be defective within one year after the date of approval and acceptance of the water or sewer facilities by the town. (Ord. 669 § 1, 2006).

13.20.130 Indemnification.

All applicants shall be required to provide a written release, indemnification, and hold harmless agreement releasing and indemnifying the town from all claims of any nature, including property damage and personal injury, arising out of the execution, establishment, enforcement and implementation of the reimbursement agreement, including, but not limited to, claims arising during the course of construction and during the one-year warranty period following acceptance of the water or sewer facilities by the town. Such indemnification shall include attorney’s fees and costs reasonably incurred in the defense of such action. (Ord. 669 § 1, 2006).

13.20.140 Implementation of reimbursement agreement.

A. Upon the applicant recording the reimbursement agreement with the Douglas County auditor, the reimbursement agreement and charge shall be binding upon all property owners of record within the benefited area who were not parties to the agreement. If a property owner later develops his or her property during the term of the reimbursement agreement and is not required to install similar water or sewer facilities because such improvements were already installed under the reimbursement agreement, the town shall require that owner to reimburse the applicant who initially constructed the improvement pursuant to the reimbursement share previously determined in the reimbursement agreement.

B. Connection to or use of the water or sewer facilities by property owners within the benefited area shall be prohibited and development permission should not be granted unless the town has received payment of the reimbursement agreement charge.

C. The reimbursement agreement charge shall be in addition to the usual and ordinary charges, including hookup fees, system development charges, and any other fees which must be paid by owners of real property applying for town water or sewer services, as required by town ordinances or any other law.

D. The town will exercise its best efforts to assure compliance with this section; however, in no event shall the town incur liability for an unauthorized connection to or use of the water or sewer facilities.

E. Where any tap or connection is made into any water or sewer facilities without payment being made as required by this section, the town may order the unauthorized tap or connection and all connecting pipe located on or in the town real property, easement or right-of-way removed without any liability or cost to the town or town officials. (Ord. 669 § 1, 2006).

13.20.150 Collection of reimbursement fees.

A. The town shall pay the amounts due the applicant or assignee of the reimbursement agreement within 60 calendar days of receipt, subject to subsection C of this section, by certified mail, return receipt requested.

B. When the reimbursement agreement for a particular parcel has been paid, at the request of the property owner/payor, the town shall approve a certification of payment which may be recorded by the property owner/payor.

C. Throughout the term of the reimbursement agreement, and at least every two years from the date the agreement is executed, the applicant or assignee shall provide the town with information regarding his or her current name, mailing address, and telephone number. Absent such notice, the town is not responsible for locating any applicant or assignee entitled to benefits under the reimbursement agreement. The applicant may not assign any rights under the reimbursement agreement without written notification to the town. Absent such notification, any assignment of rights shall have no effect on the obligations of the town under the reimbursement agreement.

D. Upon receipt of any reimbursement charge, the town shall deduct a seven percent administrative fee and remit the balance of the reimbursement charge to the applicant or assignee pursuant to the reimbursement agreement. In the event that through error, the town fails to collect or acquire a reimbursement charge prior to approval of connection to a water or sewer facility, the town shall make diligent efforts to collect such charge, but shall under no circumstances be obligated to make payment to the applicant or assignee, or in any other way be liable to the applicant or assignee, unless such reimbursement charge has actually been paid to the town.

E. Any funds not claimed by the applicant or assignee within 180 days from the date collected shall become the property of the town. Fourteen days prior to the expiration of the 180 days, the town shall send to the applicant or assignee, by certified mail, return receipt requested, a final notice of the town’s intent to deposit the funds as town revenue. If the town does not receive a response by the expiration of the 180 days, the funds shall be revenue to the town water or sewer facilities or as allowed by law. (Ord. 669 § 1, 2006).

13.20.160 No appeal.

There is no administrative appeal of decisions made under this chapter. (Ord. 669 § 1, 2006).