Chapter 15.13
REIMBURSEMENT AGREEMENTS WITHIN THE CITY OF LAKEPORT
Sections:
15.13.010 Supplemental sizing of improvements.
15.13.020 Public improvement reimbursement agreement and procedure.
15.13.030 Action by city council.
15.13.040 Contents of public improvement reimbursement agreements.
15.13.050 Payment by benefited property owner.
15.13.060 Reimbursement for projects within major projects financing plan.
15.13.010 Supplemental sizing of improvements.
Improvements to be installed by the subdivider or land developer for any parcel or parcels of property for the benefit of the subdivision or single parcel to be developed shall contain supplemental size, capacity, number and length for the benefit of property not within the subdivision or single parcel to be developed as determined to be necessary by the city engineer. Such improvements shall be dedicated to the public. (Ord. 831 (part), 2004)
15.13.020 Public improvement reimbursement agreement and procedure.
A. General. If a property owner is required to construct public improvements as a condition of approval of a proposed development and the required public improvements have the capacity and capability of serving and are designed to serve additional properties not within the proposed development and to directly benefit other properties in the vicinity, the property owner may apply to the city for a reimbursement agreement as provided in this chapter. For the purpose of this chapter, the geographical area which benefits by a privately financed public improvement shall constitute the “benefit district.”
B. Application. A person requesting a reimbursement agreement shall submit an application on a form provided by the city and shall provide information as required by the city engineer, including the area of the proposed benefit district. A person may not request, and the city council may not approve, a public improvement reimbursement agreement after the date construction begins on a public improvement.
C. Notice and Hearing. The city council shall hold a public hearing on the application. At least ten days before the hearing the city shall notify each affected property owner in writing, advising of the hearing and providing a copy of the proposed reimbursement agreement and staff report which will be submitted to the council.
D. 1. In this subsection, “affected property owner” means: (1) the record owner (as shown on the latest county assessor’s secured real property assessment roll) of each property within the proposed benefit district; and (2) the property owner or developer who installs or pays for installation of public improvements within a benefit district.
2. An affected property owner may file written or oral comments or objections to the application before or at the hearing. No property may be added to a benefit district unless the notice is sent to the affected property owner. Failure to receive the notice required by this section shall not invalidate the reimbursement agreement. (Ord. 831 (part), 2004)
15.13.030 Action by city council.
A. After the public hearing, the city council may by resolution grant, grant with modifications, or deny approval of a reimbursement agreement. Before granting approval, the city council shall make each of these findings:
1. The improvement for which reimbursement is sought is a public improvement which will, upon completion, be accepted by the city;
2. The improvement is not located within the boundaries of the proposed development;
3. The public improvement has the capacity and capability of serving and is designed to serve additional properties not within the proposed development due to the supplemental size, capacity, number or length of the improvement;
4. The proposed benefit district represents a geographical area of property which will benefit directly and substantially by the public improvement;
5. The method of determining contribution and the amount of contribution is fair and reasonable to both the financing party and the benefited property owner and fairly distributes the charge among all subject parcels in proportion to the estimated benefit each will receive from the proposed improvement;
6. Upon approval by the city council, the approved public improvement reimbursement agreement, including a list of benefited properties, shall be recorded in the office of the county recorder. (Ord. 831 (part), 2004)
15.13.040 Contents of public improvement reimbursement agreements.
A public improvement reimbursement agreement shall include, but is not limited to, the following provisions:
A. A statement of the total construction cost, the applicant’s equitable share of the cost, and the amount of the total cost eligible for reimbursement;
B. A map approved by the city engineer showing each property included within the benefit district and a list of each property by county assessor parcel number and address;
C. The method of spreading the eligible reimbursement cost to be charged under the agreement to properties within the benefit district and the rate of interest or appreciation to be added to initial charges during the period of the agreement;
D. A provision indicating who the financing party is for the purpose of receiving reimbursement, i.e., whether the developer or the property owner of record at the time the reimbursement is made. (This may depend upon whether the public improvement is financed by the developer or by individual property owners through an assessment district);
E. The date on which the reimbursement agreement takes effect and benefited property owners begin contributions;
F. A statement that no reimbursement charges collected by the city may be distributed to a financing party until the public improvement is completed and accepted by the city;
G. A list of the administrative costs, if any, to be charged by the city to administer the agreement. These costs may be shown as a percentage of the charges collected by the city;
H. A provision that reimbursement to the financing party shall be paid only from charges collected by the city under the agreement from the benefited properties listed in the agreement as such properties receive a land use entitlement. Reimbursement to the financing party shall be paid only from such charges collected within ten years from the date the agreement becomes effective, unless a different time period is approved by the city council; and
I. A provision that the city is not liable to the financing party for failure of the city to collect a reimbursement charge due from a property or because of legal inability of the city to collect the charge from a property. (Ord. 831 (part), 2004)
15.13.050 Payment by benefited property owner.
For the purposes of this chapter, “benefited property” means a property within a benefit district for which no contribution to the cost of public improvement was made at the time of its construction. Benefited property includes property owned by a public agency. Payment by benefited property owner(s) shall be as set forth below:
A. A benefited property owner shall pay to the city the applicable contribution charge set forth in the agreement whenever that person obtains a land use entitlement. The charge is payable at the time the entitlement is granted. A land use entitlement includes a permit or approval granted by the city for the development of property, including a subdivision map approval, land use permit, development plan approval, or building permit.
B. The contribution charge applies only:
1. After the reimbursement agreement is recorded;
2. During the period a reimbursement agreement is in effect; and
3. If the city engineer determines that the land use entitlement involves the scope and type of development contemplated by the agreement. Payment of the contribution charge is not required as a condition of issuing a land use entitlement for the alteration or enlargement of an existing building or structure (or the erection of an accessory building or structure) if the work:
a. Is on the same parcel of land,
b. Does not create an additional dwelling unit,
c. Will not change the potential for traffic generation, and
d. In any three-year period will not exceed one-half the value of all existing improvements on that parcel of land.
C. No property may be assessed a double fee under this chapter.
D. A benefited property owner has no obligation to pay a contribution charge if the owner does not develop the property during the effective period of the reimbursement agreement. (Ord. 831 (part), 2004)
15.13.060 Reimbursement for projects within major projects financing plan.
If a property owner is required to construct supplemental improvements and those supplemental improvements are listed as a project in the city’s major projects financing plan, the property owner shall be eligible for reimbursement by the city as set forth in the administrative guidelines for implementing the major projects financing plan. (Ord. 831 (part), 2004)