Chapter 15.40
REIMBURSEMENT AGREEMENTS
Sections:
15.40.010 Supplemental sizing of improvements.
15.40.020 Reimbursement agreement upon approval.
15.40.030 Terms of reimbursement agreement.
15.40.040 Methods of paying reimbursement amount.
15.40.050 Determination of benefit.
15.40.010 Supplemental sizing of improvements.
Improvements to be installed by the subdivider or land developer of any parcel or parcels of property for the benefit of the subdivision or parcels to be developed shall contain supplemental size, capacity, number, and length for the benefit of property not within the subdivision or parcels being developed, as determined to be necessary by the city engineer. Such improvements shall be dedicated to the public. The benefited properties not within the subdivision or parcels to be developed are referred to in this chapter as the "benefited properties." This chapter is adopted pursuant to Government Code Sections 66485 through 66487. (Ord. 824 § 1 (part), 1991).
15.40.020 Reimbursement agreement upon approval.
When a subdivider or developer is required to provide supplemental size, capacity, number or length in excess of the construction required for the subdivision or parcels to be developed, for the benefit of property not within the subdivision or parcels being developed, the city shall, upon recommendation by the city engineer and approval of the City Council, enter into an agreement with the subdivider or land developer to reimburse the subdivider or land developer for that portion of the cost of such improvements equal to the difference between the amount it would have cost the subdivider or land developer to install such improvements to serve the subdivision or parcels being developed only, and the actual cost of such improvements. This difference is referred to in this chapter as the "reimbursement amount." The agreement may, but shall not necessarily, provide for payment to the subdivider or developer of an amount attributable to interest, as the City Council may direct. (Ord. 824 § 1 (part), 1991).
15.40.030 Terms of reimbursement agreement.
The reimbursement agreement shall include at least the following provisions:
(1) The city shall be obligated to make reimbursements to the subdivider or land developer when and as the city obtains funds from the owners of benefited properties (hereafter called benefited property owners) as such property owners eventually develop their properties.
(2) Funds paid to the city by benefited property owners need not be paid to the subdivider or developer until the limitations period for instituting legal action seeking refund of funds paid under protests has run and no court action has been instituted. If an action is instituted, the city shall not pay such funds to the subdivider or developer until the action has been completed and the authority of the city to collect such charges sustained.
(3) The city shall have the right to turn over the defense of any action seeking refund of amounts paid under protest, to the subdivider or land developer. If the subdivider or land developer fails to undertake defense of the action at its expense, the city may return the amounts so paid under protest, and the city shall not be further obligated to subdivider or land developer as to funds so refunded.
(4) In the event a court action is maintained to prevent the city from collecting such funds from benefited property owners, the city shall have the right to tender the defense of the action to the subdivider or developer, who shall agree to hold the city harmless from any and all liability thereunder. In the event the subdivider or land developer fails to undertake defense of the action at its sole expense, and to agree to indemnify the city from liability, the city may cease collecting such funds, or enter into any other settlement of the litigation acceptable to the city, and the subdivider or land developer shall lose any right to reimbursement of such funds under the reimbursement agreement.
(5) Except as above provided, the reimbursement agreement shall provide for reimbursement of all funds when and as collected unless the City Council otherwise determines. Under no circumstances shall the city be deemed liable for any funds not collected from benefited property owners. (Ord. 824 1 (part), 1991).
15.40.040 Methods of paying reimbursement amount.
(1) Collect from each of the benefited property owners, including public agencies, a reasonable charge for such owners’ apportioned share of the reimbursement amount. Collection of these charges may be deferred until such time as the benefited property owners improve their property through construction or subdivision;
(2) Contribute to the subdivider or developer part or all of the reimbursement amount. The City Council may levy charges upon the benefited properties in accordance with the following section to reimburse the city for its contributions, together with interest thereon;
(3) Establish and maintain local benefit districts for the levy and collection of such charge or costs from the property benefited. (Ord. 824 1 (part), 1991).
15.40.050 Determination of benefit.
Prior to entering into a reimbursement agreement pursuant to this chapter, the City Council shall receive a report from the city engineer describing in detail the area outside the subdivision or parcels to be developed which is benefited by the supplemental sizing, capacity, number or length of improvements required, and recommending apportionment of the reimbursement amount among the benefited properties. The apportionment of benefit shall be on the basis of frontage upon such improvements, acreage served by such improvements, or any other formula rationally related to actual benefit. The City Council may approve the report as submitted, or modify the report, and the action of the City Council thereon shall determine the benefit to each of the benefited properties, the amount or amounts to be charged such properties, and the method of collection of such charges.
15.40.060 Public hearing.
In determining the benefit to the benefited properties, the City Council shall, unless consent of all affected property owners is filed with the city, hold a public hearing thereon and give notice by mail to property owners of record who would be affected by such determination, and provide to all such property owners an opportunity to appear and be heard upon the proposed determination of benefit and method of apportioning of costs thereof. Notices shall be sent to affected property owners of record as shown on the last equalized assessment roll at least thirty (30) days prior to the hearing. Affected property owners include the owners of the subdivision, the parcels to be developed, and the benefited property. (Ord. 824 1 (part), 1991).