Chapter 16.165
REIMBURSEMENT AGREEMENTS

Sections:

16.165.010    Reimbursement agreements – Subdivisions.

16.165.020    Reimbursement agreements – Development projects other than subdivisions.

16.165.030    Bidding procedures and award of contract.

16.165.040    Payment of costs required by reimbursement agreement.

16.165.010 Reimbursement agreements – Subdivisions.

In connection with the approval of development projects involving subdivisions, the City may, pursuant to Government Code Section 66485, require that improvements installed by a subdivider for the benefit of a subdivision contain supplemental size, capacity, number or length for the benefit of property not within the subdivision, and that those improvements be dedicated to the public. If such improvements are required by the City, the City Council, upon recommendation of the City Engineer, shall authorize an agreement with the subdivider to reimburse the subdivider for that portion of the cost of the improvements, including an amount attributable to interest, in excess of the construction required for the subdivision. (Ord. 1376 § 3, 2009; Ord. 836 § 2, 1989. Formerly 13.12.010)

16.165.020 Reimbursement agreements – Development projects other than subdivisions.

In connection with the approval of development projects other than subdivisions, the City Engineer may recommend that the City Council, by the adoption of a resolution or the approval of an agreement, authorize reimbursement to a developer, including a school district, special assessment district, or other person or entity, either by direct payment or deferred reimbursement, for a portion of the cost of constructing facilities which will directly benefit properties in an area outside the area to be served by the subject development project, and the facilities, when completed, will be dedicated or conveyed to the City or to another public entity designated by the City. Such authorization action shall conform to the requirements of the applicable state laws and may include the establishment of a reimbursement district, local benefit district, or an area of benefit and the rates, fees or charges to be applied, whether actual or estimated. (Ord. 1376 § 3, 2009; Ord. 836 § 2, 1989. Formerly 13.12.020)

16.165.030 Bidding procedures and award of contract.

(A) The procedure for the receipt of bids and the award of contract for improvements or facilities subject to a reimbursement agreement and which are to be constructed by a special assessment district or any public agency directly controlled by state law shall be as required by the particular laws applicable.

(B) The procedure for the receipt of bids and the award of contract for improvements or facilities subject to a reimbursement agreement and which are to be constructed pursuant to private contract let by a subdivider or developer which is an independent contractor, and neither a public agency, nor an agent of the City, shall be subject to review by the City Engineer in order to ensure that actual total cost of construction is fair, reasonable and consistent with estimated costs which are to be allocated or apportioned to properties within the area of benefit. Such review authority shall not be construed as the exercise of direction, supervision or control by the City over the construction, pursuant to private contract, of the subject improvement or facilities. The procedure subject to review by the City Engineer may include or require the following:

(1) Submittal of bid documents to the City Engineer for review and comment before being transmitted to prospective bidders;

(2) To the extent practicable, obtaining sealed bids from at least three bidders. Prospective bidders may be prequalified in accordance with guidelines submitted by the subdivider or developer and approved by the City Engineer. Prequalification guidelines shall be designed to ensure that bidders possess the requisite experience, skill, safety record, resources and financial capability, and the ready access to materials and labor, to assure timely and satisfactory completion of the improvements or facilities in accordance with the bid documents and to optimize economic benefits to the affected property owners;

(3) Advance notice to the City Engineer of the time and place for the opening of bids as to afford a reasonable opportunity to attend such opening;

(4) The opportunity for the City Engineer to review all bids submitted and to determine whether the successful bidder, as designated by the subdivider or developer, has submitted a bid which is fair, reasonable and consistent with the estimated costs which are to be allocated or apportioned to properties within the area of benefit in accordance with the terms and provisions of the reimbursement agreement. If such a determination cannot be made by the City Engineer, reimbursement of actual total costs incurred in constructing the improvements or facilities shall be subject to appropriate reduction. (Ord. 1376 § 3, 2009; Ord. 836 § 2, 1989. Formerly 13.12.030)

16.165.040 Payment of costs required by reimbursement agreement.

In order to pay the costs as required by any reimbursement agreement authorized pursuant to this chapter, the City may:

(A) Collect from other persons, including public agencies, using such improvements or facilities for the benefit of real property not within the subdivision or other development project area, a reasonable charge for such use;

(B) Contribute to the subdivider or developer that part of the cost of the improvements or facilities that is attributable to the benefit of real property outside the subdivision or other development project area and levy a charge upon the real property benefited to reimburse the City for such cost, together with interest thereon, if any, paid to the subdivider or developer;

(C) Establish and maintain reimbursement districts, local benefit districts, or areas of benefit for the levy and collection of such charge or costs from the property benefited. (Ord. 1376 § 3, 2009; Ord. 836 § 2, 1989. Formerly 13.12.040)