Chapter 13.24
REIMBURSEMENT FOR PERMANENT IMPROVEMENTS
Sections:
13.24.030 Application requirements.
13.24.040 Form and content of agreement.
13.24.060 Decision of City Council.
13.24.070 Payment for reimbursement.
13.24.080 Administrative cost.
13.24.100 Recordation of agreement.
13.24.010 Policy.
The City Council finds and determines that where property owner(s) desire or are required to extend or develop permanent improvements that benefit other properties not participating in the cost of the improvements, the owner(s) may be eligible to enter into a reimbursement agreement as provided in this chapter. This chapter shall not be applicable to mandatory reimbursement for improvements of supplemental size, capacity, number or length as required by Government Code Section 66486. (Ord. 158, 1985)
13.24.020 Definitions.
As used in this chapter:
A. “Administrative cost” means expenses and services provided by the City in the management of the reimbursement agreements.
B. “Agreement” means an agreement to reimburse property owner(s) for development or extension of permanent improvements that benefit other properties.
C. “Benefit area” means the area of benefit approved by the City Engineer that would be assessed for the cost of the permanent improvement.
D. “City” means the City of Poway.
E. “Council” means the Mayor and City Council of the City of Poway.
F. “Engineering report” means the reimbursement report prepared by a State-licensed Civil Engineer outlining the benefited area and proposed reimbursement payments.
G. “Estimated construction cost” means the estimated cost of construction as outlined in the engineering report and approved by the City Engineer.
H. “Public improvements” means City drainage, sewer and water systems and public and private streets constructed to City standards.
I. “Reimbursement payment” means the payment to the property owner(s) who paid for the initial construction of the permanent improvement.
J. “Trust fund” means an account established for the deposit of the reimbursement funds during the life of the reimbursement agreement. (Ord. 158, 1985)
13.24.030 Application requirements.
The owner(s) shall provide to the City Engineer a completed reimbursement agreement, which shall be submitted to the City Engineer prior to the acceptance of the improvements by the City. The owner(s) shall also provide a deposit to cover the estimated City administrative costs to review, process and approve the agreement. (Ord. 680 § 1, 2008; Ord. 158, 1985)
13.24.040 Form and content of agreement.
The form and content of the reimbursement agreement shall be prepared to the satisfaction of the City Engineer and City Attorney. The agreement must be prepared with the assistance of a State of California licensed Civil Engineer and contain the following:
A. The legal description of all benefiting properties including the owner’s property;
B. A detailed plat drawn at an engineering scale on legal-size paper showing the precise locations of all improvements and complete dimensions (including frontage) of all benefiting property;
C. A reimbursement schedule to include a list of all benefiting properties with current Tax Assessor’s parcel number, owner’s name, property’s street address, acreage of benefiting parcels and a benefit charge. The amount of the benefit charge assigned to each benefiting parcel shall be subject to the approval of the City Council. The benefit charge assigned to each parcel shall bear a reasonable relationship to the benefit conferred upon that parcel by the improvements and shall bear interest at the rate of five percent per annum, compounded annually;
D. A detailed estimated cost of the design and construction of the permanent improvement;
E. Terms, conditions and covenants of reimbursement and a trust agreement consistent with the requirements of this chapter. (Ord. 158, 1985)
13.24.050 Notice and hearing.
Upon receipt of the agreement proposed by the owner(s), the same shall be referred to the City Engineer, together with a preliminary estimate of the total cost of such improvements. Upon receipt of the application, the City Engineer will review and recommend approval, disapproval or modification thereof. The proposed area of benefit shall include all parcels of land, or parts thereof, within the City, which may be conveniently served by the proposed improvement extension or development. Not less than 10 days prior to the hearing the City Clerk shall notify the owner, or owners, of the land within the benefited area, of a public hearing to be conducted by the City Council of the City of Poway on the question of the feasibility and the necessity for the construction of the subject improvements, and the approval, conditional approval, or denial of the reimbursement agreement. The property owner shall provide address labels for all affected properties and shall pay all fees necessary for notice of the hearing at which the repayment agreement is considered. (Ord. 158, 1985)
13.24.060 Decision of City Council.
After the hearing provided for in PMC 13.24.050, the City Council shall determine in its sole judgment and discretion whether or not the construction of the improvements would be in the best interest of the City and whether the proposed reimbursement agreement shall be approved, conditionally approved, or denied. In any case the City Council will have the final determination as to the amount to be reimbursed through each agreement and the allocation thereof amongst the benefiting parcels. (Ord. 158, 1985)
13.24.070 Payment for reimbursement.
The approved agreement shall provide that the City of Poway shall agree, for a period of 15 years from the date of the agreement, to reimburse to the applicant the following sums:
A. The amount received by the City as a benefit charge, if any, which is collected by the City from owners of benefiting parcels for the privilege of using such improvements, less the administrative cost set forth in PMC 13.24.080. The benefit charge for a parcel shall be collected by the City as a condition of approval of any development of the benefited parcel; provided, that imposition of such conditions shall be reasonably related to such development.
B. The benefit charge for each parcel of land within the benefited area will be determined based upon the engineer’s report prepared by the applicant engineer using standard assessment district formulas, as that report may be approved by the City Council.
C. The City Council retains the right to determine, in its sole discretion, both the total cost of the permanent improvement as well as the fixing of the benefit charge for each parcel.
D. The applicant shall be entitled to receive the reimbursement provided in this section for the period of time specified in this section, or until all payments as specified in the reimbursement agreement have been repaid to the applicant, whichever occurs first. Following full reimbursement to the applicant as provided in this section, or upon automatic termination of the agreement at the end of 15 years from its date, the applicant shall be entitled to no further reimbursements arising out of benefit charges which might be charged by the City, and all payments thereafter accruing shall be and become the property of the City.
E. All reimbursement funds shall be deposited to a trust fund in a local institutional depository. The right of the applicant to payments therefrom shall be personal and shall not run with or be assignable with the lands owned by the applicant.
F. Payments shall be made at such times as are convenient to the City, but in no event less often than annually if the City has received any benefit charges.
G. Payment to the applicant shall include the interest collected from a benefited owner assessed against the benefit charge at a rate of five percent compounded per year. (Ord. 441, 1995; Ord. 158, 1985)
13.24.080 Administrative cost.
An administrative charge of five percent shall be assessed on all reimbursements to cover administrative costs incurred by the City. (Ord. 158, 1985)
13.24.090 Information.
The property owner(s) applying for reimbursement shall be solely responsible for all information needed to process the reimbursement agreement. Any errors or inaccuracies may constitute grounds for the denial of the owner’s application. (Ord. 158, 1985)
13.24.100 Recordation of agreement.
The agreement will be recorded with the County Recorder following full execution of the agreement by all parties. (Ord. 158, 1985)