Chapter 4.30
REIMBURSEMENT AGREEMENTS
Sections:
4.30.030 Reimbursement fee calculation.
4.30.040 Agreement administration.
4.30.010 Eligibility.
(1) A developer may enter into a reimbursement agreement with the District to recover proportionate costs from parcels that receive a direct benefit from utility improvements that were installed as part of an approved developer extension.
(2) Parcels that would be required to execute another DEA for utility service, or with current utility customers that would only be relocated, are not eligible for inclusion unless the reimbursement agreement is for a regional facility such as a sewer lift station.
(3) Parcels beyond the end of the public extension are not eligible for inclusion in a reimbursement agreement unless no further extensions would be required for service in accordance with the most current plans for future service as part of the District’s Water and Wastewater Comprehensive Plans. [Res. 2704 § 1, 2019].
4.30.020 Application process.
(1) A developer may submit an application for a reimbursement agreement within three months of final acceptance of a DEA. The application shall consist of the following items, and partial, incomplete or late applications will not be accepted by the District:
(A) Deposit in the amount of $1,500 to be used for expenses associated with the engineering and legal review, administration, public notification and recording of the agreement, and any other items needed to process the application. These expenses shall be deducted from the deposit on a time and materials basis for actual costs. If the District’s expenses exceed this deposit, the developer shall reimburse the District for its additional expenses within 30 days of notification. The District will refund any remaining deposit upon recording of the reimbursement agreement.
(B) Written request specifying the development extension project, assessment area, and the specific utility facilities (e.g., water and/or sewer) to be included in the reimbursement agreement.
(C) List of participants who have contributed directly to the extension that provides utility service and would not be subsequently charged a reimbursement fee.
(D) Plan sheet(s) showing locations of sewer stubs to property line for participants.
(E) List of parcels to be assessed a reimbursement fee.
(F) Map or plan sheet(s) of involved parcels, both participants and those to be assessed.
(G) Ownership information (e.g., title report or county tax records) for all involved parcels.
(H) Final and actual costs of DEA work in accordance with RCW 57.222.030 to be included in the reimbursement fee calculation. District DEA fees are not eligible for reimbursement costs.
(I) Any other such other information as the District may require. [Res. 2704 § 1, 2019].
4.30.030 Reimbursement fee calculation.
(1) The District Board of Commissioners shall determine the reimbursement fees for the individual parcels based on an equitable pro rata share of the construction costs. In determining the proportionate share of cost of construction, the District shall use that method which most fairly allocates that cost among the affected properties. This calculation method may be based on front footage length, parcel area (gross or net usable), equivalent residential units (ERU), or other methods as deemed appropriate for the situation.
(A) Front Footage Method Considerations.
(i) Regardless of pipe length along the frontage, the parcel will be assessed on the entire frontage length or a 75-foot minimum, whichever is greater.
(ii) Parcels with dual frontages that may receive service from either direction will be assessed on the longest side.
(2) The District reserves the right to determine if the benefitted parcels must receive service by subsequently connecting into or otherwise using the facilities constructed under the developer extension agreement, or if these parcels shall be served by other facilities. If the District determines, at its sole discretion, that such properties are better served by other future facilities, then no reimbursement fee shall be owed by that parcel.
(3) The District will make appropriate public outreach efforts to contact all parcels that will be subject to a reimbursement fee. The District will allow a minimum of 30 calendar days for comments from the developer or affected parcels.
(4) A public hearing shall be held on the reimbursement agreement and assessed fees if requested by the developer or the owner of an affected parcel.
(5) The reimbursement agreement shall be recorded by the District on the title of each parcel involved in the assessment area with the Snohomish County Auditor’s office within 30 days of execution. [Res. 2704 § 1, 2019].
4.30.040 Agreement administration.
(1) The reimbursement fees defined in the agreement shall be collected by the District for a period of 15 years from the date of the District’s final acceptance of the facilities constructed under the DEA. Upon the expiration of said period, the reimbursement agreement shall terminate and the District has no further obligation to collect and pay reimbursement fees to developer.
(2) During the life of the reimbursement agreement, the District shall charge and use reasonable efforts to collect reimbursement fees. The District shall deduct 10 percent of the recovered fees to cover costs and expenses incurred in administration of the reimbursement fees for each payment received. District shall remit the remainder of the reimbursement fee to the developer within 60 calendar days after receipt.
(3) Developer agrees that the District not be obligated to make any payment to developer until the reimbursement fee has been received by the District. If any person or entity taps into or connects to the improvement without paying the reimbursement fee, then the District may, at its option, either (A) use the District’s best efforts and due diligence to collect the reimbursement fees, or (B) assign to the developer all of the District’s rights to collect. If the District assigns the collection rights, the developer may thereafter make demand of, receive payment from, and at its sole cost and expense commence legal proceedings against the persons, firm or other entity that has tapped into or connected to the improvements in order to collect the reimbursement fees. Upon assignment of the rights to collect, the District shall be relieved of any further obligations to collect the reimbursement fees for the developer.
(4) Developer agrees that the District shall be authorized to make segregation of or adjustments to the reimbursement fees if a benefited property is divided through an approved land use action. The District shall make the segregation or adjustment generally in accordance with the method used to establish the original reimbursement fees. The segregation or adjustment shall not increase or decrease the total reimbursement fees to be paid. The District may make all such segregation and adjustments without the necessity of further agreement by the developer.
(5) Pursuant to RCW 57.22.020, the developer shall provide the District with information regarding its current contact name, address, and telephone number every two years from the date of contract execution. Undeliverable reimbursement fees shall be deposited to the District’s capital improvement fund and are not eligible for refunds. Upon re-establishment of contact information within the term of the agreement, payment of reimbursement fees to the developer shall resume.
(6) The developer shall not assign its rights and obligations under the reimbursement agreement without the prior written consent of the District. [Res. 2704 § 1, 2019].