Chapter 13.20
WATER AND SEWER FACILITIES REIMBURSEMENT AGREEMENTS

Sections:

13.20.010    Purpose.

13.20.020    Definitions.

13.20.030    Water and sewer latecomer reimbursement contracts.

13.20.035    Submittal of latecomer reimbursement request.

13.20.040    Latecomer reimbursement contract to include conditions required in accordance with adopted city policies and standards.

13.20.050    Consistency with comprehensive plan required.

13.20.060    Conditions of connection of the water or sewer facility to the municipal system.

13.20.070    Contract must provide for pro rata reimbursement to owner – Duration of reimbursement period – No extension of reimbursement period.

13.20.080    Property owner entitled to reimbursement to provide current contact information every five years.

13.20.090    Determination of reimbursement area and latecomer fee.

13.20.100    Public hearing.

13.20.110    Latecomer reimbursement contract must be recorded.

13.20.120    Owner to submit total cost of water or sewer facility.

13.20.130    Approval and acceptance of facilities by city.

13.20.140    Latecomer reimbursement fee to be paid prior to tap, connection or use – Removal of tap or connection.

13.20.150    No liability for failure to collect.

13.20.160    Administrative fees.

13.20.010 Purpose.

The purpose of this chapter is to prescribe rules and regulations governing water and sewer latecomer contracts as prescribed by Chapter 35.91 RCW. [Ord. 2020-04 § 2 (Exh. A), 2020].

13.20.020 Definitions.

A. “Latecomer fee” means a charge collected by a municipality, whether separately stated or as part of a connection fee for providing access to a municipal system, against a real property owner who connects to or uses a water or sewer facility subject to a contract created under RCW 35.91.020.

B. “Municipality” means the governing body of any county, city, town, or drainage district.

C. “Water or sewer facilities” means storm, sanitary, pumping stations, and treatment facilities, water mains, hydrants, reservoirs, or appurtenances. [Ord. 2020-04 § 2 (Exh. A), 2020].

13.20.030 Water and sewer latecomer reimbursement contracts.

The city may enter into a water and sewer latecomer reimbursement contract with an owner of real property, when the following conditions apply:

A. The owner elects to install certain water or sewer facilities solely at the owner’s expense.

B. The owner has submitted a request for a latecomer reimbursement contract prior to the approval of the water or sewer facility by the municipality.

C. An ordinance requires that one or more identified water or sewer facilities be constructed in the location of the proposed property development as a prerequisite to further property development.

D.  The facilities are within the corporate limits or within the rural transition area service area. [Ord. 2020-04 § 2 (Exh. A), 2020].

13.20.035 Submittal of latecomer reimbursement request.

The request for a water and sewer latecomer reimbursement contract must, unless otherwise excused by the city, be submitted to the city and approved by the city council prior to the approval of the construction plans for the proposed facility. [Ord. 2020-04 § 2 (Exh. A), 2020].

13.20.040 Latecomer reimbursement contract to include conditions required in accordance with adopted city policies and standards.

The latecomer reimbursement contract must include conditions required by the city in accordance with its adopted policies and standards. [Ord. 2020-04 § 2 (Exh. A), 2020].

13.20.050 Consistency with comprehensive plan required.

The option for the city to enter a water or sewer latecomer contract under CRMC 13.20.040 shall only be applicable if the water or sewer facilities are consistent with all applicable comprehensive plans and development regulations of the city. Unless the city gives the owner written notice of its intent to request a comprehensive plan amendment, the owner must request and secure a comprehensive plan amendment for the water or sewer facility, if required. [Ord. 2020-04 § 2 (Exh. A), 2020].

13.20.060 Conditions of connection of the water or sewer facility to the municipal system.

Connection of the water or sewer facility to the municipal system is subject to the following conditions:

A. The water or sewer facility has been constructed in accordance to plans and specifications approved by the city.

B. The water or sewer facilities have been inspected and approved by the city.

C. The water or sewer facilities have been transferred to the city, without cost to the city, upon acceptance by the city.

D. The owner has fully complied with all of the owner’s obligations under the latecomer reimbursement contract and with the city’s rules and regulations.

E. The owner has provided sufficient security to the city to ensure completion of the water or sewer facility and other performance under the contract.

F. The owner has paid the city all of its costs associated with the water or sewer facility, including, but not limited to, engineering, legal and administrative costs.

G. The city has verified and approved all of the owner’s contracts and costs related to the water or sewer facility.

H. The applicant has dedicated all necessary rights-of-way and recorded easements at the Cowlitz County auditor’s office. [Ord. 2020-04 § 2 (Exh. A), 2020].

13.20.070 Contract must provide for pro rata reimbursement to owner – Duration of reimbursement period – No extension of reimbursement period.

A. The latecomer reimbursement contract shall provide for the pro rata reimbursement, in the amount established in the latecomer reimbursement contract, to the owner or owner’s assigns for a period of 20 years, by any owner of property who (1) did not contribute to the original cost of construction, (2) is within the identified benefited area, and (3) subsequently taps into or uses the water or sewer facilities within the period that the latecomer reimbursement agreement is effective.

B. The latecomer reimbursement contract shall not be extended. [Ord. 2020-04 § 2 (Exh. A), 2020].

13.20.080 Property owner entitled to reimbursement to provide current contact information every five years.

The latecomer reimbursement contract shall include a provision requiring that every five years from the date of execution a property owner entitled to reimbursement under a latecomer reimbursement contract must provide the city with information regarding the current contact name, address and telephone number of the person, company, or partnership that originally entered the contract. If the property owner fails to comply with this requirement within 60 days of the specified time, the city may collect any reimbursement fees owed to the property owner under the contract and deposit such funds in the city’s water/sewer capital fund. [Ord. 2020-04 § 2 (Exh. A), 2020].

13.20.090 Determination of reimbursement area and latecomer fee.

A. The public works director or authorized agent shall determine the boundaries of the reimbursement area for all applications based upon the identification of parcels located so that they may subsequently tap into or use the same.

B. The amount of the latecomer fee shall be established in the contract so that each property subject to the latecomer fee will pay a fair pro rata share of the costs of the improvements as determined by any appropriate method, including but not limited to determining the total capacity of the water or sewer improvements expressed in equivalent residential units (ERUs), the average amount of water used by a single-family dwelling that is connected to the Castle Rock water system, and dividing the total cost by the number of ERUs created by construction or added by improvement of the water or sewer facility or by some other equitable way that is allowed by Chapter 35.91 RCW.

C. The amount of the proposed latecomer reimbursement fee shall be estimated on the best information available at any public hearing. The actual latecomer reimbursement fee shall be determined after construction and verification of all costs by the developer. The agreed amount of the latecomer fee can be less than the calculated amount, but never more as agreed upon by the city and the developer. The developer can request the latecomer fee to be lowered at any time, but it can never be raised. [Ord. 2020-04 § 2 (Exh. A), 2020].

13.20.100 Public hearing.

A preliminary determination of the assessment reimbursement area boundaries and assessments, along with a description of property owners’ rights and options, must be sent by the developer by certified mail to each owner of record of real property within the proposed assessment reimbursement area. Owners of property within the proposed area may request a public hearing by submitting a written request to the city within 20 calendar days of the preliminary determination’s mailing. If a written request is submitted, the city council must hold a public hearing on the assessment reimbursement area. Notice of the hearing must be provided to all affected property owners. Any rulings of the city council are determinative and final, subject to judicial review. [Ord. 2020-04 § 2 (Exh. A), 2020].

13.20.110 Latecomer reimbursement contract must be recorded.

A. Prior to the collection of any latecomer fees, the latecomer reimbursement contract agreement must be recorded with the Cowlitz County auditor. It shall be the sole responsibility of the applicant to record the reimbursement agreement.

B. Within 30 days after receipt of evidence that the latecomer reimbursement contract has been recorded, the public works director shall record a notice of additional water or sewer facility tap or connection charges with the Cowlitz County auditor’s office as required by RCW 65.08.170. [Ord. 2020-04 § 2 (Exh. A), 2020].

13.20.120 Owner to submit total cost of water or sewer facility.

Within 120 days of the completion of a water or sewer facility, the owner of the real estate must submit the total cost of the water or sewer facility to the city. The city shall use the total cost as the basis for determination of the actual latecomer reimbursement fee to be paid by owners of real property who subsequently tap into or use the contracted water or sewer facilities and who did not contribute to the original cost of construction. [Ord. 2020-04 § 2 (Exh. A), 2020].

13.20.130 Approval and acceptance of facilities by city.

Upon completion of the water and sewer facilities constructed pursuant to a water or sewer latecomer reimbursement contract in accordance with the approved plans and specifications and requirements of the contract, the city council shall approve and accept such facilities. [Ord. 2020-04 § 2 (Exh. A), 2020].

13.20.140 Latecomer reimbursement fee to be paid prior to tap, connection or use – Removal of tap or connection.

A. No person, firm or corporation shall be granted a permit or otherwise authorized to tap into or use any water or sewer facilities subject to a latecomer reimbursement contract without first paying to the city, in addition to any and all other costs and charges made or assessed for such tap or use, the latecomer fee required by the provisions of the latecomer reimbursement contract under which such facilities were constructed.

B. All amounts so collected by the city shall be paid out under the terms of the latecomer reimbursement contract within 60 days after receipt.

C. Whenever any tap or connection is made into any such contracted water or sewer facility without the latecomer fee having been first paid, the city may remove, or cause to be removed, such unauthorized tap or connection and all pipe located in the facility right-of-way and dispose of unauthorized material so removed without any liability whatsoever. [Ord. 2020-04 § 2 (Exh. A), 2020].

13.20.150 No liability for failure to collect.

The city shall have no liability to any person, corporation or partnership entitled to payment of latecomer fees collected by the city for the city’s failure to collect latecomer fees unless such failure was willful or intentional. [Ord. 2020-04 § 2 (Exh. A), 2020].

13.20.160 Administrative fees.

The city may collect such fees as are reasonable and proportionate to the expenses incurred when administering this chapter. These fees may include, but are not necessarily limited to, application fees and administrative fees associated with the approval, collection and disbursement of latecomer payments. Administrative fees shall be adopted by resolution. [Ord. 2020-04 § 2 (Exh. A), 2020].