Chapter 13.24
DEVELOPER REIMBURSEMENT AGREEMENTS
Sections:
13.24.030 Application for developer reimbursement agreement.
13.24.040 Assessment reimbursement area and charge.
13.24.050 Implementation of developer reimbursement agreement.
13.24.060 Rights and nonliability of city.
13.24.070 Term of developer reimbursement agreements.
13.24.080 Ownership of improvements or systems.
13.24.100 Connection/use prepayment requirement.
13.24.110 Hook-up charges – Removal of unauthorized connections or taps.
13.24.120 Payments of developer reimbursement charge.
13.24.010 Purpose.
The purpose of this chapter is to define the rules and regulations for executing contracts between the city and developer(s) for private construction of municipal water, sewer, and storm drainage by providing for means for partial cost recovery through a charge to later users of the systems who did not contribute to the capital costs thereof and for establishing reimbursement areas defining which property is subject to such charges. [Ord. 577 § 1, 1997.]
13.24.020 Definitions.
“Benefit area” means that area which includes parcels of real estate adjacent to, or likely to require connection to or service by, improvements made by the developer who has applied to the city for a developer reimbursement agreement pursuant to this chapter.
“City” (of Granite Falls) shall mean the legally incorporated municipality represented by the elected city council and/or designed office or officials.
“Cost of construction” means those costs incurred for design, acquisition of right-of-way and/or easements, labor, materials and installation as required to create an improvement which complies with city ordinance.
“Developer” shall mean an individual or firm who proposes to improve real property within the city.
“Developer reimbursement agreement” means a written contract between the city, as approved by the city council and executed by the city manager, and one or more developers providing for construction of water, sewer, and/or storm drainage and for partial reimbursement to the developer.
“Developer reimbursement charge” means a fair charge to be paid by an owner of property within an area benefited by the private construction of municipal water, sewer, and/or storm drainage improvements pursuant to this chapter.
“Property owner” shall mean the legal owner of record at the Snohomish County assessor’s office on the day the developer reimbursement agreement is signed by the parties.
“Water, sewer and storm drainage improvements” means the acquisition of rights-of-way and/or easements, design, inspection and installation of improvements and includes the following:
(1) “Water system improvements” includes such things as reservoirs, wells, mains and appurtenances such as, but not limited to, valves, fire hydrants, pumping stations and pressure reducing stations;
(2) “Sewer system improvements” includes, but is not limited to, such things as treatment plants, mains, retention/detention facilities, pumping stations, inlets, catch basins, ditches, swales, and manholes;
(3) “Storm drainage improvements” includes, but is not limited to, such things as mains, retention/detention facilities, pumping stations, inlets, catch basins, ditches, swales and manholes. [Ord. 904 § 20, 2015; Ord. 577 § 2, 1997.]
13.24.030 Application for developer reimbursement agreement.
(A) Any property owner, who uses private funds in an amount greater than $10,000 to construct water, sewer and/or storm drainage improvements to connect to existing city water, sewer, or storm drainage for the purpose of serving the area in which the real property of such owner is located, may apply to the city to establish a developer reimbursement agreement in order to recover a share of the costs from subsequent users of the system(s).
(B) Each application must be on a form prescribed by the city and must be accompanied by a nonrefundable application fee in the amount of $500.00.
(C) The city will require the applicant to submit contracts and costs to the city for verification.
(D) To be eligible for processing, applications for developer reimbursement agreements must be in compliance with all applicable federal, state and local laws, rules and regulations including but not limited to building codes and environmental laws.
(E) The proposed improvements must be consistent with the city’s comprehensive plan, utility plan and/or transportation plan.
(F) The city must have the capability and capacity to service the water, sewer and/or storm drainage. [Ord. 943 § 1, 2018; Ord. 577 § 3, 1997.]
13.24.040 Assessment reimbursement area and charge.
The developer shall formulate a benefit reimbursement area, and the city staff shall approve the benefit reimbursement area and determine charges in accordance with law. [Ord. 943 § 2, 2018; Ord. 577 § 4, 1997.]
13.24.050 Implementation of developer reimbursement agreement.
(A) After the construction has been completed and accepted by the city in accordance with the terms of the developer reimbursement agreement, the final cost of the improvements shall be reviewed and approved by the city.
(B) The developer reimbursement agreement shall be recorded in the Snohomish County auditor’s office within 30 days of the final acceptance of the project cost. The developer shall record the agreement.
(C) Once the agreement is recorded, the developer reimbursement agreement and charges shall be binding on all owners of record within the benefit reimbursement area. [Ord. 943 § 3, 2018; Ord. 577 § 5, 1997.]
13.24.060 Rights and nonliability of city.
A developer shall be entitled to reimbursement by agreement as provided by Chapter 35.91 RCW and this chapter. All applicants for developer reimbursement agreements shall be required to provide a written release, indemnification and hold harmless agreement releasing and indemnifying the city from all claims of any nature including property damage and personal injury arising out of the execution, establishment, enforcement and implementation of such agreement including claims arising during the course of construction and during the one-year warranty period following acceptance of the improvements by the city. Such indemnification shall include attorney fees and costs reasonably incurred in the defense of such action. The city shall not be responsible for locating any beneficiary or survivor entitled to benefits under the developer reimbursement agreement. Any collected funds not claimed by the developer prior to the expiration of a developer reimbursement agreement shall revert to the benefit of the appropriate utility and/or fund approved by the city council. [Ord. 942 § 1, 2018; Ord. 577 § 6, 1997.]
13.24.070 Term of developer reimbursement agreements.
Developer reimbursement agreements shall extend for a period of 20 years and may be extended as authorized by Chapter 35.91 RCW. [Ord. 942 § 2, 2018; Ord. 577 § 7, 1997.]
13.24.080 Ownership of improvements or systems.
(A) Upon approval of a developer reimbursement agreement and the completion and acceptance of the construction, the improvement(s) and/or system(s) shall become the property of the city. In addition, the city shall charge and receive all fees or charges as authorized by Granite Falls ordinance.
(B) A copy of the engineering “as built” plans, specifications and drawings, including all necessary right-of-way and easement documents, shall be provided to the city prior to acceptance of the water, sewer, and/or storm drainage facilities. In addition to the documents detailed above, the developer shall deliver to the city reproducible copies of all plans and specifications.
(C) No connection to, or other use of, the facilities will be allowed or permitted until the city has officially accepted the construction.
(D) Transfer of ownership to the city shall be clear of all encumbrances. [Ord. 577 § 8, 1997.]
13.24.090 Defective work.
The applicant or his assignee shall be responsible for all work found to be defective within two years after the date of acceptance of the improvements by the city. The applicant, or his designee, shall provide the city with a Washington Surety “Maintenance Guaranty Bond” in the amount of 10 percent of the value of the water, sewer, and/or storm drainage system(s) to be in effect for a period of two years from the date of final approval and acceptance of the system(s). If the applicant does not correct the work within a reasonable period of time after notice of the defect, the city shall be reimbursed for costs of correcting such defective work either by the applicant or by the bond proceeds. [Ord. 577 § 9, 1997.]
13.24.100 Connection/use prepayment requirement.
(A) Connection to or use of the system(s) shall be prohibited and development permission shall not be granted, unless the city has received payment of the developer reimbursement charge, including administrative cost, as established by resolution of the city council.
(B) The city will exercise its best efforts to assure compliance with this section; however, in no event shall the city incur liability for an unauthorized connection to or use of the facilities. [Ord. 802 § 1, 2010; Ord. 577 § 10, 1997.]
13.24.110 Hook-up charges – Removal of unauthorized connections or taps.
Where any tap or connection is made into any water, sewer and/or storm drainage system(s) without payment being made as required by this chapter, the city may cause to be removed such unauthorized tap or connection without any liability to the city or city officials. [Ord. 577 § 11, 1997.]
13.24.120 Payments of developer reimbursement charge.
(A) Each payment of the developer reimbursement charge shall be made to the city. The city shall pay the amounts due the developer within 60 days.
(B) Throughout the term of the agreement the developer shall certify biannually in January the name(s) and address(es) of the beneficiary of any reimbursement charge. The city is not responsible for locating beneficiaries to benefits under any agreement. Failure to receive the biannual certification required under this subsection shall give the city cause to refuse to make payment under the agreement. The developer may not assign any rights under the reimbursement agreement without the written consent of the city which will not be unreasonably withheld. Absent certification as required in this subsection, the city may collect the reimbursement charge and deposit the same in the city’s capital improvement fund. [Ord. 942 § 3, 2018; Ord. 577 § 12, 1997.]