Chapter 13.30
DEVELOPER REIMBURSEMENT AGREEMENTS
Sections:
13.30.030 Application for developer reimbursement agreement.
13.30.040 Assessment reimbursement area and charge.
13.30.050 Implementation of developer reimbursement agreement.
13.30.060 Rights and nonliability of city.
13.30.070 Term of developer reimbursement agreements.
13.30.080 Ownership of improvements or systems.
13.30.100 Connection/use prepayment requirement.
13.30.110 Hookup charges—Removal of unauthorized connections or taps.
13.30.120 Payments of developer reimbursement charge.
13.30.010 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. 561 § 1, 1993)
13.30.020 Definitions.
The following definitions shall apply to this chapter:
A. “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.
B. “City” (of Ocean Shores) means the legally incorporated municipality represented by the elected city council and/or designated office or official.
C. “City hearings examiner” shall be the designated official of the city hired to perform the duties set forth in Ocean Shores Municipal Code Chapter 17.61.
D. “Cost of construction” means those costs incurred for design, acquisition or right-of-way and/or easements, labor, materials and installation as required to create an improvement which complies with city ordinance. In event of a disagreement between the city and developer concerning the cost of construction in a particular situation, the determination of the city hearings examiner shall be final. In the event of a hearing, any fees payable to the hearings examiner shall be the responsibility of the developer.
E. “Developer” means an individual or firm who proposes to improve real property within the city.
F. “Developer reimbursement agreement” means a written contract between the city as approved by the city council and executed by the mayor, and one or more developers providing for construction of water, sewer and/or storm drainage and for partial reimbursement to the developer.
G. “Developer reimbursement charge” means a fair charge to be paid by an owner of property within an area benefitted by the private construction of municipal water, sewer and/or storm drainage improvements pursuant to this chapter.
H. “Interest” means the estimated interest rate established at the date of the development reimbursement agreement by the city bond council for municipal tax free bonds.
I. “Property owner” means the legal owner of record at Grays Harbor County assessor’s office on the day the developer reimbursement agreement is signed by the parties.
J. “Water, sewer and storm drainage improvements” means the acquisition of right-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 plant, 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. 561 § 2, 1993)
13.30.030 Application for developer reimbursement agreement.
A. Any property owner, who uses private funds 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 equal to the present building code rate structure.
C. The city will require the applicant to submit a certified statement by a state licensed professional engineer containing an itemization of the total projected cost of the system improvements and a copy of the design drawings and specifications.
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. 561 § 3, 1993)
13.30.040 Assessment reimbursement area and charge.
The city shall formulate a benefit reimbursement area based upon the following:
A. The benefit reimbursement area shall be based upon a determination of which parcels are located so that they may be served by or use such improvement(s), including through laterals or branches connected thereto.
B. The city shall determine the benefit charges for parcels within the benefit reimbursement area by calculating the fair cost of construction of the improvement for each property which might tap, connect or be served by the system(s).
C. A notice containing the benefit reimbursement area boundaries, preliminary charges, and a description of the property owner’s rights to request a public hearing before the hearings examiner with regard to the area boundaries and special benefits, shall be forwarded by registered mail to the property owners as shown on the records of the Grays Harbor County assessor within the proposed benefit reimbursement area. If any property owner requests a hearing in writing within twenty days of the mailing of the notice, a hearing shall be held following the payment of applicable hearing fees by the property owner(s). Notice of such hearing shall be given to all affected property owners.
D. After reviewing the public hearing testimony and preliminary determination of the city, the hearings examiner may approve, modify or reject the benefit reimbursement area and/or charges. The hearings examiner’s determination shall be final.
(Ord. 561 § 4, 1993)
13.30.050 Implementation of developer reimbursement agreement.
A. Upon approval of the developer reimbursement agreement and charges and establishment of the benefit reimbursement area, the applicant may begin construction of the improvements; provided, however, that all other applicable federal, state and local laws have been complied with.
B. 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 against the preliminary assessments established by the city. Upon a showing of good cause, the agreement shall be modified to include cost overruns up to a maximum of ten percent. The agreement shall also be modified to reflect all decreases in cost.
C. The developer reimbursement agreement and a notice of the agreement and charge shall be recorded in the Grays Harbor County auditor’s office within thirty days of the final acceptance of the project cost. The developer shall record the agreement and notice, however, in the event the developer fails to do so the city may record those documents.
D. The city shall mail a copy of the agreement and notice to each owner of record of all properties subject to the developer reimbursement charge. The city shall obtain a notarized affidavit that the agreement and notice have been properly mailed.
E. Once the agreement and notice are recorded and mailed, the developer reimbursement agreement and charges shall be binding on all owners of record within the benefit reimbursement area.
(Ord. 561 § 5, 1993)
13.30.060 Rights and nonliability of city.
The city reserves the right to refuse to enter into any developer reimbursement agreement or to reject any application thereof. 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. 561 § 6, 1993)
13.30.070 Term of developer reimbursement agreements.
No developer reimbursement agreement shall extend for a period longer than fifteen years from the date of the agreement. (Ord. 561 § 7, 1993)
13.30.080 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 the Ocean Shores Municipal Code.
B. A copy of the engineer “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. 561 § 8, 1993)
13.30.090 Defective work.
The applicant or his assignee shall be responsible for all work found to be defective within one year 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” to the city in the amount of ten percent of the value of the water, sewer and/or storm drainage system(s) to be in effect for a period of one year 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. 561 § 9, 1993)
13.30.100 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 interest and administrative costs as defined in the agreement.
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. 561 § 10, 1993)
13.30.110 Hookup charges—Removal of unauthorized connections or taps.
A. 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.
B. If the developer reimbursement charge is paid within ninety days from the date of execution of the agreement, no interest is payable. Otherwise, interest is payable from the date of execution of the agreement to the date of payment of the charge.
C. The rate of interest will be the rate payable on municipal tax free bonds at the time the city signs the developer reimbursement agreement as established by the city bond council.
D. Interest is calculated on the basis of a three-hundred-sixty-five day year and is not compounded.
(Ord. 561 § 11, 1993)
13.30.120 Payments of developer reimbursement charge.
A. Each payment of the developer reimbursement charge shall be made to the city including interest. The city shall pay the amounts due the developer within sixty days of receipt.
B. When the developer reimbursement fee for a particular parcel has been paid, at the request of the payor, the city shall approve a certification of payment which may be recorded.
C. Throughout the term of the agreement the developer shall certify annually 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 annual 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.
(Ord. 561 § 12, 1993)
13.30.130 Violation—Penalty.
Any violation of the provisions of this chapter shall be a Class C offense as defined by Ocean Shores Municipal Code Section 7.01.050. (Ord. 561 § 14, 1993)
13.30.140 Severability.
If any section, sentence, clause or phrase of this chapter should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause, or phrase of this chapter. (Ord. 561 § 15, 1993)