Chapter 3.12 LOCAL IMPROVEMENTS

Whenever the city council of the city of Richland provides for making local improvements and for paying for whole or any portion of the cost and expense thereof by levying and collecting special assessments on property especially benefited, the proceedings therefor shall be in accordance with the provisions of an act of the legislature of the state of Washington entitled, “An Act Relating to Local Improvements in Cities and Towns and Repealing Certain Acts and Parts of Acts,” approved March 17, 1911, and acts amendatory thereof (being Chapters 35.43, 35.44, 35.45, 35.49, 35.50 and 35.53 RCW) and the provisions of this chapter and ordinances amendatory thereof. [Ord. 28 § 1.01].

3.12.020 Initiation of improvement – Petition – Resolution.

Any such improvement may be initiated either upon petition or by resolution therefor, but such improvement may be ordered only by ordinance.

In case the improvement is initiated by petition, such petition shall be presented to and filed with the city clerk or such other officer as may be designated by the city council. The city manager shall thereupon examine such petition, determine the sufficiency thereof and ascertain if the facts therein stated are true and shall cause an estimate of the cost and expense of such improvement to be made and shall transmit the same to the city council, together with all papers and information in his possession regarding the same, together with his recommendation thereon and a description of the boundaries of the district and a statement of the proportionate amount of the cost and expense of such improvement which shall be borne by property within the proposed assessment district. In case the petition is sufficient, the city manager shall also submit a diagram showing thereon the lots, tracts or parcels of land and other property which will be especially benefited thereby, and the estimated amount of the cost and expense of such improvement to be borne by each lot, tract or parcel of property; provided, that no such diagram shall be required where such estimates are on file in the office of the city engineer or other designated city office, together with a detailed copy of the preliminary assessment roll and the plans and assessment maps of the proposed improvement.

The city council may initiate such improvement directly by resolution, declaring its intention to order such improvement and setting forth the nature and territorial extent thereof and notifying all persons who may desire to object thereto to appear and present such objections at a meeting of the city council, or a committee thereof, at the time specified in such resolution. Such resolution shall be published in at least two consecutive issues of the official newspaper, in a newspaper of general circulation within the city, and the date of hearing thereon shall be at least 15 days after the date of the first publication of the resolution. The city manager shall submit to the city council, at or prior to the date fixed for such hearing, the same data and information required to be submitted in the case of a petition.

Notice of the hearing upon such resolution shall be given by mail at least 15 days before the day fixed for hearing to the owners or reputed owners of all lots, tracts, and parcels of land or other property to be specially benefited by the proposed improvement, as shown on the rolls of the county treasurer, directed to the address thereon shown. The notice shall set forth the nature of the proposed improvement, the estimated cost and the estimated benefits of the particular lot, tract or parcel.

The city council may by ordinance authorize the making of any such improvement and, in case of an improvement initiated by resolution of the city council, such ordinance may be passed on or at any time after the date of the hearing specified in the resolution. [Ord. 28 § 1.02; Ord. 741 § 1.01].

3.12.025 Inclusion of street lighting improvements within local improvement districts.

After the effective date of the ordinance codified in this section, it shall be the policy of the Richland city council to refuse to give favorable consideration to any LID ordinance proposed pursuant to RCW 35.43.070, involving the construction of streets and/or water and sewer facilities in any new subdivision of the city unless the proposed design thereof includes within such proposal a system of street lights to serve the total area of the proposed LID acceptable in design to the Richland development services department and to the utility services department. [Ord. 54-75 § 1.05].

3.12.030 Establishment of local improvement districts – Enlarged districts.

Every ordinance ordering a local improvement to be paid in whole or in part by assessments against the property specially benefited shall establish a local improvement district to be known as “Local Improvement District No. ____,” which shall embrace as nearly as practicable all the property specially benefited by the improvement.

Unless otherwise provided in the ordinance ordering the improvement, the improvement district shall include all the property between the termini of the improvement abutting upon, adjacent, vicinal or proximate to the street, avenue, lane, alley, boulevard, park drive, parkway, public place or square proposed to be improved to a distance of 90 feet back from the marginal lines thereof or to the centerline of the blocks facing or abutting thereon, whichever is greater (in the case of unplatted property, the distance back shall be the same as in the platted property immediately adjacent thereto); provided, that if the local improvement is such that the special benefits resulting therefrom extend beyond the boundaries as above set forth, the council may create an enlarged district to include as nearly as practicable all the property to be specially benefited by the improvement. The petition or resolution for an enlarged district and all proceedings pursuant thereto shall conform as nearly as is practicable to the provisions relating to local improvement districts generally, except that the petition or resolution must describe it as an enlarged district and state what proportion of the amount to be charged to the property specially benefited shall be charged to the property lying between the termini of the proposed improvement and extending back from the marginal lines thereof, to the middle of the block (or 90 feet back) on each side thereof, and what proportion thereof to the remainder of the enlarged district; provided further, that whenever the nature of the improvement is such that the special benefits conferred on the property are not fairly reflected by the use of the aforesaid termini and zone method, the ordinance ordering the improvement may provide that the assessment shall be made against the property of the district in accordance with the special benefits it will derive from the improvement without regard to the zone and termini method. [Ord. 28 § 1.03].

3.12.040 Making of improvements – Competitive bids.

All local improvements, funds for the making of which are derived in whole or in part from assessments upon property specially benefited, shall be made either by the city itself, or by contract upon competitive bids in the manner provided by law. The city council shall determine whether such local improvement shall be done by contract or the city itself. [Ord. 28 § 1.04].

3.12.050 Manner of assessments.

The cost and expense of any such improvement, or such portion thereof as the city council may determine to be assessed, shall be distributed and assessed against all the property included in such local improvement district, in accordance with the special benefits conferred thereon, and in the manner provided by law. [Ord. 28 § 1.05].

3.12.060 Bonds permitted.

The city council may provide by ordinance for the payment of the whole or any portion of the cost and expense of any local improvement by bonds of the improvement district, but no bonds shall be issued in excess of the cost and expense of the improvement, nor shall they be issued prior to 20 days after the 30 days allowed for the payment of assessments without penalty or interest. [Ord. 28 § 1.06].

3.12.065 Installment notes permitted – Issuance and sale.

The city council may provide by ordinance for the payment of the whole or any portion of the cost and expense of any local improvement by installment notes payable out of the local improvement district fund. Such installment notes may be issued at any time after the 30 days allowed for the payment of assessments without penalty or interest. [Ord. 28 § 1.06; Ord. 196; Ord. 616 § 1.01].

3.12.070 Bonds – Issuance and sale.

Local improvement bonds may be issued to the contractor or sold by the officers authorized by the ordinance directing their issue to do so, in the manner prescribed therein, and at no less than par and accrued interest. Any portion of the bonds of any issue remaining unsold may be issued to the contractor constructing the improvement in payment thereof.

The proceeds of all sales of bonds shall be applied in payment of the cost and expense of the improvement. [Ord. 28 § 1.07].

3.12.080 Warrants – Lien on fund.

The city council may provide by ordinance for the issuance of warrants in payment of the cost and expense of any local improvement district fund. The warrants shall bear interest at the rate of not to exceed eight percent per year and shall be redeemed either in cash or by local improvement bonds or installment notes for the same improvement authorized by ordinance.

All warrants against any local improvement fund sold by the city or issued to a contractor and by him sold or hypothecated for a valuable consideration shall be claims and liens against the improvement fund against which they are drawn prior and superior to any right, lien, or claim of any surety upon the bond or bonds given to the city by or for the contractor to secure the performance of his contract or to secure the payment of persons who have performed work thereon, furnished materials therefor, or provisions and supplies for the carrying on of the work. [Ord. 28 § 1.08; Ord. 196].

3.12.090 Collection of assessment – Local improvement district fund.

All assessments for local improvements shall be collected by the director of finance and shall be kept in a separate fund to be known as “Local Improvement Fund, District No. ____” and shall be used for no other purpose than the redemption of warrants drawn upon the bonds or installment notes issued against the fund to provide payment for the cost and expense of the improvement.

As soon as the assessment roll has been placed in the hands of the director of finance for collection, he shall publish a notice in the official newspaper of the city for 10 consecutive daily or two consecutive weekly issues, or if there is no official newspaper, in a newspaper of general circulation within the city, that the roll is in his hands for collection and that any assessment may be paid within 30 days from the date of the first publication of the notice without penalty, interest or costs. [Ord. 28 § 1.08; Ord. 196].

3.12.095 Segregation of assessments.

Whenever any land against which there has been levied any special assessment shall have been sold in part and subdivided, any person desiring to have a special assessment against a tract of land segregated to apply to smaller parts thereof shall apply to the city for a segregation of assessments pursuant to RCW 35.44.410. A fee of $50.00 shall be tendered with the application for reasonable engineering and clerical costs incident to making the segregation and, in addition, a fee of $10.00 shall be tendered to the finance director for each tract of land for which a segregation is to be made for segregation on the assessment roll. [Ord. 103-76 § 1.03].

3.12.100 Bonds – Installment notes – Assessments.

In all cases where bonds or installment notes are issued to pay the cost and expense of a local improvement, the ordinance levying the assessments shall provide that the sum charged against any lot, tract, and parcel of land or other property, or any portion thereof, may be paid during the 30-day period allowed for the payment of assessments without penalty or interest and that thereafter the sum remaining unpaid may be paid in equal annual installments. The number of installments shall be less by two than the number of years which the bonds or notes issued to pay for the improvement are to run. Interest on the whole amount unpaid at the rate fixed by the ordinance shall be due on the due date of the first installment of principal and each year thereafter on the due date of each installment of principal. The first installment shall become due and payable during the 30-day period succeeding the date one year after the date of first publication of the notice by the director of finance as provided in RMC 3.12.090, and annually thereafter each succeeding installment shall become due and payable in like manner. If the whole or any portion of any assessment remains unpaid after the first 30-day period herein provided for, interest upon the whole unpaid sum shall be charged at the rate to be fixed by the ordinance not exceeding the maximum rate permissible under RCW 19.52.020, and each year thereafter one of such installments, together with interest due upon the whole of the unpaid balance, shall be collected. Any installment not paid prior to the expiration of the 30-day period during which such installment is due and payable shall thereupon become delinquent. All delinquent installments shall be subject to a penalty charge in an amount which shall be equal to the bond or installment note interest rate plus five percent, levied upon both principal and interest due on each installment or installments. [Ord. 28 § 1.10; Ord. 196; Ord. 8-79 § 1.01].

3.12.110 Bond installment plan.

In case the improvement is made on the bond installment plan, the director of finance shall, at the expiration of 30 days after the first publication of the notice to pay assessment, report to the city council the amount collected by him upon the roll and shall specify in the report the amount remaining unpaid upon the roll, and the city council may then, or at a subsequent meeting, by ordinance direct the mayor and city clerk to issue the bonds on the local improvement district established by the ordinance ordering the improvement in an amount equal to the amount remaining unpaid on the assessment. The ordinance shall specify the denomination of the bonds which, except for bond numbered “one,” shall be in multiples of $100.00 each. [Ord. 28 § 1.11; amended during 2011 recodification].

3.12.120 Bonds – Form.

All bonds, unless otherwise specially ordered by the council, issued in pursuance of the provisions of this chapter, may be in substantially the following form:

NO. __________ $____________

UNITED STATES OF AMERICA

STATE OF WASHINGTON

LOCAL IMPROVEMENT BOND

CITY OF RICHLAND

LOCAL IMPROVEMENT DISTRICT NO.

N.B. This bond is issued by virtue of the provisions of RCW 35.45.010 et seq., 35.45.070 of which reads as follows:

“Neither the holder nor the owner of any bond or warrant issued under the provisions of this act shall have any claim therefor against the City or town by which the same is issued, except for payment from the special assessments made for the improvement for which said bond or warrant was issued, and except as against the local improvement guaranty fund of such City or town, and the City or town shall not be liable to any holder or owner of such bond or warrant for any loss to the guaranty fund occurring in the lawful operation thereof by the City or town. The remedy of the holder or owner of a bond or warrant in case of nonpayment, shall be confined to the enforcement of the assessment and to the guaranty fund.”

The City of Richland, a municipal corporation of the State of Washington, hereby promises to pay to ___________ or bearer _________ dollars ($______), in lawful money of the United States, with interest thereon at the rate of _______ per cent per annum, payable annually out of the fund established by Ordinance No. ________ of said City, and known as “Local Improvement Fund, District No. ________,” and not otherwise, except from the guaranty fund, as herein provided. Both principal of and interest on this bond are payable at the office of the Director of Finance of said City.

A coupon is hereto attached for each installment of interest to accrue hereon and said interest shall be paid only on presentation and surrender of such coupon to the Director of Finance.

This bond is payable on the _______ day of _______, 20___, but is subject to call by the director of finance of said City whenever there shall be sufficient money in said Local Improvement Fund to pay the same, and all unpaid bonds of the series of which this bond is one, which are prior to this bond in numerical order, over and above sufficient for the payment of interest on all unpaid bonds of said series. The call for payment of this bond, or of any bond of the series of which this is one, shall be made by the director of finance by publishing the same once in the official newspaper, or, if there is no official newspaper, in a newspaper of general circulation within the City, and when such call is made for the payment of this bond it will be paid on the day the next interest coupon thereon shall become due after said call and upon said day interest upon this bond shall cease and any remaining coupons shall be void.

The City Council of said City as the agent of said Local Improvement District No. _______, established by Ordinance No. _______, has caused this bond to be issued in the name of said City as the bond of said Local Improvement District, the bond or the proceeds thereof to be applied in any part payment of so much of the cost and expense of the improvement of _______, under said Ordinance No. _______, as is levied and assessed against the property included in said Local Improvement District No. _______ and benefited by said improvement and the said Local Improvement Fund has been established by ordinance for said purpose; and the holder or holders of this bond shall look only to said fund and to the Local Government Guaranty Fund of the City of Richland for the payment of either the principal of or interest on this bond.

This bond is one of a series of ______ bonds aggregating in all the principal sum of _______ dollars ($_______), all of which bonds are subject to the same terms and conditions as herein expressed.

IN WITNESS WHEREOF, the City of Richland has caused these presents to be signed by its Mayor and attested by its City Clerk and sealed with its corporate seal this _______ day of _______, 20____.

CITY OF RICHLAND, WASHINGTON

By____________________________

MAYOR

ATTEST:

______________________

CITY CLERK

There shall be attached to each bond such a number of coupons as shall be required to represent the interest thereon payable either annually or semiannually, as the case may be, for the term of said bonds, which coupons shall be substantially in the following form:

On the _______ day of _______, 20____, the CITY OF RICHLAND, STATE OF WASHINGTON, promises to pay to the bearer at the office of the director of finance _______ dollars ($_______), being (six) (twelve) months’ interest due that day on Bond No. _______ of the bonds of Local Improvement District No. _______, and not otherwise provided that this coupon is subject to all the terms and conditions contained in the bond to which it is annexed, and if said bond shall be called for payment before maturity hereof, then this coupon shall be void.”

CITY OF RICHLAND, WASHINGTON

By____________________________

MAYOR

ATTEST:

______________________

CITY CLERK

The director of finance shall keep in his office a register of all such bonds in which he shall enter the local improvement district for which the same are issued and the date, amount and number of each bond and the term of payment. [Ord. 28 § 1.12].

3.12.125 Installment note plan.

In case said improvement is made on the installment note plan, the director of finance shall, at the expiration of 30 days after the first publication of the notice to pay assessment, report to the city council the amount collected by him upon the said roll and shall specify in said report the amount remaining unpaid upon said roll, and the city council may then, or at a subsequent meeting, by ordinance, direct the city manager and city clerk to issue one or more installment notes on the local improvement district established by the ordinance ordering the improvement in an aggregate amount equal to the amount remaining unpaid on said assessment. Said ordinance shall specify the denomination of said notes. [Ord. 28 § 1.12.5; Ord. 196].

3.12.126 Installment notes – Form.

If more than one local improvement installment note is issued for a single district, said notes shall be numbered consecutively. All installment notes issued shall bear on the face thereof: (A) the name of the payee; (B) the number of the local improvement district from whose funds the notes are payable; (C) the date of issue of each note; (D) the date on which the note, or the final installment thereon, shall become due; (E) the rate of interest, not to exceed eight percent, to be paid on the unpaid balance thereof; and (F) the manual signature of the city manager and the attestation of the city clerk.

The reverse side of each installment note issued pursuant to this section shall bear a tabular payment record which shall indicate, at prescribed installment dates, the receipt of any local improvement district funds for the purpose of servicing the debt evidenced by said notes. The tabular payment record shall, in addition to the above, show the unpaid principal balance due on each installment note, together with sufficient space opposite each transaction affecting said note for the manual signature of the director of finance or other properly designated receiving officer of the city. [Ord. 28 § 1.12.6; Ord. 196].

3.12.130 Local improvement guaranty fund created.

In accordance with Chapter 141, Laws of 1923, and acts amendatory thereof (being Chapter 35.54 RCW), the city of Richland hereby establishes and creates a fund for the purpose of guaranteeing, to the extent of such fund, the payment of its bonds and warrants issued to pay for any local improvement ordered in local improvement districts in the city of Richland created subsequent to the effective date of the ordinance codified in this chapter. This fund shall be known and designated as local improvement guaranty fund. [Ord. 29 § 1.01].

3.12.140 Financing fund – Tax levy – Subrogation rights.

After April 6, 1959, there shall be levied, from time to time as other taxes are levied, such sums as may be necessary to meet the financial requirements of the local improvement guaranty fund created by this chapter; and whenever the city of Richland shall have paid out of said guaranty fund any sum on account of principal and interest on a local improvement bond or warrant hereunder guaranteed, the city of Richland, as trustee for such fund, shall be subrogated to all of the rights of the holder of the bond, interest coupon, or warrant so paid; and the proceeds thereof, or of the underlying assessments, shall become a part of said fund. [Ord. 29 § 1.02].

3.12.150 Payment of defaulted interest coupons, bonds, or warrants.

Whenever any interest coupon, bond, or warrant guaranteed under the provisions of the laws of the state of Washington in pursuance of which this chapter is passed shall be in default, the director of finance shall be and is hereby authorized and directed, upon the presentation and delivery of such defaulted coupon, bond, or warrant, to execute, issue in accordance with procedure prescribed by ordinance, and deliver to the person or persons presenting the same, in the order of their presentation, and shall honor and pay, a warrant on the local improvement guaranty fund in such amount as may be necessary to pay in full any such coupon, bond, or warrant with any interest that may be due thereon. Any defaulted coupon, bond or warrant received by the director of finance under the provisions of this chapter shall be held for the benefit of said local improvement guaranty fund. [Ord. 29 § 1.03].

3.12.160 Warrants – Interest – Payment – Limitation.

Warrants drawing interest at a rate not to exceed six percent shall be issued, as other warrants are issued by the city, against the said local improvement guaranty fund to meet any liability accruing against it; and at the time of making its annual budget and tax levy, the city shall provide for the levying of a sum sufficient with the other resources of the fund to pay warrants so issued during the preceding fiscal year. Such warrants shall at no time exceed five percent of the outstanding bond obligations guaranteed by said fund. [Ord. 29 § 1.04].

3.12.170 Financing fund – Interest – Local improvement district fund surplus.

The director of finance is hereby authorized and directed to pay into such local improvement guaranty fund all interest received from bank deposits of said fund, as well as any surplus remaining in any local improvement district fund guaranteed under said state laws after the payment of all outstanding bonds or warrants payable primarily out of such local improvement district fund. [Ord. 29 § 1.05].

3.12.180 Nonliability of city.

Neither the owner nor the holder of any bond, interest coupon, or warrant issued against a local improvement fund after the passage of this chapter shall have any claim therefor against the city, except for payment from the special assessments made for the improvement for which the bond or warrant was issued, and except as against the local improvement guaranty fund created by this chapter, and the city shall not be liable to any holder or owner of such bond, interest coupon, or warrant for any loss to the guaranty fund occurring in the lawful operation thereof by the city. The remedy of the holder or owner of a bond or warrant in case of nonpayment shall be confined to the enforcement of the assessment and to the guaranty fund. A copy of RCW 35.45.070, the provisions of which are embodied in this section, shall be plainly written, printed or engraved on each bond issued and guaranteed hereunder. [Ord. 29 § 1.06].

3.12.190 Installment notes – Interest default.

Whenever there are insufficient funds in a local improvement district to meet any payment of installment interest due on any note, a noninterest-bearing defaulted installment interest certificate shall be issued by the director of finance which shall consist of a written statement certifying the amount of such defaulted interest installment; the name of the payee of the note to whom the interest is due and the number of the local improvement district from whose funds the note and interest thereon is payable. The certificate herein provided shall bear the manual signature of the director of finance or his authorized agent. The defaulted installment interest certificate so issued shall be redeemed for the face amount thereof with any available funds in the local improvement guaranty fund. [Ord. 29 § 1.06; Ord. 616 § 1.03].

3.12.200 Installment notes – Default of principal.

Whenever, at the date of maturity of any installment notes, there are insufficient funds in a local improvement district, due to delinquencies in the collection of assessments, to pay the final installment of principal due thereon, the notes shall be redeemed with any available funds in the local improvement guaranty fund for the amount of the final installment. [Ord. 29 § 1.06; Ord. 197; Ord. 616 § 1.03].

3.12.210 Installment notes – Redemption.

All certificates and notes are to become subject to the same redemption privileges as apply to any local improvement district bonds and warrants now accorded the protection of the local improvement guaranty fund as provided in Chapter 35.54 RCW, and whenever the certificates or notes are issued as herein provided by the local improvement guaranty fund, they shall be held therein as investments thereof in the same manner as prescribed for other defaulted local improvement district obligations. [Ord. 29 § 1.06; Ord. 197; Ord. 616 § 1.04; amended during 2011 recodification].

3.12.220 Foreclosure of delinquent assessments.

If, on the first day of January in any year, one installment of any local improvement assessment is delinquent, or if the final installment thereof has been delinquent for more than one year, the city may proceed with foreclosure on the delinquent assessments or delinquent installments by an appropriate action on behalf of the city in Benton County superior court. The foreclosure proceedings shall be in accordance with the provisions of Chapter 35.50 RCW as now exist or as may hereafter be amended, and in accordance with the provisions of this chapter. Such foreclosure proceedings shall be commenced on or before the first day of June of that year. [Ord. 27-83 § 1.01].

3.12.230 Notice to property owners.

The finance director or designee shall send by certified mail to each person whose name appears on the assessment rolls and/or tax rolls as owner of the property charged with any delinquent assessment or installment at each address listed on said assessment rolls and/or county tax rolls, a notice at least 30 days before commencement of any action to foreclose a delinquent assessment or installment. The notice shall state the amount due on each separate lot, tract or parcel of land and the date after which the foreclosure proceedings will commence. [Ord. 27-83 § 1.02; Ord. 2022-29 § 5].

3.12.240 Acceleration of installments and attorney’s fees.

In any action brought for the foreclosure of a delinquent assessment or installment, future installments not otherwise due and payable shall thereupon be accelerated and the entire balance of the assessment with interest, penalty and costs shall become due and payable and the collection thereof shall be enforced by foreclosure as set forth in this chapter; provided, however, that in the case of such foreclosure there shall be added to the costs and expenses as provided by Chapter 35.50 RCW such reasonable attorney’s fees as the court may adjudge to be equitable, and the amount thereof apportioned to each delinquent assessment or installment appearing on the assessment rolls. [Ord. 27-83 § 1.03].

3.12.250 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. 27-83 § 1.04].