Chapter 3.40
LOCAL IMPROVEMENTS1
Sections:
3.40.010 Compliance with state law.
3.40.020 Initiation and order.
3.40.030 Local improvement district.
3.40.040 Performance by city or bidder.
3.40.050 Distribution and assessment of costs.
3.40.070 Bonds – Sale – Issuance to contractor.
3.40.090 Funds – Collection of assessments.
3.40.105 Procedures relating to local improvement districts and utility local improvement districts.
3.40.120 Delinquent assessment – Foreclosure.
3.40.122 Acceleration on default.
3.40.124 Administrative costs for foreclosing delinquent liens.
3.40.126 Time and place of sale.
3.40.130 Bonds for unpaid assessments.
3.40.150 Applicability of state law.
3.40.010 Compliance with state law.
Whenever the city council of the city provides for making local improvements and for paying the whole or any portion of the cost and expense thereof by levying and collecting special assessments on property especially benefitted, 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 act 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. 563 § 1, 1953. Prior code § 8.02.010)
3.40.020 Initiation and order.
Any such improvement may be initiated either upon petition or by resolution therefor, but such improvement may be ordered only by ordinance.
A. 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 engineer 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 recommendations 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 and a statement of the aggregate assessed valuation of the real estate, exclusive of the improvements, in such district according to the valuation last placed upon it for purpose of general taxation, together with all other outstanding and unpaid local improvement assessments against the property included in the district, excluding penalties and interest; and in case the petition is sufficient, shall also submit a diagram showing thereon the lots, tracts or parcels of land and other property which will be especially benefitted thereby and the estimated amount of the costs and expense of such improvement to be borne by each lot, tract or parcel of property.
B. 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 at the time specified in such resolution. Such resolution shall be published in at least two consecutive issues of the official newspaper of the city and the date of hearing thereon shall be at least 15 days after the date of the first publication of the same. The city engineer shall submit to the city council at or prior to the date fixed for such hearing, the same date and information required to be submitted in the case of a petition.
C. 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. 1718 § 1, 1995; Ord. 563 § 2, 1953. Prior code § 8.02.020)
3.40.030 Local improvement district.
A. Every ordinance ordering a local improvement to be paid in whole or in part by assessments against the property specially benefitted 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 benefitted by the improvement.
B. 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 center line 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 benefitted 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 property specially benefitted 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. 563 § 3, 1953. Prior code § 8.02.030)
3.40.040 Performance by city or bidder.
All local improvements, funds for the making of which are derived in whole or in part from assessments upon property specially benefitted, 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. 563 § 4, 1953. Prior code § 8.02.040)
3.40.050 Distribution and assessment of costs.
The cost and expense of any such improvement 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. 563 § 5, 1953. Prior code § 8.02.050)
3.40.060 Bonds – Authorized.
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. 563 § 6, 1953. Prior code § 8.02.060)
3.40.070 Bonds – Sale – Issuance to contractor.
A. 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 not 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.
B. The proceeds of all sales of bonds shall be applied in payment of the cost and expense of the improvement. (Ord. 563 § 7, 1953. Prior code § 8.02.070)
3.40.080 Warrants.
A. The city council may provide by ordinance for the issuance of warrants in payment of the cost and expense of any local improvement, payable out of the local improvement district fund. The warrants shall bear interest at the rate of not to exceed eight percent per annum and shall be redeemed either in cash or by local improvement bonds for the same improvement authorized by ordinance.
B. 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 this 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. 563 § 8, 1953. Prior code § 8.02.080)
3.40.090 Funds – Collection of assessments.
A. All assessments for local improvements shall be collected by the city treasurer 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 and bonds issued against the fund to provide payment for the cost and expense of the improvement.
B. As soon as the assessment roll has been placed in the hands of the city treasurer for collection, he/she shall publish a notice in the official newspaper of the city for 10 consecutive daily or two consecutive weekly issues, 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. 1718 § 2, 1995: Ord. 563 § 9, 1953. Prior code § 8.02.090)
3.40.100 Installment payment.
In all cases where bonds 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 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 a date one year after the date of first publication of the city treasurer’s notice, and annually thereafter each succeeding installment shall become due and payable in like manner. If the whole or any portion of any assessment remain unpaid after the first 30-day period herein provided for, interest upon the whole unpaid sum shall be charged at the rate fixed in the ordinance providing for such improvement and each year thereafter one of said 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 charge for interest at the bond rate and to an additional charge of five percent penalty levied upon both principal and interest due on such installment or installments. (Ord. 1718 § 3, 1995: Ord. 563 § 10, 1953. Prior code § 8.02.100)
3.40.105 Procedures relating to local improvement districts and utility local improvement districts.
A. Assessment Roll – Filing – Hearing, Date, by Whom Held. The assessment roll for local improvements, when prepared as provided by law, shall be filed with the city clerk. The city council shall thereupon fix a date for a hearing thereon before the council; may direct that the hearing shall be held before a committee thereof; or the city council may designate an officer to conduct such hearings. The committee or officer designated by council shall hold a hearing on the assessment roll and consider all objections filed. Following said hearing, the committee or officer shall make recommendations to the city council. The city council shall thereafter either adopt or reject the recommendations of the committee or officer. If a hearing is held before such a committee or officer it shall not be necessary to hold a hearing on the assessment roll before the city council. An owner of property, having filed a protest before or at the hearing, may appeal his or her assessment to the city council from a decision made by a committee or officer. The same procedure may, if so directed by the city council, be followed with respect to any assessment upon the roll which is raised or changed to include omitted property. The city council shall direct the city clerk to give notice of any such hearings, in the manner required by law.
B. Hearings on Assessment Roll.
1. The city council, the committee thereof, the hearing examiner or officer designated by the city council shall commence the hearing on the date and at the time and place fixed by the city council, but may in the exercise of discretion recess the hearing to times certain in order to allow the parties to obtain essential additional information; provided, however, that an effort shall be made at all times to avoid delays which unnecessarily allow interest to accumulate upon obligations for which the local improvement district is responsible.
2. The committee, hearing examiner or officer shall reduce his/her findings, recommendations and decisions to writing and shall file them with the city clerk within 20 days following the conclusion of the hearing. Notice of the filing, together with copies of the findings, recommendations and decisions, shall be mailed by the city clerk (or any person designated by the city clerk to do so under his/her supervision) within three business days of the filing to all persons who filed timely written objections to confirmation of the assessment roll as prepared. Any persons desiring to file an appeal to the city council shall be required to follow the procedure outlined herein.
C. Council Appeals.
1. Any finding, recommendation or decision of a committee, hearing examiner, or officer designated by the city council to conduct a hearing pursuant to RCW 35.44.070 and 35.44.080 shall be subject to appeal to the city council.
2. An appeal under this section may be filed only by a party who timely perfected a protest at the initial hearing. The notice of appeal shall, in addition to requirements as to content specified elsewhere in this chapter, state clearly on the cover or cover page the number of the local improvement district and the appellant’s name and parcel number and shall be filed with the city clerk no later than the fourteenth day after the day upon which the report and recommendation of the committee, hearing examiner or other officer are filed with the city clerk.
3. The notice of appeal shall also include a concise statement of the basis therefor and, in the event that appellant deems the references on the findings, recommendations and decisions inadequate, a reference by metered index numbers to the places in the electronically prepared record of the hearing where the pertinent material may be found. The notice of appeal shall also designate by name or title and by sub-number the items or exhibits in the record to which reference will be made in argument or briefing before the city council.
4. Upon the filing of a notice of appeal the city clerk shall promptly notify the city attorney and furnish a copy of the notice to the city council and the concerned city departments. Within 15 days following the filing of a notice of appeal the city council shall set a time and place for a hearing on the appeal before the city council and shall promptly mail or cause to be mailed notice of the time and place to the appellant, provided the time shall be as soon as practicable in order to avoid accumulation of additional interest on the obligations of the local improvement district. The city council shall direct whether the appeals are to be considered with or without oral argument.
5. Review by the city council on appeal shall be limited to and shall be based solely upon the record from the hearing below; provided, however, that the city council may permit oral or additional written arguments or comments when confined to the content of the record of the hearing below. The recommendation appealed from shall be accorded substantial weight and the burden of establishing the contrary shall be upon the appealing party. In respect to the matter appealed the city council may adopt or reject, in whole or in part, the findings, recommendations and decisions of the committee, hearing examiner or officer or make such other disposition of the matter as is authorized by RCW 35.44.100 and this chapter. The city council shall reduce its determination to writing, file the original in the record of the local improvement district, and transmit a copy of the same to the appellant.
6. Upon receipt of the report, findings, recommendations and decisions of a committee, hearing examiner or officer, the city council shall review the same. As soon as all timely appeals from the findings, recommendations and decisions of the committee, hearing examiner or officer have been decided or the time allowed for filing appeals has expired with no appeals having been filed, the city council may accept the assessment roll as prepared or may correct, revise, raise, lower, change or modify the roll or any part thereof, or may set aside the roll and order the assessment to be made de novo. If an appeal has been filed from the findings, recommendations and decisions of a committee, hearing examiner or officer it shall be heard and determined and the results thereof incorporated into the assessment roll before it is confirmed. The city council shall confirm the roll by ordinance. (Ord. 2655 § 1, 2018)
3.40.110 Delinquent assessment – Certificate.
Repealed by Ord. 1718. (Ord. 389 § 1, 1930. Prior code § 8.04.010)
3.40.120 Delinquent assessment – Foreclosure.
If, on the first day of January in any year two installments of any local improvement assessment are delinquent, or if the final installment thereof has been delinquent for more than one year, then the city attorney is authorized to commence foreclosure proceedings on the delinquent assessment or delinquent installments by an appropriate action on behalf of the city in Pierce County superior court. The foreclosure proceeding shall be in accordance with the provisions of chapter 35.50 RCW, as now exists or as may hereafter be amended. Such foreclosure proceeding shall be commenced on or before June 1st of said year. (Ord. 1718 § 4, 1995: Ord. 389 § 2, 1930. Prior code § 8.04.020)
3.40.122 Acceleration on default.
Should any property assessed under an LID fail to pay the yearly assessments as they come due for two or more successive years, then the city may, at its discretion, accelerate the full amount of the remaining LID assessments and demand payment of that full amount. Should the city initiate litigation to foreclose on the lien of the LID assessments, then the city shall have the option to claim in that litigation the full amount of the unpaid LID accelerated assessments; provided, that payment of all the delinquent installments, together with interest, penalty and costs at any time before entry of judgment and foreclosure shall extend the time of payment on the remainder of the assessment as if there had been no delinquency or foreclosure. (Ord. 2424 § 1, 2013)
3.40.124 Administrative costs for foreclosing delinquent liens.
Should it become necessary for the city to institute an action to foreclose on a property delinquent in its LID assessment payments, then the city shall have the right to claim administrative costs for the prosecution of such assessment lien foreclosure proceeding. For the purposes of these foreclosure proceedings, “administrative costs” shall include all costs of the LID administrator, all costs associated with the filing, serving and processing of the suit and reasonable attorney’s fees. Any judgment for attorney’s fees and costs shall constitute a portion of the judgment to be enforced by foreclosing of the lien and such attorney’s fees and costs shall be paid before the assessments shall be considered paid current. (Ord. 2424 § 2, 2013)
3.40.126 Time and place of sale.
Should the city obtain a judgment or order of sale authorizing the city treasurer or designee to sell any property with delinquent LID liens that have been foreclosed, then the city treasurer or designee shall give notice of the time and place where such sale is to take place for 10 days successively by posting notice thereof in three public places in the county, one of which shall be in the office of the city clerk, and one of which shall be posted on the property in question. The city treasurer or designee shall schedule the sale at 10:00 a.m. on any Friday of any month in the council chambers in the Sumner City Hall or such other place to which the sale may be adjourned from the council chambers. (Ord. 2424 § 3, 2013)
3.40.130 Bonds for unpaid assessments.
In case the improvement is made on the bond installment plan, the city treasurer 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/her 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. 1718 § 5, 1995: Ord. 563 § 11, 1953. Prior code § 8.02.110)
3.40.140 Form of bonds.
A. 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:
Bond No. ____ $____
UNITED STATES OF AMERICA STATE OF WASHINGTON
LOCAL IMPROVEMENT BOND
CITY OF SUMNER LOCAL IMPROVEMENT DISTRICT NO. __
N.B. This bond is issued by virtue of the provisions of RCW 35.45.010 et seq., Section 35.45.070 of which reads as follows:
“Neither the holder nor the owner of any bond or warrant issued under the provisions of this act shall have any claim therefor against the city or town by which the same is issued, except for payment from the special assessments made for the improvement for which said bond or warrant was issued, and except as against the local improvement guaranty fund of such city or town, and the city or town shall not be liable to any holder or owner of such bond or warrant for any loss to the guaranty fund occurring in the lawful operation thereof by the city or town. The remedy of the holder or owner of a bond or warrant in case of nonpayment, shall be confined to the enforcement of the assessment and to the guaranty fund.”
The City of Sumner, a municipal corporation of the State of Washington, hereby promises to pay to _________ or bearer ($______) Dollars, in lawful money of the United States, with interest thereon at the rate of ___ percent 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 City Treasurer 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 City Treasurer.
This bond is payable on or before the ____ day of ______, 19__, and is subject to call by the City Treasurer 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 City Treasurer by publishing the same once in the official newspaper of said 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 the said City as the bond of said Local Improvement District, the bond or the proceeds thereof to be applied in 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 benefitted 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 Improvement Guaranty Fund of the City of Sumner 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 _____ ($______) Dollars, all of which bonds are subject to the same terms and conditions as herein expressed.
IN WITNESS WHEREOF, the City of Sumner has caused these presents to be signed by its Mayor and attested by its City Clerk and sealed with its corporate seal this _____ day of ____, 19___.
CITY OF SUMNER,
WASHINGTON
By __________
Mayor
Attest:
___________________
City Clerk
There shall be attached to each bond such a number of coupons as shall be required to represent the interest thereon payable either annually or semiannually, as the case may be, for the term of said bonds, which coupons shall be substantially in the following form:
On the _____ day of ____, 19___, the CITY OF SUMNER, STATE OF WASHINGTON, promises to pay to the bearer at the office of the City Treasurer, _____ ($_____) 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 SUMNER,
WASHINGTON
By __________
Mayor
Attest:
___________________
City Clerk
B. The city treasurer shall keep in his/her office a register of all such bonds in which he/she shall enter the local improvement district for which the same are issued and the date, amount and number of each bond and the terms of payment. (Ord. 1718 § 6, 1995; Ord. 563 § 12, 1953. Prior code § 8.02.120)
3.40.150 Applicability of state law.
The laws of the state of Washington and the provisions of this chapter shall be applicable to all local improvements and proceedings therein initiated by petition or resolution subsequent to the passage and legal publication of the ordinance codified in this chapter, and all proceedings and the manner of the collection and enforcement of all assessments in such proceedings shall be in compliance therewith. (Ord. 563 § 20, 1953. Prior code § 8.02.130)
For statutory provisions on local improvement guaranty funds, see chapter 35.54 RCW.