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HomeMy WebLinkAbout6512 ORDINANCE NO. 6 5 1 2 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON RELATING TO STREET AND UTILITY PAYBACK AGREEMENTS, ADDING A NEW CHAPTER 3.25 (PAYBACK AGREEMENTS) TO THE AUBURN CITY CODE, AND REPEALING CHAPTER 12.70 AND SECTIONS 13.08.070 AND 13.40.060 OF THE AUBURN CITY CODE WHEREAS, pursuant to Chapter 243 of the Laws of 2013, certain sections of Chapter 35.91 of the Revised Code of Washington (RCW), including, specifically, RCW Section 35.91.020, dealing with payback agreements, have been amended , with those amendments becoming effective July 1, 2014; and WHEREAS, in accordance with the changes to state law and RCW 35.91.020, it is appropriate that the Auburn City Code (ACC) dealing with payback agreements for both streets and utilities the amended to reflect the state law changes; and WHEREAS, in connection with any such amendments to the City Code, it would also be advantageous for the City to combine payback provisions into one consistent - more uniform — chapter, rather than the current provisions whereby payback provisions are located in several different chapters of the City Code. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, DO ORDAIN as follows: Section 1. New City Code Chapter . That Title 3 of the Auburn City Code be and the same hereby is amended by adding a new chapter, "3.25 Payback Agreements," to read as follows: -------------------------------- Ordinance No. 6512 06.10.14 Page 1 of 7 Chapter 3.25 Payback Agreements Sections: 3.25.010 Purpose. 3.25.020 Definitions. 3.25.030 City Funding. 3.25.040 Agreement—when mandatory. 3.25.050 City Engineer's authority. 3.25.060 Application — Process. 3.25.070 Costs eligible for reimbursement. 3.25.080 Formation of reimbursement area. 3.25.090 Contract execution and recording. 3.25.100 Implementation of agreement. 3.25.010 Purpose. The purpose of this chapter is to provide a mechanism to reimburse an eligible applicant and/or the city for costs associated with the construction of public street or public utility system improvements. This chapter is intended to implement and thereby make available to the public the provisions of Chapters 35.72 and 35.91 RCW as presently adopted or as may be subsequently amended. 3.25.020 Definitions. A. Use of Words and Phrases. As used in this chapter, unless the context or subject matter clearly requires otherwise, the words or phrases defined in this section shall have the indicated meanings. B. "Applicant" means the owner, developer, or building permit applicant who is required by any ordinance of the city to construct improvements as a prerequisite of property development. Street or utility improvements constructed in order to comply with the City's subdivision code, zoning code, comprehensive plan, Title 12 ACC or Title 13 ACC are hereby declared to be prerequisites to further property development for the purposes of RCW 35.72.010 and 35.91.020(1)(a). C. "Assessment reimbursement area" means all real properties that will benefit from a street or utility system improvement. D. "Connection" for utility services means the initial provision of water, sewer or storm drainage service for an individual property after the issuance of an appropriate permit under Chapters 13.06 or 13.20 of the ACC, where the property benefits from utility services as described in Section 3.25.100, and which results in the creation of a utility payment account with the City, and service fees being assessed under that account. Connection does not include the physical tie-in or attachment of mainline water, sewer, or storm drainage infrastructure to the City's system or to infrastructure being dedicated or Ordinance No. 6512 06.10.14 Page 2 of 7 conveyed to the City after construction thereof as required under Chapter 13.40 ACC. E. "Payback Agreement" means contracts authorized by Chapters 35.72 and 35.91 RCW and this chapter, as presently adopted or as may be subsequently amended, for transportation or utility system improvements. F. "Transportation system improvements" means such improvements to the public street transportation facilities including, but not limited to, paving, installation of curbs, gutters, storm drainage, sidewalks, street lights, right-of-way landscaping, traffic signals, and traffic control signs and markings. G. "Utility system improvements" means such improvements to the public water, sewer, or storm drainage systems including, but not limited to pumping stations, conveyance, distribution and service lines, structures, storm drainage storage and treatment ponds/vaults, and disposal plants, water mains, hydrants, reservoirs, wells, or appurtenances thereto. 3.25.030 City funding. The City may participate in funding of an applicant's required street or utility system improvements or may enact a street or utility payback agreement for a city funded street or utility improvement project following a public hearing and Council approval as specified in this chapter. 3.25.040 Agreement—when mandatory. A. The City Council reserves the right to refuse to enter into any street payback agreement or to reject an application therefor. B. As provided for in RCW 35.91.020(1)(a), the City shall enter into a utility payback agreement at the owner's request if the owner meets all conditions set forth in the statute and code. 3.25.050 City Engineer's authority. The City Engineer shall establish administrative rules, regulations, policies, and procedures necessary to implement the provisions of this chapter and is authorized and directed to execute payback agreements for public street and utility system improvements upon council approval. 3.25.060 Application - Process. An applicant required to construct street or utility system improvements on public rights-of-way may apply to the city to establish a payback agreement for recovery of a pro rata share of the costs of constructing the improvements, from the property owners of record who will subsequently derive a benefit from the improvements. Applications for a payback agreement shall be made to the City no later than 30 calendar days before the system improvements have been completed and accepted by the City, and shall include the following items: A. A nonrefundable application fee in an amount as indicated in the city's fee schedule. -------------------------------- Ordinance No. 6512 06.10.14 Page 3 of 7 B. An estimate of all costs of the project including, but not limited to, design engineering, permitting, property acquisition, construction engineering, contract administration, surveying, and construction costs associated with the system improvements. C. A map and legal description identifying the proposed boundaries of the assessment reimbursement area and each separately owned parcel within such area and including the applicable amount of area and/or front footage of the property. Such map shall identify the location of the project in relation to the parcels of property in such area. D. A preliminary assessment reimbursement roll stating the proposed assessment for each separate parcel of property within the proposed assessment reimbursement area as determined by apportioning the total project cost on the basis of the benefit of the project to each such parcel of property within said area. The payback reimbursement charge to other properties shall be based on the total project cost, figured on a front foot or area assessment basis, or other equitable method, as determined by the city, or any combination of these methods at the reasonable discretion of the city engineer. E. A complete list of record owners of property within the proposed assessment reimbursement area certified as complete and accurate by the applicant and which states names and mailing addresses for each such owner. F. The applicant's acknowledgement that a street payback agreement may extend for a period of up to 15 years (unless extended as provided for by statute), and a utility payback agreement may extend for a period of not less than 20 years (unless extended as provided for by statute), from the date of final acceptance by the city and the recovery shall be assigned to run with the land. G. The applicant's acknowledgement that approval of the payback agreement will be conditioned on the applicant agreeing to waive any claims for liability of the city in establishment and enforcement of payback agreements, including an acknowledgement that the city is not responsible for locating a beneficiary or survivor. H. The applicant's acknowledgement that it must provide sufficient security to ensure to complete the improvements. I. The applicant's acknowledgement that it must submit the total cost of the improvements to the .City within 120 days of completion of the improvements. The applicant shall, if necessary, provide a proposed final roll if directed to do so by the City. 3.25.070 Costs eligible for reimbursement. The City Council may provide for the reimbursement of all or part of the costs advanced by the city funds and/or applicant for such street or utility system improvements, including: A. The design engineering, permitting, property acquisition, construction engineering, contract administration, surveying, and construction costs associated with the street or utility system improvements. -------------------------------- Ordinance No. 6512 06.10.14 Page 4 of 7 B. The cost of all advertising, mailing and publishing of notices. C. The cost of legal services and any other expenses incurred by the city in connection with such construction or improvement and in the financing thereof, including the issuance of any bonds. D. City costs of administering the agreement. E. Outside professional services as applicable. Costs eligible for reimbursement to the applicant shall not include required frontage street or utility improvements that would have been normally required of the applicant per Chapters 12.64A, 13.08, or 13.40 ACC. 3.25.080 Formation of reimbursement area. A. If the city engineer finds that the request complies with the requirements of this chapter, a public hearing of the City Council shall be set for consideration of an ordinance approving the payback agreement. The draft ordinance shall constitute the preliminary determination on the assessment reimbursement area and method of assessment as recommended by the city engineer. B. A notice of hearing on the proposed ordinance shall be published no less than 20 days before the date of the hearing in a newspaper of general circulation in the area of the assessment reimbursement area. C. A notice of hearing shall be given to each owner of record of each lot, tract or parcel of land or other property within the proposed reimbursement assessment area by mailing by certified mail as shown on the tax rolls of the county treasurer. The notice of hearing shall be mailed not less than 20 days before the date of the hearing. D. The notice shall refer to the proposed ordinance and designate the proposed assessment reimbursement area by number and include the information specified in ACC 3.25.060. E, On the date and at the time specified in the notice, the City Council will conduct a hearing and listen to testimony as it relates to the desirability and the sufficiency of the proposed assessment reimbursement area and methods of calculating reimbursement assessments and the amounts thereof. The City Council may continue the hearing to allow for further information to be provided. F. Following the hearing, the City Council may adopt an ordinance which establishes the assessment reimbursement area, determines the amount of the reimbursement assessment to be charged to each lot, tract or parcel, and provides for the payment and collection of such assessments. 3.25.090 Contract execution and recording. A. Within 30 days of final City Council approval of a street and utility payback agreement, the applicant shall execute and present such agreement for the signature of the appropriate city official. B. The payback agreement shall be recorded in the King or Pierce County department of records, as appropriate. Once recorded, the payback -------------------------------- Ordinance No. 6512 06.10.14 Page 5 of 7 agreement is binding on property owners of record within the assessment area who are not party to the agreement. 3.25.100 Implementation of agreement. A. All owners of properties for which a payback agreement is in force and who have not previously paid their fair share will be assessed the charge as provided in the agreement at the time they receive benefit from the street or utility system improvements. A property benefits from a street improvement when it receives the beneficial use of the street as provided for in the payback agreement. A property benefits from a water, sewer, or storm improvement when any of the following occur: 1) the applicant applies for a water connection permit under ACC 13.06.050; 2) the applicant applies for a sewer connection permit under ACC 13.20.060 or, 3) the applicant applies for a storm drainage permit under ACC 13.48.240. The payback assessments shall be based on the costs and methodology identified in the approved payback agreement. Assessments due under a payback agreement shall be paid in full before the city issuance of any such permits. B. Monies collected by the city will then be reimbursed to the applicant within sixty days after the receipt thereof, for the duration of the agreement. The applicant is required to provide changes of address or ownership every two years from the date of the signing of the agreement. If the applicant fails to provide the notification within 60 days of this date, the City may collect any reimbursement funds owed to the applicant under the contract. The funds collected by the City shall be deposited in the capital fund of the City. Section 2. Repealer. Chapter 12.70 of the Auburn City Code is hereby repealed in its entirety. Section 3. Repealer. Section 13.08.070 of the Auburn City Code is hereby repealed in its entirety Section 4. Repealer. Section 13.40.060 of the Auburn City Code is hereby repealed in its entirety. Section 5. Implementation. The Mayor is hereby authorized to implement such administrative procedures as may be necessary to carry out the directions of this legislation. -------------------------------- Ordinance No. 6512 06.10.14 Page 6 of 7 Section 6. Severability. The provisions of this ordinance are declared to be separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section or portion of this ordinance, or the invalidity of the application thereof to any person or circumstance shall not affect the validity of the remainder of this ordinance, or the validity of its application to other persons or circumstances. Section 7. Effective date. This Ordinance shall take effect and be in force five days from and after its passage, approval and publication as provided by law. INTRODUCED: JUN 16 2014 PASSED: JUN 16 2014 APPROVED: JUN 16 2014 CITY OF AUBURN NA CKUS, NIAYOR ATTEST: --.-,—Danielle E. Das cam, Ci y Clerk APPR ED AS TO FORM: a4e a;��— Daniel B. Heid, City Attorney Published', \c�,a—W\ _ -------------------------------- Ordinance No. 6512 06.10.14 Page 7 of 7 LANGUAGE TO BE REPEALED UNDER ORDINANCE NO. 6512 Chapter12.70 STREET PAYBACK AGREEMENTS Sections: 12.70.010 Purpose. 12.70.020 Definitions. 12.70.030 City funding. 12.70.040 Agreement not mandatory. 12.70.050 City engineer's authority. 12.70.060 Application. 12.70.070 Application—Contents. 12.70.080 Costs eligible for reimbursement. 12.70.090 Formation of reimbursement area. 12.70.100 Contractexecution and recording. 12.70.110 Implementation of agreement. 12.70.010 Purpose. The purpose of this chapter is to provide a mechanism to reimburse an eligible applicant.and/or the city for costs associated with the construction of public street system improvements.This chapter is intended to implement and thereby make available to the public the provisions of Chapter 35J2 RCW as presently adopted or as may be subsequently amended. (Ord. 6319 § 1, 2010.) 12.70.020 Definitions. A. Use of Words and Phrases.As used in this chapter, unless the context or subject matter clearly requires otherwise, the words or phrases defined in this section shall have the indicated meanings. B. "Assessment reimbursement area" means all real properties that will benefit from a street system improvement. C. "Street system improvements" means such improvements to the public street transportation facilities including, but not limited to, paving, installation of curbs, gutters, storm dreinage, sidewalks, street lights, right-of-way landscaping, traffic signals, and traffic control signs and markings. D. "Applicant" means the owner, developer,or building permit applicant who is required by any ordinance of the city, or as the result of review under the State Environmental Policy Act, or in connection with any discretionary decision of the city council to construct street system improvements which do not abut the development site. E, "Street payback agreement" means contrects authorized by Chapter 35.72 RCW and this chapter, as presently adopted or as may be subsequently amended,for street system improvements. (Ord. 6319 § 1, 2010.) 12.70.030 City funding. The city may participate in funding of an applicant's required street system improvements or may enact a street payback agreement for a city funded street impro4ement project following a public hearing and councii approval as specified in this chapter. (Ord. 6319 § 1, 2010.) 12.70.040 Agreement not mandatory. The city council reserves the right to refuse to enter into any street payback agreement or to reject an application therefor. (Ord. 6319 § 1, 2010.) 12.70.050 City engineer's authority. The city engineer shall establish administretive rules, regulations, policies, and procedures necessary to implement the provisions of this chapter and is authorized and directed to execute payback agreements for public street system improvements upon council approval. (Ord. 6319 § 1, 2030.) 12.70.060 Application. An applicant required to construct street system improvements on public rights-of-way may apply to the city to establish a street payback agreement for recovery of a pro rata share of the costs of constructing the street system improvements, from the property owners of record who will subsequently derive a benefit from the improvements. (Ord. 6319 § 1, 2010.) 12.70.070 Application—Contents. Applications for a street payback agreement may be made to the city after construction of the street system improv8ments have been completed and shall include the following items: A. A nonrefundable application fee in an amount as indicated in the city's fee schedule. B. Itemization of all costs of the project including, but not limited to, design engineering, permitting, property acquisition, construction engineering, contract administration, surveying, and � construction costs associated with the street system improvements. C. A map and legal description identifying the proposed boundaries of the assessment reimbursement area and each separately owned parcel within such area and including the applicable amount of area and/or front footage of the property.Such map shall identify the location of the project in relation to the parcels of property in such area. D. A proposed assessment reimbursement roll stating the proposed assessment for each separate pa�cel of property within the proposed assessment reimbursement area as determined by apportioning the total project cost on fhe basis of the benefit of the project to each such parcel of property within said area. E. A complete list of record owners of property within the proposed assessment reimbursement area certified as complete and accurate by the applicant and which states names and mailing addresses for each such owner. F. The applicant's acknowledgement that the street payback agreement may extend for a period of up to 15 years from the date of final acceptance by the city and the recovery shall be assigned to run with the land. G. The applicant's acknowledgement that approval of the street payback agreement will be conditioned on the applicant agreeing to wai4e any claims for liability of the city in establishment and enforcement of payback agreements, including an acknowledgement that the city is not responsible for locating a beneficiary or survivor. (Ord. 6319 § 1, 2010.) 12.70.080 Costs eligible for reimbursement. The council may provide for the reimbursement of all or part of the costs advanced by the city funds and/or applicant for such street system improvements, including: A. The design engineering, permitting, property acquisition, construction engineering, contract administration, surveying, and constrOction costs associated with the street system improvements. B. The cost of all advertising, mailing and publishing of notices. C. The cost of legal services and any other expenses incurred by the city in connection with such construction or improvement and in the financing thereof, including the issuance of any bonds. D. City costs of administering the agreement. E. Outside professional services as applicable. Costs eligible for reimbursement to the applicant shall not include required fron[age street improvements that would have been normally required of the applicant per Chapter 12.64A ACC. (Ord. 6319§ 1, 2010.) 12.70.090 Formation of reimbursement area. A. If the city engineer finds that the request complies with the requirements of this chapter, a public hearing of the city council shall be set for consideration of an ordinance approving the street payback agreement.The draft ordinance shall constitute the preliminary determination on the assessment reimbursement area and method of assessment as recommended by the city engineer. B. A notice of hearing on the proposed ordinance shall be published no less than 20 days before the date of the hearing in a newspaper of general circulation in the area of the assessment reimbursement area. C. A notice of hearing shall be given to each owner of record of each lot, tract or parcel of land or � other property within the proposed reimbursement assessment area by mailing by certified mail as shown on the faz rolls of the county treasurer.The notice of hearing shall be mailed not less than 20 days before the date of the hearing. D. The notice shall refer to the proposed ordinance and designate the proposed assessment reimbursement area by number and include the information specified in ACC 12.70.070. On the date and at the time specified in the notice,the council will conduct a hearing and listen to testimony as it relates to the desirability and the sufficiency of the prbposed assessment reimbursement area and methods of calculating reimbursement assessments and the amounts thereof.The council may continue the hearing to allow for further information to be provided. E. Following the Fiearing, the council may adopt an ordinance which establishes the assessment reimbursement area, determines the amount of the reimbursement assessment to be charged to each lot,tract or parcel,and provides for the payment and collection of such assessments. (Ord. 6319§ 1, 2010.) 12.70.100 Contrect execution and recbrding. Within 30 days of final city council approval of a street payback agreement, the applicant shall execute and present such agreement for the signature of the appropriate city official. 7he payback agreement shall be recorded in the King or Pierce County department of records, as appropriate. Once recorded,the payback agreement is binding on property owners of record within the assessment area who are not party to the agreement. (Ord. 6319 4 1, 2030.) 12.70.130 Implementation of agreement. A. All owners of properties for which a street payback agreement is in force and who have not previously paid their fair share will be assessed the charge as providetl in the agreement at the time they receive benefit from the street system improvements. Benefiting properties are those properties engaging in activities described in ACC 12.64A.020.7he payback assessments shall be based on the costs and methodology identified in the approved street paytiack agreement. Latecomer assessments shall be paid in full before the city issuance of any such permits. B. Monies collected by the city will then be reimbursed to the applicant at six-month intervals for the duration of the agreement.The applicant is required to provide changes of address or ownership not later than the anniversary date of the signing of the agreement, If the applicant fails to update its address or ownership, the city is not responsible for not remitting payments. (Ord. 6319§ 1, 2010.) 13.08.070 Payback agreement. The city engineer is authorized and directed to execute payback agreements at the request of the developer upon city council approval. All payback agreements shall be executed pursuant to ACC 13.40.060. (Ord. 5850 4 1, 2004; Ord. 5212 § 1 (Exh. H), 1999; Ord.4760 4 1, 1995; 1957 code § 10.10.070.) � 13.08.080 Connectionson unassessed property—Charge—Generally. Repealed by Ord. 5850. (Ord. 5212 4 1 (Exh. H), 1999; 1957 code § 10.30.080.) 13.08.090 Connectionsonunassessedproperty—Charge—Payments—Nonpaymentaction. Repealed by Ord. 5850. (Ord. 5212 § 1 (Ezh. N), 1999; Ord. 3608 4 1, 1981; Ord, 3396§ 1, 1979; Ord. 2761 § 1, 1973; 1957 code § 30.10.090.) 13.40.060 Payback agreement—Utilities. A. The city engineer is authorized and directed to execute payback agreements for water, storm drainage and sanitary sewer facilities at the request of the deVeloper upon city council approval.The agreement shall be executed in conformance with the fatility extension requirements of this chapter. B. The payback reimbursement charge to other properties shall be based on the total project cost, figured on a front foot or area assessment basis,or other equitable method, as determined tiy the city, or any combination of these methods at the reasonable discretion of the city engineer. The project costs may include all applicable design and construction charges of the project submitted by the developer and approved by the city. C. All properties connecting to water, storm drainage and sanitary sewer facilities for which a payback agreement is in force and which property lias not been assessed the connection fee as provided in the payback agreement or has not tiorne an equitable share of costs of such public system shall be subject to a payback connection charge. The connection charge shall be based on a pro rata share of the costs as stated in the payback agreement at the reasonable discretion of the city engineer antl approved kiy the city council. Payment of the payback charge shall be made in full to the city prior to connecting to the water, storm drainage,or sanitary sewer facilities. D. An administrative fee will be assessed for the processing of payback agreements as per the city of Auburn fee schedule. (Ord. 6265 4 1, 2009; Ord. 5995 4 1, 2006; Ord. 5954§ 1, 2005; Ord. 5903 4 1, 2005; Ord. 5791 §4, 2003; Ord.4759 § 1, 1995.)