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crrxoF * * Memorandum
* WASHINGTON
To: Public Works Committee
Mayor, Peter B. Lewis From: Ingrid Gaub; Assistant City Engineer
CC: Dennis Dowdy, Public Works Director
Dennis Selle, City Engineer
Dan Heid, City Attomey
Date: July 1, 2010
Re; Proposed New City Code 12.70, Street Latecomers Agreement
Please find attached the revised draft proposed City Code Chapter 12.70, Latecomers
Agreements, with changes indicated in response to discussion at the last Public Works
Committee meeting. Also attached is the proposed fee schedule:for SVeet Lafecomer
Agreements along with fhe cuRent charges for Utility Payback Agreements as a comparison.
Background.: RCW 35.72 covers the legislative authorization for a latecomers agreement -
related to the construetion of public road improvements. In general, the RCW allows for a public
agency to enter into a latecomers agreement for road improvements tliat are funded by
development, the City, or a combination of the two. There is a 15 year period from the time the
City establishes the assessment reimbursement area for the costs to be paid back by benefiting
properties. The general intent of the RCW is to allow the recovery of an appropriate portion of
the costs associated with the development of required public road improvements that would be
required by other future development and therefore, benefits these other properties.
This item will be discussed at the July 7~' Public Works Committee meeting. Page 1 of 5
AUBURN * MORE TEiAN YOD UAAGINED
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-Existina Fee Schedule Related to Utilitv Pavback Aareements:
Payback Administrative Fees: (Per Ordinance No 5954) _
Application Fee $500.00
Processing Fee $1,000.00
Area or Special Benefit Analysis $500.00
Transaction/Collection Fee $300.00
Oufside Professional Services Time and Materials
Proaosed Fee Schedule Related to Street Latecomer AQreements
' 13. Street Latecomers Agceements
Application Fee $500.00
Processing Fee $1,000.00
Assessment Reimbursement Area Analysis $1,000.00 '
TransactioNCollection Fee $300.00
Outside Professional Servises (when needed) Time and Materials
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Page 2 of 5
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' DRAFT NEW CODE SECTION RELATED TO STREET LATECOMERS AGREEMENTS.
Chapter 12.70
LATECOMERS AGREEMENTS
Sections
12.70.010 Purpose. . .
12.70.020 Definitions.
12.70.030 Application, term.
12.70.040 City funding.
12:70.050 Rights and nonliability of the city.
12.70.060 Guidelines establishment authority.
12.70.070 Application - Contents. .
12.70.080 Costs eligible for reimbursement.
12.70.090 Formation of reimbursement area.
12.70.100 Contract execution and recording.. - -
12.70.110 Implementation of Agreement
12.70.010 Purpose._
The,purpose of this chapter is ta provide mechanism to reimburse an.eligible applicant and/or
the City for cost associated with the construction of pubNc sfreef system improvements. This
chapter is intended to implement and thereby make available to the public the provisions of
chapter 35.72 RCW as presently constituted or as may be subsequently amended.
12.70.020 Definitions.
1. Use of Words and Phrases. As used in this chapter, unless the context or subject matter
clearty requires otherwise, the words or phrases.defined in this section shall haye the indicated
meanings. ,
2. "Assessment reimbursement area" means all real properties that will benefit from a
street system improvement.
3. °Street system improvements° means such improvements to the public street
transportationfacilities including, but nofi limited to, paving, installation of curbs, gutters, storm
drainage, sidewalks, street lights, right-of-way landscaping, traffic signals, and traffic control
signs and markings. .
4. °ApplicanY' means the owner, developer, and/or building permit applicant who is required
by any ordinance of the city, or as the result of review under the State Environmental PolicyAct,
or in connection with any discretionary decision of the city council to construct street system
improvements which do not abut the development site.
5. "Street latecomer agreemenY' means contracts authorized by chapter 35.72 RCW, as
presently constituted or as may be subsequently amended, for street system improvements.
12.70.030 Application, term.
An applicant required to construct street system improvements. on public rights-of=way may
apply fo the city to establish a street latecomer agreement for recovery of a pro rata share of the
~ costs of cons#ructing the street system improvements, from the Property owners of record who
will subsequently derive a benefit.from the improvements. A street latecomeragreement may
extend for a period of up to 15, years from the date of final acceptance by the city and the
I recovery -shall be assigned to run with fhe land i
12.70.040 City funding. .
The city may participate in funding of an applicant's required street system improvements or
enact a street latecomer agreement fot a city funded street improvemenf project following a
public hearing and Council approval as specified in this chapter.
Revised 7N/2010 3 of 5
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DRAFT NEW CODE SECTION RELATED TO STREET LATECOMERS AGREEMENTS
12.70.050 Rights and nonliability of the city. The city oouncil reserves the right to refuse to enter into any street latecomer agreement or to
reject an application therefore. All applications for latecomer agreements are made on the basis
that the applicant releases and waives any claims for liability of the city in establishment and
enforcement of latecomer agreements. The city is not responsible for locating a beneficiary or
survivor entitled to benefits by or through latecomer agreements.
12.70.060 Guidelines establishment 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 ta ezecute
latecomer agreements for public street system improvements upon council ap'provaL
12.70.070 Application - Contents.
Applications for a street latecomer agreement may tie made to the city after construction of
the street system improvements have been completed and shall include #he following items:
1. A nonrefundable application fee in an amount as indicated in the City's fee schedu_le.
2. Itemization of all costs of the project including, but not limited to, design engineering, -
permitting, property acquisifion, construction engineering, contract administration, surveying,
and construction cos#s associated with the sfreet system improvements.
3. A map and legal description identifying the proposed boundaries of the assessment
reimbursemenf area and each separately owned parcel within such area and include 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.
, 4. A proposed assessment reimbursement roll stating the proposed assessment for each
separate parcel'ofproperty 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:5. A complete list of record owners of property within the proposed assessment
reimbursement area certfied as complete and accurate bythe applicant and which states
names and mailing addresses for each such owner.
12.70.080 Cos4s 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:
1. The design engineering, permitEing, property acquisition; construction engineering,
contract administration, surveying, and construction costs associated with the street system
, improvements. -
2. The cost of all advertising, mailing and publishing of notices, ,
3. The cost of legal services and any other expenses incurred by the city in connection with
such construction or improvement and in the fnancing thereof, including the issuance of any
bonds; _
4. City costs of administering the aareementkmd.
5. Out:side arofessional senrices as applicable.
Costs e€ligible for reiinbursemenf to the applicant sests-shaU not include required frontage
street improvements thaf would have been normally required of the applicant pec ACC Chapter
12.64A.
12.70.090 Formation of reimbursement area.
1. A.1f the City Engineer fnds the request to be sufficient, a public hearing of the city
council shall be set for consideration of a draft ordinance. l'he draft ordinance shall constitute the preliminary determination on the assessment reimbursement area and method of
assessment as recommended by the City Engineer.
Revised 7/1 /2010 4 of 5
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DRAFT NEW CODE SECTION RELATED TO STREET LATECOMERS AGREEAAENTS
2. A notice of hearing on the proposed ordinance shall be published no less than twen
I(420) days before the date of the hearing in a newspaper of general circulation in the area of the
assessment reimbursement area. 3. A notice of hearing shall be given to each owner of record ofeach lot, tract or parcel of
land or other property within the proposed reimbursement assessment area by mailing by .
certifed mail, said nofice fo each owner as shown on the tax rolis of the county. treasurer. The
notice of hearing shall be mailed not less than twenty (20) days before the date of the hearing. .
4. The notice shall refer to the proposed ordinance and designate the proposed
assessment reimbursement area by number and include the informafion specified in subsection
B of this section.
5. On the date and at the time specifed in the notice the council will conduct a hearing and
listen to testimony as it relates fo the desirability and the sufficiency of the proposed
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. When the council has determined that adequate information has been provided it may
close public testimony.
6. Following the hearing, 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 forthe payment and collection of such
assessments.
7. The city council's ruling on these matters is determinative and final.
12.44.100 Contract execution and recording.
~ Wifhin #hi 341 days of'final city council approval of an assessment reimbursement
agreement, the applicant shall execute and present such agreement for the signature of the _
appropriate city official.
The latecomer agreements must be recorded in the King or Pierce County Departmenfi of
~ Records, as appropriate, within thi 301 days of the final execution of the agreement. Failure
to comply with the requirements of this subsection is grounds for unilateral rescission ofithe
agreement by the city.
~ Once recorded, the latecomer agreement is binding on property owners of record wifhin the
assessment area who are not party to the agreement.
12.70.110 Implementation of Agreement.
All owners of properties for which a street latecomer 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 system improvemenfs. Benefiting properties are those
properties engaging in activities described in section ACC 12.64A.20. The latecomer '
assessments shall be based on the costs and methodology identified in the approved street
latecomer agreement. Latecomer assessments shall be paid in full before the City issuance of
any such permits. Monies collected by the City will then be reimbursed to the Applicant at six
(6) month intenrals for the duration of the agreement.
Revised 7/1/2010 5 of 5