The purpose of this chapter is to provide a procedure for reimbursing a developer for public and private off-site improvements to streets which are not on the circulation element of the General Plan and to drainage facilities which are not on the City master drainage facilities fee map, when such improvements are made as a condition of development.
(Ord. 564 § 3, 2019)
In this chapter:
"Administrative cost"
means expenses and services provided by the City in the management of the reimbursement agreement.
"Agreement"
means an agreement to reimburse a developer for construction or extension of improvements that benefit another's property.
"Benefit area"
means the area of benefit approved by the City Council that would be assessed for the cost of the public and private improvement.
"Developer"
means an individual, a firm or any legal entity altering land, constructing buildings, or both.
"Engineering report"
means the reimbursement report prepared by a state licensed civil engineer selected by the City, outlining the benefited area and proposed reimbursement payments.
"Estimated construction cost"
means the estimated cost of construction as outlined in the engineering report and approved by the City Engineer.
"Improvements"
means drainage systems and public and private streets and related appurtenances constructed to City standards.
"Property owner"
means an individual, firm or any legal entity shown on the assessor's records as having control of the real property.
"Reimbursement payment"
means the payment to the developer who paid for the initial construction of the improvement.
"Trust fund"
means an account established for the deposit of the reimbursement funds during the life of the reimbursement agreement.
(Ord. 564 § 3, 2019)
A developer required to construct improvements must provide the City with a completed and signed reimbursement agreement to the satisfaction of the City Attorney. The signed agreement must be submitted at the same time as the standard agreement and bonding for the construction of the improvements, along with a deposit to cover the City's costs to review, process and approve the agreement.
(Ord. 564 § 3, 2019)
The reimbursement agreement must satisfy the following
A. 
Be prepared to the satisfaction of the City Attorney;
B. 
Be prepared with the assistance of a State-licensed civil engineer and contain the following:
1. 
A legal description of all benefiting properties. The area of benefit must include all parcels of land, or parts thereof, within the City which may be served by the improvements;
2. 
A detailed plat drawn at an engineering scale on legal-size paper showing the precise locations of all improvements and complete dimensions (including frontage) of all benefiting property;
3. 
A reimbursement schedule that includes a list of all benefiting properties with current tax assessor's parcel number, owner's name, property's street address, acreage of benefiting parcels and a benefit charge. The amount of the benefit charge assigned to each benefiting parcel is subject to the approval of the City Council. The benefit charge assigned to each parcel must bear a reasonable relationship to the benefit conferred upon that parcel by the improvements and must bear simple interest at the rate of five percent per annum on the unpaid balance;
4. 
A detailed estimated cost of the design and construction of the improvements;
5. 
The terms, conditions, and covenants of reimbursement and a trust agreement consistent with the requirements of this chapter.
C. 
Be consistent with the requirements of this chapter.
(Ord. 564 § 3, 2019)
After a reimbursement agreement is approved by the City Attorney, it must be approved by City Council at a public hearing. At least 10 days before the hearing, the City Clerk must notify the owner, or owners, of the land within the benefited area of the public hearing. The developer must provide address labels for all benefitting properties and pay all fees necessary for notice of the public hearing.
(Ord. 564 § 3, 2019)
After the hearing provided for in Section 11.42.050, the City Council will consider and determine the following:
A. 
The feasibility and necessity of the improvements;
B. 
Whether the improvements will be in the best interest of the City;
C. 
Whether to approve, conditionally approve, or deny the reimbursement agreement;
D. 
The amount to be reimbursed through the reimbursement agreement and
E. 
The allocation of reimbursement payments among the benefiting parcels.
(Ord. 564 § 3, 2019)
The reimbursement agreement must provide for reimbursement to applicant as follows:
A. 
The benefit charge as follows:
1. 
The amount received by the City as a benefit charge, if any, collected by the City from the owners of benefiting parcels for the privilege of using the improvements, less the administrative costs set forth in Section 11.42.080. The benefit charge for a parcel will be collected by the City as a condition of approval of any development of the benefited parcel, provided the imposition of such condition is reasonably related to such development.
2. 
The benefit charge for each parcel of land within the benefited area will be determined upon the Directors' report using standard assessment district formulas, as that report may be approved by the City Council.
3. 
The City Council retains the right to determine, in its sole discretion, both the total cost of the improvements and the benefit charge for each parcel.
B. 
The developer is entitled to receive the reimbursement provided in this section until all payments as specified in the reimbursement agreement are repaid. When the applicant has received full reimbursement, the applicant will be entitled to no further reimbursements arising out of benefit charges which might be paid to the City. All payments thereafter accruing become the property of the City.
C. 
All reimbursement funds will be deposited to a trust fund. The right of the developer to payments from the trust fund is personal and do not run with and may not be assigned with, the lands owned by the developer.
D. 
Payments will be made at such times as are convenient to the City, but in no event, less often than annually if the City has received any benefit charges.
E. 
Payment to the developer will include the interest collected from a benefited owner assessed against the benefit charge at a rate of five percent per year in simple interest.
(Ord. 564 § 3, 2019)
An administrative charge of five percent will be assessed on all reimbursement payments to cover administrative costs incurred by the City.
(Ord. 564 § 3, 2019)
The developer applying for reimbursement is solely responsible for all information needed to process the reimbursement agreement. Any errors or inaccuracies may constitute grounds for the denial of the developer's application.
(Ord. 564 § 3, 2019)
The developer must file the agreement, or a notice or memorandum of agreement, with the County Recorder following full execution of the agreement by all parties.
(Ord. 564 § 3, 2019)