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.
"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)