HomeMy WebLinkAbout4356ORDINANCE NO. 4356
AN ORDINANCE of the City Council of the
City of Kent, Washington, repealing and readopting
Chapter 6.05 of the Kent City Code, now entitled
Latecomer Agreements Street and Utility, to
establish the requirements and procedures to obtain
a latecomer agreement, allowing developers and the
city under specified circumstances to be reimbursed
for the installation of street and utility bystem
improvements.
RECITALS
A. State law allows cities to enter into latecomer agreements, also
referred to as reimbursement agreements, that allow property owners who
have installed public street or public utility system improvements to recover
a portion of the costs of those improvements from other property owners
who later develop propefty in the vicinity of the improvements, within a
specified time period, and who use the improvements.
B. Specifically, Chapter 35.72 RCW allows for latecomer
agreements for the construction or improvement of street projects that the
owner elects to install as a result of ordinances that require the projects as
a prerequisite to further propefty development.
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C. Chapter 35.91 RCW allows for latecomer agreements for the
construction or improvement of utility projects-water and sewer facilities-
that the owner elects to install solely at the owner's expense.
D. Once a latecomer agreement is in place, propefty owners within
a defined assessment reimbursement area that did not contribute to the
construction costs of the improvements, yet benefit from them, are required
to pay a pro rata share of the improvements if they develop their property
within the period of time specified within the agreement. These time periods
are set fofth in state law. Latecomer agreements for street improvements
have a 15-year time limit and latecomer agreements for utility
improvements have a 20-year time limit.
E. Both Chapters 35.72 and 35.91 RCW also allow a municipality
to join with a private property owner to create an assessment
reimbursement area and jointly finance the costs and share in the
reimbursement or finance the costs on its own and become the sole
beneficiary of the reimbursements.
F. Previously, the Kent City Code only set forth the process and
procedures for street improvement latecomer agreements. This ordinance
establishes the requirements and procedures for latecomer agreements for
both street and utility improvements.
NOW, THEREFORE, THE CITY COUNCIL OF THE CIry OF KENT,
WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS:
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ORDINANCE
SECTION 7. - Repeal. Chapter 6.05 of the Kent City Code, entitled
"Street Improvement Reimbursement Agreements," is hereby repealed in
its entirety.
SECTION 2. - New Chapter. A new Chapter 6.05 of the Kent City
Code, entitled "Latecomer Agreements - Street and Utility," is hereby
enacted as follows:
Chapter 6.05
LATECOMER AGREEMENTS - STREET AND UTILITY
Sec. 6.05.010. Purpose. The purpose of this chapter is to provide
the conditions and procedures under which developers, including the city,
who installed qualifying street system improvements or utility system
improvements required as a prerequisite for future development and
pursuant to the city's development ordinances and policies, may be partially
reimbursed for the expenses of such improvements by other property
owners that did not contribute to these costs and receive a benefit from
these improvements, The city is authorized to enter into "latecomer
agreements" for these reimbursements pursuant to Chapter 35.72 RCW and
Chapter 35.91 RCW, as they now exist or are hereafter amended.
Sec. 6.05.020. Definitions. The following words, terms, and
phrases, when used in this chapter, shall have the meanings ascribed to
them in this section, except where the context clearly indicates a different
meaning:
A. Adjacent means abutting on public roads, streets, rights-of-way or
easements in which street system improvements are installed or directly
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connecting to street system improvements through an interest in real
property such as an easement or license.
B. Assessmenf means an equitable pro rata charge to be paid by an
owner of propefty within the assessment reimbursement area for the cost
of construction of street and/or utility system improvements made pursuant
to a latecomer agreement.
C. Assessment reimbursement area means that area which includes all
parcels of real property adjacent to street system improvements or likely to
require connection to or service by utility system improvements constructed
by a developer.
D. City administrative cosfs means all costs incurred by the city that are
directly related to the drafting, execution, recording and administration of
the latecomer agreement, including any mailings to other propefty owners,
any hearings before City Council, as well as any costs and expenses incurred
for attorneys or consultants. City administrative costs do not include permit
fees or the application fee for the latecomer agreement.
E. Cost of construction means the sum of the direct construction costs
incurred to construct the street and/or utility system improvements plus
developer administrative costs and the city latecomer administrative costs.
Direct construction costs include but are not Iimited to the actual labor and
material construction costs incurred by the developer; reasonable
engineering and surveying costs; bonding costs; environmental mitigation;
relocation and/or new construction of private utilities as required by the city;
and relocation and/or installation of street lights, signage.
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F. Developer means the individual or entity that contracts with the city
for the construction of street and/or utility system improvements, where
such improvements are a requirement for development of real property
owned by such entity or individual, As permitted by RCW 35.72.050 and
35.91.020, the city, or other public entity, may join with or be construed as
a developer for the purpose of recovery of street or utility system
improvement costs.
G. Developer administrative costs means all indirect costs incurred by
the developer in the creation and execution of the latecomer agreement and
managing the project; such as office supplies, mailings, clerical services,
telephone expenses, accounting expenses and project oversight. Developer
administrative costs shall not exceed three percent of all direct construction
costs.
H. Director means the City of Kent public works director, or his or her
designee,
L Latecomer agreemenf means a written contract between the city and
one or more developers providing partial reimbursement for the cost of
construction of street system improvements and/or utility system
improvements to the developer by owners of property who would be
required to construct these improvements and who did not contribute to the
original cost of construction.
J, Latecomer fee or assessment means a charge collected by the city
against a real property owner within the assessment reimbursement area
who:
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1. Connects to or uses the utility system improvement where fees
are separately stated, or is a part of a connection fee or other fee for
providing access to the city's utility system; or
2. Receives a building or development permit for real property
located adjacent to, or having access to, the street system improvement
constructed under this chapter.
K. Street system improvements means public street and alley
improvements made in existing or subsequently dedicated or granted rights-
of-way or easements and any associated improvements including but not
limited to such things as design, engineering, surveying, inspection, grading,
paving, installation of curbs, gutters, pedestrian facilities, street lighting,
bike lanes, and traffic control devices, relocation and/or construction of
private utilities as required by the city, relocation and/or construction of
street lights, traffic control devices, signage and other similar
improvements.
L. Utility system improvemenfs means city-owned water, sewer and
storm drainage system improvements as defined by RCW 35.91.015, which
shall include but not be limited to design, engineering, surveying, inspection,
testing, and installation of improvements as required by the city, and
includes but is not limited to the following, by utility type:
1. Water system improvements, including but not limited to such
things as mains, valves, fire hydrants, telemetry systems, pressure reducing
stations and/or valves, and other associated appuftenances;
2. Sewer system improvements, including but not limited to such
things as gravity mains, lift stations, force mains, telemetry systems, and
other associated appurtenances; and
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3. Storm sewer system improvements, including but not limited
to such things as water quality structures and systems, detention and
retention facilities, and storm water collection and conveyance facilities.
Sec. 6.05.030. Application for latecomer agreement.
A. Applicants. Any developer using private funds to construct street
system improvements and/or utility system improvements required as a
prerequisite to further property development may apply to the city for a
latecomer agreement in order to recover a pro rata share of the costs of
construction from other propefty owners that will later connect to or use the
street and/or utility system improvements constructed by the developer.
B. Application form and fee. An application for a latecomer agreement
shall be submitted upon a form provided by the city and be accompanied by
the application fee established by resolution by the City Council.
C. Timing of application. The application for a latecomer agreement shall
be made before the street and/or utility system improvements proposed for
construction are approved by the city through the issuance of a civil
construction or other applicable permit.
D. Application contents. The application shall contain the following
information which shall be approved by a state of Washington licensed
engineer or other appropriately licensed professional:
1, A legal description and vicinity map of the developer's propefty.
2. A legal description of the properties within the .developer's
proposed assessment reimbursement area, together with the names and
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addresses of the owners of such propefty as shown on the records of the
Assessor's Office of King County.
3. The developer's proposed assessment reimbursement area and
general location of the system improvements to be included.
4. The developer's proposed allocation of the costs of construction
to the individual properties within the proposed assessment reimbursement
area and the method used for such allocation,
5. Statement from a state of Washington licensed contractor or
civil engineer containing an itemized estimate of the total projected cost of
construction.
6. Such other information as the director determines would be
relevant in considering the application.
E. Application review.
1. The Director shall review all applications and shall approve
the application if following criteria are met:
a. The application is timely, complete and the application
fee has been paid;
b, The city's ordinances require the proposed
improvements to be constructed as a prerequisite to fufther propefty
development;
c. The proposed improvements fall within the definition of
street and/or utility system improvements as those terms are defined in this
chapter; and
d. The proposed improvements are consistent with the City
of Kent Design and Construction Standards, design guidelines, development
regulations, comprehensive plan, comprehensive sanitary sewer plan,
comprehensive water plan, storm water master plan and transportation
master plan.
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2. If any of the above criteria are not met, the Director shall either
condition approval as necessary in order for the application to conform to
such criteria, or deny the application. The final determination of the Director
shall be in writing.
3. The Director may establish policies and procedures for
processing applications and complying with the requirements of this chapter
and applicable state law.
Sec. 6.05.040. Preliminary determinations. Upon approval of a
latecomer application, the Director shall formulate a preliminary assessment
reimbursement area and preliminary assessment amount for each real
property parcel included in the preliminary assessment reimbursement area
as follows:
A. For street system improvements, the assessment reimbursement
area shall be formulated based upon a determination of which parcels
adjacent to the street system improvements would require similar street
system improvements upon development or redevelopment.
B. For utility system improvements, the assessment reimbursement
area shall be formulated based upon a determination of which parcels in the
proposed area would require similar utility system improvements upon
development or redevelopment or would be allowed to connect to or use
the utility system improvements.
C. A pro rata share of the cost of the improvements shall be allocated
to each parcel included in the assessment reimbursement area based upon
the benefit to the property owner. The method or methods used to calculate
the allocation of the assessment may be either front footage, number of
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units, square footage, zone and termini method, or other equitable method,
as determined by the city.
Sec. 6.O5.050. Preliminary determination notice.
A. The city shall send the preliminary assessment reimbursement area
and the preliminary assessment formulated by the Director, including the
preliminary determination of area boundaries, assessments, and a
description of the propefty owner's rights and options, by ceftified mail to
the property owners of record within the preliminary assessment
reimbursement area.
B. The developer or any property owner within the preliminary
assessment reimbursement area may, in writing within 20 days of the date
of mailing the notice, request a hearing to be held before the City Council to
contest the preliminary assessment reimbursement area and preliminary
assessment. Notice of such hearing shall be given to all propefty owners
within the preliminary assessment reimbursement area and the hearing shall
be conducted as soon as is reasonably practical. The City Council is the final
authority to establish the assessment reimbursement area and the
assessment for each property within the assessment reimbursement area,
C, If no written request for a hearing is received as required, the
determination of the Director shall be final.
Sec. 6,O5.060. Latecomer agreement.
A. Based upon the preliminary assessment reimbursement area and the
preliminary assessment, if no hearing is requested, or based upon the City
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Council's determination of the assessment reimbursement area and
assessment if a hearing is requested, the Director shall prepare and give to
the developer a latecomer agreement. A separate latecomer agreement shall
be executed for each of the following categories of improvement, as
applicable: street system improvements and utility system improvements.
B. Each agreement shall include a provision requiring that every two
years from the date the agreement is executed, the developer entitled to
reimbursement under this section shall provide the city with information
regarding the current contact name, address, and telephone number of the
person, company, or partnership that originally entered into the agreement,
If the developer fails to comply with the notification requirements within 60
days of the specified time, then the city may collect any reimbursement
funds owed to the developer under the agreement. The funds collected
under this subsection shall be deposited in the capital expenditure account
of either the city's utility fund or street fund, as appropriate.
C. The term of latecomer agreements is as follows:
1. For street system improvements, each latecomer agreement
shall be valid for a period not to exceed 15 years from the effective date of
the agreement.
2. For utility system improvements, each latecomer agreement
shall be valid for a period not to exceed 20 years from the effective date of
the agreement,
D. The city may terminate a latecomer agreement if the developer fails
to commence or complete construction within the time and manner required
in the permits for the improvements. If the agreement is terminated, the
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city shall record a release of latecomer agreement in the King County
recorder's office.
Sec. 6.O5.O7O, Construction - final costs - conveyance.
A. The developer shall construct the improvements and, upon
completion, request final inspection and acceptance of the improvements
by the city, subject to any required obligation to repair defects. All
construction, inspection and testing shall conform to the Kent City Code and
City of Kent Design and Construction Standards.
B, Within 120 days of completion of construction, the developer shall
provide the city with documentation of the actual costs of the improvements
and a certification by the applicant that all of such costs have been paid.
The city shall use this information to finalize the assessment paid by owners
within the assessment reimbursement area, which will become part of the
latecomer agreement recorded in accordance with Section 6.05.080,
C. After the requirements of subsections (A) and (B) of this
section 6.05.070 have been satisfied, the developer shall provide the city
with an appropriate deed of conveyance or other equivalent written
document transferring ownership of the improvements to the city, together
with any easements needed to ensure the city's right of access for
maintenance of the improvements. Title to the improvements shall be
conveyed to the city clear of all encumbrances.
D, No connection to, or other use of, the improvements will be allowed
or permitted until the city has officially accepted the construction and title
to the improvements has been conveyed to the city.
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Sec. 6.05.O8O. Recording of latecomer agreement.
A. The provisions of the latecomer agreement shall not become effective
as to any owner of real estate not a pafty to the agreement until it is
recorded with the King County recorder's office. For a utility latecomer
agreement, recording must be prior to the time that the owner of the real
estate taps into or connects to water or sewer facilities,
B. The city shall file the fully executed latecomer agreement in the
official propefty records of King County within 30 days of final execution;
provided, that the developer shall have an independent duty to review the
King County recorder's office records to confirm that the latecomer
agreement has been properly and timely recorded.
Sec. 6.O5.090, Defective work, The developer shall be responsible
for all work found to be defective within one year after the date of
acceptance of the improvements by the city. Nothing in this chapter shall
preclude the Director from requiring a peformance bond for the street or
utility system improvements as authorized for such improvements within the
Kent City Code or City of Kent Design and Construction Standards.
Sec. 6.05.100. Payment of assessment remittance to
developer.
A. Upon recording, the latecomer agreement shall be binding upon all
parcels located within the assessment reimbursement area who are not
party to the agreement and did not contribute to the original cost of the
utility system improvements and/or street system improvements. Payments
shall be paid to the city in one lump sum as follows:
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1. Assessments for street system improvements shall be paid
prior to the development or redevelopment of property.
2. Assessments for utility system improvements shall be paid
prior to connection to or use of the utility system improvements.
B, The city will pay over to the developer the amounts collected less any
unpaid city administrative costs within 60 days of receipt.
C. When the assessment for any property has been paid in full, the
Director shall issue a ceftification of payment that will release such propefty
from the latecomer agreement which may be recorded by the owner.
D. The latecomer assessment shall be in addition to the usual and
ordinary charges, including connection charges, tap charges, system
development charges, and any other fees or charges which must be paid by
persons applying for city services.
Sec. 6.05.110. Segregation. The Director shall, upon the request
of any property owner within the assessment reimbursement area,
segregate the assessment. Any request for to segregate the assessment
must be submitted before the application for a lot line adjustment or
subdivision. The request shall include a map showing the proposed
subdivision of propefty, including legal descriptions and the proposed cost
segregation based on the original method of assessment. The assessment
shall only be segregated if the lot line adjustment or subdivision is
completed, The property owner seeking segregation of the assessment shall
pay an additional review fee as established by resolution by the City Council.
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Sec. 6,O5,120. Removal of unauthorized connections or taps.
Whenever any tap or connection is made into any utility improvement
without payment of the assessment being made as required by this chapter,
the Director is authorized to remove and disconnect, or cause to be removed
and disconnected, such unauthorized tap or connection including all
connecting tile or pipe located in the right-of-way and to dispose of such
unauthorized material without liability, The owner of the propefty where the
unauthorized connection is located shall be liable for all costs and expenses
of any type incurred to remove, disconnect, and dispose of the unauthorized
tap or connection.
Sec. 6.05.130. City fees and cost recovery. The developer shall
pay the following fees:
A, Application fee. The application fee as set fofth in Section 6,05.030,
payable at the time the application is submitted.
B. City administrative costs. The developer shall reimburse the city for
its administrative costs, as defined in Section 6.05.020(D). This shall be paid
prior to and as a condition of the recording of the latecomer agreement.
C. Recording fee. For every separate parcel of property within the
developer's assessment reimbursement area, the city shall charge a
recording fee in accordance with fees charged by the King County recorder's
office. This fee shall be paid as part of the city administrative costs prior to
and as a condition of the recording of the latecomer agreement,
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Sec. 6.O5.L4O. Enforcement of latecomer obligations.
A. Nothing in this chapter is intended to create a private right of action
for damages against the city for failing to comply with the requirements of
this chapter. The city, its officials, employees, or agents may not be held
liable for failure to collect a latecomer assessment unless the failure was
willful or intentional,
B. In processing and imposing obligations in this chapter for
reimbursement of developers, the city in no way guarantees payment of
assessments, or enforceability of assessments, or enforceability of the
latecomer agreement, or the amount(s) thereof, against such persons or
property; nor will the offices or finances of the city be used for enforcement
or collection of assessments beyond those duties specifically undertaken by
the city herein. It shall be the obligation of a developer to take whatever
authorized means are available to enforce payment of assessments, and
developers are hereby authorized to take such actions. The city shall not be
responsible for locating any beneficiary or survivor entitled to any benefits
by or through a latecomer agreement.
C. If the developer fails to comply with the notification requirements set
forth in Section 6.05.050 and within the latecomer agreement within 60 days
of the specified time, then the city may collect any reimbursement funds
owed to the developer under the latecomer agreement. Such funds must be
deposited in the capital fund of the city.
Sec. 6.O5.150. City participation authorized. As an alternative
to financing projects under this chapter solely by a developer, the city may
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join in the financing of improvement projects and may be reimbursed in the
same manner as the developer who pafticipates in the projects, As another
alternative, the city may create an assessment reimbursement area on its
own initiative, without the pafticipation of a private property owner or
developer, finance the costs of the street or utility improvements, and
become the sole beneficiary of the reimbursements that are contributed.
The city will only seek to be reimbursed for the costs of improvements that
benefit that portion of the public who will use the improvements within the
assessment reimbursement area established pursuant to state law. No costs
for improvements that benefit the general public may be reimbursed.
SECTION 3, - Severability. If any one or more section, subsection,
or sentence of this ordinance is held to be unconstitutional or invalid, such
decision shall not affect the validity of the remaining portion of this ordinance
and the same shall remain in full force and effect.
SECTION 4. - Savings. The existing Chapter 6.05 of the Kent City
Code, which is repealed and replaced by this ordinance, shall remain in full
force and effect until the effective date of this ordinance.
SECTION 5. - Corrections by City Clerk or Code Reviser. Upon
approval of the city attorney, the city clerk and the code reviser are
authorized to make necessary corrections to this ordinance, including the
correction of clerical errors; ordinance, section, or subsection numbering; or
references to other local, state, or federal laws, codes, rules, or regulations.
SECTION 6, - Effective Date. This ordinance shall take effect and be
in force 30 days from and after its passage, as provided by law.
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DANA RALPH, MA
ATTEST:
CI
KIMBERLEY A.MOTO, CITY CLERK
APPROVED
ARTHUR "
April T, 2O2O
Date Approved
April 7. 2020
Date Adopted
April 13. 2020
Date Published
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ITY ATTORNEY
1B
WoseatlsQfmos
Re: Advertiser Account# 480940
Agency Account #: 0
AD TEXT -.ne'-'i*l{rldSj$i*"PASSED BY THE CITY COUNCIL
Ad #: 940019
Agency Name:
The following ore summories of ordi-
nonces possed by the Kenl City Council onApril 7, 2020
ORDINANCE NO.4356- AN ORDINANCEof the City Council of the City of Kent,
Woshinston, repesling ond reodopting
Chdpter 6.05 of lhe Kenl City Code, nowentilled Loiecomer Asreemenls - Streelond Utilily, to esloblish lhe requirementsqnd procedures lo obloin q lqtecomer
ogreemeni, ollowing developers ond lhecity under specified circumstonces to bereimbursed for the instollolion of street
ond utility system improvemenls,
This ordinonce sholl ioke effeci ond be in
force 30 doys from ond o{ter its possoge,
os provided by low.
ORDINANCE NO.4357 - AN ORDINANCEof the Cily Council of lhe Cily of l<enl,
Woshinglon, dedicotins os righl of woy
o poriion of Cily-owned properly locoted
olons Willis Slreel (SR 516) belween lheUnion Pocific Roilrood lrocks ond 4ih
Avenue S., quthorizing lhe Moyor to signoll documents necessory lo finolize ond
define ihe dedicolions outhorized by ihis
ordinonce, ond directins the City Clerk to
record o cerlified copy of ihis omendins
ordinonce upon its possose.
This ordinonce sholl loke effect ond be in
force lhirty doys from ond dffer ils pds-
soge, os provided by low.
A copy of the complele lext of sny ordi-
nonce will be mdiled upon request of the
Cily Clerk.
l<imberley A. l(omoto, City Clerk
Kkomoto@ KentWA.gov
253-856-5725