HomeMy WebLinkAbout2548 Street Latecomer AgreementsOrdinance No. 2548
AN ORDINANCE OF THE CITY OF PORT TOWNSEND CREATING A NEW
CHAPTER 12.26, STREET LATECOMER AGREEMENTS, OF THE PORT
TOWNSEND MUNICIPAL CODE, AND ESTABLISHING PROCEDURES AND
REGULATIONS FOR ENTERING INTO STREET LATECOMER AGREEMENTS
AND ESTABLISHING BENEFIT REIMBURSEMENT AREAS FOR STREET
IMPROVEMENTS
WHEREAS, the City wishes to promote the orderly development of street and other public
rights-of-way improvements within city limits; and
WHEREAS, Title 12, Streets and Sidewalks, of the Port Townsend Municipal Code,
makes the construction or improvement of street projects a prerequisite to development of a
property owner's parcel(s); and
WHEREAS, pursuant to RCW 35.72.010, when a property owner elects to install those
required street improvements such owner may propose to the City that an assessment
reimbursement contract (known as a "street latecomer agreement") be created; and
WHEREAS' pursuant to RCW 35.72.020, the City has the authority to enter into contracts
whereby a property owner can be reimbursed for a portion of the costs of street projects by other
property owners; and
WHEREAS, in order to enter into such contracts, the City must determine the
reimbursement area that would be liable to assessment and select a method of cost apportionment
based on the benefit of the street project(s) to the other property owners, as further specified in
RCW 37.72; and
WHEI~AS, the City Council has determined that under appropriate circumstances it will
promote the health, safety, and general welfare of the citizens of Port Townsend to enter into
street latecomer agreements which establish benefit reimbursement areas and charges, and that
procedures should be specified for doing so,
NOW, THEREFORE, the City Council of the City of Port Townsend does ordain as
follows:
Section 1. A new Chapter 12.26, Street Latecomer Agreements, is added to the
Port Townsend Municipal Code and shall be codified by the City's Code Reviser to read as
follows:
Chapter 12.26
STREET LATECOMER AGREEMENTS
12.26.010
12.26.020
12.26.030
12.26.040
12.26.050
12.26.060
12.26.070
12.26.080
12.26.090
12.26.100
12.26.110
12.26.120
12.26.130
12.26.140
12.26.150
12.26.160
12.26.170
12.26.180
12.26.190
Purpose/intent.
Definitions.
Authorization - Minimum project size.
Application - Design standards/cost estimates - Combined street and utility latecomer
agreement.
Duration of street latecomer agreements.
Public works director's determination - Right of Appeal.
Assessment reimbursement area and charge - Notice/Appeal.
Written agreement - Payment of city costs in excess of application fee.
Street latecomer agreement must be recorded.
Construction and acceptance of improvements - Recording of final fees.
Acceptance of improvements or systems.
Defective work.
Implementation of street latecomer agreement-Prepayment Requirement/
Administrative costs.
Payments of street latecomer charge.
Rights and non-liability of city.
Director's Authority - Violations.
Existing latecomer agreements/completed construction.
Alternative financing method.
Severability clause.
12.26.010 Purpose/intent.
A. Purpose. The purpose of this chapter is to define the procedures for executing 15-year
contracts between the city and developers for private construction of street improvements by
providing means for (1) partial cost recovery through a charge to later developers who were not
required to install similar street projects because they were already provided for by the original
developer, and (2) the establishment of benefit areas defining which properties are subject to such
charges and reimbursement shares based upon the benefit to the property. This chapter is also
intended:to implement RCW 35.72, et:seq., as it now reads, or is later amended.
B. Intent. It is intended that the processing of street latecomer agreements under this
chapter be independent from the project permit time lines contained in Tire 20.
12.26.020 Definitions. The following definitions shall apply to this chapter:
2 Ord. No. 2548
1. "Adjacent to" generally means abutting, but in limited circumstances (such as in the case
of arterials or collector streets) may include lots which are situated nearby, or close to, the
improvements.
2. "Benefit area" means that area which includes parcels of real estate adjacent to the
improvements that would require similar street improvements as a condition of development.
3. "City" means the city of Port Townsend, a legally incorporated municipality represented
by the elected city council and/or designated office or official.
4. "City street standards" and "design standards" are those standards, specifications and
criteria established by the city by ordinance or within manuals for public and private right-of-way
improvements.
5. "Cost of construction" means the cost for design, labor, materials and installation
necessary to construct or improve a street project which complies with city standards. If there is
a disagreement between the City and the developer about the "cost of construction" in a particular
situation, the determination of the public works director shall be final.
6. "Design standards manual" shall mean the Design and Construction Standards and
Specifications Manual, as prepared and approved by the public works director and adopted by the
city council, including all amendments thereto.
7. "Developer" means an individual, firm, corporation or partnership who proposes to
improve real property within the city.
8. "Developer reimbursement charge" means a reimbursement share to be paid by an owner
of property who did not contribute to the original cost of the improvements, based on the benefit
to the property from the street project. The term "developer reimbursement charge" may be used
interchangeably with the terms "street latecomer charge" or "street latecomer fee."
9. "Director" or "public works director" means the director for the city of Port Townsend
public works department or his or her designee.
10. "Property owner" means the record owner, based on the records of the Jefferson County
assessor, on the day the street latecomer agreement is signed by the parties.
11. "Street latecomer agreement" or "assessment reimbursement contract" means a written
agreement, recorded in the Jefferson County auditor's office, between the city as approved by the
city council and executed by the mayor, and one or more developers providing both for
construction of street projects and for partial reimbursement to the develOper by owner(s) of
3 Ord. No. 2548
properties benefitted by the improvements if such owner(s) develop the benefitted property within
the 15-year term of the agreement.
12. "Street improvements" subject to reimbursement, may include the design, acquisition of
right-of-way and/or easements, grading, construction, paving, installation of curbs, streets,
gutters, storm drainage, sidewalks or bike lanes incorporated as part of the street improvements,
street lighting, signs, planting strips, traffic controls, and other similar improvements as required
by the street standards of the city. The term "street improvements" may be used interchangeably
with the term "street projects."
12.26.030 Authorization -Minimum project size.
A. Authorization. Any property owner or developer of property located within the city
limits who uses private funds to construct street improvements, may apply to the city building
and community development (BCD) department to establish a street latecomer agreement in order
to recover a portion of the costs from owner(s) of property benefitted by such improvements when
such owner(s) later apply for permits to develop their property.
B. Minimum Project Size. To be eligible for a street latecomer agreement, the estimated
total cost of the street improvements must be at least $2,500.00, to be adjusted annually in
accordance with the Engineering News-Record Index ("ENR"). The determination of eligibility
shall be made by the public works director, based upon contractor bids, engineering or
architectural estimates, or other information determined by the director to be a reliable basis for
estimating cost. The determination of the director shall be final and conclusive.
12.26.040 Application - Design standards/cost estimates - Combined street and unity latecomer
agreement.
A. Application Form - Fee. The application must be on a form provided by the city BCD
department and accompanied by a non-refundable application fee in an amount as set forth in
PTMC 3.36, except as provided under subsection (D) below for combined utility and street
latecomer agreements. The application shall be accompanied by the following:
1. Cost Estimate/Design Standards. The street improvements design shall be based on
PTMC Title 12 (the streets standards ordinance), the design standards manual, and any
requirements or modifications as recommended or required during or following the pre-application
conference for development review. Based on this information, the applicant shall submit with
the application a statement from a licensed contractor or engineer containing an itemized estimate
of the total projected cost of the street projects, including property acquisition, acquisition of
easements and/or right-of-way, contract administration, grading, construction, paving, installation
of curbs, streets, gutters, storm drainage, sidewalks or bike lanes incorporated as part of the street
4 Ord. No. 2548
improvements, street lights, traffic signals, signs, and planting strips, and other similar
improvements as required by city street standards.
2. A map depicting the boundaries of'a proposed assessment reimbursement area and
consisting of those properties adjacent to the street improvements for which similar improvements
would be required as a prerequisite to development, each parcel of property within such area, and
the street improvements in relation to such property.
3. Copies of executed deeds and/or easements in which the applicant is the grantee for
all property necessary for the installation of such street projects.
4. The name and mailing address of each owner of record of property within the
proposed benefit area, together with the legal description and the size and the county assessor's
tax number for each property. Such information must be certified as complete and accurate by
the applicant.
B. Additional Requirements. When deemed necessary in the discretion of the public works
director to determine the benefit area and reimbursement charge, the city may also require that
the application be accompanied by any or all of the following:
1. A proposed benefit area based on an assessment of which parcels adjacent to the
improvements would require similar street improvements as a condition of development, including
if requested by the City, a special benefit analysis prepared by a certified MAI appraiser.
2. A proposed assessment reimbursement roll stating a proposed assessment for each
parcel of property within the proposed assessment reimbursement area, to be determined by
apportioning the total street project costs among such parcels on the basis of the benefit of the
project to each such parcel of property.
3. Detailed construction plans and drawings of the entire improvements prepared and
stamped by a professional engineer with specific expertise regarding design, construction and
maintenance of public streets, and certifying that the design complies with city design standards
and specifications.
C. Compliance with City Requirements. Before an agreement will be processed, applicants
must comply with the requirements of this chapter, and all other applicable city ordinances, rules
and regulations.
D. Combined Street and Utility Latecomer Agreements. If a developer or property owner
is installing utility improvements under Chapter 13.28 PTMC and requests a utility latecomer
agreement under that chapter, and is concurrently installing street improvements under Title 12
PTMC and requests a street latecomer agreement, only one latecomer agreement shall be
5 Ord. No. 2548
processed under the procedures set forth in this chapter, provided that the benefit areas for the
utility improvements and the street improvements are identical (if they are not identical, the
agreements will be processed separately). The application fee for a combined utility and street
latecomer agreement shall be a single fee, in the amount set by Chapter 3.36 PTMC for a street
latecomer agreement.
12.26.050 Duration of street latecomer agreements.
The street latecomer agreement shall be for a period of 15 years from the date the latecomer
agreement is signed by both parties.
12.26.060 Public works director's determination - Right of Appeal.
A. Approval of Application. The public works director shall review all applications and
shall approve the application only if the following requirements are met:
1. The project satisfies the minimum cost requirement and complies with city design and
construction standards and all applicable federal, state, and local laws, rules and regulations,
including but not limited to street codes, street standards manual, and environmental laws.
2. The proposed improvements fall within the definition of street improvements.
3. The proposed improvements are not constructed or currently under construction,
unless the constructed improvements fall within Section 12.26.170 of this chapter.
4. The proposed improvements are consistent with the Port Townsend Comprehensive
Plan, transportation plan and/or non-motorized plan or other functional plan adopted by the City;
and
5. The city has the capability and capacity to service and maintain the street
improvements.
B. Public Works Director's Determination/Appeal of Determination. In the event all of the
above criteria are not satisfied, the public works 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 public works director shall be in writing. This decision may be
appealed as follows:
1. The final determination of the public works director is an administrative decision that
may be appealed by an applicant to the city council. The appeal must be filed with the public
works department within 15 calendar days of the date the final determination is mailed to the
6 Ord. No. 2548
applicant. Any decision of the public works director not appealed shall be final at the time the
decision is made.
2. The appeal must be accompanied by a filing fee in the amount set forth in
Chapter 3.36 PTMC.
3. The procedures set forth in Chapter 1.14 PTMC shall apply to any appeal. In
reviewing a final determination, the city council shall apply the criteria set forth above, and shall
uphold the administrative decision of the public works director, unless evidence clearly
demonstrates that the criteria have been satisfied.
12.26.070 Assessment reimbursement area and charge - Notice/Appeal.
A. Reimbursement Area Formula.
1. The public works director shall fOrmulate the benefit reimbursement area for all
approved applications based upon a determination of which parcels adjacent to the improvements
would require similar street improvements upon development and will be benefitted by the
improvements.
2. The estimated amount of the reimbursement charge shall be established so that each
property owner obligated to make a payment under this chapter will pay a fair, pro-rata share of
the cost of construction of the improvement and reimbursement of contract administration costs
of the street project. Provided, however, that the public works director shall have the authority
to remove from the benefit area later-developed properties 0t such properties do not need to use
the street improvements due to alternate access, or a similar, valid reason as approved by the
public works director (which may include such factors as topography, traffic circulation and/or
cost).
3. The city shall determine, in its sole discretion, the reimbursement share based on the
benefit to the property by using a method of cost apportionment such as a front footage, acre, or
other equitable basis.
B. Clarification Regarding Multiple Lots Owned by the Original Developer or Property
Owner.
1. For the purposeof formulating the/proportionate benefit amount, the benefit area
shall include all properties owned by the developer at the time of the application.
2. The applicant/property owner or developer is not entitled to reimbursement for lots
that are adjacent to the improvements if those lots are owned by such person at the time they apply
for the street latecomer agreement or at the time the street improvements are constructed.
7 Ord. No. 2548
C. Notice to Property Owners/Right to Request a Hearing. A notice containing the benefit
reimbursement area boundaries and preliminary or estimated charges, shall be sent by certified
mail, return receipt requested, to the property owners within the proposed benefit reimbursement
area. The notice shall also contain a description of the property owner's rights to request a public
hearing before the city council with regard to the area boundaries and special benefits and charges.
The public works department will maintain a certificate or sworn declaration of mailing in its files.
D. Appeal - Request for Heating.
1. Any appeal requesting a hearing under 12.26.07003) must be fried within 15 calendar
days of the date the notice is mailed to the property owners. Notice of the hearing shall be given
to all affected property owners. The appeal must be accompanied by a filing fee in the amount
set forth in Chapter 3.36 PTMC. Any decision of the public works director not appealed shall
be final at the time the decision is made.
2. The procedures set forth in Chapter 1.14 PTMC shall apply to any appeal. In
reviewing a final determination, the city council shall apply the criteria set forth in 12.26.070(A)
above, and shall uphold the administrative decision of the public works director, unless evidence
clearly demonstrates that the criteria have been satisfied.
3. After reviewing the public hearing testimony and the determination of the public
works director, the city council may approve, modify or reject the benefit reimbursement area
and/or charges. The city council's determination shall be final.
4. Any judicial appeal of the city council's determination must be filed and served
within 21 days of the issuance of the decision.
12.26.080 Written agreement - Payment of city costs in excess of application fee.
A. Upon approval of the application, formulation of a reimbursement area and charge,
notice to the property owners and expiration of the appeal period or a determination by the city
council, the street latecomer agreement and suPporting documents shall be presented to the city
council with a resolution authorizing the mayor to sign the agreement on behalf of the city.
B. If in processing the application, the city incurs costs for engineering or other professional
consultant services, the public works director shall so advise the city council. Council approval
may be conditioned upon receipt of payment by the applicant of an additional amount sufficient
to compensate the city for its actual costs in excess 'of the application fee.
8 Ord. No. 2548
12.26.090 Street latecomer agreement must be recorded.
In order to become effective, a street latecomer agreement must be recorded with the Jefferson
County auditor within 30 days of the final execution of the agreement. After the agreement has
been signed by all parties, the city shall record the agreement, with a notice to title on each
property within the benefitted area.
12.26.100 Construction and acceptance of improvements- Recording of revised fees.
A. Construction of Improvements. After the street latecomer agreement has been signed
by all parties, and all necessary permits and approvals have been obtained, the applicant 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.
B. Documents Required. An appropriate bill of sale, easement and any other document
needed to ensure right-of-access for maintenance and replacement shall be provided, along with
documentation of the actual costs of the improvements and a certification by the applicant that all
of such costs have been paid. A copy of any engineering "as-built" plans, specifications and
drawings, including all necessary rights-of-way and easement documents shall be provided to the
city prior to acceptance of the street improvements. The city may also require that the documents
be provided on "AutoCAD," or another electronic format as specified by the city. In addition, the
developer shall deliver to the city reproducible copies of all plans and specifications, if any, and
shall comply with any other requirements imposed by city codes or adopted standards for
engineering plans, specifications, and drawings.
C. Revised List of Charges. The final cost of the improvements shall be reviewed against
the preliminary assessments established by the city. Upon a showing of good cause, the
agreement shall be modified to include cost overruns up to a maximum of 10 percent. In the event
that actual costs are less than the public works director's estimate by 10 percent or more, the
public works director shall recalculate the charges, reducing them accordingly. For any revisions
under this section, the public works director shall cause a revised list of charges to be recorded
with the Jefferson County auditor, with a notice to title on each property within the benefitted
area.
12.26.110 Acceptance of improvements or systems.
Upon approval of a street.latecomer agreement and the completion and acceptance of the
construction, the street improvement(s) and/or system(s) shall become accepted city streets.
Acceptance of construction of the improvements must be evidenced by a written sign-off by the
public works director. Acceptance of the street as a city street shall be accomplished in the
manner set forth in the street standards ordinance, Chapter 12.04 PTMC. Transfer of ownership
or the grant of any easements to the city shall be clear of all encumbrances.
9 Ord. No. 2548
12.26.120 Defective work.
The applicant shall be responsible for all work found to be defective within one year after the date
of acceptance of the street improvements by the city. The public works director may require the
applicant or his/her assignee to provide the city with a Washington Surety "Maintenance Guaranty
Bond" or other appropriate bond as set forth in city street codes or any adopted design standards.
12.26.130 Implementation of street latecomer agreement-Prepayment requirement/Administrative
costs.
A. Implementation of Agreement. Upon recording, the street latecomer agreement and
charge shall be binding upon all property owners of record within the benefit area who were not
parties to the contract. If any such owner later develops his or her property within 15 years from
the date of recording with the Jefferson County auditor and is not required to install similar street
improvements because such improvements were already installed under the latecomer agreement,
the city shall require that owner to reimburse the developer/owner who initially constructed the
projects pursuant to the reimbursement share previously determined in the street latecomer
agreement.
B. Administrative Charge. Unless modified in the agreement, the city shall add 10 percent,
but not less than $20, to each street latecomer charge, to be used by the city to defray the costs
of labor, bookkeeping, and accounting necessary to administer the agreement, such amount to be
adjusted annually in accordance with ENR Index.
C. Prepayment Requirement. No building permit shall be issued until the reimbursement
payment is made.
D. Non-liability of City. The city will exercise its best efforts to assure compliance with
this section; however, in no event shall the city incur liability for any unauthorized use of the
constructed street improvements.
12.26.140 Payments of street latecomer charge - Notice of change of address required.
A. Single Sum Payment Required. Each payment of the street development reimbursement
charge, including administrative costs, shall be made payable to the city treasurer in one single
sum. The city will pay the amounts due to the beneficiary (developer/property owner) within 60
days of receipt, subject to paragraph C below.
B. Certificate of Payment. When the street latecomer fee for a particular parcel has been
paid, at the request of the owner/payor the city shall approve a certification of payment which may
be recorded by the owner.
10 Ord. No. 2548
C. Notice Requirement. Throughout the term of the agreement the developer/property
owner shall notify the city, in writing, of any change of his or her name(s) or address(es). Absent
such notice, the city is not responsible for locating any developer/property owner entitled to
benefits under the street latecomer agreement. The developer/property owner may not assign any
rights under the street latecomer agreement without written notification to the city. Absent such
notification, any assignment of rights under the agreement shall have no effect on the obligations
of the city under the latecomer agreement.
D. Unclaimed Funds. Any funds not claimed by the developer/property owner within 180
days from the date collected shall become the property of the city. Before the expiration of the
180 days, the city shall send to the developer/property owner, by certified mail, return receipt
requested, a final notice of the city's intent to deposit the funds as city revenue. If the city does
not receive a response by the expiration of the 180 days, the funds shall be revenue to the city
street fund or as allowed by law.
12.26.150 Rights and non-liability of city.
A. City Rights. The city reserves the right to refuse to enter into any street latecomer
agreement or to reject any application thereof.
B. Hold Harmless Agreement Required. All applicants for street latecomer agreements shall
be required to provide a written release, indemnification, and hold harmless agreement releasing
and indemnifying the city from all claims of any nature, including property damage and personal
injury arising out of the execution, establishment, enforcement and implementation of such
agreement including claims arising during the course of cons~action and during the one-year
warranty period following acceptance of the improvements by the city. Such indemnification shall
include attorney fees and costs reasonably incurred in the defense of such action.
12.26.160 Director's Authority - Violations.
Whenever the director determines that a condition exists in violation of this chapter, or any code
or standard required to be adhered to by this chapter, he or she is authorized to enforce the
provisions of this chapter and/or to order correction and discontinuance of any violation pursuant
to the procedures set forth in Chapter 20.10, PTMC.
12.26.170 Existing latecomer agreements/completed construction.
For street development permits issued after January 1, 1995, developers/property owners have
until December 31, 1997 to apply for latecomer agreements for street improvements already
constructed, provided they meet the requirements of this chapter. Notwithstanding other
provisions of this chapter, the reimbursement charge for such agreements shall be based on the
11 Ord. No. 2548
actual cost of the constructed improvement.
such agreements.
All other provisions of this chapter shall apply to
12.26.180 Alternative financing method.
As an alternative to financing projects under this chapter solely by owners of real estate, the city
may join in the financing of these improvement projects and may be reimbursed in the same
manner as the owners of real estate who participate in the projects, provided that the city has
specified the conditions of its participation in an ordinance. The city may be reimbursed only for
the costs of improvements that benefit that portion of the public who will use the developments
within the established assessment reimbursement area. No city costs for improvements that benefit
the general public shall be reimbursed.
12.26.190 Severability.
If any clause, sentence, paragraph, section, phrase or part of this chapter or its application to any
person or circumstance is held to be invalid or unconstitutional by a court of competent
jurisdiction, such order or judgment shall not affect the validity or constitutionality of the
remainder of any part of this chapter. To this end, the provisions of each clause, sentence,
paragraph, section or part of this law are declared severable. (Ord. 2548 § 1, 1996.)
This ordinance shall take effect and be in force five days after the date of its publication in the
manner provided by law.
Read for the first, second, and third times and passed by the City Council of the City of Port
Townsend, Washington, at a regular meeting thereof, held this 4th day of November, 1996.
Attest:
Pam Kolacy,
11/05/96 [ 95-030] Ord\{Chl2-26.doc}
Julie,~Culloch, Mayor
Approved as to Form:
~i~o~hy ~I~lqa an, City Attorney
12 Ord. No. 2548