13.04.100 Developer reimbursement

13.04.100 Developer reimbursement.

(1) Purpose. The purpose of this developer reimbursement section is to define the rules and regulations for executing contracts between the County and developers for those portions of public sewer system constructed and paid for by private developers, and to provide a means for partial cost recovery through a charge to later users of the systems who did not contribute to the capital costs thereof, and for establishing assessment reimbursement areas defining which property is subject to such charges.

(2) Definitions. The following definitions shall apply to this section:

(a) “Assessment reimbursement area” or “benefit area” means that area within the Clallam Bay Sekiu UGA, which area includes parcels of real estate adjacent to, or likely to require connection to or service by, the Clallam Bay Sekiu sewer system improvements constructed by a developer who has applied to the County for a developer reimbursement agreement pursuant to this section. The boundary of an “assessment reimbursement area” shall be drawn according to subsection (4)(a) of this section.

(b) “Cost of construction” means those costs incurred for permit fees, design, acquisition of right-of-way and/or easements, labor, materials, and installation required to create an improvement which complies with County standards. In the event of a disagreement between the County and the developer concerning the “cost of construction” in a particular situation, the determination of the Director shall be final.

(c) “Developer reimbursement agreement” means a written contract between the County, as approved and executed by the Director, and one or more property owners providing for construction of sewer system facilities and for partial reimbursement to the party causing such improvements to be made of a portion of the costs of such improvements by owners of property benefitted by the improvements, as authorized and described in RCW 36.94.190.

(d) “Developer reimbursement charge” or “assessment” means a fair pro rata charge to be paid by an owner of property within an area benefitted by the private construction of public sewer system improvements pursuant to this section.

(e) “Sewer system improvements or facilities” means the acquisition of rights-of-way and/or easements, design, inspection, and installation of improvements to County standards and includes such things as sewer mains and manholes, pump stations, force mains, and telemetry stations.

(a) Any property owner who uses private funds to construct sewer system improvements that become the property of the County where the cost of construction is greater than $20,000 to connect to existing Clallam Bay Sekiu sewer for the purpose of serving the area in which the real property of such owner is located may apply to the County to establish a developer reimbursement agreement in order to recover a pro rata share of the costs from subsequent users of the system.

(b) The application must be on a form prescribed by the Director and must be accompanied by a nonrefundable application fee of $1,000.

(c) The Director may require the applicant to submit a certified statement by a State of Washington licensed professional engineer containing an itemization of the total projected cost of the system improvements and a copy of the design drawings and specifications.

(d) The Director is authorized to establish policies and procedures for processing applications and determining eligibility of a system for a developer reimbursement agreement consistent with the requirements of this chapter.

(e) Applicants for developer reimbursement agreements must be in compliance with all County ordinances, rules and regulations in order to be eligible for processing of such agreements and must be current with the real estate property taxes owed on any parcel or parcels which are the subject of the proposed developer reimbursement agreement.

(f) A developer reimbursement agreement application shall not be accepted for the improvement of a developer’s abutting right-of-way.

(g) The proposed improvements must be consistent with the Clallam Bay Sekiu general sewer plan.

(h) The County must have the capability and capacity to service the sewer facilities.

(i) The application must comply with the requirements of this chapter and all other applicable County regulations.

(a) The Director shall formulate an assessment reimbursement area (benefit area) based upon a determination of which parcels did not contribute to the original cost of the sewer system improvement(s) and are located within 200 feet of the provided improvements (as measured along the usual or most feasible route of access as determined by the Director).

(b) The Director will determine the assessment or charges for parcels within the assessment reimbursement area by calculating the fair pro rata share of the cost of construction for each property which might be served by the system, and thus within the benefit area, on the basis of acreage.

(c) A notice containing the assessment reimbursement area boundaries, the preliminary assessments or charges, and a description of the property owner’s rights and options under this chapter, including the right to request a public hearing before the Clallam County Hearing Examiner with regard to the area boundaries and assessments, will be forwarded by registered mail to the property owners of record as shown on the records of the Clallam County Assessor within the proposed assessment reimbursement area.

(d) If any property owner requests a hearing regarding their inclusion in the proposed benefit area in writing within 20 days of the mailing of the notice, a hearing shall be held before the Clallam County Hearing Examiner. Notice of such hearing shall be given to all affected property owners.

(e) All notice requirements set forth in this chapter shall be the sole responsibility of the applicant and shall be satisfied by a notarized affidavit that the applicant has mailed the notices pursuant to the requirements set forth herein.

(f) After reviewing the public hearing testimony and the preliminary determination of the Director, the Board of County Commissioners may approve, modify, or reject the assessment reimbursement area and/or charges. If a property owner requests a hearing regarding their inclusion in the proposed benefit area, the Clallam County Hearing Examiner’s determination shall be final.

(g) The survey or record reflecting the assessment reimbursement area or benefit area shall be recorded with the County Auditor and shall include a listing of all parcels (by tax number) or portions of parcels that are within it.

(a) The application for developer reimbursement agreement and the nonrefundable application fee shall be submitted to the Director prior to acceptance by the County of the improvements. The application shall be in compliance with the requirements of this chapter and all other applicable County regulations.

(b) After the construction has been completed and accepted by the County in accordance with the terms of the developer reimbursement agreement, the final cost of the improvements shall be reviewed against the preliminary assessments established by the Director and the agreement and charges shall be modified accordingly.

(c) The developer reimbursement agreement, as modified if necessary, and a notice of the agreement and charge shall be recorded in the County Auditor’s office within 30 days of the final execution of the agreement. It shall be the sole responsibility of the applicant to record the agreement and notice and pay the applicable filing fees.

(d) The applicant shall send by registered mail a copy of the agreement and notice to each owner of record of all properties subject to the developer reimbursement charge. The applicant shall provide a notarized affidavit that the applicant has mailed the agreement and notice.

(e) Once the agreement and notice are recorded and mailed, the developer reimbursement agreement and charge shall be binding on all owners of record within the assessment reimbursement area.

(6) Rights and Nonliability of County. The County reserves the right to refuse to enter into any developer reimbursement agreement or to reject any application thereof. All applicants for developer reimbursement agreements shall be deemed to release and waive any claims for any liability of the County in the establishment and enforcement of such agreements. The County shall not be responsible for locating any beneficiary or survivor entitled to benefits under developer reimbursement agreements. Any collected funds not claimed by a developer prior to the expiration of a developer reimbursement agreement shall inure to the benefit of the Clallam Bay Sekiu sewer system fund.

(7) Term of Developer Reimbursement Agreements. Developer reimbursement agreements shall have an initial term of 15 years from the date of final acceptance by the County. If the developer is fully reimbursed for the cost of the improvements prior to the expiration of the agreement, then further developer reimbursement charges and payments shall not be made. If the developer is not fully reimbursed for the cost of the improvements, the County may extend the term for up to an additional five years upon request of the developer.

(a) Upon approval of a developer reimbursement agreement and the completion and acceptance of construction, the system shall become the property of the County. The County may charge and receive fees for utility system use according to the County’s established rates.

(b) A copy of the engineering “as-built” plans, specifications and drawings, including all necessary rights-of-way and easement documents, shall be provided to the County prior to acceptance of the sewer facilities.

(c) No connection to or other use of the facilities will be allowed or permitted until the County has officially accepted the construction.

(9) Defective Work. The applicant shall be responsible for all work found to be defective within one year after the date of acceptance of the improvements by the County. The applicant shall provide the County with a “maintenance guarantee bond” or equivalent acceptable to the County in the amount of 10 percent of the value of the sewer facilities to be in effect for a period of one year from the date of final approval and acceptance of the facilities. If the applicant does not correct the work within a reasonable period after notice of the defect, the County shall be reimbursed for costs of correcting such defective work either by the applicant or by the bond proceeds.

(a) Connection to or use of the facilities shall be prohibited, and development permission shall not be granted unless the County has received payment, or acceptable assurance of payment, of the developer reimbursement charge, including interest and administration costs.

(b) The County will exercise its best efforts to assure compliance with this section; provided, however, that in no event shall the County incur liability for an unauthorized connection to or use of the facilities.

(11) Removal of Unauthorized Connections. Whenever any connection is made into the sewer facilities without payment being made as required by this chapter, the Director may cause to be removed such unauthorized connection and all connecting pipe located in the County right-of-way without any liability to the County or County officials.

(a) The beneficiary of a developer reimbursement agreement will receive interest in accordance with the terms of this section.

(b) If the charge is paid within 30 days from the date of execution of the agreement, no interest is payable. Otherwise, interest is payable from the date of execution of the agreement to the date of payment of the developer reimbursement charge.

(c) The rate of interest will be fixed at the Federal Reserve rate for a 10-year Treasury Note on the date the developer reimbursement agreement is recorded.

(d) Interest is calculated on the basis of a 365-day year and is not compounded.

(e) Total interest payable may not exceed the principal amount of the developer reimbursement charge.

(13) Administration Costs. The County shall add five percent, but not less than $20 nor more than $500, to each developer reimbursement charge as reimbursement for the County’s administration costs.

(a) Each payment of the developer reimbursement charge shall be made to the County in one lump sum including interest and administrative costs. The County will pay over the amounts due to the beneficiary within 60 days of receipt.

(b) When the developer reimbursement fee for a particular lot or parcel has been paid, at the request of the owner/payer the Director will approve a certification of payment which may be recorded by said owner.

(c) Throughout the term of the agreement the person, partnership, firm or entity that is the beneficiary of the developer reimbursement agreement shall in writing certify annually in January the name(s) and address(es) of the beneficiary. The County is not responsible for locating any person who may be entitled to benefits under any agreement. Failure to receive the annual certification required under this subsection will give the County cause to refuse to make payment under the agreement, and money received may become the sole and exclusive property of the County and shall be deposited in the Clallam Bay Sekiu sewer operating fund.