HomeMy WebLinkAbout001005 Original Contract City of Port Angeles
Record # 001005
2016-1330039
Page 1 of 12 Notice
Port Angeles City Of
RETURN ADD Clatlam County Washington 01111/2016 03:09:04 PM
Ill W11F AILT
City of Port Angeles
Department of Public Works
P.O. Box 1150
Port Angeles, WA 98362
Document Title(s)
Notice of Developer Reimbursement Agreement
Reference Number(s) of related documents
Grantor(s) (Last,First and Middle Initial)
City of Port Angeles
Grantee(s) (Last, First and Middle Initial)
Bayview Industrial; Roy A. and Patricia A. Jones
Legal Description (abbreviated form: i.e. lot, block,plat or section,township, range,quarter/quarter)
SW1/4, SW Y4, Sec. 7, T30N, RSW, WM
NW1/4, NW %, Sed. 18, T30N, RSW, WM
Assessor's Property Tax Parcel/Account Number
t
05-30-18-530835; 05-30-18-530680
The Auditor/Recorder will rely on the information provided on this form. The staff will not read the document to verity the
accuracy or completeness of the indexing information provided herein.
POarA,��c� EXHIBIT A
ip Preliminary Final X
NOTICE OF DEVELOPER REIMBURSEMENT
-may AGREEMENT AND CHARGE
DRA # 10-01
NOTICE IS HEREBY GIVEN pursuant to the Developer Reimbursement Ordinance, Chapter 13.68 of the Port
Angeles Municipal Code, a copy of which is attached hereto as Exhibit C. The City of Port Angeles, Washington,
is levying a charge on property which is located within the Assessment Reimbursement Area identified in the
attached Exhibit E and which is served by the water, sewer, storm sewer and/or street system improvements
constructed and paid for by a private developer, the description and cost of which improvements are set forth in
the attached Exhibit D.
This charge is for the purpose of reimbursing the developer who constructed the improvements and shall be in
force and effect for up to fifteen years from the date of recording the Developer Reimbursement Agreement with
the Clallam County Auditor; provided that, if the developer is reimbursed for the cost of the improvements prior to
the expiration of the fifteen-year period, then further developer reimbursement charges and payments shall not be
made. The amount of the charge is based on the fair pro-rata share of the cost for each parcel served by the
improvements and is calculated and set forth, together with the rate of interest and administration costs, in the
attached Exhibit F.
This charge shall be paid to the City prior to any development of property within the Assessment Reimbursement
Area identified in Exhibit E, which development requires connection to, or use of, said improvements pursuant to
City ordinances. Owners of property within said area shall have all rights and options set forth in the
Developer Reimbursement Ordinance including the right to request a public hearing with regard to the
area boundaries and assessments, before the City Council within twenty days of the mailing of the
preliminary version of this notice.
Upon final approval of the developer reimbursement agreement and charge and the assessment reimbursement
area, the final version of this notice will be filed for record, together with the Developer Reimbursement
Agreement attached hereto as Exhibit B, in accordance with the provisions of Chapters 35.72, 35.91 and 65.08 of
the Revised Code of Washington.
4+
DATED this "o day of J V%QA✓4/ 20146.
CITY ENGINES
ATTEST:
V�l�-��►f
ITY CLERK
Exhibit A- Notice of Developer Reimbursement Agreement and Charge
Exhibit B- Developer Reimbursement Agreement
Exhibit C - Developer Reimbursement Ordinance
Exhibit D - Description and Cost of Improvements
Exhibit E -Assessment Reimbursement Area
Exhibit F - Developer Reimbursement Charge i
poRr q4P
EXHIBIT B
DEVELOPER REIMBURSEMENT AGREEMENT
c�o�resaNO� DRA #10-01
THIS AGREEMENT is entered into this—(,p-day of� v A./ , 201kby and between the CITY
OF PORT ANGELES, a municipal corporation, hereinafter called the"CI- Y" and Bayview Industrial and Roy W.
and Patricia A.Jones, their heirs, successors, and assigns, hereinafter called "OWNER".
WHEREAS, OWNER has constructed at its own cost and expense certain municipal water, sewer, storm
sewer, and/or street system improvements; and
WHEREAS, the CITY has established an assessment reimbursement area within which owners of
property are required to reimburse OWNER for the pro rata cost of said improvements whenever such property is
developed in a manner that said improvements would be required pursuant to City ordinances; and
WHEREAS, OWNER has offered and the CITY has accepted said improvements in accordance with the
provisions of Chapter 13.68 PAMC and the terms of this Agreement; now, therefore,
In consideration of the above representations and the following covenants and agreements, the parties
hereby agree as follows:
Section 1. This Agreement and the City's Developer Reimbursement Ordinance, Chapter 13.68 PAMC, a
copy of which is attached hereto as Exhibit C, shall establish the rights and duties of the parties with regard to
reimbursing the OWNER for those improvements, the cost and description of which is set forth in the attached
Exhibit D.
Section 2. This Agreement shall be in effect for a period of fifteen years from the date of its recording
with the Clallam County Auditor; provided that, if the developer is reimbursed for the cost of the improvements
prior to the expiration of the fifteen-year period, then further developer reimbursement charges and payments
shall not be made.
Section 3. The charges that are subject to this Agreement shall be levied against the property within the
assessment reimbursement area identified in the attached Exhibit E, in the amount calculated and set forth in the
attached Exhibit F.
Section 4. OWNER agrees that the CITY shall not be responsible for the collection of any developer
reimbursement charges other than in the manner provided by the Developer Reimbursement Ordinance.
Section 5. OWNER shall give notice to property owners who are subject to the developer reimbursement
charge in accordance with the procedures of Chapter 13.68 PAMC using the Notice form attached hereto as
Exhibit A.
Section 6. The CITY shall within sixty (60) days of receipt transmit developer reimbursement payments,
less the CITY administrative fee and cost of defective work, if any, to the OWNER.
Section 7. OWNER represents and covenants that the necessary easements pertaining to these facilities
have been submitted to and approved by the CITY and recorded concurrently with this Agreement and that such
easements conform exactly to the as-built construction drawings. Upon the execution of this Agreement by both
parties hereto, OWNER shall convey free and clear of all encumbrances to the CITY the aforementioned facilities
with rights-of-way and/or easements, including maintenance easements, for all such facilities.
Section 8. OWNER shall supply the CITY with a maintenance guarantee bond or equivalent acceptable
to the CITY in the amount of ten (10) percent of the value of the improvements conveyed by the OWNER to the
CITY to be in effect for a period of one year from the date of final acceptance of the improvements by the CITY.
Said bond shall be executed by a surety company authorized to do business within the State of Washington and
shall be subject to the approval of the CITY.
Section 9. If prior to the expiration of one year after the date of acceptance of the improvements, any s
work is found to be defective, the OWNER shall promptly, without cost to the CITY, and in accordance with written
instructions issued by the City Engineer, either correct such defective work, or, if it has been rejected by the City
Engineer, remove and replace it with non-defective work. If the OWNER does not promptly comply with the terms
of such instructions, the CITY may have the defective work corrected or the rejected work removed and replaced
and may enforce its rights under the maintenance guarantee bond. All direct and indirect costs of such removal
and replacement not reimbursed pursuant to said bond, including compensation for professional services, shall at
the City's option either be paid by the OWNER to the City and/or withheld from the developer reimbursement
charge transmittals to the OWNER.
Section 10. This Agreement shall become effective upon satisfactory completion by the OWNER and
acceptance by the CITY of the construction of the facilities conveyed by the OWNER to the CITY and upon
execution of the Agreement by the parties and recording with the Clallam County Auditor. The OWNER shall test
all portions and elements of the facilities as specified by the CITY in order to demonstrate the satisfactory
construction of the facilities.
Page 1 of 2
DEVELOPER REIMBURSEMENT AGREEMENT
DRA #10-01
Section 11. OWNER agrees that the CITY will not be liable under any contracts to which OWNER is a
party pertaining to the construction of the facilities. OWNER agrees to hold harmless, defend and indemnify the
CITY from any obligations pertaining to such contracts or construction.
Section 12. OWNER warrants that it has furnished the City with accurate bills of sale for all facilities
pertaining to this Agreement.
Section 13. OWNER acknowledges and agrees that the referenced developer reimbursement charges
calculated in Exhibit F are estimates. OWNER further acknowledges and agrees that there is no guarantee that
said charges will be paid or accrued during the period of this Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first
above written.
CITr F'PO ANGELES: O R:
_. gym.
el'rY E INYG INEER
APPROVED AS TO F `
CITYzATTORNEY
ATTEST:
Qnn � % o
TY Cl- RK
STATE OF WASHINGTON )
) ss.
County of Clallam )
On this date before me the undersigned Notary Public in and for the State of Washington, personally
appeared Ve-r^ f� a.� , to me known to be the individuals who
executed the foregoing Develop r Reimbursement Agreement and acknowledged to me that they signed the
same for the uses and contents therein mentioned.
DATED this day of 2015.
NOTARY PU IC for Washi gton,
residing at_ � aJG
My commission expires: R 0 6
Exhibit A- Notice of Developer Reimbursement Agreement and Charge
Exhibit B - Developer Reimbursement Agreement COR
Exhibit C - Developer Reimbursement Ordinance p.�
Exhibit D - Description and Cost of Improvements C�®TAAy 02
Exhibit E-Assessment Reimbursement Area
Exhibit F- Calculation of Developer Reimbursement Charge N EXP 2/08/2017
0
WASH\
Page 2 of 2
Exhibit "C"
CHAPTER 13.68-DEVELOPER REIMBURSEMENT
13.68.010- Purpose.
The purpose of this developer reimbursement ordinance is to define the rules and regulations for
executing contracts between the City and developers for private construction of municipal water, sewer,
storm sewer and street system improvements by providing 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.
(Ord. 2732, § 1, 12/25/1992)
13.68.020- Definitions.
The following definitions shall apply to this ordinance:
A. "Assessment reimbursement area" or"benefit area" means that area within the city or within ten
miles of the City limits, which area includes parcels of real estate adjacent to, or likely to require
connection to or service by, the water, sewer, storm sewer, and/or street system improvements
constructed by a developer who has applied to the City for a developer reimbursement
agreement pursuant to this ordinance.
B. "Cost of construction" means those costs incurred for design, acquisition of right-of-way and/or
easements, labor, materials and installation as required to create an improvement which
complies with City standards. In the event of a disagreement between the City Engineer and the
developer concerning the "cost of construction" in a particular situation, the determination of the
Director of Public Works and Utilities shall be final.
C. "Developer reimbursement agreement" means a written contract between the City, as approved
and executed by the City Engineer, and one or more property owners providing for construction
of water, sewer, storm sewer and/or street 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 Chapters
35.72 and 35.91 RCW.
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 municipal water,
sewer, storm sewer and/or street system improvements pursuant to this ordinance.
E. "Street system improvements or facilities" means the acquisition of right-of-way and/or
easements, design, inspection, grading, paving, installation of curbs, gutters, sidewalks, street
lighting, traffic control devices and other similar improvements in accordance with City
standards.
F. "Water, sewer, and storm sewer system improvements or facilities" means the acquisition of
right-of-way and/or easements, design, inspection and installation of improvements to City
standards and includes the following:
1. "Water system improvements" includes such things as reservoirs, wells, mains and
appurtenances such as valves, fire hydrants, telemetry stations, pumping stations, and
pressure reducing stations;
2. "Sewer system improvements" includes such things as treatment plants, mains and
manholes, pump stations, force mains, and telemetry stations;
Page 1
3. "Storm sewer system improvements" includes such things as mains, retention/detention
facilities, pumping stations, inlets, catch basins, and manholes.
(Ord. 2732 § 2, 12/25/1992)
13.68.030-Application for developer reimbursement agreement.
A. Any property owner, who uses private funds to construct water, sewer, storm sewer and/or street
system improvements where the cost of construction is greater than $6,000.00, said limit to be
adjusted annually in accordance with the ENR (Engineering News-Record) Construction Cost Index,
in the City or within the City's utility service area, to connect to existing City water, sewer, storm
sewer or street systems for the purpose of serving the area in which the real property of such owner
is located, may apply to the City to establish a developer reimbursement agreement in order to
recover a pro rata share of the costs from subsequent users of the system(s).
B. The application must be on a form prescribed by the City Engineer and must be accompanied by a
nonrefundable application fee as set forth in Chapter 3.70 PAMC.
C. The City Engineer 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 City Engineer 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 ordinance.
E. Applicants for developer reimbursement agreements must be in compliance with all City ordinances,
rules and regulations in order to be eligible for processing of such agreements.
F. A developer reimbursement agreement application shall not be accepted for the improvement of a
developer's abutting right-of-way and transitions as required pursuant to City ordinance. An
exception may be allowed when vertical grade and alignment changes are required by the City
Engineer to promote traffic safety and the City Engineer recommends a developer reimbursement
agreement.
G. The proposed improvements must be consistent with the comprehensive utility and/or transportation
plans of the City.
H. The City must have the capability and capacity to service the water, sewer, storm sewer and/or
street facilities.
I. The applicant must agree to an annexation covenant for the property to be serviced by the proposed
improvements, if such are located outside the City limits and any such improvements must be
located no further than ten miles outside the City.
J. The application must comply with the requirements of this ordinance and all other applicable City
ordinances.
(Ord. 3270, 1/26/2007; Ord. 2932 § 41, 10/11/1996; Ord. 2732 § 3, 12/25/1992)
13.68.040-Assessment reimbursement area and charge.
A. The City Engineer shall formulate an assessment reimbursement area (benefit area) based on the
following:
1. For water, sewer and storm sewer systems. The assessment reimbursement area shall be
based upon a determination of which parcels did not contribute to the original cost of the utility
system improvement(s) and are located so that they may subsequently be served by or use
such improvement(s), including through laterals or branches connecting thereto.
Page 2
2. For street systems. The assessment reimbursement area shall be based upon a determination
of which parcels adjacent to the improvements would require similar street improvements upon
development.
B. The City Engineer 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 tap, connect or be served by the system(s), determined on an acre, front footage,
equivalent water meter, or other equitable basis.
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 ordinance, including
the right to request a public hearing before the City Council 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 in writing within 20 days of the mailing of the notice, a
hearing shall be held before the City Council. Notice of such hearing shall be given to all affected
property owners.
E. All notice requirements set forth in this ordinance 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 City Engineer,
the City Council may approve, modify or reject the assessment reimbursement area and/or charges.
The City Council's determination shall be final.
(Ord. 2732 § 4, 12/25/1992)
13.68.050- Implementation of developer reimbursement agreement.
A. The application for developer reimbursement agreement and the non-refundable application fee shall
be submitted to the City Engineer prior to acceptance by the City of the improvements. The
application shall be in compliance with the requirements of this ordinance and all other applicable
City ordinances.
B. After the construction has been completed and accepted by the City 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 City Engineer and the agreement and
charges shall be modified accordingly.
C. The developer reimbursement agreement and a notice of the agreement and charge shall be
recorded in the Clallam 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.
D. The applicant shall 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.
(Ord. 2947, 1/31/1997; Ord. 2732 § 5, 12/25/1992)
13.68.060- Rights and non-liability of City.
The City 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
Page 3
release and waive any claims for any liability of the City in the establishment and enforcement of such
agreements. The City shall be not 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 appropriate utility
and/or fund approved by the City Council.
(Ord. 2732 § 6, 12/25/1992)
13.68.070-Term of developer reimbursement agreements.
No developer reimbursement agreement shall extend for a period longer than 15 years from the date of
final acceptance by the City. If the developer is 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.
(Ord. 2756 § 3, 4/16/1993; Ord. 2732 § 7, 12/25/1992)
13.68.080-Ownership of systems.
A. Upon approval of a developer reimbursement agreement and the completion and acceptance of
construction, the system(s) shall become the property of the City. The City may charge and receive
fees for utility system use according to the city's established rates.
B. A copy of the engineering "as built" plans, specifications and drawings, including all necessary right-
of-way and easement documents shall be provided to the City prior to acceptance of the water,
sewer, storm sewer and/or street facilities.
C. No connection to or other use of the facilities will be allowed or permitted until the City has officially
accepted the construction.
(Ord. 2732 § 8, 12/25/1992)
13.68.090- 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 City. The applicant shall provide the City with a "maintenance
guarantee bond" or equivalent acceptable to the City in the amount of ten percent of the value of the
water, sewer, storm sewer and/or street system(s) to be in effect for a period of one year from the date of
final approval and acceptance of the system(s). If the applicant does not correct the work within a
reasonable period after notice of the defect, the City shall be reimbursed for costs of correcting such
defective work either by the applicant or by the bond proceeds.
(Ord. 2732 § 9, 12/25/1992)
13.68.100-Connection/use prepayment requirement.
A. Except as otherwise provided in subsection 10.B., connection to or use of the system(s) shall be
prohibited and development permission shall not be granted unless the city has received payment, or
acceptable assurance of payment, of the developer reimbursement charge, including interest and
administration costs.
B. The City will exercise its best efforts to assure compliance with this section; provided, however, that
in no event shall the City incur liability for an unauthorized connection to or use of the facilities.
Page 4
(Ord. 2732 § 10, 12/25/1992)
13.68.110- Removal of unauthorized connections or taps.
Whenever any tap or connection is made into any water, sewer and/or storm sewer system(s) without
payment being made as required by this ordinance, the City Engineer may cause to be removed such
unauthorized tap or connection and all connecting pipe located in the City right-of-way without any liability
to the City or City officials.
(Ord. 2732 § 11, 12/25/1992)
13.68.120- Interest on developer reimbursement charge.
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 ten-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.
(Ord. 3425, 04/15/2011; Ord. 2732 § 12, 12/25/1992)
13.68.130-Administration costs.
The City shall add five percent, but not less than $20.00 nor more than $500.00, to each developer
reimbursement charge as reimbursement for the City's administration costs.
(Ord. 2732 § 12, 12/25/1992)
13.68.140- Payments of developer reimbursement charge.
A. Each payment of the developer reimbursement charge shall be made to the City in one lump sum
including interest and administrative costs. The City 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/payor the City Engineer will approve a certification of payment which may be recorded by
said owner.
C. Throughout the term of the agreement the beneficiary shall in writing certify annually in January the
name(s) and address(es) of the beneficiary. The City 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 city cause to refuse to make payment under the agreement, and
money received may become the sole and exclusive property of the City.
(Ord. 2732 § 14, 12/25/1992)
Page 5
EXHIBIT D
South Bayview Sanitary Sewer — Phase 1
Certified Projected Total Cost
Construction Cost $55,023.11
Washington State Sales Tax (8.4%) $4621.94
City Permit Fees (Plan Review and Inspection) $886.00
Clallam County Fees (Right of Way Permit) $180.00
Engineering, Surveying, Inspection $11,289.00
Developer Reimbursement Agreement Application Fee $1500.00
Developer Reimbursement Application Costs $4,000.00 (est.)
Total $77,500 (est.)
I hereby certify that the project costs set forth above are an accurate summary of the
costs to date and projected additional costs to complete the Development
Reimbursement Agreement in conformance with PAMC 13.68.
eph n M. Zenovic, P.E. Date
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ASSESSMENT REMBURSEME.NT AREA ZENOVI RTES
tI n i-r 1Na-A�
EXn1o� E
Exhibit F
o�pORTgNC�`�N
DEVELOPER REIMBURSEMENT AGREEMENT, DRA#2015-01
Sanitary Sewer
�oRKS ANOJ
DEVELOPER REIMBURSEMENT CHARGE
ENGINEERING $11,289.00
CONSTRUCTION $59,645.05
CITY INSPECTION AND TESTING $6,566.00
TOTALS $77,505.05
The developer reimbursement fee for South Bayview Sanitary Sewer will be based on the
number of parcels in the benefited area (29). Distributing the costs equally between the
above results in a developer reimbursement fee of $2,672.42 per parcel. At the time of
payment, interest (**2.24% per year) and administration costs (fee collected + 5%) in
accordance with the ordinance will be added at the time of payment.
All parcels in the latecomer area will be assessed accordingly upon request for service.
Any parcels outside the original latecomer area which connect to the gravity sewer system
will be assessed using the above fees per parcel.
E
I
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VAArchive\08235 BAYVIEW INDUSTRIAL\ENGR\Civil\Exhibit F-Reimbursement Charge.doc(February 2010)
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