CITY OF SEATTLE

ORDINANCE __________________

COUNCIL BILL __________________

AN ORDINANCE relating to Seattle Public Utilities; authorizing the Director of Seattle Public Utilities to enter into latecomer agreements, in accordance with the requirements of Chapter 35.91 of the Revised Code of Washington; and adding new Chapter 21.80 to Subtitle VII of Title 21 of the Seattle Municipal Code; and ratifying and confirming certain prior acts.

WHEREAS, Chapter 35.91 of the Revised Code of Washington has been amended to direct local governments to offer latecomer agreements when requested by owners of real property who are required to construct water or sewer facilities as a prerequisite to development; NOW, THEREFORE,

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. Subtitle VII of Title 21 of the Seattle Municipal Code is amended to add new Chapter 21.80 to read as follows:

SMC 21.80 Latecomer Agreements

SMC 21.80.010 Authority

In accordance with RCW Chapter 35.91 and the requirements of this chapter, the Director of Seattle Public Utilities is authorized to enter into latecomer agreements, on forms approved by the Law Department, for the construction or improvement of water or sewer facilities. Pursuant to the Administrative Code, SMC Chapter 3.02, the Director is further authorized to adopt rules to implement the requirements of this chapter, including rules governing the application, form, and processing of latecomer agreements.

SMC 21.80.020 Definitions

For purposes of this chapter, the following definitions apply.

A. "Benefitting parcels" means those parcels that benefit from but whose owners did not contribute to the construction or improvement of the water or sewer facilities subject to a latecomer agreement.

B. "Latecomer agreement" means a contract between the City and an owner of real property for the construction or improvement of water or sewer facilities that the City requires be constructed or improved as a prerequisite to further property development. Such latecomer agreements provide for the transfer of the water or sewer facilities to the City and for the later reimbursement of costs to the owner as benefiting parcels subsequently connect to or use the facilities. The City may elect to participate in the financing of the water and sewer facilities, and in such cases the latecomer agreement will provide for the City to retain its pro rata share of the reimbursement.

C. "Latecomer fee" means the charge collected by the City from real property owners who connect to or use the water or sewer facilities that were constructed or improved under the terms of a latecomer agreement and who did not contribute to the costs of the facilities.

D. "Water or sewer facilities" means storm, sanitary, or combined sewers, pumping stations, and disposal plants, water mains, hydrants, reservoirs, or appurtenances.

SMC 21.80.030 Application

A. An owner of real property for which the City requires, as a prerequisite of further property development, the construction or improvement of water or sewer facilities may apply to the Director of Seattle Public Utilities to enter into a latecomer agreement. At a minimum, the application must require the applicant to provide the following information:

1. Proposed plans. Detailed construction drawings, prepared in accordance with applicable City standards and guidelines, of the entire project prepared and stamped by a licensed engineer.

2. Preliminary Engineers Estimate. Itemization of all costs related to the construction of the improvement, including the water or sewer facility and the restoration of pavement, curbs, gutters and sidewalks, plus the costs of engineering, construction and contract administration.

3. Such other information as the Director determines is necessary to properly review the application.

B. Application Fee. All applications for latecomer agreements must be accompanied by a nonrefundable application fee. The Director shall establish and collect the application fee to recover the costs of processing the application.

SMC 21.80.040 Required Provisions

At a minimum the latecomer agreement must provide for each of the following:

A. The construction or improvement of the water or sewer facilities in accordance with the City's plans and specifications.

B. The inspection and approval of the water or sewer facilities by the City.

C. The transfer to the City of the water and sewer facilities, without cost to the City, upon the City's acceptance of the facilities.

D. The provision of sufficient security to the City to ensure the completion of the facilities and other performance of the agreement.

E. The payment by the owner to the City of all the City's costs associated with the water or sewer facilities, including engineering, legal, and administrative costs.

F. The verification and approval of all contracts and costs related to the construction or improvement of the water or sewer facilities.

G. The recording of the latecomer agreement with the King County Recorder's Office.

H. The City's collection of latecomer fees and the reimbursement of the owner.

I. The owner's responsibility to provide the City with notice of any change in contact information. At a minimum, this contact information shall be provided every two years from the date of the latecomer agreement. If the owner fails to notify the City of current contact information within 60 days of the due date for notification, then the owner will no longer be entitled to reimbursement and the City will collect such fees and deposit them in the appropriate utility capital fund.

21.80.050 Reimbursement

A. The Director shall collect the applicable latecomer fee from the owners of benefitting parcels who connect to or use water or sewer facilities that were constructed or improved under the terms of a latecomer agreement.

B. The Director shall reimburse the owner of real property who has entered into a latecomer agreement, or the owner's assigns, the owner's pro rata share of the latecomer fees the City collects, less its costs, within 60 days of receipt; provided that if the owner or the owner's assigns fail to comply with the notification requirements of the latecomer agreement, then the City will deposit the latecomer fees in the appropriate utility capital fund.

C. As provided by RCW 35.91.040, no person or entity may be permitted to connect to or use water or sewer facilities that were constructed or improved under the terms of a latecomer agreement without first paying the applicable latecomer fee.

Section 2. Any act taken after the passage but prior to the effective date of this ordinance and consistent with its authority is hereby ratified and confirmed.

Passed by the City Council the ____ day of ________________________, 2014, and signed by me in open session in authentication of its passage this

_____ day of ___________________, 2014.

_________________________________

President __________of the City Council

Approved by me this ____ day of _____________________, 2014.

_________________________________

Edward B. Murray, Mayor

Filed by me this ____ day of __________________________, 2014.

____________________________________

Monica Martinez Simmons, City Clerk

(Seal)

Mark Jaeger SPU Latecomer Fees ORD May 9, 2014 Version #2