HomeMy WebLinkAboutOrdinance No. O05-03ORDINANCE NO. 005-03
AN ORDINANCE AMENDING TITLE 12 OF THE LAUREL MUNICIPAL CODE, BY ADDING
A NEW CHAPTER 12.38, FOR THE PURPOSE OF ALLOWING THE REIMBURSEMENT TO
QUALIIqED SUBDIVISION DEVELOPERS OF A PORTION OF THE COSTS OF THE
EXTENSION OF UTILITY MAINS IN CERTAIN LIMITED CIRCUMSTANCES.
WHEREAS, there currently exists a need to reimburse developers of new subdivisions in the
City of Laurel, when certain cimumstances or criteria are met, for the cost of the extension of water and
sewer mains that become available to adjacent or nearby subdivision developments; and
WHEREAS, it is in the best interest of the City of Laurel Public Utilities Department, the
citizens of Laurel, and the provision and maintenance of sensible and sound growth of the City to allow
such reimbursement in certain circumstances; and
WHEREAS, provision of such reimbursement will encourage the future construction of major
water and sewer mains to the benefit of the City, new developments, and provide sound community
growth.
NOW, THEREFORE, BE IT ORDAINED, by the Laurel City Council that Title 12 of
the Laurel Municipal Code be and the same is hereby amended with the following addition:
NEW SECTION:
Chapter 12.38
DEVELOPER REIMBURSEMENT OF WATER AND
WASTEWATER EXTENSION COSTS
Sections:
12.38.010
12.38.020
12.38.030
12.38.040
12.38.050
Purpose
Definitions
Requirement for payment of reimbursement fee
Reimbursement
Applicability
Section 12.38.010 Purpose.
The intent and purpose of this section is to provide an equitable procedure for the reimbursement
of a portion of the costs of constructing certain water and wastewater facilities to private parties
who paid for the initial installation of those facilities. No person shall acquire any vested rights
under the terms and provisions of this article.
Section 12.38.020 Definitions.
For the purpose of this section, the following words and phrases used herein are defined as
follows:
Customer means any person receiving water and/or wastewater service either directly or
indirectly from the City water and/or wastewater system.
005-03 Reimbursement Developer Costs
Developer means an applicant who requests use of the City water and/or wastewater
general benefit facilities to provide water and/or wastewater service to special benefit facilities
which will be installed by the applicant to serve properties owned by the applicant.
Extension means the act or process of providing water and/or wastewater service to
properties situated within the City's approved water or wastewater serve areas.
Off-site special benefit facilities means special benefit facilities which are located
between the existing water or wastewater system and the nearest boundary of the property for
which service is to be provided.
Perimeter special benefit facilities means special benefit facilities which are located
immediately adjacent to the exterior boundaries of the property for which service is to be
provided.
Special benefit facilities means water or wastewater facilities which are owned and
controlled by the City and which provide service solely to specific properties located within the
City's water or wastewater service areas. Typical special benefit facilities include, but are not
limited to: water lines eighteen inches or smaller in diameter, water booster pumping stations
serving small areas, wastewater lines twenty-four inches or smaller in diameter, and wastewater
pumping stations serving small areas.
Section 12.38.030 Requirement for payment of reimbursement fee.
Any prospective customer owning property located outside a developer's subdivision and
desiring to connect a service line or lines to any special benefit facility which has been extended
at the developer's expense shall pay a reimbursement fee to the City. This fee shall be
determined by the City's Public Utilities Director and shall be based upon either the prospective
customer's pro rata share of the costs of the special benefit facility involved or upon some other
cost formula established by agreement between the developer and the City at the time of
approval of the developer's extension of services. This fee shall be in addition to and not in lieu
of any fees that are customarily imposed by the City for refunding of general benefit facilities.
This fee shall not include any interest charges. This fee applies only to connections and does not
apply to additional extensions of existing special benefit facilities.
Section 12.38.040 Reimbursement.
A. Developers who meet the following conditions shall be entitled to reimbursement from
revenues derived from the reimbursement fees established by this section.
Special benefit facilities, off-site or perimeter, which front and abut property not
owned by the developer, must be extended by the developer at his/her expense.
Costs of special benefit facilities which are financed through special improvement
districts shall not be reimbursed.
The extension of special benefit facilities must be for the purpose of serving
property located within the corporate limits of the City. Costs of extensions of
special benefit facilities to serve property outside City limits shall not be
reimbursed.
005-03 Reimbursement Developer Costs
Total project costs for the extension of the special benefit facilities must be at
least ten thousand ($10,000) dollars.
Developer shall provide to the City sufficient verifiable cost data to determine the
appropriate reimbursement fee to be charged to prospective customers under
Section 12.38.030.
Developer shall enter into a standard reimbursement agreement with the City at
the time the City approves the developer's application for extension of special
benefit facilities.
Upon completion of the extension of the special benefit facilities, the developer
must convey all right, title, and interest in the facilities to the City.
Developer shall provide to the City a current address for purposes of mailing
his/her reimbursement payments collected hereunder.
Extension of special benefit facilities must be done in compliance with all rules,
regulations, resolutions, and ordinances of the City, including but not limited to
standards for design and construction of the facilities.
Violation of any of the conditions listed in this section may be grounds for denial
of any reimbursement to developer.
B. All reimbursement payments to developer shall be subject to the following terms and
conditions:
Reimbursements are payable solely from revenues derived from payment of
reimbursement fees as established in this chapter. Reimbursement payments are
limited to reimbursement fees actually collected, less all administrative costs
incurred by the City. In no event will reimbursement payments exceed the actual
cost to the developer of extending the special benefit facilities.
Reimbursement fees paid to the City shall be accumulated and paid to developer
mmually on the first working day of each November following acceptance of the
special benefit facilities by the City.
3. Reimbursement payments shall not include any interest charges.
Reimbursement payments to developer shall be limited to reimbursement fees
paid to the City on or before the seventh anniversary of the date of acceptance of
the special benefit facilities by the City. Any reimbursement fees paid to the City
after the seventh anniversary shall be retained by the City and used for
construction of additional water and/or wastewater system facilities.
005-03 Reimbursement Developer Costs
Section 12.38.050 Applicability.
The provisions of this chapter shall apply to special benefit facilities constructed after the
effective date of this ordinance except in those cases where the City has entered into a written
agreement with the developer that provides that any reimbursement procedure adopted by the
City will be applicable retroactively to the development that is the subject of the agreement.
This ordinance shall become effective thirty (30) days after final passage by the City
Council and approved by the Mayor.
Introduced and passed on first reading at a regular meeting of the City Council on
March 15 .,2005, byAlderman Mace
PASSED and ADOPTED by the Laurel City Council on second reading this 19th day
of April ,2005, upon motion of Alderman Poehls
APPROVED BY THE MAYOR this
ATTEST:
Mary K{]!~mbleton, Clerk-Treasurer
APPROVED AS TO FORM:
SanZt S. Painter, Legal~l
Elk River Law Off~/P.L.L.P.
19th dayof April
ff/~nia~th E. Ol~on Ji,~ayor
,2005.
O05-03 Reimbursement Developer Costs
AGREEMENT
THIS AGREEMENT is entered into this __ day of , 2005,
between THE CITY OF LAUREL, Montana, hereinafter referred to as the "CITY," and __
of
hereinafter referred to as "DEVELOPER."
WITNESSETH:
WHEREAS, Chapter 12.38 of the Laurel Municipal Code provides a procedure for
certain developers to be reimbursed for a portion of the costs of constructing special benefit
facilities under certain circumstances; and
WHEREAS, no person, developer, customer, or applicant shall acquire any vested rights
under the terms and provisions of this Agreement or Chapter 12.38; and
WHEREAS, Developer has agreed to extend a special benefit facility for the purpose of
providing water and/or wastewater service through plans and specifications approved by the City
on the day of , 2005. Said plans and specifications generally
provide for the construction of special benefit facilities which are specifically described in
Exhibit 1 attached hereto; and
WHEREAS, Developer desires to obtain reimbursement for a portion of the special
benefit facilities hereafter described; and
WHEREAS, the City is desires to reimburse the Developer for a portion of such special
benefit facilities.
NOW, THEREFORE, City and Developer, in consideration of their mutual promises to
each other hereinafter stated, agree as follows:
The special benefit facilities which are eligible for reimbursement to the extent set
forth in this Agreement are specifically described in Exhibit 1 attached hereto and
by this reference incorporated herein as if fully set out.
With respect to Developer's entitlement to reimbursement, the City and
Developer agree that the conditions specified in Chapter 12.38, et. seq., and the
further conditions set forth hereinafter, must be met before Developer is entitled
to or will receive any reimbursement. Said conditions are:
A. Special benefit facilities, off-site or perimeter, which front and abut
property not owned by the Developer, must be extended by the Developer
at his expense. Costs of special benefit facilities which are financed
through special improvement districts shall not be reimbursed.
005-03 Reimbursement Agreement
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The extension of special benefit facilities must be for the purpose of
serving property located within the corporate limits of the City. Costs of
extensions of special benefit facilities to serve property outside the City
limits shall not be reimbursed.
Co
Total project costs for the extension of the special benefit facilities must
be at least ten thousand dollars ($10,000.00).
Developer shall provide to the City sufficient verifiable cost data to
determine the appropriate reimbursement fee to be charged to prospective
customers under Chapter 12.38, et. seq. within 30 days of final inspection
of the special benefit facilities and approval and acceptance by the City
that all construction was completed according to the approved plans and
specifications.
Developer shall enter into a standard reimbursement agreement with the
City at the time the City approves the Developer's application for
extension of special benefit facilities.
Upon completion of the extension of the special benefit facilities, the
Developer must convey all right, title, and interest in the facilities to the
City.
Developer shall at all times provide to the City a current address for
purposes of mailing reimbursement payments to Developer.
Extension of special benefit facilities must be done in compliance with all
rules, regulations, resolutions and ordinances of the City, including but not
limited to, standards for design and construction of the facilities.
Developer agrees that it will not be entitled to any reimbursement whatsoever
until the above conditions have been completely satisfied. Developer's violation
of any of the conditions set forth here in or in Chapter 12.38, et. seq. may, at the
option of the City, result in denial of any and all reimbursement to the Developer.
o
In addition, it is expressly agreed that any reimbursement payment is conditioned
upon the following:
Reimbursements are payable solely from revenues derived from payment
of reimbursement fees as established in Chapter 12.38, et. seq.
Reimbursement payments are limited to reimbursement fees actually
collected for connections with the special benefit facilities described in
Exhibit 1, less all administrative costs incurred by the City. In no event
O05-03 Reimbursement Agreement
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will reimbursement payments exceed the actual cost to the Developer of
extending the special benefit facilities.
Reimbursement fees paid to the City shall be accumulated and paid to the
Developer annually on each November 1st following acceptance of the
special benefit facilities by the City beginning on November 1, 20__ and
ending on November 1, 20__.
C. Reimbursement payments shall not include any interest charges.
Reimbursement payments to the Developer shall be limited to
reimbursement fees paid to the City on or before the seventh anniversary
of the date of acceptance by the City of the special benefit facilities
described in Exhibit 1 attached hereto. Any reimbursement fees paid to
the City after said anniversary date shall be retained by the City and used
for construction of additional water and/or wastewater system facilities.
Acceptance of the special benefit facilities for purposes of reimbursement as set
forth in this Agreement shall be evidenced by written notice or a letter from the
Public Utilities Department of the City and directed to the Developer at the
address set forth in the first paragraph of this Agreement.
The City agrees that it will require prospective customers owning property located
outside a Developer's subdivision and desiring to connect a service line or lines to
any special benefit facilities which as been extended at the Developer's expense
to pay a reimbursement fee to the City in compliance with Chapter 12.38, et. seq.
The City by this agreement is not guaranteeing that reimbursement fees in a
sufficient amount to fund full reimbursement to the Developer will be collected
within the seven-year period. The City is agreeing only that it will develop a plan
under Chapter 12.38, et. seq. that will assure that prospective customers owning
property located outside a Developer's subdivision and desiring to connect a
service line or lines to the special benefit facility described in Exhibit 1, which
has been extended at the Developer's expense, shall pay a fee and said fee shall be
distributed as set forth herein. This fee applies only to connections and does not
apply to additional extensions of the special benefit facility. The fee to be
charged said prospective customers shall be based upon the final total project
costs and
(basis for assessment - square foot or lineal footage)
The address for mailing the reimbursement payment to the Developer shall be that
address specified in the first paragraph of this Agreement. Any change in address
of the Developer shall be sent to the Public Utilities Director of the City of Laurel
005-03 Reimbursement Agreement
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at 115 West First Street, Laurel, Montana. The designation of a new address shall
be accompanied by a copy of this Agreement.
This Agreement shall be binding upon and shall inure to the benefit of the parties
hereto, and their successors and assigns.
DATED this day of ,2005.
"CITY"
THE CITY LAUREL
MONTANA
By:.
Mayor
Attest:
City Clerk
005-03 Reimbursement Agreement
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STATE OF MONTANA )
: SS
County of Yellowstone )
On this day of ~ 2005, before me, a Notary Public in
and for the State of Montana, personally appeared
and , known to me to be the Mayor and City
Clerk, respectively, of the City of Laurel, Montana, whose names axe subscribed to the
foregoing instrument in such capacity and acknowledged to me that they executed the
same on behalf of the City of Laurel, Montana.
1N WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial
Seal the day and year hereinabove written.
Approved as to form:
Notary Public in and for the State of Montana
Printed name:
Residing at:
My commission expires:
City Attorney
O05-03 Reimbursement Agreement
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"DEVELOPER"
By:,
STATE OF MONTANA
County of Yellowstone
ss
On this day of ,2005, before me, a Notary Public in and for
the State of Montana, personally appeared , known to me
to be the the person who signed the foregoing instrument and acknowledged to me that
he/she executed the same.
1N WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial
Seal the day and year hereinabove written.
Notary Public in and for the State of Montana
Printed name:
Residing at:
My commission expires:
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