Chapter 3.40
LOCAL IMPROVEMENT CODE
Sections:
3.40.010 Methods and regulations for procedure.
3.40.020 Initiation of proceedings.
3.40.030 Form of bonds.
3.40.040 Bond record required.
3.40.050 Delinquent assessments – Acceleration of installments due.
3.40.055 Commencement of proceedings.
3.40.060 Foreclosure of assessment lien – Attorney's fees.
3.40.070 Improvement orders – Special funds.
3.40.080 Letting contracts – Retainer – Lien.
3.40.090 Call for bids notice – Certified check to accompany bid.
3.40.100 Awarding contract – Rejection of bids – Failure of successful bidder to perform.
3.40.110 Letting contract – Restrictions – Estimated costs – Payment of warrants.
3.40.120 Fixed estimate costs – Procedure.
3.40.130 Proceedings not specified – State laws to govern.
3.40.140 Reductions in area of assessments.
3.40.010 Methods and regulations for procedure.
All local improvements which may hereafter be provided for by the city council of the city of Edmonds and which are included and described in Chapter 35.43 RCW entitled “Local Improvement – Authority – Initiation of proceedings,” the cost and expense of which shall be levied and collected by special assessments against property specially benefited thereby, shall be done in accordance with said Chapters 35.43 and 35.44 RCW, this chapter, the Session Laws of the State of Washington and all amendments thereto, and the same are hereby adopted by reference. [Ord. 651 § 1, 1954].
3.40.020 Initiation of proceedings.
Such local improvements may be initiated either by petition signed as provided in RCW 35.43.120 (but if such property be the property of a community under the laws of the said state, the same, as well as all protests to any proposed improvement by resolution shall be signed by both husband and wife), or by a resolution passed by said city council as provided by RCW 35.43.140 and 35.43.150 and all amendments thereto. [Ord. 651 § 2, 1954].
3.40.030 Form of bonds.
All bonds issued in the pursuance of the provisions of this chapter and the Laws of the State of Washington shall be in substantially the following form:
STATE OF WASHINGTON
NO._____ $_____
CITY OF EDMONDS
Local Improvement Bond
L.I.D. No. ___
N.B. – This bond is issued by virtue of the provisions of RCW 35.54.010 to 35.54.090; RCW 35.43.040, 35.43.130, et seq.; RCW 35.45.030; and RCW 35.45.070 which reads as follows:
“Neither the holder nor owner of any bond, interest coupon, or warrant issued against a local improvement fund shall have any claim therefor against the city or town by which it is issued, except for payment from the special assessments made for the improvement for which the bond or warrant was issued and except also for payment from the local improvement guarantee fund of the city or town as to bonds issued after the creation of a local improvement guarantee fund of that city or town. The city or town shall not be liable to the holder or owner of any bond, interest coupon or warrant for any loss to the local improvement guarantee fund occurring in the lawful operation thereof.
The bondholder's remedy in case of nonpayment shall be confined to the enforcement of the special assessments made for the improvement and to the guarantee fund. THE CITY OF EDMONDS, a municipal corporation of the state of Washington, hereby promises to pay to __________ or bearer, __________ Dollars lawful money of the United States, with interest thereon, at the rate of ___________ (___) percent, per annum, payable annually, out of the fund established by Ordinance No. _____ of said city, known as Local Improvement Fund District No. _____ of the city of Edmonds, and not otherwise, both principal and interest payable at the office of the finance director of said city.
A coupon is hereto attached for each installment of interest to accrue hereon, and said interest shall be paid only on presentation and surrender of such coupons to the finance director, but in case this bond is called for payment before maturity, each and every coupon representing interest not accrued at the time this bond is payable under such call shall be void. This bond is payable on or before the ____ day of____, 19__, and is subject to call by the finance director of said city, whenever there shall be sufficient money in said Local Improvement Fund to pay the same and all unpaid bonds of the series of which this bond is one which are prior to this bond in numerical order over and above sufficient for the payment of interest on all unpaid bonds of said series. The city council of said city, as the agent of said Local Improvement District No. _____, established by Ordinance No. _____, has caused this bond to be issued in the name of said city as the bond of said District, the bond or the proceeds thereof to be applied in part payment of so much of the cost and expense of the improvement of __________ and such other work as may be necessary to make a complete improvement under said Ordinance No. _____ as is levied and assessed against the property included in said Local Improvement District No. _____, and benefited by said improvement, and the said Local Improvement Fund District No. _____ of the city of Edmonds, has been established by ordinance for the said purpose; and the holder or holders of this bond shall look only to said fund or to the Local Improvement Guarantee Fund for the payment of both the principal and interest upon this bond.
The call for payment of this bond or any bond of the series of which this is one, shall be made by the finance director by publishing the same in the city official newspaper of said city, and when such call is made for the payment of this bond, it will be paid on the day the next interest coupon thereon shall become due, after said call, and upon said day, interest upon this bond shall cease.
This bond is one of a series of _____ bonds aggregating in all the principal sum of $_____, issued for said Local Improvement District No. _____, all of which bonds are subject to the same terms and conditions as herein expressed.
IN WITNESS WHEREOF, the city of Edmonds has caused these presents to be signed by its mayor and attested by its clerk, and sealed with its corporate seal this ____day of ____, 19__.
The City of Edmonds,
By ___________________
Mayor
Attest:
________________
City Clerk
There shall be attached to each bond such number of coupons, not exceeding 12, as shall be required to represent the interest thereon, payable annually for the term of said bonds, which coupons shall be in substantially the following form:
No. _____ $_____
On the ____day of_____, 19__
CITY OF EDMONDS, STATE OF WASHINGTON
Promises to pay to the bearer at the office of its finance director
_____Dollars
being one year's interest due that day on Bond No. ____ of the Bonds of Local Improvement District No. ____ of the city of Edmonds, and not otherwise provided that this coupon is subject to all the terms and conditions contained in the bond to which it is annexed, and if said bond be called for payment before maturity hereof this coupon shall be void.
The City of Edmonds,
By ___________________
Mayor
Attest:
________________
City Clerk
[Ord. 651 § 3, 1954].
3.40.040 Bond record required.
The city clerk shall keep a record of all such bonds issued. The city clerk shall enter therein the number of the local improvement fund district for which the same are issued, the number of such bond, the date of issue, amount, interest, to whom sold and delivered, and when and where payable. [Ord. 651 § 4, 1954].
3.40.050 Delinquent assessments – Acceleration of installments due.
When any assessment has become delinquent it shall be the duty of the finance director to make and file with the city clerk a statement of all such delinquencies. If on the first day of January in any year, two installments of any local improvement assessment are delinquent, then all installments shall at that time become due and payable and the collection thereof enforced by foreclosure. [Ord. 1350 § 1, 1968; Ord. 651 § 5, 1954].
3.40.055 Commencement of proceedings.
If on the first day of January in any year, two installments of any local improvement assessment are delinquent, or if the final installment thereof has been delinquent for more than one year, foreclosure proceedings shall be commenced on or before April 1st of that year. [Ord. 1350 § 2, 1968].
3.40.060 Foreclosure of assessment lien – Attorney's fees.
Whenever, in the opinion of the authorities of the city, the condition of any local improvement assessment roll shall be such that it becomes necessary or expedient to foreclose the lien of such assessment, after the same shall become delinquent as aforesaid, whether the same become delinquent prior or subsequent to the passage of this chapter, it is lawful for the city to proceed to a foreclosure thereof in any court having jurisdiction thereof, in the manner provided by law as set forth in Chapter 35.50 RCW, and all amendments thereto, and the same is hereby incorporated in and made a part of this section by reference; provided, however, that in the case of such foreclosure there shall be added to the costs and expense provided by Chapter 35.50 RCW, such reasonable attorney's fees as the court may adjudge to be equitable and the amount thereof apportioned to each delinquent assessment or installment appearing on said roll. [Ord. 651 § 6, 1954].
3.40.070 Improvement orders – Special funds.
Every ordinance ordering any improvement shall fix the boundaries of the district which will be assessed to pay the cost and expense thereof, and shall also create a special fund to be known as “Local Improvement Fund District No. ___” into which shall be placed all sums paid on account of such assessment, including interest and penalty thereon, and in the event of sale of such bonds by the city, all premiums and accrued interest on the bonds issued for such improvement. It shall be the duty of the finance director to call and pay in numerical order such outstanding bonds against any particular improvement fund as he may be able to pay with money on hand credited to such fund. [Ord. 651 § 7, 1954].
3.40.080 Letting contracts – Retainer – Lien.
A. In letting all contracts for public improvements, the city council shall provide in the contract for a retainage of five percent of the monies earned by the contractor, calculated from estimates made during the progress of the improvement or work. These funds shall be reserved and retained as a trust fund for the protection and payment of:
1. Any person or persons, mechanic, subcontractor or material man who shall perform labor under the contract for work or improvement;
2. All persons who shall supply such person or persons or subcontractors with provisions and supplies necessary to carry out such work or improvement; and
3. The state of Washington with respect to taxes imposed pursuant to RCW Title 82 which may be due from such contractor.
B. This trust fund shall be retained for a period of 30 days following the final acceptance of the improvement of work as completed. Every person performing labor or furnishing supplies toward the completion of said improvement or work, shall have a lien upon said funds so reserved; provided, that notice of the lien of each claimant shall be given in the manner and within the time provided for in RCW 39.08.030 through 39.08.060 as the same exists or may hereafter be amended. The city council in its sole discretion may make full payment of any partial payment subsequent to 50 percent of the original work being completed as provided in RCW 60.28.010, if it finds that satisfactory progress has been made. [Ord. 2565 § 1, 1986; Ord. 1069 § 1, 1964; Ord. 651 § 8, 1954].
3.40.090 Call for bids notice – Certified check to accompany bid.
The city council may provide that all the work to be done in any local improvement district shall be let in one contract; or, at its option, it may provide that the work in any local improvement district be subdivided and separate and distinct contracts be let for each subdivision thereof. All public improvements to be made by contract shall be let to the lowest responsible bidder therefor. Before awarding any such contract or contracts, the city council shall cause to be published and posted a call for bids as required by RCW 35.23.352. Such notice shall state generally the work to be done and shall call for proposals for doing the same to be sealed and filed on or before the day and hour named therein. All bids shall be accompanied by a certified check payable to the city clerk for a sum not less than five percent of the amount of the bid, or in lieu thereof shall be accompanied by a bid bond in like sum and no bid shall be considered unless accompanied by such check or bid bond. [Ord. 1073 § 1, 1964; Ord. 651 § 9, 1954].
3.40.100 Awarding contract – Rejection of bids – Failure of successful bidder to perform.
A. At the time and place named in such notice to bidders, such bids shall be publicly opened and read; no bid shall be rejected for informality, but it shall be received as a bid if it can be understood what is meant thereby. The council shall proceed to determine the lowest bidder and may let such contract to such bidder. The city council shall have power by resolution to reject any and all bids and to make further calls for bids in the same manner as the original call, or if in its judgment the improvement or work can be done by the city at less cost than the lowest bid submitted, it may do so without making a further call for bids or awarding any contract therefor, and in such cases all checks shall be returned to the bidders by the city clerk; but if the contract be let, then, in such case, all checks shall be returned to the bidders, except that of the successful bidder, which shall be retained until the contract be entered into for making such improvement between the bidder and the city in accordance with such bid, and the duly approved and accepted bond therefor be filed in the office of the city clerk.
B. If said bidder fails to enter into such contract in accordance with his bid within 10 days from the date at which he is notified that he is the successful bidder, the city clerk shall write or print across the face of the certified check: “Forfeited to the city of Edmonds, city clerk,” and shall deliver said check to the finance director to be deposited to the credit of the local improvement fund for which the same was given, and the council shall readvertise for the bids for such work. Neither the city council nor any officer of the city shall have the power to remit such forfeiture. [Ord. 651 § 10, 1954].
3.40.110 Letting contract – Restrictions – Estimated costs – Payment of warrants.
A. In letting all contracts for public improvements under this chapter, the council shall comply with Chapters 39.04 and 39.08 RCW and the same are hereby incorporated in and made a part of this section by reference.
The council shall further limit the time within which said work shall be completed, and during the time allowed in the contract for the completion of the work, the city engineer shall, on the last day of each month, issue an estimate of the amount of work done by the contractor during the month; but shall, after the date for completion of the contract, furnish no estimate other than the final estimate issued after the completion of the work. Said final estimate issued by the city engineer shall include, in addition to a statement of the amount of money expended for fixed estimate costs prior to the date set for the completion of the contract. All fixed estimate costs incurred by the city after the time fixed in the contract for its completion shall be borne by the contractor as a penalty for failure to complete the work within the specified time.
B. All estimates of the city engineer shall be filed in the office of the city clerk and by him reported to the council at the next regular meeting, or at a special meeting called for that purpose, and not more than 95 percent of such estimate shall be allowed and all warrants ordered in payment thereof shall be drawn only upon the particular local improvement fund under which the work is done, and which warrants shall bear interest at a rate not to exceed eight percent per annum from date until redeemed either in money or bonds by the finance director, and shall cease to draw such interest from and after the date fixed by the finance director in a call for the redemption thereof.
C. The five percent required to be held as a reserve to protect laborers and material men for a period of 30 days after final acceptance of the completion of the work, shall, at the expiration of such period, be paid to the contractor in warrants on such special fund so far as the same may be free from claims of liens, and which warrants shall draw interest as above set forth. [Ord. 2565 § 2, 1986; Ord. 1069 § 2, 1964; Ord. 651 § 11, 1954].
3.40.120 Fixed estimate costs – Procedure.
The cost and expense incurred by the city in engineering and surveying necessary for such improvement, and all cost of preparing all necessary data, including the cost of ascertaining the ownership of the property included in the assessment district, advertising and publishing all notices required to be published, shall be called the “fixed estimate” and all bidders shall include the amount thereof in all such bids. If the cost and expense of the improvement to be provided by the mode of payment by bonds the contractor or the contract purchaser of the bonds shall be required to pay the amount of the fixed estimate in cash or certified check to the finance director to be by him placed to the credit of the local improvement fund with which to redeem all warrants issued for such fixed estimate, and an amount equal therewith in interest bearing warrants shall be issued to the contractor or the contract purchaser of the bonds. The finance director shall place so much of said fixed estimate paid in by the contractor or the bond purchaser into the local improvement district fund as will represent the total sum of the warrants and interest to be drawn on that fund for fixed estimate costs. The city council shall have the right to vary the amount of the fixed estimate as the circumstance may require. [Ord. 651 § 12, 1954].
3.40.130 Proceedings not specified – State laws to govern.
All proceedings necessary for the making of local improvements, and the assessment and collection of the cost and expense thereof, not specified in this chapter or amendments thereof, shall be done and performed in the manner and in accordance with the Laws of the State of Washington. The use of a hearing examiner to hear the final assessment roll is incorporated in this title under RCW 35.44.070 is specifically authorized and shall be undertaken in accordance with the provisions of ECC Title 20 as the same exists or is hereafter amended. [Ord. 2490, 1985; Ord. 651 § 13, 1954].
3.40.140 Reductions in area of assessments.
The office of the finance director may accept a reduction in the area of property subject to an assessment for a local improvement district and apply the balance of the assessment, including interest and penalties, if any, to the remainder of the property subject to the assessment; provided, that the written consent of the property owner is filed with the finance director, and provided further that the reduction in area will not result in a substantial diminution of the value of the affected property remaining and subject to assessment. [Ord. 1382 § 1, 1968].