Chapter 16.40
SPECIAL ASSESSMENT DISTRICTS

Sections:

16.40.010  Authority.

16.40.020  City initiated.

16.40.030  Preliminary approval.

16.40.040  Preliminary notice.

16.40.050  Improvements constructed by or on behalf of the City.

16.40.060  Interest.

16.40.070  Final special assessment district ordinance.

16.40.080  Ordinance finality.

16.40.090  Payment of special assessment district fee.

16.40.100  Release of assessment.

16.40.110  Term of life.

16.40.010 Authority.

Pursuant to State law, the City has the discretionary power to grant City-held latecomer's agreements known as special assessment districts to the City for the reimbursement of a pro rata portion of the original costs of storm water drainage systems and street improvements, including signalization and lighting. The authority to approve a special assessment district is vested in the City Council. (Ord. O-03-250 § 1).

16.40.020 City initiated.

The Director of Public Works will present Council with proposals to form special assessment districts to enable the City to recover a pro rata portion of the original costs of public works improvements from property owners which would benefit from the improvements to the City's infrastructure for which they would have been responsible for in the normal course of development. (Ord. O-03-250 § 1).

16.40.030 Preliminary approval.

The City Council may grant preliminary approval for a special assessment district, based upon the information contained in the request for a special assessment district from the Director of Public Works. The granting of preliminary approval by the City Council authorizes the City to prepare preliminary (estimated) cost data, conduct public informational meeting(s) with potential benefiting property owners, and advance to the preliminary notification stage. (Ord. O-03-250 § 1).

16.40.040 Preliminary notice.

A. Notification of potentially benefiting property owners must occur before construction.

B. A benefiting property owner is a property owner within the boundaries of the special assessment district who, upon development or use of their property, would benefit from improvements installed by the City.

C. The City shall schedule a public hearing to receive comments regarding the formation of the special assessment and the question of whether or not a specific property should be included within the special assessment district.

D. The City will notify all the potential benefiting property owners that the proposed installation of City-installed improvements may affect their property and that a public hearing shall be held. The City Clerk shall mail a notice to all owners of record of property within the special assessment district boundary. The notice shall include a general range of the preliminary per unit assessment, the proposed special assessment district boundary map, the date of the scheduled public hearing, and the description of the property owners' rights and options to participate in the special assessment district.

E. The City will use King County Department of Assessments' data as a basis for notifying property owners of record. The City will prepare the mailing labels and assume the costs for mailing the notices. The City will provide an affidavit of mailing, attesting that all potential benefiting property owners have been notified.

This notice form will not be recorded with King County. (Ord. O-03-250 § 1).

16.40.050 Improvements constructed by or on behalf of the City.

Improvements will be installed by the City or an approved contractor acting on behalf of the City per approved plans, following issuance of the construction permit to install the improvements.

The City may join other jurisdictions or private developers in the financing of the road improvements or the upsizing of utilities that will benefit undeveloped or underdeveloped properties. Road or utility improvements that benefit a specific portion of the public may be subject to a special assessment district for reimbursement of a pro rata portion of the project financed by the City. (Ord. O-03-250 § 1).

16.40.060 Interest.

A. Interest may be charged on special assessment district fees. The interest rate shall be based upon the federal discount rate plus an additional one-half percent to said interest rate for future administrative costs of the assessment district.

B. The interest rate shall be charged beginning 30 days after publication of the ordinance establishing the special assessment district until connection, use, or issuance of a development permit. (Ord. O-03-250 § 1).

16.40.070 Final special assessment district ordinance.

A. Preparation of Proposed Final Assessment Roll. Following construction, the Public Works Department shall prepare a final special assessment district ordinance which will include a legal description and a map of the district boundary. The cost of the improvements will be spread among the property owners based upon their pro rata share of said costs. The method of assessment to be used will be one, or a combination, of the following methods, unless otherwise approved or directed by the City Council:

1. Front foot method, whereby the pro rata share would be allocated based on the percentage of total front footage each benefiting property has adjoining the improvements.

2. Zone front foot method, whereby the pro rata share would be allocated based on the percentage of total front footage each benefiting property within a specified zoning classification has adjoining the improvement.

3. Square footage method, whereby the pro rata share would be allocated based on the percentage of square feet each benefiting property has which adjoins the improvement.

4. Trip generation (traffic) method, whereby the pro rata share would be allocated based on the percentage of total trips each benefiting property is estimated to produce when developed or redeveloped.

5. Other equitable method, as determined by the City.

6. Any combination of the above methods.

The method(s) used and the dollar amount(s) will be included in the final special assessment district ordinance.

B. Final Notice of Special Assessment Districts. The City Council receives the final special assessment district ordinance, and if it approves the ordinance, directs the staff to send out notices of the potential special assessment and of the right to appeal. The City Council retains the right to rule on final action. Following Council acceptance of the final special assessment district ordinance, the City Clerk shall mail a notice to all owners of record of property within the special assessment district boundary. The notice shall include the final assessment per unit charge, the legal description, and a map of the special assessment district boundaries, and the description of the property owners' rights and options to participate in the special assessment district process.

C. Appeal.

1. Within 20 days of the date of the mailing, any property owner may submit an appeal in writing to the City Council, c/o City Clerk. An appeal must include a statement of claimed errors concerning the proposed assessment, and must be accompanied by a $125.00 fee. Errors which are not set forth in writing and which do not adhere to the above criteria will not be considered.

2. Objection by a benefiting property owner to the recording of a potential assessment against their property does not constitute a valid appeal.

3. Errors identified in an appeal must be related to cost, methodology for cost distribution, and benefit to the property.

a. Cost. If the benefiting property owner contests these costs, they must provide a basis for their claimed discrepancy. (Estimate from contractor or other reliable sources.)

b. Costs Methodology. If the benefiting property owner contests the cost methodology used, the property owner must show why the methodology is not equitable and provide their suggested alternate method of assessment and the justification for its use in place of the staff recommended method.

c. Benefit. If the benefiting property owner contests benefits, they must provide a statement or documentation why the cost allocated to a particular parcel exceeds the future potential benefit.

4. Upon receipt of an appeal and the required fee, the City Clerk shall transmit the appeal and the official file to the Hearing Examiner for consideration at a public hearing. The Hearing Examiner shall hold the requisite public hearing, establish the record, and provide a written report containing a recommendation to the City Council. Following the public hearing, the Hearing Examiner shall issue a written recommendation which is mailed to parties of record. Any party of record may request reconsideration within 14 days of the issuance of the Hearing Examiner's report. Following expiration of the reconsideration period, the Hearing Examiner shall submit his written recommendation to the City Council on the Council meeting agenda for concurrence. The City Council shall concur with, alter, or deny the Hearing Examiner's recommendation.

D. Council Action. If no appeal is filed, the City Council's initial approval shall grant the special assessment district and authorize the Mayor and City Clerk to execute the ordinance. If an appeal is filed and delegated to the Hearing Examiner for hearing, and the Council concurs with specific recommendations made by the Hearing Examiner as a result of the public hearing, these conditions shall be incorporated into the City special assessment district ordinance. Following approval, alteration, or denial of the Hearing Examiner's recommendation on the appeal, the Council shall grant the special assessment district and authorize the Mayor and City Clerk to sign and record the ordinance. (Ord. O-03-250 § 1).

16.40.080 Ordinance finality.

Once the special assessment district ordinance together with a legal description and a map of the district boundary are recorded in the appropriate county auditor's office, it shall be binding on owners of record within the assessment area. The ordinance shall be recorded within 30 days of final execution by City officials and become effective 30 days after date of publication. (Ord. O-03-250 § 1).

16.40.090 Payment of special assessment district fee.

A. Special assessment district fees triggered by improvements or development, are due and payable before the first of the following occurs:

1. The issuance of a Development Permit; or

2. The recording of a single-family residential plat or single-family residential short plat;

B. During the period that the special assessment district is in place, if the City adopts revised plans, regulations, or standards that make the special assessment district improvements inconsistent or obsolete; and if the City subsequently undertakes, requires, or the City agrees to the property owner's replacement of the special assessment district improvements; then the property owner shall be given a credit against his/her special assessment district fees. The value or cost of the property owner's proportionate share of the construction of the improvement shall be determined at the time the improvements are replaced, and the value or cost must be acceptable to and approved by the Public Works Director.

C. Whenever a benefiting property owner has agreed to a dedication of land or to make improvements included in the special assessment district, the property owner shall be entitled to a credit for the value of the land or the cost of construction against the fees that would be chargeable under the special assessment district provided under this chapter. The value or costs of the construction of those improvements will be estimated at the time they are constructed and approved by the Public Works Director. (Ord. O-03-250 § 1).

16.40.100 Release of assessment.

When all funds are received for a special assessment district fee, the City will, within 30 days of receipt of the funds, record with King County a certificate of payment and release of assessment. (Ord. O-03-250 § 1).

16.40.110 Term of life.

The assessments within a special assessment district, when authorized by City Council, run for a period up to, but not to exceed, 10 years. (Ord. O-03-250 § 1).