HomeMy WebLinkAboutAgenda Report - October 16, 1991 PH (12)cR
CITY OF LODI COUNCIL COMMUNICATION
AGENDA TITLE: Public Hearing on Introduction of Public Improvement
Reimbursement Ordinance
MEETING DATE: October 16, 1991
PREPARED BY: Public Works Director
RECOMMENDED ACTION: That after a public hearing, the City Council discuss the
Public Improvement Reimbursement Ordinance and Resolution and
introduce the ordinance and continue the public hearing to the
November 6, 1991 Council meeting for adoption of the
accompanying resolution.
BACKGROUND INFGRMATION: Developers are required to install water, sewer and
drainage lines and street improvements necessary to serve
their development. These improvements are made within the
project and along the frontage of the parcel being
developed thus parcels on the opposite side of the street then have those
improvements available. Occasionally these improvements extend across other
parcels. In either case, it is reasonable to require subsequent developers of the
other parcels to reimburse the first developer for their appropriate share of the
improvements. Although this reimbursement is not required by state law, it has been
the City's practice to do so for many years.
In addition to the above scenario, developers are sometimes required to "oversize" a
utility to provide "upstream" capacity. In this case, State law requires that the
developer be reimbursed, either by the City or the upstream property.
The Development Impact Mitigation Fees address some of these issues, mainly oversize
sewers, water mains and master storm drains required by the City Master Plans. The
existing Municipal Code only addresses water and sewer extensions reimbursements and
does not fully comply with state law.
The proposed ordinance does the following:
1) Creates a unified reimbursement procedure for improvements not covered under
the Development Impact Mitigation Fees Ordinance;
2) Adds storm drainage and street installations as improvements eligible for
reimbursement;
3) Repeals and/or amends existing code sections as needed to comply wi'(h the
Development Impact Fee Study and the new Reimbursement Ordinance;
APPROVED.
THOMAS A. PETERSON ...euo.
City Manager
CC -1
CREIMBUR/T N.O1L (COXOM) October 8, 1991
Public Hearing on Introduction of Public Improvement Reimbursement Ordinance
October 16, 1991
Page 2
A comparison of major points in the proposed Reimbursement Ordinance and the
existing code is shown in Exhibit A. Examples of reimbursable improvements are
shown in Exhibit B. Exhibit C is the proposed ordinance and Exhibit D is the
accompanying resolution. The existing code is attached for reference as Exhibit E.
The proposed ordinance provides that the City charge the applicant for preparation
of the agreement and separate a "collection charge" when the reimbursement(s) is
collected. This more equitably spreads the City's costs. The draft ordinance
provides that the preparation charge can be included in the reimbursable amount.
The collection charge would then be a minor charge to prepare a bill, collect the
reimbursement and process a check. I t could occur once or numerous times depending
on the number of parcels affected by the reimbursement agreement. The ordinance
provides for these charges to be set by separate resolution. A draft of this
resolution is attached as Exhibit D and would be adopted when the ordinance is
adopted at the next Council meeting. Continuation of the hearing will provide the
full fourteen -day notice period as required by state law.
The recommended charges, based on Public Works staff time and expenses for
advertising and mailing, are:
Agreement Preparation: 1°/aof construction cost with a minimum charge of $500
Collection Charge: $60
Based on the amounts of past agreements, most will pay the $500 minimum.
FUI\IDM None needed.
L. Ronsko
c Works Director
Prepared by Richard C. Prima Jr., Assistant City Engineer
JLR/RCP/1m
Attachments
cc: City Attorney
Mailing list
CREIMBUR/TXTW.OIL (CO.COM) October 8, 1991
ItExhibit Aimbursement Agreements - —
costs Construction costs All construction
eligible except services costs plus services
for for oversize, as appropriate
reimbursement difference i n
materials only
10%for engineering Same
and administration
Appropriate City fees,
i.e. engineering,
inspection,
administrative
charges, and easement
acquisition
Interest
Exi sting
Pro,)osed
State law requires "an
Item
Code
Ordinance
Conunctits
Affects:
Water tines
Water Faci lities
The proposed ordinance
Sewer Lines
Sewer Facilities
will cover such improve -
Storm Drains
ments as sewer l i f t
Streets
stations which, in the
Term
10 years,
15 years,
past, required a special
afterwards payments
afterwards payment s
agreement.
Maximum
Water - 8"
Water 8"
The concept "oversize"
size
Sewer - 10"
Sewer 10"
streets was included in
without
Per front foot
Storm 18"
the Development Impact
reimbursement
Street 68 ft. RIW
Mitigation Fee study, but
not explicitly included
City Charge
2% of each
Separate charge to
in the ordinance.
costs Construction costs All construction
eligible except services costs plus services
for for oversize, as appropriate
reimbursement difference i n
materials only
10%for engineering Same
and administration
Appropriate City fees,
i.e. engineering,
inspection,
administrative
charges, and easement
acquisition
Interest
Specifically
Reimbursement
State law requires "an
n -al allowed
amount indexed
amount attributable to
to Engineering
interest". Index is
News Record
same as Development
Construction Cost
Impact Fee Ordinance
Index
Term
10 years,
15 years,
afterwards payments
afterwards payment s
retained by City
placed in the Impact
Mitigation Fund(s)
Basis of
Per front foot
As appropriate per
Proposal allows
charge
parcel benefitted
flexibility in
apportioning costs
City Charge
2% of each
Separate charge to
Draft resolution
reimbursement
prepare agreement
recommends 10/cof
collected,
plus collection
construction cost with
with $35.00
charge, all set
$500 minimum and $60
minimum for
per separate
for each collection
water
resolution
CREIMBUR/TXTW.01L (CO -COM) September 26, 1991
OF 110
CITY OF LODI
'4/Foa PUBUC WORKS DEPARTMENT
Ex. Street
"Adjacent parcel"
to reimburse "Project"•
for street frontage
improvements
"Upstream"
Parcel to //"Project"
reimburse
"Project" for
"oversized""O
portion of versized New Utility
new utility New Street
/r
® New street improvements by "Project"
* oversize cost of Master Plan Utility to be
paid from Development Impact Mitigation
Fund.
EXHIBIT B
EXAMPLES OF REIMBURSEABLE
PUBLIC IMPROVEMENTS
i
"Across the Street"
Parcel to reimburse
"Project" for share
of utility
Exhibit C'
79��4r
AN CRDkW4CE OF THE CITY OF LODI
BE IT ORDAINED BY THE IM CITY CDUTSM AS FOLLOWS:
Section 1. Chapter 16.40 is hereby added to Title 16 - "Subdivisions" of
the Loi Municipal Code tc read as follows:
Chapter 16.40
Reimbursements For Construction
16.40.010 Findings and Purpose.
The Council hereby finds and declares as follows:
A. Construction of new streets and water, sewer and storm
drains for a development project often benefits other properties. Such
benefit may occur through the provision of supplemental capacity (oversize
lines) or installations across or opposite unserved property which would
be required to make such improvements upon development or service
connection.
B. The State of California, in Government Code Sections 66485
through 66489, requires that the City either pay for or enter into an
agreement to reimburse the installing party, including an amount
attributable to interest, for such installations. Also, to pay the costs
as required by the reimbursement agreement, the City may collect funds
from the other properties which benefit from such installations.
C. The City of Lodi has adopted a Development Impact Mitigation
Fee Ordinance (Chapter 15.64 of the Lodi Municipal Code) which provides
for reimbursement and collection of funds under only a portion of the
circumstances described in (A) above.
D. The purpose of that Chapter is to identify the improvements
which are reimbursable under the Development Impact Mtigation Fee Program
and to provide a uniform reimbursement procedure for the cost of
improvements which arz to be reimbursed from other properties. For
purposes of this Chapter, "applicant" shall mean the owner of the property
for which the improvements are required to be installed per the City Code.
16.40.020 Improvements to be Reimbursed.
A. The cost of the following improvements shall be reimbursed
from the appropriate Development Impact Mitigation Fee Fund. The terms of
the reimbursement shall be in accordance with Chapter 15.64 of this Code.
1) Oversize water mains and major crossings required per the
Water Master Plan;
2) Oversize sewers and 1 if t stations required per Sanitary
Sewer Master Plan;
3) Storm drains identified as trunk lines in the Master Storm
Drain Plan;
4 Excess width street right-of-way and construction required
per Chapter 15.44 and 16.24 of this Code;
5) Any other construction identified in the City Capital
Improvement Program as a project to be funded with Development Impact
Mtigation Fees.
LORDI NA.I/TXTW.O1L
B. The cost of improvements not specified in (A) which benefit
other property or would be required of that property upon development,
shall be reimbursed in accordance with this Chapter.
16.40.030 City E 1 igibi 1 i ty .
Whenever the City constructs improvements meeting the
requirements of this Chapter, the City shall be eligible for reimbursement
in a like manner as other applicants.
16.40.040 Application for Reimbursement.
A. Khenever an applicant constructs improvements eligible for
reimbursement under this Chapter, the applicant shall file a request for a
Public Improvement Reimbursement Agreement with the Public Works
Director. The request shall include:
1) A description of the improvements and the additional
properties receiving the benefit;
2) Engineering calculations and data as described in the City's
Public Improvement Design Standards;
3) An itemized cost estimate for the improvements including
supporting information for the requested reimbursement;
4) A recommendation on apportionment of the reimbursable amount;
5) Application fees as determined by City resolution.
B. All such applications shall be filed no later than one year
after the acceptance of the improvements by the City. The City will make
no effort to delay project approval or otherwise condition payment of
reimbursements from other properties benefiting from the improvements
prior to completion of a reimbursement agreement.
16.40.050 Public Improvement Reimbursement Agreement.
A. within 60 days of receipt of a completed application, the
Public Works Director shall prepare a Public Improvement Reimbursement
Agreement contsining the following provisions:
1) The amount of reimbursable costs shall include easement
acquisition and construction costs less any applicable City credits plus
ten percent for administrative and engineering costs. Applicable City
engineering and processing fees shall also be added. Costs of financing,
bonds or other applicant costs shall not be included.
2) The total reimbursable cost shall be apportioned to the
benefitting properties as appropriate. Costs of transitions, utility
stubs or other minor work shall not be apportioned to adjacent property.
3) The reimbursable amount shall be recalculated annually to
include an amount attributable to interest, using the Engineering News
Record 20 Cities Construction Cost Index as of January 1. The
reimbursable amount for subsequent years shall be the prior year
reimbursable amount less any reimbursements made during the year, all
multiplied by the percentage change in the Index over the previous year.
4) The agreement shall provide that the City will collect the
appropriate charge from the properties identified in the agreement and
reimburse the applicant or the applicant's heirs, successors or assigns,
for a period of 15 years from the date of the agreement. Beyond 15 years,
such charges shall be collected and paid into the appropriate Development
Impact Mitigation Fee Fund, except that for agreements initiated by the
City, the charge shall be placed in the City fund from which the
improvement was originally funded or the General Fund if the original fund
no longer exists.
5) Reimbursement shall be payable to the applicant or the
applicant's heirs, successors and assigns. It is the applicant's
LORDINA.1/TXTW.01L
responsibility to notify the City Finance Director of changes of address
and assigns.
6) The agreement shall be recorded for all parcels burdened and
shall run with the land.
B. The approved agreement shall be numbered and filed by the
Public Works Director.
16.40.060 Public Hearing and Protest.
A. Prior to approval of any agreement under this chapter, the
City Council shall conduct a public hearing. The hearing shall be
conducted within ninety (90) days of receipt of the completed application.
B. Notice of such hearing shall be given at least ten (10) days
prior thereto by registered mail to the applicant and owners of all
properties to be benefitted or burdened by such reimbursement agreement as
identified i n the latest adjusted tax roll.
C. Any interested party may, at the time of such hearing,
protest an agreement under this chapter.
D. Following such hearing, the City Council shall make findings
as to the specific parcels to be benefitted and/or burdened, and the
nature of the benefits conferred.
K Iffhe City Council denies the agreement and reimbursement
is required under state law, then the City Council shall either
appropriate funds to reimburse the applicant or approve an agreement
providing for the City to pay the reimbursement as required under this
Chapter.
16.40.070 Collection of Reimbursements.
A. For any property on which the City Council has approved a
Public Improvement Reimbursement Agreement, the appropriate charge shall
be collected by the City upon development. Development shall mean any of
the following:
1) Service connection to the u t i I i ty covered by the Public
Improvement Reimbursement Agreement;
2) Filing of a final subdivision map;
3 Filing of a final parcel map unless the City requirement for
installation of public improvements is waived or deferred;
4 Issuance of a building permit for which public improvements
are required under Chapter 15.44 of this Code.
B. In the event the activity described in (A) above only occurs
on a portion of the area covered by the reimbursement agreement, the
reimbursement charge shall be apportioned by the Public Works Director and
the appropriate charge made upon the developing portion.
16.40.080 Payment of Reimbursements.
A. Upon collection of reimbursement charges, the Public Works
Director shall prepare a letter of entitlement stating the amount of the
charge collected, reference the agreement number and administrative charge
to be retained by the City. The letter shall be forwarded to the Finance
Director for actual reimbursement.
B. The administrative charge for collecting the charge and
mailing the reimbursement shall be determined by the City Council by
resolution.
C. The Finance Director shall mail the reimbursement amount to
the last address on file with the Finance Director of the applicant.
D. Any reimbursement amount returned or unclaimed after two
years from the date of mailing shall be deposited in the appropriate
Development Impact Mitigation fee Fund.
LORDINA.1/TXTW.OIL
Section 2. 13.08.110 of the Lodi Municipal Code is amended to read as
follows:
13.08.110 i�iinimum size.
The minimum size water main shall have a nominal inside
diameter of six inches except as approved by the Public Works
Director i n accordance with the City of Lodi Public Improvement
Design Standards. In areas zoned or planned for commercial and
industrial uses, the minimum size shall be eight inches in
diameter. Larger size mains may be required as determined by
the Public Works Director from the city master water plan.
Section 3. 13.08.130 of the Lodi Municipal Code is amended to read as
follows
13.08.130 Oversized mains.
Wherever the city requires that a water main larger than
eight -inches in diameter be installed in order to serve
additional property or to conform to the water master plan, the
applicant shall be reimbursed the difference in cost between the
actual water main to be constructed and an eight -inch diameter
water main. The difference in cost shall be determined by the
Public Works Director. The reimbursement shall be made in
accordance with Chapter 16.40 of this code.
Section 4. 13.08.140 of the Lodi Municipal Code is amended to read as
fol 1 ows:
13.08.140 Major crossings.
A. Wherever the City Master Water Plan requires that a water
main cross a right-of-way listed as follows, the City will
reimburse the applicant one-half the estimated cost of that
crossing :
1. Woodbridge Irrigation District;
2. Southern Pacific Transportation Company;
3. Central California Traction Company;
4. Highway 99;
5. Highway 12;
6. Lower Sacramento Road;
7. Hutchins Street (south of Kettleman Lane).
B. The limits of the crossing shall be determined by the
Public Works Director. The reimbursement shall be made in
accordance with Chapter 16.40 of this Code.
Section 5. 13.12.300 of the Lodi Municipal Code is amended to read as
follows:
13.12.300 Purpose.
The City Council is desirous of adopting a sewer service and
extension policy that is fair and equitable to all developing
properties and that provides that the cost of extension shall be
distributed among subsequently developing properties connecting
thereto. For purposes of this Article, storm drains shall be
considered as sewers except as specifically stated otherwise.
Section 6. 13.12.340 of the todi Municipal Code is amended to read as
TOT ows:
L0RDINA.1/TXTW.01L
13.12.340 Minimum diameter.
The n*iii m size sewer main shall have a nominal inside
diameter of eight inches except as approved by the Public Wcxks
Director in accordance with the City of Lodi Public Improvement
Design Standards. The minurnun size storm drain shall have a
nominal inside diameter of twelve inches. Larger size mains n y
be required as determined by the Public Wo& Director in
accordance with the City Public Improvement Design Standards or
the City master sewer and storm drain plans.
Section 7. 13.12.370 of the Lodi Municipal Code is amended to read as
follows:
13.12.370 Reimbursement - Oversized mains.
Wherever the city requires that a sewer main larger than ten
inches in diameter or a storm drain larger than eighteen inches
in diameter be installed in order to serve additional property
or to conform to the applicable master plan, the applicant shall
be reimbursed for the oversized pipe. The reimbursement shall
be based on the difference in cost between the actual pipe to be
installed and a ten -inch sewer or eighteen -inch storm drain as
applicable. The difference in cost shall be determined by the
Public Wo& Director. The reimbursement shall be made in
accordance with Chapter 16.40 of this Code.
Section 8. Section 16.24.04 of the Lodi Municipal Code is amended to add
the lwing:
C. The subdivider or developer shall be reimbursed for excess
width street construction and right-of-way or for construction
of permanent improvements fronting adjacent property.
Reimbursement shall be made in accordance with Chapter 16.40 of
this Code. For purposes of this section excess width shall mean
the portion of right-of-way:
1) over 68 feet in width in new streets;
2) in excess of 34 feet in widenings of existing Streets
on either side.
Section 9. Section 15.44.050 of the Lodi Municipal Code is amended to add
the -fo i'i ng :
F. Excess width street improvements and dedications made
pursuant to this Chapter are eligible for reimbursement as
provided in Chapter 16.24 of this Code.
Section 10. Sections 13.08.150, 13.08.160, 13.08.170, 13.01.180,
13.08.190, 13.08.200, 13.08.210, 13.12.350, 13.12.360, 13.12.380 ,
13.12.390, 13.12.400 and 13.12.410 of the Lodi Municipal Code are hereby
repealed.
Section 11. Resolution No. 3570. "Limited Access Major Arterial Street
Policy" i s here y repealed.
Section 12. Effective Date. This ordinance takes effect 60 days after
i t s adoption.
L0RDINR.1/TXTW.OIL
Section 13. Publication. The City Clerk shall either: (a) have this
ordinance published once within 15 days after adoption in a newspaper of
general circulation, or (b) have a summary of this ordinance published
twice in a newspaper of general circulation, once 5 days before its
adoption and again within 15 days after its adoption.
The foregoing ordinance was introduced at a meeting of the City Council of
the City -of Lodi held on , 1991, and was adopted and
ordered published at a meeting of the City Council held on
17 1991, by the following vote:
AYES:
NOES
ABSENT:
ATTEST:
ALICE M. REIMCHE
City Clerk
LORDINA.1/TXTW.01L
Exhibit D
Resolution No, 91-
A RESOLUTION OF THE LSI CITY SII., ESTABLfi IMG CHARGES FOR PREPARATION AND
PROCESSING OF PUBLIC AGREEMENTS
WHEREAS, the Lodi City Council has adopted Ordinance No. creating a
procedure for preparation and processing of public improvement reimbursement
agreements; and
WHEREAS, said Ordinance provides that the council may adopt by resolution, charges
for the City to prepare and process said agreements; and
WHEREAS, the cost to prepare and process such agreements have been estimated by the
Public Woks Director; and
WHEREAS, such information was available for public inspection and review 14 days
prior to a public hearing.
NOW THEREFORE IT IS RESOLVED by the Lodi City Council that:
1. The City charge torepare a reimbursement for installation of public
improvements shall he one percent of the reimbursable construction cost of the
improvements, excluding engineering, administrative and other costs with a
minimum charge of $500.00.
2.
The minimum preparation charge shall be paid at the time
the application for
preparation of an
agreement is made. The final charge,
if arty, shall be paid
prior to execution
of the agreement by the City,
3.
The above charges
are non-refundable.
4.
Upm collection of
reimbursements aprocessing charge of
$60.00 shall be
deducted from each
check issued to the applicant.
5.
The fees adopted in
this Resolution shall take effect 60
days after adoption.
I
hereby certify that
Resolution 91- was passed and adopted
by the City
Council of the City of
Lodi in a regumeeting held
by the following
vote:
Ayes : Council Members -
Noes: Council Members -
Absent: Council Members -
Abstain: Council Members -
ALICE M, REIMCHE
City Clerk
r,REIMBUR/TXTW.01L (CO.COM) September 25, 1991
7
owner or occupant and not opened until
the fire is extinguished. (Prior code §
2-47)
Article II. Main Extensions
13.08.070 Policy.
The city council is desirous of adopt-
ing a water main extension policy that is
mo fair and equitable to all developing prop-
Uctn�e erties and that provides that the cost of
extensions shall be distributed among
subsequently developing properties con-
necting thereto. (Prior code§ 26-5)
13.08.080 Application—
Determination of necessity.
A. Whenever a property owner is
desirous of obtaining water service. an
application shall be made to the public
A/o works director for water service.
Chane¢ B. The public works director shall
determine the closest adequate water
main and. if an extension is necessary.
indicate the size of the main to be
extended. and the limits of the extension.
(Prior code § 26-6)
I3.08.090 Applicant's obligation.
No Whenever the public works director
Chanse determines that a water main extension is
necessary. the applicant will be required
to install at his own expense the water
main extension in accordance with
engineering plans furnished by applicant
and approved by the public works direc-
tor. The plans shall be prepared in
accordance with the current city design
standards and this article. (Prior code
26-7)
22I
.Exhibit E
13.08.060
13.08.100 Mains to extend full
frontage.
in every case where a water main is to
be tapped to serve a parcel. the same shall
be extended the Full frontage of the par-
cel, including any crossings required in
the city master water plan. (Prior code §
26-8)
13.08.110 Minimum size.
The minimum size water main shall
have a nominal inside diameter of six
inches. I n areas zoned or master planned
for commercial and industrial uses. the
minimum size shall be eight inches in
diameter. Larger size mains may be
required as determined by the public
works director from the city master water
plan. (Priorcode § 26-9)
13.08.120 Fire hydrants.
The installation of fire hydrants or
provisions for fire hydrants shall be
included in any main extension and the
cost of such hydrants shall be paid for by
the applicant. Fire hydrant location and
typeshall be as approved by the fire chief.
(Prior code § 26-10)
13.08.130 Oversize mains.
Wherever the city master water plan
requires that a water main larger than an
eight -inch diameter be installed. the city
shall pay to the applicant the difference
in costs of material between the actual
water main to be constructed and an
eight -inch diameter water main. The dif-
ference in costs of material shall be deter-
mined by the public works director from
bids received by the c i t y for similar mate-
rials. Payment shall be made at the time
No
Ckonse
No
Revise
222
13.08.130
the water main reimbursement agree-
will be permitted without reimburse-
ment is approved by the city council.
ment. (Prior code §?6-13)
(Prior code § 26-11)
13.08.160 Reimbursement—
13.08.140 iVlajor crossings.
Agreement.
The water main extension agreement
�eVA. Wherever the city master water
jSl,
shall contain the following: t7ek�'�.
plan requires that a water main cross a
A. The amount of the reimbursable
right -of --way listed as follows, the city will
costs shall be determined by the public
pay the applicant one-half the estimated
works director and subject to the
cost of that crossing:
approval of the city council.
1. Woodbridge Irrigation District:
B. Reimbursable costs shall include
2. Southern Pacific Transportation
water main construction costs plus an
Company;
3. Central California Traction Com-
administrative and engineering cost of
ten percent of ttre construction cost.
pany:
4. Highway 99:
Costs of major crossings are not consid-
5. Highway 12;
ered as reimbursable costs under the
6. Lower Sacramento Road:
agreement.
C. Water service lines serving indi-
7. Hutchins Street (south of Ket-
vidual properties shall not be included as
tleman Lane).
a reimbursable cost.
B. The limits of the crossing and the
D. There shall be no reimbursement
estimated cost shall be determined by the
to the applicant in excess ofreimbursable
public works director. (Prior code §
costs stated in the agreement.
26-12)
E. No interest. finance or security
costs shall be included in the reimbursa-
13.08.150 Reimbursement—
ble cost.
Application.
pQt.
F. Reimbursement shall be paid from
Whenever an applicant for a water
charges collected by the city from abut -
main extension constructs or installs a
ting properties as they connect to the new
water main that may serve abutting prop-
water main.
erties. the applicant may apply for a
G. Reimbursement shall be paid only
water main extension reimbursement
from charges collected within ten years
agreement. The public works director
from the date ol'the agreement. The city
shall determine the extent to which the
shall have no obligation to pay reim-
abutting properties may be served and
bursement from any source other than
recommend a water main extension
reimbursement funds collected pursuant
agreement to the city council prior to
to this article. Charges collected from
construction ot'any water main. In cases
abutting properties after ten years shall
where properties served in the future do
be retained by the city.
not abut the water main included in a
H. The charges collected for reirn-
reimbursement agreement. an extension
bUrsement shall bcbased upon the front
222
IN
De)6.
e�
NJ# -
footage parallel to the water main of the
adjoining pgmrties.
L The city council, by resolution, shall
estd3b& the charge for administering the
reimbursement provisions of this article.
I Reimbursement shall be payable to
heirs, successors and assigns of the appli-
vvt
K City payment for major crossings
shall be made to the applicant at the time of
development (i.e., approval of subdivision
or development agreement, building permit).
(Prior code § 26-14)
13.08.170 Reimbursement—City
benefit.
A Whenever the city has extended or
installed a water main that wi I I serve abut-
ting properties, the City shall be eligible for
reimbursement m a like manner as other
applicants.
B Wherever the city has installed a
major crossing (or portion of one), the city
shall be credited for the installation at the
time the adjacent property connects to the
crossing. The credit shall be determined by
the public works director based on
then-cturent costs. (Prior code § 26-15)
13.08.180 Reimbursement—
Payment.
eimbursementPayment.
Wherever the city council has approved
a water main extension reimbursement
agreement, the front -footage charges shall
be collected by the city from any parcel
abutting the water main covered in the
agreement at the time of development and
prior to water service being provided to the
abutting parcel. (Prior code § 26-167
e is
13.05.190 Reimbursement—Utter of
entitlement.
When payment for reimbursement has
been made, the public works director shall
prepare a letter of entitlement stating the
fees collected, reference to the water main
extension reimbursement agreement, the
amount to be reimbursed, and the adminis-
trative charge to be retained by the city.
This letter of entitlementshall be forwarded
to the ftwm director for actual reimburse-
ment under terms of the agreement. (Prior
code § 26-17)
13.08.200 Reimbursement—
Unclaimed.
eimbursementunclaimed.
The finance director shall mail the reim-
bursement to the I& address of the appli-
ou t, on Me v&h the finance director, in the
water main reimbursement agreement. A n y
reimbursement returned or unclaimed after
two years from the date of naiLUg will
revert to the city's general fund. (Prior code
§ 26-18)
13.08.210 Effective de.
Ti.s article shall apply to all properties
developed after August 1, 1M. Reimburs-
able costs shall be collected and reimbursed
for any water mains accepted for mainte-
nance after that date as outlined in this
article; provided, however, that property
covered by tentative maps or use permits
approved by the planning commission prior
to August 1, 19'72, and developed within
eighteen months of the date of approval by
the planning commission shall not be re-
quired to pay reimbursement charges. (Prior
code § 26-19)
223 (Loaf 7-91)
fwclL
17c)e-L
ATL
Article V. Extr goes
13.12.300 Purpose.
Rivist
The city council is desirous of adcpting a
sewerserviceand extensionpolicy that is fair
and equitable to all developing properties
and that provides that the cost of extension
shall be distributed among subsequently de-
13.12.310
veloping properties connecting thereto.
(Ord. 1501$1(part),1990)
93,12310 Application.
13.12350 Reimbursement—
Whenever a pmpw y owner is desirous of
Application.
�O
obtaining sewer service, anapplicationshall
Whenever an anplicant for sewer exten- Debi%~
Cl,o►a
be made to the public works director for
sion constructs or installs a sewer that may
sewer service. The public works director
serve abuttingproperties, thu applicant may
shall determine the closest adequate sewer
apply for a sewer extension reimbursement
and, if an extensionisnecessary, indicate the
agreement. The public works director shall
size of the main to be extended and the limits
determinethe extent to which abuttingpr6p-
ofthe extension. (Ord.1501§1(pa41990)
erties may be served and recommend a sewer
extensionagreement to the city councilprior
to construction of any sewer. (Ord 1501 § 1
Q.12� Applicant's obligation.
(part), 1990)
Wheneverthepublicworksdirector deter-
mines that a sewerextension is necessary, the
13.12360 Reimbursement—
t4o
applicant v21 be required to ins ll, at the
Agreement. Detr e
applicant's own expense, the sewer exten-
The sewer extension reimbursement
sion in accordance with engineering plans
agreement shall contain the following:
famished by applicant and approved by the
A. The amount of the reimbursable costs
public works director. The plans shall be
prepared in accordance with the city design
shall be determined by the public works di -
rector and subject to the approval of the city
standards. (Ord. M § 1(p4 1990)
cel
R Reimbursable costs shall include esti-
W.12330 Extension for full frontage
mated sewer construction costs, less any ap-
plicable credits, plus an administrative and
d
engineering cost of ten percent of the con -
In everycasewhereaseweristDbetapped
shsuctimcost.
to serve a parcel, the Sameshallbe extended
C. Sewer laterals serving individual
%lo
the frill frontage of the parcel unless the
properties shall not be included as a reim-
Cha�
public works director determines that the
bursable cost
sewer will not need to be extended ID serve
D. There shall be no reimbursement to
any other properties. (Ord. 1501 § 1 (part),
the applicant in excess of reimbursablecosts
1990)
stated in the agreement.
E. No interest, finance or security costs
13.12340 Minimum diameter.
shall be included in the reimbursable costs.
�cv iS
F. Reimbursement shall be paid from
The minimum size sewermain shall have
charges collected by the city from abutting
a nominal inside diameter of six inches.
properties as they connect to the new sewer.
Larger size mains may be required as deter-
G. Reimbursement shall be paid only
ndried by the public works director from
from charges collectedwithin ten years from
engineering calculations or the city master
the date of the agreement. The city shall have
sewer pIan. (Ord. 1501§ 1 (part), 1990)
noobligationto pay reimbursement from any
245
(Laai 1-91)
13.12360
source other than reimbursement funds col-
lected pursuant ifl this chapter. Charges col-
lected from abutting properties after ten
years shallbe retainedby the city.
E The charges collected for reimburse-
ment shall be based upon front footage par-
allel to the sewer of the abuttingproperties.
L An administrative cost of two percent
of ?he total reimbursable cost shall be de-
ducted from any moneys paid to the city as
payment for administering the reimbime-
ment provisions of th s chapter.
J. Reimbursement shall be payable to
heirs, successors and assigns of the appli-
cant. (Ord. 1501 § 1(part), 1990)
13.12370 Reimbursement—
Oversize main&
Whenever engineering calculations or the
,R,ov, 'citymaster sewer plan require that a sewer
nein larger than ten inches in diameter be
installed, the City shall pay to the applicant
the difference in cost of materialbetween the
actual sewer to be installed and a ten -inch
sewer. The difference in costs of material
shall be determined by the public works di-
rector. Paymentshall be made at the time the
sewerreimbursement agreementis approved
by the city council. (Ord. 1501 § 1 (part),
1990)
13.12.380 Reimbursement --City
eligibility.
Delo. Whenever the city has extended or in-
stalled a sewer that will serve abutting prop-
erties, the city shall be eligible for ze
ment in a like manner as other applicants.
(Ord. 1501 § 1(part), 1990)
a,oa; 1-91) 246
13.12.390 Reimbursement—
Payment.
Wheneverthe city councilhas approved a
sewer extension reimbursement agreement,
the front footage charges shall be collected
by thecity fromanyparcel abuttingthe sewer
covered in the agreement at the time of de-
velopment and prior to sewer service being
provided to the abutting parcel. (Ord. 1501 §
1 (Part). 1990)
13.12.400 Reimbursement—
Entitlement letter.
When payment for reimbursement has
been made, the public works director shall
prepare a letterofentitlementstatingthe fees
collected, reference to the sewer extension
reimbursement agreement, the amount to be
reimburs-4 and the administrativecharge to
be retainedby the city. This letter of entitle-
ment shallbe forwarded to the finance direc-
tor for actual reimbursement under terms of
the agreement. (Ord. 1501 § 1 @art), 1990)
13.12.410 Reimbursement ---
Unclaimed.
The finance director shall mail the reim-
bursement to the last address on file with the
firanoedirectorof the applicant in the sewer
reimbursement agreement. Any reimburse-
ment returned or unclaimed after two years
from the date of mailing will revert to the
city's general fund. (Ord. 1501 § 1(part),
1990)
ArticleVL Administration
13.12.420 Discharge reports.
In addition to the federally required re-
ports described in Section 13.12.120, the city
may require that any high-strength user dis-
C
ALICE REIMCHE
�LERK
C)TY COUJ� THOMAS A. PETERSON
City Manager
DAVID M.HINCHMAN. May
CITY OF L O D I o
JAMES W. PINKERTON. Jr. ALICE M. REfMCHE
City Clerk
Mayor Pro Tempore
A PENNING CITY HALL, 221 WEST PINE STREET BOB McNATT
PHILLIP
JACKA. A PEN CK P.O. BOX 3006 City Attorney
LODI, CAI IFORNIA 95241-1910
JOHN R (Randy) SNIDER (209) 334-5634
FAX (209) 333-6795
October 9, 1991
SUBJECT: Public Hearing on Introduction of Public Improvement
Reimbursement Ordinance
Dear Interested Party:
Enclosed is a copy of background information on an item that will be
discussed at the City Council meeting on Wednesday, October 16, 1991, at
7:30 p.m. The meeting will be held in the City Council Chamber, Carnegie
Forum, 305 West Pine Street. You are welcome to attend.
W have not included the complete Council package in this mailing due to
its size. If you wish to obtain a copy, please call Linda McEnerney at
333-6706.
If you wish to communicate with the City Council, please contact Alice
Reimche, City Clerk, at (209) 333-6702.
If you have any questions about the item, please call Richard C. Prima or
ne at (209) 333-6706.
ack\L. Ronsko
ubli Works Director
JLR/lm
Enclosure
cc: City Clerk
NREIM8UR/TXTtl.02M
y OF
CITY OF LODI COUNCIL COMMUNICATION
P
AGENDA TITLE. Public Hearing on Introduction of Public Improvement
Reimbursement Ordinance
NIEENG DATE: October 16, 1991
PREPARED BY: Public Wo& Director
RECOMMENDED ACTM That after a public hearing, the City Council discuss the
P u b I is Improvement Reimbursement Ordinance and Resolution and
introduce the ordinance and continue the public hearing to the
November 6, 1991 Council meeting for adoption of the
accompanying resolution.
BACKGROUND k4i3FA1AJM Developers are required to install water, sewer and
drainage lines and street improvements necessary to serve
their development. These improvements are made within the
project and along the frontage o f the parcel being
developed thus parcels on the opposite side of the street then have those
improvements available. Occasionally these improvements extend across other
parcels, In either case, it is reasonable to require subsequent developers of the
other parcels to reimburse the first developer for their appropriate share of the
improvements. Although this reimbursement is not required by state law, it has been
the City's practice to do so for many years.
In addition to the above scenario, devsloppers are sometimes required to "oversize" a
utility to provide "upstream" capacity. In this case, State law requires that the
developer be reimbursed, either by the City or the upstream property.
The Development Impact Mitigation Fees address some of these issues, mainly oversize
sewers, water mains and master storm drains required by the City Master Plans. The
existing Municipal Code only addresses water and sewer extensions reimbursements and
does not fully comply with state law.
The proposed ordinance does the following:
1) Creates a unified reimbursement procedure for improvements not covered under
the Development Impact Mt i g a t i o n Fees Ordinance;
2) Adds storm drainage and street installations as improvements eligible for
reimbursement;
3) Repeals and/or amends existing code sections as needed to comply with the
Development Impact Fee Study and the new Reimbursement Ordinance;
4 for a oubl is hearing
APPROVED.
THOMAS A. PETERSON «......
City Manager
cc -1
CREIMBUR/TXTW.OIL (CO.COM) October 8, 1991
Public Hearing on Introduction of Public Improvement Reimbursement Ordinance
October 16, 1991
Page 2
A comparison of major points in the proposed Reimbursement Ordinance and the
existing code is shown in Exhibit A. Examples of reimbursable improvements are
shown in Exh?bit B. Exhibit C is the proposed ordinance and Exhibit D is the
accompanying resolution. The existing code is attached for reference as Exhibit E.
The proposed ordinance provides that the City charp the applicant for preparation
of the agreement and separate a "collection charge what the reimbursement s) is
collected. This more equitably spreads the City's costs. The draft ordinance
provides that the preparation charge can be- included in the reimbursable amount,
The collection charge would then be a minor charge to prepare a bill, ,.ollect the
reimbursement and process a check. It could occur once or numerous times depending
on the number of parcels affected by the reimbursement agreement. The ordinance
provides for these charges to be set by separate resolution. A draft of this
resolution is attached as Exhibit D and would be adopted what the ordinance is
adopted at the next Council meeting. Continuation of the hearing will provide the
full fourteen -day notice period as required by state law.
The recommended charges, based on Public Works staff time and expenses for
advertising and mailing, are:
Agreement Preparation: 1°/aof construction cost with a minimum charge of $500
Collection Charge: $60
Based on the amounts of past agreements, most will pay the $500 minimum.
FUNDING: Ncne needed.
NJac. Ronsko
Works Director
Prepared by Richard C. Frima Jr., Assistant City Engineer
JLR/ RCP/ lm
Attachments
cc: City Attorney
Mailing 1 i s t
CREIMBUR/TXTW.0IL (CO.COM) October 8, 1991
Exhibit A
Reimbursement Agreements
CREIM8UR/TXTW.0L (CO.COM) 'eptember 26, 1991
Existing
Proposed
Item
Code
Ordinance
Comments
Affects =
Water Lines
Water Facilities
The proposed ordinance
Sewer Lines
Sewer Facilities
will cover such improve -
Storm Drains
ments as sewer 1 i ft
Streets
stations which, in the
past, required a special
agreement.
Nb4m l
Water - 8"
Water 8"
The concept "oversize"
size
Sewer - 10"
Sewer 10"
streets was included in
without
Storm 18"
the Development Impact
reimbursement
Street 68 ft. R/W
Mitigation Fee study, but
not explicitly included
in the ordinance.
costs
Construction costs
A 11 construction
eligible
except services
costs plus services
for
for oversize,
as appropriate
reimbursement
difference i n
materials only
10%for engineering
Same
and administration
Appropriate City fees,
i.e. engineering,
inspection,
admin istrative
charges, and easement
acquisition
Interest
Specifically
Reimbursement
State law requires "an
not allowed
amount indexed
amount attributable to
to Engineering
interest". Index is
News Record
same as Development
Construction Cost
Impact Fee Ordinance
Index
Term
10 years,
15 years,
afterwards payments
afterwards payments
retai-ed by City
placed in the Impact
Mitigation Fund(s)
Basis of
Per front foot
As appropriate per
Proposal allows
charge
parcel benefitted
flexibility in
apportioning costs
City Charge
2% of each
Separate charge to
Draft resolution
reimbursement
prepare agreement
recommends 10/cof
collected,
plus collection
construction cost with
with $35.00
charge, a17 set
$500 minimum and $60
mininnum for
per separate
for each collection
water
resolution
CREIM8UR/TXTW.0L (CO.COM) 'eptember 26, 1991
°F-$ CITY OF LOD1
CARNEGIE FORUM
305 West Pine Street, Lodi
Nf"OE OF PUBLIC HEARING
Date: October 16, 19911
Time: 7:30 p.m.
For information regarding this Public Hearing
Please Contact:
Alice M. Reimche
City Clerk
Telephone: 333-6702
NOTICE OF PUBLIC HEARING
October 16, 1991
NOTICE IS HEREBY GIVEN that on Wednesday, at the hour of 7:30 p.m., or as
soon thereafter as the matter may be heard, the City Council will conduct a
public hearing to consider the following matter:
a) Proposed Publ i c Improvement Reimbursement Ordinance
All interested persons are invited to present their views and comments on this
matter. Written statements may be filed with the City Clerk at any time prior
to the hearing scheduled herein, and ora! statements may be made at said
hearing.
ifyou challenge the subject matter in court, you may be limited to raising only
those issues you or someone else raised at the Public Hearing described in
this notice or in written correspondence delivered to the City Clerk, 221 West
Pine Street, at or prior to the Public Hearing.
By Order Of the Lodi City Council:
Alice M. Reimche
City Clerk
Dated: October 2, 1991
Approved arJ
s_ toform:
. . k
Bob att
City Attorney