14.04.285 Water and sewer reimbursement contracts

14.04.285 Water and sewer reimbursement contracts.

A. Purpose. The purpose of this section is to implement the authority for water and sewer reimbursement contracts granted to municipalities under the most current version of Chapter 35.91 RCW, the Municipal Water and Sewer Facilities Act. This section shall be interpreted in a manner that is consistent with the purposes and provisions of the most current version of Chapter 35.91 RCW, the Municipal Water and Sewer Facilities Act.

B. Delegation of Authority. The city council of the city of Vancouver, as the governing body of the city of Vancouver, hereby delegates its authority to enter into and administer water and sewer reimbursement contracts under Chapter 35.91 RCW to the Vancouver city manager or designee. This authority shall include the ability to establish policies and procedures, including setting fees that are reasonable and proportionate to the total expenses incurred by the city in complying with this section.

C. General Description of Water and Sewer Reimbursement Contracts. Under the conditions and provisions set forth in this section, the city will enter into a water and/or sewer reimbursement contract with the owner of real estate for the construction or improvement of water or sewer facilities that the owner elects to install solely at the owner’s expense. The contract will provide for the pro rata reimbursement to the owner or the owner’s assigns for a period of 20 years from latecomer fees received by the city from property owners who subsequently connect to or use the water or sewer facilities, but who did not contribute to the original cost of the facilities.

D. Conditions Required for Entering Into Contract. The city must enter into a water or sewer reimbursement contract when all of the following conditions are met:

a. The owner must submit a request for a contract to the city prior to approval of the water or sewer facility for final acceptance by the city.

b. The water or sewer facilities subject to a contract under this section must be in locations where the city’s ordinances require the facilities to be improved or constructed as a prerequisite to further property development.

c. Water or sewer facilities improved or constructed in accordance with this section must be located within the city’s corporate limits or within 10 miles outside of the city’s corporate limits.

d. The contract shall be filed and recorded by the city with the Clark County auditor. The provisions of the contract may not be effective as to any owner of real estate not a party thereto unless the contract has been recorded in the office of the Clark County auditor prior to the time the owner taps into or connects to the water or sewer facilities.

e. The requirement for the city to contract with an owner of real estate for the construction or improvement of water or sewer facilities under this section is only applicable if the facilities are consistent with all applicable comprehensive plans and development regulations of the city. Determination of such consistency will be made by the city community and economic development department during the development review process.

2. Conditions Related to Water or Sewer Facilities. In order to be eligible for a water or sewer reimbursement contract under this section, the water or sewer facility must connect to the city system. Connection of water and sewer facilities to the city system must be conditioned upon compliance with all of the following:

a. Compliance with all requirements of VMC 14.04.280, procedure for extending mains, and VMC 14.08.040, conditions for permit issuance;

b. Construction of the water or sewer facility according to plans and specifications approved by the city;

c. Inspection and approval of the water or sewer facility by the city;

d. Transfer to the city of the water or sewer facility, without cost to the municipality, upon acceptance by the municipality of the water or sewer facility;

e. Full compliance with the owner’s obligations under the contract and with the municipality’s rules and regulations;

f. Provision of sufficient security as required by the city to ensure completion of the water or sewer facility and other performance under the contract;

g. Payment by the owner to the municipality of all of the city’s costs associated with the water or sewer facility including, but not limited to, engineering, legal, and administrative costs; and

h. Verification by the owner, and approval by the city, of all contracts and costs related to the water or sewer facility, as follows: Within 120 days of the completion of a water or sewer facility, the owners of the real estate must submit the total cost of the water or sewer facility to the city. This information must be used by the city as the basis for determining reimbursements by future users who benefit from the water or sewer facility, but who did not contribute to the original cost of the water or sewer facility.

E. Contract Requirements. A standard form of water or sewer reimbursement contract will be provided by the city to the owner, containing such contract provisions as required by the city. The contract shall be filed and recorded by the city with the Clark County auditor. The contract shall include, at a minimum, the following mandatory provisions.

1. The contract will provide for the pro rata reimbursement to the owner or the owner’s assigns.

2. The contract will be in effect for 20 years from the date of its filing for recording by the city.

3. The reimbursements must be received by the city within the period of time that the contract is effective.

4. The contract will set forth the reimbursement obligation as calculated by the city for each affected parcel for a portion of the costs of the water or sewer facilities improved or constructed in accordance with the contract. The amount of the total reimbursement obligation under the contract is limited to the dollar amount verified and approved as costs related to the water or sewer facility.

5. The reimbursements will be paid from latecomer fees received by the city from property owners who subsequently connect to or use the water or sewer facilities, but who did not contribute to the original cost of the facilities. All latecomer fees received by the city within the period of time that the contract is effective shall be paid out by the city under the terms of its contract within 60 days after receipt thereof.

6. The contract will include a provision requiring that every two years from the date the contract is executed a property owner entitled to reimbursement under this section provide the city with information regarding the current contact name, address, and telephone number of the person, company, or partnership that originally entered into the contract. If the property owner fails to comply with the notification requirements of this subsection within 60 days of the specified time, then the city may collect any reimbursement funds owed to the property owner under the contract. The funds collected under this subsection must be deposited in the capital fund of the city.

F. Payment of Reimbursement Obligation a Condition of Facility Use. No person shall be granted a permit or be authorized to tap into or use any such water or sewer facility without first paying to the city, in addition to any and all other costs and charges made or assessed for such tap or connection, or for the water lines or sewers constructed in connection therewith, the fair pro rata charge above referred to, computed under such contract for the parcel of land.

G. Nonliability of City. Nothing in this section creates a private right of action for damages against the city for failing to comply with the requirements of this section. The city, its officials, employees, or agents may not be held liable for failure to collect a latecomer fee unless the failure was willful or intentional. Failure of the city to comply with the requirements of this section does not relieve the city of any future requirement to comply with this section.

H. Separate Obligation for Additional Charges. Nothing in this section prevents the city from collecting amounts for services or infrastructure that are additional expenditures not subject to the ordinance, contract, or agreement, nor does it prevent the collection of fees that are reasonable and proportionate to the total expenses incurred by the city in complying with this section. (Ord. M-4359 § 1, 2021; Ord. M-4082 § 6, 2014)