HomeMy WebLinkAbout09-1404 Reimbursement Code 3rd ReadingCITY OF MERIDIAN ORDINANCE NO. Q -
BY THE CITY COUNCIL: BIRD, HOAGLUN, ROUNTREE, ZAREMBA
AN ORDINANCE OF THE CITY OF MERIDIAN, REPEALING TITLE 9,
CHAPTER 1, SECTION 13 AND TITLE 9, CHAPTER 4, SECTION 19 OF THE
MERIDIAN CITY CODE, RELATING TO COOPERATIVE AND/OR
REIMBURSEMENT AGREEMENTS; ENACTING A NEW SECTION, TITLE 8,
CHAPTER 6, SECTION 2, RELATING TO REIMBURSEMENT AGREEMENTS
FOR INFRASTRUCTURE ENHANCEMENTS; AND PROVIDNG AN
EFFECTIVE DATE.
WHEREAS, the City Council of the City of Meridian finds that as to particular areas
within the City, it is in the best interest of the City of Meridian to encourage and
incentivize the installation of public works infrastructure that will serve future growth as
well as the instant development;
WHEREAS the establishment of eligibility criteria and standards under which the City
and/or a private developer may enter into and implement an agreement to reimburse such
developer for the enhanced portion of the infrastructure installed and will standardize
such agreements and facilitate the smooth transition of such infrastructure to City
ownership; and
WHEREAS the calculation, recording, and recoupment of value inuring to developments
that later utilize enhanced infrastructure will clarify the respective roles of beneficiary
developments and the City in the context of infrastructure planning;
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY
COUNCIL OF THE CITY OF MERIDIAN, IDAHO:
Section 1. That Title 9, Chapter 1, Section 13, of the Meridian City Code is
hereby repealed:
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Section 2. That Title 9, Chapter 4, Section 19, of the Meridian City Code is
hereby repealed:
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Section 3. That a new section, Title 8, Chapter 6, Section 2, is hereby added to
read as follows:
8-6-2 REIMBURSEMENT AGREEMENT FOR INFRASTRUCTURE
ENIIANCEMENT
A. Purpose:
1. To establish a procedure to reimburse developers for the differential costs
associated with the installation of sanitary sewer and/or water infrastructure above
and beyond that which is necessary to provide service to the developer's own
project.
2. To provide an incentive to developers to install sanitary sewer and/or water
infrastructure with the capacity to serve future growth as well as the developer's
own project in growth priority areas.
3. To clarify that all infrastructure installed pursuant to the procedure set forth in this
chapter shall become part of the City of Meridian's Sanitary Sewer and/or Water
System.
4. To provide reasonable incentives to direct growth for future development.
5. To insure that new infrastructure is provided at no cost to the City, upon the
City's acceptance of such infrastructure, rather than upon full reimbursement to
the developer installing such infrastructure.
6. To allow for a Reimbursement Agreement for Infrastructure Enhancement
(RAIE) only for infrastructure enhancements constructed in conjunction with
REIMBURSEMENT AGREEMENTS FOR INFRASTRUCTURE ENHANCEMENTS ORDINANCE PAGE 7 OF 15
developments for which the preliminary plat has been approved no earlier than
March 1, 2007 or at the request of the Director for projects that would not require
a preliminary plat.
B. Definitions
Beneficiary
A person or entity that is or will be the recipient of some or all proceeds or
benefits collected, distributed, and/or realized pursuant to a RAIE and/or the
provisions of this chapter.
2. Beneficiary Parcel
A parcel of land upon which is situated development that utilizes or could utilize
any utilities or infrastructure constructed by the City or by a private individual,
where no owner or developer thereof has directly contributed to the cost of
constructing such utilities or infrastructure.
3. Beneficiary Reimbursement Amount
The amount collected from beneficiaries of infrastructure enhancements installed
pursuant to an RAIE upon development of beneficiary parcels. The beneficiary
reimbursement fee shall be determined by dividing the total eligible
reimbursement amount by the acreage within the service benefit area. The
beneficiary reimbursement amount shall be collected upon development of
beneficiary parcels at one of the following points:
a) prior to signature on the final plat;
b) prior to the issuance of the first building permit; or
c) at another point as determined by the City.
4. City and City Council
The City of Meridian and the duly sworn City Council of the City of Meridian
5. Developer
A person or entity that engages in development.
6. Development
Any aspect of improving, constructing, subdividing, and/or investing inland
capacity and infrastructure for the purpose of growing residential, commercial,
industrial, or other community enhancement opportunities.
REIMBURSEMENT AGREEMENTS FOR INFRASTRUCTURE ENHANCEMENTS ORDINANCE PAGE 8 OF 15
7. Eligible Reimbursement Amount
The actual differential cost between an infrastructure enhancement and
infrastructure necessary to provide service to the developer's own project. The
total eligible reimbursement amount shall include only reasonable engineering,
surveying, construction staking, license agreements, easements, testing, and
project management.
Director
The Director of the City of Meridian Public Works Department, and/or his or her
designee.
9. Growth Priority Areas
The City of Meridian Public Works Department, in conjunction with the Meridian
Planning Department, shall develop a map indicating growth priority areas within
the Sewer Master Planning areas. The growth priority area map, once approved
by the Meridian City Council, shall be used to determine the percentage of
eligible reimbursement amount that a particular parcel within the master planning
area maybe eligible to receive. In the event that a development spans across
more than one growth priority area, the designation for the greatest portion of the
development shall be used for the entire development.
10. Incentive Funds
Funds allocated by the City for use to provide incentive for directing growth to
identified priority areas.
11. Infrastructure
A sewer and/or water main and all associated components thereof.
12. Infrastructure Enhancement
Infrastructure above and beyond that which is necessary to provide service to the
developer's own project, installed by a developer pursuant to a RAIE and/or the
provisions of this chapter.
13. Infrastructure Master Plan
The plan for overall citywide sewer and water infrastructure installation as
approved by the Director and the City Council.
14. Reimbursement Agreement for Infrastructure Enhancements (RAIE)
REIMBURSEMENT AGREEMENTS FOR INFRASTRUCTURE ENHANCEMENTS ORDINANCE PAGE 9 OF 15
A written agreement voluntarily entered into between the City and the developer
installing an infrastructure enhancement as a component of a specified
development, the terms of which agreement shall be mutually negotiated and
agreed upon in compliance with the provisions of this chapter, the Infrastructure
Master Plan, and the particular infrastructure needs of the development and its
service benefit area.
15. Service Benefit Area
The land area and all development thereon that, in the foreseeable future, will be
served by an infrastructure enhancement installed by the developer pursuant to an
RAIE and the provisions of this chapter. The service benefit area shall not
include the developer's own property.
16. User
Any person or entity using or requesting the use of infrastructure.
C. Procedure:
1. Only infrastructure enhancements constructed in conjunction with developments for
which the preliminary plat has been approved no earlier than March 1, 2007 or at the
request of the Director for projects that would not require a preliminary plat shall be
eligible for reimbursement under an RAIE.
2. The City or a developer may request or propose an RAIE. Neither the City nor any
developer shall be required to enter into an RAIE. The City Council shall consider
the recommendation of the Director in determining whether or not an RAIE maybe
feasible and in the best interest of the City.
3. Upon a determination by the City that it maybe feasible and in the best interest of the
City to enter into an RAIE, the City shall invite the developer to submit a written
reimbursement proposal.
4. The developer shall submit such written reimbursement proposal to the Director,
which written request shall include:
a. The estimated costs of engineering, surveying, construction staking,
license agreements, easements, testing, project management, and
construction of the infrastructure necessary to provide service to the
developer's own project. This estimate shall be based on the construction
of infrastructure for the developer's property as a stand-alone project that
would, in all respects, meet the standards of the Idaho Standards for Public
Works Construction (ISPWC), City of Meridian Supplemental
Specifications and Drawings to the Idaho Standards for Public Works
Construction, and the City of Meridian Infrastructure Master Plan.
REIMBURSEMENT AGREEMENTS FOR INFRASTRUCTURE ENHANCEMENTS ORDINANCE PAGE 10 OF 15
b. The estimated costs of engineering, surveying, construction staking,
license agreements, easements, testing, and project management, and
construction of the infrastructure for the service benefit area per the
infrastructure master plans.
c. A detailed reimbursement proposal, including certification of a registered
professional engineer regarding the sizing and capacity requirements for
the developer's own project, the cost of design, construction, and
installation thereof, and certification of a registered professional engineer
regarding the sizing and capacity requirements for the above-and-beyond
infrastructure as required by the City of Meridian Public Works
Infrastructure Master Plans.
5. Upon receipt of the developer's written reimbursement proposal, the Director
shall have a staff report prepared to include the following:
a. Whether the proposal meets all provisions of this chapter and/or other
applicable standards and laws, including whether the proposed new
infrastructure and utilities serving development in the City of Meridian
can be planned and installed so as to comply with the minimum main size,
depth, and general location as specified in the Idaho Standards for Public
Works Construction (ISPWC); the City of Meridian Supplemental
Specifications and Drawings to the Idaho Standards for Public Works
Construction; and the City of Meridian Infrastructure Master Plan.
b. Determine the service benefit area.
c. Whether the project, as proposed, is eligible for reimbursement.
d. A preliminary determination of eligibility for an RAIE.
e. Whether the Director recommends City Council approval, modification, or
denial of such reimbursement proposal.
The Director shall provide the staff report to the developer, advising that the preliminary
determination of eligibility shall not be construed as City Council approval of the
reimbursement proposal, unless and until finally approved by City Council.
6. Upon a recommendation of approval of the proposed plans, the department shall
forward the staff report and the plans to the City Clerk for review by City Council. City
Council shall preliminarily approve, deny, or require modifications to the reimbursement
proposal.
7. Upon City Council's preliminary approval of the reimbursement proposal, the
City Attorney shall, with the developer and the department, prepare an RAIE. The RAIE
REIMBURSEMENT AGREEMENTS FOR INFRASTRUCTURE ENHANCEMENTS ORDINANCE PAGE 11 OF 15
shall include all of the following terms in addition to any others as agreed to by the
parties:
a. Incorporation of the reimbursement proposal as approved by City Council;
b. The service benefit area that will be served by the project infrastructure;
c. The per-acre beneficiary reimbursement amount, to be calculated by
dividing the eligible reimbursement amount by the acreage within the service
benefit area.
d. The total beneficiary reimbursement amount to be assessed against the
beneficiaries within the service benefit area, plus a fifteen percent (15%)
administrative change to be collected by the City from such beneficiaries,
which percentage shall be based upon the cost of the infrastructure
enhancement and not on the total cost of the development project.
e. The total maximum eligible reimbursement amount, less the
administrative charge;
f. The growth priority designation of the development, including the source
of funds that will comprise the eligible reimbursement amount;
g. The term of the Agreement, which term shall not exceed ten (10) years,
unless the City is the beneficiary of the agreement, except that the RAIE may
be extended upon the recommendation of the Director, with the approval of
City Council;
h. That the RAIE will terminate when either of the following events occur,
whichever comes first:
(1) Expiration of the term of the agreement; or
(2) Upon the City's remittance to the developer of the full eligible
reimbursement amount;
i. That the RAIE maybe assigned or transferred with the express written
consent of the City Council, which consent shall not be unreasonably
withheld;
j. That the developer shall be required to indemnify and hold the city
harmless from any and all liability whatsoever until the. infrastructure has been
accepted by the City;
k. That the agreement shall be binding on the developer and his or her heirs,
assignees, transferees, agents, and executors;
REIMBURSEMENT AGREEMENTS FOR INFRASTRUCTURE ENHANCEMENTS ORDINANCE PAGE 12 OF 15
1. A condition that the parties must renegotiate a final agreement that will
contain all final costs of construction.
m. That the agreement shall be recorded as a notice against the property of
the developer and the benefitted properties; and
n. The final RAIE will be prepared with all final costs of construction that
have been submitted to the Director by the developer at completion of
construction, and shall be verified by the Director prior to the approval of the
City Council.
8. After the project is complete the final RAIE can be completed, approved, and
recorded.
9. After all inspections are complete and the construction has met all standards of
the RAIE the City shall issue a letter of acceptance of the installed infrastructure and
shall take over ownership and maintenance of the infrastructure.
D. Reimbursement:
1. Upon completion of installation of infrastructure as set forth in the RAIE, the City
shall reimburse the developer from reimbursement amount collected from the service
benefit area when, and only when, such amounts fees are collected.
2 Where phased development is planned for a property within the service benefit
area, the City shall assess the reimbursement amount against acreage developed
within each phase at the time of development.
3 Where a property outside the service benefit area benefits from the infrastructure
installed to serve the service benefit area, the owner of such property shall be
assessed the reimbursement amounts as established by the structured reimbursement
agreement, upon agreement of the City and the benefiting property owner.
4. The City of Meridian shall collect reimbursement amounts based upon this
ordinance. Twice yearly the City shall audit and process reimbursement payments on
a schedule to be determined by the City.
E. Incentivized Reimbursement for Growth Priority Areas
1. The City of Meridian Public Works Department, in conjunction with the Meridian
Planning Department, shall develop a map indicating growth priority areas within the
Sewer Master Planning areas. The growth priority area map, once approved by the
Meridian City Council, shall be used to determine the percentage of eligible
reimbursement amount that a particular parcel within the master planning area maybe
eligible to receive. In the event that a development spans across more than one
REIMBURSEMENT AGREEMENTS FOR INFRASTRUCTURE ENHANCEMENTS ORDINANCE PAGE 13 OF 15
growth priority area, the designation for the greatest portion of the development shall
be used for the entire development.
2. To incentivize development in particular areas, developers may be reimbursed as
negotiated by the parties and mutually agreed, in writing, in an RAIE, according to
the following schedule:
a. In Low Growth Priority Areas, the developer shall be entitled to
one hundred percent (100%) of the eligible reimbursement amount, which
shall be recouped from beneficiary reimbursement fees. No additional
City funds shall be contributed to reimburse the developer installing
infrastructure enhancements in a Low Growth Priority Area.
b. In Medium Growth Priority Areas, the developer shall be entitled
to one hundred percent (100%) of the eligible reimbursement amount,
which shall be recouped from beneficiary reimbursement fees, and the
parties may negotiate an additional payment of up to ten percent (10%) of
the eligible reimbursement amount, which shall be provided from City
funds.
c. In High Growth Priority Areas, the developer shall be entitled to
one hundred percent (100%) of the eligible reimbursement amount, which
shall be recouped from beneficiary reimbursement fees, and the parties
may negotiate an additional payment of up to twenty percent (20%) of the
eligible reimbursement amount, which shall be provided from City funds.
3. All City of Meridian incentive funds paid towards a RAIE shall be remitted to
developer within thirty (30) days after the completion of the project.
4. All remaining funds paid to a developer shall be from the reimbursement amount
collected from the properties located within the service benefit area.
F. Reimbursement to the City
Where the City constructs any infrastructure, regardless of whether it is master
planned or not, either on its own or in conjunction with another person or entity, the City
may prepare and record a reimbursement memorandum that shall have the same force
and effect as an RAIE so that the City shall be reimbursed by beneficiary parcels for its
actual costs of construction. The term of a RAIE of this type shall be of any length as
determined by the City Council. The Incentivized Growth Priority Area reimbursement
structure shall not apply to such memoranda.
Section 2: This Ordinance shall be in full force and effect upon approval.
REIMBURSEMENT AGREEMENTS FOR INFRASTRUCTURE EriHANCEMENTS ORDINANCE PAGE 14 OF 15
PASSED BY THE CITY COUNCIL OF THE CITY OF MERIDIAN,
IDAHO, this day of
2009.
APPROVED BY THE MAYOR OF THE CITY OF MERIDIAN, IDAHO,
this day of
2009.
MAYOR
ATTEST:
CITY CLERK
REIMBURSEMENT AGREEMENTS FOR INFRASTRUCTURE PTIHANCEMENTS ORDINANCE PAGE 15 OF 15