16-1671 Updates to Title 8 Regarding Beneficiary Reimbursement AgreementsCITY OF MERIDIAN ORDINANCE NO. l u i ui l
BY THE CITY COUNCIL: BIRD, BORTON, CAVENER,
MILAM, PALMER, LITTLE ROBERTS
AN ORDINANCE AMENDING MERIDIAN CITY CODE SECTION 8-6-5, REGARDING
REIMBURSEMENT AGREEMENTS FOR INFRASTRUCTURE ENHANCEMENTS;
AMENDING MERIDIAN CITY CODE SECTION 8-6-5(B) TO ADD A DEFINITION OF
EQUIVALENT RESIDENTIAL UNIT; AMENDING MERIDIAN CITY CODE SECTION
8-6-5(C)(7)(c), REGARDING CALCULATION OF BENEFICIARY REIMBURSEMENT
AMOUNT BY EQUIVALENT RESIDENTIAL UNIT; AMENDING MERIDIAN CITY
CODE SECTION 8-6-5(D)(2), REGARDING TIMING OF COLLECTION OF
BENFICIARY REIMBURSEMENT AMOUNTS; ADOPTING A SAVINGS CLAUSE; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, reimbursement agreements for infrastructure enhancements currently
contemplate reimbursement on a per -acre basis and, following consultation with the development
community, the City Council of the City of Meridian finds that another equitable method of
reimbursement for certain sanitary sewer infrastructure enhancements is on a per Equivalent
Residential Unit (" BRU") basis; and
WHEREAS, amending provisions of the reimbursement agreement ordinance regarding
collection of beneficiary reimbursement amounts will provide enhanced clarity in the
administration of such agreements; and
WHEREAS, for these reasons, the Mayor and City Council find that it is in the best
interest of the health, safety, and welfare of the people of Meridian to implement the following
amendments to Meridian City Code;
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF
THE CITY OF MERIDIAN, IDAHO:
Section 1. That Title 8, Chapter 6, Section 5 of the Meridian City Code shall be amended as
follows:
8-6-5: REIMBURSEMENT AGREEMENT FOR INFRASTRUCTURE ENHANCEMENT:
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.
TITLE 8, CHAPTER 6, SECTION 5 — AMENDMENT PAGE 1 of 8
3. To clarify that all infrastructure installed pursuant to the procedure set forth in this section
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 ensure 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 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 an RAIE and/or the provisions of this
section.
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.
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 or Equivalent Residential Units within the service benefit
area.
7• Wier- to the ; o of the first building pe +A
3. A4 another point as de4ennined by the e4y.
CITY AND CITY COUNCIL: The city of Meridian and the duly sworn city council of the city of
Meridian.
DEVELOPER: A person or entity that engages in development.
DEVELOPMENT: Any aspect of improving, constructing, subdividing, and/or investing in land
capacity and infrastructure for the purpose of growing residential, commercial, industrial, or other
community enhancement opportunities.
DIRECTOR: The director of the city of Meridian public works department, and/or his or her
designee.
TITLE 8, CHAPTER 6, SECTION 5 —AMENDMENT PAGE 2 of 8
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.
EQUIVALENT RESIDENTIAL UNIT ("BRU"): The service to a typical residential house on an
individual lot that is occupied by an average single-family dwellingis s designated as one equivalent
residential unit or "ERU".
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 may be 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.
INCENTIVE FUNDS: Funds allocated by the city for use to provide incentive for directing growth
to identified priority areas.
INFRASTRUCTURE: A sewer and/or water main and all associated components thereof.
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 an RAIE
and/or the provisions of this section.
INFRASTRUCTURE MASTER PLAN: The plan for overall citywide sewer and water
infrastructure installation as approved by the director and the city council.
REIMBURSEMENT AGREEMENT FOR INFRASTRUCTURE ENHANCEMENTS (RAIE): 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
section, the infrastructure master plan, and the particular infrastructure needs of the development
and its service benefit area.
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 section. The service benefit area shall not include the developer's
own property.
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
TITLE 8, CHAPTER 6, SECTION 5 — AMENDMENT PAGE 3 of 8
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 may be feasible and in the best interest of
the city.
3. Upon a determination by the city that it may be 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.
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 section 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.
TITLE 8, CHAPTER 6, SECTION 5 —AMENDMENT PAGE 4 of 8
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 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 or equivalent residential unit beneficiary reimbursement amount, to be
calculated by dividing the eligible reimbursement amount by either the acreage or ERUs
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 charge 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 may be 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;
1. A condition that the parties must renegotiate a final agreement that will contain all final
costs of construction;
in. That the agreement shall be recorded as a notice against the property of the developer
and the benefited 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.
TITLE 8, CHAPTER 6, SECTION 5 -AMENDMENT PAGE 5 Of 8
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 amounts collected from the service benefit area
when, and only when, such amounts are collected.
2. ,
shall assess the r-eimbur-seffieiA amoup against aereage developed within eaeh phase at gie time of
devel,,,.m +. The beneficiary reimbursement amount shall be collected upon development of
beneficiary parcels at one of the following_ points: Prior to signature on the final plat, Prior to the
issuance of the first building permit, or at another point as determined by the city.
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 section. 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 may be 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.
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
TITLE 8, CHAPTER 6, SECTION 5 - AMENDMENT PAGE 6 Of 8
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 an 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 an 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. That all ordinances, resolutions, orders, or parts thereof or in conflict with this
ordinance are hereby voided.
Section 3: That this Ordinance shall be in full force and effect upon passage and
publication.
r�
PASSED by the City Council of the City of Meridian, Idaho, this day of
2016.
PPROVED by the Mayor of the City of Meridian, Idaho, this day of
2016.
APPROVED:
Mayor e Weerd
ATTEST: G�ATrn itis —
G ! 'a
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By: , �t
aycee Holman, City Clerk,_
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��1 r SEAL
6� Nti�
4
TITLE 8, CHAPTER 6, SECTION 5 — AMENDMENT PAGE 7 of 8
NOTICE AND PUBLISHED SUMMARY
OF ORDINANCE PURSUANT TO I.C. § 50-901(A)
CITY OF MERIDIAN ORDINANCE NO. 16- l kol 1
AN ORDINANCE AMENDING MERIDIAN CITY CODE SECTION 8-6-5, REGARDING
REIMBURSEMENT AGREEMENTS FOR INFRASTRUCTURE ENHANCEMENTS;
AMENDING MERIDIAN CITY CODE SECTION 8-6-5(B) TO ADD A DEFINITION OF
EQUIVALENT RESIDENTIAL UNIT; AMENDING MERIDIAN CITY CODE SECTION
8-6-5(C)(7)(c), REGARDING CALCULATION OF BENEFICIARY REIMBURSEMENT
AMOUNT BY EQUIVALENT RESIDENTIAL UNIT; AMENDING MERIDIAN CITY
CODE SECTION 8-6-5(D)(2), REGARDING TIMING OF COLLECTION OF
BENFICIARY REIMBURSEMENT AMOUNTS.t�I s x sr, ;{`TG A SAVINGS CLAUSE; AND
PROVIDING AN EFFECTIVE DATE. =�o ,9
lily u1
F, IDIAN�-
City of 1VYe dia_ s IDAHO
Mayor and City Council F
�F SEf,�.
1T P.
By: Jaycee Holman, City Clerk
/30 Fq°f AeTRE P0'1'cFirst Reading: Qt a k, Co
Adopted after first reading by suspension of the Rule as allowed pursuant to
Idaho Code § 50-902: YES y NO
Second Reading:
Third Reading: �—
STATEMENT OF MERIDIAN CITY ATTORNEY AS TO
ADEQUACY OF SUMMARY OF ORDINANCE NO. 16- k koq- I
The undersigned, William L.M.Nary, City Attorney of the City of Meridian, Idaho,hereby
certifies that he is the legal advisor of the City and has reviewed a copy of the attached Ordinance
no. 16- of the City of Meridian, Idaho, and has found the same to be true and complete
and provides adequate notice to the public pursuant to Idaho Code § 50-901A(3).
DATED this day of OA`' , 2016.
I1. . t/
William. L.M.Nary
City Attorney
TITLE 8,CHAPTER 6,SECTION 5-AMENDMENT PAGE 8 of 8