Cathedral City Municipal Code Ch. 15.20 Reimbursement Process for the Construction of Sewer Improvements

The city council finds and determines that where developers install sewer improvements that subsequently benefit other properties located between the sewer improvements and the point of connection to an existing main, the developer shall be eligible to enter into a reimbursement agreement with the city as provided in this chapter.

(Ord. 626 § 1, 2006)

As used in this chapter:

"Benefit area"

means the total area comprised of those real properties located between the sewer improvements and the connection point to an existing main that benefit from the construction of the sewer improvements as approved by the city engineer.

"Benefiting parcel or property"

means a parcel of real property within the benefit area that is subject to Municipal Code Chapter 8.50, and benefits from the construction of the sewer improvements.

"City"

means the city of Cathedral City.

"City council"

means the mayor and city council of the city of Cathedral City.

"Construction costs"

means the costs of constructing and developing the sewer improvements as determined by an engineering report approved by the city engineer.

"Developer"

means the person, entity, agency or property owner who pays for the cost of installation of the sewer improvements.

"Engineering report"

means the reimbursement report prepared by the city engineer identifying the benefit area, benefiting parcels, and proposed reimbursement payments.

"Existing main"

means the existing public sewer system, including, without limitation, main, trunk and/or collector lines, to which the sewer improvements are connected pursuant to Municipal Code Chapter 8.50.

"Reimbursement agreement"

means an agreement to reimburse a developer for a portion of the cost of developing sewer improvements benefiting parcels within the benefit area.

"Reimbursement payment"

means the payment due and payable from the owner of a benefiting property to the developer for that portion of the sewer improvements construction costs allocated to the benefiting property by the city engineer.

"Sewer improvements"

means the trunk or collector lines, manholes, clean-outs and appurtenances constructed by the developer pursuant to Municipal Code Chapter 8.50 and other applicable city and any agency standards and requirements.

"Trust fund"

means an account established for the deposit and disbursement of the reimbursement payments due to the developer during the term of the reimbursement agreement.

(Ord. 626 § 1, 2006)

A. Where a developer constructs sewer improvements that can service others' properties located between the sewer improvements and the connection point to an existing main, the developer may apply to the city's engineering department to enter into a reimbursement agreement with the city to recover a portion of the construction costs of developing the sewer improvements from benefiting properties within the benefit area as provided in this chapter.

B. To apply to the city for a reimbursement agreement, a developer shall submit a written application for a reimbursement agreement to the city's engineering department on a form provided by the city. The submittal of an application for a reimbursement agreement shall be accompanied by an application for an encroachment permit for work in the public right-of-way, if applicable, and a nonrefundable application fee in an amount determined by the city to pay the administrative costs of processing the application and the reimbursement agreement request.

C. The content of the application for a reimbursement agreement shall contain at least the following information:

1. The legal description, tax assessor's parcel number, property owner's name, and property's street address for all of the benefiting properties in the benefit area; and

2. A map showing all properties in the benefited area, including location of the existing main and proposed or completed sewer improvements; and

3. A detailed statement of the construction costs, including, but not limited to, the costs of design, engineering, and development of the sewer improvements. The statement of the construction costs shall be accompanied by copies of all invoices, payment vouchers and other documentation as reasonably necessary to verify the actual total construction costs, including related engineering and carrying costs for which reimbursement is sought.

(Ord. 626 § 1, 2006)

A. Upon the city engineer's receipt of a properly completed application and nonrefundable application fee, the city engineer will review the construction costs, determine the benefit area, and determine the amount of the reimbursable construction costs assignable to each benefiting parcel. The city engineer shall prepare an engineering report to the city council setting forth benefit determinations and a recommendation for approval or disapproval of the application for the reimbursement agreement.

B. The city shall schedule a public hearing on the developer's application for a reimbursement agreement within forty-five calendar days of the date of the city's receipt of a properly completed application and payment of application fee. At least twenty calendar days prior to the date of the scheduled public hearing, the city shall notify the owner(s) and residents of the properties located within the benefit area determined to be benefiting parcels, of the date and time of the public hearing. The notice shall include all of the following:

1. Notice that the city council will be determining whether to approve, deny or conditionally approve the reimbursement agreement;

2. The addresses of any and all benefiting properties; and

3. The proposed assessment for each benefiting property.

(Ord. 626 § 1, 2006)

After the public hearing conducted pursuant to this chapter, the city council shall consider and determine whether to approve, conditionally approve, or deny the application for a reimbursement agreement and to enter into the proposed reimbursement agreement with the developer. The city council shall make the final determination as to the allocation of construction costs among the benefiting properties and the amount of the reimbursement payments due the developer under the reimbursement agreement.

(Ord. 626 § 1, 2006)

A. The reimbursement agreement shall be prepared to the satisfaction of the city engineer and the city attorney and shall contain the following:

1. The legal description of all benefiting properties in the benefit area, including the developer's property, if applicable; and

2. A map showing all properties in the benefit area, including the locations of the sewer improvements and existing main; and

3. A reimbursement schedule, prepared by the city engineer, to include a list of all properties in the benefit area and the benefiting parcels. This list shall include the current tax assessor's parcel number, property owner's name, address of benefiting parcels, and the reimbursement payment due and payable by each such benefiting parcel. The reimbursement payment assigned to each benefiting parcel shall bear a reasonable relationship to the benefit conferred upon that particular benefiting parcel as determined by the city engineer and approved by the city council; and

4. A detailed statement of the costs of the sewer improvements, including, but not limited to, the design and construction costs and all requisite fees; and

5. A provision stating that the city shall impose on each benefiting parcel as a condition of approval for sewer connection the reimbursement payment attributable to the benefiting parcel as approved by the city; and

6. A provision stating that reimbursement to the developer shall be made only from the reimbursement payments actually collected by the city under the reimbursement agreement from the benefiting properties, and further provided that, the developer shall not be entitled to the reimbursement payment collected by the city for any particular benefiting parcel in the event the city determines that the developer has not paid the sewer improvements construction costs in full, or a mechanics lien, judgment or other similar lien has been placed upon the benefiting parcel due to the developer's failure to pay any costs associated with developing the sewer improvements, until such time as such lien or charge has been removed from the benefiting property or the city has determined that the sewer improvements construction costs have been paid by the developer in full, as applicable The developer shall be entitled to reimbursement as provided in this chapter for a ten-year period ending on the tenth anniversary of the effective date of the reimbursement agreement, unless a different time period is specifically approved by the city council, regardless of any amounts which remain due and payable to the developer pursuant to the reimbursement agreement; and

7. A provision stating that the city shall not be liable to the developer or its assignees, for any failure of the city to collect any reimbursement payments due under the reimbursement agreement to the developer; and

8. An indemnification and hold harmless provision whereby the developer shall indemnify and hold harmless the city and its officials, officers, agents, employees, and contractors from any dispute, claim, action or damage arising out of the subject matter and terms of the reimbursement agreement or actions related thereto; and

9. A provision stating that the city will agree, for a period of ten years from the effective date of the reimbursement agreement, or such different time as approved by the city council, to collect on behalf of and remit to the developer funds subject to the provisions set forth in Section 15.20.70.

(Ord. 626 § 1, 2006)

A. The city will use reasonable efforts to collect the reimbursement payments due by benefiting properties as a condition of approval of any development of a benefiting property or at such other times as sewer connection is required pursuant to Chapter 8.50; provided however, that imposition of such condition shall be reasonably related to such development.

B. Following full reimbursement to the developer as provided in this chapter, or upon the termination of the reimbursement agreement, the developer shall no longer be entitled to reimbursements pursuant to the reimbursement agreement. At such time, any further reimbursement payments collected by the city from benefiting parcels, if any, shall, at once become the property of the city.

C. All reimbursement payments shall be deposited into a trust fund maintained by the city. The developer shall not be entitled to any interest on such funds held by the city from time to time.

D. Trust fund payments shall be made to the developer at such times as are convenient to the city, but in no event less often than annually if the city has received any reimbursement payments during the preceding twelve-month period.

(Ord. 626 § 1, 2006)

Reimbursement agreements approved by the city council shall be recorded against the benefiting parcels in the official records of the Riverside County recorder's office within ten business days following the execution of the reimbursement agreement by all parties. It shall be the developer's responsibility to secure all required reimbursement agreement signatures.

(Ord. 626 § 1, 2006)