Ord 158ORDINANCE NO. 158
AN ORDINANCE OF THE CITY OF POWAY, CAr.TFORNIA
ESTABLISHING CHAPTER 13.24 CF TITLE 13 OF
THE POWAY MUNICIPAL CODE
ESTABLISHING REIMBURS~I~ENr PR0CEDU~ FOR PERMANENT IMPR~S
THE CITY COUNCIL OF THE CITY OF POWAY DOES ORDAIN THAT there is added to the
Poway Municipal code Chapter 13.24 as follows:
Section 13.24.010: Policy
The City Council does hereby find and determine that where property owner(s)
desire or are required to extend or develop permanent improvements that benefit
other properties not participating in the cost of the improv~nents, the owner(s)
may be eligible to enter into a reimbursement agreement as provided in this
Chapter. This Chapter shall not be applicable to mandatory reimbursement for
improvements of supplemental size, capacity, number or length as required by
Goverr~nent Code Section 66486.
Section 13.24.020: Definitions
A. Administrative Cost - m~ns expenses and services provided by the City
in the management of the reimbursement agreements.
B. Agreement -means an agreement to reimburse property owner(s) for deve-
lol~ent or extension of permanent improvements that benefit other proper-
ties.
C. Benefit Area - means the area of benefit approved by the City Engineer
that would be assessed for the cost of the permanent improvement.
D. City -me~___ns the City of Pow~y.
E. Council -means the Mayor and City Council of the City of Poway.
F. Engineering Re~ort - the reimbursement report prepared by a State
licensed Civil Engineer outlining the benefited area and proposed reimburse-
ment payments.
G. Estimated Construction Cost - means the estimated cost of construction
as outlined in the engineering report and approved by the City Engineer.
H. Public Im~rove~ents - means City drainage, sewer and water systems and
public and private streets constructed to City standards.
I. Reimbursement Payment - means the payment to the property owner(s) who
paid for the initial construction of the permanent improvement.
J. Trust Fund - an account established for the deposit of the reimbursement
funds during the life of the reimbursement agrc~---~e, nt.
Ordinance No. 158
Page 2
Section 13.24.030: Pre-Construction Requir~nents
The owner(s) shall provide to the City Engineer a completed reimbursement
agr~nt. The cc~apleted agrc~--nent sb~ll be submitted at the same time as the
standard agreement and bonding for the construction of the permanent improve-
ments along with a deposit to cover the estimated City administrative costs to
review, process and approve the agreement.
Section 13.24.040: Form and Content of A~re~ment
The form and content of the reimbursement agrc~ent sb~ll be prepared to the
satisfaction of the City Engineer and City Attorney. The agre~nent must be pre-
pared with the assistance of a State of California licensed civil engineer and
contain the following:
A. A legal description of all benefiting properties including the owner's
property.
A detailed plat drawn at an engineering scale on legal size
papershowing the precise locations of all irNprovements and complete
dimensions (including frontage) of all benefiting property.
A reimburs~nent schedule to include a list of all benefiting properties
with current Tax Assessor's parcel number, owner's name, property's
street address, acreage of benefiting parcels and a benefit charge.
The amount of the benefit charge assigned to each benefiting parcel
shall be subject to the approval of the City Council. The benefit
charge assigned to each parcel shall bear a reasonable relationship to
the benefit conferred upon that parcel by the i~provements and shall
bear interest at the rate of five percent (5%) per annum, compounded
annually.
D. A detailed estimated cost of the design and construction of the per-
manent improvement.
Terms, conditions, and covenants of reimbursement and a trust agrc~--ment
consistent with the requirements of this Chapter.
Section 13.24.050: Notice and Hearing
Upon receipt of the agreement proposed by the owner(s), the same shall be
referred to the City Engineer, together with a preliminary estimate of the total
cost of such improv~nents. Upon receipt of the application, the City Engineer
will review and recc~end approval, disapproval, or modification thereof. The
proposed area of benefit shall include all parcels of land, or parts thereof,
within the City, which may be conveniently served by the proposed improvenent
Ordinance No. 158
Page 3
extension or development. Not less than ten (10) days prior to the hearing the
city Clerk shall notify the owner, or owners, of the land within the benefitted
area, of a public hearing to be conducted by the City Council of the City of
Poway on the question of the feasibility and the necessity for the construction
of the subject i~prov~ments, and the approval, conditional approval, or denial
of the reimbursement agrc~--~nt. The property owner shall provide address labels
for all affected properties and shall pay all fees necessary for notice of the
hearing at which the repayment agreement is considered.
Section 13.24.060: Decision of City Council
After the hearing provided above, the City Council shall determine in its sole
judgement and discretion whether or not the construction of said improvements
would be in the best interest of the City and whether the proposed reimbursement
agreement shall be approved, conditionally approved, or denied. In any case the
CityCouncilwill have the final determination as to the amount tobereimbursed
through each agrc~---~e, nt and the allocation thereof amongst the benefiting
parcels.
Section 13.24.070: Pa~T~ent for Reimbursement
The approved Agr~ent shall provide that the City of Po~ay shall agree for a
period of ten (10) years from the date of the agreement, to reimburse to
applicant the following sum~:
The amount received by the City as a benefit charge, if any, which is
collected by the City frc~ owners of benefiting parcels for the privi-
lege of using such improvements, less the administrative cost set forth
in 13.24.080. The benefit charge for a parcel shall be collected by
the City as a condition of approval of any develo~x~ent of the benefited
parcel, provided that imposition of such condition shall be reasonably
related to such development.
The benefit charge for each parcel of land within the benefitted area
will be determined based upon the engineer's report prepared by the
applicant engineer using standard assessment district formulas, as that
report may be approved by the City Council.
The City Council retains the right to determine, in its sole discre-
tion, both the total cost of the permanent improvement as well as the
fixing of the benefit charge for each parcel.
De
Applicant shall be entitled to receive the reimbursement provided in
this section for the period of time herein specified, or until all
payments as specified in the reimbursement agreement shall have ~n
repaid to applicant, whichever occurs first. Following full reimbur-
sement to applicant as provided herein, or upon automatic termination
of the agrc~ent at the end of ten (10) years frc~ its date, applicant
shall be entitled to no further reimbursements arising out of benefit
charges which might be charged by the City, and all payments thereafter
accruing sb~ll be and becc~ae the property of the City.
~dinance No. 158
Page 4
E. All reimbursement funds shall be deposited to a trust fund in a local
institutional depository. The right of the applicant to payments
therefrcm shall be personal and shall not run with or be assignable
with, the lands owned by the applicant.
F. Payments shall be made at such times as are convenient to the City, but
in no event, less often than annually if the City bas received any
benefit charges.
G. Payment to the applicant shall include the interest collected frcm a
benefited owner assessed against the benefit charge at a rate of five
percent (5%) cuL~ounded per year.
Section 13.24.080: ~]ministrative Cost
An administrative charge of five percent (5%) shall be assessed on all reimbur-
sements to cover administrative cost incurred by the City.
Section 13.24.090: Information
The property owner(s) applying for reimbursement shall be solely responsible for
all information ncc~ed to process the reimbursement agreement. Any errors or
inaccuracies may constitute grounds for the denial of the owner's application.
Section 13.24.110: Recordation of Agreement
This agreement will be recorded with the County Recorder following full execu-
tion of the agrc~--~nt by all parties.
Section 13.24.120: Severability
If any section, subsection, sentence, clause, or phrase of this chapter is for
any reason held to be invalid or unconstitutional, such decision shall not
affect the validity of the remaining portions. The City Council of the City of
Poway hereby declares that it would have passed this chapter and each section,
subsection, clause, and phrase thereof irrespective of the fact that anyone or
more sections, subsections, sentences, clauses or phrases be declared invalid or
unconstitutional, and would have passed and adopted the same even though any
parts, sections, subsections, sentences, clauses, or phrases that may be held
invalidhadbccnc~ittedtherefrom.
This ordinance shall take effect and be in force thirty (30) days after the date
of its passage; and before the expiration of fifteen (15) days after its
passage, it sb~ll be published once with the names and members voting for and
against the same in the Poway News Chieftain, a newspaper of general circulation
published in the City of Poway.
Ordinance No. 158
Page 5
Introduced and first read at a regular .w~cting of the City Council of the
City of Poway held the 19th day of February, 1985, and thereafter PASSED AhD
ADOPTED at a regular meeting of said City Council held the 26th day of February,
1985, by the following roll call vote:
AYES: COUNCILMEM~.RS:
Marjo~ K. City Clerk
. Wahlsten,
KRUSE, ORAVEC, SHEPARDSON, TARZY, ~ERY
NONE