HomeMy WebLinkAboutOrd2022-005 - Developer Reimbursement Program Sponsored by: Bower
Introduction: February 14,2022
Public Hearing: February 28, 2022
Enactment: February 28, 2022
CITY OF SEWARD,ALASKA
ORDINANCE 2022-005
AN ORDINANCE OF THE SEWARD CITY COUNCIL, AMENDING
SEWARD CITY CODE 5.22 DEVELOPER INCENTIVE AND
REIMBURSEMENT PROGRAM TO FURTHER CLARIFY AND DEFINE
PROGRAM PROCESSES, AMENDING SECTION 14.10.030 WATER
MAIN EXTENSIONS TO EXCLUDE THE LANGUAGE IN CHAPTER 5.22,
AND ENACTING SECTION 14.15.505. — SCOPE OF ARTICLE TO
EXCLUDE THE LANGUAGE IN CHAPTER 5.22
WHEREAS,the Developer Incentive and Reimbursement Program is a valuable program
to incentivize installation of public utilities and property development within the City's
boundaries; and
WHEREAS,it is the City's desire to further clarify and define the Code language.
NOW,THEREFORE,THE CITY OF SEWARD ORDAINS that:
`" Section 1. Seward City Code Chapter 5.22 is hereby amended to read as follows: (new
language is underlined and in bold italics and deleted language is stricken):
Chapter 5.22- Developer Incentive and Reimbursement Program
5.22.010—Intent moose.
It is the intent of this chapter to permit the city,when funds are available,to reimburse a developer
for up to 50 percent of the costs of extending public utilities to his, her or its the developer's
undeveloped property in order to incentivize installation
of public utilities and property development within city boundaries.
5.22.020- Definitions.
In this chapter,unless otherwise provided,or the context otherwise requires
the following words and phrases shall have
the meaning set forth below:
Benefiting property means area or zone which will directly benefit by a specific public utility
extension.
Cost of extension means the developer's actual direct cost of constructing a public utility
extension.
Developer means a property owner person who is owns undeveloped land located within the
.
CITY OF SEWARD, ALASKA
ORDINANCE 2022-005
Program Fund means a fund created expressly to fund the reimbursement and incentive
program.
Public Improvement is defined in Section 1.5 of the Seward Charter.
Public utility is defined in Section 1.5 of the Seward Charter.
Special improvement district means an area established under Seward City Code Chapter
5.20.
Undeveloped land means tracts or parcels of land that are not part of an existing improvement
district and have no significant or substantial improvement, infrastructure, grading, or site
development related to residential, commercial, or industrial uses or outstanding building permits.
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5.22.035 General.
Upon application to the City and approval by the City Council, electric, water, and wastewater
utility services may be extended by a developer along a public right-of-way and/or easement.
The methods by which utility extensions may be accomplished are as follows:
A. Special improvement district.
1. Extensions may be completed by a private developer through the creation of a special
improvement district as described in 5.22.020.
2. Reimbursement for the utility extension shall be to the city through the special
improvement district language listed in subsections 5.22.020 and 5.22.025. .�
B. Private financing
1. Extensions may be completed by a private developer who privately finances the utility
extension under the terms of an agreement with the City.
2. The agreement with the City may provide for reimbursement to the developer for up to
50 percent of the costs of installing the utility extensions on undeveloped land.
3. A developer is not eligible for reimbursement until the extension has been completed.
5.22.045 Special improvement district.
When the determination has been made that a city utility infrastructure extension will benefit
the community through expansion of residential housing or will benefit the utility system, the
City may, at its discretion, and pursuant to Chapter 5.20 of this Code, create a special
improvement district and levy assessments against real property benefited by the improvement.
5.22.055 Special improvement district—reimbursement through partial assessment.
A. The City may compute assessments for extensions approved under this Chapter at less than
the actual cost of the improvements and may levy this partial assessment against the
benefiting properties in the special assessment district using the procedures for
apportionment and preparation of the assessment roll set forth in Chapter 5.20.
B. The partial assessment may be for fifty percent or more of the cost of acquiring, installing,
designing and/or constructing capital improvements.
CITY OF SEWARD, ALASKA
ORDINANCE 2022-005
C. The partial assessment will be a lien on the benefitting property and shall be paid to the City
when the property is sold.
5.22.065 Utility extensions by developer.
The following process shall be followed by a developer desiring to extend or expand a City utility
system:
A. Written request. The developer shall file with the City a written request to extend or expand
a City utility system.
B. Agreement. The developer is required to sign an agreement that has been approved by the
city manager and addresses the following provisions for construction of the utility extension:
I. Design and construction costs. If the proposed utility extension is approved, the
developer shall provide and pay for all design, professional engineering, labor,
materials, equipment, full-time inspection services by a professional engineer, and other
costs related to the design and construction of the requested utility extension. All plans,
specifications and construction contracts shall be subject to approval by the City and
shall comply with all applicable city standards.
2. Bond required.
a. The developer shall post performance and payment bonds to assure completion of
the project,free of all encumbrances and shall,before acceptance of the utility system
by the City, post a bond for assuring a one (1) year guarantee against defects in
workmanship or materials.
b. During the one (1) year guarantee period, the City shall notify the developer of any
defects, and the developer shall make timely corrections or repairs as needed,
provided, however, that in the case of emergency repairs, the City may make repairs
and be reimbursed by the developer.
c. Repairs made by the developer during the one (1) year guarantee period shall be
guaranteed by the developer for one (1) year from the date the repair is made.
3. As-built drawings required.
a. As-built construction drawings shall be submitted by the developer to the City within
thirty(30) days of completion of construction, and prior to acceptance of the project.
b. The as-built drawings must be in electronic format as specified by the City and shall
be verified by field survey by an Alaska-licensed professional engineer at the
developer's expense.
c. During the course of construction, City personnel are to be provided site access for
the purpose of observation and inspection.
4. Ownership.
a. Ownership of all utility lines and facilities within the easements or rights-of-way
shall become the property of the City after construction of the utility system has been
completed and the City has accepted the project.
b. The system(,) will thereafter be maintained by the City, subject to the one (1) year
bond against defects in workmanship and materials.
L.. 5. Testing.
CITY OF SEWARD, ALASKA
ORDINANCE 2022-005
a. The City shall witness the testing of any utility installation.
b. The City shall assess a fee for witnessing the testing of the utility installation on the
basis of time and materials.
c. In the event repeated tests are necessary to approve and certify the system, a fee to
witness the tests shall be charged to the developer on the basis of time and materials
for each additional test.
d. The City shall also assess a fee for any additional inspection which is done by the
City in connection with the utility system installation.
6. Marketing. The developer shall offer all lots to which utilities have been extended for
sale upon City acceptance of the utility extensions.
7. Reimbursement.
a. Subject to the prior appropriation or approval of the city council, the agreement may
contain a provision providing for reimbursement of design and construction costs up
to a specified amount not to exceed a maximum amount of fifty (50%) percent of
design and construction costs from a program fund.
b. Reimbursement shall only be included in the agreement if the utility extension is to
Undeveloped Land.
c. Reimbursement shall be conditioned on proof of compliance with all provisions of
this Chapter.
C. Expanded capacity.
1. The City may, at its discretion, require the developer to install higher capacity water or
sewer lines or facilities than are required to serve just the developer's needs.
2. If the City requires a higher capacity line or facility than is needed by the developer, the
City shall reimburse the developer for the additional costs associated with the larger line.
5.22.075 Application required.
A. In order to be eligible for consideration for reimbursement, the developer must submit the
required application prior to beginning work on any utility extension to the undeveloped
property.
B. The application must be completed in full and the filing fee paid in full.
C. The clerk will submit a notice of filing to the applicant and the city manager within ten days
of receiving the application so long as the application sections have been completed, the
application is signed and dated, and the application fee has been paid in full.
5.22.085 Application content.
The developer's application shall include the following:
A. A statement of the properties owned by the developer.
B. The total estimated cost of installation of the improvement.
C. Disclosure of any outstanding liabilities owed to any public utilities, contractors or other
persons on or regarding the property.
D. Disclosure of any violations regarding safety,health, or land use laws applying to the subject
property.
CITY OF SEWARD, ALASKA
ORDINANCE 2022-005
E. Details regarding the purpose and use of developer's property and the ways in which the use
promotes the public interest and complies with the City comprehensive plan.
F. A statement by the developer that the city council may reimburse all, none or a portion of
the pro-rated share of the improvements under Title 5 and the developer accepts the
developer's obligation to pay the pro-rated share of the assessment.
5.22.095 Approval process.
A. No more than three regularly scheduled council meetings after receiving the notice of filing
and complete application from the clerk, the city manager shall submit a written
memorandum to council, which includes a recommendation to approve or deny the
application, a recommended amount of reimbursement, if any, and a statement regarding
the reasons for granting or denying the application.
B. Along with the written memorandum,the city manager shall prepare a resolution for council
consideration. The legislation provided to council shall include:
1. The reimbursement amount;
2. The estimated project amount;and
3. Appropriation of funds.
C. Council shall adopt, change the amount of reimbursement, or deny the city manager's
recommendation by resolution.
D. Council's decision to reject or accept the recommendation shall be the final decision by the
city.
5.22.105 Completion report.
Following project completion, the developer shall submit a completion report that includes an
itemized report, with supporting documentation, of the actual direct cost of the utility extension
to the developer.
5.22.115 Reimbursement.
A. No more than two regularly scheduled council meetings after the city manager receives the
completion report from the developer, the city manager shall submit a reimbursement
request to the finance department for the amount listed in the approved resolution.
B. If the final amount of the project exceeds the amount listed in the approving legislation, the
city manager shall prepare a second piece of legislation for council consideration. The
legislation shall include:
1. The final project amount; and
2. An additional appropriation of funds.
C. Council shall adopt or deny the city manager's recommendation.
D. Council's decision to reject or accept the recommendation shall be the final decision by the
city.
CITY OF SEWARD, ALASKA
ORDINANCE 2022-005
5.22.135 Notice of lack of funds.
In the event no are available for the program, a notice of the lack of funding shall be posted on
the city website.
clerk's office.
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f CITY OF SEWARD, ALASKA
LIP ORDINANCE 2022-005
Section 2. Seward City Code section 14.10.030 is hereby amended to read as follows: (new
language is underlined and in bold italics and deleted language is stricken):
14.10.030.- Water main extensions.
Water main extensions, other than extensions made under Chapter 5.22, shall be made upon
written application by the customer property owner and deposit of theme estimated
cost of the extension, which shall be applied to the actual cost. If the actual cost exceeds that of
the deposit, the applicant shall pay the additional amount.
Section 3. Seward City Code section 14.15.505 is hereby enacted to read as follows:
14.15.505. —Scope of Article.
This Article 5 shall not apply to service extensions made under Chapter 5.22.
Section 4. This ordinance shall take effect ten (10) days following its enactment.
ENACTED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA
this 28th of February, 2022.
T ' IT " AR' • LASKA
er , ayor
AYES: DeMoss, Calhoon, McClure, Osenga, Terry
NOES: None
ABSENT: Casagranda, Wells
ABSTAIN: None
ATTEST:
Brenda J. Ballou, C
City Clerk """'••
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(City SS4��.••cotP°14>•4.0%
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City Council Agenda Statement
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Meeting Date: February 14, 2022 �
To: City Council
From: Janette Bower, City Manager --
Agenda Item: Ordinance 2022-005: Amending Seward City Code 5.22 Developer Incentive
and Reimbursement Program to Further Clarify and Define Program
Processes, Amending Section 14.10.030 Water Main Extensions to Exclude
the Language in Chapter 5.22, and Enacting Section 14.15.505 Scope of
Article to Exclude the Language in Chapter 5.22
Background and justification:
The purpose of this ordinance is to provide clarity and further define the Developer Incentive and
Reimbursement Program. Additional language has been added to clarify the two methods utilities
may be extended by a developer and the application process.
Due to the extensive amendments in section 5.22.030,the section has been struck. Portions of the
original language have been moved to new sections. The remainder of the chapter has been
amended as follows:
Amende
d code Amendment Justification
section
5.22.010 Strike"Purpose"and insert"Intent" The first sentence of the text states intent
as opposed to purpose.
5.22.010 Strike"his, her or its"and insert"the Grammatical amendment.
developer's"
5.22.010 Strike"assessed in a special improvement The special improvement district is not the
district" only method used.
Strike"will be consistent with all applicable Attorney recommendation —the language is
5.22.020 terms defined in the city charter" unneeded because the code is required to
be consistent with the charter.
Developer definition -"property owner" is Clarifying amendment regarding ownership
5.22.020 struck and "person who owns undeveloped of undeveloped land.
land"is inserted. "An improvement district
subject to a special assessment"is struck.
5.22.020 Special improvement district definition added. Referring language to Chapter 5.20.
Struck"the provisions of this section This language is struck due to the zoning
5.22.020 specifically do not apply to tracts within the designation for SMIC. Housing in SMIC is
Seward Marine Industrial Complex (SMIC))" not viable but may be so in the surrounding
area.
Previously the language only recognized
General. New section recognizing two financing by special improvements districts.
5.22.035 methods for financing utility extensions, The language has been broadened to
special improvement district and private recognize private financing. I.e., the
financing. developer pays all costs associated with the
improvement and is reimbursed up to 50%.
5.22.045 Special improvement district. New section referring to the charter chapter
8 and chapter 5.20 of the code.
Amended
code Amendment Justification
section
Special improvement district— reimbursement The language codifies the process currently
5.22.55 through partial assessment. New section. used when the special assessment method
is used.
New section providing language regarding:
written agreement, agreement, bond
5.22.065 Utility extensions by developer. New section. required, as-built drawing required,
ownership, testing, marketing
reimbursement, and expanded capacity.
Defines the requirements for a complete
5.22.075 Application required. New section. application prior to beginning work and
provides for the timeframe the application
must be forwarded to the manager.
5.22.085 Application content. New section. Lists the application elements.
Provides a timeline the manager must
5.22.095 Approval process. New section. provide a written recommendation to the
council and the corresponding legislation.
The language requires the developer to
5.22.105 Completion report. New section. submit a completion report, along with
documentation regarding actual costs.
Provides for the timeframe the manager
5.22.115 Reimbursement. New section. must submit the reimbursement request to
the council for approval and for any
required additional legislation.
5.22.125 Notice of lack of funds. New section. The language was previously in 5.22.030
i
14.10.030 The language"other than extensions made Language added to exclude the language
under Chapter 5.22"has been added. in Chapter 5.22.
14.15.505 Scope of Article. New section. Language added to exclude the language
in Chapter 5.22.
Comprehensive and Strategic Plan Consistency Information
This legislation is consistent with (citation listed):
Comprehensive 2.2.10 Land Development
Plan:
Strategic Plan:
Other:
Certification of Funds
Total amount of funds listed in this legislation: $ 0
This legislation (✓):
Creates revenue in the amount of: $
Creates expenditure in amount of: $
Creates a savings in the amount of: $
✓ Has no fiscal impact
Funds are (✓):
Budgeted Line item(s):
Not budgeted
✓ Not applicable
Finance Signature:
Attorney Review✓ Administration Recommendation
✓ Yes ✓ Adopt Ordinance
Not applicable Other: