Ord 0180 03/2013ORDINANCE NO. 180
AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE
VALLECITOS WATER DISTRICT RESCINDING
ORDINANCE NO. 161 AND ESTABLISHING A
REIMBURSEMENT AGREEMENT POLICY
BE IT ORDAINED by the Board of Directors of the Vallecitos Water District as follows:
Ordinance No. 161 defining and establishing the policy of the District with respect
to extensions or enlargement of water and sewer facilities, and reimbursement
agreements is hereby repealed.
Section 1: General Purpose.
This Ordinance outlines general terms and establishes eligibility requirements
and conditions for reimbursement agreements for construction of or enlargement of
water and sewer facilities. Reimbursements may be considered when new facilities
benefit eligible properties, other than those owned by applicant, that can be
conveniently served by the proposed facilities and when adequate capacity exists in the
facility as defined in Section 3.3.
Section 2: District Determination
The District shall have the sole discretion to determine the following:
2.1. Whether a proposed extension or enlargement of water and /or sewer
facilities by applicant(s) will be permitted.
2.2. Whether the proposed facilities will be constructed at the expense of the
applicant the expense of the District, or the joint expense of the applicant and the
District.
2.3. In the event the District determines that the proposed facilities are to be
constructed at the applicant's expense, the District may allow the applicant to proceed
with construction of the facilities provided the applicant enters into a Development
Agreement with terms and conditions acceptable to the District and in conformance with
this Ordinance.
2.4. In the event the District determines that the proposed facilities should be
financed in whole or part by District funds, the applicant shall enter into an agreement
with terms and conditions acceptable to the District.
Ordinance No. 180
Section 3: Reimbursement Agreement.
2
The applicant should review this entire Ordinance and consult with District staff to
determine if the project is eligible for a reimbursement prior to the initial request.
3.1 Initial Request. A request to enter into a Reimbursement Agreement
pursuant to this Ordinance shall be submitted in writing by the applicant to the District
prior to or concurrent with submittal of improvements plans for the proposed facilities.
The request must contain a map and a full legal description of the applicant's property,
which service is being requested for, and other properties that could be conveniently
served by the proposed facilities. The applicant shall also submit preliminary
construction cost estimates of the proposed facilities for calculation of preliminary
reimbursements. Section 6.1 identifies administrative costs associated with the initial
request.
If approved, this map and preliminary reimbursement information will be used as
the basis of the final benefit area and reimbursement amounts.
3.2 Determination of Reimbursement Eligibility: Upon receipt of the initial
request, and administrative deposit, the District will determine if the request is complete,
eligible for reimbursement and verify the boundaries of the area that could be
conveniently served by the proposed facilities.
3.3 Facility Eligibility: The District, in its sole discretion, will determine if the
proposed facilities are eligible for a reimbursement agreement. Projects involving
extensions of off -site water and sewer facilities, including facilities that front the project,
which may reasonably benefit other properties, may be eligible for reimbursement. On-
site facilities are not eligible and shall not be included in any reimbursements.
In order to be eligible for a reimbursement, the proposed off -site facility must be
designed and constructed with adequate capacity to provide service to the properties
within the proposed reimbursement agreement boundary
3.4 Eligible Property: For property, other than applicant's, to be included in
the reimbursement agreement, the proposed facilities must physically (in fee) front the
property, or be accessible through legal access or utility easements, at the District's
discretion.
3.5 Implementation: Upon determination by the District that the project
may qualify for a reimbursement agreement, the applicant shall submit plans and
specifications for construction of the proposed facilities for review and approval by the
l District. The applicant's improvement plans shall contain a statement signed by the
District Engineer designating that a reimbursement agreement may be executed for the
applicant's project upon approval by the District Board of Directors. Applicant agrees to
enter into a standard Reimbursement and Acquisition Agreement in conformance with
this Ordinance.
Ordinance No. 180 Page 3
3.6 Board Approval: Prior to Board approval of applicant's project for
construction, the above referenced items shall be completed. The staff report for
project approval shall include information on the proposed benefit area and preliminary
reimbursement amounts for consideration by the Board of Directors.
The District Secretary shall give notice to the owner or owners, as shown by the
latest assessment roll, within the potential benefit area that may be conveniently served
by the proposed facilities. Said notice shall not be less than ten (10) days prior to the
Board meeting, by United States mail, postage prepaid, giving the date, time, and place
of the Board meeting.
Section 4: Eligible Reimbursement Costs and Methodology
Reimbursement shall be in conformance with the following:
4.1 Reimbursement Report: Within 30 days after completion of the
improvements and acceptance by the District Board of Directors, applicant shall provide
District with a reimbursement report for review by the District. The report shall include
an itemized accounting substantiating actual construction costs, allowed by this
Ordinance, related to the construction of the facilities. In the event the required
information is not provided within 30 days, the applicant will not be entitled to a
reimbursement agreement.
4.2 Eligible Costs: The District shall determine, in its sole discretion, the
total eligible construction cost of the facilities as well as the formula utilized for
determining the reimbursement. Eligible construction costs shall not include applicant's
costs for administrative, engineering, financing, surveying, permits, legal services,
inspection related expenses, or water services and sewer laterals serving or
appurtenances benefitting applicants property.
4.3 Benefit Calculation Formula: The construction charge for each
property within the benefited area may be determined, at the District's discretion, by
either of the following formulas:
Each properties percentage of the total land within the benefited area; plus each
properties percentage of total facility frontages; divided by two. This average
percentage will be multiplied by the total eligible construction costs to determine each
properties reimbursement amount.
Alternatively, at the District's sole discretion, eligible construction costs may be
evenly split between the total parcels within the benefited area. Alternative
reimbursement formulas /methods may also be considered at the sole discretion of the
District.
4.4 End of Line Benefit: The applicant shall not be entitled to any
Ordinance No. 180 Paqe 4
reimbursement from future extensions of the facilities identified in the reimbursement
agreement.
4.5 Other Costs: The District may charge additional capital facility fees
for meters or sewer laterals connected to the facilities. Such additional charges shall
not be included in the construction costs to be reimbursed to applicant.
Section 5: Reimbursements
5.1 Term of Agreement: Applicant shall be entitled to receive
reimbursement payments until either all payments specified in the agreement have
been made, or a maximum period of twenty (20) years from the effective date of the
reimbursement agreement expires. The District agrees to reimburse applicant the
amount received by the District, for each benefited property, the proportionate share of
eligible construction costs plus an escalator based upon the increase in the ENR -LA
Construction Cost Index from the effective date of the agreement to the date of
reimbursement.
Following reimbursement of all approved construction costs or automatic
termination of the agreement, applicant shall not be entitled to any further
reimbursements. In no case is the District responsible for payment of any outstanding
reimbursements from District funds and is under no obligation make payments for
uncollected reimbursements.
5.2 Payment: All reimbursement payments shall be made to applicant at
the mailing address designated in the reimbursement agreement only, and shall not be
assignable without the District's prior written consent. It is the applicant's responsibility
to notify the District of changes in mailing address.
Section 6: Administrative Costs and Deposits
6.1 Deposit: Applicant shall deposit estimated expenses for District
administrative charges for preparation of the agreement. Additional administrative
charges for monitoring payments to applicant during the term of the agreement incurred
shall be deducted from reimbursements. Additional deposits amounts may be required
to complete the reimbursement agreement. Balances shall be due and payable prior to
final Board action and the Public Hearing identified in Section 7.
6.1.1 Initial Request Deposit:
2 -5 parcels $1,000.00
6 -10 parcels $1,500.00
More then 10 parcels $2,500.00
Ordinance No. 180 Paqe 5
The applicant's project shall be included as one benefited property and considered in
the number of parcels referenced in Section 6.1.1.
Deposit amounts are subject to annual review and modification at the discretion of the
General Manager without modification of this Ordinance.
6.2 Administration Costs: The District will retain 5% of the reimbursement
amount when payment is received from any benefiting property to reimburse the District
for costs associated with the administration of the reimbursement agreement.
Section 7: Public Notice and Hearing.
Prior to authorization of a reimbursement agreement, the Board of
Directors shall conduct a public hearing notifying the benefited properties of the
proposed reimbursements. Not less than ten (10) days prior to the hearing, the District
Secretary shall give written notice to the owner or owners of land within the proposed
benefit area by United States mail, postage prepaid, a notice of a hearing before the
Board of Directors, giving the date, time, and place of said hearing. The Secretary shall
give notice to the owner or owners as shown by the latest assessment roll covering the
proposed benefit area that may be served by the proposed facilities. The Board may
consider evidence presented at the hearing by any and all persons who have a
recognizable legal interest in the matter. The Board's decision shall be final regarding
the reimbursement agreement.
This Ordinance shall become effective immediately upon passage.
PASSED, APPROVED, AND ADOPTED by the Board of Directors of the
Vallecitos Water District on the 20th day of March 2013, by the following vote:
AYES: EVANS, FERGUSON, MARTIN, POLTL, HERNANDEZ
NOES:
ABSTAIN:
ABSENT:
ra mdez Presi ent
Boar tors
Vallecitos Water District
ATTEST-
Dennis O. Lamb, Secretary
Board of Directors
Vallecitos Water District