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Ordinance 328700006.090.086 J eh 12/07/99 ORDINANCE NO. 3287 AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON, APPROVING AND CONFIRMING THE FINAL ASSESSMENTS AND ASSESSMENT ROLL OF LOCAL IMPROVEMENT DISTRICT NO. 216, THE NORTH PERRINVILLE SANITARY SEWER LID, WHICH HAS BEEN CREATED AND ESTABLISHED FOR THE PURPOSE OF EXTENDING SEWER MAINS AND SERVICE TO THE PROPERTY COMMONLY KNOWN AS THE NORTH PERRINVILLE AREA, AS PROVIDED IN ORDINANCE NO. 3243, AND LEVYING AND ASSESSING THE COST THEREOF AGAINST THE SEVERAL LOTS, TRACTS AND PARCELS OF LAND SHOWN ON SAID ROLL. WHEREAS, the assessment roll levying the special assessments against the properties located in Local Improvement District (LID) No. 216 of the City of Edmonds, created by Ordinance 3243, was filed with the City Clerk as provided by law, and WHEREAS, notice of the time and place of a public hearing upon said roll and of making objections and protests to said roll was duly mailed and published at the times and in the manner provided by law, fixing the date and place of the City Council hearing thereon for the 7th day of December, 1999, in the Large Plaza Room of the Edmonds Library, 650 Main Street, Edmonds, Washington, and WHEREAS, at the time and place fixed and designated in said notice, the hearing was held and written and oral protests received were duly considered and all persons appearing at said hearing were heard, and { JEH417763 .DOC;1/00006.090087/090087} - 1 - WHEREAS, upon completion of the hearing, the City Council considered the protests, and decided to make changes in the final assessment roll as hereinafter provided, now, therefore, THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Findings and Conclusions. The City Council hereby makes the following findings and conclusions: i� 1. LID No. 216 was created by City of Edmonds Ordinance No. 3243, passed by the City Council on March 16, 1999. 2. The LID was formed for the purpose of constructing sanitary sewer mains, acquiring rights -of -way and easements necessary therefore, restoring streets and sidewalks where affected, and constructing such other appurtenances and related work as to make a complete improvement in accord with City standards. The routes along which the sewer mains are to be constructed is specified in Ordinance No. 3243. 3. Pursuant to RCW 35.51.030, Ordinance No. 3243 established an assessment method for the LID under which each single - family residential parcel would be assessed based upon the number of equivalent residential units ( "ERUs ") attributable to such parcel. The amount to be assessed per ERU is to be determined by dividing the total amount to be assessed against all properties within the LID by the total number of ERUs attributable to all properties within the LID. The number of ERUs attributable to each individual assessable parcel within the LID is to be determined as follows: A. For each parcel which has been developed with the maximum number of single - family dwelling units allowed given the applicable zoning regulations and parcel size, the total number of ERUs shall be equal to the total number of single - family dwelling units. B. For each vacant parcel, the total number of ERUs shall be equal to the total number of potential single - family dwelling units that could be built on the parcel under applicable zoning regulations and if the parcel were subdivided. C. For each parcel which has been developed with fewer single - family dwelling units that could be built on the parcel under applicable zoning regulations and if the parcel were subdivided, the total number of ERUs shall be equal to the total { JEH417763 .DOC;1/00006.090087/090087} - 2 - number of existing and potential single - family dwelling units that could be built on the property under applicable zoning regulations. D. In the future, if any parcel is divided into more building lots on sites than were included in the LID assessment roll, a fee in lieu of assessment, in the amount of one ERU is to become due for each additional building lot or site created. 4. Neither the formation of LID No. 216 nor the assessment method set forth in Ordinance No. 3243 was challenged by any property owner as required by state law. 5. Although the LID improvements have yet to be constructed, the City's bond counsel has recommended that the assessment roll for LID No. 216 be considered and confirmed prior to December 31, 1999 in order to avoid potential complications resulting from the passage of Initiative 695. 6. On November 16, 1999, the City Council passed a resolution setting the hearing on the final assessment roll for LID No. 216 for December 7, 1999. The Council also stated its intent to reduce all assessments proportionately for each property if the actual costs for the project turn out to be significantly lower than the City's estimate. Pursuant to statute, notices were mailed and published for the hearing. 7. At the hearing, the City Council received testimony from Assistant City Engineer Don Fiene concerning the estimated cost of the LID improvements, including construction, engineering and administrative costs. A 10% contingency has been added to the cost estimate in order to ensure that the City will not incur a large debt if the construction costs come in higher than expected. At the hearing, the Council received a written protest from Andy and Penny Hymes, owners of LID Parcel 54. Mr. Hymes also testified at the hearing. Mr. Hymes made two points: A. In April/May 1998, the drainfield on the Hymes property was failing. The Hymes' took out a second mortgage and had their septic system and drainfield replaced. The cost was $13,406 and the Hymes' have 13 years left to pay on the second mortgage. The LID was formed after the new septic system was installed. The Hymes' believe that the system has a useful life of 40 years and that the sewer system improvement does not benefit their property to the same extent as it does other homes in the LID with older drainfields. B. The LID schedule that the City has provided to property owners has shown the final assessment roll hearing taking place next year, after construction. The Hymes' had anticipated budgeting for and obtaining an appraisal of their property in the year 2000 so that they could provide expert testimony on their assessment. Because the schedule has been accelerated, the Hymes' feel that they have been deprived of the opportunity to provide the appraisal and cannot present one at the hearing. { JEH417763 .DOC;1/00006.090087/090087} - 3 - 9. Mr. Fiene responded that, in his opinion, the sewer line will provide a benefit to the Hymes property and will result in the property's market value being increased, regardless of the presence of the new septic system and drainfield. Mr. Fiene pointed to the fact that the septic system and drainfield replacement cost was nearly equal to the assessment and stated that this validated the benefit received from sewers. 10. Lee Voorhees, the City's bond counsel, indicated that in his experience with LIDs appraisers have usually found that sewer increase the market value of properties, even where those properties had functional septic systems. Mr. Voorhees pointed out that he was not a real estate appraiser, however. 11. The City Council also received a written letter of protest from Mr. James M. Tripp, owner of LID Parcels 15 and 16. Mr. Tripp's written objection was that he was being assessed for two lots, which he desires to combine into one but which he has been unable to combine yet. Mr. Tripp also testified at the hearing. He did not elaborate on his protest, but asked questions concerning the Council's intent to reduce the assessments if the actual cost of the improvements turned out to be lower than estimated and about the possibility of Edmonds imposing a connection charge in the future. 12. Mr. Fiene responded to Mr. Tripp's questions, indicating that the staff considered a $100,000 differential between estimated and actual costs to be significant but that it was Council's decision. Mr. Fiene also indicated that the connection charge was something that might be considered in the future but that it was not an issue now. 13. The City Council also received a written protest from Mr. and Mrs. John Hanson, owners of LID Parcel 55. Mr. and Mrs. Hanson believe their assessment outweighs the benefit their property will receive. The Hansons did not testify at the hearing. 14. The City Council also received testimony at the hearing from Brian McCormick, owner of LID Parcel 51. Mr. McCormick did not protest his assessment, but was concerned about increases in cost from the time the LID was formed and asked when an accounting would be done. 15. Mr. Fiene responded that the costs at this point were an estimate and that the actual costs would not be known until after construction. 16. No other protests were received and no other property owners testified.. CONCLUSIONS 1. The City Council is the body designated by state law and City ordinances to conduct LID assessment roll hearings and decide protests. The Council has the authority to correct, { JEH417763 .DOC;1/00006.090087/090087} - 4 - revise, raise, lower, change, or modify the roll based upon the evidence and protests received. 2. The estimated cost of the LID improvements is reasonable and all costs included in the estimate are allowed to be included by state law. 3. The City Council concludes that: A. The method of assessment provided by Ordinance No. 3243 more fairly reflects the special benefit to each lot, tract, parcel of land, and other property shown on the roll than would the zone and termini method set forth in state statutes. The zone and termini method assesses property based upon its distance or the distance of any portion of the property from the improvements. Since all single- family properties within the LID can connect to and have equal access to the sanitary sewer improvements, the ERU method adopted by Ordinance No. 3243 more fairly reflects the benefit that will be received by each parcel. B. Each of the lots, tracts, parcels of land, and other property shown on the roll presented at is hereby determined and declared to be specially benefited by the sanitary sewer improvements in at least the amount assessed. C. Each assessment appearing on the roll for each parcel is proportionate to the other assessments appearing on the roll. 4. Mr. and Mrs. Hymes did not present expert appraisal testimony to support their protest. Without such testimony, the City Council cannot determine whether the parcel's special benefit is less than other properties within the LID due to the new septic system or the extent to which the benefit is less. The City Council is concerned, however, about how the acceleration of the final assessment roll hearing may have affected the ability of Mr. and Mrs. Hymes to obtain an appraisal. Therefore, acting as a board of equalization and for reasons of equity, the Council concludes that the assessment on Parcel 54 should be reduced by 50 %, i.e., from $13,750 to $6,875. 5. The protests from Mr. Tripp and the Hansons did not present expert appraisal evidence from which the Council could conclude that the assessments on Parcels 15, 16, or 55 exceed the special benefit that will be received from the LID improvements. The protests must be denied. 6. Mr. McCormick's questions were not a protest of his assessment and the Council needs to take no action in this LID regarding the cost issues raised. 7. The assessment roll should be confirmed as presented at the December 7, 1999 hearing except that the assessment on Parcel 54 should be reduced to $6,875. { JEH417763 .DOC;1/00006.090087/090087} - 5 - Section 2. Confirmation and Approval of Roll. The assessments and assessment roll for Local Improvement District No. 216, the North Perrinville Sanitary Sewer LID, is hereby in all respects approved and confirmed as presented at the December 7, 1999 hearing, except that the assessment against Parcel 54 is reduced to $6,875. A copy of the revised assessment roll is attached to this Ordinance as Exhibit A and incorporated herein by this reference as if set forth in full. Section 3. Collection of Assessments. Upon completion of the LID improvements and verification of the final LID costs, the assessment roll as approved and confirmed shall be filed with the Finance Director of the City of Edmonds, provided that the Council hereby reaffirms its intent that all assessments be proportionately reduced for each property if the actual cost of the LID improvements is significantly lower than the final cost estimate. Upon such filing, the Finance Director shall publish notice as required by law stating that the roll is in her hands for collection and that payment of any assessment thereon or any portion thereof may be paid at any time within thirty (30) days of the first publication of the said notic3without penalty, interest or costs, and thereafter the sum remaining unpaid, if any, may be paid in ten (10) equal annual installments with interest on the whole unpaid sum at a rate to be established by ordinance which shall not be greater that one -half of one percent in excess of the net effective interest rate fixed on the local improvement bonds hereafter issued for LID No. 216. Any installment not paid prior to the annual anniversary of said thirty (30) day period shall be deemed delinquent. All delinquent assessments shall be subject to a charge for interest at the above - established rate per annum and an additional charge of five percent (5 %) levied upon the principal due upon such installments will be enforced in the manner provided by law. { JEH417763 .DOC;1/00006.090087/090087} - 6 - Section 4. SeverabilitX. If any section, sentence, clause or phrase of this ordinance shall be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this ordinance. Section 5. Effective Date. This ordinance, being the exercise of a power specifically delegated to the legislative body of the City pursuant to RCW 35.44.080, shall take effect and be in full force five (5) days after publication of the ordinance or a summary consisting of the title as required by law. APPROVED: MAYOR, BARBARA S. FAHEY ATTEST /AUTHENTICATED: CITY CLERK, SANDRA S. CHASE APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY: BY - J ES E. HANEY '4'0' FILED WITH THE CITY CLERK: 12/10/1999 PASSED BY THE CITY COUNCIL: 12 /14/1999 PUBLISHED: 12/19/1999 EFFECTIVE DATE: 12/24/1999 ORDINANCE NO. 3287 (JEH417763 .DOC;1/00006.090087/090087) - 7 - SUMMARY OF ORDINANCE NO. 3287 of the City of Edmonds, Washington On the 14th day of December, 1999, the City Council of the City of Edmonds, passed Ordinance No. 3287. A summary of the content of said ordinance, consisting of the title, provides as follows: AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON, APPROVING AND CONFIRMING THE FINAL ASSESSMENTS AND ASSESSMENT ROLL OF LOCAL IMPROVEMENT DISTRICT . NO. 216, THE NORTH PERRINVILLE SANITARY SEWER LID, WHICH HAS BEEN CREATED AND ESTABLISHED FOR THE PURPOSE OF EXTENDING SEWER MAINS AND SERVICE TO THE PROPERTY COMMONLY KNOWN AS THE NORTH PERRINVILLE AREA, AS PROVIDED IN ORDINANCE NO., 3243, AND LEVYING AND ASSESSING THE COST THEREOF AGAINST THE SEVERAL LOTS, TRACTS AND PARCELS OF LAND SHOWN ON SAID ROLL. The full text of this Ordinance will be mailed upon request. DATED this 15th day of December, 1999. 'Ma �" CITY CLERK, SANDRA S. CHASE { JEH417763 .DOC;1/00006.090087/090087} - 8 -