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ORD 91-39 CONSTRUCTION OF WATERLINES & HYDRANTSORDINANCE NO. 91-_33 AN ORDINANCE of the City of Winslow, Washington, ordering the construction and installation of water lines and hydrants, sanitary sewer lines, on-site and off-site storm water facilities, and streets, including grading, paving, lighting and underground power lines, generally on Alder Avenue N.E. between Dingley Road and Wing Point Way N.E. and Dingley Road between Cherry Avenue N.E. and Park Avenue N.E.; establishing Local Improvement District No. 15, and ordering the carrying out of the proposed improvement; providing that payment for the improvement be made by special assessments upon the property in the District, payable by the mode of "payment by bonds"; and providing for the issuance and sale of local improvement district warrants redeemable in cash or other short-term financing and local improvement district bonds. WHEREAS, by Resolution No. 91-12, adopted on June 6, 1991, the City Council declared its intention to order the improvement of Alder Avenue N.E. between Wing Point Way N.E. and Dingley Road, and Dingley Road between Cherry Avenue N.E. and Alder Avenue N.E., and fixed July 18, 1991, at 7:00 p.m., local time, in the Bainbridge Island Fire Department Building, multi-purpose room, 8895 Madison Avenue North, Bainbridge Island, Washington, as the time and place for hearing all matters relating to the proposed improvement and all objections thereto and for determining the method of payment for the improvement; and WHEREAS, the hearing was held as scheduled on July 18, 1991, and was continued to September 19, 1991, at the same time and place; and WHEREAS, the continued hearing was held as scheduled on September 19, 1991, and was continued indefinitely; and WHEREAS, by motion passed on October 17, 1991, the City Council fixed November 7, 1991, at 7:00 p.m., local time, in the Bainbridge Island Fire Department Building, multi-purpose room, 8895 Madison Avenue North, Bainbridge Island, Washington, as the time and place for the continued hearing; and WHEREAS, the continued hearing November 7, 1991, and was continued to the same time and place; and - 1 - cab/1630R 11/12/91 was held as scheduled on November 21, 1991, at WHEREAS, the continued hearing was held as scheduled on November 21, 1991; and WHEREAS, the hearing was continued to December 5, 1991, at the same time and place to receive additional information from Richard Kato of Kato & Warren, Inc.; and WHEREAS, the continued hearing was held as scheduled on December 5, 1991; and WHEREAS, Richard Kato, of Kato and Warren, Inc., the City's consulting engineer, caused an estimate to be made of the cost and expense of the proposed improvement and certified that estimate to the City Council, together with all papers and information in his possession, touching the proposed improvement, a description of the boundaries of the proposed local improvement district and a statement of what portion of the cost and expense of the improvement should be borne by the property within the proposed District; and WHEREAS, that estimate is accompanied by a diagram of the proposed improvement showing thereon the lots, tracts, parcels of land and other property which will be specially benefited by the proposed improvement and the estimated cost thereof to be borne by each lot, tract and parcel of land or other property; and WHEREAS, due notice of the above hearing was given in the manner provided by law and Resolution No. 91-12; and WHEREAS, at the above hearing, all objections to the proposed improvement were duly considered and certain modifications to the improvement were ordered to be made, and all other protests were overruled by the City Council, and all persons appearing at such hearing and wishing to be heard were heard; and WHEREAS, the City Council has determined it to be in the best interests of the City that the improvement as modified herein, and as hereinafter described, be carried out and that a local improvement district be created in connection therewith; and WHEREAS, the City, Alan F. Black and Triad Wing Point Limited Partnership have entered into a local improvement district agreement dated December 19th, 1991, under which Black and Triad are authorized to design, construct and install certain improvements in the proposed local improvement district, subject to reimbursement for the cost of such improvements from prepayment of assessments by property owners within the proposed District and the proceeds of permanent financing for the proposed District; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WINSLOW, WASHINGTON, DO ORDAIN AS FOLLOWS: - 2 - Section 1. The City Council orders the construction and installation of water lines and hydrants, sanitary sewer lines, on-site and off-site storm water facilities, and streets including grading, paving, lighting and underground power lines, all as more particularly described in Exhibit A attached hereto and by this reference incorporated herein. All of the improvements shall be in accordance with the plans and specifications prepared by the city engineer or such consulting engineers as are selected by the City Council, and may be modified by the City Council as long as such modification does not affect the purpose of the improvement. Section 2. There is created and established a local improvement district to be called Local Improvement District No. 15 of the City of Winslow, Washington (the "District"), the boundaries or territorial extent of the District being more particularly described in Exhibit B attached hereto and by this reference incorporated herein. The total estimated cost and expense of the improvement is declared to be $427,905.00 *• The entire cost and expense of the improvement shall be borne by and assessed against the property specially benefited by such improvement included in the District, which embraces as nearly as practicable all property specially benefited by such improvement. Section 3. In accordance with the provisions o RCW 35.44.047, the City may use any method or combination of methods to compute assessments which may be deemed to fairl-> reflect the special benefits to the properties being assessed. Section4. Some of the parcels in the District will no",,-. benefit from certain types of improvements and, therefore, wi)_:'!.. not be subject to special assessments for those types o-1 improvements;. Property which has not been subject to a speciab assessment for a type of improvement shall not connect to or make use of such type of improvement without, prior to connection or use, paying a charge in lieu of assessment, whicYr, charge shall be equal to the special assessment that would have been levied on the property for such type of improvement. The Director of Public Works is authorized and directed to cause notices of the charge in lieu of assessment requirements of this section to be filed with the Kitsap County Auditor for all assessment roll parcels that are not assessed for all of the types of improvements in the District. Section 5.. The City, Alan F. Black and Triad Wing Poin. "Limited Partnership, the owner and successor in interest, respectively, of certain property in the northern portion of the District, have entered into a local improvement district agreement dated December 19 , 1991. In accordance with Section 6(c) of that Agreement, the special assessment levied against the property of Black or Triad on the assessment roll - 3 - cab/1630R 11/12/91 * $324,436.00 Alder Avenue assessments Dingley to ging Point $103,469.00 Dingley Road - Triad/Black assessment for the District shall be equal to the "Dingley Improvement Costs", as that term is defined in the Agreement, plus a proportionate share of the total costs for storm water improvements in the District. Section 6. Local improvement district warrants may be issued in payment of the cost and expense of the improvement herein ordered to be assessed, such warrants to be paid out of the Local Improvement Fund, District No. 15, hereinafter created and referred to as the Local Improvement Fund, and, until the bonds referred to in this section are issued and delivered to the purchaser thereof, to bear interest from the date thereof at a rate to be established hereafter by the Director of Finance and Administrative Services, as issuing officer, and to be redeemed in cash and/or by local improvement district bonds herein authorized to be issued, such interest-bearing warrants to be hereafter referred to as "revenue warrants". In the alternative, the City hereafter may provide by ordinance for the issuance of other short-term obligations pursuant to Chapter 39.50 RCW. The City is authorized to issue local improvement district bonds for the District which shall bear interest at a rate and to be payable on or before a date to be hereafter fixed by ordinance. The bonds shall be issued in exchange for and/or in redemption of any and all revenue warrants issued hereunder or other short-term obligations hereafter authorized and not redeemed in cash within twenty days after the expiration of the thirty -day period for the cash payment of assessments without interest on the assessment roll for the District. The bonds shall be redeemed by the collection of special assessments to be levied and assessed against the property within the District, payable in annual installments, with interest at a rate to be hereafter fixed by ordinance under the mode of "payment by bonds", as defined by law and the ordinances of the City. The exact form, amount, date, interest rate and denominations of such bonds shall be hereafter fixed by ordinance of the City Council. Such bonds shall be sold in such manner as the City Council shall hereafter determine. Section 7. In all cases where the work necessary to be done in connection with the making of such improvement is carried out pursuant to contract upon competitive bids (and the City shall have and reserves the right to reject any and all bids), the call for bids shall include a statement that payment for such work will be made in cash warrants drawn upon the Local Improvement Fund. Section 8. The Local Improvement Fund for the District is created and established in the office of the Director of Finance and Administrative Services. The proceeds from inter -fund loans and the sale of revenue warrants or other 4 - cab/1630R 11/12/91 short-term obligations drawn against the fund which may be issued and sold by the City and collections pertaining to assessments, interest and penalties thereon shall be deposited in the Local Improvement Fund. Cash warrants to the contractor or contractors in payment for the work to be done by them in connection with the improvement, and cash warrants in payment for all other items of expense in connection with the improvement shall be issued against the Local Improvement Fund. Section 9. Within fifteen (15) days of the passage of this ordinance there shall be filed with the Director of Finance and Administrative Services the title of the improvement and District number, a copy of the diagram or print showing the boundaries of the District and the preliminary assessment roll or abstract of such roll showing thereon the lots, tracts and parcels of land that will be specially benefited thereby and the estimated cost and expense of such improvement to be borne by each lot, tract or parcel of land. The Director of Finance and Administrative services shall immediately post the proposed assessment roll upon his index of local improvement assessment against the properties affected by the local improvement. Section 10. This ordinance shall take effect and be in force five days from and after its passage, approval, publication and posting as required by law. PASSED by the City Council this 5th day of December, 1991. APPROVED by the Mayor this 5th da f Dece ,--1991. Sam Gr ato, Mayor ATTEST/AUTHENTICATE: Ralph W. Eells, City Clerk APPROVED AS TO FORM: Rod P. Kaseguma, City Attorney FILED WITH THE CITY CLERK: November 29, 1991 PASSED BY THE CITY COUNCIL: December 5, 1991 PUBLISHED: January 1, 1992 POSTED: December 30, 1991 EFFECTIVE DATE: January 3, 1992 ORDINANCE NO.: 91-39 5 cab/1630R 11/12/91 LOCAL IMPROVEMENT DISTRICT AGREEMENT THIS AGREEMENT is made and entered into this 19th day of December , 1991, by and among the City of Winslow, a code city organized and existing under the laws of the State of Washington (the "City"), Alan F. Black ("Black"), and Triad Wing Point Limited Partnership, a limited partnership organized and existing under the laws of the State of Washington ("Triad"). Recitals WHEREAS, the City is authorized by RCW 35A.43.010 and RCW 35.43.184 to contract with owners of real property to provide (i) for payment by the owners of the costs of certain LID preformation work conducted under the direction of the city engineer or other appropriate city authority, and (ii) for a credit in the amount of such costs against future assessments assessed against such property under the local improvement district if the local improvement district is formed within six years from the date of the contract; and WHEREAS, the City also is authorized by RCW 35A.21.160 and RCW 35.72.010 to enter into contracts with owners of real property for the construction or improvement of street projects which the owners elect to install as a result of ordinances that require the projects as a prerequisite to further property development; and WHEREAS, the City also is authorized by RCW 35A.80.010 and RCW 35.91.020 to enter into contracts with the owners of real property for the construction of storm, sanitary, or combination sewers, pumping station, and disposal plants, water mains, hydrants, reservoirs, or appurtenances; and WHEREAS, Black is the owner of the real property described in Exhibit A attached hereto and by this reference made a part hereof (the "Property"), which Property is located within the geographic boundaries of the City; and WHEREAS, Triad has entered into an agreement to purchase the Property from Black and intends to develop the Property as a residential development; and WHEREAS, the owners of certain property located on Alder Avenue immediately to the south of the Property have proposed the formation of a local improvement district of the City for the purpose of constructing and installing certain improvements on Alder Avenue from Dingley Road to Wing Point Way N.E. within the City; and -1- 71 WHEREAS, Kato & Warren, Inc., the City's engineers, have recommended (i) that street improvements on Dingley Road, which adjoins the Property to the immediate south, from Cherry Avenue to Alder Avenue be made in conjunction with the Alder Avenue improvements, and (ii) that the Dingley Road improvements and part of the Property be included in the proposed local improvement district (the "LID"); and WHEREAS, if Triad's residential development proceeds in advance of construction of the LID improvements, Triad desires to construct (i) the Dingley Road improvements, (ii) storm water improvements in Dingley Road and Alder Avenue, some of which will be permanent improvements and some of which will be temporary until the LID improvements are constructed, and (iii) certain offsite downstream improvements to detain and direct storm water through drainageways towards Eagle Harbor; and WHEREAS, upon their understandings that Black and Triad will be entitled to reimbursement from the LID for the cost of constructing and installing (i) the Dingley Road improvements, and (ii) the storm water improvements including offsite downstream improvements, Black and Triad have agreed (i) to the inclusion of a part of the Property within the LID, and (ii) if Triad's residential development proceeds in advance of the LID improvements, to construct and install the Dingley Road improvements and certain storm water improvements in cooperation with the City; and WHEREAS, in furtherance of and conditioned upon these understandings, Black has signed the petition requesting the City to form the LID (the "LID Petition"), which LID Petition is attached hereto as Exhibit B and by this reference incorporated herein. NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the City, Black, and Triad agree as follows: AGREEMENT Section 1. Definitions. As used herein, the following words shall have the following meanings: "Alder Improvements" shall mean certain improvements on Alder Avenue from Dingley Road to Wing Point Way N.E. within the City, those improvements to consist of: an 8 -inch diameter water line and fire hydrants; an 8 -inch diameter sanitary sewer line; a storm water system, including offsite downstream improvements; and street improvements to Alder Avenue, including grading, curbs, sidewalks, paving, lighting, and underground power lines. -2- 72 "Dingley Improvements" shall mean certain improvements on Dingley Road from Cherry Avenue to Alder Avenue within the City, those improvements to consist of: an 8 -inch diameter water line and fire hydrants; an 8 -inch diameter sanitary sewer line; a storm water system; and street improvements to Dingley Road, including grading, curbs, sidewalks, paving, lighting, and underground power lines. "Dingley Improvement Costs" and "Permanent Storm Water Improvement Costs" shall include, without limitation, the engineering (including preliminary and final design work and engineering services during installation and construction), construction, and administrative (including costs of soliciting and evaluating construction bids and of legal assistance) fees and costs to install the Dingley Improvements or the Permanent Storm Water Improvements respectively. These costs shall include all costs authorized to be included for assessment in the LID pursuant to RCW 35.44.020. "Permanent Storm Water Improvements" shall mean those portions of the Storm Water Improvements which the City Engineer determines are fully usable with and a necessary component of the LID improvements, as distinguished from temporary improvements such as a drainage ditch in Alder Avenue which will be replaced by the storm water system constructed with the LID improvements. It is anticipated that all the offsite downstream improvements will be permanent; that is, they will be fully usable with and a necessary component of the LID improvements and they will not be replaced by the storm water system constructed with the LID improvements. "Storm Water Improvements" shall mean storm water system improvements on Dingley Road and Alder Avenue, including catch basins, curb inlets, and lines, as well as offsite downstream improvements to detain and carry storm water in drainageways towards Eagle Harbor. Section 2. Term of Agreement. This agreement shall become effective upon its execution by the City, Black and Triad and shall expire at the earlier to occur of (i) six (6) years after the date of this agreement if the LID has not yet been formed or (ii) one (1) year following the confirmation by ordinance of the City of the final assessment roll for the LID and the termination of any statutory appeals, if any are taken, by owners of property within the LID. Section 3. Termination of Agreement as to Black. Upon Triad's purchase of the Property from Black, as evidenced by either a deed or a real estate contract, Black and Triad shall give written notice to the City of that purchase. Upon receipt -3- 73 of that notice by the City, Black shall be relieved of any and all obligations and liabilities under this agreement and Triad shall succeed to any and all of such obligations. Section 4. LID Formation. (a) Reasonable Best Efforts to Form LID. The City shall use its reasonable best efforts to form the LID pursuant to the petition method described in RCW 35.43.120 as soon as practicable. (b) LID Resolution and Formation Ordinance. The resolution of the City setting the time and place for hearing on the LID Petition and the ordinance of the City forming the LID shall specifically make reference to this agreement. Section 5. Design and Construction of Dingley Improvements and Permanent Storm Water Improvements by Black or Triad Prior to LID Construction. (a) Design and Construction of Improvements. If it appears that Triad's residential development of the Property will proceed in advance of the LID construction, Triad may seek City approval to design the Dingley Improvements and part or all of the Storm Water Improvements. If the City grants Triad approval to design these improvements, and after Triad has designed the improvements and the City has approved the design, Triad may seek City approval to construct these improvements. If the City approves Triad's design and/or construction of these improvements, such design and construction shall be carried out under the direction of the City Engineer or other appropriate City authority and in accordance with all applicable laws relating to design and construction of public improvements to be dedicated to the City. (b) Records of Costs. Black or Triad, as the case may be, shall maintain, separate and apart from his or its other accounting records, detailed and accurate records of the Dingley Improvement Costs and Permanent Storm Water Improvement Costs as they are incurred and paid. Those records shall be made available for inspection and copying by the City at all reasonable times. (c) Reimbursement of Black or Triad. Black or Triad, as the case may be, shall be reimbursed by the LID for the Dingley Improvement Costs and Permanent Storm Water Improvement Costs incurred by them. The reimbursement shall be made from prepayments of assessments by other property owners within the LID and/or the proceeds of permanent financing. The reimbursement shall be conditioned on acceptance by the City of -4- 74 the Dingley Improvements and those portions of the Permanent Storm Water Improvements that the City requires to be dedicated to it. Section 6. Design and Construction of Dingley Improvements and Permanent Storm Water Improvements by City Pursuant to LID. (a) Notice to Black and Triad If City To Design and Construct Improvements. If Black or Triad, as the case may be, has not commenced design of the Dingley Improvements or the Storm Water Improvements by the time the City is ready to commence the design of the Alder Improvements, the City shall notify Black and Triad that it is preparing to begin design of the Alder Improvements. If Black or Triad, as the case may be, has not commenced construction of the Dingley Improvements or the Storm Water Improvements by the time that the City is prepared to call for bids on the Alder Improvements, the City shall notify Black and Triad that it is preparing to call for bids on the Alder improvements. Black and Triad shall have twenty (20) days after receipt of such notice to commence design or construction, as the case may be, of the Dingley Improvements and/or the Storm Water Improvements and, if he or it does not do so, the City may design or include in the bid package, as the case may be, the Dingley Improvements and/or the Storm Water Improvements. In such event, Black and Triad shall not be entitled to reimbursement of costs, but shall be entitled to the segregation of the Dingley Improvement Costs herein. (b) Segregation of Bids and Costs for Dingley Improvements and Alder Improvements. If the City proceeds to design and/or construct the Dingley Improvements, it shall require its engineers and/or bidders to segregate their costs and/or bids for the Dingley Improvements. The City shall maintain, separate and apart from its other accounting records and segregated from its records relating to the Alder Improvements, detailed and accurate records of the Dingley Improvement Costs as they are incurred and paid. Those records shall be made available for inspection and copying by Black and Triad at all reasonable times. (c) Assessment Methodology. It is the understanding and intention of the parties (1) that the portion of the Property to be included in the LID includes approximately the area depicted as proposed lots 1-6 of Area 1A, lots 1-7 of Area 1B, lots 1-6 of Area 1C, and lots 1-7 of Area 4, all as depicted on plans dated April 29, 1991, prepared by GGLO Architects for Triad's Wing Point residential development, a copy of which is attached hereto as Exhibit C, and (2) that the assessment for the portion of the Property included in the LID shall be equal to (i) the Dingley Improvement Costs plus (ii) the proportionate -5- 75 share of the total assessment for stormwater improvements on Alder Street for which Black or Triad is assessed in the final assessment roll. The resolution setting the time and place for the hearing on the LID Petition, the ordinance of the City forming the LID, and the ordinance of the City confirming the final assessment roll for the LID shall set forth this understanding. Section 7. Notices; Computation of Time. Any notice, demand or payment by Black or Triad to the City under this agreement shall be deemed properly given if delivered, or if mailed postage prepaid and addressed, to: City of Winslow 625 Winslow Way E. Winslow, Washington 98110 Attention: Public Works Director Any notice, demand or payment by the City to Black or Triad under this agreement shall be deemed properly given if delivered, or if mailed postage prepaid and addressed, to both of: Alan F. Black Pioneer Square Properties 318 First Avenue South Seattle, WA 98104 and Triad Wing Point Limited Partnership 320 Andover Park East, Suite 235 P.O. Box 88070 Seattle, Washington Attention: Ross W. 98138-2070 Woods, Project Manager Notices, demands and payments shall be deemed given on the date personally delivered, or three (3) days following the date deposited in the United States mail addressed as herein provided. In lieu of giving notice by personal delivery or mailing, notices may be given to any of the parties by telecopier, with receipt promptly confirmed by telephone, if given and confirmed to the following telephone numbers: City of Winslow Attention: Public Telecopier: (206) Telephone: (206) Works Director 842-5741 842-7633 -6- 77 Alan F. Black Telecopier: (206) 623-8875 Telephone: (206) 623-7417 Triad Wing Point Limited Partnership Attention: Ross W. Woods, Project Manager Telecopier: (206) 575-9880 Telephone: (206) 575-9410 Notices given by telecopier shall be deemed given when receipt is confirmed by telephone. Upon the termination of this agreement as to Black, notices by the City and Triad need not be provided to Black. The name, address, telecopier and telephone numbers to which any notices, demands and payments shall be directed may be changed at any time, and from time to time, by any of the parties by giving notice thereof to the other as herein provided. Section 8. Successors and Assigns. This agreement shall inure to the benefit of, and shall be binding upon the respective successors and assigns of the City, Black and Triad. Black and Triad shall retain the full right and power to transfer all or any portion of their respective interests in the Property and may assign its interests under this agreement to any successor in interest to the Property. IN WITNESS WHEREOF, the parties have executed this agreement as of the day and year first above written. CITY OF WINSLOW, WASHINNGGTON Mayor Attest: By City Clerk T -7- w. J � ALAN F. BLACK TRIAD WING POINT LIMITED PARTNERSHIP Bye _ y L f �.'' ,'�' ? ,,r -,r .✓. Its STATE OF WASHINGTON ) COUNTY OF KING ) I certify that I know or have satisfactory evidence that and signed this instrument, on oath stated that they were authorized to execute the instrument and acknowledged it as the Mayor and City Clerk of the CITY OF WINSLOW, WASHINGTON, respectively, to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. (Seal or stamp) STATE OF WASHINGTON ) COUNTY OF KING ) Dated April _, 1991 Signature of Notary Public My appointment expires I certify that I know or have satisfactory evidence that ALAN F. BLACK signed this instrument and acknowledged it to be his free and voluntary act for the uses and purposes mentioned in the instrument. Dated Amari j, 1991 Signature of -- (Seal or stamp) Notary Publics'- My ublics My appointment 6xpires STATE OF WASHINGTON ) COUNTY OF KING ) IGertify t t I know or have satisfactory evidence that ?ft1LC 2L1/L� ' signed this instrument, on oath stated that was authorized to execute the instrument and acknowledged it as the tXb,14,L�I-Lj,ttX TRIAD WING POINT LIMITED PARTNERSHIP to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. Dated, 1991 ••�� DELA %,�11,1 Signature of Na y It, (Seal or stamp) Notary Public9SAI s i My appointment exVis ��� y a�f 2i 36 tic z. ASH -s- EXHIBIT A Lots 1, 2 and 4 of City of Winslow Short Plat recorded under Auditor's File No. 8008250144, being portions of Lots 32 through 39, plat of Yeomalt Point, as per plat recorded in Volume 3 of Plats, Page 5, records of Kitsap County, Washington. TMW-385 79