TO: Mayor and Town Council
FROM: Jill Keimach, Town Manager
Andrew Miller, Town Attorney
DATE: November 21, 2019
CONTACT:
Staff Contact Andrew Miller, 480-348-3691
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AGENDA TITLE:
Title
Cost Recovery Ordinance
Body
BACKGROUND: Arizona Revised Statute § 9-243 (the “Statute”, see copy attached) provides that the Town Council may, by ordinance, require the proprietor or owner of any property within the Town at the time of the development of the property to construct sidewalks or streets within and adjacent to the property. The Statute also provides that if the Council determines that such streets (including storm drainage and other typical street related improvements such as curb and gutter) are necessary before the development of the property, the Council may order these improvements to be constructed by the Town at its expense and to assess the expense against the property. The Council may also provide and approve the manner of assessing the property at the time of development and the manner of collecting unpaid assessments at the time of “development” of the property.
Per the Statute, the “development” of the property includes “construction of residential, commercial or industrial buildings or structures or major additions or alterations to existing structures and includes new buildings or structures on property having existing buildings or structures situated on such property.” However, when such property is zoned for agricultural or single family residential use at the time of assessment, development shall also require a change of use or purpose.
Some municipalities have adopted provisions in their municipal codes that set forth the procedures to be used by the municipality for assessing sidewalk and street improvements pursuant to the authority provided in the Statute. Based on a review of the statutes used by other municipalities the staff has prepared a draft ordinance (attached) that, if adopted by the Council, would establish the procedures for the Town to make street and sidewalk assessments under the authority of the Statute.
The procedures in the draft ordinance closely follow the timing and processes specified in the Statute and includes a requirement that the application of an assessment to a particular property will require the adoption of an ordinance for each assessment. The ordinance also provides for the Town Engineer or designee to prepare a map establishing the boundaries of the area to be improved that shows the width and location of the proposed streets and sidewalks, with the map to be filed in the office of the Town Clerk. The maps prepared by the Town Engineer will contain a description of the streets and sidewalks to be constructed; a general description of the estimated total cost and cost per lineal foot of frontage of the proposed street and/or sidewalk improvements; and a list of all parcels depicted on the map. If any of the parcels depicted on the map engages in “Development” (as defined in the code) within ten years after the adoption of the assessment ordinance, the owner of the parcel is required to pay the assessment in full prior to the issuance of a building permit for the parcel.
The draft ordinance also contains a provision in proposed Section 5-10-3 related to extensions of water lines by the Town. Typically the Town does not construct and provide for water line extensions, however, due to the Town’s desire to avoid future cuts to new streets the Town may construct a short sewer line extension at the time that certain streets (such as Lincoln Drive) in order to avoid street cuts for future water lines that the Town believes will be needed for future planned developments. The new provision requires the repayment of a property owner’s proportionate responsibility for the cost incurred by the Town to extend a water line prior to the benefitting property being permitted to tie into the water line or obtain a building permit that relies on the use of the extended water line. This provision is similar to the provisions in Section 15-5-7 of the Town Code related to sewer line extensions. Also, because repayments for sewer line extensions are currently provided for under Section 15-5-7, no changes to the Town Code are needed at this time with regard to sewer extension repayments.
RECOMMENDATION: It is recommended the Council review the draft ordinance, provide comment, and direct staff on whether to set the draft ordinance for adoption by the Council.
ATTACHMENTS:
Draft of Cost Recovery Ordinance - Ord. No. 2019-11
ARS § 9-243