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AGENDA ITEM REVIEW FORM |
5.F.
Regular City Council Meeting
- Meeting Date:
- 01/13/2021
- Department Head:
- Kay Macuil
- Submitted By:
- Kay Macuil, City Attorney, Attorney's Office
Action Requested:
Motion
Ordinance
Ordinance
ITEM:
Discussion and possible action on any and all matters regarding Ordinance No. 406. An ordinance of the Mayor and City Council of the City of San Luis adding a subsection titled "Payback Agreements" to the San Luis City Code Building Regulations Chapter 150. (Glenn J. Gimbut, Assistant City Attorney)
A. Action on Reading of Ordinance No. 406 by title only
(City Clerk to read the ordinance by title only)
B. Action on Ordinance No. 406
A. Action on Reading of Ordinance No. 406 by title only
(City Clerk to read the ordinance by title only)
B. Action on Ordinance No. 406
SUMMARY:
The Basics of the Ordinance
Developers often construct waterlines, streets, etc., and dedicate them to the city for maintenance. The Developer's projects may have impacts beyond their property, so the law requires in that circumstance that they build infrastructure to address those impacts beyond their own property. For example, a subdivision hooks on to the main waterline but must run along property "A" to get there. Property owners of "A" later develop the property, and they hook on to the waterline. The property owners never paid for the waterline, but they are benefiting. This ordinance would require such property owners to pay back the developer who built the water line for their proportional benefit.
At present, San Luis has three (3) existing agreements for such payback. As San Luis is currently one of the fastest-growing cities in Arizona, more such agreements may arise. The payback agreements last up to 20 years. The City would collect monies from new development and reimburse the developer who built the infrastructure.
A City Fee to Help Defray the Costs of Administering the Payments
The ordinance creates provisions for payback agreements for infrastructure development. It provides for an administrative charge to cover the city's administrative costs. This administrative charge is proposed to be five (5) percent of the total cost incurred by the Owner/Developer to construct infrastructure from which persons other than the Developer will be served, with a maximum administrative charge of ten thousand dollars ($10,000.00). Administrative charges will be distributed equally among the properties benefited if equal costs are applied to each parcel or based on the cost per linear foot of frontage.
Developers often construct waterlines, streets, etc., and dedicate them to the city for maintenance. The Developer's projects may have impacts beyond their property, so the law requires in that circumstance that they build infrastructure to address those impacts beyond their own property. For example, a subdivision hooks on to the main waterline but must run along property "A" to get there. Property owners of "A" later develop the property, and they hook on to the waterline. The property owners never paid for the waterline, but they are benefiting. This ordinance would require such property owners to pay back the developer who built the water line for their proportional benefit.
At present, San Luis has three (3) existing agreements for such payback. As San Luis is currently one of the fastest-growing cities in Arizona, more such agreements may arise. The payback agreements last up to 20 years. The City would collect monies from new development and reimburse the developer who built the infrastructure.
A City Fee to Help Defray the Costs of Administering the Payments
The ordinance creates provisions for payback agreements for infrastructure development. It provides for an administrative charge to cover the city's administrative costs. This administrative charge is proposed to be five (5) percent of the total cost incurred by the Owner/Developer to construct infrastructure from which persons other than the Developer will be served, with a maximum administrative charge of ten thousand dollars ($10,000.00). Administrative charges will be distributed equally among the properties benefited if equal costs are applied to each parcel or based on the cost per linear foot of frontage.
RECOMMENDATION / SUGGESTED MOTION:
A. I MOVE TO APPROVE THE READING OF ORDINANCE NO. 406 BY TITLE ONLY.
(City Clerk to read Ordinance No. 406 by title only)
B. I MOVE TO APPROVE AND ADOPT ORDINANCE NO. 406 AS PRESENTED.
(City Clerk to read Ordinance No. 406 by title only)
B. I MOVE TO APPROVE AND ADOPT ORDINANCE NO. 406 AS PRESENTED.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- No
- CITY/STATE/FEDERAL FUNDS:
- N/A
- TOTAL:
- N/A
- BUDGETED AMOUNT:
- N/A
- AVAILABLE AMOUNT TO TRANSFER:
- N/A
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- N/A
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
There is not a fiscal impact for this item. This is for off-site improvements that developers pay for under the existing laws. It allows for developer reimbursement from others who benefit from the improvement. The administrative fee is meant to help defray any costs to the city for administering these reimbursements.