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Resolution No. 2008-05

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City Council meeting minutes of Feb 19 2008

Resolution No. 2008-05

A RESOLUTION of the City Council of the City of Lakewood, Washington, authorizing the Lakewood City Manager to execute a Public Works Trust Fund Loan Agreement for the construction of American Lake Gardens/Tillicum Sewer Extension and Side Sewer Construction Program.

WHEREAS, the City of Lakewood is a municipal corporation within Pierce County, Washington; and,

WHEREAS, the Lakewood City Council desires to provide sanitary sewer infrastructure to the neighborhoods of American Lake Gardens and Tillicum to allow for denser development as envisioned in the City of Lakewood?s Comprehensive Plan; and,

WHEREAS, the current septic systems cannot provide adequate wastewater treatment for the higher development densities outlined in the City of Lakewood?s Comprehensive plan; and,

WHEREAS, the City of Lakewood City Council authorized Resolution 2004-28, enacting a sewer surcharge for the purpose of paying for sewer extensions to American Lake Gardens; and,

WHEREAS, the City of Lakewood City Council authorized Resolution 2006-31, finding that financing of private side sewers provides a public benefit necessary to achieve minimum sewer flows to operate the American Lake Gardens / Tillicum sanitary sewer system; and,

WHEREAS, the City of Lakewood City Council wishes to provide financial assistance to property owners for the purpose of designing, permitting, constructing, and paying hook-up fees for side sewer construction.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKEWOOD, WASHINGTON DO HEREBY RESOLVE, AS FOLLOWS:

Section 1. The City Manager is authorized to execute a Public Works Trust Fund Loan Agreement for the amount of $1,840,000 (One Million Eight Hundred Forty Thousand Dollars) for the purposes of construction of the American Lake Gardens / Tillicum Sewer Extension Project including private side sewer connections and associated fees.

Section 2. The sanitary sewer surcharge enacted by Resolution 2004-28 is in full force and effect and will remain so in order to retire debt service on the construction of this Public Works Trust Fund Loan.

Section 3. The City of Lakewood may utilize the Public Works Trust Fund Loan dollars for the construction of side sewers under the following conditions:

  1. All costs for Pierce County permitting and hook-up fees shall be included in the side sewer costs.

  1. If a property owner, adjacent to the sewer construction, elects to connect to the sewer main within eighteen (18) months following the City?s stated Sewer Service Availability Date (SSAD), an Agreement between the Owner and the City may be executed requiring the work on the side sewer be performed by a City ?Small Works Contractor? under contract with and the supervision of the City.

  1. Property owners agreeing to connect to the available sewer main within the first eighteen months after the SSAD, may, by a Hook Up Charge in Lieu of Assessment Agreement (HUILOA) with the City, agree to pay the City the total charges described in (a) and (b) above in 15 equal annual installments, plus interest on the declining principal balance at the rate of a maximum of 5% per annum, providing further, however, that the entire principal balance, plus accrued and unpaid interest shall be due and payable in full on the closing of any transfer or sale of the property by Deed or Real Estate Contract to Sell or upon any transfer of title by way of gift, devise or bequest.

  1. The Hook Up Charge in Lieu of Assessment Agreement (HUILOA) shall be recorded and be a covenant running with the land and by its terms grant the City the right to file its lien for unpaid sewer service charges, as a first lien against the benefitted property, inferior only to general taxes as provided in RCW 57.08.081.

PASSED by the City Council this 19th day of February, 2008.

CITY OF LAKEWOOD

Attest: _________________________________ Douglas G. Richardson, Mayor

________________________________

Alice M. Bush, MMC, City Clerk

Approved as to form:

_______________________________

Heidi Ann Wachter, City Attorney