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Home Resolutions Resolution No. 2012-04

Resolution No. 2012-04

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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 stating that the financing of private side sewer is of a public benefit in order to insure minimum sewer flows can be achieved 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; and

            WHEREAS, the City of Lakewood City Council under Resolution 2008-05 set certain terms and conditions under which financial assistance side sewer loans shall be offered;


            Section 1. The City Manager is authorized to execute a Public Works Trust Fund Loan Agreement for the amount of $500,000 (Five Hundred Thousand Dollars) for the purpose of making available said funds via loans to fronting property owners on the Woodbrook/Tillicum Sewer Extension project to assist in covering the costs associated with connecting their buildings to the said sewer system.

            Section 2. The retirement of the debt on this Public Works Trust Fund Loan will be either from the debt service payments from those fronting property owners who received side sewer loan funding from the City or from the sanitary sewer surcharge enacted by Resolution 2004-28 or from the sewer availability charge enacted by Ordinance No. 530.

            Section 3. The City of Lakewood shall utilize the Public Works Trust Fund Loan dollars for the construction of side sewers under the following conditions for which these conditions shall take precedence to those established under Resolution 2008-05 and for which the major differences are as follows:

  • a. All costs for Pierce County permitting and hook-up fees shall be included in the side sewer costs.
  • b. If a property owner adjacent to the sewer construction elects to connect to the sewer main within ninety (90) days (Resolution 2008-05 previously denoted eighteen months) following the City’s stated Sewer Service Availability Date (SSAD), an Agreement between the property owner and the City will be executed requiring the work on the side sewer be performed by a City contractor selected pursuant to State law and under contract with and supervised by the City.
  • Property owners agreeing to connect to the available sewer main within the first 90 days (Resolution 2008-05 denoted 18 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 10 equal annual installments (Resolution 2008-05 denoted 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 any transfer of title by way of gift, devise or bequest.
  • c. 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.
  • The Public Works Trust Fund Loan money available for the City’s side sewer financial assistance project is that money available under this Public Work Trust Fund Loan agreement and all said money will be available on a first come first served basis.  After lapse of the various ninety (90) day notice periods associated with SSAD attributed to the City’s Woodbrook/Tillicum Sewer Extension project any remaining Public Works Trust Fund Loan money under this loan agreement will be returned to the Public Works Trust Fund Loan program (This is a new condition note originally included in Resolution 2008-05).
  • PASSED by the City Council this 3rd day of January, 2012.





    Alice M. Bush, MMC, City Clerk

    Approved as to Form:


    Heidi Ann Wachter, City Attorney