LAKEHA YEN UTILITY DISTRICT King Connty, Washington

Transcription

1 LAKEHA YEN UTILITY DISTRICT King Connty, Washington Resolution No A RESOLUTION of the Board of Commissioners of the Lakehaven Utility District, King County, Washington, establishing procedures for the formation and implementation of utility local improvement districts. WHEREAS, special purpose water and sewer districts are authorized by state law to form utility local improvement districts to carry out the whole or any portion of the general comprehensive plan of improvements, and WHEREAS, the Board has considered the development of a system of procedures to make the formation and implementation of utility local improvement districts more efficient and more informative to customers to be beneficial, and WHEREAS, believing such procedures adopted herein to be of benefit to the District and its customers, NOW THEREFORE, BE IT RESOLVED as follows: I. The District hereby adopts procedures for the formation and implementation of utility local improvement districts as set forth in the policy attached hereto as Exhibit" A" 2. The Board of Commissioners reserves the right to modify, repeal or replace any of the procedures set forth in the policy from time to time as deemed appropriate. ADOPTED by the Board of Commissioners of Lakehaven Utility District, King County, Washington, at an open public meeting this 23rd day of Julv, ATTEST: V Yia Nay Abstain X Yea Nay Abstain Resolution No Page 1

2 r flaw~u >< Secretary and Commissioner Yea Nay Abstain #tdk V- Commissioner Yea Nay Abstain /' ~~I 11~_J Conunissioner Yea Nay Abstain Approved as to form: ~l~ Resolution No Page 2

3 LAKEHAVEN UTILITY DISTRICT DOCUMENT: GENERAL POLICY NO SECTION: DEVELOPMENT ENGlNEERING ISSUE DATE: 07/23/98 SUBSECTION: UUD POLICYIPROCEDURES REVISION DATE: N/A APPROVAL: RESOLUTION NO. PAGE NUMBER POLICY It is the policy of Lakehaven Utility District to consider requests for Utility Local Improvement District (DUD) petitions and act on same in accordance with R.C.W et seq. Where in conflict with state law, state law shall control. Only under special circumstances, deemed sufficient by the Board of Commissioners, will UUDs be formed by the "resolution method." 2. PURPOSE To place in writing for uniform application the process used to evaluate and implement requests to form Utility Local Improvement Districts for the design and construction of water or sewer system improvements. 3. REFERENCES American Public Works Association (APW A) - UD/RlD Revised Code of Washington, Chapters and Procedure Manual, Edition III 4. DEFINITIONS Easement ULID An interest in land owned by another that entitles the grantee to a specific limited use (e.g., for construction and maintenance of water or sewer facilities). Utility Local Improvement District - a method of financing the construction of system improvements through special assessments. 5. PROCEDURES 1. Preliminary: A. One or more customer(s) express(es) interest or requests water or sewer service for a particular area. 06/25/98-MEY

4 LAKEHAVEN UTILITY DISTRICT DOCUMENT: SECTION: SUBSECTION: GENERAL POLICY DEVELOPMENT ENGINEERING UUD POLICY /PROCEDURES NO ISSUE DATE: 07/23/98 REVISION DATE: N/A APPROVAL: RESOLUTION NO. PAGE NUMBER 2 of8 II. B. District prepares and sends an informational transmittal letter, UUD Questions and Answers handout (Exhibit 'A'), UUD Process Guidelines (Exhibit 'B'), and a map of the general area to utilize when determining the level of interest. C. Informal meetings may be held with the affected property owners to answer general questions on the UUD formation process. D. If sufficient interest [by percentage of land area (exclusive of public rightsof-way) of "general area" - 51% by petition method] is indicated, the District may proceed with the UUD formation process by the petition method or the resolution method. E. All administrative costs for this preliminary process shall be borne by the District. Petition Method: A. The Board shall be informed of the request for UUD formation and staff shall request authorization to proceed with preparation of petitions. B. District's engineer shall review the general area and determine logical boundaries for the UUD. A preliminary layout shall be designed and preliminary costs generated. Staff may request Board authorization to secure the services of a consultant for this work under step "A" above. C. Individual petitions shall be prepared for distribution by the proponent(s), to include the following: I. Statement of request to form UUD (Exhibit 'C'), which includes a preliminary estimate of the cost to construct improvements and a cost per parcel, if so distributed. A range of costs shall be provided where parcel size, topography, mixed land use, etc., make per-parcel distribution infeasible. H. Legal description of the properties included within the boundary of the proposed UUD. HI. Map showing the location and boundaries of the proposed UUD and a vicinity map showing its general location. 06/25/98-MEY

5 LAKEHAVEN UTILITY DISTRICT DOCUMENT: SECTION: SUBSECTION: GENERAL POLICY DEVELOPMENT ENGINEERING UUD POLICY /PROCEDURES NO ISSUE DATE: 07/23/98 REVISION DATE: NIA APPROVAL: RESOLUTION NO. PAGE NUMBER 30[8 iv. UUD fonnation sequence of events (Exhibit 'D'). v. Notice to petition signers (Who may sign the petition?) (Exhibit 'E') vi. Vll. Individual signature page (Exhibit 'F'). Sample corporate authorization (Exhibit 'G'). D. If a sufficient number of signatures on petitions are returned (representing 51% or more of the land area within the proposed boundaries), signatures are verified and the Board of Commissioners may certify the petitions, declare their intent to form the UUD by resolution and provide such other infonnation as required by law. E. Preliminary assessment roll is prepared using the property descriptions and legal owners (tax payers) on file with the King County Assessor's Office to distribute the total estimated project assessment among the benefitting properties in proportion to the benefit conferred. F. Notice of the formation hearing (Exhibit 'H') and preliminary assessment amounts (Exhibit '1') are mailed to property owners within the UUD boundaries at least fifteen (15) days prior to the hearing date. An affidavit of mailing shali be completed by the responsible District staff member or consultant (Exhibit' J'). G. Notice of the fonnation hearing (Exhibit 'K') is mailed to all property owners located within a 330 foot radius of the UUD boundaries at least fifteen (15) days prior to the hearing date. An affidavit of mailing shall be completed by the responsible District staff member or consultant (Exhibit 'L'). H. Notice of the formation hearing (Exhibit 'M') is advertised in two consecutive issues of a newspaper of general circulation in the area, the date of first publication to be at least fifteen (15) days prior to the hearing date. 1. The formation hearing (Exhibit 'N' - Agenda) is held at the appointed date and time with written and oral comments or objections accepted from any affected person. 06/25/98-MEY

6 LAKEHAVEN UTILITY DISTRICT DOCUMENT: SECTION: SUBSECTION: GENERAL POLICY DEVELOPMENT ENGINEERlNG ULID POLICYIPROCEDURES NO ISSUE DATE: 07/23/98 REVISION DATE: N/A APPROVAL: RESOLUTION NO. PAGE NUMBER 40f8 1. Opponents' properties are identified on the preliminary assessment map at the formation hearing and the percentage of protest is calculated and provided for the record. K. Property owners within the UUD petition boundary who believe that they are not benefited by the proposed improvements may request in writing to the Board that their property be removed from the DUD. If their request is accepted by the Board, the property owner will be required to sign a legal release that will be recorded against the property (See Policy No ). L. Following the thirty (30) day appeal period, the Board will consider all comments received and may then proceed to form the UUD with the boundary as petitioned, or as modified after deleting such properties as the Board believes appropriate, or the Board may vote to terminate the project. If the project is terminated by the District, no assessment or cost will be levied as an obligation on the properties within the proposed UUD. However, if a subsequent UUD forms for the area, costs from the previous process may be collected. M. Engineering plans and specifications will be completed. N. Easements will be secured where necessary for the installation of facilities and the required permits will be obtained. O. The work will be publicly advertised for construction and the lowest responsive, responsible bid amount compared with the estimate. P. Financing will be reviewed and costs to the property owners will be revised accordingly. Q. The contract will be awarded to the lowest responsive, responsible bidder and the project will be constructed. R. Final project costs will be determined and distributed among the benefited properties through the final assessment roll, incorporating such ownership, property descriptions, and methodology revisions as are deemed appropriate by the Board. 06/25/98-MEY

7 LAKEHAVEN UTILITY DISTRICT DOCUMENT: SECTION: SUBSECTION: APPROVAL: GENERAL POLICY DEVELOPMENT ENGINEERING ULID POLICYIPROCEDURES RESOLUTION NO NO ISSUE DATE: 07/23/98 REVISION DATE: N/A PAGE NUMBER 50f8 S. A public hearing shall be advertised (Exhibit '0') and notices (Exhibit 'P') shall be mailed to all participants inviting their comments or protests regarding the final assessment roll. T. The public hearing (Exhibit 'Q' - Agenda) shall be held at the appointed date and time and all comments or protests shall be heard. U. The Board shall incorporate such adjustments to the final assessment roll as it believes appropriate and confirm the roll by resolution. '. V. Legal notice (Exhibit 'R') of the assessment roll confirmation will be published and any appeals through Superior Court will be considered ( ). w. The assessment roll will be filed with the County Treasurer for collection (Exhibit'S'), sale of bonds may be authorized, and property owners shall be notified that the system is available for connection (Exhibit 'T'). X. Assessment payments will begin one year later and continue annually for twenty (20) years at the interest rate set by the Board at the time the final assessment roll was prepared. If full payment is made within thirty (30) days of notification, no interest will be assessed. The county also assesses an administrative fee, limited by statute. III. Resolution Method: A. If sufficient interest is indicated (owners representing 80% or more of the land area within the proposed boundaries), staff recommends formation and the Board of Commissioners may declare their intent to form the UUD by resolution fixing the date, time and place for the formation hearing, to be held not less than thirty (30) days nor more than ninety (90) days from the date of the resolution, and authorize staff to proceed with notification as required by law. B. Preliminary assessment roll is prepared using the property descriptions and legal owners (tax payers) on file with the King County Assessor's Office to distribute the total estimated project assessment among the benefitting properties in proportion to the benefit conferred. 06/25/98-MEY

8 LAKEHAVEN UTILITY DISTRICT DOCUMENT: SECTION: SUBSECTION: APPROVAL: GENERAL POLICY DEVELOPMENT ENGINEERING ULID POLICYIPROCEDURES RESOLUTION NO NO ISSUE DATE: 07/23/98 REVISION DATE: N/A PAGE NUMBER 60f8 C. Notice of the formation hearing (Exhibit 'H') and preliminary assessment amounts (Exhibit '1') are mailed to property owners within the UUD boundaries at least fifteen (15) days prior to the hearing date. An affidavit of mailing shall be completed by the responsible District staff member or consultant (Exhibit '1'). D. Notice of the formation hearing (Exhibit 'K') is mailed to all property owners located within a 330 foot radius of the UUD boundaries at least fifteen (15) days prior to the hearing date. An affidavit of mailing shall be completed by the responsible District staff member or consultant (Exhibit '1.'). F. E. Notice of the formation hearing (Exhibit 'M') is advertised in two consecutive issues of a newspaper of general circulation in the area, the date of first publication to be at least fifteen (15) days prior to the hearing date. The formation hearing (Exhibit 'N' - Agenda) is held at the appointed date and time with written and oral comments or objections accepted from any affected person. A ten (10) day appeal period following the hearing is recognized for the filing of formal written protests only. G. Opponents' properties are identified on the preliminary assessment map at the formation hearing and the percentage of protest is calculated and provided for the record. H. Property owners within the UUD petition boundary who believe that they are not benefited by the proposed improvements may request in writing to the Board that their property be removed from the UUD. If their request is accepted by the Board, the property owner will be required to sign a legal release that will be recorded against the property (See Policy No ). 1. The Board will consider all comments received and, if there is protest from owners representing less than forty percent (40%) of the land area within the proposed boundaries, may then adopt a resolution forming the UUD with the boundary as petitioned, or as modified after deleting such properties as the Board believes appropriate, or the Board may vote to terminate the project. If formed, a thirty (30) day appeal period is then recognized. Such appeal must be made through Superior Court. If the project is terminated by the District, no assessment or cost will be levied as an obligation on the properties within the proposed UUD. However, if a subsequent UUD forms for the area, costs from the previous process may be collected. 06/25/98-MEY

9 LAKEHAVEN UTILITY DISTRICT DOCUMENT: SECTION: SUBSECTION: GENERAL POLICY DEVELOPMENT ENGINEERING ULiD POLICY /PROCEDURES NO ISSUE DATE: 07123/98 REVISION DATE: N/A APPROVAL: RESOLUTION NO. PAGE NUMBER 70f8 J. K. If the Board orders the project to proceed, staff requests authorization proceed with final design and construction. Engineering plans and specifications will be completed. to L. Easements will be secured where necessary for the installation and the required permits will be obtained. of facilities M. N. o. P. The work will be publicly advertised for construction bids and the lowest responsive, responsible bid amount compared with the estimate. Financing will be reviewed and costs to the property owners will be revised accordingly. The contract will be awarded to the lowest responsive, responsible and the project will be constructed. bidder Final project costs will be determined and distributed among the benefited properties through the final assessment roll, incorporating such ownership, property descriptions, and methodology revisions as are deemed appropriate by the Board. Q. A public hearing shall be advertised (Exhibit '0') and notices (Exhibit 'P') shall be mailed to all participants inviting their comments or protests regarding the final assessment roll. R. The public hearing (Exhibit 'Q' - Agenda) shall be held at the appointed date and time and all comments or protests shall be heard. S. The Board shall incorporate such adjustments to the final assessment roll as it believes appropriate and confirm the roll by resolution. T. Legal notice (Exhibit 'R') of the assessment roll confirmation will be published and a ten (10) day appeal period will be recognized. Appeal shall be in the form of a formal written protest. Any further appeal shall be to Superior Court. u. The assessment roll will be filed with the County Treasurer for collection (Exhibit'S'), sale of bonds may be authorized, and property owners shall be notified that the system is available for connection (Exhibit 'T'). 06/25/98-MEY

10 LAKEHAVEN UTILITY DISTRICT DOCUMENT: SECTION: SUBSECTION: AFPROV AL: GENERAL POLICY DEVELOPMENT ENGINEERING ULID POLICYIPROCEDURES RESOLUTION NO NO ISSUE DATE: 07/23198 REVISION DATE: N/A PAGE NUMBER 8 of8 V. Assessment payments will begin one year later and continue annually for twenty (20) years at the interest rate set by the Board at the time the final assessment roll was prepared. If full payment is made within thirty (30) days of notification, no interest will be assessed. The county also assesses an administrative fee, limited by statute. 06/25/98-MEY

11 UTILITY LOCAL IMPROVEMENT DISTRICTS QUESTIONS AND ANSWERS The following questions have been raised during the formation of previous Utility Local Improvement Districts (UUDs). In an effort to inform affected residents prior to the formation of a UUD, Lakehaven Utility District has prepared the following answers. Where in conflict with state law, state law will control. It is advised that you consult with your own attorney. If your questions are not answered after reading this information, please contact the District at (253) QUESTION: How is the project financed? ANSWER: Lakehaven Utility District finances the project through utilization of existing funds or through the sale of municipal bonds. The property owners then pay the cost of the water and/or sewer improvements through assessments against their property. 2. QUESTION: How are the assessments established? ANSWER: Prior to the formation hearing, preliminary engineering is performed to establish the estimated total project cost and assessment to be charged for each property within the project. During the preliminary engineering work, one or more construction layouts are developed. These alternative layouts are analyzed for their capability to provide service to the properties involved, for their relative cost comparisons, maintenance and operation cost and total project cost. Final pipeline locations are not selected in this preliminary stage. Once design is complete and construction amounts are more fully known, the District will file an assessment roll with King County showing the amount to be collected from each parcel. Before becoming final, the District will both mail and publish in the newspaper a notice that the roll has been filed and is open for inspection at the District's office. The notice will also state that a public hearing will be held, at which protests filed on any assessments will be considered. After the hearing, the District will adopt a final roll, which may reflect an increase, decrease or no change at all from the original roll. 3. QUESTION: How and when are the final pipeline locations established? ANSWER: At UUD hearings, property owners' input is requested to aid the District and engineering in the final design. During the final design, investigations are made on the preliminary alternates to develop sufficient detail to select the best layout meeting District standards. This selected alternative will be investigated, modified or adjusted due to items such as easement requirements side sewer requirements, cost minimization and other significant factors such as road restoration and environmental disturbances. If you have a concern regarding the location of the pipeline on your property, please contact the District. 4. QUESTION: How are assessments computed? ANSWER: There are many methods, but the guiding factor is equitable distribution. Assessments can be computed on a front footage basis, a per lot basis, a land area basis, method called zone and termini or a combination of these. Page 1 EXHIBIT "A" 06/25/98-MEY

12 4. ANSWER (continued) A. Front footage - The irregular shape of some lots and properties requires that a computation be made to establish an equivalent rectangle. The equivalent rectangle is then used to determine the front footage. The front footage is then multiplied by the assessment rate for the project for the total assessment per parcel. Comer lots having frontage on more than one street are only assessed on the narrow side to a depth of 250 feet. Since most properties are regular in shape (that is rectangular) most properties will be relatively easy to compute. If your property is complex in shape and computation, please contact the District for specific questions and answers. B. Per lot basis - The total project cost is divided by the number of lots to be served. This method is typically not used in UUDs involving large lots. C. Zone and termini for mixed size lots or irregular shaped parcels - The total cost is distributed by zones, with the zones closer to the water and/or sewer facilities having a higher per square foot weight of benefit received. D. The District's Capital Facilities Charge may be included in the assessment for purposes of financing at the option of the property owner. This charge is currently $2, per Equivalent Residential Unit (ERU) for water and $2, per ERU for sewer. The property owner will be required to sign a waiver, recognizing that the amount assessed for the Capital Facilities Charge shall not be included in the total assessment amount for determination of special benefit. 5. QUESTION: If the UUD is terminated, will the property owners be obligated to any costs? ANSWER: No. If the project is terminated by the District, no assessment or cost will be levied as an obligation on the properties within the proposed UUD. However, if a subsequent UUD forms for the area, costs from the previous process may be collected. 6. QUESTION: If the project is terminated by the District, how can the project be reinstated? ANSWER: Once termination has occurred, the entire UUD formation procedure must be started over from the beginning. 7. QUESTION: How do I pay my assessment? ANSWER: The assessment is generally filed with King County near the time that construction commences. At the time of filing, King County notifies all of the assessed property owners of the assessment being filed and provides two methods by which to pay the assessment. A. The first method is full payment in cash within thirty (30) days of notification. If so paid, no interest charges will be applied. Page 2 EXHIBIT "A" 06/25/98-MEY

13 7. ANSWER (continued) B. The second method allows the assessment to be financed over twenty (20) years and collected by King County. The first installment will be due approximately one year from notification of the assessment filing. Each year, one-twentieth (1/20) of the principal amount plus simple interest on the unpaid principal balance will be due. The interest charge will be established by the Board of Commissioners at the time the fmal assessment roll is prepared. The county typically sends the statements out approximately 2 to months prior to the due date. The county also assesses an administrative fee, limited by statute. NOTE: All UUD payments can only be made to King County, not Lakehaven Utility District QUESTION: What is the monthly service charge after the project is installed? ANSWER: Monthly service charges are subject to periodic change under the authority of the Board of Commissioners. The current charges are as follows: SEWER: All existing residenceslbusinesses will pay the base monthly service charge, which currently is $9.17. When the property connects to the sewer system, consumption charges will be added. The current consumption charge, based on water used, is $1.42 per 100 cubic feet. WATER: Monthly service charges for water are based on size of the meter, tiered level of consumption, use class and actual consumption during the winter and summer. Please contact the District to determine the charges for your specific use. QUESTION: When do I have to start paying the monthly service charge? ANSWER: Approximately thirty (30) days after the system is ready for use and the District has notified you of its readiness, the monthly sewer service charge will be applicable. Monthly service charges for water do not commence until the meter is installed. 10. QUESTION: What easements are necessary for the project? ANSWER: Generally, the water or sewer lines are installed within streets and rights-ofway. When construction necessitates installing pipelines on private property, a permanent easement is needed by the District. The permanent easement gives the District the right to install and maintain the water or sewer line on private property. The easement restricts construction of permanent structures over the pipelines. However, surface usage such as landscaping, driveways, etc., are generally permitted. The District requires that full restoration of your property be made by the contractor. Should the District ever have to re-excavate to maintain the pipeline, full restoration of your property will be made. Temporary construction easements are also needed for the project when it is found that the contractor activities will necessitate encroachment on private property. The temporary easement, however, is only for the period of construction and, as with the permanent easement, requires full restoration of your property by the contractor. Upon completion of the project, the temporary easement will no longer be valid. Page 3 EXHIBIT "A" 06/25/98-MEY

14 11. QUESTION: How does the District obtain easements? ANSWER: The District obtains the easements through negotiation with individual affected property owners. Because the cost of easement acquisition is borne by the UUD and therefore by property assessments, the District desires to obtain the easements without cost, which in turn will minimize the assessment costs of all UUD properties. Full property restoration is required in all cases. The District does have the right to acquire the easement, failing successful negotiations, by way of condemnation. Since condemnation is expensive to the project, it is only used as a last resort to obtain easements. 12. QUESTION: What will happen to the streets and roads due to the construction project? ANSWER: Any construction disturbance occurring to the roads because of the pipeline installation will be corrected to restore the roads to at least as good or better than the condition prior to the project. 13. QUESTION: Where does the District install the stub to which I connect my side sewer? ANSWER: The District terminates its construction inside your property line or the edge of the easement. During construction, where possible, an effort is made to install the stub at the owner's requested location. 14. QUESTION: What construction is the property owner responsible for after the District has constructed the pipelines? ANSWER: SEWER: The property owner must install a side sewer from the District's stub at the property line to the plumbing drain of the residence. In some instances, pumps might be necessary. The property owner is responsible for the cost of the side sewer, which may be installed by the owner or by a side sewer contractor. The District estimates that this construction may cost from $1, to $1,500.00, depending on length of the side sewer, accessibility (need to dig by hand), property restoration required, abandonment of existing septic tank, etc. It is recommended that the property owner secure at least three (3) bids from reliable contractors for any work which will be performed by the contractor. The District can provide you with a list of contractors who have posted insurance and bonding with the District. NOTE: A side sewer permit must be obtained from the District by the owner or his contractor at a present cost of$ for residential permit or $ for non-residential permit. Page WATER: The property owner must install a building supply line from the District's water meter at the property line to the residence. The property owner is responsible for the cost of the building supply line, which may be installed by the owner or by a utility contractor. The District estimates that this construction may cost from $2.00 to $4.00 per lineal foot of pipe. It is recommended that the property owner secure at least three (3) bids from reliable contractors for any work which will be performed by the contractor. 4 EXHIBIT "A" 06/25/98-MEY

15 15. QUESTION: Can assessments be deferred? ANSWER: Special assessments and/or property taxes can be deferred under King County Administrative Code, Chapter 84.38, for persons meeting the age and income limits under said code. Sewer assessments may also be deferred by exemption under District Policy No , "Exemption for Functioning Septic System Within a Sewer UUD." Under this policy, the property owner must provide evidence of passing a Seattle/King County Health Department sanitary survey and complete and sign the District's "Request for Property to be Excluded from UUD." The owner acknowledges that the District makes no promise that sewerage capacity will be available for future connection.of the property. If sewer connection is requested in the future, the property owner will pay a special connection charge in an amount equal to the amount that would have been assessed under the UUD, plus interest at a rate to be determined by the District, in addition to all applicable fees and charges of the District in force at time request for connection is made. 16. QUESTION: What is the affect on properties outside the UUD, where sewer has been constructed within 330 feet of such properties? ANSWER: Properties located within 330 feet of existing sewer lines may be required by the Health Department to connect to the sewer upon failure of an existing septic system or upon application for a building permit for vacant property. Some mortgage companies also require connection to the sewer, when it is readily available, as a condition of sale or refinancing. If there are circumstances which are unique to your property or which have not been addressed above, please feel free to contact the District at (253) Page 5 EXHIBIT" A" 06/25/98-MEY

16 UUD PROCESS GUIDELINES APPROXIMATE TIME FRAME 1. DISTRICT IS CONTACTED N/A Interested individuals contact the District about bringing sewer or water into a particular area. If it appears that there are enough people interested in obtaining sewer or water service, petitions are prepared. 2. PETITIONS ARE CIRCULATED VARIES 3. Petitions are forwarded to the requesting party (Petitioner). The Petitioner circulates the petitions throughout the area identified in the petitions. When sufficient signatures have been secured, the petitions are returned to the District for certification. There must be at least fifty-one percent (51 %) of the area ownership represented on the petitions. BOARD OF COMMISSIONERS CERTIFICATION 1-2 Months District staff will review the petitions for compliance with 51% representation. If said representation is met, the petitions are presented to the Board of Commissioners for certification. The Board will take action on the petitions and direct staff to proceed with preliminary design. 4. FORMATION HEARING 4-8 Months A consultant or in-house engineer is selected to prepare the preliminary survey, design layout, cost estimate and breakdown of assessments by affected parcel. The Board then sets the date and time for the Formation Hearing (Intent to Form a DUD) and a notice of said hearing is sent to each property owner within the petitioning area with the preliminary assessment amount, as well as property owners outside the petitioning area who are impacted by the proposed construction. The Formation Hearing is usually held in the evening. Page 1 EXHIBIT "B" 06/25/98-MEY

17 4. FORMATION HEARING (cont'd) Depending upon the level of protest or support exhibited at the Formation Hearing, the UUD boundaries may remain, be reduced, or the UUD may be terminated at this point by the Board of Commissioners. 5. BOARD CERTIFIES UUD FORMATION 0-1 Month Following the Formation Hearing, and if the Board decides to proceed, a protest period of thirty (30) days is established. Upon expiration of the protest period, and the extend and resolution of protests received, the Board may authorize the UUD to proceed. 6. FINAL DESIGN OF PROJECT 4-12 Months 7. Final plans are completed, permits and approvals are secured, and easements are obtained. The construction bidding process is then initiated. The assessment roll is adjusted to reflect the lowest responsive, responsible construction bid and the date for a public hearing is set. ASSESSMENT ROLL HEARING 2-4 Months 8. A notice is sent to impacted property owners, informing them of the date and time of the Assessment Roll Hearing. Following this hearing, a ten (10) day appeal period is established. The final assessment roll is then filed. (This hearing may be conducted following completion of construction. ) CONSTRUCTION 6-12 Months The construction bid is awarded and construction begins on the project. When construction is complete, property owners are notified of the availability to connect and monthly service charges commence. The average UUD process is completed within one-and-one-half(l-1/2) to three (3) years-from request for petitions through construction. Some UUD's may take longer due to easement acquisition, delays, multiple routing of petitions, etc. Page 2 EXHIBIT "B" 06/25/98-MEY

18 PETITION FOR FORMATION OF UTILITY LOCAL IMPROVEMENT DISTRICT TO: The Honorable Board of Commissioners Lakehaven Utility District P. O. Box 4249 Federal Way, WA We, the Wldersigned, being the owners according to the records of King COWlty, Washington, of at least 51 percent of the area of land within the limits of the proposed utility local improvement district (DUD), hereinafter described, do respectfully petition, as follows: I. That a UUD be formed, comprising all land and properties located within the bowldaries hereinafter described. Should other communities, not necessarily contiguous, also petition to form a UUD, a single UUD may be formed. 2. That the Board of Commissioners order the preparation of a design providing for additions and betterments to the general comprehensive plan for a system for the District, said improvements to consist of a system of pipelines and all necessary appurtenances thereto, adequate to provide for all land within the proposed UUD (the territorial extent of such proposed improvement to be the same as that of the proposed UUD), together with necessary facilities for such area in accordance with the requirements of the public regulatory agencies; then to construct and install said facilities. 3. That the District levy special assessments Wlder a mode of annual installments extending over a period not exceeding twenty years on all property specially benefited by such local improvements on the basis of the special benefits to pay in whole or in part the damages or costs of such local improvements. 4. That the District assume ownership of the completed facilities, then operate and maintain the system in accordance with the requirements of the public regulatory agencies and charge the benefited properties an equitable rate to defray these ongoing costs. 5. A preliminary estimate of the total cost for the improvements to be constructed by this UUD is $. The actual, final cost for these improvements is not known and may be greater or lesser than this preliminary estimate. In any event, the benefited property owners will pay 100 percent of the total cost of these improvements, less any grant funds that may be secured and assisted by programs as may be available. Based on the preliminary estimate, each single family property would be assessed approximately $, which may change once final costs are known, and a Capital Facilities Charge for an equitable share of the District's regional facilities (e.g., treatment plants, pump stations, main trunk lines, wells, tanks, main transmission lines etc.). 6. A legal description of the bowldaries of the proposed UUD and map showing the location thereof are attached hereto. EXHIBIT "C" 06/25/98-MEY

19 uun FORMATION Once the signed petitions have been presented, the usual sequence of actions commence with some of the principal events summarized below: 1. The District Board of Commissioners (Board) determines whether the petition signatures are sufficient, and if so, declares their intent to form the UUD by fixing the date, time and place for the formation hearing based on the estimated project cost developed through preliminary engineering and the proportionate amount to be assessed against the total properties, usually all costs not funded by grants. 2. Preliminary assessment roll is prepared using the property descriptions and legal owners on file with the King County Assessor's Office to distribute the total estimated project assessment among the benefiting properties in proportion to the benefit conferred, then mailed to owners of record. 3. Public hearing regarding formation of the proposed UUD is duly advertised and held with written and oral comment or objections accepted from any affected person. Costs and assessments are not specifically considered at this stage, since only estimates are available. 4. Property owners within the ULID petition boundary who believe that they are not benefited by the proposed improvements may request in writing to the Board that their property be removed from the ULID. If their request is accepted by the Board, the property owner will be required to sign a legal release that will be recorded with the property title. 5. The Board will consider the comments received and may then proceed to form the ULID with the boundary as petitioned or modified after deleting such properties as the Board believes appropriate, and order the proposed improvements to proceed under such interim financing as may be necessary. 6. Engineering plans and specifications will be completed. 7. Easements will be obtained where necessary for the installation of facilities and the required permits obtained. 8. The work will be publicly advertised for construction bids and bid results compared with the estimate. 9. Financing will be reviewed and costs to the property owners will be revised accordingly. 10. The contract will be awarded to the lowest responsive, responsible bidder and the project will be built. Page 1 EXHIBIT "n" 06/25/98-MEY

20 11. Final project costs will be detennined and distributed among the benefited properties through the final assessment roll, incorporating such ownership, property descriptions, and methodology revisions as are deemed appropriate by the Board. 12. The final public hearing will be advertised and duly held to hear comment or protest regarding the final assessment roll. I3 After review of the hearing comments, the Board will incorporate such adjustments to the final assessment roll as it believes appropriate, then confirm the roll by resolution. 14. Legal notice of the assessment roll confirmation will be published and any appeals will be considered. 15. The assessment roll will be filed with the County Treasurer for collection, sale of the bonds will be authorized, and permission granted to allow connection of individual properties to begin. 16. Payments would begin one year later and continue annually for a period not to exceed 20 years at the interest rate set by the Board. Time frames for many of these actions are specific in the state law. A relatively straightforward UUD can be formed in about six months. A complex OLIO will take longer. Page 2 EXHIBIT "D" 06/25/98-MEY

21 WHO MAY SIGN THE PETITION? NOTICE TO PETITION SIGNERS Only the owners of property within the described bowldaries of the petition, as follows: 1. The owner of record according to the records of COWltyAuditor. Usually this will be husband and wife unless the property is owned individually. Either husband or wife may sign. 2. In case of mortgaged property, the mortgagors (debtors) may sign. 3. In case of a recorded purchase contract, the purchasers, as shown by COWlty Auditor, may sign. 4. Any officer of a corporation owning property, provided that a certified authorization of the corporation is attached. The applicable statute is RCW (4) which reads as follows: "Any officer of a corporation owning land in Lakehaven Utility District duly authorized to execute deeds or encumbrances on behalf of such corporation, provided that there shall be attached to the petition a certified excerpt from the bylaws showing such authority." The excerpt from the corporate bylaws should be certified as being a true excerpt by the corporate officer who has custody of the original bylaws. Normally this is the Secretary of the corporation. 5. In case of an estate, the signature of the executor, administrator or guardian IS sufficient. Should you have additional questions, please call the Lakehaven Utility District office at (253) (Technical Services). Board of Commissioners Lakehaven Utility District P. O. Box 4249 Federal Way, Washington EXHIBIT "E" 06/25/98-MEY

22 PETITION SIGNATURES IMPORTANT NOTICE To Potential Signers of the Attached Petition: SUBJECT TO CERTAIN APPEAL RIGHTS SPECIFIED UNDER STATE LAW, ONCE THE PETITION IS ACCEPTED BY THE DISTRICT, YOU CANNOT WITHDRAW YOUR SIGNATURE, NOR WILL YOUR SUBSEQUENT SIGNATURE ON A PROTEST PETITION BE CONSIDERED VALID. NOTICE OF A FORMATION HEARING AND PRELIMINARY COST ESTIMATE WILL BE MAILED TO PROPERTY OWNERS ON RECORD WITH KING COUNTY AT LEAST 15 DAYS PRIOR TO BOARD DECISION ON CREATION OF THE UTILITY LOCAL IMPROVEMENT DISTRICT. PLEASE PRINT NAME AND ADDRESS LEGAL DESCRIPTION OF PROPERTY (LOT NO. AND SUBDIVISION NAME) SIGNATURE(S) OF OWNER(S) (Attach legal description if additional space is needed) NOTE: If signing on behalf of a corporation or company, please copy the attached authorization onto your company's letterhead and attach the completed form to this petition. EXHIBIT "F" 06/25/98-MEY

23 m ~ _(,company (put this or similar acceptable authorization on your company or corporate letterhead) CORPORATE OR COMPANY RESOLUTION or corporate name) Time: Date: _ The Corporation or Company hereby authorizes to sign the petition for formation of a local improvement district for improvements for the properties located at IN WITNESS WHEREOF, said corporation has caused this instrument to be executed by its proper officers and its corporate seal to be hereunto affixed this day of, _ STATEOFWASHINGTON ) ) ss. County of ) By By President Secretary I certify that I know or have satisfactory evidence that and _signed this instrument, on oath stated that thev were authorized to execute the instrument and that the seal affixed is the corporate seal of said corporation, and acknowledged it as the President and Secretary of ~, to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. DATED: ~ _ Notary Public Title My appointment expires _ EXIllBIT "G" 06/25/98-MEY

24 NOTICE OF HEARING ON RESOLUTION OF INTENTION TO FORM UTILITY LOCAL IMPROVEMENT DISTRICT NO. Lakehaven Utility District King County, Washington NOTICE OF THE ADOPTION BY THE BOARD OF COMMISSIONERS OF LAKEHA VEN UTILITY DISTRICT, KING COUNTY, WASHINGTON, OF A RESOLUTION OF INTENTION TO FORM UTILITY LOCAL IMPROVEMENT DISTRICT NO. AND SETTING A TIME AND PLACE FOR A PUBLIC HEARING THEREON. NOTICE IS HEREBY GIVEN that on the day of,, the Board of Commissioners of Lakehaven Utility District, King County, Washington, did pursuant to petition of property owners therein, adopt Resolution No. setting forth said Board's intention to form Utility Local Improvement District No., the boundaries thereof being described on Exhibit "A" attached hereto and incorporated herein by reference. Formation of said Utility Local Improvement District shall be for the purpose of providing service to land within its boundaries. NOTICE IS FURTHER GIVEN that the total estimated cost of said proposed improvements is in the approximate sum of$ of which approximately % shall be borne by assessments. Attached as Exhibit "B" to this Notice is the preliminary assessment calculation for your property, as such ownership has been determined by records of the King County Assessor's Office. The actual assessment to your property may vary from assessment estimates, so long as it does not exceed a figure equal to the increased true and fair value the improvement adds to the property. NOTICE IS FURTHER GIVEN that a public hearing on the formation of the proposed Utility Local Improvement District shall be held before the Board of Commissioners at p.m. on the day of,, at the District's regular meeting place, Lakehaven Center, st Avenue South, Federal Way, Washington. All persons desiring to object to the formation of the proposed district may speak at the hearing and/or file written protests with the Secretary of the Board of Commissioners at the Lakehaven Utility District Office, st Avenue South, P.O. Box 4249, Federal Way, WA , at or before the time fixed for said public hearing. In making its determination, the Board of Commissioners shall consider all testimony presented and all documents submitted at the formation hearing of the ULID. The names of the property owners within the proposed Utility Local Improvement District are available for public inspection at the District office, address above, Monday through Friday, between the hours of8:00 a.m. and 5:00 p.m., Secretary Board of Commissioners Lakehaven Utility District King County, Washington EXHIBIT "H" 06/25/98-MEY

25 EXHffiIT "B" LAKEHA VEN UTILITY DISTRICT PRELIMINARY ASSESSMENT ROLL ULID NO. DATE: PROPERTY OWNER: TAX NUMBER: SITE ADDRESS: LEGAL DESCRIPTION: Property Area (Square Footage): Property Zone and Termini Units: ASSESSMENT: Facilities by *Method*,. PRELIMINARY Administrative by *Method*. TOTAL.. EXHIBIT "I" 06/25/98-MEY

26 AFFIDAVIT OF MAILING STATE OF WASHINGTON ) )ss. County of King ) I,, being first duly sworn on oath, depose and say: That I am an employee of the Lakehaven Utility District of King County, Washington; that on the day of, I mailed to the owners of the real property of Utility Local Improvement District No. of the Lakehaven Utility District, as shown on the tax rolls of the County Treasurer of King County, Washington, a written Notice of the Resolution of Intent to Form Utility Local Improvement District No., that said notice was in the form attached hereto and by the references made a part hereof as though set forth above; that said notices so mailed were enclosed in an envelope deposited in the United States Mail, postage prepaid, and addressed to each such owner, on the date first above mentioned, a date at least fifteen days prior to the date of hearing of which notice was given, to wit: Number of notices sent: (Signature) Subscribed and sworn to before me this day of. _ Notary Public My commission expires: _ EXHIBIT "J" 06/25/98-MEY

27 NOTICE OF HEARING ON RESOLUTION OF INTENTION TO FORM UTILITY LOCAL IMPROVEMENT DISTRICT NO. Lakehaven Utility District King County, Washington NOTICE OF THE ADOPTION BY THE BOARD OF COMMISSIONERS OF LAKEHA VEN UTILITY DISTRICT, KING COUNTY, WASHINGTON, OF A RESOLUTION OF INTENTION TO FORM UTILITY LOCAL IMPROVEMENT DISTRICT NO. AND SETTING A TIME AND PLACE FOR A PUBLIC HEARING THEREON. NOTICE IS HEREBY GIVEN that on the day of,, the Board of Commissioners of Lakehaven Utility District, King County, Washington, did pursuant to petition of property owners therein, adopt Resolution No. setting forth said Board's intention to form Utility Local Improvement District No., the boundaries thereof being described on Exhibit "A" attached hereto and incorporated herein by reference. Formation of said Utility Local Improvement District shall be for the purpose of providing service to land within its boundaries. While your property is not within the boundaries of the ULID, the District is obligated to provide you Notice of the public hearing pursuant to RCW NOTICE IS FURTHER GIVEN that the total estimated cost of said proposed improvements is in the approximate sum of $ of which approximately % shall be borne by assessments. The actual assessment may vary from assessment estimates so long as it does not exceed a figure equal to the increased true and fair value the improvement adds to the property. Local Improvement District shall be held before the Board of Commissioners at p.m. on the NOTICE IS FURTHER GIVEN that a public hearing on the formation of the proposed Utility day of,at the District's regular meeting place, Lakehaven Center, st Avenue South, Federal Way, Washington. All persons desiring to object to the formation of the proposed district may speak at the hearing and/or file written protests with the Secretary of the Board of Commissioners at the Lakehaven Utility District Office, st Avenue South, P.O. Box 4249, Federal Way, WA , at or before the time fixed for said public hearing. In making its determination, the Board of Commissioners shall consider all testimony presented and all documents submitted at the formation hearing of the ULID. The names of the property owners within the proposed Utility Local Improvement District are available for public inspection at the District office, address above, Monday through Friday, between the hours of 8:00 a.m. and 5:00 p.m., Secretary Board of Commissioners Lakehaven Utility District King County, Washington EXHIBIT "K" 06/25/98-MEY

28 AFFIDAVIT OF MAILING STATE OF WASHINGTON ) ) 88. County of King ) I,, being first duly sworn on oath, depose and say: That I am an employee of the Lakehaven Utility District of King County, Washington; that on the day of, I mailed to the owners of the real property adjacent to Utility Local Improvement District No. of the Lakehaven Utility District, as shown on the tax rolls of the County Treasurer of King County, Washington, a written Notice of the Resolution ofintent to Form Utility Local Improvement District No., that said notice was in the form attached hereto and by the references made a part hereof as though set forth above; that said notices so mailed were enclosed in an envelope deposited in the United States Mail, postage prepaid, and addressed to each such owner, on the date first above mentioned, a date at least fifteen days prior to the date of hearing of which notice was given, to wit: Number of notices sent: ~~_ (Signature) Subscribed and sworn to before me this day of ~ ~ Notary Public My commission expires: _ EXHIBIT "L" 06/25/98-MEY