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HomeMy WebLinkAboutHearing Port Ludlow Drainage Assessment Department of Public Works O Regular Agenda Page 1 of 2 Jefferson County Board of Commissioners Agenda Request To: Board of Commissioners Mark McCauley, County Administrator From: Monte Reinders, PE, Public Works Director Agenda Date: August 19, 2024 Subject: Port Ludlow Drainage District Assessment System Ordinance Public hearing Statement of Issue: The Port Ludlow Drainage District was established under the authority of RCW 85.38. A map showing the District boundary is attached. The District currently levies an assessment to fund District activities that was authorized under Jefferson County Ordinance 06-0817-20. RCW 85.38 requires the Board to hold a public hearing to review the Drainage District Assessment System every four years and approve an assessment system on or before September 1. The Drainage District has not requested that the Board revise the existing assessment system. Public Works has prepared a draft ordinance that adopts the existing assessment system. it includes "Appendix 1: Port Ludlow Drainage District Assessment System Calculation Method" that explains how the assessments on individual parcels are calculated. The ordinance is attached for the Board's review and consideration in a public hearing. Analysis/Strategic Goals/Pro's Et Con's: The assessment system is based on the impervious surface area and size of each parcel in the Drainage District. Based on the 2024 District assessment revenue of $70,000, the annual assessment for a single family residence on a half-acre lot would be approximately $65. The County Engineer has reviewed the District's assessment system and determined that it is consistent with RCW 85.38. The County Engineer's report is attached. The District is an independent municipal corporation. The Board's responsibility under RCW 85.38 is solely to review the assessment system to determine if it is fair to District property owners. The Board is not responsible for setting the amount of the District's assessment or budget or for determining District projects. Department of Public Works O Regular Agenda Page 2 of 2 Renewing the District's assessment system will enable the District to continue to provide drainage facilities in Port Ludlow. Fiscal Impact/Cost Benefit Analysis: Drainage District's assessments fund the District's activities. The County does not fund the District. The County is authorized to charge the District for its costs incurred in reviewing and approving the assessment system. The County Treasurer may also impose a fee for collecting the assessments, not exceeding one percent of the assessments. Adopting an assessment system for the District will not have a negative fiscal impact on the County. Recommendation: Prior to the public hearing Public Works will review the Drainage District's assessment system and the draft ordinance with the Board. District representatives will also be present to discuss the assessment system. After the hearing, the Board, at its discretion, could: • Consider the public hearing comments and decide whether to adopt the ordinance, or • Direct Public Works to compile the comments and prepare responses and, if appropriate, prepare recommended revisions to the ordinance or assessment system for consideration by the Board. In either case, the Board must approve a District assessment system ordinance on or before September 1. Department Contact: Monte Reinders, 360-385-9242 Reviewed By: Mark McCaule ounty Administrator Date STATE OF WASHINGTON County of Jefferson In the Matter of } Repealing and Replacing } Ordinance No. 06-0817-20 } Finalizing the Assessment System } For the Port Ludlow Drainage District } ORDINANCE NO. WHEREAS the Port Ludlow Drainage District was established in 2000; and WHEREAS RCW 85.38 requires the Board of Commissioners to finalize the Drainage District assessment system at least once every four years; and WHEREAS the Drainage District assessment system was previously finalized by adoption of Ordinance No. 06-0817-20 in August of 2020; and WHEREAS the Drainage District has not requested that the Board of Commissioners amend the Drainage District assessment system; and WHEREAS RCW 85.38 requires the Board of Commissioners to hold a public hearing prior to finalizing the assessment system; and WHEREAS RCW 85.38 specifies that notice of the public hearing shall be made by publishing two notices in the newspaper of record and by mailing a notice to all Drainage District property owners; and WHEREAS the notice of the public hearing was properly advertised and the Drainage District property owners were individually notified by mail; and WHEREAS a public hearing was held before the Board of County Commissioners on the 19th day of August, 2024; NOW, THEREFORE, BE IT ORDAINED SECTION 1. PURPOSE AND SCOPE The purpose of this Ordinance is to establish the Port Ludlow Drainage District Assessment System to be used to set Drainage District assessments. SECTION 2. AUTHORITY This Ordinance is adopted under the authority conferred on Jefferson County by Chapter 85.38 Revised Code of Washington. SECTION 3. ASSESSMENT SYSTEM The Assessment System shall be as specified in Appendix 1: Port Ludlow Drainage District Assessment System Calculation Method of this Ordinance. Port Ludlow Drainage District Assessment System 1 of 4 SECTION 4. ORDINANCE REVIEW The Assessment System shall be reviewed by the Board of County Commissioners at least once every four years as provided for in Chapter 85.38 Revised Code of Washington. SECTION 5. REPEALER This Ordinance repeals and replaces Ordinance No. 06-0817-20. SECTION 6. SEVERABILITY If any section, subsection, sentence, clause, phrase, or figure of this Ordinance or its application to any person or circumstances is held invalid, the remainder of the Ordinance or the application to other persons or circumstances shall not be affected. EFFECTIVE DATE This Ordinance shall become effective twenty-one (21) days after adoption. APPROVED AND ADOPTED this day of August, 2024. JEFFERSON COUNTY BOARD OF COMMISSIONERS Kate Dean, District 1 Heidi Eisenhour,District 2 Greg Brotherton, District 3 ATTEST: APPROVED AS TO FORM: Carolyn Galloway Philip C. Hunsucker Clerk of the Board Chief Deputy Prosecuting Attorney Port Ludlow Drainage District Assessment System 2 of 4 Appendix 1: Port Ludlow Drainage District Assessment System Calculation Method As provided for in Chapter 85.38 Revised Code of Washington, the Port Ludlow Drainage District Assessment System is designed to generate a hypothetical $1,000 in revenue for the District. The Assessment System determines the amount that each parcel within the District will be assessed per$1,000 of District revenue.The District Commissioners will determine the total annual District assessment and the total amount assessed on each individual parcel through the adoption of the annual District budget. If, as an example, the District budget were set at $70,000, the actual assessment on any parcel would be the amount assigned in the Assessment System multiplied by 70. The Drainage District Assessment System is a combination of two assessments. The first is an assessment on the parcel's land area as a proportion of the total land area within the District. The second is an assessment on the parcel's impervious surface area as a proportion of the total impervious surface area within the District. 35% of the assessment is based on land area, and 65% of the assessment is based on impervious surface area. 35%of the assessment,or$350.00 of the$1,000, is assigned to the land area within the District. The land area portion of the assessment system consists of five Zones(Zone 0,Zone 1,Zone 2,Zone 3,and Zone 4). Zone 0 consists of land areas permanently held in reserve or greenbelt areas that cannot be developed.Zone 1 comprises the majority of the District.It consists of the land areas that can be developed,except for Zones 2,3,and 4. Zone 2 consists of the five-acre residential lots in Port Ludlow No.6 that completely drain into the District.Zone 3 is composed of the five-acre residential lots in Port Ludlow No. 6 that partially drain into the District.Zone 4 consists of the five-acre residential lots in Port Ludlow No.6 that completely drain out of the District.Zone 0 parcels pay 5 percent of the land area assessment.Zone 1 parcels pay 100 percent of the land area assessment.Zone 2 parcels pay 15 percent of the land area assessment.Zone 3 parcels pay 10 percent of the land area assessment. Zone 4 parcels pay 5 percent of the land area assessment. Table 1: Land Area Portion of 2024 Assessment($350.00 of the$1,000 Assessment) Zone Percentage of Land Total Land 2024 Land Area Rate per Total per Zone Area Assessment Area $1,000 Assessment per$1,000 Acres Assessment Zone 0 5% 121.27 =$0.039501 per Acre $4.79 Zone 1 100% 429.03 =$0.790017 per Acre $338.94 Zone 2 15% 32.64 =$0.118503 per Acre $3.87 Zone 3 10% 25.31 = $0.079002 per Acre $2.00 Zone 4 5% 10.16 = $0.039501 per Acre $0.40 Total: $350.00 65%of the assessment,or$650.00 of the$1,000,is assigned to impervious surface area within the District. For the 2024 assessment period,there are 854 single family residences in the District. Based on a random sample of residences, each single family residence (one Equivalent Residential Unit (ERU)) is assigned 3,000 square feet of impervious surface area. There are 123 multi-family residences in the District. Each multi-family residence is assigned 2,250 square feet of impervious surface area(75%of an ERU).There is a calculated total of 3,642,715.63 square feet of impervious surface area in the District.The 65%impervious surface area portion of the$1,000 assessment is equal to$650 divided by the total impervious surface area. For a single family residence this equals approximately $0.54 per $1,000 assessment. Developed commercial properties are based on measured impervious surface area. Port Ludlow Drainage District Assessment System 3 of 4 Table 2: Impervious Surface Area Portion of 2024 Assessment($650.00 of$1,000 Assessment) Property Type Impervious Surface Total Impervious 2024 Impervious Total per Area per Property Surface Area Surface Area Rate Property Type Type(Square Feet) (Square Feet) per$1,000 per$1,000 Assessment Assessment Single Family 3,000 assigned 2,562,000 $0.000178438 per $457.16 Residence Square Foot Multi-Family 2,250 assigned 276,750 $0.000178438 per $49.38 Residence Square Foot Commercial varies 803,966 $0.000178438 per $143.46 Square Foot Total: $650.00 The rates shown in this Appendix have been rounded. The District's assessment database uses the actual data entered into the database,not the rounded rates shown in this example. Parcel Assessment Formula per$1,000 of Drainage District Revenue A parcel's assessment per$1,000 of District revenue is based on the parcel's land area measured in acres, and the area of impervious surface measured in square feet. Parcel Assessment=(Land Area Rate x Parcel Land Area)+(Impervious Surface Area Rate x Impervious Surface Area on the Parcel) Example of Actual Assessment Calculation Using 2024 Values For a single family residence in Zone 1 on a 21,780 square feet parcel of land,with an assigned 3,000 square feet of impervious surface area,the calculation for the Assessment per$1,000 of Drainage District Revenue is: Parcel Assessment per$1,000 of District revenue in 2024= =($0.790017 x 21,780/43,560 Square Feet/Acre)+($0.000178438 x 3,000) =$0.3950085+$0.535314 =$0.9303225 per$1,000 of District Revenue For 2024, the Drainage District Commissioners approved a budget that included $70,000 of District Assessment. The Drainage District Assessment on the example single family residence is: Drainage District Assessment for Example= =$70,000 x$0.9303225/$1,000 District Revenue =70 x$0.9303225 =$65.32575, or rounded to the nearest cent=$65.33 For the 2024 Drainage District Assessment of$70,000, a single family residence in Zone 1 on a 21,780 square feet(0.5 acre)parcel would be assessed approximately$65.33 . Port Ludlow Drainage District Assessment System 4 of d Port Ludlow Drainage District Assessment Methodology County Engineer's Review Port Ludlow Drainage District Background RCW 85.38.160 requires County Commissioners to review the Port Ludlow Drainage District assessment system in a public hearing every four years and approve an ordinance adopting an assessment system on or before September 1. The County Engineer is required to review the assessment system and make a report to the County Commissioners. The Drainage District was formed by a vote of the property owners in north Port Ludlow in 2000. The Board of Commissioners adopted the initial District assessment system in 2001. The Board adopted a revised assessment system in August 2003. The Board readopted that system in 2008, 2012, 2016, and 2020. The assessment system is shown in "Appendix 1: Port Ludlow Drainage District Assessment System Calculation Method" of the draft Ordinance. It is based on impervious surface area and parcel acreage. The District has not requested that Jefferson County amend the assessment system. Assessment System Requirements RCW 85.38.160 requires that Drainage District assessment systems be designed to generate a hypothetical $1,000 of revenue for the District by distributing a portion of the $1,000 to each parcel in the District. The actual assessment for each parcel is determined by the District through its budget. Based on a $70,000 of District revenue for 2024, a typical single family residence on a half-acre parcel would pay approximately$65 annually. County Engineer's Recommendation The Public Works Department has reviewed the Port Ludlow Drainage District assessment system shown in"Appendix 1: Port Ludlow Drainage District Assessment Syste lation Method". It meets the requirements of RCW 85.38.160. Monte Reinders,PE Date Public Works Director/County Engineer J L G1 L I LM rngrj �j`' I61 fir' Morrill it Ev Lq .49 a ++ J f.� 0 ARMS tj 1G •, Fd ►� III _r��4 ' i • _