Loading...
HomeMy WebLinkAboutN-520 - Power of Attorney for Covenant on Utility ServicesCITY OF PASCO ADMINISTRATIVE ORDERS Administrative Order No. 520 Community & Economic Development Subject: Power of Attorney for Covenant on Utility Services (Owner Approval for Annexation) Initial Effective Date: May 1, 2013 Revised Approved The following Administrative Order is effective May 1, 2013 and supersedes Administrative Order No. 15 dated 8/20/79. I. PURPOSE: This order is to establish a process and responsibilities for the securing of Power of Attorney for Covenant on Utility Services documents for the extension or continuation of water or sewer services outside of the corporate City limits. II. POLICY: Powers of Attorney are required for the initial extension of or connection to City utilities or for the transfer of a utility account to a subsequent owner. (Reference PMC 13.16.011) III. PROCEDURE: 1. New utility extensions or connections for properties outside the City limits. Before approving plans for extension of City water or sewer services or for connections to such services for properties outside of the City limits, Engineering and/or Building divisions shall refer property owners to the Planning office to sign Power of Attorney documents. 2. Utility account establishment or transfer for properties outside of City limits. a. Upon receiving a request for a new or transfer account, Customer Service Representatives determine if the property for the requested account is within the City limits. b. If determined to be outside the City limits, the customer is referred to the Planning Office to sign Power of Attorney documents. 3. Planning Office Processing. a. Planning staff verifies property ownership. If County records do not indicate the applicant for the account is the owner of the property, proof of ownership (deed) must be submitted. Apply the following to determine appropriate signator: i. The signature of a record owner, as determined by the records of the county auditor, shall be sufficient without the signature of his or her spouse; ii. In the case of mortgaged property, the signature of the mortgagor shall be sufficient, without the signature of his or her spouse; iii. In the case of property purchased on contract, the signature of the contract purchaser, as shown by the records of the county auditor, shall be deemed sufficient, without the signature of his or her spouse; iv. Any officer of a corporation owning land who is duly authorized to execute deeds or encumbrances on behalf of the corporation, may sign on behalf of such corporation, and shall attach to the document a certified excerpt from the bylaws of such corporation showing such authority; V. Any officer of a corporation owning land, who is duly authorized to execute deeds or encumbrances on behalf of the corporation, may sign under oath on behalf of such corporation. If an officer signs, he or she must attach an affidavit stating that he or she is duly authorized to sign the document on behalf of such corporation; vi. When property stands in the name of a deceased person or any person for whom a guardian has been appointed, the signature of the executor, administrator, or guardian, as the case may be, shall be equivalent to the signature of the owner of the property; vii. When a parcel of property is owned by multiple owners, the signature of an owner designated by the multiple owners is sufficient; and viii. A contractor cannot sign for the owner. b. The owner signs Power of Attorney for Covenant on Utility Services form (see Exhibit "A "). L All blank lines for name, dates, completed. ii. Signature notarized. c. Planning staff provides owner with fact sheet "Power of Attorney for Covenant on Utility Services" (see Exhibit `B ") and a signed copy of the Power of Attorney document to take to Engineering/Billing/Customer Service as needed. d. Planning staff records the document and files with existing agreements or records. 4. Engineering/Building division staff or Customer Service Representatives verify signed Power of Attorney prior to approving plans or authorizing service to the property. Attachments: 42q -k 3 Date Exhibit "A" - Power of Attorney for Covenant on Utility Services Form Exhibit `B" - Power of Attorney for Covenant on Utility Services Informational Sheet Administrative Order No. 520 - "Power of Attorney for Covenant on Utility Services" Page 2 Exhibit A WHEN RECORDED, PLEASE RETURN TO: OWNERSHIP OF: City of Pasco Attn: City Planner 525 North 3rd Pasco, WA 99301 Ref: Name: Parcel No.: Address: Legal Description: CITY OF PASCO POWER OF ATTORNEY FOR COVENANT ON UTILITY SERVICES (OWNER APPROVAL FOR ANNEXATION) IN CONSIDERATION of the City of Pasco's consent for the extension of sewer and/or water utilities beyond the City limits of the City of Pasco, and its commitment for providing such services for the benefit of the below- described real property, the undersigned do hereby warranty that they are owners of said real property and do on their own behalf and on behalf of their heirs, assignees and successors in interest, covenant to annex the below - described real property to the City of Pasco, Washington, at such time as such property is eligible for annexation, and do hereby for that purpose designate the City of Pasco and its officers as my /our attorney in fact for the purpose of signing any petition or other statutorily required instrument for annexation of said property to the City of Pasco, with full power to do and perform any proper act required for annexation of said property; and waive my /our right to take any actions to oppose, challenge or invalidate such annexation. The undersigned Owners acknowledge that the City of Pasco's consent for the extension and the continued providing of sewer and/or water utility services is based solely upon the warranties and covenants provided above. The failure of the undersigned or the heirs, assignees and successors in interest, to fulfill such warranties or covenants may result in the City of Pasco's withdrawal or termination of utility services to the below - described property. The undersigned Owners shall require that all qualified registered voters residing at the real property described below shall be required to execute a limited Power of Attorney designating the City of Pasco and its officers as attorney -in -fact to sign a petition for annexation of such real property to the City of Pasco to maintain eligibility to receive City water services. Administrative Order No. 520 - Power of Attorney for Covenant on Utility Services Page 1 Exhibit A THIS SPECIAL LIMITED POWER OF ATTORNEY is given and the signatures are affixed hereto as the free and voluntary act and deed of the undersigned. This Special Limited Power of Attorney shall not be affected by the disability of any of the principals. THIS COVENANT is intended to and shall run with all or any portion of the real property described below and shall bind all heirs, assigns, transferees, and subsequent successors in interests. The property is located at address Pasco, Washington, and more legally described as follows: Legal Description Parcel No. DATED this day of D1131zi�:I.`G STATE OF WASHINGTON) ): ss. COUNTY OF ) On this day personally appeared before me , to me known to be the individual(s) described in and who executed the within and foregoing instrument, and acknowledged that he /she /they signed the same as his /her /their free and voluntary act and deed, for the uses and purposes therein mentioned. Given under my hand and official seal this day of NOTARY PUBLIC in and for the State of Washington Residing at My Commission Expires: Administrative Order No. 520 - Power of Attorney for Covenant on Utility Services Page 2 Exhibit B Power of Attorney for Covenant on Utility Services (Owner Approval for Annexation) Power of Attorney for Covenant on Utility Services are agreements that the City of Pasco requires in order to provide water or sewer service to properties outside of its city limits. The Agreements are required upon first connection or as a condition of continued service when property is sold. Background In the early 1990s, the State of Washington adopted the Growth Management Act which required counties to designate Urban Growth Areas for each city. The Urban Growth Area designation is intended to foster the orderly and cost effective extension of transportation and utility services; the orderly transfer of service responsibilities from one agency to another; and to avoid premature conversion of agricultural lands for urban or suburban uses. Efficient accommodation of expected growth and the reduction of "urban sprawl" are two of the major objectives of the Growth Management Act. Because the west Pasco area was already surrounded by the City of Pasco, the Franklin County Commission designated all of the unincorporated "donut hole" (then, the area generally west of Road 36 and south of I -182) as part of the Pasco Urban Growth Area. Because the Growth Management Act anticipates the transition of properties within the Urban Growth Area to city jurisdiction by annexation, the City began the process of planning infrastructure, systems and services with the goal of including the entire Urban Growth Area within the City limits. Power of Attorney for Covenant on Utility Services One of the services in most demand in Pasco's Urban Growth Area is city water service. (Approximately 70% of homes in the donut hole are currently served by City water.) The City is not required to provide utility service outside of the City limits; however, it has allowed county property owners to connect to city water service in exchange for their agreement to support annexation of the property in any future annexation proceedings. The "support" takes the form of a signature on a petition in favor of annexation. This exchange of considerations for both parties is legally termed a quid-pro-quo and is typically documented in the form of Power of Attorney for Covenant on Utility Services Agreement for the original property owner /developer for subsequent owners. The document provides that the City, on behalf of the owner, may sign annexation intents or petitions for the property which is receiving water service. Because this exchange constitutes a contract, each party has an obligation to fulfill its part of the agreement; the agreements cannot be unilaterally revoked. The documents are recorded as a means of providing formal notice of the agreement to existing and future property owners. Legality of Agreements Some property owners feel that the agreements are unreasonable or unfair. They might feel that they have been forced to sign the agreement without prior understanding or notice. Some feel that they should have a right to vote on annexations. Washington Courts have examined each of these arguments and have upheld the validity of Power of Attorney documents [see Fire Protection District #12 vs. City of Yakima, 122 Wn. 2d 371 (1993)]. Administrative Order No. 520 - Power of Attorney for Covenant on Utility Services Page 1 Exhibit B To summarize, because the agreements represent an exchange of valuable consideration (water service in exchange for annexation) they are valid and enforceable contracts; because they are recorded as a covenant (that runs with the land) they are binding on fixture property owners; because the city has the legal right to use the petition method of annexation (where the annexation is approved based on property value), no citizen has been deprived of their right to vote. There is no overriding "right to vote" in the petition method of annexation. Summary The City's plan for annexation of the Urban Growth Area has come about as a result of the Growth Management Act of the State of Washington and, following Urban Growth Area designation by Franklin County, the City has planned and invested significant resources to be able to serve the Urban Growth Area. On condition of future annexation, the city has extended the opportunity to connect to water service, which condition is contained in valid and enforceable contracts known as Power of Attorney for Covenant on Utility Service Agreements. Administrative Order No. 520 - Power of Attorney for Covenant on Utility Services Page 2