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LID Res stf report City of Yelm STAFF REPORT   To: Mayor Adam Rivas Yelm City Council From: Tami Merriman, Assistant Planner Date: October 18, 2005 (for October 26, 2005 City Council Meeting) Subj: Resolution #459 - Mountain Sunrise LID Segregation Attachments: Application for Segregation of LID Assessment Resolution No. 459 Exhibit A — Current Parcel Configuration Map Exhibit B — New Parcel Configuration Map Exhibit C — Segregation of Assessment Exhibit D — RCW § 35.44.410 Recommendation Adopt Resolution No. 459 authorizing the requested segregation of the original assessment to Tax Parcel #’s 64301200100 & 22717330100 in Utility Local Improvement District No. 1. Background On September 29, 1999 the City Council approved Ordinance No. 674 confirming and adopting the final assessments for Utility Local Improvement District No. 1. Section 35.44.410 of the Revised Code of Washington requires that any request for segregation of these assessments be approved by council action. If Council adopts Resolution No. 459, a separate assessment lien will be recorded against each individual building lot that will be enforceable by judicial foreclosure in the even that future annual installments are not paid in a timely manner in accordance with state law. Current Situation Mountain Sunrise Development LLC has submitted a written application, and fee to reallocate the local improvement district assessments on parcels they own based on the projected number of individual lots at final build-out. This action will proportionately redistribute original assessment amounts to final building lots in preparation for the development and sale of final lots to future homeowners in the Mountain Sunrise Plat. State law requires that segregation “shall be made as nearly as possible on the same basis as the original assessment.” Each projected final building lot will be allotted one Equivalent Residential Unit, and the combined assessment total is therefore divided equally between each of the new parcels benefiting from the improvements. The sum of the combined assessments does not change and the estimated market value of these parcels is more than sufficient to cover any future delinquencies should foreclosure action ever be required. This resolution will become effective immediately upon adoption by the City Council.