Latecomer Agreements

Latecomer Agreements help offset the cost of utility system improvements required for development. When a Property Owner is required by Seattle Municipal Code (SMC) to construct and pay for a utility system improvement, they may be eligible to recover a portion of the costs through future connections made by designated benefitting parcels or Seattle Public Utilities (SPU).

The deadline to apply for a Latecomer Agreement is prior to the execution of the Construction Contract (water, drainage, and, or wastewater main extensions) or System Improvement Contract (water valves and/or other appurtenances).

There are two types of Latecomer Agreements: 

• Developing Property Owner Latecomer Agreement (DLA): A Latecomer Agreement where the cost of construction or improvement is borne solely by the Developing Property Owner who may recover costs from future designated benefiting parcels.
• Participatory Latecomer Agreement (PLA): A Latecomer Agreement where the cost of the water, drainage, and/or wastewater main extension is shared between SPU and the Developing Property Owner, with potential reimbursement provided to the Developing Property Owner by SPU pursuant to ENG-420 (PDF) - Latecomer Agreements & Municipal Assessment Reimbursement Areas for Construction of Utility System Improvements. Valves and other appurtenances are not eligible for a PLA, but a DLA is an option.

Each Latecomer Agreement applies to only one utility: water, sewer, or drainage. If your project has requirements for multiple utilities, you may choose a Latecomer Agreement for only one utility, or separate Latecomer Agreements for different utilities. Latecomer Agreements last for 20 years.

Latecomer Agreement Process

1. SPU identifies a utility improvement requirement for a development project via the Water, Drainage, and Wastewater Availability Certificate (WAC).
2. The applicant submits the following for a Latecomer Agreement.
   • Utility System Improvement Contract & Latecomer Agreement Application (PDF) indicating which type of Latecomer Agreement you are selecting, DLA or PLA.
   • Utility System Improvement Cost Estimating Worksheet (XLSX format)
   • Payment of the application fee ($1,090).
3. SPU notifies the benefitting parcels of the upcoming Latecomer Agreement.
4. The utility is constructed, accepted by SPU, and final street restoration is completed.
5. The Developing Property Owner submits the PE Stamped Final Cost Form (PDF) along with the Utility System Improvement Final Costs Worksheet (XLSX format) within 120-days of completion of the utility, including final street restoration.
6. SPU reviews and approves final construction costs.
7. The Latecomer Agreement is finalized based on the final construction costs.
8. The Developing Property Owner pays the SPU invoice for the King County recording fees to encumber the originating parcel and each benefitting parcel.
9. SPU notifies benefitting parcels of the finalized Latecomer Agreement and records the Latecomer Agreement and encumbrances for each parcel with King County.

Reimbursement Payment Process

For PLA’s

SPU will reimburse the Developing Property Owner, per ENG-420 (PDF) - Latecomer Agreements & Municipal Assessment Reimbursement Areas for Construction of Utility System Improvements within 120 calendar days of executing and recording the Participatory Latecomer Agreement(s), following construction of the utility main extension, acceptance of the asset by SPU, and street restoration.

All Latecomer Agreements:

Any benefitting parcel encumbered with a Latecomer Agreement who requests to connect to the utility must pay the latecomer reimbursement prior to connection.

Steps in the reimbursement payment process

1. Benefitting parcel owner requests connection to a utility facility with a Latecomer Agreement.
2. SPU requires payment of latecomer reimbursement and associated fees prior to connection.
3. Benefitting parcel owner pays SPU the Latecomer reimbursement payment and associated fees.
   • Recording Fee - records removal of the encumbrance of the property.
   • $220 Collection Processing Fee - covers the City's administrative costs of collecting, documenting, and other tasks associated with processing reimbursement payments.
4. SPU records a letter with King County to relieve encumbrance of benefitting parcel.
5. SPU remits payment back to the originating developer.
6. SPU allows benefitting parcel to connect to utility.

When SPU collects a reimbursement payment from a benefitting parcel that is owed to the originating developer, SPU will remit the payment to the originating developer. If the originating developer cannot be contacted or is not responsive, SPU may keep the reimbursement payment.

Update Contact Information

Every Latecomer Agreement owner must update their contact information with Seattle Public Utilities every two years to maintain the terms of the Contract. Use one of the following forms to provide your updated contact information to SPU:

• Latecomer Agreement New Assignment Contact Form (PDF)
  Use this form to assign rights and responsibilities of the beneficiary of an existing Latecomer Agreement to a new entity.
• Latecomer Agreement Contact Information Form (PDF)
  Use this form to maintain or update your current beneficiary information.

Authority

The City’s authority to administer Latecomer Agreements comes from:

• RCW 35.91 – Municipal Water and Sewer Facilities Act
• SMC 21.63 – Latecomer Agreements and Municipal Assessment Reimbursement Areas

• ENG-420 (PDF) - Latecomer Agreements & Municipal Assessment Reimbursement Areas for Construction of Utility System Improvements