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A. Upon receipt of the applicant’s statement of project cost, the director shall prepare for the city council a report setting forth the following:

1. The total area and frontage of the property currently paying or sharing the cost of the actual construction of the improvements;

2. The total area and frontage of property physically and feasibly capable of being served by the system improvements;

3. The names and mailing addresses of the owners of the property determined to be within the possible service area;

4. The fair pro rata share of the cost for each property which might tap into the system or be benefited by the street improvements, determined on an acre, front footage or other equitable basis;

5. A determination whether the system is consistent with the facility plan of the department of public works;

6. A list of all other necessary services presently available or planned for the area as part of the adopted plan;

7. A recommendation whether the application meets the criteria of this chapter and the policies and procedures of the city engineer and ought to be accepted.

B. A copy of the director’s report along with a description of the property owners' rights and options hereunder shall be forwarded by registered mail to the property owners of record as shown on the records of the Skagit County assessor within the proposed assessment area. A list of all property owners of record within the proposed assessment area shall be furnished by the applicant as part of his application. If any property owner requests a hearing in writing within twenty days of the mailing of the director’s report, a hearing shall be held before the city council, notice of which shall be given to all affected property owners at least ten days in advance of the council meeting.

C. After such public hearing, the city council shall accept or reject the proposed latecomer agreement. If the city council accepts the proposed latecomer agreement, it shall do so either by motion or by resolution declaring its intent to enter into a latecomer agreement, subject to the further requirements of this chapter.

D. After the system improvements are completed, the applicant must present to the director a final statement detailing the actual total project cost, including an application fee, design, construction and inspection fees. In addition, the applicant must submit “as built” plans showing the system and service area.

E. If both the “as built” plans and the final statement of costs are consistent with the improvement contemplated, the city shall enter into the latecomer agreement.

F. If the final statement exceeds or is inconsistent with the projected costs, or if the “as built” plans significantly differ from the original design, the director shall meet with the applicant to determine the reason for the increased costs or different design. Following such meeting the director shall make a further report and recommendation to the city council and the council may approve, reject, or modify the latecomer agreement following the meeting. If the proposed cost to affected property owners exceeds the preliminary estimate by more than ten percent, the city council shall schedule a new public hearing, notice of which shall be given to all affected property owners at least ten days in advance of the hearing date. Following the public hearing, the city council may approve, reject or modify the latecomer agreement. (Ord. 2523 § 5, 2000)