Cooperative Agreements (Co-Op)
A Co-Op agreement is typically created when a limited number of property owners are interested in an improvement project. Elements include:
Property owner contact/advocate
An interested property owner, typically the person who initiates the process, serves as the point of contact to work with staff. The owner works with the other interested/impacted property owners throughout the Co-Op process, serving as the advocate or champion.
Staff develops a scope of work and prepares cost estimates based on the best available information at the time the work is scoped. However, unforeseen circumstances can affect the final cost.
Co-Op members are required to deposit the full amount of the estimate. If the actual cost of construction is less than the estimate, refunds will be issued. If the actual construction cost is higher than the assessment, an invoice will be sent to the project champion for the balance due.
Benefiting property owners may want to form a Maintenance Local Improvement District (MLID). A MLID is similar to the LID, but instead of one-time assessment for a specific task (such as paving a gravel road), the MLID is a mechanism to collect revenue on an ongoing/ perpetual basis for maintaining the road surfaces.
Forming a MLID early on is valuable because it allows for more
frequent road maintenance which preserves the investment. County staff will
develop a long-term maintenance strategy, including a spending plan, which
determines annual rates for each property. The MLID revenue is earmarked for
maintenance of a given road and is not available for any other purpose.