92-024246 92024246
• Washington County
CITY OF TIGARD, OREGON
RESOLUTION NO. 92—�_
A RESOLUTION ESTABLISHING THE MCDONALD STREET SANITARY SEWER
REIMBURSEMENT DISTRICT
WHEREAS, certain sanitary sewer improvements have been completed within
the right of way of McDonald Street; and,
WHEREAS, all costs of said construction have been paid from the Sanitary
Sewer Fund of the City of Tigard; and,
WHEREAS, formation of a zone of benefit has been initiated by the city;
and,
WHEREAS, the City Engineer has submitted a report describing the
improvements, the zone of benefit, a methodology for spreading the cost
among the parcels within the zone of benefit, and the recommended
interest rate; and,
WHEREAS, the City Council has determined that formation of a zone of
benefit as recommended by the City Engineer is appropriate .
NOW, THEREFORE, BE IT RESOLVED by the Tigard City Council that :
Section 1 . The City Engineer' s report titled "McDonald Street Sanitary
Sewer Reimbursement District", attached hereto as Exhibit A,
is hereby approved.
Section 2 . - A zone of benefit is hereby established in accordance with
TMC Chapter 13. 08 . The zone of benefit shall be the area
shown on Exhibit B and described on Exhibit C. The zone of
benefit shall be known as the "McDonald Street Sanitary
Sewer Reimbursement District" .
Section 3 . Payment of the recovery agreement connection charge at the
rate of $38 . 0024 per front foot, as described in Exhibit A,
is a precondition of receiving city permits applicable to
development of each parcel within the zone of benefit as
y<r ; .'; provided for in TMC 13 . 08 . 030 .
i,
S,e'crt Orr".4*_. %n,, annual percentage rate of 7 . 0% shall be applied to the
c' •°:��.4ic,�' 'ro`nne'ction charge on the anniversary date of the
r� y
reimbursement agreement in accordance with TMC
,A` �_ 13 0,8 . 020 (b) (5)
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`, Certified to be a True Copy of
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Original on file
'RESOLUTION NO. 92-�L-
PaigeYl
RETURN RECORDED DOCUMENT TO: ity Re rde r-City of Tip
CITY RECORDER, TIGARD Date: 1-/ /,, 'a
PO BOX 23397
TIGARD OR 97223 `
Section 5 . The zone formation date is January 21, 1992 . The right of
reimbursement shall end on January 21, 2002, unless extended
by the Council in accordance with TMC 13 . 08 . 020 (b) (2) .
Section 6 . The City Recorder shall cause a copy of this resolution to
be filed in the office of the county recorder and shall mail
a copy of this resolution to all affected property owners at
their last known address, in accordance with TMC
13 . 08 . 020 (f) and (g) .
PASSED: This 44-qA day of n&ACS , 1992 .
Mater City of Tigard
ATTEST:
City Recorder - City of Ti and
rw/mcd-res
RESOLUTION NO. 92-
Page 2
Exhibit A
City Engineer' s Report
MCDONALD STREET SANITARY SEWER REIMBURSEMENT DISTRICT
Background
SW McDonald Street was improved in 1991 between Hall Boulevard and
SW 97th Avenue. Sanitary sewer lines were installed as part of the
project in order to avoid the need to dig up the new street in the
future. The sewer lines were constructed only in the areas of new
street construction. Additional downstream sewer line construction
will be needed before the sewer lines can be used. It is
anticipated that the downstream improvements will be constructed in
the future as development occurs or as the broader neighborhood
requests sanitary sewer service.
Financing
Usually., costs of construction of local sanitary sewers are paid by
the owners of the properties served by the sewer. In the case of
McDonald Street, the sewer construction costs were paid from the
City' s sanitary sewer fund, to assure that the sewer could be
constructed at the time of street construction. It was expected
that the sewer fund would be reimbursed in the future as each
parcel is connected to the sewer.
The sanitary sewer fund has provided adjacent property with
improvements which would otherwise be required of the adjacent
property.. The sanitary sewer fund has relieved adjacent property
owners of installing sewer improvements in the future. This has
created a zone of benefit as defined in TMC 13 . 08 . 010 (7) .
Zone of Benefit
The zone of benefit is the properties shown as the cross-hatched
area on the attached exhibit map (Exhibit B) The zone of benefit
includes only those properties which are adjacent to the new sewer
and which can be expected to connect to the -sewer in the future .
.Properties which are lower than the sewer were excluded.
Properties which already had sewer service from an alternate line
were excluded.
At least one property in the zone of benefit has an existing house
which is probably too low to connect to the sewer. When future
downstream improvements are made, the house can be connected to the
downstream sewer. However, the lot is large and portions are high
enough to be served by the McDonald Street sewer if another house
is constructed in the future; therefore, the lot was included in
the zone of benefit . The existing house will not be required to
pay the reimbursement fee if it cannot be connected to the McDonald
Street sewer .
The zone formation date is January 21, 1992, which is the date that
the project was accepted by the City as complete .
It is recommended that the reimbursement district continue for ten
years . After ten years, properties connecting to the sewer would
no longer be required to pay the reimbursement fee, unless the time
is extended by the Council as provided in TMC 13 . 08 . 020 (b) (2) .
Cost
The total cost of the sanitary sewer construction, including
engineering and inspection costs, is $136, 246 . 11 . All of this cost
should be reimbursed to the sanitary sewer fund as properties are
connected to the sewer in the future.
Reimbursement Rate
The cost of constructing this sewer line were directly proportional
to the length of the line. Therefore, it is recommended that the
costs of the sewer be apportioned among the properties based on the
front footage of each property along McDonald Street .
A common alternate method for assessment of sewer costs is square
footage of each property. The square footage method was rejected
in this case for the following reasons : (1) all lots, independent
of size, currently have only one house, so that additional lot
depth does not create additional benefit from the sewer; and (2) if
the large lots are redeveloped in the future, it is likely that the
rear portions of the lots will need to be served from other new
lines, not from. the McDonald Street line. Thus, it seems
inappropriate to assess the lots based on area.
The total front footage of the parcels within the zone of benefit
is 3585 .2 feet . When divided into the total sewer cost, this
yields a rate of $38 . 0024 per front foot . Therefore, it is
recommended that the reimbursement rate be established at $38 . 0024
per front foot .
Interest Rate
TMC 13 . 08 . 020 (b) (5) provides that an annual percentage rate shall
be applied to the connection charge on the anniversary date of the
reimbursement agreement .
The Finance Director has indicated that the sanitary sewer funds
could be invested at a rate of approximately 7% if the funds had
not been used to finance the sewer. Therefore, it is recommended
that the interest rate be set at 70 .
Recommendation
It is recommended that a reimbursement district be formed with a
zone of benefit, reimbursement rate and interest as indicated
above .
Submitted March 12, 1992
Randall R. Wooley
City Engineer
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LEGEND
Properties included in
® reimbursement district (zone of benefit)
SE ;i Sec. 2 & NE 2A Sec. 11 T2S, R1 W, WM
New sanitary sewer lines built
�_ .In McDonald St. improvements rITV nF Tlr,eRn WAQW1K1 :TnN cnl1HTV
EXHIBIT C
Those parcels situated in Southeast;i of Section 2 and Northeast 3A of Section 11,Township 2 South,
Range 1 West,Willamette Meridian,Washington County,Oregon,and more particularly described as
follows:
Those parcels adjoining and North of S.W. McDonald Street beginning at S.W Hall
Boulevard extending west 2200 feet(more or less)to and include that parcel deeded
to Fred R. and Marlys A. Kuhn and recorded in document 78.7459 in said County
records .
Also, those parcels adjoining and South of S.W. McDonald Street beginning at S.W
Hall Boulevard extending west 1500 feet (more or less) to and include that parcel
deeded to Monte R. and Karen I. Mullen and recorded in document 947-535 in said
County records .
EXCEPTING that parcel North of McDonald Street described in document 85-43826.
STATE OF OREGON 1 SS
County of Washington 1
I,Jerry R.Hanson,Director of Assessment
and Taxation and,Ex=Q,fficio•Recorder of Con-
veyances for:saidjcouAfftdc ereby certify
that the within "instrumentv,ofi writing was
received and eco-dii&iin`-6 ok bf'records of
said cou6ty� e
S�
err. R.- ahs' Dire for of
Assessmentaad Taxation, Ex-
u
Officio`Cofy�'Clerk:
�Ca
cou o
Doc 92024246
Rect: 7.5172 38. 00
04/14/1992 09: 16: 45AM