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94-109526 -STATE OF OREGON ''ounty of Washington SS ' I, Jerry R I ans6nr Dieator,of Assess- ment and taxation and Ex Officio .County Clerk for" said County,�do hereby certify that the within'Instrunfient ofWtiting iMi6 teceived and recorded In tlook,,f Kecordsof said county, ,R ,11 n4 g :ferny R Hanson,1 irector of __ _ _ _ Assessmentaartf Taxation,Ex- RETURN RECORDED DOCUMENT TO: OffiifoC©t�rtjiClerk CITY RECORDER, CITY OF TIGARD Doc 94109,526 13125 SW HALL BLVD. Re c t: -134777 43 . 00 TIGARD, OR 97223 CITY OF TIGARD, OREGON 12/08/1994 2/08/:1994 :10: 3 r� 36AM 3 5 RESOLUTION NO. 94- 4,q A RESOLUTION ESTABLISHING SANITARY SEWER REIMBURSEMENT DISTRICT NO. 7 WHEREAS, sanitary sewer improvements have been constructed to serve properties along the north side of Park Street west of Grant Avenue; and, WHEREAS, the costs of said sewer construction have been paid by Ken Randall Homes, LLC; and, WHEREAS, formation of a reimbursement district has been requested by Ken Randall Homes, LLC, and the applicant has paid the application fee required by TMC 13 . 09 . 020; and, WHEREAS, the City Engineer has submitted a report describing the improvements, the area of the reimbursement district, the costs of the improvements, a methodology for spreading the cost among the parcels within the district, the recommended annual fee adjustment, the recommended City charge for administration, and the recommended duration of the district; and, WHEREAS, a public hearing was held by the City Council on November 1, 1994, in accordance with TMC 13 . 09 . 050 (1) ; and, WHEREAS, notice of the public hearing was mailed on October 19, 1994, to the owners of property within the proposed district in accordance with TMC 13 . 09 . 060; and, WHEREAS, the City Council has determined that formation of a reimbursement district 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 "Sanitary Sewer Reimbursement District No . 7", attached hereto as Exhibit A, is hereby approved. Section 2 : A reimbursement district is hereby established in accordance with TMC Chapter 13 . 09 . The reimbursement district shall be the area shown and described on Exhibit B and shall be known as "Sanitary Sewer Reimbursement District No . 7" . Section 3 : Payment of the reimbursement fee as shown in Exhibit C is a precondition of receiving city permits applicable to development of each - parcel within the reimbursement district as provided for in TMC 13 . 09 . 110 . Section 4 : The City Administrator is hereby authorized and directed to enter into an agreement with Ken Randall Homes, LLC, in accordance with 13 . 09 . 070 (2) and in accordance with RESOLUTION NO. 94- "f-I Page 1 1 _ A the recommendations of Exhibit A. An administrative fee of $100 . 00 shall be paid by the applicant in accordance with TMC 13 . 09 . 030 (f) . No fees shall be reimbursed to the applicant until the required agreement has been completed ' by the applicant and the required administrative fee has been paid by the applicant . Section 5 : The City Recorder shall notify the owners of all property within the district and the applicant of the adoption of this resolution in accordance with TMC 13 . 09 . 080 . Section 6 : The City Recorder shall cause notice of the formation and nature of the reimbursement district to be filed in the office of the County Recorder in accordance with TMC 13 . 09 . 090 . ff(-)V-e-.rn PASSED : This Sday of to-,QA , 1994 . �tM yer - City of Tigard ATTEST : Counc;�l Pnes�dP�� City Recorder - City of Tigard i Jna',i Certified to b®a'True Copy Of ,` ' 4, —1 A t. Original on file. ---- ' -zw i mo F1 i, By: CIL ZVNr�- , f r c5 City Recd dee' Cid of igard Cate: �_-- -- -- rw/rand-res RESOLUTION NO . 94-� Page 2 p Exhibit A City Engineer' s Report SANITARY SEWER REIMBURSEMENT DISTRICT NO. 7 Background As a result of two minor land partitions, a large lot on SW Park Street has been divided into four lots . A sanitary sewer line has been constructed along Park Street to serve the new lots . The new sewer line connected to an existing sewer at Grant Avenue and extended westward along Park Street to the west boundary of the partitioned property. A sewer line was also constructed north from Park Street to serve the new lots created by the minor land partition. The sewer lines are complete and available for connection. Financing The costs of construction of the new sewer line were paid by Ken Randall Homes, LLC, applicant for the reimbursement district . Formation of the reimbursement district will provide for the applicant to be reimbursed for a share of the sewer line costs in the future as other properties are connected to the sewer. The sewer extension has provided sewer service to three lots that are not owned by the applicant . Construction by the applicant has relieved the owners of the adjacent properties from the need to install sewer improvements in the future . Thus, the applicant is qualified to request formation of a reimbursement district in accordance with TMC 13 . 09 . 020 . District Area The boundary of the proposed reimbursement district is shown in Exhibit B . The district includes all lots along the portion of Park Street where the new sewer was constructed, except for those lots that were already served by existing sewer lines . The property on the south side of Park Street is served by an existing line to the south and is not included in the proposed district . The lot at the northwest corner of Grant Avenue and Park Street is served by an existing line in Grant Avenue and is not included in the proposed district . Cost In the original application letter dated September 19, 1994, the applicant suggested that the total cost of the sewer eligible for the reimbursement district is $55, 018 . 70 . After discussion, the applicant submitted a revised letter of application dated October 17, 1994 . In the revised letter, the applicant agrees that the costs related to extension of the sewer line into the new minor land partition north of Park Street should not be included in the reimbursement district costs . The revised letter suggests that the total cost eligible for the reimbursement district is $40, 422 .56 . After review of the documentation provided by the applicant, the City Engineer has determined that the total cost for the reimbursement district should be $35, 483 . 14 . The City Engineer disallowed certain costs for which sufficient documentation is not available . Other costs that appeared to apply to both the eligible sewer line in Park Street and the ineligible line north of Park were apportioned in accordance with the respective construction costs of the two lines . The reimbursement district application fee was also disallowed. The detailed documentation submitted by the applicant is available in the reimbursement district file in the Engineering Department . It is recommended that the total cost of the reimbursement district be set at $35, 483 . 14, which includes construction, engineering and inspection costs . Methodoloav for spreading the cost The lots in the proposed district are all zoned R-4 .5 which requires a minimum lot size of 7, 500 square feet . None of the lots, except parcel no . 1, has sufficient area for further subdivision. Parcel no . 1 could potentially be divided into two lots . There are a total of 6 existing lots in the reimbursement district and a potential future total of 7 lots . All of the lots have the same zoning. Therefore, it is recommended that the costs be divided equally among the 7 potential lots . This yields a cost per lot of $5, 069 . 02 Parcel no . 1 is currently one large lot with one residential structure . It is recommended that parcel no . 1 be charged at the unit rate of $5, 069 . 02 per structure actually connected, with total reimbursement fees over time not to exceed two units . Thus, if the existing house is connected to the sewer, the reimbursement fee would be $5, 069 . 02; if the property is later subdivided and a second house is connected, the second house would be charged an additional fee of $5, 069 . 02 . The proposed charges are summarized in Exhibit C . There are no known prior contributions by property owners within the district . Value of unused capacity was not considered relevant, since the sewer lines have been constructed at the minimum size allowed by City standards . Annual fee adjustment TMC 13 . 09 . 030 (e) provides for an annual fee adjustment as a return on investment for the applicant . The applicant has requested that the annual fee adjustment be set at 12% and has submitted evidence of a construction loan at an annual rate of 12% . On past reimbursement districts, the Council has allowed annual fee adjustments varying between 0% and 7% . In general, the rate has been based on the potential investment earnings lost by the applicant, rather than on loan costs . Based on a review of the rates established in previous districts, it is recommended that the annual fee adjustment be set at 7% . The reimbursement fee of $5, 069 . 02 would then be increased by 7% ($354 . 83) each year on the anniversary date of the formation of the district . Administrative charge TMC 13 . 09 . 030 (f) provides that the applicant must pay a fee for the City' s administration of the district . The Finance Director recommends that a fee of $25 per potential fee collection is appropriate to cover the City' s costs of collecting and disbursing the reimbursement fee . In the proposed district, there is a potential of four parcels which would pay the fee (since an applicant is not reimbursed for the applicant' s parcels) . On this basis, it is recommended that the administrative fee be $100 . 00 . Duration of the district Following the hearing on November 1, 1994, the City Council determined that the duration of the reimbursement district should be ten years . Recommendation It is recommended that a reimbursement district be formed for the area indicated in Exhibit B and at the rates recommended above . Submitted November 1, 1994 Randall R. Wooley City Engineer EXHIBIT "B" DESCRIPTION OF REIMBURSEMENT DISTRICT No . 7 A tract of land situated in the Northwest one quarter of the Southwest One-Quarter of Section 2, Township 2 South, Range 1 West, Willamette Meridian, City of Tigard, Washington County, Oregon described as follows : Beginning at the Northwest corner of Parcel 2 of Partition Plat 1992-092 as recorded in the Partition Plat records of Washington County thence S 890 44' 06" E, along the north line of said Partition Plat, a distance of 189 . 46 feet to the Northeast corner of said Partition Plat; thence S 000 01' 50" W, along the east line of said Partition Plat, a distance of 94 . 10 feet to the Northwest corner of the land described in Fee No . 92092279 of the Washington County Deed Records; thence N 890 40' 31" E, along the north line of said Fee No . and the north line of the land described in Fee No . 89029381 of the Washington County Deed Records , a distance of 140 . 00 feet to the Northeast corner of said Fee No 89029381; thence S 00° 01' 50" W, along the East line of said Fee No . , a distance of 199 . 88 to the south line of S .W. Park Street; thence S 89° 09' 08" W, along said south line, a distance ' of 329 .51 feet to the extension of the west line of Partition Plat 1992-092; thence N 000 02' 00" E, along said west line, a distance of 298 . 94 feet to the point of beginning. GRANT LTJ -- CT Q i z � ' 3 4 Q 3 1 5 6 P A R K ITARY SEWER S T F PROPOSED REIMBI RSEMENT DISTRICT I / a' EXHIBIT C REIMBURSEMENT FEES Parcel No . Tax Map & Lot No. Reimbursement Fee 1 2S1 2CB 6801 $10, 138 . 04* 2 2S1 2CB 6900 5, 069 . 02** 3 2S1 2CB 7100 5, 069 . 02** 4 2S1 2CB 7200 5, 069 . 02** 5 2S1 2CB 1500 5, 069 . 02 6 2S1 2CB 1600 5, 069 . 02 $35, 483 . 14 NOTES : Note 1 : Fees to be adjusted annually per TMC 13 .09 . 030 (e) . *Note 2 : The reimbursement fee for Parcel No . 1 shall be $5, 069 . 02 per connection to the sewer, not to exceed a total of $10, 138 . 04 during the life of the reimbursement district . **Note 3 : Parcels No . 2 through 4 are owned by the applicant . Per TMC 13 . 09 . 040 (2) , no reimbursement fee shall be collected on these parcels . Note 4 : The reimbursement district expires on November 1, 2004 . rw/rand-c 7