Ordinance No. 90-23 CITY OF IGARD
ORDINANCE NO.
AN ORDINANCE PROVIDING FOR ADVANCE FINANCING AND REIMBURSEMENT OF
STREET IMPROVEMENTS, WATER LINE EXTENSIONS AND SEWER LINE
EXTENSIONS
WHEREAS, the City may require or agree that a property developer
shall construct street, water and sewer improvements which benefit
adjacent property owners and relieve those adjacent property owners
of installing such improvements; and
WHEREAS, the City Council finds it equitable to impose a connection
charge on adjacent property owners who are benefited by such
street, water and sewer improvements; and
WHEREAS, the City Council finds that using such connection charges
to provide reimbursement to the developer who installed street,
water an"i sewer improvements encourages such improvements to be
made in a uniform and planned manner; now, therefore:
THE CITY OF TIGARD ORDAINS AS FOLLOWS:
Section 1. The Tigard Municipal Code shall be amended by adding
Chapter 13.08 to read as follows:
13.08.010 Definitions.
(1) City Engineer or Engineer. The person holding
the position of City Engineer or any officer or employee
designated by that person to perform duties stated within
this ordinance.
(2) City. The City of Tigard.
(3) Person. A natural person, the person's heirs,
executors, administrators, or assigns; a firm,
partnership, corporation, association or legal entity,
its or their successors or assigns; and any agent
employee or any representative thereof. Unless the
context clearly indicates otherwise, person shall not
mean the City of Tigard.
(4) Street or Street Improvements. Conforming with
standards in the Tigard Community Development Code and
including but not limited to streets, storm drains,
curbs, gutters, sidewalks, bike paths, traffic control
devices, street trees, lights and signs and public right-
of-way.
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(5) Water or Water Line Improvements. Conforming
R with standards in the Tigard Community Development Code
and including but not limited to extending a water line
adjacent to property, other than property owned by the
person, so that water service can be provided for such
other property without further extension of the line.
(6) Sewer or Sewer Line Improvements. Conforming
with standards in the Tigard Community Development Code
and including but not limited to extending a sewer line
adjacent to property, other than property owned by the
person, so that sewer service can be provided for such
other property without further extension of the line.
(7) Zone of Benefit. The area which is determined
by the City Council to derive a benefit from the
construction of street, water or sewer improvements,
which is financed in whole or in part by a person or the
City and includes property, which abuts the street, water
or sewer improvement, utilizes the street, water or sewer~
improvement or has the opportunity to utilize such an
improvement. Street, water and sewer improvements must
be greater than those which would otherwise ordinarily
be required in connection with an application for permit
approval in that they relieve adjacent property owners
of installing such improvements. Examples include but
shall not be limited to full street imp rove-tints instead
of half street improvements, off site sidewalks,
connection of street sections for continuity, extension
of water lines and extension of sewer lines. it is
anticipated that the zone of benefit for purpose of this
ordinance will be different from the area of benefit as
described under the City's local improvement assessment
procedure.
(8) Recovery Agreement Connection Charge or
Connection Charge. The fee required to be paid by
Council resolution and the recovery agreement. The
Council resolution and recovery agreement shall determine
the boundaries of the zone of benefit and shall determine
the methodology for imposing a fee Which considers the
cost of reimbursing another person for financing the
construction of a street, water line or sewer line within
the zone of benefit.
13.08.020 _Frmation of the Zone of Benefit.
(1) Any person who is required or chooses to
finance some or all of the cost of a street, water or
sewer improvement adjacent to property, other than
property owned by the person, so that the owner of
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adjacent property is thereby relieved of such
requirement, may, by written request filed with the City
Engineer, request that the City establish a zone of
benefit. The City may also initiate formation of a zone
of benefit.
(2) The City Engineer shall review a request for
the establishment of a zone of benefit and evaluate
whether a zone should be established. The Engineer may
request the submittal of relevant information from the
person making the request in order to assist in the
evaluation. The Engineer shall prepare a written report,
for the City Council considering and making
recommendations concerning the following factors:
(a) whether the person making the request has
financed, or has been required to finance
some or all of the cost of a street, water
or sewer improvement and thereby provided
an adjacent property with improvements
which would otherwise be required of the
adjacent property;
(b) the area of the zone of benefit, the zone
formation date, and the date when the
right of reimbursement ends. The date
when the right of reimbursement en,�s shall r
not extend beyond ten years from the zone
formation date, except that the City
Council may, by resolution, authorize up
to two five-year extensions of said
deadline, at the Council's option;
(c) the actual cost of the street, water or
sewer improvements within the area of the
proposed zone of benefit and the portion
of the cost for which the person making
the request should be reimbursed;
(d) a methodology for spreading the cost among
the parcels within the zone of benefit and
where appropriate defining a "unit6° for
applying the connection charge to property
which may with approval be partitioned,
altered, modified, or subdivided at some
future date. The methodology shall
consider the cost of the improvements,
prior contributions by adjacent property
owners, the value of the unused capacity,
rate-making principles employed to finance
public improvements, and other relevant
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factors as deemed relevant by the City
Engineer;
(e) the annual percentage rate which shall be
applied to the connection charge on the
anniversary date of the reimbursement
agreement as a return on the investment
for the person or the City. The
percentage rate shall be fixed and
determined by the Council and computed
against the costs as spread among the
parcels within the zone of benefit.
Factors that the Council may consider in
determining the percentage rate include,
but are not limited to, the cost of any
financing (including prepayment points,
prepayment penalties and loan fees and the
actual percentage of interest paid by the
person who is carrying the cost of the
improvement, and opportunity costs lost) .
(3) The cost to be reimbursed to the person making
the request shall be limited to the cost of construction,
including the acquisition and condemnation costs of
acquiring additional right-of-way, the cost of permits,
engineering and legal expenses, interest charges,
administrative expenses and the annual percentage
.., increase fixed and determined by the Council.
(4) The portion of the cost to be refunded shall
be computed by the City on all properties which abut or
are adjacent to the improvements, including the property
of the applicant for formation of a zone of benefit. The
applicant for formation of the zone of benefit shall not
be reimbursed for the amount of the improvement costs
computed on the property developed by the applicant.
(5) The Council shall approve, reject or modify the
recommendations contained in the City Engineer's report.
The Council has the sole discretion to decide whether or
not a zone of benefit is to be established. The
Council's decision shall be embodied in a resolution.
If a zone of benefit is established the resolution shall
include the City Engineer's report as approved or
modified, and specify that payment of the recovery
agreement connection charge, as designated for each
parcel, is a precondition of receiving City permits
applicable to development of that parcel as provided for
in Section 13.08.030.
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(6) The City Recorder shall cause a copy of the
resolution establishing a zone of benefit together with
a description of all affected properties to be filed in
the office of the County Recorder so as to provide notice
to all affected property owners. Said recording shall
not create a lien. Failure to make such a recording
shall not affect the legality of the resolution or the
obligation to pay the recovery agreement connection
charge.
(7) The City Recorder shall also notify all affected
property owners by mailing to them at their last known address
a copy of the resolution.
(8) An affected property owner may petition the City
Council for a hearing at which the Council will consider and
rule upon any objections to the zone of benefit charge.
(9) No petition or other legal action intended to
contest the connection charge, including the amount of
the charge designated for each parcel, shall be filed
after 60 days following adoption of a resolution
establishing a zone of benefit.
13.08.030 Obligation to Pav Recovery Agreement Connection Charge.
(1) An owner of property within any zone of benefit
shall pay to the City, in addition to any other
applicable fees and charges, the recovery agreement
connection charge established by the Council, together
with the accrued interest rate, if within ten (10) years
from the zone formation date or within the time specified
in the resolution establishing the zone, the owner
applies for and receives approval from the City for any
of the following activities:
(a) A building permit for a new building,
(b) A building permit for any addition,
modification, repair or alteration of a
building, which exceed twenty-five percent
(25%) of the value of the building within
any I2--month period. The value of the
building shall be the amount shown on the
most current records of the County
Department of Assessment and Taxation for
the building's true cash value. This
paragraph shall not apply to repairs made
necessary due to damage or destruction by
fire or other natural disaster,
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(c) Any alteration, modification or change in
the use of real property, which increases
the number of parking spaces required
under the Tigard Community Development
Code in effect at the time of permit
application,
(d) Connection to the water line, if the water
line is subject to a recovery agreement
connection charge,
(e) Connection to the sewer line, if the sewer
line is subject to a recovery agreement
connection charge.
(f) Connection to a street, if the street is
subject to a recovery agreement connection
charge.
(2) The City's determination of who shall pay the
recovery agreement connection charge is final. Neither
the City nor any officer or employee of the City shall
be liable for payment of any recovery agreement
connection charge, accrued percentage rate, or portion
thereof, except that the City will be responsible to pay
any charge levied against property owned by the City and
located within the zone of benefit. An applicant for the
y formation of a zone of benefit shall agree to defend and
indemnify the City from any claims arising as a result
of or related to the City's approval of the application,
provided that the City has acted reasonably.
(3) The right of reimbursement is assignable and
transferable after written notice is delivered to the
City, advising the City to whom future payments are to
be made.
(4) The City shall establish separate funds for
each zone of benefit. Upon receipt of a connection
charge, the City shall cause a record to be made of that
property's payment and remit the charge to the person who
requested establishment of the zone of benefit or their
assignee, less an amount equal to five percant (5%) of
the charge for administration of the agreement by the
City. The applicant may petition the City Council for
a reduction in the administration fee on the basis that
a five percent charge would be inequitable.
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(5) No person shall be required to pay the recovery
agreement connection charge on an application or upon
property for which the connection charge has been
previously paid, unless such payment was for a different
type of improvement. No permit shall be issued for any
of the activities listed in subsection 13.08.030(1)
unless the recovery agreement connection charge, together
with any accrued interest, has been paid in full. Where
approval is given as specified in subsection
13.08.030(1) , but no permit is requested or issued, then
the requirement to pay the recovery agreement connection
charge lapses if the underlying approval lapses.
13.08.040 ApplicobI1ity.
(1) Application for formation of a zone of benefit
may be made at any time but shall be made no later than
three months after completion and acceptance of the
street, water or sewer improvements.
(2) A person whose property is subject to payment
of a recovery agreement connection charge receives a
benefit from the construction of street improvements,
regardless of whether access is taken or provided
directly onto such street at any time. Nothing in this
ordinance is intended to modify or limit the authority
e
of the City to provide or require access management.
(3) The recovery agreement connection charge is not
intended to replace or limit, and is in addition to, any
other existing fees or charges collected by the City.
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860tion 2. Severability, The sections of this ordinance are
*` severable, In the event any portion or provision is held to be
unenforceable or invalid by any court of competent jurisdiction,
the remainder of this ordinance shall remain in full force and
effect and shall in no way be affected or invalidated thereby.
F� A
PASSED AND APPROVED this cad ' da off C C,• , 1990.
rad wards, Mayor
ATTEST:
Catherine Wheatley,'�City R order
APPROVED AS TO F?RM:
�G y Attorne
(7,'
I Date 111
and\tigard\reimburs.ord
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