Ordinance No. 93-33 ORDINANCE NO. 23-33
AN ORDINANCE OF THE CITY OF TIGARD, OREGON, AUTHORIZING THE
IMPOSITION OF SYSTEM DEVELOPMENT CHARGES, AND DECLARING AN
EMERGENCY.
WHEREAS, the cities of Tigard, King City and Durham withdrew from
the Tigard District effective July 1, 1993; and
WHEREAS, Tigard, King City, Durham and the remnant Tigard Water
District formed the Southeast Washington County Joint Water Agency
(SEWCJWA) by intergovernmental agreement pursuant to ORS Chpt. 190;
and
WHEREAS, SEWCJWA imposed the system development charges adopted by
the Tigard Water District pursuant to ORS 190.030; and
WHEREAS, King City, Durham, Tigard and the Tigard Water District
agree that it is in their best interest if they were to be an
integrated part of a water supply network receiving water service
from Tigard's city water department; and
WHEREAS, the intergovernmental agreement creating SEWCJWA will
terminate on December 31, 1993 and thereafter Tigard will provide
water service to King City, Durham and the remnant Tigard Water
District; and
WHEREAS, Tigard, King City and Durham all wish to adopt system
development charges consistent with those adopted by the Tigard
Water District; and
WHEREAS, this ordinance will also authorize the imposition of
system development charges after adoption of an appropriate
methodology for capital improvements other than water system
improvements; now, therefore:
THE CITY OF TIGARD ORDAINS AS FOLLOWS:
Section 1. Chapter 3.24, Systems Development Charges, is
added to the Tigard Municipal Code and is
attached hereto as, Exhibit "A".
Sectign 2. The City Council finds that the collection of
system development charges is vital to making
capital improvements which benefit the health
and safety of the City's residents; therefore
an emergency is declared and this ordinance
shall take effect upon its passage.
section 3• The invalidity of a Section or subsection of
this Chapter shall
subsectionsidity of
the remaining
sections or
section 4._ The City Council determines that any fees'
rates or charges imposed by this ordinance are
not a tax subject to the property tax
limitations of Article XI, Section 11 (b) of
the Oregon Constitution.
By JLf Q n i rr?oU S vote of all Council members present after
being read by number and title only, this g?/�:._._ day of.1 -
A, 1993.
Catherine Wheatley, City corder
APPROVED: This
o� day of , 1993.
Gerald R. Edwards, Mayor .
App oved as to form:
F
t Attorney
Date
ac6\dpid�V� �
I
i.
EXHIBIT "A"
Chapter 3.24
Systems Development Charges
3.24.010 Purpose.
This Chapter is intended to provide &uthorization for system
development charges for capital improvements pursuant to ORS
223.297 - 223.314 for the purpose of creating a source of funds to
pay for the installation, construction, and extension of capital
improvements. These charges shall be collected at the time of the
development of properties which increase the use of capital
improvements and generate a need for those facilities. The
provisions of this Chapter are not applicable to the parks system
development charge established by the Tigard Municipal Code Chapter
3.16 and the street system development charge established by the
Tigard Municipal Code Chapter 3.20.
3.24.020 ScgJM,
The system development charges imposed by this Chapter are
separate from and in addition to any applicable tax, assessment,
charge, or fee otherwise provided by law or imposed as a condition
of development.
3.24.030 Definitions.
Capital Improvements. Facilities or assets used for:
(1) Water supply, treatment and distribution;
(2) Sewage and wastewater collection, transmission,
treatment and disposal; or
(3) Drainage and flood control;
pevelopment. Conducting a building or mining operation,
making a physical change in the use or appearance of a structure or
land, or creating or terminating a right of access.
Improvement fee. A fee for costs associated with capital
improvements to be constructed after the date the fee is adopted
pursuant to Section 3.24.040 of this Chapter.
Land Area. The area of a parcel of land as measured by
projection of the parcel boundaries upon a horizontal plane with
the exception of a portion of the parcel within a recorded right-
of-way or easement subject to a servitude for a public street or
scenic or preservation purpose.
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Owner. The owner(s) of record title or the purchaser(s) under
a recorded sales agreement, and other persons having an interest of
record in the described real property.
Parcel of land. A lot, parcel, block or other tract of- land
that is occupied or may be occupied by a structure or structures or
other use, and includes the yards and other open spaces required
under the zoning, subdivision, or other development Chapters.
Permittee. The person to whom a Building Permit, Development
Permit, Permit to Connect to the sewer or water system or Right-of-
Way Access Permit is issued.
Qualified RUblic imRroyement. A capital improvement that is:
(1) Required as a condition of development approval;
(2) Identified in the plan adopted pursuant to Section
3.24.070 of this Chapter; and either,
(3) Not located on or contiguous to a parcel of land
that is the subject of the development- approval;
(4) Located in whole or in part on or contiguous to
property that is the subject of development
approval and required to be built larger or with
greater capacity than is necessary for the
particular development project to which the
improvement fee is related.
Reimbursement fee. A fee for costs associated with capital
improvements constructed or under construction on the date the fee
is adopted pursuant to Section 3.24.040 of this Chapter.
System development charge. A reimbursement fee, an
improvement fee or a combination thereof assessed or collected at
the. time of increased usage of a capital improvement, .at the time
of issuance of a development permit or building permit, or at the
time of connection to the capital improvement. "System development
charge" includes that portion of a sewer or water system connection
charge that is greater than the amount necessary to reimburse the
city for its average cost of inspecting .and installing connections
with water and sewer facilities. "System development charge" does
not include fees assessed or collected as part of a local
improvement district or a charge in lieu of a local improvement
district assessment, or the cost of complying with requirements or
conditions imposed by a land use decision.
3.24.040 System Development Charge Imposed; Method For
Establishment Created.
(1) Unless otherwise exempted by the provisions of this
Chapter or other local or state law, a systemsdevelopment charge
is hereby imposed upon all development within the city, upon the
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act of making a connection to the city water or sewer system within.
the city, and upon all development outside the boundary of the city
that connects to or otherwise uses the sewer or water facilities of
the city.
(2) Systems development charges shall be established and may
be revised by resolution of the city council. The resolution shall
set the amount of the charge, the type of permit to which the
charge applies, the methodology used to set the amount of the
charge and, if the charge applies to a geographic area smaller than
the entire city, the geographic area subject to the charge.
3.24.050 Methodology_
(1) The methodology used to establish the reimbursement fee
shall consider the cost of the then-existing facilities, prior
contributions .by then-existing system users, the value of unused
capacity, rate-making principles employed to finance publicly owned
capital improvements, and other relevant.factors identified by the
council. The methodology shall promote the objective that future
systems users shall contribute no more than an equitable share of
the cost of then-existing facilities.
(2) The methodology used to establish the improvement fee
shall consider the cost of projected capital improvements needed to
increase the capacity of the systems to which the fee is related
and other relevant factors identified by the council.
(3) The methodology used to establish the improvement fee or
the reimbursement fee, or both, shall be adopted by resolution.
3.24.060 Authorized Extiendit ureas
(1) Reimbursement fees shall be applied only to capital
improvements associated with the systems for which the fees are
assessed, including expenditures relating to repayment of
indebtedness.
(2) (a) Improvement fees shall be spent only on capacity
increasing capital improvements, including expenditures relating to
repayment of debt for such improvements. An increase in system
capacity occurs if a capital improvement increases the level of
performance or service provided by existing facilities or provides
new facilities. The portion of the improvements funded by
improvement fees must be related to demands created by current or
projected development.
(2) (b) A capital improvement being funded wholly or in part
from revenues derived from the improvement fee shall be included in
the Systems Development Charge Funding Project Plan adopted by the
city pursuant to Section 3.24.070 of this Chapter.
(3) .Notwithstanding subsections (1) and (2) of this Section,
system development charge revenues may be expended on the direct
costs of complying with the provisions of this Chapter, including
the costs of developing system development charge methodologies and
providing an annual accounting of system development charge funds.
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3.24 070 E==nd{tore Restri tions,_
(1) System development charges shall not be
expended for
costs associated with the construction of administrativeoffice
facilities that are more than an incidental part of other capital
improvements.
(2) System development charges shall not be expended for
costs of the operation or routine maintenance of capital
improvements.
3.24.080 Project Plan.
The council shall adopt by resolution the Systems Development
Charge Funds Project Plan. This Plan:
(1) Lists the capital improvements that may be funded with
improvement fee revenues; and
(2) Lists the estimated cost and time of construction of each
improvement.
In adopting this plan the city council may incorporate by
reference all or a portion of any public facilities plan, master
plan, capital improvements plan or similar plan that contains the
information required by this Section. The city may modify this
project plan at any time through the adoption of an appropriate
resolution. There may be a separate plan for each system, or the
plan may include improvements from more than one system.
3.24.090 Collection of Charcre,
of (1) The systems development charge is payable upon issuance
(a) A building permit;
(b) A development permit for development not requiring
the issuance of a building permit;
(c) A permit to connect to the water system;
(d) A permit to connect to the sewer system; or
(e) A right-of-way access permit.
The resolution which sets the amount of the charge shall
designate the permit or permits to which the charge applies.
(2) If development is commenced or connection is made to the
water system, sewer system or storm sewer system without an
appropriate permit, the system development charge is immediately
payable upon the earliest date that a permit was required.
(3) The City Administrator or the designee shall collect the
applicable system development charge from the permittee.
(4) The City Administrator or the designee shall not issue
such permit or allow connection until the charge has been paid in
full, unless provision for installment payments has been made
pursuant to Section 3.24.100 of this Chapter, or unless an
exemption is granted pursuant to Section 3.24.130 of this Chapter.
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3.24.100 Instal went Pa t._
(1) When a system development charge is due and payable, the
permittee may apply for payment in twenty (20) semi-annual
installments, secured by a lien on the property upon which the
development is to occur or to which the utility connection is to be `
made, to include interest on the unpaid balance, if that payment 1
option is required to be made available to the permittee by ORS . I!
223.207.
(2) The City Administrator or designee shall provide
application forms for installment payments, which shall include a
waiver of all rights to contest the validity of the lien, except
for the correction of computational errors.
(3) A permittee requesting installment payments shall have
the burden of demonstrating the permittee's authority to assent to
the imposition of a lien on the property and that the interest of
the permittee is adequate to secure payment of the lien.
(5) The City Administrator or designee shall docket the lien
in the lien docket. From that time, the city shall have a lien
upon the described parcel for the amount of the system development
charge, together with interest on the unpaid balance at the rate
established by the council. The lien shall be enforceable in the.
manner provided in ORS Chapter .223, and shall be superior to all
other liens pursuant to ORS 223.230.
3.24.110 ExQmntions.
(1) structures and uses established and existing on or before
the effective date of the resolution which sets the amount of the
system development charge are exempt from the charge, except water
and sewer charges, to the extent of the structure or use existing
on that date and to the extent of the parcel of land as it is
constituted on that date. Structures and uses affected by this
subsection shall pay the water or sewer charges pursuant to the
terms of this Chapter upon the receipt of a permit to connect to
the water or sewer system.
(2) Additions to single-family dwellings that do not
constitute the addition of a dwelling unit, as defined by the
Building Code adopted pursuant to §14.04 of this Code, are exempt
from all portions of the system development charge.
(3) An alteration, addition, replacement or change in use
that does not increase the parcel's or structure's use of a capital
improvement are exempt from all portions of the system development
charge.
3.24.120 Credits.
(1) When development occurs that is subject to a system
development charge, the system development charge for the existing
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i
use, if applicable, shall be calculated and if it is less than the
system development charge for the use that will result from the
development, the difference between the system development charge
for the existing use and the system development charge for the
proposed use shall be the system development charge. If the change
in the use results in the system development charge for the
proposed use being less than the system development charge for the
existing use, no system development charge shall be required, i
however, no refund or credit shall be given unless provided for by
another subsection of this Section.
(2) A credit shall be given to the permittee for the cost of
a qualified public improvement upon acceptance by the city of the
improvement. The credit provided for in this subsection shall be
only for the improvement fee charged for the type of improvement
being constructed, and credit for qualified public improvements may
be granted only for the cost of that portion of such improvement
that exceeds the city's minimum standard facility size or capacity.
needed to serve the particular development project or property.
The applicant shall have the burden of demonstrating that a
particular improvement qualifies for credit under this subsection.
The request for credit shall be filed in writing no later than 60
days after acceptance of the improvement by the city.
(3) When establishing a methodology for a system development
charge, the city may provide for a credit against the improvement
fee, the reimbursement fee, or both, for capital improvements
constructed as part of the development which reduce the
developmentfs demand upon existing capital improvements and/or the
need for future capital improvements, or a credit based. upon any
other rationale the council finds reasonable.
(4) When the construction of a qualified public .improvement
gives rise to a credit amount greater than the improvement fee that
would otherwise be levied against the project receiving development
approval, the excess credit may be applied against improvement fees
that accrue in subsequent phases of the original development
project. Credit shall not be transferable from one development to
another.
(5) Credits shall not be transferable from one type of system
development charge to another.
(6) Credits shall be used within 10 years from the date the
credit is given.
3.24.130 Notice.
The city shall maintain a list of persons who have made a
written request for notification prior to adoption or amendment of
a methodology for any system development charge. Written notice
shall be mailed to persons on the list at least 45 days prior to
the first hearing to adooprtor tin the adopend a tion or amendment shament llgbe
and the methodology supporting P
available at least 30 days prior to the first hearing to adopt or
amend. The failure of a person on the list to receive a notice
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that was mailed shall not invalidate the action of the city. The
city may periodically delete names from the list, but at least 30
days prior to removing a name from the list must notify the persons
whose name is to be deleted that a new written request
notification is required if the person wishes to remain othe
notification list.
3.24.140 a inn
(1) All funds derived from a particular t
development charge are to be segregated by accounting of system
from all other funds by the cit g Practices
developmenty• That portion of the system
charge calculated and collected on account of a
specific facility system shall be used for no purpose other than
those set forth in this Chapter.
(2) The City Administrator shall provide an
accounting, based on the city�s fiscal year, of system developmnent
charges showing the total amount of system development charge
revenues collected for each type of charge and the projects funded
from each account.
3.24.15n ADneal PYOCed Mro
(1) A person a �
ggrieved by a decision required or permitted to
be made by the City Administrator under this Chapter or a
challenging the propriety of an a person
charge revenues may a expenditure of system development
city council by y ppeal the decision or the expenditure to the
Administrator describing with particularita written y request
decision o City
City Administrator or the expenditure from which the f the
appeals. person
(2) An appeal of an expenditure must be filed within two
years of the date of the alleged improper expenditure. Appeals of
any other decision must be filed within thirt
date of the decision. y (30) days of the
(3) The council shall determine whether the City
Administrators decision or the expenditure is in accordance with
this Chapter and the provisions of ORS 223.297-.314 and may
affirm, modify, or overrule the decisions. If
the
determines that there has been an improper expenditure Ofcouncil system
development charge revenues, the council shall direct that a sum
equal to the misspent amount shall be deposited within one year of
the date of that determination to the credit of the account or fund
from which it was spent. The decision of the council shall be
reviewed only as provided in ORS 34.010 to 34.100 and not
otherwise.
(4) A legal action challenging the methodology adopted by the
council pursuant to Sections 3.24.040 and 3.24.050 of this Chapter
shall not be filed later than sixty (60) days after the adoption.
A person shall contest the methodology used for calculating a 3
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system development charge only as provided in ORB 34.010 to 34.100,
and not otherwise.
3.24.160 Prohibited Connection_
No person may connect to the water or sewer systems of the
city unless the appropriate system development charge has been
paid.
3.24.170 Penalty.
Violation of this Chapter is a Class A infraction punishable
by a fine not to exceed $500.
3.2,4.180 Construction.
The rules of statutory construction contained in ORS Chapter
174 are adopted and by this reference made a part of this Chapter.
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