Ordinance No. 94-10 • R 1 R
R
CITY OF TIGARD
ORDINANCE No. • /D
AN ORDINANCE OF THE CITY OF TIGARD REPEALING TIGARD MUNICIPAL CODE
CHAPTER 13 08, STREET, SEWER AND WATER IMPROVEMENTS; ADDING CHAPTER
13.09, REIMBURSEMENT DISTRICTS, WHICH PROVIDES A NEW PROCESS FOR
FORMATION OF A REIMBURSEMENT DISTRICT; AND CLASSIFYING THE FEES
IMPOSED BY CHAPTER 13.09 AS NOT SUBJECT TO ARTICLE XI, SECTION 11B
OF THE OREGON CONSTITUTION.
WHEREAS, a person may construct street, water and sewer
improvements which benefit adjacent property owners and relieve
those adjacent property owners of installing such improvements; and
WHEREAS, in 1990, the City Council adopted a process (^MMC Chapter
13.08) to impose a connection charge on adjacent property owners
who are benefited by such street, water and sewer improvements; and
WHEREAS, the City Engineer has recommended numerous changes to the
process in 'Chapter 13.0E and the City Council finds that the
suggested changes will be beneficial; now, therefore:
THE CITY OF TIGARD ORDAINS AS FOLLOWS:
SECTION 1: Ordinance No. 90-23, codified as Tigard Municipal
Code Chapter 13.08, is repealed.
SECTION 2: The Tigard Municipal Code is amended by adding
Chapter 13.09, Reimbursement Districts, attached
hereto as Exhibit "A" and incorporated herein by
this reference.
SECTION 3 The City Council finds that the fees imposed by
Chapter 13x09 of the Tigard municipal Code are not
taxes subject to the property tax limitations of
Article XI, section 11(b) of the Oregon
Constitution
Ordinance No. 94--ID—
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PASSED: By V—AADINMO vote of all Council members
present after being read by number and title only,
this 10014 day F Im _,, 1994.
Ca Brine Wheatley, City Rec der
APPROVED: This �v — clay of �_ , 1994.
,6;,kA�
May
Approved as to form:
Cit At orney
U
Date
Ordinance No. 94--. ,2
Adh Page 2
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E $I$]tT IIA#1
S#oBte_r 13.09_ ,
RBIMBURSMHT DISTRICTS
i3.o9o?0 p2finitiong.
(1) "City Engineer" or "Engineer" means the person
holding the position of City Engineer or any officer or
employee designated by that person to perform duties
stated within this chapter.
(2) "City" means the City of Tigard.
(3) "Person" means 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.
(4) "Applicant" means a person, as defined in
subsection (3), who is required or chooses to finance
soma or all of the cost of a street, water or sewer
improvement which is available to provide service to
property, other than property owned by the person, and
who applies to the City for reimbursement for the expense
of the improvement. The 'applicant" may be the City.
(5) "Street Improvement" means a street or street
improvement 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 wid
signs and public right-of-way.
(6) "Water Improvement" means a water or *water line
improvement conforming with standards in the Tigard
Community Development Code and including but not limited
to extending a water line to property, other than
property owned by the applicant, so that water service
can br provided for such other property without further
extension of the line.
(7) "Sewer Improvement" means a sewer or sewer line
improvement conforming with standards in the Tigard
Community Development Code and including but not limited
to extending a sewer line to property, other than
property owned by the applicant, so that sever service
can be provided for such other property without. further
extension of the line.
ordinance No. � • /®
Exhibit 'A"
Page 1 of 10
(8) "Reimbursement District" means the area which
is determined by the City Council to derive a benefit
from the construction of street, water or sewer
improvements, financed in whole or in part by the
applicant and includes property which has the opportunity
to utilize such an improvement.
(9) "Reimbursement Fee" means the fee requir=ed to
be paid by a resolution of the City Council and the
reimbursement agreement. The City Council resolution and
reimbursement agreement shall determine the boundaries of
the reimbursement district and shall determine the
methodology for imposing a fee which considers the cost
of reimbursing the applicant for financing the
construction of a street, water or sewer improvement
within the reimbursement district.
13.09.020 Rlieation for a Reimbursement District
(1) Any person who is required to or chooses to
finance some or all of the cast of a street, water or
sewer improvement which is available to provide service
to property, other than property owned by the person,
may, by written application filed with the City Engineer,
request that the City establish a reimbursement district.
The street, water and sewer improvements muat include
improvements in addition to or in a size greater than
these which would otherwise ordinar=ily be required in
connection with an application for permit approval or
must be available to provide service to property other
than property owned by the applicant. Examples include
but shall not be limited to full street improvements
instead of half street improvements, off site sidewalks,
connection of street sections for continuity, extension
of water lines and extension of sewer lines. The City
may also initiate formation of a reimbursement district.
The application shall be accompanied by a fee, as
established by resolution, sufficient to cover the cost
of administrative review and notice pursuant to this
Chapter.
(2) The application shall include the following:
(a) A description of the location, type, size
and cost of the public improvement to be
eligible for reimbursement.
Ordinance No.
Exhibit "A"
Page 2 cf 10
(b) A map showing the properties to be
included in the proposed reimbursement
district; the zoning district for the
properties; the front footage or uquars
footage of said properties, or similar data
necessary for calculating the apportionment of
the cost; and the property or properties owned
by the applicant.
(c) Post-construction: The actual cost of
the improvements as evidenced by receipts,
invoices or other similar documents. Pre-
construction: The estimated cost of the
improvements as evidenced by bids, projections
of the cost of labor and materials, or other
evidence satisfactory to the City Engineer.
(d) Post-construction: The date the City
accepted the public improvements. Pre-
construction: The estimated date of
completion of the public improvements.
(3) Application for formation of a reimbursement
district 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. Howe ar, the
City Engineer may waive this requirement upon the showing
by the applicant of good cause for the delay, that the
delay was not crated by the applicant, and that the
delay was unavoidable due to unanticipated or unforseen
circumstances.
13 09 030 City Engineer's Report
The City Engineer shall review the application for
the establishment of a reimbursement district and
evaluate whether a district should be established. The
Engineer may request the submittal of other relevant
information from the applicant 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 applicant will finance or has
financed some or all of the cost of a street,
water or sewer improvement, thereby making
service available to property, other than
property owned by the applicant;
ordinance No.
Exhibit "A"
Page 3 of 10
(b) the area to be included in the
reimbursement district;
(c) the actual or estimated cost of the
street, water or sewer improvements within the
area of the proposed reimbursement district
and the portion of the cost for which the
applicant should be reimbursed;
(d) a methodology for spreading the cost
among the parcels within the reimbursement
district and where appropriate defining a
"unit" for applying the reimbursement fee to
property which may, with City approval, be
partitioned, altered, modified, or subdivided
at some future date. The methodology should
include consideration of the cost of the
improvements, prior contributions by property
owners, the value of the unused capacity,
rate-making principles employed to finance
public improvements, and other factors deemed
relevant by the City Engineer. Prior
contributions by property owners will only be
considered if the contribution was for the
same type of improvement and at the same
location (example: a sewer-related
contribution in the same location as a sewer
improvement wound be considered, a water-
related contribution in the same location as a
sewer improvement would not be considered);
(e) the reimbursement fee shall be adjusted
annually beginning on -the first anniversary of
the date of the reimbursement agreement as a
return on the investment for the person or the
City. The annual fee adjustment shall be
fixed and determined by the Council and
computed against the reimbursement fee as
simple interest and will not compound. The
City Engineer may take into account the
documented cost of any financing, including
prepayment points, prepayment penalties, loan
fees,- and the actual percentage rate of
interest being paid by the applicant, when
recommending the annual fee adjustment to the
City Council;
Ordinance No-. 4N`e
Exhibit "A91
Page 4 of 10
(f) the amount to be charged by the City for
administration of the agreement by the City.
The administration fee shall be fixed by the
Council -and will be included in the resolution
approving and forming the reimbursement
district. The administration fee is due and
payable to the City 'at the time the agreement
in Section 13.09.0770(2) is signed.
(g) the period of time that the right to
reimbursement exists if the period is less
than fifteen years.
13.09,040 Amount to be Reimbursed
(1) The cost to be reimbursed to the applicant
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, and the anneal fee adjustment fixed
and determined by the Council.
(2) A reimbursement fee shall be computed by the
City for all properties which have the opportunity to
utilize the improvements, including the property of the
applicant for formation of a reimbursement district. The
applicant for formation of the reimbursement district
shall not be reimbursed for the portion of the
reimburserant fee computed for the property of the
applicant.
3.3.09.050 Public Hearing
(1) Within a reasonable time after the City
Engineer has completed the report required in Section
13.09.030, the City Council shall hold art informational
public hearing in which any person shall be given the
opportunity to comment on the proposed reimbursement
district. Because formation of the reimbursement
district does not result in an assessment against
property or lien against property, the public hearing is
for informational purposes only and is not subject to
mandatory termination because of remonstrances. The City
Council has the sole discretion after the public hearing
to decide whether a resolution approving and forming the
reimbursement district shall be adopted.
ordinance No.
Exhibit "An
Page 5 of 10
(2) If a reimbursement district is formed prior to
construction of the improvement(s) , a second public
hearing shall be held after the improvement has been
accepted by the City. At that time, the City Council may
modify the resolution to reflect the actual cost of the
improvement(s) .
13.09.060 Notice of I!ublic Hearina
Not less than 10 nor more than 30 days prior to any
public hearing held pursuan', to this Chapter, the
applicant and all owners of praperty within the proposed
district shall be notified of such hearing and the
purpose thereof. Such notification shall be accomplished
by either regular mail or personal service. If
notification is accomplished by mail, notice shall be
mailed not less than 13 days prior to the hearing.
Notice shall be deemed effective on the date that the
letter of notification is mailed. Failure of the
applicant or any affected property owner to be so
notified shall not invalidate or otherwise affect any
reimbursement district resolution or the City Council's
action to approve the same.
13.05 .070 City Council Action
(1) After the public hearing held pursuant to
Section 13.09.050(2), the City Council shall approve,
reject or modify the recommendations contained in the
City Engineer'u report. The City Counciles decision
shall be embodied in a resolution. If a reimbursement
district is established, the resolution shall include the
City Engineers report as approved or modified, and
specify that payment of the reimbursement fee, as
designated for each parcel, - is a precondition of
receiving City permits applicable to development of that
parcel as provided for in Section 13.09.110.
(2) when the applicant is other than the City, the
resolution shah ins':ruct the City Administrator to enter
into an agreement with the applicant pertaining to the
reimbursement district improvements. If the agreement is
entered into prior to construction, the agreement skull
be contingent capon the improvements being accepted by the
City. The agreement, at a minimum, shall contain the,
following provisions:
(a) The public improvement s) shall meet all
applicable City standards.
Ordinance Nva
-
Exhibit RAr
Page 6 of 10
(b) The total amount of potential
reimbursement to the applicant.
(c) The annual fee adjustment set by the City
Council.
(d) The applicant shall guarantee the public
improvement(s) for a period of 12 months after
the date of installation.
(e) The applicant shall defend, indemnify and
hold harmless the City from any and all
dosses, claims, damage, judgments or other
costs or expense arising as a result of or
related to the City's establishment of the
district.
(f) The applicant shall acknowledge that the
City is not obligated to collect the:
reimbursement fee from affected property
owners.
(g) Other previsions as the City Council
determines necessary and proper to carry out
the provisions of this Chapter.
(3) If a reimbursement district is established by
the City Council, the date of the formation of the
district shall be the date that the City Council adopts
the resolution forming the district.
13 09 060 Notice of Adoption of Resolution
The City shall notify all property owners within the
district and the applicant of the adoption of a
reimbursement district resolution. The notice shall
include a copy of the resolution, the date it was adopted
and a short explanation of when the property owner is
obligated to pay the reimbursement fees and the amount of
the fee.
13.09.090 HScordincr_the Resolution
The City Recorder shall cause notice of the
formation and nature of the reimbursement district to be
fi3.ed in the office of the County Recorder so as to
provide notice to potential purchasers of property within
the district. 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
ordinance No.
Exhibit "A:'
Page 7 of 10
' c
reimbursement fee.
n.Qa.iQo Contesting thn Reimbursement Diatr ct
No legal action intended to contest the formation of
the district or the reimbursement fee, including the
amount of the charge designated for each parcel, -shall be
filed after 60 days following adoption ,of a resolution
establishing a reimbursement district.
13.Q9,110 obligation to Pay Reimbursement Fee
(1) The applicant for a permit related to property
within any reimbursement district shawl pay to the City,
in addition to any other applicable fees and charges, the
reimbursement fee established by the Council, together
with the annual fee adjustment, if within the time
specified in the resolution establishing the district,
the person applies for and receives approval from the
City for any of the following activities:
(a) A building permit for a new building;
(b) Building permit:(s) for any addition(s) ,
modification(s) , repair(s) or alteration(s) of
a building, which exceed twenty-five percent
(25%) of the value of the building within any
12-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 real market
value. This paragraph shall not apply to
repairs rade necessary due to damage or
destruction by fire or other natural disaster;
(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 or use of a water
improvement, if the reimbursement district is
based on the water improvement;
(e) Connection to or use of a sewer
improvement, if the reimbursement district is
based on the sewer improvement;
ordinance No. �•0�
ALIN Exhibit "An
Page 8 of 10
fes\ r;nnnAn}inn to or use of a street
a , v.... .........
improvement, if the reimbursement district is
based on the street improvement.
(2) The City's determination of who shall pay the
reimbursement fee is final. Neither. the City nor any
officer or employee of the City shall be liable for
payment of any reimbursement fee, annual fee adjustment,
or portion thereof as a result of this determination.
(3) A permit applicant whose property is subject to
payment of a reimbursement fee 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 of the City to
provide or require access management.
(4) No person shall be required to pay the
reimbursement fee on an application or upon, property for
which the reimbursement fee 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 13.09.110(1) unless the
reimbursement fee, together with the annual fee
adjustment, has been paid in full. Where approval is
given as specified in subsection 13.09.110(1), but no
permit is requested or issued, then the requirement to
pay the neimbursement fee lapses if the underlying
approval lapses.
(5) The date when the right of reimbursement ends
shall not extend beyond fifteen years from the district
formation date.
13.09.120 Administration
(1) 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.
(2) The City shall establish separate accounts for
each reimbursement district. Upon receipt of a
reimbursement fee, the City shall cause a record to be
made of that property's pwIment and remit the fee to the
person who requested establishmeaat of the reimbursement
district or their assignee.
Ordinance No. �`#•��
Exhibit "A"
Pacer 9 of' 10
(r) The reimbursement ;dee is not intended to
replace or limit, and is in addition to, any other
existing fees or charges collected by the City.
jmcMnd\tigerd\refmbure.or3
ordinance No.
Exhibit "P_"
Page 10 of 10,