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Resolution No. 92-11 CITY OF TIGA_RD, OREGON RESOLUTION NO. 92-�_ A RESOLUTION ESTABLISHING THE McDONALD STREET SANITARY SEWER 3 REIMBURSEMENT DtSTRICT i WHEREAS, certain sanitary sewer improvements have been completed within the right of wav 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 an 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 provided for in TMC 13_08.030. Section 4. An annual percentage rate of 7.0% shall be applied to the connection charge on the anniversary date of the reimbursement agreement in accordance with TRIC 13.08.020(b) (5) . RESOLUTION NO. 92-�__ ( Page 1 3 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) . it 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 their o last known resknown ution to address,all anfecacco pdance tyw th T owners at 13.08.020(f) and (g) . PASSED: Thisc�� day of -f1&A 1992. Cpity of Tigard j ATTEST: a�ri�CL i 1LS���+n G—y Recorder - City of Ti a.rd zM-im�a-res RESOLUTION NO. 92- Page 2 Exhibit A t City Engineer's Report EYCDO.VAT.D STREET SANIT''ARY SE4ER REIMBIIRSEMEPTT 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'F 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 t4cDorald 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 sewer construction, including The total cost of the sanitary se c , g Y engineering and inspection costs, is $136,246.11. All of this cost are should be reimbursed to the sanitary sewer fund as properties 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 70 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 C Randall R. Wooley City Engineer BLVD- HAtx- SW 2S1 20D 803 - g 2S1 2DD 906 251 IIAA 87TH CT. Soo _� 2S1 1 1AA� !� ma 28 Soo uj 600` 'i uj LLJ Lu 251 ;IAA \ f1•, cc 80 UJ 255 0 700 g CZ 251 2DD 80'1 2S1 IiPA m = 21303 DC 80C '.x11 � � UJ 251 2DC 251 frAA 900 l� 1302 12S? I 1 AA 7000 cIm 251 20C \ \ M 1301 251 IfAA 1100 2S1 2DC 231 11AB 101 2500 251 I f AB 200 � 231 IIAB 0 251 IIAB 300 vy^ O H 2S1 2DC 251 11AB ~_ 2 2900 m cs fl. d � � O x � W ®p 251 2DC C� F-- ,230 =\230It ui �O Id 3 u U d 251 2DC 0 sw 93RD AVENUE 2 2200 251 20C '� �•' 2100 —p sl 251 2CD 2900 A $ 251 2CR 2902 uj I 13,1111 1:iiil 111 i EXHIBIT C Those parcels situates!in Southeast u of Section 2 and Northeast:w 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. J.McDonald Street beginning at S.W Hail Boulevard extending west 1500 feet (more or less)to and include that parcel deeded to Monte R.and Karen 1.Mullen and recorded in document 947-535 in said County records. EXCEPTING that parcel North of McDonald Street described in document 85-43825. I i