Resolution No. 92-27 WSW ----
CITY OF TIGARD, OREGON 1
RESOLUTION NO. 92- f �
A RESOLUTION ESTABLISHING THE EDITH JOHNSON SANITARY SEWER REIMBURSEMENT
DISTRICT
WHEREAS, sanitary sewer improvements have been constructed in SW
McDonald Street extending a sewer line west from SW 97th Avenue for a
distance of approximately 205 feet; and,
WHEREAS, all costs of said sewer construction have been paid by Edith
Johnson; and,
WHEREAS, formation of a zone of benefit has been requested by Edith
Johnson; 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 "Edith Johnson 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 and described on Exhibit B. The zone of
benefit shall be known as the "Edith Johnson Sanitary
Sewer Reimbursement District".
Section 3. Payment of the recovery agreement connection charge as
shown in Exhibit C 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 4.5% shall be applied to the
connection charge on the anniversary date of the
reimbursement agreement in accordance t-ith TMC
13.08.020111 (5) _
Section 5. The zone formation date is June 12, 1991. The right of
reimbursement shall end on June 12, 2001, unless extended
by the Council in accordance with TMC 13.08.020(b) (2) .
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RESOLUTION NO. 92-f
Page 1
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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 of this resolution to all affected
property owners at their last known address, in
accordance with TMC 13-98.020(f) and (g)
PASSED: This L¢i d-'y of�% �ltv F , 1992.
_r-Eayor City of Tigard
ATTEST:
bbCity Recorder - City of TigAlrd
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RESOLUTION NO. 92-
Page 2
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Exhibit A
City Engineer's Report
EDITH JOHNSON SAXITARy SEWER REIMBURSEMENT DISTRICT
Background
In 1991, a sanitary sewer line was extended in SW McDonald Street
to serve a property owned by Edith Johnson. The line was extended
west from 97th Avenue for a distance of approximately 205 feet.
The line can also serve two other lots along the north side of
.McDonald Street. Properties along the south side of McDonald
Street were already served by a line in Elrose Street.
The sewer line is complete and available for connection.
Financing
All costs of design and construction of the sewer extension were
paid by Edith Johnson. She has requested that a reimbursement
district be formed so that she will be reimbursed for a share of
the costs of the sewer extension in the future as other properties
are connected to the sewer.
The sewer extension has provided sewer service to two adjacent
._ properties, thereby relieving adjacent property owners of
installina 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 three properties shown as the cross-
hatched area on the attached map (Exhibit B) Lot 10 is the
property of Edith Johnson.
The zone formation date is June 12, 1991, 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
The total cost of the sanitary sewer construction, including design
and inspection costs, is $19,166.84. All of this cost has been
paid by Edith Johnson.
Reimbursement Rate
The three lots served by the sewer extension are all zoned R-4.5,
which provides for single-family residential development and
certain related uses. The lots are similar in area, ranging from
16,200 to 18, 900 square feet. under existing zoning, each of the
Clots could be subdivided into a maximum of two lots. Each lot is
currently developed with one house. The project provided one sewer
lateral to serve each lot.
It appears that the three lots are served equally by the sewer
improvement. Therefore, it is recommended that the reimbursement
rate be set to distribute the cost equally among the three
Properties. Should any of the lots be subdivided in the future,
the reimbursement share for that property would be divided equally
among the new lots created.
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.
Mrs. Johnson indicates that she financed the improvements from
personal savings. As a result, she is losing the interest that
might accrue from a bank savings account. Currently, interest on
long-term bank savings accounts is in the range of 4% to 50.
Therefore, it is recommended that the interest rate be set at 4.5%.
Recommendation
It is recommended that a reimbursement district be formed with a
zone of benefit, reimbursement rate and interest as indicated
above.
Submitted May 27, 1992
Randall R. Wooley
City Engineer
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EXHIBIT C
Connection Charges
The connection charges for the lots within the zone of benefit
shall be as follows:
Lot 10* $6,388.96
Lot 11 6,388.94
Lot 12 6,388-94
Total $19,166.84
*Lot 10 is the property of the applicant who financed the sewer
improvements. Therefore, the cost share for Lot 10 has already
been paid and no additional connection charge will be collected
from Lot 10.
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WMEM
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