Resolution No. 92-44 CITY OF TIGARD
RESOLUTION NO. 92-44
A RESOLUTION MODIFYING INTEREST CHARGES ON THE EDITH JOHNSON
SANITARY SEWER REIMBURSEMENT DISTRICT AS ESTABLISHED BY CITY OF
TIGARD RESOLUTION NO. 92-27
WHEREAS, sanitary sewer improvements have been constructed in S.W.
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 const ruction 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 determined that formation of a zone of
benefit as recommended by the City Engineer was appropriate and
adopted Resolution 92-27 on June 9, 1992, and recorded the
Resolution on July 2, 1.992., as Washington County Recorder's Fee No.
92045949; and,
WHEREAS, Robert C. Lamb, the owner of Lot No. 11 in the
Reimbursement District, filed a letter with the City requesting
exclusion of Lot No. 11 from the Reimbursement District; and,
WHEREAS, Mr. Lamb's letter of objection was filed within the sixty-
day time limit imposed by TMC 13.08.020 (i) , and the City Council
held a public hearing on said objection at its regular meeting of
August 18, 1992; and
WHEREAS, after considering Mr. Lamb's testimony and the applicant's
and staff's responses, the City Council has determined that the
formula for imposing interest charges on Lots 11 and 12 should be
modified, but that formation of a zone of benefit as recommended by
the City Engineer is otherwise appropriate with said modification.
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, with the
RESOLUTION NO. 92-
Page 1
following modification to the paragraph entitled
"Inter_est Rate":
"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, and that the
City required her to install lateral stubs at Lots
11 and 12 at a cost of $748.95 each. As a result
of the City's requirement that she install the
lateral stubs for the benefit of Lots 11 and 12,
Mrs. Johnson is losing the interest that might
accrue from a bank savings account on the cost of
said installation. At the time of application for
the reimbursement district, interest on long-term
bank saving accounts was in the range of four
percent (4%) to five percent (5%) . Therefore, it
is recommended that the interest rate be set at 4.5
percent (4.5%) , to be charged against the sum of
$748.95 each on Lots 11 and 12. The remaining
Connection Charge on Lots 11 and 12, $5,639.99 on
each lot, shall bear interest at the rate of zero
percent (0%) per annum."
Section 2. A zone of benefit is hereby established in
accordance with TMC Chapter 13.08. The zone caf
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 percent (4.5%)
shall be applied to the $748.95 portion of the
connection charge, representing the lateral stub
cost for each of Lots 11 and 12, on the anniversary
date of the reimbursement agreement in accordance
with TMC 13.08.020 (b) (5) .
Section 5. The zone formation date is June 12, 1991. The
right of reimbursement shall end on June 12, 2001,
RESOLUTION NO. 92-C/y
Page 2
unless extended by the Council in accordance with
TNTC 13.08.020(b) (2) .
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 13.08.020(f) and
(g) -
PASSED: This day of , , 1992. /
ayor - City of Tigard
ATTEST:
Cit
Recorder - City ty of T and
j
RESOLUTION NO. 92- �h/
Page 3
x
Exhibit A
City Engineer's Report
EDITH JOHNSON SANITARY SEWER REIMBURSEMENT DISTRICT
Backgroiind
in 1991, a sanitary sewer line was extended in SW McDonald Street
Lo 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
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 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.
I't 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 '-he ^uXry - `onstruction, 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
lots 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 data 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 5%.
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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