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Resolution No. 94-06 CITY OF TIGARD, OREGON RESOLUTION NO. 94-OCO A RESOLUTION ESTABLISHING; SANITARY SEWER REIMBURSEMENT DISTRICT NUMBER 6. .S, sanitary sewer improvements have been constructed to serve the Meusch property and certain adjoining properties; and WHEREAS, all costs of said sewer const ruction have been paid by Mr. M:,:�usch; and WHEREAS, formation of a zone of benefit has been requested by Mr. Meusch; and WHEREAS, the City Engineer has submitted a report describing the improvements, the zone of benefit, - methodology for spreading the cosi.= 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 title "Sanitary Sewer Reimbursement District No. 611, 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 on Exhibit B and described on Exhibit C. The zone of benefit shall be known as "Sanitary Sewer Reimbursement District No. 6." Section 3: Payment of the recovery agreement connection charge as shown in Exhibit D 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 seven percent (7%) shall be applied to the connection charge. Section 5: The zone formation date is February 8, 1994. The right of r i.«bi.irsement shall end on February 8, 2004, unless' extended by the Council in accordance with TMC 13.08.020 (b) (2) . RESOLUTION NO. 94-OLD Page 1 Section 6: The City Recorder shall cause a copy of this resolution to be filed in the office cf the county recorder and shall mail a copy of this resolution to all affected property owners at their last ;mown address, in accordance with TMC 13.08.020 (f) and (g) • This i 199 .PASSED: y T'gard ATTEST: C-4 y Recorder - City of Tigard RESOLUTION NO. 94- CO Page 2 Exhibit A City Engineer's Report SANITARY SEWER REIMBURSEMENT DISTRICT NO. 6 Background A sanitary sewer line extension has been constructed in 79th Avenue to serve a private property located on the west side of S.W. 79th Avenue north of Gent lewoods Drive. The sewer line also provides service to certain adjoining lots. The sewer line construction is complete and the developer's costs are known. Financing All costs of construction of the sewer extension have been paid by Mr. Jon S. Meusch. Mr. Meusch has requested that a reimbursement district be formed so that he 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 potentially provided sewer service to two adjacent properties, there'oy 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 properties shown as the shaded area on the attached map (Exhibit B) . The proposed zone formation date for the sewer is the date of Council action for,-iiing the reimbursement district. 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 $12,318.00. All of this cost has been paid by Mr. Meusch. Reimbursement Rate West of 79th Avenue, the lots served by the sewer extension are all zoned R-4.5, which provides for single-family residential development and certain related uses. The minimum lot size in the R-4.5 zone is milli AIMbL 7,500 square feet. Mr. Meusch's property occupies Tax Lot 4100. This parcel will contain —- - a �irig� —family residence. •rhe parcel is large enough to allow further subdivision under the current zoning but it is unlikely due to the intentions of the existing property owner. Tax Lot 4000 is currently fully developed with a single-family residential structure and cannot be further subdivided under the current zoning. Tax Lot 4400 could be subdivided into eight to ten lots. under the current zoning. However only the northern portion of the property, adjacent to 79th Avenue, could logically be serviced by this sewer extension. This area could potentially be developed into 2 lots. Developement of the remainder of the property would connect into the existing manhole. The applicant suggests that Tax Lot 4400 should be charged for two PM potential connections and T6Lots 4000 and 4100 be charged for one connection each. This seems to be a reasonable request, as the larger lot has the potential of more than one connection to the sewer in the future. Therefore, it is recommended that the costs of the sewer be divided among the lots within the zone of benefit as shown in Exhibit D. The recommended cost to each lot is shown in Exhibit D. 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 applicant has requested that the finance charge be 7%, which is comparable to that currently being paid to finance private improvements. This seems reasonable compared to the current mortaaae rates. Therefore, it is recommended that the interest rate be set at 7%. On each anniversary of the zone formation date, the established connection charges shall be increased by this amount. Recommendation It is recommended that a reimbursement district be formed with a zone of benefit, reimbursement rate and interest as indicated above. Subm tted February 8, 1994. aB , UL / y A. £son Senior Pr ject En neer ga/meuach.SS EXHIBIT areas REIMBURSEMENT DISTRICT NO. 6 e h fn 2S7 12 sD Y.L. 4-000 2S1 12 BD NEW SANITARY` T.L. 4100 SEWER MANHOLE J FNEWNITARY SEWER 1 EXISTING MANHOI E 2S1 12 CA T.L 4400 GENTLE WOODS DR. - -EXISTIING SANITARY SEWER I I EXHIBIT C MEN am ® Sanitary Sewer Reimbursement District No. 6 A portion of the SE 1/4 of the NW 1/4 and the NE 1/4 of the SW 1/4 of Section 12, Township 2 South, Range 1 West, Willamette Meridian, City of Tigard, Washington County, Oregon, described as follows: Beginning at the northwest corner of Partition Plat 1991-096, recorded in Washington County Partition Plat Records; thence N 89' 53' 09" E, along the north line of said Partition Plat, a distance of 307.03 feet to the westerly right-of-way of S.W. 79th Avenue and the northeast corner of said Partition Plat; thence S 000 24' 36" W, along said right-of-way, a distance of 398.73 feet to the southeast corner of lot 36 Durham Acres recorded in Book 5 Page 16 Washington County Subdivision Records; thence S 89' 56' 00" W, along the south line of said Subdivision a distance of 307.62 feet to the southwest <:ornF-r of said Subdivision; thence N 00° 28, 46" E, along the we,-t line of said lot 36 and the west line of said Partition Plat, a distance of 398.58 feet to the point of beginning. JOHNRH\79TH... Exhibit D Sanitary Sewer Reimbursement District No. 6 Recovery Agreement Connection Charges Connection Tax Lot Units Charge 2S1 12CA 4400 2 $ 6, 159.00 231 12BD 4000 1 3, 079.50 2S1 12BD 4100* 1 3, 079.50 Total 4 $12, 318.00 *Note 1: Tax Lot 4100 is owned by Mr. Meusch. The reimbursement district connection charge is deemed to have been paid on this lot. Note 2: Tax Lot 4400 shall be charged for each connection at a rate of $3,079-50 per connection, with a maximum of two connection charges. Note 3: The connection charge shall apply only to properties which are connected directly to the sewer lines constructed as a part of the 79th Avenue Sanitary Sewer Extension (the sewer line shown on Exhibit B) . If properties within the zone of benefit are connected directly to sewer lines outside the zone of benefit, the connection charge shall not apply. ga/meusch.SS