Resolution No. 02-28 CITY OF TIGARD, OREGON
RESOLUTION NO. 02- a—1
A RESOLUTION ESTABLISHING SANITARY SEWER REIMBURSEMENT DISTRICT
NO. 23 (O'MARA STREET AT CNF,T.SFA LOOP)
WHEREAS, the City has initiated the Neighborhood Sewer Extension Program to extend public sewers
and recover costs through Reimbursement Districts in accordance with TMC Chapter 13.09; and
WHEREAS, these property owners have been notified of a public hearing in accordance with TMC
13.09.060 and a public hearing was conducted in accordance with TMC 13.09.050;and
WHEREAS, the City Engineer has submitted a report describing the improvements, the area to be
included in the Reimbursement District, the estimated costs, a method for spreading the cost among the
parcels within the District, and a recommendation for an annual fee adjustment; and
WHEREAS, the City Council has determined that the formation of a Reimbursement District 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 "Sanitary Sewer Reimbursement District No. 23,
O'Mara at Chelsea Loop", attached hereto as Exhibit A,is hereby approved.
SECTION 2: A Reimbursement District is hereby established in accordance with TMC Chapter
13.09. The District shall be the area shown and described on Exhibit B. The District
shall be known as"Sanitary Sewer Reimbursement District No. 23."
SECTION 3 Payment of the reimbursement fee as shown in Exhibit A is a precondition of receiving
City permits applicable to development of each parcel within the Reimbursement
District as provided for in TMC 13.09.110.
SECTION 4 An annual fee adjustment, at a rate recommended by the Finance Director, shall be
applied to the Reimbursement Fee.
SECTION 5 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 13.09.090.
SECTION 6 This resolution is effective immediately upon passage.
PASSED: This "G day of 2002.
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City Recorder- City of Tigard
i'.1cRrmdeVe%reim-23(o'mam)fomtation.doc
RESOLUTION NO. 02-,:;
Page 1
Exhibit A
City Engineer's Report
Sanitary Sewer Reimbursement District No. 23 (O'Mara Street at Chelsea
Loop)
Background
This project will be constructed and funded under the City of Tigard
Neighborhood Sewer Extension Program (NSEP). Under the program the City of
Tigard would install public sewers to each lot within a project area. At the time
the property owner connects to the sewer, the owner would pay a connection fee
of $2,335.00 and reimburse the City for a fair share of the cost of the public
sewer. There is no requirement to connect to the sewer or pay any fee until
connection is made. In addition, property owners are responsible for
disconnecting their existing septic system according to Washington County rules
and for any other modifications necessary to connect to the public sewer.
Proiect Area - Zone of Benefit
An existing sanitary sewer line is located in SW Chelsea Loop as shown on
Exhibit Map B. The line from Chelsea Loop would be extended south then
continue west along SW O'Mara Street serving seven lots on the south side of
the street. The five contiguous lots further west were provided with service on
January 26, 2000 through Reimbursement District No. 17. The lots on the north
side of SW O'Mara are currently served from SW Hill Street.
Cost
The estimated cost for the sanitary sewer construction is $57,790. Engineering
and inspection fees amount to $7,800 (13.5%) as defined in TMC 13.09.040(1).
The estimated total project cost is $65,590. This is the amount that should be
reimbursed to the sanitary sewer fund as properties connect to the sewer and
pay their fair share of the total amount. However, the actual amount that each
property owner pays is subject to the City's incentive program for early
connections.
In addition to sharing the cost of the public sewer line, each property owner,
except for the owner providing the easement, will be required to pay an
additional $2,335 connection and inspection fee when connection to the public
line is made. All owners will be responsible for all plumbing costs required for
work done on private property.
Reimbursement Rate
All properties in this area are zoned R-4.5 but vary in lot size from about 9,500 to
24,000 square feet. Therefore, it is recommended that the total cost of the
project be divided proportional to the square footage of each property among the
seven properties included in the reimbursement district as shown on the
attached table_ Resolution 01-46 limits this fee to $6,000 to the extent that is
does not exceed $15,000 per owner for connections completed within three
years of final approval of the City Engineer's Report.
Other reimbursement methods include dividing the cost equally among the
owners or proportional to the length of frontage of each property. These
methods are not recommended because there is no correlation between these
methods and the cost of providing service to each lot or the benefit to each lot.
Each property owner's estimated fair share of the public sewer line is $0.47
per square foot of the lot served. Each owner's fair share would be limited
to $6,000 to the extent that it does not exceed $15,000, for connections
completed within three years of City Council approval of the final City
Engineer's Report following construction in accordance with Resolution
01-46 (attached)_ In addition to paying for the first $6,000, owners will
remain responsible for paying all actual costs that exceed $15,000.
Annual Fee Adjustment
TMC 13.09.115 states that an annual percentage rate shall be applied to each
property owner's fair share of the sewer line costs on the anniversary date of the
reimbursement agreement. The Finance Director has set the annual interest
rate at 6.05% as stated in City of Tigard Resolution No. 98-22.
Recommendation
It is recommended that a reimbursement district be formed with an annual fee
increase as indicated above and that the reimbursement district continue for
fifteen years as provided in the Tigard Municipal Code (TMC) 13.09.110(5).
Fifteen years after the formation of the reimbursement district, properties
connecting to the sewer would no longer be required to pay the reimbursement
fee.
Submitted March 25, 2002
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