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Resolution No. 05-17 CITY OF TIGARD, OREGON RESOLUTION NO. 05-V A RESOLUTION ESTABLISHING SANITARY SEWER REIMBURSEMENT DISTRICT NO. 34 (SW 117TH AVENUE) 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 witliui 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 recornunended 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. 34", 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 lmown as"Sanitary Sewer Reimbursement District No. 34, SW 117'Avenue." 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 nnail 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 day of� 05. Mayor- ity of Tigard E T. C nom, a' �.Recorder- City of Tigard ilenglgregVelmhumemenl distf %134 1171hVf0mlation%3.05-05 ream dist 34 rmll= RESOLUTION NO. 05 1 Page 1 Exhibit A City Engineer's Report Sanitary Sewer Reimbursement District No. 34 (SW 117th Avenue) 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 the project area. At the time the property owner connects to the sewer, the owner would pay a connection fee, currently $2,535, 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 Serving the four lots in the following table will require the southerly extension of an existing sewer in SW 11 7t Avenue. The lot at 14230 SW 1'17 n Avenue is not proposed to be included in the district since service is currently provided by a sewer along the northerly boundary of the Shadow Hills subdivision. The proposed project would provide sewer service to a total of four lots as shown on Exhibit Map B. Cost The estimated cost for the sanitary sewer construction to provide service to the four lots is $31,039. Engineering and inspection fees amount to $4,190 (13.5%) as defined in TMC 13.09.040(1). The estimated total project cost is $35,229. This is the estimated 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 will be required to pay a connection and inspection fee, currently $2,535, upon connection to the public line. All owners will be responsible for all plumbing costs required for work done on private property. Reimbursement Rate All properties are zoned R-4.5 but vary in lot size from about eleven thousand to fifteen thousand square feet as can be seen in the following list of lots. Exhibit A Pagel of 4 Therefore, it is recommended that the total cost of the project be divided among the four properties proportional to the square footage of each property. Other reimbursement methods include dividing the cost equally among the owners or by 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 $0.61629077 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 No. 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. Upon request, payment of costs that exceed $15,000 may be deferred until the lot is developed as provided by Resolution No. 03-55 (attached). 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 February 22, 2005 A u tin P. Duenas, P.E. Cit ngineer I:leng5greglmlmburnment dlstdctsM t7th%fonnatlon%3-08.05 relm dist 34 report app a.doc Exhibit A Page 2 of 4 Reimbursement District No. 34 Estimated Cost to Property Owners February 15,2005 ESTIMATED SITE ADDRESS TAX LOT ID AREA(S.F.) COST TO PAID 13Y PAID BY CITY OWNER PROPERTY OWNER OWNER 1 HURD,SUSAN J 14145 SW 117TH AVENUE 2S110BA01100 11711.57156 $7,218 $6,000 $1,218 2 HICKOK,WILLIAM H&SHARON K 14185 SW 117TH AVENUE 2S110BAD1000 15149.95196 $9,337 $6,000 $3,337 3 ANDERSON,KAREN RAE(TRUSTEE) 14225 SW 117TH AVENUE 2S110BA00900 15150.98605 $9,337 $6,000 $3,337 4 MILLER,CARL T 14190 SW 117TH AVENUE 2S110BA00500 15149.95200 $9,337 $6,000 $3,337 Totals 57982 $35,229 $24,000 $11,229 PROJECT TOTAL(Cost to Owners+Cost to City) $35,229 MENG14Qil4-M FY 01717,Ah Aw SmllaySe Um Iicn[XMr1!AMW0NMATICMIielmh by s M[STN0.34 ExhibltA Page 3of4 117TH AVENUE Reimbursement District No. 34 Estimated Cost to Property Owners Summary February 15,2005 E=stimated Construction Cast $26,990 15%contingency(construction) $4,049 Estimated construction subtotal $31,639 13,5%contingency(Admin&Eng) $4,190 total project costs $35,229 total area to be served(S.F.) 57,162 total cost per S.F.to property owner $0.61629077 MENW00I-X05 FYGIM1171h A,8wIIM5s FA+MdmolsM9345FORMAMOM7dmnbyaenDIST NO.34 ExhibitA Page 4of4 3Ad HIM d' 0 C+� z F � U � LLT f- CC 0 N 3" HIV R 6 H z 0 W T.- 2 z 2z WO coW =) H 0 =) m W W WN m W LL W }" Q CC O = Z x 1— W �... 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