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Resolution No. 09-06 CITY OF TIGARD, OREGON TIGARD CITY COUNCIL RESOLUTION NO. 09-0((9 A RESOLUTION FINALIZING SANITARY SEWER REIMBURSEMENT DISTRICT NO. 41 (SW 971u AVENUE) AND AMENDING THE PRELIMINARY CITY ENGINEER'S REPORT CONTAINED IN RESOLUTION NO. 08-36, WHEREAS, on June 24, 2008, the City Council approved Resolution No. 08-36 to form Sanitary Sewer District No.41 to construct a sewer in SW 97'''Avenue in accordance with TMC Chapter 13.09;and WHEREAS, Resolution No. 08-36 included the City Engineer's Report that included an estimated construction and total project cost;and WHEREAS, construction of the sewer improvements has been completed, final costs have been determined, and the City Engineer's Report has been revised to include the final costs as required by TMC 13.09.105 (1); and WHEREAS, the property owners within the district have been notified of an informational hearing in accordance with TMC13.09.060 and an informational hearing was conducted in accordance with TMC 13.09.105;and WHEREAS, the City Council has determined that the proposed revisions to the City Engineer's Report, as recommended by the City Engineer,are appropriate. NOW,THEREFORE,BE IT RESOLVED by the Tigard City Council.that: SECTION 1: The Final City Engineer's Report tided "Sanitary Sewer Reimbursement District No. 41", attached hereto as Exhibit A,is hereby approved. SECTION 2: The City Engineer's Report as presented in Resolution No. 08-36 is hereby amended by the attached Final City Engineer's Report(Exhibit A). SECTION 3: 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. SECTION 4: This resolution is effective inirnediately upon passage. PASSED: This day of 20 A'oyouK,City of Tigard ATTEST: -Ca-kkg-, -� �=AA��� City Recorder- City of Tigard RESOLUTION NO. 09 - (Ip Page 1 Exhibit A Final City Engineer's Report Sanitary Sewer Reimbursement District No. 41 (SW 971h Avenue) Background This project was constructed and funded under the City of Tigard Neighborhood Sewer Extension Program (NSEP). Under the program., the City of Tigard installed 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 $3,135 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 systems according to Washington County rules and for any other modifications necessary to connect to the public sewer. Project Area- Zone of Benefit Suing the 14 lots in the following table required extending an existing sewer south in SW 97=h Avenue to serve four large lots then west to SW Inez Street to serve the remaining 10 lots. Only lots on the west side of SW 97Th Avenue are included in the district since lots on the east side are currently served. The proposed district leaves seven lots along SW View Terrace without service. Serving these lots will require extending the proposed line in SW 971h Avenue west to SW View Terrace through an easement that is not currently available. Once the easement becomes available, a separate reimbursement district will be proposed to provide service to the lots along SW View Terrace. The project makes available sewer service to a total of 14 lots within the reimbursement district as shown on Exhibit Map B. Cost The final cost for the sanitary sewer construction to provide service to the 14 lots is $160,655. Engineering and inspection fees amount to $21,688 (13.5%) as defined in TMC 13.09.040(1). The final total project cost is $182,343. 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 will be required to pay a connection and inspection fee, currently $3,135, upon connection to the public line. All owners will be responsible for all plumbing costs required for work done on private property- Exhibit A Page 1 of 4 Reimbursement Rate All properties in the district are zoned R-3.5 but vary in lot size from about 14,000 to 52,000 square feet as can be seen in the following list of lots. Therefore,it is recommended that the total cost of the project be divided among the 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 final fame share of the public sewer line is $0.49259621 per square foot of lot served. Each owner's fair share will 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 the reimbursement district be finalized with an annual fee increase as indicated above and that the reimburserzaent district continue for fifteen years as provided in 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 January 13, 2009 - Ag s in P. Duenas, P.E. City ngineer LYerag429P8-2x09 fy 6p%97th ave san sew reimbursement dist 44 file 0$94-95?605finatiz.alionlfnel 97th av relm dist 41 reputt ex o.doc Exhibit A Page 2 of 4 97TH AVENUE Reimbursement District No. 41 Cost to Property Owners Based on Fina!Project Cost December 9,2008 FINAL FINAL AMOUNT TO BE FINAL AMOUNT TO AMOUNT THAT CAN OWNER SITE ADDRESS TAX LOT I❑ AREA(S.F.) AREA(AC) REIMBURSEMENT PAID BY OWNER BE PAID BY CITY BE DEFERRED BY FEE OWNER 1 EVANS,JAMES WARD&JOYCE 1 14285 SW 97TH AVE 2S111 BA01800 50608.71 1.162 $24,930 $15,930 $9,000 $9,930 2 PALM,FRANK L&DORIS O 14325 SW 97TH AVE 2S111BA01700 49391.57 1.134 $24,330 $15,330 $9,000 $9,330 3 PALM,ROY D 14405 SW 97TH AVE 2S111BA01600 51787.91 1.189 $25,511 $16,511 $9,000 $10,511 4 FREDERICK,SCOTT G&KATHLEEN R 9755 SW INEZ ST 2S111BA01500 57418,13 1.318 $28,284 $19,284 $9,000 $13,284 5 WHITE,WILLIAM A 14470 SW 100TH AVE 2S111 BA02500 17209.46 0.395 $8,477 $6,000 $2,477 $0 6 WARREN,JACK R 9925 SW INEZ ST 2S111 BA02103 14875.06 0.341 $7,327 $6,000 $1,327 $0 7 SCOTT,ROBERT P&KIMBERLY S 9895 SW INEZ ST 25111 BA02104 14863.06 0.341 $7,321 $6,000 $1,321 $0 8 BARSOTTI,STEPHEN A 9865 SW INEZ ST 2S111 BA02105 14851.05 0.341 $7,316 $6,000 $1,316 $0 9 WALKER,SAMUEL JAY&JULIE LINDA 9835 SW INEZ ST 2S111BA02106 14834.22 0.341 $7,307 $6,000 $1,307 $0 10 CORLISS,JAMES L&CORA 9780 SW INEZ ST 2S111BD00100 21419.18 0.492 $10,551 $6,000 $4,551 $0 11 BRAY TRUST 9930 SW INEZ ST 2S111BD00302 15675.01 0.360 $7,721 $6,000 $1,721 $0 12 POWERS, RICHARD C 9900 SW INEZ ST 2S111BDO0303 15709.73 0.360 $7,739 $6,000 $1,739 $0 13 GLENN,CAROL JEAN TRUSTEE 9870 SW INEZ ST 2S111BD00304 15745.17 0.361 $7,756 $6,000 $1,756 $0 14 WINTERBOTTOM,LISA M LIVING TRUST 9840 SW INEZ ST 2S111BD00305 15779.90 0.361 $7,773 $6,000 $1,773 $0 Totals 370,168.15 8.50 $182,343 $127,054 $55,289 $43,054 The"FINAL REIMBURSEMENT FEE"column shows the reimbursement fee for each lot. There are no requirements to connect to the sewer or pay any fees until the owner decides to connect to the sewer. in accordance with Resolution No.01-46,each property owner will be required to pay the first$6,000 of the final reimbursement fee for connections completed within the first three years of City Council's approval of the final City Engineer=s Report following construction. The"AMOUNT TO BE PAID BY CITY"column shows that portion of the reimbursement fee that the owners will not be required to pay if they connect to the sewer during this three year period. This resolution also requires owners to pay any fair share amount that exceed$15,000. Consequently,if the final fair share for an owner exceeds$15,000,the owner would be required to pay$6,000 plus that amount of the fair share that exceeds$15,000. Under Resolution No.03-55,payment of the amount in excess of$15,000 maybe deferred until the owner's lot is developed.This amount is shown in the"AMOUNT THAT CAN BE DEFERRED BY OWNER"column. In addition to the reimbursement fee,the owners will also be required to pay a connection fee,currently$3,135,at the time of connection to the sewer. 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. PAGE 3OF4 97TH AVENUE Reimbursement District No, 41 Cost to Properly Owners Based on Final Project Cost Summary December 9,2008 Final Construction Cost $160,655 13.6%for Admin&Engineering $21,688 Total Project cost $182,343 total area to be served(S.F.) 370,168 total cost per S.F.to property owner $0.49259521 PAGE 4 OF 4 97TH AVE DIST NO. 41 FY 2007-08 SANITARY SEWER EXTENSION PROGRAM A PORTION OF THE NW 1 /4 SECTION 1 1 T2S R1 W W.M. � I lb LLJ W INEZ ST o � P�o��.�� �,,o ��� r ' "� � ,Q' P O 0) NOTE; All properties in the reimbursement EXHIBIT B �p1 district are zoned R3.5 NTS 97TH AVE DIST NO. 41 FY 2007-08 SANITARY SEWER EXTENSION PROGRAM A PORTION OF THE NW 1 /4 SECTION 11 T2S R1 W W.M. Q C13 INFREDERICK, SCOTT G PALM, FRANK L EVANS, JAMES �= Sc KATHLEEN R PALM, ROY D & DORIS 0 WARD & JOYCE I x 9755 5W fNEZ ST 14405 SW 97 AVE 14325 SW 97TH AVE'14285 SW 97TH AVE 'L' 2S111 BA01500 2S111 BA01600 2S111 BA01700 2S111 BA01800 w w V) I I 97TH AVE NOTE: All properties in the reimbursement EXHIBIT B �p2 district are zoned R3.5 NTS