Resolution No. 10-37 CITY OF TIGARD, OREGON
TIGARD CITY COUNCIL
RESOLUTION NO. 10- ,3?
A RESOLUTION ESTABLISHING SANITARY SEWER REIMBURSEMENT DISTRICT NO. 48
(SW LOWER CHERRY DRIVE)
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, the property owners of proposed Sanitary Sewer Reimbursement District No. 48 (SW Lower
Cherry Drive) 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
die 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 die City Engineer is appropriate.
NOW,THEREFORE,BE IT RESOLVED by the Tigard City Council that:
SECTION 1: The City Engineer's report tided "Sanitary Sewer Re nhursement District No. 48," 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 in Exhibit B. The District shall be known as
"Sanitary Sewer Reimbursement District No. 48."
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 die 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 fled in die office of die 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.
RESOLUTION NO. 10 -
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PASSED: This 13th day ofjuly 2010.
Mayor-City of Tigard
ATTEST:
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City Recorder-City of Tigard
RESOLUTION NO. 10 -
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Exhibit A
City Engineer's Report
Sanitary Sewer Reimbursement District No. 48
(SW Lower Cherry Drive)
Background
This project will be constructed and funded under the City of Tigard Neighborhood Sever
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 and inspection fee, currently $4,135, 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
Serving the four lots in the following table will require extending an existing sewer along the
back lot lines of the lots to be served. No further extension of this line will be required.
The surrounding area is completely served with sewer.
r The proposed project would provide sewer service to a total of four lots within the proposed
reimbursement district as shown on Exhibit Map B.
Cost
The estimated cost for the sanitary sewer construction to provide service to the four lots is
$129,017. Engineering and inspection fees amount to $17,417 (13.5%) as defined in TMC
13.09.040(1). The sewer will be construction within easements purchased by the City at a
cost of$6,400. In addition, a total of$2,822 will be paid to owners to compensate thein for
the cost of restoring property disturbed by construction. The estimated total project cost is
$155,657. 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 depends upon the extent to
which the owner is eligible for the City's incentive program for early connections.
In addition to sharing the cost of the public server line, each property owner will be required
to pay a connection and inspection fee, currently $4,135, 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 in the proposed district are zoned R-3.5 but vary in lot size from about 20,000
to 32,000 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.
Exhibit A Page 1 of 4
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 $1.5011 per
square foot of 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
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 June 28, 2010
Theodore S. Kyle, P.E.
City Engineer
Exhibit A Page 2 of 4
LOWER CHERRY DRIVE-REIMBURSEMENT DIST NO. 48
FY 2009- 10 SANITARY SEWER , EXTENSION PROGRAM
A PORTION OF THE NW 1 /4 SECTION 11 T2S R1 W W.M.
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NOTE:
All properties in the reimbursement
district are zoned R3.5 EXHIBIT B
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LOWER CHERRY DR
CIS' 2010 Sanitary Sewer Extension Program
Esdin
ated Cost ro Prqperi�,Owners
sla"Inaly
Th vrsdqj,,April 4 9010
Estimated Construction Costs $112,189
15.00% contjlZ�ncy (construction) $16,828
i._._._...._.—_------------ -
Estimated construction subtotal $129,017
............. ..........
13.50%Administration&Eineelan $17,417
Easement Cost $6,400.00
Site Restoration $2,8222.00
total project costs $155,657
total area to be servcd (S.F.) 103695
-total cost per S.F. to property owner $1.50110847
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LOWER CHERRY DR
CIP 2010 Sanitary Sewer Extension Program
H.5—mared Cost to Proper,J Owncrs
Thursday,Aph722,2010
Estimated Ainount that
Owner Site Address Ta..%Lot ID Area(S.F.) Area Reimbursement Amount to be Amount to be can be
(AC) Fee Paid by Owner Paid by City Deferred by
Owner
7 \VID Vfrliti,TE IOi1LlS G 7550 SW CHL-:PRI'DR 2S101DCO2000 2830&.7 0.65 $ 42,494 g 33,494 $ 9,000 $ 27,494
2 IIERNLANSON,PATRICIA IhI 7530 SW CHERRY DR 2S101DC01900 23395.3 0.5.1 $ 35,123 $ 26,123 $ 9,000 $ 20,123
3 CHEINLUUN,LISA h1& 75I0 Sly,=CHERRY DR 2SI OlDC01800 19755.8 0.45 $ 29,656 $ 20,656 $ 9,000 $ 14,656
4 1L\RTIN D.5"]'I lti'Izl'&CARi.A STI---W r 7570 SW CHERRY DR 2S101DCO2100 32231.7 0,739 $ 48,383 $ 39,3$3 $ 9,000 $ 33,353
Totals 143694.5 2.379 $ 155,657 $ 119,657 $ 36,000 $ 95,657
The"ESTI14ATLD REINMBURSEMENT FEE"column shows the estimated reimbursement fee for each lot. Therc;ire no requirements to connect to the sewer at pay any fees until the owner
decides to connect to the sewer. The final reimbursement fee will be determined once construction is complete and find casts are deterinined.
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 Ciry
Council's approval of the Emil City Engineer's Report following construction. The` atIIOUNT TO BE PAID BY 0717Y"column shows that portion of the reimbursement fee that the owners will
not be required to pay if they connect to the sewer during r]-ds three year period.
I'his resolution also requires owners to pay-any fsur share amount That exceed$15,000. Consequently,if the final fair share for an owner c:scecds$15,000,the owner would be required to pry 56,000
plus that amount of the fit share that exceeds$15,000. Under Resolution No.03-55,payment of die amount in excess of$15,000 may be deferred until the owner's lot is developed.This amount
is shown in the"AMOUNT TFIAT CAN BE DEFERRED BY OMNI RR"column.
In addition to the reimbursement fee,the owners will also be required to pay a connection fee,currently$4,135,at the time of connection to the sewer. In addition,property owners are responsible
for disconnecting their existing septic system according to XM-ishington County rules and for any other modifications necessary to connect to die public sewer.
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LOWER CHERRY DRIVE-REIMBURSEMENT DIST NO. 48
FY 2009- 10 SANITARY SEWER , EXTENSION PROGRAM
A PORTION OF THE NW 1 /.4 SECTION 11 T2S R 1 W W.M.
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NOTE:
All properties in the reimbursement
district are zoned R3.5 EXHIBIT B +gip 1
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Attacbment 2
LOWER CHERRY DRIVE-REIMBURSEMENT DIST NO. 48
FY 2009- 10 SANITARY SEWER EXTENSION PROGRAM
A PORTION OF THE SE 1 /4 SECTION 1 T2S R 1 W W.M.
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