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Resolution No. 10-63 CITY OF TIGARD, OREGON TIGARD CITY COUNCIL RESOLUTION NO. 10- 6,3 A RESOLUTION FINALIZING SANITARY SEWER REIMBURSEMENT DISTRICT NO. 48 (LOWER SW CHERRY DRIVE) AND AMENDING THE PRELIMINARY CITY ENGINEER'S REPORT CONTAINED IN.RESOLUTION NO. 10-37. WHEREAS, on July 13, 2010, the City Council approved Resolution No. 10-37 to form Sanitary Sewer Reimbursement District No. 48 to construct sewers in lower SW Cherry Drive in accordance with TMC Chapter 13.09;and WHEREAS, the City Engineer's Report, included in Resolution No. 10-37, estimated construction and total project cost; and WHEREAS, construction of the sewer improvements has been completed, final costs have been established, and the City Engineer's Report has been revised to include the these costs as required by TMC 13.09.105 (1); and WHEREAS, the property owners within the district have been notified of an informational public 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. 48," attached hereto as Exhibit A,is hereby approved. SECTION 2: The City Engineer's Report as presented in Resolution No. 10-37 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 thew-last known address. SECTION 4: This resolution is effective immediately upon passage. PASSED: This -'-23 day of 2010. e Cityyn of Tigard Pp City Recorder- City of Tigard I:\ENG\7-Active Projects\Lower Cherry Sanitary Sewer Ext-WAS Key 93048 File' \Council\Finalization\11-9-10 Hoodview Reim Dist 45 final Res.doc RESOLUTION NO. 10 - 3 Page 1 Exhibit A Final City Engineer's Report Sanitary Sewer Reimbursement District No. 48 (Lower SW Cherry Drive) Background This project will be constructed and funded under the Citywide Sanitary Sewer Extension Program. Under the program, die City of Tigard installs public sewers to each lot within an established reimbursement district. At the time of connecting to the public sewer, the property owner: - Pays a connection and inspection fee, currently$4,135. - Reimburses the City for tie owner's share of the sewer installation. - Assumes responsibility for any plumbing modifications necessary to connect to die public sewer. - Assumes responsibility for disconnecting the owner's existing septic system in accordance with Washington County regulations. There is no requirement to connect to the sewer or pay any fee until connection is made. Project Area-Zone of Benefit Serving die four lots in die-following table will require extending an existing sewer along the back lot lines of theproperties to be served. No further extension of this line will be required. The surrounding area is completely served with sewer. The project snakes available sewer service to a total of four lots widhin die reimbursement district as shown on Exhibit B to die proposed resolution. Cost The final cost to provide sanitary sewers to die four lots is $65,359. Construction $49,460 -Purchasing Easements x$6,400 Site Restoration $2,822 En " eerie and Inspection $6,677 Total $65,359 .F, 13.5,percent as defined in TMC 13.09.040(1) This is die amount that should be reimbursed to the sanitary .sewer fund as properties connect to the sewer and pay dieir share of-the project cost. However, the actual amount that each property owner pays may be affected by the owner's participation in the City's early connection incentive program. 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 $4,135, upon connection to the public line. Exhibit A Page 1 of 4 All owners will be responsible for all plumbing costs required for work done on private property. Reimbursement Rate All properties in die proposed district are zoned R-3.5 but vary in lot size from about 20,000 to 32,000 square feet as shown in die following list of lots. Therefore, the total cost of the project was divided among the properties proportional to the square footage of each property. This method is reasonable because sewer service is more beneficial to larger lots that may be more extensively developed. Oilier 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 die cost of providing service to each lot or die benefit to each lot. Each property owner's final fair share of the public sewer line is $0.6303 per square foot of lot served. In accordance with Resolution No. 01-46, owners who complete their connection within three years of City Council approval of the Final City Engineer's Report are eligible for incentives. Under these incentives, each owner's share would be limited to $6,000, to the extent that this share does not exceed $15,000. In addition to paying for the first $6,000, owners,are responsible for paying all actual costs in excess of $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. Annual Fee Adjustment TMC 13.09.115 states that an annual percentage rate shall be applied to each property owner's share of the public sewer 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-,-6th 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 die reimbursement district, properties connecting to the sewer would no longer be required to pay the reimbursement fee. Submitted November 9,2010 Theodore Kyle, P.E. City Engineer L ENG11-Active ProjecisT. r Cherry SanilarySewer Ext-IFAS Key 03040 File 007ACounclPFlnallzatlonlEx A pan Ila Resolullon.doc Exhibit A Page 2 of 4 LOWED CHERRY DR CIP 2.0,10 Sanitary Sewer Extension Program Fuad Cost to Property Owners Summary Tuesday, October 19,2010 Final Construction Costs $49,460 Final construction subtotal $49,460 13.50%Administration&E ngineering $6,677 Easement Cost $6,400.00 Site Restoration $2,822.00 total project costs $65,359 total area to be served (ST.) 103695 total costper S.F. to.property owner $0.63030440 [:\ENG\1-Active Projects\LA wer Ch ry Saniiary Sewer Ext-WAS Kcy 73048 bile 0677\Engineering Estimate\working Estimates\,.ower Cherry-Estimate By Tax Lot (Aren).xlsx .Page 3 of 4 LOWER CHERRY DR CIP 2010 Sanitary Sewer Extension Program Final Cost to Property'Ortdicrs Tnesda};Ocrober19,2010 Final Amount that Owner Site Address Tax 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 1 WIDINIAN,THONLAS G 7550 SW CHERRY DR 2SIOlDCO2000 28308.7 0.65 $ 17,843 $ 8,843 $ 9,000 $ 2,843 2 1IEI1h1ANS0N,TA71'RICIA 14 7530 SW CHERRY DR 2S101DC01900 23398.3 0.54 $ 14,748 $ 6,000 $ 8;748 $ - 3 C14ElvfARIN;LISA 114& 7510 SW CHERRY DR 2S101DC01800 19755:8 0.45 $ 12,452 $ 6,000 $ 6,452 $ - 4 .1\1ARTIN D,.STFWRT&CARLA STEWART 7570 SW CHERRY DR 2SIOlDCO2100 32731.7 0.739 $ 20,316 $ 11,316 $ %000 $ 5;316 Totals 103694.5 2.379 $ 65;359 $ 32,159 $ 33,200 $ 8,159 The"FINAL REINIBURSEi\IENT FEE"column shows the estimated reimbursement fee for each lot. There are no.requirements to connect to the sewer or payany fees until die owner decides to connect to the sewer. The final reimbursement fee will be determined once construction is complete and fii-Ld costs are determined. In accordance with Resolution No.01-46,each property owner will be required to pay the first 56,000 of the final reimbursement fee for connections completed within the fust diree years of Cir; Council's.-approval of the finalCityEngineer's.Report following construction. The"AMOUNT TO BE PAID BY CITY"column shows that portion of the reimbursement fee that the owners- will wnerswill 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 S15,000. Consequently,if the final fair share for an owner exceeds 515,000,the owner would be required to pay $6,000 plus that amount of the fair share that exceeds$15,000. Under Resolution No.03-55,.payment of the amount in excess of 515,000 may be deferred until-the owner's lot is developed.This amount is shown in the"AMOUNT TI-LAT CAN BE DEFERRED BY OWNER"column. In addition to the reimbursement fee,the owners will also be required to pay a connection fee,currently 54,135 at the time of connection to the sewer. In addition,property owners are responsible for disconnecting their existing septic system according to Washington;County rules and for any other modifications necessary to connect to the public sewer. Page 4 of 4- I:\ENG\1-fictive Projects\l.a%=r Chcm•Sanitan,Seiner Est-IFAS Key 93018 File U6MEngincenng Estimate\warking Guimues\l as Chern.-Estimate By Tae JAt(Arca).xLs% LOWER CHERRY DRIVE-REIMBURSEMENT DIST NO. 48 FY 2009- 10 SANITARY SEWER EXTENSION PROGRAM A PORTION OF THE NW 1 /4 SECTION 11 T2S R1 W W.M. U 3k Cl RR DR Ao ,�� o G o co O Geo Zv'� o �6 Q W o � Ld = C1 N U N NOTE: All properties in the reimbursement EXHIBIT B (p1 district are zoned R3.5 NTS CITY OF TIGARD, OREGON TIGARD CITY COUNCIL RESOLUTION NO. 10- ,3-1 A RESOLUTION ESTABLISHING SANITARY SEWER REIAMURSEMENT DISTRICT NO. 48 (SW LOWER CHERRY DRIVE) W—1EREAS the City has initiated the Neighborhood Suver Extension Program to extend public sewers and recover costs through Reimbursement Districts in accordance with TMC Chapter 13.09;and WHEREAS, the property owners of proposed Sanitary Sewer Reimbursement District No. 4$ (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 the Reimbursement District, the estunated costs,a_method for spreading the cost among the parcels within the District swd a recommendation for an annual fee adjusnnent;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 tided "Sanitary Sewer Reimbursement District No. 4$," 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.1 precondition of receiving City permits applicable to development of each parcel within the Rei nbursement 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 die 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 1MC '13.09.090. SECTION 6: This resolution is effective immediately upon passage. i RESOLUTION NO. 10 Page 1 PASSED: This 13th day of July 2010. Mayor,/City of Tigard ATTEST: ity Recorder-City of Tigard RESOLUTION NO. 10- Page 2 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 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 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 4 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. The proposed project would provide sewer service to a total of 4 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 4 lots is $129,017. Engineering and inspection fees amount to $17,417 (13.5%) as defined in T1 MC 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 them for the cost of restoring property disturbed by construction. The estitnated 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. Hotivever, 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 sewer 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. Reivnbursement Rate All properties 111 the proposed district are zoned R-3.5 but vary un lot size from about 20,000 to 32,000 square feet as can be seen in the following list of lots. Therefore, it is Exhibit Page 1 of reconumended 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 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 lune 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. i 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 Enguieer i'\eng12009-2010 fy dpVower cherry sanitary sewer e#-ifas key 93048 file 0677\ccuncilVonnatka,kju1y 13,2010\7-13-101owar cherry raim dist 48 report ex—1- Exhibit A Page 2 of 4 1✓ON',ff—R CHERR:"DR CIS' 2010 Swataty Sewer Extensr.on Rro rani zn E.stirnatcd Cost to Properly Otivners Summ pry Thursdny,!April 2Z 2010 Estimated ConStrLIC60n Costs $132 ls9 -..........._-- --------- ------.._.._... _ —...—.....—__.. 15.00%continency�consUroc(it�n) — —_ $16,S28 I✓s mated construction subtotal 129 017 -- —.._._............... --------- -------- --- -- ..._.__�.._ _....---y----------......- - _ __ _ — - -------—— ---------.._..-..___—.......--------- 13.5(1°/t Adlnuusiration&Ln ineerir - ------------- $17,417 Easement Cost _...._. _—.$6,400.00 — Site Restoration $2,$22.00 total project costs— $155,657 total area to be scrvcd (S.F.) 1036t95 total cost per S.F. to property owner $1.50110847 1:\P.NG\2(X)7.21110 FY CIP\I<m•cr Cher.,Sanilaq Sewcr 11vr-IFAS ICcy 91048 Pile Cherry-L46matu By Tax Lot(Arca) 7 of.1 1 i LOWER CHERRY DR CIP 2010 Sanitary Sewer Extension Program Estimated Cost to Properq 01mcrs 77mrsday,April Z?2010 Estimated mount that Owner Site Address Tat Lot ID Area(S.F.) Area Reimbursement Amount to be Amount to be ctm be (AC) Fee Paid by Owner Paid by City- Deferred by 1 \C']Di`•L}N,TI-lOi4i:1S G 7550 S\V CHERRY DR 2SIOlDCO2000 28308.7 0.65 $ 42,494 2 I-II'RILANSON,PA•IMICIr\t i $ 33,123 $ 9,000 $ 27,49.3 7530510 CHEILR}'DR 2S101llC01900 3339S.3 0.54 $ 35,723 5 26,12.3 $ 3 CE-ILhL•\I?IN,LIS:}:Yf& 9,000 $ 20,123 -51oS\�'cllrxxvDR 2S101DC01800 19755.8 0..15 $ 29,656 5 20,656 9,ODO $ 14,636 1 L\RThI D.S'1'1_\VR'I &Ca+J�\ST'G\VRT 7570 S\V CHCRRY DR I-SIOIDCO2100 32331.7 0.739 $ 48,383 S 39,383 $ 9;000 $ 33,353 Totals 103694.5 2.379 S 155,657 $ 1193657 S 36,000 $ 95,657 Tie"ESTIi%-ILTED REWBURSE-ME T FEE"column shows the estimated reimbursement fee Eor each for. There arc no requirements to connecr to die rover or pay any fees und!the owner decides to connect to rhe sewer. The final reimbursement fee will be determined once construction is complete and final costs arc dereunined. In accordance;with Resolution No.01-46,each property o,imer will be required to pay the first$6,000 of the final reimbursement fee for connections completed within the first three ycai:s o[City Council's approval of the final City Engineer's Report Following construction. The"ALMOUNT TO BE PAID BY CITY"column shows tlizr portion of the rcimbwsemrnr fee that the owners will not be required to pay if dict'connect to rhe sewer during this duce year period. '111;5 resolution also requires owners to pay any fur share;mount that exceed 535,000. Consequently,if the final fur share For an owner exceeds$17,000,the owner would be required ro pay 6,000 plus that amount of the f.it share that exceeds$'15,000. Under Resolution No.03-55,payment of the-.mount in excess of$15,000 may be deferred until the o%vnc!s tot is developed.Thi;amount is shown in the"AMOUNT THAT CAN BE DEFERRED BY C"UCL•R'column. In addition to the reimbursement fee,the owners will also be required to pay a connection Ice,currently$4,135,at the rime of connection to the sewer. In addition.,property,owners are responsible ;or disconnecting their existing septic system according to NVashington County rules and for any other modifications necessary to connect to the public sewer. 4 of4 L•\t=i�G\ZirJ7?OIU f1'CIP\Ln�rcr Chem•Sani�an•Sewer la-IF.154:cr'J3ft$g file Ou?7\En�inaring l;aimuc\tru•rr CUvm-6stimati Cir Ta=1ar(ir�) 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. 1 � s�x N°G° DR �0 � o NOTE: All properties in the reimbursement district are zoned R3.5 EXHIBIT B (p1 ) NTS