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Resolution No. 11-05 CITY OF TIGARD, OREGON TIGARD CITY COUNCIL RESOLUTION NO. 11- () A RESOLUTION ESTABLISHING SANITARY SEWER REIMBURSEMENT DISTRICT NO. 42 (SW 100Tf r AVENUE) WHEREAS, the City has initiated the Citywide Sanitary Sewer Extension Program to extend public sewers and recover costs through reimbursement districts in accordance with TRIC Chapter 13.09; and WHEREAS, the property owners of proposed Sanitary Sewer Reimbursement District No. 42 (SW 100t' Avenue) 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. 42," 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. 42." 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 TRIC 13.09.090, SECTION 6: This resolution is effective immediately upon passage. RESOLUTION NO. 11 Page 1 fi G-- PASSED: This 17 day of ✓ 1 L 2011. yor- City of Tigard ATTEST: C,a 4/ City Recorder-City of Tigard RESOLUTION NO. 11 - Page 2 Agenda Item No. Meeting of S !� Exhibit A City Engineer's Report Sanitary Sewer Reimbursement District No. 42 (SW 100th Avenue) Background This project will be constructed and funded under the Citywide Sanitary Sewer Extension Program. Under the program, the 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 the owner's share of the sewer installation. - Is responsible for any plumbing modifications to connect to the public sewer. -- Is responsible 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 the 23 lots in the following table requires extending an existing sewer in SW 1001h Avenue through an easement connecting to SW View Terrace. 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 23 lots within the proposed reimbursement district as shown on Exhibit B to the proposed resolution. Cost The estimated cost to provide sanitary sewers to the 23 lots is $554,785. Construction $470,397 Purchasing Easements $20,885 Engineering and Inspection * $63,503 Total $554,785 * 13.5 percent as defined in TMC 13.09.040(1) This is the estimated amount that will be reimbursed to the sanitary sewer fund as property owners connect to the sewer and pay their share of the project costs. However, the actual amount each property owner pays may be affected by the property owner's participation in the City's early connection incentive program. In addition to sharing the cost of the public sewer, 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 Owners will be responsible for all plumbing costs required for work done on private property. Reimbursement Rate All but three of the northernmost properties in the proposed district are zoned R3.5. The remaining three properties are zoned R12 but are expected to receive similar benefits. Consequently, applying the same method of assigning costs to all lots within the district is proposed. Lot size varies from about 14,300 to 57,000 square feet as shown in the attached Estimated Cost to Property Owners list. 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 estimated fair share of the public sewer line is $0.95008 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 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. 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 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 January 10, 2011 Theodore S. Kyle, P.E. City Engineer Exhibit A Page 2 of 4 100TH AVENUE Reimbursement District No. 42 Estimated Cost to Property Owners January 4,2049 ESTIMATED ESTIMATED AMOUNT AMOUNT THAT OWNER SITE ADDRESS TAX LOT ID AREA(S.F.) AREA(AC) REIMBURSEMENT TO BE PAID BY AMOUNT TO BE PAID CAN BE FEE OWNER BY CITY DEFERRED BY r11NNFR 1 PETERSEN,DAVIT? 14085 SW 100TH 2S111BB00300 13,400 0,308 $12,731 $6,000 $6,731 $0 2 RIVER PRESERVATION LLC 14135 SW 100TH 2S111BB00400 32,551 0.747 $30,926 $21,926 $9,000 $15,926 3 RANDALL,MARIA L 14130 SW 100TH AVE 2S111BA00805 31,690 0.728 $30,108 $21,108 $9,000 $15,108 4 RUEDY,ROBERT E 14185 SW 100TH AVE 2S111BB00500 49,518 1.137 $47,046 $38,046 $9,000 $32,446 5 DOER{NG,JOSHUA N&ANGIE L 14170 SW 100TH AVE 2S111BA00802 31,628 0.731 $30,239 $21,239 $9,000 $15,239 6 FAST CASH HOUSE BUYERS LLC 14220 SW 100TH AVE 2S111BAGO801 24,664 0.566 $23,432 - $14,432 $9,000 $8,432 7 SMITH,SHELLEY A&ENGWEILER,GLENN 14270 SW 100TH AVE 2S111SAGO807 24,768 0.569 $23,550 $14,550 $9,000 $8,550 8 COLLING,,JOYCE C EMPTY LOT 2S111BB00600 56,798 1,304 $53,963 $44,963 $9,000 $38,963 9 KASTEL,CHARLES G&MARY J TRS 14259 SW ICOTH AVE 2S111BB01100 41,347 0.949 $39,283 $30,283 $9,000 $24,283 10 SIRNEY,JEFFREY D&NORIKO 14265 SW 10OTH AVE 2S1118SO0800 15,263 0.351 $14,520 $6,000 $8,520 $0 11 KARR,EVELYN E REV LIV TRUST 14280 SW 100TH AVE 2S111BAGO900 35,158 0.807 $33,403 $24,403 $9,000 $18,403 12 POLNKA,JON&CAMPELL-POLIVKA,HOLLY M 14305 SW 100TH 2S111BB00700 15,207 0.349 $14,448 $6,000 $8,448 $0 13 JONES,VERNON G&COLLEEN D 14320 SW 1COTH AVE 2S1118A02300 14,334 0,329 $13,518 $6,D00 $7,618 $0 14 LEE,SAMUEL&KYUNG 14345 SW 100TH 2S111BC00100 55,129 1.266 $52,377 $43,377 $9,000 $37,377 15 UM,EUNKYU C&KWANG Y 10150 SW VIEW TER 2511113C0130D 15,127 0.347 $14,372 $6,000 $8,372 $0 16 BOGERT,MARK H&MARY E 14445 SW 100TH 2SI118CO02CO 20,457 0.470 $19,436 $10,436 $9,000 $4,436 17 HOWSE,DIANNA L&ONRELAS,STEVE F 14415 SW 100TH 2SI11BC00300 16,046 0.368 $15,245 $6,245 $9,000 $0 18 PHILLIPS,AMY&LINN,JEREMY J 10220 SW VIEW TER 2S 111BC01100 15,034 0.345 $14,284 $6,000 $8,284 $0 19 SEARS,ALLEN C 10190 SW VIEW TER 23111BC01200 15,029 0.345 $14,278 $6,000 $8,276 $0 20 BAUMAN,WAYNE&MARY 10270 SW VIEW TER 2S111BC0100O 15,246 0.350 $14,485 $6,000 $8,485 $0 21 BUEHLER,GREGORY&SARA L. 10145 SW VIEW TER 2S1119C01400 15,246 0.350 $14,485 $6,000 $8,485 $0 22 MUDROW,MICHAEL&DIANE C. 10185 SW VIEW TER 2S1118CO1500 14,810 0.340 $14,071 $6,000 $8,071 $0 23 PROUTY,JAASON&AMY E 10225 SW VIEW TER 2S111BC01600 15,246 0.350 $14,465 $6,000 $6,485 $0 Totals 583,936 13.41 $554,785 $357,008 $197,776 Except for the maximum amount of$9,000 to be paid by the City,all the fees are estimated at thls time.The final fee to be paid by each property owner will be determined once the construction is complete and final costs are recalculated to reflect actual project costs.The final fee will be specified in the City Engineer's report,which will be submitted to City Council for approval upon completion of the construction. The amount that each owner will be required to pay is limited to$6,000.00 for connections completed within three years of City Council approval of the final cost. In addition to$6,000,owners will also be required to pay any fair share amounts that exceed$15,000.00.The reimbursement fee of$9,000.00 (the difference between$15,000.00 and$6,000.00)would be paid by the City if connections are made within the first three-year(the fee is shown in the"Amount to be paid by the City"column).Consequently,the total estimated amount responsible by each property owner is shown under the"Estimated Amount to be paid by Owner'column.However,payment of the amount in excess of$15,000.00 may be deferred unt€I the owner's lot is developed. Owners will also be required to pay a connection fee,currently$4,135.00,at the time of connection to the public sewer. In addition,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.Owners are not required to pay any fees until they decide to connect. Ref:Resolutions 01-46 and 03-55 PAGE 3 OF 4 100TH AVENUE Reimbursement District No. 42 Estimated Cost to Property Owners -- January 4,2011 _ Estimated Construction Cost $409,04o 15%contingency(construction) $61,356 Estimated construction subtotal $470,396 13.5%contingency(Admin&Eng) $63,503 Easement cost2$ 0.885 total project costs $554,784 total area to be served S.F. 583,936 total cost per S.F.to property owner $0.95407751 PAGF40F4 100TH AVE DIST NO. 42 FY 2009- 10 SANITARY SEWER EXTENSION PROGRAM A PORTION OF THE NW 1 /4 SECTION 11 T2S R1 W W.M. SMITH, SHELLEY A KA PR, EVELYN E & ENGWEILER, GLENN 14280 SW 100TH AVE JONES, VERNON G 14270 SW 100TH AVE 14320 SW 100TH AVE 2SI116AO0807 25111BA00900 25111BA02300 R3.5 R3.5 R3.5 4z � RANDALL, MARIA L 14130 SW 1007-H AVE 100TH AVE 2SfIl88A0805 R3.5 CHRISTENSEN, JUDITH SAFADI, LYNN G FISHER, ROBERT f4170 SW 100TH AVE 14220 SW 100TH AVE 14305 SW 100TH AVE 2S111BAGO802 2SI11BA00801 2S1f1BB00700 R3.5 R3.5 l R3.5 LEE, SAMUEL & KYUN — 14345 SW 100TH AVE 2SII1BC00100 R3.5 100TH AVE BIRNEY, JEFFREY & NORIKO 14265 SW 100TH AVE 2SI118800800 RIVER PRESERVATION R3.5 LLC 14135 SW 100TH AVE RUEDY, ROBERT E COLLING, JOYCE C 25111BB00400 Rf2 14185 SW 100TH AVE NO ADDRESS 2SIlIBB00500 2SIlIBB00600 KASTEL, CHARLES PETERSEN, DAVID R12 R3.5 & MARY J TRS 14085 SW 100TH AVE 14259 SW 100TH AVE 2S111BB00300 25f11BB00900 R12 R3.5 NQZE: MATCH EXHIBIT P2 All properties in the district are zoned R3.5 or R12 EXHIBIT B P 1 NTS 100TH AVE DIST NO. 42 FY 2009- 10 SANITARY SEWER EXTENSION PROGRAM A PORTION OF THE NW 1 /4 SECTION 11 T2S R1 W W.M. j O TW N Y a C rn `m X Lrl N MUDROW, MICHAEL Q & DIANE C 10185 SW VIEW TERR PROUTY, JASON 2S1f1BC01500 & AMY E R3.5 10225 SW VIEW TERR / 2511IBC01600 BUEHLER, GREGORY R3.5 & SARA L MATCH EXHIBIT P1 10145 SW VIEW TERR \ 2511IBC01400 R3.5 VIEW TERRACE 1 BAUMAN, WAYNE UM, EUNKYU & MARY & KWANG Y BOGERT, MARK PERKINS, SHERYL 10150 SW VIEW TERR & MARY E & VERN L f 0270 SW VIEW TERR 2S 1 1 f L3Cp 1300 W2S 11 B CO lOpO R3.5 4445 SW 100TH AVE 14415 SW 1 pOTH AVE SEARS, ALLEN C/0 2S1118C00200 2S111BC00300 p PHILLIPS, AMY WILLIAMS, GRANT R3.5 R3.5 n & LINN, JEREMY & LANA 10220 SW VIEW TERR 10190 SW VIEW TERR M 2SI118CO1100 2SIlIBC01200 R3.5 R3.5 I NATE: All properties in the district are zoned R3.5 or R12 EXHIBIT NTS