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Resolution No. 11-27 CITY OF TIGARD, OREGON TIGARD CITY COUNCIL RESOLUTION NO. 11-Qr7 A RESOLUTION FINALIZING SANITARY SEWER REIMBURSEMENT DISTRICT NO. 50 (SW CANTERBURY LANE) AND AMENDING THE PRELIMINARY CITY ENGINEER'S REPORT CONTAINED IN RESOLUTION NO. 10-57 WHEREAS, on November 9, 2010, the City Council approved Resolution No. 10-57 to form Sanitary Sewer Reimbursement District No. 50 to construct sewers in SW Canterbury Lane in accordance with Tigard Municipal Code(TMC) Chapter 13.09;and WHEREAS, the City Engineer's Report, included in Resolution No. 10-57, 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 titled "Sanitary Sewer Reimbursement District No. 50," attached hereto as Exhibit A,is hereby approved. SECTION 2: The City Engineer's Report as presented in Resolution No. 10-57 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 immediately upon passage. PASSED: This a87!-�5day of 2011. or-City of Tigard ATTEST: ity Recor er-City of Tigard RESOLUTION NO. 11-a Page 1 Mo. Exhibit A Final City Engineer's Report Sanitary Sewer Reimbursement District No. 50 (SW Canterbury Lane) Background This project was 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. - Assumes responsibility for any plumbing modifications necessary to connect to the 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 the two lots in the attached table required extending an existing sewer in SW Inez Street. No further extension of this line will be required. The surrounding area is completely served with sewer. The owner of 10380 SW Canterbury Lane is requesting sewer service to accommodate a proposed addition to his home. The City is the owner of the adjacent lot at 10310 SW Canterbury Lane. This lot is a City park and the site of the John Tigard House managed by the Tigard Area Historical and Preservation Association. The association has expressed an interest in constructing a restroom to the south of the house. The proposed sewer would provide service to this restroom. The proposed project would provide sewer service to a total of two lots within the proposed reimbursement district as shown on Exhibit B to the proposed resolution. Cost The final cost to provide sanitary sewers to the two lots is $56,425 Construction $49,714 Engineering and Inspection* $6,711 Total $56,425 *13.5 percent as defined in TMC 13.09.040(1) This is the amount that would 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 Exhibit A Page 1 of 4 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, 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 The two lots are dissimilar but are receiving the same benefit. Therefore,it is recommended that the total cost of the project be divided equally between the two properties. Other reimbursement methods include dividing the cost proportional to lot area 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 fair share of the public sewer line is $28,213. 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 pubic sewer would no longer be required to pay the reimbursement fee. Submitted June 14,2011 Theodore S. Kyle, City Engineer Exhibit A Page 2 of 4 CANTERBURY LANE FY 2010-11 Sanitary Sewer Extension Program Final Cost to Property Owners Summary Thursday,May 19,2011 Final Construction Costs $49,714 13.50%Administration &Engineering $6,711 total project costs $561,425 total lots to be served 2 total cost per lot $28,212.70 Page 3 of 4 CANTERBURY LANE FY 2010-11 Sanitary Sewer Extension Program Final Cost to Property Owners Thursday,May 19,2011 Final Amount that Amount to be Amount to be can be Owner Site Address Tax Lot ID Reimbursement paid by Owner Paid by City Deferred by Fee Owner 1 1vliller,Paul E&Judith A 10380 SE Canterbury In 2SI l IBCO2700 $ 28,213 $ 19,213 $ 9,000 $ 13,213 2 City of Tigard 10310 SW Canterbury Ln 2S111BCO2603 $ 28,213 $ 19,213 $ 91000 $ 13,213 Totals $ 56,425 $ 38,425 $ 18,000 $ 26,425 The"FINAL,REM-IBURSEb1ENT FEE"column shows the estimated 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. The final reimbursement fee will be determined once construction is complete and final costs are determined. 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 may be 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$4,135 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 4of4 'r CANTERBURY LANE-REIMBURSEMENT DIST NO. 50 FY 2010- 11 SANITARY SEWER EXTENSION PROGRAM A PORTION OF THE NW 1 /4 SECTION 11 T2S R1 W W.M. w I a \ VIE TERR INEZ ST MURDOC T. URY LN O M1L1032S1c141BCO27R JUDITH A K PL. Li > _ cm OF ncaRD w r O 10310 CANTERBURY LN Z------ a 2S111SCO2603 Q 0 Q 0 - -- MURDO NOTE: All properties in the reimbursement EXHIBIT B district are zoned R3.5 NTS 0