Ordinance 12-90 TIGARD WATER DISTRICT
`rr. ORDINANCE NO.12-90
SYSTEMS DEVELOPMENT CHARGE ORDINANCE
AN ORDINANCE DEFINING SYSTEM DEVELOPMENT CHARGES, ESTABLISHING THE METHODOLOGY
FOR DETERMINING AMOUNT OF SYSTEM DEVELOPMENT CHARGES, AND PROVIDING FOR THE
ADMINISTRATION, COLLECTION, ACCOUNTING, AND EXPENDITURE OF SYSTEM DEVELOPMENT
CHARGES BY TIGARD WATER DISTRICT IN COMPLIANCE WITH CHAPTER 449 OREGON LAWS 1989
(ORS 223.297 THROUGH 223.314).
Section 1. Purpose. The purpose of the systems development charge is to impose
a portion of the cost of capital improvements for water upon those
developments that create the need for or increase the demands on capital
improvements.
Section 2. Scope. The systems development charge imposed by this ordinance is
separate from and in addition to any applicable tax, assessment,
charge or fee otherwise provided by law or mposed as a condition of development.
Section 3. Definitions. As used in this ordinance, the following terms shall
mean:
Administrator. Administrator of Tigard Water District or the
Administrator's designee.
'o+° Board. Board of Comissioners, Tigard Water District.
Capital improvements. Facilities or assets used for water supply,
treatment and distribution.
Development. Conducting a building or mining operation, making a
physical change in the use or appearance of a structure or land, dividing land
into two or more parcels (including partitions and subdivisions), and creating
or terminating a right of access.
District. Tigard Water District.
Improvement fee. A fee for costs associated with capital
improvements to be constructed after the date the fee is adopted pursuant to
section 4 of this ordinance.
Land area. The area of a parcel of land as measured by projection
of the parcel boundaries upon a horizontal plane with the exception of a portion
of the parcel within a recorded right-of-way or easement subject to a servitude
for a public street or scenic or preservation purpose.
Owner. The owner or owners of record title or the purchaser or
purchasers under a recorded sales agreement, and other persons having an
interest of record in the described real property.
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Slime Parcel of land. A lot, parcel, block or other use, and that
includes the yards and other open spaces required under the zoning, subdivision,
or other development ordinances.
Qualified public improvements. A capital improvement that is:
(1) Required as a condition of residential development approval;
(2) Identified in the plan adopted pursuant to section 8 of this
ordinance; and
(3) Not located on or contiguous to a parcel of land that is the
subject of the residential development approval.
Reimbursement fee. A fee for costs associated with capital
improvements constructed or under construction on the date the fee is adopted
pursuant to section 4 of this ordinance.
Systems development charge. A reimbursement fee, an improvement fee
or a combination thereof assessed or collected at the time of increased usage of
a capital improvement, at the time of connection to the capital improvement.
"Systems development charge' includes that portion of water system connection
charge that is greater than the amount necessary to reimburse the District for
its average cost of inspecting and installing connections with water facilities.
"Systems development charge' does not include fees assessed or collected as part
loamy of a local improvement district or a charge in lieu of a local improvement
district assessment, or the costs of complying with requirements or conditions
imposed by a land use decision.
Section 4. Systems Development Charge Established.
(1) Systems development charges shall be established and may be revised by
resolution of the Board.
(2) Unless otherwise exempted by the provisions of this ordinance or other
local or state law, a systems development charge is hereby imposed upon
all parcels of land within the District, and upon all lands outside the boundary
of the District that connect to or otherwise use the District water facilities.
Section 5. Methodology.
(1) The methodology used to establish the reimbursement fee shall consider
the cost of then-existing facilities, prior contributions by then-
existing users, the value of unused capacity, rate-making principals employed to
finance publicly owned capital improvements, and other relevant factors
identified by the council. The methodology shall promote the objective that
future systems users shall contribute no more than an equitable share of the
cost of then-existing facilities.
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(2) The methodology used to establish the improvement fee shall consider
the cost of projected capital improvements needed to increase the
capacity of the systems to which the fee is related.
(3) Based on the principals for the establishment of reimbursement fees
and improvement fees, the methodology for the determination of system
development charges shall consist of the following:
(a) The calculations shall consider the costs and capacity of the
system on an equivalent residential unit basis. Other users costs and
capacity shall be weighed according to accepted engineering and rate
making practices.
(b) The determination of existing excess capacity and future capacity
in the system shall be determined on an equivalent residential unit
basis considering the engineering design criteria used in the sizing
and timing of the facilities for which the system development charge
is being determined.
(c) To the extent that data is available, the system development
charge shall consider the cost of existing excess capacity on the
system and future capacity additions on a facility by facility basis.
The cost for facilities shall be determined over the planning period
and an average investment in excess capacity and future capacity shall
be used for the system development charge.
�✓ (d) The cost for existing excess capacity shall be adjusted to
reflect the carrying cost borne by existing customers at the cost of
borrowing at the time the facility was constructed. The cost of
future capacity additions shall be adjusted to reflect interest
earning from the time of collection until the time of construction at
a rate which reflects the District's current cost of borrowing.
(e) To the extent that existing excess capacity and future capacity
additions cannot be determined for a facility, the system development
charge for that facility shall be determined based on the current
asset value, reflecting accumulated depreciation, of the facility.
(f) The system development charge shall be reduced by the amount of
property tax payments made and expected to be made by new customers,
by the amount of debt service expected to be made by new customers
through charges for service and by the amount of capital contributed
by users. In the determination of credits for property tax payments
and debt service, the calculation shall consider the principal value
paid and to be paid.
(g) The cost for compliance with Oregon law for the determination of
system development charges shall be determined based on the number of
annual new connections projected and the cost of compliance. The cost
for compliance can also be averaged over a number of years to reflect
increased efficiency in complying with Oregon law.
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Now
Section 6. Authorized Expenditures.
(1) Reimbursement fees shall be applied only to capital improvements
associated with the systems for which the fees are assessed, including
expenditures relating to repayment of indebtedness.
(2) (a) Improvement fees shall be spent only on capacity increasing capital
improvements, including expenditures relating to repayment of
future debt for the improvements. An increase in system capacity occurs if a
capital improvement increases the level of performance or service provided by
existing facilities or provided new facilities. The portion of the improvements
funded by improvement fees must be related to demands created by development.
(2) (b) A capital improvement being funded wholly or in part from revenues
derived from the improvement fee shall be included in the plan
adopted by the District pursuant to Section 8 of this ordinance.
(3) Notwithstanding subsections (1) and (2) of this section, systems
development charge revenues may be expended on the direct costs of
complying with the provisions of this ordinance, including the costs of
developing systems development charge methodologies and providing an annual
accounting of systems development charge expenditures.
Section 7. Expenditure Restrictions.
`'`.r (1) Systems development charges shall not be expended for costs associated
with the construction of administrative office facilities that are
more than an incidental part of other capital improvements.
(2) Systems development charges shall not be expended for costs of the
operation or routine maintenance of capital improvements.
Section 8. Improvement Plan.
The Board shall adopt a plan that:
(1) Lists the capital improvements that may be funded with improvement fee
revenues;
(2) Lists the estimated cost and time of construction of each improvement;
and
(3) Described the process for modifying the plan.
Section 9. Collection of Charge.
(1) The systems development charge is payable upon issuance of a permit
to connect to the water system.
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(2) If development is commenced or connection is made to the water system
*4046110- without an appropriate permit, the systems development charge is
immediately payable upon the earliest date that a permit was required.
(3) The Administrator shall collect the applicable systems development
charge from the owner of the parcel when a connection to the water
system of the District is made.
(4) The Administrator shall not issue such permit or allow such connection
until the charge has been paid in full, until provision for
installment payments has been made pursuant to section 11 of this ordinance, or
unless an exemption is granted pursuant to section 12 of this ordinance.
Section 10. Delinquent Charges; Hearing.
(1) When, for any reason, the systems development charge has not been
paid, the Administrator shall report to the Board the amount of the
uncollected charge, the description of the real property to which the charge is
attributable, the date upon which the charge was due, and the name of the
owner.
(2) The Board shall, by motion, schedule a public hearing on the matter
and direct that notice of the hearing be given to each owner with a
copy of the administrator's report concerning the unpaid charge. Notice of the
hearing shall be given either personally or by certified mail, return receipt
requested, or by both personal and mailed notice, and by posting notice on the
parcel at least 10 days before the date set for the hearing.
Noir
(3) At the hearing, the Board may accept, reject, or modify the deter-
minations of the Administrator as set forth in the report. If the
Board finds that a systems development charge is unpaid and uncollected, it
shall, by motion, direct the Administrator to docket the unpaid and uncollected
systems development charge in the lien docket. Upon completion of the
docketing, the District shall have a lien against the described land for the
full amount of the unpaid charge, together with interest at the legal rate of
10% and with the District's actual costs of serving notice of the hearing on the
owners. The lien shall be enforceable in the manner provided in ORS Chapters
223 and 264.
Section 11. Exemptions.
(1) Structures and uses established on or before (effective date of
ordinance) are exempt from a systems development charge, except water
charges, to the extent of the structure or use then existing and to the extent
of the parcel of land as it is constituted on that date. Structures and uses
affected by this subsection shall pay the water charges pursuant to the terms of
this ordinance upon the receipt of a permit to connect to the water.
(2) Additions to single-family dwellings that do not constitute the
addition of a dwelling unit, as defined by the State Uniform Building
Code, are exempt from all portions of the system development charge.
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(3) An alteration, addition, replacement or change in use that does not
increase the parcel's or structure's use of the public improvement
facility.
Section 12. Credits.
(1) A systems development charge shall be imposed when a change of use of
a parcel or structure occurs, but credit shall be given for the
computed systems development charge to the extent that prior structures existed
and services were established on or after (effective date of ordinance) . The
credit so computed shall not exceed the calculated systems development charge.
No refund shall be made on account of such credit.
(2) A credit shall be given for the cost of a qualified public improvement
associated with a residential development. If a qualified public
improvement is located partially on and partially off the parcel that is the
subject of the residential development approval, the credit shall be given only
for the cost of the portion of the improvement not located on or wholly
contiguous to the property. The credit provided for by this subsection shall be
only for the improvement fee charged for the type of improvement being
constructed and shall not exceed the improvement fee even if the cost of the
capital improvement exceeds the applicable improvement fee.
(3) Credit shall not be transferable from one development to another
except in compliance with standards adopted by the Board.
(4) Credit shall not be transferable from one type of capital improvement
to another.
Section 13. Segregation and Use of Revenue.
(1) All funds derived from a particular type of systems development charge
are to be segregated by accounting practices from all other funds of
the District. That portion of the systems development charge calculated and
collected on account of a specific facility system shall be used for no purpose
other than those set forth in section 6 of this ordinance.
(2) The Administrator shall provide the Board with an annual accounting,
based on the District's fiscal year, for systems development charges showing the
total amount of systems development charge revenues collected for each type of
facility and the projects funded from each account.
Section 14. Appeal Procedure.
(1) A person aggrieved by a decision required or permitted to be made by
the Administrator under this ordinance or a person challenging
the propriety of an expenditure of systems development charge revenues may
appeal the decision or the expenditure to the Board by filing a written request
with the Administrator describing with particularity the decision of the
Administrator or the expenditure from which the person appeals.
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(2) An appeal of an expenditure must be filed within two years of the date
of the alleged improper expenditure. Appeals of any other decision
must be filed within 10 days of the date of the decision.
(3) The Board shall determine whether the Administrator's decision or the
expenditure is in accordance with this ordinance and the provisions of
ORS 223.297 to 223.314, and may affirm, modify, or overrule the decisions. If
the Board determines that there has been an improper expenditure of systems
development charge revenues, the Board shall direct that a sum equal to the
misspent amount shall be deposited within one year to the credit of the account
or fund from which it was spent.
(4) A legal action challenging the methodology adopted by the Board
pursuant to Section 5 shall not be filed later than 60 days after the
adoption.
Section 15. Prohibited Connection. No person may connect to the water systems
of the District unless the appropriate systems development charge has been paid
or the lien or installment payment method has been applied for and approved.
Section 16. Penalty. Violation of Section 16 of this ordinance is punishable
by a fine not to exceed $250, or imprisonment not to exceed 30 days, or both,
pursuant to ORS 198.600.
Section 17. Construction. The rules of statutory construction contained in ORS
°o✓ Chapter 174 are adopted and by this reference made a part of this ordinance.
Section 18. Severability. The invalidity. The invalidity of a section or
subsection of this ordinance shall not affect the validity of the remaining
sections or subsections.
Section 19. Effective Date. This Ordinance shall become effective on the 30th
day after its adoption by the Board of Commissioners of the Tigard Water
District.
Enacted this 10 day of July , 199 0 , by the Board of
Commissioners of Tigard Water District after notice and reading as directed by
the Board pursuant to ORS 198.510, et seq., by affirma ' vote of a majority of
the members of the Board.
f.-
Chairmanthe Soard
df>
Date: July 10, 1990
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Attested to this 10 day of July , 1990 , by
Nape
n Miller, Administrator and
Recording Secretary of the Board of
Commissioners, Tigard Water District
Commissioners Aye Nay Abstain
Jon Kvtstpri X
Walter Stronach
Audrey Cast; la
gabprf R1 P(jsnP. X
Denis Borman
(/m/1104)
loamy
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