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Resolution No. 01-11 CITY OF TIGARD,OREGON 01- RESOLUTION NO.-GQ-►I A RESOLUTION ESTABLISHING SANITARY SEWER REIMBURSEMENT DISTRICT NO.20(ROSE NISTA DRIVE) WHEREAS, the City has initiated the N.'ghborhood Sewer Extension Program to extend public sewers and recover costs through Reimbursement Districts in accordance with TMC Chapter 13.09;and WHEREAS, these property owners 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.20",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 on Exhibit B. The District shall be known as "Sanitary Sewer Reimbursement District No.20.- SECTION 0"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 TMC 13.09.090. PASSED: This-a� day of CA rl&4 2001. ayor-City f ig r ATTEST: ra±1=,0 FA injQ I City Recorder-City oT Tigard rc� z Exhibit A City Engineer's Report Sanitary Sewer Reimbursement District No.20 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 a project area. At the time the property owner connects to the sewer,the owner would pay a connection fee of $2,335.00 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 system according to Washington County rules and for any other modifications necessary to connect to the public sewer. To be considered for the program,a neighborhood needs to submit evidence of owner support of the project. Generally, at least one half of the owners within the proposed district must express support for the project. This was accomplished by an owner, Mr.John Hazard,who collected signatures from nine of the fifteen owners in the proposed district. The signatures and Mr. Hazard's letter requesting sewer service are attached. Proiect Area-Zone of Benefit An existing sanitary sewer line is located in SW 118'' Avenue east of the proposed district as shown on Exhibit Map B. A line would be extended across SW 118'Avenue,then across a residential lot not in the proposed district, 13855 SW 118'" Court and finally across a residential lot within the proposed district, 12025 SW Rose Vista Drive, before reaching SW Rose Vista Drive. The line would serve fifteen properties along SW Rose Vista Drive. The lot at 12035 SW Rose Vista Drive is not included in the proposed district since this lot is currently served from a public line at the southeast corner of the lot. 1 ' Cost The purchase price of the two easements is included in the project'cost and will i be recoverable through the collection of the reimbursement fees. The easement across 13855 SW 118' Court (not within the proposed district) has been purchased for$2,410. The cost of purchasing the easement across the lot at 12025 SW rase Vista Drive is described in the attached agreement between the owner and the City. The agreement provides for the payment of$8,280 plus waiver of the connection fee of $2.,335 for a total purchase price of $10,615, This results in a total cost for the two easements of$13,025. Construction of the line through this easement will require removal of the septic system, which will necessitate immediate connection to the sewer. The owner has agreed to place a deposit with the City towards the fee required for service. Once the sewer is available,the owner may immediately connect to the sewer using the deposit as payment for the reimbursement fee. 1 he City will concurrently pay the connection fee as required by the owners agreement with the City and recover the cost by funding through the Reimbursement District. The estimated cost for the sanitary sewer construction is$160,760. Engineering and inspection fees amount to$21,700 (13.5%)as defined in TMC 13.09.040(1). The total project cost including these fees and $13,030 for easements is $195,490. This entire amount should be reimbursed to the sanitary sewer fund as properties connect to the sewer and pay their fair share of the total amount. In addition to sharing the cost of the public sewer line, each property owner, except for the owner providing the easement, will be required to pay an additional $2,335 connection and inspection fee when connection to the public line is made. All owners will be responsible for all plumbing costs required for work done on private property. Reimbursement Rate All properties in this area are zoned R-4.5 and have similar lot sizes as can be seen in Exhibit Map B.Therefore, it is recommended that the total cost of the project be divided equally among the fifteen properties included in the reimbursement district. Resolution 98-51 limits this fee to$8,000 to the extent that is does not exceed$15,000 per owner for connections completed within one year of final approval of the City Engineer's Report. Other reimbursement methods include basing the proportional share upon the square footage of each property 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 i lot. ' Each property owner's estimated fair share of the public sewer line is $13,030. Each owner's fair share would be limited to$8,000 to the extent that it does not exceed$15,000,for connections completed within one year of My Council approval of the final City Engineer's Report following construction in accordance with Resolution 98-51(attached). In addition to paying for the first $8,000, owners will remain responsible for paying all actual costs that exceed$15,000. Annual Fee Adjustment ��e ilfle through this easement v ill raquire ,e,noval of the septic system, which will necessitate immediate connection to the sewer. The owner has agreed to place a deposit with the City towards the fee required for service. Once the sewer is available, the owner may immediately connect to the sewer using the deposit as payment. The estimated cost for the sanitary sewer construction is$160,760. Engineering and inspection fees amount to$21,700(13.5%)as defined in TMC 13.09.040(1). The total project cost including these fees and $13,030 for easements is $195,490. This entire amount should be reimbursed to the sanitary sewer fund as properties connect to the sewer and pay their fair share of the total amount. In addition to sharing the cost of the public sewer line, each property owner, except for the owner providing the easement, will be required to pay an additional $2,335 connection and inspection fee when connection to the public line is made. All owners will be responsible for all plumbing costs required for work done on private property. Reimbursement Rate All properties in this area are zoned R-4.5 and have similar lot sizes as can be seen in Exhibit Map B.Therefore, it is recommended that the total cost of the project be divided equally among the fifteen properties included in the reimbursement district. Resolution 98-51 limits this fee to$8,000 to the extent that is does not exceed$15,000 per owner for connections completed within one year of final approval of the City Engineer's Report. Other reimbursement methods include basing the proportional share upon the square footage of each property 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 $13,030. Each owner's fair share would be limited to $8,000 to the extent that it does not exceed $15,000,for connections completed within one year of City Council approval of the final City Engineer's Report following construction in accordance with Resolution 98-51(attached). In addition to paying for the first $8,000, owners will remain responsible for paying all actual costs that exceed$15,000. Annual Fee Adjustment TMC 13.09.115 states that an annual percentage rate shall be applied to each property owner's fair share of the sewer line costs on the anniversary date of the reimbursement agreement. The Finance Director has set the annual interest rate at 6.05%as stated in City of Tigard Resolution No.98-22. Recommendation It is recommended that a reimbursement district be formed with an annual fee increase as indicated above and that the reimbursement district continue for fifteen years as provided in the Tigard Municipal Code (TMC) 13.09.110(5). Fifteen years after the formation of the reimbursement district, properties connecting to the sewer would no longer be required to pay the reimbursement fee. Submitted February 13, 2001 Ag tin P.Duenas PE City ngineer i d anv watt R —r �tla ' t 7777-77. I W i�i 1 � : .l Z � - -- w w . U) �} ti a w N tL tl' W 11 JJ LA- � 3 O 'Yee 8$gg { Z g N N N O3flY Nllltl wwr� O O O O 1 88 8g8S�88g §M6555 N to VI N H N NN N 4 a4Y1sle, Ell N N N N N N N N N N N 000 O O�0,0000 37,, x2 15tZt �►-�-�-�-l-°-