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Resolution No. 02-28 CITY OF TIGARD, OREGON RESOLUTION NO. 02- a—1 A RESOLUTION ESTABLISHING SANITARY SEWER REIMBURSEMENT DISTRICT NO. 23 (O'MARA STREET AT CNF,T.SFA LOOP) WHEREAS, the City has initiated the Neighborhood 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. 23, O'Mara at Chelsea Loop", 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. 23." 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. SECTION 6 This resolution is effective immediately upon passage. PASSED: This "G day of 2002. /AL AA1 1)J ayor-Cit i ATTEST: o T ,uUDAMt City Recorder- City of Tigard i'.1cRrmdeVe%reim-23(o'mam)fomtation.doc RESOLUTION NO. 02-,:; Page 1 Exhibit A City Engineer's Report Sanitary Sewer Reimbursement District No. 23 (O'Mara Street at Chelsea Loop) 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. Proiect Area - Zone of Benefit An existing sanitary sewer line is located in SW Chelsea Loop as shown on Exhibit Map B. The line from Chelsea Loop would be extended south then continue west along SW O'Mara Street serving seven lots on the south side of the street. The five contiguous lots further west were provided with service on January 26, 2000 through Reimbursement District No. 17. The lots on the north side of SW O'Mara are currently served from SW Hill Street. Cost The estimated cost for the sanitary sewer construction is $57,790. Engineering and inspection fees amount to $7,800 (13.5%) as defined in TMC 13.09.040(1). The estimated total project cost is $65,590. This is the 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. However, the actual amount that each property owner pays is subject to the City's incentive program for early connections. 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 but vary in lot size from about 9,500 to 24,000 square feet. Therefore, it is recommended that the total cost of the project be divided proportional to the square footage of each property among the seven properties included in the reimbursement district as shown on the attached table_ Resolution 01-46 limits this fee to $6,000 to the extent that is does not exceed $15,000 per owner for connections completed within three years of final approval of the City Engineer's Report. Other reimbursement methods include dividing the cost equally among the owners or proportional to 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 $0.47 per square foot of the 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 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. 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 March 25, 2002 G ,,, , P. ��." Agsin P. Duenas PE City ngineer \\tig333\usr\depts\eng\gregtre.imbum ment districts\23 o mars at chelsealformetion\report establish.doc Loop IV V) t-� N - w CL W p :2 N - - _ V) O W -J V) z m � O _ F— J cn U-)`t cr W W LJ LO cl:� = ry U _ 1� H Z LAJ Z d ' O LAJ �^ U} LQ' � W W W O V) Q- 0 t— d CL W 1 �� cr- _ u I— `e r-----, ►-- J O Q . 0u LL- I �' , z W O J <C 3 _ :21 w Z Ol to Q O Q O F— a � V) I — —