Resolution No. 06-74 CITY OF TIGARD, OREGON
RESOLUTION NO. 06-']
A RESOLUTION FINALIZING SANITARY SEWER REIMBURSEMENT DISTRICT NO. 32
(SW FERN STREET) AND AMENDING THE PRELIMINARY CITY ENGINEER'S REPORT
CONTAINED IN RESOLUTION NO. 05-05.
WHEREAS, on January 25,2005,the City Council approved Resolution No. 05-05 to form Sanitary Sewer
District No. 32 to construct a sewer in SW Fern Street in accordance with TMC Chapter 13.09; and
WHEREAS, Resolution No. 05-05 included the City Engineer's Report, which provided an 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 TMC 13.09.060 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.
32", attached hereto as Exhibit A,is hereby approved.
SECTION 2 The City Engineer's Report as presented in Resolution No. 05-05 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 _ day of kw VQ m�� 20 6.
Mayor-9(ty of Tigard
EST:
City Recorder-City of Tigard
RESOLUTION NO. 06--74
Page 1
Exhibit A
City Engineer's Report
Sanitary Sewer Reimbursement District No. 32
(SW Fern Street)
Background
This project was constructed and funded under the City of Tigard Neighborhood Sewer
Extension Program (NSEP). Under the program the City of Tigard installed public
sewers to each lot within the project area. At the time the property owner connects to
the sewer, the owner must pay a connection fee, currently $2,735, 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.
Project Area - Zone of Benefit
A line in Fern Street was extended east to serve the five lots shown on Exhibit Map B.
Cost
The final cost for the sanitary sewer construction to provide service to the five lots is
$59,437.00. Engineering and inspection fees amount to $8,024.00 (13.5%) as defined
in TMC 13.09.040(1). The final total project cost is $67,461.00. 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 will be
required to pay an additional $2,735 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 are zoned R-4.5 but vary in lot size from 21,000 to 43,000 square feet as
can be seen in the following list of lots. Therefore, it is recommended that the total cost
of this portion of the project be divided among the five 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.
Final Engineer's Report,Reimbursement District No.32—Fern Street Page 1 of 4
13620 SW Fern Street is a flag lot with an 8,003 square foot driveway which does not
benefit from the sewer. This driveway area was deducted from the total lot area to
determine the estimated cost for this lot.
Each property owner's estimated fair share of the public sewer line is
$0.37407729 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 No. 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. Upon request,
payment of costs that exceed $15,000 may be deferred until the lot is developed
as provided by Resolution No. 03-55 (attached).
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 finalized 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 November 14, 2006
Ag son P. Duenas, P.E.
City'Engineer
is\eng\2006-2007 fy cip\walnut street-phase 3(by county)\reimbursement district 32-fern street\city councihfinalize\11-28-06 rein dist 32 report app a.doc
Final Engineer's Report,Reimbursement District No.32—Fern Street Page 2 of 4
FERN STREET
Reimbursement District No.32
Final Cost to Property Owners
October4,2006
FINAL gMOUNT TO BE PAID AMOUNT TO BE PAID AMOUNT THAT
OWNER SITE ADDRESS TAX LOT ID AREA(S.F.) AREA(AC) REIMBURSEMENT BY OWNER BY CITY CAN BE DEFERED
FEE BY OWNER
1 HAVILAND,RANDALL S TR&LEUEEN M 13625 SW FERN ST 2S104BD01300 21169.66925 0.486 $7,919 $6,000 $1,919 $0
2 ROMAN,CATHOLIC ARCHBISHOP OF PORTLAND 13665 SW FERN ST 2S104BD01400 22346.68844 0.513 $8,359 $6,000 $2,359 $0
3 BENETTI,MARCO A&SALLY A 13650 SW FERN ST 2S104BD02100 48852.1919 1.121 $18,274 $9,274 $9,000 $3,274
4 CLARKE,JOHN A&NANCY J 13620 SW FERN ST 2S104BD02300 43255.11633 0.993 $16,161 $7,181 $9,000 $1,181
5 CLARKE,JOHN A&NANCY J NO ADDRESS ON FERN ST 2S104BD02102 44716.0566 1.027 $16,727 $7,727 $9,000 $1,727
Totals 180340 4.14 $67,461 $36,183 $31,278 $6,183
The"ESTIMATED REIMBURSEMENT 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 Engineers 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$2,735,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 3 of 4
FERN STREET
Reimbursement District No. 32
Final Cost to Property Owners
Summary
October 4,2006
Final Construction Cost $59,437.00
13.5%(Admin&Eng) $8,024.00
total project costs $67,461.00
total area to be served(S.F.) 180,340
total cost per S.F.to property owner $0.37407729
Page 4 of 4
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