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Resolution No. 07-29 CITY OF TIGARD, OREGON TIGARD CITY COUNCIL RESOLUTION NO. 07- Q9 A RESOLUTION FINALIZING SANITARY SEWER REIMBURSEMENT DISTRICT NO. 39 (SW HILL VIEW STREET, 102 AVENUE) AND AMENDING THE PRELIMINARY CITY ENGINEER'S REPORT CONTAINED IN RESOLUTION NO. 06-63. WHEREAS, on October 10, 2006, the City Council approved Resolution No. 06-63 to form Sanitary Sewer District No. 39 to construct sewers in SW Hill View Street and 102nd Avenue in accordance with TMC Chapter 13.09; and WHEREAS, Resolution No. 06-63 included the City Engineer's Report that included 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 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. 39", attached hereto as Exhibit A,is hereby approved. SECTION 2: The City Engineer's Report as presented in Resolution No. 06-63 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. RESOLUTION NO. 07-oZ Page 1 PASSED: This day of V ' 2007. t Mayor City of Tigard ATTEST: ,C City Recorder- City of Tigard RESOLUTION NO. 07- � Page 2 Exhibit A City Engineer's Report Sanitary Sewer Reimbursement District No. 39 (SW Hill View Street,102nd Avenue) 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 systems according to Washington County rules and for any other modifications necessary to connect to the public sewer. Project Area- Zone of Benefit Serving the seven lots in the following table required the extension of an existing sewer in SW Hill View Street west to 102nd Avenue. The house at 13995 SW 102nd was included in the district although it could be served from an existing line in SW McDonald Street. After meeting with City staff, the owner has determined that a connection provided by the proposed district is more advantageous then connecting to the line in SW McDonald. The proposed project provided sewer service to a total of seven lots as shown on Exhibit Map B. Cost The final cost for the sanitary sewer construction to provide service to the seven lots is $112,875.16. Engineering and inspection fees amount to $15,238.15 (13.5%) as defined in TMC 13.09.040(1). The final total project cost is $128,113.31. 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 a connection and inspection fee, currently $2,735, upon connection to the public line. All owners will be responsible for all plumbing costs required for work done on private property. Reimbursement Rate All properties in the proposed district are zoned R-3.5 but vary in lot size from about sixteen thousand to twenty thousand square feet as can be seen in the following list of lots. Therefore, it is recommended that the total cost of the project be divided among the properties proportional to the square footage of each property. Exhibit A Page 1 of 4 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. Each property owner's final fair share of the public sewer line is $1.00629113 per square foot of lot served. Each owner's fair share will 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 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 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 April 23,2007 Ag s P. Duenas,P.E. City Mngineer is\eng\2006.2007 fy cip\hill view&102nd ss distVinalization\5-8-07 reim dist 39 report app a.doc Exhibit A Page 2 of 4 HILL VIEW STREET& 102ND AVENUE Reimbursement District No.39 Cost to Property Owners Based on Final Project Cost April 16,2007 AMOUNTTHAT OWNER SITE ADDRESS AREA(S.F.) AREA(AC) REIMBURSEMENT FEE AMOUNT TO BE PAID AMOUNT TO BE PAID CAN BE BY OWNER BY CITY DEFERRED BY OWNER 1 BRITTAIN FAMILY TRUST 10285 SW HILL VIEW ST 16543.307601 0.380 $16,647 $7,647 $9,000 $1,647 2 HART VIRGINIA A 10255 SW HILL VIEW ST 16543.359431 0.380 $16,647 $7,647 $9,000 $1,647 3 UPHOFF FAMILY TRUST 10225 SW HILL VIEW ST 16,543.45049 0.380 $16,648 $7,648 $9,000 $1,648 4 GILL EDWARD W& 13885 SW 102ND AVE 19648.87340 0.451 $19,772 $10,772 $9,000 $4,772 5 TAYLOR PETER H B J 13965 SW 102ND AVE 18131.07695 0.416 $18,245 $9,245 $9,000 $3,245 6 MERRICK BRET&CAROLINE J 13990 SW 102ND AVE 20118.29850 0.462 $20,245 $11,245 $9,000 $5,245 7 PECK,ALEN 13995 SW 102ND AVE 19784.00156 0.454 $19,908 $10,908 $9,000 $4,908 127312 2.92 $128,113 $66,113 $63,000 $23,113 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 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 maybe 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 HILL VIEW STREET& 102ND AVENUE Reimbursement District No. 39 Cost to Property Owners Based on Final Project Cost April 16,2007 Final Construction Cost $112,875.16 13.5%contingency(Admin&Eng) $15,238.15 total project costs $128,113.31 total area to be served(S.F.) 127,312 total cost per S.F.to property owner $1.00629113 page 4 of 4 311 d ONZO I J Z m co F V) Q m H J = Z x W 10 M3//1 77/H o rn M Of 3:: i- Li 0 W Q W U V) Z OLn = 'i Q wz0Z � LL- F-- . LO > Np0XW ZN (DW J •- o m J 07, E L N WHO � ( � L.� jW O .. D :3O CLw WL- N >� � Q � O .O Li Z Q L v