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Resolution No. 07-50 CITY OF TIGARD, OREGON TIGARD CITY COUNCIL RESOLUTION NO. 07- 10 A RESOLUTION ESTABLISHING SANITARY SEWER REIMBURSEMENT DISTRICT NO. 44 (SW CHERRY DRIVE) 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, the property owners of proposed Sanitary Sewer Reimbursement District No. 44 (SW Cherry Drive) 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. 44," 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 in Exhibit B. The District shall be known as "Sanitary Sewer Reunbursement District No. 44." 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 unmediately upon passage. RESOLUTION NO. 07 -�j U Page 1 PASSED: This J'- �day of 2007. Mayor- ity of Tigard ATTEST: r— ' /' � to .C City Recorder- City of Tigard Tigard City Council hereby readopts Resolution No. 07- 50 as amended by Council motion on July 24, 2007 and the subsequent review of the amended Exhibits A and B and receipt of public testimony on these amendments on August 28, 2007. This Resolution is effective immediately upon passage. Passed this 28`1' day of August, 2007. r Mays•— City of Tigard ttest: City Recorder—City of Tigard RESOLUTION NO. 07 -V Page 2 Exhibit A Amended City Engineer's Report Sanitary Sewer Reimbursement District No. 44 (SW Cherry Drive) 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 the project area. At the time the property owner connects to the sewer, the owner would pay a connection fee, currently $2,835, and reimburse the City for a fair share of dle 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 Wasliington County rules and for any other modifications necessary to connect to the public sewer. Project Area- Zone of Benefit Serving die 19 lots in the following table will require the extension of an existing server in SW Cherry Drive. Extension of an existing lune in Hunziker Street will be required to provide service to die lots to the north. The proposed project would provide sewer service to a total of 19 lots within the proposed reimbursement district as shown on Exhibit Map B. Cost The estimated cost for die sanitary sewer construction to provide service to the 19 lots is $408,250. Engineering and inspection fees amount to $55,114 (13.5%) as defined in TMC 13.09.040(1). The estimated total project cost is $463,364. This is the estimated amount that should be reimbursed to the sanitary sewer fund as properties connect to the sewer and pay their fait share of the total amount. However, the actual amount that each property owner pays is subject to die City's incentive program for early connections. In addition to sharing the cost of die public sewer line, each property owner will be required to pay a connection and inspection fee, currently $2,835, upon connection to the public line. All owners will be responsible for all plumbing costs required for work done on private property. Refinburserment Rate All properties in the proposed district are zoned R-3.5 but vary in lot size from about 16,000 to 21,000 square feet as can be seen in the following list of lots. Therefore, it is recommended that die 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 diese 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 $1.33937236 per square foot of 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 die annual interest rate at 6.05% as stated in City of Tigard Resolution No. 98-22. Recommendation It is recommended that a reunburseinent district be formed with an annual fee increase as indicated above and that the reimbursement district continue for fifteen years as provided in Tigard Municipal Code (I'MC) 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 August 14, 2007 A u tin P. Duenas, P.E. Ci Engineer i.Wn0V2007-2008 ly dpUiersy st sanitary sewer extension disl 44Vormo1ion 8.20.071848-07 mim dist 44 reporl ex u.doc Exhibit A Page 2 of 4 a m F 0 N CO N r M O V m Q M N N N N 01 O m W ❑ lY F' m wR' Z N 40i 407 n cm co v m m m o m m CO V3 co Lo rn v LD z Q � mL6L 16&E6 i Lprn mrr-: pro mei CO v 4i t` U p W In W1f)/n if)If)w W.W. 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(B (i3 Q] cc Wco N G Nomom <Dmnm nmMM .- � mrn vN t w m M m m LD m m m 4] 47 M L L a) 0 c •N C C •X O rr� rn � r- rr- r � r� r� rnr� nnr- ,- F- I- m y E ❑ m W J o C/3 ¢ a n � rn ❑ w a: F_ ° o F_ ¢ w W m J w ¢ _ U ¢ w ¢ = ° Z O w ¢m= 0 W 0 =� 2 m >Z =000 J}W >-m w- w 0 z 0 y wLn�2 ¢ w w � I-cn w Z °W WZWZ22mz � mCD� z zOc ¢ w0zp >-w � 02n>) =a❑ C6pU J YwzLLW Y JFjYQ W W °-1m W OUQ >' Q � } YUZ w � ¢MC79mFT- � aznnILIU > LUL�i � NmcLmwr- mm a rc� Y7 Vmr mm CHERRY DRIVE Reimbursement District No. 44 Estimated Cost to Property Owners Summary August 3, 2007 Estimated Construction Cost $355,000 15%contingency (construction) $53,250 Estimated construction subtotal $408,250 13.5% contingency(Admin& Eng) $55,114 total project costs $463,364 total area to be served (S.F.) 345,956 total cost per S.F. to property owner $1.33937236 PAGE 4 OF 4 a � O r J 1S )lM3H0 CL n MS StSL cn — 3APAG A��13HO zO d' N MS 069L zC; 1S )-,H3H0 w z z MS S6SL MH Add3H0 X 1– O MS 0 19z- Li rY V iS J1H3HO cL m OLd wcj MS 1919L y 1S Add3H� t- V) w ��y MS 029L 0° Z = mow 0 pcM v 1S wiz U W cn o (DCO 9 can M F- 1S �JIj LL- LLJ O 'L1S b wry z °9�,�9� a �s s y,19 �s <S d, °�y`' o O F! SF' s9 iy E ON F! 9l cy� U) L. O �S�b ��b S °�F�9c IS" Sly�9 ���.�y °0-90 <' J7i 0 's, a) a� � Q a_ 0 U CL•� O � � and SNdVA Z Q Attachment 2—Exhibits A and B to the original proposed resolution to establish Sewer Reinuburscrnent District No.44—SW Cherry Drive. The Council adopted the resolution on July 24(07-50)but identil ed Old Exhibits Aand B—Not approved. lour lots to be removed from Exhibits A and B. Exhibit A City Engineer's Report Sanitary Sewer Reimbursement District No. 44 Attachment 2 (SW Cherry Drive) 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 the project area. At the time die property owner connects to the sewer, the owner would pay a connection fee, currently $2,835, and reimburse the City for a fair share of the cost of die public sewer. There is no requirement to connect to the sewer or pay any fee until connection is made. In addition, property owners ate responsible for disconnecting their existing septic systems according to Washington County rules and for any odier modifications necessary to connect to the public sewer. Project Area - Zone of Benefit Serving the 23 lots in the following table will require the extension of an existing sewer in SW Cherry Drive. Extension of an existing line mi Hunzilcer Street will be required to provide service to the lots to the north. The proposed project would provide sewer service to a total of 23 lots within the proposed reimbursement district as shown on Exhibit Map B. Cost The estimated cost for die sanitary sewer construction to provide service to the 23 lots is $442,787. Engineering and inspection fees amount to $59,776 (13.5%) as defined in TMC 13.09.040(1). The estimated total project cost is $502,563. This is the estimated amount that should be reimbursed to the sanitary sewer fund as properties connect to die sewer and pay their fair share of the total amount. However, die actual amount that each property owner pays is subject to die City's incentive program for early connections. In addition to sharing tie cost of the public sewer line, each property owner will be regU red to pay a connection and inspection fee, currently $2,835, 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 tie proposed district are zoned R-3.5 but vary in lot size from about 16,000 to 32,000 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 tie properties proportional to the square footage of each property. Exhibit Page 1 of Other reirnbtusement methods include dividing the cost equally among the owners or by die length of frontage of each property. These methods are not recorrunended 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 $1.117675 per square foot of 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 reunbursement district be formed wide an annual fee increase as indicated above and dhat the reimbursement district continue for fifteen years as provided in Tigard Municipal Code (IMC) 13.09.110(5). Fifteen years after the formation of die reimbursement district, properties connecting to the sewer would no longer be required to pay the reimbursement fee. subinitted July 9, 2007 till P. Duenas, P.E. City ngineer Iaen0U000-2007 fy dpldlerry St sanitary sewer extension dist 44Vormalionl7.24-07 reim dist 44 report ex a.doc Exhibit A Page 2 of 4 Y Fm W W cOD� mul nsnn No r] N1`o m o vNo u'1 mr 1n LL F'Z Q' Z t7 r r r LL'1 N m N O N V m N �!m � m O m r o r ^ O MQ C N N m C m N 1h N ri n th t`m 0 1D N n N 12 Y- N m N O U EW O N V/y y y y y y y♦n y y IA y y Vl M In N y y y W y a � C In a a in Y O O O O O O O O O O p O b b O 0 0 0 p p b b b o tz d o 0 o m o 0 0 o d d o 0 0 0 0 0 0 0 0 0 0 0 0 O�U o 0 o m ci 0 o b c c 0 CL 0 0 0 0 0 0 o a o 0 0 mci ai ai Gi aiaci c.ci ci ai cimmc;Gi ai aimmai vi o Zm yy yL7y v)1h NN!?Vi VY to Vi Vl VlN in In N In Vl 4Y � 0 a WCv cU m 1= «°.n1n0 m� M Z r T 0 m o o d N G rmi r o O v N v 4N'1 W m F ~ C C T N O T w m_N O r m N m N O N C C m N m 10 m 0q c m r O r �l O m C O LL1 '_..• .L-. 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