[Ord. No. 1681, 4-4-1978; Ord. No. 1895, 7-3-1984; Ord. No. 2120, Ren&Amd, 12-19-1995]
Means an individual or any legal entity, including the City
of Lake Oswego.
Means a sewer or sewer line improvement conforming to City
standards including but not limited to:
Extension of a sewer line to property other than that owned
by the person financing the improvement so that sewer service can
be provided to that property without further extension of the line;
and
Construction of a sewer line larger, deeper, or of greater capacity
than necessary to serve the property of the person financing the improvement
in order to provide future service to other properties without the
need to reconstruct the line, or constructing additional, deeper or
parallel lines.
Means a street or street improvement conforming to City standards
and including but not limited to streets, surface water drainage facilities
in conjunction with streets, curbs, gutters, sidewalks, bike and pedestrian
pathways, traffic control devices, street trees, lights and signs
and public right-of-way or easement acquisition.
Means a surface water quality or quantity facility conforming
with City standards including but not limited to:
Extension of a surface water management line to property other
than that owned by the person financing the improvement so that surface
water management service can be provided to that property without
further extension of the line;
Construction of a surface water management line larger, deeper,
or of greater capacity than necessary to serve the property of the
person financing the improvement in order to provide future service
to other properties without the need to reconstruct the line;
A detention facility with the capacity to serve upstream properties;
and
A water quality facility with capacity to serve upstream properties.
Means a water or water line improvement conforming with City
Standards including but not limited to:
Extension of a water line to property other than that owned
by the person financing the improvement so that water service can
be provided to that property without further extension of the line;
and
Construction of a water line larger, deeper, or of greater capacity
than necessary to serve the property of the person financing the improvement
in order to provide future service to other properties without the
need to reconstruct the line, or constructing addition, deeper or
parallel lines.
Means the charge imposed pursuant to LOC Article 40.04 designed to reimburse a person for the costs of financing a sewer, street, surface water management or water improvement. The Zone Connection Charge is not intended to limit or replace, and is in addition to, any other existing fees or charges collected by the City.
Means the area benefited by the construction of sewer, water,
surface water management or street improvements financed in whole
or in part by a person without the formation of a local improvement
district. A Zone of Benefit may be formed in conjunction with a local
improvement district where a person finances a share of the cost of
the improvement that is larger than the share that would result from
a uniform application of the district assessment formula to property
located in the district and owned by the person.
[Ord. No. 1895, 7-3-1984; Ord. No. 2120, Ren&Amd, 12-19-1995]
LOC Article 40.04 provides a method to reimburse a person or the City who finances the construction of a sewer, water, surface water management or street improvement in whole or in a disproportionately large part. It is intended to be used to mitigate the cost of financing such public improvements by distributing those costs to other benefited property owners at the time those benefited property owners connect to or make use of the improvement.
[Ord. No. 1895, 7-3-1984; Ord. No. 2120, Ren&Amd, 12-19-1995; Ord. No. 2511, Amended, 5-6-2008]
1.
Any
person may apply to the City to form a Zone of Benefit where the person
chooses or is required as a condition of permit approval to construct
a street, sewer, surface water management or water improvement that
includes additional or oversized improvements that would or could
provide service to property other than property owned by the applicant.
Examples include but are not limited to:
a.
Full
street improvements instead of half street improvements;
b.
Construction
of off-site sidewalks or pathways;
c.
Connection
or extension of street sections for continuity;
d.
Extension
of water, surface water management or sewer lines.
e.
Oversizing
of water, surface water management or sewer lines or surface water
quality or detention facilities if the oversizing costs are not reimbursed
by the City.
2.
The
application shall be in writing and shall be accompanied by a processing
fee established by resolution of the City Council sufficient to cover
the administrative and notice costs of processing an application pursuant
to this ordinance. The application shall include the following:
a.
A
description of the location, type, size, and cost of the public improvement.
b.
A
narrative explaining why the applicant believes all or part of the
cost of the improvement is eligible for reimbursement pursuant to
this ordinance.
c.
A
map showing the properties to be included in the proposed district,
including the City Zoning designation, the square footage or frontage
of the property or properties and identification of the properties
owned by the applicant, if any.
d.
The
cost of the improvements to be reimbursed. The costs shall include
the post-construction actual costs of construction, acquisition of
necessary right-of-way and/or easements, permit fees, engineering
and legal services fees, as evidenced by a contract, receipts, invoices
or other similar evidence satisfactory to the City Manager to itemize
the various parts of the work performed and the actual costs incurred
for the various parts of the work.
e.
The
date that the City accepted the public improvements.
3.
An
application to form a Zone of Benefit may be made no later than three
months after completion and acceptance of the street, sewer, surface
water management or water improvements. The City Manager may waive
this deadline if the applicant demonstrates that the delay was not
created by the applicant and was created by unanticipated or unforeseen
circumstances.
[Ord. No. 1895, 7-3-1984; Ord. No. 2120, Ren&Amd, 12-19-1995; Ord. No. 2511, Amended, 5-6-2008]
1.
The
City Manager shall review a request for the establishment of a zone
of benefit and determine whether a zone should be established. The
City Manager may request the submittal of any other relevant information
from the applicant in order to assist in this evaluation. If the Manager
determines that formation of a Zone of Benefit is appropriate, the
Manager shall prepare a written report that:
b.
Establishes
the area of the zone of benefit, the zone formation date and the date
when the right of reimbursement ends.
c.
Sets
forth the actual or estimated cost of the street, water, surface water
management or sewer improvements and the portion of the cost for which
the applicant should be reimbursed pursuant to subsection 2 of this
section.
d.
Establishes
a methodology for spreading the cost among the properties within the
Zone of Benefit and, where appropriate, defining a "unit" for applying
the Zone Connection Charge to property that may, with City approval,
be partitioned, adjusted or subdivided at some future date. The methodology
should consider the cost of the improvements, prior contributions
by property owners, the value of the unused capacity, rate making
principles employed to finance public improvements, and other factors
deemed relevant by the City Manager. Prior contributions by property
owners shall only be considered if the contribution was for the same
type of improvement and at the same location.
e.
Establish
the Zone Connection Charge. The Zone Connection Charge shall be automatically
adjusted on January 1 immediately following the establishment of the
charge, by an amount equaling the percentage change in the Engineering
News Record Construction Cost Index (20-City average), referred to
in this Section as "the Index," from the date of acceptance of the
qualifying improvements.
On January 1 of each year thereafter the Zone Connection Charge
shall be further adjusted by an amount equaling the percentage change
in the Engineering News Record Construction Cost Index (20-City average)
in the Index from January 1 of the previous year.
f.
Direct
that a certificate of payment and right of reimbursement be issued
to the zone requestor.
2.
Determining Reasonable Actual Costs. The applicant shall not be entitled to reimbursement for any costs in excess of reasonable actual costs. An applicant shall demonstrate actual costs by submitting contracts, invoices or such other documentation as the City Manager deems sufficient. Actual costs shall not be deemed reasonable if the City Manager determines that such costs significantly exceed prevailing market rates, reasonable fees or fair market values (if included in the method of calculation of the cost of the improvement pursuant to LOC § 40.04.030 (2)(d)), for similar projects. In such a case, the City Manager may reduce the reimbursable costs to the prevailing market rate or value for similar projects. In addition, the following costs shall not be subject to reimbursement:
a.
Costs
for that portion of the improvement that benefits the applicant’s
own property.
b.
Costs
for improvements that are not dedicated to and accepted by the City
as a public improvement.
c.
Costs
for a public improvement that is required as condition of development
approval.
d.
Costs
for relocation of electrical, telephone, cable television or natural
gas utility relocation benefiting an applicant’s property.
e.
Costs
for extra work or materials required to correct deficiencies in construction
to bring the improvement to City Standards.
f.
Costs
for sanitary sewer, surface water management facilities, water or
street improvements that are the minimum size necessary to meet City
standards and serve an applicant’s property.
3.
If the City Manager determines that a Zone of Benefit should not be formed, the City Manager shall prepare a written report explaining why the formation of the Zone of Benefit would be inappropriate or does not qualify pursuant to LOC Article 40.04. The report shall be mailed to the applicant along with a written notice that the City Manager’s determination may be appealed to the City Council by filing a written notice of appeal within fourteen days of the date of mailing the report and notice. The notice of appeal shall be in writing, shall explain why the City Council should reverse or modify the decision of the City Manager, and shall be accompanied by payment of the applicable appeal fee, if any is established by resolution of the City Council. If a notice of appeal is filed in compliance with all of these requirements, a hearing shall be held and a decision rendered by the City Council as provided in LOC § 40.04.050 (4).
[Ord. No. 2120, Enacted, 12-19-1995; Ord. No. 2511, Amended, 5-6-2008]
1.
Notice
of Proposed Formation. Following completion of the City Manager’s
Report, notice of formation of the proposed Zone of Benefit shall
be mailed by regular mail to the applicant and to all property owners
within the proposed Zone of the Benefit as shown on the most recent
assessment roll in the possession of the county assessor’s office.
Notice shall be deemed effective on date of mailing. Failure to receive
notice by the applicant or any affected property owner shall not invalidate
or otherwise affect formation of the Zone of Benefit. The notice shall:
a.
State
that a Zone of Benefit has been proposed that includes the property
of the person receiving notice.
b.
Briefly
describe the Zone of Benefit, the street, water, sewer or surface
water management improvement to be reimbursed, the amount of the Zone
Connection Charge, and the circumstances under which the Charge must
be paid.
c.
Include
a copy of the City Manager’s report.
d.
State
that any property owner within the Zone of Benefit may file a written
request for a hearing on formation before the City Council by filing
a written request for a hearing as provided in subsection 2 of this
section with the City Recorder within fourteen (14) days of the date
of notice.
e.
State
that unless a written request for hearing is filed within the required
time period, the Zone of Benefit shall be deemed approved on the 15th
day following the date of notice.
2.
Filing a Request for Hearing. Any property owner within a proposed Zone of Benefit may request that a hearing on the proposed formation be held before the City Council by filing a written request for hearing within fourteen days of the date that notice is provided pursuant to subsection 1 of this section. No fee shall be charged for filing a request for hearing. The written notice shall contain the name and address of the person requesting the hearing and a brief statement explaining why the person believes that the proposed Zone of Benefit should be modified or not be formed.
3.
Modification. Upon receipt of a written request for hearing, the City Manager may either reconsider and/or modify the Zone of Benefit as proposed in the City Manager’s Report or may schedule the Zone of Benefit for a public hearing. If the City Manager decides to modify the proposed zone, notice of the modification shall be mailed as provided in subsection 1 of this section, which modification is subject to a request for hearing as provided in subsection 2 of this section.
4.
Hearing. The public hearing on the proposed Zone of Benefit shall be held within a reasonable time following the request. Notice of the Hearing shall be mailed by regular mail to the applicant and all property owners who received notice of the proposed Zone of Benefit as provided in subsection 1 of this section. Notice shall be mailed at least fourteen (14) days before the date of the hearing. The Notice shall set forth the time, date and place of the public hearing and shall include the information required by subsection 1(a) through 1(c) of the section. The notice shall also state that any person may appear and be heard.
At the public hearing, testimony shall be taken generally on
the proposed Zone of Benefit. The Mayor may impose reasonable time
limits on testimony. Following close of the public testimony, the
Council shall make a preliminary decision to approve, reject or modify
the proposed Zone of Benefit as set forth in the City Manager’s
report. The preliminary decision shall be followed by adoption of
a formal written Order. An order approving formation of Zone of Benefit
shall incorporate the City Manager’s Report including any modifications,
if any, made by the City Council.
5.
Formation. The Zone of Benefit shall be deemed to be formed on the fifteenth day following the notice provided in subsection 1 of this section if no request for hearing is filed, on the fifteenth day following the second notice if the Zone of Benefit is modified pursuant to subsection 3 of this section, or on the date of adoption of the City Council’s written order if a hearing is requested and held. Notice of formation shall be mailed by regular mail to the applicant and to all property owners within the proposed district. The notice shall include the date of formation, shall state that a copy of the final City Manager’s report or Council Order is available, shall include a telephone number of the City Recorder through whom a copy can be requested, and shall include a short explanation of when the property owner is obligated to pay the Zone Connection Charge and the amount of the Charge.
6.
Recordation.
The City Recorder shall cause notice of the formation and nature of
the Zone of Benefit to be filed in the office of the county recorder
so as to provide notice to potential purchasers of property within
the district. The recording shall not create a lien. Failure to make
such a recording shall not affect the legality of the formation or
the obligation to pay the Zone Connection Charge.
[Ord. No. 1895, 7-3-1984; Ord. No. 2120, Ren&Amd, 12-19-199; Ord. No. 2511, Amended, 5-6-2008]
The certificate of payment and right to reimbursement is a contract
right between the City and the applicant. The certificate shall at
a minimum identify the person receiving the right of reimbursement,
the reimbursed amount per unit, the area of the zone of benefit, the
date of zone formation and the date upon which the right to reimbursement
ends. The applicant’s right to reimbursement is assignable and
transferable after written notice is delivered to the City advising
the City to whom future payments are to be made.
[Ord. No. 1895, 7-3-1984; Ord. No. 2120, Ren&Amd, 12-19-1995; Ord. No. 2231, Amended, 3-21-2000; Ord. No. 2511, Amended, 5-6-2008]
1.
An owner of property within any zone of benefit shall pay to the City, in addition to any other applicable fees and charges, the Zone Connection Charge established, together with any adjustment pursuant to LOC § 40.04.040 (1)(e), upon the occurrence of any of the following events within 25 years from the zone formation date;
a.
The
property owner receives final approval for a development permit to
subdivide or partition property located within the zone, or
b.
A
use of property is expanded to create additional "units", as that
term is defined in the City Manager’s report for the particular
zone. The term "unit" is not limited to residential uses; or
c.
A
property owner connects to the sewer line or water line.
d.
A
property owner makes use of the surface water management or street
improvement. As used in this subsection:
i.
"Makes use of the surface water management improvement" means development
or other improvement that results in "unit" increases in impervious
surface on the property at the time of or following construction of
the surface water management improvement for which the Zone of Benefit
has been formed; and
ii.
"Makes use of the street improvement" means development or other
improvement or changing the use of the property at the time of or
following construction of the street improvement that results in "unit"
increase in mode of travel of or congestion on the road improvement
for which the Zone of Benefit was formed.
2.
The
charge is due and payable:
a.
As
a precondition of receiving the first City permit applicable to the
development activity undertaken, or,
b.
In
the case of a connection to a line, as a precondition of receiving
the connection permit; or
c.
Upon
a development permit to subdivide or partition property located within
the zone, at the time payment is due for any system development charge
of the subdivision or partition.
3.
The Zone Connection Charge may be paid in installments in the same manner as a systems development charge pursuant to LOC § 39.06.101.
4.
A person
who becomes obligated for payment of the Zone Connection Charge as
the result of connection to a line constructed through the local improvement
district process and who owns property within the district upon which
an assessment is levied may be assessed for the Zone Connection Charge
as an added portion of the assessment levied through the improvement
district.
5.
The
failure to pay the Zone Connection Charge when due is a civil violation.
[Ord. No. 2352, Added, 3-4-2003; Ord. No. 2511, Amended, 5-6-2008]
1.
The
City may form a special Zone of Benefit pursuant to this Article to
provide reimbursement for the extension of the City sanitary sewer
line from the intersection of Pilkington Road and Childs Road, west
along Childs Road to Benfield Avenue, then north along Benfield Avenue
to the River Grove Elementary School property and then northeast across
the school property into Pilkington Park. This special Zone of Benefit
is referred to in this section as the "Rivergrove Extension Zone of
Benefit."
2.
The time limitation on payment of Zone Connection Charges provided by LOC § 40.04.070 (1) shall not apply to the Rivergrove Extension Zone of Benefit.
3.
The
costs to be reimbursed through the Rivergrove Extension Zone of Benefit
shall include all costs of acquisition, condemnation, easements, permits,
engineering, administration and construction, including all compensation
of City personnel performing any such services and activities calculated
on an hourly basis, together with all other costs allowed pursuant
to this Article.
4.
On
January 1 immediately following formation of the Zone of Benefit,
the Zone Connection Charges for the Rivergrove Extension Zone of Benefit
shall be increased by an amount equaling the rate of any percentage
change in the Engineering News Record Construction Cost Index (Seattle),
referred to in this Section as "the Index," from the date of formation
of the Zone of Benefit. On January 1 of each year thereafter the Zone
Connection Charges shall be further increased in an amount equaling
the rate of any percentage change in the Index from January 1 of the
previous year.
[Repealed by Ord. No. 1684, 1-17-1978]
