A. 
New development within the city of Happy Valley contributes to the need for increased capacity on arterial and collector roads, and multi-modal transportation facilities and related improvements, and therefore should contribute to the funding for such improvements. The TSDC will fund a portion of the needed auto, bicycle and pedestrian system capacity for new development.
B. 
ORS 223.297 through 223.314 grants the city authority to impose a TSDC to equitably spread the costs of essential capacity increasing capital improvements to new development.
C. 
The TSDC is incurred upon the issuance of a permit to develop property at a specific use or density. The TSDC is separate from other fees provided by law or imposed as a condition of development. It is a fee for service because the amount of the fee relates to a development's receipt of services based upon the nature of that development.
D. 
The TSDC is not a tax on property or on a property owner as a direct consequence of ownership of property within the meaning of Section 11b, Article XI of the Oregon Constitution or the legislation implementing that section.
E. 
The TSDC shall be established and may be revised by resolution of the city council. The resolution shall set the amount of the charges (rate schedule), the methodology for calculating the charges, and the list of TSDC capital improvement projects intended to be funded by improvement fees (referred to as the TSDC Capital Project List).
F. 
The TSDC constitutes a mandatory collection method based upon the guidelines set forth in ORS 223.297 to 223.314, and is intended as a financing mechanism for the increased capacity in multi-modal improvements, and arterial and collector facilities associated with new development, and does not represent a means to fund maintenance of existing roads.
(Ord. 528 § 1, 2017)
All terms not defined below shall be defined by the city's Land Development Code (LDC).
"Accessory Dwelling Unit"
means a unit complying with the LDC, and ADUs will be charged the adopted rate for the Institute of Transportation Engineers (ITE) classification of "220 - Apartment."
"Arterial"
means that term as defined and used in the city's Transportation System Plan (TSP).
"Average Weekday Trips"
are the average 24 hour total of all vehicle trips counted to and from a study site from Monday through Friday.
"Assignment"
refers to the transfer of a credit voucher or portion of a credit voucher that is transferred to another party.
"Board"
means the board of county commissioners of Clackamas County, Oregon.
"Building Official"
means that person, or designee, certified by the state and designated as such to administer the State Building Codes for the city.
"Building Permit"
means that permit issued by the city building official pursuant to the most recently published versions of the State of Oregon Structural Specialty Code, and the Oregon Residential Specialty Code. In addition, "building permit" shall mean the manufactured home installation permit issued by the city or county building official, relating to the placement of manufactured homes.
"Bus Transit Corridor"
includes current fixed-route public bus service (excludes dial-a-ride shuttles and taxi service).
"Capital Project List"
means the list of transportation improvements adopted as part of the TSDC methodology.
"City"
means the city of Happy Valley, Oregon.
"City Attorney"
means the legal counsel of the city of Happy Valley, Oregon.
"Collector"
means that term as defined and used in Chapter 8 of the city's Transportation System Plan.
"Comprehensive Plan"
means the city generalized, coordinated land use map and policy statement that interrelates all functional and natural systems and activities relating to the use of lands, including, but not limited to, sewer and water systems, transportation facilities, recreational and natural resources, and air and water quality management programs.
"Construction Cost Index"
means that index published by the Engineering News Record (ENR) Northwest (Seattle, Washington) titled "Construction Cost Index."
"Contiguous"
means that a property and an improvement or portion thereof share a common boundary line. A determination of contiguous includes all property subject to the development approval. The boundary lines and area of an improvement shall be determined by the right-of-way and easement areas for the improvement. In addition, multiple properties under common ownership separated by features such as a common area, non-motorized vehicle or pedestrian way, creek, wetland, park, or similar areas; up to a distance of not more than 100 feet between the properties at the boundary with the improvement, are deemed to include the feature in their combined boundary line. Any portion of an improvement that is located beyond the frontage of a property, as determined by the extension of boundary lines perpendicular to the frontage of the property, is not deemed to be contiguous to that property. An intersection improvement shall be deemed contiguous to all property with frontage on the intersection, or that touches the intersection at a point.
"Council"
means the city council of the city of Happy Valley.
"County"
means Clackamas County, Oregon.
"Development Agreement"
means the tool the city will use to secure the developer's compliance with the commitment to build-out a phased master-plan project, qualifying the initial phases for a reduction under the station area and/or mixed-use reduction provisions.
"Development Permit"
means a grading, excavation, engineering, building permit, land use or similar permit issued by the city that approves new development as defined by this section.
"Department"
means the city's economic and community development department.
"Department Director"
means the director of the city's economic and community development department, or designee.
"Finance Director"
is that person employed by the city of Happy Valley that has the responsibility of managing the finance department, or designee.
"Floor Area Ratio (FAR)"
means the ratio of the total amount of enclosed gross floor area within a structure to the amount of buildable acreage. For purposes of calculation, both floor area and net site area shall be converted to square feet. (For example, a single-story building constructed on one-quarter of the net developable site would have a floor area ratio of 0.25. If a second story were added, the floor area ratio would increase to 0.50, etc.)
"Gross Floor Area,"
for the purposes of this chapter, will mirror the definition in the most recent ITE manual.
"Guest Home"
means a unit complying with the LDC. Guest homes will not be charged a TSDC assessment because these units share a kitchen and laundry facility with the primary dwelling on the parcel, and as such are not used for boarding, lodging or rental.
"Hearings Officer"
is defined as the land use hearings officer for the department.
"Improvement Fee"
means a fee for costs associated with capital improvements to be constructed.
"Internal Capture Rate"
is defined as a percent reduction of trip generation for component land uses to account for trips made internally on site. A reduction of trip generation rates can potentially decrease traffic impact and help reduce external congestion. The internal capture rate is the percent reduction of trip generation estimates for land uses to account for trips made internally on a mixed-use development site.
"ITE Trip Generation Manual"
means the most recently published edition of the manual entitled Trip Generation, published by the Institute of Transportation Engineers. A copy of the ITE Trip Generation Manual shall be kept on file with the department.
"Light Rail Transit Station Area"
is defined as the passenger station platform along a fixed-route light rail alignment.
"Long-Term Financing"
means bonds issued by the city to finance a capital improvement in accordance with ORS 223.205 to 223.295.
"Methodology"
means the narrative, formulas and charts that serve as the framework for determining the TSDC.
"Minimum Standard Facility"
means the facilities necessary to meet the adopted standards for a local public street or road applicable in the location of the subject development.
"Mixed-Use Development"
is generally a land development project with a structure, or structures, containing two or more different and interacting land uses. These areas are characteristically higher density, compact walkable areas. Mixing of uses typically includes residential (townhomes, apartments, or detached homes on small lots), retail (mostly specialty and convenience), restaurants, hotels, office buildings, movie theatres, and any other compatible and complimentary uses. Reference Table 2—Mixed-use Development TSDC Reduction Requirements, in Section 3.04.030(G), for further definition of project requirements to qualify for a mixed-use development reduction.
"Multi-Modal"
means vehicular, transit, bicycle, pedestrian and wheel chair transportation.
"New Development"
means site improvements that increase overall trip generation.
"Over-Capacity"
means that portion of an improvement that is built larger or with greater capacity than is necessary to serve the applicant's new development or mitigate for transportation system impacts attributable to the applicant's new development.
"PM Peak Hour Trips"
means all vehicle trips to and from a study site during the 60 minute time period of highest trip generation during the afternoon period between 4:00 p.m. and 6:00 p.m.
"Qualified Public Improvement"
means a capital improvement that is required as a condition of development approval, identified in the TSDC capital project list adopted by resolution and is:
1. 
Not located on or contiguous to the new development site; or
2. 
Located on or contiguous to the new development site, and as demonstrated in the traffic study for the new development is required to be built larger or with greater capacity (over-capacity) than is necessary for the new development to mitigate for transportation system impacts attributable to the new development.
"Rate Schedule"
means the TSDC associated with new development types, as adopted by resolution.
"Reimbursement Fee"
means a fee for costs associated with capital improvements already constructed or under construction when the fee is established, for which the local government determines that capacity exists.
"Right-of-Way"
means that portion of land that is dedicated for public use. Public uses may include, but are not limited to, pedestrian facilities (e.g., sidewalks, plazas), utility placement, signage, etc.
"Station Area Development"
includes parcels with some portion of the development site located within a 0.25-mile radius (straight line distance measurement) of a light rail station platform or a bus transit corridor, both of which facilitate travel to multiple geographic routes, typically resulting in reduced impact to the transportation system by encouraging multi-modal transportation and reducing the impact on the surrounding transportation system. Reference Table 1—Station Area Development TSDC Reduction Requirements, in Section 3.04.030(F), for further definition of project requirements to qualify for a station area reduction.
"Transportation System Development Charge (TSDC)"
means the fee to be paid pursuant to Section 3.04.030 of this chapter.
"TSDC Capital Project List"
means a list of capital projects adopted by the council, identifying the estimated cost, timing, and portion of project costs to be funded by the TSDC.
"Zone of Influence"
shall be identified by drawing a border around the outermost intersections/facilities studied in the Traffic Impact Analysis as measured in relationship to the city limits to develop a boundary. If the improvements that generated the original credits are within the zone of influence boundary of the development receiving the credit, including within areas of unincorporated Clackamas County, or otherwise located within the city limits of the city of Happy Valley, the credits may be reassigned because the two developments have similar impacts and traffic patterns.
(Ord. 528 § 1, 2017; Ord. 548 § 1, 2019)
A. 
A TSDC may be imposed upon all new development within the city for which a development permit is required.
B. 
The applicant for a development permit shall, at the time of application, provide the department with the necessary and applicable information, such as the description of use, number of dwelling units or square footage of structures, information about occupancy and size of any existing use on the site, necessary to calculate the TSDC. The department shall notify the applicant of the right to appeal the decision on the calculation of the charge pursuant to Section 3.04.080.
C. 
The amount of the TSDC shall be determined as identified in the methodology and rate schedule adopted pursuant to Section 3.04.010(E), and amended pursuant to subsection G and Section 3.04.090 or adjusted pursuant to subsection D or E of this section.
D. 
If the city has not assigned a TSDC category for the identified land use in the adopted rate schedule, the department shall at its option either:
1. 
Identify the land use category that is most applicable to the use in question and apply that rate.
2. 
Consider trip generation data, gathered in a credible manner, preferably by a registered traffic engineer, for the same or similar use. Such a study shall be prepared at the applicant's expense and must be submitted at least two weeks prior to expected issuance of a development or building permit. The department director has the right to accept, accept in part, modify, or reject the calculations offered under this option.
3. 
The following guidelines apply to data collection under Option 2:
a. 
The applicant shall submit a list of similar uses with similar characteristics in Oregon, Washington, California, or preferably in the Portland region. Uses must have been open for business for at least a year.
b. 
The department will determine the number of sites and locations, and if applicable for consolidated land use categories, the types of uses for which the applicant will be required to submit traffic counts.
c. 
The applicant shall supply the department with the following information for each site:
i. 
Standard days and hours of operations.
ii. 
Counts from sites on a weekday for 24 hours. Actual counting time and days of the week may vary depending on land uses and standard days of operation and shall be approved by the department. Data collection shall be compliant with the ITE Trip Generation Manual.
iii. 
Quantification of pass by and diverted link trips, when applicable, shall be compliant with the ITE Trip Generation Handbook.
iv. 
A vicinity map for each site.
d. 
The applicant shall adjust this data as follows:
i. 
Adjust daily number to PM peak hour trips or the peak hour of the day for the land use if weekend data are collected.
ii. 
Adjust pass by and diverted link trips for potential trip reduction compliant with the ITE Trip Generation Handbook.
e. 
The department shall review the applicant's data collection and adjustments, and the department director shall issue a final ruling to the applicant regarding which data and adjustments will be used for calculating the TSDC.
i. 
A fee will be charged for the review of formal alternate trip generation data. The fee will be set by Resolution.
E. 
Any developer requiring the execution of a formal development agreement to clarify TSDC reductions for station area development (Table 1) or reductions for mixed-use development (Table 2) will be required to pay a deposit (as set by resolution) prior to staff drafting the development agreement.
F. 
Station Area developments reduce vehicle trips on the adjacent roadway. Projects meeting the development density requirements that fall within a station area development are eligible to receive a reduction that correlates to the reduced impact of the eligible development. An approved station area development is eligible for a reduction on TSDC assessments as outlined in Table 1 (below) when some portion of the development site is located within a 0.25-mile radius (straight line distance measurement) of a light rail station platform or a bus transit corridor route alignment. This reduction may be combined with any applicable mixed-use development reduction (Table 2).
Table 1 Station Area Development TSDC Reduction Requirements
Reduction Level
TSDC Reduction (% Transportation Impact Reduction)
Transit Access Requirement Within 0.25 Mile Radius of:1
Development Density Requirement(s)
Level 1
5% Vehicle Trip Reduction
Bus Transit Corridor2
Minimum residential density of 24 units per acre
Minimum FAR of 2.0 per acre for non-residential development
Level 2
10% Vehicle Trip Reduction
Bus Transit Corridor2
Minimum residential density of 24 dwellings per acre AND minimum FAR of 2.0 per acre for non-residential development
Level 3
5% Vehicle Trip Reduction
Light Rail Transit Station3
Minimum residential density of 12 dwellings per acre4
Minimum FAR of 1.0 per acre for non-residential development
Level 4
10% Vehicle Trip Reduction
Light Rail Transit Station3
Minimum residential density of 24 dwellings per gross acre
Level 5
15% Vehicle Trip Reduction
Light Rail Transit Station3
Minimum residential density of 24 dwellings per acre AND at least 15% of the total gross res. & nonresidential floor area devoted to commercial/retail uses
Notes:
1
Some portion of the development site must be located within a 0.25 mile radius (straight line distance measurement) of a light rail station platform or a bus transit corridor route alignment to qualify for TSDC reduction.
2
Bus transit corridors include current fixed-route public bus service (excludes dial-a-ride shuttles and taxi service).
3
Light rail transit station area is defined as the passenger station platform along a fixed route alignment.
4
The stated residential density for this TSDC reduction level has been interpolated based on ITE Trip Generation Handbook results.
Source: ITE, Trip Generation Handbook, 2nd Edition, Appendix B, with noted exception.
G. 
Mixed-use development generates an internal trip capture, thus reducing external trip generation rates on surrounding roads. In such event, the department, for purposes of establishing the TSDC for a mixeduse development, shall apply a mixed-use development TSDC reduction to the eligible structure, or structures, which correlate to the internal capture rate of the proposed development as detailed in Table 2 (below). This reduction may be combined with any applicable station area development reduction (Table 1).
Table 2 Mixed-Use Development TSDC Reduction Requirements
Reduction Level
TSDC Reduction (% Transportation Impact Reduction)
Development Density Requirement(s)
Level 1
7% Vehicle Trip Reduction
Mixed-use development with at least two different land use types (e.g., retail and office) within the same tax lot or master-planned area
Level 2
10% Vehicle Trip Reduction
Mixed-use development with a minimum residential density of 12 dwellings per gross acre AND minimum of 0.3 FAR per gross acre for non-residential development
Level 3
14% Vehicle Trip Reduction
Mixed-use development with a minimum res. density of 24 dwellings per gross acre AND minimum of 0.3 FAR per gross acre for non-residential development
Level 4
16% Vehicle Trip Reduction
Mixed-use development with a minimum residential density of 32 dwellings per gross acre AND minimum of 0.3 FAR per gross acre for non-residential development
Level 5
18% Vehicle Trip Reduction
Mixed-use development with a minimum residential density of 40 dwellings per gross acre AND minimum of 0.5 FAR per gross acre for non-residential development
Source: derived using EPA Mixed-Use Trip Generation Model v4.0.
1. 
If the proposed development includes more than one parcel of land and/or more than one structure, the mixed-use development and/or station area development reductions shall be authorized as part of a development approval outlining the final build-out of the master plan development area. The applicable reduction shall be memorialized in a development agreement and recorded as a right-to-lien against each parcel included within the approved development area, allowing for renewal on active development projects.
a. 
If a development avails itself of the mixed-use development and/or station area development reductions and does not construct the development within the term of the development agreement, the city will capture any unwarranted reduction provided by the department at the time of permitting any built structures based on the original conceptual plan that the final built development does not warrant, by:
i. 
The developer will have an opportunity to pay the TSDC reductions that were attributed to a built structure within the mixed-use development and/or station area development; or
ii. 
The city can collect the TSDC reductions that were attributed to a built structure within the mixeduse development and/or station area development by filing a lien against the benefitting parcels.
H. 
Notwithstanding any other provision, the rate schedule adopted pursuant to subsection C shall, annually, be adjusted to account for changes in the costs of acquiring and constructing transportation facilities, based on the change in construction cost index. The construction cost index shall be used to adjust the TSDC rate schedule each fiscal year, unless it is otherwise adjusted by the council based on adoption of an updated methodology or TSDC capital project list.
(Ord. 528 § 1, 2017)
A. 
The TSDC is due and payable at the time of issuance of the building permit. The building permit shall not be issued, except as provided in subsection C or D of this section, until payment is made. The TSDC rate schedule in effect at the time that a complete development permit submittal is received by the city will be applied to that permit. That TSDC rate applied is effective for 180 days from the date the land use approval is in effect, or the development permit is submitted to the department, whichever comes last. At the expiration of the 180 day period, if the permit is not yet issued, any adjustments applied under Section 3.04.030(H) can be applied to the permit.
B. 
Notwithstanding Section 3.04.030(A), the following are exempt from the TSDC:
1. 
Alteration permits for tenant improvements, new construction or remodeling where:
a. 
No additional dwelling unit(s) or structure(s) are created.
b. 
A change of use, building addition, or other modification does not result in an increase in PM peak hour trips as determined in the manner set forth in a methodology adopted pursuant to Section 3.04.010(E), or as provided in Section 3.04.030(D) or (E), whichever is applicable.
2. 
Relocation of any structure originally located on property that the city acquires in-fee as a part of a capital transportation project that results in a building encroachment over public right-of-way or easements, when the remaining remnant will not be re-developable, such that the structure is relocated to another parcel within the city limits. Except to the extent such relocation creates additional dwelling units and/or additional PM peak hour trips as determined in the manner set forth in a methodology adopted pursuant to Section 3.04.010(E), or as provided in Section 3.04.030(D) or Section 3.04.030(E), whichever is applicable.
3. 
Replacement of any structure located on excess property that the city acquires in-fee as a part of a capital transportation project that can be marketed, or available for occupancy, except to the extent such remodeling or replacement creates additional dwelling units and/or additional PM peak hour trips as determined in the manner set forth in a methodology adopted pursuant to Section 3.04.010(E), or as provided in Section 3.04.030(D) or (E), whichever is applicable:
a. 
The agency has been provided a reasonable period of time to meet public notification requirements for sale or other disposition (i.e., public auction); and
b. 
Upon completion of the project, after access has been restored and/or recorded whichever is the later, such that the property has legal ingress/egress for development or occupancy purposes.
C. 
Payment of the TSDC by a person who is also eligible for a credit voucher for construction of a qualified public improvement may be delayed until a date certain to be set by the department at the time of development permit issuance.
Payment may only be delayed for the same development which is associated with the construction of the capital improvement for which credit is given, and the permittee shall provide the department with security to secure payment of the TSDC. The amount of security shall equal the TSDC assessment for the development as calculated by the department, and must be in a form outlined in subsection (C)(1), (2) or (3), or an alternative method approved by the city attorney.
A permittee eligible for delay of payment of the TSDC pursuant to this section shall secure payment of the assessment, prior to issuance of the development or building permit, by any of the following:
1. 
Placing cash in the amount of the assessment in an escrow account accessible by the city. Permittee shall reconcile any remaining balance after applying the credit voucher to the outstanding balance, or revenue in the escrow account shall be withdrawn to cover the balance. Once the balance is reconciled any remaining revenue in the escrow account shall be released, but not later than 180 days after the issuance of the credit voucher against the improvement pursuant to Section 3.04.050.
2. 
Issuing a letter of credit in the amount of the assessment which is accessible by the city. The permittee shall reconcile any remaining balance after applying the credit voucher to the outstanding balance, or the city shall send a demand to draw down on the letter of credit to cover the balance. Once the balance is reconciled any remaining balance on the letter of credit shall be released, but not later than 180 days after the issuance of the credit voucher against the improvement pursuant to Section 3.04.050.
3. 
The permittee can apply for delay of payment of the TSDC assessment pursuant to subsection D of this section. Once the credit voucher is issued, the permittee can apply all (or a portion of) the credit voucher toward the principal and interest balance on the account, or continue making installment payments in accordance with the payment plan throughout the duration of the loan. If the installment plan is continued, the applicant would pay an administrative fee and interest would begin accruing on the principal balance as of the date of credit voucher issuance.
D. 
When a TSDC is due and payable, the parcel owner may apply to the city for payment in 20 semiannual installments, secured by a lien on the property upon which the development is to occur, to include interest on the unpaid balance, if that payment option is required to be made available to the permittee by ORS 223.207:
1. 
A parcel owner may request installment payments for up to $500,000 in TSDC assessments; any remaining balance must be paid in full prior to issuance of the development permit.
2. 
The city shall prepare the agreement for installment payments, which shall include a waiver of all rights to contest the validity of the lien, except for the correction of computational errors. The application fee for this option shall be set by resolution.
3. 
The applicable interest rate shall be determined as follows:
Principal
Interest Rate
$0—$24,999
Current prime lending rate plus 3.0 percentage points
$25,000—$500,000
Current prime lending rate plus 2.0 percentage points
4. 
An applicant requesting installment payments shall have the burden of demonstrating the authority to assent to the imposition of a lien on the property and that the interest of the permittee is adequate to secure payment of the lien. The department director may order the imposition of the lien as recommended by the department.
5. 
Upon the department director order, the department shall cause the lien to be recorded on the city's lien docket. From that time the city shall have a lien upon the described parcel at the amount of the TSDC, together with interest on the unpaid balance at the rate established by the department director. The lien shall be enforceable in the manner provided in ORS Chapter 223, and shall be superior to all other liens pursuant to ORS 223.230. Upon satisfaction of the obligation the department director shall request the county clerk to release the lien.
6. 
With the passage of Article XI, Section 11B of the Oregon Constitution, progressive payment shall be taken for all unpaid debt. The department director will be notified immediately by the department of any account 30 days or more past due. The department director shall then send a letter to the defaulting party demanding payment no later than 30 days following the date of the demand letter. The demand letter shall require payment of all amounts to bring the account current including any applicable interest or other penalty and shall demand full compliance with a "time is of the essence" clause according to the type of obligation at issue. The time for payment to bring the account current shall be left to the best professional judgment of the department director depending upon the type of debt and amount owed but in no event shall time for payment exceed the next payment due date or any other requirements imposed by debt instruments executed by the city in favor of any third party or other agreements that may have been executed by the city.
7. 
If payment has not been made following the first notice, the department director shall refer the matter to the city attorney, who shall send a second notice, detailing the prior defaults and notices thereof indicating that further action, including legal action, will be taken.
8. 
If, following the second notice, time for payment has expired, then the city attorney shall include the defaulting person or entity on a list entitled "Collection/Fore-closure" and consult with appropriate staff regarding the most efficient and cost-effective method for collection of the debt.
9. 
The city attorney shall determine if the matter will be retained for pursuit by the city attorney, or referred to a debt collection agency or other method for collection. If retained by legal counsel, a demand letter to the debtor shall be sent declaring a default, accelerating the entire balance and requiring full payment within a reasonable period of time not to exceed 30 days. If no satisfactory response is forthcoming, legal counsel may extend the time limits for legal action in cases of extraordinary hardship; such determination shall be at the sole discretion of legal counsel and not subject to review by the council.
10. 
Upon referral and direction by the council, the city attorney may proceed with foreclosure of the assessment lien or take other legal action authorized by law which is deemed most appropriate under the circumstances.
11. 
If the city attorney determines that it is most effective to use the services of a collection agency, the city attorney may solicit proposals and make a recommendation to the council regarding selection of a firm consistent with the county local contract review board rules and ORS Chapter 279. The city attorney shall be authorized to negotiate a contract regarding the amount of compensation, length of term and methods of collection, subject to final review and approval by the council. However, the contract shall specifically provide that the collection agency shall fully comply with the Fair Debt Collection Practices Act, 15 U.S.C. 1601, et seq., and shall provide for full indemnification and protection of the city from any and all claims for unfair or unlawful debt collection practices.
(Ord. 528 § 1, 2017; Ord. 545 § 1, 2019; Ord. 556 § 1, 2021)
An applicant for a development permit, shall be entitled to a credit against the TSDC for payment of a fee in lieu of construction or for the construction of a qualified public improvement. Calculation of any TSDC credit value will be based on the TSDC capital project list in place upon the city's receipt of a TSDC credit application. The applicant shall have the burden of demonstrating in its application for credit that an improvement qualifies for credit.
A. 
The city shall provide credit for the documented, reasonable cost of construction (whether paid via fee-in-lieu of or a constructed improvement) of all or part of a qualified public improvement listed in the TSDC capital project list, adopted pursuant to Section 3.04.010(E), based on the following criteria:
1. 
A transportation improvements that is located neither on nor contiguous to the property that is the subject of development approval shall be considered for credit at 100% of the cost of the qualified improvements.
2. 
A transportation improvements that is located on or contiguous to the property that is the subject of development approval, and that is required to be built larger, or with greater capacity than is necessary for the particular development project, shall be considered for credit. Credit for these improvements may be granted only for the cost of that portion of the improvement that exceeds the capacity needed to serve the development project or property provided in a development. The city may grant greater credits (up to the total cost of the improvement) to a developer in limited circumstances where doing so serves the public interest on collector and/or arterial facilities, and the city in its sole discretion concludes, based on traffic impact analysis documents that the development project's impact is incidental to the overall improvement. To grant additional credits, the city must enter into a development agreement with the developer that identifies the developer's commitments to completing the improvements, including the timing of same, and that establishes the conditions for the city's issuance of credits.
3. 
In accordance with the city 's land development code, utility relocations to accommodate these road designs shall be fully creditable.
4. 
No more than thirteen and one-half (13.5) percent of the total qualifying construction cost shall be creditable for survey, engineering, and inspection.
5. 
No credits shall be granted for Oregon Department of Transportation (ODOT) facilities unless clearly identified as a qualified public improvement listed in the TSDC capital project list.
6. 
Road right-of-way dedicated pursuant to the applicable development conditions shall be considered for credit as follows:
a. 
Road right-of-way located neither on nor contiguous to the property that is the subject of development approval shall receive credit for the dedication.
b. 
Road right-of-way located on or contiguous to the property that is the subject of development approval, may be granted credits in accordance with subsection (A)(2) of this section.
c. 
Credit for right-of-way shall be allowed based on the reasonable market value of the public right-of-way measured at the time of the city's final land use decision or other permit decision that required the transportation improvement(s) as condition of development approval. The value of the public right-of-way may be demonstrated by an appraisal, the purchase price if the purchases closes on or before the city's decision, or other measure of value as approved by the city. The value may assume any entitlements conferred by the land use decision or other decision that approved the development but shall not include any value added by the public improvements required by the decision. An applicant for TSDC credits shall provide documentation sufficient to establish the value of the public right-of-way as determined by the city in its sole discretion.
B. 
All requests for credit vouchers must be in writing and filed with the department not more than 90 days after acceptance of the improvement. Improvement acceptance shall be in accordance with the practices, procedures and standards of the department.
C. 
The amount of any credit shall be determined by the department and based upon the subject improvement contract documents, and other appropriate information, provided by the applicant for the credit. In the credit application, the applicant must identify the improvement(s) for which credit is sought and explain how the improvement(s) meet the requirements of this section.
D. 
The applicant shall also document, with credible evidence, the value of the improvement(s) for which credit is sought. If, in the department's opinion, the improvement(s) meets the requirements of this section and the department concurs with the proposed value of the improvement(s), a credit shall be granted for the eligible amount.
E. 
The value of the credits under this section shall be determined by the city based on the actual or projected cost of construction and land valuation, as applicable, as verified by receipts and other credible evidence submitted by the applicant and concurred with by the city. Upon a finding by the city that the contract amounts, including payments for right-of-way, exceed prevailing market rates for a similar project, the credit shall be based upon market rates.
F. 
The department shall respond to the applicant's request in writing within 45 days of receipt of a technically complete request. The department shall provide a written explanation of the decision on the credit request.
G. 
If a TSDC credit is approved, the department shall provide the applicant with a credit voucher signed by the department director. The credit voucher shall state a dollar amount that may be applied against any TSDC imposed against the subject property. In no event shall a subject property be entitled to redeem credit vouchers exceeding the TSDC imposed on the subject property.
H. 
A TSDC credit has no cash or monetary value and a remaining balance on a voucher shall not be a basis for any refund. A credit shall only apply against the TSDC and its only value is to be used to reduce the TSDC otherwise due, subject to all conditions, limitations, and requirements of this chapter.
I. 
Any person claiming the right to redeem a credit shall have the burden of demonstrating ownership of the credit.
J. 
Prior to issuing a building permit or other permit that requires payment of the TSDC, and upon written application to the department, a credit shall be applied to the TSDC on a permit for development on a lot or parcel.
1. 
In the case of multi-phase development, excess credit generated in one phase may be applied to reduce the TSDC in subsequent phases of the original development project.
K. 
Credits may be reassigned from the applicant to another individual or entity for use on the new development or another property if all the following conditions are met:
1. 
A request for reassignment of a credit voucher must be made in writing with a notarized letter to the department signed by the person who owns the credit. The request for reassignment of a credit voucher shall contain all the information necessary to establish that such a reassignment is allowable under this subsection. The burden of proof that a reassignment is allowable is on the applicant. The department shall respond in writing to the applicant's request for reassignment within 30 days of receipt of the request.
2. 
Credits may be reassigned if the department determines that either:
a. 
The lot or parcel that is to receive the credit is adjacent to and served by the transportation improvements that generated the credits; or
b. 
The transportation improvements that generated the original credits are located within the zone of influence of the approved traffic impact analysis for the development receiving the credit or are otherwise located within the city limits of the city of Happy Valley.
3. 
When a credit voucher or portion of a credit voucher is reassigned a notarized assignment of transportation TSDC credits notice shall be sent from the department to both parties clarifying the reassignment. The amount reassigned shall be deducted from the transferor's credit voucher balance and reassigned to the transferee:
a. 
The assignment shall reference the original credit voucher number, which is associated with the property to which the initial credit was assigned.
b. 
The assignment shall have the same expiration date as the initial credit voucher.
c. 
The credit shall be applied to the TSDC on a permit for development on a lot or parcel within the confines of the property eligible for assignment as described in subsection I of this section.
4. 
A reassigned credit voucher shall follow all rules regarding redemption of credits.
5. 
The department may charge a fee, as set by resolution, for administering the reassignment of credits.
L. 
A TSDC credit must be redeemed at the time the city issues the building permit or other permit that requires payment of the TSDC. The applicant is responsible for presenting a credit prior to issuance of the permit. Except as provided in Section 3.04.060, under no circumstances shall any credit redemption be considered after issuance of the related permit.
M. 
A TSDC credit voucher expires on the date 10 years after the date the voucher was issued. The expiration date may not be extended.
N. 
The department director may delegate signature authority for credit vouchers to a designee.
(Ord. 528 § 1, 2017; Ord. 548 § 1, 2019)
A. 
Refunds may be given by the city upon finding that there was a clerical error in the calculation of the TSDC. Refunds shall not be allowed for failure to claim credit, as provided for in Section 3.04.050, at the time of development or building permit issuance. The refund must be requested within six months of the date the assessment was paid; failure to avail oneself of this grace period forfeits any future right or interest in the assessment paid and the credit will remain with the parcel for future development.
B. 
A fee (set by resolution) will be charged on any refund of an assessment paid on development that did not commence. The fee may be paid in cash or the applicant can opt to reduce the amount of the refund to cover the cost of the fee.
(Ord. 528 § 1, 2017)
A. 
All monies derived from the TSDC shall be placed in the city TSDC fund. Monies in the TSDC fund shall be used solely to provide the TSDC capital project list, listed capacity increasing improvements, according to the TSDC capital project list as it currently exists or as hereinafter amended, and eligible administrative costs. All monies derived from the TSDC shall be placed in the city TSDC fund. TSDC revenue shall be used to fund those projects identified in the TSDC capital project list adopted pursuant to Section 3.04.010(E), and costs related to compliance with the provisions of this chapter, as provided by ORS 223.307.
B. 
The TSDC shall not be expended for costs associated with the construction of administrative office facilities that are more than an incidental part of other capital improvements.
C. 
The TSDC shall not be expended for costs of the operation or routine maintenance of capital improvements.
D. 
The TSDC capital project list adopted pursuant to Section 3.04.010(E) may be amended from time to time by council resolution. If the rate schedule will be increased by a proposed modification of the TSDC capital project list to include capacity increasing capital improvement cost(s):
1. 
The city shall provide, at least 30 days prior to the adoption of the modification, notice of the proposed modification to the persons who have requested written notice under ORS 223.305(6).
2. 
If the city receives a written request for a hearing on the proposed modification within seven days of the date the proposed modification is scheduled for adoption, the city shall hold a public hearing.
3. 
Notwithstanding ORS 294.160, a public hearing is not required if the city does not receive a written request for a hearing.
4. 
The decision of the city to increase the rate schedule by modifying the list may be judicially reviewed only as provided in ORS 34.010 to 34.100.
(Ord. 528 § 1, 2017)
A. 
A person challenging the propriety of an expenditure of TSDC revenues may appeal the decision or the expenditure to the hearings officer by filing a written request with the department director. An appeal of an expenditure must be filed within two years of the date of the alleged improper expenditure.
1. 
After providing notice to the appellant, the hearings officer shall determine whether the expenditure is in accordance with this ordinance and the provisions of ORS 223.297 to 223.214. If the hearings officer determines that there has been an improper expenditure of TSDC revenues, the hearings officer shall direct that a sum equal to the misspent amount shall be deposited within one year to the credit of the account or fund from which it was spent.
B. 
Appeals of any other decision required or permitted to be made by the department under this chapter must be filed with the hearings officer by filing a written request and paying the appeals fee with the department within 14 days of the department's decision, or payment of the assessment, whichever comes first.
1. 
After providing notice to the appellant, the hearings officer shall determine whether the department's decision is in accordance with this ordinance and the provisions of ORS 223.297 to 223.214 and may affirm, modify, or overrule the decisions.
2. 
The fee for formally appealing a decision to the hearings officer will be set by resolution.
C. 
The decision of the hearings officer shall be reviewable solely under ORS 34.010 through 34.100. The person who has appealed a decision shall be notified of this right to review of the decision.
D. 
A legal action challenging the methodology adopted by the council pursuant to Section 3.04.010(E) shall not be filed later than 60 days after adoption. A person may contest the methodology used for calculating a TSDC only as provided in ORS 34.010 to ORS 34.100, and not otherwise.
(Ord. 528 § 1, 2017)
Prior to January 1 of each year, the city shall provide an annual accounting for the activity occurring in the dedicated fund created by Section 3.04.070 for the previous fiscal year. The accounting shall show the total amount of TSDC's collected, the amount spent on each project that was funded in whole or in part in that fiscal year, and the amount attributed to the costs of complying with the provisions of ORS 223.297 to 223.314.
(Ord. 528 § 1, 2017)