As used in this chapter, unless the context requires otherwise:
"Council"
means the City Council of the City of Milwaukie, Oregon.
"Costs"
means the total cost of making and financing the improvement including, but not limited to, design, construction, materials, equipment, administration, supervision, inspection, property acquisition, advertising, interest, legal, financial, and any other costs or expenses attributable to the improvement.
"Finance director"
means the Finance Director for the City of Milwaukie, Oregon.
"Local improvements"
means:
1. 
The grading, graveling, paving, or other surfacing of any street, or opening, laying out, widening, extending, altering, changing the grade, or constructing any street;
2. 
The construction or reconstruction of sidewalks;
3. 
The installation of street lights;
4. 
The installation of underground wiring or related equipment;
5. 
The reconstruction or repair of any street improvement mentioned in this section;
6. 
The construction, reconstruction, or repair of any sanitary or storm sewer or water main;
7. 
The acquisition, establishment, construction, or reconstruction of any off-street motor vehicles parking facility;
8. 
The construction, reconstruction, installation, and equipping of a neighborhood recreation facility;
9. 
Any other local improvement for which an assessment may be made on the property specially benefited.
"Lot"
means lot, block, or parcel of land;
"Owner"
means the owner of the title to real property or the contract purchaser of real property of record as shown on the last available complete assessment roll in the Office of the County Assessor;
"Public works director"
means the Public Works Director for the City of Milwaukie, Oregon.
(Ord. 1580 § 1, 1985)
A. 
Council Initiation
The Council of the City may on its own motion initiate proceedings for the creation of any local improvement district.
B. 
Petition of Property Owners
A majority (60%) of the owners of real property which will be benefited by the proposed local improvement district may petition for the creation of a local improvement district.
(Ord. 1580 § 2, 1985)
A. 
Upon its own motion or upon receipt of a petition under Section 3.08.020, the Council shall cause a report to be prepared containing:
1. 
A plat or map showing the general nature, location, and extent of the proposed improvement and the lands to be assessed to pay all or any part of the costs;
2. 
Plans, specifications, and estimates of the work to be done;
3. 
An estimate of the costs of the improvement;
4. 
The proposed boundaries of the local improvement district;
5. 
A recommendation as to the method of assessment to be used to arrive at a fair apportionment of the whole or any portion of the costs of the improvement to the property benefited;
6. 
A description of the location and assessed value of each lot, or portion thereof, to be benefited by the improvement, with the names of the owners;
7. 
A statement showing outstanding assessments against the property to be assessed;
8. 
Any other information required by the Council, who may direct the Finance Director or other public official to assist the Public Works Director in obtaining the information required by this section.
B. 
If, after receipt of the report, the Council deems it advisable to make the improvement, it shall adopt a resolution of intent to initiate the improvement and direct that notice of a public hearing be given.
(Ord. 1580 § 3, 1985)
A. 
After adoption of the resolution of intent, the Finance Director shall prepare a notice of public hearing containing the following information:
1. 
Description of the boundaries of the district;
2. 
The estimated probable cost of the proposed improvement;
3. 
The proposed method of assessment proposed to be used to arrive at a fair apportionment of the total cost of the improvement against the property benefited;
4. 
The date of public hearing when the Council will consider remonstrances to the proposed improvement;
5. 
That property owners' written remonstrances may be filed at the office of the Finance Director not later than the scheduled time for the hearing.
B. 
Not later than 10 days prior to the hearing, the Finance Director shall mail copies of the notice to the last known address of each record owner and of property benefited by the proposed improvement. If one or more of the property owners is unknown, the Finance Director shall publish the notice in a newspaper of general circulation.
(Ord. 1580 § 4, 1985)
A. 
At the hearing, the Council shall consider property owners' written remonstrances to and oral testimony on the improvement. Any written or oral remonstrances may be withdrawn at any time prior to or during the hearing. If an owner does not remonstrate, the owner shall be deemed to have waived any objections to making the improvement. The Council shall not consider remonstrances filed on behalf of property for which the City has a waiver of remonstrance on file. Oral or written remonstrances by the owners of 2/3 of the property to be assessed for the proposed improvement shall suspend action regarding the improvement for six months, unless such public improvement is for sidewalks, or an emergency regarding the necessity for such improvement exists and is so declared by the Council.
B. 
If the Council determines to alter the boundaries of the district, it shall direct that another hearing be held and additional notice provided.
C. 
If the City Council, after considering any remonstrances, finds that the improvement is for sidewalks, there are insufficient remonstrances, or an emergency exists, it shall authorize the improvement and establish the local improvement district by ordinance. The ordinance shall include a description of the improvement, how the work will be done, boundaries of the district and appropriate findings showing the improvement is consistent with the Comprehensive Plan.
(Ord. 1580 § 5, 1985)
The Council may provide for the City to do the work, or it may award the work on contract. In the event the work is done under contract, bids shall be received after advertisement therefor. The contract shall be awarded to the lowest responsible bidder, provided the Council shall have the right to reject any and all bids if it is in the public interest to do so. The Council shall provide for the taking of security by bond for the faithful performance of any contract let under its authority, and the provisions thereof, in case of default, shall be enforced in the name of the City.
(Ord. 1580 § 6, 1985)
When the estimated cost has been ascertained on the basis of a contract awarded or City construction cost estimates or after the work has been done and the cost thereof actually determined, the Council shall determine whether the property benefited shall bear all or a portion of the cost. The Council shall direct the Finance Director or other City official to prepare the proposed assessment to the respective lots benefited by the improvement. Notice of the proposed assessment shall be mailed to the owner of each lot to be assessed stating the amount of the proposed assessment on the property, the date of the hearing on the proposed assessment, and a date by which time objections must be filed. The hearing on the proposed assessments may be held at the same time as the hearing required by Section 3.08.050, if appropriate notice is given pursuant to this section and Section 3.08.040.
(Ord. 1580 § 7, 1985)
The Council shall, after the expiration of the date by which time objections to the proposed assessments shall be filed, but not earlier than 14 days after the notice is mailed or published if one or more property owners are unknown, conduct a hearing to consider such objections and may adopt, correct, modify, or revise the proposed assessments and shall thereafter determine the amount of actual assessment to be apportioned against the various lots benefited by the improvement. The Council shall by ordinance containing appropriate findings spread the assessments upon the property in the manner and amounts so determined. The Council may delay the passage of such an assessment ordinance until the contract for the work is let or the improvement completed and the total cost thereof determined, to avoid deficit assessments or rebates, or for any other reason deemed sufficient.
(Ord. 1580 § 8, 1985)
A. 
The Council, in adopting a method of assessment of the costs of the improvements, may:
1. 
Use any just and reasonable method of determining the extent of any improvement district consistent with the benefits derived;
2. 
Use any method of apportioning the sum to be assessed as is just and reasonable between the properties determined to be benefited;
3. 
Authorize payment by the City of all or any part of the cost of any such improvement when in the opinion of the Council, due to topographical or physical conditions or excessive public travel, or other character of the work involved, or when the Council otherwise believes the situation warrants it, provided the method selected creates a reasonable relation between the benefits derived by the property assessed and the benefits derived by the City as a whole.
B. 
This section shall not preclude the Council from using other available means of financing public improvements, including, but not limited to, federal or state grants-in-aid, sewer service or other types of service charges, revenue bonds, general obligation bonds, or other legal means of finance. In the event any of such other means of finance are used, the Council may, in its discretion, levy special assessments hereunder according to benefits received to cover any part of the costs of the improvement not covered by such other means.
(Ord. 1580 § 9, 1985)
A property owner may appeal any assessment made under this chapter according to the procedure provided by Oregon law.
(Ord. 1580 § 10, 1985)
A. 
After the ordinance levying assessments has been passed, the Finance Director shall enter in the docket of City liens a statement of the respective amounts assessed upon each particular lot, against which the same are placed. Such liens shall be first and prior to all other liens or encumbrances thereon whatsoever insofar as the laws of the State allow.
B. 
Interest shall be charged at a percentage rate per annum fixed by resolution of the City Council on all amounts not so paid within 30 days from the date of such entry, or entry corrected pursuant to Section 3.08.140 of this chapter. The City may proceed to foreclose or enforce any lien for an assessment which is delinquent according to the requirements of Oregon law.
C. 
Nothing in this section shall preclude the City from recording the lien on the property in the county in which the property is located.
(Ord. 1580 § 11, 1985)
Within 10 days after the ordinance levying assessments has been passed, the Finance Director shall send a notice of assessment by mail to the record owner at his or her last known address, of each lot assessed. This notice shall state the time within which such assessments must be paid or bonded and that assessments which are not paid or bonded within the time stated in the notice shall bear interest at the percentage rate per annum fixed by the City Council in accordance with Section 3.08.110 of this chapter, and that the property so assessed is subject to foreclosure if such assessments are not paid or bonded within the time stated in the notice. The notice shall also include information on deferral of assessments under ORS 311.702 through 311.735. The owner may make application to bond such assessment pursuant to the provisions of ORS 233.205 through 233.295. City-sponsored loan programs are available as provided in Section 3.08.125.
(Ord. 1580 § 12, 1985; Ord. 1661 § 3, 1989)
A. 
Loan Program
Low income property owners unable to pay for water, sewer, and other infrastructure improvements may apply for a program to extend the payment terms of their assessments. Depending upon eligibility, a property owner may apply for the longer term installment payment program or the low interest long-term program.
B. 
Longer term Installment Payments
This loan program is designed for those low income properties that need a longer period of time to pay for their assessment. This program will be divided into two terms; a 20-year and a 30-year. Commercial establishments may only be eligible for the 20-year program. This program is dependent upon City bond financing. Participants must not exceed the low income level adopted by resolution of the City Council.
C. 
Low interest Long-term Program
This loan program is designed for those participants that meet the low income levels adopted by resolution of the City Council for low interest long-term repayment of assessment. Commercial establishments are not eligible for this loan program. This program is solely dependent upon availability of City funds. In addition to the application eligibility requirements, the full assessment plus interest is due and payable upon the sale or change in use of the property or the death of the applicant.
D. 
Application—Eligibility
1. 
To the extent that City bond financing is available and the requirements of the ordinance codified in this section are met, an assessed property owner may make application to obtain a longer loan payment program for local improvement district infrastructure assessments.
2. 
To be eligible for the loan payment program:
a. 
The property must meet the requirements of ORS 223 for improvement financing;
b. 
The property involved must be occupied and used by the applicant as his or her principal residence, or in the case of a commercial establishment must be occupied and used by the applicant for business purposes;
c. 
No other City assessments or accounts may be in arrears on the property;
d. 
The income of the family or commercial establishment, of which the applicant is a member, shall not exceed the income level adopted by resolution of the City Council;
e. 
"Family" means one person or two or more persons related by blood, marriage, legal adoption, or guardianship; or a group of not more than five persons, all or part of whom are not related by blood, marriage, legal adoption, or guardianship, living together as a simple housekeeping and economic unit in the dwelling occupying the property for which the low income loan payment program is applied for;
f. 
The applicant shall file an application to obtain the low income loan payment with the City Finance Director prior to qualifying for the program;
g. 
Proof of total household income must be given to the City Finance Director prior to qualifying for the program and annually updated after approval.
(Ord. 1661 §§ 1, 2, 1989)
Claimed errors in the calculation of assessments shall be called to the attention of the Finance Director prior to any payment on account thereof. The Finance Director shall determine whether there is an error in fact and if he or she shall find that there is an error in fact, he or she shall recommend to the Council an amendment to the assessment ordinance to correct the error. Upon the enactment of such an amendment or corrected ordinance by the Council, the Finance Director shall make the necessary correction in the docket of City liens and send by mail to the last known address of the owner a corrected notice of the assessment.
(Ord. 1580 § 13, 1985)
If assessment is made before the total cost of the improvement is known and it is found that the amount assessed is insufficient to defray the expense of the improvement, the Council may by resolution declare such deficit and prepare a proposed deficit assessment. The Council shall set a time for a hearing of objections to such deficit assessment and shall direct the Finance Director to provide notice thereof in the manner set forth in Section 3.08.070 of this chapter. The Council upon such hearing shall make a just and equitable deficiency assessment by ordinance. Such deficit assessment shall be consolidated with the assessment in the lien docket in accordance with the provisions of Section 3.08.120. Thereafter, the provisions of Sections 3.08.120 and 3.08.130 shall be applicable with regard to such deficit assessment.
(Ord. 1580 § 14, 1985)
If, after any assessments are made and the improvement is not done, or upon the completion of the project it is found that any sum theretofore assessed therefor upon any property is more than sufficient to pay the cost thereof, the Council must ascertain and declare the same by ordinance, and when so declared, there must be entered in the docket of City liens a credit upon the appropriate assessment. If any such assessment has been paid, the person who paid the same or his or her legal representative shall be entitled to the payment of any portion of the rebate credit which exceeds the assessment or costs to the City by a check on the City.
(Ord. 1580 § 15, 1985)
Whenever an assessment, deficit assessment, or reassessment for any improvement which has been or may be hereafter made by the City has been or shall be hereafter set aside, annulled, declared, or rendered void, or its enforcement refuted by any court of this state or any federal court having jurisdiction thereof, whether directly or by virtue of any decision of such court, or when the Council shall be in doubt as to the validity of such assessment, deficit assessment, or reassessment or any part thereof, the Council may make a new assessment or reassessment. Such reassessment shall be made in the manner provided by ORS 223.405 through 233.485.
(Ord. 1580 § 16, 1985)
When any lot subject to an outstanding assessment is partitioned or subdivided, and the City receives a request to reapportion the assessment, the Finance Department shall apportion the assessment. The Finance Director shall charge a fee for this service as established by resolution of the City Council.
(Ord. 1580 § 17, 1985)
No improvement shall be held invalid by reason of a failure to give, in any report, in the proposed assessment, in the assessment ordinance or ordinances, in the lien docket or elsewhere in the proceedings, the name of the owner of any lot, or part thereof, or the name of any person having a lien upon or interest in such property, or by reason of any error, mistake, delay, omission, irregularity, or other act, jurisdictional or otherwise, in any of the proceedings or steps made, insofar as it affects the person complaining, is unfair and unjust, and the Council shall have power and authority to remedy and correct such matters by suitable action and proceedings.
(Ord. 1580 § 15, 1985)