This chapter is intended to provide authorization for system
development charges for capital improvements pursuant to ORS 223.297
through 223.314 for the purpose of creating a source of funds to pay
for the installation, construction, and extension of capital improvements.
These charges shall be collected at the time of the development of
properties which increase the use of capital improvements and generate
a need for those facilities.
(Ord. 1707 § 1, 1991)
The system development charges imposed by this chapter are separate
from and in addition to any applicable tax, assessment, charge, or
fee otherwise provided by law or imposed as a condition of development.
(Ord. 1707 § 2, 1991)
"Capital improvements"
means facilities or assets used for:
1.
Water supply, treatment, and distribution;
2.
Sewage and wastewater collection, transmission, treatment, and
disposal;
3.
Drainage and flood control;
"Development"
means conducting a building or mining operation, making a
physical change in the use or appearance of a structure or land, or
creating or terminating a right of access.
"Improvement fee"
means a fee for costs associated with capital improvements to be constructed after the date the fee is adopted pursuant to Section
13.28.040 of this chapter.
"Land area"
means the area of a parcel of land as measured by projection
of the parcel boundaries upon a horizontal plane with the exception
of a portion of the parcel within a recorded right-of-way or easement
subject to a servitude for a public street or scenic or preservation
purpose.
"Owner"
means the owner(s) of record title or the purchaser(s) under
a recorded sales agreement, and other persons having an interest of
record in the described real property.
"Parcel of land"
means a lot, parcel, block, or other tract of land that is
occupied or may be occupied by a structure or structures or other
use, and includes the yards and other open spaces required under the
zoning, subdivision, or other development ordinances.
"Permittee"
means the person to whom a building permit, development permit,
permit to connect to the sewer or water system, or right-of-way access
permit is issued.
"Qualified public improvement"
means a capital improvement that is required as a condition of development approval, identified in the plan adopted pursuant to Section
13.28.080 of this chapter and either:
1.
Not located on or contiguous to a parcel of land that is the
subject of the development approval; or
2.
Located in whole or in part on or contiguous to property that
is the subject of development approval and required to be built larger
or with greater capacity than is necessary for the particular development
project to which the improvement fee is related.
"Reimbursement fee"
means a fee for costs associated with capital improvements constructed or under construction on the date the fee is adopted pursuant to Section
13.28.040 of this chapter.
"System development charge"
means a reimbursement fee, an improvement fee, or a combination
thereof assessed or collected at the time of increased usage of a
capital improvement, at the time of issuance of a development permit
or building permit, or at the time of connection to the capital improvement.
"System development charge" includes that portion of a sewer or water
system connection charge that is greater than the amount necessary
to reimburse the City for its average cost of inspecting and installing
connections with water and sewer facilities. "System development charge"
does not include fees assessed or collected as part of a local improvement
district, or a charge in lieu of a local improvement district assessment,
or the cost of complying with requirements or conditions imposed by
a land use decision.
(Ord. 1707 § 3, 1991; Ord. 1774 § 1, 1994)
The Council shall adopt by resolution the Systems Development
Charge Funds Project Plan. This Plan:
A. Lists
the capital improvements that may be funded with improvement fee revenues;
and
B. Lists
the estimated cost and time of construction of each improvement.
In adopting this Plan the City Council may incorporate by reference
all or a portion of any public facilities plan, master plan, capital
improvements plan, or similar plan that contains the information required
by this section. The City may modify this Project Plan at any time
through the adoption of an appropriate resolution.
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(Ord. 1707 § 8, 1991)
A. System
Development Charge Due
1. When
a system development charge is due and payable, the permittee may
apply for payment in 20 semiannual installments, secured by a lien
on the property upon which the development is to occur or to which
the utility connection is to be made, to include interest on the unpaid
balance.
2. The
permittee may irrevocably elect in writing to have the system development
charge levied for a number of years less than 10, and according to
such terms as the City Manager or designee may provide, pursuant to
ORS 223.215.
B. The
City Manager or designee shall provide application forms 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.
C. A permittee
requesting installment payments shall have the burden of demonstrating
the permittee's 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.
D. The
City Manager or designee shall docket the lien in the lien docket.
From that time the City shall have a lien upon the described parcel
for the amount of the system development charge, together with interest
on the unpaid balance at the rate established by the Council. 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.
(Ord. 1707 § 10, 1991; Ord. 1725 § 1, 1992; Ord. 2108 § 1, 2015)
A. When
development occurs that is subject to a system development charge,
the system development charge for the existing use, if applicable,
shall be calculated and if it is less than the system development
charge for the use that will result from the development, the difference
between the system development charge for the existing use and the
system development charge for the proposed use shall be the system
development charge. If the change in the use results in the system
development charge for the proposed use being less than the system
development charge for the existing use, no system development charge
shall be required, however, no refund or credit shall be given unless
provided for by another subsection of this section.
B. A credit
shall be given to the permittee for the cost of a qualified public
improvement development upon acceptance by the City of the improvement.
The credit provided for in this subsection shall be only for the improvement
fee charged for the type of improvement being constructed, and credit
for qualified public improvements may be granted only for the cost
of that portion of such improvement that exceeds the City's minimum
standard facility size or capacity needed to serve the particular
development project or property. The applicant shall have the burden
of demonstrating that a particular improvement qualified for credit
under this subsection. The request for credit shall be filed in writing
no later than 60 days after acceptance of the improvement by the City.
C. When
establishing a methodology for a system development charge, the City
may provide for a credit against the improvement fee, the reimbursement
fee, or both, for capital improvements constructed as part of the
development which reduces the development's demand upon existing capital
improvements or the need for future capital improvements, or a credit
based upon any other rationale the Council finds reasonable.
D. When
the construction of a qualified public improvement gives rise to a
credit amount greater than the improvement fee that would otherwise
be levied against the project receiving development approval, the
excess credit may be applied against improvement fees that accrue
in subsequent phases of the original development project. Credit shall
not be transferable from one development to another.
E. Credits
shall not be transferable from one type of system development charge
to another.
F. Credits
shall be used within 10 years from the date the credit is given.
G. A credit
may be given to a permittee for the costs of a public improvement
provided by the permittee pursuant to a land division or land use
condition of approval (other than a qualified public improvement)
on acceptance of the improvement subject to the requirements of this
section.
1. Credit
may be given only for public improvements that cure existing deficiencies
or provide excess capacity beyond that needed to accommodate the development.
The fact that a facility is not extended to the property being developed
is not an existing deficiency.
2. A
reimbursement fee credit may be provided only to the extent that the
public improvement cured an existing deficiency.
3. An
improvement fee credit may be provided only to the extent that the
public improvement provides excess capacity to meet the needs of future
growth.
4. The
maximum total credit shall take into account the extent of use by
the development on which the condition of approval requiring the public
improvement was imposed. For example, if the total cost of a public
improvement is $100,000 and the development will use 10% of the capacity
of that improvement, the total credit may not exceed $90,000.
5. When
a permittee seeks a credit for a capital improvement that is not a
qualified public improvement the following process shall be applied:
a. The permittee shall submit a written request for a credit and obtain
preliminary conceptual approval for the credit from the City Engineering
Director prior to beginning work on the capital improvement.
b. The permittee and the City Engineering Director shall meet and establish
the maximum credit that will be allowed for the improvement prior
to construction. The maximum credit will be based on at least one
cost estimate prepared by an engineer and shall take into account
the limitations on credit established in this section.
c. A request for final determination of credit shall be filed by the
permittee in writing no later than 30 days after written acceptance
of the improvement by the City. The final determination shall be made
by the Engineering Director and shall be based upon actual project
cost, with adjustments as provided by this section, but shall not
exceed the maximum credit established under this subsection.
(Ord. 1707 § 12, 1991; Ord. 1774 § 2, 1994; Ord. 1946 § 1, 2005)
The City shall maintain a list of persons who have made a written
request for a methodology for any system development charge. Written
notice shall be mailed to persons on the list at least 45 days prior
to the first hearing to adopt or amend a system development charge,
and the methodology supporting the adoption or amendment shall be
available at least 30 days prior to the first hearing to adopt or
amend. The failure of a person on the list to receive a notice that
was mailed shall not invalidate the action of the City. The City may
periodically delete names from the list, but at least 30 days prior
to removing a name from the list must notify the persons whose name
is to be deleted that a new written request for notification is required
if the person wishes to remain on the notification list.
(Ord. 1774 § 3, 1994)
No person may connect to the water or sewer systems of the City
unless the appropriate system development charge has been paid.
(Ord. 1707 § 16, 1991)
Violation of this chapter is punishable by a fine not to exceed
$500.
(Ord. 1707 § 17, 1991)