The following terms are definitions for the purposes of this
chapter.
means a person, as defined in this section, who is required
or chooses to finance some or all of the cost of a street, water,
storm sewer, or sanitary sewer improvement which is available to provide
service to property, other than property owned by the person, and
who applies to the City for reimbursement for the expense of the improvement.
The applicant may be the City.
means the City of Milwaukie.
means the person who is the manager/supervisor of the City's
Engineering Department, or the City Manager's designee to fill this
position. This position can also be described as the Engineering Director
or Engineering Manager.
means the linear footage of a lot or parcel owned by an intervening
property owner which is served by a reimbursement district public
improvement and on which the intervening property owner's portion
of the reimbursement may be calculated. Front footage shall be the
amount shown on the most recent County Tax Assessor maps for the intervening
property or, in the event such information is not available, any other
reasonable method established by the City Engineer for calculating
front footage. Front footage does not include property owned by the
City, including rights-of-way.
is property that utilizes public improvements provided by
the applicant.
is property dedicated to the public, including easements
for public utilities, that is necessary in order to complete a public
improvement that was not originally part of the project site property
owned by the reimbursement district applicant.
means a natural person, the person's heirs, executors, administrators,
or assigns; a firm, partnership, corporation, association, or legal
entity, its or their successors or assigns; and any agent employee
or any representative thereof.
means any construction, reconstruction, or upgrading of a
water, sanitary sewer or storm sewer line, public street (including
bicycle lanes) or sidewalk, or undergrounding of public utilities.
means the agreement between an applicant and the City which
is authorized by the City Council and executed by the City Manager,
providing for the installation of and payment for reimbursement district
public improvements.
means the area which is determined by the City Council to
derive a benefit from the construction of street, water, storm sewer,
or sanitary sewer improvements, financed in whole or in part by the
applicant and includes property which has the opportunity to utilize
such an improvement.
means the fee required to be paid by a resolution of the
City Council and the reimbursement agreement. The City Council resolution
and reimbursement agreement shall determine the boundaries of the
reimbursement district and shall determine the methodology for imposing
a fee which considers the cost of reimbursing the applicant for financing
the construction of a street, water, storm or sanitary sewer improvement
within the reimbursement district.
means a sanitary sewer or sanitary sewer line improvement
conforming with standards in the Milwaukie Community Development Code
and including, but not limited to, extending a sewer line to an intervening
property, other than property owned by the applicant, so that sewer
service can be provided for such other property without further extension
of the main line.
means a storm sewer line improvement conforming to standards
in the Milwaukie Community Development Code and including, but not
limited to, extending a storm sewer line to an intervening property.
means a street or street improvement conforming with standards
in the Milwaukie Community Development Code and including, but not
limited to, streets, storm drains, curbs, gutters, sidewalks, bike
paths, traffic control devices, street trees, lights and signs, and
public right-of-way.
means to make a physical change to property requiring a building
permit or development permit which results in the connection of the
property to a public improvement or increased use of the public improvement
by activity on the property.
means a water or water line improvement conforming with standards
in the Milwaukie Community Development Code and including, but not
limited to, extending a water line to an intervening property, other
than property owned by the applicant, so that water service can be
provided for such other property without further extension of the
main line.
(Ord. 1868 § 1, 2000; Ord. 1994 § 1, 2009; Ord. 2002 § 1, 2009; Ord. 2017 § 1, 2010; Ord. 2218 § 2 (Exh. B), 2022)
A.
Any
person who is required to or chooses to finance some or all of the
cost of a street, water, storm sewer, or sanitary sewer improvement
which is available to provide service to property, other than property
owned by the person, may, by written application filed with the Engineering
Director, request that the City establish a reimbursement district.
The street, water, storm sewer, and sanitary sewer improvements must
include improvements of a size greater than those which would otherwise
ordinarily be required in connection with an application for permit
approval or must be available to provide service to property other
than property owned by the applicant. Examples include but shall not
be limited to full street improvements instead of half street improvements,
offsite sidewalks, connection of street sections for continuity, extension
of water, storm or sewer lines. The City may also initiate formation
of a reimbursement district. The application shall be accompanied
by a fee, as established by resolution, sufficient to cover the cost
of administrative review and notice pursuant to this chapter.
B.
The
application shall include the following:
1.
A
description of the location, type, size, and cost of the public improvement
to be eligible for reimbursement;
2.
A
map showing the properties to be included in the proposed reimbursement
district; the zoning district for the properties; the front footage
or square footage of said properties, or similar data necessary for
calculating the apportionment of the cost; and the property or properties
owned by the applicant;
3.
a.
Post-construction: the actual cost of the improvements as evidenced
by receipts, invoices or other similar documents,
b.
Preconstruction: the estimated cost of the improvements as evidenced
by bids, projections of the cost of labor and materials, or other
evidence satisfactory to the Engineering Director;
C.
The
application may be submitted to the City prior to the installation
of the public improvement but shall be submitted no later than 180
days after written acceptance of the street, water, storm, or sanitary
sewer improvements. However, the Engineering Director may waive this
requirement upon the showing by the applicant of good cause of the
delay, that the delay was not created by the applicant, and that the
delay was unavoidable due to unanticipated or unforeseen circumstances.
(Ord. 1868 § 1, 2000; Ord. 1994 § 1, 2009; Ord. 2002 § 1, 2009; Ord. 2017 § 1, 2010)
The Engineering Director shall review the application for the
establishment of a reimbursement district and evaluate whether a district
should be established. The Engineering Director may require the submittal
of other relevant information from the applicant in order to assist
in the evaluation. The Engineering Director shall prepare a written
report for the City Council, considering and making recommendations
concerning the following factors:
A.
Whether
the applicant will finance or has financed some or all of the cost
of a street, water, storm, or sanitary sewer improvement, thereby
making service available to property, other than property owned by
the applicant;
B.
The
area to be included in the reimbursement district and the public improvements
that are the subject of the district;
C.
The
actual or estimated cost of the street, water, storm or sanitary sewer
improvements within the area of the proposed reimbursement district
and the portion of the cost for which the applicant should be reimbursed
for each improvement;
D.
A methodology
for spreading the cost among the parcels within the reimbursement
district and where appropriate defining a "unit" for applying the
reimbursement fee to property which may, with City approval, be partitioned,
altered, modified, or subdivided at some future date. The methodology
should include consideration of the cost of the improvements, prior
contributions by property owners, the value of the unused capacity,
ratemaking principles employed to finance public improvements, and
other factors deemed relevant by the Engineering Director. Prior contributions
by property owners will only be considered if the contribution was
for the same type of improvement and at the same location;
E.
The
amount to be charged for administration of the agreement shall be
fixed by the City Council and will be included in the resolution approving
and forming the reimbursement district. The administration fee is
due and payable to the City at the time the reimbursement agreement
is signed;
F.
The
period of time that the right to reimbursement exists;
G.
Whether
the street, water, storm sewer, and sanitary sewer improvements will
or have met City standards.
(Ord. 1868 § 1, 2000; Ord. 1994 § 1, 2009; Ord. 2002 § 1, 2009; Ord. 2017 § 1, 2010)
A.
The
cost to be reimbursed to the applicant shall be limited to the cost
of construction, engineering, and offsite right-of-way. Engineering
shall include surveying and inspection and shall not exceed thirteen
and one-half percent (13 1/2%) of eligible construction cost. Costs
to be reimbursed for right-of-way shall be limited to the reasonable
market value of land or easements purchased by the applicant from
a third party to complete off-site improvements.
B.
No
reimbursement shall be allowed for:
C.
Reimbursement
for legal expenses shall be allowed only to the extent that such expenses
relate to the preparation and filing of an application for reimbursement,
and to working with the City through the Engineering Director's report
and formation public hearing stages of an application.
D.
A reimbursement
fee shall be computed by the City for all properties which have the
opportunity to utilize the improvements, including the property of
the applicant for formation of a reimbursement district. The applicant
for formation of the reimbursement district shall not be reimbursed
for the portion of the reimbursement fee computed for the property
of the applicant.
(Ord. 1868 § 1, 2000; Ord. 1994 § 1, 2009; Ord. 2002 § 1, 2009; Ord. 2017 § 1, 2010)
A.
The
cost to be reimbursed to the City shall be limited to the cost of
construction, engineering, documented City staff time attributed to
the reimbursement district project, land or easements dedicated to
the reimbursement district by the City where the City property is
served by the improvement, and costs associated with the acquisition
of off-site right-of-way.
C.
A reimbursement
fee shall be computed by the City for all intervening properties which
have the opportunity to utilize the public improvements, including
the property of the applicant for formation of a reimbursement district.
The applicant for formation of the reimbursement district shall not
be reimbursed for the portion of the reimbursement fee computed for
the property of the applicant, if any.
(Ord. 2017 § 1, 2010)
The City Council may grant an annual fee adjustment at the time
of application for formation of a reimbursement district as provided
in this section.
A.
An
annual fee adjustment shall be applied to the reimbursement fee beginning
on the first anniversary of the date of the reimbursement agreement
as a return on the investment for the person or the City. The annual
fee adjustment shall be fixed and computed against the reimbursement
fee as simple interest and will not compound. The amount of the fee
adjustment shall be determined at the time that a district is formed
and shall be the same each year.
B.
Each
fiscal year, the Finance Director shall recommend to the City Council
an interest rate to be used in determining the annual fee adjustment
for reimbursement districts. The City Council shall consider the recommendation
of the Finance Director and shall adopt an interest rate to be used
in determining the annual fee adjustment. The interest rate adopted
by the City Council shall be applied to all reimbursement districts
formed during the fiscal year, for which annual fee adjustments are
approved.
(Ord. 1868 § 1, 2000; Ord. 1994 § 1, 2009; Ord. 2002 § 1, 2009; Ord. 2017 § 1, 2010)
A.
Within a reasonable time after the Engineering Director has completed the report required in Section 13.30.030, the City Council shall hold an informational public hearing in which any person shall be given the opportunity to comment on the proposed reimbursement district. Because formation of the reimbursement district does not result in an assessment against property or lien against property, the public hearing is for informational purposes only and is not subject to mandatory termination because of remonstrances. The City Council has the sole discretion after the informational public hearing to decide whether a resolution approving and forming the reimbursement district shall be adopted.
B.
If
a reimbursement district is formed prior to construction of the improvement(s),
a second informational public hearing shall be held after the improvement
has been accepted by the City. At that time, the City Council may
modify the resolution to reflect the actual cost of the improvement(s).
(Ord. 1868 § 1, 2000; Ord. 1994 § 1, 2009; Ord. 2002 § 1, 2009; Ord. 2017 § 1, 2010)
Not less than 10 nor more than 30 days prior to any informational
public hearing held pursuant to this chapter, the applicant and all
owners of property within the proposed district shall be notified
of such hearing and the purpose thereof. Such notification shall be
accomplished by either regular mail or personal service. If notification
is accomplished by mail, notice shall be mailed not less than 13 days
prior to the hearing. Notice shall be deemed effective on the date
that the letter of notification is mailed. Failure of the applicant
or any affected property owner to be so notified shall not invalidate
or otherwise affect any reimbursement district resolution or the City
Council's action to approve the same.
(Ord. 1868 § 1, 2000; Ord. 1994 § 1, 2009; Ord. 2002 § 1, 2009; Ord. 2017 § 1, 2010)
A.
After the informational public hearing held pursuant to Section 13.30.050.A, the City Council shall approve, reject, or modify the recommendations contained in the Engineering Director's report. The City Council's decision shall be embodied in a resolution. If a reimbursement district is established, the resolution shall include the Engineering Director's report as approved or modified, and specify that payment of the reimbursement fee, as designated for each parcel, is a precondition of receiving City permits applicable to development of that parcel as provided for in Section 13.30.110.
B.
When
the applicant is other than the City, the resolution shall instruct
the City Manager to enter into an agreement with the applicant pertaining
to the reimbursement district improvements. If the agreement is entered
into prior to construction, the agreement shall be contingent upon
the improvements being accepted by the City. The agreement, at a minimum,
shall contain the following provisions:
1.
The
public improvement(s) shall meet all applicable City standards;
2.
The
total amount of potential reimbursement to the applicant;
3.
The
total amount of potential reimbursement shall not exceed the actual
cost of the public improvement(s);
4.
The
annual fee adjustment set by the City Council;
5.
The
applicant shall guarantee the public improvement(s) for a period of
12 months after the date of installation;
6.
The
applicant shall defend, indemnify, and hold harmless the City, its
officers, and employees, from any and all losses, claims, damage,
judgments, or other costs or expense, including attorney's fees, arising
as a result of or related to the City's establishment of the district
and shall waive all claims against the City related to the establishment
or administration of the district;
7.
The
applicant shall acknowledge that the City is not obligated to collect
the reimbursement fee from affected property owners;
8.
Other
provisions as the City Council determines necessary and proper to
carry out the provisions of this chapter.
C.
If
a reimbursement district is established by the City Council, the date
of the formation of the district shall be the date that the City Council
adopts the resolution forming the district.
(Ord. 1868 § 1, 2000; Ord. 1994 § 1, 2009; Ord. 2002 § 1, 2009; Ord. 2017 § 1, 2010)
The City shall notify all property owners within the district
and the applicant of the adoption of a reimbursement district resolution.
The notice shall include a copy of the resolution, the date it was
adopted, and a short explanation of when the property owner is obligated
to pay the reimbursement fee and the amount of the fee.
(Ord. 1868 § 1, 2000; Ord. 1994 § 1, 2009; Ord. 2002 § 1, 2009; Ord. 2017 § 1, 2010)
The City Recorder shall cause notice of the formation and nature
of the reimbursement district to be filed in the Office of the County
Recorder so as to provide notice to potential purchasers of property
within the district. The Recorder shall also cause notice to be filed
of a Council decision made pursuant to Section 13.30.110.F to extend
the period of time within which reimbursement payments are due. Said
recording shall not create a lien. Failure to make such recording
shall not affect the legality of the resolution or the obligation
to pay the reimbursement fee.
(Ord. 1868 § 1, 2000; Ord. 1994 § 1, 2009; Ord. 2002 § 1, 2009; Ord. 2017 § 1, 2010)
No legal action intended to contest the formation of the district
or the reimbursement fee, including the amount of the charge designated
for each parcel, shall be filed after 60 days following the adoption
of a resolution establishing a reimbursement district.
(Ord. 1868 § 1, 2000; Ord. 1994 § 1, 2009; Ord. 2002 § 1, 2009; Ord. 2017 § 1, 2010)
A.
The applicant for a permit related to property within any reimbursement district shall pay to the City, in addition to any other applicable fees and charges, the reimbursement fee established by the City Council, together with the annual fee adjustment, if within the time specified in the resolution establishing the district or any extension thereof established pursuant to subsection F of this section, the person applies for and receives approval from the City to connect to the public improvement that is the subject of the district or otherwise increase the use of the public improvement.
B.
"Increase
the use" means:
1.
For
Sanitary Sewer or Storm Sewer Lines
To make a physical change requiring a building or development
permit on the intervening property which increases the volume discharged
into the line;
2.
For
Water Lines
To make a physical change requiring a building or development
permit on the intervening property which increases the amount of water
used;
3.
For
Public Streets
To make a physical change requiring a building or development
permit on the intervening property which increases the trips on the
street or creates a new entrance onto the street.
C.
The
City's determination of who shall pay the reimbursement fee is final.
Neither the City nor any officer or employee of the City shall be
liable for payment of any reimbursement fee, annual fee adjustment,
or portion thereof as a result of this determination.
D.
A permit
applicant whose property is subject to payment of a reimbursement
fee receives a benefit from the construction of street improvements,
regardless of whether access is taken or provided directly onto such
street at any time. Nothing in this chapter is intended to modify
or limit the authority of the City to provide or require access management.
E.
No person shall be required to pay the reimbursement fee on an application or upon property for which the reimbursement fee has been previously paid, unless such payment was for a different type of improvement. No permit shall be issued for any of the activities listed in subsection A of this section unless the reimbursement fee, together with the annual fee adjustment, has been paid in full. Where approval is given as specified in subsection A of this section, but no permit is requested or issued, then the requirement to pay the reimbursement fee lapses if the underlying approval lapses.
F.
The
date when the right of reimbursement ends shall not extend beyond
10 years from the district formation date. Upon application for an
extension by the applicant, the City Council may, by resolution, authorize
10-year extensions of the right of reimbursement under the agreement.
G.
The
reimbursement fee is immediately due and payable to the City by intervening
property owners upon utilization of a public improvement. If connection
is made or construction commenced without required City permits, then
the reimbursement fee is immediately due and payable upon the earliest
date that any such permit was required. No City permit of any kind
for the intervening property shall be issued until the reimbursement
fee is paid in full.
H.
Whenever
the full reimbursement fee has not been paid and collected for any
reason after it is due, the City Manager shall report to the City
Council the amount of the uncollected reimbursement, the legal description
of the intervening property on which the reimbursement is due, the
date upon which the reimbursement was due and the intervening property
owner's name or names. The City Council shall then, by motion, set
a public hearing date and direct the City Manager to give notice of
that hearing to each of the identified intervening property owners,
together with a copy of the City Manager's report concerning the unpaid
reimbursement fee. Such notice may be either by certified mail or
personal service. At the public hearing, the City Council may accept,
reject, or modify the City Manager's report. If the City Council accepts
or modifies the City Manager's report concerning the unpaid reimbursement
fee, such notice may be either by certified mail or personal service.
At the public hearing, the City Council may accept, reject, or modify
the City Manager's report. If the City Council accepts or modifies
the City Manager's report and determines that the reimbursement fee
is due but has not been paid for whatever reason, the City may take
any action including all legal or equitable means necessary to collect
the unpaid amount. An unpaid reimbursement fee shall prohibit any
issuance of permits by the City for the intervening property.
(Ord. 1868 § 1, 2000; Ord. 1994 § 1, 2009; Ord. 2002 § 1, 2009; Ord. 2017 § 1, 2010)
Public improvements installed pursuant to reimbursement district
agreements shall become public property.
(Ord. 1868 § 1, 2000; Ord. 1994 § 1, 2009; Ord. 2002 § 1, 2009; Ord. 2017 § 1, 2010)
More than one public improvement may be the subject of a reimbursement
district.
(Ord. 1868 § 1, 2000; Ord. 1994 § 1, 2009; Ord. 2002 § 1, 2009; Ord. 2017 § 1, 2010)
A.
Applicants
shall receive all reimbursement collected by the City for their public
improvements. Such reimbursement shall be delivered to the applicant
for as long as the reimbursement district agreement is in effect.
Such payments shall be made by the City within 90 days of receipt
of the reimbursements.
B.
The
reimbursement fee is in lieu of a local improvement district charge
for the improvements installed pursuant to the reimbursement district
agreement. The reimbursement fee is not intended to replace or limit
any other fee or charge collected by the City.
(Ord. 1868 § 1, 2000; Ord. 1896 § 1, 2002; Ord. 1994 § 1, 2009; Ord. 2002 § 1, 2009; Ord. 2017 § 1, 2010)
