The purpose of the system development charge is to impose an equitable share of the public cost of capital improvements for water supply, treatment and distribution; sanitary sewer collection, transmission, treatment and disposal; drainage and flood control; transportation; and parks and recreation, upon those developments that create the need for or increase the demand on capital improvements to be constructed, already constructed or under construction.
(Ord. 1165-A § 1, 2012)
The system development charge imposed by this chapter is separate from and in addition to any applicable tax, assessment, charge, fee in lieu of assessment, or fee otherwise provided by law or imposed as a condition of development. A system development charge is to be considered in the nature of a charge for service rendered, a service hookup charge or a charge for services to be rendered.
(Ord. 1165-A § 2, 2012)
For purposes of this chapter, the following definitions apply:
"Capital improvements"
mean facilities or assets used for:
1. 
Water supply, treatment and distribution;
2. 
Sanitary sewer collection, transmission, treatment and disposal;
3. 
Drainage and flood control;
4. 
Transportation, including, but not limited to, streets, sidewalks, bike paths, street lights, street trees, mass public transportation, vehicle parking and bridges; or
5. 
Parks and recreation, including, but not limited to, mini-neighborhood parks, neighborhood parks, community parks and other recreational facilities.
"Development"
means constructing a building or a structure, conducting a mining operation, making a physical change in the use or appearance of a structure or land, dividing land into two or more parcels (including partitions and subdivisions), and 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 3.36.040 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.
"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 that includes the yards and other open spaces required under the zoning, subdivision or other development ordinances.
"Qualified public improvements"
means a capital improvement that is required as a condition of development approval, identified in the plan adopted pursuant to Section 3.36.080 of this chapter, and either:
1. 
Not located on or contiguous to property that is the subject of 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 3.36.040 and for which the City Commission determines capacity to exist.
"System development charge"
means a reimbursement fee, an improvement fee or a combination thereof assessed or collected at any of the times specified in Section 3.36.090. It shall also include that portion of a water or sanitary sewer system connection charge that is greater than the amount necessary to reimburse the City for its average cost of inspection and installing connections with water and sanitary 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. 1165-A § 3, 2012)
A. 
System development charges for each type of capital improvements may be proposed by the City Manager and shall be established and may be revised by resolution of the City Commission.
B. 
Unless otherwise exempted by the provisions of this chapter or other local or State law, a system development charge is hereby imposed upon all development within the City, and upon all development outside the boundary of the City that connects to or otherwise uses the water, sanitary sewer, drainage and flood control, transportation or parks and recreation facilities of the City.
(Ord. 1165-A § 4, 2012)
A. 
The methodology used to establish the reimbursement fee shall, where applicable, be based on ratemaking principles employed to finance publicly owned capital improvements, prior contributions by then-existing users, gifts or grants from Federal or State government or private persons, the value of unused capacity available to future system users or the cost of the existing facilities, and other relevant factors identified by the City Commission. The methodology shall promote the objective that future systems users shall contribute no more than an equitable share of the cost of then-existing facilities and shall be available for public inspection.
B. 
The methodology used to establish the improvement fee shall, where applicable, demonstrate consideration of the projected cost of capital improvements identified in the plan and list adopted pursuant to Section 3.36.080 that are needed to increase the capacity of the systems to which the fee is related and for which the need for increased system capacity will be required to serve the demands placed on the system by future users. Improvement fees shall be calculated to obtain the cost of capital improvements for the projected need for available system capacity for future users.
C. 
The methodology shall also provide for a credit as authorized in Section 3.36.110.
D. 
The methodology shall also provide for periodic indexing of system development charges for inflation, as long as the index used is:
1. 
A relevant measurement of the average change in prices or costs over an identified time period for materials, labor, real property or a combination of the three;
2. 
Published by a recognized organization or agency that produces the index or data source for reasons that are independent of the system development charge methodology; and
3. 
Incorporated as part of the established methodology or identified and adopted in a separate ordinance, resolution or order.
E. 
Except when authorized in methodology adopted under subsection C of this section, the fees required by this Code which are 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 are separate from and in addition to the system development charge and shall not be used as a credit against such charge.
F. 
The methodology used to establish the improvement fee or the reimbursement fee, or both, shall be contained in a resolution adopted by the City Commission.
G. 
After the effective date of the ordinance codified in this chapter, the City shall maintain a list of persons who have made a written request for notification prior to adoption or amendment of a methodology for any system development charge. Written notice shall be mailed to persons on the list at least 90 days prior to the first hearing to establish or modify a system development charge, and the methodology supporting the adoption or amendment shall be available at least 60 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 City's subsequent action. The City may periodically delete names from the list, but at least 30 days prior to removing a name from the list the City must notify the person 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. 1165-A § 5, 2012)
A. 
Reimbursement fees shall be applied only to capital improvements (and not operating expenses) associated with the systems for which the fees are assessed, including expenditures relating to repayment of indebtedness.
B. 
Improvement fees shall be spent only on capacity increasing capital improvements, including expenditures relating to repayment of debt for the improvements. An increase in system capacity may be established if a capital improvement increases the level of performance or service provided by existing facilities or provides new facilities. The portion of the improvements funded by improvement fees must be related to the need for increased capacity to provide service for future users. A capital improvement being funded wholly or in part from revenues derived from the improvement fee shall be included in the plan adopted by the City pursuant to Section 3.36.080.
C. 
Notwithstanding subsections A and B of this section, system development charge revenues may be expended on the direct costs of complying with the provisions of this chapter, including the costs of developing system development charge methodologies and providing an annual accounting of system development charge expenditures.
(Ord. 1165-A § 6, 2012)
System development charges shall not be expended for:
A. 
Costs associated with the construction of administrative office facilities that are more than an incidental part of other capital improvements; or
B. 
Costs of the operation or routine maintenance of capital improvements.
(Ord. 1165-A § 7, 2012)
Prior to the establishment of a system development charge, the City Commission shall adopt a plan that:
A. 
Lists the capital improvements that the City Commission intends to fund in whole or in part with improvement fee revenues;
B. 
Lists the estimated cost, and percentage of costs eligible to be funded with revenues from the improvement fee for each improvement; and
C. 
Describes the process for modifying the plan. If a system development charge will be increased by a proposed modification of the list to include a capacity increasing capital improvement, 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 Section 3.36.050. The City shall hold a public hearing if a written request for a hearing on the proposed modification is received within seven days of the date the proposed modification is scheduled for adoption. A change in the amount of a reimbursement fee or an improvement fee is not a modification of the system development charge methodology if the change in amount is based on a change in cost of materials, labor or real property applied to projects or project capacity as set forth on the list adopted pursuant to this section or the periodic application of the Construction Cost Index published by the Engineering News Record and is incorporated as part of the established methodology or identified and adopted in a separate ordinance, resolution, or order.
(Ord. 1165-A § 8, 2012)
A. 
The system development charge is payable upon issuance of:
1. 
A building or construction permit of any kind, including any permit or permits issued in connection with the set-up or installation of any trailer, mobile or manufactured home;
2. 
A development permit;
3. 
A development permit for development not requiring the issuance of a building permit;
4. 
A permit to connect to the water system;
5. 
A permit to connect to the sanitary sewer system;
6. 
A permit to connect to the drainage and flood control system; or
7. 
A permit to connect to the transportation system.
B. 
If development is commenced or connection is made to the water, sanitary sewer, drainage and flood control or transportation systems without an appropriate permit, the system development charge is immediately payable upon the earliest date that a permit was required.
C. 
The City Manager or designee shall collect the applicable system development charge from the person responsible for or receiving the benefit of the development in accordance with subsection A of this section. The City Manager or designee shall not issue such permit or allow such connection until the charge has been paid in full, or unless an exemption is granted pursuant to Section 3.36.100, or unless arrangements for payment of the charge, under such terms as the City Manager deems reasonable, have been made, pursuant to subsection D.
D. 
The obligation to pay the unpaid system development charge and interest thereon shall be secured by property, bond, deposits, letter of credit or other security acceptable to the City Manager. The net value of security accepted, excluding liens and encumbrances thereon, must be at least double the amount of the system development charge secured thereby.
E. 
If the system development charge is not paid upon issuance of the applicable permit, and the applicant chooses to pay the charge in installments and secure the obligation with security acceptable under subsection D, then there shall be added to the amount owing the following:
1. 
Interest on the obligation at the rate established by the City Commission for all unpaid assessments;
2. 
All costs associated with processing the particular form of security, such as title insurance, escrow fees, recording costs, collection escrow costs and/or any other expense associated with the City accepting such security;
3. 
Any and all costs, as determined by the City Manager or designee, incurred in establishing payment schedules and administering the collections process;
4. 
When the charge is secured by bond pursuant to ORS 223.205 to 223.295, any and all costs associated with administering the bond assessment program and issuing the bonds, as determined by the City Manager or designee;
5. 
The intent of this subsection E is to recognize that the payment of a system development charge by installments increases the administrative expense to the City. It is the intent of this subsection to shift that added expense to the applicant, so that the City will not lose system development charge revenue by accepting installment payments on such charges. Subject to the provisions of this subsection E, all costs added to the system development charge will be determined by the City Manager.
F. 
No person may connect to the water or sewer systems of the City unless the appropriate system development charge has been paid or the installment payment method has been applied for and approved.
(Ord. 1165-A § 9, 2012)
A. 
The following are exempt from system development charges:
1. 
Structures and uses established and legally existing on or before the effective date of the ordinance codified in this chapter are exempt from a system development charge, except water and sewer charges, to the extent of the structure or use then existing and to the extent of the parcel of land as it is constituted on that date. Structures and uses affected by this subsection shall pay the water or sewer charges pursuant to the terms of this chapter upon the receipt of a permit to connect to the water or sewer system;
2. 
Additions to single-family dwellings that do not constitute the addition of a dwelling unit. Dwelling unit means any building or portion thereof which contains living facilities, including provisions for sleeping, eating, cooking and sanitation;
3. 
An alteration, addition, replacement or change in use that does not increase the parcel's or structure's use of the system to which the system development charge applies.
B. 
Any enlargement or change and any new connection or utilization of the system to which a system development charge applies shall not be exempt.
(Ord. 1165-A § 10, 2012)
A. 
A system development charge shall be imposed when a change of use of a parcel or structure occurs, but credit shall be given in an amount equal to the existing system development charge as applied to the pre-existing use. The credit so computed shall not exceed the calculated system development charge. No refund shall be made on account of such credit.
B. 
An improvement fee credit shall be given for the cost of a qualified public improvement associated with a development, subject to the following:
1. 
Such credit shall be only for the improvement fee charged for the type of improvement being constructed, and credit for qualified public improvements under Section 3.36.030 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 property or project. The applicant shall have the burden of demonstrating that a particular improvement qualifies as a Section 3.36.030 qualified public improvement.
2. 
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, if any.
3. 
Credits shall be used within 10 years from the date the credit is given.
4. 
Credit shall not be transferrable from one development to another or from one type of capital improvement to another.
(Ord. 1165-A § 11, 2012)
A. 
All funds derived from a particular type of system development charge are to be segregated by accounting practices from all other funds of the City. That portion of the system development charge calculated and collected on account of a specific facility system shall be used for no purpose other than those set forth in Section 3.36.060.
B. 
The City Manager or designee shall provide the City Commission with an annual accounting, based on the City's fiscal year, for system development charges showing the total amount of system development charge revenues collected for each type of facility and the projects funded, either in whole or in part, from each account.
(Ord. 1165-A § 12, 2012)
A. 
A person aggrieved by a decision required or permitted to be made by the City Manager or designee under this chapter or a person challenging the propriety of an expenditure of system development charge revenues may appeal the decision or the expenditure to the City Commission by filing a written request with the City Manager describing with particularity the decision of the City Manager or designee or the expenditure from which the person appeals.
B. 
An appeal of an expenditure must be filed within two years of the date of the alleged improper expenditure. Appeals of any other decision required or permitted to be made by the City Manager must be filed within 10 days of the date of the decision.
C. 
The City Commission shall determine whether the City Manager's decision or the expenditure is in accordance with this chapter and the provisions of ORS 223.297 to 223.314 and may affirm, modify or over-rule the decision. If the City Commission determines that there has been an improper expenditure of system development charge revenues, the City Commission 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.
D. 
A legal action challenging the methodology adopted by the City Commission pursuant to Section 3.36.050 shall not be filed later than 60 days after adoption, and shall be contested according to the procedure set forth in ORS 34.010 to 34.100, and not otherwise.
(Ord. 1165-A § 13, 2012)
The invalidity of a section or subsection of this chapter shall not affect the validity of the remaining sections or subsections.
(Ord. 1165-A § 14, 2012)