For the purposes of sections 3.400 to 3.420 the following definitions apply:
Capital Improvement.
Facilities or assets used for any of the following infrastructure types:
(a) 
Water supply, treatment and distribution;
(b) 
Sanitary sewers, including, but not limited to, collection, transmission, treatment, and disposal;
(c) 
Storm sewers, including, but not limited to, piped and unpiped drainage, treatment, disposal, and flood control systems;
(d) 
Transportation, including, but not limited to, streets, traffic signals, sidewalks, bike paths, street lights, street trees, public transportation, vehicle parking, and bridges; or
(e) 
Parks and recreation, including, but not limited to, mini-neighborhood parks, neighborhood parks, community parks, metropolitan parks, and other recreational facilities.
Contiguous.
A public way which abuts.
Development.
Undertaking a building or mining operation, or making a change in the use or appearance of a structure or land, which increases the usage of any capital improvements or which creates the need for additional capital improvements.
Improvement Fee.
A fee for public costs associated with capital improvements to be constructed after the date of December 4, 2000. Notwithstanding anything in this code to the contrary, it is an incurred charge or cost based upon the use of or the availability for use of the systems and capital improvements required to provide services and facilities necessary to meet the routine obligations of the use and ownership of property, and to provide for the public health and safety upon development.
Infrastructure Facilities Plan.
A plan adopted by the council describing the future needs of the city for each type of capital improvement identified herein.
Most Intense Use.
The existing or previously existing use which, based upon the current evaluation by the city, is determined to have the largest impact on an infrastructure system. Uses on each infrastructure system shall be evaluated and determined separately.
Qualified Public Improvements.
A capital improvement that is:
(a) 
Required as a condition of development approval;
(b) 
Identified in the plan adopted pursuant to subsection 3.410(2); and
(c) 
(1) 
Not located on or contiguous to a parcel of land that is the subject of the development approval,
(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.
A fee for costs associated with capital improvements constructed or under construction on December 4, 2000. Notwithstanding anything in this code to the contrary, it is an incurred charge or cost based upon the use of or the availability for use of the systems and capital improvements required to provide services and facilities necessary to meet the routine obligations of the use and ownership of property, and to provide for the public health and safety upon development.
Systems Development Charge.
A reimbursement fee, an improvement fee or a combination thereof assessed or collected at any of the times specified in section 3.412. It may also include that portion of a sanitary sewer or storm sewer system connection charge that is greater than the amount necessary to reimburse the city for its average cost of inspecting and installing connections with sanitary sewer facilities and storm sewer facilities.
(Section 3.400 amended by Ordinance No. 5969, enacted December 4, 2000; further amended by Ordinance No. 6264, enacted February 7, 2011)
The purpose of the system development charge is to impose an equitable share, as defined in the rate-setting methodology of the public cost of capital improvements upon the activity of development that create the need for or increase the demands on such capital improvements.
The system development charge imposed by sections 3.400 through 3.420 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. It is an incurred charge or cost. See also section 3.406.
(1) 
Unless otherwise exempted by the provisions of this code or other local or state law, effective July 1, 1991, a system development charge is hereby imposed upon all new development activity within the city, and all new development activity outside the city but within the city’s urban growth boundary, with the exception that the sanitary sewer system development charge shall not be imposed outside the city limits until such time as the property is to be connected to the sanitary sewer system. The SDC is imposed on the activity of developing property which increases the demand for capital improvements. It is not a tax on the land or the ownership of land. The developer has the discretion of setting the level of development and therefore the extent of the SDC to be paid.
(2) 
System development charges for each type of capital improvements may be created and shall be established as provided in sections 3.400 to 3.420.
(Section 3.406 amended by Ordinance No. 5969, enacted December 4, 2000)
(1) 
The methodology used to establish a reimbursement fee shall consider the cost of then-existing facilities, prior contributions by then-existing users, the value of unused capacity, rate-making principles employed to finance publicly owned capital improvements, and other relevant factors identified by the city manager. 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.
(2) 
The methodology used to establish the improvement fee shall consider the cost of projected capital improvements needed to increase the capacity of the systems to which the fee is related and shall provide for a credit against the improvement fee for the construction of any qualified public improvement.
(3) 
The methodology may also provide for a credit as authorized in section 3.416.
(4) 
Except when authorized in the methodology adopted under subsection (3), 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.
(5) 
The methodologies used by the city manager for establishing the system development charge shall be established by resolution of the city council and may be adopted and amended concurrent with the establishment or revision of the system development charge. In setting such fees, the city manager shall consider the criteria in this section.
(1) 
The revenues received from the system development charges shall be budgeted and expended as provided by state law.
(2) 
The capital improvement plan required by state law as the basis for expending system development charge revenues for capital improvements shall be the Springfield Capital Improvements Plan (CIP), the Springfield System Development Charge Project List, and the Metropolitan Area general Plan (Plan) as adopted by the council, or the capital improvement plan adopted by another governmental body which was used by the city council in establishing the methodology for the system development charge provided such capital improvement plan is consistent with the CIP and the Plan.
(1) 
The system development charge is payable at the time of issuance of:
(a) 
A building permit;
(b) 
Approval of a development application for development not requiring the issuance of a building permit; or
(c) 
A permit to connect to the water, sanitary sewer, or storm sewer systems.
(2) 
If development is commenced or connection is made to the water system, sanitary sewer system, or storm sewer system without an appropriate permit, approval, or deferred payment agreement, the system development charge is immediately payable upon the earliest date that a permit was required.
(3) 
The city manager shall collect the system development charges from the person responsible for or receiving the benefit of the development. The city manager shall not issue any permit or allow connection described in subsection (1) until the charge has been paid in full or until provision for payment satisfactory to the city has been made.
(4) 
The purchaser of a home or multifamily dwelling may elect to finance system development charges over a period of 10 years, billed in equal semiannual installments, plus interest and fees, with the following conditions:
(a) 
The property owner shall sign a promissory note prior to being issued a permit;
(b) 
The obligation to pay the unpaid systems development charges, and any interest or fee thereon, shall be secured by a lien on the property upon which development is to occur. Such liens shall arise upon issuance of the permit requiring the system development charges and shall be entered on the city’s lien docket and the debt secured thereby may be collected in the same manner as allowed by law for street improvement assessment liens. Such liens shall be superior to all other liens, and encumbrances whatsoever except as may be otherwise provided by law;
(c) 
The interest rate, at the time of signing the promissory note, shall be calculated at the rate of the previous month’s average interest earned on the city of Springfield’s investments, plus two percent;
(d) 
If, at some future time, the system development charge account balances are cashed out to a bond, then the interest rate will change to the rate paid on that bond, plus one and one-half percent;
(e) 
There will be a one-time fee of $50.00 added to the system development charges to cover administrative expenses of financing the charges;
(f) 
If any system development charge installment has not been paid when due and remains unpaid at the time the next installment becomes due, then a late charge penalty of 10 percent of the delinquent installment shall be added to the assessment;
(g) 
The city may proceed to foreclose as delinquent any such lien after the same shall have been entered in the lien docket, as provided for foreclosures of liens in ORS 223.505 or ORS 223.650;
(h) 
The property owner shall waive any and all irregularities or defects, jurisdictional or otherwise, regarding the calculation, imposition, lien, and collection of the systems development charges;
(i) 
At the discretion of the city manager, financing may be secured by bond, deposits, or letter of credit in lieu of full payment or promissory note.
(Section 3.412 amended by Ordinance No. 5969, enacted December 4, 2000)
The following are exempt from the system development charge imposed in section 3.406:
(1) 
Except for the system development charge attributable to the sanitary sewer system and the storm sewer system, development which existed on July 1, 1991, or for which a building permit was applied for or issued before July 1, 1991;
(2) 
Alteration, addition, replacement or change in existing use that does not increase the use of capital improvements.
(Section 3.414 amended by Ordinance No. 5898, enacted November 2, 1998)
(1) 
When development occurs that must pay a systems development charge under section 3.406 of this chapter, the systems development charge for the most intense use documented to have existed since the adoption of the then current infrastructure facilities plan, if any, shall be calculated using the current fee. If such amount is less than the systems development charge for the proposed use, the difference between such calculation and the systems development charge for the proposed use shall be the systems development charge required under section 3.406. If the change in use results in the systems development charge for the proposed use being less than the calculation, no systems development charge shall be required; however, no refund or credit shall be given.
(2) 
A credit shall be given based on the actual dollar cost of a qualified public improvement associated with a development, as determined by the city engineer based on a review of documentation establishing the reasonable and necessary cost of the qualified public improvement. If a qualified public improvement is wholly not located on or contiguous to the parcel of land that is subject to development approval, the amount of the credit shall be the cost of the qualified public improvement. If a qualified public improvement is located on or wholly contiguous to the parcel of land, the credit shall be the cost of that portion of such improvement that exceeds the minimum standard facility size for capacity needed to serve the particular development project or property. If a qualified public improvement is located partially on and partially off the parcel of land that is the subject of the approval, the credit shall be the sum of the cost of the portion of the improvement not located on or wholly contiguous to the parcel of land and the cost of that portion of such improvement located on or wholly contiguous to the parcel of land that exceeds the minimum standard facility size or capacity needed to serve the particular development project or property. The credit provided for by this subsection shall be only for the improvement fee charged for the type of improvement being constructed.
(3) 
Credits shall not be transferable for one type of capital improvement to another.
(4) 
Credits shall be used only against an applicable improvement fee and shall not be redeemable in any other manner.
(Section 3.416 amended by Ordinance No. 5898, enacted November 2, 1998; further amended by Ordinance No. 6141, enacted September 19, 2005; further amended by Ordinance No. 6264, enacted February 7, 2011)
(1) 
In the event a credit authorized under section 3.416(2) is greater than the amount of the charge due, the city shall upon request of the developer, issue to the developer a certificate, documenting the amount of the credit in excess of the charge.
(2) 
Such certificate may be redeemed by the developer and applied to future charges for that type of capital improvement, provided such redemption shall occur not later than 10 years after the date of issuance of the certificate.
(3) 
Any developer issued a certificate shall pay to the city, at the time of issuance, and annually thereafter until such certificate is redeemed, an administrative fee fixed by resolution of the council. Failure to timely pay such annual fee shall not invalidate a certificate, but no certificate shall be transferred or redeemed until all annual fees shall have been paid.
(4) 
The certificate may be redeemed in whole or in parts. If the certificate is redeemed in part, the city shall, upon delivery of the certificate, issue a new certificate documenting the remaining credit available. Such reissued certificate shall expire 10 years after the date of the original certificate, and shall be considered a new certificate for purposes of the administrative fee.
(5) 
Such certificate may be transferred, in whole or in part, to another person, provided, however, that no such transfer shall be effective until the holder of the certificate shall surrender the same and a new certificate or certificates issued.
(Section 3.417 added by Ordinance No. 6264, enacted February 7, 2011)
(1) 
A person challenging the rate setting methodology or a person challenging the propriety of an expenditure of system development charge revenues may appeal the methodology or the expenditure by filing a written request with the city manager’s office for consideration by the city council. A person aggrieved by any other decision made under sections 3.400 through 3.416 may file an appeal by filing a written request with the city manager’s office for consideration by the city manager. All appeals shall describe with particularity the methodology, decision, or expenditure from which the person appeals and shall comply with subsection (5).
(2) 
An appeal of an expenditure must be filed within two years of the date of the improper expenditure as alleged by the appellant. An appeal of rate setting methodology must be filed within 10 days of the adoption or modification of such methodology by the city council. Appeals to the city of any other decision must be filed within 10 working days of the date of the decision.
(3) 
The appeal shall state:
(a) 
The name and address of the appellant;
(b) 
The nature of the determination being appealed;
(c) 
The reason the determination is allegedly incorrect; and
(d) 
What the correct determination of the appeal should be as alleged by the appellant.
(4) 
An appellant who fails to file such a statement within the time permitted waives the objections, and the appeal shall be dismissed.
(5) 
Unless the appellant and the city agree to a longer period, an appeal shall be heard by the city manager or council within 20 working days of the receipt of the notice of intent to appeal. At least 10 working days prior to the hearing, the city shall mail notice of the time and location thereof to the appellant.
(6) 
The city manager or council shall hear and determine the appeal on the basis of the appellant’s written statement and any additional evidence deemed appropriate. At the hearing the appellant may present testimony and oral argument personally or by counsel. The rules of evidence as used by courts of law do not apply.
(7) 
The appellant shall carry the burden of proving that the determination being appealed is incorrect and that the determination alleged by the appellant is correct.
(8) 
On appeals heard by the city manager, the city manager shall issue a written decision within 10 working days after the hearing date and the decision of the city manager shall be appealable to the city council.
(9) 
When the decision of the city manager is appealed to the council, the city manager shall prepare a written report and recommendation and submit it to the council within 10 working days of the hearing date for presentation to the council at its next regular meeting. Further testimony regarding the appeal may be received by the council only with the consent of two-thirds of the members of the council. By council resolution the report and recommendations of the city manager shall be approved, modified or rejected.
(10) 
Notwithstanding the provisions of subsection (2), any legal action contesting the methodology adopted or modified by the city council shall be filed within 60 calendar days of the council’s decision.
(Section 3.418 amended by Ordinance No. 5969, enacted December 4, 2000)
No person may connect to the sanitary sewer or storm sewer system of the city unless the appropriate system development charge has been paid or the payment method has been applied for and approved.