(1)
The
city of Springfield requires developers to construct and install infrastructure
improvements including electricity; water supply, distribution and
treatment; sanitary sewer; storm sewer; transportation improvements;
and other public infrastructure appropriate to serve proposed developments.
These improvements are constructed in accordance with city design
and construction standards and later dedicated to the city as “public
improvements.” Often these street, water, sewer, and storm sewer
improvements, particularly those constructed off-site, not only fulfill
a developers obligation to provide needed infrastructure proportional
to their impact, but also can and will benefit other property owners
when they subsequently develop their property. Therefore, these improvements
represent a benefit to those subsequent property owners.
(2)
The
purpose of this chapter is to provide a mechanism where owners of
property which benefits from the construction of public improvements
by another property owner will share in the cost of those improvements
through payment of a reimbursement charge at the time the benefited
property is developed and/or the improvements are utilized.
(3)
Owners
of property which would be subject to a reimbursement charge will
be provided an opportunity to review and comment on pertinent information
regarding the proposed reimbursement charges and, upon receipt, will
forward the funds to the person who constructed or funded the improvements.
(4)
The
reimbursement charges established under this chapter are intended
to become due and payable upon development of benefited property.
Such charges are fees for service because they contemplate a development’s
receipt of essential municipal services based upon the nature of that
development. The timing and extent of any development are within the
control and discretion of the property owner. The reimbursement charges
imposed under this chapter are not intended to be a tax on property
or on a property owner as a direct consequence of ownership of property
within the meaning of Article XI, Section 11b, of the Oregon Constitution
or the legislation implementing that section.
(5)
The
reimbursement charges established in this chapter are in addition
to, and not in lieu of, other charges which may be required for development.
(Section 3.600 added by Ordinance 6230, enacted October 6, 2008)
A person, as defined in this section, who is required or
chooses to finance some or all of the cost of a street, water or 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.
The city of Springfield.
The person holding the position of city public works director
or any officer or employee designated by that person to perform duties
stated within this section.
The planning, design and construction of, facilities or structures
dedicated to public use including, but not limited to:
Transportation Improvement.
An improvement designed and constructed in accordance with
standards adopted by the city through ordinance or policy, or required
through approval of any application for a land use decision, and including,
but not limited to, streets, bicycle or multi-use paths (either on-
or off-street), storm drains, curbs, gutters, sidewalks, traffic control
devices, street trees, lights, intersections, signals, amenities required
by city construction and design standards, and signs and public right-of-way.
Water Improvement.
An improvement designed and constructed in accordance with
standards adopted by the city acting through the council or the Springfield
utility board, through ordinance or policy, or required through approval
of an application for a land use decision, and including, but not
limited to, a well, water distribution or treatment facility, extending
a water line to property, other than property owned by the applicant,
so that water service can be provided for such other property without
further extension of the line.
Sewer Improvement.
An improvement designed and constructed in accordance with
standards adopted by the city through ordinance or policy, or required
through approval of an application for a land use decision, and including,
but not limited to, pump stations, trunk sewers, lateral sewers, and
extending a sewer line to property so that sewer service can be provided
for such other property without further extension of the line.
Stormwater Improvement.
A facility designed and constructed in accordance with standards
adopted by the city through ordinance or policy, or required through
approval of an application for a land use decision, which conveys
or treats stormwater and is determined by the public works director
to be necessary or convenient in the management of storm runoff by
the city consistent with the requirements of the National Pollution
Discharge Elimination System permit held by the city and any other
state or federal stormwater and water quality standards applicable
to the city.
Electrical Improvement.
An improvement designed and constructed in accordance with
standards adopted by the city, acting through the Springfield utility
board through ordinance or policy, or required through approval of
an application for a land use decision.
Other Infrastructure.
An improvement designed and constructed in accordance with
standards adopted by the city through ordinance or policy, or required
through approval of an application for a land use decision, and including,
but not limited to, other capital construction determined by the council
to be necessary and convenient to the provision of services to the
citizens of the city.
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.
The area which is determined by the city council to derive
a benefit from the construction of infrastructure improvements, constructed
or financed in whole or in part by the applicant and includes property
which as the opportunity to benefit from such an improvement.
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 consists
of the cost of reimbursing the applicant for constructing or financing
a portion of the infrastructure improvement which is available to
provide service to property other than property owned by the person.
(Section 3.605 added by Ordinance 6230, enacted October 6, 2008)
(1)
A person
who is required to or chooses to finance some or all of the cost of
an infrastructure improvement which will be available to provide service
to property, other than property owned by the person, may, by written
application filed with the city public works director, request that
the city establish a reimbursement district. The infrastructure improvements
must include improvements in addition to or in a size greater than
those which would otherwise ordinarily be required in connection with
the application for permit approval and must be available to provide
service to property other than property owned by the applicant. Examples
include, but shall not be limited to, intersections, full street improvements
instead of half street improvements, traffic signals, off-site sidewalks,
connection of street sections for continuity, extension of water lines
and extension of 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 section.
(2)
The
application shall include the following:
(a)
A
description of the location, type, size and cost of the public improvement
to be eligible for reimbursement;
(b)
A
map showing the properties to be included in the proposed reimbursement
district; the zoning district for the properties;
(c)
A
proposed methodology for the calculation of the special benefit to
be received by properties benefited by the improvement and the data
necessary for calculating the apportionment of the cost to each benefitted
property; and the property or properties owned by the applicant;
(d)
The
estimated date of completion of the public improvements and the estimated
cost of the improvements as evidenced by bids, projections of cost
of labor and materials or other evidence satisfactory to the city
public works director.
(3)
Application
for formation of a reimbursement district may be made at any time,
but shall be made no later than any notice to proceed on infrastructure
improvements to be subject to the district. However, the city public
works director may waive this requirement upon the showing by the
applicant of good cause for the delay, that the delay was not created
by the applicant, and that the delay was unavoidable due to unanticipated
or unforeseen circumstances.
(Section 3.610 added by Ordinance 6230, enacted October 6, 2008)
(1)
The
city public works director shall review the application for the establishment
of a reimbursement district and evaluate whether a district should
be established. The public works director may request the submittal
of other relevant information from the applicant in order to assist
in the evaluation. The public works 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 the infrastructure improvement, thereby making service available
to property, other than property owned by the applicant;
(b)
The
area to be included in the reimbursement district;
(c)
The
actual or estimated cost of the infrastructure improvements within
the area of the proposed reimbursement district and the portion of
the cost for which the applicant should be reimbursed;
(d)
The
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,
rate-making principles employed to finance public improvements and
other factors deemed relevant by the city public works director. Prior
contributions by property owners will only be considered if the contribution
was for the same type of improvements and at the same location (example:
a sewer-related contribution in the same location as a sewer improvement
would be considered, a water-related contribution in the same location
as a sewer improvement would not be considered).
(2)
The
city may charge a fee for administration of the agreement. The administration
fee shall be fixed by the council in the resolution approving and
forming the reimbursement district. The administration fee is due
and payable to the city at the time the agreement is signed (or, if
specified as a percentage, shall be paid quarterly based upon the
reimbursement fees paid during that quarter).
(3)
The
proposed period of time that the right to reimbursement exists shall
be specified in the resolution and shall not exceed 20 years.
(Section 3.615 added by Ordinance 6230, enacted October 6, 2008)
The cost to be reimbursed to the applicant shall be limited
to the cost of construction including the acquisition and condemnation
costs acquiring additional right-of-way, the cost of permits, engineering
and legal expenses, less that amount, if any, that represents the
proportional obligation of the applicant for the property of the applicant.
(Section 3.620 added by Ordinance 6230, enacted October 6, 2008)
After the public works director shall completed a draft report
required above, the public works director shall convene a meeting
with all property owners within the district and the applicant. At
the meeting the applicant shall describe the project and methodology
for allocation costs. All property owners will then be given an opportunity
for comment. In the report submitted to the council, the city manager
has the discretion to recommend the district be formed as proposed,
that the proposal be modified, or that the application be denied.
(Section 3.625 added by Ordinance 6230, enacted October 6, 2008)
(1)
Within a reasonable time after the report in section 3.615, and meeting required in section 3.625, 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 any proposed district is not subject to mandatory termination because of remonstrances. The city council has the sole discretion after the public hearing to decide whether a resolution approving and forming the reimbursement district shall be adopted.
(2)
If a
reimbursement district is formed prior to construction of the improvement(s),
a second 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).
(Section 3.630 added by Ordinance 6230, enacted October 6, 2008)
Not less than 10 nor more than 30 days prior to any 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.
(Section 3.636 added by Ordinance 6230, enacted October 6, 2008)
(1)
After the public hearing held pursuant to section 3.630, the city council shall approve, reject or modify the recommendations contained in the city public works director’s report. The city council’s decision shall be embodied in a resolution. If a reimbursement district is established, the resolution shall be accompanied by the city public works 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 described in section 3.660.
(2)
When
the applicant is other than the city, the resolution shall instruct
the public works director 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. [See section 3.420(d)(d).]
The agreement, at a minimum, shall contain the following provisions:
(a)
The
public improvement(s) shall meet all applicable city standards or
comply with specific requirements imposed by the public works director,
planning commission, or city council.
(b)
The
total amount of potential reimbursement to the applicant and the basis
upon which such reimbursement shall be calculated.
(d)
The
applicant shall defend, indemnify and hold harmless the city from
any and all losses, claims, damage, judgments or other costs of expense
arising as a result of or related to the city’s establishment
of the district.
(e)
The city shall collect the reimbursement fee when required under Section 3.660. The applicant shall defend, indemnify and hold harmless the city of all costs involved in the collection of these funds including but not limited to any attorney’s fees for any proceedings brought to enforce or determine the validity of any fee.
(f)
Other
provisions as the city council determines necessary and proper to
carry out the provisions of this chapter.
(3)
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.
(Section 3.640 added by Ordinance 6230, enacted October 6, 2008)
The city shall notify all property owners within the district
and the applicant of the adoption of a reimbursement district resolution.
Such notice shall be by ordinary mail to the address of record of
such owner. The notice shall include a copy of the resolution and
a summary of the report, including a short explanation of when the
property owner is obligated to pay the reimbursement fee and the amount
of the fee.
(Section 3.645 added by Ordinance 6230, enacted October 6, 2008)
The city recorder shall cause notice of the formation and nature
of the reimbursement district to be filed in the office of county
records so as to provide notice to potential purchasers of property
within the district. The recording shall not create a lien. Failure
to make such a recording shall not affect the legality of the resolution
or the obligation to pay the reimbursement fee.
(Section 3.650 added by Ordinance 6230, enacted October 6, 2008)
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 adoption of
a resolution establishing a reimbursement district.
(Section 3.655 added by Ordinance 6230, enacted October 6, 2008)
(1)
Nothing
herein shall require the payment of a reimbursement fee in connection
with a permit for ordinary repair and maintenance, nor shall anything
herein require the payment of a reimbursement fee if an application
is not filed within the time limit established for the reimbursement
district.
(2)
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 council,
if within the time specified in the resolution establishing the district,
the person applies for and receives approval from the city for any
of the following activities:
(a)
A
building permit for a new building;
(b)
Building
permit(s) for any addition(s) of a building, which exceed 25 percent
of the value of the building within any 12-month period. The value
of the building shall be the amount shown on the most current records
of the county department of assessment and taxation for the building’s
real market value. This subsection shall not apply to repairs made
necessary due to accidental damage to the structure beyond the owner’s
control or damage or destruction by fire or other natural disaster;
(c)
Any
alteration, modification or change in the use of real property which:
(d)
Connection
to or use of a water improvement, if the reimbursement district is
based on the water improvement;
(e)
Connection
to or use of a sewer improvement, if the reimbursement district is
based on the water improvement;
(f)
Connection
to or use of a stormwater improvement, if the reimbursement district
is based on the stormwater improvement;
(g)
Connection
to or use of a transportation improvement, if the reimbursement district
is based on the street improvement;
(h)
Connection
or access to, or use of another infrastructure improvement as set
forth by the council in the resolution establishing the reimbursement
district.
(3)
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 or portion thereof
as a result of this determination.
(4)
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.
(5)
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 for the same improvement. A land use approval authorizing the development in question shall not give rise to an obligation to pay the fee; only the issuance of a permit pursuant to such approval within the time limit established for the district shall create such obligation. No permit shall be issued for any of the activities listed in subsection (2) of this section unless the reimbursement fee has been paid in full. Where approval is given as specified in subsection (2) of this section, but if no permit is requested or issued, then the requirement to pay the reimbursement fee lapses if the underlying approval lapses.
(6)
The
date when the right of reimbursement ends shall not extend beyond
20 years from the district formation date, but if the district shall
have initially been established for a period of less than 20 years,
it may be extended by city council resolution for periods of five
years for a total not to exceed 20 years.
(Section 3.660 added by Ordinance 6230, enacted October 6, 2008)
(1)
The
right of reimbursement is assignable and transferable upon 90 days’
written notice delivered to the city advising the city to whom future
payments are to be made.
(2)
The
city shall establish separate accounts for each reimbursement district.
Upon receipt of a reimbursement fee, the city shall cause a record
to be made of that property’s payment and remit the fee to the
person who requested establishment of the reimbursement district or
their assignee.
(3)
The
reimbursement fee is not intended to replace or limit, and is in addition
to any other existing fees or charges collected by the city.
(Section 3.665 added by Ordinance 6230, enacted October 6, 2008)
(1)
No person
may cause, maintain or use a connection to a utility improvement for
which a reimbursement district has been established and for which
a reimbursement charge is due and payable, unless such charge has
first been paid or financed with installment payments.
(2)
Violation
of this section is a civil infraction, punishable by a fine not to
exceed $720.00. Each day that a prohibited connection or use exists
constitutes a separate violation.
(3)
The
remedies provided under this section are cumulative to any other remedies
provided by law.
(Section 3.670 added by Ordinance 6230, enacted October 6, 2008)
