HomeMy WebLinkAboutOrdinance 6230 10/06/2008
'.
,.
Ordinance Number 6230
AN ORDINANCE 'AUTHORIZING THE CREATION OF REIMBURSEMEl'iT~
DISTRICTS, ADDING SECTIONS 3.600, 3.605, 3.610, 3.615, 3.620, 3.625, 3.630, -:4:635,
3.640,3.645,3.650,3.655,3.660,3.665, AND 3.70 TO THE SPRINGFIELD MUNCIPAL
CODE, AS AMENDED, AND SETTING AN EFFECTIVE DATE
, THE COMMON COUNCIL OF THE CITY OF SPRINGFIELD does hereby ordain as
follows:
Section 1. The Springfield Municipal Code, as amended, is further amended by adding thereto a
new title within Chapter 3, to be known as Reimbursement Districts. consisting of Sections 3.600
through 3.670 to read as follows:
Sections:
3.600
3.605
3.610
3.615
3.620
3.625
3.630
3.635
3.640
3.645
3.650
3.655
3.660
3.665
3.670
REIMBURSEMENT DISTRICTS
Purpose.
Definitions.
Application for a reimbursement district.
City Public Works Director's report.
Amount to be reimbursed.
Meeting with the Applicant and Property Owners Within the District
Public hearing.
Notice of public hearing.
City Council action.
Notice of adoption of resolution.
Recording the resolution.
Contesting the Reimbursement District
Obligation to Pay the Reimbursement District
Administration
Prohibited conduct.
3.600 Purpose.
(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.
Attachment 2, Page 1 of 9
N:\City\General\Reimbursement District Ordinance FINAL.doc
Last printed 9/812008 2:49:00 PM
'"
(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 charge prior to the city establishing a reimbursement district pursuant to this
chapter. The city will collect the 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 lib, 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.
3.605 Definitions
As used in this chapter:
(1) "City public works director" or "director" means 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.
(2) "City" means the city of Springfield.
(3) "Person" 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.
(4) "Applicant" means a person, as defined in subsection (3) of 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.
(5) Infrastructure improvements include the planning, design and construction of,
facilities or structures dedicated to public use including, but not limited to,
(a) "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.
(b) "Water improvement" -:- an improvement designed and constructed in accordance
with standards adopted by the city acting though the Councilor the Springfield Utility
Attachment 2, Page 2 of 9
N:\City\General\Reimbursement District Ordinance FINAL.doc
Last printed 9/8/2008 2:49:00 PM
, ORDINANCE NO. 6230
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.
(c) "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.
(d) "Storm water improvement" means 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 storm
water 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 storm water and water quality standards applicable to the city
(e) "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.
(t) "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.
(6) "Reimbursement district" means 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 has the opportunity to benefit from
such an improvement.
(7) "Reimbursement fee" 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 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.
3.610 Application for reimbursement district.
(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 an application for permit approval and
Attachment 2, Page 3 of 9
N:\City\General\Reimbursement District Ordinance FINAL.doc
Last printed 9/8/2008 2:49:00 PM
ORDINANCE NO. 6230
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.
3.615 City Public Works Director's report.
(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:
(2) 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;
(3) The area to be included in the reimbursement district;
(4) 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;
(5) 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
Attachment 2, Page 4 of 9
N:\City\General\Reimbursement District Ordinance FINAL.doc
Last printed 9/8/2008 2:49:00 PM
ORDINANCE NO. 6230
. ,
by the city Public Works 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
(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);
(6) 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).
(7) The proposed period of time that the right to reimbursement exists shall be
specified in the resolution and shall not to exceed 20 years.
3.620 Amount to be reimbursed.
The cost to be reimbursed to the applicant shall be limited to the cost of construction,
including the acquisition and condemnation costs of 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.
3.625 Meeting with the Applicant and Property Owners Within the District
After the Public Works Director has 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.
3.630 Public hearing.
(1) Within a reasonable time after the report in SMC 3.615, and meeting required in
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).
3.635 Notice of public hearing.
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
Attachment 2, Page 5 of 9
N:\City\General\Reimbursement District Ordinance FINAL.doc
Last printed 9/812008 2:49:00 PM
, ORDINANCE NO. 6230
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.
3.640 City council action.
(1) After the public hearing held pursuant to SMC 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 SMC 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 3.420(2)(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.
(c) The applicant shall agree to provide such security as shall be required under
Springfield Municipal Code Section 3.210.
(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 SMC 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.
3.645 Notice of adoption of resolution.
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
Attachment 2, Page 6 of 9
N:\City\General\Reimbursement District Ordinance FINAL.doc
Last printed 9/8120082:49:00 PM
ORDINANCE NO. c@#)
. >
report, including a short explanation of when the property owner IS obligated to pay the
reimbursement fee and the amount of the fee.
3.650 Recording the resolution. 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.
3.655 Contesting the Reimbursement District. 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.
3.660 Obligation to Pay Reimbursement Fee.
(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 ofthe 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:
1) increases the number of parking spaces required under the Springfield zoning
ordinance in effect at the time of permit application;
2) increases the demand on the existing stormwater management system; or
3) increases the flow or strength of wastewater discharged from the property;
(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 storm water improvement, if the reimbursement district is
based on the storm water improvement;
(g) Connection to or use of a transportation improvement, if the reimbursement district
is based on the street improvement;
Attachment 2, Page 7 of 9
N:\City\General\Reimbursement District Ordinance FINAL.doc
Last printed 9/8/2008 2:49:00 PM
ORDINANCE NO. 6230
".. ,',
(h) Connection or access to, or use of an other 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 ofthe City shall be liable for payment of any reimbursement
feeor 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 5 years for a
total not to exceed 20 years.
3.665 Administration.
(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.
3.670 Prohibited conduct.
(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. 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.
Attachment 2, Page 8 of 9
N:\City\General\Reimbursement District Ordinance FINAL.doc
Last printed 9/8/2008 2:49:00 PM
ORDINANCE NO. 6230
....'" . '. ^,'
Section 2. Severability. Should any court of competent jurisdiction determine that a section or
part of a section of this ordinance is invalid, such invalidity shall not impair the effect or validity
of the remaining sections or parts of sections.
Section 3. Effective Date. This ordinance, shall become effective 30 days after adoption by the
Council and approval of the Mayor.
October
ADOPTED by the Common Council of the City of Springfield this 6 thday of _, 2008, by a vote
of ~ for and ~ against. (2 absent)
APPROVED by the Mayor of the City
Mayor
ATTEST:
Amy Sowa, being first duly sworn, deposes and says that Sidney W. Leiken, to me
personally known and known by me to be the person descriherl in the foregoing instrument did
Uc1:ober
sign this ordi ance with his hand in my presence this ~ day of _,2008.
/s/ Amy S
CITY RECORDER
~[v~nf\JU~ & fl~r~(QVU)
AS TO FORM
~~.U9IJ-
DATE: _ell r/t7~
OFFICE OF CITY ATTORNEY
Attachment 2, Page 9 of 9
N:\City\General\Reimbursement District Ordinance FINAL.doc
Last printed 9/8120082:49:00 PM
ORDINANCE NO. 6230