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Ord 2276 - Adopt Claims Process COUNCIL BILL NO. 2278 ORDINANCE NO. 2276 AN ORDINANCE ADOPTING A CLAIMS PROCESSING PROCEDURE UNDER THE 2000 AMENDMENT TO ARTICLE I, SECTION 18 OF THE OREGON CONSTITUTION (BALLOT MEASURE 7) AND DECLARING AN EMERGENCY THE CITY OF WOODBURN ORDAINS AS FOLLOWS: Section 1. LeKislative FindinKs. The City Council finds: (A) On November 7,2000, the voters of the State of Oregon approved Ballot Measure 7, amending Oregon Constitution Article I, Section 18 by adding subsections (a) through (f), which are as follows: (a) If the state, a political subdivision of the state, or a local government passes or enforces a regulation that restricts the use of private real property, and the restriction has the effect of reducing the value of a property upon which the restriction is imposed; the property owner shall be paid just compensation equal to the reduction in the fair market value of the property. (b) F or purposes of this section, adoption or enforcement of historically and commonly recognized nuisance laws shall not be deemed to have caused a reduction in the value of a property. The phrase "historically and commonly recognized nuisance laws" shall be narrowly construed in favor of a finding that just compensation is required under this section. (c) A regulating entity may impose, to the minimum extent required, a regulation to implement a requirement of federal law without payment of compensation under this section. Nothing in this 2000 Amendment shall require compensation due to a government regulation prohibiting the use of a property for the purpose of selling pornography, performing nude dancing, selling alcoholic beverages or other controlled substances, or operating a casino or gaming parlor. (d) Compensation shall be due the property owner if the regulation was adopted, first enforced or applied after the current owner of the property became the owner, and continues to apply to the property 90 days after the owner applies for compensation under this section. (e) Definitions: For purposes of this section, "regulation" shall include any law, rule, ordinance, resolution, goal, or other enforceable enactment of government; Page 1 - COUNCIL BILL NO. 2278 ORDINANCE NO. 2276 "real property" shall include any structure built or sited on the property, aggregate and other removable minerals, and any forest product or other crop grown on the property; "reduction in the fair market value" shall mean the difference in the fair market value of the property before and after application of the regulation, and shall include the net cost to the landowner of an affirmative obligation to protect, provide, or preserve wildlife habitat, natural areas, wetlands, ecosystems, scenery, open space, historical, archaeological or cultural resources, or low income housing; and "just compensation" shall include, if a claim for compensation is denied or not fully paid within 90 days of filing, reasonable attorney fees and expenses necessary to collect the compensation. (f) If any phrase, clause, or part of this section is found to be invalid by a court of competent jurisdiction, the remaining phrases, clauses and parts shall remain in full force and effect. (B) The effective date of the constitutional amendments adopted by Ballot Measure 7 is December 7, 2000. (C) Ballot Measure 7 contains no provisions explaining how claims for compensation will be processed, what information must be provided to the City so that the claim may be properly evaluated, and what procedure should be provided for determination of the entitlement to such compensation; and, as a consequence, it is appropriate for the City Council, by this ordinance, to set forth procedures and requirements for the orderly processing of claims for compensation. (D) In order for the City of Woodburn to exercise its "due diligence" obligation in the evaluation of claims, since claims will potentially be paid with public money, it is necessary for a claims processing procedure to be adopted. (E) It is in the best interests of the citizens of the City of Woodburn to establish the Ballot Measure 7 claims processing procedure contained in this ordinance. (F) It is in the best interests of the citizens of the City of Woodburn to establish a fee reasonably calculated to cover the actual cost of administering claims for compensation. Section 2. Definitions. Words used in this ordinance that are the same as words used in Oregon Constitution Article 1, Section 18, subsections (a) through (f) shall have the same meaning as the words used in those subsections of the Oregon Constitution, notwithstanding any different definition in the Woodburn Zoning Ordinance or in any other City ordinance or regulation. Section 3. Notice of Claim. Page 2 - COUNCIL BILL NO. 2278 ORDINANCE NO. 2276 (A) No claim arising from the 2000 Amendment to Article 1, Section 18 (Ballot Measure 7) shall be considered a claim unless notice of claim is filed as required by this section. (B) Notice of claim must be a written communication from a claimant filed with the City Administrator and must include: (1) Name, address and telephone number of person filing claim. (2) Names and address of all property owners and all persons who hold a security interest in the affected property. (3) Legal description and street address of affected property including contiguous units of property under the same ownership. (4) Preliminary title report, dated not more than 30 days from the date the claim is filed, from a title insurance company licensed in Oregon. (5) Description of, and citation to, regulation adopted, applied or enforced on the affected property causing a reduction in value. (a) Date regulation was adopted, applied or enforced on the affected property . (b) Date property owner or owners obtained title to property or became contract purchasers of record. (6) Description of the use that has been restricted by the regulation described in subsection (B)(5) of this section. (7) Amount the affected property has been reduced in value because of the restriction. (8) Statements explaining why the regulation is not an exempt regulation. (9) A written appraisal by an appraiser certified or licensed under ORS Ch. 674 that provides an opinion of the difference in the fair market value of the affected property before and after application of the regulation. (10) Any exempt regulations, known to the claimant, that may apply to the affected property, whether or not those exempt regulations affect the fair market value. (11) A statement explaining how the regulation restricts the use of the affected property and why the regulation has the effect of reducing the value of the Page 3 - COUNCIL BILL NO. 2278 ORDINANCE NO. 2276 property upon which the restriction is imposed. (12) A statement ofthe effect a release of the regulation on the property would have on the potential development of the property, stating the greatest degree of development that would be permitted if the identified regulation were released from the property. Section 4. Appraisal Requirements. (A) A claimant's appraisal offered to support a claim for compensation pursuant to the terms of this ordinance shall comply with the following requirements: (1) The appraisal must expressly note all existing infrastructure limitations and value the property without an assumption that the infrastructure will be improved at governmental expense or through discretionary governmental action; (2) The appraisal must indicate the amount of the alleged reduction in fair market value of the property by showing the difference in the fair market value of the property before and after the application of the regulation that is the subject of the claim for compensation; (3) The appraisal's consideration of the reduction in fair market value shall be limited to the difference in the fair market value of the property before and after the application of the regulation that is the subject of the claim, and shall include the net cost to the owner of an affirmative obligation to protect, provide, or preserve wildlife habitat; natural areas; wetlands; ecosystems; scenery; open space; historical, archeological, or cultural resources; or low-income housing, but shall not include consideration of any other damage that the regulation may have upon the property in question or any other property owned by the claimant; (4) The appraisal must expressly consider the effect a release under Measure 7, as applied to the claimant's and similarly situated properties, will have on the value of other property; and (5) The appraisal shall address any other matters the City determines are reasonably necessary to adequately evaluate the claim for compensation. (B) The City Administrator may, in his/her discretion, retain the services of an appraiser to independently appraise the property, evaluate the application or to provide an independent analysis of the appraisal( s) accompanying the application. The cost of such appraisal or independent analysis shall be paid by the applicant(s) and be assessed at the time of the submission of the application. In the event such appraisal or independent analysis is not performed by the City, an assessment of a portion of the application fee to cover the cost of such appraisal or analysis shall be refunded to the applicant(s). Page 4 - COUNCIL BILL NO. 2278 ORDINANCE NO. 2276 Section 5. Claims Processin2 Fee. A notice of claim must be accompanied by a fee to be paid in advance of acceptance for filing to cover the costs of completeness review and application processing. This fee may be established by resolution of the Council. Section 6. Completeness Review of Notice of Claim. A notice of claim shall not be considered a claim until determined to be complete by the City Administrator. If the notice of claim is not complete, the City Administrator shall inform the claimant in writing of the additional information necessary to make the notice of claim complete. The notice of claim shall be deemed complete at such time as the additional information is submitted and determined complete. Section 7. Procedure to Evaluate Claim. Claims shall be processed as follows: (A) Upon filing of a complete notice of claim, the City Administrator shall make a recommendation to the City Council as to disposition of the claim and schedule the matter for consideration by the Council. (B) Notice of the time and date the Council will consider the claim shall be mailed to the claimant (and all owners of record of property on the most recent property tax assessment roll where such property is located within 200 feet of the affected property) ten days prior to this date. Section 8. Payment of Compensation Conditional. Any City payment of compensation to a claimant under this ordinance shall be conditional on the claimant signing an agreement that, if an appellate court interprets or invalidates Oregon Constitution Article I, Section 18, subsections (a) through (f), in the same or another case, in a manner such that the applying owner was not entitled to compensation in relation to the subject regulation, then the claimant shall repay the compensation received to the City. Section 9. Severability. The provisions of this ordinance are severable. If a portion of this ordinance is for any reason held by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remaining portions of the ordinance. Section 10. Emer2ency Clause. The constitutional amendments adopted by Measure 7 will be effective December 7, 2000 and give the City only 90 days to consider claims for compensation. Because of the limited time to consider claims, it is necessary and appropriate for the City to establish the procedures set out in this ordinance immediately, in order that they be effective on December 7, 2000 when the constitutional amendments become effective. Therefore, this ordinance being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist and this ordinance shall take effect immediately upon passage by the City Council and approval by the Mayor. APprovedastoform~~~ 12. - If - 2o~-o City Attorney Date Page 5 - COUNCIL BILL NO. 2278 ORDINANCE NO. 2276 Passed by the Council Submitted to the Mayor Approved by the Mayor Filed in the Office of the Recorder ATTEST: J11~ ~ Mary Tennant, City Recorder City of Woodburn, Oregon Page 6 - COUNCIL BILL NO. 2278 ORDINANCE NO. 2276 ~- Approved: ~ Ric ard Jennings, December 4, 2000 December 4, 2000 December 4, 2000 December 4. 2000