Ord 2070 - Sys Develp Charges
COUNCIL BILL NO. 1336
ORDINANCE NO. 2070
AN ORDINANCE ESTABLISHING SYSTEM DEVELOPMENT CHARGES FOR WATER,
SEWER, AND PARKS AND RECREATION FACILITIES.
WHEREAS, future growth should contribute its fair share to the cost of
improvements and additions to City water, sewer, and park and recreation facilities that are
required to accommodate the needs of such growth; and
WHEREAS, the imposition of system development charges will provide a source of
revenue to fund the construction or improvement of the City's water, sewer, and parks and
recreation facilities necessitated by growth; and
WHEREAS, ORS 223.297 - 223.314, adopted in 1989, authorizes local governments
to impose system development charges; and
WHEREAS, the City's present system development charges must be revised to
comply with Oregon law; and
WHEREAS, the City of Woodburn has completed a review and modification of its
system development charges in order to insure their compliance with Oregon law; and
WHEREAS, system development charges are charges incurred upon the election
to develop property at a specific use, density and/or intensity, and the incurred charge
equals, or is less than the actual cost of providing public facilities commensurate with the
needs of the chosen use, density, and or intensity; election of other uses, densities, and/or
intensities causes direct and proportional changes in the amount of the incurred charge; and
system development charges are separate from and in addition to any applicable tax,
assessment, charge, fee in lieu of assessment, or other fee provided by law or imposed as
a condition of development; NOW THEREFORE,
THE CITY OF WOODBURN ORDAINS AS FOLLOWS:
Section 1. Definitions. The following definitions apply:
(A) "Applicant" shall mean the owner or other person who applies for a building permit,
development permit, or connection to the City's water or sewer system.
(B) "Building" shall mean any structure, either temporary or permanent, built for the
support, shelter or enclosure of persons, chattels or property of any kind. This term shall
include tents, trailers, mobile homes or any vehicles serving in any way the function of a
building. This term shall not include temporary construction sheds or trailers erected to
assist in construction and maintained during the term of a building permit.
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(C) "Building Permit" shall mean an official document or certificate authorizing the
construction or siting of any building. For purposes of this Ordinance, the term "Building
Permit" shall also include any construction or installation permits which may be required for
those structures or buildings, such as a mobile home, that do not require a building permit
in order to be occupied.
(D) "Capital Improvements" shall mean public facilities or assets used for any of the
following:
1) Water supply, treatment, storage, and transmission/conveyance;
2) Sewer collection/conveyance, treatment, and disposal; or
3) Park and recreation.
(E) "Citizen or Other Interested Person" shall mean any person who is a legal resident
of the City of Woodburn as evidenced by registration as a voter in the City, or by other proof
of residency; or a person who owns, occupies, or otherwise has an interest in real property
which is located within the City limits or is otherwise subject to the imposition of system
development charges, as outlined in Section (3) of this ordinance.
(F) "Development" shall mean a building or other land construction, or making a physical
change in the use of a structure or land, in a manner which increases the usage of any
capital improvements or which will contribute to the need for additional or enlarged capital
improvements.
(G) "Development Permit" shall mean an official document or certificate, other than a
building permit, authorizing development.
(H) "Dwelling Unit" shall mean a building or a portion of a building designed for
residential occupancy, consisting of one or more rooms which are arranged, designed or
used as living quarters for one family only.
(I) "Encumbered" shall mean monies committed by contract or purchase order in a
manner that obligates the City to expend the encumbered amount upon delivery of goods,
the rendering of services, or the conveyance of real property provided by a vendor, supplier,
contractor or Owner.
(J) "Improvement Fee" shall mean a fee for costs associates with capital improvements
to be constructed after the effective date of this ordinance.
(I<) "Owner" shall mean the person holding legal title to the real property upon which
development is to occur.
(L) "Person" shall mean an individual, a corporation, a partnership, an incorporated
association, or any other similar entity.
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(M) "Qualified Public Improvement" shall mean a capital improvement that is:
1) Required as a condition of residential development approval;
2) Identified in the capital improvement plan adopted pursuant to Section (4) (D); and
3) Not located on or contiguous to property that is the subject of residential
development approval.
(N) "Reimbursement Fee" shall mean a fee for costs associated with capital
improvements already constructed or under construction on the effective date of this
ordinance.
(0) "System Development Charge" shall mean a reimbursement fee, an improvement fee,
or a combination thereof assessed or collected at the time of increased usage of a capital
improvement or issuance of a development permit, building permit or connection to the
capital improvement. System development charges are separate from and in addition to any
applicable tax, assessment, fee in lieu of assessment, or other fee or charge provided by
law or imposed as a condition of development. System development charges do not
include connection or hook-up fees that reimburse the City for the average cost of
inspecting and installing connections to water an sewer capital improvements.
(P) "System Development Charge Study" shall mean the study adopted pursuant to
Section (3)(B) , as amended and supplemental pursuant to Section (3)(H).
Section 2. Rules of Construction. For the purposes of administration and
enforcement of this ordinance, unless otherwise stated in this ordinance, the following rules
of construction shall apply:
(A) In case of any difference of meaning or implication between the text of this ordinance
and any caption, illustration, summary table, or illustrative table, the text shall control.
(B) The word "shall" is always mandatory and not discretionary; the word "may" is
permissive.
(C) Words used in the present tense shall include the future; words used in the singular
shall include the plural and the plural the singular, unless the context clearly indicates the
contrary; and use of the masculine gender shall include the feminine gender.
(D) The phrase "used for" includes "arranged for", "designed for", "maintained for", or
"occupied for".
(E) Unless the context clearly indicates the contrary, where a regulation involves two or
more items, conditions, provisions, or events connected by the conjunction "and", "or" or
"either"...or", the conjunction shall be interpreted as follows:
1) "And" indicates that all the connected terms, conditions, provisions or events shall
apply.
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2) "Or" indicates that the connected items, conditions, or provisions or events may
apply singly or in any combination.
3) "Either...or" indicates that the connected items, conditions, provisions or events
shall apply singly but not in combination.
(F) The word "includes" shall not limit a term to the specific example, but is intended to
extend its meaning to all other instances or circumstances of like find or character.
Section 3. Imposition of Svstem Development Charaes. System development charges are
hereby imposed, subject to the following conditions.
(A) Development Subiect to Charaes. System development charges are imposed on all
development within the City for capital improvements for water, sewer, and parks and
recreation,. System development charges are imposed on any development outside the City
boundary for water and sewer capital improvements, if such development connects to or
otherwise uses the City's water or sewer systems. The system development charges shall
be paid in addition to all other fees, charges and assessments due for development, and
are intended to provide funds only for capital improvements necessitated by new
development.
(8) Rates of Charoes:
1) The City hereby adopts and incorporates by reference the study entitled "System
Development Charges for Woodburn, Oregon", dated July 29, 1991, particularly the
assumptions, conclusions and findings in such study as to the determination of
anticipated costs of capital improvements required to accommodate growth and the
rates for system development charges to reimburse the City for such capital
improvements.
2) System development charges shall be imposed and calculated for the alteration,
expansion or replacement of a building or dwelling unit if such alteration, expansion
or replacement results in an increase in the use of capital improvements compared
to the present use of the development. The amount of the system development
charge to be paid shall be the difference between the rate for the proposed
development and the rate that would be imposed for the development prior to the
alteration, expansion or replacement.
3) The City shall, based upon the study referred to in subsection (1) above, adopt
by resolution the amounts of system development charges.
(C) Pavment of Charaes. Except as otherwise provided in this ordinance, applicants for
building permits, development permits, or connection to City water or sewer systems shall
pay the applicable system development charges prior to the issuance of the permit or
connection by the city.
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(D) Alternative Rate Calculation. Applicants may submit alternative rates for system
development charges, subject to the following conditions:
1) In the event an applicant believes that the impact on City capital improvements
resulting from his development is less than the fee established in Section (3)(B) ,
such applicant may submit a calculation of an alternative system development
charge to the City Council.
2) The alternative system development charges rate calculations shall be based on
data, information and assumptions contained in this ordinance and the adopted
system development charges study or an independent source, provided that the
independent source is a local study supported by a data base adequate for the
conclusions contained in such study performed pursuant to a generally accepted
methodology and based upon generally accepted standard sources of information
relating to facilities planning, cost analysis and demographics.
3) If the City Council determines that the date, information and assumptions utilized
by the applicant to calculate the alternative system development charges rates
comply with the requirements of this Section by using a generally accepted
methodology, the alternative system development charges rates shall be paid in lieu
of the rates set forth in Section (3)(B).
4) If the City Council determines that the data. information and assumptions utilized
by the applicant to calculate the alternative system development charges rates do
not comply with the requirements of this Section or were not calculated by a
generally accepted methodology, then the City Council shall provide to the Applicant
(by certified mail, return receipt requested) written notification of the rejection of the
alternative system development charges rates and the reason therefor.
5) any applicant who has submitted a proposed alternative system development
charges rate pursuant to this Section and desires the immediate issuance of a
building permit, development permit, or connection shall pay the applicable system
development charges rates pursuant to Section (3)(B). Said payment shall be
deemed paid under "protest" and shall not be construed as a waiver of any right of
review. Any difference between the amount paid and the amount due, as
determined by the Council, shall be refunded to the applicant.
(E) Exemptions. The following development shall be exempt from payment of the system
development charges:
1) Alterations, expansion or replacement of an existing dwelling unit where not
additional dwelling units are created and no change in use has occurred.
2) The construction of accessory buildings or structures which will not create
additional dwelling units and which do not create additional demands on the City's
capital improvements.
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3) The issuance of a permit for a mobile home installation on the property which
applicable system development charges have previously been made for such
installation as documented by receipts issued by the City for such prior payment.
4) Development with vested rights, determined as follows:
a) Any owner of land which was the subject of a building permit or development
permit issued prior to the effective date of this ordinance may petition the City for
a vested rights determination which would exempt the landowner from the
provisions of this ordinance. Such petition shall be evaluated in writing by the
City Attorney and a decision made by the City Council based on the following
criteria:
i) The existence of a valid, unexpired permit issued by the City authorizing the
specific development for which a determination is sought;
ii) Substantial expenditures or obligations made or incurred in reliance upon
the authorizing governmental act;
Iii) Other factors that demonstrate it is highly inequitable to deny the owner
the opportunity to complete the previously approved development under the
conditions of approval by requiring the owner to comply with the requirement
of this ordinance. For the purposes of this paragraph, the following factors
shall be considered in determining whether it is inequitable to deny the owner
the opportunity to complete the previously approved development:
(aa) Whether the injury suffered by the owner outweighs the public cost of allowing
the development to go forward without payment of the system development charges
required by this ordinance; and
(bb) Whether the expenses or obligations for the development were made or
incurred prior to the effective date of this Ordinance.
(F) Credits for Development contributions of Qualified Public Improvements. The City shall
grant a credit against the system development charges imposed pursuant to Section (3) (A)
and (B) for the donation of land as permitted by Ordinance 1807. or for the construction of,
any qualified public improvements. Such land donation and construction shall be subject
to the approval of the City.
1) The amount of developer contribution credit to be applied shall be determined
according to the following standards of valuation:
a) The value of donated lands shall be based upon a written appraisal of fair
market value by a qualified and professional appraiser based upon comparable
sales of similar property between unrelated parties in a bargaining transaction;
and
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b) The cost of anticipated construction of qualified public improvements shall be
based upon cost estimated certified by a professional architect or engineer.
2) Prior to issuance of a building permit, development permit, or connection, the
applicant shall submit to the City Administrator a proposed plan and estimate of cost
for contributions of qualified public improvements. The proposed plan and estimate
shall include:
a) a designation of the development for which the proposed plan is being
submitted;
b) a legal description of any land proposed to be donated pursuant to Chapter
39 of the Woodburn Zoning Ordinance, Ordinance 1807, and a written appraisal
prepared in conformity with subsection (1 )(a) of this Section.
c) a list of the contemplated capital improvements contained within the plan;
d) an estimate of proposed construction costs certified by a professional
architect or engineer; and
e) a proposed time schedule for completion of the proposed plan.
3) the City Administrator shall determine if the proposed qualified public
improvement is:
a) Required as a condition of residential development approval;
b) Identified in the capital improvement plan adopted pursuant to Section 4(D);
and
c) Not located on or contiguous to property that is the subject of residential
development approval.
The decision of the City Administrator as to whether to accept the proposed plan of
contribution and the value of such contribution shall be in writing and issued within
fifteen (15) working days of the review. A copy shall be provided to the applicant.
4) Any applicant who submits a proposed plan pursuant to this Section and desires
the immediate issuance of a building permit, development permit, or connection,
shall pay the applicable system development charges. Said payment shall be
deemed paid under "protest" and shall not be construed as a waiver of any review
rights. Any difference between the amount paid the amount due, as determined by
the City Administrator, shall be refunded to the applicant. In no event shall a refund
by City under this subsection exceed the amount originally paid by the applicant.
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5) In the event the amount of developer contribution determined to be applicable
by the City Administrator pursuant to an approved plan of contribution exceeds the
total amount of system development charges due by the applicant, the City may
execute with the applicant an agreement for future reimbursement of the excess of
such contribution credit from future receipts by the City of other system development
charges. Such agreement of reimbursement shall be subject to City Council
approval and not be for a period in excess of five years from the date of completion
of the approved plan of contribution and shall provide for a forfeiture of any
remaining reimbursement balance at the end of such five year period.
(G) Appeals and Review Hearinqs.
1) An applicant who is required to pay system development charges shall have the
right to request a hearing to review the denial by the City Administrator of any of the
following:
a) A proposed credit for contribution of qualified public improvements
pursuant to Section (3)(F).
2) Such hearing shall be requested by the applicant within fifteen (15) days of the
date of first receipt of the denial by the City Administrator. Failure to request a
hearing within the time provided shall be deemed a waiver of such right.
3) The request for hearing shall be filed with the City Administrator and shall contain
the following:
a) The name and address of the applicant;
b) The legal description of the property in question;
c) If issued, the date the building permit, development permit, or connection was
issued;
d) A brief description of the nature of the development being undertaken
pursuant to the building permit, development permit, or connection;
e) If paid, the date the system development charges were paid; and
f) A statement of the reasons why the applicant is requesting the hearing.
4) Upon receipt of such request, the City Administrator shall schedule a hearing
before the City Council at a regularly scheduled meeting or a special meeting called
for the purpose of conducting the hearing and shall provide the applicant written
notice of the time and place of the hearing. Such hearing shall be held within forty-
five (45) days of the date the request for hearing was filed.
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5) Such hearing shall be before the City Council and shall be conducted in a
manner designed to obtain all information and evidence relevant to the requested
hearing. Formal rules of civil procedures and evidence shall not be applicable;
however, the hearing shall be conducted in a fair and impartial manner with each
party having an opportunity to be heard and to present information and evidence.
6) Any applicant who requests a hearing pursuant to this Section and desires the
immediate issuance of a building permit, development permit, or connection shall
pay prior to or at the time the request for hearing is filed the applicable system
development charges pursuant to Section (3)(8). Said payment shall be deemed
paid under "protest" and shall not be construed as a waiver of any review rights.
7} An applicant may request a hearing under this Section without paying the
applicable system development charges, but no building permit, development permit,
or connection shall be issued until such system development charges are paid in the
amount initially calculated or the amount approved upon completion of the review
provided in this Section.
(H) Review of Studv and Rates. This ordinance and the system development charges study
shall be reviewed at least once every four years. The review shall consider new estimates
of population and other socioeconomic data, changes in the cost of construction and land
acquisition, and adjustments to the assumptions, conclusions or findings set forth in the
study adopted by Section (3)(8). The purpose of this review is to evaluate and revise, if
necessary, the rates of the system development charges to assure that they do not exceed
the reasonably anticipated costs of the City's capital improvements. In the event the review
of the ordinance or the study alters or changes the assumptions, conclusions and findings
of the study, or alters or changes the assumptions, conclusions and findings of the study,
or alters or changes the amount of system development charges, the study adopted by
reference in Section (3)(8) shall be amended and updated to reflect the assumptions,
conclusions and findings of such reviews and Section (3)(8) shall be amended to adopt by
reference such updated studies.
Section 4.ReceiDt and Expenditure of System DeyeloDment Charaes.
(A) Trust Accounts. The City hereby establishes a separate trust account for each type of
system development charge to be designated as the 'Water SDC Account", the "Sewer SDC
Account", and the "Parks and Recreation SDC Account", which shall be maintained separate
and apart from all other accounts of the City. All system development charge payments
shall be deposited into the appropriate trust account immediately upon receipt.
(8) Use of System Development Charqes. The monies deposited into the trust accounts
shall be used solely for the purpose of providing capital improvements necessitated by
development, including, but not limited to:
1} design and construction plan preparation;
2} permitting and fees;
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3) land and materials acquisition, including any costs of acquisition or
condemnation;
4) construction of improvements and structures;
5) design and construction of new drainage facilities required by the construction
of capital improvements and structures;
6) relocating utilities required by the construction of improvements and structures;
7) landscaping;
8) construction management and inspection;
9) surveying, soils and material testing;
10) acquisition of capital equipment;
11) repayment of monies transferred or borrowed from any budgetary fund of the
City which were used to fund any of the capital improvements as herein provided;
12) payment of principal and interest, necessary reserves and costs of issuance
under any bonds or other indebtedness issued by the City to fund capital
improvements;
13) direct costs of complying with the provIsions of ORS 223.297 to 223.314,
including the costs of developing system development charges methodologies and
providing an annual accounting of system development charges expenditures.
(C) Prohibited Uses of Svstem Development Charaes. Funds on deposit in system
development charge trust accounts shall not be used for:
1) any expenditure that would be classified as a routine maintenance or repair
expense; or
2) Costs associated with the construction of administrative office facilities that are
more than an incidental part of other capital improvements.
(D) Capital Improvements Authorized to be Financed by System Development Charaes.
Any capital improvement being funded wholly or in part with system development charges
revenue shall be included in the City's capital improvement program. The capital
improvement program shall:
1) list the specific capital improvement projects that may be funded with system
development charges revenue;
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2) provide the cost of each capital improvement project, and an estimate of the
amounts of each revenue source, including system development charges, that will
be used to fund each project;
3) provide the estimated timing of each capital improvement project; and
4) be updated at least once every four years.
(E) Investment of Trust Account Revenue. Any funds on deposit in system development
charges trust accounts which are not immediately necessary for expenditure shall be
invested by the City. All income derived from such investments shall be deposited in the
system development charges trust accounts and used as provided herein.
(F) Refunds of Svstem Development Charaes. System development charges shall be
refunded in accordance with the following requirements:
1) An applicant or owner shall be eligible to apply for a refund if:
a) The building permit, development permit or connection has expired and the
development authorized by such permit is not complete; or
b) The system development charges have not been expended or encumbered
prior to the end of the fiscal year immediately following the ninth anniversary of
the date upon which such charges were paid. For the purposes of this Section,
system development charges collected shall be deemed to be expended or
encumbered on the basis of the first system development charges in shall be.the
first system development charges out.
2) The application for refund shall be filed with the City Administrator and contain
the following:
a) The name and address of the applicant;
b) The location of the property which was the subject of the system development
charges;
c) A notarized sworn statement that the petitioner is the then current owner of
the property on behalf of which the system development charges were paid,
including proof of ownership, such as a certified copy of the latest recorded
deed;
d) the date the system development charges were paid;
e) A copy of the receipt of payment for the system development charges; and,
if appropriate,
f) The date the building permit, development permit, or connection was issued
and the date of expiration.
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3) The application shall be filed within ninety (90) days of the expiration of the
building permit, development permit, or connection, or within ninety (90) days of the
end of the fiscal year following the ninth anniversary of the date upon which the
system development charges were paid. Failure to timely apply for a refund of the
system development charges shall waive any right to a refund.
4) Within thirty (30) days from the date of receipt of a petition for refund, the City
Administrator will advise the petitioner of the status of the request for refund, and if
such request is valid, the system development charges shall be returned to the
petitioner.
5) A building permit, development permit, or connection which is subsequently
issued for a development on the same property which was the subject of a refund
shall pay the systems development charges as required by Section (3).
(G) Annual Accountina Reports. The City shall prepare an annual report accounting for
system development charges, including the total amount of system development charges
revenue collected in each trust account, and the capital improvement projects that were
funded.
(H) Challenae of Expenditures. Any citizen or other interested person (as defined in
Section (1 )(F) may challenge an expenditure of system development charges revenues.
1) Such challenge shall be submitted, in writing, to the City Administrator for review
within two years following the subject expenditure, and shall include the following
information:
a) the name and address of the citizen or other interested person challenging
the expenditure;
b) The amount of the expenditure, the project, payee or purpose, and the
approximate date on which it was made; and
c) the reason why the expenditure is being challenged.
2) If the City Administrator determines that the expenditure was not made in
accordance with the provisions of this ordinance and other relevant laws, a
reimbursement of system development charges trust account revenues from other
revenue sources shall be made within one year following the determination that the
expenditures were not appropriate.
3) The City Administrator shall make written notification of the results of the
expenditure review to the citizen or other interested person who requested the
review within ten (10) days of completion of the review.
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Section 5. Severability. If any clause, section or provision of this ordinance shall
be declared unconstitutional or invalid for any reason or cause, the remaining portion of said
ordinance shall be in full force and effect and be valid as if such invalid portion thereof had
not been incorporated herein.
Approved as to form:
City Attorney
Date
Passed by the Council
APPROVED, 1/(p IlA) ~. ~
Fred W. Kyser, May.
September 9, 1991
Submitted to the Mayor
September 10. 1991
Approved by the Mayor
September 10, 1991
Filed in the Office of the Recorder
September 10, 1991
ATTEST:
fJ~ ---z;: 1_
tz..0~ 'l-Yl D--../(
Mary T ant, Deputy Recorder
City of Woodburn, Oregon
SYSDEV.DRD
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