Chapter 18.15
SYSTEMS DEVELOPMENT CHARGES
Sections:
18.15.040 Systems development charge established.
18.15.060 Compliance with state law.
18.15.070 Collection of charges.
18.15.110 Prohibited connection.
18.15.010 Definitions.
The following words and phrases, as used in this chapter, have the following definitions and meanings:
“Capital improvement(s)” means public facilities or assets used for any of the following:
1. Water production, treatment and distribution;
2. Sanitary sewers, including collection, transmission, treatments and disposal;
3. Storm sewers, including drainage and flood control;
4. Transportation, including but not limited to streets, sidewalks, bike lanes and paths, street lights, traffic signs and signals, street trees, public transportation, vehicle parking and bridges; or
5. Parks and recreation, including but not limited to mini-neighborhood parks, neighborhood parks, community parks, public open space and trail systems, buildings, courts, fields and other like facilities.
“Development” means constructing or enlarging a building or adding facilities, or making a physical change in the use of a structure or land, which increases the usage of any capital improvements or which will contribute to the need for additional or enlarged capital improvements.
“Public improvement charge” means a fee for costs associated with capital improvements to be constructed after the effective date of the ordinance codified in this chapter. This term shall have the same meaning as the term “improvement fee” as used in ORS 223.297 through 223.314.
“Qualified public improvement” means a capital improvement that is required as a condition of development approval. However, it does not include improvements sized or established to meet only the demands created by a development and its identified improvement plan (see RRMC 18.15.080).
“Reimbursement fee” means a fee for costs associated with capital improvements constructed or under construction on the date the fee is adopted pursuant to RRMC 18.15.040.
“Systems development charge (SDC)” means a reimbursement fee, a public improvement charge or a combination thereof assessed or collected at the time of increased usage of an existing capital improvement, at the time of issuance of a development permit or a building permit, or at the time of a connection to a capital improvement. Systems development charges include that portion of a sewer or water connection charge that is greater than the amount necessary to reimburse the city for its average cost of inspecting and installing connections to water and sewer facilities. Systems development charges do not include fees assessed or collected as a part of a local improvement district (LID), or the costs of complying with requirements or conditions imposed in a land use decision. [Ord. 93-232-O §§ 1 – 3; Ord. 91-208-O § 1].
18.15.020 Purpose.
The purpose of the systems development charge is to impose a portion of the costs of capital improvements for water, waste water, transportation, storm drainage and flood control and parks and recreation upon those developments that create the need for or increase the demands on capital improvements. The purpose of a system development charge is not to raise revenues, but to ensure adequate facilities for the citizens of Rogue River. [Ord. 91-208-O § 2].
18.15.030 Scope.
The systems development charge imposed by this chapter is separate from and in addition to any applicable tax, assessment, charge, fee in lieu of assessment, or fee otherwise provided by law or imposed as a condition of development. A systems development charge is to be considered in the nature of a charge for service rendered or facilities made available, or a charge for future services to be rendered on facilities to be made available in the future. [Ord. 91-208-O § 3].
18.15.040 Systems development charge established.
A. Unless otherwise exempted by a provision of this chapter or other local or state law, a systems development charge is hereby imposed upon all development within the city; and all development outside the boundary of the city that connects to or otherwise uses the sanitary sewer system, storm drainage system or water system of the city. The city public works director is authorized to make interpretations of this section, subject to appeal to the city council.
B. Systems development charges for each type of capital improvement may be created through application of the methodologies described in RRMC 18.15.050. The amounts of each systems development charge shall be adopted initially by city council resolution following a public hearing. Changes in the amounts shall also be adopted by resolution following a public hearing, except changes resulting solely from inflationary cost impacts. Inflationary cost impacts shall be measured and calculated each January by the city council based upon an average of the Portland and Federal Consumer Price Index changes and charged accordingly by resolution. [Ord. 91-208-O § 4].
18.15.050 Methodology.
A. The methodology used to establish a reimbursement fee shall consider the cost of then-existing facilities, prior contributions by then-existing users, the value of unused capacity, rate-making principles employed to finance publicly owned capital improvement, and other relevant factors. The methodology shall promote the objective that future system users shall contribute an equitable share of the cost of then-existing facilities.
B. The methodology used to establish the public improvement charge shall consider the cost of projected capital improvements needed to increase the capacity of the systems to which the fee is related and shall provide for a credit against the public improvement charge for the construction of any qualified public improvement.
C. The methodology shall also provide for a credit as authorized in RRMC 18.15.090.
D. Except when authorized in the methodology adopted under subsection (A) of this section, the fees required by this chapter which are assessed or collected as part of a local improvement district or a charge in lieu of a local improvement district assessment, or the cost of complying with requirements or conditions imposed by a land use decision, are separate from and in addition to the systems development charge and shall not be used as a credit against such charge.
E. The methodologies used to establish the systems development charge shall be adopted by resolution of the city council following a public hearing. The specific systems development charge may be adopted and amended concurrent with the establishment or revision of the systems development charge methodology. The city council shall review the methodologies established under this section every three years, and shall make amendments, if and as needed.
F. The formulas and calculations used to compute specific systems development charges are based upon averages and typical conditions. Whenever the impact of individual developments present special or unique situations such that the calculated fee is grossly disproportionate to the actual impact of the development, alternative fee calculations may be approved or required by the city council. All data submitted to support alternate calculations under this provision shall be site specific. Major or unique developments may require special analyses to determine alternatives to the standard methodology.
G. When an appeal is filed challenging the methodology adopted by the city council, the city planner shall prepare a written report and recommendation within 20 working days of receipt for presentation to the city council at its next regular meeting. The council shall by resolution approve, modify or reject the report and recommendation of the city planner or may adopt a revised methodology by resolution, if required. Any legal action contesting the city council’s decision in the appeal shall be filed within 60 days of the city council’s decision. [Ord. 93-232-O § 4; Ord. 91-208-O § 5].
18.15.060 Compliance with state law.
A. The revenues received from the systems development charges shall be budgeted and expended as provided by state law. Such revenues and expenditures shall be accounted for as required by state law. Their reporting shall be included in the city’s comprehensive annual financial report required by ORS Chapter 294.
B. The capital improvement plan required by state law as the basis for expending the public improvement charge component of systems development charge revenues shall be the Rogue River five-year capital improvement plan (CIP), the city’s comprehensive plan, and the capital improvement plan of any other governmental entity with which the city has a cooperative agreement for the financing of commonly used public improvements by the collection of systems development charges, provided the plan is based on methodologies conforming with state law and is consistent with the city’s capital improvement plan and the city’s comprehensive plan. [Ord. 93-232-O § 5; Ord. 91-208-O § 6].
18.15.070 Collection of charges.
A. The systems development charge is payable upon, and as a condition of, issuance of:
1. A building permit;
2. A permit for a development not requiring the issuance of a building permit; or
3. A permit or other authorization to connect to the water, sanitary sewer or storm drainage systems.
B. If development is commenced or connection is made to the water system, sanitary sewer system or storm sewer system without an appropriate permit, the systems development charge is immediately payable upon the earliest date that a permit was required, and it will be unlawful for anyone to continue with the construction or use constituting a development until the charge has been paid or payment secured to the satisfaction of the city recorder.
C. Any and all persons causing a development or making application for the needed permit, or otherwise responsible for the development, are jointly and severally obligated to pay the charge, and the city may collect the said charge from any of them. The city shall not issue any permit or allow connections described in subsection (A) of this section until the charge has been paid in full or until an adequately secured arrangement for its payment has been made, within the limits prescribed by resolution of the city council.
D. A systems development charge shall be paid in cash when due, or in lieu thereof, the city may accept the delivery of a written agreement to pay if the written agreement is secured by collateral satisfactory to the city recorder or his/her designee. The collateral may consist of mortgage or trust deeds of real property, or an agreement secured by surety bond issued by a corporation licensed by a state law to give such undertakings, or by cash deposit, letter of credit, or other like security acceptable to the city recorder or his/her designee.
E. A person may apply to pay the systems development charge in installments to the extent provided by state law. [Ord. 93-232-O § 6; Ord. 91-208-O § 7].
18.15.080 Exemptions.
The conditions under which all or part of the systems development charges imposed in RRMC 18.15.020 may be waived are as follows:
A. Additions to single-family dwellings that do not constitute the addition of a dwelling unit, as defined by the Uniform Building Code, are exempt from all portions of the systems development charge.
B. An alteration, addition, replacement or change in use that does not increase the parcel’s or structure’s use of the public improvement facility is exempt from all portions of the systems development charge.
C. A project financed by city revenues is exempt from all portions of the systems development charge. [Ord. 91-208-O § 8].
18.15.090 Credits.
A. The limitations on the use of credits contained in this section shall not apply when credits are otherwise given under this chapter. A credit shall be given for the cost of a qualified public improvement associated with a development. If a qualified public improvement is located partially on and partially off the parcel of land that is the subject of the approval, the credit shall be given only for the cost of the portion of the improvement not attributable wholly to the development. The credit provided for by this section shall be only for the public improvement charge charged for the type of improvement being constructed and shall not exceed the public improvement charge even if the cost of the capital improvement exceeds the applicable public improvement charge.
B. Applying the methodology adopted by resolution, the city shall grant a credit against the public improvement charge, the reimbursement fee, or both, for a capital improvement constructed as part of the development that reduces the development’s demand upon existing capital improvement or the need for future capital improvements or that would otherwise have to be provided at city expense under then-existing city council policies.
C. Credits for additions to dedicated park land, or development of planned improvements on dedicated park land, shall only be granted by the city upon recommendation by the parks committee for land or park development projects identified in the capital improvement plan referred to in RRMC 18.15.020.
D. In situations where the amount of credit exceeds the amount of the system development charge, the excess credit is not transferable to another development. It may be transferred to another phase of the original development.
E. Credit shall not be transferable from one type of capital improvement to another. [Ord. 91-208-O § 9].
18.15.100 Appeal procedures.
A. As used in this section, “working day” means a day when the general offices of the city are open to transact business with the public.
B. A person aggrieved by a decision required or permitted to be made by the city planner, public works director, his/her designee under this chapter, or a person challenging the propriety of an expenditure of systems development charge revenues may appeal the decision or expenditure by filing a written request with the city recorder for consideration by the city council. Such appeal shall describe with particularity the decision or the expenditure from which the person appeals and shall comply with subsection (D) of this section.
C. An appeal of an expenditure must be filed within two years of the date of alleged improper expenditure. Appeals of any other decision must be filed within 10 working days of the date of the decision.
D. The appeal shall state:
1. The name and address of the appellant;
2. The nature of the determination being appealed;
3. The alleged reason the determination is incorrect; and
4. What the allegedly correct determination should be.
An appellant who fails to file such a statement within the time permitted waives his/her objections, and his/her appeal shall be dismissed.
E. Unless the appellant and the city agree to a longer period, an appeal shall be heard within 30 days of the receipt of the written appeal. At least 10 working days prior to the hearing, the city shall mail notice of the time and location thereof to the appellant.
F. The city council shall hear and determine the appeal on the basis of the appellant’s written statement and any additional evidence he/she deems appropriate. At the hearing, the appellant may present testimony and oral argument personally or by counsel. The city may present written or oral testimony at this same hearing. The rules of evidence as used by courts of law do not apply.
G. The appellant shall carry the burden of proving that the determination being appealed is incorrect and what the correct determination should be.
H. The city council shall render its decision within 15 working days after the hearing date and the decision of the city council shall be final. The decision shall be in writing, but written findings shall not be made or required unless the city council, in its discretion, elects to make findings for precedential purposes. Any legal action contesting the city council’s decision on the appeal shall be filled within 60 days of the council’s decision. [Ord. 91-208-O § 10].
18.15.110 Prohibited connection.
After the effective date of the ordinance codified in this chapter, no person may connect any premises for service, or cause the same to be connected, to any sanitary sewer, water system, or storm sewer system of the city unless the appropriate systems development charge has been paid or payment has been secured as provided in this chapter. [Ord. 93-232-O § 7; Ord. 91-208-O § 11].
18.15.120 Enforcement.
Any development connected to the city water, sewer or storm sewer system after the effective date of the ordinance codified in this chapter for which the fee due hereunder has not been paid as required or an adequate secured arrangement for this payment has been made, is subject to termination of service under the city’s utility disconnect policy. [Ord. 93-232-O § 8; Ord. 91-208-O § 12].