Chapter 13.25
SYSTEM DEVELOPMENT CHARGES
Sections:
13.25.040 System development charge established.
13.25.070 Compliance with state law.
13.25.080 Collection of charge.
13.25.120 Prohibited connection.
13.25.010 Definitions.
The following words and phrases, as used in this chapter, shall have the following definitions and meanings:
A. “Capital improvement(s)” means public facilities or assets used for any of the following:
1. Water supply, treatment and distribution;
2. Sanitary sewers, including collection, transmission and treatment;
3. Storm sewers, including drainage and flood control;
4. 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;
5. Transportation system improvements.
B. “Development” means conducting a building or mining operation, or making a physical change in the use or appearance of a structure or land, which increases the usage of any capital improvements or which creates the need for additional capital improvements.
C. “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.
D. “Qualified public improvements” means a capital improvement that is:
1. Required as a condition of development approval;
2. Identified in the plan adopted pursuant to GMC 13.25.070;
3. Not located on or contiguous to a parcel of land that is the subject of the development approval;
4. Located in whole or in part on or contiguous to property that is the subject of development approval and required to be built larger or with greater capacity than is necessary for the particular development project to which the improvement fee is related.
E. “Reimbursement fee” means a fee for costs associated with capital improvements constructed or under construction on the date the fee is adopted pursuant to GMC 13.25.040, for which the local government determines that capacity exists.
F. “Staff” means the director of public works, administrator or their designees.
G. “System development charge” means a reimbursement fee, an improvement fee or a combination thereof assessed or collected at any of the times specified in GMC 13.25.080. It shall not include connection or hook-up fees for sanitary sewers, storm drains or water lines. Such fees are designed by the city only to reimburse the city for actual or average costs for such connections. [Ord. 288 § 1, 2006; Ord. 183 § 1, 1991.]
13.25.020 Purpose.
The purpose of the system development charge is to impose an equitable share of the public costs of capital improvements upon those developments that create the need for or increase the demands on capital improvements. [Ord. 183 § 2, 1991.]
13.25.030 Scope.
The system 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 system development charge is to be considered in the nature of a charge for services rendered or facilities made available, or a charge for future services to be rendered on facilities to be made available in the future. [Ord. 183 § 3, 1991.]
13.25.040 System development charge established.
A. Unless otherwise exempted by the provisions of this chapter or other local or state law, a system development charge is hereby imposed upon all new development within the city, and all new development outside the boundary of the city that connects to or otherwise uses the sanitary sewer system, storm drainage system, water system, transportation system or park system of the city.
B. System development charges for each type of capital improvement may be created through application of the methodologies described in GMC 13.25.060. The amounts of each system development charge shall be adopted initially by resolution. Changes in the amounts shall also be adopted by resolution, including those resulting from a change in the cost of materials, labor or real property applied to projects or project capacity as set forth on the list adopted pursuant to GMC 13.25.070, or inflationary cost impacts. Inflationary cost impacts shall be measured and calculated each January by staff and approved by resolution. Such calculations will be based upon charges in the Engineering News Records Construction Index (ENR Index) for Seattle, Washington. [Ord. 288 § 2, 2006; Ord. 183 § 4, 1991.]
13.25.050 Notice.
A. The city shall maintain a list of persons who have made a written request for notification prior to adoption or amendment of a methodology for any system development charge.
B. Written notice must be mailed to persons on the list at least 90 days prior to the first hearing to establish or modify a system development charge, and the methodology supporting the system development charge must be available at least 60 days prior to the first hearing.
C. The failure of a person on the list to receive a notice that was mailed does not invalidate the action of the city.
D. Staff may periodically delete names from the list, but at least 30 days prior to removing a name from the list the person whose name is to be deleted shall be notified that a new written request for notification is required if the person wishes to remain on the notification list.
E. Legal action intended to contest the methodology used for calculating a system development charge may not be filed after 60 days following adoption or modification of the system development charge ordinance or resolution. A person shall request judicial review of the methodology used for calculating a system development charge only as provided in ORS 34.010 through 34.100. [Ord. 288 § 3, 2006; Ord. 183 § 5, 1991.]
13.25.060 Methodology.
A. The methodology used to establish a reimbursement fee shall consider prior contributions by then-existing users, the value of unused capacity available to future users, rate-making principles employed to finance publicly owned capital improvements, grants, gifts and other relevant factors identified by the director of public works and/or administrator. The methodology shall promote the objective that future system users shall contribute an equitable share of the cost of existing facilities.
B. The methodology used to establish the public improvement charge shall consider the cost of projected capital improvements identified in the plan pursuant to GMC 13.25.070 that are 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 may also provide for a credit as authorized in GMC 13.25.100.
D. Except when authorized in the methodology adopted under 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 system development charge and shall not be used as a credit against such charge.
E. The methodologies used to establish the system development charge shall be adopted by resolution. The specific system development charge may be adopted and amended concurrent with the establishment or revision of the system development charge methodology. The director of public works and administrator shall review the methodologies established under this section periodically and shall recommend amendments, if and as needed, to the council for its action. [Ord. 288 §§ 3, 4, 2006; Ord. 183 § 6, 1991.]
13.25.070 Compliance with state law.
A. The revenues received from the system 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 law as the basis for expending the public improvement charge component of system development charge revenues shall be adopted concurrently with adoption of each system development charge. [Ord. 288 §§ 3, 5, 2006; Ord. 183 § 7, 1991.]
13.25.080 Collection of charge.
A. The system development charge is payable upon issuance of:
1. A building permit;
2. A development permit for development not requiring the issuance of a building permit; or
3. A permit 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, street system, park system or storm sewer system without an appropriate permit, the system development charge is immediately payable upon the earliest date that a permit was required.
C. The city recorder or his/her designee shall collect the system development charges from the person responsible for or receiving the benefit of the development. The city recorder or his/her designee 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 provision for installment payments has been made within the limits prescribed by resolution.
D. The obligation to pay the unpaid system development charge and interest thereon shall be secured by property, bond, deposits, letter of credit or other security acceptable to the city recorder.
E. The person paying the system development charge in installments may apply for bonding of the payments as provided by resolution of the city council. [Ord. 288 §§ 3, 6, 2006; Ord. 183 § 8, 1991.]
13.25.090 Exemptions.
The following are exempt from the system development charge imposed in GMC 13.25.040.
A. Development which is being financed by city funds. [Ord. 311 §§ 1, 2, 2008; Ord. 288 § 3, 2006; Ord. 183 § 9, 1991.]
13.25.100 Credits.
A. As used in this section and in the definition of “qualified public improvements” in GMC 13.25.010, the word “contiguous” means property that abuts.
B. When development occurs that must pay a system development charge under GMC 13.25.040, the system development charge for the existing use or the use two years prior to issuance of the new permit shall be calculated and if it is less than the systems development charge for the proposed use, the difference between the system development charge for the existing use and the proposed use shall be the system development charge required under GMC 13.25.040. If the change in use results in the systems development charge for the proposed use being less than the system development charge for the existing use, no system development charge shall be required and a credit shall be given for the specific system development charge.
C. Credit allowed in this subsection is in addition to any credit allowed under subsection B of this section. A credit shall be given for the cost of a qualified public improvement that is required as a condition of development approval, identified in the capital improvement plan, and is either:
1. Not located on or contiguous to property that is the subject of the development approval; or
2. Located in whole or in part on or contiguous to property that is the subject of development approval and required to be built larger or with greater capacity than is necessary for the particular development.
D. When establishing the methodology, staff may provide for a credit against the public improvement charge, the reimbursement fee, or both, for a qualified public improvement.
E. Upon change of use or land action, a credit shall be given to account for pre-existing use using the most recent methodology.
F. Credit shall not be transferable from one type of development charge or fee to another. [Ord. 288 §§ 3, 7, 2006; Ord. 183 § 10, 1991.]
13.25.110 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 disagreeing with a decision on the amount of the system development charge, an expenditure of funds collected under this chapter, or the methodology used to determine the system development amounts, may file an appeal by complying with subsections C and D of this section.
C. An appeal of an expenditure must be filed within two years of the date of alleged improper expenditure. An appeal contesting the methodology used for calculating a system development charge must be filed within 60 days of the council adoption or modification of the system development ordinance or resolution. Appeals of the calculation 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 reason the appellant believes the determination is incorrect; and
4. What the appellant believes the 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 considered by staff within 10 working days of the receipt of the written appeal. A written response must be given to the appellant within this time period.
F. The appellant shall have 10 days after receipt of staff’s decision to appeal this decision to staff. An appellant who fails to file such a statement with staff within 10 working days shall waive his/her objections and staff’s decision shall be final.
G. The council shall consider an appeal filed under subsection C of this section within 20 working days. The appellant shall be notified of the council hearing date 10 working days prior to the council hearing. By council motion, the report and recommendations of staff shall be approved, modified or rejected. Council decision shall be final. Any legal action contesting the council’s decision shall be filed within 60 days of the council’s decision. [Ord. 288 § §3, 8, 2006; Ord. 183 § 11, 1991.]
13.25.120 Prohibited connection.
No person may connect to the sanitary sewer/water system or storm sewer system of the city unless the appropriate system development charge has been paid or the installment payment method has been applied for and approved. [Ord. 288 § 3, 2006; Ord. 183 § 12, 1991.]