Chapter 3.05
PUBLIC IMPROVEMENTS – SPECIAL ASSESSMENTS – ASSESSMENT LIENS

Sections:

3.05.010    Initiation of proceedings and report on proposed project.

3.05.020    Council action on report.

3.05.030    Resolution and notice of hearing.

3.05.040    Manner of doing work.

3.05.050    Hearing.

3.05.060    Call for bids.

3.05.070    Assessment ordinance.

3.05.080    Method of assessment and alternative methods of financing.

3.05.090    Remedies.

3.05.100    Notice of assessment.

3.05.110    Lien records and foreclosure proceedings.

3.05.120    Errors in assessment calculations.

3.05.130    Deficit assessment.

3.05.140    Rebates.

3.05.150    Abandonment of proceedings.

3.05.160    Curative provisions.

3.05.170    Reassessment.

3.05.010 Initiation of proceedings and report on proposed project.

Whenever the council deems it necessary, upon its own motion or upon the petition of the owners of one-half of the property to benefit specially from the improvement, to make any street, sewer, sidewalk, drain or other public improvement to be paid for in whole or in part by special assessment according to benefits, then the council shall by motion direct an appropriate city employee or agent to make a survey and written report for the project and file it with the city administrator or designee. Unless the council directs otherwise, the report shall contain the following matters:

(1) A map or plat showing the general nature, location and extent of the proposed improvement and the land to be assessed for the payment of any part of the cost;

(2) Plans, specifications and estimates of the work to be done. However, when the proposed project is to be carried out in cooperation with any other governmental agency, the report may adopt the plans, specifications and estimates of the agency;

(3) An estimate of the probable cost of the improvement, including any legal, administrative and engineering costs attributable to it;

(4) An estimate of the unit cost of the improvement to the specially benefited properties;

(5) A recommendation as to the method of assessment to be used to arrive at a fair apportionment of the whole or any portion of the cost of the improvement to the properties specially benefited;

(6) The description and assessed value of each lot, parcel of land or portion thereof to be specially benefited by the improvement, with the names of the record owners and, when readily available, the names of the contract purchasers;

(7) A statement of outstanding assessments against property to be assessed. (Ord. 1980-7 § 1, 1980)

3.05.020 Council action on report.

After the report has been filed with the city administrator or designee, the council may by motion approve the report; modify the report and approve it as modified; require additional or different information for such improvement; or it may abandon the improvement. (Ord. 1980-7 § 2, 1980)

3.05.030 Resolution and notice of hearing.

After the council has approved the report as submitted or modified, the council shall by resolution declare its intention to make the improvement, provide the manner and method of carrying out the improvement, and direct the city administrator or designee to give notice of the improvement by posting the notice at the City Hall and by sending a copy of the notice by registered or certified mail to the owners of property to be assessed for the costs of the improvement. The notice shall be mailed and posted at least 10 days prior to the public hearing on the proposed improvement. Said notice shall contain the following:

(1) A statement describing the proposed improvements, the area to be served and the intention of the council to make such an improvement;

(2) That a written report on the improvements is on file in the office of the city administrator or designee and is subject to public examination;

(3) The date, time, and place of the public hearing on the proposed improvement;

(4) The procedures for presenting objections and remonstrances;

(5) The estimated total cost of that portion of the project to be financed by assessments to benefited properties. (Ord. 283-2005 § 1; Ord. 1980-7 § 3, 1980)

3.05.040 Manner of doing work.

The council may provide in the improvement resolution that the construction work may be done in whole or in part by the city, by a contract, by any other governmental agency, or by any combination thereof. (Ord. 1980-7 § 4, 1980)

3.05.050 Hearing.

If, prior to or during the hearing, written objections are received from owners representing two-thirds of the property to be assessed, the improvement proceedings shall be abandoned and shall not be subject to a further hearing for at least six months, unless the improvement is a sidewalk or an improvement unanimously declared by the council to be needed at once because of an emergency. If remonstrances are less than the amount required to suspend the proposed improvement, the council may by motion at the time of the hearing or within 60 days thereafter order the improvement carried out in accordance with the resolution or abandon the improvement. (Ord. 283-2005 § 2; Ord. 1980-7 § 5, 1980)

3.05.060 Call for bids.

The council may direct the city administrator or designee to advertise for bids for construction of all or any part of the improvement project on the basis of the council-approved report and before the passage of the resolution, or after the passage of the resolution and before the public hearing on the proposed improvement, or at any time after the public hearing. However, no contract shall be let until after the public hearing has been held to hear remonstrances and oral objections to the proposed improvement. If any part of the improvement work is to be done under contract bids, the procedures contained in, or in an ordinance adopted under, ORS 279.011 to 279.053 shall apply. (Ord. 1980-7 § 6, 1980)

3.05.070 Assessment ordinance.

If the council determines that the local improvement shall be made, when the estimated cost is ascertained on the basis of the contract award or city departmental cost, or after the work is done and the cost has been actually determined, the council shall determine whether the property benefited shall bear all or a portion of the cost. The city administrator or designee or other person designated by the council shall prepare the proposed assessment to the lots within the assessment district and file it in the appropriate city office. Notice of the proposed assessment shall be mailed or personally delivered to the owner of each lot proposed to be assessed. The notice shall state the amount of assessment proposed on that property and the date, by which time objections shall be filed with the city administrator or designee. Any objection shall state the grounds thereof. The council shall consider objections and may adopt, correct, modify or revise the proposed assessments and determine the amount of assessment to be charged against each lot within the district, according to the special and peculiar benefits accruing to each lot from the improvement, and shall by ordinance spread the assessments. (Ord. 1980-7 § 7, 1980)

3.05.080 Method of assessment and alternative methods of financing.

(1) The council, in adopting a method of assessment of the costs of the improvement, may:

(a) Use any just and reasonable method of determining the extent of any improvement district consistent with the benefits derived;

(b) Use any method of apportioning the sum to be assessed that is just and reasonable among the properties determined to be specially benefited;

(c) Authorize payment by the city of all or any part of the cost of any improvement when, in the opinion of the council, the topographical or physical conditions, or unusual or excessive public travel, or other character of the work involved warrants only a partial payment or no payment by the benefited property of the costs of the improvement.

(2) Nothing contained in this chapter shall preclude the council from using any other available means of financing improvements, including federal or state grants-in-aid, sewer charges or fees, revenue bonds, general obligation bonds, or other legal means of finance. If other means of financing improvements are used, the council may levy special assessments according to the benefits derived to cover any remaining part of the costs of the improvement. (Ord. 1980-7 § 8, 1980)

3.05.090 Remedies.

(1) Subject to the curative provisions of HMC 3.05.160 and the rights of the city to reassess as provided in HMC 3.05.170, proceedings for writs of review and suits in equity may be filed no later than 60 days after the passage by the council of the ordinance spreading the assessment, if the property owner has filed a written objection to the proposed assessment as provided in HMC 3.05.070.

(2) A property owner who has filed a written objection with the city administrator or designee, as required by HMC 3.05.070, shall have the right to apply for a writ of review based on the grounds that the council, in the exercise of judicial functions, has exercised the functions erroneously or arbitrarily, or has exceeded its jurisdiction, to the injury of some substantial right of the owner, if the facts supporting the ground have been specifically set forth in the written objection, as required in HMC 3.05.070.

(3) A property owner who has filed a written objection with the city administrator or designee, as required by HMC 3.05.070, may begin a suit for equitable relief based on a total lack of jurisdiction on the part of the city. If notice of the improvement has not been sent to the owner, and if the owner did not have actual knowledge of the proposed improvement prior to the hearing, then the owner may file written objections alleging lack of jurisdiction with the city administrator or designee within 30 days after receiving notice or knowledge of the improvement.

(4) No provision of this section shall be construed to lengthen any period of redemption, or to affect the running of statutes of limitation or an equitable defense, including laches. Any proceeding on a writ of review or suit in equity shall be abated if proceedings are initiated and pursued by the council to remedy or cure the alleged errors or defects. (Ord. 1980-7 § 9, 1980)

3.05.100 Notice of assessment.

Within 10 days after the ordinance levying assessments has been passed, the city administrator or designee shall send by registered or certified mail a notice of assessment to the owner of the assessed property. The notice of assessment shall include the date of the assessment ordinance and shall state that, upon the failure of the owner of the property assessed to make application to pay the assessment in installments within 10 days, or upon failure of the owner to pay the assessment in full within 30 days from the date of the assessment ordinance, interest will begin to run on the assessment and the property assessed will be subject to foreclosure. The notice shall include a description of the property assessed, the name of the owner of the property and the amount of each assessment. (Ord. 283-2005 § 3; Ord. 1980-7 § 10, 1980)

3.05.110 Lien records and foreclosure proceedings.

After passage of the assessment ordinance by the council, the city administrator or designee shall enter in the docket of city liens a statement of the amount assessed upon each particular lot, parcel of land or portion thereof, together with a description of the improvement, the name of the owners and the date of the assessment ordinance. Upon entry in the lien docket, the amount entered shall become a lien upon the lots, parcels of land or portions thereof which have been assessed for the improvement. Assessment liens of the city shall be superior and prior to all other liens or encumbrances on property, as permitted by state law. Interest shall be charged at such rate per annum as the city council of the city may provide on all amounts not paid within 30 days from the date of the assessment ordinance. After expiration of 30 days from the date of the assessment ordinance, the city may proceed to foreclose or enforce collection of the assessment liens in the manner provided by state law. However, the city may enter a bid for the property being offered at a foreclosure sale, which shall be prior to all bids except those made by persons who would be entitled under state law to redeem such property. (Ord. 1982-10 §§ 1, 2, 1982; Ord. 1980-21 § 1, 1980; Ord. 1980-7 § 11, 1980)

3.05.120 Errors in assessment calculations.

Claimed errors in the calculation of assessments shall be called to the attention of the city administrator or designee, who shall determine whether there has been an error in fact. If the city administrator or designee finds that there has been an error in fact, the city administrator or designee shall recommend to the council an amendment to the assessment ordinance to correct the error. Upon enactment of the amendment, the city administrator or designee shall make the necessary correction in the docket of city liens and send a correct notice of assessment by registered or certified mail. (Ord. 1980-7 § 12, 1980)

3.05.130 Deficit assessment.

If an assessment is made before the total cost of the improvement is ascertained, and if it is found that the amount of the assessment is insufficient to defray the expenses of the improvement, the council may by motion declare the deficit and prepare a proposed deficit assessment. The council shall set a time for a hearing of objections to the deficit assessment and shall direct the city administrator or designee to give notice according to the provisions in HMC 3.05.030. After the hearing, the council shall make an equitable deficit assessment by ordinance, which shall be entered in the docket of city liens as provided by this chapter. Notices of the deficit assessment shall be published and mailed, and the collection of the assessment shall be made, in accordance with HMC 3.05.100 and 3.05.110. (Ord. 1980-7 § 13, 1980)

3.05.140 Rebates.

If, upon the completion of the improvement project, it is found that the assessment previously levied upon any property is more than sufficient to pay the costs of the improvements, the council shall ascertain and declare the excess by ordinance and the excess amounts shall be entered on the lien docket as a credit upon the appropriate assessment. If an assessment has been paid, the person who paid it, or his legal representative, shall be entitled to payment of the rebate credit or the portion which exceeds the amount unpaid on the original assessment. (Ord. 1980-7 § 14, 1980)

3.05.150 Abandonment of proceedings.

The council may abandon and rescind proceedings for improvements made under this chapter at any time prior to the final completion of the improvements. If liens have been assessed upon any property under such procedure, they shall be canceled; and any payments made on the assessments shall be refunded to the person paying them, his assigns or legal representatives. (Ord. 1980-7 § 15, 1980)

3.05.160 Curative provisions.

(1) No improvement assessment shall be rendered invalid by reason of:

(a) A failure of the report to contain all of the information required by HMC 3.05.010;

(b) A failure to have all of the information required to be in the improvement resolution, the assessment ordinance, the lien docket or notices required to be published and mailed;

(c) Failure to list the name of, or mail notice to, the owner of any property, as required by this chapter;

(d) Any other error, mistake, delay, omission, irregularity or other act, jurisdictional or otherwise, in any of the proceedings or steps specified, unless it appears that the assessment is unfair or unjust in its effect upon the person complaining.

(2) The council shall have the power and authority to remedy and correct all such matters by suitable action and proceedings. (Ord. 1980-7 § 16, 1980)

3.05.170 Reassessment.

Whenever an assessment, deficit assessment or reassessment for an improvement which has been made by the city has been set aside, annulled, declared or rendered void, or its enforcement restrained by any court of this state, or any federal court having jurisdiction, or when the council is in doubt as to the validity of the assessment, deficit assessment or reassessment, or any part thereof, then the council may make a reassessment in the manner provided by state law. (Ord. 1980-7 § 17, 1980)