Chapter 3.12 LOCAL IMPROVEMENTS PROCEDURE

The purpose of this chapter is to govern the creation of local improvements and the payment of special benefit assessments. The Bancroft Bonding Act only applies when this chapter does not have a provision for dealing with the subject matter. For purposes of this chapter, the following words and phrases shall have the meanings ascribed to them by this section:

“Bancroft Bonding Act” means as described in the Oregon Revised Statutes, Chapter 223 now enacted or as amended hereafter.

“Benefitted property” means all property specially benefitted by the local improvement portion of a project, the relative extent of such benefit to be determined by any just and reasonable method of apportionment of the assessable cost of the project between the properties determined to be specially benefitted therefrom.

“City” means the Oregon municipal corporation of Sutherlin, and “council” means the duly elected city council of the city of Sutherlin.

“Project” means any capital construction undertaken by the city involving a local improvement, which may include, but is not limited to a street, alley, sidewalk, street light, underground utility, sanitary or storm sewerage facilities, water utility facilities, off-street parking facility, flood control facility, park or neighborhood recreation facility.

“Local improvement” or “improvement” means that part of a project undertaken by the city which provides a special benefit to specific real property or rectifies a problem caused by specific real property where all or part of the costs are borne by local assessments levied against the property benefitted by the local improvement portion of a project.

“Local improvement district” means a geographic area designated by council in which the parcels of real property within the area receive special benefit from a local improvement constructed pursuant to this chapter.

“Remonstrance” means the written objection to a proposed local improvement district or the assessment levied thereon, to be made in a manner hereinafter provided.

“Total assessable cost” means that portion of the local improvement cost which is to be apportioned and assessed as a single assessment against each benefitted property.

“Total project cost” means the total cost of constructing a project involving a local improvement, including, but not limited to, engineering, interest on warrants, legal costs including advertising, providing notice to benefitted property owners and the city’s indirect or overhead costs, and shall include all assessable costs of the local improvement.

“Undeveloped real property” means a single parcel of land or several contiguous parcels of land in single ownership with an area free of permanent structures capable of being divided into three or more developable lots. (Ord. 868 § 1.005, 1997)

3.12.020 Requests for council consideration of a proposed project involving a local improvement.

A. An owner of real property which could be benefitted by a local improvement to be constructed by the city and financed entirely, or in part, by assessment against benefitted property, may request the council consider such improvement by filing a written request therefor with the city recorder who shall forward the request to the city manager for a recommendation on whether or not the requested improvement should be made. After reviewing the requested improvement, the city manager shall submit the recommendation to the city recorder, along with a report meeting the requirements of Section 3.12.030 which will be forwarded to the council for preliminary consideration. Upon receipt of the city manager’s preliminary report and recommendation, the city recorder shall place the matter on the next available council agenda and notify the requesting property owner of the date and time council will consider the requested improvement; provided, the following conditions are met or satisfactory arrangements have been made with the city to satisfy such conditions:

1. The property owner requesting the local improvement is current on any and all obligations to the city;

2. If any property to be benefitted by the proposed local improvement is zoned other than single-family residential, the owner of such property is current on any and all financial obligations related to the real property to be benefitted by the proposed improvement and due any other public agency or financial institution;

3. If the property to be benefitted by the proposed improvement is undeveloped residentially zoned property, the estimated assessment, which will be due the city from the requesting property owner as a result of the improvement, does not exceed the property’s assessed value as determined by the Douglas County assessor prior to the improvement being constructed;

4. If the improvement being requested would benefit real property in addition to that owned by the person requesting the improvement, the requesting property owner has presented to the city recorder, written verification from at least fifty (50) percent of the owners of other benefitted properties that they are not opposed to the proposed improvement or the subsequent proportionate assessment;

5. If the requested improvement would benefit only real property owned by the person requesting the improvement and the owner agrees in writing to pay cash or to make application to pay the cost of the improvement in installments as provided by the Bancroft Bonding Act and this chapter; agrees in writing to waive the right of service and publication of the notices required by this chapter; and consents, in writing, to the assessment of his property, council may, without further notice or hearing, form the local improvement district and proceed as provided in this chapter.

B. The city manager may request council consideration of a project involving a local improvement to be constructed by the city and financed entirely, or in part, by assessments against real property which would be benefitted by such improvement upon finding that the property owner(s) who would bear at least fifty (50) percent of the estimated total assessable cost of the improvement are not opposed to the proposed improvement; that the proposed improvement is necessary for the public health and safety or for the economical and orderly development of the area of the city most affected by the proposed improvement; or that the initial cost of a water system improvement shall be paid by the property owners under a contract with the city that provides for repayment to the property owners as others connect their property to the water system improvement on terms and conditions set by the city. The city manager’s request, along with the report required by Section 3.12.030 shall be filed with the city recorder who shall place the matter on the next available council agenda, provided that the conditions set out in subsection (A)(3) and (4) of this section are met.

C. The council, by its own motion, may initiate consideration of a project involving a local improvement to be constructed by the city and financed entirely, or in part, by assessments against properties which would be benefitted by the improvement by preliminarily defining the proposed project, the project boundaries, the local improvement portion of the project and the local improvement district boundaries; directing the city manager to prepare and file the report required by Section 3.12.030; and directing the city recorder upon receipt of such report from the city manager, to schedule the matter on the next available council agenda. (Ord. 868 § 1.010, 1997)

3.12.030 City manager’s preliminary report and recommendation on a proposed project involving a local improvement.

A. Before any request for a project involving a local improvement is submitted for council consideration under Section 3.12.040, the city manager shall file a report with the city recorder providing the following information:

1. A map showing the general nature, location and extent of the proposed project and the local improvement portion thereof, and if the improvement involves multiple properties owned by more than one owner, the contemplated local improvement district boundaries;

2. The name and address of the owner, and the tax lot and account number and a legal description, of each parcel of property which would be benefitted by, and assessed for, the proposed improvement;

3. A preliminary estimate of the total project cost, which shall include a breakdown showing the estimated total assessable cost and its apportionment to each benefitted property, and the estimated amount, if any, which may be borne by the city and others; and

4. The estimated date work on the proposed project could begin and the estimated date by which the project, and the local improvement portion thereof, could be completed.

B. Upon receipt of the city manager’s report prepared in accordance with subsection A of this section, the city recorder shall schedule the matter on the next available council agenda. (Ord. 868 § 1.020, 1997)

3.12.040 Council’s preliminary consideration of proposed projects involving local improvements.

A. At the designated council meeting, the council shall consider requests for proposed projects involving local improvements submitted under Section 3.12.020.

B. After considering the city manager’s preliminary report and recommendation, the council shall determine if it is in the best interest of the city to proceed with the proposed project and local improvement. The council, by its own motion, may:

1. Grant preliminary approval of the proposed project involving a local improvement, and pursue formation of the local improvement district by:

a. Directing the city manager to call for bids on the proposed project, and upon opening of the bids, file a report with the city recorder in accordance with Section 3.12.050, and

b. Directing the city recorder, upon receipt of the city manager’s report, to schedule, and give notice of, in accordance with Section 3.12.060 of the public hearing to be held pursuant to Section 3.12.070; or

2. Modify the proposed project by:

a. Directing the city manager to modify the preliminary design and engineering of the proposed project and/or the local improvement portion thereof and submit a report thereon to the city recorder in accordance with Section 3.12.030, and

b. Directing the city recorder, after receiving the city manager’s report on the modifications, to schedule council consideration of the matter improvement on the next available council agenda, and

c. If council grants preliminary approval of the modifications, it shall proceed as outlined in subsection (B)(1) of this section; or

3. Deny the requested project or local improvement. (Ord. 868 § 1.030, 1997)

3.12.050 City manager’s report on bids received for construction of a proposed project involving a local improvement—Recommendation on award of a contract.

A. After receiving council direction to proceed with a proposed project approved under Section 3.12.040(B)(1), the city manager will cause the bid documents to be prepared and call for bids on the proposed project involving a local improvement. After reviewing all bids received on the construction of the proposed project, the city manager shall file a report with the city recorder providing the following information:

1. The name, address and bid amount of each bidder and the engineer’s estimate on the construction cost of the proposed project;

2. A recommendation on which bidder, if any, should be awarded the bid for construction of the proposed project, and if so awarded, based on such bid:

a. The estimated total project cost and the recommended maximum total assessable cost,

b. The method of calculating the assessments for the proposed improvement in accordance with Sections 3.12.080 and 3.12.090,

c. What amount, if any, of the estimated total project cost could be borne by the city and others, and

d. The names and addresses of the owners of each benefitted property and the estimated maximum total assessment for each property.

B. The city recorder shall forward the city manager’s report prepared in accordance with subsection A of this section, along with the report required from the city recorder pursuant to Section 3.12.060(C), to the council prior to the public hearing held in accordance with Section 3.12.070. (Ord. 868 § 1.040, 1997)

3.12.060 Notice of public hearing on the possible formation of a local improvement district—Estimated assessments to be levied.

A. Upon receipt of the city manager’s report and recommendation presented in accordance with Section 3.12.050, the city recorder shall set a date and time for the public hearing to be held pursuant to Section 3.12.070. At least ten days prior to the date scheduled for the hearing, the city recorder shall post notice of the hearing at City Hall, cause to have such notice published in a newspaper of general circulation in the city, and by certified mail, send such notice to all owners of property which could be benefitted by, and assessed for, the proposed local improvement. Such notice shall state:

1. A general description of the proposed project, the improvement portion thereof and the local improvement district; the date construction could begin and the estimated date the project and local improvement would be completed;

2. Based on the bid being recommended for award: the estimated total project cost; the estimated maximum total assessable cost therefrom which would be levied against each benefitted property without further notice (provided, the actual total assessable cost of the improvement, as determined upon completion of the local improvement portion of the project, does not exceed the estimated maximum total assessable cost based upon the contract awarded by ten percent or more); the method of calculating the assessments; and what amount, if any, of the estimated total project cost may be borne by the city and others; and

3. A list of each parcel of benefitted property identified by tax account and tax lot numbers; and the names and addresses of the owners of each such parcel according to the Douglas County assessor’s records;

4. That as required by the state tax limits, the assessments for the proposed improvement will be characterized by council as local improvements assessments, and that within sixty (60) days of this notice, any ten interested taxpayers who disagree with this characterization may file a petition with the Oregon Tax Court;

5. The date, time and location of the public hearing;

6. That assessments will not be levied until after the improvement has been completed and the actual total assessable cost has been ascertained; and should the actual total assessable cost exceed the estimated total assessable cost by ten percent or more, and council determines an increase in the estimated assessments is needed:

a. Council will hold an additional public hearing during which such possible increase in assessments will be considered prior to adoption of an ordinance levying the increased assessments,

b. At least ten days prior to the public hearing, the city recorder will notify each affected property owner, by certified mail, of the date, time and location of the hearing and that as benefitted property owners, they shall be given an opportunity to be heard during the public hearing, and

c. If, after the hearing, council elects to increase the assessments, the increased assessments will be calculated in a just and equitable amount and will not exceed the actual assessable cost of the improvement;

7. That when the assessments are levied by council, the assessments will become a lien against the benefitted properties if not paid in full within ten days after the effective date of the assessment ordinance; and that if the assessments are not so paid, interest on the unpaid balance will accrue as prescribed in the assessment ordinance until fully paid, unless payment is deferred under this chapter;

8. That owners of property to be assessed for the proposed local improvement are requested to attend the hearing and comment on the formation of the proposed local improvement district and the estimated maximum assessments; and

9. The manner in which such property owners may submit comments for council consideration before council adopts a resolution forming the proposed local improvement district and stating the estimated total assessable costs to be levied upon completion of the improvement.

B. The city recorder shall keep a record of the notice posted, published and mailed to the benefitted property owners and of receipts indicating delivery of such notice to the property owners.

C. The city recorder shall certify in a report to the council that notice of the hearing to be held pursuant to Section 3.12.070 was given as required. Such report shall include a copy of the notice. (Ord. 868 § 1.050, 1997)

3.12.070 Public hearing regarding adoption of a resolution forming a local improvement district—Estimated maximum assessable costs to be levied as assessments.

A. Prior to adopting a resolution forming a local improvement district, council shall hold a public hearing during which council shall consider the city recorder’s and the city manager’s reports, testimony and remonstrances given by all affected property owners and any other information council feels is relevant to determining if the proposed improvement is in the best interest of the city.

B. After considering all information and testimony presented during the hearing in accordance with subsection A of this section, the council may, subject to the limitations of the City Charter, by its own motion:

1. Adopt a resolution:

a. Stating the general nature of the improvement,

b. Forming the local improvement district and identifying its boundaries,

c. Identifying the benefitted property,

d. Stating the estimated maximum total assessable cost, based on the contract being recommended for award, apportioning that cost to each parcel of benefitted property and declaring that the estimated assessment for each benefitted property, or a lesser amount, shall be levied following completion of the proposed improvement without further notice to the benefitted property owners, unless, following completion of the improvement, the actual total assessable cost of the improvement exceeds the estimated total assessable cost stated in the resolution by ten percent or more, in which event, the council will hold an additional public hearing in accordance with Section 3.12.110 before adopting an ordinance levying assessments in an amount greater than the estimated assessments stated in the resolution forming the local improvement district,

e. Stating that the assessments to be levied against benefitted property shall not exceed actual cost of the improvement; are for bestowal of a special benefit to specific property or to rectify a problem caused by specific property; shall be imposed in a single assessment upon completion of the improvement and may be paid with interest over at least a ten year period at the property owner’s election; are characterized for purposes of the property tax limitation in Article XI of the Oregon Constitution as assessments for a local improvement, not subject to the constitutional limitations, and

f. Awarding a contract for the construction of the project involving a local improvement;

2. Reject all bids received on the project as originally proposed; modify the project or local improvement portion thereof; identify the contemplated boundaries of the modified local improvement district, if necessary; and direct the city manager and city recorder to proceed with the modified project under Sections 3.12.030 through 3.12.070;

3. Request additional information regarding the proposed project or local improvement portion thereof; delay further consideration on, and award of a contract for the construction of the proposed project and continue the public hearing on the proposed improvement portion of the project until such time as the additional information is provided; or

4. Reject all bids received on the proposed project, deny the requested project or improvement and abandon the proposed project. (Ord. 868 § 1.060, 1997)

3.12.080 Computation of estimated total assessable cost for local improvements.

The estimated total assessable cost of an improvement shall be computed by the city manager and shall include, but not be limited to, the estimated cost of constructing the improvement, engineering, interest on warrants, legal costs, including advertising and providing notice of assessments and an equitable portion of the city’s indirect overhead costs. (Ord. 868 § 1.070, 1997)

3.12.090 Apportionment and determination of the estimated total assessable cost for local improvements.

A. Whatever share, if any, of the estimated total assessable cost of a local improvement is to be borne by the city shall be deducted from the estimated total assessable cost before the estimated maximum assessments are apportioned and determined under this section. The city shall pay the cost of the following, providing funds are available and the improvement has appropriate priority:

1. Extra capacity constructed in the improvement to serve areas beyond the improvement district;

2. Storm sewers constructed as part of a street improvement within existing developed areas; and

3. Other apportioned costs as recommended by the city manager and the finance director.

B. The assessment for each benefitted property shall be calculated as follows:

1. Special costs or features of the improvement that benefit a particular property in a manner peculiar to the property shall, together with a share of the total assessable cost of the improvement, be assessed separately against that property.

2. Unless council directs otherwise, when it gives preliminary consideration to the local improvement portion of a proposed project under Section 3.12.040, the remainder of the total assessable cost shall be assessed against the property as follows:

a. Street Construction Assessments.

i. Property in residentially zoned local improvement districts may be assessed for a maximum of forty (40) feet of width of an improvement and for paving of a thickness determined by the city manager, on the basis of standards of the Oregon State Highway Division or the Asphalt Institute, to be adequate for residential traffic.

ii. Property in commercial or industrial zoned local improvement districts may be assessed for a maximum of forty-eight (48) feet width of an improvement and for paving of a thickness determined in the manner indicated in subsection (B)(2)(a)(i) of this section to be adequate for anticipated traffic.

iii. Property located within a local improvement district and zoned other than residential, commercial or industrial, may be assessed according to the predominant existing use of surrounding property.

iv. The cost for the assessable width for a street improvement shall be apportioned to each property on the basis of its front footage abutting the improvement, except that:

(A) If a residentially zoned property has a total front footage of less than sixty (60) feet on all abutting streets for which a street improvement assessment has been or is likely to be made, then that property shall be assessed as if its front footage on those streets were sixty (60) feet;

(B) A property in a single-family zoned local improvement district shall not be assessed for more than the abutting footage on two sides of the property.

v. Assessments for street construction shall include the cost of catch basins and piping from catch basins to storm sewers for properties specially benefitted by the basins.

b. Alley Improvement Assessments.

i. The cost for an alley improvement shall be apportioned to each property on the basis of its abutting footage, except that the portion of the alley improvement in the street right-of-way shall be borne by the city.

ii. Assessments for alley construction shall include the cost of catch basins and piping from catch basins to storm sewer mains for properties specially benefitted by the basins.

c. Sidewalk Assessments. Each property abutting a sidewalk shall be liable for a proportionate share of the cost of the sidewalk, based on the front footage of the property abutting the sidewalk. The front footage shall be ascertained in the same manner as for street improvement assessments. Where, however, council finds that the topography makes it unfeasible to construct a sidewalk on both sides of the street, the cost of the sidewalk on one side of the street may be assessed to both the properties abutting the sidewalk and the properties on the opposite side of the street from the sidewalk, on the basis of the front footage abutting or directly across the street from the sidewalk, or the costs may also be apportioned on the basis of the area of sidewalk or driveway apron, or both, abutting each property, whichever basis is determined by council to be more equitable.

d. Storm Sewer Assessments. The cost of storm sewer construction shall be borne in the following manner:

i. In a new or undeveloped subdivision or a new development, properties specially benefitted by the storm sewer shall bear the cost of the storm sewer up to and including the first thirty-six (36) inches of pipe diameter. For pipes larger than thirty-six (36) inches, the city may pay the difference in cost of the larger diameter pipe and the difference in cost of any trench width wider than forty-eight (48) inches, measured at the pipe zone, as required for such pipe.

ii. The cost to be assessed shall be apportioned to each property on the basis of its land area in the local improvement district.

e. Sanitary Sewer Assessments. The cost of sanitary sewer construction shall be borne in the following manner:

i. The properties specially benefitted by a sanitary sewer shall bear the cost of the sewer up to and including twelve (12) inches of pipe diameter. For pipes larger than twelve (12) inches, the city may pay the difference in cost of the larger diameter pipe and the difference in cost of any trench width wider than twenty-four (24) inches, measured at the pipe zone, as required for such pipe.

ii. The costs to be assessed shall be apportioned to each property on the basis of a cost per square foot of service area, determined by dividing the total assessable cost by the total service area. The service area for each parcel shall be that portion of the property lying within one hundred sixty (160) feet of the street right-of-way line or within one hundred sixty (160) feet of the side or rear lot lines when the sewer is located nearer such a line than the street line.

f. Water System Assessments. The cost of water system construction shall be borne in the following manner:

i. In a new or undeveloped subdivision or a new development, the property benefitted by the water system construction shall bear the cost of the water system and all appurtenances up to and including the first twelve (12) inches of pipe diameter. For pipes larger than twelve (12) inches the city may pay the difference in cost of the larger diameter pipe.

ii. The cost to be assessed shall be apportioned to each property on the basis of front footage abutting the improvement.

g. Off-Street Parking Facilities. The cost of off-street parking facilities construction shall be borne as follows:

One unit of benefit shall be considered to be one square foot of floor space located on the main or ground floor of a structure and each other square foot of floor space on other levels of the structure shall be counted as one-half of a unit. To the number of units on each property the following proximity factors or charges shall be applied:

i. Any distance of up to two hundred (200) feet from the nearest proposed parking facility: a factor of 1.25.

ii. Any distance two hundred one (201) feet to three hundred ninety-nine (399) feet from the nearest proposed parking facility: factor of 1.00.

iii. Any distance four hundred (400) feet and over from the nearest proposed parking facility: a factor of 0.75.

iv. Distances shall be measured from the closest part of the property to the closest part of the nearest proposed parking facility.

After the determination of gross number of square-foot unit benefits and the application of the appropriate proximity factor thereto, there shall be deducted therefrom the number of square feet on the property which is then used for parking spaces. The result will constitute the number of benefit units upon which the assessment shall be based.

h. Other Local Improvements. The cost of local improvements not identified in subsections (B)(2)(a) through (g) of this section shall be borne by the benefitted property as determined by council when granting preliminary approval of the proposed local improvement.

C. When properties to be assessed are in a planned unit development or a condominium development in which the common elements are jointly owned by those owning individual units within the planned unit development or condominium, the entire planned unit development or condominium shall be treated as a single property and its assessment shall be determined as provided in subsection B of this section. After determining the assessment for the entire planned unit development or condominium, the assessment shall then be apportioned and assessed against each individual unit of ownership within the planned unit development or condominium and that unit’s interest in the common elements according to the recorded declaration if it contains express language directing the apportionment of assessments for local improvements. Absent such express language, or absent a determination by council that only specific individual units within the planned unit development or condominium specially benefit from the improvement and should therefore bear the assessments, the assessments shall be apportioned and assessed among the individual units according to the individual unit’s proportionate interest in the common elements.

D. Without repeating the notice required by Section 3.12.060 prior to enactment of the ordinance levying the assessment required by Section 3.12.120, the proposed assessments for individual properties calculated under subsections B and C of this section may be adjusted by a written agreement between the affected property owners and the city; provided, there is no increase in the city’s share of improvement costs or in assessments to other properties within the improvement district whose owners were not a party to the agreement. (Ord. 868 § 1.080, 1997)

3.12.100 City manager’s report regarding completion of a local improvement—Determination of the actual total assessable cost.

A. Upon completion of a local improvement portion of a project authorized by this chapter, the city manager shall file a report with the city recorder which shall include the following information:

1. The date the improvement portion of the project was determined by the public works director to be complete;

2. The actual total assessable cost and how such cost compares with the estimated total assessable cost stated in the resolution;

3. The following information regarding how the actual total assessable cost should be paid:

a. If the actual total assessable cost of the improvement is equal to, or less than, the estimated total assessable cost as stated in the resolution, a breakdown showing:

i. The actual total assessable cost to be levied against each benefitted property,

ii. The amount, if any, to be paid with city funds or with funds available to the city and the identity of such funds, and

iii. The amount, if any, to be paid by others,

b. If the actual total assessable cost of the improvement exceeds the estimated maximum total assessable cost stated in the resolution by less than ten percent:

i. The breakdown required in subsection (A)(3)(a) of this section,

ii. The funding source from which the city shall pay the difference between the actual and the estimated maximum total assessable cost stated in the resolution,

c. If the actual total assessable cost of the improvement exceeds the estimated maximum total assessable cost stated in the resolution by ten percent or more:

i. A recommendation on whether the city should pay the difference between the actual total assessable cost and the estimated maximum total assessable cost or increase the assessments against benefitted properties for the difference between the estimated and actual assessable cost of the improvement, and

ii. If it is recommended the city pay the excess, in addition to the breakdown required in subsection (A)(3)(a) of this section, the funding source from which the excess amount could be paid, or

iii. If it is recommended the assessments against the benefitted properties be increased to compensate for the difference between the estimated and actual total assessable cost of the improvement, the amount by which the estimated assessments should be increased.

B. Upon receipt of the city manager’s report submitted in accordance with subsection A of this section, the city recorder shall do the following:

1. If the city manager’s report indicates no need to increase the estimated assessments against the benefitted properties, the city recorder shall schedule adoption of an ordinance levying assessments for the completed improvement portion of the project on the next available council agenda; or

2. If the city manager recommends an increase in the assessments to be levied against benefitted properties, the city recorder shall schedule council consideration of the city manager’s recommendation on the next available council agenda and forward the city manager’s report to council, advising council of the requirement to hold a public hearing in accordance with Section 3.12.110 prior to levying assessments in an amount greater than the estimated maximum total assessable cost stated in the resolution.

C. Upon receipt of a report from the city recorder indicating the city manager has recommended an increase in the estimated maximum total assessments stated in the resolution, the council shall decide whether or not it would be in the best interest of the city to increase the estimated assessments. The council shall determine:

1. That the city should pay the difference between the estimated and actual total assessable cost of the completed improvement, identify from which funds the difference should be paid and adopt an ordinance levying assessments in the amount stated in the resolution; or

2. That an increase in the assessments is necessary, set a date for the public hearing required by Section 3.12.110 and direct the city recorder to send notice of such hearing and proposed increase in assessments by certified mail at least ten days prior to the date of the hearing, to each owner of property benefitted by the local improvement. (Ord. 868 § 2.010, 1997)

3.12.110 Public hearing on proposed increase in estimated assessments for a completed local improvement.

As required by Section 3.12.060(A)(6), and as scheduled in accordance with Section 3.12.100(C)(2), before adopting an ordinance levying increased assessments against benefitted properties for a completed local improvement, council shall hold a public hearing regarding the intent to levy assessments in an amount greater than the estimated total maximum assessable cost as stated in the resolution forming the local improvement district, but not greater than the actual assessable cost of the improvement. At the hearing, the council shall allow all owners of benefitted properties to testify for or against the proposed increase in assessments. After the hearing, council shall, by its own motion, set the amount of assessment to be levied against each benefitted property and direct the city recorder to prepare an ordinance levying such assessments and place such assessment ordinance on the next available council agenda. (Ord. 868 § 2.020, 1997)

3.12.120 Council adoption of an ordinance levying assessments for a completed local improvement.

At a meeting scheduled by the city recorder in accordance with Section 3.12.100(B)(1), after considering the city manager’s report and recommendation regarding the completed local improvement portion of a project, the council, by its own motion, may:

A. If the actual total assessable cost of the improvement is equal to, less than, or less than ten percent more than, the estimated maximum total assessable cost stated in the resolution, adopt an ordinance levying assessments against each benefitted property in an amount less than or equal to, but not more than, the estimated total assessable cost stated in the resolution; or

B. If the actual total assessable cost of the improvement is ten percent or more above the estimated maximum total assessable cost stated in the resolution:

1. Adopt an ordinance levying assessments against each benefitted property in an amount equal to the estimated assessments stated in the resolution, or

2. Following the public hearing required in Section 3.12.110, adopt an ordinance levying assessments against each benefitted property in a proportionate amount which is greater than the estimated assessment stated in the resolution, but not greater than, the actual total assessable cost of the completed improvement. (Ord. 868 § 2.030, 1997)

3.12.130 Notice of assessments levied by ordinance.

A. Following adoption of an ordinance levying local improvement district assessments against benefitted property, the city recorder, by certified mail, shall give notice of the assessments to the owners of the benefitted properties. The notice shall state that each assessment may be paid in full, without interest, within ten days of the effective date of the assessment ordinance, and that if the assessment is not so paid, interest on the unpaid balance of the assessment will accrue as prescribed in the assessment ordinance until the assessment is paid in full, unless payment of the assessment is deferred as provided by this chapter. The notice shall also state that the assessment may be paid in installments according to the terms set forth in the assessment ordinance, and shall include an application for so paying the assessment.

B. Unless otherwise specified by this chapter or by the assessment ordinance, reference in this chapter to making payments in installments, including but not limited to, installment payments under the Bancroft Bonding Act, shall mean paying the amortized obligation in up to twenty (20) equal semiannual payments, with interest not to exceed twelve (12) percent per annum on the unpaid balance; provided, however, that no such semiannual payment shall be for less than twenty-five dollars ($25.00). (Ord. 868 § 2.040, 1997)

3.12.140 Deferral of assessment payment—Eligibility criteria.

A. Collection of the portion of the street construction assessment representing the costs in excess of that for a thirty-four (34) foot street may be deferred if the real property is located in a residential zone and is undeveloped property.

B. Collection of an assessment for construction of a new street opened through council action may be deferred when the abutting real property does not have driveway access to the street and is not developed for a purpose which makes use of the street. Upon receiving a permit to construct a driveway that takes access onto a street for which the assessment has been deferred, the property owner shall pay the deferred assessment or agree to pay the deferred assessment in installments in the same manner provided in Section 3.12.150.

C. Collection of a sewer improvement assessment may be deferred when a sanitary sewer or a storm sewer line is installed across or adjacent to undeveloped real property which does not have access to a sanitary or storm sewer system, and which is located more than one hundred sixty (160) feet away from a dedicated road or street.

D. Collection of an assessment for construction of a sanitary sewer service line may be deferred if:

1. The service connection will not be used until a subdivision occurs;

2. Installation with a paving project will eliminate a future street cut; or

3. Property owner approval was not given but it is in the city’s best interest to install the service line. (Ord. 868 § 3.010, 1997)

3.12.150 Agreement to defer, extend or modify assessment payments.

For any person requesting such information, the city recorder shall provide copies of those portions of this chapter relating to eligibility for deferral, modification or extension of assessment payments. An eligible real property owner who requests such a deferral, extension or modification shall submit evidence of eligibility in written form to the city recorder. After review of the evidence submitted, the city recorder shall notify the applicant whether the request has been granted. If it has, the applicant shall enter into a contract to pay the assessment in accordance with the terms of the deferral, extension or modification. The contract shall be on a form approved by the city attorney and may be recorded in the official records of Douglas County, Oregon. (Ord. 868 § 3.020, 1997)

3.12.160 Interest on assessment payments deferred, modified or extended.

An assessment deferred under Section 3.12.140 shall accrue simple interest of three percent per annum from the date it is levied until the deferral ends. The contract required by Section 3.12.150 shall specify whether the interest is to be paid semiannually or monthly during the deferral or in one lump sum at the end of the deferral. When the deferral ends, payment of the assessment shall be made as provided in Section 3.12.180. (Ord. 868 § 3.030, 1997)

3.12.170 Termination of deferral, extension or modification of assessment payments.

A deferral, extension or modification of assessment payments shall end if:

A. The owner of the property for whom the deferral, extension or modification is granted defaults in performing the contract pertaining thereto under Section 3.12.150, or

B. The owner transfers, or the property passes, to any other party except a surviving spouse, either through fee title or by way of a leasehold interest for a period of more than twenty-five (25) years the property to which the deferral, extension or modification pertains;

C. The property for which a deferral was granted under Section 3.12.140(A) or (B) has been convened to a use other than the use existing at the time the deferral was granted;

D. The property for which a deferral was granted under Section 3.12.140(C) has access to the street through a driveway or is used for a purpose other than a single-family residence or is partitioned to create new lots fronting on the street for which the assessment was levied; or

E. The property, for which a deferral has been granted under Section 3.12.140(D), is subject to one of the following changes:

1. A land division or re-division either by a subdivision or partition is filed by the owner,

2. A sanitary sewer lateral system becomes usable by the property,

3. A dedicated roadway is extended to provide access to the property located within one hundred sixty (160) feet of the sewer, or

4. An application is made for a permit to connect existing or proposed improvements on a portion of the property to a public sanitary sewer system;

F. The owner of the property for which a deferral was granted under Section 3.12.140(D)(2) and (3) makes application for a sanitary sewer connection permit. (Ord. 868 § 3.040, 1997)

3.12.180 Deferral, extension or modification of assessment payments—Liens.

A. Any assessment for which payments have been deferred, extended or modified under Section 3.12.140 shall be a lien on the property to which the assessment pertains. Except as provided in subsection B of this section, when such an assessment becomes due under Section 3.12.170, the entire unpaid principal plus interest shall be due and payable and it may be enforced and collected as though it has not been deferred, extended or modified and as though no timely application was made to pay the assessment in installments.

B. When a deferral, extension or modification of assessment payments ends for the reasons in Section 3.12.170(E)(2) through (4) and (F), the real property owner may pay the assessment and interest thereon as provided in Section 3.12.130 from the date the deferral, extension or modification ended. (Ord. 868 § 3.050, 1997)

3.12.190 Lien records and foreclosure proceedings.

A. After passage of an assessment ordinance provided for in Section 3.12.120, the city recorder shall enter in the docket of city liens a statement of the amounts assessed by the ordinance on each benefitted property together with a description of the local improvement, the names of the owners of the property assessed and the date of adoption of the assessment ordinance. Upon that entry each amount so entered shall become a lien and charge upon the respective property which has been assessed for such improvement.

B. If an assessment remains unpaid or a valid application for installment payments has not been filed with the city, the city manager may proceed to foreclose or enforce collection of the full amount of unpaid principal and interest plus attorney fees and costs of foreclosure or collection on delinquent municipal liens in the manner provided by the general law of the state or by this chapter. If any installment payment and interest thereon remains unpaid twenty (20) days after the same becomes due and payable, then the whole amount of the unpaid installments shall at once become due and payable and shall be collected in the manner and with the same penalty provided by the provisions of the laws of the state applicable thereto; provided, however, that a penalty of one percent per month on unpaid installments shall be charged in case of delinquency of any installment, and such penalty shall not exceed an amount equal to ten percent of the total unpaid principal.

C. In any proceeding to foreclose a city lien, the city may, at the direction of the city manager, enter a bid for the property being offered at a foreclosure sale, which bid shall be prior to all bids, except those made by persons who would be entitled under the laws of the state to redeem the property. (Ord. 868 § 4.010, 1997)

3.12.200 Errors in assessment calculations.

A person who alleges an error in calculation of assessments may call the alleged error to the attention of the city recorder, who shall determine whether there has been an error in fact. If the city recorder finds that there has been an error in fact, the city recorder shall recommend to council an amendment to the assessment ordinance to correct such error; and upon enactment of the amendment, the city recorder shall make the necessary correction in the docket of city liens and send a corrected notice of assessment to the property owner by certified mail. (Ord. 868 § 4.020, 1997)

3.12.210 Segregation of assessment.

A. Whenever property assessed as a single parcel is subsequently subdivided or partitioned, a person owning any of the subdivision or partition and desiring to remove the assessment or to apportion the assessment among the lots in the subdivision or parcels in the partition shall apply through the city recorder to the council for a segregation of the assessment and a determination of the amount due on that subdivision or partition.

B. If the council finds that the segregation can be made without prejudice to the security interest of the city, the city recorder shall, upon receiving payment applicable to the segregated portion of the property, discharge the lien of the assessment on that subdivision or partition.

C. Notwithstanding subsection B of this section, if the assessment is for off-street parking facilities, the city recorder shall conduct a hearing on the requested segregation. Each owner of a lot in a subdivision or parcel in a partition shall be entitled to be heard at that hearing and shall receive ten days advance notice of the hearing. On the basis of the evidence presented at the hearing, the city recorder shall recommend to the council that the segregation be approved or disapproved. Upon receipt of the recommendation, the council shall consider the matter, and if the council finds that the requested segregation can be made without prejudice to the security interest of the city, it shall direct the city recorder to apportion the assessment among the subdivision lots or partition parcels and change the assessment lien docket accordingly.

D. If council determines the city would be prejudiced by a segregation requested pursuant to subsection A of this section, payment of the entire assessment for the subdivision or partition shall be a condition precedent to discharge of the lien of the assessment.

E. Each application for segregation of assessment shall be accompanied by a fee set by council resolution. (Ord. 868 § 4.030, 1997)

3.12.220 Abandonment of proceedings.

The council may abandon or rescind proceedings for a project involving a local improvement approved under this chapter at any time before the final completion of the project or the local improvement portion thereof. (Ord. 868 § 4.040, 1997)

3.12.230 Curative provisions.

No local improvement assessment is invalid by reason of:

A. A failure of the city manager to provide all required information;

B. A failure to have all the information required in the improvement resolution, the assessment ordinance, the lien docket or notices required to be posted, published or mailed;

C. The failure to list the name of, or mail to, the owner of any property, any required notice; or

D. Any other error, delay, omission, irregularity or other act, jurisdictional or otherwise, in any proceeding or step specified in this chapter, unless it appears that the assessment is unfair or unjust in its effect upon the person complaining. The council may remedy and correct all such matters by suitable action. (Ord. 868 § 4.050, 1997)

3.12.240 Reassessments.

Whenever any assessment for any local improvement which has been made by the city is set aside, annulled, declared or rendered void, or its enforcement is restrained by any court of competent jurisdiction, or when council doubts the validity of the assessment, council may reassess in the manner provided by state law; provided, however, that council or its designee may conduct any hearings as provided in this chapter. (Ord. 868 § 4.060, 1997)

3.12.250 Interim financing authorization.

Any time after the award of the contract for construction of a project involving a local improvement the city manager is authorized to issue and reissue improvement warrants as provided by state law to pay the cost of design and construction of the local improvement. Such improvement warrants shall be general obligations of the city and shall be redeemed upon the sale of bonds for the local improvement or upon appropriation of other funds for that purpose. (Ord. 868 § 4.070, 1997)