Chapter 13.16
SYSTEMS DEVELOPMENT CHARGES FOR NEW DEVELOPMENTS
Sections:
13.16.040 Systems development charges established.
13.16.051 Transportation system development charge methodology.
13.16.060 Expenditure restrictions.
13.16.080 Collection of charges.
13.16.100 Installment payment.
13.16.130 Segregation and use of revenue.
13.16.150 Prohibited connection.
13.16.170 Retroactive applicability.
13.16.010 Purpose.
The purpose of the systems development charges is to impose a portion of the costs of capital improvements for water and waste water facilities, street improvements and parks and recreation upon those developments that create the need for or increase the demands on capital improvements. (Ord. 968 § 1 (part), 2006: Ord. 838 § 1, 1995: Ord. 797 § 2, 1992)
13.16.020 Scope.
The systems development charges imposed by this chapter are separate from and in addition to any applicable tax, assessment, charge or fee otherwise provided by law or imposed as a condition of development. (Ord. 968 § 1 (part), 2006: Ord. 797 § 3, 1992)
13.16.030 Definitions.
For purposes of this chapter:
“Capital improvements” means facilities or assets used for:
1. Water supply, treatment or distribution;
2. Wastewater or sewer collection, transmission, treatment or disposal;
3. Roads, streets, pedestrian ways, bikeways and traffic signalization; and
4. Parks and recreation.
“Development” means conducting a building or mining operation, making a physical change in the use or appearance of a structure or land, dividing land into two or more parcels (including partitions and subdivision), or creating or terminating a right of access.
“Improvement fee” means a fee for costs associated with capital improvements constructed after the date the fee is charged and as defined in ORS 223.297 through 223.314.
“Land area” means the area of a parcel of land as measured by projection of the parcel boundaries upon a horizontal plane with the exception of a portion of the parcel within a recorded right-of-way or easement subject to a servitude for a public street or scenic or preservation purpose.
“Owner” means the owner or owners of record title or the purchaser or purchasers under a recorded sales agreement, and other persons having an interest of record in the described real property.
“Parcel of land” means a lot, parcel, block or other tract of land.
“Qualified public improvement” means a capital improvement that is required as a condition of development approval, identified in a plan adopted pursuant to ORS 223.309 and either:
1. Not located on or contiguous to property that is the subject of 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 a greater capacity than is necessary for the particular development project to which the improvement fee is related.
“Reimbursement fee” means a fee for costs associated with capital improvements already constructed, or under construction on the effective date of the fees adopted pursuant to Section 13.16.040, for which the city determines that capacity exists.
“Systems development charge” means a reimbursement fee, an improvement fee or a combination thereof assessed or collected at the time of increased usage of a capital improvement, at the time of issuance of a development permit or building permit, or at the time of connection to the capital improvement. “Systems development charge” includes that portion of a sewer or water system connection charge that is greater than the amount necessary to reimburse the city for its average new cost of inspecting and installing connections with water and sewer facilities. “Systems development charge” does not include fees 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, expedited land division, or limited land use decision.
“Wastewater” and “sewer” are synonymous. (Ord. 968 § 2, 2006; Ord. 866 § 1, 1996; Ord. 797 § 4, 1992)
13.16.040 Systems development charges established.
A. Systems development charges shall be established and may be revised by resolution of the council.
B. Unless otherwise exempted by the provisions of this chapter or other local or state law, effective as of July 1, 1991, systems development charges are imposed upon all new development within the city, and upon all parcels of land within the city or outside the boundary of the city, that connect to or otherwise use the sewer facilities, or water facilities of the city or that meet conditions that would require connection thereto under the city’s ordinances. (Ord. 797 § 5, 1992)
13.16.050 Methodology.
A. The methodology used to establish the reimbursement fee and the improvement fee shall consider, when applicable, the factors identified in ORS 223.304, and other relevant factors identified by the council. The methodology shall promote the objective that future systems users shall contribute no more than an equitable share of the cost of then-existing facilities.
B. 1. The methodology used to establish the improvement fee shall consider the cost of projected capital improvements needed to increase the capacity of the systems to which the fee is related.
2. A capital improvement being funded wholly or in part from revenues derived from the improvement fee shall be included in the plan adopted by the city pursuant to Section 13.16.070.
C. Notwithstanding subsections A and B of this section, systems development charge revenues may be expended on the direct costs of complying with the provisions of this chapter, including the costs of developing systems development charge methodologies and providing an annual accounting of systems development charge expenditures.
D. No legal action intended to contest the methodologies used for calculating the systems development charges shall be filed after sixty (60) days following adoption or modification of this chapter or the resolutions of the council establishing the systems development charges. (Ord. 968 § 3, 2006; Ord. 797 § 6, 1992)
13.16.051 Transportation system development charge methodology.
A. Definition of Terms. As used in this section:
1. “Average weekday ITE trip rate” means the average number of daily weekday (Monday through Friday) one-way trips that have been observed at specified land uses and reported to the Institute of Transportation Engineers or the San Diego Association of Governments.
2. “Measurement unit” means the parameter that is used to measure the size of the development proposed. The number of measurement units multiplied by the average weekday ITE trip rate (per unit of measurement) results in the estimated number of weekday trips generated by the proposed development, prior to adjustments for linked (also known as a pass-by) trips (see definitions for these adjustments).
3. “Equivalent length new daily trips” means the number of estimated new daily trips that will be generated by projected new development anticipated by 2015, adjusted to account for different proportions of linked trips.
4. “Linked trip factor” means the factor used to adjust the average weekday ITE trip rate for trips with multiple purposes with respect to the type of development under consideration.
5. “Transportation demand management (TDM)” means a program of actions taken by public and/or private interests to reduce the volume of traffic (especially vehicles) during peak traffic periods. TDM includes such actions as transit system enhancements, increased ride sharing, constrained parking (low supply and/or high costs), flexible working hours/days, telecommuting, and similar actions. There are a number of projects that will be needed to provide sufficient transportation system capacity to accommodate future travel demand. These improvements include new streets, upgrades of existing streets to urban standards (i.e., added bicycle lanes, curbs/gutters, sidewalks, etc.), and new traffic signals. New streets and bridges, street upgrades, and new traffic signals provide more traffic lanes and urban street amenities resulting in a transportation system that can accommodate higher travel demand (additional capacity).
6. “Qualified public improvement” means as per Section 13.16.030 of this code.
B. The ordinance codified in this section is enacted for the purpose of revising the methodology used to determine the transportation systems development charges (SDC). To develop the city transportation systems development charge (SDC), the planned land uses in Sutherlin were projected. From these planned land uses the number of daily and peak-hour trips generated on the public street system were estimated. Inherent in these trip estimates are the provisions for linked-trip characteristics by land use type. The equivalent length new daily trips (ELDNT) generated within the Sutherlin urban growth boundary by the year 2005 is illustrated in the resolution adopting the transportation improvements plan. Trip generation rates for each of the land use categories were adjusted using trip generation rates reported in Trip Generation, Fifth Edition (published by the Institute of Transportation Engineer (ITE), 1991).
C. The transportation systems development charge (SDC) is calculated by dividing the total cost of anticipated SDC-related transportation system improvements divided by the number of city-wide equivalent length new daily trips (ELNDT). The amount of the SDC and the related list of transportation system improvements shall be adopted or amended by resolution of the Sutherlin city council.
D. Credits against the calculated transportation SDC shall be given in accordance with Section 13.16.120, and shall be used for the cost of qualified public improvements, in whole or in part, as identified by the transportation systems development charge resolution. Transportation systems costs, which are not included in the resolution adopting the transportation systems development charges table and list of estimated transportation systems costs, shall not be eligible for SDC credit, except that the city may agree that certain costs may, in fact, represent “system” costs that will be considered for addition to SDC-eligible costs during the next SDC update. If those “noneligible” costs are subsequently changed to become SDC eligible, credit will be given in the form of reimbursement of a portion of the SDC improvement fees.
E. Credits may be given for developments that implement transportation demand management (TDM) plans designed to reduce generated trips. The proponent of the development must apply in writing for TDM trip reduction and transportation SDC credit as a part of the building permit application process. The TDM plan may be prepared by a transportation planning professional and must be approved by the city manager.
F. Credits for TDM shall be applied for on a form, which shall be prescribed by the city manager. Trip reductions will be limited to a maximum of fifteen (15) percent of the SDC charge calculated without TDM credits. TDM plans must include an annual reporting plan that will document the amount of trip reduction that is actually achieved. The amount of the maximum TDM improvement fee credit shall be placed in a separate account (TDM credit account) of the street construction fund and shall be held there for two years, until the actual amount of any TDM credits can be calculated, based on the development proponent’s annual reports. Following receipt of the second annual report on TDM trip reduction from the project proponent, the amount of the TDM credit shall be determined by the city manager.
G. Funds held in the special TDM credit account will be either reimbursed to the developer/applicant (in whole or in part) or transferred to the regular transportation SDC account in the street construction fund.
H. When a change of property use occurs (e.g., due to a change in land use, the number of dwelling units or building area) requiring a building permit, a transportation SDC will be required to be paid if the change results in a net change in trip generation as determined by the city manager. Specifically, the transportation SDC will be calculated based on the net difference between the trip generation (including equivalent length and new trip rate adjustments) of the new use less the trip generation of the existing use. If the new use generates fewer trips than the existing use no transportation SDC shall be paid, but no reimbursements will be given to the proposed development. Exemptions from the transportation systems development charge shall be in accordance with Section 13.16.110 of this code.
I. The transportation systems development charge is due and payable at the earlier time of either the issuance of a building permit or change in use of property. The building permit or change in use shall not be issued until payment is made or application for installments as indicated in subsection J of this section is made.
J. In accordance with ORS 223.210, when a systems development charge is due and payable, the applicant is entitled to apply for installment payments. Installment payments for transportation systems development charges shall be allowed in accordance with Section 13.16.100 of this code.
K. The transportation SDC receipts shall be placed in the city’s street construction fund and shall be segregated by accounting practices from all other SDC funds received by the city. Funds collected that may qualify for TDM credits also shall be segregated from all other SDC funds received by the city. Funds collected through the transportation SDC program and any interest earned on these funds must be used only for projects specifically included in or amended to the transportation systems improvement plan as per resolution adopted by the city council. Transportation SDC funds can be used only for designated components of the project (pavement, curb/gutter, sidewalk, etc.) and only in the proportions shown in the transportation systems improvement plan resolution adopted by the city council.
L. The approval of any of the exceptions described in subsection H or credits described in subsections D, E and F of this section shall be at the discretion of the city manager. (Ord. 968 § 4, 2006; Ord. 896 §§ 1, 2, 1998)
13.16.060 Expenditure restrictions.
A. Systems development charges shall not be expended for costs associated with the construction of administrative office facilities that are more than an incidental part of other capital improvements.
B. Systems development charges shall not be expended for costs of the operation or routine maintenance of capital improvements. (Ord. 797 § 7, 1992)
13.16.070 Improvement plan.
The council shall adopt a plan that:
A. Lists the capital improvements that may be funded with improvement fee revenues;
B. Lists the eliminated cost for construction of each improvement; and
C. Describes the process for modifying the plan. (Ord. 797 § 8, 1992)
13.16.080 Collection of charges.
A. The systems development charges are payable upon issuance of:
1. A building permit;
2. A development permit for development not requiring the issuance of a building permit;
3. A permit to connect to the water or sewer system or in anticipation of the issuance of such a permit, at the time of levying a local improvement district assessment for sewer or water.
B. If development is commenced or connection is made to the water or sewer systems without an appropriate permit, the systems development charge is immediately payable upon the earliest date that a permit was required.
C. If no building, development, or connection permit is required, the systems development charges are payable at the time the usage of the capital improvement is increased.
D. The systems development charges are payable if conditions exist which would require connection to the sewer under the city’s ordinances even if no connection is made.
E. If construction of the building or connection to the water or sewer system does not occur within 12 months of the date for which the systems development charge shall be paid under subsection (A) of this section, the owner shall be obligated to pay any increases in the systems development charge that may have occurred after the date of the original payment.
F. The city manager or his designated representative shall collect the applicable systems development charge from the permittee when a permit that allows building or development of a parcel is issued or when a connection to the water or sewer system of the city is made.
G. The city manager or his designated representative shall not issue such permit or allow such connection until the charges have been paid in full, until provision for installment payments has been made pursuant to Section 13.16.100, or unless an exemption is granted pursuant to Section 13.16.110.
H. Except as provided in this subsection, the obligation to pay the unpaid systems development charge(s) and interest thereon shall be secured by a lien against the property upon which development is to occur. Such liens shall arise upon issuance of the permit requiring the systems development charges or occurrence of other condition(s) requiring the systems development charges and shall be entered on the city’s lien docket and the debt secured thereby may be collected in the manner provided in ORS chapter 223. In lieu of such lien, upon application of the permittee the obligation to pay the unpaid systems development charges and interest thereon may be secured by property, bond, deposits, letter of credit or other security acceptable to the city manager or his designee. (Ord. 1016 §§ 1, 2, 2011; Ord. 797 § 9, 1992)
13.16.090 Enforcement.
A. The city may use means of collection as may be provided by the laws of the state of Oregon or permitted by the Charter and ordinances of the city.
B. If a court suit or action is instituted to enjoin any development or construction for which a building permit was not issued or the systems development charge was not paid, or instituted for the collection of the fee, in addition to costs and disbursements provided by statute, the city shall be awarded such sums any court, including an appellate court, may adjudge reasonable as attorney fees in such suit or action. (Ord. 797 § 10, 1992)
13.16.100 Installment payment.
A. 1. When a systems development charge of five hundred dollars ($500.00) or more is due and collectable, the owner of the parcel of land subject to the development charges may apply for payment in twenty (20) semi-annual installments, to include interest on the unpaid balance, which shall be at a rate set by the City Council but in any event not less than prime plus two percent, and an amount, determined by the City Council, sufficient to pay the City’s costs of administering the installment payments in accordance with ORS Chapter 223.
2. The owner of a parcel of land that is subject to system development charges of five hundred dollars ($500.00) or more because of a connection to the water facilities of the City pursuant to Section 13.04.030(D) of this Code may apply for payment in forty (40) semi-annual installments, to include interest on the unpaid balance, which shall be at a rate set by the City Council but in any event not less than prime plus two percent, and an amount, determined by the City Council, sufficient to pay the City’s costs of administering the installment payments in accordance with ORS Chapter 223. Any application for installment payments under this subsection shall be approved or denied by the City Manager based on the best interests of the City. The City Manager may require an owner of a parcel of land to sign a letter consenting to eventual annexation into the City as a condition of approving an application under this subsection. The City Manager shall notify the Council within 30 days of any approval of a development charge installment application under this subsection.
B. The city manager shall provide application forms for installment payments, which shall include a waiver of all rights to contest the validity of the lien, except for the correction of computational errors.
C. An applicant for installment payments shall have the burden of demonstrating the applicant’s authority to assent to the imposition of a lien on the parcel and that the interest of the applicant is adequate to secure payment of the lien.
D. The city manager or his designated representative shall docket the lien in the lien docket. From that time the city shall have a lien upon the described parcel for the amount of the systems development charge, together with interest on the unpaid balance at the rate established by the council. The lien shall be enforceable in the manner provided in ORS chapter 223. (Ord. 1038 § 1, 2014: Ord. 797 § 11, 1992)
13.16.110 Exemptions.
The following are exempt from the systems development charges imposed in Section 13.16.040:
A. Structures and uses established and existing on or before July 1, 1991, are exempt from systems development charges, except water and sewer connection charges, to the extent of the structure or use then existing and to the extent of the parcel of land as it was constituted on that date. Structures and uses affected by this subsection shall pay the water and sewer connection charges pursuant to the terms of this chapter upon the receipt of a permit to connect to the water and/or sewer system.
B. Additions to single-family dwellings that do not constitute the addition of a dwelling unit, as defined by the State of Oregon Structural Specialty Code, are exempt from all portions of the systems development charge.
C. An alteration, addition, replacement or change in use that does not increase the parcel’s or structure’s use of the public improvement facility.
D. A project financed by city revenues is exempt from all portions of the systems development charge.
E. A connection to the City’s water or sewer system from property annexed to the City after November 1, 2014 is exempt from all water and sewer systems development charges if the property owner or the property owner’s predecessor in interest: (1) signed a letter consenting to eventual annexation into the City within fourteen (14) days after having received a request from the City to do so; and (2) installed any necessary distribution system, service lines and connection lines in accordance with city standards prior to annexation.
F. A connection to the water facilities of the City made pursuant to section 13.04.030(D) of this code is exempt from the water systems development charge, provided that the application submitted by the property owner under section 13.04.030(D) clearly demonstrates: (1) that the request is not for the purposes of a planned-for subdivision; (2) that a financial hardship prevents the applicant from paying the development charges thereby causing jeopardy to the health and safety of the occupants of the premises; and (3) the applicant has signed a letter consenting to eventual annexation into the City. (Ord. 1038 § 2, 2014: administratively corrected 5/4/05; Ord. 797 § 12, 1992)
13.16.120 Credits.
A. A credit shall be given for the cost of a qualified public improvement. The credit shall be only for the improvement fee charged for the type of improvement being constructed, and credit for qualified public improvements may be granted for the cost of that portion of such improvement that exceeds the minimum standard facility size or capacity needed to serve the particular development project or property. The applicant shall have the burden of demonstrating that a particular improvement qualifies for credit.
B. When the construction of a qualified public improvement gives rise to a credit amount greater than the improvement fee that would otherwise be levied against the project receiving development approval, the excess credit may be applied against improvement fees that accrue in subsequent phases of the original development project.
C. A developer may request of the city approval of the transferability of its credits, or for providing a credit for a capital improvement not identified in the plan adopted pursuant to ORS 223.309, or for providing a share of the cost of such improvement by other means. Said request shall be acted upon by resolution of the city council, and its decision shall be based upon its determination that approval of such request is in the best interests of the city. (Ord. 866 § 2, 1996: Ord. 797 § 13, 1992)
13.16.130 Segregation and use of revenue.
A. All funds derived from a particular type of systems development charge are to be segregated by accounting practices from all other funds of the city. That portion of the systems development charge calculated and collected on account of a specific facility system shall be used for no purpose other than those set forth in Section 13.16.060.
B. The city manager shall provide the city council with an annual accounting, based on the city’s fiscal year, for systems development charges showing the total amount of systems development charge revenues collected for each type of facility and the projects funded from each account. (Ord. 797 § 14, 1992)
13.16.140 Appeal procedure.
A. A person aggrieved by a decision required or permitted to be made by the city manager under this chapter or a person challenging the propriety of an expenditure of systems development charge revenues may appeal the decision or the expenditure to the city council by filing a written request with the city manager describing with particularity the decision of the city manager or the expenditure from which the person appeals and by payment of an appeal fee equal to ten percent of the system development charges for one EDU.
B. An appeal of an expenditure must be filed within two years of the date of the alleged improper expenditure. Appeals of any other decision must be filed within ten days of the date of decision.
C. The council shall determine whether the city manager’s decision or the expenditure is in accordance with this chapter and the provisions of ORS 223.297 to 223.314 and may affirm, modify or overrule the decisions. If the council determines that there has been an improper expenditure of systems development charge revenues, the council shall direct that a sum equal to the misspent amount shall be deposited within one year to the credit of the account or fund from which it was spent.
D. A legal action challenging the methodology adopted by the council pursuant to Section 13.16.050 shall not be filed later than sixty (60) days after the adoption or modification of the ordinance codified in this chapter or the resolution(s) of the council establishing the systems development charges pursuant to Section 13.16.040.
E. All decisions and determinations of the city council under this section shall be reviewed only as provided in ORS 34.010 to 34.100, and not otherwise. (Ord. 797 § 15, 1992)
13.16.150 Prohibited connection.
No person may connect to the water or sewer systems of the city unless the appropriate systems development charge has been paid or the lien or installment payment method has been applied for and approved. (Ord. 797 § 16, 1992)
13.16.160 Violation—Penalty.
Violation of any provision of this ordinance is punishable by a fine not to exceed two hundred fifty dollars ($250.00) for each violation, and each day a violation continues shall constitute a separate violation punishable by a separate fine for each day. (Ord. 797 § 17, 1992)
13.16.170 Retroactive applicability.
The provisions of this chapter shall apply to all new development, all permits issued, all connections to capital improvements, and all connection charges collected from July 1, 1991 forward. (Ord. 797 § 20, 1992)