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HomeMy WebLinkAbout2634 System Development Charges Repealed by 2670ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 4.20 OF THE ASHLAND MUNICIPAL CODE RELATIVE TO SYSTEMS DEVELOPMENT CHARGES. WHEREAS, the 1989 Session of the Oregon Legislature has enacted a new State Law relating to system development charges; and WHEREAS, the City's system development charges used after July 1, 1991 must meet certain requirements incorporated in the state law; and WHEREAS, the City of Ashland has undertaken a complete review of its system development charges in order to insure their compliance with state law; and WHEREAS, it is important to the City that costs of growth are equitably and rationally shared by new growth and development activities. NOW THEREFORE THE CITY OF ASHLAND DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Chapter 4.20 of the Ashland Municipal Code is hereby amended in its entirety and shall read as follows: "Chapter 4.20 SYSTEMS DEVELOPMENT CHARGES Sections: 4.20.010 4.20.020 4.20.030 4.20.040 4.20.050 4.20.060 4.20.070 4.20.080 4.20.085 4.20.090 4.20.100 4.20.110 4.20.120 Definitions Purpose Scope Systems Development Charge Established Methodology Compliance with State Law Collection of Charge Exemptions Deferrals for Affordable Housing Credits Appeal Procedures Prohibited Connection Enforcement 4.20.010 Definitions. The following words and phrases, as used in Chapter 4.20 of the Ashland Municipal Code, have the following definitions and meanings: Revised June 6, 1991 1 A. Capital Improvement(s). Public facilities or assets used for any of the following: 1. Water supply, treatment and distribution; 2. Sanitary sewers, including collection, transmission and treatment; 3. Storm sewers, including drainage and flood control; 4. Transportation, including but not limited to streets, sidewalks, bike lanes and paths, street lights, traffic signs and signals, street trees, public transportation, vehicle parking, and bridges; or 5. Parks and recreation, including but not limited to mini- neighborhood parks, neighborhood parks, community parks, public open space and trail systems, buildings, courts, fields and other like facilities. B. Development. As used in Sections 4.20.020 through 4.20.090 means constructing or enlarging a building or adding facilities, or making a physical change in the use of a structure or land, which increases the usage of any capital improvements or which will contribute to the need for additional or enlarged capital improvements. C. Public Improvement Charge. A fee for costs associated with capital improvements to be constructed after the effective date of this ordinance. This term shall have the same meaning as the term "improvement fee" as used in ORS 223.297 through 223.314. D. Oualified Public Improvements. A capital improvement that is required as a condition of development approval; and is identified in the plan adopted pursuant to Subsection 2.20.060B. However, it does not include improvements sized or established to meet only the demands created by a development. E. Reimbursement Fee. A fee for costs associated with capital improvements constructed or under construction on the date the fee is adopted pursuant to Section 4.20.040. F. Systems Development Charge. A reimbursement fee, a public improvement charge or a combination thereof assessed or collected at any of the times specified in Section 4.20.070. It shall not include connection or hook-up fees for sanitary sewers, storm drains or water lines, since such fees are designed by the City only to reimburse the City for the costs for such connections. Nor shall the SDC include costs for capital improvements which by City policy and State statute are paid for by assessments or fees in lieu of assessments for projects of special benefit to a property. 4.20.020 Purpose. The purpose of the systems development charge (SDC) is to impose an equitable share of the public costs of Revised June 6, 1991 2 capital improvements upon those developments that create the need for or increase the demands on capital improvements. 4.20.030 Scope. The systems development charge imposed by Chapter 4.20 is separate from and in addition to any applicable tax, assessment, charge, fee in lieu of assessment, or fee otherwise provided by law or imposed as a condition of development. A systems development charge is to be considered in the nature of a charge for service rendered or facilities made available, or a charge for future services to be rendered on facilities to be made available in the future. 4.20.040 SYstems Development Charge Established. A. Unless otherwise exempted by the provisions of this Chapter or other local or state law, a systems development charge is hereby imposed upon all development within the City; and all development outside the boundary of the city that connects to or otherwise uses the sanitary sewer system, storm drainage system or water system of the City. The City Administrator is authorized to make interpretations of this Section, subject to appeal to the City Council. B. Systems development charges for each type of capital improvement may be created through application of the methodologies described in Section 4.20.050 of this code. The amounts of each system development charge shall be adopted initially by Council resolution following a public hearing. Changes in the amounts shall also be adopted by resolution following a public hearing, except changes resulting solely from inflationary cost impacts. Inflationary cost impacts shall be measured and calculated each January by the city Administrator and charged accordingly. Such calculations will be based upon changes in the Engineering News Record Construction Index (ENR Index) for Seattle, Washington. 4.20.050 Methodology. A. The methodology used to establish a reimbursement fee shall consider the cost of then-existing facilities, prior contributions by then-existing users, the value of unused capacity, rate-making principles employed to finance publicly-owned capital improvements, and other relevant factors. The methodology shall promote the objective that future systems users shall contribute an equitable share of the cost of then- existing facilities. B. The methodology used to establish the public improvement charge shall consider the cost of projected capital improvements needed to increase the capacity of the systems to which the fee is related and shall provide for a credit against the public improvement charge for the construction of any qualified public improvement. Revised June 6, 1991 3 C. The methodology shall also provide for a credit as authorized in Subsection 4.20.090. D. Except when authorized in the methodology adopted under Subsection 4.20.050A, the fees required by this Code which are assessed or collected as part of a local improvement district or a charge in lieu of a local improvement district assessment, or the cost of complying with requirements or conditions imposed by a land use decision are separate from and in addition to the systems development charge and shall not be used as a credit against such charge. E. The methodologies used to establish the systems development charge shall be adopted by resolution of the Council following a public hearing. The specific systems development charge may be adopted and amended concurrent with the establishment or revision of the systems development charge methodology. The City Administrator shall review the methodologies established under this section every three (3) years, and shall recommend amendments, if and as needed, to the Council for its action. F. The formulas and calculations used to compute specific systems development charges are based upon averages and typical conditions. Whenever the impact of individual developments present special or unique situations such that the calculated fee is grossly disproportionate to the actual impact of the development, alternative fee calculations may be approved or required by the City Administrator under administrative procedures prescribed by the City Council. All data submitted to support alternate calculations under this provision shall be site specific. Major or unique developments may require special analyses to determine alternatives to the standard methodology. G. When an appeal is filed challenging the methodology adopted by the City Council, the City Administrator shall prepare a written report and recommendation within twenty (20) working days of receipt for presentation to the Council at its next regular meeting. The council shall by resolution, approve, modify or reject the report and recommendation of the City Administrator, or may adopt a revised methodology by resolution, if required. Any legal action contesting the City Council's decision in the appeal shall be filed within sixty (60) days of the Council's decision. 4.20.060 Compliance with State Law. A. The revenues received from the systems development charges shall be budgeted and expended as provided by state law. Such revenues and expenditures shall be accounted for as required by state law. Their reporting shall be included in the City's Comprehensive Annual Financial Report required by ORS Chapter 294. Revised June 6, 1991 4 B. The capital improvement plan required by state law as the basis for expending the public improvement charge component of systems development charge revenues shall be the Ashland Capital Improvements Plan (CIP), and the CIP of any other governmental entity with which the City has a cooperative agreement for the financing of commonly-used public improvements by the collection of systems development charges, provided the plan is based on methodologies conforming with State Law and is consistent with the City's CIP and the City's Comprehensive Plan. 4.20.070 Collection of Charge. A. The systems development charge is payable upon, and as a condition of, issuance of: 1. A building or plumbing permit for a development; or 2. A permit for a development not requiring the issuance of a building permit; or 3. A permit or other authorization to connect to the water, sanitary sewer or storm drainage systems. B. If development is commenced or connection is made to the water system, sanitary sewer system or storm sewer system without an appropriate permit, the systems development charge is immediately payable upon the earliest date that a permit was required, and it will be unlawful for anyone to continue with the construction or use constituting a development until the charge has been paid or payment secured to the satisfaction of the City Administrator. C. Any and all persons causing a development or making application for the needed permit, or otherwise responsible for the development, are jointly and severally obligated to pay the charge, and the City Administrator may collect the said charge from any of them. The City Administrator or his/her designee shall not issue any permit or allow connections described in Subsection 4.20.070A until the charge has been paid in full or until an adequate secured arrangement for its payment has been made, within the limits prescribed by resolution of the City Council. D. A systems development charge shall be paid in cash when due, or in lieu thereof, the City Administrator may accept the delivery of a written agreement to pay if the written agreement is secured by collateral satisfactory to the City Administrator or his/her designee. The collateral may consist of mortgage or trust deeds of real property, or an agreement secured by surety bond issued by a corporation licensed by a State law to give such undertakings, or by cash deposit, letter of credit, or other like security acceptable to the City Administrator. E. A person may apply to pay the systems development charge in installments to the extent provided by State Law. Revised June 6, 1991 5 F. During the first year after the adoption of this chapter, the charges shall not exceed one-third (1/3) of the amount prescribed by the methodology; during the second year the charges shall not exceed two-thirds (2/3); and thereafter, the charges shall not exceed the amount prescribed by the resolution adopting the methodology. 4.20.080 Exemptions. The conditions under which all or part of the systems development charges imposed in Section 4.20.040 may be waived are as follows: A. Any development for which a water or sewer systems development charge was paid and which had a subdivision agreement approved prior to the date of the adoption of this ordinance is exempt from systems development charges if the development occurs within three (3) years from the date of adoption of this ordinance. If the development occurs after said period of three years, the transportation, parks, and storm drainage portions shall be assessed in full, and a credit shall be given for the amount paid, which shall be applied to the system development charges owed hereunder. B. Housing for low-income or elderly persons which is exempt from real property taxes under state law. 4.20.085 Deferrals for Affordable Housing. The systems development charge for the development of qualified affordable housing under the city's affordable housing laws, shall be deferred until the transfer of ownership to an ineligible buyer occurs. Said systems development charges shall be secured by a second mortgage acceptable to the City, bearing interest at not less than five (5) percent per annum. Accrued interest and principal shall be due on sale to an ineligible buyer. 4.20.090 Credits. A. When development occurs that gives rise to a system development charge under Section 4.20.040 of this Chapter, the system development charge for the existing use shall be calculated and if it is less than the system development charge for the proposed use, the difference between the system development charge for the existing use and the system development charge for the proposed use shall be the system development charge required under Section 4.20.040. If the change is use results in the systems development charge for the proposed use being less than the system development charge for the existing use, no system development charge shall be required; however, no refund or credit shall be given. B. The limitations on the use of credits contained in this Subsection shall not apply when credits are otherwise given under Section 4.20.090. A credit shall be given for the cost of a qualified public improvement associated with a development. If a Revised June 6, 1991 6 qualified public improvement is located partially on and partially off the parcel of land that is the subject of the approval, the credit shall be given only for the cost of the portion of the improvement not attributable wholly to the development. The credit provided for by this Subsection shall be only for the public improvement charge charged for the type of improvement being constructed and shall not exceed the public improvement charge even if the cost of the capital improvement exceeds the applicable public improvement charge. C. Applying the methodology adopted by resolution, the City Administrator shall grant a credit against the public improvement charge, the reimbursement fee, or both, for a capital improvement constructed as part of the development that reduces the development's demand upon existing capital improvements or the need for future capital improvements or that would otherwise have to be provided at City expense under then-existing Council policies. D. Credits for additions to dedicated park land, or development of planned improvements on dedicated park land, shall only be granted by the City Administrator upon recommendation by the Park and Recreation Commission for land or park development projects identified in the Capital Improvement Plan, referred to in Section 4.20.060(B). E. When annexation systems development charges have been paid prior to the effective date of this chapter, a credit shall be given for the systems development charge required hereunder. F. In situations where the amount of credit exceeds the amount of the system development charge, the excess credit is not transferable to another development. It may be transferred to another phase of the original development. G. Credit shall not be transferable from one type of capital improvement to another. 4.20.100 Appeal Procedures. A. As used in this Section "working day" means a day when the general offices of the City are open to transact business with the public. B. A person aggrieved by a decision required or permitted to be made by the City Administrator or his/her designee under Section 4.20.010 through 4.20.090 or a person challenging the propriety of an expenditure of systems development charge revenues may appeal the decision or expenditure by filing a written request with the City Recorder for consideration by the City Council. Such appeal shall describe with particularity the decision or the expenditure from which the person appeals and shall comply with Subsection D. of this Section. Revised June 6, 1991 7 C. An appeal of an expenditure must be filed within two years of the date of alleged improper expenditure. Appeals of any other decision must be filed within 10 working days of the date of the decision. De The appeal shall state: 1. The name and address of the appellant; 2. The nature of the determination being appealed; 3. The reason the determination is incorrect; and 4. What the correct determination should be. An appellant who fails to file such a statement within the time permitted waives his/her objections, and his/her appeal shall be dismissed. E. Unless the appellant and the city agree to a longer period, an appeal shall be heard within 30 days of the receipt of the written appeal. At least 10 working days prior to the hearing, the City shall mail notice of the time and location thereof to the appellant. F. The City Council shall hear and determine the appeal on the basis of the appellant's written statement and any additional evidence he/she deems appropriate. At the hearing, the appellant may present testimony and oral argument personally or by counsel. The City may present written or oral testimony at this same hearing. The rules of evidence as used by courts of law do not apply. G. The appellant shall carry the burden of proving that the determination being appealed is incorrect and what the correct determination should be. H. The City Council shall render its decision within 15 days after the hearing date and the decision of the Council shall be final. The decision shall be in writing but written findings shall not be made or required unless the Council in its discretion, elects to make findings for precedential purposes. Any legal action contesting the Council's decision on the appeal shall be filed within 60 days of the Council's decision. 4.20.110 Prohibited Connection. After the effective date of this chapter, no person may connect any premises for service, or cause the same to be connected, to any sanitary sewer, water system, or storm sewer system of the City unless the appropriate systems development charge has been paid or payment has been secured as provided in this chapter. 4.20.120 Enforcement. Any service connected to the City water, sewer or storm sewer system after the effective date of this chapter for which the fee due hereunder has not been paid as Revised June 6, 1991 8 required or an adequate secured arrangement for its payment has been made, is subject to termination of service under the City's utility disconnect policy. SECTION 2. This Ordinance shall become effective at the time prescribed by charter or as soon thereafter as the resolutions adopting methodologies, plans and other required provisions have been adopted; and upon the effective date of this ordinance, and any funds collected pursuant to the previous systems development charges chapter shall be transferred to general capital improvements in the Capital Improvement Fund. SECTION 3. Chapter 4.16 of the Ashland Municipal Code is repealed as of June 30, 1991. The foregoing ordinance was first read by title only in accordance with Article X, Section 2(C) of the City Charter on the 21st day of May, 1991, and duly PASSED and ADOPTED this ~day of June, 1991. Nan E.' Franklin City Recorder SIGNED and APPROVED this day of , 1991. -Catherine M. Golden Mayor Revised June 6, 1991 9