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HomeMy WebLinkAbout2007-1105 Study Session Packet CITY OF ASHLAND CITY COUNCIL STUDY SESSION AGENDA Monday, November 5, 2007 at 5:15 p.m. Council Chambers, 1175 East Main Street 1. Look Ahead Review 2. Review of regular meeting agenda for November 6, 2007 3. Does the Council have any questions on the progress on the replacement of the Lithia Fountain at the Plaza? 4. Does the Council have any feedback about the process to review, analyze, and complete an update of several sections of the City's 1998 Transportation System Plan (TSP), Capital Improvements Project List and Transportations Systems Development Charges (SDCs)? 5. What direction would the Council like to provide to staff about changes it wants to make to ~ity policies and practices for using Local Improvement Districts (LIDs) to fund street, sidewalk and storm drain improvements, considering the work done to date to implement the Council's April 2007 direction on LIDs? In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Administrator's office at (541) 488-6002 (TTY phone number 1-800-735-2900). Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to the meeting (28 CFR 35.102-35.104 ADA Title I). rA' ~ ~ ~ ~ )>0 3 en' er" co co QTg: ~ o' '" :> 000 '" ::: :2 a. r" ~ '" :> o. " 0- (ii' g " " lii :> ;0 !!l,g ~ g en =-- (b en ~~.g~ n CD -. Q. o-a; ;~a.cn n -. =r :: =:YOln l1!;C~ 30 )>~ ... co ~ g ;0 '" " o ::1 fro '" ~ , ~ . ~ . !l n ~ ~ .. ~ ~ m " "' ~ l:l "' ~ . "' <; Ih ~ 8 ~ 0 . .. .< ill :;: " '< o -.. o. 00 Iii CD o - g '" Q -< )> 0. Q-;o "'~ ~rs. m ~ o o co ~ g, ;C ~ ~ ~ ~ ~ ~ ~ ~ "'lJC"co(,,)"lJ Q)~ Q) =: 0 iii" ~g.::J..::::::3::::) ~._g. "C~. ,~ '" -, a; ,i< J- 0 en ~..... a_CD (t) () o r~~ :J 0 3 ~r-; ~. 3 3 a. 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C' - c:: !l:i 3: .. 0 ID " ';1. ID Q. (, !:!: II> ::J " Ie .!2" ;':::~ r Cl)' ~:~ 0 0 ,---~ t~\ 0 ~ <~i ,.. ~ 0 ~:~ )> 0 ::r ::r r:" ID .. "- .. " ~ Q. CQ !I> Ct '" '" '" '" ~ 19 ~]:J . . 'Os ga c_ ~5 r- -" ~~ ~~ , ~ "' Z '0 ~ I 0; 'i1 ~ '" CITY OF ASHLAND Council Communication Study Session: Lithia Fountain Status Update Meeting Date: Department: Secondary Dept.: Approval: November 5, 2007 Public Works Eng / Water Historic Comn i .~n Martha Bennet II} Primary Staff Contact: E-Mail: Secondary Contact: Estimated Time: Paula Brown brownp@ashland.or.us Maria Harris 15 minutes Question: Docs tbe City Council have any questions about tbe progress on the replacement of tbe Lithia Fountain at the Plaza? Staff Recommendation: This is a status update only and no recommendations are being presented. Council is requested to provide clarification and any comments witb regard to tbe direction staff and team are pursuing. Thanks to the coordination efforts of George Kramer, Kramer & Company, the City is making great progress on tbe Lithia Fountain replacement. Staff and Mr. Kramer will be available to answer Council's questions or elaborate on tbe progress at the study session. Background: In June 2006, the City contracted with John Galbraith, Galbraith and Associates, and George Kramer, Kramer & Company, to assist in evaluating options to replace the Lithia Fountain on the Plaza. The team evaluated the existing condition of the Lithia Fountains and made recommendations to c1can and replace sections of the granite, researched and found an original style basin, recommended replacemcnt castings and materials for new fountain basins and bubbler systcms, and recommended a bctter maintenance proccss which will include daily potable water rinses to easc with cleaning and general upkeep of thc fountains. Thc overall goal was to replace the basins with an interest in historic accuracy, reduce thc likelihood of vandalism and to make thcm casier to maintain without significant use of chcmicals or acids that have been uscd in the past. The final recommendation was to make a bronze casting ofthc basin, powder coat them white to kccp the historic fcel, add chrome plated bubblers that will allow the fountains to run 18-24 hours a day to reduce the gas build up and pressure in thc handle valvcs that cxistcd previously, and to add potable water so tbat cach basin could bc rinsed daily to avoid tbc mineral build up in the drains whicb add cd to thc dcterioration ofthc basins and bandies. Thc tcam made presentations to the Historic and Arts Commissions and gained their support for the final recommendations. Staff presented tbe plan to Council during the budget proccss and included a $35,000 line itcm in the adopted budget as part of the Capitallmprovemcnts Plan. As progrcss eontinucs, staff is confident that the budget is sufficient to complete the project. Pagl: ] of() CC Lllhia \Vat~r Fountuin Lpdatc.doc ~.. r_~ CITY OF ASHLAND George Kramer has been contracted to be the City's agent for researching and obtaining each of the component parts. Currently thcre are about eight distinct steps to making the complete transition: I. City crews have cleaned the base and plinths and will complete final polishing on site. 2. Ten basins arc being fabricated and cast in bronze by Quality Brass and Aluminum in Portland. 3. The basins will then be shipped to Cincinnati for porcelain powder-coating by one of the only firms that have had experience with mineral water fountains (Murdock Fountain) and knows the operation and maintenance issues with the high mineralization content of Lithia water. 4. The bubblers are also being made by Murdock Fountain who will then build all of the basins, complete with bubbler and all of the associated plumbing (two source water pipes and one drain line for each of the eight fountains). Murdock will ship the basins back to Ashland. 5. The granite "donut" section will be replaced as the existing section had several cracks and is very fragile. Even with providing pinning and stabilization to the existing donut structure, the likelihood of damage during the drilling for new fountains was too high. The granite section comes from the Cold Springs Granite Company in Georgia and is nearly an exact match (see photo). The long lead item is the granite which may not arrive in the Rogue Valley until mid January and once here, it will be another 4 weeks to make the section and have it drilled for the fountain plumbing. The new donut section will be made by Oregon Granite in Medford. 6. So that the basins do not rest on the granite itself, a steel armature will be designed inside the granite structure so that the basins will actually be held in place by this structure and could tolerate a 400 pound load and help resist vandalism. The structure will be fabricated on site once the granite section is complete. 7. Some of the plumbing work in the vault next to the fountains can be started, but not finished until the structure is in place. Each of the fl1untains will have individual controls so that one fountain can be turned off or taken out of service leaving the other seven fully functional. This is a change from past practice, and should help reduce vandalism as well. 8. The final addition will be the return of the historic sign denoting the origin of Lithia water. ArlwOfk""_",".J,, 2'i> "If",,,."'" \rq"j[,~(t"w,J(" \""'-""",'0,.,,,,,,.,,,,,,,,,,,,,;;,,,,1.;, 'c",UX-;;\,',d, All said and done, the fountains should be complete and working by the end of February 2008. We tried to get this ready for a December completion, but with all the different pieces and locations for manufacturing, it was not possible. ''This is the most complicated ten square feet I have ever worked with in my life..." added George Kramer as he described the progress on the replacement parts. Pugc 2 oU) CC Lithia \V~!tcr Fountain Update.do_c -.. r_~ CITY OF ASHLAND Staff is very grateful for the interest and dedication by George Kramer in getting this project going, and looks forward to a final drinkable product. Related City Policies: Budget and ClP Council Options: The Council has a variety of options, three of which arc presented here for discussion: 1. Continue with the current plan to refurbish Lithia Fountain. 2. Recommend changes to the current plan. 3. Request that staff stop progress on the fountain. Potential Motions: None as this is a study session. Attachments: Pictures Reference: Refurbishment of the Lithia Fountain Project 05-3]; November 2006, Galbraith and Kramer Pa!:!l::; 01'(1 CC Lithia Watcr.!::.9_lIf.l_~a~n Update.doc ~... .,-~ CITY OF ASHLAND CAPITOP DONUT BASE PLINTH 1 PLINTH 3 (EMBEDDED) Description of the fountain sections PLINTH 2 Existing condition prior to fountain removal Page 4 oU) CC Lithla \Vater Fountain Updut<:.do~ .... ._~ CITY OF ASHLAND Ifill -.' .~~.. - "' Page 5 Ore) 1930s era Historic photos Lithia Fountains on the Plaza; Ashland CC Lithia ~Vatcr Fountain Updalc.doc ~.. r_~ CITY OF ASHLAND New basin and bubbler Pa!;c (, ofh ___----.5-.c Lith!;) Water Fountain Update.doc ~~, CITY OF ASHLAND Council Communication Study Session - Transportation System Plan Update Meeting Date: Department: Secondary Dept.: Approval: November 5, 2007 Public WorkslEngineering Legal I Finance Martha Benne Primary Staff Contact: E-Mail: Secondary Contact: Estimated Time: Paula Brown, 552-2411 brownp@ashland.or.us Lee Tuneberg, 552-2003 Consent Agenda Question: Does the City Council have any feedback about the process to review, analyze, and complete an update of several sections of the City's 1998 Transportation System Plan (TSP), Capital Improvements Project List and Transportations Systems Development Charges (SDCs)? Staff Recommendation: As this is a study session there are no specific staff recommendations. Completion of an updated TSP partially addresses the Council goal for transportation and will provide an updated project list and will address the gaps in the transportation system that are identified by Council and the community. Staff was encouraged by the information presented by HDR and the community's comments at the first open house and looks forward to future sessions. Staff seeks feedback with regard to the expectations of the TSP Update. Background: At the October 2, 2007 meeting, Council approved the contract with HDR, Inc for $116,460, to update. the City's Transportation System Plan (TSP) and transportation portion of the Capital Improvements Project List. With the current scope, HDR estimated completion by the end of February 2008. The concept is to review, analyze, and complete an update of several sections of the City's 1998 Transportation System Plan (W &H Pacific, May 1998) and the Transportations Systems Development Charges (SDCs). Ashland's current (1998) Transportation System Plan (TSP) has been the basis for transportation projects and capital infrastructure improvements for the past nine years, and although the planning is sound, many of the projects have been completed or due to the City's infill development, may require further evaluation for continued progress. Updates to the City's Transportation System Plan including the Existing Conditions and Constraints ofthe current Transportation system, develop recommendations and basis for Needed Transportation System improvements and develop a prioritized 20-year Capital Improvements Project list. With the updated information, the consultant will provide rationale and revised methodology for updating the City's Transportation SDCs which were completed by staff in July 1999. This analysis is not intended to be a complete update to the TSP, and will focus only on updating projects for street improvements, bicycle routes, pedestrian access, and access to transit with adequate sidewalks or other pedestrian paths, disabled access points and furnishings such as bus shelters. A complete TSP update will be scheduled to meet the requirements of the Transportation Planning Rule and coincide with changes to the Ashland Comprehensive Plan sometime in the near future. The Pagelof4 CC TSP Update Nov07.doc rA' CITY OF ASHLAND current Transportation Element (December 17, 1996), Chapter X of the City's Comprehensive Plan, remains in effect and has not been updated. With regard to transit, this analysis will only focus on current conditions ofthe existing Rogue Valley Transportation District (RVTD) Route 10, existing bus shelters and related transit furnishings and access concerns to Route 10. The City intends to allow for the potential of Phase 2 to this analysis and may authorize an additional element to complete a comprehensive transit analysis. If this is feasible to both the City and HDR, then a separate work component would be developed jointly by the City and HDR to complete that work. RFP Work Elements: HDR will provide specifics that include, but are not limited to: A. Review the City's 1998 Transportation System Plan (W&H Pacific, May 1998) in as much as is necessary to complete the necessary updates to the existing conditions and to enable the team to make recommendations for future transportation needs. B. Update TSP Chapter 4 - Existing Conditions and Constraints. This section should focus on the transportations specifics of: I) Characteristics of the existing pedestrian facilities 2) Characteristics ofthe existing bicycle facilities 3) Characteristics of the existing transit RVTD Route 10 and related pedestrian access and furnishings 4) Existing traffic volumes on boulevards (arterials), avenues (major collectors) and neighborhood collectors (minor collectors) 5) Existing traffic control measures, street/facility characteristics, traffic operations and safety concerns characteristics of boulevards (arterials), avenues (major collectors) and neighborhood collectors (minor collectors) C. Evaluate the City's Preventive Maintenance System (PMS) Project list as generated through the City's pavement management database. The City's street crew analyzes the street network for current condition and maintenance requirements. From their analysis, the information is entered into a Cartegraph database for PMS Overall Condition Index. Major repairs (greater than 2" asphalt overlays and any total replacements) are added to the City's Capital Improvement Program. It is intended that the significant maintenance and repair projects will be included in the updated CIP. D. Review street maintenance schedules and recommend appropriate improvements. As a part of the PMS and OCI reviews, it is requested that the consultant team evaluate the current street maintenance schedules and recommend practical and affordable improvements to existing maintenance programs. E. Update TSP Chapter 9 - Needed Transportation System improvements. As depicted in the TSP, Ashland is committed to increasing the proportional share of non-vehicular transportation, so the emphasis on bicycle and pedestrian and transit enabling amenities is high. Each ofthe elements in the Chapter 4 Current Conditions should be updated for a future planning horizon of both 10 and 20 years. The consultant should anticipate a minimum of three public open house style meetings to introduce the transportation system, identify a prioritized list of Page 2 of4 CC TSP Update Nov07.doc r.l' CITY OF ASHLAND potential improvements and finalize recommended improvements (this is also repeated below under meeting frequency). F. Update the transportation Capital Improvements Project (CIP) List based on the Chapter 9 updates and the City's PMS Project List. Ensure cost estimates are complete for the revised CIP list. G. Update and Complete Transportation SDCs. The existing transportation SDCs were completed by staff in July 1999 and the methodology has not been updated since that time. Review the current SDC practices, provide recommendations with regard to the existing SDC methodology and make recommended changes to the overall transportation SDCs. The existing SDCs do not have any reimbursement calculations for new street network sections. The consultant team should be prepared to recommend new methodology and discuss the options for a reimbursement category. H. Meeting frequency: I) There are three open house format meetings with the Community to discuss current conditions and to hear current concerns; to propose recommendations for changes to the current system; to provide the draft plan and SDC changes. 2) There will be a final report to the City Council to provide the recommended TSP Updates. 3) The consultant will also attend approximately three meetings with the SDC Committee to review the transportation SDC methodology, propose changes and solidify recommended SDCs. 4) There will be a final report to the City Council to provide the recommended SDCs. 5) If the transit element is added there will be an extra open house and likely an extra Council meeting to discuss those options. Current Status: The first Open House was on October 23'd from 5 to 7 pm at the Community Development and Engineering Building. It was lightly attended with about a dozen people (including 4 Council members) coming to hear and discuss current conditions and make recommendations to the consultants on items to further analyze and discuss. There were several comments on parking in the downtown core, parking lot needs, bicycle use on N. Main, bicycle use in general, questions about the Nevada bridge extension over bear Creek, and concerns over future growth and land use links. Next Steps: The consultant is on a parallel path in evaluating current condition of a dozen intersections within the City and projecting future conditions based on volume and build out conditions utilizing existing land use zoning. Once this is evaluated, proposed changes or upgrades to the transportation system will be identified. The next community meeting will be in mid December and will focus on options for the future. It is appreciated that Council attended the first meeting and staff hopes this will continue for the next meetings. We appreciate the Council and community being able to present ideas in the open house format and to define concerns early on in the process.e Page3 of 4 CC TSP Update Nov07.doc r.l' CITY OF ASHLAND A separate path is being charted for the Systems Development Charges. That arm of the team is evaluating our existing methodology and will be meeting with the SDC committee hopefully in early December to present options for changes in methodology. Once the methodology is accepted, and then the consultant will work with the rest of the team in developing the project list, costs and projected SDCs. Transit Analysis: The final piece that will be developed for the consultant is the section on transit. As mentioned earlier, transit was not specifically included as a work task, but was left as an option for phase II of the process. Stafffeels that Ashland's transit needs are not being specifically addressed in the RVTD Long Range Plan. As such, staff plans to include the development of the transit element in this TSP Update and will write a scope of work for the phase II portion for HDR to consider in November. Once the costs are identified and within acceptable range, a notice to proceed on developing a comprehensive transit portion will be provided to HDR for inclusion in the TSP Update. It is expected that this will add another 2-3 months to the process and will add at least one specific community open house to the schedule. Once a revised schedule is available, staff will get that information to the council and our community. Related City Policies: Transportation System Plan (W &H Pacific, May 1998) Transportation Element (December 17, 1996), Chapter X ofthe City's Comprehensive Plan Capital Improvements Plan and FY 2007-08 Budget Transportation Systems Development Charges Council Options: As this is a study session and an update only, staff is not asking for a new decision. Council's comments and concerns with regard to the expectations of the TSP Update are encouraged and appreciated. Potential Motions: No motions are presented at this study session. Attachments: None (information under related city policies is available on the web) Page4of4 CC TSP Update Nov07.doc r~' CITY OF ASHLAND Council Communication Study Session: Local Improvement District Process Update and Next Steps Meeting Date: Department: Secondary Dept.: Approval: November 5, 2007 Public Works En ering Finance Martha Benn Primary Staff Contact: E-Mail: Secondary Contact: Estimated Time: Paula Brown 552-2411 brownp@ashland.or.us Jim Olson (olsonj@ashland.or.us) 30 minutes Question: What direction would the Council like to provide to staff about changes it wants to make to City policies and practices for using Local Improvement Districts (LIDs) to fund street, sidewalk and storm drain improvements, considering the work done to date to implement the Council's April 2007 direction on LIDs? Staff Recommendation: Staff recommends the following six items: I. Continue to utilize LIDs as a viable and important funding mechanism for future street, sidewalk and storm drain improvements. 2. Consider further evaluation to develop the City's funding cap and specific logic in identifying property owner approval and assessments to fund LIDs. A preliminary set of recommendations are presented for further/future discussion on page 6 of this staff report. 3. Modify Resolution 99-09 once revised assessment methodology and funding caps are determined. 4. Wait for the updated TSP (should be finished by June 2008) to prioritize the current list of LIDs for sidewalks based on sidewalks to schools, transit stops and major gathering areas (parks, library, etc.) 5. Prioritize the current list of LIDs for and road pavement based on traffic volumes and neighborhood support for the LID. See suggestions on page 5 of this report. 6. Consider utilizing LIDs to establish funding mechanisms for electric underground services, street lights and other non-traditional utility enhancements. Background: During the April 2, 2007 Council Study Session, Council heard a staff report on the general use of LIDs (see attachment 1). The meeting minutes suggest the following review items: Council consensus was to maintain LID's, but to review Resolution 1999-09. Request that staffprepare a memo on the ideas and concerns that have been brought forward at tonight's meeting [see bullets]. . support continuing with LIDs; the resolution could use some refinement. . the Council reevaluate their policy for paving all streets . LIDs could be a good tool when there is a greater percentage of approval in the neighborhood . need to adjust the resolution to make LIDs fairer . concentrate on LIDs for areas where sidewalks are needed for school children . come up with a more easily determinable policy for assessing the LIDs costs . in favor of continuing to pave streets; agreed that the resolution should be looked at Page I of7 CC LID Process Update and Next Steps oct07.doc r.l' CITY OF ASHLAND . LIDs are a useful tool, but the resolution needs to be reviewed . form a subcommittee of members of the Council and Planning Commission to discuss appropriate improvements for a neighborhood . in addition, request was made for staff to bring forward a recommendation for an annual target to be spent on LIDs Staff has researched several cities primarily in the west (Oregon, Washington, Colorado, Virginia) that utilize LIDs as a financing mechanism primarily for transportation projects (streets and alleys), but also have been used for other infrastructure (water and sewer lines extension, street lights, underground power, parks) and Portland has used an LID for TriMet (transit) service extensions. What has been most interesting is that the majority of these cities and in some cases counties, the cost of design and construction is fully borne by the benefiting district. Formation and Remonstrance: The ability to initiate, protest and stop an LID is done in different ways typically based upon state law. Below are just a quick set of examples: 1. Poulsbo W A: A petition signed by property owners of at least 51 % ofthe total area within the boundary of the proposed district. Public hearing then Council may approve an ordinance to create the LID then there is a 30 day period to protest. If property owners representing at least 60% of the assessed value in the LID file written objections, then the project cannot move forward. No additional appeals to the project after the 30 day period. Final assessment also has a public hearing and objections regarding the final assessments may be heard at that time. 2. Tacoma W A: The petitioner contacts all of the affected property owners. When signatures of property owners representing 50% or more of the property frontage abutting the improvement have been gained, the petition is valid for consideration. The cost of an LID assessment depends on the type of improvement requested. Some LIDs are full-cost to the property owners (street lights for example) and some improvements are at fixed rates (such as permanent street and alley paving), where the property owner pays a pre-determined amount and the City participates in all costs above the fixed rate. The size and shape of a property and its proximity to the improvement are the factors that usually determine individual assessment amounts. 3. Jackson County OR: A petition must be signed by not less than 60% ofthe owners of land representing 60% ofthe land abutting the proposed improvements. Once the cost of the improvements is determined and the estimate is mailed to each property owner, the owner has a right to make written objections. Ifthe Board of Commissioners receives objections signed by more than 50% of the owners ofland representing 60% of the amount of the assessment for the proposed improvements, the proposed improvement is declared abandoned and no new petition may be filed for a year. 4. Portland OR: Requires written petition which will be considered valid only when property owned by petition signers added to property covered by waivers of remonstrance and property owned by the City represents more than 50 percent of the property in the proposed district as measured by the proposed assessment methodology. Property owned by the City, including property owned through the Portland Development Commission, shall be counted in support of formation of a local improvement district. 5. Ashland OR: Requires a written petition requesting the local improvement signed by the owners of property that would benefit specially from the local improvement and that would Page 2 of? CC LID Process Update and Next Steps oct07.doc r..., CITY OF ASHLAND have at least 50% of the anticipated assessment. If at the hearing, the owners of two-thirds of the property to be specially assessed for the improvement, or the owners of property which will be assessed for two-thirds or more of the proposed assessment, deliver to the council a remonstrance to the improvement, then action on the improvement shall be suspended for a period of six months. 6. Oregon Revised Statute: ORS 223 provides the rules for the use of assessments and SDCs in Oregon. It discusses the assessment of public and private properties. It does not state the specific assessment valuation process. The entire ORS is attached on the City's web site. Current Assessment Methodologies: the cost of improvements is split in several different ways. Many agencies require the full cost of the improvements to be paid by the affected property owners. Some agencies will pay a portion of the costs. Most assessments are either front footage along the improvement (typically applies to a road improvement) or a percentage of total square footage of property within the assessment district. With complaints that front footage did not require adequate payment for flag lots, and that square footage did not discount unusable hillside or drainage swale property areas, the City of Ashland developed Resolution 99-09. Resolution 99-09 changed the assessments to potential unit method which requires the Planning Department to determine the maximum number of potential units on properties within a proposed local improvement district by taking into consideration the zoning, densities, topography, transportation, utilities and such other factors as necessary to evaluate the development potential of the properties. The current allocation of costs on a per unit method appears to work better than just front footage or total area. Current Cost Sharing: Ashland is one of the few communities that shares in the cost of all LIDs. Resolution 99-09 placed a cap on each lot within the assessment (then $4,000 and with an increase for inflation based on the ENR, the current cap is $5,251 as of April 2007; a 31.3% increase in 8 years) and required the City to participate in improvements to local streets serving a residential neighborhood at the following percentages: > 60% of the total costs for sidewalk improvements > 75% of the total costs for storm drain improvements > 20% of the total costs for street surface improvements > 50% of the total costs for engineering and administrative costs Page 3 of7 CC LID Process Update and Next Steps oct07.doc r.l' CITY OF ASHLAND Project List: Staff took a look at projects and separated them into two categories; sidewalks and streets. Staff then took a stab at developing priorities so the list you see is staffs prioritization: Sidewalk priorities were based on the need for a completed pedestrian link for sidewalks to schools, transit stops and major gathering areas (parks, library, downtown core, etc.) As presented in the 1998 TSP: Ashland's network of sidewalks and paths for pedestrian use in the City is not continuous, particularly outside of the downtown core. A systematic approach identified the routes most used by pedestrians to provide system-wide access, circulation and continuity. Major pedestrian corridors and trip generators include schools (elementary, secondary, SOU), parks, civic attractions and services (City services, libraries, museums), the downtown core and retail, shopping and service areas. Bus stops and bus shelters are also considered pedestrian generators. Routes connecting generators to each other and access from nearby residential areas were classified as pedestrian corridors. Certain avenues were removed from the corridor classification because other facilities served the same foot traffic or because the avenue was not in an area where many people walked. Needed pedestrian projects were identified wherever adequate sidewalks did not exist on both sides of the street in a pedestrian corridor. Projects associated with street improvements were assumed to be constructed in conjunction with their associated street projects. The remaining pedestrian projects were prioritized: sidewalks serving elementary schools, middle schools and high schools were top priority (years 1-5); routes of high pedestrian use, sidewalks along existing and future transit routes were secondary priorities (years 6- 10), followed by all remaining projects (years 11-20). Only 4 of the original 16 "first 10 years" projects have not been completed. 8IDEW ALK IMPROVEMENTS (one or both sides of street) 1-5 Years Hi"" "T , N Laurel St W Hersey 8t Randy 81 City $78,000 He "7 "70,V\!\T Nev ' n. n -. ....nM .., , Rangy .., , Beach 81 Ashland 81 Henry 8t City $16,000 H . ., n 'J .., , Mo .., , EN....... ~, -=y , low - -. .., , Mo uuWr -e>' .., , We .., , Ho . n. '" , 6-10 Years I Map ,~, "7 , Hersey SI N Main SI OakSI City $88,000 E Main SI N Mountain Ave UPRR City $38,000 complete complete complete complete complete complete complete complete complete complete complete complele Page 4 of7 CC LID Process Update and Next Steps oct07.doc r~' CITY OF A.SHLAND Current unpaved streets were prioritized based on traffic volumes and the current understanding of neighborhood support for an LID. SUMMARY OF GRANITE SURFACED STREETS Street Length Feet ROW Width Proposed Impr Width Estimated Cost 1998 $ Estimated Cost 2008 $ Est w/CMAQ Cost 2008 $ ~ $186,233 C Street 300 70 36 $53,400 $82,770 design CMAQ 2007 Eureka Street 400 50 28 $61,200 $94,860 $213,435 design CMAQ 2007 " Beach Street 500 40 28 $76,500 $195,075 $438,919 design CMAQ 2008 .~ 00 Monte Vista 640 23.5 20 no SW $66,560 $103,168 $232,128 <L> design LID 2008 ~ " Schofield Street 700 40-60 28 $107,100 $166,005 $373,511 design LID 2008 ~ Plaza A venue 650 45 28 $99,450 $154,148 $346,832 design CMAQ 2009 Peachey Road 150 40 28 $22,950 $35,573 $80,038 design laCo 2009 CMAO Almond Street 1700 40 22 $236,300 $366,265 $824,096 partial Manzanita to Church E Ashland Loop Rd 1045 40 20 no SW $108,680 $168,454 $379,022 partial Terrace to Glenview e Fork Street 1750 40 20 no SW $182,000 $282,100 $634,725 Vista to Glenview ,,~ ;. M Glenview Street 6400 40-60 22 $889,600 $1,378,880 $3,102,480 180 ADT with mixed uses o " M"O $222,400 $344,720 $775,620 S"8 Granite Street 1600 40 22 440 ADT highest ~ u Terrace Street 750 40 20 $101,250 $156,938 $353,109 220 ADT M'l:: o ,- Walnut Street 1400 40-47 28 $214,200 $332,010 $747,023 , '" u " " ~ ~ Liberty Street 500 40-60 22 $69,500 $107,725 $242,381 planned LID '': 0 Nevada Street' 1500 60 28 $229,500 $355,725 $800,381 partially done "''' o~ M Clay Street 500 60 36 $89,000 $137,950 $310,388 JaCo involvement '" '" Pioneer Street 2600 45-50 20 no SW $270,400 $419,120 $943,020 <<: Pinecrest Terrace 750 47 28 $114,750 $177,863 $400,191 Alaska Street 150 40 28 $22,950 $35,573 $80,038 l!J Black Oak Way 850 41-50 28 $130,050 $201,578 $453,549 " Elkader Street 400 40 28 $61,200 $94,860 $213,435 I f even counted, most e Fox Street 600 40 22 $83,400 $129,270 $290,858 ADTs below 100 <L> ;. Larkin Lane 150 50 28 $22,950 $35,573 $80,038 8 00 ~8 Mae Street 350 40 28 $53,550 $83,003 $186,756 . ...l Meade Street 450 40 20 $60,750 $94,163 $211,866 M ~ <8 0 Mohawk Street 250 60 28 $38,250 $59,288 $133,397 c;; Pine Street 450 20 Partial 18 $46,800 $72,540 $163,215 '': : 0 Prospect Street 300 40 20 $40,500 $62,775 $141,244 '': '" Ridge Road 500 25 20 no SW $52,000 $80,600 $181,350 " " Ross Lane 430 20 28 $65,790 $101,975 $229,443 Need extra ROW for 28' " Tamarack Place 450 47 28 $68,850 $106,718 $240,114 "--- Wildwood Way 300 25 20 no SW $31,200 $48,360 $108,810 ~ TOTAL Cost to improve Granite Surfaced Streets $3,992,980 $6,265,619 $14,097,643 Page 5 of? CC LID Process Update and Next Steps oct07.doc r~' CITY OF ASHLAND Recommended Revisions: I. Construction costs are increasing dramatically, especially over the last several years. When Resolution 99-09 was adopted, the City's cost share of each project was estimated at 40%. Due to the cap for property owners, the City is now paying roughly 60-75% of many projects. There has been concern that the tax payers of the City are paying for more than their share of other LIDs that do not directly benefit them this way. Recommend that the City's share be capped at 40% with the affected property owners responsible for their share at 60% of the total project costs with no cap on the individually affected property owners. 2. Recommend that the "administrative" cost portion of all LID projects be expanded to include all design, engineering, construction management, legal and other administrative costs incurred by the City. 3. If the cap is not removed for affected property owners (see recommendation #1), then it is recommended that any deferred street improvements (LIDs formed prior to start of any subdivision construction; i.e.: Waterline Road) have an initial assessment that is also adjusted annually for inflation. This would allow some property owners to fully pay for the LID at a potentially lower rate and the City would "bank" those funds for future improvement. 4. Recommend the City require written petition which will be considered valid only when property owned by petition signers, added to any property within the proposed district owned by the City, represents more than 67 percent ofthe property in the proposed district as measured by the proposed assessment methodology. Property owned by the City shall be counted in support of formation of a local improvement district at the same per unit rate. 5. Recommend remonstrance language be specific to only those property owners within the proposed district. 6. Recommend Council extend the remonstrance period from 6 months to one year, and that after that time it is incumbent upon the original petitioners to re-engage the Council for renewed consideration for the project (13.20.050 C.). Action on sidewalks or on improvements unanimously declared by the council to be needed at once because of an emergency shall not be subject to suspension by a remonstrance ofthe owners of the property to be specially assessed. 7. Recommend the boundaries of the specific local improvement district be defined by the City Engineer in consultation with the Planning Director so that the proposed improvements meet all City standards, have a measurable impact on improving the air and water quality, and include immediately adjacent properties that directly benefit from the proposed improvements. It is further recommended that the proposed LID first gain acceptance by the new Transportation Commission prior to the initial petition going to the City Council for approval. 8. Recommend that there be no requirement for "signed in favor" agreements. All property owners within the proposed district boundaries have the right to request or object to an LID without any City required prior agreement to sign in favor of paving. 9. Although staff is encouraged to plan ahead for LIDs, it is recommend that the Council allow only one LID for sidewalk improvements and one LID for street improvements in any fiscal year and that this be determined during the budget and CIP process. Page 6 of? CC LID Process Update and Next Steps oct07.doc r.l' CITY OF ASHLAND Related City Policies: AMC 13.20 Local Improvements and Special Assessments City of Ashland Budget and Capital Improvement Plan Ashland 1998 Transportation System Plan; W&H Pacific (on the web) ORS Chapter 223 - Local Improvements and Works Generally (on the web) Council Options: The discussion of Local Improvement Districts is always on of controversy. Council, if you continue to move forward with the use of LIDs to be used as a funding mechanism for future street, sidewalk, storm drain and for perhaps other utility improvements to include street lighting, under grounding electrical utilities, and even transit, will always incite some level of controversy. Council options include: 1. Continue the discussion regarding LIDs and how to best rewrite Resolution 99-09 and support staff recommendations. 2. Decline to use Local Improvement Districts as a funding mechanism in the future. 3. Forego decision at this time and ask staff to bring this back for discussion at a future time or at Council's discretion. Potential Motions: Council's options following the logic above are as follows: 1. Council recognizes the value of continuing to utilize Local Improvement Districts as a viable funding mechanism for public infrastructure improvements and moves approval of staff recommendations as presented on page 1: a. Consider further evaluation to develop the City's funding cap and specific logic in identifying property owner approval and assessments to fund LIDs. Staffs preliminary set of recommendations as shown on page 6 ofthis document should be further reviewed unless there is time for specific elements to be discussed at this meeting. b. Request staff brings back a modified Resolution 99-09 once revised assessment methodology and funding caps are determined. c. Request staff ensures the updated TSP includes a prioritized of LIDs for sidewalks based on sidewalks to schools, transit stops and major gathering areas (parks, library, downtown core, etc.) d. Accept the loosely prioritize list of LIDs for and road pavement based on traffic volumes and future neighborhood support as suggested on page 5 of this report. e. Consider utilizing LIDs to establish funding mechanisms for electric underground services, street lights and other non-traditional utility enhancements. 2. Council moves to eliminate the future use of Local Improvement Districts. 3. Council requests staff bring this discussion back at a future time and will take no action at this time. Attachments: 1. Council Communication, April 2, 2007; General Discussion on the Future of Local Improvement Districts (with attachments) 2. Resolution 99-09 Page 7 of7 CC LID Process Update and Next Steps oct07.doc r~' City of Ashland, Oregon - 09 LID Process Page 1 of2 City ofA~bland, Or~gon / City_B,~corder / OJlj:uJn~ntS / ReSoLyttonS / Year oU999/ Og LID Process 09 LID Process RESOLUTION NO. 1999-09 A RESOLUTION RELATING TO LOCAL IMPROVEMENT DISTRICTS (LIDs) AND ESTABLISHING: THE CITY'S PARTICIPATION IN LIDs; THE POTENTIAL UNIT METHOD TO DETERMINE ASSESSMENTS; THE MAXIMUM ASSESSMENT FOR RESIDENTIAL LOTS AND REQUIRED PROCESS TO INCLUDE NEIGHBORHOODS IN LID PLANNING. THE CITY OF ASHLAND RESOLVES AS FOLLOWS: SECTION 1. City Participation in LIDs. A. Except as provided in paragraph B, the city shall contribute the following amounts to reduce assessments in any local improvement district (LID) formed after the date of this resolution to improve local streets serving a residential neighborhood: 60% of the total costs for sidewalk improvements; 750/0 of the total costs for storm drain improvements; 200/0 of the total costs for street surface improvements; and 50% of the total costs for engineering and administrative. B. Unless the council so directs by further resolution, no contribution will be made by the city under this section for LIDs formed after the date of this resolution if the LID improvements are required to be made by an owner or developer as a condition of approval for a subdivision or partition. SECTION 2. Potential Unit Method to Be Utilized. In determining the method to be utilized for charging assessments against benefitted properties in LIDs formed after the date of this resolution to improve local streets serving a residential neighborhood, the potential unit method, rather than the frontage foot method, shall be the preferred method. The potential unit method is that method which determines the maximum number of potential units on properties within a proposed local improvement district by taking into consideration the zoning, densities, topography, transportation, utilities and such other factors as necessary to evaluate the development potential of the properties. The planning department shall be responsible for initially determining the potential units for each property within a proposed LID. SECTION 3. Maximum Assessment on Residential Properties. A. The maximum amount any residentially zoned lot may be assessed as a benefitted property within an LID to improve local streets serving a residential neighborhood and which is formed after the date of this resolution is $4,000 plus $4,000 for each potential unit within such residentially zoned lot. This maximum amount shall be increased to account for inflation annually on April I st based on the Engineering News Record Construction Cost Index (ENR Index) for Seattle, Washington. The current index is established at 5990.77. B. There shall be no maximum amount, however, on lots owned by the city or on lots where the LID improvements are required to be made by an owner or developer as a condition of approval for a subdivision or partition. C. Prior to the adoption of the assessment resolution levying final assessments as provided in AMC ~ 13.20.060.E: http://www.ashland.or.us/Page.asp?NavID= 1266&Print=True 10/19/2007 City of Ashland, Oregon - 09 LID Process Page 2 of2 1. Any owner may pay the estimated assessment on the lot and potential units, plus ten percent, or 2. Any owner not subject to subsection B above, may pay the lesser of the estimated assessment on the lot and potential units, plus ten percent, or the maximum amount described in subsection A above. Upon such payment, the assessment shall be deemed satisfied and the final assessment resolution shall reflect that the assessment has been paid. SECTION 4. Neighborhood Planning Process. Prior to the formation of an LID, city staff shall notify the residents of the affected neighborhood of the possibility of the LID formation. Residents shall be given the opportunity to comment and make suggestions on initial street design and potential units. Minimum street standards shall be maintained, however, unless the council by resolution specifically authorizes specific changes for a particular project. This resolution was read by title only in accordance with Ashland Municipal Code Section 2.04.090 duly PASSED and ADOPTED this 2nd day of February, 1999 Barbara Christensen, City Recorder SIGNED and APPROVED this 3rd day of February 1999 Catherine M. Shaw, Mayor Reviewed as to form: Paul Nolte, City Attorney End of Document - Bilckt"JJlP http://www.ashland.or.us/Page.asp?NavID= 1 266&Print=True 10/19/2007 Chapter 223 - Local Improvements and Works Generally Page I of 48 The text appearing in this database was produced from material provided by the Legislative Counsel Committee of the Oregon Legislative Assembly. The official record copy is the printed published copy of the Oregon Revised Statutes. The text iu the database is not the official text of Oregon law. Although efforts have been made to match the database text to the official legal text they represent, substantive errors or differences may remain. It is the user's responsibility to verify the legal accuracy of all legal text. The Legislative Counsel Committee claims copyright protection in those parts of Oregon Revised Statutes that are legally subject to copyright protection. The State of Oregon is not liable for any loss or damage resulting from errors introduced into the materials supplied by the Legislative Counsel Committee, by a user or any third party, or resulting from any defect in or misuse of any search software, drivers or other equipment. Hint: Use your browser's Find feature (usually found in the Edit menu) to get to a section more quickly. Chapter 223 - Local Improvements and Works Generally 2005 EDITION LOCAL IMPROVEMENTS AND WORKS GENERALLY CITIES GENERAL PROVISIONS 223.001 Definitions CONDEMNATION FOR CITY IMPROVEMENTS; SPECIAL PROCEDURE 223.005 Condemnation for public use within and without city limits 223.010 Right of city to enter upon, survey, examine and select property to be condemned 223.015 Manner of condemnation; compensation 223.020 Scope of condemnation MUNICIPAL CONDEMNATION PROCEEDINGS 223.105 Proceedings to condemn property for city improvements when owner and city disagree on pnce ECONOMIC IMPROVEMENT DISTRICTS 223.112 Definitions for ORS 223.112 to 223.132 223.114 Economic improvement district; assessment ordinance 223.117 Requirements of assessment ordinance 223.118 Remonstrance against assessment; exclusion of property http://www.leg.state.or.us/ors/223.html 10/16/2007 Chapter 223 - Local Improvements and Works Generally Page 2 of 48 223.119 Advisory committee; functions 223.122 Effect of urban renewal districts or local improvement districts 223.124 Extension of assessment period 223.127 Application of certain assessment statutes to economic improvement districts 223.129 Expenditure of assessment revenues; liability for unauthorized expenditures 223.132 Formation of economic improvement districts as additional power of cities 223.141 Definitions for ORS 223.141 to 223.161 223.144 Economic improvement district; business license ordinance 223.147 Requirements of business license ordinance 223.151 Advisory committee; functions 223.154 Extension of business licensing period 223.157 Expenditure of business license revenues; liability for unauthorized expenditures 223.161 Effect of urban renewal districts or local improvement districts FINANCING LOCAL IMPROVEMENTS (BANCROFT BONDING ACT) 223.205 Scope and application; validation of bond issues by cities of 100,000 or more 223.207 Purpose ofORS 223.208 223.208 System development and connection charges ofIocal government subject to Bancroft Act 223.210 Right of property owners to apply for installment payment of assessment 223.212 Right of educational, religious, fraternal or charitable organizations and public corporations to bond the assessment 223.215 Contents of application to pay in installments; computation of installments 223.225 Record of application to be kept 223.230 Lien docket; interest; priority; public access 223.235 Issuance of bonds; limitations 223.245 Budget to include bond payments 223.260 Sale of bonds; disposition of proceeds from bond sales http://www.leg.state.or.us/ors/223 .htrnl 10/16/2007 Chapter 223 - Local Improvements and Works Generally Page 3 of 48 223.262 Assessment contracts; transfer of contract rights by local government; use of proceeds 223.265 Payment of installments; due dates 223.270 Procedure for collection on default 223.275 Notice to pay; receipts and entries on lien docket 223.280 Right of owner to prepay balance and discharge lien 223.285 Separate funds kept for moneys received; investments authorized 223.290 Payments entered on lien docket; lien discharge 223.295 Limit on city indebtedness SYSTEM DEVELOPMENT CHARGES 223.297 Policy 223.299 Definitions for ORS 223.297 to 223.314 223.301 Certain system development charges and methodologies prohibited 223.302 System development charges; use of revenues; review procedures 223.304 Determination of amount of system development charges; methodology; credit allowed against charge; limitation of action contesting methodology for imposing charge; notification request 223.307 Authorized expenditure of system development charges 223.309 Preparation of plan for capital improvements financed by system development charges; modification 223.311 Deposit of system development charge revenues; annual accounting 223.313 Application ofORS 223.297 to 223.314 223.314 Establishment or modification of system development charge not a land use decision APPORTIONMENT OF GOVERNMENT ASSESSMENTS UPON PARTITION 223.317 Apportionment of special assessment among parcels in subsequent partition of tract 223.322 Prorate of unpaid installments 223.327 Procedure for equitable apportionment by ordinance or regulation ASSESSMENTS FOR LOCAL IMPROVEMENTS http://www.leg.state.or.us/ors/223.html 10/16/2007 Chapter 223 - Local Improvements and Works Generally 223.387 Description of real property; effect of error in name of owner 223.389 Procedure in making local assessments for local improvements 223.391 Notice of proposed assessment to owner of affected lot 223.393 Estimated and final assessments become liens 223.395 Deficit assessments or refunds when initial assessment based on estimated cost 223.399 Powers oflocal government concerning assessments for local improvements 223.401 Review of assessment REASSESSMENT 223.405 Definitions for ORS 223.405 to 223.485 223.410 Autbority of governing body to make reassessment 223.415 Basis for, amount and method of reassessment 223.420 Effect of reassessment; exceptions 223.425 Resolution to reassess 223.430 Publication of notice of reassessment; contents 223.435 Personal notice to each owner; right to file objections 223.440 Hearing on objections; revision of reassessment 223.445 Reassessment ordinance or resolution 223.450 Lien docket entry; crediting prior payments 223.455 Right of purchaser at sale under prior assessment 223.462 Review of reassessment 223.485 Additional reassessment procedure; time limitation METHODS OF ENFORCING LIENS AND COLLECTING ASSESSMENTS 223.505 Definitions for ORS 223.505 to 223.595 223.510 Authority to sell property for delinquent liens and assessments 223.515 Preparation, transmission and contents of delinquent list 223.520 Procedure in collecting delinquencies http://www.leg.state.or.us!ors/223 .htrnl Page 4 of 48 10/16/2007 Chapter 223 - Local Improvements and Works Generally Page 5 of 48 223.523 Notice of sale; publication; personal notice to property owner and occupant 223.525 Conduct offoreclosure sale 223.530 Title of purchaser 223.535 Record of sales; receipts for lien payments 223.540 Payment of sale price 223.545 Purchase by local government in absence of bids 223.550 Certificate of sale; contents 223.555 Lien docket entries mandatory 223.560 Unsold property reoffered; exceptions 223.565 Procedure and conditions of redemption 223.570 Execution and contents of deed to purchaser 223.575 Legal and evidentiary effect of deed 223.580 Grantee of deed entitled to possession 223.585 Time limitation on actions to recover sold property 223.590 Tender of purchase price in action to recover property 223.593 Alternate redemption procedure; cash payment required 223.594 Lien for water service to certain real property through single water meter; owner as water user; foreclosure 223.595 Validation of prior foreclosure proceedings 223.605 Definitions for ORS 223.605 to 223.650 223.610 Foreclosure of certain liens by suits in equity 223.615 Recovery of attorney fees in foreclosure proceeding 223.620 Laws applicable to foreclosure proceedings 223.625 Liens which may be included in foreclosure suit 223.630 Joinder of parties in interest as defendants 223.635 Complaint served on owner; issues tried separately http://www.leg.state.or.us/ors/223 .html lOll 6/2007 Chapter 223 - Local Improvements and Works Generally Page 6 of 48 223.640 Allegations of jurisdictional facts 223.645 Right oflocal government to bid at execution sale 223.650 Redemption; no deficiency judgment FINANCING OF LOCAL IMPROVEMENTS; REBONDING; REINSTATEMENT; TYPE OF BONDS ACCEPTED IN PAYMENT OF LIENS; ASSESSMENT OF PUBLIC PROPERTY 223.705 Rebonding of unpaid assessments 223.710 Rebonding application; form; prerequisites 223.715 Payment ofrebonded assessment 223.720 Amount oflien; priority 223.725 Issuance and sale of bonds 223.730 Application of proceeds from sale of bonds 223.735 Debt limitation oflocal government not applicable 223.740 General provisions applicable 223.745 Scope of power granted 223.750 Enactment of rule making ordinances; effect of irregularities 223.755 Reinstatement of delinquent bonded assessments authorized 223.760 H.O.L.C. bonds accepted in payment of assessment liens 223.765 Bonds accepted as payment for assessment liens 223.770 Assessment of public property benefited by improvements 223.775 Assessment of property of cemetery authority benefited by certain improvements SPECIAL CITY IMPROVEMENTS; PARKING FACILITIES; STREETS; SIDEWALKS; AIDS TO WATER COMMERCE 223.805 Short title ofORS 223.805 to 223.845 223.810 Establishment of motor vehicle parking facilities 223.815 Acquisition of property for parking facilities 223.820 Planning, constructing and contracting for the operation of or leasing parking facilities http://www.leg.state.or.us!ors/223 .html 10/16/2007 Chapter 223 - Local Improvements and Works Generally Page 7 of 48 223.825 Financing of parking facilities 223.830 Service concessions in parking facilities 223.835 Fees and regulations of parking facilities 223.840 Disposing of property acquired for parking facilities 223.845 Limitation on operation of parking facilities; use of revenues after issuance of revenue bonds; disbursement of excess revenues 223.851 Special assessment for street lighting, street maintenance and street cleaning; approval by electors 223.856 Measure imposing assessments; contents 223.861 Basis of assessment 223.866 Levy of assessment; manner of collection; effect of nonpayment 223.876 Charter authority not affected 223.878 Inclusion of property outside city in city assessment for local street improvement 223.880 Public roads included in sidewalk improvement district; assessment on property benefited 223.882 Acquisition of property by city to aid water commerce 223.884 Authority to take property within and without city limits 223.886 Loans authorized to finance improvements; security for loans; consent of electors 223.888 Authority of city to carry out law 223.900 Leasing property to individuals MISCELLANEOUS PROVISIONS 223.905 Duration of Public Works Acts 223.910 Validation of bonds issued under Public Works Act of 1937 223.915 Operation of municipal debt limitations on bonds issued under Public Works Act of 1937 223.920 Manner of paying bonds 223.925 Power of cities to secure payment of bonds 223.930 Streets along city boundaries or partly within and without city 223.935 Basis for legalization of road http://www.leg.state.or.us!ors/223 .htrnl 10/16/2007 Chapter 223 - Local Improvements and Works Generally Page 8 of 48 223.940 Proceedings for legalization of roads; report; notice 223.945 Compensation for property affected by road legalization 223.950 Order under road legalization proceeding GENERAL PROVISIONS 223.001 Definitions. As used in ORS 223.112 to 223.132, 223.205 to 223.295, 223.297 to 223.314, 223.317 to 223.327, 223.387 to 223.399, 223.405 to 223.485, 223.505 to 223.595, 223.605 to 223.650, 223.705 to 223.755, 223.765, 223.770, 223.775 and 223.805 to 223.845, unless the context requires otherwise: (1) "Actual cost" has the meaning given the term under ORS 310.140. (2) "Capital construction project" means a project for "capital construction," as defined under ORS 310.140. (3)(a) "Estimated assessment" means, with respect to each property to be assessed in connection with a local improvement, the total assessment that, at the time of giving notice of the assessment and the right to object or remonstrate, the local government estimates will be levied against the property following completion of the local improvement. The estimate shall be based on the local government's estimate at that time of the actual costs of the local improvement and the proposed formula for apportioning the actual costs to the property. (b) "Estimated assessment" shall be determined by: (A) Excluding from estimated actual costs the estimated financing costs associated with any bonds issued to accommodate the payment of the assessment in installments; and (B) Including in estimated actual costs the estimated financing costs associated with interim financing of the local improvement. (4) "Final assessment" means, with respect to each property to be assessed in connection with a local improvement, the total assessment levied against the property following completion of the local improvement. The total assessment shall be based on the actual costs of the local improvement and the formula for apportioning the actual costs to the property. (5)(a) "Financing" means all costs necessary or attributable to acquiring and preserving interim or permanent financing of a local improvement. (b) The costs of financing may include the salaries, wages and benefits payable to employees of the local government to the extent the same are reasonably allocable to the work or services performed by the employees in connection with the financing of a local improvement or any part thereof. However, as a condition to inclusion of any salaries, wages or benefits payable to employees of a local government as financing costs of a local improvement or any part thereof, the local government shall establish a record keeping system to track the actual work done or services performed by each employee on or in connection with such local improvement. (c) Financing costs that are to be incurred after the levy of a final assessment may be included in the final assessment based on the local government's reasonable estimate of the financing costs if the local government first documents the basis for the estimate and makes the documentation available to interested persons on request. (6) "Governing body" means the council, commission, board or other controlling body, however designated, in which the legislative powers of a local government are vested. (7) "Installment application" means an application filed by a property owner to have a final assessment paid in installments over a period of years. (8) "Local government" means a local government as defined in ORS 174.116 that has authority to undertake the acquisition, construction, reconstruction, repair, betterment or extension of a local improvement. http://www.leg.state.or.us/ors/223 .htrul 10/16/2007 Chapter 223 - Local Improvements and Works Generally Page 9 of 48 (9) "Local improvement" has the meaning given the term under ORS 310.140. (10) "Lot" means a lot, block or parcel ofland. (11) "Owner" means the owner of the title to real property or the contract purchaser of real property of record as shown on the last available complete assessment roll in the office ofthe county assessor. (12) "Recorder" means the auditor, recorder, clerk or other person or officer of a local government serving as clerk of the local government or performing the clerical work of the local government, or other official or employee as the governing body of a local government shall designate to act as recorder. (13) "Structure" has the meaning given the term under ORS 310.140. (14) "Treasurer" means the elected or appointed official of a local government, however designated, charged by law with the responsibility for acting as custodian of and investment officer for the public moneys ofthe local government. [1991 c.902 ~3; 2003 c.802 ~2] CONDEMNA nON FOR CITY IMPROVEMENTS; SPECIAL PROCEDURE 223.005 Condemnation for public use within and without city limits. Any incorporated city may: (I) Appropriate any private real property, water, watercourse and riparian rights to any public or municipal use or for the general benefit and use of the people of the city, including but not limited to appropriation for an aviation field, park, city hall, city buildings, jail, or to protect the city from overflow by freshets. (2) Appropriate any real property, water, watercourse and water and riparian rights, including power sites, to any public or municipal use or for the general benefit and use of the people within or without the city, and to build dams, reservoirs and conduits for the purpose of storing and using water to aid in developing the necessary power to generate electricity for the use and benefit of the people within or without the city. (3) Condemn for its use private property for the purpose of erecting and maintaining electric lines thereon for the purpose of generating and conveying power to light and heat the city, and to be used and sold by the city for manufacturing, transportation, domestic and other purposes, either within or without the corporate limits of the city, and for the purpose of constructing electrical systems for municipal uses. [Amended by 1971 c.134 ~I] 223.010 Right of city to enter upon, survey, examine and select property to be condemned. For the purposes ofORS 223.005, a city may enter upon, survey and examine property in the manner provided by ORS 35.220 and may select any such property or rights for the purpose of constructing any ditch, drain, dam, dike, canal, flume, sewer, reservoir, septic tank, filter bed, sewer form or purifying plant or laying or constructing and maintaining any pipe, sewer, drain, aqueduct, dam, dike, canal, flume, reservoir, septic tank, filter bed, sewer form or purifying plant or other plant, building or electric lines or system for municipal uses, including but not limited to, aviation fields, parks, city hall, city buildings,jails, docks, piers, slips, shore and terminal structures. [Amended by 1971 c.134 ~2; 2003 c.477 ~4] 223.015 Manner of condemnation; compensation. After selection of such rights and property under ORS 223.010 in such manner as the council provides, the city seeking to make the appropriation may proceed in the manner prescribed by the statutes for the appropriation of land for corporate purposes, and not otherwise, unless otherwise provided by law, to have such property appropriated and the compensation therefor determined and paid. However, the compensation for such condemnation by a city shall be paid by a deposit in the court of an order drawn upon the city treasurer for the amount of compensation. 223.020 Scope of condemnation. Appropriation of property under ORS 223.005 may extend beyond the corporate limits of the city to or along and including any lake, spring, stream or power site. http://www.leg.state.or.us!ors/223 .html 10/16/2007 Chapter 223 - Local Improvements and Works Generally Page 10 of 48 223.025 [Repealed by 1963 c.297 9 I] 223.030 [Repealed by 1963 c.297 9 I] 223.035 [Repealed by 1963 c.297 9 I] 223.040 [Repealed by 1963 c.297 9 I] MUNICIPAL CONDEMNATION PROCEEDINGS 223.105 Proceedings to condemn property for city improvements when owner and city disagree on price. (I) The provisions of this section apply to every city, whether organized under general law or otherwise. (2) Whenever the council of any incorporated city deems it necessary to take or damage private property for the purpose of establishing, laying out, extending or widening streets, or other public highways and places within any city, or for rights of way for drains, sewers or aqueducts, or for widening, straightening or diverting channels of streams and the improvement of waterfronts, and the council cannot agree with the owner of the property as to the price to be paid, the council may direct proceedings to be taken under the general laws of this state to procure the same. 223.110 [Repealed by 1971 c.741 938] ECONOMIC IMPROVEMENT DISTRICTS 223.112 Definitions for ORS 223.112 to 223.132. As used in ORS 223.112 to 223.132, unless the context requires otherwise: (I) "Council" means the city councilor other controlling body of a city. (2) "Economic improvement" means: (a) The planning or management of development or improvement activities. (b) Landscaping or other maintenance of public areas. (c) Promotion of commercial activity or public events. (d) Activities in support of business recruitment and development. (e) Improvements in parking systems or parking enforcement. (f) Any other economic improvement activity for which an assessment may be made on property specially benefited thereby. [1985 c.576 91; 1991 c.902 94] 223.114 Economic improvement district; assessment ordinance. (I) A council may enact an ordinance establishing a procedure to be followed by the city in making assessments for the cost of an economic improvement upon the lots which are specially benefited by all or part of the improvement. (2) In any ordinance adopted under subsection (I) of this section, a city shall not be authorized to: (a) Levy assessments in an economic improvement district in any year that exceed one percent of the real market value of all the real property located within the district. (b) Include within an economic improvement district any area of the city that is not zoned for commercial or industrial use. (c) Levy assessments on residential real property or any portion of a structure used for residential purposes. [1985 c.576 92; 1989 c.1018 93; 1991 c.459 9350; 1991 c.902 95] 223.115 [Repealed by 1971 c.741 938] 223.117 Requirements of assessment ordinance. (I) An ordinance adopted under ORS 223.114, http://www.leg.state.or.us/ors/223.htm] ] 0116/2007 Chapter 223 - Local Improvements and Works Generally Page II of 48 shall provide for enactment of an assessment ordinance that: (a) Describes the economic improvement project to be undertaken or constructed. (b) Contains a preliminary estimate of the probable cost of the economic improvement and the proposed formula for apportioning cost to specially benefited property. (c) Describes the boundaries of the district in which property will be assessed. (d) Specifies the number of years, to a maximum of five, in which assessments will be levied. (e) Contains provision for notices to be mailed or delivered personally to affected property owners that announce the intention of the council to construct or undertake the economic improvement project and to assess benefited property for a part or all of the cost. The notice shall state the time and place of the public hearing required under paragraph (t) of this subsection. (t) Provides for a hearing not sooner than 30 days after the mailing or delivery of notices to affected property owners at which the owners may appear to support or object to the proposed improvement and assessment. (2) The ordinance shall also: (a) Provide that if, after the hearing held under subsection (I)(t) of this section, the council determines that the economic improvement shall be made, the council shall determine whether the property benefited shall bear all or a portion ofthe cost and shall determine, based on the actual or estimated cost of the economic improvement, the amount of assessment on each lot in the district. (b) Require the city recorder or other person designated by the council to prepare the proposed assessment for each lot in the district and file it in the appropriate city office. (c) Require notice of such proposed assessment to be mailed or personally delivered to the owner of each lot to be assessed, which notice shall state the amount of the assessment proposed on the property of the owner receiving the notice. The notice shall state the time and place of a public hearing at which affected property owners may appear to support or object to the proposed assessment. The hearing shall not be held sooner than 30 days after the mailing or personal delivery of the notices. (d) Provide that the council shall consider such objections and may adopt, correct, modify or revise the proposed assessments. (e) Provide that the assessments will not be made and the economic improvement project terminated when written objections are received at the public hearing from owners of property upon which more than 33 percent of the total amount of assessments is levied. [1985 c.576 93; 1989 c.lOl8 94] 223.118 Remonstrance against assessment; exclusion of property. (I) In addition to the requirements listed in ORS 223.117 (2), an assessment ordinance adopted under ORS 223.114 and 223.117 may, at the discretion of the council, provide that: (a) When the council receives written objections at the public hearing only from owners of property upon which less than 33 percent of the total amount of assessments is levied, the economic improvement project may be undertaken or constructed, but that assessments shall not be levied on any lot or parcel of property if the owner of that property submitted written objections at the public hearing. Notwithstanding any other provision oflaw, an owner of property who fails to submit written objections at the public hearing as provided for in the ordinance shall be deemed to have made a specific request for the economic improvement services to be provided during the period of time specified in the assessment ordinance. (b) The council, after excluding from assessment property belonging to such owners, shall determine the amount of assessment on each of the remaining lots or parcels in the district. (c) Notice of such proposed assessment be mailed or personally delivered to the owner of each lot to be assessed, which notice shall state the amount of the assessment proposed on the property of the owner receiving the notice. (2) When assessments are levied against property within an economic improvement district in accordance with an assessment ordinance that contains the provisions described in subsection (I) of this section: (a) Any new owner of benefited property in the district or any owner of benefited property who http://www.leg.state.or.us/ors/223 .html 10/16/2007 Chapter 223 - Local Improvements and Works Generally Page 12 of 48 excluded the property from assessment by submitting written objections to the council may subsequently agree to the assessment of the owner's property in the district. The council shall apportion the costs to the property for the remaining time in which assessments will be levied. (b) The assessed property may not be relieved from liability for that assessment. (c) If the council considers it necessary to levy assessments upon property in the district for longer than the period of time specified in the assessment ordinance, the council shall enact an ordinance that provides for continued assessments for a specified number of years and grants to property owners in the district the notice and right of remonstrance described in ORS 223.117 (2)(b) to (e) and subsection (I)(a) to (c) of this section. [1991 c.773 ~2) 223.119 Advisory committee; functions. An ordinance adopted under ORS 223.114, may require creation, for each economic improvement district, of an advisory committee to allocate expenditure of moneys for economic improvement activities within the scope ofORS 223.112 to 223.132. Ifan advisory committee is created, the council shall strongly consider appointment of owners of property within the economic improvement district to the advisory committee. An existing association of property owners or tenants may enter into an agreement with the city to provide the proposed economic improvement. [1985 c.576 ~4; 1989 c.1018 ~5) 223.120 [Repealed by 1971 c.741 ~38) 223.122 Effect of urban renewal districts or local improvement districts. The existence oflocal improvement districts or urban renewal districts in a city does not affect the creation of economic improvement districts under ORS 223.112 to 223.132. [1985 c.576 ~5) 223.124 Extension of assessment period. When the council considers it necessary to levy assessments upon property in an economic improvement district for longer than the period of time specified in the assessment ordinance that created the district, the council shall enact an ordinance that provides for continued assessments for a specified number of years and grants to property owners in the district the notice and right of remonstrance described in ORS 223.117 (2)(b) to (e). [1985 c.576 ~6) 223.125 [Repealed by 1971 c.741 ~38) 223.127 Application of certain assessment statutes to economic improvement districts. (I) ORS 223.387 and 223.391 to 223.395 apply to economic improvement districts created by a city in accordance with ORS 223.112 to 223.132. (2) The rights and duties accorded local governments and the owners of property for financing assessments under ORS 223.205 and 223.210 to 223.295 apply to assessments levied upon property in an economic improvement district for financing all or part of the cost of an economic improvement. [1985 c.576 ~7; 1991 c.902 ~6; 2003 c.802 ~3) 223.129 Expenditure of assessment revenues; liability for unauthorized expenditures. (I) A city council shall not expend any moneys derived from assessments levied under ORS 223.112 to 223.132 for any purpose different from the purpose described in the ordinance adopted under ORS 223.114. (2) Any public official who expends any moneys derived from assessments levied under ORS 223.112 to 223.132 for any purpose different from the purpose described in an ordinance adopted under ORS 223.114 shall be civilly liable for the return of the moneys by suit of the district attorney of the county in which the city is located or by suit of any taxpayer of the city. [1985 c.576 ~8) 223.130 [Repealed by 1971 c.741 ~38) 223.132 Formation of economic improvement districts as additional power of cities. The http://www.leg.state.or.us!ors!223.html 10/16/2007 Chapter 223 - Local Improvements and Works Generally Page 13 of 48 authority granted to cities by ORS 223.112 to 223.132, is in addition to any other authority a city may have under state law, its charter or its ordinances to create or finance economic improvement districts. [1989 c.1018 92] 223.135 [Repealed by 1971 c.741 938] 223.140 [Repealed by 1971 c.741 938] 223.141 Definitions for ORS 223.141 to 223.161. As used in ORS 223.141 to 223.161, unless the context requires otherwise: (1) "Business license fee" means any fee paid by a person to a city for any form oflicense that is required by the city in order to conduct business in that city. (2) "Conducting business" means to engage in any business, trade, occupation or profession in pursuit of gain including activities carried on by a person through officers, agents and employees as well as activities carried on by a person on that person's own behalf. (3) "Council" means the city councilor other controlling body of a city. (4) "Economic improvement" means: (a) The planning or management of development or improvement activities. (b) Landscaping or other maintenance of public areas. (c) Promotion of commercial activity or public events. (d) Activities in support of business recruitment and development. (e) Improvements in parking systems or parking enforcement. (f) Any other economic improvement activity for which an assessment may be made on property specially benefited thereby. [1991 c.698 91] 223.144 Economic improvement district; business license ordinance. (I) A council, on its own motion or after receiving a petition for the formation of an economic improvement district signed by 33 percent or more of persons conducting business within the proposed district, may enact an ordinance establishing a procedure to be followed by the city in imposing a business license fee to raise revenue for the cost of an economic improvement. The business license fee authorized under this subsection may be in the form of a surcharge on an existing business license fee imposed by the city on any business, trade, occupation or profession carried on or practiced in the economic improvement district. (2) In any ordinance adopted under subsection (I) of this section, a city shall not be authorized to: (a) Include within an economic improvement district any area of the city that is not zoned for commercial or industrial use. (b) Impose a business license fee to raise revenue for an economic improvement that does not primarily benefit persons conducting business within the economic improvement district. [1991 c.698 92] 223.145 [Repealed by 1971 c.741 938] 223.147 Requirements of business license ordinance. (I) An ordinance adopted under ORS 223.144, shall provide for enactment of a business license fee ordinance that: (a) Describes the economic improvement project to be undertaken or constructed. (b) Contains a preliminary estimate of the probable cost of the economic improvement. (c) Describes the boundaries of the district in which property will be assessed. (d) Specifies the number of years, to a maximum of five, in which business license fees for the economic improvement will be imposed. (e) Contains provision for notices to be mailed or delivered personally to affected persons that announce the intention of the council to construct or undertake the economic improvement project and to impose a business license fee upon persons conducting business within the district for a part or all of http://www.leg.state.or.us!ors/223.html 10/16/2007 Chapter 223 - Local Improvements and Works Generally Page ]4 of 48 the cost. The notice shall state the time and place of the public hearing required under paragraph (f) of this subsection. (f) Provides for a hearing not sooner than 30 days after the mailing or delivery of notices to affected persons at which the persons may appear to support or object to the proposed improvement and business license fee. (2) The ordinance shall also: (a) Provide that if, after the hearing held under subsection (I)(f) of this section, the council determines that the economic improvement shall be made, the council shall determine whether the businesses benefited shall bear all or a portion of the cost and shall determine, based on the actual or estimated cost of the economic improvement, the amount of the business license fee. (b) Require notice of such proposed business license fee to be mailed or personally delivered to each person conducting business within the proposed economic improvement district, which notice shall state the amount of the business license fee. The notice shall state the time and place of a public hearing at which affected persons may appear to support or object to the proposed business license fee. The hearing shall not be held sooner than 30 days after the mailing or persona] delivery of the notices. (c) Provide that the council shall consider the objections of persons subject to the proposed business license fee and may adopt, correct, modify or revise the proposed business license fee. (d) Provide that the business license fee will not be imposed and the economic improvement project terminated when written objections are received at the public hearing from more than 33 percent of persons conducting business within the economic improvement district who will be subject to the proposed business license fee. []99] c.698 ~3] 223.150 [Repea]ed by ]97] c.74] ~38] 223.151 Advisory committee; functions. An ordinance adopted under ORS 223.]44, may require creation, for each economic improvement district, of an advisory committee to develop a plan and to allocate expenditure of moneys for economic improvement activities within the scope ofORS 223.14] to 223.161. If an advisory committee is created, the council shall appoint persons conducting business within the economic improvement district to the advisory committee. An existing association of persons conducting business within an economic improvement district may enter into an agreement with the city to provide the economic improvement. []99] c.698 ~4] 223.154 Extension of business licensing period. When the council considers it necessary to impose business license fees upon persons conducting business in an economic improvement district for longer than the period of time specified in the ordinance that created the district, the council shall enact an ordinance that provides for continued business license fees for a specified number of years and grants to persons conducting business in the district the notice and right of remonstrance described in ORS 223.147 (2)(b) to (d). []99] c.698 ~5] 223.155 [Repea]ed by ]97] c.74] ~38] 223.157 Expenditure of business license revenues; liability for unauthorized expenditures. (]) A city council shall not expend any moneys derived from business license fees levied under ORS 223. ]4] to 223.]6] for any purpose different from the purpose described in the ordinance adopted under ORS 223.]44. (2) Any public official who expends any moneys derived from business license fees levied under ORS 223. ]4] to 223.161 for any purpose different from the purpose described in an ordinance adopted under ORS 232.144 shall be civilly Iiab]e for the return of the moneys by suit of the district attorney of the county in which the city is located or by suit of any taxpayer of the city. []99] c.698 ~6] 223.160 [Repealed by ]97] c.74] ~38] http://www.leg.state.or.us/ors/223.html 10/16/2007 Chapter 223 - Loca] Improvements and Works Generally Page ]5 of48 223.161 Effect of urban renewal districts or local improvement districts. (]) The existence of local improvement districts or urban renewal districts in a city does not affect the creation of economic improvement districts under ORS 223.141 to 223.16l. (2) The authority granted to cities by ORS 223.141 to 223.161 is in addition to any other authority a city may have under state ]aw, its charter or its ordinances to create or finance economic improvement districts. [1991 c.698 ~ 7] 223.165 [Repea]ed by 1971 c.741 ~38] 223.170 [Repealed by 1971 c.741 ~38] 223.175 [Repea]ed by 197] c.741 ~38] FINANCING LOCAL IMPROVEMENTS (BANCROFT BONDING ACT) 223.205 Scope and application; validation of bond issues by cities of 100,000 or more. (I) ORS 223.205 and 223.2]0 to 223.295 may be cited as the Bancroft Bonding Act. (2) The provisions of the Bancroft Bonding Act are not mandatory. Any governmental body having charter provisions, or ordinance provisions authorized by charter, for bonding improvement assessments and selling bonds may follow those provisions or the provisions of the Bancroft Bonding Act, or the provisions of any other statute. (3) All bonds issued prior to March 20, 1939, in accordance with the charter provisions of any city which, as of March 20, 1939, has or after that date attains a population of 100,000 or more inhabitants, according to the published federal census, and all action taken and proceedings adopted by a city prior to that date for issuing bonds in accordance with charter provisions are ratified, approved and confirmed. [Amended by 1957 c.103; ~I; 1959 c.653 ~I; 1965 c.282 ~2; 1975 c.642 ~I; 1991 c. 902 ~7] 223.207 Purpose of ORS 223.208. The Legislative Assemb]y hereby declares that the purpose of ORS 223.208 and this section is to provide purchasers of homes or multifamily dwellings with Bancroft financing of system development charges as an alternative to absorbing those charges into the long-term permanent financing of their homes. [1977 c. 722 ~2] 223.208 System development and connection charges oflocal government subject to Bancroft Act. (I) Subject to subsection (2) of this section, the rights and duties accorded ]ocal governments and the owners of property for financing and assessments under ORS 223.205 to 223.775 shall apply to the following: (a) A system development charge designed to finance the purchase or development of a public park or recreational facility or the construction, extension or enlargement of a street, community water supply, storm sewer or sewerage or disposal system as defined in ORS 199.464 imposed by a local government as a condition to issuance of any occupancy permit or imposed by a local government at such other time as, by ordinance, it may determine. (b) That portion of a connection charge imposed by a loca] government that is greater than the amount necessary to reimburse the local government for its costs of inspection and installing connections with system mains. (2) Notwithstanding ORS 223.230, the financing of system development or connection charges under this section may, at the option of the governing body, be a second lien on rea] property, which lien shall be inferior only to the mortgage or other security interest held by the lender of the owner's purchase money. Bonds issued under this subsection shall be issued separately from bonds otherwise issued under ORS 223.205 to 223.775 and shall comply with all applicable federal regulations. [1977 c.722 ~3; 1979 c.837 ~I; 1983 c.349 ~I; 1991 c.902 ~8; 1997 c.249 ~62; 2001 c.662 ~I; 2003 c.802 ~4] http://www.leg.state.or.us!ors/223 .htrnl 10/16/2007 Chapter 223 - Local Improvements and Works Generally Page 16 of 48 223.210 Right of property owners to apply for installment payment of assessment. (I) If the governing body of a local government has proceeded to cause any local improvement to be constructed or made within the corporate limits of the local government, and has determined the final assessment for the local improvement against the property benefited thereby or liable therefor, according to applicable law, the local government shall cause notice of the final assessment to be published. The notice shall identify the local improvement for which the assessment is to be made, each lot to be assessed and the final assessment for each lot. In addition, the notice shall state that the owner of any property to be assessed shall have the right to make application to the local government for payment of the final assessment in installments as provided in this section. A copy of the notice shall be mailed or personally delivered to the owner of each lot to be assessed. (2) The owner of any property to be so assessed, at any time within 10 days after notice of final assessment is first published, may file with the recorder a written application to pay: (a) The whole of the final assessment in installments; or (b) If part of the final assessment has been paid, the unpaid balance of the assessment in installments. (3) At the option of the local government, an installment application may be filed more than 10 days after notice of the final assessment is first published. [Amended by 1957 c.103 92; 1957 c.397 91; 1967 c.239 91; 1991 c.902 99; 2003 c.802 95] 223.212 Right of educational, religious, fraternal or charitable organizations and public corporations to bond the assessment. Any educational, religious, fraternal or charitable organization or public corporation owning property assessed for its proportionate share of the cost of constructing a local improvement shall have the same right to bond the final assessment therefor and having bonded the final assessment shall be subject to the same duties and liabilities as a natural person bonding an assessment. However, the limitations on the amount of an assessment that may be bonded do not apply to an educational, religious, fraternal or charitable organization or public corporation. The organization or public corporation shall be permitted to bond to the full extent of the assessment. [1957 c.95 92; 1991 c.902 910] 223.215 Contents of application to pay in installments; computation of installments. (1 )(a) The installment application shall state that the applicant does thereby waive all irregularities or defects, jurisdictional or otherwise, in the proceedings to cause the local improvement for which the final assessment is levied and in the apportionment of the actual cost of the local improvement. (b) The application shall provide that the applicant agrees to pay the final assessment over a period of not less than 10 years nor more than 30 years and according to such terms as the governing body of the local government may provide. The governing body may provide that the owner of the assessed property may elect to have the final assessment payable over a period of less than 10 years and according to such terms as the governing body may provide. (c) The application shall also provide that the applicant acknowledges and agrees to pay interest at the rate provided by the governing body of the local government on all unpaid assessments, together with an amount, determined by the governing body, sufficient to pay a proportionate part of the cost of administering the bond assessment program and issuing the bonds authorized under ORS 223.235, including but not limited to legal, printing and consultant's fees. (d) The application shall also contain a statement, by lots or blocks, or other convenient description, of the property of the applicant assessed for the improvement. (2) In connection with the final assessments for any local improvement, the governing body of the local government may establish a procedure by which an owner of any property to be assessed may irrevocably elect in writing to have the final assessment levied for a number of years less than 10, which shall be determined by the governing body. The written election shall: (a) Be signed by the owner or a duly authorized representative of the owner; http://www.leg.state.or.us!ors/223 .html 10/16/2007 Chapter 223 - Local Improvements and Works Generally Page 17 of 48 (b) Contain a description of the assessed property and the local improvement for which the assessment is made; and (c) Contain a statement by the owner acknowledging that the improvement is a local improvement as described under ORS 223.001 (9), that payment of the final assessment against the properties benefited by the local improvement plus interest may be spread over at least 10 years and that, notwithstanding any provision oflaw, the owner consents to make payments over a period ofless than 10 years and to have the assessment levied on the benefited property accordingly. (3) The election under subsection (2) of this section shall be recorded in the bond lien docket for the local improvement to which the assessment relates. From and after the time at which the written election is so recorded, it shall be valid and binding upon all subsequent owners of the property or any part thereof. [Amended by 1957 c.l03 g3; 1959 c.653 g2; 1969 c.531 gl; 1971 c.IOO gl; 1975 c.320 gl; 1981 c.322 gl; 1985 c.656 gl; 1991 c.902 gll; 2003 c.802 g6] 223.220 [Amended by 1957 c.103 g4; 1957 c.397 g2; 1975 c.642 g2; repealed by 1991 c.902 gl2l] 223.225 Record of application to be kept. The recorder of the local government shall: (I) Keep all applications filed under ORS 223.210 in convenient form for examination. The applications received for each local improvement shall be separate. (2) Enter in a book kept for that purpose, under separate heads for each local improvement, the date of filing of each application, the name of the applicant, a description of the property and the amount of the final assessment, as shown in the application. [Amended by 1957 c.103 g5; 1991 c.902 g12; 2003 c.802 g7] 223.230 Lien docket; interest; priority; public access. (I) After expiration of the time for filing application under ORS 223.210, the local government shall enter in a docket kept for that purpose, under separate heads for each local improvement, by name or number, a description of each lot or parcel of land or other property against which the final assessment is made, or which bears or is chargeable for a portion of the actual cost of the local improvement, with the name of the owner and the amount of the unpaid final assessment. The entries shall be made as of the date of initial determination and levy of the final assessment. (2) The docket shall stand thereafter as a lien docket as for ad valorem property taxes assessed and levied in favor of the local government against each lot or parcel ofland or other property, until paid, for the following: (a) For the amounts of the unpaid final assessments therein docketed, with interest on the installments of the final assessments at the rate determined by the governing body of the local government under ORS 223.215; and (b) For any additional interest or penalties imposed by the local government with respect to any installments of final assessments that are not paid when due. (3) All unpaid final assessments together with accrued and unpaid interest and penalties are a lien on each lot or parcel ofland or other property, respectively, in favor of the local government, and the lien shall have priority over all other liens and encumbrances whatsoever. (4) For a local improvement district assessment lien or system development charge installment payment contract lien to continue, each local government shall make the appropriate lien record, as prescribed by this section and ORS 223.393, available on hard copy or through an online electronic medium. [Amended by 1957 c.103 g6; 1959 c.653 g3; 1969 c.531 g2; 1975 c.642 g2a; 1981 c.94 glO; 1981 c.322 g2; 1991 c.902 g13; 1995 c.709 g2; 1997 c.840 g2; 2003 c.195 glO; 2005 c.46 gl] 223.235 Issuance of bonds; limitations. (I) When in any local government a bond lien docket is made up, as provided in ORS 223.230, as to the final assessments for any local improvement, the local government shall by ordinance or resolution of the governing body authorize the issue of its bonds pursuant to the applicable provisions ofORS chapter 288 and in accordance with this section. http://www.leg.state.or.us/ors/223 .htrnl 10/16/2007 Chapter 223 - Local Improvements and Works Generally Page 18 of 48 (2) The bonds authorized to be issued under this section must be issued in an amount that does not exceed the unpaid balance of all final assessments for the related local improvements, plus the amounts necessary to fund any debt service reserve and to pay any other financing costs associated with the bonds. (3)(a) If the question of the issuance of the specific bonds has been approved by the electors of the local government and the bonds are issued as general obligation bonds, the local government shall each year assess, levy and collect a tax on all taxable property within its boundaries. The amount of the tax must be sufficient to pay all principal of and interest on the bonds that are due and payable in that year and to replenish any debt service reserves required for the bonds. In computing the amount of taxes to impose, the local government shall: (A) Deduct from the total amount otherwise required the amount of final installment payments that are pledged to the payment of the bonds and that are due and payable in that year; and (B) Add to this net amount the amount of reasonably anticipated delinquencies in the payments of the installments or the taxes. (b) The taxes must be levied in each year and returned to the county officer whose duty it is to extend the tax roll within the time and in the manner provided in ORS 310.060. (c) The taxes become payable at the same time and are collected by the same officer who collects county taxes and must be turned over to the local government according to law. (d) The county officer whose duty it is to extend the county levy shall extend the levy of the local government in the same manner as city taxes are extended. Property may be sold for nonpayment of the taxes levied by a local government in like manner and with like effect as in the case of county and state taxes. (4) If the question of the issuance of the specific bonds has not been approved by the electors of the local government, the local government may issue the bonds as limited tax bonds, as defined in ORS 288.150. (5)(a) All bonds issued pursuant to this section, including general obligation bonds, are secured by and payable from the installments of final assessments with respect to which the bonds were issued. (b) In the ordinance or resolution authorizing the issuance of the bonds, the governing body of the issuing local government may: (A) Provide that installments of final assessments levied with respect to two or more local improvements shall secure a single issue of bonds. (B) Reserve the right to pledge, as security for any bonds thereafter issued pursuant to this section, any installments of final assessments previously pledged as security for other bonds issued pursuant to this section. (c) All bonds must be secured by a lien on the installments of final assessments with respect to which they were issued. The lien is valid, binding and fully perfected from the date of issuance of the bonds. The installments of final assessments are immediately subject to the lien without the physical delivery thereof, the filing of any notice or any further act. The lien is valid, binding and fully perfected against all persons having claims of any kind against the local government or the property assessed whether in tort, contract or otherwise, and irrespective of whether the persons have notice of the lien. (6) As additional security for any bonds issued under this section, including general obligation bonds, the governing body of the issuing local government may pledge or mortgage, or grant security interests in, its revenues, assets and properties, and otherwise secure and enter into covenant with respect to the bonds, as provided in ORS 288.155. (7)(a) A local government may, from time to time after the undertaking of a local improvement has been authorized, borrow money and issue and sell notes for the purpose of providing interim financing for the actual costs of the local improvement. (b) Notes authorized under this subsection may be issued in a single series for the purpose of providing interim financing for two or more local improvements. (c) Notes authorized under this subsection may not mature later than one year after the date upon which the issuing local government expects to issue bonds for the purpose of providing permanent http://www.leg.state.or.us/ors/223.html 10/16/2007 Chapter 223 - Local Improvements and Works Generally Page 19 of 48 financing with respect to installment payments of the final assessments for the local improvements. (d) Any notes authorized under this subsection may be refunded from time to time by the issuance of additional notes or out of the proceeds of bonds issued pursuant to this section. The notes may be made payable from the proceeds of any bonds to be issued under this section to provide permanent financing or from any other sources from which the bonds are payable. (e) The governing body of the issuing local government may pledge to the payment ofthe notes any revenues that may be pledged to the payment of bonds authorized to be issued under this section with respect to the local improvements for which the notes provide interim financing. [Amended by 1957 c.103 ~7; 1959 c.653 ~4; 1967 c.l96 ~I; 1975 c.320 ~2; 1975 c.738 ~I; 1983 c.349 ~2; 1991 c.902 ~14; 1995 c.333 ~ I; 2003 c.802 ~8; 2005 c.443 ~ I] 223.240 [Amended by 1959 c.653 ~5; 1971 c.lOO ~2; 1975 c.320 ~3; 1975 c.642 ~3; repealed by 1991 c.902 ~121] 223.245 Budget to include bond payments. The interest on the bonds and the amounts of the installments of maturing bonds shall be included in the annual budget of the issuing local government. There shall be deducted in the budget the amount that the governing body conservatively estimates will be received from payments of the principal of and interest on installments of final assessments appertaining to the particular bond issue, and from receipts from sales and rentals of property acquired by the local government pursuant to the assessments, during the fiscal year. [Amended by 1983 c.349 ~3; 1991 c.902 ~15; 2003 c.802 ~9] 223.250 [Amended by 1971 c.183 ~I; 1975 c.642 ~4; 1981 c.94 ~II; 1983 c.349 ~4; repealed by 1991 c.902 ~121] 223.255 [Amended by 1957 c.103 ~8; 1967 c.239 ~2; 1983 c.349 ~5; repealed by 1991 c.902 ~121] 223.260 Sale of bonds; disposition of proceeds from bond sales. (I) The proceeds of any bonds or notes authorized to be issued under ORS 223.235 shall be paid by the purchaser to the treasurer of the . issuing local government. Accrued interest and any premium may be credited to any account designated by the issuing local government. The balance of the proceeds shall be credited to the local improvement fund or funds for which the bonds or notes are issued. (2) A local government may create, within the Bancroft Bond Redemption Fund maintained by the local government as required by ORS 223.285, separate accounts for separate issues of bonds or notes issued as provided in ORS 223.235, and may pledge any amounts deposited in the separate accounts to specific issues of bonds or notes without pledging the amounts to any other issues of such bonds or notes. [Amended by 1957 c.l03 ~9; 1975 c.642 ~5; 1983 c.349 ~6; 1991 c.902 ~16; 2003 c.802 ~IO] 223.262 Assessment contracts; transfer of contract rights by local government; use of proceeds. (I) As used in ORS 223.205 and 223.210 to 223.295: (a) "Assessment contract" means the obligation to pay final assessments in installments that arise when a property owner submits an application to pay assessments in installments under ORS 223.210 or a similar provision of a local charter. (b) "Assessment contract rights" includes the right to receive installment payments of final assessments, with interest, made under an assessment contract, and the right to enforce the lien of the final assessment. (2) Any local government that receives or expects to receive assessment contracts may: (a) Sell or assign to third parties all or any portion of its assessment contract rights. (b) Create corporations or other business entities to factor assessment contract rights. (c) Create grantor trusts and transfer to the trusts assessment contract rights. (d) Contract to service assessment contracts and assessment liens for the owners of assessment http://www.leg.state.or.us/ors/223.html 10/16/2007 Chapter 223 - Local Improvements and Works Generally Page 20 of 48 contract rights, or contract with third parties to service assessment contracts and assessment liens for the owners of assessment contract rights. (e) Serve as a trustee for the owners of assessment contract rights. (f) Enter into contracts necessary to carry out the provisions of this section. (3) Any trust created under this section may fractionalize and sell assessment contract rights. (4) Assessment contract rights, any interests therein and any interests in trusts secured primarily by assessment contract rights shall be exempt from registration under ORS 59.055. (5) If assessment contract rights that secure outstanding obligations of a local government are sold or assigned under this section, an amount shall be placed irrevocably in escrow that is calculated to be sufficient to pay all principal and interest on the outstanding obligations as they mature or are irrevocably called for prior redemption, in accordance with ORS 288.677. Any sale proceeds not required to fund the escrow may be placed in the general fund of the local government. If only a portion of the contract rights securing outstanding obligations is sold, then the amount of outstanding obligations that must be defeased pursuant to this subsection shall be that proportion of the principal amount of the outstanding obligations that the principal amount of the contract rights that are sold represents to the total principal amount of the contract rights that secure the outstanding obligations. [1989 c.603 ~2; 1991 c.902 ~17; 2003 c.802 ~II] 223.265 Payment of installments; due dates. (1) The installments due and payable under an assessment contract shall be due and payable periodically as the governing body of the local government shall determine but shall not be due and payable over a term in excess of 30 years. Each installment is due and payable with interest as described under subsection (3) of this section. (2) The installments and interest are payable to the treasurer by the property owner whose application to pay the cost of the local improvement by installments has been filed as provided in ORS 223.210. (3) The amount of each installment (percentage of the total final assessment) shall be determined by the governing body of the local government and shall be as appears by the bond lien docket described in ORS 223.230. Each installment shall be due and payable with the accrued and unpaid interest on the unpaid balance of the final assessment amount at the rate per annum determined by the governing body of the local government under ORS 223.215. (4) The first payment shall be due and payable on the date that the governing body shall determine, and subsequent payments shall be due and payable on subsequent periodic dates thereafter as shall have been determined by the governing body. [Amended by 1957 c.103 ~IO; 1959 c.653 ~6; 1969 c.531 ~3; 1971 c.lOO ~3; 1975 c.320 ~4; 1981 c.322 ~4; 1991 c.902 ~18; 2003 c.802 ~12] 223.270 Procedure for collection on default. (I) If the owner neglects or refuses to pay installments under ORS 223.265 as they become due and payable for a period of one year, then the governing body of the local government may, by reason of the neglect or refusal to pay the installments, and while the neglect and refusal to pay continues, pass a resolution: (a) Giving the name of the owner then in default in the payment of the sums due; (b) Stating the sums due, either principal or interest and any unpaid late payment penalties or charges; (c) Containing a description ofthe property upon which the sums are owing; and (d) Declaring the whole sum, both principal and interest, due and payable at once. (2) The governing body may then proceed at once to collect all unpaid installments and to enforce collection thereof, with all unpaid late payment penalties and charges added thereto, in the same manner in which delinquent property taxes are collected under applicable law or, in the case of a city, in the same manner as street and sewer assessments are collected pursuant to the terms of the city charter. [Amended by 1991 c.902 ~19; 2003 c.802 ~13] 223.275 Notice to pay; receipts and entries on lien docket. The recorder of a local government http://www.leg.state.or.us/ors/223.html 10/16/2007 Chapter 223 - Local Improvements and Works Generally Page 21 of 48 shall, when installments and interest on any final assessment in the bond lien docket are due, make the proper extensions of the installments and interest on the bond lien docket and turn the same over to the treasurer ofthe local government. The treasurer then shall notify the property owner that the installments are due and payable, but a failure of any owner to receive the notice shall not prevent collection of the installment as provided in ORS 223.270. The treasurer shall issue a receipt to the person paying the installments and interest, and shall file duplicates of the receipts with the recorder. When the treasurer returns the bond lien docket, the recorder shall make the proper entries on the bond lien docket showing the amount of each payment and the date of the payment. [Amended by 1991 c.902 g20; 2003 c.802 g14] 223.280 Right of owner to prepay balance and discharge lien. At any time after issuance of bonds under ORS 223.235. any owner of a lot against which the final assessment is made and lien docketed may pay into the treasury of the issuing local government the whole amount of the final assessment for which the lien is docketed, together with the full amount of interest and late payment penalties and charges accrued thereon to the date of payment. Upon producing to the recorder of the local government the receipt of the treasurer, the recorder shall enter in the lien docket opposite the entry of the lien the fact and date of the payment and that the lien is discharged. [Amended by 1991 c.902 g21; 2003 c.802 g15] 223.285 Separate funds kept for moneys received; investments authorized. Any treasurer receiving any payments of final assessments or interest on unpaid installments by virtue of the Bancroft Bonding Act, shall account for the payments separately from other funds of the local government. The amount of the moneys paid on account of installments, interest on unpaid installments and late payment penalties or charges, shall be placed to the credit of a fund to be known and designated as "Bancroft Bond Redemption Fund" or in any designated account of the redemption fund that may be established by the local government under this section. All interest and principal due on bonds issued under ORS 223.235 shall be paid from the redemption fund or from a designated account of the redemption fund. The amount placed to the credit of the redemption fund or any account of the fund shall from time to time, under the direction of the governing body of the issuing local government, be invested as provided in ORS 294.035 or 294.805 to 294.895. [Amended by 1975 c.495 g I; 1991 c.902 g22; 2003 c.802 g 16] 223.290 Payments entered on lien docket; lien discharge. Entries of payments of installments, interest and late payment penalties or charges, made under the Bancroft Bonding Act, shall be made in the lien docket as they are received, with the date of payment. The payments so made and entered shall discharge the lien to the amount of the payment and from the date of the payment. [Amended by 1991 c.902 g23; 1995 c.709 g3; 1997 c.840 g3] 223.295 Limit on city indebtedness. (I) A city may incur indebtedness in the form of general obligation bonds and general obligation interim financing notes pursuant to ORS 223.235 to an amount which shall not exceed 0.03 of the latest real market valuation of the city. (2) The general obligation bonds and general obligation interim financing note.s issued pursuant to ORS 223.235 shall be determined by deducting from the sum total of outstanding general obligation bonds and general obligation interim financing notes issued pursuant to ORS 223.235, the aggregate of sinking funds or other funds applicable to the payment thereof, less the aggregate of overdrafts, if any, in the related improvement bond interest fund. [Amended by 1955 c.28 gl; 1955 c.686 gl; 1959 c.653 g7; 1963 c.545 g2; 1965 c.282 g3; 1985 c.441 gl; 1991 c.459 g351; 1991 c.902 g24] SYSTEM DEVELOPMENT CHARGES 223.297 Policy. The purpose ofORS 223.297 to 223.314 is to provide a uniform framework for the imposition of system development charges by local governments, to provide equitable funding for http://www.leg.state.or.us/ors/223 .htrnl 10/16/2007 Chapter 223 - Local Improvements and Works Generally Page 22 of 48 orderly growth and development in Oregon's communities and to establish that the charges may be used only for capital improvements. [1989 c.449 Sl; 1991 c.902 S25; 2003 c.765 SI; 2003 c.802 S17] Note: 223.297 to 223.314 were added to and made a part of223.205 to 223.295 by legislative action, but were not added to and made a part of the Bancroft Bonding Act. See section 10, chapter 449, Oregon Laws 1989. 223.299 Definitions for ORS 223.297 to 223.314. As used in ORS 223.297 to 223.314: (I)(a) "Capital improvement" means facilities or assets used for the following: (A) Water supply, treatment and distribution; (B) Waste water collection, transmission, treatment and disposal; (C) Drainage and flood control; (D) Transportation; or (E) Parks and recreation. (b) "Capital improvement" does not include costs of the operation or routine maintenance of capital improvements. (2) "Improvement fee" means a fee for costs associated with capital improvements to be constructed. (3) "Reimbursement fee" means a fee for costs associated with capital improvements already constructed, or under construction when the fee is established, for which the local government determines that capacity exists. (4)(a) "System 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 or issuance of a development permit, building permit or connection to the capital improvement. "System development charge" includes that portion of a sewer or water system connection charge that is greater than the amount necessary to reimburse the local government for its average cost of inspecting and installing connections with water and sewer facilities. (b) "System development charge" does not include any 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 upon a land use decision, expedited land division or limited land use decision. [1989 c.449 S2; 1991 c.817 S29; 1991 c.902 S26; 1995 c.595 S28; 2003 c.765 s2a; 2003 c.802 S 18] Note: See note under 223.297. 223.300 [Repealed by 1975 c.642 S26] 223.301 Certain system development charges and methodologies prohibited. (I) As used in this section, "employer" means any person who contracts to pay remuneration for, and secures the right to direct and control the services of, any person. (2) A local government may not establish or impose a system development charge that requires an employer to pay a reimbursement fee or an improvement fee based on: (a) The number of individuals hired by the employer after a specified date; or (b) A methodology that assumes that costs are necessarily incurred for capital improvements when an employer hires an additional employee. (3) A methodology set forth in an ordinance or resolution that establishes an improvement fee or a reimbursement fee shall not include or incorporate any method or system under which the payment of the fee or the amount of the fee is determined by the number of employees of an employer without regard to new construction, new development or new use of an existing structure by the employer. [1999 c.1 098 S2; 2003 c.802 S 19] Note: See note under 223.297. http://www.leg.state.or.us/ors/223.html 10/16/2007 Chapter 223 - Local Improvements and Works Generally Page 23 of 48 223.302 System development charges; use of revenues; review procedures. (1) Local governments are authorized to establish system development charges, but the revenues produced therefrom must be expended only in accordance with ORS 223.297 to 223.314. If a local government expends revenues from system development charges in violation of the limitations described in ORS 223.307, the local government shall replace the misspent amount with moneys derived from sources other than system development charges. Replacement moneys must be deposited in a fund designated for the system development charge revenues not later than one year following a determination that the funds were misspent. (2) Local governments shall adopt administrative review procedures by which any citizen or other interested person may challenge an expenditure of system development charge revenues. Such procedures shall provide that such a challenge must be filed within two years of the expenditure of the system development charge revenues. The decision of the local government shall be judicially reviewed only as provided in ORS 34.010 to 34.100. (3)(a) A local government must advise a person who makes a written objection to the calculation of a system development charge of the right to petition for review pursuant to ORS 34.010 to 34.100. (b) If a local government has adopted an administrative review procedure for objections to the calculation of a system development charge, the local government shall provide adequate notice regarding the procedure for review to a person who makes a written objection to the calculation of a system development charge. [1989 c.449 ~3; 1991 c.902 ~27; 2001 c.662 ~2; 2003 c.765 ~3; 2003 c.802 ~20] Note: See note under 223.297. 223.304 Determination of amount of system development charges; methodology; credit allowed against charge; limitation of action contesting methodology for imposing charge; notification request. (1 )(a) Reimbursement fees must be established or modified by ordinance or resolution setting forth a methodology that is, when applicable, based on: (A) Ratemaking principles employed to finance publicly owned capital improvements; (B) Prior contributions by existing users; (C) Gifts or grants from federal or state government or private persons; (D) The value of unused capacity available to future system users or the cost of the existing facilities; and (E) Other relevant factors identified by the local government imposing the fee. (b) The methodology for establishing or modifying a reimbursement fee must: (A) Promote the objective of future system users contributing no more than an equitable share to the cost of existing facilities. (B) Be available for public inspection. (2) Improvement fees must: (a) Be established or modified by ordinance or resolution setting forth a methodology that is available for public inspection and demonstrates consideration of: (A) The projected cost of the capital improvements identified in the plan and list adopted pursuant to ORS 223.309 that are needed to increase the capacity of the systems to which the fee is related; and (B) The need for increased capacity in the system to which the fee is related that will be required to serve the demands placed on the system by future users. (b) Be calculated to obtain the cost of capital improvements for the projected need for available system capacity for future users. (3) A local government may establish and impose a system development charge that is a combination of a reimbursement fee and an improvement fee, if the methodology demonstrates that the charge is not based on providing the same system capacity. (4) The ordinance or resolution that establishes or modifies an improvement fee shall also provide http://www.leg.state.or.us/ors/223 .html 10/16/2007 Chapter 223 - Local Improvements and Works Generally Page 24 of 48 for a credit against such fee for the construction of a qualified public improvement. A "qualified public improvement" means a capital improvement that is required as a condition of development approval, identified in the plan and list adopted pursuant to ORS 223.309 and either: (a) Not located on or contiguous to property that is the subject of development approval; or (b) Located in whole or in part on or contiguous to property that is the subject of development approval and required to be built larger or with greater capacity than is necessary for the particular development project to which the improvement fee is related. (5)(a) The credit provided for in subsection (4) of this section is only for the improvement fee charged for the type of improvement being constructed, and credit for qualified public improvements under subsection (4)(b) of this section may be granted only for the cost of that portion of such improvement that exceeds the local government's 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 under subsection (4)(b) of this section. (b) A local government may deny the credit provided for in subsection (4) of this section if the local government demonstrates: (A) That the application does not meet the requirements of subsection (4) of this section; or (B) By reference to the list adopted pursuant to ORS 223.309, that the improvement for which credit is sought was not included in the plan and list adopted pursuant to ORS 223.309. (c) 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. This subsection does not prohibit a local government from providing a greater credit, or from establishing a system providing for the transferability of credits, or from providing a credit for a capital improvement not identified in the plan and list adopted pursuant to ORS 223.309, or from providing a share of the cost of such improvement by other means, if a local government so chooses. (d) Credits must be used in the time specified in the ordinance but not later than 10 years from the date the credit is given. (6) Any local government that proposes to establish or modify a system development charge shall maintain a list of persons who have made a written request for notification prior to adoption or amendment of a methodology for any system development charge. (7)(a) Written notice must be mailed to persons on the list at least 90 days prior to the first hearing to establish or modify a system development charge, and the methodology supporting the system development charge must be available at least 60 days prior to the first hearing. The failure of a person on the list to receive a notice that was mailed does not invalidate the action of the local government. The local government may periodically delete names from the list, but at least 30 days prior to removing a name from the list shall notify the person whose name is to be deleted that a new written request for notification is required if the person wishes to remain on the notification list. (b) Legal action intended to contest the methodology used for calculating a system development charge may not be filed after 60 days following adoption or modification of the system development charge ordinance or resolution by the local government. A person shall request judicial review of the methodology used for calculating a system development charge only as provided in ORS 34.010 to 34.100. (8) A change in the amount of a reimbursement fee or an improvement fee is not a modification of the system development charge methodology if the change in amount is based on: (a) A change in the cost of materials, labor or real property applied to projects or project capacity as set forth on the list adopted pursuant to ORS 223.309; or (b) The periodic application of one or more specific cost indexes or other periodic data sources. A specific cost index or periodic data source must be: (A) A relevant measurement of the average change in prices or costs over an identified time period for materials, labor, real property or a combination of the three; http://www.leg.state.or.us!ors/223.html 10/16/2007 Chapter 223 - Local Improvements and Works Generally Page 25 of 48 (B) Published by a recognized organization or agency that produces the index or data source for reasons that are independent of the system development charge methodology; and (C) Incorporated as part of the established methodology or identified and adopted in a separate ordinance, resolution or order. []989 c.449 ~4; 199] c.902 ~28; ]993 c.804 ~20; 200] c.662 ~3; 2003 c.765 ~~4a,5a; 2003 c.802 ~2]] Note: See note under 223.297. 223.305 [Repea]ed by 1971 c.325 ~]] 223.307 Authorized expenditure of system development charges. (]) Reimbursement fees may be spent only on capita] improvements associated with the systems for which the fees are assessed including expenditures relating to repayment of indebtedness. (2) Improvement fees may be spent only on capacity increasing capita] improvements, including expenditures relating to repayment of debt for such improvements. An increase in system capacity may be established if a capital improvement increases the level of performance or service provided by existing facilities or provides new facilities. The portion of the improvements funded by improvement fees must be related to the need for increased capacity to provide service for future users. (3) System development charges may not be expended for costs associated with the construction of administrative office facilities that are more than an incidental part of other capital improvements or for the expenses ofthe operation or maintenance of the facilities constructed with system development charge revenues. (4) Any capital improvement being funded wholly or in part with system development charge revenues must be included in the plan and list adopted by a loca] government pursuant to ORS 223.309. (5) Notwithstanding subsections (]) and (2) of this section, system development charge revenues may be expended on the costs of complying with the provisions ofORS 223.297 to 223.3 ]4, including the costs of developing system development charge methodologies and providing an annual accounting of system development charge expenditures. [1989 c.449 ~5; ] 99] c.902 ~29; 2003 c. 765 ~6; 2003 c.802 ~22] Note: See note under 223.297. 223.309 Preparation of plan for capital improvements financed by system development charges; modification. (]) Prior to the establishment of a system development charge by ordinance or resolution, a local government shall prepare a capital improvement plan, public facilities plan, master plan or comparable plan that includes a list of the capital improvements that the local government intends to fund, in whole or in part, with revenues from an improvement fee and the estimated cost, timing and percentage of costs eligib]e to be funded with revenues from the improvement fee for each improvement. (2) A ]ocal government that has prepared a plan and the list described in subsection (]) ofthis section may modifY the plan and list at any time. If a system development charge will be increased by a proposed modification of the list to include a capacity increasing capital improvement, as described in ORS 223.307 (2): (a) The local government shall provide, at least 30 days prior to the adoption of the modification, notice of the proposed modification to the persons who have requested written notice under ORS 223.304 (6). (b) The local government shall hold a public hearing if the local government receives a written request for a hearing on the proposed modification within seven days of the date the proposed modification is scheduled for adoption. (c) Notwithstanding ORS 294.160, a public hearing is not required if the ]ocal government does not receive a written request for a hearing. http://www.leg.state.or.us/ors/223 .htrn] ] 0/16/2007 Chapter 223 - Local Improvements and Works Generally Page 26 of 48 (d) The decision of a local government to increase the system development charge by modifYing the list may be judicially reviewed only as provided in ORS 34.010 to 34.100. [1989 c.449 96; 1991 c.902 930; 2001 c.662 94; 2003 c.765 97a; 2003 c.802 923] Note: See note under 223.297. 223.310 [Amended by 1957 c.397 93; repealed by 1971 c.325 91] 223.311 Deposit of system development charge revenues; annual accounting. (I) System development charge revenues must be deposited in accounts designated for such moneys. The local government shall provide an annual accounting, to be completed by January I of each year, for system development charges showing the total amount of system development charge revenues collected for each system and the projects that were funded in the previous fiscal year. (2) The local government shall include in the annual accounting: (a) A list of the amount spent on each project funded, in whole or in part, with system development charge revenues; and (b) The amount of revenue collected by the local government from system development charges and attributed to the costs of complying with the provisions ofORS 223.297 to 223.314, as described in ORS 223.307. [1989 c.449 97; 1991 c.902 931; 2001 c.662 95; 2003 c.765 98a; 2003 c.802 924] Note: See note under 223.297. 223.312 [1957 c.95 94; repealed by 1971 c.325 91] 223.313 Application ofORS 223.297 to 223.314. (I) ORS 223.297 to 223.314 shall apply only to system development charges in effect on or after July I, 1991. (2) The provisions ofORS 223.297 to 223.314 shall not be applicable ifthey are construed to impair bond obligations for which system development charges have been pledged or to impair the ability of local governments to issue new bonds or other financing as provided by law for improvements allowed under ORS 223.297 to 223.314. [1989 c.449 98; 1991 c.902 932; 2003 c.802 925] Note: See note under 223.297. 223.314 Establishment or modification of system development charge not a land use decision. The establishment, modification or implementation of a system development charge, or a plan or list adopted pursuant to ORS 223.309, or any modification of a plan or list, is not a land use decision pursuant to ORS chapters 195 and 197. [1989 c.449 99; 2001 c.662 96; 2003 c.765 99] Note: See note under 223.297. 223.315 [Repealed by 1971 c.325 91] APPORTIONMENT OF GOVERNMENT ASSESSMENTS UPON PARTITION 223.317 Apportionment of special assessment among parcels in subsequent partition of tract. (I) Notwithstanding any other law, a local government may apportion a final assessment levied by it against a single tract or parcel of real property among all the parcels formed from a subsequent partition or other division of that tract or parcel, if the subsequent partition or division is in accordance with ORS 92.010 to 92.190 and is consistent with all applicable comprehensive plans as acknowledged by the Land Conservation and Development Commission under ORS 197.251. The proportionate distribution of a final assessment authorized under this subsection may be made whenever the final assessment http://www.leg.state.or.us!ors!223.html 10/16/2007 Chapter 223 - Local Improvements and Works Generally Page 27 of 48 remains wholly or partially unpaid, and full payment or an installment payment is not due. (2) A local government shall apportion a final assessment under this section when requested to do so by any owner, mortgagee or lienholder of a parcel of real property that was formed from the partition or other division of the larger tract of real property against which the final assessment was originally levied. When the deed, mortgage or other instrument evidencing the applicant's ownership or other interest in the parcel has not been recorded by the county clerk of the county in which the parcel is situated, the local government shall not apportion the final assessment unless the applicant files a true copy of that deed, mortgage or instrument with the local government. (3) Apportionment of a final assessment under this section shall be done in accordance with an order or resolution of the governing body of the local government. The order or resolution shall describe each parcel of real property affected by the apportionment, the amount of the final assessment levied against each parcel, the owner of each parcel and such additional information as is required to keep a permanent and complete record of the final assessments and the payments thereon. A copy of the order or resolution shall be filed with the recorder required to maintain the lien docket for the local government, who shall make any necessary changes or entries in the lien docket for the local government. [Formerly 308.140; 1991 c.902 933; 2003 c.802 926] Note: 223.317 to 223.327 were enacted into law by the Legislative Assembly but were not added to or made a part of ORS chapter 223 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation. 223.320 [Amended by 1957 c.397 94; repealed by 1971 c.325 91) 223.322 Prorate of unpaid installments. When a final assessment is being paid in installments under the Bancroft Bonding Act or ORS 450.897, if the final assessment is apportioned among smaller parcels of real property under ORS 223.317 to 223.327, the installments remaining unpaid shall be prorated among those smaller parcels so that each parcel shall be charged with that percentage of the remaining installment payments equal to the percentage of the unpaid final assessment charged to the parcel upon apportionment. [Formerly 308.145; 1991 c.902 934; 1995 c.333 922; 1997 c.833 921] Note: See note under 223.317. 223.325 [Repealed by 1971 c.325 91] 223.327 Procedure for equitable apportionment by ordinance or regulation. A local government that imposes final assessments shall adopt an ordinance or other regulations establishing procedures for the equitable apportionment of final assessments under ORS 223.317 to 223.327. The ordinance or regulations shall authorize the local government to establish fees reasonably calculated to reimburse it for its actual costs in apportioning final assessments under ORS 223.317 to 223.327. The provisions of ORS 223.317 to 223.327 relating to apportionment of final assessments shall apply to estimated assessments with respect to any tract or parcel divided into smaller parcels prior to the levy of the final assessment. [Formerly 308.150; 1991 c.902 935; 2003 c.802 927] Note: See note under 223.317. 223.330 [Amended by 1969 c.531 94; repealed by 1971 c.325 91] 223.335 [Repealed by 1971 c.325 91] 223.340 [Repealed by 1971 c.325 91] http://www.leg.state.or.us!ors/223.html 10/16/2007 Chapter 223 - Loca] Improvements and Works Generally Page 28 of 48 223.345 [Repealed by 1971 c.325 ~I] 223.350 [Repea]ed by 197] c.325 ~I] 223.355 [Amended by 1969 c.531 ~5; repealed by 1971 c.325 ~I] 223.360 [Repealed by 1971 c.325 ~1) 223.365 [Repealed by 1971 c.325 ~]] 223.370 [Repealed by 1971 c.325 ~ I] 223.375 [Repea]ed by 1971 c.325 ~I] 223.380 [Repealed by 1971 c.325 ~I] 223.385 [Repealed by 1971 c.325 ~I] ASSESSMENTS FOR LOCAL IMPROVEMENTS 223.387 Description of real property; effect of error in name of owner. In levying, collecting and enforcing assessments for local improvement, the following shall apply: (I) Real property may be described by giving the subdivision according to the United States survey when coincident with the boundaries thereof, or by lots, blocks and addition names, or by giving the boundaries thereof by metes and bounds, or by reference to the book and page of any public record of the county where the description may be found, or by designation of tax lot number referring to a record kept by the assessor of descriptions of real properties of the county, which record shall constitute a public record, or in any other manner as to cause the description to be capable of being made certain. Initial letters, abbreviations, figures, fractions and exponents, to designate the township, range, section, or part of a section, or the number of any lot or block or part thereof, or any distance, course, bearing or direction, may be employed in any description of real property. (2) If the owner of any land is unknown, the land may be assessed to "unknown owner," or "unknown owners." If the property is correctly described, no final assessment shall be invalidated by a mistake in the name of the owner of the rea] property assessed or by the omission of the name of the owner or the entry of a name other than that of the true owner. Where the name of the true owner, or the owner of record, of any parcel of real property is given, the final assessment shall not be held invalid on account of any error or irregularity in the description if the description would be sufficient in a deed of conveyance from the owner, or is such that, in a suit to enforce a contract to convey, employing such description a court of equity would hold it to be good and sufficient. (3) Any description of real property which conforms substantially to the requirements ofthis section shall be a sufficient description in all proceedings of assessment relating or leading to a final assessment for a local improvement, foreclosure and sale of delinquent assessments, and in any other proceeding related to or connected with levying, collecting and enforcing final assessments for special benefits to the property. [1959 c.219 ~I; 1965 c.282 ~4; 1971 c.198 ~I; 1991 c.902 ~36) 223.389 Procedure in making local assessments for local improvements. (I) The governing body of a local government may prescribe by ordinance or resolution the procedure to be followed in making estimated assessments and final assessments for benefits from a local improvement upon the lots that have been benefited by all or part of the local improvement, to the extent that the charter of the local government does not prescribe the method of procedure. In addition, in any case where the charter of a local government specifies a method of procedure that does not comply or is not consistent with the http://www.leg.state.or.us/ors/223 .html 10/16/2007 Chapter 223 - Local Improvements and Works Generally Page 29 of 48 requirements of the Oregon Constitution, the governing body of the local government may prescribe by ordinance or resolution the procedure that shall comply and be consistent with the requirements of the Oregon Constitution, and the provisions of the ordinance or resolution shall apply in lieu of the charter provisions. (2)(a) The ordinance or resolution prescribing the procedure shall provide for adoption or enactment of an ordinance or resolution designating the local improvement as to which an assessment is contemplated, describing the boundaries of the district to be assessed. Provision shall be made for at least 10 days' notice to owners of property within the proposed district in which the local improvement is contemplated. The notice may be made by posting, by newspaper publication or by mail, or by any combination of such methods. The notice shall specifY the time and place where the governing body will hear and consider objections or remonstrances to the proposed local improvement by any parties aggrieved thereby. (b) If the governing body determines that the local improvement shall be made, when the estimated cost thereof is ascertained on the basis of the contract award or the departmental cost of the local government, the governing body shall determine whether the property benefited shall bear all or a portion of the cost. The recorder or other person designated by the governing body shall prepare the estimated assessment to the respective lots within the assessment district and file it in the appropriate office of the local government. Notice of the estimated assessment shall be mailed or personally delivered to the owner of each lot proposed to be assessed. The notice shall state the amounts of the estimated assessment proposed on that property and shall fix a date by which time objections shall be filed with the recorder. Any objection shall state the grounds for the objection. The governing body shall consider the objections and grounds and may adopt, correct, modifY or revise the estimated assessments. (c) The governing body shall determine the amount of estimated assessment to be charged against each lot within the district, according to the special and peculiar benefits accruing to the lot from the local improvement, and shall by ordinance or resolution spread the estimated assessments. [1959 c.219 ~2; 1991 c.902 ~37; 2003 c.802 ~28] 223.391 Notice of proposed assessment to owner of affected lot. If a notice is required to be sent to the owner of a lot affected by a proposed assessment, the notice shall be addressed to the owner or the owner's agent. If the address of the owner or of the owner's agent is unknown to the recorder, the recorder shall mail the notice addressed to the owner or the owner's agent at the address where the property is located. Any mistake, error, omission or failure with respect to the mailing shall not be jurisdictional or invalidate the assessment proceedings, but there shall be no foreclosure or legal action to collect until notice has been given by personal service upon the property owner, or, if personal service cannot be had, then by publication once a week for two successive weeks in a newspaper designated by the governing body and having general circulation within the boundaries of the local government where the property is located. [1959 c.219 ~3; 1991 c.902 ~38; 2003 c.802 ~29] 223.393 Estimated and final assessments become liens. Estimated and final assessments shall become a lien upon the property assessed from and after the passage of the ordinance or resolution spreading the same and entry in appropriate lien record of the local government. The estimated assessment lien shall continue until the time the estimated assessment becomes a final assessment. The local government may enforce collection of such assessments as provided by ORS 223.505 to 223.650. [1959 c.219 ~4; 1991 c.902 ~39; 2003 c.802 ~30] 223.395 Deficit assessments or refunds when initial assessment based on estimated cost. If the initial assessment has been made on the basis of estimated cost, and upon the completion of the work the cost is found to be greater than the estimated cost, the governing body may make a deficit assessment for the additional cost. Proposed assessments upon the respective lots within the assessment district for the proportionate share of the deficit shall be made; and notices shall be sent; opportunity for objections shall be given; such objections shall be considered; and determination of the assessment against each http://www.leg.state.or.us/ors/223.html 10/16/2007 Chapter 223 - Local Improvements and Works Generally Page 30 of 48 particular lot, block or parcel of land shall be made as in the case of the initial assessment; and the deficit assessment spread by ordinance. If assessments have been made on the basis of estimated cost, and upon completion the cost is found to be less than the estimated cost, provision shall be made for refund of the excess or overplus. [1959 c.219 g5; 1991 c.902 g40] 223.397 [1959 c.219 gg6,7; repealed by 1963 c.507 gl] 223.399 Powers of local government concerning assessments for local improvements. The governing body of a local government may impose additional procedural requirements. The procedural provisions ofORS 223.387 to 223.399 shall apply only where the charter or an ordinance of a local government does not specifY otherwise and the charter or ordinance provisions comply and are consistent with the requirements of the Oregon Constitution. The charter or ordinance provisions shall apply to local improvements permitted by law. A local government may not authorize a local improvement prohibited by percentage of remonstrance or otherwise under the charter of the local government. [1959 c.219 g8; 1965 c.133 gl; 1991 c.902 g41; 2003 c.802 g31] 223.401 Review of assessment. Notwithstanding any of the provisions of ORS 223.387 to 223.399, owners of any property against which an assessment for local improvements has been imposed may seek a review thereof under the provisions ofORS 34.010 to 34.100. [1965 c.B3 g2] REASSESSMENT 223.405 Definitions for ORS 223.405 to 223.485. As used in ORS 223.405 to 223.485, unless the context requires otherwise, "objection" includes remonstrances. [Amended by 1965 c.282 g5; 1991 c.902 g42] 223.410 Authority of governing body to make reassessmeut. Whenever all or part of any estimated or final assessment for local improvements was or is declared void or set aside for any reason or its enforcement refused by any court by reason of jurisdictional or other defects in procedure, whether directly or by virtue of any court decision or when the governing body is in doubt as to the validity of all or part of any estimated or final assessment by reason of such defects in procedure, the governing body may by ordinance or resolution make a new estimated or final assessment or reassessment with respect to all or part of the original estimated or final assessment upon the lots which have been benefited by all or part of the local improvement to the extent of their respective and proportionate shares of the full value of such benefit. [Amended by 1991 c.902 g43] 223.415 Basis for, amount and method of reassessment. The reassessment shall be based upon the special and peculiar benefit of the local improvement to the respective lots at the time of the original making of the local improvement. The amount of the reassessment shall not be limited to the amount of the original estimated or final assessment. In the case of a reassessment of a final assessment: (I) The property embraced in the reassessment shall be limited to property embraced in the original final assessment; (2) Property on which the original final assessment was paid in full shall not be included in the reassessment; and (3) Interest from the date of delinquency of the original final assessment may be added by the governing body to the reassessment in cases where the property was included in the original final assessment, but such interest shall not apply to any portion of the reassessment that exceeds the amount of the original final assessment. The reassessment shall be made in an equitable manner as nearly as may be in accordance with the law in force at the time the local improvement was made, but the governing body may adopt a different plan of apportioning benefits or exclude portions of the district when in its judgment it is essential to secure an equitable assessment. Credit shall be allowed on the new assessment http://www.leg.state.or.us!ors!223.html 10/16/2007 Chapter 223 - Local Improvements and Works Generally Page 31 of 48 for all payments made on the original final assessment. [Amended by 1991 c.902 944] 223.420 Effect of reassessment; exceptions. The reassessment when made shall become a charge upon the property upon which it is laid notwithstanding the omission, failure or neglect of any officer, body or person to comply with the provisions of the charter or law connected with or relating to the local improvement and original estimated or final assessment or any previous reassessment, and although the proceedings of the governing body or the acts of any officer, contractor or other person connected with the local improvement or assessment may have been irregular or defective, whether such irregularity or defect was jurisdictional or otherwise. The reassessment shall not be made in case of any local improvement wherein a remonstrance sufficient in law to defeat it has been duly filed prior to the making of the local improvement. [Amended by 1991 c.902 945] 223.425 Resolution to reassess. The proceedings required by the charter or other law for making of the original estimated or final assessment are not required with reference to the making of a reassessment. The reassessment shall be initiated by adoption of a resolution designating the improvement as to which a reassessment is contemplated, describing the boundaries ofthe district that the governing body contemplates for the reassessment and directing the recorder or other person to prepare a proposed reassessment upon the property included within the district. After passage of such resolution, the recorder or other person shall prepare the proposed reassessment and file it in the office of the recorder. [Amended by 1991 c.902 946] 223.430 Publication of notice of reassessment; contents. After the proposed reassessment is filed in the office of the recorder, the recorder shall give notice thereofby not less than four successive publications in a newspaper published in the city in which the principal offices of the local government are located and, if there is no newspaper published in the city, in a newspaper to be designated by the governing body. The notice shall show that the proposed reassessment is on file in the office of the recorder, giving the date of the passage of the resolution authorizing it, the boundaries of the district or a statement of the property affected by the proposed reassessment, and specifYing the time and place where the governing body will hear and consider objections to the proposed reassessment by any parties aggrieved thereby. [Amended by 1991 c.902 947; 2003 c.802 932] 223.435 Personal notice to each owner; right to file objections. The recorder shall, within five days after the date of first publication of the notice, mail or personally deliver to the owner of each lot affected by the proposed reassessment, or to the agent of such owner, a notice of the proposed reassessment, stating the matters set out in the printed notice and also the amount proposed to be charged against the lot. If the address of the owner or of the owner's agent is unknown to the recorder, the recorder shall mail the notice addressed to the owner or owner's agent at the address where such property is located. Any mistake, error, omission or failure with respect to such mailing shall not be jurisdictional or invalidate the reassessment proceedings. The owners of any property included in the description of the printed notice, or any person having an interest in that property, may, within 10 days from the day of last insertion of the printed notice, file in writing with the recorder objections against the proposed reassessment. [Amended by 1991 c.902 948] 223.440 Hearing on objections; revision of reassessment. At the time and place appointed in the notice the governing body shall hear and determine all objections filed under ORS 223.435. The governing body may adjourn the hearing from time to time, and correct, modifY or revise the proposed reassessment or set it aside and order the making ofa new proposed reassessment. However, if the proposed reassessment is corrected or revised so as to increase the amount proposed to be charged against any property, such reassessment shall not be made until after a new notice has been given as stated in ORS 233.435 to the owners of property against which the amount of assessment is proposed to be thus increased. The publication of the notice may be for not less than two successive insertions in a http://www.leg.state.or.us/ors/223.html 10/16/2007 Chapter 223 ~ Local Improvements and Works Generally Page 32 of 48 newspaper as provided in ORS 223.430, and the time when action may be taken thereon may be not less than five days after the date of last insertion. If the proposed reassessment is set aside and a new apportionment ordered, notice shall be given of the new apportionment in the manner stated in ORS 223.430 and 223.435 and action taken thereon as provided in ORS 223.435 and 223.440. [Amended by 1991 c.902 949] 223.445 Reassessment ordinance or resolution. When the governing body has determined what in its judgment is a fair, just and reasonable reassessment, it shall pass an ordinance or resolution setting out and making the reassessment. The reassessment so made shall be deemed to be regular, correct, valid and just, except as it may be modified under ORS 223.450 and 223.455. [Amended by 1991 c.902 950] 223.450 Lien docket entry; crediting prior payments. When the reassessment is duly made it shall be entered in the lien docket of the local government. All provisions for bonding and paying by installments shall be applicable, and such liens of the local government shall be enforced and collected in the manner provided for collection of liens for an original local improvement. All sums paid upon the former final assessment or any previous reassessment shall be credited to the property on account of which it was paid and as of the date of payment. [Amended by 1991 c.902 951; 2003 c.802 933] 223.455 Right of purchaser at sale under prior assessment. In cases where a sale was made under the original final assessment or any previous reassessment, with reference to such local improvement, and the property was not redeemed from the sale, the purchaser at the sale is subrogated to the rights of the local government with reference to the property upon such reassessment if the purchaser waives all penalties and interest, except such interest as may be provided for on the reassessment, and delivers up for cancellation any certificate or other evidence of the sale. If a deed was issued at the sale, the grantee therein, or the heirs, executors, administrators, successors or assigns of the grantee, shall execute a deed of release and quitclaim of all right, title and interest in the property under such sale to the owner of the property and deliver the deed to the recorder, so that the owner's title may be cleared of the sale. The recorder shall act as escrow holder of such certificate or other evidence of sale and of such deed pending completion of reassessment. If the reassessment is not completed, the recorder shall return the certificate or other evidence of sale and the deed to the person delivering it to the recorder. If the reassessment is completed, the certificate or other evidence of sale shall be canceled and placed on file in the office of the recorder and the deed shall be delivered to the owner of the property specified therein. If any such purchaser, or the heirs, executors, administrators, successors or assigns of such purchaser fails to comply with this section, that person is not entitled to subrogation. In any event, the amount of subrogation shall not exceed the amount that has been paid to the local government on such sale, together with interest at the rate of six percent per annum from the date of sale until the date of payment. This amount is to be paid by the local government to the purchaser, or the heirs, executors, administrators, successors or assigns of the purchaser if and when the local government collects the amount of the reassessment against the property. [Amended by 1991 c.902 952; 2003 c.802 934] 223.460 [Repealed by 1965 c.71 91] 223.462 Review ofreassessment. Notwithstanding any of the provisions ofORS 223.405 to 223.485, owners of any property against which a reassessment for local improvements has been imposed may seek a review thereof under the provisions ofORS 34.010 to 34.100. [1965 c.71 94] 223.465 [Repealed by 1965 c.71 9 I] 223.470 [Repealed by 1965 c.71 91] http://www.leg.state.or.us/ors/223.html 10/16/2007 Chapter 223 - Local Improvements and Works Generally Page 33 of 48 223.475 [Repealed by 1965 c.71 91] 223.480 [Repealed by 1965 c.71 91] 223.485 Additional reassessment procedure; time limitation. (1) The authority granted in ORS 223.405 to 223.455 does not apply to any local government if the local government has provided a method of reassessment by ordinance or charter. (2) No proceedings for making a reassessment shall be instituted after 20 years from the date when the first assessment was entered on the lien docket. [Amended by 1965 c.71 93; 1991 c.902 953; 2003 c.802 935] METHODS OF ENFORCING LIENS AND COLLECTING ASSESSMENTS 223.505 Definitions for ORS 223.505 to 223.595. As used in ORS 223.505 to 223.595, unless the context requires otherwise, "treasurer" means the officer designated by charter or ordinance of the local government to collect unpaid liens or assessments, take all steps necessary to enforce delinquent liens or assessments and to maintain records pertaining to collection proceedings thereon. [Amended by 1991 c.902 954; 2003 c.802 936] 223.510 Authority to sell property for delinquent liens and assessments. In addition to the method provided by law, ordinance or the charter of any local government for the sale of real property for delinquent liens or final assessments, every local government may cause the real property to be sold as provided in ORS 223.510 to 223.590 for any final assessment, lien or installment thereof at any time after one year from the date such lien, final assessment or installment becomes due and payable, if bonded; otherwise, at any time after 60 days from the time it is entered in the lien docket of the local government. [Amended by 1991 c.902 955; 2003 c.802 937] 223.515 Preparation, transmission and contents of delinquent list. If any installment on any lien bonded, as provided by law, ordinances or charter of the local government, is delinquent for a period of one year from the time it became due and payable, or at any time after 60 days from the time it became due and payable if not bonded, the recorder may thereafter prepare and transmit to the treasurer a list in tabular form, made up from the lien docket, describing each lien, assessment or installment due on any bonded lien that is so delinquent. The list shall also contain the name of the person to whom assessed, a particular description of the property, the amount of the lien or final assessment or the amount of the installment due on any bonded lien, and any other facts necessary to be given. [Amended by 1991 c.902 956; 2003 c.802 938] 223.520 Procedure in collecting delinquencies. Upon receipt of the list described in ORS 223.515, the treasurer shall proceed to collect the unpaid liens or final assessments named in the list by advertising and selling the lots or tracts in the manner now provided by law for the sale of real property on execution, except as otherwise provided in ORS 223.525 to 223.580 and except that sale may be made at such place within the boundaries of the local government as may be designated in the notice of sale. [Amended by 1991 c.902 957; 2003 c.802 939] 223.523 Notice of sale; publication; personal notice to property owner and occupant. (I) Before a sale of real property under ORS 223.505 to 223.590 takes place, the treasurer shall have notice of the sale printed once a week for four successive weeks in a daily or weekly newspaper, as defined in ORS 193.010, generally circulated in the county in which the sale will be held. The notice of sale shall set forth the name and address of the treasurer conducting the sale, a particular description of the real property to be sold, including a street address, if any, the name of the owner of the property, the amount unpaid on the lien or final assessment and the date, time and place of sale, which shall be held in http://www.leg.state.or.us/ors/223 .html 10/16/2007 Chapter 223 - Local Improvements and Works Generally Page 34 of 48 accordance with ORS 86.745 (7). (2) The treasurer shall send a copy of the first of the four published notices by registered or certified mail to both the owner of the real property to be sold at the last-known post-office address of the owner or place of residence and to the occupant, if any, of the real property to be sold. The treasurer shall also send a notice containing the same information required in a published notice under subsection (1) of this section by registered or certified mail at least 60 days prior to the sale to any person requesting notice under ORS 86.785 and to any person having a lien or other interest in the real property to be sold ifthe lien or interest appears of record. The treasurer shall retain and file the return receipt for the registered or certified mail. [1977 cA03 ~2; 1985 c.231 ~l; 1991 c.902 ~58] 223.525 Conduct of foreclosure sale. Each piece or tract ofland shall be sold, separately, and for a sum equal to but not exceeding the unpaid lien or final assessment thereon and the interest, penalty and cost of advertising and sale. If there is more than one bid the land shall be sold to the bidder first offering to take it for the amount accrued thereon. No levy upon such lots or parcels of land shall be required except that a notice shall be posted four consecutive weeks before the sale upon every lot or parcel. [Amended by 1977 cA03 ~3; 1991 c.902 ~59] 223.530 Title of purchaser. A sale of real property under ORS 223.505 to 223.590 conveys to the purchaser, subject to redemption as provided in ORS 223.565 to 223.590, all estates, interests, liens or claims therein or thereto of any persons, together with all rights and appurtenances thereunto belonging, excepting only the lien of a local government on such assessments or liens as are not included in the foreclosure proceedings. [Amended by 1991 c.902 ~60; 2003 c.802 ~40] 223.535 Record of sales; receipts for lien payments. The treasurer shall enter into columns provided for that purpose in the list transmitted to the treasurer by the recorder the date of the sale, the name of the purchaser and the amount paid for each parcel of property sold. The treasurer shall give a receipt to each person paying any lien or final assessment on the delinquent list prior to the sale thereof. The receipt must state separately the lien or final assessment, interest and costs collected, and a duplicate of the receipt shall be filed with the treasurer. [Amended by 1991 c.902 ~61] 223.540 Payment of sale price. Real property when sold for or to satisfy a delinquent final assessment or lien, or both, must be sold for lawful money of the United States, except as provided in ORS 223.545. [Amended by 1991 c.902 ~62] 223.545 Purchase by local government in absence of bids. If no bid is received for the sale of the property, the local government may purchase the property by bidding therefor the amount of the lien or liens and the cost of advertising and sale. The property may be struck off and sold to the local government without actual payment of money. [Amended by 1991 c.902 ~63; 2003 c.802 ~41] 223.550 Certificate of sale; contents. The treasurer shall immediately, after having sold any real property upon the list described in ORS 223.515, make and deliver to the purchaser a certificate of sale of the property so sold, setting forth therein the object for which the sale was made, a description of the property sold, a statement of the amount it sold for, the lien or final assessment for which the property was sold, the name of the purchaser and that the sale is made subject to redemption within one year from the date of the certificate, and then deliver such certificate to the purchaser. [Amended by 1991 c.902 ~64] 223.555 Lien docket entries mandatory. The treasurer shall, within three days after sale, return to the recorder the delinquent list, with all collections and sales noted thereon. The recorder shall then make proper entries of collections and sales in the appropriate lien docket. Thereafter no transfer or assignment of any certificate of purchase of real property sold under ORS 223.505 to 223.590 is valid http://www.leg.state.or.us!ors/223 .html 10/16/2007 Chapter 223 - Local Improvements and Works Generally Page 35 of 48 unless an entry of such transfer or assignment has been noted by the recorder in said docket. 223.560 Unsold property reoffered; exceptions. If any property remains unsold at the sale, it may, in the discretion of the recorder, again be offered for sale in like manner, but not sooner than three months after the expiration of any sale, except that in the matter of an assessment for the opening, widening, laying out or establishing of a street, proceedings for such sale may be taken immediately. 223.565 Procedure and conditions of redemption. (I) The owner, or legal representatives of the owner, or the successor in interest of the owner, or any person having a lien by judgment or mortgage, or owner of a tax lien, on any property sold by virtue of ORS 223.520 may redeem it upon conditions provided in this section. Redemption of any real property sold for a delinquent final assessment or lien under the provisions ofORS 223.505 to 223.590 may be made by paying to the treasurer, at any time within one year from the date of the certificate of sale, the purchase price and 10 percent thereof as penalty, and interest on the purchase price at the rate of 10 percent per annum, from the date of the certificate. Where redemption is made by the holder of a tax lien the holder may have such redemption noted upon the record of the lien in like manner and with like effect as prescribed in this section. Such redemption shall discharge the property so sold from the effect of the sale and, if made by a lien creditor, the amount paid for the redemption shall thereafter be deemed a part of the judgment, mortgage or tax lien, as the case may be, and shall bear like interest, and may be enforced and collected as a part thereof. (2) Anyone applying or seeking to redeem property sold under the provisions of ORS 223.505 to 223.590 must payor offer to pay the sum necessary in lawful money of the United States. (3) When an individual purchases real property at a foreclosure sale under ORS 223.505 to 223.590, if, with the approval of the local government, that purchaser incurs costs for maintaining or improving the property during the period allowed for redemption and if the property is subsequently redeemed, the treasurer may return all or part of the penalty paid by the person redeeming the property to the purchaser as provided by charter or ordinance of the local government. [Amended by 1977 cA03 ~4; 1991 c.902 ~65; 2003 c.576 ~397; 2003 c.802 ~42] 223.570 Execution and contents of deed to purchaser. After the expiration of one year from the date of the certificate of sale, if no redemption has been made, the treasurer shall execute to the purchaser, or the heirs or assigns of the purchaser, a deed of conveyance containing a description of the property sold, the date of the sale, a statement of the amount bid, of the lien or final assessment for which the property was sold, that the final assessment or lien was unpaid at the time of the sale and that no redemption has been made. The statement need contain no further recital of the proceedings prior to the sale. [Amended by 1991 c.902 ~66] 223.575 Legal and evidentiary effect of deed. The effect of the deed shall be to convey to the grantee therein named the legal and equitable title in fee simple, to the real property described in the deed, excepting only the lien of a local government on such assessments or liens as were not included in the foreclosure proceedings. The deed shall be prima facie evidence of title in the grantee, except as stated in this section, and that all proceedings and acts necessary to make such deed in all respects good and valid have been had and done. Such prima facie evidence shall not be disputed, overcome or rebutted, or the effect thereof avoided, except by satisfactory proof of either: (I) Fraud in making the final assessment or in the final assessment, or in the procuring of the lien. (2) Payment of the final assessment or lien before sale or redemption after sale. (3) That payment or redemption was prevented by fraud of the purchaser. (4) That the property was sold for a lien or final assessment for which neither the property nor its owner, at the time of sale, was liable, and that no part of the final assessment or lien was assessed or levied upon the property sold. [Amended by 1991 c.902 ~67; 2003 c.802 ~43] http://www.leg.state.or.us/ors/223.html 10/16/2007 Chapter 223 - Local Improvements and Works Generally Page 36 of 48 223.580 Grantee of deed entitled to possession. The grantee named in the deed described in ORS 223.570 shall upon delivery thereof be entitled to the immediate possession of the real property therein described. 223.585 Time limitation on actions to recover sold property. Every action, suit or proceeding which may be commenced for the recovery ofland sold by the treasurer for any final assessment or lien or to quiet the title of the former owner, or the successors in interest of the former owner, against such sale, or to set aside such sale, or to remove the cloud thereof, except in cases where the final assessment or lien for which the land has been sold was paid before the sale, or the land redeemed as provided by law, shall be commenced within one year from the time of recording the deed executed under ORS 223.570. [Amended by 1991 c.902 968] 223.590 Tender of purchase price in action to recover property. In any action, suit or proceeding referred to in ORS 223.585, whether before or after the issuance of the deed, the party claiming to be the owner as against the party claiming under the sale must tender with the first pleading of the party and pay into the court at the time of filing such pleading the amount of the purchase price for which the lands were sold, together with the penalties prescribed by law at the time of the sale, and of all taxes and final assessments or liens, or both, levied or made upon or against the land, or any part thereof, which were paid after the sale by the purchaser at the sale, or the heirs or assigns of the purchaser, together with interest thereon at the rate of 10 percent per annum from the respective times of the payment ofthe purchase price, taxes, final assessments or liens, or both, by the purchaser, or the heirs or assigns of the purchaser, up to the time of the filing of the pleading, to be paid to the purchaser, or the heirs or assigns of the purchaser, in case the right or title of the purchaser at the sale fails in such action, suit or proceeding. [Amended by 1991 c.902 969] 223.593 Alternate redemption procedure; cash payment required. (I) Notwithstanding ORS 223.565 and 223.650, when a local government sells real property under ORS 223.510 to 223.590 or pursuant to a judgment of foreclosure entered in an action authorized by ORS 223.610 for neglect or refusal by the owner to pay installments under ORS 223.265, the property may be redeemed as provided in this section by the owner, a legal representative or a successor in interest or by any other person having a lien on the property. (2) Redemption of such real property may be made by paying to the treasurer of the local government, at any time within one year after the date of sale, the following amounts: (a) The purchase price at the foreclosure sale and 10 percent thereof as penalty; (b) The amount of any taxes, assessments or liens upon the property that are paid after the sale by the purchaser at the sale; and (c) Interest on the amounts paid under paragraphs (a) and (b) of this subsection at a rate of 10 percent per annum from the respective times of the payments of the purchase price, taxes, assessments or liens to the date of redemption. (3) A redemption of property under this section shall be made for cash. [Formerly 223.670; 2003 c.576 9398; 2003 c.802 944] 223.594 Lien for water service to certain real property through single water meter; owner as water user; foreclosure. (I) When water service is provided to a multifamily building with five or more units with a single water meter, the owner of the real property shall be considered the user of the water. If payment for such water is not made when due and the water service has not been shut off or will not be shut off, the municipal utility may place a lien on the premises to which water service was provided for the amount due for such service. (2) When requested by the property owner and authorized by the municipal utility, a single water meter may serve several parcels of real property owned by the same owner. The owner of those parcels of real property shall be considered the user ofthe water. If payment for such water is not made when http://www.leg.state.or.us/ors/223.html 10/16/2007 Chapter 223 - Local Improvements and Works Generally Page 37 of 48 due and the water has not been shut off or will not be shut off, the municipal utility providing such service may place a lien on the real property to which water service was provided for the amount due for such service. (3) At any time after 60 days from the time the lien is entered in the lien docket of the local government, in addition to any method provided by law, ordinance or the charter of any local government, the lien may be foreclosed in the manner provided under ORS 223.510 to 223.595. [1993 c.786 94; 2003 c.802 945] 223.595 Validation of prior foreclosure proceedings. All foreclosure proceedings had or taken prior to May 28, 1927, by any municipal corporation which substantially comply with the provisions of ORS 223.505 to 223.590 hereby are declared to be legal and valid to the same extent as if they were had or taken under those sections. 223.605 Definitions for ORS 223.605 to 223.650. As used in ORS 223.605 to 223.650, "liens" means liens, final assessments or installments of final assessments and includes any of those terms. [Amended by 1991 c.902 970] 223.610 Foreclosure of certain liens by suits in equity. In addition to methods now provided by law, charters, ordinances or acts of incorporation for the foreclosure or collection of liens, any local government may foreclose any lien lawfully levied or assessed by it, by suit in equity in the circuit court of the county in which the local government is located. [Amended by 1991 c.902 971; 2003 c.802 946] 223.615 Recovery of attorney fees in foreclosure proceeding. In any action authorized by ORS 223.610, the court may award reasonable attorney fees to the local government bringing the action if the local government prevails in the action. The court may award reasonable attorney fees to a defendant who prevails in the action if the court determines that the local government had no objectively reasonable basis for asserting the claim or no reasonable basis for appealing an adverse decision of the trial court. [Amended by 1981 c.897 943; 1991 c.902 972; 1995 c.696 919; 2003 c.802 947] 223.620 Laws applicable to foreclosure proceedings. Suits authorized by ORS 223.610 shall be governed by ORS 88.010 to 88.100 and 93.760 and by all other laws relating to suits in equity insofar as applicable, except as otherwise provided in ORS 223.610 to 223.650. [Amended by 1987 c.586 948a] 223.625 Liens which may be included in foreclosure suit. In any suit authorized by ORS 223.610, the local government may include any number oflots upon which it has delinquent liens though the liens may have been levied under the same or different ordinances or resolutions. Any number of different delinquent liens may be foreclosed upon the same lot in one suit. If there is more than one delinquent lien on any lot, the various amounts thereof, including accrued interest, penalties, costs and attorney fees, shall be added together and the total thereof shall be deemed the amount of the lien for which the lot is to be sold. [Amended by 1991 c.902 973; 1993 c.18 940; 2003 c.802 948] 223.630 Joinder of parties in interest as defendants. In any suit authorized by ORS 223.610, the record owner and all persons and corporations claiming some right, title, lien or interest in and to any lot involved in the suit, and also all other parties or persons unknown claiming any right, title, estate, lien or interest in the real property described therein or any part thereof, may be joined as party defendants. 223.635 Complaint served on owner; issues tried separately. In addition to the service of summons, each record owner of a lot involved in the foreclosure suit shall be served with complaint in the manner provided by law. Any issue made by the pleadings in any foreclosure suit relating only to a certain lot or lots shall be tried separately and determined upon motion of any party in interest therein. http://www.leg.state.or.us!ors/223.html 10/16/2007 Chapter 223 - Local Improvements and Works Generally Page 38 of 48 223.640 Allegations of jurisdictional facts. In any suit authorized by ORS 223.610, it shall be a sufficient allegation of jurisdictional facts authorizing the local government to make and levy any lien if the complaint alleges in general terms that the local improvement was made in the manner and as provided by law, by the local government's charter, ordinances, resolutions, or any of them, relating to such local improvement. It is not necessary to specifically set forth in the complaint any such charter provisions, ordinances or resolutions. [Amended by 1991 c.902 974; 2003 c.802 949] 223.645 Right of local government to bid at execution sale. The local government may bid at the sale on execution of the property involved in the foreclosure suit any amount not exceeding the sum found by the judgment of the court to be due upon the local government's lien, together with interest, costs, penalties and attorney fees, and it may credit the amount of its bid upon the execution. [Amended by 1991 c.902 975; 1993 c.l8 941; 2003 c.576 9399; 2003 c.802 950] 223.650 Redemption; no deficiency judgment. The time and manner for redemption of property from sales on execution in suits authorized by ORS 223.610 shall be the same as provided by law for the redemption of real property from sales on execution. The amount to be paid on redemption under this section shall be the amount for which the property was sold on execution, together with interest thereon at the rate of six percent per annum from the date of the sale until the date of redemption. However, no deficiency judgment shall be entered against the owner of the property. 223.670 [1985 c.656 92; 1991 c.902 976; renumbered 223.593 in 1991] FINANCING OF LOCAL IMPROVEMENTS; REBONDING; REINSTATEMENT; TYPE OF BONDS ACCEPTED IN PAYMENT OF LIENS; ASSESSMENT OF PUBLIC PROPERTY 223.705 Rebonding of unpaid assessments. Subject to the prior approval of the governing body of the local government, the owner of any property assessed for local improvements under state law or under the charter of any local government, and in cases where a final assessment for local improvement has been bonded and entered in the bond lien docket as authorized by ORS 223.205 and 223.210 to 223.295 or the charter and the bonded assessment has not been fully paid, may file with the auditor, clerk or other officer charged with the keeping of records of the local government an application for rebonding the original assessment in the amount due and unpaid thereon. The auditor, clerk or other officer charged with keeping the records of the local government may accept these applications. If there is more than one final assessment on the same piece of property, the owner may combine them in one application. [Amended by 1991 c.902 977; 2003 c.802 951] 223.710 Rebonding application; form; prerequisites. (I) The applications forrebonding shall be in the same form and preserved as original bonding applications. The officer charged with keeping the records of the local government shall keep the bonding applications in convenient form for examination. The officer shall enter in a docket kept for that purpose a description of each lot or parcel of land against which the rebonding assessment is made, or which bears or is chargeable for the cost of the local improvement, with the name of the then owner and the total amount of unpaid final assessments rebonded. (2) The total amount to be rebonded against any lot or parcel ofland must be $25 or more. The owner shall tender and pay with the application all accrued interest due on the bonded assessment to the first of the month preceding the date of application. (3) No application for rebonding shall be received unless the taxes for any quarter of the current year then due and payable, together with the entire amount of taxes of the year immediately preceding the year in which the application is filed, have been fully paid and evidence of such payment satisfactory to the officer receiving the application is produced at the time of making the application. [Amended by 1991 c.902 978; 2003 c.802 952] http://www.leg.state.or.us!ors/223 .html 10/16/2007 Chapter 223 - Local Improvements and Works Generally Page 39 of 48 223.715 Payment of rebonded assessment. The amount of the assessment to be rebonded shall constitute a new principal and shall be paid in such number of equal periodic installments as the governing body of the local government may determine, with interest thereon at the rate per annum determined by the governing body of the local government under ORS 223.215. [Amended by 1969 c.531 ~6; 1981 c.322 ~5; 1991 c.902 ~79; 2003 c.802 ~53] 223.720 Amount of lien; priority. The amount of the unpaid rebonded assessments entered in the rebonding assessment docket, with interest on unpaid rebonded assessments at the rate per annum determined by the governing body of the local government under ORS 223.215, against each such lot or parcel ofland, shall stand as a lien in favor of the local government until the rebonded assessments and interest are paid. A rebonding assessment lien shall have the same priority as all other liens relating to assessments for local improvements. [Amended by 1969 c.531 ~7; 1981 c.322 ~6; 1991 c.902 ~80; 2003 c.802 ~54] 223.725 Issuance and sale of bonds. Each local government may, by ordinance or resolution of its governing body from time to time, issue and sell pursuant to rebonding applications, bonds of the tenor of those designated in ORS 223.235, in an amount not exceeding the total amount of such applications. [Amended by 1991 c.902 ~81; 2003 c.802 ~55] 223.730 Application of proceeds from sale of bonds. The proceeds from the sale of bonds issued under ORS 223.725 shall be applied as follows: (I) The amount provided under ORS 223.705 to be rebonded shall be placed to the credit of the improvement bond sinking fund. Thereafter, as soon as practicable and in so far as possible, there shall be called and paid an equivalent amount of the bonds originally issued and so refunded by new applications to pay in installments. (2) The balance of the proceeds of the sale shall be placed to the credit of the improvement bond interest fund. 223.735 Debt limitation of local government not applicable. The bonds and the amount thereof authorized pursuant to ORS 223.705 shall not be counted in calculating the limited indebtedness of any local government, fixed either by its charter, ORS 223.295, by any law, or by the Constitution of this state, but shall be in excess thereof and excluded from such debt limitations. [Amended by 1991 c.902 ~82; 2003 c.802 ~56] 223.740 General provisions applicable. Except as otherwise provided in ORS 223.705 to 223.750, the provisions ofORS 223.205 and 223.210 to 223.295 or any charter shall apply to the rebonding application, to the form, to the manner of paying the amount entered in the bond lien docket, to the collection of delinquent installments and to issuance, sale and redemption of improvement bonds issued pursuant to ORS 223.725. 223.745 Scope of power granted. The power granted by ORS 223.705 to 223.750 is vested in each local government and is self-operating therein without further necessity of enacting charter or ordinance provisions incorporating the terms of those sections. [Amended by 1991 c.902 ~83; 2003 c.802 ~57] 223.750 Enactment of rulemaking ordinances; effect of irregularities. (I) Each local government, through its governing body, may provide, by such ordinances, rules and regulations as may be needed, for accepting rebonding applications, issuing bonds and otherwise carrying out the terms of ORS 223.705 to 223.750; and may, by such ordinance and in conformity with ORS 223.715, determine the interest rate to be charged property owners who apply to rebond liens as provided by those sections. (2) No error or omission in rebonding liens shall invalidate or impair the original bonded lien. http://www.leg.state.or.us/ors/223.html 10/16/2007 Chapter 223 - Local Improvements and Works Generally Page 40 of 48 [Amended by 1991 c.902 ~84; 2003 c.802 ~58] 223.755 Reinstatement of delinquent bonded assessments authorized. (1) As used in this section, "bonded assessment" means any assessment for a local improvement levied by any local government where application to pay such assessment in installments has been filed with the local government levying it. (2) After approval by the governing body of any local government, the owner of any property, against which there is outstanding any delinquent bonded assessment, at any time before the property affected by the assessment has been sold for the collection thereof as provided by law, may pay any delinquent installment of the bonded assessment, together with the amount of interest due thereon as provided by the law governing the same, plus the cost of advertising the property for sale and a penalty of three percent on the amount of the delinquent installment so paid. (3) The power granted by subsection (2) of this section is vested in each local government and is self-operating therein without the necessity of amending the charter thereof incorporating the terms of this section. (4) The governing body of each local government may, in its discretion, by ordinance, make the provisions of this section applicable to delinquent bonded assessments levied by it and outstanding against property in the local government. [Amended by 1991 c.902 ~85; 2003 c.802 ~59] 223.760 H.O.L.C. bonds accepted in payment of assessment liens. The governing body of any incorporated city may by ordinance provide that any or all special assessments levied against any tract or part thereof within the city and due the city, may be paid by bonds issued by the Home Owners' Loan Corporation, created by Act of Congress as of June 13, 1933. The governing body shall in the ordinance prescribe the terms and conditions under which those bonds shall be accepted in payment of such assessments. 223.765 Bonds accepted as payment for assessment liens. Any local government may, by ordinance duly passed by its governing body, authorize the acceptance by such local government of the general obligation bonds or interest coupons attached, or both, of the local government, in payment of all or any part of special assessment liens, interest or penalties of or payable to the local government. [Amended by 1991 c.902 ~86; 2003 c.802 ~60] 223.770 Assessment of public property benefited by improvements. (1) Whenever all or any part of the cost of public improvements made by any local government is to be assessed to the property benefited thereby, benefited property owned by the local government or any other public body as defined in ORS 174.109 shall be assessed the same as private property and the amount of the assessment shall be paid by the public body, provided that the costs of the improvements are, in any given case, of the type that may be bonded under ORS 223.205 and 223.210 to 223.215. (2) In the case of property owned by the state, the amount of the assessment shall be certified by the treasurer and filed with the Oregon Department of Administrative Services as a claim for reference to the Legislative Assembly in the manner provided by ORS 293.316, unless funds for the payment of the assessment have been otherwise provided by law. [Amended by 1967 c.454 ~93; 1991 c.902 ~87; 2003 c.802 ~61] 223.775 Assessment of property of cemetery autbority benefited by certain improvements. (1) As used in subsections (2) to (5) ofthis section: (a) "Cemetery authority" means a nonprofit cemetery or crematory corporation. (b) "Sale" includes a contract of sale as well as a sale. (2) Notwithstanding the provisions ofORS 65.855 to 65.875 or any other provision oflaw, whenever all or any part of the cost of a street, curb or sidewalk improvement made by a local government is to be assessed to the property benefited thereby, benefited property owned and platted for http://www.leg.state.or.us/ors/223 .htrnl 10/16/2007 Chapter 223 - Local Improvements and Works Generally Page 41 of48 cemetery or crematory purposes by a cemetery authority shall be assessed the same as private property. The amount of the assessment shall be paid by the cemetery authority as provided in this section. (3)(a) Within 60 days after the date the ordinance levying the initial assessment is enacted by the local government, the cemetery authority shall furnish the local government with a list of platted burial lots within the benefited property unsold on the date such ordinance was enacted. Until such assessment is paid in full, whenever additional burial lots are platted within the benefited property, the cemetery authority shall furnish the local government with a list of such additional lots at the time the plat thereof is recorded. (b) Out of the first funds received for the sales price of any of such lots, the cemetery authority after setting aside perpetual care and maintenance funds as required by law or otherwise shall credit five percent of such sales price to a special account for the payment of the assessment until a sum equal to the assessment and any interest due thereon has been so credited. (4) All funds accumulated in the special account for the payment of assessments shall be paid semiannually to the local government levying such assessment, the first payment to be made six months after the date the final assessment was levied and succeeding payments each six months thereafter until such assessment and any interest due thereon, as provided in this subsection, is paid in full. Any funds in such account that are not paid to the local government when due shall bear interest at the rate of seven percent per annum from the due date until paid to the local government. (5) Platted property of a cemetery authority subject to an assessment as provided in this section is exempt from execution for collection of any such assessment while such property is held by a cemetery authority for cemetery or crematory purposes. Any such assessment levied against a cemetery authority shall be payable only from the funds received for the sale of lots listed with the local government as required by subsection (3) of this section. Except as provided in subsection (4) of this section, interest shall not be due on the unpaid balance of any such assessment. [1963 c.521 ~~1,2; 1969 c.531 ~8; 1991 c.902 ~88; 2003 c.802 ~62] 223.785 [1969 c.505 ~I; 1983 c.349 ~7; 1983 c.713 ~l; repealed by 1991 c.902 ~121] SPECIAL CITY IMPROVEMENTS; PARKING FACILITIES; STREETS; SIDEWALKS; AIDS TO WATER COMMERCE 223.805 Short title of ORS 223.805 to 223.845. ORS 223.805 to 223.845 shall be known as the Motor Vehicle Parking Facilities Act. 223.810 Establishment of motor vehicle parking facilities. Any incorporated city may establish one or more off-street motor vehicle parking facilities for the general use and benefit of the people ofthe city, or for one or more special classes of vehicles, as appears necessary, proper or beneficial in the c public interest. For these purposes, the city may proceed as provided in ORS 223.815 to 223.845. 223.815 Acquisition of property for parking facilities. For the purposes ofORS 223.810, a city may acquire property at or below the surface of the earth, by purchase, condemnation, exchange or other lawful manner. However, a city may not so acquire privately owned property used for public parking unless the facility to be constructed by the city would substantially increase the number of vehicle off- street parking spaces available for public use. The city may use the area below the street surface or the area beneath the surface of a park or other public property. [Amended by 1959 c.653 ~8; 1967 c.478 ~ I] 223.820 Planning, constructing and contracting for the operation of or leasing parking facilities. For the purposes ofORS 223.810, a city may: (I) Plan, design and locate the parking facilities. (2) Construct, alter, enlarge, repair and maintain buildings, structures, equipment, access and entrance facilities, exit facilities, fencing and other accessories necessary or desirable for the safety or http://www.leg.state.or.us/ors/223.html 10/16/2007 Chapter 223 - Local Improvements and Works Generally Page 42 of 48 convenience of motorists using the off-street parking facilities. (3) Contract with any person, firm or corporation for construction or for operation of the parking facility upon such terms as are found to be in the public interest, after first advertising for bids therefor by publication not less than once a week for two consecutive weeks in a newspaper of general circulation in the city, making two publications in all. (4) Lease for a period not exceeding 50 years, notwithstanding any conflicting provision of any law, city charter or ordinance, any property referred to in ORS 223.810 to any person, firm or corporation pursuant to an agreement, according to such terms as are found to be in the public interest, whereby such person, firm or corporation undertakes to construct, where necessary, or alter or repair, and maintain and operate on such property the buildings, structures, equipment, facilities and accessories necessary or convenient for parking facilities, and title to such building or structure to be constructed or altered shall vest in the city either when constructed or altered or at the termination of said lease. Such agreement shall be made only after first advertising for bids therefor by publication not less than once a week for two consecutive weeks in a newspaper of general circulation in the city, making two publications in all. [Amended by 1953 c.668 92] 223.825 Financing of parking facilities. For the purposes ofORS 223.810, a city may finance the parking facilities by anyone or any combination ofthe following methods: (1) General obligation bonds within the legal debt limitations, or revenue bonds payable primarily or solely out of revenue from parking facilities in such amounts, at such rate of interest, and upon such conditions as may be prescribed by the legislative authority of the city. (2) Special or benefit assessments equal to the actual costs of the parking facilities, or a portion thereof, such assessment to be levied against property benefited in proportion to the benefit derived, the amount of such assessment to be determined in accordance with special assessment practices for local improvements as now or hereafter prescribed by the ordinances or charter provisions of the city. (3) Parking fees, special charges or other revenue derived from the use of off-street parking facilities by motorists, lessees, concessionaires, commercial enterprises or others. (4) General fund appropriations. (5) State or federal grants or local aids. (6) Parking meter revenues. (7) General property taxes, or gift, bequest, devise, grant or otherwise. (8) For any city under 300,000 according to the latest federal decennial census, a reasonable annual fee on the privilege of occupying real property within the city or a district of the city to carry on a business, occupation, profession or trade. In levying the fee, the governing body shall take into consideration the unmet off-street parking requirements of such business. The proceeds of the fee, less refunds and costs of collection, shall be used solely for the purposes of ORS 223.805 to 223.845. The fee is in addition to, and not in lieu of, any other tax, assessment or fee required by state or local law or ordinance. [Amended by 1959 c.653 99; 1967 c.380 91; 1969 c.380 91; 1991 c.902 989] 223.830 Service concessions in parking facilities. For the purposes ofORS 223.810, a city may rent or lease to any individual, firm or corporation any portion of the premises established as an off- street parking facility for service concessions, commercial uses or otherwise, after first advertising for bids therefor by publication not less than once a week for two consecutive weeks in a newspaper of general circulation in the city, making two publications in all. [Amended by 1967 c.380 92] 223.835 Fees and regulations of parking facilities. For the purposes of ORS 223.810, a city may: (1) Charge such fees as the legislative authority of the city finds fair and reasonable for the privilege of using the off-street parking facilities. These fees need not be limited to the cost of operation and administration but may be for revenue. (2) Regulate and restrict the use of the parking facilities or prohibit the use thereoffor vehicles of more than a class or classes of vehicles and provide penalties for violation of such regulations or http://www.leg.state.or.us/ors/223 .htrnl 10/16/2007 Chapter 223 - Local Improvements and Works Generally Page 43 of 48 prohibitions. 223.840 Disposing of property acqnired for parking facilities. For the purposes of ORS 223.810, a city may sell, encumber, lease, exchange or otherwise dispose of property and property rights acquired as may be found in the public interest. 223.845 Limitation on operation of parking facilities; use of revenues after issuance of revenue bonds; disbursement of excess revenues. (I) If a city establishes an off-street motor vehicle parking facility under ORS 223.810, the city may operate the off-street motor vehicle parking facility or lease the facility under ORS 223.820. The city may not operate service concessions in an off-street motor vehicle parking facility. If a city issues revenue bonds under ORS 223.825 to finance the acquisition and construction of an off-street motor vehicle parking facility, the city shall provide, for as long as those revenue bonds are outstanding, that the revenues derived from the operation of the off-street motor vehicle parking facility be disbursed by the city for some or all of the following purposes: (a) Payment of interest on and retirement of principal of bonds issued by the city for financing the acquisition or construction of the off-street motor vehicle parking facility or other parking facilities of the city. (b) Payment of the necessary costs and expenses of operating the off-street motor vehicle parking facility and other parking facilities of the city. (c) Creation and maintenance of a reserve account to make necessary replacements to the off-street motor vehicle parking facility and other parking facilities ofthe city. (d) Payment to the taxing bodies in lieu of taxes an amount equal to the ad valorem taxes that would be derived from the off-street motor vehicle parking facility if under private ownership. (e) Reimbursement of owners of real property for special assessments paid by them and levied against real property to finance the off-street motor vehicle parking facility. (f) Payment to the city of a fair return on its investment in parking facilities for the purpose of making additional parking and traffic improvements. (2) If an off-street motor vehicle parking facility generates more revenue than required for the purposes described in subsection (I) of this section, the governing body of the city shall reduce the rates charged for the use of the off-street motor vehicle parking facility. [Amended by 1959 c.653 ~10;1999 c.559 ~3] 223.849 [1957 c.430 ~I; repealed by 1959 c.653 ~12] 223.850 [Renumbered 223.880] 223.851 Special assessment for street lighting, street maintenance and street cleaning; approval by electors. When authorized at any properly called election, the governing body of a city may assess, levy and collect annual assessments upon any real property within its boundaries for street lighting, street maintenance and street cleaning services which benefit the property. [1983 c.234 ~2] 223.852 [1957 c.430 ~2; repealed by 1959 c.653 ~12] 223.854 [1957 c.430 ~3 repealed by 1959 c.653 ~12] 223.855 [Renumbered 223.882] 223.856 Measure imposing assessments; contents. (I) A measure authorizing assessments under ORS 223.851 to 223.876 shall specify the services proposed to be financed by the assessments, the maximum amount that may be imposed and the number of years in which assessments will be made. (2) Each assessment measure. shall provide for the operation and maintenance of a single street http://www.leg.state.or.us/ors/223.html 10/16/2007 Chapter 223 - Local Improvements and Works Generally Page 44 of 48 lighting, street maintenance or street cleaning service. More than one measure may be submitted to the electors at a single election. Assessments for street lighting may include an amount sufficient to pay construction, reconstruction, modification and installation costs as well as operating and maintenance costs. (3) The measure shall provide that assessments are in lieu of any existing local option tax for the service to be provided. [1983 c.234 ~3; 1999 c.21 ~4] 223.857 [1957 c.430 ~4; repealed by 1959 c.653 ~12] 223.859 [1957 c.430 ~5; repealed by 1959 c.653 ~12] 223.860 [Renumbered 223.884] 223.861 Basis of assessment. Assessments shall be based upon any reasonable basis of assessment related to services received by the assessed property for the period specified in the measure. [1983 c.234 ~4] 223.862 [1957 c.430 ~6; repealed by 1959 c.653 ~ 12] 223.864 [1957 c.430 ~7; repealed by 1959 c.653 ~12] 223.865 [Renumbered 223.886] 223.866 Levy of assessment; manner of collection; effect of nonpayment. (1) The city each year shall estimate assessments needed and the amount of assessment for each tax account, and the amount thereof may be levied and returned to the officer whose duty it is to extend the ad valorem tax roll at the time required by law for taxes to be levied and returned. (2) All assessments levied by the city shall become payable at the same time, may be collected by the same officer who collects ad valorem taxes and shall be turned over to the city according to law. (3) The officer whose duty it is to extend the city levy may extend the levy of the city in the same manner as city taxes are extended. (4) Property shall be subject to sale for the nonpayment of assessments levied by the city in like manner and with like effect as in the case of city taxes. [1983 c.234 ~5] 223.867 [1957 c.430 ~8; repealed by 1959 c.653 ~12] 223.869 [1957 c.430 ~9; repealed by 1959 c.653 ~12] 223.870 [Renumbered 223.888] 223.871 [1983 c.234 ~6; repealed by 1991 c.902 ~121] 223.872 [1957 c.430 ~10; repealed by 1959 c.653 ~12] 223.874 [1957 c.430 ~II; repealed by 1959 c.653 ~12] 223.875 [Renumbered 223.900] 223.876 Charter authority not affected. ORS 223.851 to 223.876 are in addition to and not a limitation on authority a city may exercise under its charter. [1983 c.234 ~7] http://www.leg.state.or.us/ors/223.html 10/16/2007 Chapter 223 - Local Improvements and Works Generally Page 45 of 48 223.877 [1957 c.430 ~12; repealed by 1959 c.653 ~12] 223.878 Inclusion of property outside city in city assessment for local street improvement. (I) The governing body of a city may include property located outside the city as part of the property to be improved or to be assessed for a street improvement, subject to the following conditions: (a) The type of street improvement is one which the city has authority to finance by assessments against property within the city. (b) The governing body of the county, by resolution, approves the improvement if any portion of it is outside the city. (c) The governing body of the county, by resolution, approves the assessment of the property outside the city. (d) The assessment authority, including authority to enforce collection of assessments, is exercised for property outside the city in the same manner as for property within the city. (2) The owners of property outside the city subject to assessment under this section shall have the same rights, including remedies, which the owners of property within the city may have. [Formerly 308.170] Note: 223.878 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 223 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation. 223.879 [1957 c.430 ~13; repealed by 1959 c.653 ~12] 223.880 Public roads included in sidewalk improvement district; assessment on property benefited. Any incorporated city, in addition to powers granted by law or charter, may include in any sidewalk improvement district within the city all county roads or state highways or any part thereof which are located within the improvement district. It may cause to be built on the county roads or state highways or portions thereof within the improvement district, sidewalks for pedestrian travel, and may assess the cost thereof upon the property benefited thereby, in the manner provided by charter or law. [Formerly 223.850] 223.882 Acquisition of property by city to aid water commerce. In order to secure benefit from the United States Bonneville electrical and navigation project, all cities may purchase, acquire by condemnation, or lease, real property for the purpose of constructing thereon wharves, docks or other similar structures, or other aid to water-borne commerce, or for providing for sites for the location and operation of industrial or manufacturing plants or works thereon which will use the electrical energy developed by the Bonneville project and which would constitute feeders for docks, wharves or other aids of water-borne commerce. [Formerly 223.855] 223.884 Authority to take property within and without city limits. In carrying out the powers granted by ORS 223.882, cities are granted the right of eminent domain and the right to take private property for the public uses authorized by ORS 223.882. This power shall be exercised as provided by ORS chapter 35. Real property located without the corporate limits of the city, adjacent or contiguous to any of the boundary lines of the corporate limits of the city or within 10 miles of the boundary line of the corporate limits of any such city, may be acquired under the terms of this section. The determination of the council, commission of public docks, or other administrative body of the city having jurisdiction of its wharf or dock property that the acquiring of any particular real property is necessary to carry out the purposes ofORS 223.882 shall be sufficient foundation for the exercise of the right of eminent domain, notwithstanding that there is other real property available that might be used for those purposes. [Formerly 223.860; 1971 c.741 ~22] http://www.leg.state.or.us/ors/223 .html 10/16/2007 Chapter 223 - Local Improvements and Works Generally Page 46 of 48 223.886 Loans authorized to finance improvements; security for loans; consent of electors. In carrying out the powers conferred by ORS 223.882, the city may borrow money from any person, corporation or agency of the United States Government for the purchase of any real property described in ORS 223.882, or for paying the cost of improvements on any real property, which improvements may include the construction of docks, wharves or other structures and appurtenant appliances or fixtures or machinery necessarily required to operate a wharf or dock. In borrowing money for any of these purposes the cities may secure money so borrowed by executing and giving a mortgage or similar indenture on any such real property and its revenues. If repayment of money borrowed for acquisition or improvement of any such real property is not to be secured solely by the real property and the income derived therefrom, then, before a debt for the purpose of this section or ORS 223.882 can be contracted or incurred, the consent of the electors of the city must first be obtained. [Formerly 223.865] 223.888 Authority of city to carry out law. In the execution of powers conferred by ORS 223.882 to 223.886, a city may act through its council, commission of public docks, or other administrative body having jurisdiction of its wharves, docks or waterfront property. The city or its said administrative body may enter into and execute contracts or leases and do all acts and things requisite for carrying out the purposes ofORS 223.882 to 223.900. [Formerly 223.870] 223.900 Leasing property to individuals. In leasing or renting any part or portion of the real property acquired pursuant to the authority ofORS 223.882 to any individual or corporation, a city shall act in conformity with the requirements of ORS 271.300 to 271.360 when those sections are applicable. [Formerly 223.875; 1985 c.443 ~2] MISCELLANEOUS PROVISIONS 223.905 Duration of Public Works Acts. (I) Except in pursuance of any contract or agreement entered into by and between any municipality and any federal agency prior to January I, 1943, no municipality shall borrow any money or deliver any bonds pursuant to the provisions of chapter 455, Oregon Laws 1937, after January I, 1943. (2) Except in pursuance of any contract or agreement entered into by and between any municipality and any federal agency prior to December 31, 1941, no municipality shall exercise any of the powers conferred by chapter 348, Oregon Laws 1935, after December 31, 1941. 223.910 Validation of bonds issued under Public Works Act of 1937. All bonds or other obligations issued prior to March 27,1939, pursuant to an election held under chapter 455, Oregon Laws 1937, and all proceedings taken prior to March 27,1939, with respect to bonds or other obligations authorized prior to March 27, 1939 by an election held under chapter 455, Oregon Laws 1937, and which were issued within one year after March 27, 1939, by municipalities, for the purpose of obtaining loans from the Federal Emergency Administration of Public Works, pursuant to chapter 455, Oregon Laws 1937, are validated, ratified, approved and confirmed. All bonds or other obligations so issued and approved and all proceedings taken prior to March 27,1939, with respect to bonds or other obligations authorized prior to March 27,1939, by an election held under chapter 455, Oregon Laws 1937, and to be issued within one year after March 27,1939, are confirmed and approved. The bonds or other obligations issued prior to March 27, 1939, are declared to be legal and binding obligations upon such municipalities for any and all purposes. 223.915 Operation of municipal debt limitations on bonds issued under Public Works Act of 1937. Bonds issued under chapter 455, Oregon Laws 1937, are not subject to any limitations on municipal indebtedness as provided by law, including but not limited to ORS 287.004. However, all bonds issued under chapter 455, Oregon Laws 1937, shall be included in determining the power ofa municipality to issue bonds under any other law. http://www.leg.state.or.us!ors/223 .html 10/16/2007 Chapter 223 - Local Improvements and Works Generally Page 47 of 48 223.920 Manner of paying bonds. The bonds issued under chapter 455, Oregon Laws 1937, are payable in the manner provided by ORS 287.006; except that ORS 287.006 shall not apply to bonds payable solely from revenues. 223.925 Power of cities to secure payment of bonds. In order to secure payment of any bonds issued pursuant to chapter 455, Oregon Laws 1937, and interest thereon, or in connection with such bonds, any municipality may: (I) Pledge the full faith and credit and taxing power of the municipality to the punctual payment of the principal and interest on such bonds. (2) Pledge all or any part of the revenues received or receivable by the municipality from any public works project then existing or thereafter to be constructed for the punctual payment of the principal of the bonds issued for such public works project, and the interest thereon, and to covenant against thereafter pledging any such revenues to any other bonds or any other obligations of the municipality for any other purpose. (3) Provide for the terms, form, registration, exchange, execution and authentication of such bonds. (4) Covenant as to the revenues to be charged in connection with the public works project for which such bonds are to be issued and as to the use and disposition to be made thereof. (5) Covenant to set aside or pay over reserves and sinking funds for such bonds and as to the disposition thereof. (6) Redeem such bonds, and covenant for their redemption and provide the terms and conditions thereof. 223.930 Streets along city boundaries or partly within and without city. (I) Any city may construct, improve, maintain and repair any street the roadway of which, as defined in the Oregon Vehicle Code, is along or along and partly without, or partly within and partly without the boundaries of the city and may acquire, within and without the boundaries of such city, such rights of way as may be required for such street by donation or purchase or by condemnation in the same manner as provided in ORS 223.005 to 223.105. except as provided in subsection (2) of this section. (2) In any condemnation proceeding pursuant to subsection (I) of this section, a city shall not have any right of occupancy or possession until the condemnation judgment is paid. [1955 c.551 gl; 1985 c.16 g453] 223.935 Basis for legalization of road. A city governing body may initiate proceedings to legalize a city road within the city under ORS 223.935 to 223.950 if any of the following conditions exist: (I) If, through omission or defect, doubt exists as to the legal establishment or evidence of establishment of a public road. (2) If the location of the road cannot be accurately determined due to: (a) Numerous alterations of the road; (b) A defective survey of the road or adjacent property; or (c) Loss or destruction of the original survey of the road. (3) If the road as traveled and used for 10 years or more does not conform to the location of a road described in the city records. [1989 c.375 gl] 223.940 Proceedings for legalization ofroads; report; notice. (I) If proceedings for legalization of a road are initiated under ORS 223.935, the city governing body shall: (a) Cause the road to be surveyed to determine the location of the road; (b) Cause the city engineer or other city road official to file a written report with the city governing body including the survey required under this section and any other information required by the city governing body; and (c) Cause notice of the proceedings for legalization to be provided to owners of abutting land in the http://www.leg.state.or.us/ors/223.html 10/1612007 Chapter 223 - Local Improvements and Works Generally Page 48 of 48 manner required by city ordinance or charter. (2) In a proceeding under this section, any person may file with the city governing body information that controverts any matter presented to the city governing body in the proceeding or alleging any new matter relevant to the proceeding. [1989 c.375 92] 223.945 Compensation for property affected by road legalization. (I) A city governing body shall provide for compensation under this section to any person who has established a structure on real property if the structure encroaches on a road that is the subject of legalization proceedings under ORS 223.935 to 223.950. (2) To qualif'y for compensation under this section, a person must file a claim for damages with the city governing body before the close of the hearing to legalize the road. The city governing body shall consider a claim for damages unless the city governing body determines that: (a) At the time the person acquired the structure, the person had a reasonable basis for knowing that the structure would encroach upon the road; (b) Upon the original location of the road, the person received damages; (c) The person or the person's grantor applied for or assented to the road passing over the property; or (d) When making settlements on the property, the person found the road in public use and traveled. (3) The compensation allowed under this section shall be just compensation for the removal of the encroaching structure. (4) The city governing body may proceed to determine compensation and acquire the structure by any method authorized by law or by the city charter. (5) If a city governing body determines that removal of the encroaching structure is not practical under this section, the city governing body may acquire property to alter the road being legalized. [1989 c.375 93] 223.950 Order under road legalization proceeding. (I) After considering matters presented in a proceeding to legalize a road under ORS 223.935 to 223.950, a city governing body shall determine whether legalization of the road is in the public interest and shall enter an order abandoning or completing the legalization procedures on the road. (2) When a city governing body legalizes a road under ORS 223.935 to 223.950, the city governing body shall cause the road to be surveyed and the centerline and right of way to be monumented by a registered professional land surveyor. The survey map and narrative for such survey shall be prepared and filed with the county surveyor in accordance with ORS 209.250. (3) Courts shall receive any order filed under this section as conclusive proof that the road exists as described in the order. (4) Upon completion of the legalization procedures under ORS 223.935 to 223.950: (a) Any records showing the location of the road that conflict with the location of the road as described in the order are void; and (b) The road exists as shown on the order legalizing the road. [1989 c.375 94] http://www.leg.state.or.us/ors/223 .htrnl 10/16/2007 City of Ashland, Oregon - Municipal Code Page I of9 13.20 Local Improvements and Special Assessments 13.20.010 Definitions The following words and phrases whenever used in this chapter shall be construed as defined in this section unless from the context a different meaning is intended. A. "Improvement resolution" means that resolution adopted by the council declaring its intention to make a local improvement. B. "Local Improvement" has the meaning given under OR5 223.001. C. "Local Improvement District" means the property that is to be assessed for all or any portion of the cost of a local improvement and the property on which the local improvement is located. D. "Lot" means a lot, block or parcel of land. E. "Owner" means the owner of the title to real property or the contract purChaser of real property of record as shown on the last available complete assessment role in the office of the County Assessor. 13.20.020 Initiation of Local Improvements Whenever the council in its discretion deems it necessary to make any local improvement to be paid for in whole or in part by special assessment, the council may declare its intention to make the local improvement by adopting an improvement resolution. The proposed local improvement may be initiated by either of the following methods: A. By the council, at its own initiative; or B. By written petition requesting the local improvement signed by the owners of property that would benefit speCially from the local improvement and that would have at least 50% of the anticipated assessment as estimated by the city engineer. Whenever all of the owners of any property to be benefitted and assessed for any local improvement have signed a petition directed and presented to the council requesting such local improvement, the council may initiate and construct such local improvement without publishing or mailing notice to the owners of the affected property and without holding a publiC hearing regarding the proposed local improvement. (Ord 2731, 1994; amended Ord 2755, 1995) 13.20.030 Content of Improvement Resolution A. Mandatory Provisions. The Improvement resolution shall contain the following: 1. A description of the improvement; 2. A description or map of the boundaries of the local improvement district to be assessed; 3. A declaration of the council's intention to undertake the improvement; 4. Provision for a date, time and place for a hearing regarding the improvement; and 5. A direction that notice be given of the improvement and of the public hearing. 6. The amount of the estimated cost of the improvement made by the city engineer and a proposed allocation of the cost of the improvement among the owners of the property to be http://www.ashland.or.us/CodePrint.asp?Branch=True&CodeID=2802 3/26/2007 City of Ashland, Oregon - Municipal Code Page 2 of9 specially benefitted; B. Optional Provisions. The improvement resolution may include the following: 1. A determination whether the property benefitted shall bear all or any portion of the cost of the local improvement, based upon the estimated cost; 2. Alternative proposals relating to the local improvement, but only if each alternative contains all of the information required to be contained in the resolution if that alternative proposal were the only proposal put forward; and 3. Any other information that the council deems relevant to the improvement. 13.20.040 Notice of Hearing Regarding Improvement Resolution A. Notice. Notice of the hearing regarding the improvement resolution shall be given at least 30 days prior to the scheduled date of the hearing. B. Method of Delivering Notice. Notice shall be made by publication in a newspaper of general circulation within the city and by mailing copies of the notice by first class mail to the owners of lots affected by the improvement. C. Content of Notice. 1. The notice shall contain: a. A general description of the proposed improvement; b. A description or map of the local improvement district to be created; c. A description of the property to be specifically benefitted by the improvement; and d. The date, time and place of the hearing when the council wiil hear and consider objections or responses to the improvement. . e. A statement that if two-thirds of the property owners to be benefitted object to the improvement, the improvement will be suspended for six months. f. A clear explanation on how and where property owners may object to the improvement. g. The amount of the estimated assessment proposed on each particular property. h. Any other information the council may direct to be included. D. Effect of Failure of Notice. Any mistake, error, omission or failure with respect to a good faith mailing of any notice shall not be jurisdictional or invalidate the improvement proceedings. 13.20.050 Hearing on Improvement Resolution A. Testimony Considered. At the hearing regarding the improvement resolution, the council shall hear and consider testimony, both oral and written, on the improvement. B. Approval in Discretion of Council. The council may implement the improvement resolution and undertake completion of the improvement only if, in its sole discretion, the improvement is in the best interest of the city. The council's discretion shall not be limited by the fact that a majority of the benefitted property owners have requested or indicated their support for the improvement. C. Effect of Remonstrance. If at the hearing, the owners of two-thirds of the property to be http://www.ashland.or.us/CodePrint.asp?Branch=True&CodeID=2802 3/26/2007 City of Ashland, Oregon - Municipal Code Page 3 of9 specially assessed for the improvement, or the owners of property which will be assessed for two-thirds or more of the proposed assessment, deliver to the council a remonstrance to the improvement, then action on the improvement shall be suspended for a period of six months. Action on sidewalks or on improvements unanimously declared by the council to be needed at once because of an emergency shall not be subject to suspension by a remonstrance of the owners of the property to be specially assessed. Notwithstanding any document or agreement obligating an owner, or the owner's successor in interest, to be favor of improvements or in favor of a local improvement district, or any document of agreement waiving an owner's or successor's right to remonstrate against improvements of a local improvement district, such owner or successor may remonstrate and such remonstration shall qualify as a remonstrance under this section. (Ord 2837 51, 1999) D. Modifications. At the hearing, the council may direct any modification of the improvement that it deems appropriate. If the council modifies the scope of the improvement such that the local improvement district would be enlarged, or, if estimated assessments have been made by the time of the hearing, the assessment is likely to be increased by more than ten percent upon one or more lots, then a new improvement resolution shall be adopted by the council, and new notices mailed to all of the owners of properties within the local improvement district. No new publication regarding the amended improvement need be made.(Ord 2731, 1994) E. Creation of Local Improvement District. If the improvement is approved by the council, the council shall by resolution create the local improvement district to be served by the improvement. F. Determination of Allocation. The council shall determine whether the property benefitted shall bear all or a portion of the cost. The council shall then direct the city recorder to prepare the estimated assessment to the respective lots within the local improvement district and file it in the lien records of the city. The council shall then hear any objections that have been filed with the recorder concerning the amount of the assessments, and may adopt, correct, modify or revise the estimated assessments. 13.20.060 Method of Assessment A. Procedure for Assessment. When the estimated cost of an authorized local improvement has been ascertained on the basis of the award of a contract or the departmental cost of the city or other governmental agency to undertake the improvement, the city recorder, or such other person as the council may direct, shall prepare the proposed assessments to the respective lots within the local improvement district, shall file them in the office of the city recorder, and shall submit the proposed assessments to the council. The submission may be in the form of a proposed resolution. B. Determination of Assessment. The council shall determine the amount of the estimated assessment to be charged against each lot within the local improvement district according to the special and peculiar benefits accruing to the lot from the improvement, and shall spread the estimated assessments accordingly. If the estimated cost, as ascertained under the preceding paragraph, is more than ten percent above any estimated total assessment for the project the council may vote to discontinue the project or to find other sources of funds so that the actual assessment does not exceed the estimated assessment by more than ten percent. In determining and spreading the assessment, the council may use any just and reasonable method consistent with the benefits derived by the various affected lots. If any actual assessment to be levied on an individual lot exceeds the original estimated assessment by more than ten percent, the council shall review such increase at the public hearing described in section 13.20.0GO.E. (Ord 2731, 1994) C. Adoption of Proposed Assessment. Upon receiving the proposed assessment, the council shall, after making any modifications, adopt a resolution directing that notice of the proposed assessments be mailed or personally delivered to the owners of the lots to be assessed. The notice shall contain the follOWing information: http://www.ashland.or.us/CodePrint.asp?Branch=True&CodeID=2802 3/26/2007 City of Ashland, Oregon - Municipal Code Page 4 of9 1. The name of the owner, a description of the property to be assessed, and the amount to be assessed against the property. 2. A date and time by which written objections to the proposed assessment, stating speCifically the grounds for objection, must be received, and the date, place and time of a hearing at which the council will consider any objections. 3. A statement that the assessment will be levied by the council after the hearing, will be charged against the property, and will be immediately payable in full or in installments (if applicable) following the levy. D. Supplementary Notice. Supplementary notice of the proposed assessment and of the hearing scheduled to consider the proposed assessment in form and content to be determined by the city recorder may also be published or posted by the city recorder. E. Hearing Regarding Proposed Assessments. The council shall hold a public hearing on the date and time set in the notice to consider those objections filed in writing with respect to the proposed assessments. The council may adopt, correct, modify or revise the proposed assessments and shall determine the amount of the assessment to be charged against each lot within the local improvement district according to the special and peculiar benefits accruing to it from the improvements, and shall by resolution levy and spread the assessments and cause that notice of the assessments be delivered to all of the owners of property within the local improvement district. 13.20.070 Notice of Assessment A. Within ten days after the effective date of the resolution levying the assessments, the city recorder shall send by first class mail to the owner of the assessed property, a notice of assessment. The notice shall contain the following information: 1. The date of the resolution levying the assessment, the name of the owner of the property assessed, the amount of the assessment, and a description of the property assessed; 2. A statement that the owner may file an application to pay the assessment in installments, as provided in this chapter; and 3. A statement that the entire amount of the assessment, less any part for which application to pay in installments is made, is due within 20 days of the date of the letter and, if unpaid on that date, will accrue interest and subject the property to foreclosure. B. Supplementary notices of assessment, in form and content to be determined by the city recorder, may also be published or posted by the city recorder: C. Failure to receive any notice of assessment shall not invalidate the proceedings nor affect the validity of the assessment. 13.20.080 Address To Which Notices Should Be Sent If a notice is required to be sent to the owner of a lot pursuant to this chapter, the notice shall be addressed to the owner or the owner's agent, as such address is recorded in the county tax roll. If the address of the owner or of the owner's agent is unknown to the recorder, the recorder shall mail the notice addressed to the owner or the owner's agent at the address where the property is located. Any mistake, error, omission or failure in respect to a good faith mailing shall not be jurisdictional or invalidate the assessment proceeding, but there shall be no foreclosure or legal action to collect until notice has been given by personal service upon the property owner, or, if personal service cannot be had, then by publication once a week for two consecutive weeks in a newspaper of general circulation within the city. http://www.ashland.or.us/CodePrint.asp?Branch=True&CodeID=2802 3/26/2007 City of Ashland, Oregon - Municipal Code Page 5 of9 13.20.090 Deficit Assessments or Refunds If the initial assessment has been made on the basis of estimated cost, and, upon completion of the work, the cost is found to be greater than the estimated cost, the council may make a deficit assessment for the additional cost, provided, however, the council may not make a deficit assessment for more than ten percent of the initial assessment. Proposed assessments upon the respective lots within the special improvement district for a proportionate share of the deficit shall be made, notices shall be sent, opportunity for objections shall be given, any objections shall be considered, and a determination of the assessment against each particular lot, block, or parcel of land shall be made in the same manner as in the case of the initial assessment, and the deficit assessment shall be spread by resolution. 13.20.100 Rebates and Credits If assessments have been made on the basis of estimated cost and upon completion of the improvement project the cost is found to be less than the estimated cost, the council shall ascertain and declare the same by resolution, and when so declared, the excess amounts shall be entered on the city lien record as a credit upon the appropriate assessment. Thereafter, the person who paid the original assessment, or that person's legal representative or successor, shall be entitled to repayment of the excess amount. If the property owner has filed an application to pay the assessment by installment, the owner shall be entitled to such refund only when such installments, together with interest thereon, are fully paid. If the property owner has neither paid such assessment nor filed an application to pay in installments, the amount of the refund shall be deducted from such assessment, and the remainder shall remain a lien on the property until legally satisfied. 13.20.110 Description of Real Property; Effect of Error In Name of Owner In levying, collecting and enforcing local assessments for local improvements, the following shall apply: A. Real property may be described by giving the subdivision according to the United States survey when coincident with the boundaries of the property, or by lots, blocks and addition or subdivision names, or by metes and bounds or reference to the volume and page or document number of any publiC record of Jackson County where the description may be found, or by designation of tax lot number referring to a record kept by the Assessor of descriptions of real property of Jackson County, which record shall constitute a public record, or in any other manner as to cause the description to be capable of being made certain. Initial letters, abbreviations, figures, fractions and exponents, to designate the township, range, section or part of a section, where the number of any lot or block or part, or any distance, course, bearing or direction, may be implied in any description of real property. B. If the owner of any land is unknown, the land may be assessed to "unknown owner," or "unknown owners." If the property is correctly described, no final assessment shall be invalidated by a mistake in the name of the owner of the real property assessed or by the omission of the name of the owner or the entry of a name other than that of the true owner. Where the name of the true owner, or the owner of record, of a partial of real property is given, the final assessment shall not be held invalid on account of any error or irregularity in the description if the description would be sufficient in a deed of conveyance from the owner, or such that, in a suit to enforce a contract to convey, employing such description a court of equity would hold it to be good and sufficient. C. Any description of reai property that conforms substantially to the requirements of this section shall be a sufficient description in all proceedings of assessment relating or leading to a final assessment for a local improvement, foreclosure and sale of delinquent assessments, and in any other proceeding related to or connected with levying, collecting and enforcing final assessment for special benefits to the property. http://www.ashland.or.us/CodePrint.asp?Branch=True&CodeID=2802 3/26/2007 City of Ashland, Oregon - Municipal Code Page 60f9 13.20.120 Lien Records and Foreclosure Proceedings A. Assessment Liens. After adoption of the assessment resolution by the council, the city recorder shall enter in the city lien record and adopt a statement of the amount assessed upon each particular lot, parcel of land or portion, together with a description of the improvement, the name of the owners, and the date of the assessment resolution. The amounts entered in the lien record shall become a lien and charge upon the respective lots, parcels of land or portions that have been assessed for such improvement. All assessment liens of the city shall be superior and prior to all other interests, liens and encumbrances on the assessed property insofar as the laws of the State of Oregon permit. B. Interest. Interest shall be charged until paid on all amounts assessed but not paid within 20 days from the date of the notice of assessment, at a rate to be determined by the council. C. Foreclosure. After expiration of 20 days from the date of the notice of assessment, the city may proceed to foreclose or enforce collection of the assessment liens in the manner provided by the general law in the State of Oregon for the collection of such liens. The city may, at its option, bid the amount of its lien for the property being offered at any foreclosure sale. 13.20.130 Errors in Assessment Calculations Persons claiming errors in the calculation of assessments shall bring the alleged errors to the attention of the city recorder. The city recorder 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 the council an amendment to the assessment resolution to correct the error. Upon adoption of the correcting resolution, the city recorder shall cause the correction to be made in the city lien record and shall cause a corrected notice of assessment to be sent by first class mail to the owners of all affected properties. 13.20.140 Installment Payments of Assessments The Bancroft Bonding Act (ORS 223.205 to 223.295) shall apply to assessments levied in accordance with this chapter, subject to the provisions of this chapter. Unless otherwise prOVided in a particular assessment resolution, the owner of any property assessed for a local improvement in a sum of $100 or more may, at any time within 20 days after the date of the assessment notice (or within such lesser time, not to be less than ten days, as the council may from time to time establish), file with the city recorder a written application to pay the whole of the assessment, or, if any part of the assessment has been paid, the unpaid balance of the assessment, in 20 semi-annual installments, together with interest thereon at a rate to be determined by the council, and an amount, to be determined by the council, sufficient to pay a proportionate part of administering the bond assessment program and issuing the bonds. In addition, each application shall state that the applicant waives all irregularities, jurisdictional or otherwise, in the proceedings to cause the local improvement for which the final assessment is levied and in the apportionment of the actual cost of the local improvement, and shall contain a description, by lots and blocks, or other convenient method, of the property of the applicant assessed for the improvement. 13.20.145 Deferral of Assessment Payments An owner may elect to defer payment of the amount of special assessment for a local improvement assessed on potential units pursuant to this chapter. The election shall be made by filing a claim for deferral with the city recorder. The effect of filing the claim shall be to defer payment of the amount of special assessment for local improvement on potential units. Potential units are those lots identified as such in the resolution fixing the final assessments for a local improvement district. Potential units are determined by using the potential unit method which establishes the maximum number of potential units on properties within a proposed local http://www.ashland.or.us/CodePrint.asp?Branch=True&CodeID=2802 3/26/2007 City of Ashland, Oregon - Municipal Code Page 7 of9 improvement district by taking into consideration the zoning, densities, topography, transportation, utilities and such other factors as necessary to evaluate the development potential of the properties. The claim for deferral shall be effective for the calendar year for which it is filed and for each subsequent year until the occurrence of one or more of the events described in this section. A. In order to qualify for deferral of payment of special assessment for local improvement amounts under this section, the owner must meet the following requirements at the time the claim for deferral is filed and thereafter so long as payment of the amount of special assessment for local improvement is deferred: 1. The owner filing the claim must own the fee simple estate or be purchasing the fee simple estate under a recorded instrument of sale. 2. The property with respect to which the claim is filed must have an assessment levied upon it for potential units. The deferment will only apply to the potential units, not lots or parcels which exist as of the date final assessments are imposed. B. A claim for deferral under this section shall be in writing on a form prescribed by the city recorder and shall: 1. Describe the lot or parcel upon which the potential units exist. 2. Recite facts establishing the eligibility for the deferral under the provisions of this section. 3. Be verified by a written declaration of the applicant making the claim to the effect that the statements contained in the claim are true. 4. Be filed within 30 days after notice of the assessment is received. C. The city recorder shall show by an entry in the assessment lien record which property specially assessed is accorded deferral under this section. D. Interest shall accrue on the amount of the deferred special assessment for local improvement at the rate established in the resolution imposing final assessments. E. The liens for deferred special assessment for local improvement shall have the same priority as special assessment liens against real property. F. All deferred special assessments for local improvement, including accrued interest, become payable when: 1. The property with respect to which deferral of collection of special assessment for local improvement is claimed is sold, or a contract to sell is entered into, or some person, other than the owner who claimed the deferral or other than a surviving spouse of such owner who elects to continue the deferral, becomes the owner of the property. The surviving spouse may elect to continue the property in its deferred status if the election is filed in the same manner as a claim for deferral is filed under section 13.20.145.B within six months of the death of the spouse who claimed the deferral. Thereupon, the property with respect to which the deferral is claimed shall continue to be subject to special assessment deferral. 2. When any sale, contract to sell or any other transfer occurs and a surviving spouse does not elect to continue the deferral, the amounts of deferred special assessment for local improvement, including accrued interest, shall be due and payable on the sale or transfer of the property. 3. If the amounts falling due as provided in this section are not paid on the indicated due date, the amounts shall be deemed delinquent as of that date and the property shall become subject to foreclosure. (Ord 2837 52, Added, 02/16/1999) http://www.ashland.or.us/CodePrint.asp?Branch=True&CodeID=2802 3/26/2007 City of Ashland, Oregon - Municipal Code Page 8 of9 13.20.150 Abandonment of Proceedings The council shall have full power and authority to abandon and rescind proceedings for local improvements made under this chapter at any time prior to the final completion of such improvement. If liens have been assessed upon any property under such procedure, they shall be canceled, and any payments made on such assessments shall be refunded to the persons paying the same, their assigns or successors. 13.20.160 Manner of Doing Work Local improvements may be made in whole or in part by the city, by another governmental agency, by contract, or by any combination of these. The city administrator, on behalf of the city, shall determine the engineer for all work to be accepted by the city for public maintenance. 13.20.170 Curative Provisions No improvement assessment shall be rendered invalid by reason of a failure to have all of the information required to be in any engineer's or city recorder's report, the improvement resolution, the assessment resolution, the lien docket or notices required to be published, mailed or posted; nor by the failure to list the name of, or mail notice to, the owner of any property as required by this chapter; nor by reason of any other error, mistake, delay, omission, irregularity, or other act, jurisdictional or otherwise, in any of the proceedings or steps specified in this chapter, if such proceedings or steps were made in a good faith effort to comply with the requirements of this chapter, unless it appears otherwise that the assessment is unfair or unjust in its effect upon the person complaining. The council shall have the power and authority to remedy and correct all such matters by suitable action and proceedings. 13.20.180 Construction of Improvement: Bids A. Immediately after the effective date of the resolution establishing the local improvement district, the engineer for the city shall cause necessary right-of-way and easements to be acquired and the improvement to be made in accordance with the terms of the resolution if the work is to be performed by the city or another governmental agency. If any part of the work of the improvement is to be done under contract bids, the engineer for the city shall cause detailed plans and specifications to be prepared and filed and notice calling for bids to be published in a newspaper of general circulation within the city not less than ten days prior to the opening of the bids. B. The city administrator shall have the authority to sign all contracts on behalf of the city. C. If the bid is more than ten percent above the engineer's estimate, the city administrator shall refer the matter to the city council which may, in its discretion, provide for holding a special hearing to consider objections to proceeding with the improvement on the basis of such bid. 13.20.190 Reassessments A. Whenever all or part of any assessment for any local improvement has been or shall be declared void or set aside for any reason or its enforcement refused by any court by reason of jurisdictional or other defects in procedure, or whenever the council is in doubt as to the validity of all or any part of such assessment, the council may make a new assessment or reassessment in the manner provided in ORS 223.405 through ORS 223.485, inclusive. B. For purposes of this section, the term "assessment" includes deficit or supplemental assessments and reassessments. http://www.ashland.or.us/CodePrint.asp?Branch=True&CodeID=2802 3/26/2007 City of Ashland, Oregon - Municipal Code Page 9 of9 13.20.200 Apportionment of Liens Upon Partition A. Whenever the ownership of any portion of a tract of real property less than the entire tract is or has been transferred through partition or otherwise, any lien against said real property in favor of the city shall, upon request of the owner, mortgagee or lien holder of any portion of the tract, be apportioned as provided in this section and not otherwise; provided, that such transfer is in accordance with ORS 92.010 to 92.190, the Ashland Comprehensive Plan and Land Use Ordinance. B. Applications for the apportionment of liens shall be made to the city recorder and shall be accompanied by a fee established by resolution of the council. The application shall describe the tract to be partitioned and the names of the owners of the respective tracts resulting from the partition. The County Assessor shall furnish to the applicant a certificate showing the assessed valuation of the tract prior to partition as of July 1 of the year in which the apportionment is requested, if available; or if not available, as of July 1 of the preceding year. C. The city recorder shall compute an apportionment of the lien against the real property upon the same basis as the same was originally computed and apportioned. No apportionment shall be made unless all parts of the original tract of land, taken together, after the apportionment will have a true cash value as determined from the certificate of the assessor of at least the amount of the lien as to the various tracts concerned. D. Apportionment of a final assessment resulting from a partition under this section shall be done in accordance with a resolution of the council. The resolution shall describe each parcel of real property affected by the apportionment, the amount of the final assessment levied against each parcel, the owner of each parcel and such additional information as is required to keep a permanent and complete record of the final assessments and payments. A copy of the resolution shall be delivered to the city recorder for filing in the city lien docket. E. No apportionment may be made under this section unless the deed, mortgage or other instrument evidencing the applicant's interest in the parcel has been recorded by the County Clerk, or, if the same has not been filed, the applicant files a true copy with the city recorder. 13.20.210 Remedies Subject to the curative provisions of this chapter and the rights of the city to reassess, all actions of the council taken pursuant to this chapter are reviewable solely and exclusively by writ of review in accordance with the procedures in ORS 31.010 to 34.100. 13.20.220 Severability Should any section, paragraph, sentence or word of this chapter be declared for any reason to be invalid, it is the intent of the city of Ashland that all other portions remain if effect. (Ord 2705, 1993) http://www.ashland.or.us/CodePrint.asp?Branch= T rue&CodeID=2802 3/26/2007 Implementation Measures for Ad Hoc LID Committee Recommendations Committee Recommendation Background Information! Implementation Measures Council Action i Develop process where City participates i Approve 'LID Resolution" ! at set percentages for specific street ! outlining City participation i improvement components - 60% of i in the percentages i sidewalk construction, 75% of storm drain !,':::""". recommended. i improvements, 20% of street surface ! improvements, and 50% of Engineering ! and Administration costs. Average City ! participation in overall street improvement i would be approximately 40%. . .......................................................t.......................................................................................1......................................................... That the assessment i The LID Ordinance currently is silent on i Approve 'LID Resolution" method for local street ! any preferred method, just stating 'The ! outiining the use of a improvements be based i Council shall datennine the amount of the i 'potential unif method for on a "potential unif i estimated assessment to be chatyed against i local street LID's. method rather than i aach lot within a local improvement district i "frontage foot" i according to the special and peculiar benefits ! i accruing to the lot from the improvement, and i i shall spread the astimated assessments i i accordingly." This language should remain ! i to allow the Council flexibility for LID's i ! other than local streets, and a separate ! i resolution should be adopted clearly i ! articulating the Council's policy that a unit ! i approach be used in local street LID's. i .......................................................t.......................................................................................~......................................................... That the total number of i It should be recognized in the process that i Include methodology for "potential units' within a i some properties within a local i determining 'potential local improvement district i improvement district will have the i units" in 'LID Resolution" be determined based on i opportunity for further development, and ! adopted by Council. underlying zoning. i the potential number of future lots should i i be determined when preparing i i assessments. i ........................................................;.......................................................................................~......................................................... The maximum i The $4,000 cap would be initially i Adopt 'LID Resolution" assessment for individual i established as part of the 'LID ! setting $4,000 cap and units should be $4,000, . Resolution", and would include provisions i defining "development excluding City for annual adjustments based on the ENR property". (Council/or participation. No to allow for inflation. "Development Wheeldon has expf8SSed maximum or participation property" would also be clarified. Initially, concern regarding the by the City should be this is property that requires the necessary $4,000 cap and the ability allowed for 'development street improvement for further partitioning to cover costs.) property" or city-owned or subdivision. This would also include parcels. : deferred street improvements that were i part of previous subdivision approvals ! (similar to Waterline Road issue). . .................................................................................................................................................~......................................................... That the City participate in the costs associated with local street improvements. .......................................................-................................................................................................................................................. . . . . Committee i Background Informatlonl i Council Action Recommendation i Implementation Measures i .......................................................;.......................................................................................1......................................................... Large existing parcels : Recognizing that existing large parcels i Revise LID Ordinance with potential for further i may have high assessments based on i (AMC 13.20) to allow for development would only i future development potential, the process i deferment on potential lots. be assessed for the i would be designed to only require i Interest would accrue on existing uni~ and i payment of the assessment on the i deferred assessments. assessments for potential j existing lot, with further assessments i lots would be deferred. i deferred until the property owner takes j i action to create the new parcels. This i i deferred assessment would be recorded i i as a potential lien on the property. i .......................................................t.......................................................................................~..........n............................................. Require full payment of i On deferred assessments for potential j Revise LID Ordinance LID assessments at the . lots, after the new lots are created, the i (AMC 13.20) to require full time of sale of the lots. deferred assessment would be due in full i payments at the time of lot at the time of the first sale. If a street i sale after new lot creation. improvement had been completed, the i Establish notification actual cost would used. If the street i process with City Recorder design had been completed for j to allow tracking of improvements not done, the cost would be i deferred assessments. the estimated cost plus 10%. INhere no i preliminary design had been completed, i the cost would be the maximum cap of i . $4,000, adjust annually for inflation. i ........................................................,.......................................................................................':!......................................................... Revise 'pre-signed' i Allow for option of pay-off of agreements, i Revise LID Ordinance agreement process, i maintaining property 'in favor' status for i (AMC 13.20) to change allowing for option for i LID formation. Allow remonstrances even i agreements to 'deferred eerly pay-off, and i if paid off. Maintain option of using i transportation requiring full pay-offwhen i agreements rather than full improvements j improvement agreements', agreement required for j for smaller developments (partitions, i require payment at time of new development. i accessory units). Require the full i first sale after signing of , payment of the assessment ($4,000 or i agreement. Also allow for engineer's estimate + 10%) at the time of i remonstrances after pay- first property sale after the agreement was i off. (Council members do signed. j notappeartobe/n i complete agllKlment on i the remonstrance Issue.) ....................................................... ................................................................................................................................................. i The affected properties within a potential i improvement district should be involved j with all phases of the LID process, i including initial street design, cost i allocations, and ultimate construction. It i should also be recognized that minimum i street standards will be maintained (full j paving, sidewalks, storm drains) but that i modifications where possible will be i accommodated. . ..................................................................................................................................................i......................................................... Maintain neighborhood involvement in local street improvement process. Adopt 'LID Resolution" explicitly stating that a neighborhood planning process will be used with the formation of local improvement districts. FINANCING Several different financing sources have been identified for implementation of this program. These range from utilizing local resources (Street Department) for some street improvements, to preparing a long- range plan for air quality improvements that would increase eligibility for CMAQ funding. Portions of the Sidewalk LID funding would be eligible for use, as well as a smaller percentage of Transportation SDC money, if the Council so chooses. Short term dollars can be made available from existing funds to begin the process : while the Council continues researching i other funding options. Continue researching funding options. Prepare long-term financial plan to address needs for next 10- 20 years. Program can be jump started by infusion of existing funding for the first year or two. City of Ashland, Oregon - 09 LID Process Page 1 of2 City _otMhland,Qr~gon / Clty--'~ecordeI / QQcuments / Resl1lutlQns / Y~ilLof 1992 / 09 LID Process 09 LID Process RESOLUTION NO. 1999-09 A RESOLUTION RELATING TO LOCAL IMPROVEMENT DISTRICTS (LIDs) AND ESTABLISHING: THE CITY'S PARTICIPATION IN LIDs; THE POTENTIAL UNIT METHOD TO DETERMINE ASSESSMENTS; THE MAXIMUM ASSESSMENT FOR RESIDENTIAL LOTS AND REQUIRED PROCESS TO INCLUDE NEIGHBORHOODS IN LID PLANNING. THE CITY OF ASHLAND RESOLVES AS FOLLOWS: SECTION 1. City Participation in LIDs. A. Except as provided in paragraph B, the city shall contribute the following amounts to reduce assessments in any local improvement district (LID) formed after the date of this resolution to improve local streets serving a residential neighborhood: 60% of the total costs for Sidewalk improvements; 75% of the total costs for storm drain improvements; 20% of the total costs for street surface improvements; and 50% of the total costs for engineering and administrative. B. Unless the council so directs by further resolution, no contribution will be made by the city under this section for LIDs formed after the date of this resolution if the LID improvements are required to be made by an owner or developer as a condition of approval for a subdivision or partition. SECTION 2. Potential Unit Method to Be Utilized. In determining the method to be utilized for charging assessments against benefitted properties in LIDs formed after the date of this resolution to improve local streets serving a residential neighborhood, the potential unit method, rather than the frontage foot method, shall be the preferred method. The potential unit method is that method which determines the maximum number of potential units on properties within a proposed local improvement district by taking into consideration the zoning, densities, topography, transportation, utilities and such other factors as necessary to evaluate the development potential of the properties. The planning department shall be responSible for initially determining the potential units for each property within a proposed LID. SECTION 3. Maximum Assessment on Residential Properties. A. The maximum amount any residentially zoned lot may be assessed as a benefitted property within an LID to improve local streets serving a residential neighborhood and which is formed after the date of this resolution is $4,000 plus $4,000 for each potential unit within such residentially zoned lot. This maximum amount shall be increased to account for inflation annually on April I st based on the Engineering News Record Construction Cost Index (ENR Index) for Seattle, Washington. The current index is established at 5990.77. B. There shall be no maximum amount, however, on lots owned by the city or on lots where the LID improvements are required to be made by an owner or developer as a condition of approval for a subdivision or partition. C. Prior to the adoption of the assessment resolution levying final assessments as provided in AMC ~ 13.20.060.E: http://www.ashland.or.us/Page.asp?NavID= 1266&Print=True 3/26/2007 City of Ashland, Oregon - 09 LID Process Page 2 of2 1. Any owner may pay the estimated assessment on the lot and potential units, plus ten percent, or 2. Any owner not subject to subsection B above, may pay the lesser of the estimated assessment on the lot and potential units, plus ten percent, or the maximum amount described in subsection A above. Upon such payment, the assessment shall be deemed satisfied and the final assessment resolution shall reflect that the assessment has been paid. SECTION 4. Neighborhood Planning Process. Prior to the formation of an UD, city staff shall notify the residents of the affected neighborhood of the possibility of the LID formation. Residents shall be given the opportunity to comment and make suggestions on initial street design and potential units. Minimum street standards shall be maintained, however, unless the council by resolution specifically authorizes specific changes for a particular project. This resolution was read by title only in accordance with Ashland Municipal Code Section 2.04.090 duly PASSED and ADOPTED this 2nd day of February, 1999 Barbara Christensen, City Recorder SIGNED and APPROVED this 3rd day of February 1999 Catherine M. Shaw, Mayor Reviewed as to form: Paul Nolte, City Attorney End of Document - Back to_LOP http://www.ashland.or.us/Page.asp ?N av ID= 1266&Print= True 3/26/2007 November 1997 Bas i c s a b 0 u t LOCAL IMPROVEMENT DISTRICTS Local improvement districts, or special assessment districts, function as mainstays of local improvement financing. Special assessment was used as early as the thirteenth century, when an English law provided for special assessment to finance construction and maintenance of a drainage system in certain marsh lands. This English special assessment system was adopted by the American colonies, and after independence, local govermnents continued to use special assessment under authority of state laws. A local improvement district is a geographic area in which real property is taxed to defray all or part of the costs of a public improvement. The distinctive feature of a special assessment is that its costs are apportioned according to the estimated benefit that will accrue to each property. In Oregon, local improvement districts are governed by local ordinances, but the Bancroft Bonding Act (ORS 223.205- 295) addresses the means by which local govermnents may finance public improvements. The tax limitation brought about by Ballot Measure 5 (1990) created several changes to the ways in which local govermnents can finance public improvements, marking perhaps the most significant change to special assessments in recent years. Are local improvement districts the same thing as special districts or economic improvement districts? On what basis may local governments designate local improvement districts? No. Special districts, such as water districts or mosquito abatement districts, are separate govermnent organizations with their own governance structures. Economic improvement districts (sometimes called "empowerment zones") are districts created within cities in order to support business recruitment, development, and commercial activities in particular locations. In Oregon, local improvement districts use special assessments to finance local improvements in cities, counties, and some special districts. Common improvements include such things as storm and sanitary sewers, street paving, curbs, sidewalks, water lines, recreational facilities, street lighting, and off-street parking. In addition, special assessments are used to finance reconstruction of deteriorated, substandard, or outmoded facilities, both in older developed areas and in areas newly annexed to a city. The basic principle of special assessment is that it is a charge imposed upon property owners who receive special benefits from an improvement beyond the general benefits received by all citizens of the community. Three "principles of benefit" describe the main factors to be considered by a public agency when deciding to use special assessment. They are: . Direct Service. An example would be the construction of a street that gives access to a property previously without access. The benefit exists in terms of improved land development value. . Obligation to Others. This is not an intuitively obvious benefit. An example would be the construction of a storm sewer and catch basin, which would have no direct service benefit to a property on the top of a hill. The benefit exists in the fact that the uphill land may be ..... How does a local government determine the benefits of a public works project financed by special assessment? What gives local governments legal authority for collecting special assessments? developed and provided access without causing damage to downhill land. . Equal Sharing. An example would be a sidewalk down the length of a street. Each property owner is usually responsible for the sidewalk in front of the property, not always because the property owner desires a sidewalk, but because all properties served by the sidewalk system benefit equally from it. Governing bodies need to exercise discretion in determining the benefits of a project financed by special assessment. Considerations include the following. . Each project should meet the standards applied to other public works in the community. In the majority of cases, local improvement districts are created in order to finance public improvements in new developments. Therefore, the governing body is responsible for establishing standards for a project. . The facility should initially be built in accordance with this community-wide standard. Property owners are not easily persuaded that a new special benefit is received from the reconstruction of a project that is already in place. . The assessed cost must be distributed among property owners according to the proportionate benefits to each owner's land. Since individuals do not always agree on the value of the project, a governing body may consider objections from those charged. . A developer may be granted the privilege of special assessment financing for new facilities. Using the lower interest rate on municipal borrowing reduces the developer's cost. Since there may be risks to all citizens of the jurisdiction, some governing bodies do not allow this use of special assessment. Special assessment usually is upheld as a valid exercise of state taxing power, and less frequently as an exercise of eminent domain or police power. The Oregon Constitution requires uniform taxation on the same class of subjects, and the Oregon Supreme Court held near the turn of this century that apportiomnent according to benefit constitutes a sufficient kind of uniformity, and therefore special assessment is a valid form of taxation. The Oregon Constitution gives cities the power to assume authority under home rule charters to finance local improvements by special assessment. The Legislature has provided cities with a procedure for special assessment financing (ORS 223.387-399) which applies when city charter or ordinance provisions do not specify otherwise. Cities are also specifically empowered by statute to provide for improvements and assessments in specific situations, including the provision of off-street parking and the installation of pedestrian malls. The Oregon Constitution also allows counties to adopt home rule charters by which they may assume authority to undertake special assessment improvement projects. A county may be able to exercise local How did Ballot Measure 5 (1990) change the way in which local governments finance public improvements? But what does the properly tax limitation have to do with special assessments ? Will Measure 50 (1997) affect Local Improvement Districts? Surely there are other ways in which local governments can finance public improvements! improvement district and special assessment prerogatives under the broad general powers granted to counties in 1973 under ORS 203.030-065. This has been construed by the attomey general as granting non-home rule counties the same authority in matters of county concem (except in the area of the structure and organization of county government)as is possessed by counties operating under home rule charters. Local governments in Oregon are financed primarily through property taxes. Ballot Measure 5 (1990) limited the amount of tax local governments can levy for funding the operations of public schools and other local government services. Current maximum allowable taxes for schools are $5 per $1000 of a property's real market value; the maximum forlocal government operations is $10 per $1000 ofa property's real market value. Should local taxes exceed the $10 per thousand limit, the taxes must be reduced evenly by the percentage necessary to meet the limitation for that category. (The local taxes could, for example, exceed the limit for school taxes but not exceed the limit for government operations taxes, In that instance, only school taxes would be reduced.) Measure 5 changed the way in which local governments fmance public works projects: Prior to 1990, the Bancroft Bonding Act (ORS 223.205- 295) allowed local governments to assess property owners for their share of specific local improvements. Bonds could then be sold in the amount of the improvement, secured directly by the assessments charged the property owners, and indirectly by the lien against the assessed property. Under Measure 5, ifbonds for particular projects have been approved by voters in an election, they may be issued as general obligation bonds not subject to property tax rate limitations. The Portland area, for example, has passed several bond issues recently for the benefit of such things as parks, libraries, and the zoo. If the bonds have not been approved by the voters, and are issued as limited tax bonds, they fall under the tax rate limitation for government operations of$1O per $1000 of real market value;. This means that if a local government has reached its taxing limits, it cannot issue Bancroft bonds without voter approval. When governments in all areas of the state come under tax rate compression (meaning they are taxing at the full $15 per $1000 combined rate for schools and government operations), their capacity for issuing Bancroft bonds for local public improvements without voter approval will be eliminated. Passage of Measure 50 (1997) does not affect special improvement assessments themselves. Measure 50 could, however, indirectly affect ability to sell bonds for the improvement if the bonds are only backed by the special assessments and cannot be backed by property taxes. There are other means by which local governments can finance public improvements, though they are not exactly comparable to special assessments. As mentioned above, a local jurisdiction may issue general obligation bonds with voter approval. This requirement asks all the citizens of a jurisdiction to pay for improvements to a particular neighborhood. In the majority of cases, local improvement districts are formed in order to pay for the infrastructure requirements of new development, and thus general obligation bonds require that citizens of established communities pay for new development, violating the fundamental principle of special assessments that properties receiving special benefits should pay for them. In addition, as Bancroft bonding is a means for allowing private developers to share the risk of new development with local govemment (through the use of lower government interest rates), the costs of new development are driven up as the developer must assume all up-front costs of the necessary public improvements. Local governments may also issue revenue bonds, which are backed by the revenues generated from the operation of the financed improvement. Revenue bonds thus may be issued only for those activities which generate revenues, such as water lines or sewer systems. Curbs and sidewalks, for example, would not be eligible for revenue bond financing. Finally, there are "pure" assessment bonds, backed only by the private properties directly affected by the financed improvement. Bond underwriters consider these to be extremely risky, as they are not as secure as publicly-backed bonds, and so they are difficult or nearly impossible--especially for small and/or rural communities to sell on the bond market. Oregon law also gives local governments authority to assess Systems Development Charges (SDCs) on new development to pay for sewer, water, street, or park capital improvements. The state law specifies that the assessments be within an amount determined by the local government as the cost of accommodating the new development. i Oregon Laws 1991, Ch. 902, Section 98 (8): '''Limited tax bond' means a bond or other obligation which is a full faith and credit obligation, and which is payable from any taxes which the issuer may levy within the limitations of section 11 or 11 b, Article XI of the Oregon Constitution." Background material is taken from the report Financing Loca/Improvements by Special Assessment, Bureau of Govemmental Research and Service, University of Oregon, 1982. (BGRS Report #82-1) _._~I ... . . nN,Ll1E, ,.. "no< J,.. j . .,,,. ... n. 'j Council Communication CITY OF ASHLAND Study Session - General Discussion on the Future of Local Improvement Districts Meeting Date: April 2, 2007 Department: Public Works I Engineering Contributing Departments: Finance I Recorder Approval: Martha Bennett Primary Staff Contact: Paula Brown 552-2410 E-mail: brownp@ashland.or.us Secondary Staff Contact: Jim Olson 552-2412 E-mail: olsonj@ashland.or.us Estimated Time: 45 minutes Statement: This item will offer Council a review of past practices with regard to the formation and use of Local Improvement Districts (LIDs) and offer a discussion of the intent for future use of LIDs to help fund needed street projects. Staff Recommendation: Staff has developed several options for Council's discussion, but realizes that these are in no way the only options with respect to future use of LIDs. It is desired that Council provide staff clear policy direction as to the intent toward future use of LIDs and provided guidance so that staff can return with detailed recommendations. It is staffs hope that the practice of LIDs will continue. As such, staff recommends that the Council direct the newly fonmed Street Financing Task Force to discuss the need for LIDs and financing options, and have that committee bring recommendations back to Council. Staff would then be able to involve a subcommittee of the Street Financing Task Force or involve a separate committee to recommend Council desired changes to Resolution 99-09 including possible adjustments or clarifications to the following: a. percentages for City participation b. means of identifying benefited property owners c. means of computing potential lots d. the cap on the projects e. the percentage of property owners supporting the LID (perhaps as high as 75% or more) so that there is a clearer decision for the improvement f. clarification with regard to remonstrance and what happens after the 6 month period g. clarification on the handling of pre-paving signed in favor agreements Background: Ashland has struggled with balancing the need for City street improvements and how to finance and pay for those improvements. One of the funding mechanisms for improvements to dirt or gravel streets and for new sidewalk projects is the use of LIDs. LIDs conjure up distinct emotions from property owners often on opposite sides of the issue. There are the basic questions that arise when an LID is initially discussed; why should I be required to pay for street improvements when the entire City uses this street; I don't want my street paved and would rather have it left alone with a "rural" feel; I need to have the street paved to cut down on dust and dirt and eliminate gravel and dirt from running into my property; it isn't safe to have (or not have) pavement; and the list goes on. It has been the City's policy, as documented in the Comprehensive Plan, to fully improve streets to enhance all modes of safe transportation mobility, reduce maintenance costs, and improve air and water quality. The Land use ordinance specifies "improvements" and considers a street improved if it has curbs, gutters, storm drains, sidewalks, park rows, trees, street lighting, appropriate traffic control devises and paved to a width appropriate for vehicle traffic volumes including bicycle lanes or shared shoulders where appropriate. If any of these elements C:\DOCUME-l\shipletd\LOCALS-l\Temp\CC 55 LID General Discussion 02Apr07.doc Page 1 of 5 r.l' are lacking, a street may be considered in need of improvement(s). From the City's municipal code, LIDs may be initiated through a variety of options. ~ By the council, at its own initiative ~ By written petition requesting the local improvement signed by at least 50% the owners of properties that would benefit specially from the local improvement. Whenever all of the owners of any property to be benefited and assessed for any local improvement have signed a petition directed and presented to the council requesting such local improvement, the council may initiate and construct such local improvement without publishing or mailing notice to the owners of the affected property and without holding a public hearing regarding the proposed local improvement. . LIDs Prior to 1999 The City of Ashland has used the LID process for many different functions and with differing methodologies. In 1874, Ashland's first city charter granted the City authority for the formation of LIDs. City records show that LID projects were implemented as early as 1911. From 1950 to 1965 the City, at the request of developers, improved streets through the LID process with the cost of the improvements being borne solely by the new homeowners within each development. However, if the developer defaulted on the project, the cost of the street improvements on unsold lots shifted from developer to local taxpayers. The majority of the streets in Ashland have been improved by an LID or directly through subdivision developments. From 1985 to 1996, 31 streets were improved through LIDs at a cost of $2,811,185 (1996 dollars). Four more LIDs were formed and completed between 1997 and 1998 at a cost of $490,063 (1998 dollars). Ashland used a combination of lineal street footage and lot area to calculate the cost per property owner and generally the entire cost of the project was borne by the property owners. The Fordyce Street LID formed in March 1997, was one of the last LIDs prior to the procedural changes as a result of Resolution 99-09. The final cost to each property owner in the Fordyce LID was calculated on an area methodology at $8,915.93 per acre; there were 92 lots in the assessment district, most at 0.15 acres or less for an assessed amount averaging less than $1,350 per lot. The Ann and Clinton Street Improvement LID had some of the highest assessments at $2,568 to and average of $5,660 per property owner (highest was a multi-lot assessment at $34,245). Likewise, the Orange Avenue LID had high assessments at an average of $5,668 per lot. . Resolution 99-09 These higher assessment costs and the variance in the way a property was assessed (square footage or lineal front footage along the street to be improved) created additional controversies with the request to form the Tolman Creek Road LID and the Strawberry Lane /Westwood LID. The Tolman LIDs was stopped and placed on hold while the City Council and a newly formed Ad Hoc LID Commillee discussed solutions. The Westwood portion of the larger Strawberry LID proceeded under the old processes. The Ad Hoc Committee was formed in early 1998 and held its first meeting in March that year. At the Council Study Session held on October 7,1998, final implementation measures were discussed (allached) and as a result, Resolution 99-09 was adopted on February 3, 1999 (text allached). Resolution 99-09 changed the assessments to potential unit method, rather than the frontage foot method, which requires the Planning Department to determine the maximum number of potential units on properties within a proposed local improvement district by taking into consideration the zoning, densities, topography, transportation, utilities and such other factors as necessary to evaluate the development potential of the properties. The resolution also placed a cap on each lot within the assessment (then $4,000 and is $5138 as of April 2006) and C:\DOCUME-l\shipletd\LOCALS~l\Temp\CC SS LID General Discussion 02Apr07.doc Page 2 of5 '.1' required the City to participate in improvements to local streets serving a residential neighborhood at the following percentages: · 60% of the total costs for sidewalk improvements · 75% of the total costs for storm drain improvements · 20% of the total costs for street surface improvements · 50% of the total costs for engineering and administrative costs At that time, staff identified 42 street sections needing improvements within 5-10 years and an additional 17 street sections needing improvements in 10-20 years. The total cost of these 59 street projects in 1998 was $6,073,600. In 1998, staff estimated the costs to design and construct a new 22 foot road section with curb, gutter, storm drain, sidewalks and park rows was $140 per lineal foot. Today that cost is more in the range of $220 per lineal foot. . LIDs Since 99-09 Since passage of Resolution 99-09, 10 LIDs have been proposed with 7 formed and all but one has been completed and fully assessed. The Plaza Avenue LID was remonstrated last year and has not been formed, the Waterline Road LID was formed but not constructed, the Oak Street Sidewalk and traffic calming project was not officially an LID, but allowed "voluntary" participation and was not assessed as an LID, and the Liberty Street LID was proposed, but not formed. Two of these street improvement projects, Tolman Creek Road and Strawberry Lane were large assessment areas, initially fairly expensive to the property owners and were originally discussed prior to the 99-09 resolution, but not formed. With the 99-09 Resolution and cap in place, both were successfully formed and constructed. Three of the projects completed post 99-09 were for sidewalks, traffic calming and some storm drain work on Oak Street, Helman Street, and recently on Nevada Street. The Nevada Street LID caused significant controversy in how the district was formed and has not yet completed final assessments. . Future LIDs Currently staff has identified 35 streets and several alley sections that remain unimproved. This totals 8.4 miles of road surface and 2.2 miles of alleys. Although the costs of these sections has not been detailed, rough estimates would indicate over $10 million to fully improve these sections. Primarily these roads are comprised decomposed granite surfaces which can cause environmental concerns to creeks. Staff is particularly sensitive to the following streets that are on steeper grades and/or closer proximity to creeks: Ashland Loop Road, Beach Street, Fork Street, Glenview Drive, Granite Street, Liberty Street, Pinecrest Terrace, Plaza Avenue, Ridge Road, Schofield/Monte Vista Streets, Terrace Street, Walnut Street and Waterline Road. LIDs offer an important element to local governments for financing options. Although they can often be controversial, the ability to leverage funds from property owners that receive direct benefit from the improvement is one way that local government can continue to make improvements within the community. As shown in the attached Oregon Legislative Policy & Research Office document (November 1997) regarding the "Basics about Local Improvement Districts" these special assessments are used for storm and sanitary sewers, street paving, curbs, sidewalks, water lines, recreational facilities, street lighting, and off-street parking. They can be used to fund reconstruction of deteriorated, substandard or outmoded facilities in both older and newly annexed properties. Current increases in construction costs preclude much City financing of unimproved roads without additional funding sources. In addition to LIDs, there have been developer improvements, federal grants for CMAQ (Congestion Mitigation and Air Quality) funds used for a portion of certain improvements (currently those being completed at C Street and Eureka), state grants for a portion of some sidewalk projects, and state funds for a C:\DOCUME-l\shipletd\LOCALS-l\Temp\CC SS LID General Discussion 02Apr07.doc Page 3 of 5 r~' portion of some street reconstruction projects. Without the use of LIDs that extend City funds, staff is concemed that this will significantly limit the ability to improve the remaining 10 plus miles of unimproved streets and alleys. Related City Policies: Ashland Municipal Code Chapter 13.20; Local improvements and Special Assessments City of Ashland Resolution 99-09 Budget Documents including the Capital Improvements Program City of Ashland Transportation System Plan (1998) Transportation Element, Chapter X of the Ashland Comprehensive Plan (1996) Council Options: Staff is committed to using LIDs for the benefit of the community and as directed by policies of the Council. It is hoped that LIDs will continued to be used in the future, however, that is purely a policy decision of the Council. Staff sees two basic options before Council 1. Discontinue future use of all LIDs. 2. Continue to use the LID process as stated in the 99-09 Resolution, or with any of the following modification(s): a. Change the percentages for City participation b. Change the means of identifying benefited property owners c. Change the means of computing potential lots d. Change the cap on the projects i. Change the percentage of property owners supporting the LID (perhaps as high as 75% or more) so that there is a clearer decision for the improvement e. Clarification with regard to remonstrance and what happens after the 6 month period f. Clarification on the handling of pre-paving signed in favor agreements Should Council desire to continue the use of LIDs, it is recommended that the financing need and discussions take place as a part of the newly formed Street Financing Task Force and that Council charge that committee to bring recommendations back to Council. With those recommendations in hand, Council can then direct staff to bring back additional changes with regard to the specific Resolution adjustments as mentioned above. In lieu of using the Street Financing Task Force, Council may wish to create a new committee to specifically look at the LID process, and direct staff to develop that option. Potential Motions: None. Staff requests direction, but as this is a study session, no formal motions are taken. Attachments: 1. Ashland Municipal Code Chapter 13.20; Local improvements and Special Assessments (text from www.ashland.or.us) 2. Final Implementation Measures for Ad Hoc LID Committee Recommendations (as a result of the October 7, 1988 Study Session) 3. City of Ashland Resolution 99-09 (text from www.ashland.or.us) 4. Oregon Legislative Policy & Research Office document (November 1997) regarding the 'Basics about Local Improvement Districts" C:\DOCUME-I\shipletd\LOCALS-l\Temp\CC SS LID General Discussion 02Apr07.doc Page 4 of 5 ~~,