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HomeMy WebLinkAboutOrdinance No. 20248 ORDINANCE NO. 20248 AN ORDINANCE CONCERNING SYSTEMS DEVELOPMENT CHARGES AND AMENDING SECTIONS 7.010, 7.705, 7.71{}, 7.715, 7.720, 7~725, 7.730 AND 7.735 OF THE EUGENE CODE, 1971. THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS: Section 1. Section 7.010 of the Eugene Code, 1971, is amended by revising the definitions "Public improvement charge," "Qualified public improvements," "Reimbursement fee," and "Systems development charge" as follows: TOIO Definitions. For purposes of this chapter, the following words and phrases shall have the meanings ascribed to them by this section: ~rovement fee. A fee for costs associated with capital improvements to be constructed after the date the fee is adopted pursuant to section 7.705. This term shall have the same meaning as the term "improvement fee" as used in ORS 223.197 through 223.314. Qualified public improvements. A capital improvement that is: Required as a condition of development approval; Identified in the plan adopted pursuant to subsection 7.715(2); (b) and either development Not located on or contiguous to property fnat is the subject of approval (See subsection 7.730(1) for definition of "contiguous?'); or (d) 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 fbe is related. (See subsection 7.730(1) for definition of "contiguous,") Reimbursement fee. A fee for costs associated with capital improvements constructed or under construction on the date the fee is adopted pursuant to section 7.705. This term shall have the same meaning as the term %eimbursement fee" as used in ORS 223.197 through 223.314. Ordinance- 1 ~¥stems development charM A reimbursemem fee, an improvement fee or a combination thereof imposed or collected at any of the times specified in section 7.720. It shall also include that portion of a wastewater sewer or storm sewer connection charge that is greater than the amount necessary to reimburse the city for its average cost of inspecting and installing connections with wastewater sewer facilities and stonnwater sewer facilities. Section 2. Sections 7.705, 7.710, 7.715, 7.720~ 7.725, 7.730, and 7.735 of the Eugene Code, 1971, are amended as fbllows: 7.705 SDC - ~:stems Develop_n_ment Charge Established. (1) Unless otherwise exempted by the provisions of sections 7.700 to T740 or other local or state law~ effective July 1, 1991 a systems development charge is hereby imposed-upon all new- development within the city, and any structure inside or outside the boundary of the city that cormects to or otherwise uses the-wastewater sewer system or storm sewer system of the city. (2) Systems development charges for each type of capital improvement provided by the city may be created and shall be established by council resolution. When required by ~ntergovernmentat agreement authorized by council, a systems development charge fbr a capital improvement provided by another government shall be established by council resolution. 7.710 SDC - Methodologz. (1) The methodology used to establish or modify a reimbursement fee shall consider the cost of then-existing facilkies, prior contributions by then-ex/sting users, gifts or grants from federal or state governments or private persons, the value of'unused capacity available to future system users, rate-making principles employed to finance publicly owned capital improvements, amd other relevant factors identified by the council. The methodology shall promote the objective that future systems users shall contribute an equitable share of the cost of then-ex~sting facilkies. (2) The methodology used to establish or modify the public improvement charge shall consider the cost of projected capital improvements needed to increase the capacity of the systems to -which the fee is related and shall provide for a credit against the improvement fee for the construction of any qualified public improvement. (3) The methodology may also provide for a credit as authorized in subsection 7.730(5). (4) Except when authorized in the methodology as provided in subsection 7.7t0(3), the fees required by this code which are assessed or collected as part of a local knpro~ement district or a charge in lieu of a local improvement district assessment, or the cost of c~mplying with requirements or conditions imposed by a land use decision are separate from and h~ addition to the systems development charge and shall not be used as a credit aga/nst such charge. Nothing in this subsection shall prevent the collection ora system development charge in connection with a local improvement assessment or charge in lieu of a local improvement district assessment. (5) The methodologies for establishing the systems development charge shall be established by resolution of the council and may be adopted and amended concm-rent with the Ordinance - 2 estabtisl:nnent or revision of the systems development charge. A change in the amount of a reimbursement fee or an irr~provement fee is not a modification of the system development charge if the change in arnount ts based on the periodic application of an adopted specific cost index or on a modification to any of the factors related to rate that are incorporated in the established methodology. The city manager may adopt changes to such a cost index or rate factor by administrative order pursuant to section 2.020 of this code. 7.715 SDC - Compliance With State Law. (1) The revenues received from the systems developmem charges shall be budgeted and expended as provided by stme law. The accounting of such revenues and expenditures mqUked by state law shall be included in the city's Comprehensive Annual Financial Report required by' ORS chapter 294. (2) The capital improvement plan required by state law as the basis for expending systems development charge revenues for capital improvements shall be the Eugene Capital Irnprovemems P!an (CIP) and the Metropolitan Area General Plan as adopted by the council (Plan), other city faci!ifies plans-that may include SDC-eligible capital projects, or the capital improvemem plan adoptedby another governmental body which yeas used by the city manager in establishing the methodology for the systems development charge, provided such capital improvement plan is consistent with the CIP and the Plan. 7.720 SDC - Collection of Char~. (1) After adoption of the applicable methodology, a systems development charge is payable upon issuar~ce of: (a) A building permit; (b) A development permit fbr development not requiring the issuance of a building permit; or (c) A permit to connect to the water, wastewater sewer or stormwater sewer systems or in anticipation of the issuance of such a permit at the 'rime of levying a local improvement district assessment for wastewater sewer or stormwater sewer. (2) If development is commenced without an appropriate permit or connect/on is made to the water system, wastewater sewer system or stormwater sewer system without an appropriate permit, the systems development charge is immediately payable upon the earliest date that a permit was required. (3) The city manager or the manager's designee shall collect the systems development charges fi:om the permittee. The city manager or the manager's designee shall not issue any permit or allow connection described in subsection 7.720(1) until the charge has been paid in fhll or until provision for installment payments has been made witlhin the limits prescribed in subsection 7.190(2). (4) Except as provided in this subsection, the obligationto pay the unpaid systems development Charge and interest thereon shall be secured by a lien against the property upon which development is to occur, Such liens shall arise upon issuance of the permit requiring the system development charge and shall be entered on the city's lien docket and the debt secured thereby may Ordinance - 3 be collected in the same manner as allowed by law for street improvement assessment liens. In lieu of suchlien, upon application of the permittee the obligation to pay the -unpaid systems development charge and interest thereon may be secured by property, bond~ deposits, letter of credit or other security acceptable to the city manager or the manager's designee~ (5) When the obligation to pay the unpaid systems development charge is imposed at the time of ferrying a local improvement district assessment for wastewater sewer or of paying an equivalent assessment for wastewater sewer and the obligation is secured by a lien against the real property being developed, the person paying the systems development charge in installments may apply for deferral of the payments as provided in section 7.195. (6) Except as provided in this subsection, SDC fees paid are not refundable and, in the case of an agreement to pay SDCs in installmems~ the terms of the agreement may not be modified. A partial refund of SDC fees will be made or a modification of an installment agreement will be allowed when an active development permit ~s canceled or expires without being used, a change of design of an active development permit is approved that results ~n a less intense use of the property., or property previously developed as a manufactured home park is partitioned and redeveloped~ Noportion of the administrative fees will be refunded, and an additional administrative charge may be hnposed to cover the cost of calculating and processing the partial reftmd. 7.725 SDC ~ Exemptions. The following are exempt from the systems development charge imposed in section 7.705: (a) Except fbr the systems development charge attributable to the was~ewater sewer system ~d the stormwater sewer system, ali development which existed or for which the city had received a completed building permit application on or before June 30, 1991 or for which a building permk was issued before that date. (b) Any conducting of a building or mining operation~ or making of a physical change in the use or appearance of a structure or which does not increase the usage of any capital improvement or which does not creme the need for additional capital improvements. However~ the SDC methodology adopted under section 7.710 of this code may require that a proposed development be reviewed by the city in order to determine whether such an impact will be incurred. If this review occurs and it is determined that there will be no increased usage of any capkal improvements and no addkional capkal improvements will be needed~ then an administrative charge shall be imposed for this review. (c) Housing for low-income persons, subject to the follo~4ng limkations: (t) Commencing with the 1998 fiscal year, and continuing each fiscal year thereafter, the city manager or designee may waive a base amount totaling $115,000 annually of system development charges fbr housing for low-income persons. (2) Each fiscal year that there is a change in the rates for the sysmm development charges ~br residential development, the base ~ount for that fiscal year shall be adjusted in an amount proportionate to that change. (3) If any portion of the authorized base amount remains unallocated at the end of a fiscal year, that portion shall be added to the Ordinance - 4 authorized base amount for the next fiscal year. (4) In the event the property for which an exemption is granted ceases to be utilized for housing for low-income persons or is sold or transferred for use other than housing for low-income persons within five years from the date the certificate of exemption is recorded, the person to whom the exemption was granted shall be required to pay to the city the arrmunt of the exempted systems development charges, plus interest at the sr~utory rate for interest on a judgment from the date the certificate was recorded. (5) Upon issuance of the certificate of occupancy, the city shall record the certificate of exemption documenting the date and amount of the exemption with the Lane Co-unty Recorder's office. (6) A transfer from an owner to whom an exemption was granted to the initial lessee under a lease to purchase agreement shall not be deemed a transfer of ownership for purposes of this subsection. (7) The exemption anthorized herein does not include an exemption from the regional wastewater systems development charge~ (8) For purposes of this subsection (c), "low-incorne persons~ means: With regard to rental housing~ persons with an income at or below 60 percent of the area median income as determined by the State Housing Council based on information from the United States Department of Housing and Urban Development: and 2. With regard to home ownership housing and lease to purchase home ownership housing, persons with an income at or below 80 percent of the area median income as determined by the State Housing Council based on information f~om the United States Department of Housing and Urban Development. 7.730 SDC ~ Credits~ (1) As used in this section and in the definition of ~Qualified public improvements" in section 7.0 t 0 the word %ontiguous' means: in a public way which abuts. (2) When development occurs which does not change the-use of a building in its entirety and which must pay a system development charge under section 7.705 of this chapter~ the system development charge for the existing use(s) shall be calculated and if it is less than the system development charge fbr the proposed use(s), the difference shall be the system development charge~ If the change in use results in the system development charge for the proposed use being less than the system development charge fbr the existing use, no system development Charge shall be required; however, no reimbursement or credit shall be given and an administrative charge shall be imposed. (3) When development occurs that will change the use(s) of a building in its entirety and which mns~ pay a system development charge under section 7.705 and/or an administrative charge per the SDC methodology adopted under section 7.710 oft his chapter, the Ordinance - 5 system development charge fbr the previous most intense verifiable use per system (i.e. parks~ stormwater, transportation, wastewater) shall be calculated and if k is less than the system development charge for the proposed use, the difference shall be the system development charge. If the change in use resuks in the system development charge for the proposed use being less than the system development charge for the previous most intense verifiable use per system, no system development charge shall be required for that system; however, no reimbursement or credit shall be given and an administrative charge shall be imposed. (4) A credit shall be given for the cost of a qualified public improvement associated with a development. The credit provided fbr by this subsection shall apply only to the improvement fee imposed ~br the type of improvement being constructed~ and shall not exceed the improvement fee even if the cost of the cap/tal improvement exceeds the applicable ~mprovement fee~ Credit may be granted only for the cost of that portion of such improvement that exceeds the government unit's minimum standard facility size or the capacity needed to serve the particular development project or property. (5) The methodology may provide for a credit against the public improvement fee~ the reimbursement fee, or both, for a capital improvement constructed as part of the development that reduces the development% demand upon existing capital improvemems or the need fbr future capital improvements or that would other,vise have to be constructed at city expense under the then- existing council policies. (6) Except to the extent that a capital improvement for which a credit ~s given is part of the phasing of a larger project and that the credit received against the systems development charge is greater than the charge for the phase where the capital improvement is constructed~ credit shall not be transferable from one development m another. (7) Credk shall not be transferable from one type of capital ~mprovement ro another. 7.735 SDC - ARpeal Procedures. (1) As used in this section "working day~ means a day when the general ofrices of the city are open to transact business with the public. (2) A person aggrieved by a decision required or permitted to be made by the city manager or the manager's designee under sections 7.700 to 7.730 or a person challenging the propriety of an expenditure of systems developrnent charge revenues may appeal the decision or the expenditure by filing w~th the city managers or, ce a written request for consideration by the hearings officer and by paying the fee for an appeal established under section 2.020 of this code. Such appeal shall describe with particularity the decision or the expenditure from which the person appeals and shall comply with subsection (4) of this section. (3) An appeal of an expenditure must be filed within two years of the date of alleged improper expenditure. Appeals of any other decision must be filed within 15 working days of the date of the decision. (4) The appeal shall state: (a) The name and address of the appellant; (b) The nature of the determination being appealed; (c) The reason the determination is incorrect; and Ordinance - 6 (d) What the correct determination of the appeal should be or how the correct determination should be derived. An appellant who fails to file such a statement wkhin the time pe-rmitted waives his/her objections~ and his/her appeal shall be dismissed. (5) Unless the appellant and the city agree to a longer period~ an appeal shall be heard by a hearings officer within 15 working days of the receipt of the notice of intent to appeal. At least ten working days prior to the hearing, the city shall mail notice of the finite and Ir>cation thereof to the appellant. (6) The hearings officer shall hear and determine the appeal on the basis of the appellant's -written statement and any additional evidence he/she deems appropriate. At the hearing the appellant may present testimony and oral argument personally or by counsel. The rules of evidence as used by courts of law do not apply. (7) The appellant shall carry the burden of proving that the determination being appealed is incorrect and ,;vhat the correct determination should be or how a correct determination should be derived, (8) The hearings officer shall issue a written decision within ten working days after the hearing date and the decision of the hearings officer shall be final~ Section 3~ The Cit)' Recorder, atthe request of, or with the concurrence of the City Attorney, is authorized to administratively' correct any reference errors contained herein or in other provisions of the Eugene Code~ 1971, to the provisions added~ amended or repealed herein. Passed by the City Council this 8¢~ day of April, 2002 ~ Ci~tvR~clrder~ ~/ Approved by the Mayor this 8th day of April, 2002 Mayor Ordinance ~ 7