HomeMy WebLinkAboutAdmin Order 53-98-03-F
ADMINISTRATIVE ORDER NO. 53-98-03-F
of the City Manager Pro Tern of the City of Eugene
ADOPTING TEMPORARY WEST UNIVERSITY SERVICES
DISTRICT OCCUPANCY FEE ADMINISTRATIVE
RULE R-3.655(2), AS A PERMANENT RULE AND
REPEAL OF ADMINISTRATIVE ORDER NO. 53-97-07.
The City Manager Pro Tern of the City of Eugene finds as follows:
A. Pursuant to the authority of Sections 2.019(5) and 3.655 of the Eugene Code, 1971,
on October 24, 1997, the City Manager issued Administrative Order No. 53-97-07 adopting
Temporary West University Services District Occupancy Fee Administrative Rule R-3.655(2).
B. On March 17, 1998, the City Manager issued Administrative Order No. 53-98-03,
proposing adoption of Temporary West University Services District Occupancy Fee Administrative
Rule R-3.655(2), as a Permanent Rule.
C. Notice was provided to the Mayor and City Councilors, published in the Register-
Guard, a newspaper of general circulation within the City, for at least five consecutive days, to-wit,
on March 29, 30, 31, April 1 and 2, 1998, posted at two locations at City Hall and made available
for inspection by interested persons at the office of the Planning and Development Department, 99
West 10th, Suite 240, Eugene, Oregon, during normal business hours (9:00 a.m. to 5:00 p.m.,
Monday through Friday, exclusive of holidays).
D. The notice provided that interested persons could submit written comments thereon
for a period of 15 days from the first date of publication and posting. No written comments were
received within the time and manner required by the notice.
E. I find it is in the public interest and necessary to ensure the continued implementation
of adopted Code provisions that the Rule be adopted as a permanent rule.
On the basis of these findings, I order that the West University Services District Occupancy
Fee Administrative Rule R-3.655(2) be adopted as a permanent rule to provide:
West University Services District Occupancy Fee
Rule R-3.655(2)
R-3.655(2)-A
Definitions.
As used herein, the following words and phrases mean:
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City Manager. The City Manager of the City of Eugene, the City Manager's
designee, and, except for the promulgation of rules, establishment of fees, or decisions
regarding the imposition of fees or penalties, any entity with which the City contracts for
administration and enforcement of Sections 3.650 to 3.680 of the Eugene Code, 1971.
West University Services District (WUSD). That West University area of the city
of Eugene as established and defined in Section 3.650(2)(b) of the Eugene Code, 1971,
described as the commercial property on 13th Avenue between Kincaid Street and Ferry
Street plus the adjacent commercial property on Alder Street and Hilyard Street between 13th
Avenue and the alley south of 13th Avenue, excepting therefrom the north side of 13th
Avenue from Ferry Street to Hilyard Street, as depicted on the map attached as Exhibit A
hereto.
Exempt (26 USC 501(c)(3)) Organization. Corporations, and any community chest,
fund, or foundation, organized and operated exclusively for religious, charitable, scientific,
testing for public safety, literary, or educational purposes, or for the prevention of cruelty to
children or animals, no part of the net earnings of which inures to the benefit of any private
shareholder or individual, no substantial part of the activities of which is carrying on
propaganda, or otherwise attempting, to influence legislation, and which does not participate
in, or intervene in (including the publishing or distributing of statements), any political
campaign on behalf of any candidate for public office.
Occupied Space. That portion of a building within the WUSD that is occupied or
leased for non-exempt purposes. "Occupied space" specifically includes, but is not limited
to, portions of a building used for commercial or other office space, or storage space, non-
exempt rooms or units of buildings, hotels and motels within the WUSD that are occupied
for overnight lodging, and portions of buildings, hotels and motels that are used for retail or
food/drink activities.
Property Owner. The owner of record as reflected on the records of the Lane
County Assessor's office, or such other person or entity authorized in writing to act on behalf
of the property owner.
Residential Purposes. A building or portion thereof occupied or offered for
occupancy as a permanent place of residence, with kitchen, bath and other necessary
amenities.
R-3.655(2)-B
Occupancy Report Form Packet.
On or before October 1, 1997, an occupancy report form packet shall be distributed to all
property owners within the WUSD. The packet shall include:
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(a) An occupancy report form, which shall include instructions for completion
of the occupancy report form, information on what constitutes "occupied space," "residential
use," and" exempt property," and how to compute the occupancy fee;
(b) A request for extension of time form;
(c) A certificate of exemption application form;
( d) The amount of the occupancy fee per square foot, and, the rate per room and
per square foot, as applicable, for buildings, hotels and motels utilized for non-exempt
overnight lodging;
( e ) Information on the potential penalties for failure to file the report form or pay
applicable fees, and for filing fraudulent reports;
(t) Information on the procedure for requesting hearings or appealing
determinations; and
(g) The telephone number, address, and person( s) to contact for assistance to
complete the formes) or to respond to questions.
The forms shall indicate the date by which each must be filed, when the occupancy fee must be paid,
and the address to which the appropriate formes) and/or the fee is to be mailed or delivered.
R-3.655(2)-C
Registration Procedures.
1. Application. On or before the 10th day of each October, January, April, and July,
commencing October 10, 1997 and continuing until July 10, 2000 unless the requirement to pay a
WUSD occupancy fee is discontinued or extended, each owner of property within the WUSD shall
file:
1.1 Occupied Space. An occupancy fee report form detailing the square footage
of the owner's building; the square footage of space occupied or used for non-exempt
purposes (if applicable); the square footage of the building which is not occupied (if
applicable); or
1.2 Non-exempt Overnight Lodging Facilities. An occupancy fee report form
reflecting the daily average of occupied rooms during the immediately preceding quarter,
for non-exempt building, together with the square footage of any portion of the premises
used for the purposes of retail or food/drink service activities; or
1.3 Certificate of Exemption. An application for a certificate of exemption from
the occupancy fee; or
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1.4 Request for Extension of Time. A request for an extension of time within
which to file the report form and to pay the required fee.
2. Payment of Fee. The occupancy fee report form shall be accompanied by the
quarterly fee that is the sum of the fees applicable to property under subsections 2.1 through 2.2 of
this section:
2.1 $0.04 per square foot per month, up to a maximum of $400.00 per property
per month; and
2.2 $7.50 per occupied room per month in a non-exempt building, hotel or motel
per quarter, based on the daily average of occupied rooms during the immediately preceding
quarter, together with the applicable fee per square foot for any portion of the non-exempt
building, hotel or motel used for the purpose of retail or food/drink service activities.
3. Review of Applications. The initial review of applications authorized or required
under Paragraph 1 of this Section shall be governed by the procedures set forth in this Paragraph 3.
3.1 Review and Recommendation. Upon receipt of an application the City
Manager, or such designee of the City Manager as may be indicated on the application form,
shall:
3.1.1 Review occupancy fee report forms for accuracy of the information
provided, including, but not limited to the computation of the square feet subject to
the occupancy fee and/or portions claimed exempt; or
3.1.2 Recommend the approval or denial of requests for extensions of time;
or
3.1.3 Recommend the approval or denial of requests for exemption.
3.2 Incomplete Reports. If an occupancy fee report form is incomplete or does
not contain accurate computations of the square feet or accurate computations of the
occupancy fee, the applicant shall be so advised and requested to supply additional
information or correct the calculation within the time specified in the notice. If compliance
with this request results in the late payment or late filing of an otherwise timely filed
occupancy fee report form, the imposition of late fees, interest, or penalties may be waived
pursuant to 3.6 of this Section, based on the criteria set forth therein.
3.3 Submission of Recommendations. Recommendations under this subsection
shall be made to the City's Planning & Development Department (PDD) Development
Division Manager, or designee, and a copy delivered to the applicant, within five business
days of receipt of an application. A recommendation that a request for extension of time or
Administrative Order - 4
a request for exemption be denied, or that the computations on an occupancy fee report form
be changed, shall set forth with particularity the reasons upon which the recommendation is
based. An applicant who disagrees with the recommendation may, within five business days
of receipt of the recommendation, request a review thereof by the PDD Development
Division Manager or designee pursuant to subparagraph 3.6 of this subsection. The request
for review shall set forth with particularity wherein the recommendation is in error, and any
documentation supporting the applicant's position.
3.4 Extension and Exemption Approval. Upon receipt of a recommendation that
a request for extension of time or request for exemption be approved, the PDD Development
Division Manager or designee shall review the application and the recommendation, and
upon concurring therewith, grant the extension or exemption, and cause notice thereof to be
provided to the applicant.
3.5 Extension. Exemption. Computation Denial. Upon receipt of a
recommendation that a request for extension of time or request for exemption be denied, or
a recommendation that the computations set forth in an occupancy fee report form be
changed, and no request for review having been filed by the applicant, the PDD Development
Division Manager or designee shall review the application and recommendation, and may
approve or deny the request for extension or exemption, or direct that the occupancy fee
report form be approved as filed or corrected as recommended, and cause notice of the
decision to be provided to the applicant.
3.6 Review by PDD Development Division Manager. A request for review shall
be considered, and a decision issued thereon by the PDD Development Division Manager
or designee within five business days of receipt of the request. A decision hereunder may
address, but need not be limited to:
3.6.1 The accuracy of the computations of square feet;
3.6.2 The accuracy of the computation of occupied space;
3.6.3 The accuracy of the occupancy rate and computations of other space
occupied for retail or food drink service activities for non-exempt buildings, hotels
and motels;
3.6.4 Allocations of exempt areas;
3.6.5 Errors in computation;
3.6.6 Determinations of correct district designations;
3.6.7 Determinations relating to incomplete filings.
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The decision shall be based upon the application, recommendation, request for review, and
any supporting documents or evidence submitted with the request for review. Upon finding
that the errors in the occupancy fee report form as initially submitted were due to the property
owner's lack of information or misinterpretation of applicable provisions, and that there was
no intent to submit a fraudulent or false report, the decision issued hereunder may waive the
imposition of any interest, penalties or other charges.
3.7 A decision of the PDD Development Division Manager or designee issued
under this subsection may be appealed pursuant to R-3.655(2)-G by the applicant, or a person
financially interested in the determination.
4. Additional Charges for Late Filing. A property owner who has not been issued a
certificate of exemption pursuant to R-3.655(2)-E and who fails to file the occupancy report form
or pay the required fees by the 10th day of the first month of each quarter (October, January, April,
July), or by the due date established in an extension of time granted by the City Manager, shall incur
additional charges for interest, late fees and penalties, as set forth in R-3.655(2)-F of this Rule.
Reports and payments shall be considered timely submitted if personally delivered to the address
indicated on the occupancy fee report form on or before the due date, or postmarked on or before the
due date.
R-3.655(2)-D
Records to be Maintained.
1. Required Records. Owners of property within the WUSD shall maintain accurate
records that reflect the total square feet in the owner's building, the portion thereof that is "occupied
space," and the portion thereof that is occupied for residential purposes or is otherwise exempt
pursuant to R-3.655(2)-E-2 of this Rule. The records maintained by a non-exempt building, hotel
or motel within the WUSD shall document the occupancy of rooms, the square footage of space used
for retail or food/drink service activities, and space occupied as meeting or conference rooms. The
records required to be maintained under this subsection shall be retained throughout the period that
an occupancy fee is imposed within the WUSD, and for a period of three years after the termination
thereof.
2. Inspection of Records. Upon request of the City Manager, a property owner shall
make the records available for inspection by the City Manager during regular office hours for
purposes of determining the accuracy of the occupancy fee reports and compliance with Sections
3.650 to 3.680 of the Eugene Code, 1971, and these rules.
R-3.655(2)-E
Extension or Exemption Applications.
1. Extension. Upon finding good cause exists why an owner cannot timely file an
occupancy fee report form or pay the required fee, the City Manager may grant an extension of time,
not to exceed thirty (30) days, in which to do so. No extension shall be granted unless the
application for extension is filed and received by the City Manager prior to the date the report and
Administrative Order - 6
occupancy fee is due. Interest shall accrue from the first day of the quarter at the rate of one and one-
half percent (1-1/2%) per month on the amount of fee due, without proration for a fraction of a
month. Failure to file the report form and pay the occupancy fee and interest by the end of the
extended time will subject the owner to the imposition of a penalty computed on the basis of the
amount of the fee plus accrued interest.
2. Exemption. The City Manager shall grant a certificate of exemption from the
occupancy fee for all or a portion of a building located within the WUSD upon receipt from the
owner of an application that substantiates:
(a) The building is publicly owned and occupied by a public agency (any portion
of a publicly owned building that is occupied by a commercial tenant will be subject to the
occupancy fee); or
(b) All or a portion of the building is owned by a non-profit corporation and it is
used for overnight lodging purposes; or
(c) All or a portion of the building is occupied for residential purposes; or
(d) The portion of the building that comprises the basement (the portion of the
building that is both below ground level and below the main entryway to the building).
During the exemption period, the property owner must notify the City Manager of any change in
ownership, occupancy, or use of the building within thirty (30) days of the date of such change. In
the event the change results in any portion of the previously exempt property no longer qualifying
for the exemption, the property owner must file an occupancy fee report form and pay the occupancy
fee within ten days from the date notice is provided to the City. Failure to do so may result in the
imposition of penalties as set forth in R-3.655(2)-F of this Rule.
R-3.655(2)-F
Interest and Penalties.
1. Interest. Interest at the rate of one and one-half percent (1-1/2%) per month from
the first day of the quarter to the date paid shall be imposed on payments received after the due date
(10th) and on payments received from owners to whom an extension of time was granted, with no
proration for a fraction of a month. No interest shall be imposed if payments are received by the due
date (1 Oth).
2. Penalties. An owner of property within the WUSD who fails to comply with the
provisions of Sections 3.650 to 3.680 of the Eugene Code, 1971, or these rules will be subject to the
imposition of the following penalties:
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(a) A late penalty of an additional ten percent (l 0%) of the total fee plus interest
shall be imposed for failure to pay the occupancy fee by the due date, or, if an extension of
time has been granted, failure to pay the fee by the extended date;
(b) A penalty in the amount of fifteen percent (15%) of the actual amount due
during a quarter shall be imposed for failure to correct an underestimated payment prior to
the end of the quarter;
( c ) In addition to any other penalties or interest imposed, the City Manager may
impose an administrative civil penalty pursuant to Section 2.018 of the Eugene Code, 1971,
for failure to file required reports, failure to pay the required occupancy fee, repeated
uncorrected estimated occupancy fee payments, for filing a fraudulent occupancy fee report,
or for failure to comply with the change of ownership or occupancy notice requirements as
set forth in R-3.655(2)-E-2;
(d) In addition to any other penalties or interest imposed, a penalty of twenty-five
percent (25%) of the amount of fee due for the quarter shall be imposed upon a determination
by the City Manager that the nonpayment of an occupancy fee for that quarter was due to
fraud or intent to evade the payment requirements;
(e) A person who fails or refuses to comply with a determination of the City
Manager made pursuant to Section 3.670 of the Eugene Code, 1971, or to petition for
reconsideration of that determination within ten days after receipt of the notice, may be
subjected to an additional penalty of $50.00 per day for each day thereafter that the amount
remains unpaid.
3. Waiver of Interest and Late Penalties. With respect to the first quarter of each
fiscal year, no interest or penalties for late filing shall be imposed against a property owner who files
the required reports and pays the required fees by November 10 of each fiscal year.
R-3.655(2)-G
Appeals.
1. Initial Review Decisions. A decision of the PDD Development Division Manager
or designee issued pursuant to R-3.655(2)-C-3 of this Rule may be appealed to a hearings official
pursuant to Section 2.021 of the Eugene Code, 1971. The appeal must be filed with the City
Manager within ten days from the date of the decision, accompanied by any required appeal fee.
2. Imposition of Fees and Penalties. A person against whom a determination of the
City Manager is made imposing an occupancy fee, penalties, and/or interest based on fraud, intent
to evade, or failure or refusal of the person to pay the required occupancy fee, or a person financially
interested in that determination, may, within ten days from the date the notice is received, petition
the City Manager for a review of the determination. The petition must be accompanied by the
amount declared due under the notice from the City Manager, together with a hearing fee as
Administrative Order - 8
established by the City Manager under Section 2.020 of the Eugene Code, 1971. The review of the
determination shall be heard and considered by a hearings official pursuant to Section 2.021 of the
Eugene Code, 1971, and the decision of the hearings official is final. A determination based on
fraud, intent to evade, or failure or refusal of a person to pay the required occupancy fee may be
made and notice thereof mailed within three years of the date the City Manager discovers the fraud,
intent to evade, or failure or refusal to pay the occupancy fee.
The Temporary West University Services District Occupancy Fee Administrative Rule
R-53-97-07 adopted on October 24, 1997, shall be repealed as of the effective date of this Rule.
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Dated and effective this ~ day of May, 1998.
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James R. Johnson, City Manager Pro Tem (}'f
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Administrative Order - 9
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