Chapter 15.30
SYSTEMS DEVELOPMENT CHARGES
Sections:
Article I. Water and Sewer Systems
15.30.040 Systems development charge established.
15.30.050 Compliance with state law.
15.30.060 Collection of charge.
15.30.100 Prohibited connection.
Article II. Storm Drainage
15.30.120 System development charge.
15.30.130 Charges placed in fund.
Article I. Water and Sewer Systems
15.30.010 Definitions.
As used in this article, except where the context otherwise requires, the words and phrases have the following meaning:
A. “Capital improvement(s)” means facilities or assets used for any of the following services:
1. Water supply, storage, treatment and distribution; or
2. Sanitary sewers, including collection and transmission, treatment and disposal; or
3. Parks and open spaces land and facilities; or
4. Road and transportation facilities.
B. “Development” means the act of conducting a building or mining operation, or making a physical change in the use or appearance of a structure or land, which increases the usage of any capital improvements or which creates the need for additional capital improvements.
C. “Improvement fee” means a fee for costs associated with capital improvements to be constructed after the date the ordinance codified in this article becomes effective.
D. “Land area” means the area of a parcel of land where applicable shall be as measured by projection of the parcel boundaries upon horizontal plane with the exception of a portion of the parcel within a recorded right-of-way or easement subject to a servitude for a public street or scenic or preservation purpose.
E. “Owner” means the legal owner of record as shown on the assessment and taxation records of Multnomah County, or where there is a recorded land sales contract in force, the purchaser thereunder.
F. “Parcel of land” means a lot, parcel, block or other tract of land that is occupied or may be occupied by a structure or structures or another use, which may include the yard and/or other open spaces required under applicable zoning regulations or other pertinent redevelopment ordinances.
G. “PM peak hour” means the hour with the highest traffic generation in the PM peak period from 4:00 p.m. to 6:00 p.m.
H. “Qualified public improvements” means a capital improvement that is:
1. Required as a condition of development approval;
2. Identified in the Capital Improvement Plan adopted pursuant to subsection 7.715(2); and
3. Not located on or contiguous to a parcel of land that is the subject of the development approval. As used in this definition, “contiguous” means in a public way which abuts.
I. “Reimbursement fee” means a fee for costs associated with capital improvements constructed or under construction on the effective date of the ordinance codified in this article.
J. “Systems development charge” means a reimbursement fee, an improvement fee or a combination thereof assessed or collected at any of the times specified in FMC 15.30.060. It shall also include that portion of a water or sanitary sewer connection charge that is greater than the amount necessary to reimburse the city for its average costs of inspecting and installing connections with the water system or the sanitary sewer system. “Systems development charge” does not include:
1. Any fees assessed or collected as part of a local improvement district;
2. A charge in lieu of a local improvement district assessment; or
3. The cost of complying with requirements or conditions imposed upon a land use decision.
K. “Transportation facilities and assets” means public transportation system facilities, roads and other assets of the transportation system which are capacity related. (Ord. 7-1994 § 1; Ord. 4-1994 § 1; Ord. 8-1991 § 2)
15.30.020 Purpose.
The purpose of the systems development charge is to impose a portion of the public cost of capital improvements upon those developments that create the need for or increase the demands on capital improvements; provided, that system development charges for transportation shall be limited to improvement fees only. (Ord. 7-1994 § 1; Ord. 4-1994 § 1; Ord. 8-1991 § 3)
15.30.030 Scope.
The systems development charge imposed by this article is separate from and in addition to any applicable tax, assessment, charge, fee in lieu of assessment, or fee otherwise provided by law or imposed as a condition of development. A systems development charge is to be considered in the nature of a charge for service to be rendered or a service hookup charge. (Ord. 8-1991 § 4)
15.30.040 Systems development charge established.
A. Unless otherwise exempted by the provisions of this article or other local or state law, a systems development charge is hereby imposed effective June 15, 1991, upon all development within the city, and all development outside the boundary of the city that connects to or otherwise uses the water or sanitary sewer systems of the city.
B. When the council determines to establish a systems development charge for any capital improvement or include the same in the city’s system development charge program it shall do so by council resolution. (Ord. 8-1991 § 5)
15.30.050 Compliance with state law.
A. Revenues received from the systems development charges shall be deposited to the appropriate water or sewer capital improvement fund and be budgeted and expended as provided by state law. The accounting of such revenues and expenditures required by state law shall be included in the city’s annual financial audit required by ORS Chapter 294.
B. The capital improvement plan required by state law as the basis for expending revenues from the improvement fee of the systems development charge shall be the Fairview Capital Improvement Plan or as adopted by resolution(s) provided in FMC 15.30.040(B). (Ord. 4-1994 § 1; Ord. 8-1991 § 6)
15.30.060 Collection of charge.
A. The systems development charge is payable upon issuance of a permit to connect to the water or sanitary sewer systems.
B. If development is commenced or connection is made to the water system or sanitary sewer system without an appropriate permit, the systems development charge is immediately payable upon the earliest date that a permit was required.
C. The city shall collect the systems development charges from the person responsible for or receiving the benefit of the development. The city shall not issue any permit or allow connection described in appropriate ordinances until the charge has been paid in full or until provision for installment payments has been made within the limits prescribed.
D. The obligation to pay the unpaid systems development charge and interest thereon shall be secured. Acceptable security to insure payment includes: property, bond, deposits, letter of credit or the obliger may request a lien be placed against the property to be developed. (Ord. 8-1991 § 7)
15.30.070 Exemptions.
The following are exempt from the systems development charge imposed in FMC 15.30.040:
A. All applications to connect to the water or sanitary sewer system received by June 15, 1991. (Ord. 8-1991 § 8)
15.30.080 Credits.
A. When a development occurs that must pay a system development charge under FMC 15.30.040, the system development charge for the existing use shall be calculated and if it is less than the system development charge for the proposed use, the difference between the system development charge for the existing use and the system development charge for the proposed use shall be the system development charge required under FMC 15.30.040. If the change in use results in the system development charge for the proposed use being less than the system development charge for the existing use, no system development charge shall be required, however, no refund or credit shall be given.
B. The limitations on the use of credits contained in this subsection shall not apply when credits are given under subsection C of this section. A credit shall be given for the cost of a qualified public improvement associated with a development. If a qualified public improvement is located partially on and partially off the parcel of land that is the subject of the approval, the credit shall be given only for the cost of the portion of the improvement not located on or wholly contiguous to the parcel of land. The credit provided for by this subsection shall be only for the improvement fee charged for the type of improvement being constructed and shall not exceed the improvement fee even if the cost of the capital improvement exceeds the applicable improvement fee.
C. When establishing the methodology, the council shall provide for a credit against the improvement fee, the reimbursement fee, or both, for a capital improvement constructed as part of a development that reduces the development’s demand upon existing public capital improvements or the need for future public capital improvements or that would otherwise have to be constructed at city expense under the then-existing council policies.
D. Credit shall not be transferable from one type of capital improvements to another. (Ord. 8-1991 § 9)
15.30.090 Appeal procedures.
A. A person aggrieved by a decision made by the city under FMC 15.30.040 through 15.30.080 or a person challenging the propriety of an expenditure of systems development charge revenues may appeal the decision or the expenditure by filing a written request with the city recorder for consideration by the Fairview city council. Such appeal shall describe with particularity the decision or the expenditure from which the person appeals and shall comply with subsection C of this section.
B. 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 days of the date of the decision.
C. The appeal shall state:
1. The name and address of the appellant;
2. The nature of the determination being appealed;
3. The reasons the determination is incorrect; and
4. What the correct determination of the appeal should be.
An appeal which does not meet the above criteria or is not filed within the time set forth herein shall not be processed or heard.
D. Unless the appellant and the city agree to a longer period, an appeal filed hereunder shall be heard within 30 days of the receipt of the notice of intent to appeal. At least seven days prior to the hearing, the city shall mail notice of the time and location thereof to the appellant.
E. The Fairview city council shall hear and determine the appeal on the basis of the appellant’s written statement and any additional evidence the council deems appropriate. At the hearing the appellant may present testimony and oral argument personally or by counsel.
F. The appellant shall carry the burden of proving that the determination being appealed is incorrect and what the correct determination should be.
G. The city council shall issue a written decision within 20 days after the hearing date and that decision shall be final. (Ord. 8-1991 § 10)
15.30.100 Prohibited connection.
No person may connect to the city’s water, sanitary sewer or storm sewer system unless the appropriate systems development charges, if any, have been paid. (Ord. 8-1991 § 11)
Article II. Storm Drainage
15.30.110 Fund created.
A fund for the accumulation of monies required for the development and construction of capacity-increasing storm drainage improvements within the urban planning area of the city of Fairview, is hereby created, to be called the “city of Fairview storm water improvement fund”. (Ord. 9-1993 § 1)
15.30.120 System development charge.
Hereafter, all applicants for a building permit for new construction within the city of Fairview will be required to pay a fee, which shall be in addition to all other fees related to a new development, to be assessed and paid at the time of application to the city for a building permit, which shall be known as a “system development charge.” The methodology and rate for determining the amount of the “system development charge” shall be established by resolution of the council. (Ord. 2-1999 § 1; Ord. 9-1993 § 2)
15.30.130 Charges placed in fund.
All system development charges collected under the provisions of this article shall be placed in the city of Fairview storm water improvement fund here created, to be used to finance and defray the costs of capacity-increasing improvements to the Fairview storm drainage system. Sums in said fund are to be expended only upon appropriate council resolution. (Ord. 9-1993 § 3)