Chapter 3.08 LOCAL IMPROVEMENTS DISTRICTS

Editor’s note— Section 1 of Ord. No. 924, passed May 17, 2010, renamed Chapter 3.08, Special Assessments, as adopted by Ord. No. 548, to read as herein set out.

3.08.010 Definitions.

As used in this chapter, except where the context clearly indicates a different meaning, "local improvement," "owner" and "lot" have the meanings given those terms by ORS 223.387, as now or hereafter constituted, and the property which is to be assessed for the cost or part of the cost of a local improvement and the property on which the local improvement is located shall be known together as a "local improvement district."

(Ord. 548 §1, 1982)

3.08.020 Initiation of local improvements--Resolution of intention.

A. Whenever the council in its discretion shall deem it necessary to make any local improvement to be paid for in whole or in part by special assessment according to benefits conferred, or whenever fifty percent of the owners of the fifty percent of the property to benefit specially from the local improvement shall by written petition request the council to make a local improvement, the council by resolution may declare its intention to make the local improvement.

B. The improvement resolution shall describe the general nature, location and extent of the proposed local improvement and of the proposed local improvement district, declare the council’s intention to make the improvement, indicate the method and manner of carrying out the improvement, contain an estimate of the probable total cost of the improvement, indicate the method of assessment to be used to arrive at a fair apportionment of the whole or any portion of the cost of the improvement, and direct that notice be given of the proposed improvement and of the public hearing.

C. The improvement resolution may include alternative proposals relating to a proposed local improvement; provided, however, that all of the information required for a particular local improvement shall be included for each alternative proposal.

(Ord. 548 §2, 1982)

3.08.030 Notice of hearing.

A. After adoption of the improvement resolution, the city recorder shall cause notice of the proposed improvement and of the public hearing to be given by one publication not less than ten days prior to the public hearing in a newspaper of general circulation within the city and by mailing copies of the notice by registered or certified mail to the owner of a lot affected by the proposed improvement.

B. The notice shall contain:

1. A general description of the proposed local improvement and the property to be specially benefited thereby. The description of property need not be by metes and bounds but shall be such that an average person can determine from it the general location of the property;

2. An estimate of the total cost of the improvement and the portion anticipated to be paid for by special assessments;

3. The date, time and place of the public hearing;

4. A statement of a place where preliminary project design and other additional information concerning the improvement is available to the public;

5. Any other information the council may direct to be included.

C. Any mistake, error, omission or failure with respect to the mailing of notice shall not be jurisdictional or invalidate the local improvement proceedings.

(Ord. 548 §3, 1982)

3.08.040 Hearing.

A. At the time of the public hearing, the council shall hear and consider testimony, both oral and written, on the proposed local improvement and may continue the hearing as it deems necessary. After such hearing the council may, in its discretion, order the improvement to be made. If the council elects to order such improvement, it shall within ninety days after the date of the hearing, provide by ordinance for the establishment of the local improvement district and the construction of the improvement.

B. Notwithstanding the fact that the proposed improvement was petitioned for by one-half of the benefited property owners, the council may refuse to proceed with the improvements if it finds the proposed improvements to be untimely or not in the best interests of the city.

C. At the public hearing, the council may direct a modification of the proposed local improvement by revising the scope of the improvement, by reducing or enlarging the local improvement district which it deems will be benefited by the improvement, or make such other modifications in the proceedings as it finds reasonable. If the council modifies the scope of the improvement so that assessment is likely to be increased upon one or more lots, or, if the council enlarges the local improvement district or if the council causes a substantial change in any of the particulars contained in the improvement resolution, a new improvement resolution shall be adopted, new estimates made and new notices mailed to the owners within the proposed local improvement district. However, no new publication shall be required.

(Ord. 548 §4, 1982)

3.08.050 Alternative procedure for initiating 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.

(Ord. 548 §5, 1982)

3.08.060 Creation of local improvement district.

The council by ordinance shall provide for the establishment of the local improvement district and the making of the local improvement in substantial conformity with the proposal set forth in the initiating resolution.

(Ord. 548 §6, 1982)

3.08.070 Work--Contracting--Acceptance.

Local improvements may be made in whole or in part by the city, another governmental agency, by contract, or by any combination thereof. The city council, on behalf of the city, shall determine the engineer for all work to be accepted by the city for public maintenance.

(Ord. 548 §7, 1982)

3.08.080 Improvement construction--Bids.

A. Immediately after the effective date of the ordinance establishing the local improvement district, the engineer for the city shall cause necessary right-of-way and easements to be acquired and the improvements to be made in accordance with the terms of the ordinance 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 published in a newspaper of general circulation within the city not less than five days prior to the opening of bids.

B. Contracts for all or part of the work of the local improvement may be let by the council to the lowest responsible bidder whose bid is in the best interests of the city as determined in the sole discretion of the council. The council shall have the right to reject any or all bids when they are deemed unreasonable or unsatisfactory in the council’s discretion. If the council rejects all bids, it may direct the engineer for the city to readvertise for bids or direct the work to be performed by city forces. The city shall provide for bonding of all contracts for the faithful performance of any contract let under its authority, and the provisions thereof in case of default shall be enforced by action in the name of the city.

C. If the council finds upon opening bids for the work of such improvement, that the bid in the best interest of the city is substantially in excess of the engineer’s estimate, it may, in its discretion, provide for holding a special hearing to consider objections to proceeding with the improvement on the basis of such bid.

(Ord. 548 §8, 1982)

3.08.090 Costs and expenses.

The costs and expenses of local improvements which may be assessed against the property specially benefited by the improvement shall include the cost of construction and installation of the improvement; advertising, legal, administrative, engineering and assessment costs; financing costs, including interest charges; the cost of any necessary property, right-of-way or easement acquisition and condemnation proceedings; and any other necessary expenses.

(Ord. 548 §9, 1982)

3.08.100 Assessment--Alternative financing.

A. The council in adopting a method of assessment of the costs of any local improvement may:

1. Use any just and reasonable method of determining the extent of the local improvement district consistent with the benefits derived;

2. Use any method of apportioning the sum to be assessed as is just and reasonable between the properties determined to be specially benefited;

3. Authorize payment by the city of all or any part of the costs of a local improvement when in the opinion of the council the topographical or physical conditions, or unusual or excess public travel or use, or other character of the work involved warrants only a partial payment or no payment by the benefited property of the costs of the local improvement.

B. Nothing contained in this chapter shall preclude the council from using any other available means of financing local improvements, including federal or state grants-in-aid, water or sewer fees or charges, revenue or general obligation bonds, or any other legal means of financing. If such other means of financing local improvements are used, the council may, in its discretion, levy special assessments according to the benefits derived to cover any remaining part of the costs of the local improvement.

(Ord. 548 §10, 1982)

3.08.110 Assessment--Procedure.

A. When the estimated cost of an authorized local improvement has been ascertained on the basis of the estimate of costs of the engineer for the city, the award of a contract or any other basis acceptable to the council, or after the work has been completed and the actual cost thereof has been determined, 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, and shall file it in the office of the city recorder and shall submit it to the council. Such submission may be in the form of a proposed resolution.

B. Upon the receipt of the proposed assessments the council shall, after any modifications, adopt a resolution directing notice of such proposed assessments to be mailed or personally delivered to the owners or reputed owners of the lots proposed to be assessed containing the following information:

1. The name of the owner or reputed owner, the description of the property assessed, the total estimated or actual project cost assessed against benefited property and the amount of the assessment against the described property.

2. A date and time by which written objections to the proposed assessment stating specifically the ground for objection must be received and the date, place and time of a public hearing at which time the council will consider any objections.

3. A statement that the assessment in the notice or as it may be modified by the council will be levied by the council after the hearing and that thereafter will be charged against the property and be immediately payable in full or in installments if applicable.

C. Supplementary notice of the proposed assessment and public hearing thereon in form and content to be determined by the city recorder may also be published or posted by the city recorder.

D. The council shall hold the public hearing on the proposed assessments to consider those objections filed in writing and may adopt, correct, modify or revise the proposed assessments and shall determine the amount of assessment to be charged against each lot within the local improvement district according to the special and peculiar benefits accruing thereto from the improvement, and shall by ordinance spread the assessments.

(Ord. 548 §11, 1982)

3.08.120 Assessment--Notice.

A. Within ten days after the effective date of the ordinance levying the assessments, the city recorder shall send by registered or certified mail to the owner of the assessed property a notice containing the following information:

1. The date of the ordinance levying the assessment, the name of the owner of the property assessed, the amount of the specific assessment and a description of the property assessed.

2. A statement that application may be filed to pay the assessment in installments in accordance with the provisions of this chapter.

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 thirty days of the date of the letter, and if unpaid on that date, will accrue interest and subject the property to foreclosure.

B. Supplementary notice of assessment in form and content to be determined by the city recorder may also be published or posted by the city recorder.

(Ord. 548 §12, 1982)

3.08.130 Assessment--Lien records and foreclosure proceedings.

After passage of the assessment ordinance by the council, the city recorder shall enter in the city lien docket a statement of the amounts assessed upon each particular lot, parcel of land or portion thereof, together with a description of the improvement, the name of the owners and the date of the assessment ordinance. Upon such entry in the lien docket, the amount so entered shall become a lien and charge upon the respective lots, parcels of land or portions thereof, which have been assessed for such improvement. All assessment liens of the city shall be superior and prior to all other liens or encumbrances on property insofar as the laws of the state of Oregon permit. Interest shall be charged on all amounts not paid within thirty days from the date of the letter notifying the owner of the ordinance levying the assessment; and after expiration of thirty days from said date the city may proceed to foreclose or enforce collection of the assessment liens in the manner provided by general law of the state of Oregon; provided, however, that the city may, at its option, enter a bid for the property being offered at a foreclosure sale, which bid shall be prior to all bids except those made by persons who would be entitled under the laws of the state to redeem such property.

(Ord. 548 §13, 1982)

3.08.140 Assessment--Errors.

Claimed errors in the calculation of assessments shall be brought to the attention of the city recorder, who shall determine whether there has been an error in fact. If the city recorder finds that there has been an error in fact, he shall recommend to the council an amendment to the assessment ordinance to correct such error. Upon enactment of any such amendment, the city recorder shall cause the necessary correction to be made in the city lien docket and shall cause a corrected notice of assessment to be sent by registered or certified mail.

(Ord. 548 §14, 1982)

3.08.150 Assessment--Installment payment.

The Bancroft Bonding Act (ORS 223.205 to 223.300) shall apply to assessment levied in accordance with this chapter. Unless otherwise provided in a particular assessment ordinance, the owner of any property assessed for a local improvement in accordance with this chapter in the sum of twenty-five dollars or more, at any time within thirty days after notice of the assessment is first mailed (or within such time as the council may from time to time establish), may file with the city recorder a written application to pay the whole of the assessment in forty semi-annual installments together with interest thereon or if any part of the assessment has been paid, the unpaid balance of the assessments in such installments with such interest.

(Ord. 548 §15, 1982)

3.08.160 Ordinance filing.

The city recorder shall file copies of the ordinance establishing a local improvement district and the assessment ordinance with the director of records and elections of Jackson County; provided, however, that failure to file such ordinances shall not invalidate or affect any proceedings in connection with the local improvement district and shall not impose any liability on the city, the city recorder or any official, officer or employer of the city.

(Ord. 548 §16, 1982)

3.08.170 Deficit assessment.

If the initial assessment has been made on the basis of estimated cost and upon the completion of the improvement the actual cost is found to be greater than the estimated cost, the council may make a deficit or supplemental assessment for the additional cost. Proposed assessments upon the respective lots within the local improvement district for the proportionate share of the deficit shall be made, notices sent, a public hearing held and opportunity for objections considered, and determination of the assessment against each particular lot, block or parcel of land shall be made as in the case of the initial assessment; and the deficit or supplemental assessment spread by ordinance. The deficit assessments shall be entered in the city lien docket, notices published and mailed by the collection of the assessment made in accordance with the provisions of this chapter relating to the original assessment.

(Ord. 548 §17, 1982)

3.08.180 Rebates--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 ordinance, and when so declared, the excess amounts shall be entered on the city lien docket as a credit upon the appropriate assessment. Thereafter, the person who paid the original assessment, or his 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, he 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 such refund shall be deducted from such assessment, and the remainder shall remain a lien on such property until legally satisfied.

(Ord. 548 §18, 1982)

3.08.190 Proceedings abandonment.

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 person paying the same, his assigns or successors.

(Ord. 548 §19, 1982)

3.08.200 Curative provisions.

No improvement assessment shall be rendered invalid by reason of the failure to have all of the information required to be in any engineer’s or city recorder’s report, the improvement resolution or ordinance, the assessment ordinance, 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, jurisdiction or otherwise, in any of the proceedings or steps specified in this chapter, unless it appears 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.

(Ord. 548 §20, 1982)

3.08.210 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 having jurisdiction thereof, 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 by the laws of the state.

B. For purposes of this section, "assessment" includes deficit or supplemental assessments and reassessments.

(Ord. 548 §21, 1982)

3.08.220 Remedies.

Subject to curative provisions of Section 3.08.020 and the rights of the city to reassess pursuant to Section 3.08.210, all action of the council taken pursuant to this chapter are reviewable solely and exclusively by writ of review in accordance with the procedures in ORS 34.010 to 34.100. Review of an ordinance levying any assessment may be commenced only by a property owner who has filed a written objection to the proposed assessment in accordance with Section 3.08.110.

(Ord. 548 §22, 1982)

3.08.230 Lien segregation.

A. Whenever the ownership of any portion of a tract of real property less than the entire tract, is transferred, any lien against the real property in favor of the city shall, upon request of the owner of any portion of the tract, be segregated as provided in this chapter and not otherwise.

B. Applications for the segregation of liens shall be made to the city recorder describing the tract to be segregated and the names of the owner of the respective tracts. A certificate of the county assessor shall be furnished showing the assessed valuation of the various tracts of land concerned as of January 1st of the year in which the segregation is requested, if available; if not available, as of January 1st of the preceding year.

C. The recorder shall thereupon compute a segregation of the lien against the real property upon the same basis as the same was originally computed and apportioned and reflect this segregation in the city lien docket; provided, however, that no segregation shall be made unless all parts of the original tract of land after the segregation have a true cash value as determined from the certificate of the assessor of sixty percent or more of the amount of the lien as to the various tracts concerned.

(Ord. 548 §23, 1982)

3.08.240 Interpretation of provisions.

The provisions of this chapter shall apply to all future local improvement districts and, to the extent further actions or proceedings may be required, to all existing districts.

(Ord. 548 §25, 1982)