Chapter 3.20 SYSTEMS DEVELOPMENT CHARGES

Chapter 3.20
SYSTEMS DEVELOPMENT CHARGES

Sections:

3.20.010 Systems development charges established.

3.20.020 Water facilities.

3.20.030 Parks, open space and recreation facilities.

3.20.040 Transportation systems development charges.

3.20.050 Interchange development charge program.

3.20.060 Stormwater facilities.

3.20.010 Systems development charges established.

A. Purpose. The purpose of systems development charges imposed pursuant to this chapter is to impose a portion of the cost of capital improvements for water system facilities upon those developments that create the need for or increase the demands on capital improvements.

B. Scope. The systems development charges imposed by this chapter are separate from and in addition to any applicable tax, assessment, charge or fee otherwise provided by law or imposed as a condition of development.

C. Definitions. For purposes of this chapter the following mean:

"Capital improvements" means facilities or assets used for domestic water system;

"Development" means constructing a building, making a physical change in the use or appearance of a structure or land, creating or terminating a right of access or any other change in the use of land that results in increased usage of a capital improvement.

"Developer" means the person who causes a development to occur, including, but not limited to, a person who applies for a building permit or a permit to connect to the water system.

"Improvement fee" means a fee for costs associated with capital improvements to be constructed.

"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 other use, and that includes the yards and other open spaces required under the zoning, subdivision or other development ordinances.

"Qualified public improvements" means a capital improvement that is:

a. Required as a condition of development approval;

b. Identified in the plan adopted pursuant to subsection H of this section; and

c. Not located on or contiguous to a parcel of land that is the subject of the residential development approval.

"Reimbursement fee" means a fee for costs associated with capital improvements constructed or under construction.

"Systems 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, at the time of issuance of a development permit or building permit, or at the time of connection to the capital improvement. "Systems development charge" includes that portion of a water system connection charge that is greater than the amount necessary to reimburse the Medford Water Commission or city of Phoenix for its average cost of inspecting and installing connections with water facilities. "Systems development charge" does not include 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 by a land use decision.

D. Systems Development Charge Established.

1. Systems development charges shall be established and may be revised by ordinance of the city of Phoenix.

2. Unless otherwise exempted by the provisions of the ordinance establishing the charge or other local or state law, systems development charges shall be imposed upon all developers of land within the city.

3. A legal action challenging the methodology adopted by the city of Phoenix pursuant to this section shall not be filed later than sixty days after its adoption.

E. Methodology.

1. The methodology used to establish a reimbursement fee shall consider the cost of existing facilities, prior contributions by then-existing users, the value of unused capacity, rate-making principles employed to finance publicly owned capital improvements, and other relevant factors. The methodology shall promote the objective that future systems users shall contribute no more than an equitable share of the cost of then-existing facilities.

2. The methodology used to establish an improvement fee shall consider the estimated cost of projected capital improvements needed to increase the capacity of the systems to which the fee is related.

3. The methodology used to establish an improvement fee or a reimbursement fee, or both, shall be contained in an ordinance adopted by the city.

F. Authorized Expenditures.

1. Reimbursement fees shall be applied only to capital improvements associated with the systems for which the fees are assessed, including expenditures relating to repayment of indebtedness.

2. a. Improvement fees shall be spent only on capacity increasing-capital improvements, including expenditures relating to repayment of future debt for the improvements. An increase in system capacity occurs 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 demands created by development.

b. A capital improvement being funded wholly or in part from revenues derived from the improvement fee shall be included in the plan adopted by the Medford Water Commission pursuant to subsection H of this section.

3. Notwithstanding subsections (F)(2)(a) and (F)(2)(b) of this section, systems development charge revenues may be expended on the direct costs of complying with the provisions of ORS 223.297 to 223.314, including the costs of development of systems development charge methodologies and providing an annual accounting of systems development charge expenditures.

G. Expenditure Restrictions.

1. Systems development charges shall not be expended for costs associated with the construction of administrative office facilities that are more than an incidental part of other capital improvements.

2. Systems development charges shall not be expended for costs of the operation or routine maintenance of capital improvements.

H. Improvement Plan.

1. Before imposing an improvement fee, the Medford water commission and city shall adopt a plan that:

a. Lists the capital improvements that may be funded with improvement fee revenues; and

b. Lists the estimated cost and time of construction of each improvement.

2. The plan may be modified at a regular meeting of the city of Medford board of water commissioners. The commission shall give the city thirty days written notice prior to any modification of the improvement plan.

I. Collection of Charge.

1. The systems development charges established by ordinance pursuant to this chapter are payable upon issuance of:

a. A building permit;

b. A development permit for development not requiring the issuance of a building permit; or

c. A permit to connect to the water system.

2. If development is commenced or connection is made to the water system without an appropriate permit, the systems development charge is immediately payable upon the earliest date that a permit was required.

3. The city shall collect the applicable systems development charge from the developer of a parcel when a permit that allows building or development of a parcel is issued or when a connection or enlargement of a connection to the water system of the city is made.

4. The city shall not issue such permit or allow such connection until the charge has been paid in full or unless an exemption has been granted.

5. System development charges (SDC) for meters from three-quarters inch to three inches shall be based upon the size of the meter. Meter four inches and larger shall be based upon the actual demands the customer will place on the system. The applicant will be required to supply the utility with their estimated maximum monthly day (MMD) demand. The MMD shall be determined by dividing the estimated maximum month sales by thirty-one, the number of days in the month. MMD will be divided by one thousand two hundred gallons to determine the number of equivalent residential units (ERU) this demand represents. The number of ERUs is then multiplied by the system development charge per ERU to determine the total SDC. This estimated demand will be verified at one, three and five-year intervals to insure the proper fee has been collected. Refunds or additional SDC will be made or collected it the estimate provide by the applicant is inaccurate by more than ten percent. The same method of determining SDC’s will be used for large combined fire, domestic services.

6. Additional provisions regarding collection of system development charges may be set forth in the ordinance establishing the charge.

J. Credits. The ordinance establishing an improvement fee shall provide for a credit against such fee for the construction of a qualified public improvement, as provided by ORS 223.304. Additional credits beyond those required by the statute may be allowed by such ordinance. Credit shall not be transferable from one development to another or from one type of capital improvement to another.

K. Segregation and Use of Revenue.

1. All funds derived from a particular type of systems development charge are to be segregated by accounting practices from all other funds of the city of Phoenix. That portion of the systems development charge calculated and collected on account of a specific facility system shall be used for no purpose other than those set forth in subsection F of this section.

2. The Medford water commission manager shall provide the board of water commissioners and the city with an annual accounting, based on the commission’s fiscal year, for systems development charges showing the total amount of systems development charge revenues collected for each type of facility and the projects funded from each.

L. Appeal Procedure.

1. A person aggrieved by a decision required or permitted to be made by the city under this ordinance or a person challenging the propriety of an expenditure of systems development charge revenues may appeal the decision or the expenditure to the city council by filing a written request with the city describing with particularity the decision or expenditure from which the person appeals.

2. An appeal of an expenditure must be filed within two years of the date of the alleged improper expenditure. Appeals of any other decision must be filed within thirty days of the date of the decision.

3. For appeals filed with the city, the city shall defer all appeal decision to the Medford water commission who is responsible for defending all action associated with the system development charges. The board of water commissioners shall determine whether the decision or the expenditure is in accordance with this chapter and the provisions of ORS 223.297 to 223.314 and may affirm, modify or overrule the decisions. If the board of water commissioners determines that there has been an improper expenditure of systems development charge revenues, the board of water commissioners shall direct that a sum equal to the misspent amount shall be deposited within one year to the credit of the account or fund from which it was spent.

4. The chairman of the board of water commissioners may appoint one or more intermediate appeals boards to hear appeals under this section, except of appeals challenging an expenditure. The decision of the appellate board shall be final unless, within ten days after notification of the decision, the Medford water commission manager or appellant gives written notice of appeal to the board of water commissioners. Board of water commissioners shall hear such appeals de novo.

M. Prohibited Connection. No person may connect to the water system of the city of Phoenix unless the appropriate systems development charge has been paid.

N. Effect on Monies Previously Collected. The provisions of Sections 1 through 13 of the ordinance codified in this section do not apply to systems development charges collected prior to its effective date. Use of funds previously collected shall be governed by the law in effect at the time of collection.

(Ord. 783 §§ 1-14, 1997: Ord. 754 §§ 1-14, 1995: Ord. 738 §§ 1-14, 1994)

3.20.020 Water facilities.

A. Purpose. This section is intended to implement the authority provided by ORS 223.297 through 223.314 adopting and imposing system development charges (SDC) on new development that create or increase the demand for water supply, treatment and distribution services and facilities. The purpose of the SDC is to create a fund to pay for the installation, construction, extension and expansion of water capital improvements and to impose an equitable share of the cost of these capital improvements on the developments that create the need for, or increase the demand on, them.

B. Scope. The SDC created and imposed by this section 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.

C. Definitions. For purposes of the ordinance, the following definitions apply:

1. "Capital improvements" means facilities or assets used for water supply, treatment and distribution.

2. "City recorder" means the duly appointed City Recorder of the City of Phoenix or that person’s designee.

3. "Development" means constructing a building or a structure, conducting a mining operation, making a physical change in the use or appearance of a structure or land, dividing land into two or more parcels (including partitions and subdivisions) and creating or terminating a right of access.

4. "Improvement fee" means a fee for costs associated with capital improvements to be constructed after the date the fee is adopted pursuant to subsection D of this section.

5. "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 other use, and that includes the yards and other open spaces required under the zoning, subdivision or other development ordinances.

6. "Qualified public improvement" means a capital improvement that is required as a condition of development approval, identified in the plan adopted pursuant to subsection H of this section, and is either:

a. Not located on or contiguous to, the property that is the subject of development approval; or

b. Located in whole or in part on, or contiguous to, the property that is the subject of development approval and is required to be built larger or with greater capacity than is necessary for the particular development project to which the improvement fee is related.

7. "Reimbursement fee" means fee for costs associated with capital improvements constructed or under construction on the date the fee is adopted pursuant to subsection D.

8. "System development charge (SDC)" means a reimbursement fee, an improvement fee or a combination thereof assessed or collected at any of the times specified in subsection I. System development charge does not include 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 by a land use decision.

D. System Development Charge Established.

1. Water SDCs shall be established and may be revised from time to time by resolution of the council. The resolution shall set the amount of the charge, the type of permit to which the charge applies, the methodology used to set the amount of the charge, and if the charge applies to a geographic area smaller than the entire, the geographic area subject to the charge.

2. Unless otherwise exempted by the provisions of this section or any other applicable local or state law, a SDC is hereby imposed upon all new or redevelopment within the city, and upon all lands outside the boundary of the city that connect to or otherwise use the water facilities of the city. SDCs shall be due and payable at the point in time at which the development imposes new or increased demand upon these public improvements or upon issuance of a building permit, whichever occurs first.

E. Methodology.

1. The methodology used to establish the reimbursement fee shall be based on ratemaking principles employed to finance publicly owned capital improvements, prior contributions by then-existing users, gifts or grants from federal or state government or private persons, the value of unused capacity available to future system users or the cost of the existing facilities and other relevant factors identified by the city council. The methodology shall promote the objective that future system users shall contribute no more than an equitable share of the cost of then-existing facilities and shall be available for public inspection.

2. The methodology used to establish the improvement fee shall demonstrate consideration of the projected cost of capital improvements identified in the list adopted pursuant to subsection H that are needed to increase the capacity of the systems to which the fee is related and for which the need for increased system capacity will be required to serve the demands placed on the system by future users. Improvement fees shall be calculated to obtain the cost of capital improvements for the projected need for available system capacity for future users.

3. The methodology shall also provide for a credit as authorized in subsection K.

4. The methodology shall also provide for periodic indexing of system development charges for inflation, as long as the index used is:

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;

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.

5. Except when authorized in methodology adopted under subsection E.3, any fees imposed or required to be paid, 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 by a land use decision are separate from and in addition to the SDC and shall not be used as a credit against an SDC.

6. The methodology used to establish the improvement fee or the reimbursement fee, or both, shall be adopted by resolution by the council.

7. After the effective date of this section, the city shall maintain a list of persons who have made a written request for notification prior to adoption or amendment of a methodology for any SDC. Written notice shall be mailed to persons on the list at least ninety days prior to the first hearing to establish or modify a SDC and the methodology supporting the adoption or amendment shall be available at least sixty days prior to the first hearing to adopt or amend. The failure of a person on the list to receive a notice that was mailed shall not invalidate the city’s subsequent action. The city may periodically delete names from the list, but at least thirty days prior to removing a name from list the city must 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. A change in the amount of a reimbursement fee or an improvement fee is not a modification of the SDC methodology if the change in amount is based on a change in cost of materials, labor or real property applied to projects or project capacity as set forth on the list adopted pursuant to subsection H or the periodic application of one or more specific cost indices published by a recognized organization or agency and is incorporated as part of the established methodology or identified and adopted in a separate ordinance, resolution or order.

F. Authorized Expenditures.

1. Reimbursement Fees. Reimbursement fees shall be applied only to capital improvements (and not operating expenses) associated with the water system, including expenditures relating to the repayment of indebtedness.

2. Improvement fees.

a. Improvement fees shall be spent only on capacity increasing capital improvements, including expenditures relating to repayment of debt for the 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.

b. A capital improvement being funded wholly or in part from revenues derived from the improvement fee shall be included in the plan adopted by the city pursuant to subsection H.

c. Notwithstanding subsections F.2.a and b, SDC revenues may be expended on the costs of complying with the provisions of subsection F.2.a, including the costs of developing systems development charge methodologies and providing an annual accounting of systems development charge expenditures.

G. Expenditures Restrictions. SDCs shall not be expended for:

1. Costs associated with the construction of administrative office facilities that are more than an incidental part of other capital improvements; or

2. Costs of the operation or routine maintenance of capital improvements.

H. Capital Improvement Plan. The Council shall adopt a capital improvement plan that:

1. Lists the capital improvements that may be funded with improvement fee revenues;

2. Lists the estimated cost and percentage of costs eligible to be funded with revenues from the improvement fee for each improvement;

3. Describes the process for modifying the plan. If a SDC will be increased by a proposed modification of the list to include a capacity increasing capital improvement, the city shall provide, at least thirty days prior to the adoption of the modification, notice of the proposed modification to the persons who have requested written notice under subsection E. The city shall hold a public hearing if a written request for a hearing on the proposed modification is received within seven days of the date the proposed modification is scheduled for adoption.

I. Collection of Charge.

1. The SDC is payable upon issuance of:

a. A building or construction permit of any kind, including any permit or permits issued in connection with the set-up or installation of any trailer, mobile or manufactured home;

b. A development permit;

c. A development permit for development not requiring the issuance of a building permit;

d. A permit to connect to water system.

2. If development is commenced or connection is made to the water system without an appropriate permit, the SDC shall be immediately due and payable upon the earliest date that a permit was required.

3. The city recorder shall collect the applicable SDC from the person responsible for or receiving the benefit of the development in accordance with subparagraph 1 above. The city recorder shall not issue such permit or allow such connection until the charge has been paid in full, or unless an exemption is granted pursuant to subsection J, or unless arrangements for payment of the charge, under such terms as the city recorder deems reasonable, have been made, pursuant to subsection 4, which follows.

4. The obligation to pay the unpaid SDC and interest thereon shall be secured by property, bond, deposits, letter of credit or other security acceptable to the city recorder. The net value of security accepted, excluding liens and encumbrances thereon, must be at least double the amount of the SDC secured thereby.

5. If the SDC is not paid upon issuance of the applicable permit, and the applicant chooses to pay the charge in installments and secure the obligation with security acceptable under subsection 4 above, then there shall be added to the amount owing the following:

a. Interest on the obligation at the prevailing state statutory rate of interest;

b. All costs associated with processing the particular form of security, such as title insurance, escrow fees, recording costs, collection escrow costs and/or any other expense associated with the city accepting such security;

c. Any and all costs, as determined by the city recorder, incurred in establishing payment schedules and administering the collection process;

d. When the charge is secured by bond pursuant to ORS 223.205 through 223.295, any and all costs associated with administering the bond assessment program and issuing the bonds, as determined by the city recorder;

e. The intent of this subsection 5 is to recognize that the payment of an SDC by installments increases the administrative expense to the city. It is the intent of this subsection to shift that added expense to the applicant, so that the city will not lose SDC revenue by accepting installment payments on such charges. Subject to the provisions of subsection I.5, all costs added to the SDC will be determined by the city recorder.

J. Exemptions.

1. The following are exempt from SDC:

a. Additions to single-family dwellings that do not constitute the addition of a dwelling unit. Dwelling unit means any building or portion thereof that contains living facilities, including provisions for sleeping, eating, cooking and sanitation.

b. An alteration, addition, replacement or change in use that does not increase the parcel’s structure’s use of the water system.

2. Any enlargement or change and any new connection or utilization of the system to which an SDC applies shall not be exempt.

K. Credits.

1. An SDC shall be imposed when a change in use of a parcel or structure occurs, but credit shall be given in an amount equal to the existing SDC as applied to the pre-existing type and level use. The credit so computed shall not exceed the calculated SDC. No refund shall be made on account of such credit.

2. An improvement fee credit shall be given for the cost of a bonded or completed qualified public improvement associated with a development, subject to the following:

a. Such credit shall be only for the improvement fee charged for the type of improvement being constructed and credit for qualified public improvements under subsection C.7 may be granted only for the actual, estimated or agreed-upon cost of that portion of such improvement that exceeds the city’s minimum standard facility size or capacity needed to serve the particular development property or project. The applicant shall have the burden of demonstrating that a particular improvement qualifies as a subsection C.7 qualified public improvement.

b. 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, if any.

c. Credits shall be used within ten years from the date the credit is given, after which the credit shall expire and be null and void, without the need for the city to take any further action.

d. Credit shall not be transferable from one development to another nor from one type of capital improvement to another.

e. Credit given may be in the form of cash reimbursement; however the amount of cash reimbursement shall not exceed SDCs to be collected from buildings, constructions, and installations on the subject development project and subsequent phases of the original development project.

L. Segregation and Use of SDC Revenue.

1. All funds derived from a particular type of SDC are to be segregated by accounting practices from all other funds of the city. That portion of the SDC calculated and collected on account of a specific facility system shall be used for no purpose [other than] those set forth in subsection F.

2. The city recorder shall provide the city council with an annual accounting for SDCs showing the total amount of system development charge revenues collected for each type of facility and the projects funded from the account.

M. Appeals and Procedures. A person aggrieved by a decision required or allowed to be made by the city recorder under this section or a person challenging the propriety of an expenditure of SDC revenues may appeal the decision or the expenditure to the city council by filing a written request with the city recorder describing with particularity the decision of the city recorder or the expenditure from which the person appeals.

1. Appeal of Expenditure. An appeal of an expenditure must be filed within two years of the date of the alleged improper expenditure. The council shall determine whether the city recorder’s decision or the expenditure is in accordance with this section and the provisions of ORS 223.297 to 223.314 and may affirm, modify or overrule the decision. If the council determines that there has been an improper expenditure of SDC revenues, the council shall direct that a sum equal to the misspent amount shall be deposited within one year to the credit of the account or fund from which it was spent.

2. Appeal of an SDC Methodology. Legal action challenging the methodology adopted by the council pursuant to subsection E shall be filed [no] later than sixty days after the date of adoption and shall be contested according to the procedures set forth in ORS 34.010 to 34.100, and not otherwise.

3. Appeal of and SDC Calculation or Credit Determination:

a. A person aggrieved by a decision made by the planning director relating to the calculation of water SDCs may file an appeal within ten days of the planning director’s action.

b. Appeals must be made by filing a written request with the city recorder and must include a recommended solution to the issue that has initiated the appeal.

c. The city council shall consider all appeals and shall render a decision to affirm, modify or overrule the decision of the planning director.

d. The city council’s decision shall be made in accordance with the intent of the provisions of this section.

(Ord. 784 §§ 1-5, 1997: Ord. 740 §§ 1-5, 1994)

(Ord. No. 900, § 2, 6-16-2008)

3.20.030 Parks, open space and recreation facilities.

A. Purpose. This section is intended to implement the authority provided by ORS 223.297 through 223.314 adopting and imposing system development charges (SDC) on new development that create or increase the demand for parks, open space and recreation services and facilities. The purpose of the SDC is to create a fund to pay for the installation, construction, extension and expansion of parks, open space and recreation capital improvements and to impose an equitable share of the cost of these capital improvements on the developments that create the need for, or increase the demand on, them.

C. Definitions. For purposes of the ordinance, the following definitions apply:

"Capital improvements" means facilities or assets used for parks and recreation, including but not limited to mini-neighborhood parks, neighborhood parks, community parks and other recreational facilities.

"City recorder" means the duly appointed city recorder of the city of Phoenix or that person’s designee.

"Development" means constructing a building or a structure, conducting a mining operation, making a physical change in the use or appearance of a structure or land, dividing land into two or more parcels (including partitions and subdivisions) and creating or terminating a right of access.

"Improvement fee" means a fee for costs associated with capital improvements to be constructed after the date the fee is adopted pursuant to subsection D of this section.

"Qualified public improvement" means a capital improvement that is required as a condition of development approval, identified in the plan adopted pursuant to subsection H of this section, and is either:

1. Not located on or contiguous to, the property that is the subject of development approval; or

2. Located in whole or in part on, or contiguous to, the property that is the subject of development approval and is required to be built larger or with greater capacity than is necessary for the particular development project to which the improvement fee is related.

"Reimbursement fee" means a fee for costs associated with capital improvements constructed or under construction on the date the fee is adopted pursuant to subsection D.

"System development charge (SDC)" means a reimbursement fee, an improvement fee or a combination thereof assessed or collected at any of the times specified in subsection I. System development charge does not include 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 by a land use decision.

D. System Development Charge Established.

1. Parks, open space and recreation SDCs shall be established and may be revised from time to time by resolution of the council. The resolution shall set the amount of the charge, the type of permit to which the charge applies, the methodology used to set the amount of the charge, and if the charge applies to a geographic area smaller than the entire, the geographic area subject to the charge.

2. Unless otherwise exempted by the provisions of this section or any other applicable local or state law, a SDC is hereby imposed upon all new or redevelopment within the city, and upon all lands outside the boundary of the city that connect to or otherwise use the stormwater facilities of the city. SDCs shall be due and payable at the point in time at which the development imposes new or increased demand upon these public improvements or upon issuance of a building permit, whichever occurs first.

E. Methodology.

3. The methodology shall also provide for a credit as authorized in subsection K.

4. The methodology shall also provide for periodic indexing of system development charges for inflation, as long as the index used is:

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;

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.

6. The methodology used to establish the improvement fee or the reimbursement fee, or both, shall be adopted by resolution by the council.

F. Authorized Expenditures.

1. Reimbursement Fees. Reimbursement fees shall be applied only to capital improvements (and not operating expenses) associated with the parks, open space and recreation system, including expenditures relating to the repayment of indebtedness.

2. Improvement Fees.

b. A capital improvement being funded wholly or in part from revenues derived from the improvement fee shall be included in the plan adopted by the city pursuant to subsection H.

c. Notwithstanding subsections F.2.a and b, SDC revenues may be expended on the costs of complying with the provisions of subsections F.2.a, including the costs of developing systems development charge methodologies and providing an annual accounting of systems development charge expenditures.

G. Expenditures Restrictions. SDCs shall not be expended for:

1. Costs associated with the construction of administrative office facilities that are more than an incidental part of other capital improvements; or

2. Costs of the operation or routine maintenance of capital improvements.

H. Capital Improvement Plan. The council shall adopt a capital improvement plan that:

1. Lists the capital improvements that may be funded with improvement fee revenues;

2. Lists the estimated cost and percentage of costs eligible to be funded with revenues from the improvement fee for each improvement;

I. Collection of Charge.

1. The SDC is payable upon issuance of:

a. A building or construction permit of any kind, including any permit or permits issued in connection with the set-up or installation of any trailer, mobile or manufactured home;

b. A development permit;

c. A development permit for development not requiring the issuance of a building permit;

2. If development is commenced, the SDC shall be immediately due and payable upon the earliest date that a permit was required.

a. Interest on the obligation at the prevailing state statutory rate of interest;

c. Any and all costs, as determined by the city recorder, incurred in establishing payment schedules and administering the collection process;

J. Exemptions.

1. The following are exempt from SDC:

b. An alteration, addition, replacement or change in use that does not increase the parcel’s structure’s use of the parks, open space or recreation system.

2. Any enlargement or change and any new connection or utilization of the system to which an SDC applies shall not be exempt.

K. Credits.

2. An improvement fee credit shall be given for the cost of a bonded or completed qualified public improvement associated with a development, subject to the following:

c. Credits shall be used within ten years from the date the credit is given, after which the credit shall expire and be null and void, without the need for the city to take any further action.

d. Credit shall not be transferable from one development to another nor from one type of capital improvement to another.

L. Segregation and Use of SDC Revenue.

2. Appeal of an SDC Methodology. Legal action challenging the methodology adopted by the council pursuant to subsection E shall be filed [no] later than 60 days after the date of adoption and shall be contested according to the procedures set forth in ORS 34.010 to 34.100, and not otherwise.

3. Appeal of and SDC Calculation or Credit Determination:

a. A person aggrieved by a decision made by the planning director relating to the calculation of parks, open space and recreation SDCs may file an appeal within ten days of the planning director’s action.

b. Appeals must be made by filing a written request with the city recorder and must include a recommended solution to the issue that has initiated the appeal.

c. The city council shall consider all appeals and shall render a decision affirm, modify or overrule the decision of the planning director.

d. The city council’s decision shall be made in accordance with the intent of the provisions of this section.

(Ord. No. 902, §§ 1, 2, 6-16-2008)

3.20.040 Transportation systems development charges.

A. Purpose. This section is intended to implement the authority provided by ORS 223.297 through 223.314 adopting and imposing system development charges (SDC) on new development that create or increase the demand for transportation services and facilities. The purpose of the SDC is to create a fund to pay for the installation, construction, extension and expansion of transportation capital improvements and to impose an equitable share of the cost of these capital improvements on the developments that create the need for, or increase the demand on, them.

B. Scope. The SDC created and imposed by this section 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.

C. Definitions. For purposes of this section, the following definitions apply:

"Capital improvements" means facilities or assets used for transportation, including but not limited to streets, sidewalks, bike paths, street lights, street trees, mass public transportation, vehicle parking and bridges.

"City recorder" means the duly appointed city recorder of the city of Phoenix or that person’s designee.

"Improvement fee" means a fee for costs associated with capital improvements to be constructed after the date the fee is adopted pursuant to subsection D of this section.

"Interchange development charge (IDC)" means the system development charge that is separately calculated to recover the eligible costs associated with the Fern Valley Interchange.

a. Not located on or contiguous to the property that is the subject of development approval; or

"Reimbursement fee" means a fee for costs associated with capital improvements constructed or under construction on the date the fee is adopted pursuant to subsection D of this section.

"System development charge" or "SDC" means a reimbursement fee, an improvement fee or a combination thereof assessed or collected at any of the times specified in subsection I of this section. As referenced, "system development charge" includes the interchange development charge associated with the eligible costs of the Fern Valley Interchange. "System development charge" does not include 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 by a land use decision.

D. Systems Development Charge Established.

1. Transportation SDCs shall be established and may be revised from time to time by resolution of the council. The resolution shall set the amount of the charge, the type of permit to which the charge applies, the methodology used to set the amount of the charge, and if the charge applies to a geographic area smaller than the entire city, the geographic area subject to the charge.

2. Unless otherwise exempted by the provisions of this section or any other applicable local or state law, an SDC is imposed upon all new or redevelopment within the city. SDCs shall be due and payable at the point in time at which the development imposes new or increased demand upon these public improvements or upon issuance of a building permit or business license, whichever comes first.

E. Methodology.

1. The methodology used to establish the reimbursement fee shall be based on ratemaking principles employed to finance publicly owned capital improvements, prior contributions by then-existing users, gifts or grants from federal or state government or private persons, the value of unused capacity available to future system users or the cost of the existing facilities, and other relevant factors identified by the city council. The methodology shall promote the objective that future systems users shall contribute no more than an equitable share of the cost of then-existing facilities and shall be available for public inspection.

2. The methodology used to establish the improvement fee shall demonstrate consideration of the projected cost of capital improvements identified in the plan and list adopted pursuant to subsection H of this section that are needed to increase the capacity of the systems to which the fee is related and for which the need for increased system capacity will be required to serve the demands placed on the system by future users. Improvement fees shall be calculated to obtain the cost of capital improvements for the projected need for available system capacity for future users.

3. The methodology shall also provide for a credit as authorized in subsection K of this section.

4. The methodology shall also provide for periodic indexing of system development charges for inflation, as long as the index used is:

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;

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.

5. Except when authorized in methodology adopted under subdivision 3 of this subsection E, any fees imposed or required to be paid, 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 by a land use decision are separate from and in addition to the SDC and shall not be used as a credit against an SDC.

6. The methodology used to establish the improvement fee or the reimbursement fee, or both, shall be adopted by resolution by the council.

7. After the effective date of the ordinance codified in this section, the city shall maintain a list of persons who have made a written request for notification prior to adoption or amendment of a methodology for any SDC. Written notice shall be mailed to persons on the list at least ninety days prior to the first hearing to establish or modify a SDC, and the methodology supporting the adoption or amendment shall be available at least sixty days prior to the first hearing to adopt or amend. The failure of a person on the list to receive a notice that was mailed shall not invalidate the city’s subsequent action. The city may periodically delete names from the list, but at least thirty days prior to removing a name from the list the city must 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. A change in the amount of a reimbursement fee or an improvement fee is not a modification of the SDC methodology if the change in amount is based on a change in cost of materials, labor or real property applied to projects or project capacity as set forth on the list adopted pursuant to subsection H of this section or the periodic application of one or more specific cost indices published by a recognized organization or agency and is incorporated as part of the established methodology or identified and adopted in a separate ordinance, resolution, or order.

F. Authorized Expenditures.

1. Reimbursement Fees. Reimbursement fees shall be applied only to capital improvements (and not operating expenses) associated with the transportation system, including expenditures relating to repayment of indebtedness.

2. Improvement Fees.

b. A capital improvement being funded wholly or in part from revenues derived from the improvement fee shall be included in the plan adopted by the city pursuant to subsection H of this section.

c. Notwithstanding subdivisions (2)(a) and (b) of this subsection F, SDC revenues may be expended on the costs of complying with the provisions of subdivision (2)(a) of this subsection F, including the costs of developing systems development charge methodologies and providing an annual accounting of systems development charge expenditures.

G. Expenditure Restrictions. SDCs shall not be expended for:

1. Costs associated with the construction of administrative office facilities that are more than an incidental part of other capital improvements; or

2. Costs of the operation or routine maintenance of capital improvements.

H. Capital Improvement Plan. The council shall adopt a capital improvement plan that:

1. Lists the capital improvements that may be funded with improvement fee revenues;

2. Lists the estimated cost, and percentage of costs eligible to be funded with revenues from the improvement fee for each improvement; and

3. Describes the process for modifying the plan. If a SDC will be increased by a proposed modification of the list to include a capacity increasing capital improvement, the city shall provide, at least thirty days prior to the adoption of the modification, notice of the proposed modification to the persons who have requested written notice under subsection E of this section. The city shall hold a public hearing if a written request for a hearing on the proposed modification is received within seven days of the date the proposed modification is scheduled for adoption.

I. Collection of Charge.

1. The SDC is payable upon issuance of:

a. A building or construction permit of any kind, including any permit or permits issued in connection with the set-up or installation of any trailer, mobile or manufactured home;

b. A development permit;

c. A development permit for development not requiring the issuance of a building permit;

d. A permit to connect to the transportation system.

2. If development is commenced or connection is made to the transportation system without an appropriate permit, the SDC shall be immediately due and payable upon the earliest date that a permit was required.

3. The city recorder shall collect the applicable SDC from the person responsible for or receiving the benefit of the development in accordance with subdivision 1 of this subsection I. The city recorder shall not issue such permit or allow such connection until the charge has been paid in full, or unless an exemption is granted pursuant to subsection J of this section, or unless arrangements for payment of the charge, under such terms as the city recorder deems reasonable, have been made, pursuant to subdivision 4 of this subsection I, which follows.

5. If the SDC is not paid upon issuance of the applicable permit, and the applicant chooses to pay the charge in installments and secure the obligation with security acceptable under subdivision 4 of this subsection I, then there shall be added to the amount owing the following:

a. Interest on the obligation at the prevailing state statutory rate of interest;

c. Any and all costs, as determined by the city recorder, incurred in establishing payment schedules and administering the collections process;

e. The intent of this subdivision 5 is to recognize that the payment of an SDC by installments increases the administrative expense to the city. It is the intent of this subdivision to shift that added expense to the applicant, so that the city will not lose SDC revenue by accepting installment payments on such charges. Subject to the provisions of this subdivision 5, all costs added to the SDC will be determined by the city recorder.

J. Exemptions.

1. The following are exempt from SDC:

b. An alteration, addition, replacement or change in use that does not increase the parcel’s or structure’s use of the transportation system.

2. Any enlargement or change and any new connection or utilization of the system to which an SDC applies shall not be exempt.

K. Credits.

1. An SDC shall be imposed when a change of use of a parcel or structure occurs, but credit shall be given in an amount equal to the existing SDC as applied to the pre-existing type and level use. The credit so computed shall not exceed the calculated SDC. No refund shall be made on account of such credit.

2. An improvement fee credit shall be given for the cost of a bonded or completed qualified public improvement associated with a development, subject to the following:

a. Such credit shall be only for the improvement fee charged for the type of improvement being constructed, and credit for qualified public improvements under subsection C of this section may be granted only for the actual, estimated, or agreed-upon cost of that portion of such improvement that exceeds the city’s minimum standard facility size or capacity needed to serve the particular development property or project. The applicant shall have the burden of demonstrating that a particular improvement qualifies as a subsection C of this section qualified public improvement.

The city may hire a professional engineer of its choosing or may utilize in-house professional engineering staff (or some combination thereof) to review any request for a credit. The applicant will reimburse the city for all charges billed to the city by any outside professional engineer and for all personnel costs associated with the use of in-house professional engineering staff (including base salary and overhead) for any such review. The applicant will reimburse the city no later than thirty days after the city presents the applicant with a bill. No building permits or other approvals shall be issued by the city with respect to the development until applicant pays the bill in full. The city may employ all legal remedies to collect any unpaid bill, including placing a lien on the applicant’s property.

c. Credits shall be used within ten years from the date the credit is given, after which the credit shall expire, and be null and void, without the need for the city to take any further action.

d. Credit shall not be transferable from one development to another nor from one type of capital improvement to another.

L. Segregation and Use of SDC Revenue.

M. Appeals and Procedure. A person aggrieved by a decision required or allowed to be made by the city recorder under this section or a person challenging the propriety of an expenditure of SDC revenues may appeal the decision or the expenditure to the city council by filing a written request with the city recorder describing with particularity the decision of the city recorder or the expenditure from which the person appeals.

1. Appeal of an Expenditure. An appeal of an expenditure must be filed within two years of the date of the alleged improper expenditure. The council shall determine whether the city recorder’s decision or the expenditure is in accordance with this section and the provisions of ORS 223.297 to 223.314 and may affirm, modify or overrule the decision. If the council determines that there has been an improper expenditure of SDC revenues, the council shall direct that a sum equal to the misspent amount shall be deposited within one year to the credit of the account or fund from which it was spent.

2. Appeal of an SDC Methodology. Legal action challenging the methodology adopted by the council pursuant to subsection E of this section shall not be filed later than sixty days after the date of adoption, and shall be contested according to the procedure set forth in ORS 34.010 to 34.100, and not otherwise.

3. Appeal of an SDC Calculation or Credit Determination.

a. A person aggrieved by a decision made by the planning director relating to the calculation of transportation SDCs may file an appeal within ten days of the planning director’s action.

b. Appeals must be made by filing a written request with the city recorder and must include a recommended solution to the issue that has initiated the appeal.

c. Appeals may be filed to challenge only the trip generation rate or land use category that is applicable to the project. The city may hire a professional engineer of its choosing or may utilize in-house professional engineering staff (or some combination thereof) to review any trip generation appeal. The applicant will reimburse the city for all charges billed to the city by any outside professional engineer and for all personnel costs associated with the use of in-house professional engineering staff (including base salary and overhead) for any such review. The applicant will reimburse the city no later than thirty days after the city presents the applicant with a bill. No building permits or other approvals shall be issued by the city with respect to the development until applicant pays the bill in full. The city may employ all legal remedies to collect any unpaid bill, including placing a lien on the applicant’s property.

d. The city council shall consider all appeals and shall render a decision to affirm, modify, or overrule the decision of the planning director.

e. The city council’s decision shall be made in accord with the intent of the provisions of this section.

(Ord. 890 §§ 1—3, 2007; Ord. 859 § 1, 2006)

3.20.050 Interchange development charge program.

A. Purpose. This section is intended to implement the authority provided by ORS 223.297 through 223.314 adopting and imposing system development charges (SDC) on new development that creates or increases the demand for transportation services and facilities. The purpose of the IDC is to create a fund to pay for the installation, construction, extension and expansion of certain transportation capital improvements and to impose an equitable share of the cost of these capital improvements on the developments that create the need for, or increase the demand on, them.

B. Scope. The IDC created and imposed by this section is separate from, and in addition to, any applicable SDC, tax, assessment, charge, fee in lieu of assessment, or fee otherwise provided by law or imposed as a condition of development.

C. Definitions. For purposes of this section, the following definitions apply:

"Capital improvements" means certain interchange-related facilities or assets used for transportation, including but not limited to streets, sidewalks, bike paths, street lights, street trees, mass public transportation, vehicle parking and bridges.

"City recorder" means the duly appointed city recorder of the city of Phoenix or that person’s designee.

"Improvement fee" means a fee for costs associated with capital improvements to be constructed after the date the fee is adopted pursuant to subsection D of this section.

"Interchange development charge (IDC)" means the system development charge that is separately calculated to recover the eligible costs associated with the Fern Valley Interchange.

a. Not located on or contiguous to the property that is the subject of development approval; or

"Reimbursement fee" means a fee for costs associated with capital improvements constructed or under construction on the date the fee is adopted pursuant to subsection D of this section.

"System development charge or SDC" means a reimbursement fee, an improvement fee or a combination thereof assessed or collected at any of the times specified in subsection I of this section. "System development charge" does not include fees assessed or collected as a part of a local improvement district to charge in lieu of a local improvement district assessment, or the cost of complying with requirements or conditions imposed by a land use decision.

D. Interchange Development Charge Established.

1. The interchange development charge shall be established and may be revised from time to time by resolution of the council. The resolution shall set the amount of the charge, the type of permit to which the charge applies, the methodology used to set the amount of the charge, and if the charge applies to a geographic area smaller than the entire city, the geographic area subject to the charge.

2. Unless otherwise exempted by the provisions of this section or any other applicable local or state law, an IDC is imposed upon all new or redevelopment within the city. IDCs shall be due and payable at the point in time at which the development imposes new or increased demand upon these public improvements or upon issuance of a building permit or business license, whichever comes first.

E. Methodology.

3. The methodology shall also provide for a credit as authorized in subsection K of this section.

4. The methodology shall also provide for periodic indexing of system development charges, and, by reference herein, interchange development charged, for inflation, as long as the index used is:

a. A relevant measurement of the average change in process or costs over an identified time period for materials, labor, real property or a combination of the three;

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.

5. Except when authorized in methodology adopted under subdivision 3 of this subsection E, any fees imposed or required to be paid, 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 by a land use decision are separate from and in addition to the IDC and shall not be used as a credit against an IDC.

6. The methodology used to establish the improvement fee or the reimbursement fee, or both, shall be adopted by resolution by the council.

7. After the effective date of the ordinance codified in this section, the city shall maintain a list of persons who have made a written request for notification prior to adoption or amendment of a methodology for any IDC. Written notice shall be mailed to persons on the list at least ninety days prior to the first hearing to establish or modify an IDC, and the methodology supporting the adoption or amendment shall be available at least sixty days prior to the first hearing to adopt or amend. The failure of a person on the list to receive a notice that was mailed shall not invalidate the city’s subsequent action. The city may periodically delete names from the list, but at least thirty days prior to removing a name from the list the city must 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. A change in the amount of a reimbursement fee or an improvement fee is not a modification of the IDC methodology if the change in amount is based on a change in cost of materials, labor or real property applied to projects or project capacity as set forth on the list adopted pursuant to subsection H of this section or the periodic application of one or more specific costs indices published by a recognized organization or agency and is incorporated as part of the established methodology or identified and adopted in a separate ordinance, resolution or order.

F. Authorized Expenditures.

2. Improvement Fees.

b. A capital improvement being funded wholly or in part from revenues derived from the improvement fee shall be included in the plan adopted by the city pursuant to subsection H of this section.

c. Notwithstanding subdivisions (2)(a) and (b) of this subsection F, IDC revenues may be expended on the costs of complying with the provisions of subdivision (2)(a) of this subsection F, including the costs of developing interchange development charge methodologies and providing an annual accounting of interchange development charge expenditures.

G. Expenditure Restrictions. IDCs shall not be expended for:

1. Costs associated with the construction of administrative office facilities that are more than an incidental part of other capital improvements; or

2. Costs of the operation or routine maintenance of capital improvements.

H. Capital Improvement Plan. The council shall adopt a capital improvement plan that:

1. Describes the process for modifying the plan. If an IDC will be increased by a proposed modification of the list to include a capacity increasing capital improvement, the city shall provide, at least thirty days prior to the adoption of the modification, notice of the proposed modification to the persons who have requested written notice under subsection E of this section. The city shall hold a public hearing if a written request for a hearing on the proposed modification is received within seven days of the date the proposed modification is scheduled for adoption.

I. Collection Charge.

1. The IDC is payable upon the issuance of:

a. A building or construction permit of any kind, including any permit or permits issued in connection with the set-up or installation of any trailer, mobile or manufactured home;

b. A development permit;

c. A development permit for development not requiring the issuance of a building permit;

d. A permit to connect to the transportation system.

2. If development is commenced or connection is made to the transportation system without an appropriate permit, the IDC shall be immediately due and payable upon the earliest date that a permit was required.

3. The city recorder shall collect the applicable IDC from the person responsible for or receiving the benefit of the development in accordance with subdivision 1 of this subsection I. The city recorder shall not issue such permit or allow such connection until the charge has been paid in full, or unless an exemption is granted pursuant to subsection J of this section, or unless arrangements for payment of the charge, under such terms as the city recorder deems reasonable, have been made, pursuant to subdivision 4 of this subsection I, which follows.

4. The obligation to pay the unpaid IDC and interest thereon shall be secured by property, bond, deposits, letter of credit or other security acceptable to the city recorder. The net value of security accepted, excluding liens and encumbrances thereon, must be at least double the amount of the IDC secured thereby.

5. If the IDC is not paid upon issuance of the applicable permit, and the applicant chooses to pay the charge in installments and secure the obligation with security acceptable under subdivision 4 of this subsection I, then there shall be added to the amount owing the following:

a. Interest on the obligation at the prevailing state statutory rate of interest;

c. Any and all costs, as determined by the city recorder, incurred in establishing payment schedules and administering the collections process;

e. The intent of this subdivision 5 is to recognize that the payment of an IDC by installments increases the administrative expense to the city. It is the intent of this subdivision to shift that added expense to the applicant, so that the city will not lose IDC revenue by accepting installment payments on such charges. Subject to the provisions of this subdivision 5, all costs added to the IDC will be determined by the city recorder.

J. Exemptions.

1. The following are exempt from IDC:

b. An alteration, addition, replacement or change in use that does not increase the parcel’s or structure’s use of the transportation system.

2. Any enlargement or change and any new connection or utilization of the system to which an IDC applies shall not be exempt.

K. Credits.

1. An IDC shall be imposed when a change of use of a parcel or structure occurs, but credit shall be given in an amount equal to the existing IDC as applied to the pre-existing type and level use. The credit so computed shall not exceed the calculated IDC. No refund shall be made on account of such credit.

2. An improvement fee credit shall be given for the cost of a bonded or completed qualified public improvement associated with a development, subject to the following:

c. Credits shall be used within ten years from the date the credit is given, after which the credit shall expire, and be null and void, without the need for the city to take any further action.

d. Credit shall not be transferable from one development to another nor from one type of capital improvement to another.

L. Segregation and Use of IDC Revenue.

1. All funds derived from a particular type of IDC are to be segregated by accounting practices from all other funds of the city. That portion of the IDC calculated and collected on account of a specific facility system shall be used for no purpose other than those set forth in subsection F of this section.

2. The city recorder shall provide the city council with an annual accounting for IDCs showing the total amount of interchange development charge revenues collected for each type of facility and the projects funded from the account.

M. Appeals and Procedure. A person aggrieved by a decision required or allowed to be made by the city recorder under this section or a person challenging the propriety of an expenditure of IDC revenues may appeal the decision or the expenditure to the city council by filing a written request with the city recorder describing with particularly the decision of the city recorder or the expenditure from which the person appeals.

1. Appeal of an Expenditure. An appeal of an expenditure must be filed within two years of the date of the alleged improper expenditure. The council shall determine whether the city recorder’s decision or the expenditure is in accordance with this section and the provisions of ORS 223.297 to 223.314 and may affirm, modify or overrule the decision. If the council determines that there has been an improper expenditure of IDC revenues, the council shall direct that a sum equal to the misspent amount shall be deposited within one year to the credit of the account or fund from which it was spent.

2. Appeal of an IDC Methodology. Legal action challenging the methodology adopted by the council pursuant to subsection E of this section shall not be filed later than sixty days after the date of adoption, and shall be contested according to the procedure set forth in ORS 34.010 to 34.100, and not otherwise.

3. Appeal of an IDC Calculation or Credit Determination.

a. A person aggrieved by a decision made by the planning director relating to the calculation of transportation IDCs may file an appeal within ten days of the planning director’s action.

b. Appeals must be made by filing a written request with the city recorder and must include a recommended solution to the issue that has initiated the appeal.

d. The city council shall consider all appeals and shall render a decision to affirm, modify or overrule the decision of the planning director.

e. The city council’s decision shall be made in accord with the intent of the provisions of this section.

(Ord. 890 §§ 4—6, 2007; Ord. 860 § 1, 2006)

3.20.060 Stormwater facilities.

A. Purpose. This section is intended to implement the authority provided by ORS 223.297 through 223.314 adopting and imposing system development charges (SDC) on new development that create or increase the demand for stormwater drainage and flood control services and facilities. The purpose of the SDC is to create a fund to pay for the installation, construction, extension and expansion of stormwater capital improvements and to impose an equitable share of the cost of these capital improvements on the developments that create the need for, or increase the demand on, them.

B. Scope. The SDC created and imposed by this section is separate from, an 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.

C. Definitions. For purposes of the ordinance, the following definitions apply:

"Capital improvements" means facilities or assets used for stormwater drainage and flood control.

"City recorder" means the duly appointed city recorder of the city of Phoenix or that person’s designee.

"Improvement fee" means a fee for costs associated with capital improvements to be constructed after the date the fee is adopted pursuant to subsection D of this section.

1. Not located on or contiguous to, the property that is the subject to development approval; or

"Reimbursement fee" means a fee for costs associated with capital improvements constructed or under construction on the date the fee is adopted pursuant to subsection D.

D. System Development Charge Established.

1. Stormwater SDCs shall be established and may be revised from time to time by resolution of the council. The resolution shall set the amount of the charge, the type of permit to which the charge applies, the methodology used to set the amount of the charge, and if the charge applies to a geographic area smaller than the entire, the geographic area subject to the charge.

2. Unless otherwise exempted by the provisions of this section or any other applicable local or state law, a SDC is hereby imposed upon all new or redevelopment within the city, and upon all lands outside the boundary of the city that connect to or otherwise use the stormwater facilities of the city. SDCs shall be due and payable at the point in time at which the development imposes new or increased demand upon these public improvements or upon issuance of a building permit, whichever occurs first.

E. Methodology.

3. The methodology shall also provide for a credit as authorized in subsection K.

4. The methodology shall also provide for periodic indexing of system development charges for inflation, as long as the index used is:

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;

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.

6. The methodology used to establish the improvement fee or the reimbursement fee, or both, shall be adopted by resolution by the council.

F. Authorized Expenditures.

1. Reimbursement Fees. Reimbursement fees shall be applied only to capital improvements (and not operating expenses) associated with the stormwater system, including expenditures relating to the repayment of indebtedness.

2. Improvement Fees.

b. A capital improvement being funded wholly or in part from revenues derived from the improvement fee shall be included in the plan adopted by the city pursuant to subsection H.

G. Expenditure Restrictions. SDCs shall not be expended for:

1. Costs associated with the construction of administrative office facilities that are more than an incidental part of other capital improvements; or

2. Costs of the operation or routine maintenance of capital improvements.

H. Capital Improvement Plan. The council shall adopt a capital improvement plan that:

1. Lists the capital improvements that may be funded with improvement fee revenues;

2. Lists the estimated cost and percentage of costs eligible to be funded with revenues from the improvement fee for each improvement;

I. Collection of Charge.

1. The SDC is payable upon issuance of:

a. A building or construction permit of any kind, including any permit or permits issued in connection with the set-up or installation of any trailer, mobile or manufactured home;

b. A development permit;

c. A development permit for development not requiring the issuance of a building permit;

d. A permit to connect to stormwater system.

2. If development is commenced or connection is made to the stormwater system without an appropriate permit, the SDC shall be immediately due and payable upon the earliest date that a permit was required.

a. Interest on the obligation at the prevailing state statutory rate of interest;

c. Any and all costs, as determined by the city recorder, incurred in establishing payment schedules and administering the collection process;

J. Exemptions.

1. The following are exempt from SDC:

b. An alteration, addition, replacement or change in use that does not increase the parcel’s structure’s use of the stormwater system.

2. Any enlargement or change and any new connection or utilization of the system to which an SDC applies shall not be exempt.

K. Credits.

2. An improvement fee credit shall be given for the cost of a bonded or completed qualified public improvement associated with a development, subject to the following:

c. Credits shall be used within ten years from the date the credit is given, after which the credit shall expire and be null and void, without the need for the city to take any further action.

d. Credit shall not be transferable from one development to another nor from one type of capital improvement to another.

e. Credit given my be in the form of cash reimbursement; however the amount of cash reimbursement shall not exceed SDCs to be collected from buildings, constructions, and installations on the subject development project and subsequent phases of the original development project.

L. Segregation and Use of SDC Revenue.

1. Appeal of Expenditure. An appeal of an expenditure must be filed within two years of the date of the alleged improper expenditure. The council shall determine whether the city recorder’s decision or the expenditure is in accordance this section and the provisions of ORS 223.297 to 223.314 and may affirm, modify or overrule the decision. If the council determines that there has been an improper expenditure of SDC revenues, the council shall direct that a sum equal to the misspent amount shall be deposited within one year to the credit of the account or fund from which it was spent.

3. Appeal of and SDC Calculation or Credit Determination:

a. A person aggrieved by a decision made by the planning director relating to the calculation of stormwater SDCs may file an appeal within ten days of the planning director’s action.

b. Appeals must be made by filing a written request with the city recorder and must include a recommended solution to the issue that has initiated the appeal.

c. The city council shall consider all appeals and shall render a decision to affirm, modify or overrule the decision of the planning director.

d. The city council’s decision shall be made in accordance with the intent of the provisions of this section.

(Ord. No. 901, 6-16-2008)