Division III. Equivalent Assessment
Chapter 13.90
EQUIVALENT ASSESSMENT
CONNECTION CHARGE
Sections:
13.90.020 Determination of equivalent assessment charge.
13.90.040 Relation to other connection charges.
13.90.050 Charge due and payable.
13.90.010 Purpose.
For some time, the city council has had a policy of assessing properties that benefit from potential utilization of a public improvement. Those assessments are levied to equitably distribute the original cost of initial installation of the water and sewer mains to all the city properties benefiting from the use of those water and sewer mains. Those assessments were also levied to permit the city to recover the costs of those mains which were originally financed by the water fund or sewer fund. State law does not authorize a city to assess properties outside of the municipal boundaries, but does authorize the city to construct extraterritorial utility systems. Such extraterritorial utility systems may be determined by the council to be “benefited” by the construction of the utility improvements near their location, and therefore will be subject to an equivalent assessment charge. After appropriate and lengthy review of current policies, and comments of the general public, the city council has determined that it is reasonable to enact and impose an equivalent assessment charge for those properties that benefited from the provision of a public improvement but were unable to be assessed at the time of the special assessment district. (Ord. 03-115 § 1.1.1, 2003)
13.90.020 Determination of equivalent assessment charge.
An equivalent assessment charge shall be collected at the time of hook up/connection to water mains or sewer lines adjacent to those properties as they would have paid had they hooked up at the time of original installation (assessment). The amount of the equivalent assessment charge pertinent to the property shall be determined by the council in accordance with the assessment formula utilized by the council in the computation of the original assessment. For example, and not by way of limitation, if the council employed a linear foot, area, or per lot formula (or any combination thereof), that methodology shall be applied to calculate the equivalent assessment payable by the property connecting after the original assessment. The city manager shall utilize the methodology from the ordinance assessing properties in the original district to compute the applicable equivalent assessment charge. (Ord. 03-115 § 1.1.2, 2003)
13.90.030 Charge imposed.
An equivalent assessment is imposed upon all properties which in the future wish to utilize either sewer facilities or water facilities or both of the city when a water line or sewer line installation has been completed and the adjacent property did not hook up at the time of completion and was not assessed for the cost of the installation of the water line or sewer line. (Ord. 03-115 § 1.1.3, 2003)
13.90.040 Relation to other connection charges.
The equivalent assessment shall be in addition to any other development or connection fee payable to the city. The equivalent assessment charge provided in this chapter is separate from any applicable tax assessment, charge or fee otherwise provided by law. Equivalent assessment charge is in the nature of a charge for service rendered or to be rendered. (Ord. 03-115 § 1.1.4, 2003)
13.90.050 Charge due and payable.
A. The equivalent assessment charge is immediately due and payable upon receipt of an application for a building permit, or upon receipt of an application for connection to the sewer system or water system or drainage system, or upon receipt of an application for a permit to create an access to the street system of the city, or upon receipt of an application for the consolidation or partition of a parcel or parcels of land as provided in this code, whichever occurs first. The equivalent assessment fee for all systems shall be due and payable whenever any application, permit, or event described herein shall occur.
B. If development is commenced or connection is made to the sewer, water, drainage, or street system without an appropriate permit, the equivalent assessment charge is immediately due and payable upon the earliest date that any such permit was required. The owner shall pay and the city manager shall collect the applicable equivalent assessment charge before issuing any building or development permit or before permitting any connection to the water, sewer, drainage, or street systems of the city. The city manager shall decline to issue such a permit or to permit such a connection until that charge has been paid in full. If a connection has been made without benefit of a permit, the city manager shall immediately terminate the connection, and shall cause such violation to be prosecuted as provided herein. (Ord. 03-115 § 1.1.5, 2003)
13.90.060 Payment deferral.
Notwithstanding any other provision of this chapter to the contrary, whenever an equivalent assessment charge of $1,000 or more would otherwise be due and collectable, the owner may apply upon forms provided by the city manager for payment of the charge in not more than 10 semi-annual installments plus interest. Upon receipt of such an application, the city manager shall compute the amount of the equivalent assessment charge, the date upon which that charge is due, the name or names of the owner(s) of the development for which the equivalent assessment charge is imposed, and the description of the property upon which the development is occurring or has occurred. The total amount of the charge shall be subject to interest at the rate of nine percent per annum, which interest shall be the full and only compensation to the city for its administrative costs and shall be secured by property, bond(s), deposits, letter of credit or other security acceptable to the city manager. Any deferred payment secured with real property shall become a lien upon the property and the city manager shall docket the lien in the docket of liens; and from the time that docketing is completed, the city shall have a lien upon that described property for the total amount of the charge. That lien may be enforced in the manner provided in ORS Chapter 223. That lien herein shall have priority over all other liens and encumbrances of any character. (Ord. 03-115 § 1.1.6, 2003)
13.90.070 Collection.
Whenever the full and correct equivalent assessment charge has not been paid and collected or any payment deferred in accordance with SMC 13.90.060 has not been paid when due for any reason, the city manager shall report to the council the amount of the uncollected charges, the description of the real property upon which the development occurred, the date upon which the charge was due, and the name or names of the owner(s), and, if the property was secured by a lien upon real property, a description of the real property and the owner or owners of record or the purchaser or purchasers of record of the property. The city council by motion shall then set a public hearing and shall direct the city manager to give notice of that hearing to each of those owners or contract purchasers together with a copy of that city manager’s report concerning the unpaid charge(s) either in person or by certified mail. Upon public hearing, the council may accept, reject, or modify the manager’s report. If the council finds that any charge or installment payment is unpaid and uncollected, the council, by motion, may direct the city attorney to file an action to collect the charge(s). If the payment of the charge is secured by real property, the council may direct the city manager to foreclose the lien as provided by law for the full amount of unpaid charge(s), interest and the city’s actual costs of serving notice upon the owner(s) and/or contract purchasers. That lien may be enforced in the manner provided in ORS Chapter 223. That lien herein shall have priority over all other liens and encumbrances of any character. (Ord. 03-115 § 1.1.7, 2003)
13.90.080 Violations.
A. No person shall fail to pay the full and correct equivalent assessment charge or any payment deferred in accordance with SMC 13.90.060 when due.
B. No person shall connect to the water, sewer, or drainage systems or access the street system of the city unless the appropriate equivalent assessment charge has been paid or the installment payment method has been applied for and approved. (Ord. 03-115 § 1.1.8, 2003)
13.90.090 Penalty.
Violation of any provision of this chapter is punishable by a fine of not less than $500.00 and not more than $1,000. Each day during which the person shall have failed to pay the due assessment or was connected without paying the appropriate fee shall be deemed a separate offense. (Ord. 03-115 § 1.1.9, 2003)