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1996-22008-Ordinance No. 96-048 Recorded 6/6/19960154-'7 REVIEW E � 96-22008 LEG/1 OUNSEL BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON An Ordinance Amending Chapter 15.12, 1 System Development Charges of the Deschutes County Code and Declaring * :; an Emergency. * ORDINANCE NO. 96-048 THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, ORDAINS as follows: Section 1. Amendment. Chapter 15.12, System Development Charges of the Deschutes County Code is amended to read as described in Exhibit "A" attached hereto and incorporated herein, with bold typed text to be added and language to be deleted set forth in brackets. Section 2. Severability. The provisions of this ordinance are severable. If any section, sentence, clause or phrase of this ordinance is adjudged to be invalid by a court of competent jurisdiction, that decision shall not affect the validity of the remaining portions of this ordinance. Section 3. Codification. County Legal Counsel shall have the authority to format the provisions contained herein in a manner that will integrate them into the County Code consistent with the Deschutes County Form and Style Manual for Board Documents. Such codification shall include the authority to make such changes, to make changes in numbering systems and to make such numbering changes consistent with interrelated code sections. In addition, as part of codification of these ordinances, County Legal Counsel may insert appropriate legislative history reference. Any legislative history references included herein are not adopted as part of the substance of this ordinance, but are included for administrative convenience and as a reference. They may be changed to correct errors and to conform to proper style without action of the Board of County Commissioners. Section 4. Repeal of Ordinances as Affecting Existing Liabilities. The repeal, express or implied, of any ordinance, ordinance provision, code section, or any map or any line on a map incorporated therein by reference, by this amending ordinance shall not release or extinguish any duty, condition, penalty, forfeiture, or liability previously incurred or that may hereafter be incurred under such ordinance, unless a provision of this amending ordinance shall so expressly provide, and such ordinance repealed shall be treated as still remaining in force for the purpose of sustaining any proper action or prosecution for the enforcement of such duty, condition, penalty, forfeiture, or liability, and for the purpose of authorizing the prosecution, conviction and punishment of the person or persons who previously violated the repealed ordinance. PAGE 1 - ORDINANCE NO. 96-048 (6/5/96) "CROFILMED ;JUN 2 7 1996 .t FYr d N Eu 01154-2318 Section 4. Emergency. This ordinance being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this ordinance takes effect on its passage. DATED this 5 day of June, 1996. RD OF COUNTY DESCHUTE35�CO NANCY ATT T: BARRY,,SLAUGHTE Recording Secreta y ROBOT L. NIPPER, PAGE 2 - ORDINANCE NO. 96-048 (6/5/96) MMISSIONERS Y, OREGON " u EN, Chair Commissioner ComMissioner 0154--2319 BOLD TYPED TEXT IS ADDDED, BRACKET [ ] TEXT IS DELETED Exhibit "A" Chapter 15.12. SYSTEM DEVELOPMENT CHARGES [15.12.010. Definitions. 15.12.015. Definition -Capital improvement. 15.12.020. Definition -Improvement fee. 15.12.025. Definition -Reimbursement fee.] 15.12.030. Definition -Other governmental unit. [15.12.035. Definition -Qualified public improvement. 15.12.040. Definition -System development charge.] 15.12.050. Adoption of system development charges. 15.12.060. Application to pay in installments )rder-Priority-Publication. [15.12.070. Crediting qualified public improvements.] 15.12.075. Conditions of approval, relief for cash contributions. [15.12.080. Authorized expenditures. 15.12.090. Expenditure restrictions. 15.12.100. Improvement plan.] 15.12.110. Segregation and use of revenue. 15.12.120. Challenge of expenditures. 15.12.130. Hearing of challenge to expenditures. 15.12.140. Prohibited construction. 15.12.010. Definitions. As used in this chapter, the words and phrases are defined as set forth in 15.12.015-040. (Ord. 95-063 § 1, 1995; Ord. 93-051 § 1, 1993)] [15.12.015. Definition -Capital improvement. A. "Capital improvement" means facilities or assets used for the following. 1. Water supply, treatment and distribution; 2. Waste water collection, transmission, treatment and disposal; 3. Drainage and flood control; 4. Transportation; or 5. Parks and recreation. B. "Capital improvement" does not include costs of the operation or routine maintenance of capital improvements. (Ord. 93-051 § 1, 1993)] [15.12.020. Definition -Improvement fee. "Improvement fee" means a fee for costs associated with capital improvements to be constructed. (Ord. 93-051 § 1, 1993)] [15.12.025. Definition -Reimbursement fee. "Reimbursement fee" means a fee for costs associated with capital improvements already constructed or under construction. (Ord. 93-051 § 1, 1993)] 15.12.030. Definition -Other governmental unit. "Other governmental unit" refers to any other governmental unit, as defined in Oregon Revised Statutes chapter 223 for whose benefit Deschutes County collects a system development charge. (Ord. 93-051 § 1, 1993) [ 15.12.035. Definition -Qualified public improvement. "Qualified public improvement" means one that is: (1) required as a condition of residential development approval; (2) identified in the plan adopted pursuant to section 15.12.090; and (3) not located on or contiguous to property that is the subject of residential development approval. (Ord. 95-063 § 1, 1995; Ord. 93-051 § 1, 1993)] [ 15.12.040. Definition -System development charge. A. "System 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 or issuance of a development permit, building permit or connection to the capital improvement. System development charge includes that portion of a sewer or water system connection charge that is greater than the amount necessary to reimburse the governmental unit for its average cost of inspecting and installing connections with water and sewer facilities. B. "System development charge" does not include any 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 upon a land use decision or limited land use decision. (Ord. 93-051 § 1, 1993)] 15.12.050. Adoption of system development A. System development charges, the collection of which are authorized by Oregon Revised Statutes 223.297 through 223.314, [are to] shall be collected [from developers of real property and users or prospective users] at the time of increased usage of a capital improvement[s] or issuance of a development permit, building permit or connection to a capital improvement as [and may be] established and revised by the Board of County Commissioners by resolution. B. Each system development charge resolution shall include the following- 1. ollowing1. The amount of the fee to be charged, 2. The purpose of the charge, 3. The methodology used to establish the charge, 4. When such fees are to be paid, 5. For improvement fees, provide for a credit when a qualified public improvement is constructed by the developer or user who is being required to pay a system development charge. 6. For improvement fees, provide for reimbursement for certain public improvements planned pursuant to ORS 223.309. (Ord. 96-048 § 1, 1996; Ord. 95-063 § 1, 1995; Ord. 93-051 § 1, 1993) 15.12.060. Application to pay in install er-Priority-Publication. A. Whenever a system development charge imposed by this chapter becomes due and payable, the owner of the real property, as defined in Deschutes County Code 12.48.081, may make application to pay the system development charge in installments pursuant to Oregon Revised Statutes 223.208 and 223.215. B. Whenever the board receives such an application from an owner entitled to make payment of a systems development charge in installments, the board shall enter an order approving the application, describing the property and owner, setting forth the principal amount of 0154-23104-0 the lien imposed on the real property, the interest rate, and the time period over which payments shall be made. C. If the application to make system development charges in installments is made by a religious, fraternal, or charitable organization or public corporation, the board may in its order designate the lien to be a second lien on the real property. D. The board shall publish an order authorized by this section in accordance with Oregon Revised Statutes 223.210. E. Where applicable, the procedures set forth in sections 12.48.250 through 12.48.320, Deschutes County Code, shall apply to an order approving an application to make system development charges in installments. (Ord. 95-063 § 1, 1995; Ord. 94-031 § 1, 1994) [ 15.12.070. Crediting qualified public improvements. In calculating the system development fee charged against a developer, the developer shall be credited to reflect the cost of qualified public improvements. If a qualified public improvement is located partially on and partially off property that is the subject of residential development approval, the credit shall be only for the cost of the portion of the improvement not located on or wholly contiguous to the property. Such credits shall be only for the type of improvement being constructed and shall not exceed such improvement fee, even if the cost of the capital improvement exceeds the applicable improvement fee. (Ord. 95-063 § 1, 1995; Ord. 93-051 § 1, 1993)] 15.12.075. Conditions of approval, relief for cash contributions. A. Any condition of approval requiring a cash contribution for transportation system improvements for arterials or collectors by the county, or roads treated as arterials and collectors, which were imposed in lieu of the construction of improvements, imposed on or after June 15, 1993, shall receive a special credit for transportation SDCs to be imposed on lots or improvements at the transportation SDC rate in effect at the time application for a building permit is made for a building permit on the subject property. The amount of the credit shall not exceed the amount of cash contribution set forth in the conditions of approval. B. No development shall be eligible for a credit unless the owner(s) of real property benefiting from a land use approval have entered into a conditions of approval agreement with the county. Such a conditions and approval agreement shall, to the extent possible, be in accordance with the transportation SDC credit and reimbursement policies in effect at the date of the conditions of approval agreement. Application for credit shall be the responsibility of the owner(s) and shall be made within one year after the effective date of this section. C. No credit shall be provided for conditions of approval requiring cash contributions for transportation systems improvements which have been paid prior to the effective date of this section. D. No credit shall accrue after June 16, 2005. E. The Community Development Department shall keep a ledger of all conditions of approval imposing cash contributions described herein and the amount of credits applied. If an outstanding balance exists, on June 16, 2005, the amount shall be due and payable. (Ord. 95-063 § 1, 1995; Ord. 95-049 § 1, 1995) [ 15.12.080. Authorized expenditures. A. Reimbursement fees shall be applied only to capital improvements associated with the systems for which the fees are assessed, including repayment of indebtedness. B. Improvement fees shall be spent only on capacity increasing capital improvements, including expenditures relating to the repayment of debt for such improvements. An increase in system capacity occurs if a capital improvement increases the level of performance or service provided by existing facilities or provided new facilities. The portion of the improvements funded by improvement fees must be related to demands created by development. A capital improvement being funded wholly or in part from revenues derived from the improvement fee shall be included in the plan adopted under section 15.12.100. C. Notwithstanding subsections A and B of this section, system development charge revenue may be expended on the direct costs of complying with the provisions of this ordinance; including the costs of developing system development charge methodologies and providing 0154-2321 an accounting of system development charge expenditures. (Ord. 95-063 § 1,1995; Ord. 93-051 § 1, 1993)] [ 15.12.090. Expenditure restrictions. A. A system development charge 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. B. A system development charge shall not be expended for costs of the operation or routine maintenance of capital improvements. (Ord. 95-063 § 1, 1995; Ord. 93-051 § 1, 1993)] [15.12.100. Improvement plan. Capital improvements for which a system development charge has been imposed shall be included on a capital improvement or public facilities plan or a similar master plan that lists (1) the capital improvements to be funded by improvement fee revenues, (2) the estimated cost of those improvements, and (3) sets forth a timetable for completion of such improvements. (Ord. 95-063 § 1, 1995; Ord. 93-051 § 1, 1993)] 15.12.110. Segregation and use of revenue. A. All funds derived from a system development charge shall be segregated by accounting practices from all other funds of the county. The system development charge shall be used for no other purposes than those set forth in the section 15.12.080 and the resolution adopting the charge. B. The county shall provide an annual accounting for system development charges showing the total amount of system development charge revenues collected for each system and the projects that were funded. C. In those instances in which a systems development charge has been adopted by and collected by the county on behalf of another governmental unit, such as Bend Metro Parks and Recreation, the county may require through an intergovernmental agreement that ultimate responsibility for accounting for the system development expenditures lie with such other governmental unit. D. In all cases in which the county acts on behalf of another governmental unit in adopting and collecting system development charges and otherwise administering the collection of and disbursement of system development charge funds, the county shall secure an indemnity agreement from the other governmental unit to indemnify the county from any claims, losses, damages or any other expenses that the county may incur by reason of a claim that system development charge funds have been spent by the other governmental unit in an unauthorized manner. (Ord. 95-063 § 1, 1995; Ord. 93-051 § 1, 1993) 15.12.120 Challenge of expenditures. A. Any citizen or interested person may challenge an expenditure of system development charge revenues based upon an alleged failure of the county to follow the requirements of Oregon Revised Statutes 223.307 by filing a written challenge with the Board of County Commissioners describing, with particularity, the expenditure which the person is challenging and the reason that the challenge is alleged to be unlawful. All such challenges must be brought within two years of the date of the expenditure challenged. B. In those instances in which a systems development charge is adopted and/or collected by the county on behalf of another governmental unit, such as Bend Metro Parks and Recreation, any challenge regarding alleged unauthorized expenditures shall be directed to that other governmental unit if such other governmental unit has adopted a procedure to accept and respond to challenges to system development charge expenditures, as required by Oregon Revised Statutes 223.307. If the other governmental unit has not adopted procedures of its own to accept and respond to challenges, challenges shall be directed to the county under section 15.12.120(A) of this chapter. (Ord. 95-063 § 1, 1995; Ord. 93-051 § 1, 1993) 15.12.130. Hearing of challenge to expenditures. A. Unless an intergovernmental agreement with another governmental unit provides otherwise, a challenge to an expenditure of system development charges collected by the county shall be set for an administrative hearing before the county hearings officer. Such hearings shall be tape recorded. The person conducting the hearing must not be one of the persons who authorized the challenged expenditure of funds. The hearings officer shall provide notice to the person challenging the 0154-23,2 expenditure and the public employees or officials who made the expenditure, of the hearing date, time and place. The person conducting the hearing shall also provide said persons an opportunity to present evidence and legal arguments concerning the matter. If the hearings officer determines that system development charges were misspent, he or she shall forward a report to the board detailing the hearings officer's findings and indicating the amount of funds misspent and from where said funds were spent. The board shall review the hearings officer's report and replace any funds it determines have been misspent with funds derived from other sources. B. Any indemnity agreement entered into pursuant to section 15.12.110(C) shall require that the other governmental unit be the source of any monies required by the hearing officer under section 15.12.130(A) to replace monies that the hearing officer has found to have been misspent. (Ord. 95-063 § 1, 1995; Ord. 93-051 § 1, 1993) 15.12.140. Prohibited construction. A. No person, firm or corporation shall construct a structure to which a system development charge applies unless the applicable system development charge has been paid. B. Violation of this provision shall be a Class A infraction. (Ord. 95-063 § 1, 1995; Ord. 93-051 § 1, 1993) [96-048]