HomeMy WebLinkAboutOrder 033 - Approve TSD ChargeDeschutes County Board of Commissioners
1300 NW Wall St., Suite 200, Bend, OR 97701-1960
(541) 388-6570 - Fax (541) 385-3202 - www.deschutes.org
AGENDA REQUEST & STAFF REPORT
For Board Business Meeting of November 1, 2010
DATE: October 26, 2010
FROM: Tom Blust
Road Department Phone # 322-7105
TITLE OF AGENDA ITEM:
Consideration of Signature of Order No. 2010-033, Approving an application to pay a transportation
system development charge in installments, describing the property and owner, setting terms for
payment, and establishing a lien.
PUBLIC HEARING ON THIS DATE? NO
BACKGROUND AND POLICY IMPLICATIONS:
Pursuant to Resolution 2008-059, the Board of County Commissioners adopted a Transportation
System Development Charge (SDC) to be imposed on new development in the unincorporated area of
Deschutes County. This Resolution provides that an applicant may elect to pay a SDC in installments
over a ten-year period. Dennis and Teresa Bonn constructed a new residence on their property in
Sundance East Phase III, and have filed an application to make their SDC payment in installments
(application attached as "Exhibit A" to Order 2010-033). The interest rate for the installment payments
is set per county policy at 150 basis points above the key rate (national average) for a 30 -year fixed
mortgage. The rate set by this Order is 5.88% per annum over a ten-year period with 20 equal semi-
annual installment payments.
The SDC amount on the property is $4,771.00, which includes a 50% penalty imposed for failure to pay
the SDC within sixty days of the due date per Section 6(C) of Resolution 2008-059. The Bonn's have
submitted a letter appealing the penalty (letter attached as Exhibit "B"). The original SDC amount
imposed without the penalty is $3,194.
FISCAL IMPLICATIONS:
The SDC payment including interest will be paid to the county in installments over a ten-year period.
SDC funds will be used to provide capital improvements for increased capacity necessitated by new
development.
RECOMMENDATION & ACTION REQUESTED:
Move Board signature of Order No. 2010-033, approving an application to pay a transportation system
development charge, in the amount of $4,771.00, in installments.
ATTENDANCE: Tom Blust, Road Department Director
DISTRIBUTION OF DOCUMENTS:
After recording please return original to Sheila Odle at the Road Department. Copies to: Cheryl Circle,
Finance Department; Dennis and Teresa Bonn, 8923 W. Lisbon Lane, Peoria, Arizona 85381
REVIEWED
LEGAL COUNSEL
For Recordin. Stam. Onl
BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON
An Order Approving an Application to
Pay a Transportation System Development Charge
in Installments, Describing the Property and Owner,
Setting Terms for Payment, and Establishing
a Lien.
*
* ORDER NO. 2010-033
WHEREAS, pursuant to Resolution No. 2008-059 the Board of County Commissioners of
Deschutes County, Oregon, adopted a Transportation System Development Charge ("SDC"); and
WHEREAS, Resolution 2008-059 provides that an applicant may elect to pay a SDC over a ten-
year period under the provisions of Deschutes County Code 15.12.060; and
WHEREAS, the owner of property being assessed a SDC has made application to pay said SDC
in installments; now, therefore,
THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON,
ORDERS as follows:
Section 1. Application to pay SDC in installments. The application to pay a SDC in installments
(Exhibit "A") is attached hereto and by this reference incorporated herein.
Section 2. Approval of Application. The application shown in Exhibit "A", describing the property
and owner, setting forth the deferred amount of the SDC, the interest rate on the unpaid amount, the
term and the installment payments to be made by the owner, is hereby approved as of the date of this
order.
Section 3. Lien. This order shall be filed with the County Clerk and the County Clerk shall, upon
the filing of this Order, record and index it upon the appropriate lien docket of Deschutes County. Such
lien shall have priority over all other liens and encumbrances whatsoever on the assessed properties,
except tax liens.
///
1 - ORDER NO. 2010-033 — SDC Application
DATED this day of , 2010.
ATTEST:
Recording Secretary
BOARD OF COUNTY COMMISSIONERS
OF DESCHUTES, COUNTY, OREGON
DENNIS R. LUKE, CHAIR
ALAN UNGER, VICE CHAIR
TAMMY BANEY, COMMISSIONER
2 - ORDER NO. 2010-033 — SDC Application
&/7'/5/r A �i of 2 )
TRANSPORTATION SYSTEM DEVELOPMENT CHARGE
APPLICATION AND INSTALLMENT PAYMENT AGREEMENT
TO: Deschutes County Board of Commissioners
c/o Deschutes County Road Department Director
61150 SE 27th St.
Bend, OR 97702
Pursuant to Deschutes County Resolution 2008-059, I (we) (hereafter referred to as "Applicant(s)")
apply to finance the Transportation System Development Charge (hereafter referred to as "SDC")
imposed on property (see legal description) located in the unincorporated area of Deschutes
County, Oregon.
Applicant(s) own(s) the Property on which the SDC has been imposed. The Property is described
as follows:
Legal Description: Lot 28 Block 13
SUBDIVISION: Sundance East Phase III
Tax Lot Number: 18-13-32C-4700
Ownership information on the Property is as follows:
Owner's name:
Dennis R. Bonn
Teresa Bonn
Owner's address: PO Box 30
La Grande, OR 97850
Applicant(s) acknowledge(s) that the amount of the SDC imposed on the property is $4,771.00
and was imposed when Applicant developed the property.
Applicant(s) hereby requests County approval and agree(s) to pay the SDC over a period of 10
years, as outlined in this document. The interest rate shall be set at 150 basis points above the
rate in effect at the time of application as quoted by Bloomberg; Market Data, Key Rates,
Mortgage (National Average), 30 -year fixed. Applicant(s) acknowledge(s) that the interest rate set
by the County has been established at a rate sufficient to pay a proportionate part of the costs of
administering the SDC financing program under Deschutes County Code and Oregon law.
Applicant(s) agree(s) to pay such interest rate. Applicant(s) acknowledge(s) that financed SDC
amounts are a first lien and encumbrance against the Property. Applicant(s) acknowledge(s) that
the County will record this document in the property records of the County Clerk.
In applying to finance payment of the SDC, Applicant(s) agree(s) to make installment payments
under the following terms:
1. Basis of Payment Terms. The payment schedule set forth in this document is based
upon the Applicant's request that the entire amount of the $4,771.00 SDC will be
Dennis R. Bonn 18-13-32C-4700
Page 1 of 2
E, »»'r `��' (2 0I G )
financed at the fixed rate of 5.88% per annum over a ten-year period with 20 equal
serni-annual installment payments.
2. Terms. Installment payments of $318.91 shall be due and payable beginning on the
30th of October, 2010 and thereafter the 30th day of the next following April and
October until all outstanding amounts and interest thereon are paid. Unless the
County directs otherwise, payment shall be made to the Deschutes County Finance
Department, Deschutes Services Building, 1300 NW Wall St., Suite 200, Bend, OR
97701.
3. Prepayment. Prepayments will be accepted at any time without penalty, applied first to
accrued interest and then to principal. Upon request, prepayments may be applied to
meet the next installment payment due.
4. Payment on Delinquent Accounts. This account will be delinquent if full payment of any
semi-annual installment has not been received by the due date. Delinquent amounts
shall accrue interest at the rate of 1c1/0 per month without proration for a fraction of a
month. County is under no obligation to furnish notice of delinquency or demand for
payment. Payments on accounts with delinquencies shall be applied to accrued interest
first.
5. Enforcement and Collection. If any scheduled semi-annual installment payment, or any
amount thereof, remains unpaid for more than one year after it is due, the County may
undertake actions against the Property to collect such delinquencies, including without
limitation, foreclosure for the entire outstanding SDC amount, plus accrued interest and
costs, as allowed by applicable state law. Failure of the County to assert any rights it
may have under law and this agreement regarding enforcement and collection shall not
constitute a waiver of any of County's rights to enforce and collect the SDC.
6. Terms Binding on Applicant's Successors in Interest. The terms of this installment
application and agreement run with the Property and bind any of the Applicant(s)'s
successors in interest.
This application and agreement is submitted in accordance with the provisions of Deschutes
county Resolution 2008-059 and Chapter 15.12.060 of the Deschutes County Code. In
consideration of and pursuant to these legal considerations, the Applicant(s) as owner(s) of the
Property, does (do) hereby expressly waive all irregularities or defects, jurisdictional or otherwise.
ALL OWNERS WHOSE NAME APPEAR ON THE COUNTY PROPERTY RECORDS MUST
SIGN THIS APPLICATION.
Dated this Flo day of s7e147-. , 2010.
Applicant(s):
1C(t—
D is R. Bonn
Dennis R. Bonn 18-13-32C-4700
Page 2 of 2
Exfr,o,r 8 �/ Z
Denny and Terry Bonn
22594 Calgary Drive
Bend, Oregon 97702
People I have spoken with regarding this matter:
• Tom Blust, Director of Road Department
• Lori Furlong, Permit Supervisor
To Whom It May Concern:
We have owned this property since 1990. We have paid property taxes in full
every year before the due dates. Our first permit for this property was for septic,
secured in 2008.
Construction on our property on Calgary Drive began late November. The first
building was the garage/guest room combination, to be followed by construction
of a primary dwelling.
While we were filing permits on one particular visit, with the assistance of our
contractor, Terry remembers mention of a public road fee of $3100. I believe Ms.
Furlong called this the TSDC cost. At this time, we were told this fee would not be
due until the primary dwelling (main house) was completed.
The garage/guestroom was completed in early March. The final inspection was in
late June when the deck was completed. The inspection met all construction
guidelines. The next morning I received a call saying the final inspection was, in
fact, not complete until the TSDS fee of $3100 was paid.
It was now early July. I went to the county office to inquire about paying this
amount in installments and was directed to see Tom Blust at the Road
Department. Tom was most helpful, getting me the papers necessary for
obtaining a loan.
During this same time period my wife, Terry accepted an administrative job with a
private school in Phoenix, Arizona. In the midst of moving stored items from La
Grande to Bend and household items from Bend to Arizona, the loan papers were
overlooked until the deadline of August 30 had passed.
I immediately contacted Tom Blust when The Road Department opened on
September 7, following the Labor Day holiday. I explained our situation and he
contacted Lori Furlong.
Lori called me to say I could pick up an Application and Installment Payment
Agreement at the office, to be signed and sent to Arizona for Terry's signature. It
was at this time I examined the loan papers and saw the loan was not $3100 but
nearly $4800. We did not know there was a deadline and certainly not a 50%
penalty. We have never been late with taxes and would not have intentionally
been late in this instance.
Through all our moves in the past several months, Deschutes County did not have
our current address. Our mail was being collected by family in La Grande, where
the TSDC documents were mailed and held.
With all this being said, we apologize for this confusion and late payment. As our
payment history shows, had we had this information we would not have been
delinquent in payment. Thank you for your understanding and any assistance you
are able to provide.
Denny and ry Bonn
8923 W. Lisbon Lane
Peoria, Arizona 85381