72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
SA to SB 939
LC 3784/SB 939-1
SENATE AMENDMENTS TO
SENATE BILL 939
By COMMITTEE ON RULES
August 12
On page 4 of the printed bill, delete lines 7 through 17 and
insert:
' (8) A change in the amount of a reimbursement fee or an
improvement fee is not a modification of the system development
charge methodology if the change in amount is based on:
' (a) A change in the cost of materials, labor or real property
applied to projects or project capacity as set forth on the list
adopted pursuant to ORS 223.309; or
' (b) The periodic application of one or more specific cost
indexes or other periodic data sources. A specific cost index or
periodic data source must be:
' (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.'.
Delete lines 18 through 45 and page 5 and insert:
' { + SECTION 5. + } ORS 223.304, as amended by section 4 of
this 2003 Act, is amended to read:
' 223.304. (1)(a) Reimbursement fees must be established or
modified by ordinance or resolution setting forth a methodology
that is, when applicable, based on:
' (A) Ratemaking principles employed to finance publicly owned
capital improvements;
' (B) Prior contributions by existing users;
' (C) Gifts or grants from federal or state government or
private persons;
' (D) The value of unused capacity available to future system
users or the cost of the existing facilities; and
' (E) Other relevant factors identified by the governmental
unit imposing the fee.
' (b) The methodology for establishing or modifying a
reimbursement fee must:
' (A) Promote the objective of future system users contributing
no more than an equitable share to the cost of existing
facilities.
' (B) Be available for public inspection.
' (2) Improvement fees must:
' (a) Be established or modified by ordinance or resolution
setting forth a methodology that is available for public
inspection and demonstrates consideration of:
' (A) The projected cost of the capital improvements identified
in the plan and list adopted pursuant to ORS 223.309 that are
needed to increase the capacity of the systems to which the fee
is related; and
' (B) The need for increased capacity in the system to which
the fee is related that will be required to serve the demands
placed on the system by future users.
' (b) Be calculated to obtain the cost of capital improvements
for the projected need for available system capacity for future
users.
' (3) A governmental unit may establish and impose a system
development charge that is a combination of a reimbursement fee
and an improvement fee, if the methodology demonstrates that the
charge is not based on providing the same system capacity.
' (4) The ordinance or resolution that establishes or modifies
an improvement fee shall also provide for a credit against such
fee for the construction of a qualified public improvement. A
'qualified public improvement' means a capital improvement that
is required as a condition of development approval, identified in
the plan and list adopted pursuant to ORS 223.309 and either:
' (a) Not located on or contiguous to property that is the
subject of development approval; or
' (b) Located in whole or in part on or contiguous to property
that is the subject of development approval and required to be
built larger or with greater capacity than is necessary for the
particular development project to which the improvement fee is
related.
' (5)(a) The credit provided for in subsection (4) of this
section is only for the improvement fee charged for the type of
improvement being constructed, and credit for qualified public
improvements under subsection (4)(b) of this section may be
granted only for the cost of that portion of such improvement
that exceeds the governmental unit's minimum standard facility
size or capacity needed to serve the particular development
project or property. The applicant shall have the burden of
demonstrating that a particular improvement qualifies for credit
under subsection (4)(b) of this section.
' { + (b) A governmental unit may deny the credit provided
for in subsection (4) of this section if the governmental unit
demonstrates:
' (A) That the application does not meet the requirements of
subsection (4) of this section; or
' (B) By reference to the list adopted pursuant to ORS 223.309,
that the improvement for which credit is sought was not included
in the plan and list adopted pursuant to ORS 223.309. + }
' { - (b) - } { + (c) + } 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. This
subsection does not prohibit a governmental unit from providing a
greater credit, or from establishing a system providing for the
transferability of credits, or from providing a credit for a
capital improvement not identified in the plan and list adopted
pursuant to ORS 223.309, or from providing a share of the cost of
such improvement by other means, if a governmental unit so
chooses.
' { - (c) - } { + (d) + } Credits must be used in the time
specified in the ordinance but not later than 10 years from the
date the credit is given.
' (6) Any governmental unit that proposes to establish or
modify a system development charge shall maintain a list of
persons who have made a written request for notification prior to
adoption or amendment of a methodology for any system development
charge.
' (7)(a) Written notice must be mailed to persons on the list
at least 90 days prior to the first hearing to establish or
modify a system development charge, and the methodology
supporting the system development charge must be available at
least 60 days prior to the first hearing. The failure of a person
on the list to receive a notice that was mailed does not
invalidate the action of the governmental unit. The governmental
unit may periodically delete names from the list, but at least 30
days prior to removing a name from the list shall 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.
' (b) Legal action intended to contest the methodology used for
calculating a system development charge may not be filed after 60
days following adoption or modification of the system development
charge ordinance or resolution by the governmental unit. A person
shall request judicial review of the methodology used for
calculating a system development charge only as provided in ORS
34.010 to 34.100.
' (8) A change in the amount of a reimbursement fee or an
improvement fee is not a modification of the system development
charge methodology if the change in amount is based on:
' (a) A change in the cost of materials, labor or real property
applied to projects or project capacity as set forth on the list
adopted pursuant to ORS 223.309; or
' (b) The periodic application of one or more specific cost
indexes or other periodic data sources. A specific cost index or
periodic data source must be:
' (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.'.
On page 6, delete lines 1 through 10.
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