SDC Rate Consolidation_ installment plan language

From: Jimmy Thompson

Sent: Wed May 02 14:01:49 2018

To: Gerald Fisher

Subject: SDC Rate Consolidation, installment plan language

Importance: Normal

Attachments: DraftSDCTablesforWG(6-5-17)v2.xlsx;

Gerald,
I meant to send these sooner. Here is the language for the installment plans:

D.When a TSDC is due and payable, the parcel owner may apply to the County for payment in twenty (20) semiannual installments, secured by a lien on the property upon which the development is to occur, to include interest on the unpaid balance, if that payment option is required to be made available to the permittee by ORS 223.207.
1.A parcel owner may request installment payments for up to $500,000 in TSDC assessments; any remaining balance must be paid in full prior to issuance of the DEVELOPMENT PERMIT.
2.The County shall prepare the agreement for installment payments, which shall include a waiver of all rights to contest the validity of the lien, except for the correction of computational errors. The application fee for this option shall be set by resolution.

3.The applicable interest rate shall be determined as follows:

PrincipalInterest Rate
$0-24,999Current prime lending rate plus 3.0 percentage points
$25,000-$500,000Current prime lending rate plus 2.0 percentage points

4.An applicant requesting installment payments shall have the burden of demonstrating the authority to assent to the imposition of a lien on the property and that the interest of the permittee is adequate to secure payment of the lien. The Department Director may order the imposition of the lien as recommended by the Department.
5.Upon the Department Director, or Director’s Designee, order the Department shall cause the lien to be recorded on the lien docket kept by the County Clerk. From that time the County shall have a lien upon the described parcel for the amount of the TSDC, together with interest on the unpaid balance at the rate established by the Department Director, or Director’s Designee. The lien shall be enforceable in the manner provided in ORS Chapter 223, and shall be superior to all other liens pursuant to ORS 223.230. Upon satisfaction of the obligation the Department Director shall request the County Clerk to release the lien.
6.With the passage of Article XI, Section 11 B of the Oregon Constitution, progressive payment shall be taken for all unpaid debt. The Department Director, or Director’s Designee, will be notified immediately by the Department of any account thirty (30) days or more past due. The Department Director shall then send a letter to the defaulting party demanding payment no later than thirty (30) days following the date of the demand letter. The demand letter shall require payment of all amounts to bring the account current including any applicable interest or other penalty and shall demand full compliance with a “time is of the essence” clause according to the type of obligation at issue. The time for payment to bring the account current shall be left to the best professional judgment of the Department Director depending upon the type of debt and amount owed but in no event shall time for payment exceed the next payment due date or any other requirements imposed by debt instruments executed by the County in favor of any third party or other agreements that may have been executed by the County.
7.If payment has not been made following the first notice, the Department Director shall refer the matter to legal counsel who shall send a second notice, detailing the prior defaults and notices thereof indicating that further action, including legal action, will be taken.

8.If, following the second notice, time for payment has expired, then legal counsel shall include the defaulting person or entity on a list entitled “Collection/Foreclosure” and consult with appropriate staff regarding the most efficient and cost effective method for collection of the debt.
9.Legal counsel shall determine if the matter will be retained for pursuit by legal counsel, or referred to a debt collection agency or other method for collection. If retained by legal counsel, a demand letter to the debtor shall be sent declaring a default, accelerating the entire balance and requiring full payment within a reasonable period of time not to exceed thirty (30) days. If no satisfactory response is forthcoming, legal counsel may extend the time limits for legal action in cases of extraordinary hardship; such determination shall be at the sole discretion of legal counsel and not subject to review by the Board.
10.Upon referral and direction by the Board, counsel may proceed with foreclosure of the assessment lien or take other legal action authorized by law which is deemed most appropriate under the circumstances.
11.If the legal counsel determines that it is most effective to use the services of a collection agency, legal counsel may solicit proposals and make a recommendation to the Board regarding selection of a firm consistent with the Clackamas County Local Contract Review Board Rules and ORS Chapter 279. Legal counsel shall be authorized to negotiate a contract regarding the amount of compensation, length of term and methods of collection, subject to final review and approval by the Board. However, the contract shall specifically provide that the collection agency shall fully comply with the Fair Debt Collection Practices Act, 15 U.S.C. 1601, et seq., and shall provide for full indemnification and protection of the County from any and all claims for unfair or unlawful debt collection practices.

Also, attached is the draft rate schedule. The tab "Option 3 Consolidated" shows what rates from the ITE were combined for the consolidated class.