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EUGENE CITY COUNCIL AGENDA ITEM SUMMARY Work Session: Street Assessment Policy Meeting Date: February 14, 2005 Agenda Item Number: B Department: Public Works Staff Contact: Mark Schoening www. cl. eugene, or. us Contact Telephone Number: 682-5243 ISSUE STATEMENT This work session will provide an overview of the City's street assessment policy and some of the issues associated with street assessment projects (local improvement districts). BACKGROUND Local Improvement District Process The formation of a local improvement district (LID) provides a method of financing public infrastructure in which the cost of the infrastructure is assessed to the benefiting properties. The majority of Eugene's street system has been financed through assessments to benefiting properties. LIDs can be initiated by the City Council or by the City Engineer. The City Council can initiate an LID by the adoption of the annual capital budget or by a council motion. Ayres Road, Delta Highway and Garden Way are examples of LIDs initiated by the council with the adoption of the annual capital budget. The West University Neighborhood alley improvement project is an example of an LID initiated by a council motion. The City Engineer may initiate an LID after receiving a petition poll from property owners representing properties that will bear over 50 percent of the cost of the improvement. Lone Oak Way and Santa Clara Avenue are examples of LIDs initiated by the City Engineer. Upon initiation of an LID, the City proceeds with the design and bidding of a project. After a project is bid and prior to awarding a construction contract, a public hearing is held before a hearings official to determine whether or not the City should proceed with the improvement project. After considering the findings of the hearings official the City Council forms the LID by resolution. However, if property owners representing properties that will bear over 50 percent of the cost of the improvement remonstrate against the project, the hearing before the hearings official is continued to the City Council. It then requires that two-thirds of all councilors vote in support of a resolution for an LID to be formed. Once an LID is formed the City proceeds with construction of the improvement project. Upon completion of construction a second public hearing is held before a hearings official. The purpose of the second public hearing is to determine if the assessments to the benefiting properties were determined appropriately. After considering the findings of the hearings official, the council adopts an ordinance levying the assessments against the benefiting property owners. L:\CMO\2005 Council Agendas\M050214\S050214B.doc