05/29/1990 Meeting (2) - Laserfiche WebLink

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. e - existing sewers not previously assessed. Actions available to the council are approval, nonapproval, postponement of action, or modification of the boundaries of the district. Ordinances allow for remonstrance on projects such as this one, but only 260 properties, out of nearly 1,500 being served, sent in petitions, which is an insufficient number for a remonstrance override by the City Council. Mr. Smith pointed out that vacant properties are excluded. Separate actions following approval of the improvement districts will include assessment hearings before the Hearings Official for those properties which already have sewers (expected to occur in July), and again when sewer construction is completed and service is available in the new area (expected in February 1991). In both cases, the first payment would be due in March 1991 . Mr. Smith reviewed the groundwater pollution problem in the area. A 1971 study found significant contamination of the groundwater in River Road/Santa Clara. That study was criticized because it was conducted during a period of low rainfall. A more extensive 1979 study again showed significant contamination. Mr. Smith said this contamination could be attributed to the facts that approximately 2-4 million gallons of sewage enter the ground daily in an area of approximately 7 square miles; the soils in the area are well-drained and septic tanks work, but by their very design, such large numbers of septic tanks cause the contaminants to move very quickly without treatment into the groundwater. Mr. Smith explained that assessments for the project are based on lot area because larger lots may subdivide and make greater use of the sewer system and achieve greater benefit. The City assessment ordinance limits the assessment to the first 160 feet of lot depth. 80th these methods are commonly used by other cities. Mr. Smith pointed out that regardless of the method used, the average cost will remain the same, making this appear to be the most equitable way to distribute the cost of sewers. Mr. Smith showed several slides to illustrate how costs have been reduced to 65 percent of the original estimate. He compared the costs of this project to those of four mandated projects constructed between 1976 and 1983 in similar neighborhoods in Portland. Mr. Smith explained that the City of Eugene has developed a financing program to ease the burden on individual property owners that includes: 1. ten-year financing with an interest rate dependent on the sale of bonds (expected to amount to eight to nine percent); 2. State Revolving Loan Fund with a three-percent interest rate; and 3. five deferral programs for a) elderly low-income; b) state hardship deferral; c) payment extension; d) low-income; and e) large payment deferral. MINUTES--Eugene City Council May 29, 1990 Page 2