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Policy lssues The policy issue before the council is whether to amend the Eugene Code pertaining to the apportionment of assessments for alley improvements to assess all of the costs associated with an alley improvement to the benefitting properties. Council Goals FAIR, STABLE AND ADEQUATE FINANCIAL RESOURCES - A local government whose ongoing financial resources are based on a fair and equitable system of taxation and other revenue sources and are adequate to maintain and deliver municipal services. Financing of alley improvements through the formation of local improvement districts fairly and equitably allocates the cost of the improvements to the benefitting properties. Assessing all of the costs associated with alley improvements is reasonable because alleys primarily benefit the abutting property owners. Financial and/or Resource Considerations Amending the Eugene Code requiring that all costs associated with alley improvements be assessed will increase the financial burden to the benefitting properties. As an example, under the current Eugene Code for the proposed WUN alley LID it is estimated that the City's share of the total project cost of $1.6 million will be $116,000 or approximately seven percent. Because of the large number of alleys involved in this project, it is believed that the approximately seven percent City cost would be typical of alley improvement projects throughout the City. Amending the Eugene Code requiring that assessments be calculated on a block-by-block basis rather than a segment-by-segment basis will slightly simplify the assessment process while continuing to allocate the costs for each alley to the properties abutting and having direct access to the alley. Timing Per the Municipal Charter, ordinances amending the sections of the Eugene Code pertaining to the procedures and assessments for public improvements are effective six months after adoption by the council. The City Council initiated the WUN alley improvement project at its January 12, 2004, meeting. This action allowed staff to proceed with the public outreach, design and bidding of the improvements. It is anticipated that the council will adopt a resolution forming an LID for the WUN alley improvements in early April 2005. This will allow construction of the improvements to occur in the summer of 2005. Amendments to the Eugene Code must be adopted by early November 2004 to be applicable to the WUN LID. More importantly, staff has initiated a public communications plan for the WUN alley improvement project and information on individual assessments is likely to be the most frequently asked question. Therefore, the timely adoption of amendments to the Eugene Code will ensure a successful public communications plan. OPTIONS The options available to the council include: 1. Receive public testimony and proceed with adoption of an ordinance amending the apportionment of assessments for alley improvements. 2. Receive public testimony and direct staff to modify the proposed ordinance amending the apportionment of assessments for alley improvements. 3. Receive public testimony and decide not to proceed with adoption of an ordinance to amend the apportionment of assessments for alley improvements. L:\CMO\2004 Council Agendas\M040412\S0404123.wpd