Item C: Street Assessment Policies

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Work Session: Street Assessment Policy Meeting Date: March 9, 2009 Agenda Item Number: C Department: Public Works Staff Contact: Mark Schoening www.ci.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 a summary of the issues identified by the City Council at its June 16, 2008, work session. BACKGROUND Unimproved Streets There are approximately 75 miles of unimproved streets in the City of Eugene, or about 14% of the total 538 miles of streets in Eugene. Approximately 63 miles are unimproved local streets and 12 miles are unimproved arterial and collector streets. These are streets with soil, gravel, or asphalt mat surfaces. These streets typically have not been structurally designed, have few drainage facilities, and lack curbs, gutters and sidewalks. The cost of bringing all the unimproved streets in Eugene up to City standards is estimated to be in excess of $90 million. The City bears a portion of the street improvement costs including storm drainage improvements, intersection costs, some corner lot costs, individual lot frontage costs in excess of 100 feet, and other related costs that historically have been about equivalent to the property owner assessments. 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. River Avenue and Shelton McMurphey Boulevard 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. The Sixth Alley constructed this past summer is an example of an LID 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 Z:\CMO\2009 Council Agendas\M090309\S090309C.doc