Item 5: Ordinance Levying Assessments for West University Alleys

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Testimony re: West University Alley Improvement Project January 30, 2006 Page 2 of abutting properties to bear the costs of staff time, as that would be assumed to be a sunk cost by the City already borne by property owners through the tax structure. Moreover, if precedence exists for limiting the apportionment of such administrative project expenses on street projects, then they should be similarly limited to an alley improvement. At its core, the basis of the alley improvement project was a Council-initiated response to rioting in the West University area a few years ago, with the intent of improving alleyways within the neighborhood. As noted above, the alleys abutting PeaceHealth- owned properties were already improved and fully paved with asphalt. So although PeaceHealth will benefit from, and bear its proportionate cost, for further improvements to these alleys, we contend that allocating all administrative costs to the total assessment is unwarranted, and that the City's costs should be internalized as the improvements were not initiated by the abutting property owners. PeaceHealth also requests that the City reconsider the weighting factors applied to the alley projects. For example, the alley east of Patterson/south of Broadway was given a weighting factor of 10 (applied to the front footage, based upon existing use). As noted above, this property is residentially zoned and used not as a for-profit pay parking lot, but for contractors periodically working on renovations at the Sacred Heart Medical Center. The Code notes this distinction in EC 7.475(d) as a use that is "a service and convenience" for the property owner, not as a profit-making venture. Yet this parcel was assessed the highest weighting factor (" 1 0"), whereas other residentially zoned properties with parking areas abutting the alley were given a weighting factor of only "3" (see Attachment 2). Similarly, the parking area north of E. 11 th Alley west of Hilyard is used primarily for valet parking patient cars during physician visits in the abutting Physician & Surgeon's Building. Because valet parking is provided at no cost (in fact, tips are not accepted) solely for the service and convenience of patients at the medical center, and not used as intensively as a for-profit parking lot, the parcel should therefore not be assessed the same weighting factor as a for-profit lot. Also, the parking garage south of the alley has its own fully improved lane providing egress to Patterson Street, with most ingress and egress movements being made off the main driveway on E. lih Avenue. The University of Oregon's Riley Hall, which abuts the alley on the north side, has a parking lot serving students and visitors. Yet the weighting factor of" 1 0" was again assessed on the PeaceHealth-owned properties, while a "3" was applied to the University parcel. In summary, we request that the City apply a lesser weighting factor to these properties, as is allowed under Code, and reduce the amount of staff administrative costs apportioned to abutting property owners as part of the assessed costs for the alley improvement project. Thank you for your thoughtful consideration. 2