Item 5: Ordinance Levying Assessments for West University Alleys

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Objections to Proposed Assessment City of Eugene Improvement Resolution No. 4833 Alley Project Re: Proposed Assessment for Alley Paving- f}\\~ J.. <=t 566 E. 18th Ave., Eugene Tax Account No. 0600138 Account No. 200501001-1640 By: Lloyd Helikson, son of property owner Doris 1. Helikson, and on her behalf Property owners object to the proposed assessment for the following reasons: Introduction: As we understand, the alley project is the first time the city has ever mandated construction of alley paving with assessment of abutting property owners. The plan was apparently precipitated by student ""riots," none of which occurred near the Helikson property. On January 12,2004, Mark Schoening, City Engineer, told Eugene City Council that ""the project was slated to cost $1.6 million in its entirety and the estimated assessments were between $2,000 and $4,000." Ex. 1. The proposed assessment for the Helikson property is $15,948.81, about four times the highest estimated assessments. Assuming 160 assessed property owners for the assessment total of$I,786,857.33, the average actual assessment is about $11,168. Property owner generally objects to the assessment for these reasons. Specific objections of the property owner to the proposed assessment: 1) City has failed to submit sufficient evidence to support claim that proposed assessment is based upon "actual cost" of the paving of the alley adjacent to owner: a) The Oregon Constitution provides: "The total of all assessments for a local improvement shall not exceed the actual cost incurred by the governmental unit in designing, constructing and financing the project." Or Const Art 11, sec 11 b(2)( d). Oregon statutes defme ""actual cost" as ""all direct or indirect costs incurred by a government unit in order to deliver goods or services or to undertake a capital construction project." "'Actual costs' include, but are not limited to, the costs of labor * * * engineering, financing * * * administration, accounting* * *," etc. b) City is basing the assessment in part on an Engineering Charge for the alley project of$509,380.59. This amounts to about 28.5% of the total assessments for the project of$I,786,857.33. According to discussions with Steve Gallup of the City Engineering Office, the Engineering Charge was based upon '"Charge-Out Rates" for each city position. c) Use of the Charge-Out Rates to determine the amount of the assessment is not proper for several reasons. First, it does not comply with the City Charter requirement -, .