Item 5: Ordinance Levying Assessments for West University Alleys

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Following mailing of the proposed assessment notices, staff received new information from property owners that indicated the assessments for four properties should be adjusted. For three properties, their areas were reduced, and for one property the use of the property was changed. Further detail is included in the report to the hearings official. The adjusted final assessment amounts would reduce the final assessment amounts for these four parcels a total of $26,954.86. There are two alternative methods to cover the costs for those adjustments. The first is to redistribute the assessment costs for each of the four affected alleys. Per Eugene Code, this would require a new public hearing, since the adjustments and subsequent cost redistribution would increase assessment costs for the other property owners in the four affected alleys. Also, holding a new public hearing would cause a delay in levying the final assessments, increase the financing costs for the project and increase assessments incrementally to all the property owners in the LID and to the City. If this method is chosen, the estimated increase in costs due to interest expense from the delay is about $8,500 per month. The second method to cover the cost of the adjustments would be for the City to pay the costs with funds from the Road Fund. If the City pays this cost, it will reduce the total assessable cost to $1,761,647. The ordinance levying assessments reflects the second method with a reduction of the total assessable cost of $26,954.86 and this amount being paid by the City. Assessment financing, a 10-year payment plan through the City, is available to all property owners within the improvement district as identified by Eugene Code, Chapter 7. Of the 160 properties in the LID, two (2) property owners qualify for a 5/6 subsidy under the low-to-moderate income subsidy program. This City-funded program only applies to owner-occupied residential properties in the LID. The total cost for the low income subsidies is $8,819.96, and is funded from the Street Subsidy Fund. RELATED CITY POLICIES The assessment costs will be distributed as outline the council-adopted Hearing Official’s Findings and Recommendations and Resolution forming the LID. COUNCIL OPTIONS Special assessment provisions adopted as part of an LID resolution cannot be modified during the final assessment process if they result in increased costs to the property owners. The final assessment hearing was to review the calculations to assure conformance with the requirements stated in the LID resolution and the Eugene Code. Per Section 7.187, the City Council can take the following actions: 1. Approve the Minutes, Findings and Recommendations of the Hearings Official of February 6, 2006 and adopt the ordinance levying assessments. 2. If after review of the proposed assessment and determination that the assessments should be modified, staff would be directed to publish a new notice and a public hearing must be conducted. New findings would then be prepared for City Council adoption. CITY MANAGER’S RECOMMENDATION The City Manager recommends approval of the Minutes, Findings and Recommendations of the Hearings Official and adoption of the ordinance levying assessments. L:\CMO\2006 Council Agendas\M060213\S0602135.doc