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HomeMy WebLinkAboutResolution No. 4526 RESOLUTION NO. ~b A RESOLUTION INITIATING AND ORDERING ESTABLISHMENT OF A LOCAL IMPROVEMENT DISTRICT FOR SANITARY SEWERS,TRENCH REPAIR PAVING, IN PRAIRIE ROAD FROM BEL TUNE ROAD TO KAISER (JOB #~437) THE CITY COUNCil OF THE CITY OF EUGENE FINDS AS FOllOWS: A. Under ORS 224.020,224.040,224.050, and 454.215 the City may construct sanitary sewers within or without its corporate limits and do all work the City Council deems essential and proper for the construction and operation of sanitary sewers and trench repair paving. B. On March 4, 1991, the Eugene City Council held a public hearing to consider approval of the Highway 99 North Annexation and Urban Services Policy Agreement. The purpose of the agreement was to regulate annexations and make provision for urban services in the unincorporated portions of the Highway 99 North industrial area. The Council approved the following motion: "To direct the City manager to execute the Highway 99 North policy and annexation agreements; to seek ordinance changes by Lane County, rule changes by DEQ, and statutory changes by the legislature to implement these agreements; and to amend Section 4 of the Annexation and Urban Services Policy Agreement to reflect a tax differential rate that will cover approximately half the cost of a refinement plan." All the necessary steps outlined above have been accomplished. In April of 1991, the Industrial Corridor Community Organization, a Oregon nonprofit Resolution - 1 corporation and formally recognized community organization ("ICCO") and the City of Eugene (CITY), an Oregon Municipal corporation entered.into an agreement to develop a plan to provide a wastewater collection system and implement an annexation program for properties within the Highway 99 North Industrial Corridor area. The Annexation and Urban Services Policy Agreement stipulates that both developed and undeveloped properties outside the City limits and within the Urban Growth boundary of the Highway 99 North industrial area will have to submit a delay of effective date annexation agreement to the City of Eugene to connect to the wastewater system. Only properties requesting services have been included in the proposed local improvement district. All properties requesting service from the proposed sewer have submitted an annexation agreement. C. The City Council's determination to construct sanitary sewers and form local improvement districts to assess the property specially benefitted by the construction of a sanitary sewer is a discretionary act based upon the Council's assessment of what is necessary or essential for the public good. D. The City Engineer's report and Hearings Official's minutes, findings and recommendations presented to the City Council in conjunction with this matter and this Resolution ratify past decisions of the City Council regarding initiating the formation of the local improvement district and satisfy the requirement of Section 7.160 of the Eugene Code, 1971 (EC). E. Notice of the initial public hearing (June 4, 1997) regarding formation of the Resolution - 2 proposed local improvement district was published in the Register-Guard, a newspaper of general circulation in the City and the Highway 99 North industrial area on May 15, 1997. The hearing was postponed, and the City Engineer sent notice of the rescheduled public hearing (June 12, 1997) by first-class mail to owners of property in the contemplated improvement district as allowed by EC 7.165(2). F. As the Council's designee the Hearings Official conducted the public hearing required by EC 7.166 on June 12, 1997, at which time he considered the City Engineer's report, and the testimony and evidence offered at the public hearing. G. The City Engineer has called for bids on the proposed improvement and based thereon has determined the estimated total cost of the proposed improvement to be $1.1 million of which $711 thousand shall be assessed to, and borne by, the specially benefitted property as provided in EC 7.170 and 7.175. H. The proposed improvements shall be in compliance with, and in furtherance of, the plans and specifications prepared by the City Engineer in accordance with provisions of Chapter 7 of the Eugene Code, 1971, and applicable policies of the City of Eugene. I. Because the proposed local improvement district is located outside the City's corporate limits, the full faith and credit of the City shall not be pledged to pay the short- term or long-term debt incurred by the City for the construction of the sanitary sewers authorized herein except upon the Council's express approval, which approval is not granted in this resolution. Resolution - 3 J. To minimize administrative costs in processing the collection of system development charges at the time any specially benefited property is connected to the sanitary sewer, the City Engineer and Finance Officer are authorized to allow property owners to include within any assessment to be paid in installments, the system development charge required by the City at the time of assessment. K. The assessments to be levied against specially benefited property are for a capital construction project, shall not exceed actual cost, are for bestowal of a special benefit to specific property or to rectify a problem caused by specific property, shall be imposed in a single final assessment upon completion of the project and may be paid with interest over at least a ten-year period at the property owner's election. NOW THEREFORE, BE IT RESOL VEO BY THE CITY COUNCIL OF THE CITY OF EUGENE, a Municipal Corporation of the State of Oregon, as follows: Section 1. The City Council of the City of Eugene hereby adopts the above findings and incorporates them herein by this reference. Section 2. As used in this resolution the "property specially benefited" or "specially benefited property" means (a) a parcel, upon which there is all or part of a structure in which there is installed a plumbing fixture or otherwise determined by the City Engineer to be developed, and (b) when there is in the same ownership another parcel adjacent to the parcel described in (a) and the adjacent parcel is improved with features which are ancillary to the parcel described in (a) or the adjacent parcel is determined by the City Engineer only to be developable in connection with the parcel described in (a). "Property Resolution - 4 specially benefited" or "specially benefited property" does not include all or part of a parcel encumbered by road right-of-way, or by other restrictions of record which prevent development on the area so encumbered. Section 3. The Council hereby establishes a local improvement district comprised of the specially benefitted property within the area described in Exhibit A, attached hereto and by this reference made a part hereof, for the construction of sanitary sewers to serve the property specially benefited. Section 4. The City Manager is directed to award the contracts for the construction of the improvements described in Section 3 hereof and to construct all improvements in accordance with the City Engineer's prepared plans and specifications. The costs of such improvements shall be borne by, and assessed to, the specially benefited properties in the district, in accordance with EC 7.175. Included in the costs shall be the overhead costs specified in EC 7.170 and whatever other special costs, such as the interest on inter-fund loans used for short-term financing and the acquisition of interests in real property, or the costs of road repair if another source of revenue to pay for such road costs is not made available to the City, as are necessary to make the improvements. Upon completion of the improvement project, the final costs of the project will be calculated and the specially benefited property shall be assessed as provided in EC 7.185 through 7.265. The assessments to be levied for these improvements are hereby characterized for purposes of the property tax limitation in Section 11 b, Art. XI of the Oregon Constitution as assessments for a local improvement, not subject to the constitutional limitation of $10 Resolution - 5 per thousand of real market value. Notice of the intent to so characterize the assessments was sent to the affected property owners prior to the adoption of this resolution. Section 5. The City Council hereby declares that the construction of the improvements as set forth herein is for public purpose, is necessary for the public welfare, is authorized under the laws of the State of Oregon and the Charter and ordinances of the City of Eugene, and is ordered by this Resolution. Section 6. Any warrants or other short-term debt and other evidence of indebtedness authorized by Chapter 902, Oregon Laws, 1991, issued to finance the improvements shall be indebtedness for them and any fund which may be pledged as security therefor. They shall bear interest at a rate set by the City Manager at the time of issuance and shall be redeemed as provided by their terms. Section 7. Proceeds from unbonded assessments, improvement bonds, and foreclosure of improvement liens based on the improvements, from revenues appropriated for that purpose, and from ad valorem taxes, if any, levied to pay the warrants, shall be deposited in the fund that repays the cost of these improvements until the warrants or other short-term debt issued to finance the improvement are redeemed. Proceeds so deposited may be used only to pay warrants or other short-term debt issued to finance the improve- ments. Section 8. The Mayor, City Manager, and Finance Officer may sign warrants and other evidence of debt by facsimile signature with a check-signing machine. The Finance Officer shall cau'se the seal of the City to be printed on the warrants or other evidence of Resolution - 6 debt. The foregoing Resolution adopted the ~~~y of ~ ,1997. 11- ~1f7 City Recorder Resolution - 7 1704100001802 3437 MO BREWER BERNARD L & B M LE 90080 PRAIRIE RD EUGENE OR 97402 1704100001813 3437 MO DURBIN GERALD R & PEGGY S 2470 WILSON DR EUGENE OR 97405 1704100002300 3437 MO SIMMONS SCOTT A & BARBARA J 4657 THUNDERBIRD ST EUGENE OR 97404 1704100004303 3437 MO BEKINS MOVING & STORAGE CO POBOX 30728 SEATTLE WA 98103 1704100004400 3437 MO GEORGIA-PACIFIC CORPORATION 900 SW FIFTH AVE PORTLAND OR 97204 1704102402700 3437 MO SHERMAN VEROA %SHERMAN LEASING INC POBOX 706 EUGENE OR 97440 1704103100500 3437 MO DUNN ROBERT L TE 2165 NORWOOD ST EUGENE OR 97401 1704103100800 3437 MO EUGENE FARMERS COOPERATIVE 2690 PRAIRIE RD POBOX 1-K EUGENE OR 97440 1704103200100 3437 MO OBERLANDER HELMUT 0 &"NELLY 30085 FEDERAL LANE EUGENE OR 97402 1704103202900 3437 MO SCHUCK EDWARD B SR & G A 50% SCHUCK EDWARD B JR & N D 50% 26204 CLOVER RD HAYWARD CA 94542 1704100001809 3437 MO HAXBY MARY G 90064 PRAIRIE RD EUGENE OR 97402 1704100002100 3437 MO KGSP INVESTMENTS 90048 PRAIRIE RD EUGENE OR 97402 1704100004300 3437 MO ARMSTRONG EDWARD A & JEANNE %KEMPF RODNEY G & GLORIA J 279 LAZY AVE EUGENE OR 97404 1704100004305 3437 MO KEMPF RODNEY G & GLORIA J 279 LAZY AVE EUGENE OR 97404 1704100004401 3437 MO MORGAN LAND CO LLC 2600 PRAIRIE RD EUGENE OR 97402 1704102402800 3437 MO SHERMAN LEASING INC POBOX 706 EUGENE OR 97440 1704103100600 3437 MO DUNN ROBERT L TE 2165 NORWOOD ST EUGENE OR 97401 1704103100900 3437 MO CHAMNESS DAN W & URSULA M 2023 FLORAL HILL DR EUGENE OR 97403 1704103201700 3437 MO KUSHNER DAVID J 30086 FEDERAL LANE EUGENE OR 97402 1704103203000 3437 MO SCHUCK EDWARD B SR & G A 50% SCHUCK EDWARD B JR & N D 50% 26204 CLOVER RD HAYWARD CA 94542 1704100001812 3437 MO GENT BARBARA ANN LF EST 90094 PRAIRIE RD EUGENE OR 97402 1704100002200 3437 MO KGSP INVESTMENTS 2470 WILSON DR EUGENE OR 97405 1704100004302 3437 MO CHAMNESS DAN W & URSULA M 2023 FLORAL HILL DR EUGENE OR 97403 1704100004306 3437 MO CHAMNESS DAN W & URSULA M 2023 FLORAL HILL DR EUGENE OR 97403 1704102402600 3437 MO SHERMAN F LEROY & VERDA F POBOX 706 EUGENE OR 97440 1704102402900 3437 MO UNITED PIPE & SUPPLY CO POBOX 2220 EUGENE OR 97402 1704103100700 3437 MO WILSHIRE PROPERTIS-2 INC 776 SW MADISON PORTLAND OR 97205 1704103101000 3437 MO CHAMNESS DAN W & URSULA M 2023 FLORAL HILL DR EUGENE OR 97403 1704103201800 3437 MO TEMPLETON BRAD 27004 BRIGGS HILL RD EUGENE OR 97405 1704103203200 3437 MO OBELANDER HELMUT & NELLY 30085 FEDERAL LANE EUGENE OR 97402 1704103203300 3437 MO KOCH CRAIG & LOUANNE 1295 AUDEL LN EUGENE OR 97404 1704103203400 3437 MO KOCH CRAIG & LOUANNE 1295 AUDEL LN EUGENE OR 97404 1704150000100 3437 MO JOHNSON INVESTMENTS INC %JOHNSON LOUIS W & ANNE I 2435 PRAIRIE RD EUGENE OR 97402 1704150000300 3437 MO GEORGIA-PACIFIC CORPORATION 900 SW FIFTH AVE PORTLAND OR 97204 1704103203500 3437 MO MYERS WAYNE J & SUSAN LYNN 246 HOLLYVIEW AVE EUGENE OR 97404 1704150000403 3437 MO REAR'S MANUFACTURING CO 2140 PRAIRIE RD EUGENE OR 97402 FINDINGS AND RECOMMENDATIONS SUBJECT: SANITARY SEWER, TRENCH REPAIR AND PAVING IN PRAIRIE ROAD FROM BELTLINE ROAD TO KAISER A VENUE (JOB #3437) BACKGROUND On March 4, 1991, the Eugene City Council held a public hearing to consider approval of the Highway 99 North policy and annexation agreement. The purpose of the agreement was to regulate annexations and make provision for urban services in the unincorporated portions of the Highway 99 North industrial area. The Council approved a motion directing the City Manager to execute agreements and undertake other steps necessary to meet the conditions that would allow the City to begin constructing sewers in the area and allow property owners to connect to the sewers when they were completed. All the steps described in the Council's motion have been achieved. In April of 1991, the Industrial Corridor Community Organization (ICCO) and the City of Eugene entered into an agreement to develop a plan to provide a wastewater collection system and implement an annexation program for properties within the Industrial Corridor. This agreement provides that both developed and undeveloped properties outside the City limits and within the Urban Growth Boundary will have to submit a delay of effective date annexation agreement to the City of Eugene to connect to the wastewater system. As the City moved toward achieving the conditions outlined in the Council's motion, the City also began an interest survey among the property owners in the area, seeking to gauge the property owner's readiness to have sewers connected and be annexed to the City. The first petition received by the City was dated October 20,1994, which was followed by a city improvement response form dated Aug. 1996. The Industrial Corridor is generally that triangular-shaped area located within the acknowledged Urban Growth Boundary of the City of Eugene bounded on the west by the Eugene-Springfield Metropolitan Area General Plan Urban Growth Boundary, on the east by the Northwest Expressway, on the north by Awbrey Lane and on the south by the existing city limits, south of Beltline. The Industrial Corridor is a clearly defined area, caused primarily by the parallel northwest -southeast orientation of three highways and two railroads serving the area. The primary land use in the area is industrial, although there are other uses and some undeveloped property. The developed properties in the area are now served by individual on site sewage disposal systems regulated by Lane County and the Oregon Department of Environmental Quality. The City's policy, reflected in the Council's motion of March 4,1991, and refined since that time, is that all properties in the area should be served by the city / MWMC wastewater treatment system by the year 2000, and be annexed to the City by 2010. New development in the Industrial Corridor area is expected to connect to the sewer system at the time of development and receipt SANIT AR Y SEWER, TRENCH REPAIR AND PAVING IN PRAIRIE ROAD FROM BEL TLINE TO KAISER A VENUE - FORMA TION OF A LOCAL IMPROVEMENT DISTRICT Page 1 of a building permit, or as soon thereafter as a sewer system is available. Developed properties are allowed to choose the time when they will connect and be annexed. Only properties requesting connection to sewer services have been included in the proposed LID. All properties to be included in the LID will have submitted an annexation agreement. Based on the minimum necessary number of agreements and the terms of the 1991 agreement with the ICCO, the City Engineer initiated the project. Property owners were notified of the proposed hearing. The project was advertised and three bids were received. The bids were opened on May 28, 1997. The low bid was submitted by Eugene Sand and Gravel in the amount of $769,668.00. PROJECT The project includes the installation of 4151- feet of gravity sewer pipe from Beltline Road to Kaiser A venue. Properties to the north of Kaiser A venue will be served from a system in Irvington Drive. As of June 12, 1997, six property owners within the proposed project limits have signed annexation agreements and support the extension of the service. These owners represent ten individual parcels of land and approximately 21 percent of the project cost that can be assessed. Six other property owners, representing an additional twenty percent of the property that could be assessed responded positively to a recent survey. These property owners will be included in the local improvement district if they consent before the formation of the district. ASSESSMENTS The source of funding for this project is from direct assessments against those properties that will be included in the LID and through 8-inch equivalent assessments from those properties not included in the LID that will ultimately receive service from these improvements. All properties that have not signed an annexation agreement will be included in the computation of assessable costs if they might be served at some later date, but they will not be included in the LID, assessed or receive service until an annexation agreement is executed. Costs for the project will be apportioned on a per-square-foot basis for the lateral sewer, and on a per-each basis for the service connection points (service lines). The assessable costs for those properties not included in the LID will be born by the City of Eugene through the sewer fund until such properties are annexed and request service. At that time, an equivalent assessment will be collected, as provided in Eugene Code, ~ 6.476. Special Factors There are two factors in this particular local improvement district that are not usually found in the formation of a local improvement district. One unique factor is that the benefits of the improvement will not be made available to all the properties that could be served when the project is completed. In accord with the terms of the agreement reached between the City and the ICCO, property owners are allowed to delay connection with the sewers until some time after the SANITARY SEWER, TRENCH REPAIR AND PAVING IN PRAIRIE ROAD FROM BELTLINE TO KAISER A VENUE - FORMA TION OF A LOCAL IMPROVEMENT DISTRICT Page 2 project is completed. The second unusual aspect of the project is that instead of having the entire improvement constructed after the LID is formed, this LID involves the inclusion of cost for some already constructed sewers that will only become useful upon completion of the LID. Approximately $396,438.00 of the total assessable cost represents the share for properties adjacent to Prairie Road not wishing to receive sewer service at this time. These properties have been included in the computation of assessment unit costs. Approximately $360,128.00 of the assessable cost will be borne by the City. This represents cost associated with the oversize pipe and the prorated cost associated with the combined Prairie Road, Irving Road projects. The cost to resurface Prairie Road will be distributed among all properties that can receive service from this system. The cost will be broken into two components. Resurfacing cost associated with the main line sewer trench will be part of the lateral cost. The resurfacing cost of the service line trench will be part of the service cost. In 1996, a portion of this sewer system was constructed as part of Lane County's improvement project along Irving Road. Generally, properties along Irving Road from the Northwest Expressway west to 1900 feet west of Prairie Road will be served by this portion of the system. These properties where not assessed for this construction. Properties along Irving Road, that have not requested to be included in the LID, will pay an 8-inch equivalent assessment as they connect to the sanitary sewer. The sewer along Irving Road is an integral part of the sewer system that will provide service to this portion of Prairie Road. The assessable costs from the construction of both the Prairie Road bid and the payments to lane County for the Irving Road system construction are included in the calculation of the cost per square foot. This will provide an equitable distribution of the costs over the entire area served by the Prairie Road sanitary sewer system. Assessment Cost Costs listed below are the estimated assessment cost calculated from the low bid including a ten percent contingency allowance, administration charges, and other charges associated with the project, as is allowed in Eugene Code, S 7.175. The final assessment will be based on final contract costs, and other actual and direct costs attributable to the project. Based on the low bids, the estimated unit amounts on which to base the preliminary sanitary sewer assessment amounts are: Assessable Cost Prairie Road: Assessable Cost Irving Road: Total Assessable Cost: $ 698,868.58 $ 211,137.72 $ 910,006.30 SANITARY SEWER, TRENCH REPAIR AND PAVING IN PRAIRIE ROAD FROM BELTLINE TO KAISER A VENUE - FORMA nON OF A LOCAL IMPROVEMENT DISTRICT Page 3 Assessable Area Prairie Road: Assessable Area Irving Road: Total Assessable Area: 1,202,489.00/Square Feet 658,242.00/Square Feet 1,860,731.00/Square Feet Lateral Cost: Service Cost: $ $ 0.49/per square foot of assessable area 3,558.00/each The City Engineer proposes that, as with other assessments for sewer construction in the River Road Santa Clara area, property owners intending to connect to the sewers upon completion of the construction, should also be charged the Wastewater Systems Development Charge (SDC). This offers the advantage to the property owner of combining the SDC with the assessment, and the hearings officer joins in this recommendation. The SDC charges are composed of two elements, the local component and the regional component. The City (local) Wastewater Systems Development Charge in the River Road/Santa Clara/Highway 99 Area has been established as a specific rate of 2.5 cents per square foot of the total lot size. This rate is based on the developable acres in the area and on the trunk sewer, pump stations, and force main costs necessary to service this area and River Road/Santa Clara. The charge is a reimbursement for the City's portion of the wastewater system for this specific area only, and is charged to all new sewer users at the time they connect with the system. The MWMC (regional) Wastewater Systems Development Charge is a charge providing reimbursement to the MWMC for the cost of the wastewater treatment plant and associated systems. The MWMC wastewater SDC is currently in a 30-day public review period and is expected to be implemented by July 7, 1997. The City Manager will sign an administrative rule adopting the methodology and associated rates. All properties assessed within the district will be eligible for ten-year financing of the final assessment, and the SDC charges, through the City. Residential properties may be eligible for low-income deferral programs for those property owners who qualify. Qualification will be determined at the time of final assessment. PUBLIC HEARING Eugene Public Works Engineering staff provided the Hearings Official with a memorandum which outlined the information set forth above. A public hearing was held on June 12, 1997, beginning at 6:00 p.m. in the McNutt Room of the Eugene City Hall. Hearings Official Milo Mecham presided. A copy of the minutes of that public hearing are attached as Exhibit A. As described in the minutes, six property owners attended the hearing and asked questions concerning the project. The questions concerned timing and the specific plans for construction of the sewers. No member of the public expressed any opposition to the project. SANIT AR Y SEWER, TRENCH REPAIR AND PAVING IN PRAIRIE ROAD FROM BEL TLINE TO KAISER A VENUE - FORMA nON OF A LOCAL IMPROVEMENT DISTRICT Page 4 Other Communications On June 11, 1997 the City of Eugene received a letter from Dwight Forgey, General Manager of the Eugene Farmers Co-op. Mr. Forgey felt that the project was more expensive that had been expected, and recommended that the City delay construction and seek bids in a year in hopes of a better price. Mr. Forgey felt that, at the quoted assessed cost for his property, it would be less expensive for his business to remain on the existing private septic system, than to connect to the sewers. The engineering staff has examined the bids, and reports that, although the bids were higher than expected, there is no reason to believe that they will be less a year from now. Mr. Forgey's calculation of costs also did not include the reduction in costs that the City was able to produce by recalculating the total cost with the Irving Road dryline construction cost and service area included. Mr. Forgey also apparently did not calculate the long term costs of remaining on a private septic system, which will eventually have to be replaced. The Engineering Division staff have continued to discuss these issues with Mr. Forgey, including the revised costs and other issues, since the letter was submitted. FINDINGS AND RECOMMENDATION Notice of the public hearing was provided and all the property owners were given an opportunity to participate in the hearings. Property owners who will bear the cost for the proposed improvements were notified of the planned June 4, 1997, public hearing with the hearings official and the City Council session to establish the LID through a notice published in The Register-Guard on May 15, 1997. Letters informing property owners of the hearing and anticipated Council action date and notification to property owners of the intent of the City to characterize the sewer assessment as an assessment, not a tax, as required by ORS 305.583(5) were mailed on May 19, 1997. When the engineering staff opened the bids, and discovered that the project costs were higher than estimated, staff chose to cancel the June 4 hearing and reschedule for June 12, 1997. On May 30, 1997, staff sent a second letter notifying the property owners of the new hearing date, but a revised notice was not published in the Register Guard. All property owners did receive actual notice of the rescheduled hearing through the letters sent to them, as allowed in Eugene Code section 7.165(2). While the published notice of the actual date of the hearing specified in Eugene Code, ~ 7.165 as a method of notice to be given property owners was not provided, the alternative form of notice, mailing specific letters, gave the property owners more extensive and more certain notice of the time and purpose of the hearing and of their opportunity to participate. The public hearing itself was conducted in accordance with the relevant provisions of the Eugene Code. The Hearings Officer finds that the project is one for which the assessments are for local improvements as set forth in ORS 310.410 because SANIT AR Y SEWER, TRENCH REPAIR AND PAVING IN PRAIRIE ROAD FROM BEL TLINE TO KAISER A VENUE - FORMA nON OF A LOCAL IMPROVEMENT DISTRICT Page 5 1. The assessments do not exceed actual costs; 2. The assessments are imposed for a capital construction project which provides a specific benefit for a specific property or rectifies a problem caused by a specific property 3. The assessments are imposed in a single assessment upon completion of the project; and 4. The assessments allow the property owners to elect to pay the assessment with interest over at least ten (10) years. The Hearings Official also finds that, while the low bid submitted for the 1997 project is higher than the Engineer's prebid estimate, the higher bid is not grounds for a delay in the project. The higher than expected bid is attributed in part to construction issues associated with managing ground water and depth of construction. The Engineer has found that the unit prices for the construction are acceptable. The formation of the LID is consistent with the Annexation and Urban Services agreement. Under the City charter requirements, a simple majority vote of the Council forming the LID is all that is required for action. Therefore, the Hearings Official recommends acceptance of the low bid and approval of the formation of the local improvement district. 1?2:Ritted, Milo Mecham Hearings Official Dated: June 18, 1997 SANIT AR Y SEWER, TRENCH REPAIR AND PAVING IN PRAIRIE ROAD FROM BEL TLINE TO KAISER A VENUE - FORMA TION OF A LOCAL IMPROVEMENT DISTRICT Page 6 Exhibit A MINUTES Local Improvement District Sanitary Sewers, Trench Repair and Paving on Prairie Road from Beltline Road to Kaiser A venue Job # 3437 June 12, 1997 Public Hearing Hearings Official Milo Mecham convened the hearing at 6:00 p.m. He described the subject matter of the hearing and the procedures to be followed at the hearing. Present at the hearing representing the City of Eugene was City Engineer Les Lyle, and Engineering staff members Jeff Lankston, Jerry Behney and Terry Higgins. City Engineer Les Lyle began by providing a brief description of the project and its history. Discussions regarding the extension if urban services into the area began several years ago between the neighborhood group, the Industrial Corridor Community Organization (ICCO), representing property owners in the area, and the City of Eugene. In 1991, the Council approved a motion to directing the Manager to execute urban services and policy agreements to provide for extension of services and a schedule for annexation in the area. In April 1991 the ICCO and the City entered into an agreement to provide a wastewater collection system and implement an annexation program for properties within the Industrial Corridor. Extension of sewers into the area is contingent on sufficient property owners in the area agreeing to participate in the project by consenting to be annexed into the city and thus be eligible to connect to the sewers. Having obtained a minimum number of consents, and hoping to obtain more, the City initiated the project. City Engineer Les Lyle also explained that the project consists of an extension of sanitary sewers from Beltline Road north along Prairie Road to the southern edge of Kaiser A venue. Also included in the project will be completion of the currently unconnected sewer lines previously built along Irving Road. This dry line was built at the time that street work was being done on Irving Road by Lane County. It will be completed by establishing a connection with the proposed system on Prairie Road. Mr. Lyle emphasized that the initiation and completion of the project depended on a reasonable number of property owners consenting to participate and agree to annexation. Without a sufficient number of participants, the cost to the city from deferring collection of the project costs until the later date when the property owners might consent to annexation and connection to the sewer would be too high. Mr. Lyle described the lengthy process that had been followed leading up to the hearing. After initiation of the project, the property owners had all been notified that the proposed date of the hearing was June 4. When the bids were opened, the Engineering Division was surprised at the amount of all the bids, and the range of the bids. The Engineering Division staff investigated the bids and determined that, while they were higher than expected, there were valid reasons for the differences. The staff also determined that it was unlikely that rebidding the project would result in lower bids. During this investigation, the originally scheduled hearing was postponed. Property Minutes - June 12, 1997 Public Hearing Page 1 owners were all notified by mail of the rescheduled hearing date and the change in anticipated cost of the project. The City Engineer also described the method of calculating the cost of the project. To develop the portion of the final cost of the project that would be assessed to the participating property owners, the expected cost of the entire project, including the costs of the earlier construction of the Irving Road portion of the system, was calculated. From this the portion of the cost that would not be assessed was subtracted, and the assessable costs were divided by the area of all the properties that would or could eventually be served by the construction. The future users who are not immediate participants was included so that the present participants will not be forced to pay a higher cost for the system while later users would be charged less. Under the method adopted for calculating costs, property owners who connect to the sewer at a later date will be charged the same cost by way of the equivalent assessment as present property owners are being assessed, except that future connections will be required to also pay the accumulated interest on their share of the cost. The estimated cost for the construction of the sewer system is forty nine cents ($0.49) per square foot of assessable area for property within the proposed Local Improvement District. The cost of individual service points for each property is calculated in a similar way, where the estimated total cost of establishing service points is determined, and then the total is divided by the number of expected service points. Mr. Lyle finished his remarks by discussing the proposed inclusion of SDC charges with the assessment. Mr. Lyle described the nature of the two SDCs and explained that while the City is not obligated to include the SDCs in with the proposed assessment, this was the regular practice of the City. In this case, Mr. Lyle explained, there was no requirement that property owners connect to the sewer right away. Because there was no mandate to connect, there had been some discussion about the possibility of delaying the SDC until there was an actual connection. Mr. Lyle explained that the City did not have strong feelings on this issue, and would like to hear from the property owners as to which they would prefer. In response to a question from the hearings official concerning the Irving Road portion of the project, Mr. Lyle explained that the Irving Road work had been done earlier when the County was in the process of improving Irving Road. To save the cost of having to later disturb the newly improved street, the City took the opportunity to work with the County to install a dryline system at that time, anticipating that it would soon be connected by way of the Prairie Road project. Mr. Lyle agreed that the anticipated cost of the current proposed LID included the cost of what amounted to purchasing that system of drylines at its original cost plus interest, and connecting it to the remainder of the wastewater treatment system. Inclusion of the Irving Road system and area of service resulted in a decrease of the estimated per square foot cost of the improvement project from the previous estimate of fifty eight cents a square foot down to the current estimate of forty nine cents per square foot. The first member of the public to address the hearing was Mr. Steve Thorton. Mr. Thorton asked if the pump station to be constructed at the south end of the proposed improvement would serve other areas besides the area of the proposed LID, and if so how much of the cost of the pump was going to be attributed to the properties within the LID. City Engineer Les Lyle responded that Minutes - June 12, 1997 Public Hearing Page 2 the pump would serve other areas south of Beltline on Prairie as well. Mr. Lyle also explained that no part of the cost of the pump station would be assessed to the property owners in the LID. The pump station and other portions of the system above the equivalent cost of an eight inch line were paid by the City through funds collected by SDC charges. Mr. Thorton also asked how the City determined the number of connection points for each property. Mr. Lyle explained that the expected number was determined by examining the nature of use on the lot, the size of the lot and the owner's expectations of future uses on the lot. The usual assumption is that each lot will need only one connection. If, however, the parcel is unusually large, or has the possibility of developing further uses later, or has a larger than normal flow, the City would discuss with the property owner the possible need for more than one connection point. The next member of the public to address the hearing was Dan Chamness. Mr. Chamness' first question concerned the expected interest rate and the time allotted for payment of the bonds that would be used to finance the assessments. Mr. Lyle indicated that, based on current rates, the City anticipated that the interest rate would be approximately eight percent, and that the standard time for payment of the bonds was ten years. Mr. Chamness also asked about the relationship between the storm drain system and the SDC charges. Mr. Lyle explained that the SDC charges the City was proposing to include with the assessments were not related to any storm drain system or charges. Mr. Lyle explained that the SDC charges being discussed were related solely to the wastewater system. The regional sewer SDC went to the Metropolitan Wastewater Management Commission to pay the cost of the treatment plant and the regional system. Mr. Lyle explained that the method of calculating these SDCs had just been changed to include additional factors. For that reason, Mr. Lyle and the City Engineering staff were not able to provide an estimate of the SDCs to be charged for each parcel at the hearing. Mr. Lyle also explained the City's local SDC for collection system sewer services. This charge is calculated from the cost of providing sewer services to the local area. Mr. Lyle explained that, because the area was outside the city limits, the City had no jurisdiction over the area and was not charging a storm sewer SDC. Mr. Bob Dunn, who owns property that borders on Prairie Road and Irving Road, asked which sewer line his property would be connected to. Mr. Behney of the Engineering staff explained that Mr. Dunn's property would be connected to the sewer on Irving. Mr. Dunn asked if that was a dryline and, if so, when service would be available. Mr. Behney replied that it was indeed a dry line, and that the connection would be made when the construction on Prairie Road was completed. Mr. Jim Rear asked if delivery from the properties would be a gravity flow. Mr. Lyle indicated that it would be. Mr. Rear then asked how the cost of connection to the service line would be handled. Mr. Lyle explained that the City installed a service line up to the road right-of- way, and that the individual property owner was responsible for the rest of the connection on the private property. Minutes - June 12, 1997 Public Hearing Page 3 Mr. Mike Jensen asked why the cost of the stub line that provides connection to the individual properties was so expensive. Mr. Lyle explained that the major factor that made these lines unusually expensive was the depth of the line. At Beltline, the collection line was approximately 20 feet deep. Connections in his area had to have a riser put in to get them up to a reasonable depth so that they could run to the property line. Mr. Lyle also explained that the depth of the trench that needed to be dug, and the nature of the soil meant that most of the street would be affected by the construction. This led to a series of questions from several persons in the audience, including Mike Gent, concerning the phasing of the project and the potential problems with interrupting access to the private property. Mr. Lyle and Mr. Behney explained that the project would start north of Irving first, and would probably only interrupt one lane of traffic. The second phase would be under the Beltline overpass, and the third phase would involve work between Beltline and Irving. Mr. Lankston explained that it was City practice to discuss disruption issues with the property owners as the project construction proceeds to lessen the amount of disruption. A question was asked concerning the expected timing of construction. Mr. Lyle explained that, if the Council approved the proposed project, the city expected the contractor to begin work in July and finish in October. Mr. Lyle also explained that the actual date when the sewers would be available also depended on completion of the pump station at Beltline, which was a separate project. Mr. Lyle said that the City hoped to have that project completed at the same time. A question was asked concerning when the final assessment amounts would be known. Mr. Lyle explained that it took some time after completion of the project before this would be known because there were always some final cleanup and cost negotiation and other delays associated with careful preparation of the assessment. Mr. Lyle indicated that it might be sometime in February or March before the actual assessment amounts were known. Mr. Chamness wondered whether that estimate was accurate. Mr. Chamness indicated that he had not yet received any information concerning the cost of construction of the Irving Road street improvements. Mr. Lyle explained that the Irving Road project was a Lane County project, and that the City was not responsible for the delays in making known the assessment amounts for that project. Mr. Chamness expressed concern about the cost that such delays had for the property owners, because of the interest costs that accumulated during the delay. Mr. Lyle indicated that one of the reasons that the City wants to complete the assessment process as quickly s possible after completion of the project was to avoid making the property owners pay any more than the minimum necessary. The discussion turned briefly to the question of the best time for levying the SDC. There was a general agreement that it made sense to the public members of the audience to include the SDC with the assessment. Several persons, including Mr. Chamness pointed out that, as landlords, they would need to consult with their tenants before they took a position on that issue. p.m. There being no further matters to be discussed, the hearing ended at approximately 7 :20 Minutes - June 12, 1997 Public Hearing Page 4 MEMORANDUM June 12, 1997 TO: Hearings Official FROM: Les Lyle, City Engineer SUBJECT: SANIT ARY SEWER, TRENCH REPAIR PAVING IN PRAIRIE ROAD FROM BEL TLINE ROAD TO KAISER AVENUE (JOB #3437) Background On March 4, 1991, the Eugene City Council held a public hearing to consider approval of the Highway 99 North policy and annexation agreement. The purpose of the agreement was to regulate annexations and make provision for urban services in the unincorporated portions of the Highway 99 North industrial area. The Council approved the following motion: "To direct the City Manager to execute the Highway 99 North policy and annexation agreements; to seek ordinance changes by Lane County, rule changes by DEQ, and statutory changes by the Legislature to implement these agreements; and to amend section 4 of the Annexation and Urban Services Agreement to reflect a tax differential rate that will cover approximately half the cost of a refinement plan." All the necessary steps outlined above have been accomplished. This agreement (see attached Exhibit "A") stipulates that both developed and undeveloped properties outside the City limits and within the Urban Growth Boundary will have to submit a delay of effective date annexation agreement to the City of Eugene to connect to the wastewater system. Only properties requesting services have been included in the proposed local improvement district. All properties requesting service from the proposed sewer have submitted an annexation agreement (see attached Exhibit "A"). In April of 1991, the Industrial Corridor Community Organization, a Oregon nonprofit corporation and formally recognized community organization ("ICCO") and the City of Eugene (CITY), an Oregon Municipal corporation entered into an agreement to develop a plan to provide a wastewater collection system and implement an annexation program for properties within the Industrial Corridor. (See "Annexation and Urban Services Policy Agreement" - Exhibit "B"). The Industrial Corridor is generally that triangular-shaped area located within the acknowledged Urban Growth Boundary of the City of Eugene bounded on the west by the Eugene-Springfield Metropolitan Area General Plan ("Metro Plan") Urban Growth Boundary, on the east by the Northwest Expressway, on the north by Awbrey Lane and on the south by the existing city limits (see attached map Exhibit "C"). The Industrial Corridor has a unique urban geography as the result of the parallel northwest- southeast orientation of three highways and two railroads serving the area. There are several parcels of long and narrow dimension. Properties in the Industrial Corridor are currently served by individual on-site sewage disposal systems under permits from Lane County pursuant to rules and regulations of the Oregon Department of Environmental Quality. There is a mixture of land uses in the Industrial Corridor, although the primary use is industrial. Most of the property in the Industrial Corridor is designated for industrial uses in the Metro Plan. It is the desire of the City that all properties in the Industrial Corridor be annexed to the City by 2010 and serviced by the City (local) and Metropolitan Wastewater Management Commission (regional) sewer system by 2000. Both parties recognized that new development in the Industrial Corridor area should be connected to any available City sewer system at the time of development and receipt of a building permit. Project Description The project includes the installation of 4151-feet of gravity sewer pipe from Beltline Road to Kaiser Avenue. No further extensions will occur to serve properties to the north of Kaiser Avenue; they will be served from a system in Irvington Drive (see attached Exhibit "D" & "H"). As of this date six (6) property owners within the proposed project limits have signed annexation agreements and support the extension of the service. These owners represent ten (10) individual parcels of land and approximately 21 % of the project cost that can be assessed. Staff has received additional support for the project from six (6) more property owners. This information was obtained from a post card mail in campaign and follow up telephone conversations with property owners. This represents an additional 20% of the project cost that can be assessed (see attached Exhibit "L"). Bidding Results Three (3) bidders submitted bids for the 1997 construction project. The low bid was submitted by Eugene Sand & Gravel, Inc. (see attached summaries Exhibit "E"). Staff has throughly reviewed the low bid and have concluded it is acceptable. The low bid is' higher than the engineers estimate but this is attributable to ground water and depth of construction issues. As with previous local improvement districts (LIDs) within the RR/SC area, local wastewater systems development charges (SDCs) will be imposed and collected at the same time as the assessments for the 1997 LID. There are two sanitary SDC components: a local charge to reimburse .the City for its cost to construct major sanitary sewer collection facilities; and the regional charge required by the Metropolitan Wastewater Management commission (MWMC). Revenues from the local charge will be deposited to the City's sanitary sewer user fund and revenues from the regional charge will be transferred to MWMC. Authority to collect in this manner is outlined in Eugene Code (EC) 7.720(1)(c). These fees are subject to change. The Page 2 amount to be collected will be based on the fee in place at the time of final assessment. This charge is separate and distinct from the calculations of the special assessment. Public Notice Property owners who will bear the cost for the proposed improvements were notified of the planned June 4, 1997 public hearing with the hearings official and the City Council session to establish the LID through a notice published in The Register-Guard on May 15, 1997, well in advance of the minimum ten (10) days stipulated in EC 7.165. Letters informing property owners of the hearing and anticipated Council action date and notification to property owners of the intent of the City to characterize the sewer assessment as an assessment, not a tax, as required by ORS 305.583(5) were mailed on May 19, 1997 (see Exhibit "F"). . As a result of the project costs being higher than estimated, staff chose to cancel the June 4 hearing and reschedule for June 12, 1997. Staff sent a second letter notifying the property owners of a new hearing date. This letter was mailed May 30, 1997, well in advance of the minimum ten (10) day stipulated in EC 7.165 (see Exhibit "G"). The delay has allowed staff to communicate to property owners the new costs and to reconfirm which properties continue to wish to be included in the LID. Local Improvement District (LID) Staff is recommending that an LID be formed to assess all properties having signed an annexation agreement. The LID will include those properties having signed annexation agreements and that can be served by the proposed sanitary sewer in Prairie Road to be constructed this year. Assessments The source of funding for this project is from direct assessments against those properties that will be included in the LID and through 8-inch equivalent assessments from those properties not included in the LID that will ultimately receive service from these improvements. Per EC 7.175(2)(b)5c, the costs for the project will be apportioned on a per-square-foot basis for the lateral sewer, and on a per-each basis for the service connection points.(service lines). All properties having not signed an annexation agreement will be included in the computation of assessable costs but will not be included in the LID, assessed or receive service until an annexation agreement is executed per the "Annexation and Urban Services Agreement" (see attached agreement Exhibit "A"). The City of Eugene will bear the assessable costs for those properties not included in the LID through the sewer fund until such properties are annexed and request service. At that time, an equivalent assessment will be collected per EC 6.476. Page 3 Assessment Cost Costs listed below are the Engineer's estimate for the 1997 construction. The estimated costs reflect the low bid costs, 10 percent contingency of the contract costs, 5 percent administration charges, short-term financing costs, bond anticipation notes (BANs), costs ,for Engineering services, and other charges associated with the project which are allowed in EC 7.175. The final assessment will be based on final contract costs, actual Engineering service costs, actual short-term financing and BAN costs, a 5 percent finance administration cost, and other direct costs attributable to the project. Approximately $396,438.00 of the total assessable cost represents the share for properties adjacent to Prairie Road not wishing to receive sewer service at this time. These properties have been included in the computation of assessment unit costs. Approximately $360,128.00 of the assessable cost will be borne by the City of Eugene. This cost represents cost associated with the oversize pipe (greater than 8") and the prorated cost associated with the combined Prairie road, Irving Road projects. The cost to resurface Prairie Road will be distributed among the properties that can receive service from this system. The cost will be broken into two components. Resurfacing cost associated with the main line sewer trench will be part of the lateral cost. The resurfacing cost of the service line trench will be part of the service cost. In 1996, a portion of this sewer system was constructed as part of Lane County's improvement project along Irving Road. Generally, properties along Irving Road from the Northwest Expressway west to 1900 feet west of Prairie Road will be served by this portion of the system. These properties where not assessed for this construction. Properties along Irving Road, that have not requested to be included in the LID, will pay an 8-inch equivalent assessment as they connect to the sanitary sewer. The sewer along Irving Road is an integral part of the sewer system that will provide service to this portion of Prairie Road (see attached Exhibit "H"). The assessable costs from the construction of both the Prairie Road bid and the payments to lane County for the Irving Road system construction are included in the calculation of the cost per square foot. 'This will provide an equitable distribution of the costs over the entire area served by the Prairie Road sanitary sewer system. Page 4 Based on the low bids, the estimated unit amounts on which to base the preliminary sanitary sewer assessment amounts are: Assessable Cost Prairie Road: Assessable Cost Irving Road: Total Assessable Cost: $ 698,868.58 $ 211,137.72 $ 910,006.30 Assessable Area Prairie Road: Assessable Area Irving Road: Total Assessable Area: $ 1,202,489.00/Square Feet $ 658,242.00/Square Feet $ 1,860, 731.00/Square Feet Lateral Cost: Service Cost: $ $ 0.49/per square foot of assessable area 3,558.00/each In addition to the ab,ove cost the property owner have to pay a Wastewater Systems Development Charge (SDC). Wastewater SDC - City (Local) The City (local) Wastewater Systems Development Charge in the River Road/Santa Clara/Highway 99 Area has been established as a specific rate of 2 12 cents per square foot of the total lot size. This rate is based on the developable acres in the area and on the trunk sewer, pump stations, and force main costs necessary to service this area and River Road/Santa Clara. The charge is a reimbursement for the City's portion of the wastewater system for this specific area only. The City Wastewater SDC for new or existing development. Wastewater SDC - Metropolitan Wastewater Commission (regional) (see Exhibit "I"). On May 12, 1997, a letter and Fact Sheet was sent to property owners who may have interest in the project. The letter addressed requirements for connection to the sanitary sewer and annexation requirements. The Fact Sheet gave preliminary estimates for lateral and service line cost and included formulas for calculating Systems Development Charges (see attached Exhibit "J"). The MWMC wastewater SDC is currently in a 30-day public review period and is expected to be implemented by July 7, 1997. The City Manager will sign an administrative rule adopting the methodology and associated rates. Assessment Financing All properties assessed within the district will be eligible for ten-year financing through the City. Residential properties may be eligible for low-income deferral programs for those property owners who qualify. Qualification will be determined at the time of final assessment. Page 5 Other Issues: On June 11, 1997 the City of Eugene received a letter from Dwight Forgey, General Manager of "Eugene Farmers Co-op" (see attached Exhibit "K"). Mr. Forgey justified his decision not to support the project at this time and recommended that the City "rebid the project a year or so from now" in hopes of a better price. It is staffs opinion that postponing the project will not obtain lower prices, given the annual increase in construction cost. Staff recommends that the project go forward. Staff Recommendation Engineering staff has reviewed the low bid proposal and find it to be in order. The low bid submitted for the 1997 project is higher than the Engineer's prebid estimate. The higher bid is attributed in part to construction issues associated with managing ground water and depth of construction. The unit prices for the construction are acceptable. The formation of the LID is consistent with the Annexation and Urban Services agreement. Under the City charter requirements, a simple majority vote of the Council forming the LID is all that is required for action. Staff recommends adoption of the resolution for formation of the LID and approval of the hearings officials minutes, findings and recommendations for the sanitary sewers in Prairie Road. Page 6 " ,..,-, ~ Exhibit 6' A" Annexation and Urban Services Agreement Between: City of Eugene, 'an Oregon municipal corporation ("City") And: ("Property Owner") Date: RECITALS A. Property Owner owns real property in that:. certain area commonly known as the Industrial Corridor ("the Property"). The Property is more particularly described in Exhibit 1 \.Thich is attached hereto and incorporated herein by this reference. B. The Industrial Corridor has a unique urban geography as the result of the parallel northwest-southeast orientation of three highways and two railroads serving the area. There are several parcels of long and narrow dimension. The area presently receives fire protection from the Lane Rural Fire Protection District and storm drainage from the Junction City Water Control District, whose combined tax rate is currently 31% of the tax rate of the City of Eugene r s operational budget tax levy. Properties in the Industrial Corridor are served by individual on-site sewage dispos~l systems under permits from Lane County pursuant to rules and regulations of the Oregon Department of Environmental Quality. There is a mixture of land uses in the Industrial Corridor, although the primary use is industrial. Most of the property in the Industrial Corridor is designated for in.dustrial uses in the Eugene-Springfield Metropolitan Area General Plan ("Metro Plan"). c. The Industrial Corridor is located within the acknowledged urban growth boundary of the City of Eugene. The Metro Plan provides that the City of Eugene is the logical provider of sanitarY sewer services for development within the urban growth boundary. Fundamental Principle No.6, Page II-I. It is the parties' desire that the City of Eugene be given the ability to provide sanitary sewer services to the Property and the Property Owner be given the ability to receive such services. D. The Metro Plan provides that ultimatelY land within the urban growth boundary shall be annexed to the City and provided with a minimum level of urban services. Policy No. 15, Page II-3-6. See also Policy No.7, Page I1-8-4. It is the parties' desire that the City receive assurance that the Property will ultimately be annexed Annexation and ULban Se=~ices AgLee~ent - Page 1 . . ,.... to the City of Eugene and a minimum level of urban services be provided to the Property. The cost to Property Owner of sewer connection and annexation is substantial and may consume much of the capital needed for investment and development or redevelopment of the Property. Consistent with the above, it is the purpose of this Agreement to encourage Property Owner to construct improvements on the Property and/or to obtain sanitary sewer service from the City (or its delegate) and that the Property shall be annexed to the City with the effective date of annexation delayed for a period of ten (10) years from the date of sanitary sewer hook-up, or the year 2010, whichever shall be earlier. E. It is the expectation of the parties that all properties in the Industrial Corridor will be sewered by the year 2000. Both parties recognize that new development on the Prop~rty should be connected to any available City sewer system at the: time of development. Property Owner recognizes City'S obligatidn to the Environmental Protection Agency to connect improvements on the Property to the City sewer system. fj The City and the Industrial Corridor Community Organization (nICCan), an Oregon nonprofit corporation and formally recognized community organization, have previously entered into an Annexation and Urban Services Policy Agreement. One of the terms of the Annexation and Urban Services Policy Agreement is that the City agrees to execute this Annexation and Urban Services Agreement (nAgreementtf) upon Property Owner' s application for a building permit for the Property. G. Property Owner has applied for a building permit. AGREEMENT 1. Scope of Aqreement. The parties, in consideration of the recitals, mutual covenants and th~ir promises exchanged herein, agree to be bound by this Agreement in accordance with its terms for the purposes described in the Recitals. 2. Sanitary Sewer Connection. Property Owner hereby agrees to connect existing improvements on the Property to the City sanitary sewer system upon the earliest of the following: 2 . 1 When property owners who own property representing in excess of 50% of the assessed value of the properties in the service area of the branch of the proposed sanitary sewer system that would serve the Property either request service or have received service; Annexation and Urban Services Agreement - Page 2 C~\ o ~t.. J 2.2 When Property Owner is required to connect to the City sani tary sewer system because of Property Owner's ne'ed to make other than minor repairs, as defined by OAR, 340-71-100(93), (as such rule provided on January 1, 1991) to its septic tank disposal system and because the City sanitary sewer system is physically and legally available as defined by OAR 340-71-160(5) (f) (as such rule provided on January 1, 1991); or, 2.3 Immediately following the effective date of annexation. Property Owner understands that City may require sewer connection of new improvements on the property at the time of the improvement if sewer service is available. 3. Annexation. 3.1 Property Owner hereby irrevocably consents\ to and petitions for annexation of the Property to the City of Eugene under the terms and conditions described herein. Property-Owner agrees to apply for annexation of the property to the city of Eugene consistent with the terms and conditions contained herein and to obtain consents to annexation by electors residing on the property at the time of such application. Such application shall be made no later than the time of the Property's connection to the sanitary sewer system if legal authority exists to delay the effective date of the annexation to the times set out in Paragraph 3.2. If such legal authority is lacking at the time of sewer connection, Property Owner agrees to apply for annexation and obtain consents at the times set out in Paragraph 3.2. If Property Owner fails to apply for annexation at these times, the City may initiate annexation proceedings using the Property Owner's consent contained herein. 3.2 Except upon earlier application by Property Owner as provided in Paragraph 3. 3 below, annexation to the City of Eugene shall be effective, at the earliest: 3.2.1 When ten (10) improvements on the Property sanitary sewer system; or years have elapsed were connected to the since City 3.2.2 January 1, 2010. 3.3 Property Owner may initiate annexation at any time. The City agrees not to initiate or support annexation sooner than as described herein. '~ 3.4 The City agrees to waive annexation application fees otherwise payable to the city. Annexation and Urban Services Agreement - Page 3 3.5 The City agrees to pay, on Property Owner's behalf appl~ca~le annexation application fees to the Lane County Boundary Comml.ssl.on. 3.6 Property Owner agrees that the Atlnexation Consent in this' Agreement may be used by City, or any other person or entity, in the formulation of annexation proposals or petitions before the Eugene City Council, the Lane County Local Government Boundary' Commission, or any other entity with authority to approve annexations, consistent with the recitals, terms and conditions set out in the Annexation and Urban Services Policy Agreement between the Industrial Corridor Community Organization and the City of Eugene, dated , 1991. Consistent with the above, such annexation proceedings may be for annexation of the Property, or of the Property together with other territory. 3.7 In the event that the Annexation Consent ~in this Agreement is no longer valid or useful for its intended purpose, Property Owner agrees to re-execute and provide to the City.a new Consent upon demand by the City consistent with the terms and conditions contained herein. ,.#' 4. Tax Differential. Upon the effective date of annexation of the Property, the Property will be subject to City of Eugene ad valorem property taxation with a tax differential on the following terms: "-'c 4.1 The Property will be subject to the full City of Eugene property tax rate attributable to municipal capital improvement bonding and other non-operational expenditures; 4 . 2 The Property shall be subj ect during each year of the tax differential period to a separate, additional property tax rate, representing a rate resulting from spreading a tax base of $12,500 against the assessed value of all real property in the Industrial Corridor area for the tax year immediately prior to the effective date of the annexation. 4.3 The Property will be subject to a reduced property tax rate attributable to City of Eugene municipal operations. Such rate shall be equal 'to the combined tax rates of the Lane Rural Fire Protection District and the Junction City Water Control District for the tax year immediately prior to the effective date of the annexation. 4 . 3 . 1 In the event that either or both the Lane Rural Fire Protection District fire protection services or the Junction City Water Control District storm drainage services to the area are provided by a successor entity or entities, the rate shall be equal to that portion of the rate of the successor entity which related solely to the provision of fire Annexation and Urban Services Agreement - Page 4 " protection facilities and services or storm drainage facilities and services (as the case may be) to property in th7 Industrial Corr~dor area for the tax year immediately prlor to the effectlve date of the annexation. For example if: , (1) The City of Eugene was the successor agency to that portion of the Junction City Water Control District that provided storm drainage services to the Property, (2) The annual cost of providing storm drainage facilities and services to all properties in the Industrial Corridor formerly serviced by the Junction City Water Control District was $100,000: (3) The total assessed value of these I~ustrial Corridor properties subject to real property ad valorem' taxation. was $16,000,000, and (4) The assessed value of the Property. was' $500,000. Then: (a) The property tax rate for providing storm drainage facilities and services to the Property would be $6.25, and (b) The annual cost to the Property Owner 'would be $3,125. 4.4 The reduced tax rate as s6 calculated shall stay the same and remain in effect for nine years after the effective date of the annexation. In the tenth year and thereafter, the Property shall be subject to property taxation at the rate generally applicable to properties in the City of Eugene. 4.5 The refusal of the City to allow a tax differential of at least the amounts specified above shall be a material breach of this Agreement and shall be grounds for the Property Owner to refuse to sign this Agreement, to rescind this Agreement, and to enforce any other remedy available at law or equity. s. System Development Charge. Property Owner agrees to pay to the City an amount equal to the applicable sanitary sewer element of the systems development charge imposed by the City within the City of Eugene upon connection to the City sanitary sewer system whether or not the Property is annexed to the city. Property Owner agrees to pay to the City an amount equal to the applicable storm sewer element of the systems development charge imposed by the City Annexation and Urban Services Agreement - Page 5 " - within the City of Eugene upon connection to the City storm sewer system, whether or not the Property is annexed to the City. 6. city Dutv to Seek Policy Chanqes. Consistent with its obligations under the ApR.,\'" 25" , 1991 Annexation and Urban Services Policy Agreement, the City agrees: 6.1 To seek and obtain ordinance changes from Lane County on mandated parking lot and sidewalk improvements for property in the Industrial Corridor area that may be required as a condition of development. Such changes shall allow delay of these improvements at least until the effective date of the property's annexation. 6. 2 To seek and obtain all necessary policy and rule changes, if any, from Lane County and the Oregon Environmental Quality Commission or Department of Environmental Quality to al~ow minor repairs to existing septic disposal systems without mandatory connection to a sanitary sewer when the sanitary sewer is physically and legally available. 7. Waiver and Release. Property Owner holds the City, including its officers, agents, and employees, harmless from any dftmages or liabilities arising from the City's failure to provide a complete range of urban services to the Property after the effective date of the annexation and during the tax differential period. 7.1 This paragraph 7 shall not apply to facilities or services currently provided by the Lane Rural Fire ?rotection District or the Junction City Water Control District in the event that the City becomes the successor entity responsible for providing services formerly provided by either entity. 8. Modification in writing. This Agreement may be modified at any time only by the subsequent written agreement of the parties. 9. Bindinq Effect. This Agreement is binding on the parties and on their successors in interest, including heirs, purchaser, assignees, and lessees. 10. Covenants Runninq with the Land. Property Owner's agreements contained herein, including, but not limited to, the obligations to connect to the sanitary sewer system, to apply for annexation, to execute additional consents to annexation, and to pay systems development ,charges, are covenants running with the land and/or equitable servitudes. These obligations are binding on Property Owner and Property Owner's heirs, assigns and successors and run wi th the Property. This Agreement, or a memorandum thereof, may be recorded by either party in'the real property deed records of Lane County. Annexation and Urban Services Agreement - Page 6 .~ ~\ ~1 . 11. Execution of Aqreement bv Successors. Property Owner agrees to require any person or entity purchasing the property from Property Owner to sign this Agreement as a condition of sale. , 12. Remedies. Each party has the remedies allowed in law and in equity for any material breach of this Agreement. In addition, each party has the following specific remedies. 12.1 City Remedies for Failure to Sewer or Annex. In the event Property Owner fails to connect to the sanitary sewer system within the time set out in Paragraph 2, re-execute a consent to annexation as required by Paragraph 3.7, compel execution of this Agreement by a successor property owner as mandated by Paragraph 11, or perform any other duty imposed under this Agr~ement and such breach of duty results in a lack of connection of the Property to the sanitary sewer system by the time required under Para~raph 2 or failure of the Property to become annexed to the City of ~ugene by the time set out in Paragraph 3, the City shall have the following remedies: 12 . 1. 1 Occupancy and Buildinq Permits. The City may revoke occupancy or building permits provided by the City after execution of this Agreement, or may refuse to issue occupancy or building permits, and may discontinue the provision of sewer and/or water service to the Property. 12 . 1.2 PaYment of Tax Differential. In the event the breach of duty results in a failure of the Property to become annexed to the City of Eugene by the time set out in Paragraph 3, the Property Owner shall be liable to the City for the difference between the real property ad valorem taxes actually assessed against the Property and the real property taxes that would have been assessed against the Property had it been annexed to the City of Eugene on the date of the execution of this Agreement without a tax differential. Such damage liability shall continue so long as the Property is not annexed to the City of Eugene. 12. 2 Property Owner Special Remedies. In addition to any other remedy available at law or in equity, the Property Owner shall have the 'following remedies and obligations upon breach of this Agreement by the City in the following particulars: 12.2.1 Failure to Provide Tax Differential. In the event that the Property~is annexed to the City without the tax differential required under Paragraph 4, the City shall pay Property Owner or the Property Owner's successor in interest, Annexation and Urban Services Agreement - Page 7 ,. ,- , r.' .. - . I in proportion to their respective interests, the amount of City ad valorem real property taxes paid after annexation above the levels allowed under the tax differential set forth in Paragraph 4. In addition, the provisions of Paragraph 4.4 apply if the City refuses to allow the required tax differential. 12.2.2 Failure to Obtain and Maintain Parkinq Lot and Sidewalk Improvements Policy Chanqes. In the event the City fails to obtain the policy changes for parking lot and sidewalk improvements as required under Paragraph 6.1, Property Owner may rescind this Agreement after providing 30 days written notice to the city. Unless such policy changes are obtained within that time, all of the Property Owner's rights and obligations under this Agreemen~ shall cease without further act of the Property Owner. \ 13. Attorney Fees. In the event of any action to enforce or interpret this Agreement, the prevailing party shall be entitled to recover from the losing party, in addition to costs' and disbursements, reasonable attorney fees incurred in the proceeding, as set by the court, at trial, on appeal, or upon review. 14. Inteqration. This Agreement embodies the entire agreement of the parties with respect to this subject matter. There are no promises, terms, conditions, or obligations other than those contained herein. This Agreement shall supersede all. prior communications, representations, or agreements, either oral or written, between the parties. 15. Interpretation. This Agreement shall be governed by and interpreted in accordance with the laws of the state of Oregon. The parties. to this Agreement do not intend to confer on any third party any rights under this Agreement. 16. Jurisdiction and Venue. All actions relating to this Agreement shall be tried before the courts of the state of Oregon to the exclusion of all other courts which might have jurisdiction apart from this provision. Venue in any action shall lie in the Circuit Court of Lan~ County, Oregon. 17. Warranty of Title. Property Owner warrants that Property Owner is the exclusive owner of the Property. As used herein, "owner" means the legal owner of record, or where there is a recorded land contract, or memorandum thereof, which is in force, the purchaser thereunder. 18. Number, Gender and Caption. As used herein, the singular shall include the plural, and the plural the singular. The masculine and neuter shall each include the masculine, feminine and neuter, as the context required. All captions used herein are Annexation and Urban Services Agreement - Page 8 ;:. I.~, ) ,...-. :: '} ~ intended solely for convenience of reference and shall in no way limit any of the provisions of this Agreement. City of Eugene By Title Property Owner(s) \ STATE OF OREGON ) ) SSe ) County of Lane Personally , appeared before me this day of 19 _, the above-named , as for the City of Eugene, and acknowledged the act and deed on behalf of the City of foregoing to be Eugene. Notary Public for Oregon My Commission Expires: STATE OF OREGON ) ) SSe ) County of Lane Personally appeared before me this , 19___, the above-named acknowledged the foregoing to be act and deed. day of and ~ Notary Public for Oregon My Commission Expires: Annexation and Urban Services Agreement - Page 9 . . ..-,...... Exhibit "B" I, . , . Annexation and Urban Services Policy Agreement Between: Industrial Corridor Community Organization, an Oregon nonprofit corporation and formally recognized community organization ("ICCO") And: City of Eugene, an Oregon municipql corporation ("City") Effective Date: -4 - "2.1::> -9 \ RECITALS A. The Industrial Corridor is generally that triangu~ar-shaped area located within the acknowledged Urban Growth Bounda~y of the City of Eugene bounded on the west by the Eugene-Springfield Metropolitan Area General Plan (If Metro Plann) Urban Growth Boundary, on the east by the Northwest Expressway, on the north by AWbr,ey Lane and on the south by the existing city limits. A more particular description of the Industrial Corridor is attached hereto as Exhibit A and incorporated herein by this reference. B. The Industrial Corridor has a unique urban geography as the result of the parallel northwest-southeast orientation of three highways and two railroads serving the area. There are several parcels of long and narrow dimension. The area present~y receives fire protection from the Lane Rural Fire 'protection District and storm drainage from the Junction City Water Control District, whose combined tax rate is currently 31% of the tax rate of the City of Eugene's operational budget tax levy. Properties in the Industrial Corridor are served by individual on-site sewage disposal systems under permits from Lane County pursuant to rules and regulations of the Oregon Department of Environmental Quality. There is a mixture of land uses in the Industrial Corridor, although the primary use is industrial. Most of the property in the Industrial Corridor is designated for industrial uses in the Metro Plan. C. It is the desir.e of the parties that all properties in the Industrial Corridor be annexed to the City by 2010 and serviced by the City (local) and Metropolitan Wastewater Management Commission (regional) sewer system by 2000. Both parties reco~nize that new development in the Industrial Corridor area should be connected to any available City sewer system at the time of development. ICCO recognizes City's obliga,tion to the Environmental Protection Agency to connect improvements on Property in the Industrial Corridor area to the City sewer system. D. The Industrial Corridor area does not have the groundwater contamina tion present in the River Road and Santa Clara areas. The Annexation and Urban Services Policy Agreement - Page 1 ......~, "I. Industrial Corridor area has different soil types and fewer septic disposal systems than the River Rbad and Santa Clara areas. E. The cost to property owners of annexation and sewer connection is substantial and can consume much of - the capital needed for investment in development or redevelopment of the properties. The City wishes to encourage development or redevelopment of the properties in the Industrial Corridor. F. The parties desire to resolve issues that may arise as properties in the Industrial Corridor area annex to the City of Eugene, and develop or require sewer or other urban services. The parties have agreed on mutual obligations, rights, and responsibilities and desire to enter into binding long-term commitments for their 'mutual benefit. AGREEMENT \ 1. Scope of Aqreement. The parties, in consideration of the recitals, mutual covenants and their promises exchanged herein, -agree to be bound by this Agreement in accordance with its terms for the purposes described in the Recitals. 2. Obliqations of the city of Euqene. 2.1 The City, in cooperation with ICCO, agrees to seek from Lane County the amendments to the UL Urbanizable Land zoning subdistrict attached hereto as Exhibit B. If Lane County fails to adopt these changes to the UL Urbanizable Land zoning subdistrict, or changes otherwise agreed to by the parties hereto, within a reasonable period of time, neither party shall be bound by the provisions of Paragraphs 2 and 3 of this Agreement. , 2 . 1. 1 In the event that Lane County repeals or adopts a material change to the UL urbanizable Land's zoning subdistrict after its adoption, which repeal or change is not supported by both parties to this Agreement, neither party shall be bound thereafter by the provisions of Paragraphs 2 and 3 of this Agreement. 2.2 The City agrees to enter into t:he Annexation and Urban Services Agreement, attached hereto as Exhibit C and incorporated herein by this reference with each property owner in the Industrial Corridor upon the property owner's application for a building permit. 2.2. 1. Prior to 2011, unless otherwise agreed by the City and the affected property owner, the City will not initiate or approve annexation requests before the City governing bodies or initiate or support annexation petitions Annexation and Urban Services Policy Agreement - Page 2 '. ,......... I or resolutions before the Lane County Local Government Boundary Commission for property in the Industrial Corridor area which annexation proposals are inconsistent with the Annexation and Urban Services Agreement. This means, among other things, that the delayed annexation and tax differential provisions of the Annexation and Urban Services Agreement are available to any property owner in the Industrial Corridor area who seeks annexation before 2011. 2.2.2. Prior to 2011, the City will not initiate, approve or support annexation of property in the Industrial Corridor are~ to the City unless the affected property owner has previously signed the Annexation and Urban Services Agreement, and such annexation is consistent with the Annexation and Urban Services Agreement, or has otherwise voluntarily consented to the annexation. It is the~intent of the parties that the City not involuntarily annex~property from the Industrial Corridor area or use the consent. or annexation application allowed in an Annexation and Urban Services Agreement to obtain a double or triple majority annexation of other property to the City. 2.2.3 Unless compelled by state or federal law, the City may not compel connection of existing improvements on property in the Industrial Corridor area to the City sewer system except as provided in Paragraph 2 of the Annexation and Urban Services Agreement. . 2.2.4 Individual Annexation and Urban Services Agreements may be modified only by mutual consent of the affected property owner and the city. 2.3 The City shall initiate a refinement plan to the Metro Plan for the Highway 99jAirport vicinity, including the Industrial Corridor area, during 1991 or 1992, to be completed by 1995. 2.4 The City, in cooperation with ICCO, agrees to seek ordinance changes from Lane County on mandated parking lot and sidewalk improvements for property in the Industrial Corridor area that may be required.as a condition of development. Such changes shall allow delay of these improvements until the effective ,date of the property' s annexation. Such changes shall be a condition precedent to the enfo~cement of the property owners' duties and obligations under the Annexation and Urban Services Agreement described above. 2.5 The City shall review the effect that lot configuration and sewer routing have on sewer assessments. Specifically, the City shall give consideration to amending those City POlicies which have the effect of requirjng a property owner to pay for more than Annexation and Urban Services Policy Agreement - Page 3 , the property owner's equitable share of the sewer system due to unusual lot configuration or the property being adjoined by more than one lateral or trunk sewer line. 2.6 The City, in cooperation with ICeo, shall seek all necessary policy and rule changes, if any, from Lane County and the Oregon Environmental Quality Commission or Department of Environmental Quality to allow minor repairs to existing septic disposal systems without mandatory connection to a sanitary sewer when the sanitary sewer is physically and legally available. 2 . 7 The City, in cooperation with Ieeo, shall seek passage of legislation during the, 1991- legislative session that would allow a discretionary delay in the effective date of annexation for up to ten years and that would make annexation contracts binding on present and future property owners and tenants of a lot~r parcel that is the subject of an annexation contract. 3. Ob1i ations of the Industrial Corridor Communi t 3.1 IceO, in cooperation with the City, agrees to seek ordinance changes from Lane County to the UL Urbanizable Land zoning subdistrict consistent with Paragraph 2.1 above. 3.2 IeeO agrees to participate in the public participation and review process for the Highway 99/Airport vicinity refinement plan. 3.3 Iceo, in cooperation with the eity, agrees to seek ordinance changes from Lane eounty on mandated parking lot and sidewalk improvements for property in the Industrial Corridor area required as a condition of development. Such changes shall allow delay of these improvements at least until the effective date of the property's annexation. 3.4 Ieeo, in cooperation with the City, shall seek all necessary policy and rule changes, if any, from Lane County and the Oregon Environmental Quality Commission or Department of Environmental Quality to allow minor repairs to existing septic disposal systems without mandatory connection to a sanitary sewer where ~ sanitary sewer is physically and legally available. 3.5 IeeO, in cooperation with the eity, shall seek passage of legislation in the 1991 legislative session in a form proposed by the ei ty and approved by Ieeo, which approval shall not be unreasonably withheld, that would allow a discretionary delay in the effective date of annexation for up to ten years and that would make annexation contracts and consents binding on present and future property owners and tenants of a lot or parcel that is the subject of an annexation contract. Annexation and Urban Services Policy Agreement - Page 4 ,.... ...t n n '--' 4. Good Faith Neqotiations. If any of the purposes of this Agreement cannot be accomplished, or the described ordinances, administrative rules, or statutory amendments cannot be obtained, despite the best efforts of the parties, then the parties agree to negotiate in good faith toward a new or modified agreement that would best accomplish the goals and purposes of this Agreement. CITY OF EUGENE, an Oregon municipal corporation 112?;1~fl7 .~ Annexation and Urban Services Policy Agreement - Page 5 INDUSTRIAL CORRIDOR COMMUNITY ORGANIZATION, an Oregon ::~pr~~ ~_rpoction9--- Title: pre~ent t ' . e eorgi 'c.corporation) By: ~,,/~ ~ ---- Member (States Industries, Inc.) By2~r-Q~ Member (Seneca Sawmill Company) B :tlA M mber lachly-Lane County -op lectrical Association) By~4~ Member (Bernard L. Brewer) i f jl "-----/ f - ---- --T--! 'I I I !/---__ LJ II Ii f/ ,I il II I I' I' I \\ " 1- I II- II '---- 1 \\ ----, \\ "-- ,-__i\_ __ --'---~'~~," I I \\ T -'-- '.,1 , L_-,~j - -_oj 9~.. I a, ~ ,~ tt ..t \\ : '\ 't \ \ J \, .. \\ .. \\ I I, ... \\ 4 ' ~ .r--:I' ' '" II i ' .--~I' j ---\-------- I: I , II : ~r---J .4.--11 I T il~-rll II I ' I I, I . r _..:::::~:..~._~ :1 I; --.:-_- ! ...-- i I ---~I il II I, I I ._ I ---1 )';_0"~ -- ~:::-' ,...:}"l::.1. ':;~:~:':< >~L::> ,,<:1.: ~::-: ' -.... --'-'f.i~-:~- , : Dl;lVff' 001l'lttll ,!f~';;- .:::~<i'-:' . f- 'J, - , " ~ : iT", - I --J I- I r'T-/1. \. ';' __ I ----:-,-;-~::"7~-'-:~ '/ oifj+--:-'" r_ ~ ;-:-_~ \: iii;' g .~hfL ~:~~ t"';;T~- ;j,i;':~'.:"','" ,~-.Jt, '~",TIt,,"'''' I,~,~.....:' ,t~1 " .,<1' '"~'l''' I ".\f" .. ,::' " rJIo' ~y,-. ;;t"" t;lJi2~ J;'1z;~j; i&ni'. ,;~~'-"'oI,-,,-';io..:V"" ' ~~:~F:-~ '~~~fl;1I~~'~ j_ ,\ '..LRIU1,::- ",1;,,:> ,t:'.1 rT~,' ':i ::?J5i~i7'.J ~,' ~ 'I. ,:' ,rD -..! [f .:- .-- ~ Jf~h~tu~-r . L 11-'::;-- _PlI"'p'-i"t3~~ -. :gd~il:~1!: . \_ ~\ ''1..'('' '.-1; S I .....1;...J...l..-:..~ i :: iC' ~:1 ;::;!~ FiEJ : -'- vEIl'" .\,~~~1f!;:; '(:h<~';- ~ :~f~~:' \ .-. r-"'" - ~ 11[ r-t~A\-'~ "tJOl .. - ~~ ~4..1 . ~ % \ \ Nn.".. Ir- I~ I~ i~cr;;,?t~!;~~\~~~i;'I~t~~".~. ". J en ~ I ~ l\j, , B ! I i ./~ ~# , ,/'J ~ ~~ // .;/ ~ I ~, :~ , ! , 'P'----.-t 0, . " ~ , I I ! I ~ ! ,. I J. : I! ~. ~ r 1.......-11 - 4- .. - ~ ~ I II I ~ j . --<;; ~/ ~'f/)~ ~'9:I.~ :.----~ ~ -:;:::.--- ~ ~ =- ~ .... ~ ~ ~ al ._-~~~~ h_ ---._----~-_..- - ~ l) f en (') I ..p... ~ ~ ~ !i - - r -ta- ;~;l;:~1~1~II:i\~:.C~.I~~~;i/il~.I~:~~\n IIICh~J) l'rol'<l.Icd LI,cr11 Sewer LincA ror Riwr Rnldlnd Sln," C1arl nllin. I Inch. 1.200 rtel Ml/p H..'i: Exlstlnllllnd I'l'IIpnsl!d Wllstewatn Collection Sys!t:m~ Suntu (Juru IInd IIIghwuy 1)1) Induslrllll Arells Slully 1.,,1 Majnr SY"CIII ArC" Ilnun.tary Da,"1I Ilnu,,,IQry S"ldl."", IlnulI,lary ('IIY 1.11111.1.111,' '''v-..- ...... ('ropn'cd Preuure Linc wilh I'i"" Siu Inlnchc, ;r:= MI,;i>r Sy.te'm Arel nuin NUl11her /, Suh,nuin Num!>.'r WS.12 l'rol'<"cd Sewlge ('lilliI' S,.,ion Ind I~S, Num,,"'r Exi.tilli Scw,'r Lin,',' wilh l'iJ'.' Si1'" inlnch.. (AIlLillc. ShnwlI wllhnu' S,ZC Arc 8.llIch nr Lcu) ~;.i' I I I I =<- I'I \._J l) _J, C OJ () Exhibit "E" --' IQ :J ~ 0- III 0' -'. :J 0 ::l V1 III ::r VI ~ n OJ 0 :J --' :J 0... V1 lJl C r~ P<> '0 I ""1 n c L> n "'"1 0 C'~ AI :J r < rt D:I 0 ~ ""1 6 ::I AI C ~ n 9] n rt 0 ....... 0 ::I ""1 n ~ ....... :J n \ " m " om ~6 > n g,~ ~. ~~ C) m - - a:j ~:I: ~~ o"TI Z - - m > en m tD 6 - - - - - 1- - - :.- ~ ~ tit ~ :.- r- m ~ tit ~ -- > r- ~ ~ n1 .. Co) - I~ tit ~ ~ ,~ ~ 6" N a; - -.() ~.... .? mO ---.::) ~ +~ >r. ,{:" ~ r- (\., &; .:j !\l 0 ___." L __._" ___a , ..._---(:'<-.. ~'- -- 0- --- ()_. ( , i' \ 'oJ f::. ro. ~(i III m JJ :J om lO -08 -. ~a ::J q.. (t) (t) ., 3: ::J OJ < to N !.Xl OJ \0 C. to ~ --J Q) 0" ~ 0 ., " en ::r (t) CD ~ Tl co "'"1 o OJ Cl.. ~ OJ '< "U a ~. z c 3 0- ct) :1 "U a ~' VI OJ :J r~ OJ .. < G o CT =tt; W ~ u.) --J V1 III t: ro "1 c-t -"! III ::l n :)' .. co o OJ ~, "'"1 ~. ::I :-u .. OJ .. III :;a o OJ o. -I) "1 o 3 OJ III rt ::l CD rt- o ^ OJ CD .. if) mmffiO ~Jl ~t Q) c ~. '-J co Q) ce.g chlD-oo N::lGl- ::Jo L) lD~ III m :~ -- 0 ~J3 :!.o (~ ::J~ :D_Gl CO(J) .... ::l ~:g(l) [)- ( \ ( ~ c Exhihit "F" Public Works Engineering May19,1997 City of Eugene 244 East Broadway Eugene, Oregon 97401 (541) 687-5560 (541) 984-8410 Fax SU8JECT: SANITARY SEWER IN PRAIRIE ROAD FROM BELTLINE ROAD TO KAISER AVENUE. (JOB #3437) Dear Property Owner: On May 15, 1997, the improvement project to construct sanitary sewers in Prairie Road from Beltfine Road to Kaiser Avenue was advertised. This letter is to notify you of the improvement hearing concerning final approval of the proposed improvements. The hearing will be held at the following location and time: When: Wednesday, June 4, 1997 - 6:00 p.m. Where: City Hall - McNutt Room 777 Peart Street Eugene, Oregon The hearing will be conducted by a hearings official who will establish findings based, in part, on testimony. These findings will be submitted to the City Council by staff at their June 23, 1997, 7:30 p.m. meeting. - Our records show that you own property within the improvement district of this project. The tax lot numbers are shown on the address label above. Please call this office if you do not own this property or have any financial interest in it, so that we may contact the correct owner. Exclanation This improvement project was initiated by the City Engineer under provisions of the Eugene City Code 7.160(8) and conditions outlined in the April 25, 1991, Industrial Corridor Organization Agreement with the City of Eugene. The project will be paid for in part, by an assessment of the property owners within the improvement district. No assessments will be levied until completion of the project. 1) The project was initiated by the City Engineer on March 6, 1997 based on requests submitted by property owners that will take service from this improvement. 2) 'Staff prepared plans and specifications, and called for competitive bids for the construction of the improvement. May 19, 1997 Page 2 3) Based on low bid cost, City staff will compute preliminary assessment costs and will present those costs at the improvement hearing. 4), As required by ORS 305.583(5), the special benefit assessments for this project will be characterized by the City Council as an assessment for local improve- ments. Pursuant to ORS 305.583, within 60 days of this notice any ten interested taxpayers who disagree with this characterization may file a petition with the Oregon Tax Court. 5) The City Council, or a hearing official, must hold an improvement hearing prior to award. Imorovement Hearinq on Award of the Contract A hearings official will hear and consider testimony from property owners effected by the improvement, objections and remonstrances from opponents, and support by proponents. All written material to be considered by the hearings official must be submitted to the City Engineer1s office no later than 12:00 noon, Monday, June 2, 1997. The City Engineers office is located in Public Works Building, 858 Pearl Street, Eugene, Oregon. You are also requested to notify the City Engin'eer's office if you plan to attend, the hearing by writing or calling, 682- 5590. IF NO PROPERTY OWNERS PLAN TO ATTEND, THE HEARING WILL BE CANCELED. Further Information If you have any questions about the proposed improvements, estimated costs, assessment, or other concerns that may be of interest to you as a property owner, please contact Jerry Behney or Jeff Lankston in this office at 682-5560. The meeting location is wheelchair accessible. For the deafor hearing-impaired. an interpreter or closed-loop system can be provided with 48 hours notice. Spanish-language interpretation will also be provided with 48 hours notice. To arrange for these services, please contact Lynn Brogden, at 682-5238. -/c -1 t Les ~.E. City Engineer ~ Public Works Engineering Exhibit "G" May 30, 1997 City of Eugene 244 East Broadway Eugene, Oregon 97401 (541) 687-5560 (541) 984-8410 Fax SUBJECT: CONSTRUCTION OF WASTEWATER SEWERS IN PRAIRIE ROAD BETWEEN BELTLINE ROAD TO KAISER A VENUE - JOB #3437 Dear Property Owner: The City of Eugene opened bids for the above referenced project on Wednesday, iYlay 28, 1997. The low bidder was Eugene Sand & Gravel ($769,668.00). The other two bidders were Wildish Construction Co. ($1,577,422.00) and Dan Allsup Contractor, Inc. ($2,216,780.00). The low bidder's prices were used to calculate the estimated assessment cost, (actual cost will be calculated when the contractor has completed the work). A sewer cost fact sheet is enclosed showing the major components of the estimated wastewater sewer assessment, for your property. Because the estimated cost is higher than anticipated, the City would like to reconfirm your support for the project. Enclosed is a postcard with pertinent questions relating to the project. Please review the questions, respond appropriately and mail the card back to the project office so we can have a permanent record in our files. In order to collect this information as soon as possible I would also like vou to call me before .June 4. 1997 at 682-5551 and ~ive me vour restlonses. On May 12, 1997, you were mailed an annexation agreement to sign so that you may connect to the wastewater sewer system. If you have not done so please respond so the City can determine which properties will be connecting to the sewer system. Finally, given the time needed to reassess the interest in the project, we have postponed the Public Hearine orieinallv scheduled for .June 4. 1997. The hearing will now be held at the following location and time: WHEN: \VlIERE: Thursday, June 12. 1997 - 6:00 p.m. City Hall - McNutt Room 777 Pearl Street Eugene, Oregon Please call me at 682-5551 if you have any questions about the project or assessment cost. If you have questions regarding the annexation agreement please contact Becky Taylor at 6&2-5488 in the Planning Division. Sincerely. ;/?-bf/';j- fi~ Y;e~ Behney Project \;1anager l.j:' proJc.:CLS'[lroJ- -, ~--I3 7' c:orrcsp'upd:udol.ltr ~~~."'.' ...;~/. Exhibit "H" . ;;;;... SC-31 , ;\\ ! , UI \ \, " \ .r--l---~' \ I BN-l'7 ~4 \ ~ 12 I I I W~I RN-l:=i I :/ I' 1 .,( I I h-~ ~ J ;,--- , . '..r Exhibit "I" SDC INFOR~IA TION FOR ESTIJ\;IA TING 1\'I\V1\'IC \V ASTE\V A TER SDC FEES USINGivlWivlC PROPOSED CHANGES (July 7, 1997) WASTEWATER SDC - METROPOLITAN WASTEWATER MANAGEMENT COMMISSION (REGIONAL) The Metropolitan Wastewater Management Commission (MWMC) was established in 1977 when Lane County, Springfield, and Eugene developed an intergovernmental agreement forming a regional wastewater system. This agreement provides that MWMC establish a charge to recover or "equalize" the local investment in the region's wastewater treatment capacity. In 199P, a facility equalization charge was adopted by the City of Eugene that was based on equivalent dwelling units. Based on a recent review of the MWMC Methodology by a Citizens Advisory Committee, a more equitable calculation method and methodology was proposed which is currently under review in a public comment period, slated to close June 28th. This method measures the wastewater treatment capacity based on four components: average flow, peak flow, biochemical oxygen demand (BOD)and suspended solids (55). If adopted, the MWMC proposed methodology will be effective July 7, 1997. This charge is paid by property owners and developers for new first time connections, or for expansion of existing commercial and industrial development that increased demand on the wastewater system. The rate is based on combined costs for recovery of past local investment in the region's wastewater treatment capacity and for future. capacity improvements. To determine the MWMC Wastewater SDC, reference the "Transportation Trip Generation / MWMC Wastewater FEU Table" located on the reverse side of the sample SDC worksheet. For Wastewater, this table represents the industry standard based on the amount and strength of discharge for a typical development in a specific land use category. If a proposed development type is not represented in the table, the City will determine the rate. STEPS TO CALCULATE MWMC sac UNDER PROPOSED JULY 7, 1997 METHODOLOGY 1 Select a "description" for the proposed development. 2 Determine the "Flow Estimation Units (FEU) for the proposed development. 3 Determine the FEU Cost for the proposed development. 4 Multiply the corresponding FEU Cost for the proposed development by the. number of FE Us to determine the MWMC SOC. EXAMPLE CALCULATIONS. Class Code 030 200 210 710 Description Truck Terminal Apartments Single Family Ow. Professional Office Unit Type TGSF DU DU TGSF # of Units X 13.000 25.000 1.000 20.000 x x x X FEU Rate = MWMC SDC $208.32 = $2,708.00 $243.04 = $6,076.00 $277.76 = $278.00 $208.32 = $4,166.00 ADMINISTRATIVE FEES The City Administrative fee is 5.0 % of the subtotal of all SDCs to be collected prior to adding the MWMC administrative fee of $10.00 per permit. The MWMC administrative fee is $10.00 'regardless of the subtotal. ~ NOTE: SDC fees are rounded to the nearest dollar for each section total. APPUCA nON DATE: CITY OF EUGENE - SYSTEMS DEVELOPMENT CHARGE WORKSHEET 1. Tax Lot #: Buildin Address: I La #: Owner Name: Owner Address: 4 . .. D~?E'i:J~goS::;e~~~~~~~:~~~~;~t .=~;~~~~;~(O~ki','. . ..~::!~:~~~;~ M>=Multi-Famity Plumbing FtXtIJreUnrts(PFUJ.'~:-J~.' . ..~~.:' _ ;-", ""':_'. '-.:~;,:::.<'PFU .,"> ;:'~-,Z:=; Mixed CommerciallSFD Lot Size (River Road/Santa ~:~k'>':;:~>;....:.:squa,.efeet ,> - /-. X. = Mixed CommerciailMutti-Famny - Commerciat' C~tef.;CQM.~, oruY-:,.:::.~..,:.".{,:>r#;1000gaF?~ ...;: ~";,=~~d HomePar1< . ...J;;~~~~~.~~;~1;~i:{:%;1r;~! 3. TRANSPORTA nON (SEE REVERSE FOR TRANSPORTATION I MWMC WASTEWATER TABLE) ~;:~~~-?'-.- Descriction Unit Type- - '# ofUn~' X Trio::R-~e x , ~-.~::'J~~ltty i~ir;~1i< : x ":~1:ount $665.49 = $665.49 = 4. STORMWA TER ....._-;..~.... ,..::~-;:.:;:..:.......:::.._~-. ':~:' ....- - . f ii~;~;e;~;;~~~~;;:;u~:~:~~~~~~;~:i3g't~~r, e. Manufactured Home Parks: ~ot~paces . _,JY :.;jzf~:.tJ..:'~ x PLUS square feet of impe~~urface a~~;' ;~~4 x ~'::'~-.~'-~~ :-," .' =:..; - ~...'if1 $475.74 = $713.61 = $951.48 = $0.148 = S249.23 = SO. 148 = 5. x $833.43' = 6. Cost per FEU Unit = = - :--S~~Y:5~~~_~'~-<: .'.~'~, .x = ~ ::~-::~i~~~::~~~j-'~:~ .~fi:~:~~~ - . .~j; ~';;; -~~: b. Large VOlumf;.~!;l,5er"'P'rcce~!1~~~.~;~:;:::c,~AnnUaj Average dally tInw greater tnan 100,000 gallons) , - ;..f$.,7 -~-::;~?;:l:~i'.'~~~'-~'" x = x = 7. WAS~A TER - CITY (Loca9Jf~i~~~€?o-;- -,-~~~.- a. SFD or DupleX~ #~of Dwelling Units ,;~:;;- b. Commerciakoi Multi-family or Manufactured Home Park: '-,:-~';;::::' *" TQtal New PFps (FROM TABLE ON REVERSE OF THIS SHEET) :!""?.:./-: c. Existing: Commercial, Sewer Connection Only: - :~~_~~~~~:-~~, _ A~eE~a~e.flow/montl1 + 1,000 gallons = -~";(::'~~f~~~J't:~%~sR~~~a7f~t:i;~~~~~:;e 9f~~tll Development x S560.58 = x S35.04 = x S93.42 = x SO.025 = SUBTOTAL $ x 0.0500 = 510.00 = 8.' ADMINISTRA TlVE FEES a. City of Eugene: Base Charge (SUBTOTAL shown above) b, MWMC (Regional): administrative fee per permit with MWMC charge TOTAL GROSS SDC $ 9. LESS ANY CREDIT FROM SECll0N 2 F OF THE ATTACHED CREDIT WORKSHEET < > FINANCING OPll0NS Maximum semi-annual installments of Total Charge, !f Financec (with % Interest) 5 5 10. TOTAL NET SDC $ 07 07 97 n: . m/o ~dc /_':1- Idc",1e. "'ic4 · PLUMBING FIXTURE UNIT PFU CALCULATION TABLE 'I The # of New F"txtures (column 2) X Unrt EquIValent (column 1) = Total # of New PFUs (column 3) AND The # of Existing Fixtures To Be Removed (column 4) X Unit EQUivalent (column 1) = Total # of Existing PFlJs To Be Removed (column 5) I ; 1 I 2 I ! Fixture Type I I I i (Plumbing COde) # of New i I FixttJres ! Unrt EqUivalent I i Battltuo I 2 I i Commerc:al Dishwasher I 2 ! i Dnnlong Fountain : 1 I I Floor drclln I 1 I I Floor SInk I 2 i ! Interceotor (greaselolllsandlautowashletc,) I 4 I I Laundry t1.Jblclotneswasner . res.dentlaf i 2 I I Laundry t1.Jblcfotl'1eswasner . commerc:al I 6 I i Manufactured home park trac ~1 per trailer) I 6 I I Shower, SIngle stall i 2 I I Shower, gang I 1lhead I I Sink. COl'T'lrl1erclal or residential I 2 I i Unnal. stall/wall I 2 J I Wasrl bas'nIlavatory, single i 1 I I 'Nater closet. pUblIC Installation I 6 I i 'Nater closet. pnvare ! 4 I ! Miscellaneous: I ! 3 (= #1 . #2) Total # of New PFUs . '.. i -~ <,'~:: "".'.-;: ~~''';':'';;~~'' . , : -~:"".- !::--~; I- ..;..~. ".-: Jt2'>i' G:':'-o:-'7:~:;' ",,,-""s" -;~-.' ~,.;.t:.::;. 4 # of Exlsting F"lXtures To Be Removed --. '. " .+ ":;::.--,,, -:=' ~ - -1...~. ~$:~.:;~~. ~ ~~'~~~i:.:;~:;_...-'._ ''i~~:-:,:~: 2':':~C... I I 5 (= #1 . #4) Total # of Existing PFUs To Be RemoVed .~~.;:~ ~~~~:-~0~~;:;~...~t~~" ...~ '~7r~;~~~~;~:~~~:~=tt~ . ','::~::=.'\\''':'::;r-:~~ *,1 (to front of this SDC worksheet, section 7 b, City 'NVI/ only) II TOTAL # of Existing PFUs, if applicable .-' ..,- .f :' '- .,~-;,:.,.:l"" "~~-;"G'2IT;s. '~~~::~:r~~.~ ~81 I .::..:~i ....:..;:,;:.. I T -s~~i~~~i~~,:, <~i~~t~? ~; ........;.:. Class Code Description TRANSPORTATION TRIP GENERATION I MW:MC-WASTEWATER FEU TABLE T~~r~~~ ~~~~~ 1 L~-: D~~:~~.~i~~~&' 100 200 210 250 Unit RESIOEHTlAL .;...: i "~~.,. ',:<':",:5,/'- Elderty/Group HOUSing ou O,l~~:1:< 5138.aaf5"'i 4.92 RacaUet ClUb OttIer Resldentiat ou O:~S/Y;;" 5243.;.04('! 493 HeaID, C:ub Single-Famt/v/Ouplex ou -';;t:~'1 52n,~ I I 494 ..;,BOWling Alley Retirement Home au _ <~:O.28 s1Sit~L,_L ~,:..j:~Recreanenaj Canter PUBUC IlNSn:NIfONAt. .7i~.~?;r . :~tll;::~fi.:E.t.5st-' Fraternal Crgamzations Utilities ;,oJ.'r;'!::}::;~?:, I~~~,);:-::O. 40 ~j[:'~ ServIce Station/Market P1..Jbfic P3rk ,.~;X~?~~;:ir.~~~~ ..i:ci:eo-;y.0':-f-;-/';"'~.2.00 $1S27Ti I 700 Fast Food Restaurant Elementary SctiOci;;~J2.i~:;'::~5':'~ TGSF::-?~.:~.;j'ti2a.>~ 5277,76: I 800 Retail High School ~ ~:~t;;~f~~;(~:iL. TGSF ~::;',2::~!!..f5!if:'::~~, 52/ / 76 i ~ 820 SheDDing Cr <10,OCO 50 It Communrtv College . "~~~:R:,:i~~iGSF '?:;; "tJ~~:::7":';'~0'_~S277.76; I 821 Shoo Cr 10,000- 49,999 50 It UnlVersrtv ':(.o:~"~;€\~;~~it;.SbJdent 'd:23'1>?..;~~::' 520,831 : 822 Shoo Ctr 50,000 _ 99,999 50 It Ctlurcn ,:P':~:::7;Oi~:}17.[.'~+-;,;J:GSi;, 0.7Z'-.:;'- 5208,32! I 823 Shoo Cr 100,000 -199,999 50 It Oav Care Center .:~":;;;,:'><-~"'.'~'<~S~':'!I~i.:",- 10.00::'; 5277761 824 Shoo Cr 2CO,COO _ 2~.999 50 ~ Ubrarv.. -!::.IGSF:';''::'~"':'' 474 S208.32: 825 ShooCr3oo,OOO-399,9995Olt HOSCItaI ,- --~~"";;':-"-;::",~05 52777:;; 826 ShoO Ctr4QO,OQO-499,999 50 tt Nursing r-foine 8eiisi/0':0J' 0, 17 S69,44 ; : 827 Shoo Cr 500 000- 599,999 50 It C1imc TGSF:'::'~ 2.38 527776; 828 Shea Cr6OQ,OOQ-799,9995O It Government BurldlngmsF 5,88 5208,32:! 829 Shoo Cr 800,000 _ 1,OCO,OCO 50 It -~~~.' OFF1CS _ _ I 830 ShocCr>1.000.COOsoft CfftCe':<i.SQ,COO 50 It s:STGSF 2.24 520832: i 831 Dinner Cniy Restaurant omte::50.:COO-99,999 so It ...;: iGSF 1.87 5208,32. 832 Restaurant omce:;1:OO".000-199, 999 so tk':':,-, iGSF 1 56 520832: 33S DnnKlng C"ace ~-2oQooa:'Sq,-tt:~:'~;~.~:r.;:~- TGSF 1 4Q 5208,32 a.4O Auto Care Canter ~l1Oentaromce:-,::'" TGSF 4 08 5208,32' 841 New Car Sales ~'.;<'~',; IHDus1:RfA:L ! 847 Self Service Car 'Nasn TruCk Terrrar,al TGSF 082 5208,32 a48 Tire Store Mtnl-warenouse iGSF <],25 5277 76 3-...c::.o SuoermarKet Industnal TGSF 0,90 5138,88 851 C0nvenlence Store . Industnat With orocess flow add strengm c:1arge 354 Crscount'AarKer :...:;w Strength Process F=lew TiGAL:F 11et 301 51.388,;"'3 ew ,c'.lr.1lture Store 'Aedlum Strengtt1 Process F:ow i;GAL'EF not 301 51.814 57 3SS 'Ieeo :'rcace '-"gn Strengtt'1 Process Flew TiGAliEF net 301 52,382,:::8 =-=.J .='nanc:al !nstitutlen "'erv Hlgn Strength Process FlOW iiGAliEF net 301 52,949,99 Suc-er....,cn Strengtt'1 Process F!ew T!GAL'EF not act 33517' 7',J BUSINESS I COMMERCIAL Unit BUSINESS I COMPIERCAL Court TGSF TGSF TGSF 170 400 520 530 540 550 500 565 590 510 620 S30 730 710 711 712 713 720 30 151 500 (plus) [plus) JE!!JS) (Plus) (Plus) 30J DU Member Pumc TGSF TGSF TGSFlA TGSFlA TGSFlA TGSFlA TGSFlA TGSFLA TGSFlA TGSFlA TGSFLA TGSFlA TGSFlA TGSF TGSF TGSF TGSFlA iGSF Stall iGSF TGSF TGSF TGSF iGSF TGSF "7"GSF ~ ;;>oom iGSF iGSFU iIG':'L;Ei= 2 Dwelling Unrt " ThouSdnd Gross SqU<l1'1t Fei!t 2 ihouSdnd Gross SqUill'1t F'!et LeaSdDle Area 2 Thousand Gallons Effluent 'Aorel/f-'orel Tneatre - ~'lnIS :::,~u!C 'J 65 S 1 36 ':'9 ..:..J..3 3Sr= '3 i... s:~~ -3 ~urt _ 33 '369 '. :;ievlsea J7/07/97 Trip Rate per Unit .. .'.- 3.86 4.30 3.54 1.38 0.03 5.10 10.00 4.00 10.00 8.44 6.23 5.10 4.40 3.97 3.66 3.41 3.15 2.97 2.71 766 10. 00 10,00 287 2.62 3.52 5,13 1000 1000 976 0.39 9.60 '10. CD FEU Cost per Unit S89.44 S208.32 S277,76 S208.32 S20.83 $34,72 S1.588.98 S208.32 S89.44 S69,44 S89.44 569.44 569.44 569.44 589,44 S89.44 589,44 569,44 569,44 52.382.28 - 52.780,12 S277 76 589,44 589.44 520,83 5208,32 $317 55 524304 S243 04 5208.32 5208 32 S2C-8 32 " 'JntO\SOC'Jorms'CurrenNl79ibaCll ....... G Exhibit "(.T" Public Works Engineering May 12. 1997 City of Eugene 244 East Broadway Eugene. Oregon 97401 (541) 687-5560 (541) 984-8410 Fax SUBJECT: CONSTRUCTION OF WASTEWATER SE'NERS IN THE AREA. BETWEEN HIGHWAY 99 AND THE NORTHWEST EXPRESSWAY FROM KAISER AVENUE TO BEL TUNE ROAD - JOB #3437 Dear Property Owner: Last summer, property owners in this area were contacted regarding ir.~tallation of wastewater sewers along Prairie Road from Kaiser Avenue to Beltline. The project boundary has now been established based on your feedback and support. Sewers will be installed along Prairie Road from Kaiser Avenue to Beltline Road (see map). The project will be bid in late spring. After bids are opened, estimated costs will be refined and a hearing will be ccnducted by a hearings official who will, establish findings based. in part, on testimony from property owners. The purpose of the hearing is to determine if the project should continue into the. construction phase given the results of the bidding process and the need for wastewater service to the area. These findings will then be submrtted to the City Coundl. If the project is approved by the Council. they will form a local improvement district, and construction will begin this summer. Sewers are scheduled to be available for hook-up in 1998 after completion of the associated wastewater pump station located at Prairie Road and Beltline. Since you indicated support for the project. you will be assessed at the completion ot construction and will be able to connect. A fact sheet of estimated costs is enclosed for your information. In order to be considered as part of the local improvement district and to be abJe to ccnnect to the wastewater sewers when they become available, you will need to sign an annexation agreement which will commit the property to annexation 10 years after connection to the sewer OR the year 2010. whichever comes first. Please sign and return the agreement by May 30, 1997. A self-addressed envelope is enclosed for your convenience. If you have questions regarding wastewater sewer installation. please feel free to c::ntact Jerri Behney. project manager, at 682-5560, If yeu have questions regarding the annexation agreerTient. please contact Cathy Czerniak at 682-5508 or BeCKY Taylor at 682-5488 both in the Planning DiVision. Sincerely, __ . //~ -:0~/// ".. /1."./ /---;/' /,// .~ ~ .,-/' -". -" "./ // 6--.;' .,,;?;, /~;//~ Reber: J Lanksren P ilnc:cai Civli E:1gmeer ~ '.\I~JCr:'.-.s',~;PC" ~s FACT SHEET c Public Works Engineering City of Eugene 244 East Broadway Eugene. Oregon 97401 (541) 682-:5560 (541) 682-8410 FAX PRAIRIE ROAD WASTEWATER SEWER PROJECT Description of the Project The Prairie Road Pump Station and Wastewater Sewer project is listed in the City's current Capital Improvement Plan and wastewater service has been requested by a number of property owners adjacent to Prairie Road. The project includes constructing a pump station at Beltline Highway and Prairie Road and installing a wastewater collection line in Prairie Road from Kaiser Avenue to 8eltline Road. Ultimately, sewer lines will be extended along the east/west streets off Prairie Road, but property owners who would take service from these lines have not requested them to be installed at this time. The City will pay for the pump station and a portion of the cost of installing sewers that are more than 8 inches in diameter. The rest 'of the cost of extending the sewer system in this area will be assessed to adjacent property owners who will receive service from this system, either at the completion of the project based on the actual construction costs or in the future based on the equivalent cost of constructing sewers at the time connection is requested. This method of cost recovery is consistent with the Industrial Corridor Community Organizatton Annexation and Urban Services Policy Agreement, approved by the Eugene City Council in 1991. Process and Assessments The process for constructing wastewater sewers includes a number of steps: Staff initiates the project, taking into account poll letter responses. The City designs and bids the project. The final authority to proceed on the project is given by the City Councrl through the formation of a Local Improvement District (LJD). The improvements are constructed. \Nhen the work is comoleted, a portion of the improvement costs are distributed to the benefitted properties. Those property owners requesting sewer service must sign an Annexation and Urban Services Agreement before a sewer connection permit or any other building permits can be jssued. Only those property owners who have indicated support for the project' and who have signed an Annexation Agreement will be assessed at the completion of construction and only those properties will be able to connect. For those property owners, the assessment will be based on the actual construction costs and other charges in effect at the time of assessment. Property owners can estimate the total public charges for the sewer by using the following formula and estimated costs: lateral assessment + service assessment + total SDC charge = total estimated public charge lateral assessment: lateral lines are typically eight inches or larger in diameter and collect and transport sewage discharged through service lines. City code defines assessable area as that portion of a parcel that lies within 160 feet of the sewer line. We currently estimate this cost to be approximately $0.40 to $0.45 per square foot of the assessable area. To estimate the assessable square footage for your property, multiply the front footage of your property (the length of your property adjacent to Prairie Road) by 160 feet. If your property is less than 160 feet deep, multiply the front footage by the depth of your property. Service assessment: Sewer service lines are typically installed in the right-of-way to connect the building sewers constructed on private property by property owners to the public lateral lines. A service line may provide one or more service connection points. Large , parcels may require more than one service. We estimate the cost per s~rvice connection point to be approximately $ 2500 to $ 3000. Systems Development Charge (SOCl: The Wastewater SDC is collected to fund a Dortion of the cost of constructing the facilities needed to maintain c.ommunlty health and safety standards and to recoup a portion cf the community's investme'lt :n the infrastructure that is already in place. All new connections to the wastewater system must pay the wastewater SOC. There is a local and a regional (also called MWMC charge) component in the wastewater SOC. You can estimate the SDC as follows: For the local SDC* component, multiply the square footage of your lot by $0.025 per square foot. For the reaional SDC * * component, multiply the number of equivalent dwelling units (see below) by $365. Add the two components to get the gross SDC charge. Add the SDC administration fee (5 % of the gross SDC chqrge) and the $10 MWMC administration fee for the total estimated SOC. Equivalent dwelling units (EDUs) are calculated as follows: Single family home = 1 EDU Duplex = 2 EDUs . Existing commercial or industrial property: Divide the average winter months' water consumption on the EWES bill by 6,000 to derive the number of EDUs. Assessment Financing Assessment financing is available to all property owners participating in the project. All assessable costs outlined above may be financed over ten years, payable in monthly or semi-annual payments. Assessment deferral programs are available for property owners who meet specific age andlor income qualifications. Contact Finance at 682-5037 for additional information. Other Costs and Requirements Property owners are responsible for arranging through a private contract to connect their buildings to the public system and abandon the existing septic or sand filter system. The cost of constructing the private building sewer includes private expenses such as hiring a contractor and/or purchasing the appropriate materials and obtaining all necessary permits to construct the building sewer. In 1991, the Industrial Corridor Community Organization and the City of Eugene signed an agreement allowing wastewater sewer service to be extended to the Highway 99/Prairie Road industrial area before the area is annexed to the City. Consistent with the Agreement, property owners must submit a signed Annexation Agreement to the City before a wastewater sewer connection permit or a building permit can be i.ssued. The signed agreement commits the' property to' annexation 10 years after connection to the sewer OR the year 2010, whichever comes first. Once the sewers are available, all new development on currently vacant or partially developed property will be required to connect to the sewer system. A signed annexation agreement or annexation of the property, depending on policies in effect at that time, will be required before building permits can be issued. For More Information For questions about the proposed construction schedule or assessment calculations, call Jerry Behney in the Engineering Division at 682-5560. For questions about annexation agreements call Cathy Czerniak at 682-5508 or Becky Taylor at 682-5488 both in the Planning Division. For questions about assessment financing or deferral programs, call the Finance Division at 682-5014. For questions about building permits and other requirements for constructing the private building sewer, call the Permit and Information Center at 682- 5086. Local sac rates are under review and will be changing in late 1997, A new reaional sac is exoec:ed to go into effect July 1, 1997, -Proposed f1gure~ are not avaiiabie at this time. May 1997 ;;,; 't , 2690 Prairie Rd. P.O. Box I-X Eugene, Oregon 97440 541-688-8746 , June 10, 1997 Exhibit "K" Jerry Behney Project Manager Job #3437 City of Eugene 244 East Broadway Eugene, OR 97401 Dear Jerry: As we have discussed by phone and in person it is doubtful that we would hook up to the sewer immediately after completion for the following reasons: #1. The costs we were anticipating have increased from $52,379 to $74,867 based on the data given to us in your letter of August 16, 1996, compared to the latest figures you have provided us. Assessed Area 91,085 Service Hookup Waste Water system Change @ 2V2ct total sq.ft. 140,383 Re gional SDC AUf!Ust 16. 1996 @ 40ct = 36,434. 2,000. May 30. 1997 @ 58ct = 52,829. 4,308. 3,510. O. 3,510. 3,437. + 348. 64,432. 10.435. 74,867. Subtotal City On-Site Installation Total 41,944. 10.435. 52,379. Using an interest cost of 10% per armum we would spend $7,486 in interest plus an annual sewer bill of approximately $840. for a total cost of $8,326/year. We are presently paying about $8400. per year now for hauling the sewage from our holding tank. At the original $52,379 figure we would have had $2,200 left to apply towards the principal- at $74,867 we have nothing to pay towards the principal. #2. As you know construction in the Eugene area is at an all time high putting those bidding on the projects at an advantage as you can see from the extreme range of bids you received. In summary we certainly would like to be hooked up to the sewer, but not at a price that we cannot afford. I would recommend that you take a break and rebid the project a year or so from now and hopefully our cost will be in a range we can afford. Weare willing to take that chance! Sincerely, , i \ \ , '_ . \,' 1,0.- ._, Dwi~ht FOfaey o 0 General Manager cc: Board of Directors 3202 3201 4500 1400 100 1805 101 <:;), c:.' ~ I, o "J:) z I F~()G I ! NA1 2800 2800 n I 2804 2805 \ \ 2800 3900 4500 503 1900 r------- I I Project Boundary I, I -'-....'-~_...._J o 0) ~oo \ \ \ 2200 \ lOa 100 \ 500. / " , -'.-' ~ ... ..." .... ..... .... ~-~~---- _~-' 403 CITY OF EUGENE ..' I Prairie Road Sanitary Sewer Project CAUTION: MAP If' B^S~O ON IM,,"~Cl!lE sounCE OAT A, SUBJECT TO CtlANIJE. AND FOR OENEML nenMNCE ONt Y. Scale: 1" = 400' ~tlpfJOrf Tile fJlT{)ecf ~/.9()ec/ .4/Jl7eYtJ!to() I tlr6ar7 5erv ICe.5 ,49reeme/?~ ~ 0' 400' I 800' rmrl,,~ hv f"Hv of F\IQ"n" f"N In!. ",,"m, M"" Hl<l1, 9104-0111 501 ? " ')l l'T\ V'l\ V'l, ~ 600 200 Project Area . .. ~ J::::j I VICINITY MAP \ I