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HomeMy WebLinkAboutResolution NO. 4533 RESOLUTION NO. Lf)'33 A RESOLUTION FORMING A LOCAL IMPROVEMENT DISTRICT FOR PAVING, CURBS, GUTTERS, STORM SEWERS, AND STREET LIGHTING CONDUIT ON THE WEST SIDE OF BAILEY HILL ROAD FROM STEWART ROAD TO 7TH AVENUE. (JOB #3557) BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE, a Municipal Corporation of the State of Oregon, as follows: Section 1. After proper notice of the hearings required by Sections 7.165 and 7.166 of the Eugene Code, 1971 (E.C.), after receiving the City Engineer's report as required by Eugene Code 7.160 and after receiving the hearings officer's report of public testimony on the proposed project, the City Council hereby declares it is in the public interest to construct the local improvements described in Section 2 of this Resolution and assess part of the costs thereof to the specially benefited properties on the west side of Bailey Hill Road from Stewart Road to 7th Avenue. Section 2. The Council hereby orders the establishment of a local improvement district, on the west side of Bailey Hill Road from Stewart Road to 7th Avenue and in that district to pave, construct curbs, gutters, storm sewers, street lighting conduit and related improvements. Section 3. The costs of the Improvements shall be borne by, and assessed to the properties in the district in accordance with E.C. 7.175. Included in the cost shall be the overhead costs specified in E.C. 7.170 and whatever other special costs, such as acquisition of interests in real property as are necessary to make the improvements. Upon ~ompletion of the Improvements, the final costs therefor will be calculated and the owners of benefited property shall be notified and the property assessed as provided in E.C. 7.185 to 7.240. The assessments to be levied for these Resolution - 1 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 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 4. The City Council hereby declares that the construction of the Improvements, as well as acquisition of rights-of-way or easements necessary for the construction, is for a public purpose, is necessary for the public welfare, and is authorized under the laws of the State of Oregon and Charter and ordinances of the City of Eugene, and is directed by this Resolution. Section 5. Improvement warrants, short-term promissory notes and other evidence of indebtedness authorized by Chapter 902, 1991 Oregon Session Laws, issued to finance the construction of the Improvements shall be indebtedness for them. When improvement warrants are issued they may be general obligation warrants or limited general obligation warrants or other similar instrument. Such indebtedness shall bear interest at a rate set by Council resolution authorizing the debt. The interest shall be paid upon redemption. Section 6. Proceeds from unbonded assessments, improvement bonds, foreclosure of liens based on the Improvements and from other budgeted funds including ad valorem taxes, if levied, to pay the debt shall be deposited in the Short Term Debt Fund until the indebtedness issued to finance the Improvements is redeemed. Proceeds so deposited may be used only to pay the indebtedness issued to finance the Improvements. Section 7. The Mayor, City Manager, and Finance Officer may sign the evidence of indebtedness herein authorized by facsimile signature with a check signing machine. The Finance Resolution - 2 Officer shall cause the seal of the City to be printed on the evidence of indebtedness when required by law or by the purchaser. The foregoing Resolution adopted the~y of ~ 997 rr - ~rt7 City Recorder Resolution - 3 EUGENE HEARINGS OFFICIAL FINDINGS AND RECOMMENDATIONS SUBJECT: PAVING, CURBS, GUTTERS, STORM SEWERS, AND STREET LIGHTING CONDUIT ON THE WEST SIDE OF BAILEY HILL ROAD FROM STEWART ROAD TO 7TH AVENUE. (JOB #3557) BACKGROUND This project was initiated as a result of a property owner submitting an "Irrevocable Petition" as a condition of land division (Sections 9.033(3) and 9.040(3)), that has occurred on the west side of Bailey Hill Road. The property was divided into three parcels, two of which have new owners. At the time of the division of the property, the property owner was advised that the west side of Bailey Hill Road, between Stewart Road and 7th Avenue, was scheduled for improvement, probably in 1997. At that time, the property owner was advised that he could privately engineer the proposed improvements. The owner choose not to privately engineer the improvements at that time. All three properties are currently in the process of being developed. City staff contacted all three owners to determine if they wished to jointly build the proposed street improvements privately as a public improvement, or through the local improvement process. Two of the three chose to use the Local Improvement District (LID) approach. Staff proceeded with the initiation of the LID, which was supported by the majority of the property owners and property frontage, as the location of the property and the needs of the other property owners made it impractical to allow one property owner to proceed with the private construction option. Development is underway, or will begin shortly on the other two properties. The petition represents property that will pay 100 percent of the assessable cost for the proposed LID. The City Engineer initiated the project, as provided for in the Eugene Code 7.160(8), on May 30, 1997. The City Engineer originally estimated the project cost at $113,000. Affected property owners were notified of the pending LID hearing ten (10) days prior to the hearing as required by Municipal Code. The project was advertised on July 9, 1997, and bids were opened July 22, 1997. The City received three (3) bids for this improvement project. The low bid was submitted by Wildish Construction in the amount of $106,740.50. The high bid was $126,851.00. The total project cost is estimated to be $159,000.65. PROJECT The project involves construction of the West side of Bailey Hill Road, which will widen it from 30- feet to 66-feet, and will include the construction of 725 feet of 36-foot paving, curb, gutter, storm sewers, and street lighting conduit. ASSESSMENT Costs listed below are the estimated assessment costs calculated from the low bid: 22' Paving $ 101.00/front foot Cost to City: $94,676.20 (nonassessable width, street lighting/traffic signal conduit, and storm sewer) Findings and Recommendations - Job #3557 Page 1 RECOMMENDATION Staff provided the Hearings Official with a memorandum which outlined the above information and which recommended approval of the formation of the proposed district. A public hearing regarding the proposed district formation was held at 6:00 p.m. on July 23, 1997. The minutes of this hearing are attached to these Findings and Recommendations as Exhibit "A." Two affected property owners testified at the hearing. Neither property owner opposed the formation of the proposed local improvement district although one owner requested that he be allowed to privately construct his portion of the project and a representative for Food For Lane County requested a waiver of the assessment for his non-profit organization. Estimated costs are based on the low bid and are comparable to other projects of similar size and nature. The Hearings Official can find no Code provision that would allow staff to waive assessments on the basis of the non-profit status of a property owner. Further, there is no evidence that such a practice has ever occurred at the administrative level. As a matter of public policy, however, it is within the authority of the City Council to provide a full or partial waiver of an assessment. In regard to this issue, the Hearings Official commends a request from Food for Lane County, attached to these findings, to the City Council. . The Hearings Official finds that the proposed local improvement district would benefit the health, safety and welfare of the citizens of Eugene in that it will provide necessary urban services, consistent with Growth Mana~ement and the Urban Service Area Element Policy 8 of the Eugene-Springfield Metropolitan Area General Plan. The Hearings Official also finds that it would not be prudent, at this late stage of the local improvement district formation process, to allow one of the property owners to privately construct his portion of the proposed improvements. Finally, the Hearings Official finds that the proposed assessments are calculated in accordance with the Eugene Code and that the project is one for which the assessments are for a local improvement as set forth in ORS 310.140 because: (1) The assessments do not exceed actual costs; (2) The assessments are imposed for a Capital Improvement Construction Project which provides a specific benefit to a specific property or rectifies the 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 payoff with interest over at least ten (10) years. Therefore, the Hearings Official recommends that the City Council adopt a resolution approving the project, as recommended by staff, and authorizing construction. Respectfully submitted, f!:J- d?cf /,?,?./ Dft{e Findings and Recommendations - Job #3557 Page 2 Exhibit A MINUTES Local Improvement District Street Paving, Curbs, Gutters, Storm Sewers, and Street Lighting Conduit on the West Side of Bailey Hill Road from Stewart Road to 7th Avenue. (Job #3557) July 23, 1997 Public Hearing A public hearing regarding the formation of a local improvement district (LID) to improve the west side of Bailey Hill Road, from Stewart Road to 7th Avenue, was held on July 23, 1997 at 6:00 p.m. in the First Floor Conference Room in the Eugene Hotel Building at 244 E. Broadway, Eugene, Oregon. Hearings Official Gary Darnielle presided. Mr. Damielle explained that the purpose of the public hearing was to allow affected members of the public to have an opportunity to comment upon the project and to ask questions of staff. Mr. Damielle further explained that he would be developing minutes of the public hearing and findings and recommendations that would be sent to the City Council to be used in their deliberations regarding the formation of the proposed LID. A staff presentation was made by Paul Klope from the Eugene Public Works Engineering Division. He was assisted by Bob Terrel, Project Manager. Mr. Klope explained that the project consisted of improving the west side of Bailey Hill Road from Stewart Road to 7th Avenue with paving, curbs, gutters, storm sewers, and street lighting conduit. The improvements would match the existing width of Bailey Hill Road to the south, between Stewart and West 11 th Avenue. The City Engineer initiated this project as a result of the submission of an irrevocable petition for the improvements and due to the pending development of the lots. Prior to initiation, staff contacted the owners of the lots to determine whether they wished construct the project privately or whether they wished to go through the LID process. Two of the three property owners indicated that they preferred to construct the improvements through the LID process. The owner of the south parcel, Mr. Hammer, stated that he wanted to build the improvements using a privately engineered process. Since a majority of the property owners chose the LID process and it is a logical to construct the entire section of the street at this time with a single project, the City has chosen to recommend the formation of the LID. Mr. Klope further explained that staff had designed and bid the project. The low bid price of $106,740 was under the engineer's estimate. The estimated assessments are $101 per front foot which is lower than similar projects of this width. The front foot cost does not include sidewalks which will be required as a condition of building permit approval for each lot. The irrevocable petition represents 100 percent of the assessable frontage of the project although the City will pay for 14 feet of extra width as well as for the storm sewer and street lighting conduit. The City's share of the project is estimated as $94, 676. Mr. Klope noted that Food For Lane County had requested a reduction in its assessment amount but since there were no code provisions that would enable staff to grant this request no changes were made in the estimated assessment for its parcel. The staff recommends the formation of the LID and award of the contract. In response to a question by the Hearings Official, Mr. Klope stated that the original estimate for the project prior to bid was $113,000. Minutes -July 23,1997 Public Hearing Page 1 Mr. Klope next explained the schedule for the project. He mentioned that the Hearings Official's findings and recommendations would go to the City Council on August 4, 1997. At this time, the City Council will consider whether to approve the fmdings and recommendations and form the local improvement district. If they form the local improvement district, the contract will be awarded and the City will enter into a contract with the contractor to construct the improvements. It is estimated that construction would start sometime around the third or fourth week in August and be completed in September. Following completion of the improvements, staff would collect final costs, calculate the final assessments and schedule a second public hearing to consider the final assessments. Affected property owners will receive a notice of final assessments as well as a notice of the hearing. At the hearing there will be an opportunity to comment upon the calculation of the final assessments. This hearing is anticipated to be around the end of 1997. Final assessments would then be levied by the City Council. Mr. Klope noted that 10-year fmancing is available through the City at competitive interest rates. The last interest rate was near 8 percent. The City sells bonds to finance the project. The bonds can be paid off at any time without prepayment penalty. In response to a question from the Hearings Official, Mr. Klope indicated that this project would not entail any right-of-way acquisition by the City. Mr. Klope also noted that with the exception of the construction of sidewalks, there was no precedent for allowing a property owner to be excluded from a local improvement district in order to privately construct a portion of necessary improvements. Mr. Darnielle then opened the hearing to comments and questions from the public. Mr. Donovan Mack spoke first, explaining that he was at the public hearing in his capacity as Chairman of the Board of Directors of Food For Lane County. Mr. Mack stated that Food For Lane County was a non-profit organization served as clearing house for the emergency food needs for the County. The property subject to the proposed LID was purchased with an anonymous donation and is expected to support a warehouse, office and kitchen facilities for his organization. Mr. Mack said that the purpose of his presence was to go on record to support the widening of Bailey Hill Road and to request consideration of a reduction or waiver of the assessment. Mr. Mack said that Food For Lane County provided a vital community service and stated that the organization would like to see as much of its contributions go towards the delivery of emergency food as possible. He noted that his organization's $18,000 assessment was substantial and would otherwise go towards providing food to the community. In response to a request from staff and Mr. Mack, the Hearings Official ordered that the record be held open until Monday, July 28, 1997 to receive a letter from Mr. Mack requesting an exemption from assessment for Food For Lane County regarding the proposed LID. It was determined that the letter would be addressed both to the City Council and the Hearings Official. Mr. John Hammer spoke next. Mr. Hammer first asked whether the low bid represented hard costs? Mr. Klope explained that the contractor's bid was based upon the quantities given by the staff. Since the City pays for what work is actually done, so if the quantity differs, then the assessment would vary. Fluctuation in estimated cost, when it occurs, generally never exceeds four or five percent. In response to a further inquiry from Mr. Hammer, Mr. Klope explained that Wildish was the low bidder on the contract. Minutes -July 23,1997 Public Hearing Page 2 The Hearings Official asked staff to explain how Food For Lane County's estimated assessment was $18,000 when the difference between the low bid and the City's cost was about $12,000. Mr Klope explained that the bid represented construction costs but did not include markups for engineering, testing, finance charges, interest and contingency. The total project cost actually was $159,000.65. Mr. Hammer asked what the percentage of the City's markup was. Mr. Klope explained that a number of factors were included. He noted that the contract total ($106,740.50) was increased by a 10 percent contingency fee and 2 percent for testing. The resulting figure is known as the Direct Total which is, itself, increased by engineering charges of 23 percent, a finance/administration fee of 5 percent and an estimated construction interest charge of 5 percent. The final project cost is $159,000.65. Mr. Klope explained that interest is accrued as payments are made by the City. Mr. Hammer notes there is a two-foot right-of-way acquisition on his property along Bailey Hill Road. Mr. Terrel explained that this was for a future sidewalk. This sidewalk acquisition was a condition of development and was not related to the proposed LID project. Staff assumed that the proposed sidewalk width would be similar in width to existing sidewalks along Bailey Hill Road. Mr. Hammer stated that he would like to go on record for being able to privately construct the portion of Bailey Hill Road in front of his property. He indicated that he would be willing to put up a bond. In response to a question from Mr. Hammer, Mr. Klope stated that the assessment for Mr. Hammer's property was $26,545. Mr. Hammer inquired as to the staff's experience in regard to the use of the 10 percent contingency estimate. Mr. Klope responded that the City has never had to use more than a five percent contingency and therefore the current estimate of the project cost was considered to be very close. Mr. Hammer asked why staff was opposed to his using a private contractor. Mr. Klope noted that there were several reasons for the staff's position. First, he explained, it was a matter of timing. The City wants the project built and complete to meet the needs of all the property owners. He stated that he did not believe that Mr. Hammer would have any chance to get through the process to be ready for consnuction at a time when the City was ready to begin construction. Mr. Hammer, for instance, would have to hire a private engineer who would have to recreate the construction design plans as state law would forbid him from using the City's design plans which had been stamped by Mr. Klope. The developer would also have to go through the privately engineered public improvement process which normally takes more time than is available. Second, Mr. Klope stated that there is no guarantee that Mr. Hammer could get the same contractor as the City and it is not in the public interest to have two contractors working on the same project. Mr. Klope noted that one of the reasons the City has property owners sign irrevocable petitions is so the City can put together logical projects. He further noted that when the Mr. Hammer initially developed his property he was given the opportunity to build the entire project on his own. At that time, he received written notice of the City's intention to initiate the project in 1997. Mr. Hammer acknowledged receiving notification of the project but explained that Mr. Terrel had told him that the project probably would not be built in 1997. Mr. Hammer stated that he had responded to the notice with information that he wished to construct the project himself. Mr. Terrel responded that he had said that it would be difficult for the City to construct the project in 1997. Mr. Hammer wondered how much frontage his property had. Mr. Klope replied that it had 262.28 lineal feet. Mr. Hammer questioned what was the estimated assessment for his property and Mr. Klope stated that it was $26,540. Minutes -July 23,1997 Public Hearing Page 3 There being no more questions or comments, the Hearings Official closed the public hearing at 6:42 p.m. Minutes -July 23,1997 Public Hearing Page 4 MEMORANDUM Date: July 23, 1997 From: Les Lyle, City Engineer To: Hearings Official SUBJECT: PAVING, CURBS, GUTTERS, STORM SEWERS, AND STREET LIGHTING CONDUIT ON THE WEST SIDE OF BAILEY HILL ROAD FROM STEWART ROAD TO 7TH AVENUE. (JOB #3557) BACKGROUND This project was initiated as a result of a property owner submitting an "Irrevocable Petition" as a condition of land division (Sections 9.033(3) and 9.040(3)), that has occurred on the west side of Bailey Hill Road. The property was divided into three parcels, two of which have new owners. All three properties are in the process of being developed. City staff contacted all three owners to determine if they wished to jointly build the proposed street improvements privately as a public improvement, or through the local improvement process. Two of the three chose to use the Local Improvement District (LID) approach. Staff proceeded with the LID approach, which was supported by the majority of the property owners and frontage. There was no practical way to allow one property owner to proceed with the private construction option, given the location and needs of the other property owners. Development is underway, or will begin shortly on the other two properties. The petition represents property that will pay 100 percent of the assessable cost for the proposed LID. The City Engineer initiated the project, as provided for in the Eugene Code 7.160(8), on May 30, 1997. The property owners were notified of the pending LID hearing ten (10) days prior to the hearing as required by Municipal Code. The project was advertised on July 9,1997, and bids were opened July 22, 1997. The City received three (3) bids for this improvement project. The low bid was submitted by Wildish Construction in the amount of $106,740.50. The high bid was $126,851.00. Correspondence The City received a phone call from Food for Lane County (Tax Lot 17-04-34-00-02903, Parcel 2), asking for consideration to reduce their assessment. Being a non-profit organization they would like their assessment to be reduced. There is no method described in the Municipal Code that provides staff the mechanism to meet this request. A general fund request made by Food for Lane County to the City Council, appears to be the only practical way to approach this request. PROJECT The project involves construction of the West side of Bailey Hill Road which will widen it from 30- feet to 66-feet, and includes construction of 725 feet of 36-foot paving, curb, gutter, storm sewers, and street lighting conduit. HEARING MEMO - BAILEY HILL ROAD July 23,1997 Page 2 ASSESSMENT Costs listed below are the estimated assessment costs calculated from the low bid: 22' Paving $ 1 01.00/front foot Cost to City: $94,676.20 (non-assessable width, street lighting/traffic signal conduit, and storm sewer) RECOMMENDATION The unit prices submitted with the low bid are comparable to other projects of similar size. Staff recommends approval of formation of the Local Improvement District. a :\support\proj-97\3557hg. m o-,,~~ - c.....U<.,.. ~oc;) 8 If-.) jO ~"7 -A.\..~C:> ~c. "-04-~~-\ 'Tt. ,,\ 00 ~ t,oco ,,... 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