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HomeMy WebLinkAboutOrdinance No. 19911ORDINANCE NO. ~ ~, AN ORDINANCE LEVYING ASSESSMENTS FOR PAVING CURBS, SIDWALKS~ STORM SEWERS AND STREET LIGHTING ON GREEN ACRES ROAD FROM NORKENZIE ROAD TO DELTA HIGHWAY; AND DECLARING AN EMERGENCY. CONTRACT 91-19y The City Council of the City of Eugene finds that: On the 14th day of January, 1991, as authorized in the Eugene Code 7.1~0~5} and 7.1607}~a} the City Council initiated the proposed local improvement consisting of paving, curbs, sidewalks, storm sewers and street 1 fight ing on Green Acres Road from Nvrkenz fie road to Delta Highway. After due notice and a public hearing thereon before the hearing official, and no remonstrances having been filed, on the 22nd day of July, 1991, the City Council formed the local improve-~ meat district and authorized construction of the local improvement. The actual cost of the local improvement is ascertained to be $937,32D.34 and the amounts to be assessed to and borne by the specially benef fitted property and to be borne by the City or others has been determined in accordance with applicable provisions of the Eugene Code, 1971 and as set forth in Exhibit A attached hereto and incorporated herein by reference. The City Council has established the method of calculating local improvement assessments in Sections 7.170 and 7.175 of the Eugene Code, 1971. A notice containing the information required by Section 7.185 of the Eugene Code, 1971 has been posted on a bulletin board at City Hall and given by certified mail to the owners of the parcels of real property subject to the assessment more than ten days prior to the public hearing before the hearing official. At the time and place specified therein, a hearings official heard all evidence and argument presented, and no remonstrances having been filed, has fully considered the same, and has reported his or her adopted findings to the City Council. The Council has reviewed and considered the assessment report of the City Engineer and Finance Officer and the hearings offi- cial's findings and summary of the hearing, and based thereon, THE CITY of EUGENE DQES ORDAIN AS FOLLOWS: Section 1. The Summary of the hearing conducted by the hearings official are hereby made a part of the Council's record in these proceedings, and the hearings official's findings, including these regarding compliance with Sections 7.160 to 7.190 of the Eugene Code, 1971, attached hereto as Exhibit B and incorporated herein by reference, are hereby adopted. Section 2. The actual cast of the local improvement compris- ing of paving, curb, sidewalks, storm sewers and street lighting on Green Acres Road from Norkenzie Road to Delta Highway is $937,320.34 of which $416,745.46 is hereby assessed against the parcels of property hereinafter described in the amounts set opposite, respectively. Section 3. The City Council does hereby determine and assess each lot and part of lot being within the described local improve- ment district as set forth on the assessment roll attached as Exhibit C hereto and incorporated herein by reference. Section 4. The City Council does hereby determine that each ORDNANCE - ~ parcel of land or lot hereinabove described is specially benefitted to the extent of the assessment set forth. The Finance officer shall give notice of the assessments to the owners of the assessed parcels advising them the assessment may be paid in full, without interest, within ten days of the effective date of this ordinance. Assessments that remain unpaid after the ten day period are declared to be liens upon the respective lots, parts of lots or parcels of land against which said several amounts are assessed, and may be paid, with interest on the unpaid principal amount commencing ten days after the effect date of this ordinance: 4.1 In up to twenty semi--annual installments, including principal and interest at the rate set by the City Manager as provided in E.C. 2.022 through 2.024. 4.2 I f the property owner so elects ~ in 12 ~ monthly install- ments, including principal and interest at the rate set by the City Manager as provided in E.C. 2.022 through 2.024 plus a service charge to be determined by the City Manager as provided in E.C. 2.020. Section 5. The City Recorder is directed to enter in the docket of City Liens a statement in connection with each unpaid assessment containing the following: 5.1 A description of each lot, part of lot or acreage specially benefitted by the local improvement; 5.2 The name of the owner or reputed owner thereof, that the name of the owner is unknown; and 5.3 The sum assessed upon said property, the amount and date ORDINANCE - 3 from which interest accrues, and the date of entering the same in the docket of City Liens. Section 6. Upon enactment of this ordinance, the City Finance Officer shall send notice of the assessments by first class to the owners of the assessed parcels containing the information required by Section 7.190 of the Eugene Code, 1971, and enclose therewith an application for paying the assessment in installments according to the terms set forth in Section 4 of this ordinance. Section 7. Any assessment remaining unpaid and for which no application for installment payments has been received may be foreclosed as provided by law. The proceeds from the payment or foreclosure of assessments levied by this ordinance shall be deposited to the city funds which advanced the cost of construc- tion, engineering and related expenses or which are used to retire any indebtedness incurred by the City for this improvement. Section 8. That the matters contained herein affect the public welfare and safety and therefore, an emergency is hereby declared to exist, and this ordinance shall become effective immediately upon its passage by the City Council and approval by the Mayor, retention by the Mayor for more than ten days, or readoption over a mayoral veto by two-thirds of all members of the Council. Passed by the City Council this ~Y~ d y of~~2tL , 1993 L-.. City Rec rder Approved by the Mayor this ~~~day of , 1993 Mayor ORDINANCE ~ 4 4RDINRNCE - 5 ~o v W 111 {,7 N ¢~ a cn a a~ ~o N Id1 dN Vi F•» W a. v~ ~ a ~ `t G~ M ~ ~ o ~ ~ N n ~ ~ M • • "` N M ~' LR1 Q~ Lf1O Nr0+~e-D• ~f'O . ~D~b+fl~000 l!1 0 . . . ~ +r"" GO ~i' h M ~' Or u1~M~0+ ti ~ Ou1M0•NM ~Q r • • r w r ~ ~~~~~ W E C zao +~ ~.. w cn +~ ~~ C~ N ~ ,~ O +~+ L C +~+ Wavf E ~~- N p ~ a +~ N C Q N a ¢ E ~N s-~a '~ W F- V N a¢ ~a U M 0+ ~ ~ ~- a ~M N t!1 ~ .. ~t M .... as ~' E O ~~ p h- ¢ a a ~, ~ a J ,,,. 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The project construction has been completed and all contract payments have been made. It is now appropriate to determine the assessments to be levied against property owners concerning this project. An abjection to the assessment proposed by the City Engineer's office has been made by one of the property owners as entirely too high and inappropriate because it is claimed that the property receives no benefit whatsoever from the improvement. Attached to these Findings and Recommendations as Exhibit "A" through "F" respectively are a Memorandum from the City Engineer dated Apri113, 1993, the Findings and Recommenda- ~.ons of the Hearings Officer submitted to the City Council prior to the formation of the Local Improvement District, a setter to the Hearings Official from the property owner dated July Z, 1991, a Memorandum to the City Engineer from the City Attorney regarding issues raised in the property owner's setter, a recent letter from the property owner to the Hearings Official, and a follow-up Memorandum from the City Attorney dated April 15, 1993. A review of these documents provides a good history for a review of the question presented. ASSESSMENT ISSUE As it has from the initiation of the project, Green Acres Investments has opposed the methodology employed by the City for assessing adjoining property owners for the construction of this project. Green Acres has contended throughout that this project provides na benefit whatsoever to its property since there was already a paved street in front, and the traffic generated by the law practice to which it rents is minimal. The estimation by Green Acres that the office generates 25-30 vehicles per day is unrealistically law for a busy law practice of 6 or 7 lawyers, plus the traffic of two insurance agencies. However, it can be assumed that traffic to this building does not represent a large part of the number of vehicles using Green Acres Road. It also should be observed that Green Acres Road was an unimproved, deteriorating asphalt mat surface, without curbs, gutters or sidewalks, prior to the construction of.this project. Therefore, the references in the materials from the property owner that it had a "paved" street in front of its office before the construction, should be read very generously, The provisions of the Eugene Code which govern the assessments of a project such as this are found in EC 7.175 and are attached hereto as Exhibit "G" . -1- The City Engineer's Staff has always calculated assessments pursuant to EC 7.175(2}. Under subsection ~2}fib} la~l}~a} the Cade takes into consideration the addi~.onal capacity necessary for a collector street in a residential zoning district by limiting the amount of assessment to a maximum of 20-feet in width. Since collector street improvement projects are always wider than 2a-feet, the additional width is paid for by the City. However, under EC 7.1752}fib} 1 a~Z} the Green Acres property which is in a commercial zoning district would be assessed for a maximum 44-feet in width. Green Acres argues that because extra capacity has been built into the project to accommodate the street as a collector which serves other areas, EC 7.1751}~a} and ~l}~d} require that the City pay all of the cost. Since it had a paved street in front of its property before the project, Green Acres argues that it should only be required to pay for sidewalks and a driveway apron. obviously, if the City were to adopt the approach recommended by Green Acres, the same consideration would have to be given to all other property owners along this development, The financial consequences to the City would be quite substantial. The issue presented by Green Acres involves both legal and policy considerations, First of all, it appears from the City Attorney's Memoranda that the City Council does not have the legal authority to change achy-wide policy unless the alteration occurred prior to the adop~.on of the resolution forming the Local Improvement District SLID}. Since the LID was formed at the time the Council approved the construc~.an of the project, it would be the City Attorney's opinion that the Council no longer has the authority to change the policy as Green Acres has suggested. The Council does not call upon the Hearings Gfficial to offer it legal advice, and the Hearings Ufficial has not separately researched this issue. It should be noted that Green Acres has not offered any rebuttal to the posirion taken by the City Attorney. Setting aside the question of whether the City has the legal authority to revise the assessment policy in light of the fact that the LID has already been formed, there area variety of policy considerations for the Council. For example, does it wish to j ettison EC 7.175 ~2} fib} 1 a~ 1 } ~a} so as to provide that the City would always pay all of the costs associated with the construction of an arterial or collector street? As noted, the Eugene Cade currently takes the additional capacity necessary for a collector street into consideration for a residen~al zoning district by limiting the amount of assessment to a maximum of 20-feet in width. In a commercial zone, a collector is limited to 44-feet for assessments purposes, even though the assessment may be wider, as is true of part of this project. Cdr, would the Council prefer to assess properties based upon aparcel-by parcel assessment of its current contribution to the traffic flow along the proposed improvement? Such an approach would require that the City do a toff c count study throughout the area of the proposed improvement, including the amount of traffic to each of the abutting property owners. Then, once that very considerable amount of data had been collected, the City would have to figure out same process for assessing each individual property based on its current trafaff~c usage, _2- However, such an approach would completely ignore the future uses of a property. Using the Green Acres site as an example, the assessment today would be based upon some traffic count conducted now. If, however, at a later rime a change in use of the property generated noticeably more traffic, no addirional assessment would be permitted. Obviously, such an approach would have dramaric implica~.ons for the amount of staff work necessary to assess properries and the amount of cost that the City would have to bear for a collector or arterial project. The advantage of the current system is that it assesses prvperti.es uniformly, based upon their zoning characterisrics. This method takes into consideration not only the current use of the property, but future uses which might receive greater bene~.t from the constructed improvement. Finally, in the opinion of the Hearings Official, the Green Acres property has benefitted from the improvement. Although the property owners claim that an appraiser has indicated there is no increased value, it is true that the property is now served by a fully improved street with left turn lane, curbs, gutters and sidewalks. RECD ATIGN It is the finding of the Hearings Official that the City Engineer has calculated the assessments for the improvement along Green Acres Raad in accordance with the current provisions of the Eugene Code. If the City Council determines that it has the legal authority to change the method for assessment of a property such as Green Acres, and if it chooses to do sa then that lic .. ~ Po Y decision would prevail.. However, ~n the absence of a change in policy by the Council, it is the recommendarion of the Hearings Official that all properties be assessed as has been determined by the City Engineer. It is the further f nding of the Hearings Official that the proposed project is one for which the assessments are for a local improvement as set fordo in ORS 31D.14~ 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 a problem caused by a specific property; (3) T'he assessments are imposed in a single assessment upon completion of the project; and (4) The assessments allow the property owners to elect to pay off with interest over at least ten (10) years. _3_ The Hearings Official recommends that the City Council adopt an ordinance for assessment as set forth by the City Engineer. Respectfully submitted, c Jack A. Billixags Hearings official -4-