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HomeMy WebLinkAboutOrdinance No. 20004ORDINANCE NO. --~~y°°~t- AN ORDINANCE LEVYING ASSESSMENTS FOR SANITARY SEWERS TO SERVE FIELD OF DREAMS SUBDIVISION; AND DECLARING AN EMERGENCY. (CONTRACT 94-527) (JOB #3253) The City Council of the City of Eugene finds that: As allowed by subsection 7.166(4) of the Eugene Code, 1971 (E.C.) and based upon the affected property owner's consent and waiver, contemporaneous with the enactment of this ordinance, the Council has adapted Resolution No. 4447 creating the local impravement district for the assessment of the cost of sanitary sewers and related improvements for the Field of Dreams Subdivision. The actual cost of the local impravement is ascertained to be $50,545.52 and the amounts to be assessed to and borne by the specially benefitted 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 im ravement assessments in p Sections 7.170 and 7.175 of the Eugene Code, 1971. A notice containing the information required by Section 7.1$5 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 arcels of real p property subject to the assessment more than ten days prior to the public hearin before the hearin g g official. At the tune and place specif ed therein, a hearings official heard all evidence and ar ument g presented, and no remonstrances having been filed, has fully considered the same, and has re orted his p or her adopted findings to the City Council. The Council has reviewed and considered the assessment report of the Ci En ineer and Finance tY g Officer and the hearings official's f ndings and summary of the hearing, and based thereon THE CITY OF EUGENE DIES ORDAIN AS F~LL~WS: 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 those regarding compliance with Sections 7.160 to 7.190 of the Eugene Code,1971, attached hereto as Exhibit Band incorporated herein by reference, are hereby adopted. Section 2. The actual cost of the local improvement comprising of sanitary sewers to serve Field of Dreams Subdivision is $SO,S45.52 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 improvement 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 parcel of land or lot herein above 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 effected 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. 2.422 through 2.024, 4.2 If the property owner so elects, in 120 monthly installments, 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 ORDINANCE - Z determined by the City Manager as provided in E.C. 2.OZ0. 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 awner 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 from which interest accrues, and the date of entering the same in the docket of City Liens. Section G. Upon enactment of this ordinance, the City Finance Officer shall send notice of the assessments by f rst 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 construction, 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 bytwo-thirds of all members of the Council. 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N ~ ~ J. {,~ 0 rn •i z m •i z m •i z m •r z o crnm crnm crnm Ca~r~ g m G) r~ G7 m ~7 m D rD z32 z3= z32 z32 ~ move mores moan moos zD zo zo zo I--+ oo= Do= oo= oo= -+} ;om0 ~mD ~mD 7vmO o 0 0 0 0 ~ ;~ n ~v cn D ~o cn D ~o cn D ~o cn a ~ ~ m V --a V --~ V ---I ~I -~ ~ ----I V7 -P m -~ r~n ~ m .~ m ~+ N ~ o n o n o n o r~ -~~ W N N o N a N o N o o a~~ z z z z ~ to o -o D © D D I m m m m to v ~ ~ ~ ~ vn N ~i 7 n n n n .~ m D D D O o ~ v ~ wv ca i~ ~~~ ~y Neighborhood Economic Deveiopmerif Corpvration~ - February 29, ~~~ 995 Mr. Joe Ferguson City of Eugene ~ . S58 Pearl .. Eugene, aR 974Q1 Dear Jae, ~ . . ~ Based an the current cost estimate by Lane Caunty Public v1lorks~ and the .City of Eugene of $~'2,Q4Q-$74,044 total tar 44 lots for $636.36 - $168 .82 er~ p . lot}, NEDGa agrees to waive sights to hearings for Local Improvement District formation and to an assessment hearing and agrees to .proceed with le in vy g assessments. ~~ Sine y, ~ ~ 4 ~ z~ FINDINGS AND RECOMMENDATIONS SUBJECT: FINAL ASSESSMENT FDR SANITARY SEWERS T4 SERVE FIELD DF DREAMS SUBDIVISION; JOB 3253; CONTRACT 94-527 BACKGROUND The Field of Dreams Subdivisian is being developed by the Neighborhood Economic Development Corporation ~NEDCO} as slow-income housing project. Public improvements were constructed under a contract administered by Lane County. Transportation-related improvements were paid by the County from its Road Fund. NEDCO is responsible for reimbursing the County for all costs associated with the design, construction and inspection of sanitary sewers. when contract costs through Lane County for the sewer element exceeded NEDCO's budget, the City agreed to NEDCO's request to pay the County for sanitary sewer contract costs and recover those payments through a local improvement district formation and assessment process. NEDCD has provided the City a written waiver to forgo hearings for formation of the local improvement district SLID} and for assessments of the improvement casts. LOCAL IMPROVEMENT DI TRI T Implicit within the staff request for a final assessment is a request that a local improvement district be formed to assess all property within the Field of Dreams Subdivision. The LID will include the sanitary sewers constructed by Lane County under an agreement with NEDCO. ASSESSMENTS The total assessable cost for the sewers built under contract by Lane County is $80545.52. The total assessable costs includes the cost incurred by Lane County in the construction of the sewers and other costs allowed in EC §7.170, The costs of the project will be apportioned equally to the 44 lots in the subdivision. Such an assessment is allowed pursuant to EC §7.1752}fib}5.a. because each property is specially benefited by the construction of the sewer to that property. A m n Am n All properties or lots within the subdivision will be assessed. Under City of Eugene assessment policies, the total project costs and final unit assessable costs are determined to be as follows: Total cost $80545.52 Unit Costs $ 1830.58 per lot These costs are higher than the property owner originally estimated when contracting with Lane County for the construction. However, these costs are comparable to most projects of this size. The costs represent the actual costs incurred by Lane County and the City of Eugene. FIELD OF DREAMS SUBDIVISION LID FORMATION AND FINAL ASSESSMENT Page 1 FINDINGS AND RECOMMENDATIONS PUBLIC HEARING The public hearing required far the formation of an LID was waived by the sole property owner within the proposed LID. The public hearing required prior to the final assessment for the LID was waived by the sole property owner within the area to be assessed. The request for the LID was made by the owner of the propert~r, but not in the form required by EC §7.1604}, Representatives of the applicant were informed of the right to hearings on the question of the formation and assessment of the LID before they agreed to waive the hearings. FINDINGS AND RECOMIV~NDATION Procedure The process of forming the local improvement district and levying the final assessment at the same time is unusual. Authority for the combined activity is alluded to, if not specifically established, in EC §7.1664}, which provides: "If the council orders a local improvement to be made and does not concurrently levy the assessments therefore, notice of the prospective assessments to finance the improvement shall be given to each title company known to the finance officer to be conducting business in the city. " In this case there is only one owner of the property subject to the assessment and the owner is not only aware of the LID, but has requested the action as a way to deal with the cost of the sewer construction, It would be fruitless to require compliance with EC §7.1651}, which requires public notice and a call for bids on the proposed local improvement, because the work was finished before any notice was possible. Numerous other requirements concerning notice and prehearing mailings have been set aside because they do not fit where the entire process is accomplished in one session. The primary purpose of these requirements is to offer affected property owners the opportunity to participate in the decision making process. A secondary purpose is to notify those who may otherwise find the project financially interesting about the project. Because of the unusual aspects this project, the Hearings Cf~icial finds that the spirit, if not the letter, of the procedural requirements of chapter 7 of the Eugene Code concerning the formation of an LID and the levying of assessments has been met thus far in this LID process. The Hearings Official finds that the property owner's waiver of rights includes a waiver of rights to notice as we11 as rights to hearings. The Hearings 4f~icial further finds that this waiver is made for reasons that go beyond the expected price of the sanitary sewer at the time the waiver was made, and is not limited to the conditions specified in the waiver. h ri i Construction of the sanitary sewers is a part of the total public improvement project within the subdivision. Lane County agreed to provide support for the low income housing project in the farm of construction of streets, curbs, gutters storm and sanitary sewers. The developer, NEDCD, agreed to pay the County some of the casts of this construction. Construction costs far the sanitary sewer portion of the total project ran higher than expected, and have increased FIELD OF DREAMS SUBDNISION LID FORMATION AND FINAL ASSESSMENT Page Z FINDINGS AND RECOMMENDATIONS further since NERCO initiated discussions with the City concerning City support of this portion of the project. Assessment of the costs of sewer construction to each of the lots within the subdivision will allow the cost to be passed on equitably to those who acquire use of the parcels. The property owner's ability to pay the cost of the improvements, plus interest, over ten years will allow the project to progress without an immediate financial burden that might defeat the purpose of the low income housing project. Each lot in the platted subdivision will be specially benefited in the amount of $1,530.55, the proportional cost of the sanitary sewer project. The Hearings Official also finds that the project is one for which the assessments are for local improvement as set forth in ORS 3 ~ 0.4 ~ 0 because: 1. The assessments do not exceed actual costs; Z. The assessments are imposed for a capital construction project which provides a specific benefit for a specific property or rectifies the problem caused by a specilxc 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 X10} years. RECOMMENDATION Due to the unusual consolidated character of the process in this instance, the Hearings Ofl~cial recommends the following: 1. Pursuant to EC §7.1605}, the Council, on its own motion initiate consideration of a proposed local improvement. 2. Pursuant to EC §7.1bb~3}, the Council adopt a resolution approving the formation of a local improvement district encompassing the entire platted subdivision known as the Field of Dreams Subdivision for the purpose of constructing sanitary sewers within the local improvement district. 3. Pursuant to EC §7.1S7~Z}, the Council adopt an ordinance levying a final assessment of the total cost of the project proportionally to each lot of the platted Field of Dreams Subdivision by assessing each property $1530.58. Respect lly sub d, Milo Mecham Hearings Official Dated April 4, 1995 FIELD OF DREAMS SUBDNISION LID FORMATION AND FINAL ASSESSMENT Page 3 FINDINGS AND RECONIlVIENDATIONS