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HomeMy WebLinkAboutOrdinance No. 20104ORDINANCE NO. a0 I 0 AN ORDINANCE LEVYING ASSESSMENTS FUR STORM SEWER ON GILHAM ROAD FROM HUNEY~VOOD STREET TO AYRES ROAD, AND AYRES ROAD FROM GILHAM ROAD T4 5~0 FEET WEST; AND DECLARING AN EMERGENCY. CONTRACT 96-11}JOB #3459} The City Council of the City of Eugene finds that: an the 1 st day of February, 1996, as authorized in Subsection 7.1605}, Eugene Code,1971 SEC} the City Engineer initiated the proposed local improvement consisting of storm sewer on Gilliam Road from Honeywaod Street to Ayres Road, and Ayres Road from Gilliam Road to 500 feet west. After due notice and a public hearing thereon before the hearing official, and no remon- strances having been filed, on the 8th day of July,1996, the City Council formed the local improve ment district and authorized construction of the local improvement. The actual cost of the local improvement is ascertained to be $322,889.16 and the amounts to be assessed to and borne by the specially benefitted property and to be borne by the City or others have 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 E. C. 7.170 and 7.175. A notice containing the information required by E.C. 7.185 was posted on a bulletin board at City Hail and given by certified mail to the owners of the parcels of real property subj ect to the assessment more than ten days prior to the scheduled public hearing before the hearing official. At ordinance -1 the time and place specified therein, and no persons appearing personally or in writing, nor any remonstrances having been filed, the hearings official considered the evidence and has reported his adopted f ndings to the City Council. The Council has reviewed and considered the assessment report of the City Engineer and Finance Officer and the hearings off cial's findings and summary, and based thereon, THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS: Section 1. The hearings official's summary is hereby made a part of the Council's record in these proceedings, and the hearings official's findings, including those regarding compliance with E.C. 7.160 to 7. ~ 90, attached hereto as Exhibit B and incorporated herein by reference, are hereby adopted. Section 2. The actual cost of the local improvement consisting of storm sewer on Gilham Road from Honeywood Street to Ayres Road, and Ayres Road from Gilham Road to 500 feet west is $32Z,S89.16, which 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 Ordinance - 2 respective lots, pans 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. I 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 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 determined by the City Manager as provided in E.C. 2.020. Section 5. The City Recorder is directed to enter in the Jacket 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 benef~tted by the local improvement; 5.2 The name of the owner or reputed owner thereof, or 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 6. Upon enactment of this ordinance, the City Finance ~ff~cer shall send notice of the assessments by first class to the owners of the assessed parcels containing the information required by E.C. 7.190 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 ordinance ~ 3 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 re-adoption over a mayoral veto bytwo-thirds of all members of the Council, Passed by the City Council this Approved by the Mayor this ~~lay of , 1998 .~p~y City Recorder i ~ ~~day of , 1998 /' Mayor Ordinance - 4 N N i-+ ~ ~ N N N --{ ---•{ V V V V V V ~I V ~ ~• ~ ~o ~o vo -vo ~o -vo vo vo x ~ ~ -s W -s W -~ c~ -~ w ~ W -~ W ~ W -~ w --~ m m 0o ao 00 00 00 00 00 00 0 •• •• ~ oo `t~ oo ~ oo ~ W -p oo ~ oo -O oo t3 Oa c+ fDW CDW NW fDW NW CpW CpW fDW ~-~'~' ~C o ~C o ~C o ~C O ~C O ~C O ~C O ~C © W ~ 1-' I-` F-' f-' !--' I~ F-' !-' -p ~ p0o DV Ddb DC31 D~ OW pN C7N ~ (p o CD o ([7 O (D O fb O ~p o fp o N o ~ t0 cn© cno tno tno cno cno cnN tnO 3~ n n n n n n n n J J J J ...1. J. ....J. 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Q, ~ ~ ra m ~~ ~. ..~ w~ ~~ F-' ~~ 3~ (n C~ fa ~ (/'1 "~ H ~m ~n~ J. ~ ~ ~ ri' ---~ ~n rD cn o ~~ ..a. ra ~ ~~ c+ cn o~ mom 3 r. ~'}' C n -~. cn ~ ~~ ~cnr 0o z o~ ~ m n J. ~. :C7 C7 -za m ~~ N ~ W N rn~ to o -v ~v ~D N ~7 .~ m a o ~o W ~e FINDINGS AND RECOMMENDATIONS SUBJECT: FINAL ASSESSMENT FOR STORM SEWERS ON GILHAM ROAD FROM HONEYWOOD STREET TO AYERS ROAD, AND AYERS ROAD FROM GILHAM ROAD TO 500 FEET WEST (CONTRACT #96-11) (JOB #3459) BACKGROUND This project was initiated by a irrevocable petition from the property owner Paradise Development Inc.} who will bear 100% percent of the assessable cost of the local improvement district ~L1D}. After initiation, one parcel of the originally undivided property was sold, but the original owner agreed to pay the assessment apportioned to the parcel sold. The City Engineer initiated the project, as provided for in the Eugene Code 7.1605} on February 1,1996. City staff received a letter from the property owner waiving the right to a local improvement district hearing and requesting that the City Council approve the project directly. The project was advertised on May 17,1996, and bids were opened June 18,1996. The project has now been completed, and final assessment costs have been calculated. This LID is somewhat unique in that it was bid with the Gilham Road Sanitary Pump Station and sanitary sewers. City staff combined the three improvements projects because they were in the same vicinity and combining them was expected to lead to a cost saving. The final assessment is only for the Paradise Development Inc. storm sewer portion, and the assessment only includes the costs associated with the completion of the storm sewer portion of the project. PROJECT The project includes construction of 1,087 feet of storm sewer. ASSESSMENT Final Under City of Eugene assessment policy,100percent of the assessable improvement costs will be distributed to the benefited property owner. The final assessment unit costs are: Storm Sewer $322,589.16 The cost of the project attributable to the additional size of the storm sewer beyond the standard assessable size will be paid by the City. Cost to City: $387,395.61 STGRM SE'~ERS ON GILHAM ROAD AND AYERS RGAD FIlVAL ASSESSMENT PAGE ~ Projected- Cost At the time of formation of the Local Improvement District following the bid opening, the assessable unit costs listed below were quoted to property owners, based on the low bids received prior to construction: Storm Sewer cost to property owner $304,427.19 Cost to City: $302,359.53 The final improvement costs are higher than quoted prior to forming the local improvement district, because of higher than expected groundwater conditions and utility conflicts that forced delays in this project. PUBLIC HEARING The property owner was informed more than ten days in advance of the date of a scheduled public hearing on the final assessment. The City Engineer submitted a report to the Hearings Officer Exhibit B}. The property owner appeared at the hearing and raised several questions. The property owner questioned the propriety of proceeding on the storm sewer improvements without also undertaking street improvements. The property owner also questioned whether or not his property was the only property benefited by the improvements. City engineering personnel explained that the project had been initiated without waiting for the opportunity to combine the storm sewer project with a street improvement project because the property owner needed to have the existing storm sewer system redirected around the property. Because the property owner was the only property that benefited from the project to redirect the storm sewer, the property owner was the only one assessed. Minutes of the Public Hearing are attached as Exhibit A. FINDINGS AND RECGMMENDATIGNS -- Prnr.Pr~~~rP The Hearings official finds that notice of the public hearing was provided in accordance with the relevant provisions of the Eugene Code, and that all property owners were provided an opportunity to participate in the proceedings. Assessment of all Benefited Pro ernes The single property in the local improvement district was the only benefited property. While other properties may use the storm sewer, they derived no benefit from the project, because they had been using the pre-existing storm sewer system prior to the project. The project was initiated so that the benefited property could be developed, divided and sold as separate parcels. Without STORM SEWERS 4N GtLHAM ROAD AND AYERS ROAD FINAL ASSESSMENT PAGE 2 the need to develop the parcel subject to the assessments, no change in the existing storm sewer system would have been necessary, nor would the project have been initiated. Nature of the Assessment The Hearings Officer finds that the project is one for which the assessments are for local improvements asset forth in ORS 314.4I0 because ~ . 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 ~ l o} years. Recommendation The final improvement costs are higher than initially quoted, but the increase in cost was caused by conditions not anticipated prior to actual work, but which were reasonably related to the project. The Hearings Official agrees with the recommendation of the City Engineer. The Hearings Official recommends approval of the assessment distribution. The Hearings Official also recommends that the City Council adopt an ordinance for assessment as set forth by the City Engineer. Respectfully submitted, ~~~%-~~ Milo Mecham Hearings Official STORM SEWERS ON GILHAM ROAD AND AYERS ROAD FINAL ASSESSMENT PAGE 3 Exhibit A MINUTES Final Assessment Storm Sewers on Gilliam Road from Hollywood Street to Ayers Road and Ayers Road from Gilliam Road to 500 feet west Job # 3459 December 17, ~ 997 Public Hearing Hearings Official Milo Mecham convened the hearing at b:0~ 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 were Eugene Public works Engineering staff Jeff Lankston and Teri Higgins. Principal Civil Engineer Jeff Lankston began by providing a brief description of the project and its histo .This project was initiated at the request of the property owner. Prior to the rY initiation, a drainage channel, part of the City's stormwater system, passed diagonally from the southeast to the northwest of the property. The presence of the drainage channel severely limited development of the property. At the request of the property owner, the City initiated the project to enclose the drainage system and divert it around the property. This resulted in the construction of l,0$7 feet of storm sewer. Under the City's policy one hundred percent of the assessable improvement costs will be distributed to the property owners of the property where the previous drama e ditch had traversed. The final assessment costs for the property owners is $322,SS9. ~ 6. g Mr. Lankston explained that this final cost was slightly higher than the price previously quoted to the ro erty owner because of delays in the construction. Mr. Lankston concluded that the overall p p cost of the project was comparable with the cast of projects of a sirnxlar size and character. The public members attending the hearing were Bob Meltebeke and Larry Olson. Bob Meltebeke is the owner of one of the two properties subject to the assessment and, pursuant to an a regiment with the other ro girt owner, is responsible for the entire assessment. Mr. Meltebeke g p p Y asked if there could be a cost breakdown provided. Mr. Meltebeke acknowledged signing a consent to the storm sewer development, but indicated that the consent was based on an assumption that the storm sewer improvements would be done at the same time as street improvements were done, which would have reduced the cost of the storm sewer improvements. Mr. Meltebeke also indicated that he was concerned with the cost, because when he signed the consent to the formation of the local improvement district, he did not know the cost and felt that he had no choice but to sign. Mr. Meltebeke recalled that signing the consent was a precondition to the viable development of the property. A discussion of the history of the project ensued. Mr. Lankston explained that the reviously existing drainage system had been redirected because its diagonal path across the p Meltebeke property meant that few if any lots could have been created on the parcel. Mr. Lankston explained that the open drainage system was put into a 72 inch pipe. In accordance with the Eugene Code, the cost of this had been split between the property owner and the City, with the Minutes -December 17,1997 Public Hearing Page 1 property owner paying approximately the first half of the cost and the City paying the rest of the cost for the pipe that was sized larger than necessary to serve the assessed property. Mr. Lankston acknowledged that the irrevocable permit that Mr. Meltebeke signed did include development of curbs, streets and other improvements. The decision was made to da the storm sewer system independent of the other developments because of Mr. Meltebeke's need to have the diagonal channel removed from the property. Mr. Meltebeke and Mr. alson, who is or has been an employee of Mr. Meltebeke, questioned if the Meltebeke property was the only property specially benef ted by the installation. They pointed out that there were large areas to the south that also drained into the system. They also speculated that some areas to the northeast might also be connected to the system because during construction they had noticed piping in the area that would have allowed such connection. Mr. Lankston explained that the pipe junction with several passible connection points that had been observed in the area had not been used. Mr. Lankston acknowledged that there were other properties upstream of the Meltebeke property that also drained into the system, but he explained that the City did not consider these properties to be benefited because they would have been equally well served by continuing to use the drainage system as it flowed through the Meltebeke property. Mr. Meltebeke asked if it was common to include interest charges in the assessment. Mr. Lankston indicated that it was a general practice to include the warrant interest in the assessment. Mr. Lankston explained that in this project the interest costs had been a little higher than normal because of 'the delays caused by high levels of groundwater. Mr. Meltebeke concluded with an explanation that at the time the irrevocable consent had been signed, and since that time, he had been distracted by personal concerns, and had not paid as close attention as he would have wished. He acknowledged signing the consent, but was concerned that he had not understood the consequences when he had signed. Mr. Meltebeke indicated that he felt that the hearing was helpful in answering his questions and providing him a better understanding of the process. There being no further questions or testimony, the hearing concluded at 6:3~. Minutes -December 17,1997 Public Hearing Page 2 • ~. ~AY r' ~ ~ ~ . ' .~~y ' ~:. C ~ ~ .. .Y~ ~-.1 . 'L ~a ~ ' '' '" . ~ . - .. ~ 1 :F i t ~. Q MILLONA LOOP -_~ BELTLINE VICINITY .~ MAP