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HomeMy WebLinkAboutItem 3 - Alley Assmt. OrdinanceEUGENE CITY COUNCIL AGENDA ITEM SUMMARY Action: An Ordinance Concerning Apportionment of Assessments for Alley Improvements; Amending Section 7.175 of the Eugene Code, 1971; and Providing an Effective Date Meeting Date: May 24, 2004 Agenda Item Number: 3 Department: Public Works Staff Contact: Mark Schoening www. ci. eugene, or. us Contact Telephone Number: 682-5243 AGENDA ITEM SUMMARY The City Council is being asked to adopt an ordinance that would amend the Eugene Code pertaining to the apportionment of assessments for alley improvements. The amendments to the Eugene Code would require that all costs associated with alley improvements be assessed to the benefitting properties and that assessments be calculated on a block-by-block basis. The amended code would still apportion assessments for alley improvements using land use weighting factors based upon zoning and existing use applied to property area and alley frontage, respectively. The City Council adopted an identical ordinance on May 10, 2004 by a 5-2 vote. However, the Municipal Charter requires an affirmative vote of two-thirds of the City Council for ordinances amending the Eugene Code pertaining to assessments. BACKGROUND Council Action History The City Council held a work session on November 24, 2003, to review a report from the City Engineer covering the feasibility and estimated cost to improve the unimproved alleys, funding sources, range of estimated assessments, assessment code issues, design standards, timing and a proposed implementation plan. The City Council directed the City Manager to proceed with a project to improve the unimproved alleys in the West University Neighborhood (WUN), consistent with the WUN Task Force Final Report and to pursue potential additional funding sources to replace the Community Development Block Grant (CDBG) funds. Also, at this meeting staff identified issues with the current method of apportionment of costs for alley improvements and proposed future consideration by the council of amendments to the Eugene Code regarding the apportionment method. The council also requested that staff investigate the feasibility of amending the Eugene Code to assess all costs associated with alley improvements. The City Council held a work session on March 8, 2004, to discuss the Eugene Code regarding the apportionment of assessments for alley improvements. The direction that staff received was that the majority of the council want an apportionment method that includes a land use factor and support assessing all of the costs associated with an alley improvement to the benefitting properties. L:\CMO\2004 Council Agendas\M040524\S0405243.wpd The City Council held a public hearing on the ordinance changes on April 12, 2004. There was no public testimony at the hearing. The City Council adopted an identical ordinance on May 10, 2004, by a 5-2 vote. Policy Issues The policy issue before the council is whether to amend the Eugene Code pertaining to the apportionment of assessments for alley improvements to assess all of the costs associated with an alley improvement to the benefitting properties. Council Goals FAIR, STABLE AND ADEQUATE FINANCIAL RESOURCES - A local government whose ongoing financial resources are based on a fair and equitable system of taxation and other revenue sources and are adequate to maintain and deliver municipal services. Financing of alley improvements through the formation of local improvement districts fairly and equitably allocates the cost of the improvements to the benefitting properties. Assessing all of the costs associated with alley improvements is reasonable because alleys primarily benefit the abutting property owners. Financial and/or Resource Considerations Amending the Eugene Code requiring that all costs associated with alley improvements be assessed will increase the financial burden to the benefitting properties. As an example, under the current Eugene Code for the proposed WUN alley local improvement district (LID), it is estimated that the City's share of the total project cost of $1.6 million will be $116,000 or approximately 7%. Because of the large number of alleys involved in this project, it is believed that the approximately 7% City cost would be typical of alley improvement projects throughout the City. Amending the Eugene Code requiring that assessments be calculated on a block-by-block basis rather than a segment-by-segment basis will slightly simplify the assessment process while continuing to allocate the costs for each alley to the properties abutting and having direct access to the alley. Timing Per the Municipal Charter, ordinances amending the sections of the Eugene Code pertaining to the procedures and assessments for public improvements are effective six months after City Council adoption. The council initiated the WUN alley improvement project at the January 12, 2004, City Council meeting. This action allowed staff to proceed with the public outreach, design and bidding of the improvements. It is anticipated that the council will adopt a resolution forming an LID for the WUN alley improvements in early April 2005. This will allow construction of the improvements to occur in the summer of 2005. Amendments to the Eugene Code must be adopted by early November 2004 to be applicable to the WUN LID. More importantly, staff have initiated a public communications plan for the WUN alley improvement project and information on individual assessments is likely to be the most frequently asked question. Therefore, the timely adoption of amendments to the Eugene Code will ensure a successful public communications plan. OPTIONS L:\CMO\2004 Council Agendas\M040524\S0405243.wpd The options available to the council include: 1. Adopt an ordinance amending the apportionment of assessments for alley improvements. 2. Do not adopt an ordinance to amend the apportionment of assessments for alley improvements. STAFF RECOMMENDATION Staff recommends that the council adopt an ordinance amending the apportionment of assessments for alley improvements. SUGGESTED MOTION Move to adopt an ordinance concerning apportionment of assessments for alley improvements; amending Section 7.175 of the Eugene Code, 1971; and providing an effective date. ATTACHMENTS A. Proposed Ordinance FOR MORE INFORMATION Staff Contact: Mark Schoening Telephone: 682-5243 Staff E-Mail : Mark. A Schoening~ci.eugene.or.us L:\CMO\2004 Council Agendas\M040524\S0405243.wpd ATTACHMENT A ORDINANCE NO. AN ORDINANCE CONCERNING APPORTIONMENT OF ASSESSMENTS FOR ALLEY IMPROVEMENTS; AMENDING SECTION 7.175 OF THE EUGENE CODE, 1971; AND PROVIDING AN EFFECTIVE DATE. (CB #4871) THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS: Section 1. Subsection (6) of Section 7.175 of the Eugene Code, 1971, is amended as follows: 7.175 Local Improvements - Apportionment of Assessments. (6) Alley improvement assessments. Alley improvement assessments shall be apportioned as follows: (a) The front footage of a parcel along the alley shall be ascertained and that footage shall be weighted, on the basis of existing use of the parcel under the zoning of the city, by multiplying the footage by the factor indicated for that use in the following table: Use Factor Single family dwelling or duplex 1.0 Other residential 3.0 Commercial or General Office 10.0 Industrial 10.0 Other 1.0 - 10.0 According to the most intensive use of the parcel most comparable to the use listed above as determined by the city engineer. (b) The area of each such parcel that is within 160 feet of the alley, as measured at right angles from the front footage of the parcel, shall be ascertained and that area shall be weighted on the basis of permissible use of the parcel under the zoning of the city, by multiplying the area by the factor indicated for that use in the table set forth in (6)(a) of this subsection. (c) One-half of the general costs and overhead to be assessed shall be apportioned on the basis of the weighted front footage and one-half on the basis of the weighted areas. t ......................... Y '~"'1~ ....... · ~~" '~'~'~ "~'""~ '~' ,~u ,.,,.,, ~re eh,nil I~ far a,nr, h e~t'q-iar'~ af t-h~ ,nll~t et~r~,nr,nft~l~t 1 Assessments for alley improvements shall be calculated on a Ordinance- 1 L:\CMO\2004 Council Agendas\M040524\S0405243-attA.doc block-by-block basis and shall include all the costs of the alley improvement, including, but not limited to: 1. Catch basins and pipings from catch basins to storm sewers for properties specially benefited by the basins; and 2. Intersections of alleys, and intersections of alleys with streets. ~ecfion 2. Th~ Oity ~oord~r, ~t th~ r~qu~t of, or with th~ oonourmno~ of th~ Oity Attorney, i~ ~uthoriz~d to ~dmini~tmtiv~ly correct ~ny r~f~r~no~ ~rror~ contained h~min or in other provi~ion~ of th~ ~u~n~ Ood~, ~?~, to th~ provi~ion~ ~m~nd~d or r~p~l~d h~min. ~ecfion ~. Motwith~t~ndin~ th~ provi~ion~ of 8~otion ~2 of th~ ~u~n~ Oh~rt~r of 2002, pursuant to 8~otion ~ of that Oh~rt~r, th~ ~m~ndm~nt~ to 8~otion ?.~ ?~ of th~ ~u~n~ Ood~, ~?~, ~ provided in thi~ Ordinance, ~h~ll b~oom~ ~ff~otiv~ ~i~ month~ from th~ d~t~ of it~ p~ by ~n ~ffirm~tiv~ vot~ of two-third~ of th~ m~mb~r~ of th~ Oity Oounoil. Mow~v~r, th~ ~m~ndm~nt to that ~otion ~h~ll not ~pply to ~n improvement ~uthoriz~d by th~ Oity Oounoil prior to th~ ~ff~otiv~ d~t~ of thi~ Ordinance. ~ssed by ~he Bi~y Bouncil ~his ~ppro~ed by ~he ~yor ~his ~ d~y o~ ,2004. ~ d~y o~ ., 2004. City Recorder Mayor Ordinance - 2 L:\CMO\2004 Council Agendas\M040524\S0405243-attA.doc