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HomeMy WebLinkAboutItem 4: Resolution Forming LID for Crest Drive ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Public Hearing: Resolution 4984 Forming a Local Improvement District (LID) for Paving, Constructing Curbs, Sidewalks, Medians, Street Lights, Stormwater Drainage and Water Quality Facilities on Crest Drive from Blanton Road to Lincoln Street, Storey Boulevard from Crest Drive to Lorane Highway, and Friendly Street from Lorane th Highway to 28 Avenue (Job #4546) Meeting Date: June 15, 2009 Agenda Item Number: 4 Department: Public Works-Engineering Staff Contact: Mark Schoening www.eugene-or.gov Contact Telephone Number: 682-5243 ISSUE STATEMENT This public hearing is a continuance of the public hearing held before a hearings official on May 28, 2009, on a proposed Local Improvement District (LID) due to the receipt of remonstrance petitions from property owners who will bear over 50% of the assessable costs of the proposed improvements. Action on this item is scheduled for June 22, 2009. BACKGROUND This project was initiated by the council action on September 8, 2008, when the council authorized the preparation of plans and specifications and call of bids for construction of the local improvements pursuant to Section 7.160(5) of the Eugene Code, 1971. Bids were opened on May 21, 2009, with Babb Construction Company, dba Delta Construction Company, dba Delta Concrete, as the apparent low bidder. Bid prices were very competitive from the five bidders and construction costs were well below the engineers estimate. The property owners were notified of the pending LID hearing ten (10) days prior to the hearing as required by Eugene Code. A LID formation hearing conducted by a hearings official was held on May 28, 2009. At that hearing, information was presented about the City’s assessment policies and procedures and the estimated assessments based on the low bid received. Prior to the hearing, the City received a remonstrance petition signed by multiple property owners. Taking into account the property owners who subsequently requested their names be removed from the petition and the irrevocable petitions, the petition signatures represent 73 properties representing 65% of the assessable frontage. Eugene Code requires that the public hearing be continued before City Council if remonstrances are received from owners who would pay over 50% of the assessments. Z:\CMO\2009 Council Agendas\M090615\S0906154.doc RELATED CITY POLICIES The Municipal Charter, Chapter IX- Public Improvements, provides the regulatory framework for public improvement procedures and assessments. The Eugene Code, Chapter 7 – Public Improvements, prescribes the process for the initiation of an assessment project, formation of a local improvement district, and computation and allocation of assessments to benefiting properties. COUNCIL OPTIONS Not applicable, this is a public hearing only. CITY MANAGER’S RECOMMENDATION None, this is a public hearing on the proposed resolution. SUGGESTED MOTION None, this is a public hearing on the proposed resolution. ATTACHMENTS A.Proposed Resolution on the Formation of a Local Improvement District (LID) for Paving, Curbs, Sidewalks, Medians, Street Lights, Stormwater Drainage and Water Quality Facilities on Crest Drive from Blanton Road to Lincoln Street, Storey Boulevard from Crest Drive to Lorane Highway, and thl Friendly Street from Lorane Highway to 28 Avenue B.Hearings Official’s Minutes, Findings and Recommendations, City Engineers Report C.Vicinity Map FOR MORE INFORMATION Staff Contact: Mark Schoening Telephone: 682-5243 Staff E-Mail: mark.a.schoening@ci.eugene.or.us Z:\CMO\2009 Council Agendas\M090615\S0906154.doc ATTACHMENT A RESOLUTION NO. ___________ A RESOLUTION FORMING A LOCAL IMPROVEMENT DISTRICT (LID) FOR PAVING, CONSTRUCTING CURBS, SIDEWALKS, MEDIANS, STREET LIGHTS, STORMWATER DRAINAGE AND WATER QUALITY FACILITIES ON CREST DRIVE FROM BLANTON ROAD TO LINCOLN STREET, STOREY BOULEVARD FROM CREST DRIVE TO LORANE HIGHWAY, AND FRIENDLY STREET FROM TH LORANE HIGHWAY TO 28 AVENUE. (JOB #4546) 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 (EC), and after conducting a public hearing on May 28, 2009, receiving the hearings officer’s minutes, findings, and recommendations, and, in accordance with EC 7.166(2), continuing the public hearing before the City Council on June 15, 2009, 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 benefitted properties on Crest Drive from Blanton Road to Lincoln Street, Storey Boulevard from Crest th Drive to Lorane Highway, and Friendly Street from Lorane Highway to 28 Avenue. Section 2. The City Council hereby orders the establishment of a local improvement district on Crest Drive from Blanton Road to Lincoln Street, Storey Boulevard from Crest Drive th to Lorane Highway, and Friendly Street from Lorane Highway to 28 Avenue and in that district to pave, construct curbs, sidewalks, medians, street lights, stormwater drainage and water quality facilities and related improvements (“the Improvements”). Section 3. The costs of the Improvements shall be borne by and assessed to the properties in the district in accordance with EC 7.175. Included in the cost shall be the overhead costs specified in EC 7.170 and whatever other special costs, such as acquisition of interests in real property, that are necessary to make the Improvements. Upon completion of the Improvements, the final costs therefore will be calculated and the owners of the benefitted property shall be notified and the property assessed as provided in EC 7.185 to 7.240. The assessments to be levied for the Improvements are hereby characterized for purposes of the property tax limitation in Section 11b, 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 temporary easements necessary for the construction, is for a public purpose, is necessary for the public welfare, 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. Resolution - Page 1 of 2 Section 5. The City of Eugene, Oregon expects to make expenditures from its available funds to initially pay for the costs of the improvements to Crest Drive from Blanton Road to Lincoln Street, Storey Boulevard from Crest Drive to Lorane Highway, and Friendly Street from th Lorane Highway to 28 Avenue (the “Project”). The City reasonably expects, and hereby declares its intent, to issue bonds or other obligations (the “Reimbursement Bonds”) and to use the proceeds of the Reimbursement Bonds to reimburse the City for the expenditures made from the City’s available funds for the Project. The City expects that the principal amount of the Reimbursement Bonds will not exceed the total project cost of $3,791,37.34. The Reimbursement Bonds are secured by and payable from the installments of final assessments established in accordance with Section 3 of this Resolution. Section 6. Lines of credit and other evidence of indebtedness authorized by City Council Resolution No. 4937 may be issued to finance the construction of the Improvements. Section 7. 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 Special Assessments Capital Projects 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 8. The City Manager, or the person designated in writing by the City Manager to act under Resolution No. 4937, may sign the evidence of indebtedness issued to finance the construction of the Improvements. Section 9. This Resolution shall become effective immediately upon its adoption. The foregoing Resolution adopted the 22nd day of June, 2009. ________________________________________ AIC City Recorder 00229112.DOC;1 Resolution - Page 2 of 2 MEMORANDUM DATE: May 28, 2009 FROM: Mark Schoening, City Engineer TO: Hearings Official SUBJECT: PROPOSED FORMATION OF A LOCAL IMPROVEMENT DISTRICT (LID) FOR PAVING, CURBS, SIDEWALKS, MEDIANS, STREET LIGHTS, STORMWATER DRAINAGE AND WATER QUALITY FACILITIES ON CREST DRIVE FROM BLANTON ROAD TO LINCOLN STREET, STOREY BOULEVARD FROM CREST DRIVE TO LORANE HIGHWAY, AND TH FRIENDLY STREET FROM LORANE HIGHWAY TO 28 AVENUE (JOB #4546) BACKGROUND This project was initiated by Council action on September 8, 2008, when the Council authorized the preparation of plans and specifications and call of bids for construction of the local improvements pursuant to Section 7.160(5) of the Eugene Code, 1971. Bids were opened on May 21, 2009, with Babb Construction Co. dba Delta Const. Co. dba Delta Concrete as the apparent low bidder. Bid prices were very competitive from the five bidders and construction costs were well below the engineers estimate. The property owners were notified of the pending LID hearing ten (10) days prior to the hearing as required by Eugene Code. The LID formation hearing on May 28, 2009, is to review the bid information, confirm whether the LID should be formed and to identify any special conditions that should be included in the resolution forming the LID. City Council Action History The City Council adopted the November 1999 Eugene Street Classification Map with the adoption of Ordinance Number 20181 on November 22, 1999. The streets in the Crest Drive Neighborhood were left unclassified pending a study to determine the appropriate classifications and design standards for the neighborhood. The City Council directed the City Manager to implement the Crest Drive Neighborhood context sensitive solutions (CSS) process on May 8, 2006. A General Fund appropriation of $240,000 was approved as part of the FY07 budget to fund the CSS process. The definition of CSS follows: Context Sensitive Solutions is a collaborative, interdisciplinary project development approach that involves all stakeholders to develop a transportation facility that fits its physical setting while maintaining safety and mobility for all users, and reflecting community needs. The goal of CSS is to create early, open, honest, and continuous communication and sharing of information and knowledge throughout the design process. The City Council appropriated an additional $58,000 as part of Supplemental Budget #1 of FY07 to expand the scope of the CSS process to include “Middle” Crest. The City Council amended the Design Standards and Guidelines for Eugene Streets, sidewalks, Bikeways and Accessways on October 22, 2007, to allow for a minimum street width of 18 feet (two 9-foot travel lanes) in the Crest Drive area. On April 14, 2008, the City Council approved the conceptual design of Crest Drive, Storey Boulevard and Friendly Street as recommended by the Crest Drive Community Team. At this same meeting, City Council amended the Design Standards and Guidelines for Eugene Streets, sidewalks, Bikeways and Accessways to allow for a minimum sidewalk width of 4 feet in the Crest Drive area. On September 8, 2008 the City Council approved a plan to fund the City’s share of the project and to proceed with final design and construction of the project. On October 27, 2008 the City Council approved an amendment to the Design Standards and Guidelines for Eugene Streets, sidewalks, Bikeways and Accessways classifying all of the streets in the Crest Drive area as local streets. Context Sensitive Solutions Process History The Crest Drive Community Team (CDCT) was selected by the Crest Drive Citizens Association (CDCA) and included 21 members made up of property owners on the identified streets, at-large neighborhood representatives and City staff. The CDCT began meeting in 2006. At the start of the context sensitive solutions process, the CDCT developed a set of themes and values, including environmental and ecological, aesthetic, cultural and historic, spiritual and economic values. The CDCT used the themes and values to evaluate the different design concepts before reaching an overall design recommendation. The design process involved City staff working with five separate street teams on five separate street segments – Upper Crest, Middle Crest, Lower Crest, Storey and Friendly. Each street team presented its conceptual design to the entire CDCT. As part of the design process each street team evaluated its design using the Themes and Values developed and approved by the CDCT. In addition to the CDCT meetings, public open houses were held during the design process as follows: Community Open House was held October 5, 2006 at the Crest Drive Elementary School. Notice was provided in the Fall 2006 newsletters, postcard mailing and in the newspaper. The open house consisted of various stations where residents could learn about the context sensitive solutions and design process, the CDCT, and the work done to date. Handouts about the City’s assessment policy were available at the open house. Approximately 53 residents participated and/or attended the open house. Community Open House was held February 13, 2007 at the United Lutheran Church. Notice was provided in the Winter 2007 newsletters, postcard mailing and in the newspaper. The open house consisted of various stations where residents could learn about the work to date and upcoming milestones, the addition of “middle” Crest to the project scope, street right of way delineation and the results of the topographic survey, and City assessment policies and procedures. Approximately 45 residents participated and/or attended the open house. Community Open House was held June 20, 2007 at the Amazon Community Center. Notice was provided in postcard mailing and in the newspaper. The open house provided residents the opportunity to view and provide feedback on the project street design concepts and to learn about the context sensitive solutions process and the city assessment policies and procedures. The City provided an assessment estimate of $180 – $200 per front foot at this open house. Approximately 75 residents participated and/or attended the open house. Over the course of two CDCT meetings on June 28 and July 12, the CDCT reached consensus on the conceptual design for all five street segments. The recommended design was presented at a general meeting of the Crest Drive Citizens Association on January 15, 2008. The CDCA passed a motion recommending approval of the design concept for Crest Drive, Friendly Street and Storey Boulevard at its general meeting held on February 12, 2008. The City Council held a public hearing on the concept design on February 19, 2008 and approved the concept design on April 14, 2008. On October 22, 2008 a letter was sent to all property owners within the proposed LID providing basic information about the City’s assessment policy and procedures. The letter also included the assessment estimate of $180 - $200 per front foot with assessments projected to be due in late 2009 or early 2010. At this time the total project cost was estimated at $5.75 million and the assessable portion of the cost at $2.6 million. PROJECT SCOPE The street improvements will consist of 18-foot wide paving (two 9-foot wide travel lanes) with curbs (flat, or at grade, and 6” vertical), concrete walk on at least one side of the street, street lights at pedestrian crossings, traffic calming (speed tables, chicanes, chokers, medians, and traffic circles), street trees, and storm water drainage system with storm water quality facilities. FUNDING AND ASSESSMENTS The longstanding City practice has been for all properties adjacent to streets that have not been improved to City standards to participate in the improvement cost. The funding sources for the City’s or non- assessable share of the improvement project costs are the Capital Road Fund, Stormwater System Development Charges (SDC) Fund and Stormwater Utility Fund. There are 126 abutting property owners that will be assessed for the street portion of the improvement on a per front foot basis as outlined in Chapter 7 of the Eugene Code. Per Eugene Code, property owners of parcels within a low-density residential zone shall be assessed according to the functional classification of the street. On a local street, low density residential properties are assessed for half the pavement width up to 34’ of total width, and associated drainage system for the portion of pavement to be assessed. Because the streets in this proposed LID will be 18’ wide, the property owners will be assessed for the half street width of 9 feet. The City pays for the intersections and a portion of the stormwater drainage improvements. Property owners generally pay for actual frontages with exceptions based on the zoning, land use, lot size, level of development and frontage. With the exception of parcels within a low-density residential zone, developed and partially developed parcels within all zones shall be assessed for the full frontage abutting the street improvement and for 9 feet of the pavement width. Vacant parcels less than one-half acre in size and fully developed parcels with a single family dwelling in residential zoning are assessed for the actual front footage abutting the improvements, except no parcel shall be assessed less than 50 feet or more than 100 feet. Partially developed parcels of one-half acre or larger with a single family dwelling or duplex in a low density residential zone and having more than 100 feet of frontage abutting the improvement shall be assessed for 100 feet of frontage at the time of the improvement, and the remaining frontage shall be delayed until the property is further developed. Vacant parcels of one-half acre of larger shall not be assessed at the time of the street improvement, but will pay the assessment upon development of the property. Costs listed below are the estimated assessment costs calculated using the low bid, known and projected costs. The calculations are consistent with adopted Council policy. Paving 9-foot (per front foot) $133.63 Sidewalk and drive aprons (per square foot) $5.34 Total Estimated Assessable Cost $ 2,025,907.11 Total Estimated City Cost: w/o Low Income Subsidy: $ 1,765,469.23 Total Estimated Project Cost $ 3,791,376.34 Assessment financing, a 10-year payment plan through the City, is available to all property owners within the improvement district as identified by Eugene Code, Chapter 7. An interim interest rate of 8 percent is set by administrative order and is in effect from the time assessments are levied until assessment bonds are sold. The administrative order will be reviewed in the next several months with the goal of more closely aligning the interim interest rate with the market interest rate. The final interest rate is dependent upon the interest rate received on the bond sale. LOW INCOME SUBSIDY Approximately 107 residential property owners were notified of the Low-to-Moderate Income Street Improvement Subsidy program. The subsidy program is available to property owners who occupy a single family dwelling or duplex and meet other program criteria. Owners were sent fact sheets which describe the household size and income levels for the subsidy program which is based on the current Lane County Median Family Income. Application forms were also included in the mailing. Property owners were given until May 5, 2009 to return their application forms to determine eligibility. Eighteen property owners responded. At this time it appears that fourteen owners qualify for this program. If the project goes forward there will be one more opportunity for property owners to apply for the program at the time of final assessment, currently estimated to be in early 2011. REMONSTRANCE PROVISION Eugene’s Code specifies that unless properties are associated with previously signed irrevocable agreements with the City, property owners who will bear a share of the cost of an improvement can formally remonstrate (object to the project in writing). If those who will bear over 50 percent of the assessable cost of the improvement sign and submit valid petitions or written objections to the project, there must be a two-thirds majority vote of Council to override the remonstrance and approve the project. The City has received a petition with the following wording: “Petition of Remonstrance Again Crest-Storey-Friendly Area Road Improvement Project. The following citizens directly involved in the assessment of the Crest-Storey-Friendly Area Road Improvement Project hereby formally remonstrate.” Since the submittal of the petition, two of the property owners who signed the petition have contacted City staff to remove their name from the petition. One signature was for a property with no frontage along an assessed street and was removed from the tally. Taking these exceptions into account, the petition represents 84 properties and 72% of the assessable frontage, excluding the public property owned by the City of Eugene, EWEB and School District 4J. The following parcels have recorded irrevocable petitions: 18-03-07-22 Lot 3202 18-03-07-22 Lot 3203 (Signed Remonstrance Petition) 18-03-07-22 Lot 3204 18-03-07-23 Lot 103 (Signed Remonstrance Petition) 18-03-07-23 Lot 104 (Signed Remonstrance Petition) 18-03-07-23 Lot 105 (Signed Remonstrance Petition) 18-03-07-23 Lot 2600 (Signed Remonstrance Petition) 18-03-07-23 Lot 2601 (Signed Remonstrance Petition) 18-03-07-23 Lot 2701 (Signed Remonstrance Petition) 18-03-07-23 Lot 2702 18-03-07-23 Lot 2703 (Signed Remonstrance Petition) 18-03-07-24 Lot 1804 (Signed Remonstrance Petition) 18-03-07-24 Lot 1806 (Signed Remonstrance Petition) 18-03-07-24 Lot 1807 (Signed Remonstrance Petition) 18-03-07-32 Lot 5300 18-03-07-32 Lot 5400 18-03-07-32 Lot 6700 18-03-07-32 Lot 6800 Eleven of the properties with irrevocable petitions signed the remonstrance petition. Taking the irrevocable petitions into account, the petition signatures may be reduced to 73 properties representing 65% of the assessable frontage. Since publishing the Notice of the Public Hearing, the City has received five letters regarding the project. Copies of the letters and petition are attached to this memo. RECOMMENDATION There has been substantial public process in developing the Crest Drive, Storey Boulevard and Friendly Street improvement project. At numerous times in the public process information has been shared and discussed on street design, assessment code, estimated project costs and assessments. In addition, the City Council has held numerous work sessions and public hearings on various aspects of the project and taken action during different phases of project development. The City received five bids all of which were below the Engineer’s Estimate. The low bid was almost 30 percent below the Engineer’s Estimate. As a result of the very competitive bidding climate the estimated assessments are substantially lower than earlier estimated. Staff recommends approval of formation of the LID for the Crest Drive, Storey Boulevard and Friendly Street improvement project.