HomeMy WebLinkAboutItem 7: Ordinance Levying Assessments for Crest Drive
ECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Action: Approval of Minutes, Findings and Recommendations from the Hearings
Official and Adoption of An Ordinance Levying Assessments for Paving, and
Constructing Curbs, Sidewalks, Medians, Street Lights, Stormwater Drainage, and Water
Quality Facilities on Crest Drive from Blanton Road to Lincoln Street, Storey Boulevard
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from Crest Drive to Lorane Highway and Friendly Street from Lorane Highway to 28
Avenue; and Providing an Immediate Effective Date (Contract 2009-30) (Job #4546)
Meeting Date: April 11, 2011 Agenda Item Number: 7
Department: Public Works-Engineering Staff Contact: Mark Schoening
www.eugene-or.gov Contact Telephone Number: 541-682-5243
ISSUE STATEMENT
The City Council is being asked to approve the Hearings Official’s Minutes, Findings and
Recommendations dated March 23, 2011; and adopt an ordinance levying assessments for paving and
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
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Highway and Friendly Street from Lorane Highway to 28 Avenue.
This item has an immediate effective date. An immediate effective date requires a two-thirds majority
or six affirmative votes from the council to enact. Ordinances without an immediate effective date do
not take effect for 30 days. Without an immediate effective date, an additional 30 days of interest
expense will accrue.
BACKGROUND
The City Council formed the Local Improvement District (LID) for the project on June 22, 2009.
Construction of the project has been substantially completed, estimated final costs have been tabulated,
and final assessment costs have been calculated. The property owners were notified of the proposed
assessments and the pending assessment hearing in a Notice of Proposed Assessment letter mailed on
February 1, 2011, meeting the requirement in Eugene Code Section 7.185 for ten (10) days notice prior
to the hearing.
The hearing to consider comments on the proposed assessments was held on February 15, 2011. The
intent of the hearing was to review the final project cost, consider comments on the proposed
assessments, and to provide evidence to be included in the ordinance levying the assessments by the
City Council. The Hearings Official’s Minutes, Findings and Recommendations are exhibits to the
attached Ordinance. The Hearings Official recommends the assessment be levied as calculated.
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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. This conceptual design
included streets with nine-foot travel lanes and four-foot-wide sidewalks predominately on one side of
the street based on exceptions to design standards to meet a variety of desired outcomes on this project.
The current findings of the Hearings Official include a finding specific to the assessment of the sidewalk
costs to properties on both sides of the streets within the LID.
The project was initiated by the council action on September 8, 2008, pursuant to Section 7.160(5) of the
Eugene Code and staff was directed to prepare plans and specifications and call for bids for construction
of the local improvements.
Bids were opened on May 21, 2009, with Babb Construction Co. dba Delta Const. Co. dba Delta
Concrete Inc. as the low bidder. The property owners were notified of the public hearing regarding
formation of the proposed LID and a hearing was held May 28, 2009, and continued to a public hearing
before the City Council on June 15, 2009. Minutes, Findings and Recommendations from the Hearings
Official were forwarded to the City Council in advance of their June 15, 2009, continuation of the public
hearing. The City Council approved the minutes of both hearings and adopted a resolution forming the
LID at a meeting held on June 22, 2009.
Additionally, on June 22, 2009, the City Council approved a plan to reduce the assessable costs on three
local improvement districts that were formed in 2009, Crest Neighborhood Street Improvements, Chad
Drive Extension Improvements and Elmira Road/Maple Street Improvements, using funds remaining
after lower than expected bid prices for the Crest Neighborhood project. The Crest Neighborhood
property assessable costs were reduced by approximately $273,895 and the proposed assessment notices
mailed to the property owners reflect this amount. At that same meeting, the City Council directed staff
to modify the interim financing rate to be based on market rates. This modification was made by
Administrative Order No. 44-09-09-F. The City Council also moved to include 15-year financing in the
assessment ordinance.
At the request of the Crest Drive Citizens Association (CDCA), the City accepted private donations in
an effort to reduce the assessable costs for all properties within the LID. As of January 18, 2011, $5,575
in donations had been received by the City and the proposed assessment notices mailed to the property
owners reflected this amount. Donations continued to be accepted until the end of business on February
15, 2011, and an additional $1,100 was received for a total of $6,675. Since the assessment notices did
not reflect the additional $1,100 in donations, to be consistent, the calculations reported to the Hearings
Official for the final assessment hearing also did not reflect the additional donations. Final assessment
bills will be lower than in the Notice of Proposed Assessments and the amount reported to the Hearings
Official for the hearing to account for donations received after January 18, 2011.
Correspondence and Communication
Since the mailing of the Notice of Proposed Assessments, City staff received 13 phone calls or e-mails
from property owners regarding the process to final assessment, cost calculations, financing of the costs
and details about construction.
A hearing was held on February 15, 2011, with five property owners testifying (see Hearings Official
Minutes.)
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Project
The street improvements consist of 18-foot-wide paving (two nine-foot-wide travel lanes) with curbs,
concrete walk, street lights at pedestrian crossings, traffic calming (speed tables, chicanes, chokers,
medians, and traffic circles), street trees, and stormwater drainage system with stormwater quality
facilities.
Assessments
Costs were distributed per Eugene Code 7.175, and outlined in the council-adopted Hearings Official
findings and recommendations, and the resolution forming the LID.
Below are the final assessable unit costs:
Paving nine-foot (per front foot) $ 121.88
Sidewalk and drive aprons (per square foot) $ 2.58
Total Assessable Cost $ 1,355,684.74
Total City Cost: w/o Low Income Subsidy: $ 2,521,270.38
Low Income Subsidy - 24 $ 172,019.74
Delayed Assessments - 24 $ 303,733.48
Total Project Cost $ 4,352,708.34
Property owners of vacant or fully developed lots zoned single-family residential under a half-acre pay
for actual frontages up to a maximum assessable frontage of 100 feet and not less than a frontage of 50
feet. For a partially developed residential lot over a half acre, with front footage greater than 100 feet,
the property owner is assessed for 100 front feet of frontage at the time of final assessment. If the lot
further develops, then a “delayed assessment” will be due for the portion of the frontage over 100 feet.
Vacant residential lots over half-an-acre pay no assessment at the time of final assessment, but an
equivalent assessment for the full frontage is due at the time of development.
Also, as provided in City Code, although much of the project has sidewalk built on just one side of the
street, properties on both sides of the street will be assessed for the sidewalk. Assessment information
about the sidewalks was made available for each property at the LID formation hearing held on May 28,
2009.
The final assessable costs are lower than estimated when the LID was formed.
The funding sources for the City’s share and the non-assessable share of project costs for this project are
the Capital Road Fund, Stormwater System Development Charges (SDC) Fund and Stormwater Utility
Fund.
Assessment financing, a 15-year payment plan through the City, is available to all property owners
within the improvement district as identified by Eugene Code, Chapter 7. In addition, there are
extension or deferral programs for qualifying property owners based on age and/or income.
Based on the low bid received, the costs listed below were the estimated assessment costs plus
contingency calculated at the time of the formation of the LID.
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Paving nine-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: $1,765,469.23
Total Estimated Project Cost $3,791,376.34
Low Income Subsidy
Of the 128 properties in the LID, 24 owners qualify for a subsidy under the low-to-moderate income
subsidy program. This City-funded subsidy program is available to property owners who occupy a
single-family dwelling or duplex and meet other program criteria. Fact sheets which describe the
subsidy program were mailed to all property owners in the LID. The household size and income levels
for the subsidy program are based on the current Lane County Median Family Income limits published
by the U.S. Department of Housing and Urban Development. The total cost to the City for the low-
income subsidies is $172,019.74 and is funded from the Street Subsidy fund.
RELATED CITY POLICIES
The assessment costs were distributed as outlined in the council-adopted resolution forming the LID.
COUNCIL OPTIONS
Special assessment provisions adopted as part of the LID resolution cannot be modified during the final
assessment process if they result in increased costs to the property owners. The final assessment hearing
was to review the calculations to assure conformance with the requirements stated in the LID resolution
and the Eugene Code.
Per Section 7.187, the City Council can take the following actions:
1.Approve the March 23, 2011, Minutes, Findings and Recommendations of the Hearings Official.
2.If after the review of the proposed assessment, the City Council determines that the assessments
should be increased, staff would be directed to publish a new notice and a public hearing must be
conducted. New findings would then be prepared for City Council adoption.
CITY MANAGER’S RECOMMENDATION
The City Manager recommends approval of the Minutes, Findings and Recommendations of the
Hearings Official and adoption of the ordinance levying assessments.
SUGGESTED MOTION
1.Move to approve the March 23, 2011, Minutes, Findings and Recommendations of the Hearings
Official.
2.Move to adopt Council Bill 5045 levying assessments for paving and 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
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from Lorane Highway to 28 Avenue; and providing an immediate effective date.
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ATTACHMENTS
A. Ordinance – includes Hearings Official’s Minutes, Findings and Recommendations.
FOR MORE INFORMATION
Staff Contact: Mark Schoening
Telephone: 541-682-5243
Staff E-Mail: mark.a.schoening@ci.eugene.or.us
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