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HomeMy WebLinkAboutItem 2C - Formation of LID (SC)EUGENE CITY COUNCIL AGENDA ITEM SUMMARY Action: Approval of Findings and Recommendations from the Hearings Official and Adoption of Resolution 4806 Forming a Local Improvement District for Constructing Sidewalks, Curbs, Gutters, Conduit, and Stormwater Drainage System on Santa Clara Avenue from River Road to Approximately 600 Feet West (Job #4108) Meeting Date: August 9, 2004 Agenda Item Number: 2C Department: Public Works Staff Contact: Paul Klope www. cl. eugene, or. us Contact Telephone Number: 682-5246 AGENDA ITEM SUMMARY The council is being requested to approve the Hearings Official's Findings and Recommendations dated July 26, 2004, and to adopt a resolution forming a Local Improvement District (LID) for constructing sidewalks, curbs, gutters, conduit, and stormwater drainage system on Santa Clara Avenue from River Road to approximately 600 feet west. BACKGROUND Council Action History There has been no past council action taken in regard to this project. Policy Issues There are no new policy issues related to this action. Council Goals Improvement to Santa Clara Avenue from River Road to approximately 600 feet west addresses the council goal for Safe Community by improving street safety for the current and future pedestrian, bicycle and vehicular needs along Santa Clara Avenue. Financial and/or Resource Considerations The project total cost is estimated at $145,176.76, and is funded from several sources in the following approximate amounts: Assessments $129,166.10 (89%) City of Eugene $ 16,010.66 (11%) Assessments are anticipated to be levied following the completion of construction. Following the levy of assessments, ten-year financing through the city of Eugene will be available for owners of properties being assessed for this local improvement. L:\CMO\2004 Council Agendas\M040809\S0408092C.doc Other Background Information The project was initiated by irrevocable petitions received by the City in 1989. After Lane County finished its improvements to Santa Clara Avenue in 2003, and in light of construction of the new fire station and the ongoing development in the area, the Eugene City Engineer initiated preparation of plans and specifications on February 20, 2004, pursuant to Section 7.160(8) of the Eugene Code, 1971. Bids were opened on July 1, 2004, with Brown Contracting, Inc. emerging as the low bidder. The property owners were notified of the pending LID hearing ten days prior to the hearing as required by Eugene Code. The LID formation hearing was scheduled for July 19, 2004, 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. No one requested to be heard, and the hearing was cancelled. The project consists of construction of curbs, gutters and sidewalks, associated storm drainage work, conduit for the new fire station and repair of a small area of failed pavement. Timing All necessary steps have been completed as prescribed by the Eugene Code for the initiation and formation of an LID. Delay in the formation of the LID will delay completion of the improvement project. OPTIONS Per Section 7.166(3) of the Eugene Code, the City Council can take the following actions: 1. Adopt the resolution forming the LID 2. Substantially modify the improvements, rebidding if necessary, and then conduct a hearing on the modified improvements. 3. Delay the approval not more than 15 days. 4. Abandon the improvements. STAFF RECOMMENDATION Staff recommends approval of the Findings and Recommendations of the Hearings Official and adoption of the resolution forming the Local Improvement District as described. The bids received are comparable to projects of similar size and scope and formation of the LID will be consistent with council-adopted policy. SUGGESTED MOTION Move to approve the Hearings Official's Findings and Recommendations of July 26, 2004. Move to adopt a resolution forming a Local Improvement District for constructing sidewalks, curbs, gutters, conduit, stormwater drainage system on Santa Clara Avenue from River Road to approximately 600 feet west. L:\CMO\2004 Council Agendas\M040809\S0408092C.doc ATTACHMENTS A. Resolution B. Hearings Official Findings and Recommendations C. Vicinity Map FOR MORE INFORMATION Staff Contact: Paul Klope Telephone: 682-5246 Staff E-Mail: paul.w.klope.~ci, eugene.or.us L:\CMO\2004 Council Agendas\M040809\S0408092C.doc ATTACHMENT A RESOLUTION NO. A RESOLUTION FORMING A LOCAL IMPROVEMENT DISTRICT FOR CONSTRUCTING SIDEWALKS, CURBS, GUTTERS, CONDUIT, AND STORMWATER DRAINAGE SYSTEM ON SANTA CLARA AVENUE FROM RIVER ROAD TO APPROXIMATELY 600 FEET WEST. (JOB #4108) 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 o£ the Eugene Code, 1971 (EC), and after receiving the hearings officer's report, 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 Santa Clara Avenue from River Road to approximately 600 feet west. Section 2. The Council hereby orders the establishment of a local improvement district on Santa Clara Avenue from River Road to approximately 600 feet west and in that district to construct or install sidewalks, curbs and gutters, conduit, stormwater drainage 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, as are necessary to make the Improvements. Upon completion of the Improvements, the final costs therefor will be calculated and the owners of benefitted property shall be notified and the property assessed as provided in E.C. 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 1 lb, Art. XI of the Oregon Resolution- 1 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 rights-of-way or 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. Section 5. The City of Eugene, Oregon expects to make expenditures from its available funds to pay for the costs of improvements to Santa Clara Avenue from River Road to approximately 600 feet west (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 $130,659.08 plus 10%. Section 6. Improvement warrants, short-term promissory notes and other evidence of indebtedness authorized by Chapter 902, 1991 Oregon Session Laws, issued to finance the construction of the Improvements shall be indebtedness for them. When improvement warrants are issued they may be general obligation warrants or limited general obligation warrants or other similar instrument. Such indebtedness shall bear interest at a rate set by Council resolution authorizing the debt. The interest shall be paid upon redemption. Section 7. Proceeds from unbonded assessments, improvement bonds, foreclosure of liens Resolution - 2 based on the Improvements and from other budgeted funds including ad valorem taxes, if levied, to pay the debt shall be deposited in the Short Term Debt 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 Mayor, City Manager, and Finance Officer may sign the evidence of indebtedness herein authorized by facsimile signature with a check signing machine. The Finance Officer shall cause the seal of the City to be printed on the evidence of indebtedness when required by law or by the purchaser. Section 9. This Resolution shall become effective immediately upon its adoption. The foregoing Resolution adopted the 9th day of August, 2004. City Recorder Resolution - 3 ATTACHMENT B FINDINGS AND RECOMMENDATIONS SUBJECT: PROPOSED SIDEWALKS, CURBS, GUTTERS, CONDUIT, STORM DRAINAGE SYSTEM ON SANTA CLARA AVENUE FROM RIVER ROAD TO APPROXIMATELY 600 FEET WEST (JOB #4108) BACKGROUND Santa Clara Avenue hms west from River Road between Beltline and Irving Road. Santa Clara Avenue is currently paved, but not completely developed to City standards. The area around Santa Clara Avenue continues to develop. St. Vincent de Paul is planning a 60 unit low income residential development on Santa Clara Avenue, just west of the area to be improved. The City of Eugene's Fire Station # 11 is under construction along the portion of Santa Clara Avenue included in this project. In 2003, Lane County finished street improvements to the portion of Santa Clara Avenue just west of the area of the proposed Local Improvement District. The City of Eugene received irrevocable petitions for this project in 1989. After the County finished their improvements to Santa Clara Avenue, and in light of the ongoing developments in the area, the Eugene City Engineer initiated preparation of plans and bid specifications on February 20, 2004. Bids were opened July 1, and the apparently low bid was used to calculate the projected costs of the improvement. PROJECT The proposed improvements will bring the portion of Santa Clara Avenue included within the LID up to city standards. The improvements are designed to meet the current and future pedestrian, bicycle and vehicular travel needs along Santa Clara Avenue. The proposed street improvements include constructing curbs, gutters and sidewalks on the north and south sides of Santa Clara from River Road to 600 feet west. Based on the low bid received (plus 10 percent contingency), the estimated assessment rate will be: Sidewalk $ 8.31 per square foot Curbs and Gutters $ 58.61 per lot front foot As provided in the Eugene Code, the assessable portion of the cost the sidewalks are assessed based on the area of the sidewalks abutting the property receiving the benefit. Curbs and gutters are assessed based on the length of the cub and the gutter abutting the property to be assessed. PROPOSED CURBS AND GUTTERS, SIDEWALKS, AND RELATED IMPROVEMENTS ON SANTA CLARA AVENUE FORMATION OF LOCAL IMPROVEMENT DISTRICT Page 1 The funds for the City's share of the project comes from Transportation SDCs, the Transportation Utility Fund (for repair of the existing pavement), and from the Stormwater SDC fund. The costs for this improvement are proposed to be divided as follows: Total Assessable Cost $129,166.10 Total CityCost $ 16,010.66 Direct Charges $ 42,706.00 Total Project Cost $145,176.76 PUBLIC INVOLVEMENT More than 80 percent (81.13%) of the properties benefited by this proposed project have submitted irrevocable petitions for the improvements. The current street lacks sidewalks for most of its distance, and lacks other non-vehicular amenities. The City of Eugene Public Works Department sent notice of the proposed local improvement district, and the proposed assessments, to property owners more than ten days in advance of the hearing date. A hearing on the proposed LID was scheduled for July 19, 2004, but no persons indicated an interest in appearing for the hearing. While Eugene Public Works has responded to several inquiries about the proposed improvements, there has not been any correspondence received conceming the proposed LID. No hearing was held because no persons requested an opportunity to be heard. FINDINGS AND RECOMMENDATION Notice of the public hearing was provided and all the property owners were given an opportunity to participate in the hearings. Appropriate notice was given of the public hearing and pending Council action, as required by the Eugene Charter and Code. Letters informing property owners of the hearing and notification to property owners of the intent of the City to characterize the assessment as an assessment, not a tax, as required by ORS 305.583(5) were mailed to the property owners. The Hearings Officer finds that the project is one for which the assessments are for local improvements as set forth in ORS 310.410 because 1. The assessments do not exceed actual costs; 2. The assessments are imposed for a capital construction project that 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 PROPOSED CURBS AND GUTTERS, SIDEWALKS, AND RELATED IMPROVEMENTS ON SANTA CLARA AVENUE FORMATION OF LOCAL IMPROVEMENT DISTRICT Page 2 4. The assessments allow the property owners to elect to pay the assessment with interest over at least ten (10) years. The Hearings Official also finds that the method of calculation of the area to be assessed and the estimated assessments is consistent with the language of the Eugene Code. The Hearings Official recommends that the Council act in accord with the City Engineer's recommendations, accepting the low bid and forming the local improvement district as set forth in the City Engineer's recommendations. Milo Mecham Hearings Official Dated: July 26, 2004 PROPOSED CURBS AND GUTTERS, SIDEWALKS, AND RELATED IMPROVEMENTS ON SANTA CLARA AVENUE FORMATION OF LOCAL IMPROVEMENT DISTRICT Page 3 MEMORANDUM July 19, 2004 TO: Hearings Official FROM: Mark Schoening, City Engineer SUBJECT: PROPOSED SIDEWALKS, CURBS, GUTTERS, CONDUIT, STORM DRAINAGE SYSTEM ON SANTA CLARA AVENUE FROM RIVER ROAD TO APPROXIMATELY 600 FEET WEST (JOB ~4'108) BACKGROUND The project was petitioned by three Irrevocable Petitions received by the City, in October 1989 and September 1989. These petitions represent 81.13% of the assessable frontage within the boundaries of the proposed Local Improvement District (LID). St. Vincent DePaul has recently completed the land use approvals to construct a 60 unit Iow income residential development just west of the proposed LID. In addition, City of Eugene Fire Station #11 is under construction on a parcel representing 16.82% of the frontage in the LID. Within the boundaries of the proposed LID there is no sidewalk, only curb and gutter on a portion of the North side of the street. Lane County completed street improvements to Santa Clara Avenue in 2003 immediately west of the proposed LID. In anticipation of the increased traffic from development of the new Fire Station and of the St. Vincent DePaul residential development, the City Engineer initiated the preparation of plans and specifications, pursuant to Section 7.160(8) of the Eugene Code, 1971 on February 20, 2004. The LID improvements would bring Santa Clara Avenue up to full City standards and run from the easterly end of the County's project approximately 600 feet west to River Road, and are proposed to meet the current and future pedestrian, bicycle and vehicular needs in this developing area of the community. Bids were opened on July 1,2004, with Brown Contracting, Inc. as the apparent Iow bidder. The property owners were notified of the pending LID hearing ten (10) days prior to the hearing as required by Municipal Code. The LID formation hearing on July 19, 2004, 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. CORRESPONDENCE City staff has not received any phone calls from property owners wanting to attend the hearing and no written correspondence has been received as of 5:00 July 19, 2004. PROJECT Staff is proposing to upgrade this portion of Santa Clara Avenue from River Road to approximately 600 feet west, to City standards. The proposed street improvements include constructing curbs, gutters and sidewalks on the north and south sides of Santa Clara from River Road to 600 feet west. Due to the existing commercial businesses, proposed new developments, and the new fire station along Santa Clara Avenue, pedestrian safety has become a concern. Traffic will continue to increase in this area as the properties develop. ASSESSMENT Costs listed below are the estimated assessment costs calculated from the Iow bid. The calculations are consistent with adopted Council policy. A 10% contingency has been included in the estimated costs. Sidewalk (per square foot) $ 8.31 Curbs and Gutters (per front foot) $ 58.61 Total Assessable Cost $129,166.10 Total City Cost $ 16,010.66 Direct Charges to be assessed $ 42,706.00 Total Project Cost $145,176.76 The non-assessable City share for this project will be funded from Transportation SDC Fund, Transportation Utility Fund, and Stormwater SDC Fund. Assessment financing, a 10-year payment plan through the City, is available to all property owners within the improvement district as identified by City Code, Chapter 7. Recommendations The unit prices submitted with the Iow bid are competitive and, based on staff review, appropriate for this scale of project. Staff recommends approval of formation of the LID. ATTACHMENT C VICINITY MAP N.T.S. CITY OI= [::UGENE ~ SANTA CLARA AVE. ~c wo~ ~.~,~..~ IMPROVEMENTS ~,o~c~-: #410¢ DATE: ¢/03/04