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HomeMy WebLinkAbout2019-28 Waterline LID 79 - Terminated by Council Council Business Meeting October 15, 2019 Resolution 2019-28 to Terminate the Waterline Road Local Improvement Agenda Item District and Repeal Resolution 1999-19 Paula C. Brown, PE Public Works Director From Scott A. Fleury, PE Deputy Public Works Director paula.brown@ashland.or.us(541) 552-2411 ͳ Contact scott.fleury@ashland.or.us; (541) 552-2412 SUMMARY Before Councilis a resolution to terminate the previously established Waterline Road Local Improvement District (LID), #79. Resolution 1999-19 established Waterline Road reimbursement district and determined proportional costs for the City and benefitted property owners. The LID called for the construction of a paved street section along 500 feet of the currently unimproved section of Waterline Road including curb, gutter, storm drain, water line, fire hydrants and retaining wall sections. POLICIES, PLANS & GOALS SUPPORTED City Council Goals adopted by Resolution 2019-02 and supported by this project: Essential Services: street repair and maintenance; fire (protection) Value Services: emergency preparedness Department Goals: Deliver timely life cycle capital improvement projects Maintain and improve infrastructure that enhances the economic vitality of the community Evaluate all city infrastructure regarding planning management and financial resources PREVIOUS COUNCIL ACTION The Waterline Road Local Improvement District (LID) was established through Resolution 1999-19 at the April 6, 1999 regular business meeting. This resolution authorized establishing a local improvement district for the improvement of 500 feet of Waterline Road. These street improvements included pavement, curb/gutter and storm drain, water line, fire hydrants and retaining wall sections. Sidewalks were not recommended due to site conditions which would likely necessitate significant rock excavation and additional retaining walls. BACKGROUND AND ADDITIONAL INFORMATION at no final assessments will be made on benefitted properties until a residential building permit is issued or a final approval is granted on a land use application creating one or more new lots for Tax Lot 300, 391E 16AC, also known as the Alston propertyAttachment 1 for site map. Since 1999, the property in question has not developed, and the cost to construct improvements for the 500-foot road section have dramatically increased from the original estimate of $600,000. The 2012 adopted Transportation System Plan (TSP) identifies project R46, a connection from Ivy Lane west to Waterline Road. This project was defined as development driven and removed from the fiscally constrained TSP. Planning and Engineering staff conferred with Legal Department to discuss the likelihood of requiring full road improvements through the potential development of Tax Lot 300, 391E 16AC. It is a difficult site due to the terrain and would likely not have a significant number of homesites approved. Access Page 1 of 2 would likely be from Ivy Lane. With this realization, staff is supportive of terminating the local improvement district. All property owners within the assessment district as required have been encumbered with a lien on their property in the amount of $3,608.68 per assessable unit. Currently, when a property owner wishes to sell a property within the assessment boundary, the lien shows on the title report and the seller is typically obligated to pay the lien in full in order to finalize a sale. The City Recorder manages all LIDs and associated liens. Currently there are 22 of the 47 property owners who have paid a total of $79,390.96 in assessed funds that were collected as lien payoffs upon the sale of properties in the district and are being held by the Recorder. Staff has worked directly with the City Recorder and Attorney in order to develop the proper terminating resolution. Upon Council approval, staff will notify the 22 former property owners of the termination and refund all funds currently retained. FISCAL IMPACTS Staff estimates the construction cost associated with this 500-foot roadway improvement project would exceed $600,000 in current dollars. Section 13.20 of the Ashland Municipal Code governs local improvements and special assessments. Council eliminated the maximum assessment per unit during the December 1, 2008 study session. This change was enacted by resolution 2009-04. If the termination of this local improvement district is approved, the City Recorder will remove current liens on all properties within the assessment boundary and refund in full all liens currently paid The original assessment and cost for the LID was estimated to be $179,908 in 1999, with an assessment of $3,608.68 for each of the 47 units within the assessment area. STAFF RECOMMENDATION Staff recommends option 1; approving the attached resolution to terminate the Waterline Road LID and repealing Resolution 1999-99, the initial resolution that formed the LID. Option 2 (below), although feasible, does not provide the City adequate funds to complete the project should development occur. Retaining the LID is a burden to the current property owners within the boundary area that must pay the assessment in full to transfer property title or sell. Likewise, option 3 is viable only if Council has recommendations for staff to consider. ACTIONS, OPTIONS & POTENTIAL MOTIONS Upon the closing of the public hearing, council could consider the following motions 1. Improvement District and Repealing Resolution 1999-19. 2.Take no action and retain the Waterline Road LID. 3.Take no action at this time and return the resolution to staff for additional information and clarifications. REFERENCES & ATTACHMENTS AMC 13.20 Local Improvements and Special Assessments (link) Attachment 1: Site Map Tax Lot 300 (391E 16AC) Attachment 2: LID Termination Resolution 2019-28 Attachment 3: Waterline Road LID Authorizing Resolution 1999-19 Attachment 4: April 6, 1999, City Council Regular Business Meeting; Council Item and Minutes Page 2 of 2 Waterline Road LID site map; boundary and improvement area 1 RESOLUTION NO. 2019-28 2 A RESOLUTION A RESOLUTION TERMINATING THE WATERLINE ROAD LOCAL 3 IMPROVEMENT DISTRICT #79 AND REPEALING RESOLUTION 1999-19 4 RECITALS: 5 A. The City of Ashland Council approved a local improvement district for the 6 construction of a portion of Waterline Road; and 7 B. The City Council has determined it is appropriate to repeal this authorizing resolution. 8 9 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ASHLAND, OREGON, 10 RESOLVES AS FOLLOWS: 11 SECTION 1. Resolution 1999-19 forming the Waterline Road Local Improvement District #79 12 was passed by the Council at the April 6, 1999, Business Meeting. 13 14 SECTION 2. The LID was contingent upon either a residential building permit being issued or 15 final approval being granted on a land use application to create one or more new lots for Tax Lot 16 300, 391E 16AC, also known as the Alston property. To date the parcel has not developed. The 17 construction estimate for the project associated with the LID resolution is no longer 18 representative of current costs. 19 20 SECTION 3. The City has determined it is in the best interest of the public to disband this LID 21 reimbursement district and refund all monies collected to date. 22 23 SECTION 4. Resolution No. 1999-19 is repealed. 24 25 SECTION 5. This resolution is effective upon adoption. 26 27 ADOPTED by the City Council this day of , 2019. 28 ATTEST: 29 30 _____________________________ Melissa Huhtala, City Recorder 12 RESOLUTION NO. 2019-28 Page of 1 SIGNED and APPROVED this ______ day of _______________, 2019. 2 3 _____________________________ 4 John Stromberg, Mayor 5 6 Reviewed as to form: 7 8 ___________________________ 9 David H. Lohman, City Attorney 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 22 RESOLUTION NO. 2019-28 Page of