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HomeMy WebLinkAboutItem 06 Forming a Local Improvement District for Installation of Sanitary Sewer{00016441:1} AGENDA ITEM SUMMARY Meeting Date: 10/5/2020 Meeting Type: Regular Meeting Staff Contact/Dept.: Kyle Greene/DPW Kristina Kraaz/CAO Staff Phone No: 541-736-7135 Estimated Time: 10 Minutes S P R I N G F I E L D C I T Y C O U N C I L Council Goals: Maintain and Improve Infrastructure and Facilities ITEM TITLE: FORMING A LOCAL IMPROVEMENT DISTRICT FOR THE INSTALLATION OF SANITARY SEWER ACTION REQUESTED: Conduct a public hearing and first reading of the following Ordinance: AN ORDINANCE ADOPTING THE REPORT OF THE CITY ENGINEER AND FORMING A LOCAL IMPROVEMENT DISTRICT FOR THE INSTALLATION OF SANITARY SEWER IN CREST LANE FROM 724 CREST LANE TO 749 SUMMIT BLVD (PROJECT P21171) ISSUE STATEMENT: The City Council is asked to initiate a local improvement district (LID) to extend the public sewer in Crest Lane from 724 Crest Lane to 749 Summit Blvd. The purpose of the extension to provide the residences at 789 Summit Blvd and 749 Summit Blvd with a new public sewer connection to replace the existing connection point that is further away and is served by a failed private sewer lateral. ATTACHMENTS: Attachment 1 - Ordinance Attachment 2 - Exhibit A – Engineer’s Report DISCUSSION/ FINANCIAL IMPACT: For the past several months, City staff have been working with the residents of 789 Summit Blvd and 749 Summit Blvd to address a public nuisance being caused by the failed private sewer lateral serving those properties. This local improvement district will allow a new private sewer line serving 789 and 749 Summit Blvd to connect to the new public sewer connection in Crest Lane, rather than running underneath Crest Lane and through other private property to existing connection in Summit Blvd. On July 6, the City Council adopted Resolution 2020-25, declaring intent to establish a local improvement district for sewer improvements in Crest Lane from 724 Crest Lane to 749 Summit Blvd, specially benefitting properties at 789 and 749 Summit Blvd. As directed in Resolution 2020-25, the City Engineer prepared the report attached as Exhibit A to the proposed ordinance declaring the LID. The estimated total cost of the project is $26,500, or $13,250 for each of the two properties specially benefited by this LID. If the Council adopts the proposed Ordinance forming the LID, the City will advertise for bids for the project, to be awarded by the City Council to the lowest responsible bidder at a future Council meeting. Following construction of the project, the City Council will be asked to formally assess each property for one-half of the cost of the improvements. CITY OF SPRINGFIELD, OREGON ORDINANCE NO. ___________ (SPECIAL) AN ORDINANCE ADOPTING THE REPORT OF THE CITY ENGINEER AND FORMING A LOCAL IMPROVEMENT DISTRICT FOR THE INSTALLATION OF SANITARY SEWER IN CREST LANE FROM 724 CREST LANE TO 749 SUMMIT BLVD (PROJECT P21171) WHEREAS, on July 6, 2020, the Common Council adopted Resolution 2020-25 declaring their intent to initiate public sewer improvements in Crest Lane from 724 Crest Lane to 749 Summit Blvd and to assess all property to be benefitted by said improvements; WHEREAS, at the direction of the Council, the City Engineer filed the report attached in Exhibit A with the City Finance Director on August 4, 2020; WHEREAS, on August 21, 2020, the Finance Director gave notice as provided in Springfield Municipal Code section 3.006, stating the Engineer’s Report is on file and notifying all persons interested to present their objections to the report, if any they have, before the Council on September 8, 2020; and WHEREAS, the City Council held a public hearing on September 8, 2020 and ____ property owners benefitted have filed objections, NOW, THEREFORE, THE COMMON COUNCIL OF THE CITY OF SPRINGFIELD ORDAINS AS FOLLOWS: Section 1. The City Engineer report attached in Exhibit A (P21171) is hereby adopted. Section 2. The Finance Director is directed to advertise that bids will be received for the construction of the above improvement project in accordance with the City's general conditions and standard specifications and that the project shall be awarded to the lowest responsible bidder. The Council reserves the right to deem any bids unsatisfactory. ADOPTED by the Common Council of the City of Springfield this ___ day of _________, ____, by a vote of _____ for and ____ against. APPROVED by the Council President of the City of Springfield, functioning as Mayor in accordance with Section 17 of Springfield Charter, this ______ day of __________, ____. _______________________ Council President ATTEST: __________________________ City Recorder Attachment 1, Page 1 of 1 {00016737:2} M E M O R A N D U M City of Springfield To: Nate Bell, Finance Director From: Jeff Paschall, P.E., City Engineer Date: August 4, 2020 Subject: Engineer's Report: Local Improvement District Project No. P21171: Adjacent to 749 Summit Blvd & 724 Crest Lane Project Name: Crest Lane Local Sewer Extension LID 1.00 In accordance with Section 3.004 of the Springfield Municipal Code, the following is submitted for your action(s) 1.10 Project Scope: Install a local sewer extension on Crest Lane to provide a closer viable public sanitary sewer for 749 and 789 Summit Boulevard 1.20 Project Location and Affected Properties: The project is located on Crest Lane, from Summit Boulevard East approximately 130 feet to connect to the existing public sanitary sewer manhole. The properties to be included in the district are as follows: Map & Taxlot Number: 17-03-34-14-07700 Property Address: 789 Summit Blvd Record Owner, MailingAddress: Andan & Margaret Lauber 295 Morrene Drive Campbell, CA 95008 Map & Taxlot Number: 17-03-34-14-07800 Property Address: 749 Summit Blvd Record Owner, Mailing Address: Alderman Family Trust 749 Summit Blvd Springfield, OR 97477 1.30 Right-of-Way: No additional construction easements or rights-of-way are expected to be needed in the construction of this project. 1.40 Project Schedule: Preliminary schedule for the project is as follows: Table 1 – Initial Project Schedule (Approximate Only) Milestone Target Date Complete Preliminary Design Complete Complete Final Design August 31, 2020 Advertise for Bids September 28,2020 Open Bids October 9, 2020 Attachment 2, Page 1 of 3 Engineer’s Report for Project No. P21171 Page 2 {00016737:2} Notice to Proceed October 26, 2020 Start Construction November 2, 2020 Complete Construction November 6, 2020 The Project Manager is encouraged to evaluate and revise this schedule often throughout project development. Notify the City Engineer and Project Team of changes to any element of this schedule. 1.50 Project Standards: The project shall be designed in accordance with the following standards:  Engineering Design Standards and Procedures, City of Springfield (2019 or latest edition)  Oregon Standard Specifications For Construction 2.00 Engineer’s Estimated Costs: The total project cost has been estimated between $15,000 and $25,000. Final actual costs will be determined upon completion of the project and assessed as provided in Springfield Municipal Code sections 3.050-3.074. The general breakdown of costs is shown below. A detailed breakdown of estimated construction costs is included (Exhibit C). Table 2 –Project Budget (Based on estimated $30,000 Project Cost) 2.10 2.20 2.30 2.40 Total Estimated Cost City Cost Property Owners Cost Assessment Cost (per Lot) Design and Administration $ 5,000 $ 0 $ 5,000 $2,500 Right of Way N/A N/A N/A N/A Construction $ 10,000- $20,000 $ 0 $ 10,000- $20,000 $ 5,000-$10,000 Assessment Service Fee (SMC 3.072, 6.2% of direct costs) $1,000- $1,500 $0 $1,000- $1,500 $500-$750 Total $ 16,000- $26,500 $ 0 $ 16,000- $26,500 $ 8,000-$13,250 2.50 Assessment Rate: Private Property The private property assessment rate will attributed 50% to the property at 789 Summit Attachment 2, Page 2 of 3 Engineer’s Report for Project No. P21171 Page 3 {00016737:2} Blvd and 749 Summit Blvd. The district will involve only two properties and no City participation in the costs. The final assessment rates and amounts will be set by the City Council following a public hearing as per Springfield Municipal Code sections 3.050- 3.074. 2.60 Assessment Financing: Private Property Property owners may choose to finance their assessment through the City’s Bancroft Program. The interest rate established by the City Council for the subject Local Improvement District is the City’s most recent bond issue rate plus 1.5%. The City offers a 10-year financing program with semi-annual payments. Property owners who are seniors may qualify for the Elder Housing Deferral Program, which is run by the state and works much like the state’s Property Tax Deferral Program. 3.00 Resolution of Intent to Improve No. 2020-25; Date of adoption: July 6, 2020. 4.00 Please proceed with the preparation and execution of the following documents in accordance with Sec. 3.006 of the Springfield Municipal Code: 4.10 Public Hearing: 4.11 Date of Hearing: September 8, 2020 4.12 Publish Notice of Hearing on, in the Eugene Register Guard no later than 10 days prior to the September 8 public hearing. 4.13 Furnish Engineering Office with two (2) copies of the Public Hearing notice. Attachment 2, Page 3 of 3