Background:
The Strawberry Local Improvement District provided for the improvement of Strawberry Lane, Alnutt Street, Nutley Street, Scenic Drive and Westwood Street. This project has proven to be the City's most widespread and expensive LID to date with a total improvement cost of $1,028,161.63. This project offered a number of unique and difficult challenges in the design and construction of the various streets. The difficult and constrained topography required some very creative designs and construction methods which ensured that this improvement would have a high price. Some of the most difficult challenges that were overcome were imposed by extremely steep grades, some in excess of 22 percent, narrow rights-of-way of 28 feet, extreme cross slopes, highly errodable soils, the need to match older established driveways, the need for extensive slope and bank retaining systems and a general lack of maneuvering room.
The improvements consisted of installation of storm drains including a major storm drain line down Nutley Street to Ashland Creek (including a pollution control structure) curbs and gutters, sidewalks on one side of each street, paving, utility construction and extensive retaining wall systems. The contractor selected for this project was ROBCO Inc. out of Grants Pass, while the design was provided by Hammond Engineering Inc. of Medford. The project was commenced on May 12, 2002 and was accepted on August 16, 2004 at a total cost of $945,318.72, which included some replacement and improvement of existing sanitary sewer and irrigation pipelines. The utility work is outside the scope of the LID and was deleted form the assessable project cost.
Following is a summary of the costs for this project:
| A. |
Final Construction Cost |
$945,318.72 |
| B. |
Less Non-Assessable Utility Work |
$ -56,197.00 |
| C. |
Assessable Construction Cost |
$889,121.72 |
| D. |
Engineering Costs |
$139,039.91 |
| E. |
Total Assessable Project Cost |
$1,028,161.63 |
The total cost is $48,535.37 less then the estimated total cost of $1,076,697.00 shown on the attached Resolution No. 2001-30. This project has a relatively small assessment base, but high construction costs which has resulted in costs well above the maximum assessment cap established under Resolution No. 99-09. Original estimates for this project indicated a City participation of $734,000 or over 69% of the project. The high rate of participation is due to the fact that there are four properties owned by the City (including the Parks Department) and included within the assessment district and that per unit costs are over the established assessment cap of $4,140.00 per unit. When the normal percentages of participation for sidewalk, storm drain, and street construct and engineering as required under Resolution 99-09 are included the final City participation totals $702,142.65 or 68.3% of the project cost as outlined below:
TOTAL CITY OBLIGATION
| A. |
City Assessment |
$52,205.00 |
| B. |
Parks Assessment |
$41,764.00 |
| C. |
City Participation per Resolution 99-09 (summary below) |
$399,470.00 |
| D. |
Reimbursement for Materials & Services provided by Developers
(see summary and explanation) |
$19,677.02 |
| E. |
Amount of LID Cap Exceeded |
$189,026.63 |
| - |
TOTAL CITY OBLIGATION |
$702,142.65 |
Under Resolution No. 99-09 (attached) the City is required to contribute a percentage of the improvement costs to reduce the assessments to the district. The percentage of City participation is as indicated below:
60% of the total costs for sidewalk improvements;
75% of the total costs for storm drain improvements;
20% of the total costs for street surface improvements; and
50% of the total costs for engineering and administrative services.
City participation for this project is:
| A. |
Sidewalk costs: |
60% of $73,195.50 $43,917.30 |
| B. |
Storm drain costs: |
75% of $223,359.00 $167,519.25 |
| C. |
Street surface costs: |
20% of $592,567.52 $118,513.50 |
| D. |
Engineering costs: |
50% of $139,039.91 $69,519.95 |
| - |
Total |
$399,470.00 |
The apportionment of assessments within this district is somewhat more complicated than previous LIDs in that there are three distinct and different assessment rates applicable to this project.
|
A. |
The owners of exiting lots within the district received assessment rates at the maximum allowable rate of $4,140.00 as established under Resolution 99-09. |
|
B. |
The developers of the Strawberry Meadows Subdivision, consisting of 21 lots or units received an additional amount of assessment to accommodate the requirement to provide a paved way from the outer boundary of the subdivision to Granite Street. The cost of this paving requirement was estimated at $49,686.00 and was added to the base assessment of $4,140.00. This additional cost when divided among the 21 lots within the subdivision added an additional $2,366.00 to the base assessment for a final assessment rate of $6,506.00. While this rate is higher than the assessment cap, it is a condition of the development of the Strawberry Meadows Subdivision as approved by Planning Action No. 2000-082 and is further allowed under Resolution 99-09 Section 3 Paragraph B, which states that "There shall be no maximum amount, however, on lots owned by the City or on lots where the LID improvements are required to be made by an owner or developer as a condition of approval of the subdivision or partition." |
As indicated on Exhibit A to the attached resolution, the developers provided two elements which were incorporated into the final project and which were reimbursed as a credit on the assessment list.
Following is a summary of the credits:
| 1. |
Fire Hydrant Credit
In 1992, Mr. Hwoschinsky was required to install a fire hydrant and six inch waterline to the northerly portion of his property. The City has opted to acquire this fire hydrant and waterline to provide service to parks land and to fill the dip tank on Park's property. An easement has been acquired for the waterline. The cost of the waterline and hydrant is $10,977.02. |
|
|
| 2. |
Engineering Service Credit
Preliminary design for the LID project was conducted by Hammond Engineering and was paid by Paul Hwoschinsky, Doug Neuman and Meg Brown. This work was required for the presentation of the project to City Council and it was agreed that this preliminary engineering work should be incorporated into the total LID costs and would be reimbursed as a credit against the LID assessment. The amount of this credit is $8,700.00. The combined total of the two credits is $19,677.02. |
|
|
| C. |
The third and highest rate applies to City owned lots which are assessed at $10,441.00 per unit. This is the computed assessment minus any credits or discounts which might apply to other lots. |
The total final derived assessment of this LID is as follows:
| A. |
Total Project Cost |
$1,028,161.63 |
| B. |
Less City Participation per Resolution 99-09 |
$ -399,470.00 |
| C. |
Less Credit for privately provided materials and services |
$ -19,677.02 |
| D. |
Less costs over and above the maximum LID cap |
$ -189,026.63 |
| - |
Total Assessable Amount |
$419,987.98 |
|
