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AGENDA ITEM 7F STAFF ORIGINATOR: John Powell, City Engineer COUNCIL MEETING DATE: September 25, 2000 TOPIC: PUBLIC HEARING - Resolution No. 00-64, Adopt Assessment Roll, Twilight Acres 1st and 2nd Additions VOTE REQUIRED: Simple Majority BACKGROUND: A summary of recent action regarding this matter is as follows: 5/8/00 City Council set assessment hearing for June 26, 2000. 6/26/00 Public Hearing was held. After receiving public comment, the consideration of the resolution was delayed to allow City staff time to gather additional information. 7/10/00 Public Hearing was continued. 7/12/00 Resident Poll sent to neighborhood. 7/24/00 Public Hearing was continued. 8/10/00 Twilight Acres Work Group meeting held. 8/14/00 Public Hearing was continued. 8/28/00 Public Hearing was continued. 8/31/00 Resident Poll #2 sent to neighborhood. 9/19/00 Twilight Acres Work Group meeting #2 held. Resident Poll #2 was sent out to 32 residents in the neighborhood. 19 responses have been received. (Copies of all the responses have been placed in your mailbox at City Hall.) Based on the responses, the residents are generally opposed to the amount of the assessments; not the project. An "acceptable" assessment amount would be limited to the increase in value of their property that is consistent with State Statute. However, based on the appraisal received by the City, these assessments are insufficient to cover the expected costs for the project as currently proposed. City staff has evaluated an alternative design that would provide sanitary sewer service only and would minimize removal and restoration of the roadway. The estimated cost for this alternative would be much lower; but the benefit to each property would also be lower than that provided by installing both sanitary sewer and watermain. However, the difference between the estimated benefit and costs would be smaller than the shortfall with the original project. City staff recommends pursuing the use of Community Development Block Grant (CDBG) funds to cover the shortfall. In order to conclude the process related to the original project, we recommend the City Council not adopt the proposed assessment roll. However, to demonstrate the City's commitment to respond to the resident's needs, staff is requesting the resolution also include directing City staff to: initiate a new project, focus only on sanitary sewer service, and pursue CDBG funding for the expected assessment shortfall. The attached resolution includes these items. OPTIONS: 1. Adopt the assessment roll for the Twilight Acres 1st and 2nd Addition project. 2. Do not adopt the assessment roll for the Twilight Acres 1st and 2nd Addition project. 3. Refer to staff for further review. RECOMMENDATION: Option 2 — Do not adopt the assessment roll for the Twilight Acres 1st and 2nd Addition project.