Memorandum

City of Lawrence

Legal Services Department

 

TO: 

David Corliss, City Manager

Toni Ramirez Wheeler, Director of Legal Services

 

FROM:

John Jay Miller, Staff Attorney

Charles Soules, Director of Public Works

 

CC:

Cynthia Boecker. Assistant City Manager

Dianne Stoddard, assistant City Manager

 

Date:

June 10, 2008

 

RE:

Queens Road Improvement District Analysis

 

Staff wanted to provide an update on the analysis of the Queens Road improvement district projects.  The overall scope of improvements for Queens Road consists of:

 

Intersection Improvements

§         Signalization of the intersection at 6th and Queens Road

§         Right-turn lane from 6th Street onto Queens Road

 

Improvements South of 6th Street

§         Approximately 450’ of street 31’ wide, sidewalks on both sides, storm sewer, and waterline improvements

§         Entrance treatment (island)

§         At the intersection, widening to four lanes to provide for turning movements

 

Improvements North of  6th Street

§         At the intersection, the traffic volume would require a five-lane section to accommodate through and turning traffic.  Just north of the intersection, the street section will taper down to a two-lane collector street.

§         Roundabouts will provide traffic control at Overland Drive and Wakarusa Drive

§         Multi-use path (10’) and sidewalks (6’)

§         Stormwater improvements and water main

§         Approximate length of one mile to north city limits

§         Proposed improvement would extend from 6th Street to N1700 Road

§         Dedicated right turn lanes for west bound 6th Street onto north bound Queens Road.

§         The intersection at Queens Road and Wakarusa including the roundabout at that intersection is not part of the Queens Road improvement district estimate or analysis.  One of the conditions of the Links development on the west side of Queens Road was the construction and completion of the roundabout at this intersection. 

 

The focus of this memorandum is to provide a review of the issues on the Queens Road improvements north of 6th Street to the north city limits (N1700 Road).  The surface of Queens Road is currently a combination of chip seal, but mostly gravel.

 

Method of Assessment:

The first issue is the method of assessment.  Because of the scope of the project, Staff has prepared an analysis of different assessment methods for the City Commission’s consideration.  Staff is providing an example based on three methods of assessment.  The first, and our typical method for straight streets, is splitting the front footage on the east and west side of the road then front footage per tract and then area per tract. 

 

The second, is splitting the front footage on the east and west side of the road and then by the square footage. The third, is by total square footage per tract of land of the whole improvement district

 

For comparison purposes staff has chosen a single family residence in the Westwood Hills subdivision and a one acre rural residential tract of land zoned urban reserve.  The assessment amounts are examples based on preliminary analysis, are subject to change depending upon the land area and final configuration of the improvement district, and do not include the interest that would be added to the total assessment.  The assessment amount example is the total that would be divided by the number of years of the improvement district.  Generally, the City collects assessments in ten equal annual installments.   

 

                                                Westwood Hills         One acre urban reserve

 

 

Front footage                         $1,966.32                              $95,908.99

east and west

and then front

footage per tract

and then area per

tract.

 

Front footage                         $3,983.67                              $24,862.31

east and west

and then square

footage per tract

 

Square footage                     $2,979.36                              $18,599.35

per tract

 

Staff recommends using our typical method of assessment for straight streets, by splitting the front footage on the east and west side of the road then front footage per tract and then area per tract. 

 

Property to Include in the District:

The second issue is what property to include in the improvement district.  On the east side of Queens Road, the city limits extend to N 1700 Road.  On the west side the city limits extend to the northern boundary of the newly annexed Links project property.  Property on the west side of Queens Road to the north of the Links property is not within the city limits. 

 

To make improvements to all of Queens Road from 6th Street to N 1700 road, the City needs to address how to include in the improvement district the property currently in the county.  One option is to annex the property and then include the property in the improvement district. 

 

A second option would be to pursue an improvement district to include property outside the city limits pursuant to K.S.A 12-693, because the improvements include a boundary line road.  Under this statute, the City could initiate the district or the property owners in the county could petition for the improvement district.  In either scenario the City would need to obtain approval for the project and creation of the district from the board of county commissioners before the City adopted a resolution calling a public hearing on the creation of the improvement district,    

 

If the approval is obtained, the City Commission may adopt a resolution calling the public hearing and follow the other statutory procedures to create the district. 

 

A third option is to include the property outside of the city limits pursuant to K.S.A. 12-12-6a19.  Under this statute, the City would create an improvement district that only includes property inside the City limits.  The resolution creating the district would also include a provision stating the City's intent to collect a benefit fee pursuant to 12-6a19 from the property outside the City limits, at the time that property is annexed into the City. 

 

The City could choose to pay those properties' share of the costs as a city-at-large contribution, and then later reimburse the City from the benefit fee payment.  This approach is similar to the agriculture deferral concept that the City has used in prior benefit districts.  Alternatively, the city could chose to assess 100% of the costs of the project against the improvement district, and then rebate a portion of the special assessments to each property owner when the benefit fee payment is made.  This approach adds an additional layer of administrative complexity to the benefit fee issue, and is why most cities choose to pay the "benefit fee" portion of the project costs as a city-at-large contribution.   Using this statutory approach since no property outside the city limits is included; the City is not required to seek county approval prior to adopting a resolution calling a public hearing on the creation of the improvement district.

 

Does the City want to pursue annexation of the property prior to creating the improvement district or pursue one of the two statutory alternatives for improving all of Queens Road from 6th Street to N 1700.  Another option would be not to make improvements, at this time, to Queens Road north of the Links property.  

 

The attached map shows the proposed east and west boundaries for the district.

 

Apportionment of Costs:

The third Issue is whether the City-at-large will pay a portion of the costs for the street improvements north along Queens Road.  As an alternative to participating in the street improvements the City at large could could pay for the signalization at the in the intersection of 6th Street and Queens Road.  This approach would eliminate the need for the creation of a third improvement district for the traffic signal. 

 

The City Commission may want to consider deferring the assessments on some of the property included in the district until the property develops. 

 

The current estimated cost for the Queens Road improvements is $5,462,500.00 plus the cost to issue bonds and any temporary financing. 

 

Action Requested:

Receive staff report and direct staff as appropriate on the advisability of the construction of Queens Road from the intersection of 6th Street north to the north city limits (N1700 Road).   

 

Attachments:

 

Draft Area Map

Draft Resolution Directing and Ordering a Public Hearing

Draft Excel Spreadsheet