DUNDEE, Ore. — The Dundee City Council moved forward with nearly $60,400 in property assessments for Alder Street improvements Oct. 20, advancing the process despite objections from property owners who questioned the costs and their responsibility for paying them.
The council approved the first reading of Ordinance 599-2026, with a second reading scheduled for Nov. 3. The motion passed, with Councilor Mikey Caruso Jr. abstaining. Councilors also pushed back the first installment due date to April 15, 2027, giving affected property owners about three additional months before installment payments begin.
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C&M Excavation and Utilities, the project contractor, submitted a final invoice of $524,141.50, more than double the 2021 project estimate of just over $250,000, according to the city’s engineer’s report. The final assessments, which total $60,357.86 across the three property owners on the street, are below the original estimate of $75,690. The city said additional project costs and change orders would not be charged to property owners.
The local improvement district was established in 2021 to help fund improvements intended to bring Alder Street up to collector road standards.
Two of the three property owners formally objected to their assessments, raising concerns about the costs, past representations about who would pay for certain work, and the financial burden the bills would create.
Mike Sherwood and Linda Lausmann face an assessment of $18,789.64 for their property at 876 SW Alder St. Dennis and Bonnie Sword face a $15,283.67 charge for their property at 809 SW Alder St. Christopher and Catherine Woods face a $26,284.55 payment for their property at 580 SW 9th St.
Property owners can pay the assessments in 20 semiannual installments, with 5.5% annual interest and a $30 processing fee. Owners can also pay the balance in full early.
Sherwood questioned charges associated with driveway aprons, saying the city had historically paid to replace aprons and stairs when public works projects affected them. He said he understood those features to be the city’s responsibility and that about $6,000 in apron charges should be removed from the assessments.
City Administrator Courtney Patterson said city records did not confirm an agreement to cover those costs.
A local improvement district, or LID, is a way for a city to pay for a public improvement by charging the owners of the properties that benefit from it, rather than covering the full cost from general city funds. According to the city attorney’s response in the meeting packet, each assessment has to reflect a benefit to the property itself, such as added access, convenience or use, beyond the general benefit the public gets from a better street.
The charge attaches to the property rather than the owner, so it stays with the land if the property is sold. In Dundee, the council forms the district, owners can file objections before final assessments are set by ordinance, and unpaid assessments are secured by a lien on the property. The city has previously used LIDs for Locust Street and Highway 99W sidewalk improvements, according to a city staff report.
Woods, who said he relied on information about the assessment from the previous property owner, questioned whether he should bear the cost.
“I need to understand that what you’re saying is, because I don’t speak legal jargon, that it is my fault for not asking the realtor and the previous owner the right questions,” Woods said. “And therefore, for my lack of knowing how to do that, it is my responsibility to take on something that I can’t afford.”
Woods said that challenging the city’s decision could leave him facing legal bills without a favorable outcome.
Patterson told Woods that any dispute over what the previous owner or real estate agent had told him would be separate from the city’s process for assigning the charges.
Mayor David Ford said the city needed to move forward while recognizing the financial strain on property owners.
“We also have a city to run,” Ford said. “We have budgets to meet, so we can’t continue to delay either. We’re trying to meet you partway here.”
Vineyard Block draws renewed enforcement criticism
Residents again pressed the city to address code enforcement concerns involving the Vineyard Block lodging properties on Southwest 9th Street, owned by O’Brien & Company LLC.
Steve Jara, who lives at 380 SW 9th St., criticized what he described as the city’s failure to enforce requirements for the properties over nearly a year. He alleged that the operation was not meeting life safety and fire access requirements.
“Collecting taxes doesn’t ease code violations, and patience has run out,” Jara said.
Sue Larsen, who operates a short-term rental, also criticized the city’s response.
“By allowing an unpermitted operator to ignore citations while playing by the rules, the city sends a very dangerous message,” she said. “And that is that breaking rules in the city of Dundee is rewarded.”
Larsen questioned whether the properties had continued renting after receiving a violation notice. She said her review of a spreadsheet indicated the properties had been rented for about 150 days after a June 16 notice. Using a potential fine of $250 per day, she estimated that the city could have assessed $37,500 in fines.
Keeley O’Brien, CEO of O’Brien & Company LLC, who attended the meeting in person, disputed the characterization of the properties as short-term rentals operating outside the city’s requirements. He said the properties consisted of one- and two-unit hotel accommodations in a commercial business district and that the project had gone through city review.
O’Brien said the properties received conditional approval in November 2025, that plans and stormwater issues had been reviewed by then-City Engineer Greg Reid in March 2020, and that the owners had not changed the use of the buildings or increased the number of people staying there.
He said the owners had spent more than $500,000 on the properties, including about $70,000 for engineering, as well as money for parking, truck turnaround space, and security lighting. The owners worked with two engineers and a city planner and have completed nearly all required work, he said, with one outstanding item related to the engineering permit.
O’Brien questioned whether similar standards were being applied to other lodging properties in the city.
“If lodging standards are such a big concern here, I suggest that we hold every short-term rental to the same standards that I’m being held to,” he said.
Patterson reviewed the city’s enforcement timeline and said the outstanding transient lodging taxes had been paid. A city engineer’s Oct. 5 review of the required engineering permit identified one item that needed to be revised and resubmitted.
Ford said the city needed to enforce its code but that staff capacity was a challenge. Patterson already has a range of administrative responsibilities, Ford said, and the city may need someone who can follow up on complaints and recommend further steps. He said the goal should be to bring property owners into compliance, with fines used when owners are unwilling to address violations.
The council took no action.
Utility discount program changes advance
The council also approved the first reading of Ordinance 598-2026, which would revise income eligibility for Dundee’s utility discount program as water, sewer, and stormwater costs rise.
The program provides eligible households with a 50% discount on monthly base charges for those services, according to a city staff report. Eight households currently participate. The discount does not cover consumption charges over 550 cubic feet.
Under the proposed changes, eligibility would be based on the number of people in a household rather than applying the same income limit to larger households.
Proposed annual income limits range from $26,334 for a one-person household to $73,194 for a six-person household. The proposed limit for a four-person household is $54,450.
The council is scheduled to consider the ordinance again Nov. 3.
Wine harvest raises wastewater concerns
Patterson said wastewater from local winemaking and industrial facilities continued to test above the city’s accepted threshold during the fall harvest.
Public Works Superintendent Chuck Simpson and Wastewater Treatment Plant Operator Jared Nunley sampled wastewater from facilities and recorded biochemical oxygen demand, or BOD, levels ranging from 6,000 to about 20,000 milligrams per liter. The city’s threshold is 300 milligrams per liter.
Even a facility using a bioreactor tested at elevated levels, Patterson said.
High BOD levels can place additional strain on the city’s membrane bioreactor treatment system. Patterson said replacing the system’s membranes could cost about $900,000.
City staff are considering whether some winery wastewater could be diverted to holding ponds during the busiest part of harvest in September and October, allowing solids to settle before the wastewater is returned to the treatment system.
Patterson said staff would begin work on potential solutions in January or February ahead of the 2027 harvest, coordinating with local businesses and potentially the city of Carlton.
Other business
The council approved $14,670 for an emergency blower repair after a power surge damaged three variable-frequency drives. Two other drives had already been replaced during the emergency response. The city plans to submit an insurance claim.
The council also discussed the future of maintenance for street trees along Highway 99W. The Chehalem Parks and Recreation District informed the city that it would stop providing street tree maintenance Jan. 1. A previous estimate for service twice a year was about $40,000, leaving the city to consider how the trees will be maintained going forward.
A joint City Council and Planning Commission work session that had been scheduled for Oct. 21 was postponed because a quorum was not available.
