Item 2: Resolution on SDC Administrative Fee Changes

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Public Hearing: Resolution 4977 Adopting an Amendment to the Systems Development Charges Administrative Fee and Amending Resolution No. 4900 Meeting Date: May 18, 2009 Agenda Item Number: 2 Department: Public Works Staff Contact: Fred McVey www.eugene-or.gov Contact Telephone Number: 682-5216 ISSUE STATEMENT The purpose of this public hearing is to provide an opportunity for public comment regarding the proposed adoption by resolution of an increase in the Systems Development Charges (SDC) administrative fee. The proposed resolution would increase the administrative fee percentage rate from 5% to 9%, and increase the flat rate from $60.00 to $80.00. The administrative fee is set within the SDC methodologies and is based on estimates of the periodic and on-going direct and indirect costs associated with complying with the requirements of state law and the cost of administering the SDCs. The proposed adjustments, in combination with administrative cost reductions, are necessary to ensure cost recovery for required SDC administrative functions. BACKGROUND Council Action History The council last adopted the SDC administrative fee rate set within the City of Eugene Systems Development Charges Methodologies via Resolution 4929, effective April 3, 2008. Mayor Piercy and the council were notified on January 15, 2009, of notice provided to interested persons of intended amendments to Eugene SDC methodologies related to the administrative fee. This notice was required at least 90 days in advance of a public hearing on a resolution amending the SDC methodologies. Mayor Piercy and the council were again notified when a draft of the proposed modifications was made available for public review on February 12, 2009, with this information made available for viewing at City Hall and the Public Works Engineering lobby, as well as on the City’s website. Financial Considerations In Oregon, a statewide statutory framework provides for minimum requirements and standards for developing and modifying SDCs, the calculation of SDC rates and individual charges, provision of required types of credits, required administrative processes, allowances for financing of SDCs, limitations on use of revenues, and requirements for annual accounting for SDC revenues and project expenditures. Statutes allow SDC revenues to be expended on the costs of complying with these provisions. The City of Eugene has implemented an administrative fee to account for SDC administrative revenues and expenditures separate from SDC capital project expenditures. Z:\CMO\2009 Council Agendas\M090518\S0905182.doc