Admin Order 58-11-01-F - Laserfiche WebLink

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posting those documents at two locations at City Hall on March 11, 2011. These documents were also made available at the City's internet site on March 11, 2011. In addition, on March I I, 2011, Exhibit B (the Notice) was published in the Register -Guard and persons who requested notice of amendments were mailed informational postcards as notification of the proposed amendments. F. Notice provided that written comments would be received for a. period of 15 days from the date of posting and publication. Eight comments were received in response to the proposed amendments. A summary of the comments and my response to the comments are as follows: Comment 1 : Boyd Iverson believes that the rate increase is not justifiable or warranted since there has been no increase in the consumer price index. Also, the construction industry and home ownership have been hit harder than- any other industry or group of people and it is audacious for the City to propose a 3.5% increase to the cost of home ownership. The City should take the time to think about the effect the increase will have on an industry that is already severely crippled and a group of people (home owners and potential homeowners) that do not need additional, unneeded and unjustified expenses being added to their burden. Response In accordance with the adopted Eugene SDC methodologies, SDC fees and credits may be periodically adjusted to account for changes in construction costs and system valuation. The City's adopted cost index used to adjust SDCs is not the Consumer Price Index (CPI), but rather the 20 -city national Construction Cost Index (CCI) as published by the Engineering News - Record (ENR). The CCI has increased. The result of the proposed +3.5% adjustment to the transportation, local wastewater, and stormwater SDC rates will bean overall increase of approximately +1.18% (or $105.87) in the total SDCs collected for an average single - family home. In response to this comment, the effective date of this administrative order has been postponed to June 1, 2011. In the near future, City staff will be proposing that the City Council adopt a resolution that reduces the park SDC rates. The proposed effective date for that Council resolution will be June 1, 2011. If Council adopts the proposed park SDC rates reduction; that rate adjustment together with this administrative order's 3.5% rate increase will result in an overall reduction in the amount of SDCs currently collected for the average single - family home. Specifically, if .Council approves City staff s recommendation to reduce the parks SDC with the June 1, 2011 effective - date, the total SDCs collected for an average single- family home will be approximately -0.98% or - $88.15 less than is currently collected in SDCs. Comment 2 : Jordan Iverson states that he is a local, small builder, born and r4ised in Eugene. The recent economy has obviously been a huge struggle and he is saddened and hurt that, during this time, there would be another increase in fees. Even $15 and $ 5 line items in his projected construction costs are having to be taken out. He notes that ever dollar counts right now and this fee increase will hurt him, his family, his business, all of the subcontractors, and the limited number of home buyers looking for Administrative order - Page 2 of 8