Item B: Update on Street and Lighting Fee Development

Home Browse Search

costs. A mid-range approach would be to vary estimated parking spaces within broad residential categories such as single-family houses and multi-family dwelling units. Staff recommends further developing the fee structure assuming an average number of parking spaces associated with residential customer sites and varying the assumed number based on broad residential categories, e.g. single-family and multi-family housing. Adjustments, Credits and Reductions In addition to specifying minimum distinctions between categories of residential and non-residential uses, the rates may include a variety of factors to adjust or reduce the fee for categories of customers. The basis for providing adjustments and credits is to recognize customers’ achievements to reduce usage of the transportation system. Rate methodology options range from providing no adjustments or reductions to establishing administrative programs providing complex and individualized adjustments. Credits may provide additional equity to the fee and provide a potential incentive for customers to reduce demand on the system. However, complex credit and adjustment provisions may provide marginal benefit to customers while significantly increasing administrative costs. Conceptually, two forms of adjustments may be considered: direct reductions resulting from a lower number of measurement (parking) units at a customer’s site; and, other administrative adjustments for demonstrated reduction in use of the transportation system. Depending on the unit of measure for parking spaces, an inherent reduction may be allowed based on reducing number of parking units at a site. For example, if size of available parking area were the unit of measure, reduction in areas developed or used for parking could result in a fee reduction while potentially providing an incentive for reducing the amount of land consumed for parking purposes. Other administrative reductions allow for recognition of reduced usage or demand on the transportation system. For example, in implementing the rate methodology, reductions in fees could be allowed for customers locating in nodal development areas or for businesses implementing transportation demand management strategies. Staff recommends preparing a draft ordinance allowing administrative flexibility for incorporating adjustments, credits and reductions to fees associated with customer’s reduction in transportation system usage. Revenue Requirements, Uses of Fee Revenues The subcommittee recommended a net annual revenue target of approximately $6 million with $150,000 of the revenue generated to be earmarked for neighborhood traffic calming projects. This revenue target was estimated to result in an average household fee of $4.50 to $5 per month. Upon considering the subcommittee recommendations, council determined not to pursue one of the package components, the solid waste collection surcharge, and shifted half of the revenue target for that component to the street utility fee, resulting in a net revenue target of $6.5 million for the street utility fee. B,SUF P47 ATTACHMENT TREET TILITY EE AGE OF