Item 2B - Res.on SDC Adjustment - Laserfiche WebLink

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The proposed rate adjustment to three SDC systems is based on an adopted cost index, the 20-city national average construction cost index as published by the Engineering News-Record (ENR). The ENR for the period of February 2004 through December 2004 reflects an increase in average construction costs of 6.5%. The proposed 6.5% increase across the three systems translates to an increase in City of Eugene SDCs for a typical new single family residence of $152, from a current total of $4,740 to a proposed total of $4,892. Council Goals/Action Priorities This agenda item relates to City Council goals pertaining to Sustainable Community Development which successfully manages growth and change in the urban environment and Fair, Stable an Adequate Financial Resources which provide a fair and equitable system of revenue sources adequate to maintain and deliver municipal infrastructure services. Timing The transportation, local wastewater and stormwater SDC rates were last updated in April 2004, reflecting costs and rate factors current as of February 2004. The proposed adjustment to rates based on construction cost inflation for the period of February 2004 through December 2004 provides for timely update of rates. While the Eugene Code and Oregon SDC statutes do not require notice of adoption by resolution of inflationary adjustments based on a cost index, a notice has been provided as a courtesy to interested persons. The notice was published in the Register-Guard on February 15, 2005, and, along with the draft resolution and exhibit, posted at Eugene City Hall and the Public Works building lobby. This information has also been made available at the City's web site at www. ci.eugene.or.us/PW/SDC. The adjusted rates are proposed to go into effect on April 18, 2005. An adjustment to the parks SDC rate is not proposed at this time, pending results of a comprehensive review, the completion of which relies upon adoption of the Parks, Recreation and Open Space Comprehensive Plan. The parks SDC rates were last updated in October 2003, with the intent of that update to serve as an interim adjustment until the comprehensive review and update of the SDC is complete. It is anticipated that an updated parks SDC will be adopted approximately 90 days after adoption of the Parks, Recreation and Open Space Comprehensive Plan. RELATED CITY POLICIES Chapter 223 of the Oregon Revised Statutes prescribes the rights and responsibilities of local governments in developing and imposing SDCs, providing for adoption of a cost index as an administrative means for adjustments to SDCs. The Eugene Code, Chapter 7, prescribes the process for development, adoption and administration of SDCs, providing for adoption of methodologies related to SDCs. The council has adopted by resolution the SDC Methodologies which provide for periodic adjustment of Eugene's SDCs based on an adopted cost index. The council has adopted by resolution Growth Management Policy #14 which provides that development shall be required to pay the full cost of extending infrastructure and services. COUNCIL OPTIONS 1. Adopt the resolution providing an inflationary adjustment of SDC rates. 2. Take no action on the resolution. 3. Direct the City Manager to prepare other adjustments to SDC rates. L:\CMO\2005 Council Agendas\M050307\S0503072B.doc