Item B: Proposed Modifications to the Parks Systems Development Charge Methodology and Rates

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Table 6 Summary of SDC Impacts of Allocation Methods System-Wide Service Area Method Method Improvement Fee Growth Cost -- Neighborhood Parks $10,715,016 $6,498,676 Growth Cost -- Access Improvements $889,463 $911,429 Gross SDC per SFD (1) $2,519 $2,308 Gross SDC per SFD (2) $3,013 $2,760 Reimbursement Fee Growth Cost -- Neighborhood Parks $154,021 $3,449,836 Growth Cost -- Access Improvements na na Gross SDC per SFD (1) $437 $603 Gross SDC per SFD (2) $522 $721 Combined Growth Cost -- Neighborhood Parks $10,869,037 $9,948,512 Growth Cost -- Access Improvements $889,463 $911,429 Gross SDC per SFD (1) $2,956 $2,910 Gross SDC per SFD (2) $3,535 $3,481 (1) Based on 83.6% Residential Share (All nonresidential SDC component) (2) Based on 100% Residential Share (No nonresidential SDC component) Summary SDC methodologies in general, and system capacity allocations in particular by their nature rely on assumptions to establish SDC rates to ensure that growth pays an equitable cost of the system capacity it consumes. A number of methodological assumptions and approaches are technically and legally feasible. Along with equity considerations, consistency, complexity and administrative cost are factors to consider when selecting methodological approach and assumptions. Staff has prepared two approaches and related sets of assumptions for allocating the capacity- related costs of neighborhood parks. The system-wide allocation method relies on system-wide service level assumptions which result in a generalized distribution of capacity demand and has consistency and relative simplicity advantages. The service area-based allocation method relies on more complex assumptions about the location, size and nature of future park service areas and the specific development characteristics within service areas to derive a more specific area- based allocation of capacity demand and has the advantage of addressing potential equity concerns unique to the neighborhood park category. Staff had recommended, and a majority of the RAC supported, the use of a system-wide capacity analysis for purposes of cost allocation for a number of reasons including consistency with the City’s other SDC methodologies. HBA has expressed equity concerns and questioned the legality of a resulting 100% growth allocation of neighborhood park land acquisition, prompting development of an alternate growth allocation method for neighborhood park projects. The two methods are presented for the City Council’s consideration and direction in development of proposed modifications to the parks SDC. B,NPGA P66 ATTACHMENT EIGHBORHOOD ARK ROWTH LLOCATION AGE OF