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

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consistent with the service area basis for planning neighborhood parks. The neighborhood parks growth allocation methods are described in more detail in Attachment B. In addition to these key issues and options, the comprehensive review of the parks SDC resulted in a number of proposed modifications developed by the SDC Project Team and supported by a majority of the RAC. A summary of key elements of the proposed methodology is included in Attachment C. Table 1 below reflects preliminary estimated charges for example development types based on the proposed methodology and reflecting the options presented to the council. These SDC estimates are based on underlying project cost estimates contained in the adopted PROS Project and Priority Plan which were developed over two years ago. It is therefore recommended that the final proposed SDC rates be developed applying adjustments based on proposed construction and land cost indexes to provide a current level of cost recovery. The current parks SDC is $1,334.65 per dwelling unit. Table 1 SDCs for Sample Developments – System-Wide vs. Service-Area Allocation for Neighborhood Parks System-wide Allocation Method for Service-Area Allocation Method for Neighborhood ParksNeighborhood Parks No Hotel/Motel All No Hotel/Motel All Type of Development NonresidentialOnlyNonresidentialNonresidentialOnlyNonresidential (units same as Table 6) Units Single - Family Dwelling 1DU$3,535$3,458$2,957$3,481$3,406$2,909 Apartment Building 104units$232,589$227,521$194,522$229,029$224,047$191,395 Single/Multi Tenant Office Building 67.5TGSFnana$97,524nana$95,957 Lower Turnover Restaurant 5.2TGSFnana$2,737nana$2,693 Supermarket 47.4TGSFnana$24,951nana$24,550 Hotel / motel 70roomsna$176,981$151,312na$174,279$148,880 Mayor Piercy, the council and interested persons were notified of proposed modifications to Eugene Systems Development Charge (SDC) methodologies on October 13, 2006, providing a 90-day notice of intent to modify the SDC as required by Oregon Revised Statutes. It is intended that a draft of the proposed methodology, based on direction from the council, will be made available for public review on or before November 17, 2006. A public hearing on the proposed modifications is tentatively scheduled for January 16, 2007. RELATED CITY POLICIES Growth Management Policy 14 is directly related to implementation and modification of SDCs. The council’s adoption of the PROS Project and Priority Plan provides policy-level direction on intended parks system projects and levels of service which are key factors in the proposed modifications of the parks SDC. COUNCIL OPTIONS Direct the City Manager to move forward with proposed modifications to the parks SDC to: ? a)include a charge for all nonresidential development; or, b)include a charge for hotel/motel development as a residential category; or, c)charge residential development only, consistent with the current methodology; and, d)use a system-wide allocation method for costs of neighborhood parks; or, e)use a service area-based allocation method for neighborhood parks. L:\CMO\2006 Council Agendas\M061025\S061025B.doc