Item C: Funding Crest Drive/Friendly Street/Storey Boulevard Improvements

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Public Works Engineering City of Eugene M EMORANDUM 858 Pearl Street Eugene, Oregon 97401 (541) 682-5291 (541) 682-5032 FAX Date: July 17, 2008 To: Mayor Piercy and City Council From: Mark Schoening, 682-5243 City Engineer, Public Works Engineering Subject: COUNCIL ASSIGNMENT: EUGENE CODE AMENDMENTS TO ALLOW USE OF SDCS ON UNCLASSIFIED STREETS, IF IMPROVEMENT INCREASES CAPACITY This memo is in response to the Council Assignment – “Provide information on how Eugene Code could be amended to allow use of SDCs on unclassified streets, if improvement increases capacity.” The Eugene Code provides local policy for the development and expenditure of SDCs within the state- wide framework of SDC provisions of the Oregon Revised Statues (ORS). Eugene Code sections most relevant to the question point specifically to compliance with the requirements of State Law. ORS 223.307 Authorized expenditure of system development charges states in part: “Reimbursement fees may be spent only on capital improvements associated with the systems for which the fees are assessed …”; “Improvement fees may be spent only on capacity increasing capital improvements…”; and, “Any capital improvement being funded wholly or in part with system development charge revenues must be included in the plan and list adopted by a local government pursuant to ORS 223.309.” In order for SDCs to be used on a capital project on an unclassified street, the project would need to meet these requirements. Changes to the Eugene Code would not modify the statutory requirements. In addition to ORS requirements, the City Council has by resolution directed that transportation SDC reimbursement fee revenue be dedicated to “SDC-eligible capital improvement costs associated with preservation and maintenance of Eugene’s arterial and collector streets”. Capital Improvements to the System for which Fees are Assesses Eugene’s transportation SDCs are currently based on the arterial and collector street and off-street bicycle path portions of the transportation system. In order to allow reimbursement fee expenditures on unclassified streets the SDC methodology would need to be modified to include such streets in the basis for the fee. This would require analysis of the capacity elements and characteristics of unclassified streets. Any modification of the transportation SDC methodology would trigger a major modification from the current level of service methodology approach to one based on an adopted project plan and list. In addition, to allow reimbursement fee expenditures on unclassified streets the Council would need to repeal or modify the resolution directing use of such fees on Eugene’s arterial and collector streets. Page 1 of 2