CC Minutes - 04/08/02 Meeting - Laserfiche WebLink

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Fred McVey, Engineering Data Services Manager, said that Mr. Welch's testimony, as well as the letter from the homebuilders association, tended to mix the two key elements of the SDC methodology; the rate-making element and the statutes that regulated how SDC revenues were expended. He said the requirement that cities have a project list and that SDCs were expended only on projects from that list was clear under ORS 223.309(1). He said what was not clear was that rates must be set only on that project list. He said the City of Eugene, since 1991, had a SDC methodology that did not use an adopted project list as a basis for calculating rates. He said the proposed methodology continued the practice in use for the previous ten years. Councilor Bettman reiterated that there had been a level of service rate process since 1991 and noted that Eugene's SDC rate was in the lowest one-third of comparable cities in the state. Councilor Fart said the letter from the homebuilders association raised enough questions for him that he did not want to take action on the item that evening. In response to a question from Councilor Pap~ regarding the legality of the evening's proposed action in light of the State statutes, Mr. Klein said the ordinance had been prepared with an understanding of the legislative changes in the last state session. He said the City Attorney's position was that the materials and the proposed ordinance before the council were lawful. In response to a question from Councilor Farr regarding the legal recourse available for those who would disagree with the ordinance if it was passed, Mr. Klein said the matter could be taken to the Circuit Court and a ruling that the ordinance violated State statutes requested. Councilor Farr raised concern over possible legal action if the ordinance were passed. He reiterated that he did not want to take action on the item until some of the questions from the letter submitted by the homebuilders association were addressed. Councilor Fart, seconded by Councilor Rayor, moved to table the discussion. Roll call vote; the motion failed, 5:3; councilors Fart, Rayor, and Pap~ voting in favor. Councilor Rayor noted that Eugene had lower systems development charges than other comparable cities. He called for a legal opinion of the homebuilders association letter, item-by- item. Councilor Kelly noted that representatives of both the homebuilders association and the Chamber of Commerce had been present through the entire committee process. Councilor Bettman noted there was access to City legal counsel through the entire committee process as well as input from the homebuilders association. She expressed her surprise at the letter submitted by the homebuilders association and opined that it was an attempt to forestall a slight increase in systems development charges. Councilor Meisner reiterated that the Public Works Rates Advisory Committee work had been carefully reviewed through the entire process. In response to a question from Councilor Fart regarding when the latest changes to the State statute were implemented, Mr. McVey said they were implemented on January 1, 2002. He MINUTES--Eugene City Council April 8, 2002 Page 7 Regular Session