Agenda Packet 2-26-20 Work Session

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February 26, 2020, Work Session – Item 1 can be done regardless of which direction council takes on the overall fee and rate structure discussion. A motion to implement is included. Potential Disincentivizing of Multi-Family Housing: Staff reviewed the methodology to evaluate ways to reduce impacts on multi-family housing. In the original proposal, multi-family units that are smaller than two-bedrooms see a reduction or very little fee increase due to their lower occupancy rates. In order to reduce fees on the larger two and three-bedroom units, the following additional actions could be considered that are consistent with previous council direction: Eliminate the category for three plus bedroom multi-family units. This category would have seen the largest percentage increase of 123 percent. Provide fee adjustments to the two plus bedroom category that vary with location:  30 percent fee reduction within ¼ mile of a Frequent Transit Network route  20 percent fee reduction within ½ mile of a Frequent Transit Network route  10 percent fee reduction in all other areas of the city This fee reduction is consistent with policy direction from Envision Eugene to encourage housing in proximity to key transit corridors. It is also consistent with the Climate Recovery Ordinance to reduce fossil fuel usage. Note that this reduction requires a progressive rate structure and can therefore not be applied to fee implementation Option 4: Status Quo. Attachment A shows the proposed fee adjustment for multi-family housing and Attachment B shows the corresponding map of Frequent Transit Networks. Fee Implementation Options: Several options for implementing a fee increase are described below. Attachment A shows the fee and rate structure associated with each option. OPTION 1: Original Proposal- Adopt proposed fee and rate structure with a two-year phase-in plan. The advantages of this option include:  Allowing bond projects to be supported with SDC funds  Proposed lower rates for smaller single-family and multi-family homes will go into effect in year one  Predictability of future fees and revenue  Supports funding for other priority one projects during bond completion The disadvantages of this option include:  Not responsive to public testimony regarding a delay of fee increase