Agenda Packet 2-26-20 Work Session

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February 26, 2020, Work Session – Item 1 OPTION 1: Original Proposal (includes a two-year phase-in plan for SDC increases) OPTION 2: Same as Option 1, but with a two-year delay on the new rate structure and SDC increases (no increase until 2022, then the two-year phase-in would begin) OPTION 3: Same as Option 1, but with a four-year phase-in plan for SDC increases OPTION 4: Status Quo – Continue to charge SDCs under current rate structure and fees and, in two years, reconsider new rate structure and SDC fee increase D. Provide for an SDC adjustment for large multi-family units that implement Envision Eugene and Climate Recovery goals. (Requires implementation options C.1, C.2 or C.3.) E. Take no action at this time. CITY MANAGER’S RECOMMENDATION Regardless of the fee and rate structure City Council chooses to approve, the City Manager recommends 1) adopting a reduction in the SDC administrative fee from nine percent to five percent and 2) adopting the proposed project list and components of the proposed methodology to ensure funding for 2018 Parks and Recreation bond measure projects. In order to balance council’s previous policy direction and goals that implement Envision Eugene and the Parks and Recreation System Plan, while also prioritizing housing, the City Manager recommends Options 1 or 3, which allows for immediate implementation of proposed lower rates for smaller single-family and multi-family homes while allowing a predictable phase in timeline of two to four years. If council chooses an option other than status quo, the City Manager also recommends adopting an SDC adjustment for large multi-family units that implement Envision Eugene and Climate Recovery goals. SUGGESTED MOTIONS A. Move to direct the City Manager to prepare for adoption a reduction in the SDC administrative fee from nine percent to five percent. B. Move to direct the City Manager to prepare for adoption the proposed project list and components of the proposed methodology to ensure funding for 2018 Parks and Recreation bond measure projects. C. Move to direct the City Manager to prepare Option 1 or 3 for adoption. D. Move to direct the City Manager to prepare for adoption an SDC adjustment for large multi-family units that implement Envision Eugene and Climate Recovery goals.