Admin Order 58-21-56-F -- Corrected Regional WW and Parks SDCs

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Administrative Order - Page 1 of 2 ADMINISTRATIVE ORDER NO. 58-21-56-F of the City Manager of the City of Eugene AMENDING CITY OF EUGENE SYSTEM DEVELOPMENT CHARGE METHODOLOGIES, APPENDIX F "LOCAL SDC SYSTEM FORMULAS AND GENERAL FEE SCHEDULE," TO CORRECT ERRORS IN SYSTEMS DEVELOPMENT CHARGE INFLATIONARY ADJUSTMENTS MADE BY ADMINISTRATIVE ORDER 58-21-21-F (REGIONAL WASTEWATER SYSTEM AND PARKS AND RECREATION SYSTEM). The City Manager of the City of Eugene finds as follows: A. Section 2.020 of the Eugene Code, 1971 (EC), authorizes the City Manager of the City of Eugene to determine and set fees and charges to be imposed by the City for services, goods, use of municipal property, and licenses and permits. EC 7.710(5) and Section 2.4 of the Systems Development Charge (SDC) Methodologies authorize the City Manager to adopt by administrative order pursuant to EC 2.020, a change in the amount of a reimbursement fee or an improvement fee if the change in amount is based on: (1) the periodic application of an adopted specific cost index (inflationary adjustment); or (2) a modification to any of the factors related to rate that are incorporated in the established methodologies, so long as the fees are not increased by more than five percent within any 12-month period. B. Section 2.4 and Appendix C-2 of the City of Eugene System Development Charge Methodology provide for periodic inflationary adjustments to the SDC rates by applying the20- city national average construction cost index published by Engineering News-Record (ENR) and / or the Lane County Assessor’s Office Certified Ratio Study (when adjusting the SDC for acquisition costs of real property). C. The Engineering News-Record 20-City National Average Construction Cost Index is 2.96% (March 2020 through April 2021) and the Lane County Assessor’s Office Certified Ratio Study shows that real property acquisition costs have increased by 7.52%. On these bases, the 2021 inflationary rate for Parks and Recreation SDCs is +2.46% and the 2021 inflationary rate for the Regional Wastewater SDCs ranges from +1.953% to +1.62%, depending upon assigned strength categories. D. Administrative Order No. 58-21-21-F issued on June 25, 2021 was intended to make the 2021 inflationary adjustments to the SDC rates for the Transportation, Local Wastewater, Regional Wastewater, Stormwater and Parks and Recreation Systems, but the inflationary adjustments for the Regional Wastewater and the Parks and Recreation Systems made by Administrative Order No. 58-21-21-F were improperly calculated. E. To correct the inflationary adjustments for the Regional Wastewater and the Parks and Recreation Systems, on December 16, 2021, I issued Administrative Order No. 58-21-56 ordering that Notice be given of the opportunity to comment on a proposal to correct the errors.