Admin Order 58-22-23-F -- Final SDC Inflationary Adjustments

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Administrative Order -- Page 1 of 2 ADMINISTRATIVE ORDER NO. 58-22-23-F of the City Manager of the City of Eugene INFLATIONARY ADJUSTMENTS TO SYSTEMS DEVELOPMENT CHARGES FOR TRANSPORTATION SYSTEM, LOCAL WASTEWATER SYSTEM, REGIONAL WASTEWATER SYSTEM, STORMWATER 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. Transportation, Local Wastewater, Regional Wastewater, Stormwater and Parks and Recreation System SDCs have been established most recently by Administrative Order No. 58-21-21-F, effective July 1, 2021 and Administrative Order No. 58-21-56-F, effective January 6, 2022. C. Section 2.4 of the City of Eugene System Development Charge Methodology provides for periodic inflationary adjustments to the SDC rates for the Transportation, Local Wastewater, Regional Wastewater, Stormwater, and Parks and Recreation Systems by applying the 20-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). D. An inflationary adjustment of SDCs based on the Engineering News-Record 20-City National Average Construction Cost Index of 4.53% (July 2021 through March 2022) and on the Lane County Assessor’s Office Certified Ratio Study which reports that acquisition costs of real property increased by 4.8% over January 1, 2020 to January 1, 2021, will not result in administratively adopted changes of 5% or greater within a 12-month period. E. Pursuant to Sections 2.020 and 7.710(5) of the Eugene Code, 1971, to Section 2.4 of the SDC Methodology and to the recommendation of the Metropolitan Wastewater Management Commission, and after considering the applicable policies, enactments and directives of the City Council, the amount charged for these services by the City in the past, the full costs of providing the services, the amounts charged by other comparable providers and the revenue needs of the City (see Exhibit B), on June 9, 2022, I issued Administrative Order No. 58-22-23 directing that public Notice be given advising the public of an opportunity to submit comments on the proposal to implement inflationary increases to the SDC rates for the Transportation, Local Wastewater, Regional Wastewater, Stormwater and Parks and Recreation Systems as shown in