Item 4: Resolution on Systems Development Charges

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Action: Resolution No. 4977 Adopting an Amendment to the Systems Development Charges Administrative Fee and Amending Resolution No. 4900 Meeting Date: May 26, 2009 Agenda Item Number: 4 Department: Public Works Staff Contact: Fred McVey www.eugene-or.us Contact Telephone Number: 682-5216 ISSUE STATEMENT The proposed resolution implements an increase in the Systems Development Charges (SDC) administrative fee percentage rate from 5% to 9%, and increases the flat rate from $60.00 to $80.00. The administrative fee is set within the SDC methodologies and is based on estimates of the periodic and on-going direct and indirect costs associated with complying with the requirements of state law and the cost of administering the SDCs. The proposed adjustments, in combination with administrative cost reductions, are necessary to ensure cost recovery for required SDC administrative functions. BACKGROUND Council Action History The council last adopted the SDC administrative fee rate set within the City of Eugene Systems Development Charges Methodologies via Resolution 4929, effective April 3, 2008. Mayor Piercy and the City Council were notified on January 15, 2009, of notice provided to interested persons of intended amendments to Eugene SDC methodologies related to the administrative fee. This notice was required at least 90 days in advance of a public hearing on a resolution amending the SDC methodologies. Mayor Piercy and the council were again notified on February 12, 2009, prior to the proposed modifications being posted for public review on February 18, 2009, at City Hall and the Public Works Engineering lobby, as well as on the City’s web site. A public hearing was held on May 18, 2009, to receive public comment on the proposed SDC modifications; no persons spoke at the hearing. Two written comments were submitted via email to Mayor Piercy and the council prior to the hearing, one in favor and one opposed, to the proposed resolution. Financial Considerations In Oregon, a statewide statutory framework provides for minimum requirements and standards for developing and modifying SDCs, the calculation of SDC rates and individual charges, provision of required types of credits, required administrative processes, allowances for financing of SDCs, limitations on use of revenues, and requirements for annual accounting for SDC revenues and project expenditures. Statutes allow SDC revenues to be expended on the costs of complying with these Z:\CMO\2009 Council Agendas\M090526\S0905264.doc