Item 3G: Resolution adopting SDC Inflationary Adjustments

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Adoption of Resolution 4998 Adopting Inflationary Adjustments to Systems Development Charges for Parks System, and Local Wastewater System, Stormwater System, and Transportation System; Superseding Administrative Order 58-08-02-F; and Amending Resolution No. 4900 Meeting Date: January 11, 2010 Agenda Item Number: 3G Department: Public Works Staff Contact: Nancy Burns www.eugene-or.gov Contact Telephone Number: 682-6887 ISSUE STATEMENT The City Council is asked to approve a resolution adopting an increase in Systems Development Charges (SDCs) for the local wastewater, stormwater, transportation and parks systems. The proposed adjustment follows adopted policy for implementing periodic adjustments to SDCs based on adopted cost indices. An adjustment to local SDC rates was not implemented in 2009, in consideration of the local economic downturn; therefore the current proposal reflects a two-year adjustment period. Section 2.4 of the SDC Methodologies requires that revisions to fees by more than five percent shall be established by resolution of the City Council. BACKGROUND Council Action History Effective May 7, 2007, the council adopted the System Development Charges (SDC) Methodologies by Resolution No. 4900 which updated the parks SDC methodology and rates. Resolution No. 4900 has subsequently been amended by Resolution Nos. 4929 (inflationary adjustment to Parks SDC rates effective April 3, 2008), 4943 (inflationary adjustment to regional wastewater SDC rates effective July 1, 2008), 4977 (amending the local SDC administrative fee effective January 1, 2010), and 4991 (modifications to the regional wastewater SDC methodology and rates effective January 1, 2010). In addition, inflationary adjustments of SDC rates for the local wastewater, stormwater, and transportation systems were adopted by Administrative Order No. 58-08-02-F, effective April 3, 2008, and inflationary adjustments of the regional wastewater SDC rates were adopted by Administrative Order Nos. 58-07-08-F (effective August 20, 2007) and 58-09-08F (effective July 1, 2009). This action is being placed on the Consent Calendar because the resolution adopts a standard periodic adjustment following policies and procedures previously adopted by the council. Financial Considerations SDCs provide a funding mechanism to account for the costs and value of infrastructure system capacity required by new development. The SDC Methodologies adopted by the council provide for periodic Z:\CMO\2010 Council Agendas\M100111\S1001113G.doc