Item 3C: Approval of Parks SDC Cost Adjustment

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Adoption of Resolution 5031 Adopting Inflationary Adjustments to Systems Development Charges for Parks System and Amending Resolution No. 4900 Meeting Date: May 9, 2011 Agenda Item Number: 3C Department: Public Works Staff Contact: Fred McVey www.eugene-or.gov Contact Telephone Number: 541-682-5216 ISSUE STATEMENT The City Council is asked to approve a resolution adopting a decrease in Systems Development Charges (SDCs) for the parks system. The proposed adjustment follows adopted policy for implementing periodic adjustments to SDCs based on adopted cost indices. The current proposal reflects a one-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 park SDC methodology and rates, including provisions for periodic indexed (inflationary) adjustments. Resolution No. 4900 was most recently amended by the council through Resolution No. 4998 adopting inflationary adjustments to local wastewater, stormwater, transportation and parks SDC rates effective April 1, 2010. In addition, inflationary adjustments of SDC rates for the local wastewater, stormwater, and transportation systems were recently adopted by Administrative Order 58-11-01-F, effective June 1, 2011. 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 adjustments to SDCs to further account for changes in construction and land costs. Periodic adjustments allow SDCs to more closely reflect current costs of providing system capacity to new development. The proposed adjustment to the parks SDC is based on two adopted cost indices: 1) as with other local systems, the Engineering News Record Construction Cost Index (ENR CCI) is used to adjust park development costs; and 2) the Lane County Assessment & Taxation Office’s (LCA&T) published Certified Ratio Study (formerly known as the Sales Ratio Report) is used to adjust park land acquisition \\Cesrv500\cc support\CMO\2011 Council Agendas\M110509\S1105093C.doc