Admin Order 58-11-01-F - Laserfiche WebLink

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new construction. He requests that, at least, the tinning of this amendment be reconsidered. Response City of Eugene Staff is acutely aware of the economic downturn that this community has, and continues to endure. Proposed adjustments scheduled in 2009 for local SDC rates and related SDC administrative fees were delayed until calendar year 2010 to provide relief to the development community. There are a couple of down -sides to the delay of periodic construction cost adjustments, one being that when the new rates are finally adopted they reflect a longer rate adjustment time period and result in higher spires in actual adjustment rates when implemented than if they had been adjusted over shorter periods of time. The other down side is that the planned public infrastructure projects to be funded, fully or in part, by SDC revenues are delayed. In response to this comment, the effective date of this administrative order has been delayed to June 1, 2011. This June 1, 2011, effective date will correspond with the effective date of the reduction to parks SDC rates that City staff will be proposing to the City Council. If Council adopts the proposed park SDC rates reduction, that rate adjustment together with this administrative order's 3.5% rate increase will result in an overall reduction in the amount of SDCs currently collected for the average single - family home. Specifically, if the Council approves City staff s recommendation to reduce the parks SDC with the June 1, 2011 effective date, the total SDCs collected for an average single - family home will be approximately -0.98% or - $88.15 less than is currently collected in SDCs. Comment 3 : Bruce Wiechert voiced his concern regarding the proposed SDC increases. He opined that this is an absolutely impossible time to be increasing development costs. with real estate prices tumbling, he is one of the last builders still building and wants to go on the record as adamantly opposing the proposed increase.. He stated that other methods must be found to reduce the City's increase in costs. , He felt that the proposed amendments might just be a technique to squeeze more funds from the private sector. He believed that the City should be instituting cost reduction measures for the building sector not increasing the cost. ,Response Systems development charge revenues fund capital infrastructure projects that meet the capacity demands of new development. The City continuously strives to mare capital project more cost- effective; however, construction costs in general tend to increase over time due to changes in material and labor costs. In accordance with the adopted Eugene SDC methodologies, SDC fees and credits may be periodically adjusted to account for changes in construction costs and system valuation. The City's adopted cost index -by which to adjust SDCs is the 20 -city national Construction Cost Index (CCI) as published by the Engineering News- Record (ENR). City of Eugene Staff is acutely aware of the economic downturn that this community has, and continues to endure. Proposed adjustments scheduled in 2009 for local SDC rates and related SDC administrative fees were delayed until calendar year 2010 to provide relief to the development community. SI]Cs are an important funding Administrative Order - Page 3 of 8