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Home My WebLink AboutItem 2E: Resolution Adopting Adjustments to Parks SDC ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Adoption of Resolution 4929 Adopting Amended Systems Development Charge Methodology for Parks System and Amending Resolution No. 4900 Meeting Date: February 25, 2008 Agenda Item Number: 2E Department: Public Works Staff Contact: Fred McVey www.eugene-or.gov Contact Telephone Number: 682-5216 ISSUE STATEMENT The City Council is asked to approve a resolution adopting an inflationary increase 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. BACKGROUND Council Action History On April 9, 2007, the council adopted the System Development Charges (SDC) Methodologies by Resolution No. 4900 which updated the parks SDC methodology and rates. Since the adoption of Resolution 4900, inflationary adjustments of SDC rates for the Regional Wastewater System were adopted by Administrative Order No. 58-07-08-F, effective August 20, 2007. 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) the 20-city national average construction cost index as published by the Engineering News-Record (ENR) is used to adjust park development costs; and, 2) the Lane County Assessment & Taxation Office’s published 2007 Sales Ratio Report is used to adjust park land acquisition costs. The ENR for the period of October 2006 through December 2007 reflects an increase in average construction costs of 2.6%. The 2007 Sales Ratio Report reflects a 28% increase in average costs of vacant residential and recreational land categories within the areas best representing the Eugene urban area. The combined effect of applying these two indices to the parks SDC is that rates for residential development types are proposed to increase by approximately 9.9% while rates for nonresidential development types will increase by about 14.3%. The difference in rate adjustments between residential F:\CMO\2008 Council Agendas\M080225\S0802252E.doc and nonresidential categories is related to the effect of the inflationary adjustments on the park bond debt service SDC credit calculation. This is a result of how construction and land costs impact the various projects in the PROS Project Plan; the SDC rate is based on a different mix of construction and land acquisition project costs than the mix of these project costs anticipated to rely on property tax or bond funding which form the basis of the credit. Due to these differences, the gross SDC per unit increases more than the credit. Because the nonresidential SDC has a higher credit against the gross SDC per unit to begin with, it results in the net SDC increasing more for nonresidential than residential. Council Goals/Action Priorities This agenda item relates to two council goals: Sustainable Development; and Fair, Stable and Adequate Financial Resources. Timing The parks SDC rates were last updated in May 2007, reflecting costs and rate factors current as of October 2006. The proposed adjustment to rates based on construction cost inflation for the period of October 2006 through December 2007 provides for timely update of rates. While the Eugene Code and Oregon SDC statutes do not require notice of adoption by resolution of inflationary adjustments based on a cost index, a notice has been provided as a courtesy to interested persons. The notice was published in the Register-Guard on February 8, 2008, and posted, along with the draft resolution and exhibit, at Eugene City Hall and the Public Works Building lobby. This information has also been made available at the City’s web site at www.eugene-or.gov/SDC. The adjusted rates are proposed to go into effect on April 3, 2008. It is anticipated that inflationary adjustments to the local wastewater, stormwater, and transportation SDC rates will be less than five percent and thus will be adjusted by administrative order, also with a proposed effective date of April 3, 2008. RELATED CITY POLICIES The council adopted by resolution Growth Management Policy #14 which provides that development shall be required to pay the full cost of extending infrastructure and services. Chapter 223 of the Oregon Revised Statutes prescribes the rights and responsibilities of local governments in developing and imposing SDCs, providing for adoption of a cost index as an administrative means for adjustments to SDCs. The Eugene Code, Chapter 7, prescribes the process for development, adoption and administration of SDCs, providing for adoption of methodologies related to SDCs consistent with statutory requirements. The council has adopted by resolution the SDC Methodologies which provide for periodic adjustment of Eugene’s SDCs based on adopted cost indices. The methodologies provide that the City Manager may adopt fee changes based on an adopted index by administrative order so long as the fees are not revised by greater than five percent. Per the methodologies, revisions to fees by more than five percent shall be established by resolution of the council. COUNCIL OPTIONS 1. Adopt the resolution providing an inflationary adjustment of parks SDC rates. 2. Take no action on the resolution. 3. Direct the City Manager to prepare other adjustments to SDC rates. F:\CMO\2008 Council Agendas\M080225\S0802252E.doc CITY MANAGER’S RECOMMENDATION The City Manager recommends adoption of the resolution providing an inflationary adjustment of SDC rates. SUGGESTED MOTION Move to adopt Resolution 4929 adopting amended systems development charge methodology for parks system and amending Resolution No. 4900. ATTACHMENTS A. Proposed Resolution and Exhibits FOR MORE INFORMATION Staff Contact: Fred McVey Telephone: 682-5216 Staff E-Mail: fred.mcvey@ci.eugene.or.us F:\CMO\2008 Council Agendas\M080225\S0802252E.doc ATTACHMENT A RESOLUTION NO. ______ A RESOLUTION ADOPTING AMENDED SYSTEMS DEVELOPMENT CHARGE METHODOLOGY FOR PARKS SYSTEM AND AMENDING RESOLUTION NO. 4900. The City Council of the City of Eugene finds as follows: A. The System Development Charges (SDC) Methodologies were adopted by Resolution No. 4900, effective on May 7, 2007. B. Since the adoption of Resolution 4900, inflationary adjustments of SDC rates for Regional Wastewater System were adopted by Administrative Order No. 58-07-08-F, effective August 20, 2007. C. It is necessary to adjust the SDCs by implementing a 9.9% increase in the Parks SDC for residential development, and a 14.3% increase in the Parks SDC for nonresidential development. These adjustments are based on: (1) the Park development/renovation cost adjustment using the 20-city national average Construction Cost Index as published by the Engineering News-Record resulting in a 2.6% increase; and (2) the Park land acquisition cost adjustment using the Lane County Assessment & Taxation Office’s published 2007 Sales Ratio Report resulting in a 28.0% increase. D. Section 2.4 of the SDC Methodologies requires that adjustment of fees by more than five percent shall be implemented by resolution of the City Council. NOW, THEREFORE, based upon the above findings, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE, a Municipal Corporation of the State of Oregon, as follows: Section 1. The amendments to the SDC Methodology for Parks System attached as Exhibit A are adopted. Section 2. The Systems Development Charges are amended by implementing a 9.9% increase in the Parks SDC for residential development, and a 14.3% increase in the Parks SDC for nonresidential development, as set forth in the attached Exhibit A. Section 3 . The City Recorder is requested to append a copy of this Resolution to the System Development Charge Methodologies. Section 4 . This Resolution shall become effective on April 3, 2008. The foregoing Resolution adopted the ______ day of _________________, 2008. ___________________________________ City Recorder Resolution - Page 1 of 1 S0802252E-attA.doc Exhibit A to Resolution _____ Ûºº»½¬·ª» ß°®·´ íô îððè T A B L E 1 SUMMARY OF LOCAL SYSTEMS DEVELOPMENT CHARGES (See Appendix C-2 for information regarding the Regional Wastewater SDC) TransportationWastewater Local (City)StormwaterParks Ý±¬ °»® Ì®·° ã üïôëêêòïç Ý±¬ °»® ²»© ®»·¼»²¬·¿´ «²·¬ ø»ò¹òô Ì±¬¿´ ¬±®³©¿¬»® «²·¬ ½±¬ °»® Ò»¬ Î»·¼»²¬·¿´ ½±¬ °»® Ü©»´´·²¹ Ë²·¬æ Í·²¹´» Ú¿³·´§ ã üíôîïíòððå ·²¹´»óº¿³·´§ô ³±¾·´» ¸±³» °¿®µô ¯òº¬òò ±º ·³°»®ª·±« «®º¿½» ß®»¿ ã Ü«°´»¨ñÌØñÓØ ã üîôêðìòðð ¼«°´»¨»ô ¿°¿®¬³»²¬÷ ã ¿ ¾¿» üðòïéðò Ý¸¿®¹» ¿®» ¾¿»¼ ±² «»ò Ó«´¬·º¿³·´§ ã üîôðíîòðð ®¿¬» ±º üíìîòîð °´« üðòðèíð °»® ïóî Ú¿³·´§ ¼»ª»´±°³»²¬ «²¼»® Ò±²®»·¼»²¬·¿´æ ¯«¿®» º±±¬ ±º ´·ª·²¹ ¿®»¿ò íôððð ¯òº¬ò ¸¿ª» ¬·»®»¼ ®¿¬» ¾¿»¼ Ý´¿ ß ã üïôîìêòðð °»® Î±±³å Î»·¼»²¬·¿´ ¿¼¼·¬·±² ©·´´ ¾» ±² »¬ò ·³°ò «®º¿½» ¿®»¿ò ïóî Ý´¿ Þ ãüèííòðð °»® ÌÙÍÚå ½¸¿®¹»¼ üðòðèíð °»® ¯«¿®» º±±¬ ±º Ú¿³·´§ ±ª»® íôððð ¯òº¬òò ¿²¼ Ó«´¬·ó Ý´¿ Ý ã üëïðòðð °»® ÌÙÍÚå ·²½®»¿»¼ ´·ª·²¹ ¿®»¿ò Ú¿³·´§ ú Ò±²®»·¼»²¬·¿´ ¿®» ¾¿»¼ Ý´¿ Ý ã üíðíòðð °»®ÌÙÍÚå Ò±²®»·¼»²¬·¿´ «» ã üîòëçîì °»® ±² ¿½¬«¿´ ·³°ò «®º¿½» ¿®»¿ò Ý´¿ Û ã üïîíòðð °»® ÌÙÍÚò ¹¿´´±² ±º ¼¿·´§ º´±©ñ¼·½¸¿®¹»òÝ¸¿®¹» º±® Óº¹ò Ø±³» Ð¿®µ ¿®» ¾¿»¼ ±² »¬ò ·³°ò «®º¿½» ¿®»¿ °»® °¿½» °´« ¿½¬«¿´ ·³°»®ª·±« «®º¿½» ¿®»¿ ±º ¿¼¼·¬·±²¿´ ½±³³±² ¿®»¿ò Û¬·³¿¬»¼ ½±¬ ±º ¿®¬»®·¿´ñ½±´´»½¬±® Û¬·³¿¬»¼ ²±²ó¿»¿¾´» ½±¬ ±º Û¬·³¿¬»¼ ²±²ó¿»¿¾´» ½±¬ ±º Ë²·¬ ½±¬ º±® ª¿®·±« ½±³°±²»²¬ò Í¬®»»¬ §¬»³ ø²±² ¿»¿¾´» »¨·¬·²¹ §¬»³ «·²¹ ½±¬ º®±³ §¬»³ó©·¼» ½¿°¿½·¬§ º®±³ º«¬«®» ½±¬ °»® ´¿²»ó³·´»ô ½±¬ ±º möËÜÇÔÉÄêØÆØËñÔÏØÊêÄÊÉØÐ½¿°¿½·¬§ó»²¸¿²½·²¹ °®±¶»½¬ ¿ ·²¬»®»½¬·±²ô ¬®¿ºº·½ ·¹²¿´ô ¬®»»¬ çÜÑÈÜÉÔÎÏðÎÙØÑlÙØÇØÑÎÍØÙÛÄ½±²¬¿·²»¼ ·² ¬¸» Í¬±®³©¿¬»® ÍÜÝ ´·¹¸¬ô ¬®«½¬«®»÷ ¿²¼ ±ºº ¬®»»¬ ÝØîÓ Ø·´´ò Ý¸¿®¹» ¿®» ²»¬ ±º ¿´´ Ð®±¶»½¬ Ô·¬ ¿²¼ ¿ª¿·´¿¾´» »¨·¬·²¹ ¾·½§½´» °¿¬¸òº»¼»®¿´ ¹®¿²¬ ¿²¼ ±«¬¬¿²¼·²¹ ¬±®³©¿¬»® §¬»³ ½¿°¿½·¬§ò ¼»¾¬ò Û¨·¬·²¹ ´»ª»´ ±º »®ª·½» º±® Ü»·¹² º´±© ¬¿²¼¿®¼ ½«®®»²¬´§ Ü»·¹² ¬¿²¼¿®¼ ½«®®»²¬´§ «»¼ ¾§ Ð´¿²²»¼ ´»ª»´ ±º »®ª·½» º±® ª¿®·±« ½±³°±²»²¬ ¿ »¬¿¾´·¸»¼ «»¼ ¾§ ¬¸» ½·¬§ º±® ª¿®·±« ´¿²¼ ¬¸» Ý·¬§ ¬± ¸¿²¼´» ¿ Ú·ª»ó§»¿® ª¿®·±« ½±³°±²»²¬ô ¿ ¾§ ½«®®»²¬ Ý·¬§ ¬®¿²°±®¬¿¬·±² «» ¬§°»ò ÐÚË »¯«·ª¿´»²¬ ¿®» ¬±®³ò»¬¿¾´·¸»¼ ·² ¬¸» ¿¼±°¬»¼ Û«¹»²» ¼»·¹² ¬¿²¼¿®¼ò¼»¬»®³·²»¼ °»® Ñ®»¹±² ¿¼±°¬»¼ Ð¿®µô Î»½®»¿¬·±²ô ú Ñ°»² Í°¿½» Ð´«³¾·²¹ Ý±¼»òÝ±³°®»¸»²·ª» Ð´¿²ù Ð®±¶»½¬ ú Ð®·±®·¬·» Ô·¬ò Í¬®»»¬ Ý±³°±²»²¬æ Î»·³¾«®»³»²¬ º»»Î»·³¾«®»³»²¬ º»» Î»·³¾«®»³»²¬ º»» ìðû ×³°®ò Ú»» èìû ìéû îíû êðû Î»·³ò Ú»» Þ·µ» Ý±³°±²»²¬æ×³°®±ª»³»²¬ º»»×³°®±ª»³»²¬ º»»×³°®±ª»³»²¬ º»» ïððû ×³°®ò Ú»» ïêû ëíû ééû Ý¸¿®¹» º±® ²»© ±® »¨°¿²¼·²¹ Ò»© ±® »¨°¿²¼·²¹ ®»·¼»²¬·¿´ «» Ý¸¿®¹» º±® ²»© ø¿´´÷ ±® »¨°¿²¼·²¹ Ý¸¿®¹» º±® ²»© ±® »¨°¿²¼·²¹ ¼»ª»´±°³»²¬ ¿®» ¾¿»¼ ±² ¬¸» ½±¬ ¿®» ½¸¿®¹»¼ ¾¿»¼ ±² ¿ °»® øÓ«´¬·óº¿³·´§ô Ò±²®»·¼»²¬·¿´÷ ¼»ª»´±°³»²¬ ¿®» ¾¿»¼ ±² ¿ ¬·»®»¼ °»® ¬®·° ¬·³» ¬¸» ¬®·° ®¿¬» ¿·¹²»¼ ¼©»´´·²¹ «²·¬ ½±¬ °´« ¿ ®¿¬» °»® ¼»ª»´±°³»²¬ ¿®» ¾¿»¼ ±² ¿ º´¿¬ ®¿¬» °»® ¼©»´´·²¹ «²·¬ º±® º±® ¿ °»½·º·½ ¼»ª»´±°³»²¬ ¬§°» ¯«¿®» º±±¬ ±º ´·ª·²¹ ¿®»¿ò Ò±²ó»¬·³¿¬»¼ ±® ¿½¬«¿´ ·³°»®ª·±« ®»·¼»²¬·¿´ ¼»ª»´±°³»²¬ ¬§°» ¿²¼ ¬·³» ¬¸» ²«³¾»® ±º «²·¬ ±º ®»·¼»²¬·¿´ «» ¿®» ½¸¿®¹»¼ ¾¿»¼ «®º¿½» ¿®»¿ ¿²¼ ¬¸» ¬±¬¿´ ¿ ¬·»®»¼ º´¿¬ ®¿¬» °»® ®±±³ ±® °»® ³»¿«®»³»²¬ °®±°±»¼ò±² ¬¸» ²«³¾»® ±º ÐÚË ¿¬ ¿ ®¿¬» ¬±®³©¿¬»® «²·¬ ½±¬ °»® ¯«¿®» ¬¸±«¿²¼ ¹®± ¯«¿®» º»»¬ ±º º±® ¬¸» °»½·º·½ ¼»ª»´±°³»²¬ ¬§°»òº±±¬ò Í¬±®³©¿¬»® ·³°¿½¬ ²±¬ ¾«·´¼·²¹ ¿®»¿ º±® ²±²®»·¼»²¬·¿´ Ý®»¼·¬ º±® °¿¬ ¬®«²µ »©»® ´»ª§ ¿¬¬®·¾«¬¿¾´» ¬± ·³°»®ª·±« «®º¿½» ¼»ª»´±°³»²¬ ¬§°»ò °¿§³»²¬ ©·´´ ¾» ¿°°´·»¼ ¬± ¬¸» ¿®»¿ ©·´´ ¾» ½¸¿®¹»¼ ¾¿»¼ ±² ´±½¿´ ½¸¿®¹»ò»¯«·ª¿´»²¬ «®º¿½» ¿®»¿ ¿²¼ ¬¸» ¬±¬¿´ ¬±®³©¿¬»® «²·¬ ½±¬ °»® ¯«¿®» º±±¬ò Ò±¬»æ ß¼³·²·¬®¿¬·±² ½±¬ ¿®» ²±¬ ·²½´«¼»¼ ·² ¬¸» º·¹«®» ¿¾±ª»ô »» »½¬·±² îòíòï º±® ³±®» ·²º±®³¿¬·±²ò % City Funded (Land) % City Funded (Dev) Running Trail (miles) Multi-Use Trail (miles) Performance Space Botanical Garden Priority Priority Priority Priority Priority Priority Priority Table 16 System-Wide Unit Costs; Residential & Nonresidential Development per Component 83.6%43,81916.4%8,596 Residential Unit Nonresidential Unit ResidentialCostNonresidentialCost Cost BasisShare($/New Person)Share($/New Equiv. Pop.) Improvement Fee New Parks and Open Space $9,365,336$7,829,420$179$1,535,915$179 Neighborhood Parks Community Parks $13,293,495$11,113,362$254$2,180,133$254 $730,445$610,652$14$119,793$14 Urban Plaza Linear Parks$781,777$653,565$15$128,211$15 Natural Area Parks $8,439,285$7,055,242$161$1,384,043$161 $1,593,000$1,331,748$30$261,252$30 Metropolitan Parks Special Use Facilities $62,886$52,573$1$10,313$1 $34,266,223$28,646,563$654$5,619,661$654 Sub-total New Recreation Facilities $21,127,739$17,662,790$403$3,464,949$403 Improving Existing Facilities $4,608,731$3,852,899$88$755,832$88 Access Improvements $1,025,358$857,199$20$168,159$20 $61,028,051$51,019,451$1,164$10,008,600$1,164 Subtotal IMPROVEMENT Reimbursement Fee Existing Parks and Facilities Neighborhood Parks$5,429,828$4,539,336$104$890,492$104 $0$0$0$0$0 Community Parks Urban Plaza$0$0$0$0$0 $1,851,219$1,547,619$35$303,600$35 Linear Parks Natural Area Parks$72,837$60,892$1$11,945$1 Metropolitan Parks$11,486,530$9,602,739$219$1,883,791$219 $75,424$63,054$1$12,370$1 Special Use Facilities $18,915,838$15,813,641$361$3,102,197$361 Subtotal REIMBURSEMENT $79,943,889$66,833,091$1,525$13,110,798$1,525 Total SYSTEM Less Credit $308$880 Net Cost per Unit $1,217$645 Table 17 SDC Schedule Persons or EP Gross SDC per Net SDC per Category Credit per Unit per UnitUnitUnit Residential per DU $814$3,213 Single-family2.64$4,027 $660$2,604 Duplex/Town Hm/Mobile 2.14$3,264 $515$2,032 Multifamily/Condos1.67$2,547 Nonresidential per Room $1,698$1,246 A 1.93 $2,944 per TGSF $1,135$833 B 1.29 $1,968 $695$510 C 0.79 $1,205 D 0.47 $717$414$303 $167$123 E 0.19 $290 EP - Equivalent Population; TGSF = Thousand Gross Square Feet; DU = Dwelling Unit Nonresidential SDC Class Definitions ClassDevelopment Types Included AHotels, motels, Bed & Breakfasts, & other tourist accommodations Office (financial, investment, real estate, government, medical, legal & other B business/professional services), institutional, grocery, eating & drinking establishments CIndustrial, wholesale, manufacturing, transportation, agriculture DGeneral retail & services, recreation ECommercial warehousing & storage 2.0 Adopted SDC Fee Schedule: Current Rates 2.1 Transportation System: Cost per trip $1,566.19 2.2 Local Wastewater System: Residential dwelling unit base fee $342.20 Residential dwelling unit total living area multiplication factor $0.0830 Non-Residential rate per gal/day per land use type per PFU Varies 2.3 Regional (MWMC)Wastewater System: Residential dwelling unit $1,085.74 Non-Residential rate per gal/day per land use type per FEU Varies Unit Cost by Component Average Daily Flow (per gallon) $0.494 Peak Wet Weather Flow (per gallon) $0.541 Biochemical Oxygen Demand (per pound) $1,010.734 Suspended Solids (per pound) $766.682 2.4 Stormwater System: Small Residential $306.00 (building footprint < 1,000 sq. ft.) Medium Residential $493.00 (building footprint > 1,000 sq.ft. and < 3,000 sq. ft.) Small Duplex $612.00 (unit building footprints < 1,000 sq. ft.) Medium Duplex $986.00 (unit building footprints >1,000 sq. ft. and < 3,000 sq. ft.) Manufactured Home Park Per space $286.28 (assumes 1,684 sq. ft. per space) plus Per sq. ft. actual impervious surface area, addt’l common areas $0.170 All Other Development Per sq.ft. actual impervious surface area and/or equivalent $0.170 2.5 Parks System: Residential (per Dwelling Unit) Single Family $3,213.00 Duplex/Town Home/Mobile Home/Accessory DU $2,604.00 Multifamily $2,032.00 Nonresidential (unit varies – see Table 19 for Class description) Class A (per Room) $1,246.00 Class B (per thousand gross square feet or TGSF) $833.00 Class C (per TGSF) $510.00 Class D (per TGSF) $303.00 Class E (per TGSF) $123.00 2.6 Administration Fees: City of Eugene if based on percentage 5.0% City of Eugene if based on flat rate $60.00 MWMC per permit application $10.00 2.7 Appeal Fee: City of Eugene per SDC appeal $100.00