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HomeMy WebLinkAboutOrd. 20607COUNCIL ORDINANCE NO. 20607 COUNCIL BILL 5190 AN ORDINANCE CONCERNING SYSTEM DEVELOPMENT CHARGE METHODOLOGY; AMENDING SECTIONS 7.710, 7.715, 7.720, 7.725, 7.730 AND 7.735 OF THE EUGENE CODE, 1971; AND ADDING SECTION 7.732 TO THAT CODE. ADOPTED: November 26, 2018 SIGNED: November 30, 2018 PASSED: 6 REJECTED: OPPOSED: 1 ABSENT: Evans EFFECTIVE: January 1, 2019 Eugene ORDINANCE NO. 20607 AN ORDINANCE CONCERNING SYSTEM DEVELOPMENT CHARGE METHODOLOGY; AMENDING SECTIONS 7.710, 7.716, 7.720, 7.726, 7.730 AND 7.736 OF THE EUGENE CODE, 1971; AND ADDING SECTION 7.732 TO THAT CODE. I1:1=11115d11 WKS] 0XRc]4011=11111Z6] *IW NDIM 101FAM76]I110IT111. Section 1. Section 7.710(3) and 7.710(5) of the Eugene Code, 1971, are amended to provide as follows: 7.710 SDC - Methodology. (1) The methodology used to establish or modify a reimbursement fee shall consider the cost of then -existing facilities, prior contributions by then - existing users, gifts or grants from federal or state governments or private persons, the value of unused capacity available to future system users, rate -making principles employed to finance publicly owned capital improvements, and other relevant factors identified by the council. The methodology shall promote the objective that future systems users shall contribute an equitable share of the cost of then - existing facilities. (2) The methodology used to establish or modify the public improvement charge shall consider the cost of projected capital improvements needed to increase the capacity of the systems to which the fee is related and shall provide for a credit against the improvement fee for the construction of any qualified public improvement. (3) The methodology may also provide for a credit, reduction, or adjustment as authorized in sections 7.730 to 7.732. (4) Except when authorized in the methodology as provided in subsection 7.710(3), the fees required by this code which are assessed or collected as part of a local improvement district or a charge in lieu of a local improvement district assessment, or the cost of complying with requirements or conditions imposed by a land use decision are separate from and in addition to the systems development charge and shall not be used as a credit against such charge. Nothing in this subsection shall prevent the collection of a system development charge in connection with a local improvement assessment or charge in lieu of a local improvement district assessment. (6) The methodologies for establishing the systems development charge shall be established by resolution of the council and may be adopted and amended concurrent with the establishment or revision of the systems development charge. An amendment to a methodology that Ordinance - Page 1 of 8 changes the amount of a reimbursement fee or an improvement fee based on the periodic application of an adopted specific cost index or on a change in the costs of materials, labor or real property applied to projects or project capacity on a project list adopted pursuant to section 7.715(2) may be adopted by the city manager by administrative order pursuant to section 2.020 of this code. Section 2. Section 7.715(2) of the Eugene Code, 1971, is amended to provide as follows: 7.715 SDC - Compliance With State Law. (1) The revenues received from the systems development charges shall be budgeted and expended as provided by state law. The accounting of such revenues and expenditures required by state law shall be included in the city's Comprehensive Annual Financial Report required by ORS chapter 294. (2) The capital improvement plan required by state law as the basis for expending systems development charge revenues for capital improvements shall be the Eugene Capital Improvement Program (CIP) and the comprehensive plan as adopted by the council (Plan), the Transportation SDC Project Plan, other city facilities plans that may include SDC -eligible capital projects, or the capital improvement plan adopted by another governmental body which was used by the city manager in establishing the methodology for the systems development charge, provided such capital improvement plan is consistent with the CIP, the Transportation SDC Project Plan, and the Plan. Section 3. Section 7.720(6) of the Eugene Code, 1971, is amended and a new section 7.720(7) is added to provide as follows: 7.720 SDC - Collection of Charae (1) After adoption of the applicable methodology, a systems development charge is payable upon issuance of: (a) A building permit; (b) A development permit for development not requiring the issuance of a building permit; or (c) A permit to connect to the water, wastewater sewer or stormwater management facilities or in anticipation of the issuance of such a permit at the time of levying a local improvement district assessment for wastewater sewer or stormwater management facility. (2) If development is commenced without an appropriate permit or Ordinance - Page 2 of 8 connection is made to the water system, wastewater sewer system or stormwater management facility without an appropriate permit, the systems development charge is immediately payable upon the earliest date that a permit was required. (3) The city manager or the manager's designee shall collect the systems development charges from the permittee. The city manager or the manager's designee shall not issue any permit or allow connection described in subsection 7.720(1) until the charge has been paid in full or until provision for installment payments has been made within the limits prescribed in subsection 7.190(2). (4) Except as provided in this subsection, the obligation to pay the unpaid systems development charge and interest thereon shall be secured by a lien against the property upon which development is to occur. Such liens shall arise upon issuance of the permit requiring the system development charge and shall be entered on the city's lien docket and the debt secured thereby may be collected in the same manner as allowed by law for street improvement assessment liens. In lieu of such lien, upon application of the permittee the obligation to pay the unpaid systems development charge and interest thereon may be secured by property, bond, deposits, letter of credit or other security acceptable to the city manager or the manager's designee. (6) When the obligation to pay the unpaid systems development charge is imposed at the time of levying a local improvement district assessment for wastewater sewer or of paying an equivalent assessment for wastewater sewer and the obligation is secured by a lien against the real property being developed, the person paying the systems development charge in installments may apply for deferral of the payments as provided in section 7.195. (6) Except as provided in this subsection, SDC fees paid are not refundable and, in the case of an agreement to pay SDCs in installments, the terms of the agreement may not be modified. A partial refund of SDC fees will be made or a modification of an installment agreement will be allowed when an active development permit is canceled or expires without being used, a change of design of an active development permit is approved that results in a less intense use of the property, or property previously developed as a manufactured home park is partitioned and redeveloped. No portion of the administrative charge will be refunded, and additional review fees may be imposed to cover the cost of calculating and processing the partial refund. (7) The SDC methodology adopted under section 7.710 of this code may require that a proposed development be reviewed by the city in order to determine whether the proposed development will result in an increase in the usage of any capital improvement or will create the need for additional capital improvements. Development that will have such an impact will be charged SDCs and associated administrative charges. If this review determines that the development will not have such an Ordinance - Page 3 of 8 impact, then only a review fee may be imposed for this review. Section 4. Section 7.725 of the Eugene Code, 1971, is amended to provide as follows: 7.725 SDC — Exemptions. (1) Except for the systems development charge attributable to the wastewater sewer system and the stormwater management facilities, all development which existed or for which the city had received a completed building permit application on or before June 30, 1991, or for which a building permit was issued before that date, is exempt from the systems development charge imposed in section 7.705. (2) Housing for low-income persons is exempt from the systems development charge imposed in section 7.705, subject to the following limitations: (a) Commencing with the 1998 fiscal year, and continuing each fiscal year thereafter, the city manager or designee may waive a base amount totaling $115,000 annually of system development charges for housing for low-income persons. (b) Each fiscal year that there is a change in the rates for the system development charges for residential development, the base amount for that fiscal year shall be adjusted in an amount proportionate to that change. (c) If any portion of the authorized base amount remains unallocated at the end of a fiscal year, that portion shall be added to the authorized base amount for the next fiscal year. (d) In the event the property for which an exemption is granted ceases to be utilized for housing for low-income persons or is sold or transferred for use other than housing for low-income persons within five years from the date the certificate of exemption is recorded, the person to whom the exemption was granted shall be required to pay to the city the amount of the exempted systems development charges, plus interest at the statutory rate for interest on a judgment from the date the certificate was recorded. (e) Upon issuance of the certificate of occupancy, the city shall record the certificate of exemption documenting the date and amount of the exemption with the Lane County Recorder's office. (f) A transfer from an owner to whom an exemption was granted to the initial lessee under a lease to purchase agreement shall not be deemed a transfer of ownership for purposes of this subsection. (g) The exemption authorized herein does not include an exemption from the regional wastewater systems development charge. (h) For purposes of this subsection (2), "low-income persons" means: Ordinance - Page 4 of 8 1. With regard to rental housing, persons with an income at or below 60 percent of the area median income as determined by the State Housing Council based on information from the United States Department of Housing and Urban Development; and 2. With regard to home ownership housing and lease to purchase home ownership housing, persons with an income at or below 80 percent of the area median income as determined by the State Housing Council based on information from the United States Department of Housing and Urban Development. Section 5. Section 7.730(3) of the Eugene Code, 1971, is amended to provide as follows: 7.730 SDC - Credits. (1) As used in this section and in the definition of "Qualified public improvements" in section 7.010, the word "contiguous" means: in a public way which abuts. (2) When development occurs which does not change the use of a building in its entirety and which must pay a system development charge under section 7.705 of this chapter, the system development charge for the existing use(s) shall be calculated and if it is less than the system development charge for the proposed use(s), the difference shall be the system development charge. If the change in use results in the system development charge for the proposed use being less than the system development charge for the existing use, no system development charge shall be required; however, no reimbursement or credit shall be given and an administrative charge shall be imposed. (3) When development occurs that demolishes an entire building or will change the use(s) of a building in its entirety and which must pay a system development charge under section 7.705 and/or an administrative charge per the SDC methodology adopted under section 7.710 of this chapter, the system development charge for the previous most intense verifiable use per system (i.e. parks, stormwater, transportation, wastewater) shall be calculated and if it is less than the system development charge for the proposed use, the difference shall be the system development charge. If the change in use results in the system development charge for the proposed use being less than the system development charge for the previous most intense verifiable use per system, no system development charge shall be required for that system; however, no reimbursement or credit shall be given and an administrative charge shall be imposed. (4) A credit shall be given for the cost of a qualified public improvement Ordinance - Page 5 of 8 associated with a development. The credit provided for by this subsection shall apply only to the improvement fee imposed for the type of improvement being constructed, and shall not exceed the improvement fee even if the cost of the capital improvement exceeds the applicable improvement fee. Credit may be granted only for the cost of that portion of such improvement that exceeds the government unit's minimum standard facility size or the capacity needed to serve the particular development project or property. (6) The methodology may provide for a credit against the public improvement fee, the reimbursement fee, or both, for a capital improvement constructed as part of the development that reduces the development's demand upon existing capital improvements or the need for future capital improvements or that would otherwise have to be constructed at city expense under the then -existing council policies. (6) Except to the extent that a capital improvement for which a credit is given is part of the phasing of a larger project and that the credit received against the systems development charge is greater than the charge for the phase where the capital improvement is constructed, credit shall not be transferable from one development to another. (7) Credit shall not be transferable from one type of capital improvement to another. Section 6. Section 7.732 of the Eugene Code, 1971, is added to provide as follows: 7.732 SDC — Impact Reductions and Compact Development Adiustments. (1) The methodologies may include provisions pertaining to a reduction in a development's calculated SDC for one or more of the city's capital systems if the development incorporates private physical improvements or programs that will permanently reduce the impact the development has upon that capital system. (2) The methodologies may include provisions pertaining to an adjustment to a development's calculated transportation SDC for specific types of compact development. (3) The impact reductions and compact development adjustments approved for reduction or adjustment of the calculated SDC for one type of capital system shall not be transferable to reduce or adjust the SDC for another type of capital system. Section 7. Section 7.735(2) of the Eugene Code, 1971, is amended to provide as follows: Ordinance - Page 6 of 8 7.735 SDC -Appeal Procedures (1) As used in this section, "working day" means a day when the general offices of the city are open to transact business with the public. (2) A person aggrieved by a decision required or permitted to be made by the city manager or the manager's designee under sections 7.700 to 7.732 or a person challenging the propriety of an expenditure of systems development charge revenues may appeal the decision or the expenditure by filing with the public works staff at the city's permit center a written request for consideration by the hearings officer and by paying the fee for an appeal established under section 2.020 of this code. Such appeal shall describe with particularity the decision or the expenditure which the person appeals and shall comply with subsection (4) of this section. (3) An appeal of an expenditure must be filed within two years of the date of alleged improper expenditure. Appeals of any other decision must be filed within 15 working days of the date of the decision. (4) The appeal shall state: (a) The name and address of the appellant; (b) The nature of the determination being appealed; (c) The reason the determination is incorrect; and (d) What the correct determination of the appeal should be or how the correct determination should be derived. An appellant who fails to file such a statement within the time permitted waives his/her objections, and his/her appeal shall be dismissed. (5) Unless the appellant and the city agree to a longer period, an appeal shall be heard by a hearings officer within 15 working days of the receipt of the notice of intent to appeal. At least ten working days prior to the hearing, the city shall mail notice of the time and location thereof to the appellant. (6) The hearings officer shall hear and determine the appeal on the basis of the appellant's written statement and any additional evidence he/she deems appropriate. At the hearing the appellant may present testimony and oral argument personally or by counsel. The rules of evidence as used by courts of law do not apply. (7) The appellant shall carry the burden of proving that the determination being appealed is incorrect and what the correct determination should be or how a correct determination should be derived. (8) The hearings officer shall issue a written decision within ten working days after the hearing date and the decision of the hearings officer shall be final. Section 8. The City Recorder, at the request of, or with the consent of the City Attorney, is authorized to administratively correct any reference errors contained herein, Ordinance - Page 7 of 8 Section 8. The City Recorder, at the request of, or with the consent of the City Attorney, is authorized to administratively correct any reference errors contained herein, or in other provisions of the Eugene Code, 1971, to the provisions added, amended or repealed herein. Section 9. This Ordinance shall become effective on January 1, 2019. Passed by the City Council this 261h day of November, 2018 City Recorder Ordinance - Page 8 of 8 Approved by the Mayor this day of? 'r- ' , , 2018 /Mayor