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HomeMy WebLinkAboutAdmin Order 58-21-21-F -- Final SDC Infl Adj (all systems)Administrative Order - Page 1 of 2 ADMINISTRATIVE ORDER NO. 58-21-21-F of the City Manager of the City of Eugene INFLATIONARY ADJUSTMENTS TO SYSTEMS DEVELOPMENT CHARGES FOR TRANSPORTATION SYSTEM, LOCAL WASTEWATER SYSTEM, REGIONAL WASTEWATER SYSTEM, STORMWATER SYSTEM, AND PARKS AND RECREATION SYSTEM. The City Manager of the City of Eugene finds as follows: A. Section 2.020 of the Eugene Code, 1971 (EC), authorizes the City Manager of the City of Eugene to determine and set fees and charges to be imposed by the City for services, goods, use of municipal property, and licenses and permits. EC 7.710(5) and Section 2.4 of the Systems Development Charge (SDC) Methodologies authorize the City Manager to adopt by administrative order pursuant to EC 2.020, a change in the amount of a reimbursement fee or an improvement fee if the change in amount is based on: (1) the periodic application of an adopted specific cost index (inflationary adjustment); or (2) a modification to any of the factors related to rate that are incorporated in the established methodologies, so long as the fees are not increased by more than five percent within any 12-month period. B. Inflationary adjustments to the Local Wastewater, Regional Wastewater and Stormwater System SDCs have been adopted most recently by Administrative Order No. 58-19- 11-F, effective August 1, 2019. Inflationary adjustments to the Transportation System SDCs were most recently adopted as part of the update to the Transportation SDC methodology by Resolution No. 5254, effective January 1, 2020. Inflationary adjustments to the Parks and Recreation System SDCs were most recently considered as part of the update to the Parks and Recreation SDC methodology by Resolution No 5306, effective August 13, 2020. C. Section 2.4 of the City of Eugene System Development Charge Methodology provides for periodic inflationary adjustments to the SDC rates for the Transportation, Local Wastewater, Regional Wastewater, Stormwater and Parks and Recreation Systems by applying the 20-city national average construction cost index published by Engineering News-Record (ENR) and / or the Lane County Assessor’s Office Certified Ratio Study (when adjusting the SDC for acquisition costs of real property). D. Based on the Engineering News-Record 20-City National Average Construction Cost Index of 2.96% (March 2020 through April 2021), these increases will not result in a 5% or greater fee revision within a 12-month period. E. Based on the Lane County Assessor’s Office Certified Ratio Study, the acquisition costs of real property increased by 7.52%. Administrative Order - Page 2 of 2 F. Pursuant to Sections 2.020 and 7.710(5) of the Eugene Code, 1971, to Section 2.4 of the SDC Methodology and to the recommendation of the Metropolitan Wastewater Management Commission, and after considering the applicable policies, enactments and directivesof the City Council, the amount charged for these services by the City in the past, the full costs ofproviding the services, the amounts charged by other comparable providers and the revenue needsof the City (see Exhibit B), on June 9, 2021, I issued Administrative Order No. 58-21-21 directing that public Notice be given advising the public of an opportunity to submit comments on my proposal to implement inflationary increases to the SDC rates for theTransportation, Local Wastewater, Regional Wastewater, Stormwater and Parks and Recreation Systems as shown in Exhibit A to this Order. G. Notice of the proposed amendments was provided to the Mayor and City Councilors, to persons who requested such notice, by publication in the Register Guard newspaper, and by posting online and at City Hall. H. Notice provided that written comments would be received for a period of 15 days from the date of posting and publication. No comments were received within the time or in the manner set forth in the Notice. I. I find that the inflationary adjustments set forth in Exhibit A to this Order are consistent with adopted policies of the City, are in conformity with applicable state law, are authorized by Section 7.710(5) of the Eugene Code, 1971, and should be implemented effective July 1, 2021. On the basis of these findings, I order that: 1. The adjusted Systems Development Charges for Transportation System, Local Wastewater System, Regional Wastewater System, Stormwater System, and Parks and Recreation System set forth in Exhibit A attached to this Order are to be implemented effective July 1, 2021. 2. The unamended Systems Development Charges for Transportation System, Local Wastewater System, Regional Wastewater System, Stormwater System, and Parks and Recreation System remain in full force and effect. Dated this 25th day of June, 2021. MR Sarah Medary City Manager Exhibit A to Administrative Order No. 58-21-21-F Page 1 of 3 City of Eugene System Development Charge Methodology, Appendix F General Fee Schedule 2.0 Adopted SDC Fee Schedule: Current Rates - Effective July 1, 2021 2.1 Transportation System: Cost per trip $3,337.77 2.2 Local Wastewater System: Residential Base Fee $485.63 Residential dwelling unit total living multiplication factor $0.1177 Non-Residential rate per gal/day per land use per FEU Varies 2.3 Regional (MWMC) Wastewater System: Residential dwelling unit $1,787.36 Non-Residential rate per gal/day per land use per FEU Varies 2.4 Stormwater System: General System Capacity Small Residential (building footprint > or = 1,000 sq. ft.) $435.36 Medium Residential (building footprint <1,000 sq. ft and >3,000 sq. ft.) $701.41 Small Duplex (unit building footprint > or = 1,000 sq. ft.) $845.74 Medium Duplex (unit building footprint <1,000 sq. ft and < 3,000 sq. ft.) $1,402.82 Manufactured Home Park per space (assumes 1,684 sq. ft. per space) $407.31 Plus, per sq. f.t. impervious surface area, addt’l common areas $0.2419 All Other Development Per sq. ft. impervious surface area and/or equivalent $0.2419 LID System Capacity Small Residential (building footprint > or = 1,000 sq. ft.) $3,896.37 Medium Residential (building footprint <1,000 sq. ft and < 3,000 sq. ft.) $6,277.49 Small Duplex (building footprint > or = 1,000 sq. ft.) $7,792.75 Medium Duplex (unit building footprint <1,000 sq. ft and < 3,000 sq. ft.) $12,561.10 Manufactured Home Park Per space (assumes 1.684 sq. ft. per space) $3,540.83 plus Per sq. ft. impervious surface area, addt’l common areas $2.1649 All other development Per sq. ft. impervious surface area and/or equivalent $2.1649 Exhibit A to Administrative Order No. 58-21-21-F Page 2 of 3 2.5 Parks System: Residential (per dwelling) Single Family $4,413.98 Duplex/Town Home/Mobile Home/Accessory Dwelling Unit $3,513.35 Multifamily $2,792.04 Nonresidential (unit varies – see Table 19 for class description) Class A (per room) $1,760.26 Class B (per thousand gross square feet or TGSF) $1,176.24 Class C (per TGSF) $720.29 Class D (per TGSF) $428.28 Class E (per TGSF) $173.16 Effective beginning January 1, 2022 Single-Family Residential Living Area Category 800 sq. ft. or less $3,035.00 801 sq. ft. - 1500 sq. ft. $1,629.11 1501 sq. ft. - 3000 sq. ft $2,240.80 Over 3000 sq. ft. $2,787.60 Accessory Dwelling Unit $3,035.00 Mobile Home $1,455.62 Multifamily Residential 0 Bedrooms $901.65 1 Bedroom $992.50 2+ Bedrooms within ¼ mile of FTN route $1,151.99 2+ Bedrooms within ½ mile of FTN route $1,316.61 2+ Bedrooms all other areas of City $1,481.23 Non-Residential Category A $837.10 B $546.11 C $336.76 D $197.41 E $80.26 Effective beginning January 1, 2023 Single-Family Residential Living Area Category 800 sq. ft. or less $3,035.00 801 sq. ft. - 1500 sq. ft. $3,258.23 1501 sq. ft. - 3000 sq. ft $4,481.60 Over 3000 sq. ft. $5,575.19 Accessory Dwelling Unit $3,035.00 Mobile Home $2,911.23 Exhibit A to Administrative Order No. 58-21-21-F Page 3 of 3 Multifamily Residential 0 Bedrooms $1,803.30 1 Bedroom $1,984.99 2+ Bedrooms within ¼ mile of FTN route $2,303.99 2+ Bedrooms within ½ mile of FTN route $2,633.22 2+ Bedrooms all other areas of City Non-Residential Category $2,962.46 A $1,674.20 B $1,092.22 C $673.50 D $394.81 E $160.52 Effective beginning January 1, 2024 Single-Family Residential Living Area Category 800 sq. ft. or less $3,035.00 801 sq. ft. - 1500 sq. ft. $4,856.60 1501 sq. ft. - 3000 sq. ft $6,722.40 Over 3000 sq. ft. $8,362.79 Accessory Dwelling Unit $3,035.00 Mobile Home $4,366.85 Multifamily Residential 0 Bedrooms $2,704.94 1 Bedroom $2,977.49 2+ Bedrooms within ¼ mile of FTN route $3,455.98 2+ Bedrooms within ½ mile of FTN route $3,949.83 2+ Bedrooms all other areas of City $4,443.69 Non-Residential Category A $2,511.29 B $1,638.34 C $1,010.26 D $592.22 E $240.78 Exhibit B to Administrative Order No. 58-21-21-F Page 1 of 2 City Manager’s Findings Proposed Systems Development Charge Inflationary Adjustments to Systems Development Charges for Transportation System, Local Wastewater System, Regional Wastewater System, Stormwater System, and Parks and Recreation System. Pursuant to Section 2.020(2) of the Eugene Code, 1971, the City Manager has considered the following factors in determining the proposed Systems Development Charge Inflationary Adjustments to Systems Development Charges for Transportation System, Local Wastewater System, Regional Wastewater System, Stormwater System, and Parks and Recreation System (a) Applicable policies, enactments and directives of the Council. EC 7.710 states that “an amendment to a methodology that 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 projected 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.” (b) The amount charged by the City in the past. SDC System FY21 Proposed FY22 Parks (SFD) $4,308 $4,414 Transportation (trip) $3,272 $3,337.77 Local Wastewater (residential dwelling unit base fee) $4,476.06 $4,566.03 SW (medium residential > 1,000 sq. ft and < 3,000 sq. ft.) $687.59 $701.41 (c) The full costs of providing the service supported by the fee. The inflationary rates used to arrive at the proposed SDC increases are determined by reliable sources and the proposed SDC rate increases reasonably rely on those sources to determine the additional sums needed to develop the projects on the ORS 223.309 capital improvement plans for each system of SDCs due to inflation. Exhibit B to Administrative Order No. 58-21-21-F Page 2 of 2 (d) The amounts charged by other comparable providers. The City of Eugene SDC fee, as compared to other similarly sized communities, remain relatively low. The data below is sample in Parks SDCs and was presented to City Council in 2020. Community Single-Family Rate Comparison FY20 Bend $8,300 Hillsboro $9,535 Wilsonville $5,374 Salem $4,613 Eugene $4,414 (proposed FY22) (e) The revenue needs of the City as determined by the adopted city budget. The revenue needs for SDCs are expressed through documents reviewed and approved by the City Council through a process separate from the city budget process.