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HomeMy WebLinkAboutAdmin Order 58-24-09-F -- SDC Inflationary Adjustments FY25ADMINISTRATIVE ORDER NO. 58-24-09-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 (infl ationary 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. Transportation, Local Wastewater, Regional Wastewater, Stormwater, and Parks and Recreation System SDCs have been established most recently by Administrative Order No. 58-23-22-F, effective July 1, 2023 . 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. An inflationary adjustment of SDCs based on the Engineering News-Record 20 -City National Average Construction Cost Index of 2.70% and on the Lane County Assessor's Office Certified Ratio Study which reports an 8.12 % median movement ofreal market land values in the City of Eugene's taxing districts between calendar years 2022 (January 1, 2022 to January 1, 2023) and 2023 (January 1, 2023 to January 1, 2024) wi ll not result in administrative ly adopted changes of 5% or greater w ithin a 12-month period. E. 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 directives of the City Council , the amount charged for these services by the City in the past, the full costs of providing the services, the amounts charged by other comparable providers and the revenue needs of the C ity (see Exhibit B), on May 21, 2024, I issued Administrative Order No. 58-24-09 directing that public notice be given advising the public of an opportun ity to submit comments on the proposal to implement inflationary increases to the SDC rate s for the Transportation , Local Administrative Order -Page 1 of 2 Wastewater, Regional Wastewater, Stormwater, and Parks and Recreation Systems as shown in Exhibit A to this Order. F. Notice of the proposed amendments was given by providing copies of Administrative Order No. 58-24-09 , including Exhibit A (the current rates and proposed amendments) and Exhibit B (the Notice), to the Mayor and City Councilors ; making those documents available to persons who had requested such notice ; making the documents available for review at the Eugene City Engineer 's Office, Public Works Department, 99 East Broadway, Suite 400 , Eugene , Oregon ; and , on May 23 , 2024 , posting the documents at two City Hall locations. In addition , persons who requested notice of the amendments were mailed informational postcards as notification of the proposed amendments and , on May 23 , 2024, a copy of the Notice marked as Exhibit B to the Administrative Order was published in the Register-Guard Newspaper. G. 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 described in the Notice. H. Based on my investigation pursuant to the provisions of Section 2.020 of the Eugene Code , 1971 , I find that the inflationary adjustments set forth in Exhibit A to this Order are consistent with adopted policie s 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, 2024. On the basis of these findings, I order that: 1. The adjusted Systems Development Charges for the Transportation System , Local Wastewater System , Regional Wastewater System , Stormwater System , and Parks and Recreation System set forth in Ex hibit A attached to this Order are to be implemented effective July 1, 2024. Dated this 14th day of June, 2024. Administrative Order -Page 2 of 2 Sarah Medary City Manager ~ OKS ~ JW Exhibit A to Administrative Order No. 58-24-09-F Page 1 of 5 Systems Development Charges (Effective July 1, 2024) Charge Transportation System* Cost per trip $3,691.03 Local Wastewater System* Eugene Local WW SDC Use Code Description (RDU: Residential Dwelling Unit as defined in SDC Methodology Appendix A.) 1F Single-Family / Duplex Housing $537.03 per RDU+ (Sq Ft Living Area x $0.1301) 1X Mixed Use with Residential $537.03 per RDU + (Sq Ft Living Area x $0.1301) 11 Multi-Family Housing $537.03 per RDU + (Sq Ft Living Area x $0.1301) 12 A, B, & C Elderly Housing Attach, Detach, & Group/Retirement Home $537.03 per RDU + (Sq Ft Living Area x $0.1301) 13 Residential Hotel $537.03 per RDU + (Sq Ft Living Area x $0.1301) 14 Mobile Home Park $537.03 per RDU + (Sq Ft Living Area x $0.1301) Eugene Local WW SDC Use Code Description (per Plumbing Fixture Unit) 15 Hotels, Motels, Lodging $75.28 21 Beverage/Food Mfg $162.08 24 Wood Products $195.01 2X Light Mfg./Printing $230.36 3X Manufacturing $238.61 4X Transportation & Utilities $74.13 41 Fire Station $31.53 51 Wholesale Trade $86.96 54 Retail Trade / Grocery $222.84 55 Retail Trade Automotive $31.86 59 Retail Trade Other $162.37 5A Restaurant - Fast Food $103.51 5B Restaurant - Low to Med Turnover $254.16 5C Restaurant - Higher Turnover $91.34 5D Drinking Establishments $223.69 5E Take/Bake & Pick Up/Delivery Establishments $107.77 5X Retail Trade / Clothing & Dry Goods $51.38 61 Financial Offices / Banks $69.13 62 Other Services $116.00 63 Rental/Storage Services $26.39 Exhibit A to Administrative Order No. 58-24-09-F Page 2 of 5 64 Automotive & Other Repair Services $65.79 65 Medical Services $116.97 66 Construction Trade Services $55.70 67 Government Services, Office/Business Parks Based on Specific Use of Development 68 Education / Cultural $63.72 69 Churches/Clubs/Organizations $63.88 6A1 Laundry Services (Linen, Uniform) $2,192.79 6A2 Laundry, Self-Service $1,219.10 6A3 Dry Cleaning Service (with or w/out laundry services) $147.68 6B Car Wash $1,076.30 6X Professional/Real Estate/Insurance $275.69 7X Entertainment, Recreation & Sports $359.74 82 Veterinarian Service $100.86 Regional (MWMC) Wastewater System** Eugene Wastewater Use Code Type of Establishment Flow Estimation Unit (FEU) (per FEU) 4X TRUCK TERMINAL TGSF $1,127.53 63 MINI WAREHOUSE TGSF $338.26 4X UTILITIES TGSF $1,127.53 1X OTHER RESIDENTIAL (SFD W/OTHER USES) DU $1,973.18 11 OTHER RESIDENTIAL - MULTI FAMILY DU $1,691.29 13 OTHER RESIDENTIAL - RESIDENTIAL HOTEL/MOTEL TGSF $2,255.06 14 OTHER RESIDENTIAL - MOBILE HOME PARK DU $1,691.29 11 OTHER RESIDENTIAL - SMALL HOME < = 800 SQ FT DU $1,691.29 1F SFD / DUPLEX DU $1,973.18 15 MOTEL / HOTEL TGSF $3,175.99 7X PUBLIC PARK TGSF $1,804.05 7X MULTIPURPOSE RECREATION FACILITY (Indoor) TGSF $1,804.05 7X THEATER TGSF $1,804.05 7X OUTDOOR ATHLETIC COMPLEX TGSF $1,804.05 7X TENNIS COURT TGSF $1,804.05 7X RACQUET CLUB TGSF $1,804.05 7X HEALTH CLUB TGSF $1,804.05 7X BOWLING ALLEY TGSF $1,804.05 7X RECREATIONAL CENTER TGSF $1,804.05 3X INDUSTRIAL PROCESS LOW STRENGTH TGALEF $11,275.30 3X INDUSTRIAL PROCESS MEDIUM STRENGTH TGALEF $15,879.97 3X INDUSTRIAL PROCESS HIGH STRENGTH TGALEF $22,019.52 3X INDUSTRIAL PROCESS VERY HIGH STRENGTH TGALEF $28,159.08 Exhibit A to Administrative Order No. 58-24-09-F Page 3 of 5 3X INDUSTRIAL PROCESS SUPER HIGH STRENGTH TGALEF $34,298.64 68 ELEMENTARY SCHOOL TGSF $563.76 68 MIDDLE SCHOOL TGSF $563.76 68 HIGH SCHOOL TGSF $563.76 68 COMMUNITY COLLEGE TGSF $563.76 68 UNIVERSITY TGSF $563.76 69 CHURCH TGSF $563.76 68 DAY CARE CENTER TGSF $563.76 68 LIBRARY TGSF $563.76 69 FRATERNAL ORGANIZATION TGSF $563.76 54 SERVICE STATION / MARKET TGSF $2,858.39 65 HOSPITAL TGSF $2,381.99 65 NURSING HOME TGSF $1,691.29 65 CLINIC, MEDICAL OFFICE TGSF $1,691.29 5A FAST FOOD RESTAURANT TGSF $14,079.54 82 VETERINARIAN SERVICES TGSF $2,255.06 67 OFFICE PARK TGSF $1,127.53 67 BUSINESS PARK TGSF $1,127.53 67 GOVERNMENT BUILDING TGSF $1,127.53 67 US POST OFFICE TGSF $1,127.53 59 RETAIL TGSF $563.76 5B QUALITY RESTAURANT TGSF $14,079.54 5C HIGH TURNOVER RESTAURANT TGSF $14,079.54 EATING PLACE WITH MINIMAL FOOD PREPARATION^^^ TGSF $3,382.59 5D DRINKING PLACE WITH MINIMAL FOOD PREPARATION^^^^ TGSF $3,833.60 DRINKING PLACE WITH RESTAURANT LIKE FOOD PREPARATION TGSF $14,079.54 5D DRINKING PLACE TGSF $3,833.60 64 AUTO CARE TGSF $635.20 55 NEW CAR SALES TGSF $563.76 6B CAR WASH TGSF $5,637.65 55 TIRE STORE TGSF $563.76 54 SUPERMARKET TGSF $3,963.51 54 CONVENIENCE MARKET TGSF $2,029.55 5X DISCOUNT MARKET TGSF $338.26 5X FURNITURE STORE TGSF $338.26 7X VIDEO ARCADE TGSF $1,804.05 61 FINANCIAL INSTITUTION TGSF $1,240.28 12B ELDERLY HOUSING - DETACHED TGSF $1,127.53 12A ELDERLY HOUSING - ATTACHED TGSF $1,127.53 12C CONGREGATE ELDERLY CARE FACILITY TGSF $1,127.53 Exhibit A to Administrative Order No. 58-24-09-F Page 4 of 5 21 HEAVY INDUSTRY/INDUSTRIAL^^ TGSF $563.76 2X HEAVY INDUSTRY/INDUSTRIAL^^ TGSF $563.76 24 HEAVY INDUSTRY/INDUSTRIAL^^ TGSF $563.76 3X HEAVY INDUSTRY/INDUSTRIAL^^ TGSF $563.76 3X HEAVY INDUSTRY/INDUSTRIAL TGSF $563.76 6X GENERAL OFFICE BLDG TGSF $1,127.53 51 WHOLESALE TRADE TGSF $563.76 5X CLOTHING / DRYGOODS / HOUSEWARES TGSF $338.26 6A LAUNDRY TGSF $1,127.53 62 OTHER SERVICES TGSF $1,127.53 66 CONSTRUCTION TRADE TGSF $1,127.53 68 OTHER EDUCATIONAL/CULTURAL TGSF $563.76 7X OTHER ENTERTAINMENT TGSF $1,804.05 Varies SHOPPING CENTER TGSF $1,127.53 ABBREVIATIONS TGSF - THOUSAND GROSS SQUARE FEET DU - DWELLING UNIT TGALEF - THOUSAND GALLONS ESTIMATED FLOW NOTES ^^Process flow is in addition to other flow ^^^Minimal food preparation - food is assembled from prepackaged food products and cooking, other than warming, is not required ^^^^Includes coffee houses and juice bars where appropriate Stormwater System* General System Capacity Small Residential (building footprint ≤ 1,000 sq. ft.) $481.44 Medium Residential (building footprint > 1,000 sq.ft. and < 3,000 sq.ft.) $775.64 Small Duplex (unit building footprints ≤ 1,000 sq. ft.) $935.25 Medium Duplex (unit building footprints > 1,000 sq. ft.) $1,551.29 Manufactured Home Park Per Space (assumes 1,684 sq. ft. per space) $450.41 Plus, Per sq. ft. actual impervious surface area, addt’l common areas $0.268 All Other Development - Per sq. ft. actual impervious surface area and/or equivalent $0.268 LID System Capacity Small Residential (building footprint ≤ 1,000 sq. ft.) $4,308.75 Medium Residential (building footprint > 1,000 sq.ft. and < 3,000 sq.ft.) $6,941.87 Small Duplex (unit building footprints ≤ 1,000 sq. ft.) $8,617.51 Medium Duplex (unit building footprints > 1,000 sq. ft.) $13,890.52 Manufactured Home Park Per Space (assumes 1,684 sq. ft. per space) $3,915.58 Exhibit A to Administrative Order No. 58-24-09-F Page 5 of 5 Plus, Per sq. ft. actual impervious surface area, addt’l common areas $2.394 All Other Development - Per sq. ft. actual impervious surface area and/or equivalent $2.394 Parks and Recreation System*** Single-Family Residential Living Area Category 800 sq. ft. or less $3,471.83 801 sq. ft. - 1500 sq. ft. $5,422.24 1501 sq. ft. - 3000 sq. ft $7,505.34 Over 3000 sq. ft. $9,336.78 Accessory Dwelling Unit $3,471.83 Mobile Home $4,875.44 Multifamily Residential Category 0 Bedrooms $3,019.97 1 Bedroom $3,324.27 2+ Bedrooms within ¼ mile of FTN route $3,858.49 2+ Bedrooms within ½ mile of FTN route $4,409.85 2+ Bedrooms all other areas of City $4,961.24 Non-Residential Category A (Hotel/motel) Unit = rooms $2,803.77 B (Office, Eating & Dining) $1,829.16 C (Industrial) $1,127.93 D (Retail, General Service) $661.19 E (Warehousing) $268.82 *The inflationary adjustment for Transportation, Local Wastewater, and Stormwater SDCs is +2.70% **The inflationary adjustment for Regional Wastewater SDCs ranges from +2.148% to + 2.421%, depending upon assigned strength categories ***The inflationary adjustment for Parks and Recreation SDCs is +4.83% Exhibit B to Administrative Order No. 58-24-09-F Findings – Page 1 City Manager’s Findings Inflationary Adjustments To System Development Charges For Transportation System, Local Wastewater System, Regional Wastewater System, Stormwater System, And Parks And Recreation System Development System Pursuant to Section 2.020(2) of the Eugene Code, 1971, the City Manager has considered the following factors in determining that a correction is needed to properly carry out the System Development Charge Inflationary Adjustments. (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. Administrative Order No. 58-23-22-F adopted FY24 SDC fees effective July 1, 2023. A sample of the proposed adjustment to SDC rates compared to the prior fees charged by the City for Single Family Residential as follows: SDC System Effective Rates (AO No. 58-23-22-F) Proposed Rate Transportation (Cost per trip) $3,593.99 $3,691.03 Local Wastewater (Residential dwelling unit base fee) $522.91 $537.03 Regional MWMC Wastewater (SFD/Duplex: Low Strength) $1,931.68 $1,973.18 Stormwater (Medium Residential > 1,000 sq. ft and < 3,000 sq. ft.) $755.25 $775.64 Parks and Recreation (SFD 801-1500 sq. ft) $5,172.41 $5,422.24 Exhibit B to Administrative Order No. 58-24-09-F Findings – Page 2 (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. (d) The amounts charged by other comparable providers. The City of Eugene SDC fees, as compared to other similarly sized communities, remain consistent with or relatively low. The data below is a sample of SDC rates: Table d 1. Parks and Recreation SDCs Community Single-Family Rate Comparison FY25 Bend $10,635.00 (1601 – 3000 SF) Hillsboro $7,421.00 Wilsonville $14,000.00 Salem $5,186.00 Eugene $7,505.34 (proposed FY25 rate for Single-Family, 1501-3000 SF) Table d2. Transportation SDCs Community Single-Family Rate Comparison FY25 Bend $9,854.00 (1601-2200 SF) Hillsboro $10,599.00 Wilsonville $16,823.00 Salem $4,655.50 Eugene $3,691.03 (proposed FY25 rate for Cost per trip; One (1) trip per Single Family Dwelling Unit) Note that some of the comparable provider rates have yet to be adjusted for inflation (available data is based on the respective city’s effective rates). Note also that only comparisons for Parks and Transportation SDCs are provided. There is more variability between communities for wastewater and stormwater, depending on the State and Federal permits applicable to a community and the organization of the applicable system. (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. Specifically, the City has adopted project plans for each system that uses SDC revenue, detailing the revenue needs.