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Home My WebLink AboutItem 3C: Approval of Parks SDC Cost Adjustment ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Adoption of Resolution 5031 Adopting Inflationary Adjustments to Systems Development Charges for Parks System and Amending Resolution No. 4900 Meeting Date: May 9, 2011 Agenda Item Number: 3C Department: Public Works Staff Contact: Fred McVey www.eugene-or.gov Contact Telephone Number: 541-682-5216 ISSUE STATEMENT The City Council is asked to approve a resolution adopting a decrease 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. The current proposal reflects a one-year adjustment period. Section 2.4 of the SDC Methodologies requires that revisions to fees by more than five percent shall be established by resolution of the City Council. BACKGROUND Council Action History Effective May 7, 2007, the council adopted the System Development Charges (SDC) Methodologies by Resolution No. 4900 which updated the park SDC methodology and rates, including provisions for periodic indexed (inflationary) adjustments. Resolution No. 4900 was most recently amended by the council through Resolution No. 4998 adopting inflationary adjustments to local wastewater, stormwater, transportation and parks SDC rates effective April 1, 2010. In addition, inflationary adjustments of SDC rates for the local wastewater, stormwater, and transportation systems were recently adopted by Administrative Order 58-11-01-F, effective June 1, 2011. 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) as with other local systems, the Engineering News Record Construction Cost Index (ENR CCI) is used to adjust park development costs; and 2) the Lane County Assessment & Taxation Office’s (LCA&T) published Certified Ratio Study (formerly known as the Sales Ratio Report) is used to adjust park land acquisition \\Cesrv500\cc support\CMO\2011 Council Agendas\M110509\S1105093C.doc costs. Use of applicable adjustment factors from the published 2010 Certified Ratio Study reflects an average 10 percent decrease in costs of Eugene-area vacant residential and recreational land over a prior 12-month adjustment period. The published Certified Ratio Study reflects the previous calendar year’s sales data, in this case sales in calendar year 2009. The combined effect of applying these two indices to the parks SDC is that rates for residential development types decrease by approximately 4.5 percent while rates for nonresidential development types decrease approximately 7.2 percent. The difference in parks SDC rate adjustments between residential and nonresidential categories is related to the different effect of the inflationary adjustments on the park bond and property tax SDC credit calculation versus the gross (pre-credit) SDC calculation. The overall effect of the proposed rate adjustments, in conjunction with the inflationary cost adjustments (+3.5 percent) for the local wastewater, stormwater, and transportation systems adopted via Administrative Order 58-11-01-F (also effective June 1), is an approximate one percent decrease in total SDCs for a typical new single-family residence, from a current total of $8,961 to a proposed total of $8,873. Nonresidential development types would typically experience slight increases in total SDCs, typically ranging from approximately one percent to two percent over current totals. Council Goals/Action Priorities This agenda item relates to one of the council’s goals: Fair, Stable and Adequate Financial Resources. Timing Local SDC rates were last updated in April 2010, reflecting ENR CCI adjustments through December 2009 and LCA&T Sales Ratio data through December 2008. The proposed adjustments to rates based on the ENR CCI through December 2010, and LCA&T Sales Ratio data through December 2009, provides for timely updates 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 April 22, 2011, and posted, along with the draft resolution and exhibit, at Eugene City Hall and the Public Works Engineering lobby. This information has also been made available at the City’s website at www.eugene-or.gov/SDC. The adjusted rates are proposed to go into effect on June 1, 2011. RELATED CITY POLICIES The council has adopted by resolution Growth Management Policy #14 which provides that development shall be required to pay the full cost of extending infrastructure and services. The Eugene Code, Chapter 7, prescribes the process for development, adoption and administration of SDCs, providing for adoption of methodologies related to SDCs. 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. \\Cesrv500\cc support\CMO\2011 Council Agendas\M110509\S1105093C.doc COUNCIL OPTIONS 1. Adopt the resolution providing an inflationary adjustment of park SDC rates. 2. Take no action on the resolution. 3. Direct the City Manager to prepare other adjustments to park SDC rates. CITY MANAGER’S RECOMMENDATION The City Manager recommends adoption of the resolution providing an inflationary adjustment of park SDC rates. SUGGESTED MOTION Move to adopt Resolution 5031 providing an inflationary adjustment of Systems Development Charges for parks systems; amending Resolution No. 4900. ATTACHMENTS A. Proposed Resolution and Exhibits FOR MORE INFORMATION Staff Contact: Fred McVey Telephone: 541-682-5216 Staff E-Mail: fred.mcvey@ci.eugene.or.us \\Cesrv500\cc support\CMO\2011 Council Agendas\M110509\S1105093C.doc ATTACHMENT A RESOLUTION NO. XXXX______ A RESOLUTION ADOPTING INFLATIONARY ADJUSTMENTS TO SYSTEMS DEVELOPMENT CHARGES FOR PARKS SYSTEM AND AMENDING RESOLUTION NO. 4900. The City Council of the City of Eugene finds as follows: A. The System Development Charge (SDC) Methodologies were adopted by Resolution No. 4900 effective May 7, 2007. B. The SDC Methodologies adopted by Resolution No. 4900 have subsequently been amended by Resolution Nos. 4929, 4977, 4991 and 4998. In addition, inflationary adjustments to SDCs have been adopted for: (1) the Regional Wastewater System by Administrative Order No. 58-07-08-F, by Resolution No. 4943, and by Administrative Order No. 58-09-08-F; (2) Local Wastewater System, Stormwater System, and Transportation System by Resolution No. 4998, and, effective June 1, 2011, by Administrative Order No. 58-11-01-F; and (3) Parks System by Resolution No. 4998. C. Based on the park development/renovation cost adjustment using the Engineering News-Record 20-City national average Construction Cost Index and the park land acquisition cost adjustment using the Lane County Assessment & Taxation office’s published 2010 Sales Ratio Report, it is necessary to adjust the Parks System SDCs by implementing a -4.5% inflationary adjustment to the Parks System SDC for residential development, and an average - 7.2% inflationary adjustment to the Parks System SDC for nonresidential development. D. Section 2.4 of the SDC Methodologies requires that revisions to fees by more than five percent within any 12-month period shall be established by resolution of the City Council. E. These inflationary adjustments to the SDCs are in conformity with applicable state law, authorized by EC 7.710(5) and Sections 2.1 and 2.4 of the Methodologies, and should be implemented effective June 1, 2011. 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 Systems Development Charges for the Parks System are amended by implementing a 4.5% decrease to the Parks System SDC for residential development, and an average 7.2% decrease to the Parks System SDC for nonresidential development as set forth in Exhibit A attached to this Resolution. Resolution – Page 1 of 2 Section 2. The City Recorder is requested to append a copy of this Resolution, including exhibit, to Resolution No. 4900. Section 3 . This Resolution shall become effective on June 1, 2011. The foregoing Resolution adopted the _____ day of May, 2011. ___________________________________ Deputy City Recorder Resolution – Page 2 of 2 ExhibitA Resolution No. _____ SDC Methodology Pages Revised Parks 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 üïôééìòëï Ý±¬ °»® ²»© ®»·¼»²¬·¿´ «²·¬ ø»ò¹òô Ì±¬¿´ ¬±®³©¿¬»® «²·¬ ½±¬ °»® ¯òº¬ò Ò»¬ Î»·¼»²¬·¿´ ½±¬ °»® Ü©»´´·²¹ ·²¹´»óº¿³·´§ô ³±¾·´» ¸±³» °¿®µô ±º ·³°»®ª·±« «®º¿½» ß®»¿ ã Ë²·¬æ ¼«°´»¨»ô ¿°¿®¬³»²¬÷ ã ¿ ¾¿» üðòïçîò Ý¸¿®¹» ¿®» ¾¿»¼ ±² Í·²¹´» Ú¿³·´§ ã üíôéëéòððå ®¿¬» ±º üíèéòéî °´« üðòðçìð °»® «»ò ïóî Ú¿³·´§ ¼»ª»´±°³»²¬ Ü«°´»¨ñÌØñÓØñßÜË ã üíôðìëòðð ¯«¿®» º±±¬ ±º ´·ª·²¹ ¿®»¿ò «²¼»® íôððð ¯òº¬ò ¸¿ª» ¬·»®»¼ ®¿¬» Ó«´¬·º¿³·´§ ã üîôíéêòðð Î»·¼»²¬·¿´ ¿¼¼·¬·±² ©·´´ ¾» ¾¿»¼ ±² »¬ò ·³°ò «®º¿½» ¿®»¿ò ïóÒ±²®»·¼»²¬·¿´æ ½¸¿®¹»¼ üðòðçìð °»® ¯«¿®» º±±¬ ±º î Ú¿³·´§ ±ª»® íôððð ¯òº¬òò ¿²¼ Ý´¿ ß ã üïôìçéòðð °»® ®±±³å ·²½®»¿»¼ ´·ª·²¹ ¿®»¿ò Ó«´¬·óÚ¿³·´§ ú Ò±²®»·¼»²¬·¿´ ¿®» Ý´¿ Þ ã üïôðððòðð °»® ÌÙÍÚå Ò±²®»·¼»²¬·¿´ «» ã üîòçíéí °»® ¾¿»¼ ±² ¿½¬«¿´ ·³°ò «®º¿½» ¿®»¿ò Ý´¿ Ý ã üêïíòðð °»® ÌÙÍÚå ¹¿´´±² ±º ¼¿·´§ º´±©ñ¼·½¸¿®¹»òÝ¸¿®¹» º±® Óº¹ò Ø±³» Ð¿®µ ¿®» Ý´¿ Ü ã üíêìòðð °»® ÌÙÍÚå ¾¿»¼ ±² »¬ò ·³°ò «®º¿½» ¿®»¿ Ý´¿ Û ã üïìéòðð °»® ÌÙÍÚò °»® °¿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¿®¼ò ¼»¬»®³·²»¼ °»® Ñ®» ¹±² ¿¼± °¬»¼ Ð¿®µô Î»½®»¿¬·±²ô ú Ñ °»² Í°¿½» ¼»·¹²¬¿²¼¿®¼ò¼»¬»®³·²»¼°»®Ñ®»¹±²¿¼±°¬»¼Ð¿®µôÎ»½®»¿¬·±²ôúÑ°»²Í°¿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¬ ¬§°»ò º±±¬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 of Eugene SDC Methodologies Page 5 % 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 Residential Cost Nonresidential Cost Cost BasisShare ($/New Person)Share($/New Equiv. Pop.) Improvement Fee New Parks and Open Space $10,880,962$9,096,485$208$1,784,478$208 Neighborhood Parks Community Parks $15,432,428$12,901,510$294$2,530,918$294 $845,377$706,735$16$138,642$16 Urban Plaza Linear Parks$906,615$757,930$17$148,685$17 Natural Area Parks$9,767,161$8,165,347$186$1,601,814$186 Metropolitan Parks$1,843,650$1,541,291$35$302,359$35 Special Use Facilities$72,781$60,845$1$11,936$1 Sub-total$39,748,974$33,230,142$758$6,518,832$758 $24,690,346$20,641,129$471$4,049,217$471 New Recreation Facilities $5,325,233$4,451,895$102$873,338$102 Improving Existing Facilities Access Improvements$1,198,256$1,001,742$23$196,514$23 $70,962,809$59,324,908$1,354$11,637,901$1,354 Subtotal IMPROVEMENT Reimbursement Fee Existing Parks and Facilities $6,297,487$5,264,699$120$1,032,788$120 Neighborhood Parks Community Parks$0$0$0$0$0 $0$0$0$0$0 Urban Plaza Linear Parks$2,143,890$1,792,292$41$351,598$41 $85,119$71,159$2$13,959$2 Natural Area Parks Metropolitan Parks$13,322,412$11,137,536$254$2,184,876$254 $87,740$73,350$2$14,389$2 Special Use Facilities $21,936,647$18,339,037$419$3,597,610$419 Subtotal REIMBURSEMENT ,,,,,,,, $92899456$77663945$1772$15235511$1772 TotalSYSTEM TotalSYSTEM$92899456$77663945$1772$15235511$1772 Less Credit $349$997 $1,423$775 Net Cost per Unit Table 17 SDC Schedule Persons or EP Gross SDC Net SDC per Category Credit per Unit per Unitper UnitUnit Residential per DU $922$3,757 Sinle-famil2.64$4679 gy, $748$3,045 Dulex/Town Hm/Mobile 2.14$3793 p, $583$2,376 Multifamil/Condos 1.67$2960 y, Nonresidential per Room $1,924$1,497 A 1.93 $3,421 er TGSF p $1,286$1,000 B 1.29 $2286 , $788$613 C 0.79 $1400 , $469$364 D 0.47 $833 $189$147 E 0.19 $337 EP - Equivalent Population; TGSF = Thousand Gross Square Feet; DU = Dwelling Unit 2.0 Adopted SDC Fee Schedule: Current Rates 2.1 Transportation System: Cost per trip $1,774.51 2.2 Local Wastewater System: Residential dwelling unit base fee $387.72 Residential dwelling unit total living area multiplication factor $0.0940 Non-Residential rate per gal/day per land use type per PFU Varies 2.3 Regional (MWMC)Wastewater System: Residential dwelling unit $1,458.17 Non-Residential rate per gal/day per land use type per FEU Varies 2.4 Stormwater System: Small Residential $345.60 (building footprint < 1,000 sq. ft.) Medium Residential $556.80 (building footprint > 1,000 sq.ft. and < 3,000 sq. ft.) Small Duplex $691.20 (unit building footprints < 1,000 sq. ft.) Medium Duplex $1,113.60 (unit building footprints >1,000 sq. ft. and < 3,000 sq. ft.) Manufactured Home Park Per space $323.33 (assumes 1,684 sq. ft. per space) plus Per sq. ft. actual impervious surface area, addt’l common areas $0.192 All Other Development Per sq.ft. actual impervious surface area and/or equivalent $0.192 2.5 Parks System: Residential (per Dwelling Unit) Single Family $3,757.00 Duplex/Town Home/Mobile Home/Accessory DU $3,045.00 Multifamily $2,376.00 Nonresidential (unit varies – see Table 19 for Class description) Class A (per Room) $1,497.00 Class B (per thousand gross square feet or TGSF) $1,000.00 Class C (per TGSF) $613.00 Class D (per TGSF) $364.00 Class E (per TGSF) $147.00 2.6 Administration Fees: City of Eugene if based on percentage 9.0% City of Eugene if based on flat rate $80.00 2.7 Appeal Fee: City of Eugene per SDC appeal $100.00 City of Eugene SDC Methodologies Fee Schedule & Formulas, Page F6 -