Admin Order 58-97-02-F-2 - Laserfiche WebLink

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Public Works, Engineering City of Eugene .858 Pearl Street Eugene, OR 97401 (541) 682-6823 What Are Systems.Development Charge (SDC) Fees? Systems Development Charge (SDC) fees have been co'. by the City of Eugene since 1978, and similar types o: have been charged by the City as far backas 1945. SDC fees are collected when new development or ex- pansion occurs in the City. The fees are used to fund a portion of the construction of infrastructure such as wastewater and stormwater drainage sys- tems, streets, and parks facilities. SDC funds are used to-help the City provide for the increased ca- .:pacify needed to serve new development, main- fainhealth and safety standards, and rernup a por- m of the community's investment in the infrastruc- ~ ' pure that is already in place. Examples of projects fi through SDCs include: wastewater pump stations and lines; off street bike paths; arterial-and collector streE~ ~.,.~ struction or capacity. enhancement; and acquisition and de- velopment ofpark land. with a change of use for either 3,000 s.f. of floor space What IS Changing? - or when 50% of the floor space changes use. The pro- posed methodology would lower the 3,000 s. f. thresh- The City of Eugene periodically reviews its Systems Develop- old to 1,000 s.f.. mentCharge Methodologyprogram to assess its effectiveness .Where SDCs are reduced due #o impact. mitigation and to assure the fees represent the City's cost of construction. on site, the improvement must be permanent, rather 'Staff completed a review during 1996. This was the first com- than having a ten year life span. prehensive look at the program since 1992. This review. was not'intended to modify underlying Council-adopted policy a fll no longer be eli- • t e . regarding SDCs, but to ensure that the methodology and fee ble for SDC cr edi R tention ff gi cilities, such as dry structure continue to effectively support existing policy. Con `sells, will continue to be eligible. ' elusions from this review include the following. • Annual updates to account for changes in construe- lion cost will be based on the best available informs- 1) The cost of construction locally has increased faster tiori, rather than exclusively on the Engineering News- than the national average upon which annual updates Record Construction Cost Index. to the SDC rates have been based. This means that the • A cap of $30,000 on the administrative charge col- ratesmust increase in order to recover sufficient funds lected with any one permit will be established. #o construct SDC-eligible capital projects. 4) With an increase in rates, the percentage multiplier 2) Overall, the methodology document continues to be used to calculate the administrative charge will drop from an effective tool for administering the SDC program: The 7.25% will drop to 5%. format of the document is being revised to make iteasier - to interpret and update. 5) -Based on a resolution passed by .the Metropolitan 3) Several practices are proposed for revision, including: Wastewater Management Commission, the method for calculating regional wastewater SDCs-will be modified • Currently, a Transportation SDC may be :collected to include a new "large volume user' classification.