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NOTICE OF INTENDED CHANGE TO SYSTEMS DEVELOPMENT CHARGE METHODOLOGY <br />Notice is hereby given that, pursuant to the provisions of 7.710 and 2.020 of the Eugene Code, 1971, the City Manager of the City of Eugene intends to <br />adopt proposed changes to the methodology used to calculate, collect, and credit Systems Development Charges (SDCs) for all new development (as <br />.defined in section 7.010 0# the Eugene Code). <br />This notice of proposed changes is in conformance with section 2.020 of the Eugene Code which authorizes the City Manager to determine and set fees <br />and charges to be imposed by the City for services, goods, use of municipal property, licenses, and permits. <br />The City of Eugene currently collects Systems Development Charges where new development occurs in the City and uses this revenue to fund a portion <br />of the construction of new infrastructure -sanitary and storm sewers, streets, and parks facilities. SDCs have been collected by the City since 1978. <br />The SDC methodology and rate structure were substantially revised by ordinance 19773, enacted May 13, 1991, effective July 1, 1991. At that time, the <br />ordinance gave the City Manager the authority to establish and modify the methodology pursuant to the procedures in section 2.020 of the Eugene Code. <br />The proposed changes were developed with the citizen committee which guided the 1991 revision of SDCs. If adopted, the proposed changes will take <br />effect on March 1, 1993. The key proposed changes are summarized below: <br />Administrative Rate <br />- Increase the percentage from 5% to 7.25% of the total (gross) SDC. <br />- Clarify the existing policy of computing the administrative charge against the gross SDC, prior to the deduction of any credits. <br />2. Automatic Adjustment to the SDC <br />- The original 1991 methodology figures have been inflated by 2.8% to reflect the increase in construction costs. <br />- Establish an annual automatic adjustment to the SDC rate structure to reflect construction cost changes, based on the Engineering <br />News-Record (ENR) Construction Cost Index. <br />- The Regional FAcilities Equalization Charge, established in cooperation with the Metropolitan Wastewater Management Commission <br />(MWMC) will be adjusted through the administrative rate setting process established in Section 2.020 of the Eugene City Code and <br />will not require an amendment to the SDC Methodology. <br />3. Transportation SDC <br />- Modify the standard calculation of the Transportation SDC to be based upon a simplified, consolidated trip rate table which is not <br />spec'rfically tied to the Trip Generation Manual of the Institute of Transportation Engineers (the ITE Manual). <br />- Establish a mechanism for an alternate calculation of the Transportation SDC by means of an independent trip generation study, <br />subject to approval by the City's Traffic Engineer. <br />4. Credits <br />- Eliminate the time limit on use of credits for qualified public improvements. <br />- Limit credit for demolished development to within five years of demolition. <br />5. Storm SDC <br />Establish a two-tiered rate for the Storm SDC for single family homes, based upon the footprint of the building. Single family homes with a <br />building footprint under 3,000 square feet would pay the standard cost per dwelling unit. Single family homes with a building footprint of 3,000 <br />square feet or over would pay 1.5 times the standard cost per dwelling unft. No change is proposed to the existing practice of charging duplex- <br />es (regardless of building footprint) for two standard dwelling units. <br />The complete methodology document and appendices contain detailed analyses of each system's charges as well as the application of those charges <br />to different types of development. The complete draft methodology and supporting documents, as well as the proceedings of the citizen commiee are <br />available for public review at four locations: the Council Library at the City Manager's Office, the City Permit and Information Center, the Eugene Public <br />Library, and the Public Works Building. <br />Based upon the above information, the City Manager finds: <br />1. The adoption of the proposed changes is in the public interest and in conformity with adopted City policies and ordinances and with Oregon <br />statutes. <br />2. The proposed fees meet the guidelines established in Section 2.020 and 7.710 of the Eugene Code and should be implemented. <br />Persons desiring to comment on the proposed changes for SDCs shall submit written comments to the City Manager at the address shown below, within <br />15 days of the first publication of this notice. The City Manager will establish the proposed changes by administrative order after review of comments <br />received during the comment period. <br />Dated the 25th day of January, 1993 <br />,!' '`4icheal D. Gleason <br />~ _ :5ity Manager <br />777 Pearl Street <br />Eugene, OR 97401 <br />