HomeMy WebLinkAboutResolution 00-61 12/04/2000
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CITY OF SPRINGFIELD
RESOLUTION NO. 00-61
A RESOLUTION OF THE CITY OF SPRINGFIELD COMMON COUNCIL MODIFYING
AND ADOPTING THE METHODOLOGY FOR THE SYSTEMS DEVELOPMENT
CHARGES AS SET FORTH IN CITY OF SPRINGFIELD MUNICIPAL CODE, SECTION
3.408.
WHEREAS, ORS 223.304 establishes criteria for the methodology to be used in setting rates for
system development charges; and,
WHEREAS, the City of Springfield recognizes the need of having new development pay an
equitable share of the costs of existing and planned capital improvements related to the impacts
such new development has on the City's infrastructure; and,
WHEREAS, other capital improvement funding is not available in adequate amounts to provide
for such needed improvements; and,
WHEREAS, the attached methodology provides an equitable and fair system of funding a portion
of the capital improvements related to new development;
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Springfield
that the City Manager or the City Manager's designee is authorized to use the attached
methodology in administering Sections 3.400 through 3.420 of the City Code and calculating the
systems development charges.
Adopted by the Common Council ofthe City of Springfield this ~ day of December, 2000.
Adopted by a vote of 5 fq,r and 0 against.
REVIEWED & APPROVED
As.. TO FORM
_~eriCC'\~ 0 LG.~~
DATE: \ \ ''2,'- \2uc:i'::l
OFFICE OF CITY ATTORNEY
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City of Springfield
PROPOSED
System Development Charge
Methodology .
Stormwater
Local Wastewater"
Transportation
Prepared By
City of Springfield
Public Warks Department
225 Fifth Street
Springfield, OR 97477
November 3, 2000
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OVERVIEW OF SYSTEM DEVELOPMENT CHARGES
One of the principal sources of revenue for financing new public facilities or expansions to
existing facilities is a one-time charge imposed at the time of connection to the system. This
charge is generally referred to as.a system development charge (SDC), impact fee, or capital
contribution fee. These charges are designed to pay for, or recover, all, or a portion, of the
capital investment made by a local government to provide sufficient capacity in public
infrastructure to serve new users. System development charges Cire typically collected when
new users or developers connect to a utility system, when new development permits are
issued, or when users change the usage of their property.
Oregon SDC Legislation
In Oregon, the development and implementation of SDCs is regulated by ORS 223.297-314.
This legislation, which became effective on July 1,1991, authorizes local governments to
assess SDCs for the following types of capital improvements:
· Water supply, treatment, and distribution
· Wastewater collection, transmission, treatment, and disposal
· Drainage and flood control (stormwater)
· Transportation
. Parks and recreation
The City of Springfield has assessed and will continue to assess SDC charges for three of
these systems (local wastewater collection and b:ansmission, stormwater, and
transportation) in compliance with the 1991.1egislation. The City also currently collects SDC
fees fot Willamalane Park District and the Metropolitan Wastewater Management
Commission for parks and regional wastewater conveyance and treatment facilities,
respectively.
. The legislation provides guidelines regarding the calculation of SDCs, accounting
requirements to track SDC revenues, and the adoption of administrative review procedures.
SDC Components
An SDC may be a reimbursement fee, an improvement fee, or a combination of the two.
Reimbursement Fee
The reimbursement fee is based on the costs of capital improvements already constructed or
under construction. The legislation requires that the reimbursement fee be established by an
ordinance or resolution that sets forth the methodology used to calculate the charge. This
methodology must consider the cost of existing facilities, prior contributions by existing
users, the value of unused capacity, ratemaking principles employed to finance the capital
improvements, and other relevant factors. The objective of the methodology must be that
future system users contribute no more than an equitable share of the capital costs of
existing facilities.
Improvement Fee
. The improvement fee is designed to recover the costs of planned capital expansions. The
improvement fee methodology must also be specified in an ordinance or resolution and
must consider the costs of projected capital improvements needed to increase the capacity of
CITY OF SPRINGFIELD SDC METHODOLOGY
the system. The legislation further requires that a credit be provided for the construction of
. /1 qualified public improvements." Qualified public improvements are improvements that
axe required as a condition of development approval, identified in the' system's capital
improvement program, and either (1) not located on or contiguous to the property being
developed, or (2) located in whole or in part on or ~ontiguous to property that is the subject
of development approval imd required to be built larger or with greater capacity than is
necessalY for the particular development project to which the improvement fee is related.
Revenues generated through the improvement fees are dedicated to capacity-increasing
capital improvements or the repayment of debt on such improvements. An increase in
capacity is established if an improvement increases the level of service provided by existing
facilities or provides new facilities. The portion of such improvements funded by
improvement fees must be related to cunent or projected development.
Combined Fee.
The combined fee is simply the sum of the reimbursement and improvement fee.
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Other Provisions
Other provisions of the legislation require:
· Development of a capital improvement program (ClP) or comparable plan that lists the
improvements that may be funded with improvement fee revenues and the estimated
timing and cost for each improvement.
· Deposit of SDC revenues into dedicated accounts and annual accounting of revenues
and expenditures.
· Creation of an administrative appeal procedure whereby a citizen or other interested
party may challenge an expenditure of SDC revenues.
· Preclusion against challenging the SDC methodology after 60 days from enactment of or
revision to the SDC ordinance or resolution.
The provisions of the legislation are invalidated if they are consb:ued to impair the local
government's bond obligations or the ability of the local government to issue new bonds or
other financing.
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SDC UPDATE. PROCESS OBJECTIVES
To assist in the SDC update process, the Springfield City Council created a citizen advisory
committee (CAC) to advise staff and consultants on changes to the methodology, project list
and related policy issues to be addressed dUling the update. The CAC identified the
following key outcomes for the study process:
· Achieves fair, equitable, objective, defensible, and understandable methodology
· Provides adequate revenue for infrastructure related to capacity increases
· Creates incentives for downtown investment and revitalization
· Creates incentives for downtown restaurants and businesses to stay open in the
evenings
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CITY OF SPRINGFIELD SDC METHODOLOGY
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The CAC met between January and October, 2000, and discussed each infrastructure system
in detail, examining the methodology, project list and related policy i,ssues. The following
policy objectives were addressed in the update process:
· Consider a reimbursement component to the SDC .
· Consider whether the transportation SDC should be based on peak traffic and effect on
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In addition, administrative objectives were defined for the update process, including
updating the project list to include Glenwood, utilizing unit costing, and establishing a long
term financing program.
STORMWA TER SDe
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Introduction
The stormwater SDC methodology is based on a level of service approach. The level of
service approach assumes that the cost of capacity to serve new development, i.e. new
impervious areas, will be consistent with the unit cost of the existing stormwater system
capacity which serves existing development. The methodology for determining the
stormwater SDC consists of th~ following four steps:
1. Determine the SDC cost basIs - replacement cost net of assessments
2. Determine.the existing developed area
3. Calculate the SDC unit cost
4. Develop the SDC schedule
Step 1 - Determine the SDC Cost Basis: Replacement Cost Net of Assessments and
Contributions
The City maintains an inventory of stormwater facilities, including conveyance pipes, major
drainage channels, roadside/backyard ditches, storm manholes, catch basins/inlets, and
water quality/detention basins. The inventory contains the number of lineal feet (LF) of
each diameter conveyance pipe, ranging from 4-inches in diameter to 96-inches in diameter.
The inventory also contains the lineal feet of drainage channels and roadside/backyard
ditches, the number of storm manholes and catch basins/inlets, and the volume, in acre-feet,
of water quality/detention basins.
The SDC cost basis is determined by applying replacement unit costs to eac,h component of
the asset inventory. The unit costs are applied to each facility type as follows: $ per lineal
foot of conveyance pipe for each pipe diameter, $ per lineal foot of major d,rainage channel,
$ per lineal foot for roadside/backyard ditches, $ per storm manhole, $ per catch
basin/inlet, and $ per acre-foot of water quality/detention basins.
. Table 1 shows the calculation of the replacement value of the existing stormwater facilities.
The total estimated replacement cost of the stormwater system facilities is $84,619,950.
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. TABLE 1
Estimated Replacement Cost of Stormwater System
Stormwater Pipe System Wide Unit Unit Cost Estimated
Diameter Quantity Replacement Cost
Not Avallable 930 Lineal Feet $70 $65,100
4" 877 Lineal Feet $50 $43,850
6" 7,005 Lineal Feet $50 $350,250
8" 89,900 Lineal Feet $55 $4,944,500
10' 126,882 Lineal Feet $55 $6,978,510
12" 166,769 Lineal Feet $65 $10,839,985
15" 69,046 Lineal Feet $70 $4,833,220
18' 80,044 Lineal Feet $75 $6,003,300
20" 270 Lineal Feet $80 $21,600
21" 19,701 Lineal Feet $80 $1,576,080
24" 72,200 Lineal Feet $85 $6,137,000
27" 14,806 LIneal Feet $90 $1,332,540
30" 34,067 Lineal Feet $100 $3.406,700
33" 2,951 Lineal Feet $110 $324,610
36" 41,111 Lineal Feet $120 $4,933,320
. 42" 32,014 Lineal Feet $135 $4,321,890
48" 20,998 Lineal Feet $145 $3,044,710
50" 1 ,485 Lineal Feet $160 $237,600
54" 7,106 Lineal Feet $160 $1,136,960
60" 8,493 Lineal Feet $170 ' $1.443,810
66" 4,936 Lineal Feet $190 $937,840
72" 3,545 Lineal Feet $210 $744,450
78" 1,011 Lineal Feet $230 $232,530
96" 440 Lineal Feet $300 $132,000
Other System System Wide Unit Unit Cost Estimated
Facilities Quantity Replacement Cost
120" Box Culvert 765 Lineal Feet $650 $497,250
Major Drainage 67,841 Lineal Feet $120 $8,140,920
Channels
Roadside/Backyard 73,601 Lineal Feet '$25 $1,840,025
Ditches
Manholes 2,502 Each $1,500 $3,753,000
Catch Basins/Inlets 5,022 Each $1,200 $6,026,400
Water Quality 2 Each N/A $340,000
Facilities
Total Estimated $84,619,950
. Replacement Cost
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CITY OF SPRINGFIELD SDC METHODOLOGY
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SDCs are designed to recover the costs of general system facilities needed to provide
additional capacity for new development. Assessments fund local improvements providing
special benefits to individual properties, and are therefore deducted ITom the system value
in determining the SDC cost basis. External contributions to the system in the form of
developer contributions and grants are also deducted from the total system value to
determine the cost basis.
The total stormwater capital expenditures since 1990 were reviewed and the funding
sources identified. Stormwater capital improvement funding sources include: monthly
rates, SDCs, assessments, grants, and developer contributions. During this time,
approximately 60.8% of the stormwater capital expenditures were funded through
assessments, grants, and developer contributions. The total estimated replacement cost of
assessments and contributions is $51,448,929. The SDC cost basis, equal to total system
replacement cost net of assessments and contributions is $33,171,021. Table 2 shows the
calculation of the cost basis.
TABLE 2
Stormwater SDC Cost Basis
System Component Replacement Cost Assessments and sec Cost Basis
Contributions (1)
Storm Pipes $64,519,605 $39,227,920 $25,291,685
Major Storm Channels $8,140,920 $4,949,679 $3,191,241
. RoadsidelBackyard $1,840,025 $1,118,735 $721,290
Ditches
Storm Manholes $3,753,000 $2,281,824 $1,471,176
Catch Basins/Inlets $6,026,400 $3,664,051 $2,362,349
Water Quality/Detention $340,000 $206,720 $133,280
Basins
Total $84,619,950 $51,448,929 $33,171,021
1 Based on analysis of capital project funding since 1990 and the value of capital projects since 1990 funded by assessments,
grants, and developer contributions.
Step 2 - Determine the Existing Developed Area
The existing developed impervious area is based on net developed acreage and a runoff
coefficient for residential, commercial, industrial, and governmental land use categories.
The net developed areas for each of the four land use categories was obtained from the L-
COG Geographic Data System. The existing developed impervious surface area is estimated
by multiplying the net developed acreage by the runoff coefficient for each land use type.
Runoff coefficients were previously determined from published standards and are the
figures currently used by the Public Works Deparbnent. The total estimated developed
impervious surface area is 2,806.5 acres. Table 3 shows the calculation of the estimated
devel,oped impervious surface area.
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CITY OF SPRINGFIELD SDC METHODOLOGY
. TABLE 3
Estimated Impervious Surface
land Use Category Net Developed Acres (1) Runoff Coefficient (2) Impervious Surface,
Acres
Residential . 3,273 0.4 1,309.2
Commercial 791 0.9 711.9
Industrial 933 0.45 419.9
Governmental 731 0.5 365.5
Total 5.728 2;806.5
1 Source: L.COG Geographic Data System
2 Runoff coefficients determined from ~ublished standards and figures currently used by the Public Works Department
Step 3 - Calculate the SDC Unit Cost
The SDC unit cost is calculated by dividing the replacement cost net of assessments and
contributions by the estimated developed impervious area. The SDC unit cost is $0.271 per
impervious square foot. Table 4 summarizes the development of the SDC unit cost.
TABLE 4
Stormwater SDC Unit Cost Calculation
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SDC Cost Basis
Estimated Impervious Surface
SDC Per Impervious Acre
SDC Per Impervious Square Foot
$33,171,021
2,806.5
$11,820
$0.271
Step 4 - Develop the SDC Schedule
In applying the stormwater SDC, the impervious square footage will be multiplied by the
SDC unit cost of $0.271 per impervious square foot. The total impervious square feet in a
new development is determined by using an actual impervious surface figure calculated
from measurement of impervious surfaces shown on the plans for the development
proposed. Example calculations are shown in Table 5.
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TABLE 5
Example Stormwater SDC Calculations
Example Land Use (1)
Example Impervious Square Feet
Stormwater SDC
Office
16,599
7,563
48,192
34.642
$4,498
$2,050
$13,060
$9,388
$28,996
Restaurant
Retail
Apartment
Mixed Use (Sum of Above Four 106,996
Examples)
1 Examples were selected based on review of development records in 1998 and 1999
Credits for On-Site Detention
Where a properly sized dry well, designed and constructed in accordance with City
specifications is used for clean (roof) stormwater infiltration, an SDC credit shall be applied
that is the greater of :
1. a 50% SDC credit will be assigned to the portion of the impervious area served by the
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. 2. an SDC credit proportional to peak ten-year runoff reduction, based on documentation
provided by the developer and approved by the City.
For systems other than dry well systems, a credit will be given in proportion to engineering
calculations of peak ten-year runoff reduction, based on documentation provided by the
developer and approved by the City.
Expenditures
The Springfield System Development Charge Project List identifies the projects which are
eligible for funding through the stormwater SDC. The SDC ordinance also provides
flexibility to collect SDC revenue to be expended on projects identified in the City's long
range plans.
LOCAL WASTEWATER
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Introduction
The City's local wastewater SDC consists of a combined reimbursement and improvement
fee. The improvement fee is calculated using a capital improvement plan (ClP) based
approach. Under the elP approach the SDC cost basis is derived from a capital
improvement plan that identifies specific growth-related projects to be built in the future.
The reimbursement fee is based on the value of available capacity in the existing system
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available to serve new development. The steps used in determining the local wastewater
SDC is as follows: ' .
1. Determine the capacity needs of growth
2. Determine the SDC cost basis
3. Calculate the SDC unit cost
4. Develop the SDC schedule
Step 1 - Determine the Capacity Needs of Growth
Local wastewater system capacity is defined in terms of equivalent dwelling units (EDUs).
Equivalent dwelling units are a way of characterizing the total capacity need in the sewer
system as if the City was made up entirely of single family dwellings. The total existing
EDUs are estimated to be 26,821 EDU$. The existing EDUs were estimated based on sewer
billing information for Springfield obtained from the Eugene Springfield Metropolitan
Wastewater Management Commission (MWMC). The total number of single family sewer
accounts is 14,537. According to wastewater flow records, single family users account for
54.2 percent of Springfield's wastewater flow. Dividing the number of single family
dwelling units by their percent of total flow provides an estimate of the system-wide EDUs
(26,821).
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Growth EDUs are estimated based on the estimated future residential dwelling units from
the City's residential lands study, and the current proportion of EDU s to dwelling units. The
existing number of residential dwelling units (including single family, multifamily, and
mobile homes) is 21,741. Therefore, the ratio of ED Us to dwelling units currently is 1.23.
The additional residential dwelling units projected through build-out are estimated to be
21,665. Assuming the same mix of development occurs in the future as currently exists, the
growth ED Us are estimated to be 26,728 (1.23 times 21,665). Total EDUs at build-out are
estimated to be 53,549 (26,821 current ED Us plus26,728 additional EDUs from growth).
Table 6. provides this calculation in tabular form.
TABLE 6
Local Wastewater Existing and Build-out EDUs
Current number of single family and duplex sewer units
% of total wastewater flow from single-family and duplex units
Total existing system EOUs
14,537
54.2%
26,821 (26,821 = 14,537/0.542)
Current number of residential dwelling units (includes singte famify,
duplex, multifamily, and mobile homes)
Current ratio of total EDUs to residential dwelling units
Growth residential dwelling units to build-out
Growth EDUs
Total build-out EDUs
21,741
1.23 (1.23 = 26,821/21,741)
21,665
26,728 (26,728 = 1.23 *21,665)
53,549 (53,549 = 26,821 + 26,728)
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Step 2 - Determine the SDC Cost Basis
Reimbursement Fee
The SDC cost basis fodhe reimbursement fee is equal to the system replacement cost net of
assessments, grants and conb:ibutions, and outstanding debt principal. SDCs are designed
to recover the costs of general system facilities needed to provide additional capacity for
new development. Assessments fund local improvements providing special benefits to
individual properties, and are therefore deducted from i:pe system value in determining the
SDC cost basis. External conb:ibutions to the system in the form of developer contributions
and grants are also deducted from the total system value to determine the cost basis.
Outstanding debt principal is also deducted from the system replacement value because the
debt will be repaid through sewer rates. Deducting the outstanding principal amount
ensures that the value of the debt-financed improvements will not be double-charged - once
through SDCs and again through sewer rates charged to the same developments.
To develop the system replacement cost, a system inventory of local sanitary sewer pipes
and pump stations was compiled. Unit costs were developed for each pipe diameter, in $
per lineal foot. The estimated replacement cost for the local sanitary sewer pipes is the
product of the inventory quantity and the unit cost; the replacement cost for each of the 16
pump stations was estimated individually.
TABLE 7
. Local Wastewater $DC Replacement Fee Cost Basis
Pipe System Wide Unit Unit Assessments,
Diameter .Quantity Cost Grants and
Contributions
4" 2,890 Lineal Feet $73 $210,970
5" 2,186 Lineal Feet $73 $159,578
6" 58,531 Lineal Feet $73 $4,272,763
8" 670,538 . Lineal Feet $83 $55,654,654
10" 69,200 Lineal Feet $84 5,743,600
12" 47,845 Lineal Feet $85 $3,971,135
15" 26,419 Lineal Feet $88 $2,192,777
16" . aDO Lineal Feet $114 $33,200
18" 28,905 Lineal Feet $114 $1,199,558
20" 802 Lineal Feet $135 $33,283
21" 14,263 Lineal Feet $135 $621,750
24" 27,519 LIneal Feet $153 $1,881,641
27" 25,203 Lineal Feet $180 $0
30" 9,193 Lineal Feet $230 $405,720
36" 7,042 Lineal Feet $315 $1,686,825
42" 19,158 Lineal Feet $378 $0
. 48" 19,752 LIneal Feet $441 $2,407,860
SDC Cost Basis
$0
$0
$0
$0
$69,200
$95,690
$132,095
$58,000
$2,095,613
$74,987
$1,303,756
$2,328,767
$4,536,540
$1,708,670
$531 ,405
$7,241,724
$6,302,772
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. TABLE 7
Local Wastewater SDC Replacement Fee Cost Basis
Pipe System Wide Unit Unit Assessments,
, Diameter Quantity Cost Grants and
Contributions
60" 3,641 Lineal Feet $504 $0
Pump Stations Capacity Estimated Assessments,
Replacement Cost Grants and
Contributions
. Harlow Road 3.0 MGD $800,000 $0
Gateway & Gamefarm 0.2 MGD $100,000 $0
Ramada Station
Ken Ray 0.5 MGD $100,000 $100,000
21s1 and E Street 1.6 MGD $185,000 ' $0
Hayden-Lo 0.4 MGD $140,000 $140,000
Marcola Road 0.1 MGD $60,000 $60,000
15th Street 0,3 MGD $80,000 $80,000
49th Street 0.5 MGD $110,000 $110,000
Golden Terrace 0.4 MGD $180,000 $180,000
Lucerne Meadows 0.3 MGD $100,000 $100,000
Commercial Park 0.4 MGD $120,000 $120,000
. Olympic 0.2 MGD $100,000 $100,000
Deadmond's Ferry 1.2 MGD $150,000 $0
Otto Street 0.2 MGD $120,000 $120,000
42nd and Olympic 0.2 MGD $100,000 $100,000
River Glen 0.7 MGD $100,000 $79,000
Total Local Wastewater
SOC Reimbursement Fee
Cost Basis
SDC Cost Basis
$1,835,064
SDC Cost Basis
$800,000
$100,000
$0
$185,000
$0
$0
$0
$0
$0
$0
$0
$0
$150,000
$0
$0
$21,000
$22,784,308
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Assessable costs were developed consistent with the City's assessment policies. The entire
replacement cost for pipes 8 inches or less in diameter is considered assessable. For pipes
between 10 and 24 inches in diameter, the cost of an equivalent 8-inch pipe is assessable and
the remainder of the project cost is not assessable. For pipes between 16 and 24, inches in
diameter, it is assumed that assessments :will be collected from 50% of the eligible parcets.
None of the replacement cost for pipes over 24 inches in diameter is considered assessable.
Assessable costs for pump stations were estimated individually. The total estimated
assessable cost is $76,494,471.
Grant and other funding is estimated separately for each diameter of local sanitary sewer
pipe, according to the lineal footage of pipe that was grant funded. No grant funding for
pump stations has been received. An estimated $5,269,842 in grants and contributions has
been received for the facilities included in the local wastewater SDC. Current outstanding
debt principal of $6,785,974 is also deducted.
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CITY OF SPRINGFIELD SDe METHODOLOGY
The reimbursement fee cost basis of $22,784,308 is the replacement cost less assessments,
grants and contributions, and outstanding debt service principal.
ln1provementFee
The SDC improvement fee cost basis is the growth-allocable portion of planned local
wastewater system capital improvements. Twelve planned capital improvements are
incorporated into the SDt with a total estimated project cost of $11,075,000. A growth-
allocable portion of each project was estimated that would be funded by SDCs, and the
calculation of the SDC improvement fee cost basis is shown in Table 8.
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CITY OF SPRINGFIELD SDC METHOOOlOGY
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Improvement Fee
The improvement fee unit cost is calculated by dividing the improvement fee cost basis
($8,630,000) by the anticipated growth through build out (26,728 EDUs), resulting in an
improvement fee unit cost of $323 per EDU.
Combined Reimbursement and Improvement Fee
The SDC unit cost is $748 per EDU, which is the sum of the unit costs for the reimbursement .
fee and the improvement fee.
Step 4 - Define the SDC Schedule
The SDC schedule is based on the number of plumbing fixture units (PFUs), as defined in
the 1997 Uniform Plumbing Code Oregon Amendments (April 2000), proposed to be
hooked up to the system. Based on a single-family, dwelling containing two lavatories, two
water closets, two bathtubs with showers, one washer, and one kitchen sink, there are 20
PFUs per EDU. The SDC per PFU is therefore calculated at $748/20 = $37.40 per PFU.
An alternative SDC fee for exceptional users will be applied when the sewage discharge
from a development or ,a portion of the discharge from a development is, in the opinion of
the City, not adequately defined by the application of a PFU count. This will typically occur
when the development has discharges or plumbing fixtures which are not listed within the
Uniform Plumbing Code. Examples of such discharges would be D:omcar wash facilities, a
swimming pool discharge, or high water use manufacturing. The SDC fee for the non-PFU
portion of a development discharge is $748 per EDU, based on an average wastewater
. discharge of 167 gpd per EDU.
If a development has a portion of the discharge which can be defined by PFU, and a portion
of the discharge which the City determines should be charged by EDU, then the fee will be
calculated using the PFU rate for the portion of the flow which can be defined by PFUs and
the EDU rate for the portion of flow which is defined by flow equivalent to a dwelling unit.
Table 9 shows example local wastewater SDC calculations.
TABLE 9 '
Example Local Wastewater SDC Calculations
Example Land Use (1)
Example PFUs
Local Wastewater SDC
Office
41
67
41
.401
$1,533
$2,506
$1,533
$14,997
$20,570
Restaurant
Retail
Apartment
Mixed Use (Sum of Above Four 550
Ex.amples)
1 Examples were selected based on review of development records in 1998 and 1999
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OTY OF SPRINGAELD SDC METHODOLOGY
Expenditures
The Springfield System Development Charge Project Ust identifies the projects which are
eligible for funding through the local wastewater SDC. The SDC orcUnance also provides
flexibility to collect SDC revenue to be expended on projects identified in the City's long
range plans.
TRANSPORTATION
Introduction
The City's transportation SDC consists of a combined reimbursement and improvement fee.
The improvement fee is calculated using a capital improvement plan (CIP) based approach.
Under the CIP approach the SDC cost basis is derived from a capital improvement plan that
identifies specific growth-related projects to be built in the future. The reimbursement fee is
based on the value of available capacity in the existing system available to serve new
development. The steps used'in determining the transportation SDCs are as follows:
1. Determine the capacity needs of growth
2. Determine the SDC cost basis
3. Calculate the SDC unit cost
4. Develop the SDC schedllle
Step 1 - Determine the Capacity Nee~s of Growth
For purposes of developing SDCs, the capacity of a transportation system is typically
defined by the number of trip ends that may be accommodated by the system over a
specified planning horizon. Every vehicle trip has two ends, an origin and a destination.
Trip capacity may be stated in terms of average daily or peak rates of travel. Based on a
recommendation from the Citizen Advisory Committee, Springfield's SDCs are calculated
based on average weekday trip generation.
The Eugene/Springfield regional transportation system plan (Tra71.sPlan) identifies the
transportation capacity needs of the region, as a whole and for the individual cities, through
2015. Based on TransPlan, the total average weekday trip ends generated by growth
through 2015 is 196,077. Trip end forecasts generated by the regional transportation model
rely heavily on regional household travel behavior surveys. Such surveys tend to account
only for primary trip productions and attractions, and tend to omit short "pass-by" trips,
diverted trips, and other linked trips. This is an important factor in how the SDCs are
ultimately applied to individual land uses (see discussion under Step 4 below).
Step 2 - Determine the SDC Cost Basis
Reimbursement Fee
The SDC cost basis for the reimbursement fee is net system investment (system replacement
cost net of assessments, grants and contributions, and outstanding debt principal), adjusted
for the amount of available local capacity of the existing facilities. Table 10 shows
calculation of the reimbursement fee cost basis. To develop the system replacement cost, a
system inventory of improved minor arterials, improved collectors, off-street bike and
pedestrian paths, and traffic signals was considered. The SDC cost basis does not include
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CITY OF SPRINGFIELD SDC METHODOLOGY
local streets and asphalt mat minor arterials and collectors because these are funded almost
exclusively from assessments and developer contributions. Replacement unit costs, in
$/ foot or $/ traffic signal, were estimated based on the City's current road construction
costs. The replacement cost was calculatedby multiplying the inventory quantity by the
uni~ cost, for each component of the transportation system inventory. Table 10 shows the
replacement values for each type of asset in the current inventory. The total estimated
replacement cost of the transportation system facilities is $82,215,950.
TABLE 10
Transportation SDC Replacement Cost
Facility Category.
Units (Feet or Number)
Estimated Replacement
Cost
Unit Cost
Improved Minor Arterials
Improved Collectors
Off-Street Bike!
Pedestrian Paths
Traffic Signals
Total
$400
$350
$75
87,661
113,129
32,752
$35,064,400
$39,595,150
$2,456,400
$150,000
$5,100,000
$82,215,950
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SDCs are designed to recover the costs of general system facilities needed to provide
additional capacity for new development. Assessments fund local improvements providing
special benefits to individual properties, and are therefore deducted from the system yalue
in deter:m:ining the SDC cost basis. External contributions to the system in the form of
developer contributions and grants are also deducted from the total system value to
determine the cost basis. The assessable costs and external contributions were estimated
based on a review of transportation system capital improvement financing since 1990.
During this time, approximately 12:6 % of funding for improved minor arterials and
improved collectors was provided by assessments. Off-street bike and pedestrian paths
were not funded by assessments and an estimated 20% of traffic signal funding was
provided by developers. These percentages were applied to the respective replacement
values to determine the total assessable cost of $10,427,103.
Since 1990, approximately 66% of funding for improved minor arterials and improved
collectors was provided by County, State, Federal or other grants. An estimated 80% of off-
street bike and pedestrian path funding was from Federal grants, and grant funding was not
received for traffic signals. These percentages were applied to the replacement values to
determine the total grant! contribution cost of $51,240,243.
Outstanding debt principal is also deducted from the system replacement value because the
debt will be repaid through property taxes. Deducting the outstanding principal amount
ensures that the value of the debt-financed improvements will not be double-charged - once
through SDCs and again through property taxes charged to the same developments. In
2000, the City has outstanding a total of $2,370,000 in general obligation debt related to the
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CITY OF SPRINGFIELD SDC METHODOLOGY
transportation system. The net system investment of $18,178,424 is the replacement cost less
assessments, grants and contributions, and outstanding debt principal.
The cost basis is equal to the net system valu~ of local excess capacity. Based on traffic
modeling data from TransPlan, the City estimated that approximately 19 percent of the
existirig transportation system capacity is available to growth through 2015. However, a
portion of this capacity will be consumed by "through" trips. A through trip passes through
the City but has neither an origin nor a destination in the City. Through trips require
capacity, but this cost of capacity is not the responsibility of local new development.
Therefore, the SDC cost basis excludes the value of through trip capacity. Through trips are
estimated to account for less than 10 percent of the additional capacity needs through 2015.
The cost basis i:S determined by multiplying the percent available capacity in the existing
transportation by the total replacement value net of assessments, contributions, and
outstanding principal. The value of available capacity is $3/484,804. An analysis of traffic
modeling information indicates that 90.7% of the available capacity will be used by local
trips, as opposed to through trips resulting in a cost basis of $3,160/717. The SDC
reimbursement fee cost basis is shown in Table 11.
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CITY OF SPRINGFIELD SDC METHODOLOGY
TABLE 11
Transportation SDC Reimbursement Fee Cost Basis
Estimated Replacement Cost
less Assessments
$82,215,950
($10,427,103)
($51,240,423)
($2,370,000)
$18,178,424
Less Grants
less Outstanding Debt Principal
Net System Investment
% of System Capacity Available for Growth
Value of Available Capacity
19%
$3,484,804
% Local Trip Ends
TransportationSDC Cost Basis
90.7%
$3,160,717
Improvement Fee
The SDC improvement fee cost basis is the growth-allocable portion of planned
transportation system capital improvements. Five classes of capital improvements are
incorporated into the SDC: arterial capacity improvements, new arterial links and
intersections, new collectors, urban standards, and bike projects. The source documents for
the improvements include the following:
· TransPlan ilpdate
. Springfield Bicycle Plan
. Conceptual Road Network Map
. Refinement Plans
The total cost of planned capital improvements, in 2000 dollars, is $84,553,349. As for the'
reimbursement fee cost basis, deductions are made for anticipated assessments, grants and
other conh'ibutions. The level of funding from these non SDC-eligible sources was estimated
based on a combination of past funding patterns and assumptions related to the availability
of future grants, in particular Lane County grant funds. The two major sources of revenue
for the county road fund are state highway hust funds and revenue from federal timber
receipts. As timber receipts have become less stable and state highway funds have not been
increased to keep up with inflation, the county does not expect to be able to continue to
fund city projects at historical levels and have made this fact known to the cities. The
portion of improvement costs to be funded through assessments, grants, and contributions
. is projectedto be $51,517,150. '
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CITY OF SPRINGFIELD sac METHOOOLOGY
For each improvement project, traffic modeling data was analyzed 'to determine how much
of the project would be used by existing land uses versus new development through 2015.
Traffic volume data is available for each road segment and intersection. Total traffic flows in
2015 were identified for each segment. Traffic flows from existing land uses on the 2015
network were subtracted from the total 2015 flow to deterniine the traffic volume gener'ated
by growth. The volume attributable to growth was then divided by the total estimated
volume by segment to determine growth's share of each improvement. Table 12 shows the
allocation of project types to growth. The total growth allocation is $14,819,332. .
TABLE 12
SDC Improvement Fee Growth Allocation
Project Type
Total Project Assessments Net Project % Growth Growth
Cost and Other Cost Allocable Allocation
Funding
$8,340,000 $1,124,000 $7,216,000 49% $3,516,297
$3,000,000 $2,700,000 $300,000 73% $217,500
$44,978,500 $33,100,650 $11,877,850 65% $7,737,547
$21,490,000 $9,~12,500 $11,777,500 24% $2,788,534
$6,744,849 $4,880,000 $1,864,849 30% $559,455
$84,553,349 $51,517,150 $33,036,199 45% $14,819,332
Arterial Capacity
Improvements
New Arterial Link &
Intersection
New Collectors
Urban Standards
Bike Projects
Total
Similar to the reimbursement fee, the growth-allocable' project cost is multiplied by the
90.7% local trip factor to account for the cost of capacity associated with through trips. The
resulting SDC improvement fee cost basis is $13,441,134
Step 3 - Calculate the sec Unit Cost
Table 13 shows the calculation of the individual reimbursement and improvement fee unit
costs, as well as the combined unit cost. The SDC reimbursement fee unit cost of $16.12 per
average weekday trip end is calculated by dividing the cost basis generated in Step 2
, ($3,160,717) by the number of average weekday trip ends generated by growth generated in
,Step 1 (196,077)
The SDC improvement fee unit cost of $68.55 per average weekday trip end is calculated by
dividing the cost basis generated in Step 2 ($13,441,134) by the number of average weekday
trip ends generated by growth generated in Step 1 (196,077). The combined SDC unit cost of
$84.67 per average weekday trip end is the sum of the reimbursement fee unit cost and the
improvement fee unit cost.
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CITY OF SPRINGFIELD SDC METHODOLOGY
TABLE 13
Transportation SDC Unit Cost
Reimbursement Fee Unit Cost
Reimbursement fee cost basis
Average weekday trip ends generated by growth
Reimbursement fee unit cost
$3,160,717
196,077
$16.12
Improvement Fee Unit Cost
Improvement fee cost basis
. Average weekday trip ends generated by growth
Improvement fee unit cost
$13,441,134
196,077
$68.55
Transportation SDC Unit Cost
$84.67
,
Step 4 - Develop the SDC Schedule
Transportation SDCs are charged based on the estimated impact of a particular
development on the transportation system. Because transportation system capacity is
measured in trip ends, the capacity requirements of new development are also stated in
terms of trips generated. The number of trips generated differs by land use type. Therefore,
SDC schedules assign different costs to a variety of land use types. The Institute of
Transportation Engineers (ITE) Trip Generation Manual is the industry standard and most
widely used source for information on trip generation by land use.
Adjustments for IIpass-by Trips"
Also referred to as linked trips or trip chaining, pass-by trips refer to trips that occur when a
motorist is already on the roadway (as in the case of a traveler stopping by a fast food
restaurant on the way home from work). In this case, the motorist making a stop while
"passing by" is counted as a trip generated by the restaurant, but it doesn't represent a new
trip on the roadway. ITE trip generation rates include pass-by trips in the trip generation
factors for individual land uses. However, as discussed under Step 1 above, the projections
of trip ends from growth as a whole produced by the transportation model, do not include
pass-by trips. Therefore, the Citizen Advisory Committee recommended adjusting ITE trip
rates for pass-by trips so that the basis for charging SDCs for individual land uses is
consistent with the development of the unit cost of capacity. Without an adjustment for
pass-by trips, the City may over-collect SDC revenue.
The number of pass-by trips differs by land use. Retail establishments and fast food
restaurants are generally among the land uses with the highest percent of pass-by trips
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TABLE 14
. Example ITE Trip Rates and Pass-Sy Adjustments
Development Type Average Units (1) Average Weekday Pass-By Trip Transportation
Trip Ends/Unit Adjustment (2) SDe
Single-Family Dwelling Unit 1.0 Dwelling Unit 9.57 1.0 $810
Supermarket 50 TGSF 111.51 0.64 $302,130
Convenience Store 2 TGSF 737.99 0.39 $48,739
Quality Restaurant 3 TGSF 89.95 0.56 $12,795
Fast Food Restaurant With 2.5 TGSF 496.12 0.50 $52;508
Drive Thru
Hotel/Motel 80 Rooms 8.92 1.0 $60,421
High School 1,000 Students 1.79 1.0 $151,559
Church 5 TGSF 9.11 1.0 $3,857
Office Building 150 TGSF 11.01 1.0 $139,833
Service Station 12 Pumps 168.56 0.44 $75,356
Drive-In Bank 2.5 TGSF 265.21 0.53 $29,753
1 TGSF = thousand gross square feet
2 Source: ITE, except office building adjustment obtained from data used by the City of Salem.
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CITY OF SPRINGFIELD sac METHODOLOGY
relative to total trips generated. Residential and office developments are among th~ land
uses with the percentage of lowest pass-by trips.
The SDC schedule is calculated by multiplying the SDC unit cost by the number of average
weekday trip ends calculated for a particular development. The number of trip ends is
estimated for each development based on the trip rate for the particular land use, the size of
the development, and the pass-by trip adjustment. ITE rates will generally be used and
these are usually stated in terms of the number of trips per square feet, dwelling units, or
other variables, depending on the land use. The Oty will consider other information
regarding the trip rates for a particular development based on documentation developed in
accordance with the Oty's guidelines and stamped by a professional traffic engineer, as
provided by the developer.
Where available, the City will use the pass-by trip adjustments published in ITE trip rate
tables, with supplemental information provided from other sources where applicable. The
City will update the pass-by trip adjustment as information becomes available. The Oty will
consider other information regarding the pass-by adjustment for a particular development
based on documentation developed in accordance with the Oty's guidelines and stamped
by a professional traffic engineer, as provided by the developer.
'Table 14 provides example ITE trip rates and variables, and pass-by adjustments for some
typical land uses in Springfield. This table is presented for example purposes, only and
actual r,ates and adjustments may change as further information is developed.
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CITY OF SPRINGFIELD SDC METHODOLOGY
,Table 15 provides additional example SDC calculations for various land uses.
TABLE 15
Example Transportation SDC Calculations
Example Land Use (1)
Example Gross Average Pass-By Trip
Square Feet or # Weekday Trip Adjustment
of Dwelling Units Ends
10 TGSF 11.01rrGSF 1.0
3 TGSF 89.95rrGSF 0.56
15 TGSF 40.67rrGSF 0.64
20 Units 6.63/DU 1.0
Transportation
SDe
Office
$9,322
$12,795
$33,058
$11,227
$66,402
. ,
Restaurant
Retail
Apartment
Mixed Use (Sum of
Above Four Examples)
1 Examples were selected based on review of development records in 1998 and 1999
Expenditures
The Springfield System Development Charge Project List identifies the projects which are
eligible for funding through the transportation SDe. The SDC ordinance also provides
flexibility to collect SDC revenue' to be expended on projects identified in the City's long
range plans.
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