HomeMy WebLinkAboutItem 03 Systems Development Charges Update
AGENDA ITEM SUMMARY Meeting Date:
Meeting Type:
Department:
Staff Contact:
SPRIN GFIE LD Staff Phone No:
C I T Y C 0 U N elL Estimated Time:
ITEM TITLE: SYSTEMS DEVELOPMENT CHARGES UPDATE
November 13,2007
Work seSSio~n
Public Works
Len Goodw' _
726-3685
30 minutes
ACTION
REQUESTED:
ISSUE
STATEMENT:
No action is required. This material is for Council information
Staff is in the process of beginning the scheduled update of the City's Systems
Development Charges methodologies and rates. To refresh those members of the
Council who have considered previous updates, and to provide basic information to
those members of the Council who have not participated in reviewing an update,
the City has requested that the consultant who will lead the update make a brief
presentation to Council.
ATTACHMENTS:
None.
DISCUSSIONI
FINANCIAL
IMPACT:
The City imposes Systems Development Charges ("SDC") on development to
recover the cost of infrastructure occasioned by growth. City SDC's are imposed to
recover the cost of sanitary sewer, storm drainage and transportation infrastructure.
These charges may have two components - a reimbursement charge which relates
to the cost of existing capacity and an improvement component which relates to the
need for new capacity.
In the case of Sanitary Sewer charges the City imposes both a charge related to the
capacity needs of the local collection system and a charge related to the capacity
needs of the regional wastewater treatment system. This latter charge is imposed on
the basis of recommendations by the Metropolitan Wastewater Management
Commission and was reviewed and updated in 2005. The former charge, related to
the collection system, will be reviewed in the upcoming study. In addition, the local
stormwater and transportation charges will be reviewed.
Preliminary staff work indicates that a revision to the existing stormwater
methodology is required. It includes only an improvement component, not a
reimbursement component, and is based on level of service considerations which
are no longer permitted under Oregon law.
Both the local Sanitary sewer charge and the transportation charge contain
reimbursement and improvement components and both are based on project lists, as
is required under current law. It is, therefore, possible that no change to the existing
methodology will be required. One of the early tasks of the consultant will be to
assist City staff in formulating a recommendation on that question.
At this session the consultant will give an overview of the requirements for systems
development charges, based on the most recent legislation, and outline the process
that the City staff will follow in preparing recommendations for Council
consideration.