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HomeMy WebLinkAbout04-06-18 Agenda Packet-Work SessionThe meeting location is wheelchair-accessible. For the hearing-impaired, an interpreter can be provided with 48-hours- notice prior to the meeting. To arrange for service, call 541-726-3694. All proceedings before the MWMC are recorded. MWMC WORK SESSION AGENDA Friday, April 6, 2018 @ 7:30 a.m. City of Springfield City Hall, Library Meeting Room 225 Fifth St., Springfield, OR 97477 Turn off cell phones before the meeting begins. 7:30 – 7:35 I. ROLL CALL 7:35 – 9:20 II. SMALL HOMES SYSTEM DEVELOPMENT CHARGES (SDCs) . . . . . . . . . . . . Matt Stouder Action Requested: Direction regarding criteria for Small Homes SDCs 9:20 – 9:30 III. BUSINESS FROM COMMISSION, GENERAL MANAGER, & WASTEWATER DIRECTOR 9:30 IV. ADJOURNMENT THE FULL PACKET IS POSTED ON THE WEBSITE www.mwmcpartners.org M E M O R A N D U M DATE: March 30, 2018 TO: Metropolitan Wastewater Management Commission (MWMC) FROM: Matt Stouder, General Manager SUBJECT: Small Homes System Development Charges (SDCs) ACTION REQUESTED: Direction Regarding Criteria for Small Homes SDCs _____________________________________________________________________ ISSUE The Commission has discussed incentivizing SDC’s for small homes several times during the past year. At the April 6, 2018 work session, staff will discuss criteria and eligibility requirements regarding implementing a program whereby MWMC will budget specific resources to be used towards offsetting SDC’s on behalf of qualifying applicants building small homes. BACKGROUND The Cities of Eugene and Springfield have both identified affordable housing as a priority community issue, and the Eugene-Springfield Consolidated Plan identifies a significant majority of low-income renters in the metropolitan area spend more than 30% of their income on housing costs. The Commission has indicated a desire to support intergovernmental cooperation on the issue of affordable housing by examining its SDCs for small houses. The MWMC received two requests in 2017 to consider waiving or incentivizing SDCs for small homes (accessory dwelling units and “tiny” houses). The Commission discussed policy issues associated with the requests in June 2017, and directed staff to look into a separate user class for small homes. Staff contracted with Galardi Rothstein Group (GRG), who looked at local, state and national data. GRG found that assessing small homes at a rate consistent with the multi-family rate would be justifiable and defensible due to the correlation between household size and flow. In October 2017, the Commission directed staff to implement a rate for small homes (800 square feet or smaller) consistent with the rate for multi-family dwellings on MWMC’s SDC rate schedule. Staff and legal counsel returned at the November 2017 Commission meeting for follow up discussion at the Commission’s request. The Commission directed staff to move towards creating a line item in the FY18-19 budget process to allow the MWMC to offset SDCs on behalf of applicants that meet qualifications (to be determined) for small homes. Memo: Small Homes System Development Charges March 30, 2018 Page 2 of 2 At the January 2018 meeting, the Commission began a conversation regarding criteria for eligibility, which included a square footage limit (800 square feet or less), whether the program should be limited to a first come, first served basis, and what level of resources should be allocated by the MWMC for the program. As a result of the January meeting, the Commission requested the General Manager to schedule a work session to further discuss criteria for the program. DISCUSSION Staff plans to present and discuss draft criteria for a program for Commission consideration and discussion at the April 6, 2018 work session. Program criteria to be discussed include home size, level of resources to allocate to the program, duration of the program, geographical constraints (Springfield vs Eugene) and program administration. A draft resolution for program implementation is attached, and will be modified as necessary based on Commission input, with tentative adoption by the Commission at the May 2018 meeting. ACTION REQUESTED Staff requests discussion and direction from the Commission at the Work Session. ATTACHMENTS 1) Draft Resolution ATTACHMENT 1 Draft Resolution Page 1 of 2 METROPOLITAN WASTEWATER MANAGEMENT COMMISSION DRAFT RESOLUTION ) IN THE MATTER OF ALLOCATING RESOURCES ) IN THE FY18/19 REGIONAL WASTEWATER ) PROGRAM BUDGET TO ASSIST IN THE ) PAYMENT OF SDC’S FOR SMALL HOMES WHEREAS, The Cities of Eugene and Springfield have identified increasing access to affordable housing and infill development as a priority community issue; WHEREAS, The the Eugene-Springfield Consolidated Plan identifies a significant majority of low-income renters spend more than 30% of their income on housing costs; WHEREAS, The increase in low income households has increased the need for additional quality affordable housing; WHEREAS, The MWMC has received requests to incentivize Systems Development Charges for affordable housing, in order to encourage the construction of affordable housing to help meet the need for quality affordable and rental housing; WHEREAS, The MWMC has determined a small house is 800 square feet or less and the resulting impact to the regional wastewater system from a small house is proportionately less than single family dwellings; WHEREAS, The MWMC has determined that promoting construction of small homes will support intergovernmental cooperation with respect to affordable housing; WHEREAS, The MWMC intends to allocate $50,000 in the fiscal year 2018-19 budget to support payment of Systems Development Charges for newly constructed homes; WHEREAS, The MWMC desires to establish criteria for eligibility to participate in the Small House SDC Project; NOW, THEREFORE, BE IT RESOLVED BY THE METROPOLITAN WASTEWATER MANAGEMENT COMMISSION THAT: Tom Boyatt, as the duly authorized Executive Officer of the MWMC, is hereby authorized to: (a) create a budget item for the Fiscal Year 2018-2019 budget whereby the MWMC may allocate up to $50,000 to apply towards SDC’s incurred by eligible builders of small house(s); (b) delegate to MWMC staff the creation of criteria related to a builder’s eligibility for, and participation in, the Small House SDC Project; (c) delegate to MWMC staff the authority to regulate and administer the Small House SDC Project to ensure only eligible builders are allowed to participate in the Small House SDC Project and to ensure compliance with the budget. ATTACHMENT 1 Draft Resolution Page 2 of 2 ADOPTED BY THE METROPOLITAN WASTEWATER MANAGEMENT COMMISSION OF THE SPRINGFIELD/EUGENE METROPOLITAN AREA ON THE ____th DAY OF _______ 2018. ________________________________________ PRESIDENT: Peter Ruffier ATTEST: __________________________ Secretary: Kevin Kraaz Approved as to form: ___________________________ MWMC Legal Counsel: K.C. Huffman