HomeMy WebLinkAboutItem 02- Planning and Engineering Development FeesAGENDA ITEM SUMMARY Meeting Date: 5/28/2024
Meeting Type: Work Session
Staff Contact/Dept.: Mark Rust/DPW
Staff Phone No: 541.726.3654
Estimated Time: 30 Minutes
S P R I N G F I E L D
C I T Y C O U N C I L
Council Goals: Provide Financially
Responsible and
Innovative Government
Services
ITEM TITLE: PLANNING AND ENGIEERING DEVELOPMENT FEES
ACTION
REQUESTED:
Receive information on the Planning and Engineering Development Fees and
provide input prior to finalizing draft recommendations.
ISSUE
STATEMENT:
The City recognizes there is a need to reevaluate the Planning and Engineering
Development fees following the adoption of a major update to the Springfield
Development Code in an effort to right size the fees for service in processing
development applications.
Through this work there are three primary objectives. First to determine the average
cost of service for reviewing development applications. Second, based on the
average cost of service, assess the cost recovery for reviewing development
applications. And finally compare Springfield’s fees to those of comparable cities.
ATTACHMENTS: 1. Council Briefing Memo
2. Cost of Service Analysis
DISCUSSION/
FINANCIAL
IMPACT:
The City last conducted a comprehensive planning and development fee analysis in
2010. With the adoption of significant updates to the Springfield Development
Code (SDC) in June of 2022, as well as process changes that have taken place in
since, it is an important time to re-assess the development application fees.
Staff last checked in with Council on this topic on June 20, 2023 at a work session
where the planning fee study work prepared by PSU was presented. The initial
study just focused on planning time spent on processing applications. It did not take
into account time spend by other work groups including engineering, transportation,
survey, etc. Direction given at the work session by Council was to further study the
total cost of processing development applications including engineering,
transportation, survey to account for 100% cost recovery.
Adjusting the planning application fees will have impacts to the General Fund. In
FY21 the General Fund supplemented the current planning program by $104,895.
In FY22 the General Fund supplemented the current planning program by only
$18,927. And in FY 23 the General Fund supplemented the current planning
program by $286,762. The sharp decrease in the amount of planning fees collected
in FY 23 can be attributed to the Development Code changes that made the
development process more streamline and required fewer land use approvals.
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M E M O R A N D U M City of Springfield
Date: May 28, 2024
To: Nancy Newton, City Manager COUNCIL
From: Mark Rust, Planning Manager, Current Planning
Jeff Paschall, Community Development Director
BRIEFING
Subject: Planning and Engineering Development Fees MEMORANDUM
ISSUE: The City recognizes there is a need to reevaluate the Planning and Engineering
Development fees following the adoption of a major update to the Springfield Development Code in
an effort to right size the fees for service in processing development applications.
Through this work there are three primary objectives. First to determine the average cost of service
for reviewing development applications. Second, based on the average cost of service, assess the
cost recovery for reviewing development applications. And finally compare Springfield’s fees to
those of comparable cities.
COUNCIL GOALS/MANDATE:
Provide Financially Responsible and Innovative Government Services
BACKGROUND:
Staff was last before Council on this topic on June 20, 2023, to present the work that Portland State
University (PSU) performed for the City in the Planning Fee Study. The report highlighted the time
spent by planners in processing development applications. The scope of the report did not include
the time spent by other works groups in processing development applications.
It was also discussed that State law allows collection of fees for processing permits in two different
ways, either the actual or average cost of providing the service. The model the City of Springfield
(and most other jurisdictions in the state) use is the average cost of service. (ORS 227.175). The fee
study analyzes the average cost of providing the service to processing planning applications and in
some cases recommends transitioning to and actual cost of service.
Direction received from the Council at the June 20, 2023 works session included:
1. Account for 100% cost recovery of providing current planning services in the processing of
development applications.
2. Include the cost of engineering, transportation, survey, administrative staff time, customer
service staff time and other applicable work groups time in one fee for processing
development applications.
3. Consider the time estimated for completing tasks is often underestimated. Compare
estimated times to actual time to complete processing tasks.
4. Evaluate the need for increased fees for processing applications in the UGB (Urban Growth
Boundary), that are outside of the city limits, due to coordination requirements with the
County in the fees for those application types.
5. Simplify the fee schedule so that it is not complex.
Attachment 1
Page 1 of 4
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DISCUSSION
Building from the initial planning fee study performed by Portland State University (PSU) and
taking the direction from Council, staff has studied the costs associated with 100% cost recovery for
processing development applications. This includes the time spent by other work groups outside of
current planning such as Engineering, Transportation, Survey, etc.
Staff utilized the same questionnaire/survey that was prepared by PSU to gain information from the
other work groups that spend significant time on processing development applications. In addition to
the survey, key personal kept track of their time working on each different application for a period
of months. This data was utilized to truth check the survey responses.
Based on this additional research, staff has added the additional staff time/costs to the Cost of
Service Analysis spreadsheet (ATT 2). This has resulted in the 100% cost recovery fee numbers for
development applications.
This fee study does not include analysis of Building Permit fees, Land and Drainage Alteration
Permit (LDAP) fees, or System Development Charges (SDC’s). It only looks at direct cost for
processing development applications.
Changes in fees
While the initial planning fee study showed significant fee reductions, the initial analysis did not
include the full cost of processing a development application. The initial report presented to Council
June 20, 2023 only included planning time. It did not include Engineering, Transportation, Survey
and other cost for processing development applications.
The revised Cost of Service Analysis spreadsheet (ATT 2) includes the costs associated with 100%
cost recovery for processing development applications. As such now the total application fee is
higher than previously stated. In many cases the fees are proposed to need to be increased.
However, some are still proposed to be decreased. Staff finds that the right sizing of the fees to
accurately reflect the amount of time spent on processing the development applications is needed at
this time.
It is still recommended that a certain list of application types be transitioned to an “actual cost of
service” model rather the existing “average cost of service” model used now. This would require the
establishment of an accurate time tracking program as well as establishing deposit amounts for the
actual cost of service applications. Any excess amount of the deposit that wasn’t used for processing
the application would then be refunded at the completion of the planning review.
Comprehensive Planning Fee per acre for Annexations
Previously the Council suspended collection of the per acre fee for annexation that was for
Comprehensive Planning. This fee pays for the Comprehensive Planning Program services that are
provided well in advance of an area being ready to be annexed to the City. An example of this is the
Jasper Natron area is southeast Springfield. This area is currently being contemplated for
annexation. However, the comprehensive/long range planning work for this area was done many
years ago. This long-range planning work included: the sewer master plan work that was done to
facilitate the sewer line construction that is currently taking place; the Goal 5 inventory work that
was performed to be in compliance with state law for mapping wetland and other critical resources;
the zoning of the different areas to meet our 20-year land needs as prescribed by state law; etc. The
Attachment 1
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intent of the comprehensive planning fee is the pay back the city for the long-range planning work
that was performed to prepare this property for annexation.
Another example of this is for the North Gateway area. This area still needs a considerable amount
of comprehensive planning work done to prepare it for annexation. A considerable amount of city
staff time has already been spent to perform some of the natural resource inventory work that is
needed. This work already completed would essentially be partially paid for retroactively through
the Comprehensive Planning fee when the property is annexed. Much work remains to be done for
the North Gateway area, funding for the Comprehensive Planning program is critical to ensure the
resources are in place to perform this future work.
To give some scope to the amount of fees collected, planning has kept track of the amount of
Comprehensive Planning Fee that has not been collected in FY 24 since the fee was suspended.
Based on the annexations that have been submitted so for this fiscal year, a total of $350,511.44 has
not been collected that would have been if the fee was still being collected. The amount of the
budget for entire Comprehensive Planning program for FY 23 was $576,138, of which $278,460 is
from General Fund resources.
Staff recommends re-activating the Comprehensive Planning Fee for annexations. Does Council
support this fee moving forward?
QUESTION FOR COUNCIL: Does Council support the staff recommendation to re-activate the
Comprehensive Planning Fee for annexations moving forward?
Attachment 1
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NEXT STEPS:
Staff is seeking input from Council at this work session on the next steps for the Planning and
Engineering Fees for Development Applications. Specifically, staff is asking if Council is
comfortable moving forward with preparation of a draft fee schedule based on the methodology
presented in the work session to bring back to the Council.
Staff is planning to return in the fall of 2024 with proposed fee changes to reflect the direction
provided by the Council.
RECOMMENDED ACTION: Give staff direction on the following question:
1. Does Council support the staff recommendation to re-activate the Comprehensive
Planning Fee for annexations moving forward?
2. Is Council comfortable moving forward with preparation of a draft fee schedule
based on the methodology presented to bring back to the Council.
Attachment 1
Page 4 of 4
Application Type Current Fee Planning cost
Engineering
cost
Transportation
cost
Survey
cost
Admin. staff
cost*
Customer
Service
Counter cost
(ave. per
application)
100% Cost
Recovery
TOTAL
% of current
fee
Accessory Dwelling Unit
Type 1
City: $945
UGB: $1,040 $512.53 $300.60 $0.00 $0.00 $81.31 $515.36 $1,409.80 149%
Accessory Dwelling Unit
Type 2
City: $945
UGB: $1,040 $563.05 $300.60 $0.00 $0.00 $86.36 $515.36 $1,465.37 155%
Amendment of Development Code Text
Type 4
City: $9,629
UGB: $14,527
Single detached on R-1 property less than 10,000 sf:
$1,275
< 1 acre: $2,787
1-5 acres: $3,563
5-10 acres: $4,754
10-25 acres: $6,000
25-50 acres: $8,572
100+ acres: $11,815
$1,663.41 $1,202.40 $150.30 $255.88 $301.61 $515.36 $4,088.96 321%
Comprehensive Planning fee: $2,444/acre
Special District boundary adjustments: 10% of annexation
fee
Conceptual Development Plan
Type 3
City: $17,782
UGB: $26,823
Declaratory Ruling
Type 1
City: $945
UGB: $1,040 $937.08 $450.90 $150.30 $0.00 $153.83 $515.36 $2,207.47 234%
Declaratory Ruling
Type 2
City: $2,302
UGB: $2,990 $1,123.29 $450.90 $150.30 $0.00 $172.45 $515.36 $2,412.29 105%
Declaratory Ruling
Type 3
City: $6,166
UGB: $9,302
Determination of Non-Conforming Use Status City: $139
UGB: $209 $1,050.40 $75.15 $37.58 $0.00 $116.31 $515.36 $1,794.80 1291%
Discretionary Use
Type 3
City: $4,978
UGB: $7,509
$540.86 $676.35 $150.30 $164.34 $136.75 $515.36 $2,183.96 152%
$1,096.47 $676.35 $150.30 $164.34 $192.31 $515.36 $2,795.13 195%
Historic
Type 1
City: $77
UGB: $203 $1,096.47 $150.30 $150.30 $0.00 $139.71 $515.36 $2,052.14 2665%
Historic
Type 2
City: $229
UGB: $608 $1,978.41 $150.30 $150.30 $0.00 $227.90 $515.36 $3,022.27 1320%
Historic
Type 3
City: $4,515
UGB: $46,812
Establishment of Historic Landmark City or UGB: $2,498
Land Use Compatibility Statement/Zoning
Verification Letter
City: $365
UGB: $395 $418.29 $0.00 $0.00 $0.00 $41.83 $515.36 $975.47 267%
Manufactured Dwelling Park
Type 2
City: $12,831
UGB: $19,354 $1,631.30 $450.90 $150.30 $0.00 $223.25 $515.36 $2,971.11 23%
Master Plan Approval Preliminary
Type 2
City: $17,782 + $823 per acre
UGB: $26,823 + $823 per acre
Master Plan Approval Preliminary
Type 3
City: $24,465 + $823 per acre
UGB: $36,830 + $823 per acre
Master Plan Approval Final 10% of the paid master plan approval fee $924.64 $1,427.85 $150.30 $127.94 $250.28 $515.36 $3,396.37
Master Plan Modification
Type 1
City: $3,421
UGB: $5,129
Master Plan Modification
Type 2
City: $6,888
UGB: $10,392
Master Plan Modification
Type 3
City: $12,578
UGB: $18,389
Metro Plan Amendment
Type 1
City: $28,288 + $823 per acre
UGB: $42,672 + $823 per acre
Metro Plan Amendment
Type 2
City: $13,719 + $823 per acre
UGB: $17,595 + $823 per acre
$581.49 $515.36
$0.00 $515.36
Modification of Approval
Type 1
City: $1,613
UGB: $2,435 $908.75 $450.90 $150.30 $0.00 $151.00 $515.36 $2,176.31 135%
Modification of Approval
Type 2, non-significant impacts City or UGB: $3,421 $1,153.13 $450.90 $150.30 $0.00 $175.43 $515.36 $2,445.13 71%
Modification of Approval
Type 2, significant impacts City or UGB: $5,298 $1,312.52 $901.80 $150.30 $0.00 $236.46 $515.36 $3,116.44 59%
Non-Conforming Use Expansion/Modification
Type 2
City: $4,978
UGB: $7,509 $1,629.79 $1,052.10 $37.58 $0.00 $271.95 $515.36 $3,506.77 70%
Partition Tentative Plan
Type 2
City: $6,335
UGB: $11,592 $1,509.32 $1,503.00 $150.30 $191.91 $316.26 $515.36 $4,186.15 66%
Partition Plat
Type 1 City or UGB: $3,481 $690.26 $450.90 $0.00 $2,174.98 $114.12 $515.36 $3,945.61 113%
Property Line Adjustment
Type 1
City: $811
UGB: $1,221 $437.43 $225.45 $37.58 $2,174.98 $70.05 $515.36 $3,460.84 427%
Property Line Adjustment - Serial
Type 2
City: $1,618
UGB: $2,441 $1,181.46 $751.50 $37.58 $2,174.98 $197.05 $515.36 $4,857.93 300%
Public Easement
Type 2 (Public Easement)
City: $1,613
UGB: $2,435
Public Easement
Type 4 (ROW, subdivision plat, or other Public
Property)
City: $6,166
UGB: $9,302 $1,741.59 $601.20 $150.30 $0.00 $249.31 $515.36 $3,257.76 53%
Minor Replat Tentative Plan
Type 2 City: $4,055 $1,482.51 $1,052.10 $150.30 $639.70 $268.49 $515.36 $4,108.45 101%
Minor Replat Plat
Type 1 City: $2,384 $396.81 $601.20 $150.30 $2,174.98 $114.83 $515.36 $3,953.48 166%
Major Replat Tentative Plan
Type 2 City: $6,588 $1,454.18 $1,277.55 $150.30 $639.70 $288.20 $515.36 $4,325.29 66%
Major Replat Plat
Type 1 City: $2,384 $407.55 $901.80 $150.30 $2,174.98 $145.96 $515.36 $4,295.95 180%
Refinement Plan Amendment
Type 4
City: $13,719 + $823 per acre
UGB: $21,107 + $823 per acre
Site Plan Review
Type 2
500 or less sq. ft. of new, removed, or net change of
impervious surface; and no Traffic Impact Study required;
and no change of driveways, access, or circulation
City only: $1,616
500-10,000 square feet of new impervious surface
City or UGB: $5,489
10,000+ square feet of new impervious surface
City or UGB: $5,489 + $65 per 1,000 square feet
$1,806.58 $1,127.25 $150.30 $127.94 $308.41 $515.36 $4,035.84 250%
Final Site Plan Equivalent
Type 1 City or UGB: $4,891 $1,170.87 $450.90 $37.58 $0.00 $165.93 $515.36 $2,340.64 48%
Final Site Plan Review/Development Agreement
Type 1 10% of the paid site plan fee $414.36 $300.60 $0.00 $0.00 $71.50 $515.36 $1,301.82
Solar Access Protection
Type 2
City: $1,015
UGB: $1,232
Street Name Change City: $6,166
Subdivision Tentative Plan
Type 2
R-1
< 2 acres: $7,176 + $309 per lot
2-5 acres: $10,156 + $508 per lot
5-10 acres: $13,434 + $776 per lot
10-20 acres: $14,173 + $807 per lot
20+ acres: $14,911 + $895 per lot
Non-R-1
$12,668 + $760 per acre
$1,482.51 $1,277.55 $150.30 $639.70 $291.04 $515.36 $4,356.45 61%
Springfield Planning Department Cost of Service Recovery Rates (City Limits)
Actual cost of service recommended
Actual cost of service recommended
Actual cost of service recommended
City: $1,437
UGB: $2,169
Plus
Subdivision: $259 per lot
Partitions and site plans: $520 per acre
Actual cost of service recommended
Floodplain Development
Annexation
Type 4
Actual cost of service recommended
Actual cost of service recommended
Actual cost of service recommended
Actual cost of service recommended
Actual cost of service recommended
Actual cost of service recommended
Actual cost of service recommended
Actual cost of service recommended
Actual cost of service recommended
Actual cost of service recommended
Actual cost of service recommended
Actual cost of service recommended
$150.30 $170.87 $2,522.91 194%$127.94
Minimum Development Standards
Type 1 $976.95City only: $1,299
Actual cost of service recommended
Attachment 2
Page 1 of 2
Subdivision Plat
Type 1
R-1
$992 + $618 per lot
Non-R-1
$5,078 + $825 per acre
$572.23 $300.60 $150.30 $2,174.98 $102.31 $515.36 $3,815.79 385%
Temporary Use
Type 1, Manufactured Dwelling After Disaster City or UGB: $483 $0.00 $0.00 $0.00 $0.00 $515.36 $515.36 107%
Temporary Use
Type 1, Emergency Medical Hardship City or UGB: $360 $1,181.46 $0.00 $0.00 $0.00 $118.15 $515.36 $1,814.97 504%
Minor Tree Felling Permit
Type 2 $648.04 $300.60 $0.00 $0.00 $94.86 $515.36 $1,558.86 122%
Major Tree Felling Permit
Type 2 $1,158.43 $375.75 $0.00 $0.00 $153.42 $515.36 $2,202.96 172%
Vacation
Type 2
City: $1,613
UGB: $2,435 $1,135.40 $601.20 $150.30 $0.00 $188.69 $515.36 $2,590.94 161%
Vacation
Type 4
City: $6,166
UGB: $9,302 $1,741.59 $751.50 $150.30 $0.00 $264.34 $515.36 $3,423.09 56%
Variance
Type 2
City or UGB: $3,164 $1,422.98 $601.20 $37.58 $0.00 $206.18 $515.36 $2,783.28 88%
Variance
Type 3
City: $8,256
UGB: $12,455
Zoning Map Amendment
Type 3
City: $6,832
UGB: $13,205
*Admin. staff cost includes time for file set up, noticing, processing, and issuing final decisions, etc.
Actual cost of service recommended
City or UGB:
Base fee: $1,281
< 5 trees: $0
6-10 trees: $65 per tree
10+ trees: $650 per acre
Filbert Orchards: Base fee only
Actual cost of service recommended
Attachment 2
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