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Agendas and Minutes

System Development Charge (SDC) Review Committee (View All)

System Development Charge (SDC) Review Committee Meeting

Thursday, July 19, 2018

Ashland System Development Charge Review Committee
July 19,  2018
    Brown meeting began at 3:00 PM                                                          
    Members Present: Troy Brown Jr., Jac Nickels, Russ Silbiger
    Members Absent: Dan Jovick
    Staff Present: Paula Brown, Scott Fleury, Bill Molnar, and Tara Kiewel
    Consultant Present: Deb Galardi, Galardi Rothstein Group
    Guests: Joe Graf
    1. Project List Revisions (Table 1)
  2. Refinements to existing projects
  3. Additional Development-Driven projects – Staff reviewed development driven projects. Galardi explained there will be a cost to the City with development driven projects. The SDC statues require credit is given to developers for improvements. The City pays the difference for upsizing improvements which is shown on the table as 65% Developer and 35% City funded.
    Brown thanked the Committee for their work.
       ADJOURNMENT:  Meeting Adjourned 4:30 p.m.
    Respectfully submitted,
    Tara Kiewel
    Public Works Administrative Assistant

    Minutes – Draft minutes will be emailed to the Committee for approval.
    Project adjustments – The Committee accepted the project adjustment changes.
    Implementation Strategy
    Brown shared with the Committee an email from Jovick with his recommendations. I vote to phase in the higher residential fees. In our meeting we discussed doing that in a 3 year period since the SDC charges would be revisited again at that time.  I like the phase in percent of 50/25/25 or even better would be 50/30/20. It sounds like the current setup disproportionately charges commercial projects vs residential and this new fee structure will help balance that out.
    Nickels prefers a 33.33 percent per year three year phase in.
    Silbiger suggested a phase in of 50/25/25 percent.
    Brown Jr. prefers a 50/25/25 percent phase in.
    After discussion the Committee recommends to phase in the SDCs on a three year schedule with 50/25/25 percent.
    The Committee agreed to recommend using the Engineering News Record (ENR) index (Seattle, March) for inflation and to use the same baseline month as the other fees. 
    Discounts and Incentives - The Committee is recommending the proposed 50% discount for 500 sf and 25% percent incentive for 800 sf dwellings.
    Graf asked if sewer and water charges will also have incentives and expressed concern about underfunding transportation.
  • Council Meeting Schedule
    1. August 6 Work session
    2. November 6 Public Hearing (ORD 1)
    3. November 20 ORD 2 Adoption
  • Proposed residential development adjustments for small dwellings. A 50% discount for a dwelling under 500 square feet and a 25% discount for dwellings 501-800 square feet. Galardi explained there is good data for trips per household size.  There is not data to correlate trip generation for dwelling unit size. There is an assumption that the larger the house has more occupants. The basis for a fifty percent cap reduction in fees because there could be lower occupancy.  There is currently an affordable housing adjustment. Brown would like to have cap on incentives at 50%.
    Graf is concerned about small dwelling discounts and the potential impact on parking. He believes the same number of trips will be generated for an eight hundred square foot dwelling. 
    Nickels likes the 50% discount. Brown Jr. agrees with the 50% discount and believes the City should have policies that will align SCD’s with current standards and City codes.
  • Recommendations
    Brown explained that TSDCs are twenty years behind without inflationary increases.  The City is subsidizing housing, and transportation is in disrepair partially because of the delay in funding.
    Molnar asked if the Committee chooses a phase in option if there be an inflationary adjustment. Brown suggested using the Engineering News Record (ENR) index for inflation.
  • SDC Discounts and Incentives (attachment)
  • SDC Schedules by Land Use
    1. Comparison of updated TSDCs to current TSDCs (Table 3)
    2. Updated TSDC by land use phase-in option (Table 4)
    Brown Jr. asked if the 65% developer funding is an estimate and Brown clarified that it is an estimate that will fluctuate depending on the project.
    Galardi told the Committee the project list and calculations to determine the TSDC costs went through a more rigorous process that included looking at the characteristics of each mode. Each type of improvement was reviewed for future capacity needs and costs have been updated. 
  • Updated Cost Per Trip (Table 2)
    1. Improvement and reimbursement fees
    2. SDC compliance charge

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