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HomeMy WebLinkAboutSDC Info - Destination ResortsRoad Department MEMORANDUM DATE: April 2, 2010 TO: Board of County Commissioners Dave Kanner, County Administrator FROM: Tom Blust, Director RE: Transportation SDC for Destination Resorts 61150 SE 27th St. • Bend, Oregcn 97702 (541) 388-6581 • FAX (541) 388-2719 Background: The Board adopted a Resolution establishing a transportation system development charge (SDC) in July of 2008. This Resolution included adoption of a transportation system development study (SDC methodology) as the basis for establishing the SDC fees. The SDC methodology established trip generation rates and corresponding SDC's for various land uses, including residential. Separate trip generation figures for single family dwellings located within destination resorts and outside destination resorts were identified and used in the SDC methodology for the trip growth calculation and the recommended SDC. However, the trip generation rate table in the SDC methodology includes only a trip generation rate for single family dwellings and does not distinguish a trip generation rate and SDC for single family dwellings within destination resorts. The SDC rate in the table has been applied to single family dwellings both within and outside of destination resorts. This discrepancy has raised two issues: 1) Should the County amend the SDC rate table to include a separate trip generation rate and corresponding SDC for single family dwellings within destination resorts? 2) Should applicants that paid the single family dwelling SDC rate for dwellings within destination resorts qualify for a reimbursement? Staff Recommendation: Staff recommends that the trip generation rate for single family dwellings within destination resorts used for calculating SDC charges should correspond with the figures used in the trip growth calculation in the methodology report for single family dwellings within destination resorts and that such trip generation rate and corresponding SDC should be established. Attached is a draft resolution that would amend the original SDC resolution to add the destination resort rate. SDC — Destination Resorts Page 2 of 2 Staff further recommends that the county not reimburse any SDC funds already collected. The SDC's paid were not in error — they were paid at the rate established in the original SDC resolution. The original SDC resolution has not been appealed nor has there been an appeal of the SDC's already collected. The table below shows the current SDC rate for SF detached housing and the proposed destination resort rate: ITE code Customer Type Land Use Description Peak- Hour Trips Pass -By Trip Factor Adjusted P_H Ts SDC Units 210 SF Detached Single family detached housing 1.01 1 1.01 $3,583 DU N/A0.32 Destination Resort, SF Detached Single family. detached housing within a destination resort ` ;` 1 0.32 ' - " $1,136" DU To date (from October 1, 2008) the County has collected SDC's on approximately 48 dwelling units in destination resorts (see attached listing). DESCHUTES COUNTY LEGAL COUNSEL MARK E PILLIOD Legal Counsel PRIVILEGED ATTORNEY- CLIENT COMMUNICATION — NOT TO BE DISCLOSED S Ext. 6625 TO: Board of Commissioners DATE: May 19, 2010 RE: Systems Development Charge (SDC) FILE NO.: On April 2 the Director of the Road Department submitted a report to the Board discussing what appeared to be an oversight in the adopted transportation system development study (Methodology Report) underlying the County's system development charge SDC). The comprehensive list of uses contained in the Methodology Report includes a trip generation factor and proposed SDC for single family dwellings, but does not distinguish between single family dwellings located within and outside of destination resorts. This, despite the fact that elsewhere the Methodology Report draws a distinction over trip generation for single family dwellings within and outside destination resorts. The Director recommended that the Board approve a resolution, amending the original adoptive resolution, to add a separate use category, trip generation rate and charge for single family residential uses located within destination resorts. The Board decided not to take action and asked that the matter be rescheduled for future consideration. The purpose of this memorandum is to advise the Board on available options. The first option is to approve a form of resolution similar to that recommended by the Director of the Road Department. While single family detached residential outside of destination resorts would pay roughly $3584, single family residential units inside of destination resorts would pay 32% of such amount. This percentage is an extrapolation from material contained in the Methodology Report. The Director's recommendation did not distinguish among the types of residential units (attached or detached, single family or multi -family) within destination resorts. Any amending resolution should anticipate and address whether there should be additional rates for single family residential uses in destination resorts, depending on whether they are detached or multi -family units. The Director had recommended that any new rates would apply prospectively from the date of the Board adopts an amending resolution. The second option would be to leave the existing system development charge unchanged. The effect would be to require the same amount for all single family residential uses regardless of their location in a destination resort. To consider the effect of this option, one needs to consider the mechanics of the SDC resolution. Page 1 of 3 The SDC resolution, section 4(B) provides: The Transportation System Development Charges (SDC's) shall be determined as follows: (1) For those land -use categories which are specifically identified in the methodology report adopted pursuant to this resolution, the SDC amount shall be determined as identified in the Methodology Report. (2) For land -use categories for which no trip generation rate is included in the methodology report, the Director shall use the land -use category identified in the Methodology Report that is most similar in trip generation, and may consider seasonal and/or cyclical variations to adjust peak hour trip rates. An applicant who does not agree with the Director's decision may appeal this decision as outlined in Section 12 of this resolution " The Director of the Road Department first determines whether to apply the particular land use category specifically identified in the methodology. If so, the Director applies that particular rate. Where the particular land use category and its associated trip generation rate is not included in the methodology report, then the Director applies the land use category identified in the methodology that is most similar in terms of trip generation and may, at that time consider seasonal and/or cyclical variations to adjust the peak hour trip rate. Assuming an applicant were to take the position that the reference on the comprehensive table of uses to detached single family residential units was not intended to include residential units in destination resorts, or if they were dissatisfied with the Director's consideration of seasonal and/or cyclical variations to adjust peak hour trip rates, they could appeal the Director's decision to the Board. Ultimately, the question to answer is what the Board intended when it adopted the SDC. To address this question, one must first determine whether the text of what was adopted is ambiguous. The description of single family detached residential dwellings is not inherently arnbiguous. The Methodology Report, adopted as part of the resolution, consists of a narrative description of data, information and assumptions used to calculate an SDC based upon peak -hour trips generated by various types of development. This Report includes summaries of meetings of the Stakeholders Advisory Committee, whose members represented various development interests. Most importantly this Report contains a comprehensive list of land uses, which, as it pertains here, refers simply to single family residential (SF detached). While this list of uses includes distinct types of residential development: apartment, condo/townhouse, mobile home, elderly housing, hotel and motel, besides single family detached, the list contains no specific distinction for uses within destination resorts. The Methodology Report also includes a table entitled "Trip Growth Estimated from Residential Development and Population Change." This table distinguishes among Page 2 of 3 three types of residential development, single family detached, multi -family and destination resorts. It also demonstrates that from the standpoint of existing and predicted future development, while detached single family residential development currently generates and is predicted to generate in the future slightly more than one peak hour trip per unit (101%), a residential dwelling in a destination resort generates and is predicted to generate approximately one-third (1/3) peak hour trips per unit (32%). This table might be used to support the conclusion that the impact from each dwelling unit in a destination resort is or should be proportionately less than single family dwellings outside of destination resorts and that the corresponding SDC should similarly be reduced. This table might also imply that single family residential uses in destination resorts are not otherwise included in the comprehensive list of uses. The problem with concluding that the distinction used in this Table between single family residential and destination resorts, is that the latter does not specify the nature of development in destination resorts. In other words this reference to destination resorts, could mean detached or attached dwellings or both. The comprehensive use table draws a distinction between detached and multi -family residential. If the comprehensive use table were to be adjusted to distinguish residential development in destination resorts, then it might need to further specify detached and attached dwelling units and single-family and multi -family units. Some members of the Stakeholders Advisory Committee, particularly those who were representing development interests probably anticipated the comprehensive table of uses would reflect a distinct trip generation rate for single family residential uses in destination resorts. Likewise, the consultant who prepared the methodology might have intended to carry forward in the recommended SDC charge a distinction between estimated future development inside and outside destination resorts. However, the expectations of the participants in the advisory committee are not reflected in the finally adopted SDC, including the Methodology Report, and cannot be used to insert a new, distinct use category for single family residential development in destination resorts. As an alternative to arguing for a new use category, an applicant could apply for an alternative rate of SDC under Section 4(C). They would need to establish that the impact on County capital improvements, i.e., roads, resulting from their development is less than the fee for single family residential uses outside of destination resorts. Using data, information and assumptions that are consistent with those used to establish the SDC, an applicant would need to present from an independent source the following: a local study supported by an adequate database; using a generally accepted methodology and based upon generally accepted standard sources of information relating to facilities planning, cost analysis and demographics; a demonstration that the number of peak hour trips is at least ten (10%) percent less than the number set forth in the Methodology; and the number of peak hour trips would need to be documented by a registered engineer. The Director would determine whether the submitted information is sufficient to support the conclusion that an alternative rate be applied. An applicant who is dissatisfied with the Director's decision could appeal to the Board. Page 3 of 3 REVIEWED LEGAL COUNSEL For Recording Stamp Only BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COLTNTY, OREGON A Resolution amending Resolution 2008-059 to add a Trip Generation Category for Destination Resort Single Family Dwellings to the Transportation System Development Charges * UTION NO. 2010-< > WHEREAS, the Deschutes County Board of County Comm ssioners (`Board". adopted Resolut on 2008-059 on July 23, 2008 establishing a transportation system development charge ("SDC") to help fi nd transportation projects that are necessary to serve the e ."* and gm i'N;iith-related transportati tiineeds in the unincorporated areas of the county; and WHEREAS, Resolution 2008-059 approved and adopted a prepared by FCS Group, dated March 2008, ..(herein "SDC Meth transportation SDC; and sportation System Development Study, ") as the basis for establishing a WHEREAS, Resolution 2008-059 establi land uses, including residential; and ation rates and=corresponding SDC's for various WHEREAS, trip gen, ures for single family (SF)dwellings located either within or outside destination resorts was ide ied ed in the SDC Methodology for the trip growth calculation and the recommended SDC; an WHEREAS, the trip generation rate table in the SDC Methodology includes a trip generation rate for all SF dwellings, but does not distinguish a trip generation rate and SDC for SF dwellings within destination resorts; and WHEREAS, the trip generation rate for SF dwellings within destination resorts used for calculating SDC charges should correspond with the figures used in the trip growth calculation in the methodology report for SF dwellings within destination resorts and that such trip generation rate and a corresponding SDC should be established ; now, therefore, BE IT RESOLVED 13 ` THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGONi 4sfollows:`` Section 1. The table on pages 9 and 10 of Exhibit "A", Resolution 2008-059, shall be amended to g dd the following category: ITE code Customer Type Land Use Description Peak -Hour Trips Pass -By Trip Factor Adjusted P -H Ts SDC Unit: Destination Resort, SF Detached Single family detached housing within a destination resort 0.32 1 0.32 $1,136 DU Page 1 of 2 — Resolution 2010-< > Section 2. FULL FORCE AND EFFECT. Except as provided in this resolution, Resolution 2008-059 remains in full force and effect. Section 3. EFFECTIVE. This resolution is effective immediately upon adoption by the Board of County Commissioners. /// DATED this day of , 2010. ATTEST: Recording Secretary BOARD OF Ci)LINTY C !IVIISSIONERS OF DESGMTES COUNTY OREGON ENI�II:R. LUI�r Chair ALAN UNGER ilChair ?AMY $CRY, Commissioner Page 2 of 2 — Resolution 2010-< >