HomeMy WebLinkAboutSDC Update Memo
MEMORANDUM
DATE: April 25, 2008
TO: Dave Kanner, County Administrator
FROM: Tom Blust, Director
RE: System Development Charge Work Session
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At the SDC work session with the Board on March 26th, several issues were raised that need to
be resolved prior to putting together the draft SDC ordinance. The public hearing on the SDC
will be held at the regular Board meeting on May 28th.
SDC issues:
1. Timing of the SDC fee collection. At an earlier stakeholder advisory committee meeting
COBA proposed that the county collect the SDC at the time of issuance of a certificate of
occupancy rather than at the issuance of a building permit. COBA cited their reasons for this
proposal are a more beneficial cash flow for the builders and better timing of the payment to
coincide with the actual additional demand for system capacity. The stakeholder committee
agreed with this proposal, subject to the County’s ability to efficiently administer the policy.
Recommendation: Staff (CDD and Road) recommends that the SDC fees be collected at the
time of issuance of a building permit. This allows easier administration of the collection and
provides the County with a better “hook” to ensure that the fees are paid.
2. Phasing of SDC fee amount. COBA has asked that the SDC fees be phased-in over a period
of time to help reduce the initial fiscal impacts to the builders.
Recommendation: Staff strongly recommends against a phased-in approach. Under the
proposed methodology, the SDC fee ($3,549 per peak hour trip) covers only a portion of the
project cost needs in the county over the next 20 years. Collecting fees at a lower rate will only
serve to delay the County’s ability to meet the demand for system capacity.
3. La Pine SDC. In 2006, the County established a SDC in the south county (area south of the
La Pine State Recreation Road) to help fund 4 specific traffic signal projects. Much of this area
has since been incorporated into the City of La Pine. The County’s SDC ordinance does not
apply within the incorporated area. The City of La Pine has not yet adopted a SDC. Adoption of
the proposed rural area SDC will create an overlap or double SDC for the unincorporated area
south of the La Pine State Recreation Road.
Recommendation: Staff recommends that the La Pine SDC be repealed. Further discussions are
needed with the City of La Pine with regard to their adoption of a SDC and what the County’s
contributions will be toward future traffic signal funding.