TO: Mayor and City Council
THROUGH: Krishna Namburi, City Manager
FROM: Kristin Retherford, Community Planning and Development Director
SUBJECT:
title
Amendments to the Stormwater, Water, and Wastewater System Development Charge Eligible Project Lists.
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
Result Area(s): Safe, Reliable and Efficient Infrastructure
end
SUMMARY:
summary
System Development Charges (SDCs) fund the construction of parks, transportation, water, wastewater, and stormwater infrastructure needed to serve developable land. Oregon Revised Statutes 223.309 requires the City to maintain project lists (“309 Lists”) identifying eligible SDC-funded projects. Resolution 2026-4 updates the Water, Sewer and Stormwater 309 Lists to reflect changing development patterns and provide funding eligibility for necessary public improvements.
end
ISSUE:
Shall City Council adopt Resolution No. 2026-4, amending the Stormwater, Water, and Wastewater System Development Charges Eligible Project Lists to establish eligibility of funding for infrastructure projects?
RECOMMENDATION:
recommendation
Adopt Resolution No. 2026-4, amending the Stormwater, Water, and Wastewater System Development Charges Eligible Project Lists to establish eligibility of funding for infrastructure projects.
body
FACTS AND FINDINGS:
Resolution 2026-4 (Attachment 1) amends the Stormwater, Water, and Wastewater 309 Lists shown in Table 8 of the SDC methodology and Attachment 2 of Resolution 2002-142 adopted under Resolution No. 2019-7 by City Council on February 25, 2019, and as amended under Resolution No. 2019-25, Resolution No. 2020-6, Resolution No. 2021-1, Resolution No. 2021-30, Resolution No. 2021-32, Resolution No. 2022-1, and Resolution 2024-7.
Modification and additions to the Stormwater 309 List in Attachment 2 of Resolution 2002-142 (Resolution Exhibit 1 - Stormwater: Pringle Creek Basin and Glenn Gibson Basin) are explained as follows:
a. Pringle Creek Basin Project Number PCB58 - A stormwater main was required in 27th Avenue SE, north of Marietta Drive SE, as a condition of approval for Subdivision Case No. SUB-UGA22-06. Based on an updated engineering analysis reviewed and approved by the City Engineer, the SDC-Eligibility ratio has been modified to 59% to reflect the difference between the pipe size required to serve the development and the larger pipe needed to accommodate additional development in the surrounding area. The estimated cost has been updated to reflect preliminary costs provided by the developer’s engineers after construction. The revised SDC cost and eligibility are incorporated into the Stormwater 309 List in accordance with Administrative Rule 109-200.
b. Glenn Gibson Basin Project Number GGB24 - The Goldcrest Brook Pipe Reroute project involves construction of stormwater mains and detention facilities between Toucan Street NW and Linwood Street NW to intercept and detain stormwater currently discharging directly to Goldcrest Brook, a small urban stream in West Salem experiencing severe erosion due to hydromodification and peak flows that exceed existing channel capacity. Based on an engineering analysis reviewed and approved by the City Engineer, and consistent with the methodology outlined in the 2002 CH2MHill Stormwater System Development Charge Study for projects where existing and future peak flows exceed capacity, the SDC eligibility ratio has been established at 24.1% to reflect the portion of the improvement attributable to future development within the basin. The total estimated project cost is $3,215,000, and the revised SDC eligibility and cost are incorporated into the Stormwater 309 List in accordance with Administrative Rule 109-200.
The Water 309 List for Major Facilities (Resolution Exhibit 1 - Table 28) will be changed to include a project to increase the S-4 Davis Road Pump Station capacity. The pump station is located south of Davis Road in a developing area of south Salem. The growth cost is the same as the estimated cost because preliminary evaluations have determined all necessary upgrades to the pump station are to add capacity for future development.
The Water 309 List for Pipes (Resolution Exhibit 1 - Table 29) will be changed to include a 16-inch upsized water main required as a condition of multi-family development approved by Land Use Case No. UGA-SPR-ADJ-DAP-DR-PLA24-03. Pursuant to Administrative Rule 109-200, the SDC Eligibility Ratio is based on the difference between the estimated total project cost of $247,572 and the cost of an 8-inch equivalent pipe of $140,631, resulting in an SDC-eligible reimbursable amount of $107,122. This amount represents the incremental cost of upsizing the pipe to serve future development in the surrounding area beyond the needs of the subject development.
The Wastewater 309 List for Pipes (Resolution Exhibit 1 - Table 39) will include a new sewer main in Hazelgreen Drive NE (East Chemawa Basin) being constructed as a condition of multi-family development approved by Land Use Case No. UGA-SPR-ADJ-DAP-DR-PLA24-03. Pursuant to Administrative Rule 109-200, the SDC Eligibility Ratio is based on the estimated total project cost of $459,852 and the cost of an 8-inch equivalent pipe at a standard depth estimated to be $268,100, resulting in an SDC-eligible reimbursable amount of $191,752. This amount represents the incremental cost of constructing the pipe at a depth necessary to serve future development in the surrounding area beyond the standard depth needed to serve the subject development.
Staff recommends approval of Resolution 2026-4 in order to specify SDC eligibility of infrastructure projects required for new development.
BACKGROUND:
Oregon Revised Statutes (ORS) Chapter 223 authorizes the City of Salem to charge System Development Charges (SDCs) on new development to recover all or part of the cost of building certain infrastructure needed to serve developable land. SDC funds may only be expended on capital improvements associated with the system(s) for which the fees are collected.
Under ORS 223.309, the City is required to prepare a master plan and list of projects that are to be funded with these SDCs. These lists are commonly referred to as the “309 Lists.” Only projects on the 309 Lists can be funded with SDCs. However, the 309 Lists can be amended at any time by City Council to add or remove projects or make other modifications.
City Council adopted SDC methodologies for Parks, Transportation, Water, Sewer, and Stormwater under Resolution No. 2019-7 and amended under Resolution No. 2019-25, Resolution No. 2020-6, Resolution 2021-1, Resolution No. 2021-30, Resolution No. 2021-32, Resolution No. 2022-1, and Resolution No. 2024-7. The 309 Lists adopted under Resolution 2019-7 are based on a projected development pattern as depicted in the Buildable Lands Opportunity Boundary in Figure 1 of the methodology. As development patterns change, the 309 Lists are customarily modified to ensure that infrastructure needed to serve new developments is eligible for SDC credits as appropriate.
Robin Dalke, CFM
Development Services Division Manager
Attachments:
1. Resolution No. 2026-4
2. Resolution No. 2026-4, Exhibit 1