Share to Facebook Share to Twitter Bookmark and Share
File #: 19-73    Version: 1
Type: Ordinance First Reading Status: Second Reading
File created: 1/31/2019 In control: City Council
On agenda: 2/25/2019 Final action:
Title: Proposed amendments to Salem Revised Code pertaining to General Assessment Procedures (Chapter 21), Development Fee (Chapter 41), Water (Chapter 72), and Wastewater (Chapter 73). Ward(s): All Wards Councilor(s): All Councilors Neighborhood(s): All Neighborhoods Result Area(s): Good Governance; Natural Environment Stewardship; Safe, Reliable, and Efficient Infrastructure; Strong and Diverse Economy; Welcoming and Livable Community.
Attachments: 1. SDC Ordinance 01-19, 2. Exhibit A to Ordinance Bill No 1-19
Related files: 19-123

TO:                      Mayor and City Council   

THROUGH:                      Steve Powers, City Manager   

FROM:                      Peter Fernandez, PE, Public Works Director 

                                          

SUBJECT:

title

 

Proposed amendments to Salem Revised Code pertaining to General Assessment Procedures (Chapter 21), Development Fee (Chapter 41), Water (Chapter 72), and Wastewater (Chapter 73). 

 

Ward(s): All Wards    

Councilor(s): All Councilors    

Neighborhood(s):  All Neighborhoods    

Result Area(s): Good Governance; Natural Environment Stewardship; Safe, Reliable, and Efficient Infrastructure; Strong and Diverse Economy; Welcoming and Livable Community. 

end

 

ISSUE:

 

Shall Council conduct first reading Ordinance Bill No. 01-19 (Attachment 1), which amends Salem Revised Code (SRC) Chapters 21, 41, 72, 73 related to a System Development Charge Methodology Update, and advance to second reading for enactment?  

 

 

RECOMMENDATION:

recommendation

 

Conduct first reading Ordinance Bill No. 01-19, which amends Salem Revised Code (SRC) Chapters 21, 41, 72, 73 related to a System Development Charge Methodology Update, and advance to second reading for enactment.  

body

 

SUMMARY:

 

Ordinance 01-19 implements a number of policy changes related to System Development Charges (SDCs) as proposed in an update to SDC Methodologies under Resolution 2019-7.

 

 

FACTS AND FINDINGS:

 

As part of the SDC Methodology update under Resolution 2019-7, a number of policy changes are required to the SRC as described below:

 

1.                     General Assessment Procedures (Chapter 21) - Water and wastewater connection fees are being eliminated and replaced by an increase to the Water and Wastewater SDC Reimbursement Fees.

 

2.                     Development Fee (Chapter 41)

 

a.                     The SDC exemption for low-income housing is being broadened to include all housing units guaranteed to remain affordable for households with an income at or below 80 percent of the area median income. This change maximizes the eligibility of low-income housing projects that can be exempted from SDCs.

 

b.                     Accessory dwelling units are exempted from SDCs for a trial period of five years.

 

c.                     The limitation to SDC credits for water, sewer, and stormwater lines constructed within or abutting a development site are clarified.

 

d.                     Other minor modifications are proposed that have been compiled over time as staff has discovered, during the course of business, inconsistencies or missing information in the SRC.

 

3.                     Water (Chapter 72) and Wastewater (Chapter 73) - Remove references to connection fees and SRC Chapter 21.

 

City Council may proceed second reading for enactment or decline to advance the proposed ordinance.  

 

BACKGROUND:

 

Ordinance 01-19 implements a number policy changes related to System Development Charges (SDCs) as proposed in an update to SDC Methodologies under Resolution 2019-7. The methodology update process has been overseen by a seven-member SDC Methodology Committee that included: two City Councilors, a member of the Planning Commission, a member of the Salem Parks and Recreation Advisory Board, and three members of the public with experience in development and public infrastructure.

 

The policy changes recommended by the SDC Methodology Committee are summarized below:

 

1.                     Connection fees collected pursuant to SRC Chapter 21 are a cost-prohibitive fee required in unique circumstances that has often been a disincentive for development in older neighborhoods. Ordinance 01-19 eliminates connection fees without reducing revenues through the addition of a modest SDC increase for all projects.

 

2.                     SDC exemptions are being expanded to include additional low-income housing and a five-year exemption for new accessory dwelling units, which terminates in July 2024.

 

3.                     Other minor modifications that have been compiled over time as staff has discovered, during the course of business, inconsistencies or missing information in the SRC. 

 

The SDC Methodology Committee recommended that staff investigate options for offering exemptions for residential developments in the downtown area. Staff does not recommend an exemption for residential developments at this time because insufficient data are available to determine the benefits and impacts of an exemption. In addition, the current exemption for preexisting development in SRC 41.150(a)(6) provides a significant reduction in Transportation SDCs for most downtown projects.

 

                     Robert D. Chandler, PhD, PE     

                     Assistant Public Works Director    

 

Attachments:

1.                     Ordinance 01-19

2.                     Exhibit A - SRC Amendments