Work Session Agenda Bill

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1 Work Session Agenda Bill Date: April 1, 2019 To: From: Russ Axelrod, Mayor Members, West Linn City Council Morgan Coffie, Management Analyst Through: Lance Calvert, P.E., Public Works Director/City Engineer LEC Eileen Stein, City Manager ES Subject: Transportation System Development Charge Update Purpose To provide the City Council with a presentation from FCS Group which has prepared a draft Transportation System Development Charge (SDC) update for the City to be adopted at a future meeting. Question(s) for Council: Does the City of West Linn wish to update their Transportation System Development Charge? Background & Discussion: Transportation System Development Charges are fees paid by development or redevelopment that are used by the City to fund transportation system capital projects. The City updated its Transportation System Development Charge methodology in March of 2015 to better account for bike and pedestrian projects. Since the City updated its Transportation System Plan in 2016 it is now necessary to update the Transportation SDC to reflect the current list of projects in the plan. The City has hired FCS Group to prepare the attached report to update the SDCs. The Transportation Advisory Board (TAB) reviewed FCS Group s presentation at their meeting on March 20, 2019 and unanimously recommended approval of the update. Once adopted, the updated Transportation System Development Charges will become part of the City s Master Fee Schedule. Council Options: 1. Accept the draft document and direct staff to post the draft for a 60 day public comment period and to prepare a resolution for future Council approval. 2. Direct staff to work with consultant to further refine the updated SDCs. Staff Recommendation: Accept the draft document and direct staff to post the draft for the required 60 day public comment period for future adoption to allow the revised SDC fees to go into effect July 1, 2019 with the Master Fee Schedule. Attachments: 1. Draft Transportation System Development Charge Report 2. Presentation from FCS Group

2 Transportation System Development Charge Study Draft Methodology Report October, 2018 Washington th Avenue NE, Ste. D215 Redmond, WA Oregon 4000 Kruse Way Pl., Bldg. 1, Ste 220 Lake Oswego, OR Colorado PO Box Boulder, CO

3 October, 2018 Transportation System Development Charge Study page i TABLE OF CONTENTS Table of Contents... i Section I. Background... 1 I.A. Policy... 1 I.B. Project... 1 Section II. SDC Calculation... 3 II.A. Growth Calculation... 3 II.A.1. Expected Growth Levels... 3 II.B. Reimbursement Fee Cost Basis... 3 II.B.1. Eligible Reimbursement Costs... 4 II.B.2. Reimbursement Fee per ADPT... 4 II.C. Improvement Fee Cost Basis... 4 II.C.1. Eligible Improvement Costs... 4 II.C.2. Improvement Fee per ADPT... 5 II.D. Administrative Fee Cost Fee Basis... 6 II.E. SDC Costs to Development... 6 II.E.1. New ADPTs per Unit of Development... 6 II.E.2. SDC per Unit of Development... 6 Section III. Implementation... 8 III.A. SDC Cost per Unit of Development... 8 III.B. Credits, Exemptions, and Discounts... 8 III.B.1. Credits... 8 III.B.2. Exemptions... 9 III.C. Indexing... 9 III.D. Summary and Comparison... 9 Section IV. Appendices... 13

4 Transportation System Development Charge Study October, 2018 page 1 Section I. BACKGROUND This section describes the policy context and project scope upon which the body of this report is based. I.A. POLICY Oregon Revised Statutes (ORS) to authorize local governments to establish system development charges (SDCs). These are one-time fees on new development paid at the time of development. SDCs are intended to recover a fair share of the cost of existing and planned facilities that provide capacity to serve future growth. ORS defines two components of an SDC: A reimbursement fee that is designed to recover costs associated with capital improvements already constructed, or under construction when the fee is established, for which the local government determines that capacity exists An improvement fee that is designed to recover costs associated with capital improvements to be constructed ORS (1) states, in part, that a reimbursement fee must be based on the value of unused capacity available to future system users or the cost of existing facilities and must account for prior contributions by existing users and any gifted or grant-funded facilities. The calculation must promote the objective of future system users contributing no more than an equitable share to the cost of existing facilities. A reimbursement fee may be spent on any capital improvement related to the system for which it is being charged (whether cash-financed or debt-financed) and on the costs of compliance with Oregon s SDC law. ORS (2) states, in part, that an improvement fee must be calculated to include only the cost of projected capital improvements needed to increase system capacity for future users. In other words, the cost of planned projects that correct existing deficiencies or do not otherwise increase capacity for future users may not be included in the improvement fee calculation. An improvement fee may be spent only on capital improvements (or portions thereof) that increase the capacity of the system for which it is being charged (whether cash-financed or debt-financed) and on the costs of compliance with Oregon s SDC law. I.B. PROJECT The City last revised its transportation SDC methodology in In 2017, the City engaged FCS GROUP to update its transportation SDCs. We approached this project in three steps:

5 Transportation System Development Charge Study October, 2018 page 2 Policy Review. In this step, we worked with City staff to identify and agree on the approach to be used and the components to be included in the analysis. The City s primary interest was to update the eligible project list and growth projections based on the 2016 Transportation System Plan (TSP) update. Technical Analysis. In this step, we worked with City staff to isolate the recoverable portion of existing facilities costs as well as planned capacity increasing facilities costs to calculate draft SDC rates. Draft Methodology Report Preparation. In this step, we documented the calculation of the proposed SDCs included in this report.

6 Transportation System Development Charge Study October, 2018 page 3 Section II. SDC CALCULATION This section provides a description of the transportation SDC calculation. The following tasks were performed: We estimated demand growth in average daily person trip-ends (ADPTs). With staff input, we identified the eligible reimbursement fee and improvement fee cost bases. We calculated each SDC component per trip-end and unit of development. II.A. GROWTH CALCULATION West Linn s prior transportation SDC utilized an average daily person trip-end (ADPT) basis. ADPTs include non-motor vehicle trips that utilize bicycle, pedestrian, and transit facilities. This update to West Linn s transportation SDC uses the same approach. II.A.1. Expected Growth Levels To determine the forecasted increase in ADPTs in West Linn, we used growth estimates provided in the City s 2016 TSP update. Using the figures provided in the TSP, we projected an increase of 77,866 ADPT as shown in Exhibit 1. The increase in trips equates to approximately 0.91% annual growth. Exhibit 1: Projected Growth in Average Daily Person Trip Ends Land Use Change Percent Change Households 152, ,082 28, % Employment 98, ,409 49, % Total 250, ,492 77, % New person trips as a % of future person trips 23.7% Source: 2016 West Linn Transportation System Plan This increase of 77,866 ADPTs will serve as the denominator in the improvement fee and reimbursement fee calculations. This is the total number of ADPTs attributed to growth between 2015 and 2040, which is the period of growth that the projects in the TSP are intended to serve. II.B. REIMBURSEMENT FEE COST BASIS The reimbursement fee portion of the SDC is based on the estimated cost of transportation system capacity that is available for future users. The current estimated value of West Linn s available capacity in the transportation system was determined based on the historical cost of the City s transportation projects that were (1) completed in the last ten years and (2) funded with SDC improvement fees (indicating the creation of capacity of future users).

7 Transportation System Development Charge Study October, 2018 page 4 II.B.1. Eligible Reimbursement Costs The reimbursement fee is determined by summing SDC historical credits and SDC expenditures and determining the unused capacity of projects constructed with that money. For this analysis, we assume the capacity of any project built with SDC monies will be absorbed in 20 years. The eligible reimbursement cost basis for motor vehicle projects is $786,380, while the eligible reimbursement cost basis for bicycle and pedestrian projects is $91,389. These figures are summarized in Exhibit 2 and calculated based on information provided in Appendix A. Exhibit 2: SDC Expenditures Eligible Total Costs Costs Street Improvement Fee Expenditures $944,352 $786,380 Bike/Ped Improvement Fee Expenditures $100,040 $91,389 Source: City staff input compiled by FCS GROUP II.B.2. Reimbursement Fee per ADPT The reimbursement fee per ADPT is calculated by dividing the eligible cost basis by forecasted growth in ADPT. The outcome, reimbursement fee per ADPT, is summarized in Exhibit 3 below. Exhibit 3: Calculated Reimbursement Fee Street Bike/Ped Adjusted Reimbursement fee Eligible Expenses $786,380 $91,389 Growth in ADPT ( ) 77,866 Reimbursement fee per ADPT $10.10 $1.17 Source: City staff input compiled by FCS GROUP II.C. IMPROVEMENT FEE COST BASIS The improvement fee portion of the SDC is based on a specific list of planned capacity-increasing capital improvements. The portion of each project that is attributable to growth is determined and the improvement fee is calculated by dividing the total cost of growth-related projects, and portions thereof, by the projected increase in ADPTs. II.C.1. Eligible Improvement Costs In this update of West Linn s SDC methodology, the project list is based on the 2016 West Linn Transportation System Plan (TSP). The TSP provides a list of capital projects needed to meet 2040 transportation conditions. The TSP project list was adjusted to account for non-local funding sources, revenues from the passage of a 2018 bond package, and improvements that do not increase capacity. The projects listed in the transportation capital improvement plan are eligible for SDC funding only to the extent that the projects will benefit future users rather than cure an existing deficiency. The capacity-increasing percentage of each project was identified through discussions with City staff and the growth calculation in Section A.1.

8 Transportation System Development Charge Study October, 2018 page 5 After adjusting for inflation and deleting projects that have already been completed, facility improvements total $67,203,000, with SDC-eligible costs of $15,929,955. The SDC-eligible facility costs include $7,962,963 in motor vehicle facilities, $2,703,468 in bicycle facilities, $4,789,440 in pedestrian facilities, and $474,085 for the construction of a new public works building. See Exhibit 4 for summary costs. Exhibit 4: Improvement Fee Cost Basis Summary by Mode Project Type Local Cost in 2018 Growth Share SDC-Eligible Cost Pedestrian $20,205, % $4,789,440 Bicycle $11,405, % $2,703,468 Motor Vehicle $33,593, % $7,962,963 Public Works Building $2,000, % $474,085 Total $67,203, % $15,929,955 Source: 2016 West Linn Transportation System Plan, CIP, staff input Note: Numbers may not appear to add due to rounding It should be noted that West Linn s 2016 TSP update includes a less aggressive project list than the project list used to calculate the 2014 update of the city s transportation SDC. At that time, facility improvements totaled $116,590,416, with SDC-eligible costs of $27,052,929, a difference of $49.4 million and $11.1 million respectively. II.C.2. Improvement Fee per ADPT The improvement fee per ADPT is calculated using the following formula: Eligible Cost Existing SDC Fund Balance = Improvement Fee per ADPT Growth in ADPT SDC-eligible costs are capital improvement costs which will serve future growth, as shown in Exhibit 4. The transportation improvement SDC fund balance that has been collected by the City but not yet spent is then subtracted from the SDC-eligible costs in order to avoid double-charging. Finally, that number is divided by growth in ADPTs. The outcome, improvement fee per ADPT, is summarized in Exhibit 5 below. Exhibit 5: Improvement Costs Pedestrian/ Bicycle Projects Motor Vehicle Projects Transit Projects Eligible Costs $7,492,908 $8,437,047 $0 less SDC Current Fund Balance $556,084 $1,024,862 $0 Subtotal $6,936,824 $7,412,185 $0 Growth in ADPT ( ) 77,866 Proposed SDC per ADPT $89.09 $95.19 $0.00 Source: 2016 West Linn Transportation System Plan, CIP

9 Transportation System Development Charge Study October, 2018 page 6 II.D. ADMINISTRATIVE FEE COST FEE BASIS ORS (5) authorizes the expenditure of SDCs on the costs of complying with the provisions of ORS to , including the costs of developing system development charge methodologies and providing an annual accounting of system development charge expenditures. After receiving estimates of time spent by City staff for the administration of SDCs this element of the transportation SDC was added. As seen in Exhibit 6, West Linn City staff estimate that $20,000 of staff time is dedicated to the administration of SDCs annually, meaning that over the 25-year study timeframe $500,000 of eligible administrative expenses are incurred by West Linn. Dividing that figure by the increase in ADPTs during the planning period results in an administrative fee of $6.42 per ADPT. Exhibit 6: SDC Administrative Cost Basis Public Works Support Services Dept. Personnel Budget $1,194,000 FTEs 9 Average Budget Per FTE $133,000 3 Employees at approximately 5% of time $20,000 Total Cost ( ) $500,000 ADPT Added ( ) 77,866 Admin Fee Component Per ADPT $6.42 Source: City staff input II.E. SDC COSTS TO DEVELOPMENT In order to translate SDC costs per ADPT to SDC costs per unit of development, we must determine the number of ADPTs generated by each type of development. II.E.1. New ADPTs per Unit of Development The Institute of Transportation Engineers (ITE) Trip Generation Manual contains trip rates based on studies conducted nationwide and provides the base data of unadjusted counts of trips generated by various types of land use. The trip rates include all traffic entering or leaving a location but does not account for traffic that passes by or interrupts a primary trip between origin and destination. We have taken the step of removing pass-by trips because they would occur regardless of development activity. We calculate the number of new ADPTs generated per day for each type of land use with the following formula: II.E.2. ITE Vehicle Trip Rate ADPT Conversion Factor (1 % Pass by Trips) = New ADPT SDC per Unit of Development The SDC per unit of development is calculated for each type of land use by multiplying the new ADPT for each land use by the SDC per ADPT. SDC per ADPT New ADPT by Land Use = SDC by Land Use

10 Transportation System Development Charge Study October, 2018 page 7 Exhibit 9 shows the individual charges per unit for each portion of the SDC. It is important to note that the Trip Generation Manual may not contain some land use categories or may not include trip rates or number of net new trips generated. For such land use categories without data, the Public Works Director/City Engineer shall use her/his judgment to calculate the transportation SDC.

11 Transportation System Development Charge Study October, 2018 page 8 Section III. IMPLEMENTATION This section summarizes the SDCs for selected ITE land use categories and discusses credits and exemptions from the West Linn transportation SDC. III.A. SDC COST PER UNIT OF DEVELOPMENT Exhibit 7 displays the total transportation SDC per ADPT broken down by each component. Exhibit 7: West Linn Transportation SDC Cost Per ADPT Improvement Fee Components Reimbursement Fee Components Mode Pedestrian / Bicycle Projects Motor Vehicle Projects Pedestrian / Bicycle SDC Expenditures Motor Vehicle SDC Expenditures Administrative Fee Component Total Eligible Costs $7,492,908 $8,437,047 $91,389 $786,380 $500,000 $17,307,724 SDC Fund Balance ($556,084) ($1,024,862) $0 $0 $0 ($1,580,946) Subtotal $6,936,824 $7,412,185 $91,389 $786,380 $500,000 $15,726,778 ADPT 77,866 Proposed SDC Per ADPT $89.09 $95.19 $1.17 $10.10 $6.42 $ Source: Previous Tables III.B. CREDITS, EXEMPTIONS, AND DISCOUNTS The City of West Linn will continue to establish local policies for issuing credits, exemptions, annual adjustments, and other administrative procedures. III.B.1. Credits A credit is a reduction in the amount of the SDC for a specific development. ORS requires that credit be allowed for the construction of a qualified public improvement which: is required as a condition of development approval; is identified in the City s capital improvements program; and either is not located on or contiguous to property that is the subject of development approval, or is located on or contiguous to such property and is required to be built larger or with greater capacity than is necessary for the particular development project. The credit for a qualified public improvement may only be applied against an SDC for the same type of improvement (e.g., a transportation improvement can only be used for a credit for a future transportation SDC). Additionally, a credit must be granted only for the cost of that portion of an improvement which exceeds the minimum standard facility size or capacity needed to serve the particular project up to the amount of the improvement fee. For multi-phase projects, any excess credit may be applied against SDCs that accrue in subsequent phases of the original development project.

12 Transportation System Development Charge Study October, 2018 page 9 In addition to these required credits, the City may provide a greater credit, establish a system providing for the transferability of credits, provide a credit for a capital improvement not identified in the City s SDC Capital Improvements Plan, or provide a share of the cost of an improvement by other means (i.e., partnerships, other City revenues, etc.). III.B.2. Exemptions The City may exempt specific classes of development such as minor additions from the requirement to pay transportation SDCs as long as the City determines that such developments do not create additional demand on the transportation system. III.C. INDEXING Oregon law (ORS ) also allows for the periodic indexing of system development charges for inflation, as long as the index used is: (A) A relevant measurement of the average change in prices or costs over an identified time period for materials, labor, real property or a combination of the three; (B) Published by a recognized organization or agency that produces the index or data source for reasons that are independent of the system development charge methodology; and (C) Incorporated as part of the established methodology or identified and adopted in a separate ordinance, resolution or order. We recommend that the City of West Linn index its charges to the Engineering News Record 20-City Average Construction Cost Index, and adjust the charges annually as per that index. There is no comparable Oregon-specific index. III.D. SUMMARY AND COMPARISON Exhibit 8 summarizes the SDC calculations and compares them with SDCs currently in effect for selected land uses. Exhibit 8: Existing and Proposed Transportation SDCs in West Linn Land Use Type Unit Current TSDC Proposed TSDC Change General Light Industrial per 1,000 ft 2 $4,752 $1,541 -$3,211 Mini-Warehouse per 1,000 ft 2 $1,702 $552 -$1,150 Single-Family Detached Housing per house $9,759 $3,165 -$6,594 Multifamily Housing (Low-Rise) per unit $6,264 $2,031 -$4,233 Public Park Acre $1,203 $390 -$813 General Office Building per 1,000 ft 2 $7,439 $2,412 -$5,026 Free-Standing Discount Superstore per 1,000 ft 2 $30,052 $9,746 -$20,307 Supermarket per 1,000 ft 2 $51,405 $16,671 -$34,735 Fast-Food Restaurant w/ Drive-Thru per 1,000 ft 2 $125,261 $40,622 -$84,640 Source: previous tables, ITE Trip Generation Manual, 10th Edition, compiled by FCS GROUP A full list of SDCs by land use is provided in Exhibit 9 below.

13 Transportation System Development Charge Study October, 2018 page 10 Exhibit 9: ITE Trips and SDC Costs per Land Use ITE Average Daily Vehicle Trips Number of Person Trips 1 % Non Pass-By Trips Non Pass- By Person Trip Ends Pedestria n/bicycle Projects Motor Vehicle Projects Pedestria n/ Bicycle Reimburs ement Cost Motor Vehicle Reimburs ement Cost Admin Fee Compone nt ITE Code Land Use Unit 110 General Light Industrial 1,000 SFGFA % 7.6 $680 $726 $9 $77 $49 $1, Industrial Park 1,000 SFGFA % 5.0 $441 $471 $6 $50 $32 $1, Manufacturing 1,000 SFGFA % 7.5 $666 $712 $9 $76 $48 $1, Mini-Warehouse 1,000 SFGFA % 2.7 $244 $260 $3 $28 $18 $ High-Cube Transload and Short-Term Storage Warehouse 1,000 SFGFA 210 Single-Family Detached Housing Dwelling Units 220 Multifamily Housing (Low-Rise) Dwelling Units 221 Multifamily Housing (Mid-Rise) Dwelling Units 222 Multifamily Housing (High-Rise) Dwelling Units 240 Mobile Home Park Dwelling Units 251 Senior Adult Housing - Detached Dwelling Units 252 Senior Adult Housing - Attached Dwelling Units 254 Assisted Living Beds 255 Continuing Care Retirement Community Occupied Units 2019 SDC Total Per Unit % 2.1 $188 $201 $2 $21 $14 $ % 15.7 $1,396 $1,492 $18 $158 $101 $3, % 10.1 $896 $957 $12 $102 $65 $2, % 10.4 $931 $994 $12 $105 $67 $2, % 15.7 $1,399 $1,495 $18 $159 $101 $3, % 8.1 $724 $773 $10 $82 $52 $1, % 6.3 $564 $603 $7 $64 $41 $1, % 2.0 $177 $189 $2 $20 $13 $ % 4.6 $408 $436 $5 $46 $29 $ Timeshare Dwelling Units 270 Residential Planned Unit Development Dwelling Units 310 Hotel Rooms 411 Public Park Acres 420 Marina Berths 430 Golf Course Holes 444 Movie Theater 1,000 SFGFA 488 Soccer Complex Fields 495 Recreational Community Center 1,000 SFGFA 520 Elementary School 1,000 SFGFA 522 Middle School/Junior High School 1,000 SFGFA 530 High School 1,000 SFGFA % 4.0 $355 $379 $5 $40 $26 $ % 13.6 $1,208 $1,291 $16 $137 $87 $2, % 11.7 $1,044 $1,115 $14 $118 $75 $2, % 30.1 $2,684 $2,868 $35 $304 $193 $6, % 1.9 $172 $184 $2 $20 $12 $ % 4.4 $388 $415 $5 $44 $28 $ % 27.8 $2,475 $2,645 $33 $281 $178 $5, % $12,223 $13,061 $161 $1,386 $881 $27, % $16,897 $18,055 $223 $1,916 $1,218 $38, % 37.9 $3,375 $3,607 $44 $383 $243 $7, % 24.8 $2,208 $2,360 $29 $250 $159 $5, % 25.6 $2,278 $2,434 $30 $258 $164 $5, % 33.6 $2,990 $3,195 $39 $339 $216 $6,779

14 Transportation System Development Charge Study October, 2018 page 11 ITE Code Land Use Unit 540 Junior/Community College 1,000 SFGFA 560 Church 1,000 SFGFA 565 Day Care Center 1,000 SFGFA 566 Cemetery Acres 590 Library 1,000 SFGFA 610 Hospital 1,000 SFGFA 620 Nursing Home Beds 710 General Office Building 1,000 SFGFA 750 Office Park 1,000 SFGFA 770 Business Park 1,000 SFGFA 813 Free-Standing Discount Superstore 1,000 SFGFA 816 Hardware/Paint Store 1,000 SFGFA 817 Nursery (Garden Center) 1,000 SFGFA 820 Shopping Center 1,000 SFGLA 840 Automobile Sales (New) 1,000 SFGFA 849 Tire Superstore 1,000 SFGFA 850 Supermarket 1,000 SFGFA 851 Convenience Market 1,000 SFGFA 857 Discount Club 1,000 SFGFA 861 Sporting Goods Superstore 1,000 SFGFA 862 Home Improvement Superstore 1,000 SFGFA 863 Electronic Superstore 1,000 SFGFA 869 Discount Home Furnishing Superstore 1,000 SFGFA 875 Department Store 1,000 SFGFA 881 Pharmacy/Drugstore with Drive-Through Window 1,000 SFGFA 882 Marijuana Dispensary 1,000 SFGFA 890 Furniture Store 1,000 SFGFA 912 Drive-in Bank 1,000 SFGFA ITE Average Daily Vehicle Trips Number of Person Trips 1 % Non Pass-By Trips Non Pass- By Person Trip Ends Pedestria n/bicycle Projects Motor Vehicle Projects Pedestria n/ Bicycle Reimburs ement Cost Motor Vehicle Reimburs ement Cost Admin Fee Compone nt 2019 SDC Total Per Unit % 44.5 $3,964 $4,236 $52 $449 $286 $8, % 29.5 $2,628 $2,808 $35 $298 $189 $5, % 60.0 $5,349 $5,715 $70 $606 $386 $12, % 12.7 $1,134 $1,212 $15 $129 $82 $2, % $10,315 $11,022 $136 $1,169 $743 $23, % 15.1 $1,343 $1,435 $18 $152 $97 $3, % 3.6 $321 $343 $4 $36 $23 $ % 11.9 $1,064 $1,137 $14 $121 $77 $2, % 25.7 $2,286 $2,442 $30 $259 $165 $5, % 15.8 $1,408 $1,504 $19 $160 $101 $3, % 48.3 $4,299 $4,593 $57 $487 $310 $9, % 7.5 $664 $709 $9 $75 $48 $1, % $12,401 $13,251 $163 $1,406 $894 $28, % 31.1 $2,773 $2,963 $37 $314 $200 $6, % 56.3 $5,019 $5,363 $66 $569 $362 $11, % 33.8 $3,015 $3,222 $40 $342 $217 $6, % 82.5 $7,353 $7,857 $97 $834 $530 $16, % $23,912 $25,551 $315 $2,711 $1,724 $54, % 38.4 $3,424 $3,658 $45 $388 $247 $7, % 58.8 $5,241 $5,600 $69 $594 $378 $11, % 21.8 $1,944 $2,077 $26 $220 $140 $4, % 26.5 $2,357 $2,518 $31 $267 $170 $5, % 37.3 $3,325 $3,553 $44 $377 $240 $7, % 39.1 $3,487 $3,726 $46 $395 $251 $7, % 44.7 $3,979 $4,252 $52 $451 $287 $9, % $37,985 $40,588 $500 $4,306 $2,738 $86, % 1.8 $157 $168 $2 $18 $11 $ % 20.6 $1,832 $1,957 $24 $208 $132 $4,153

15 Transportation System Development Charge Study October, 2018 page 12 ITE Code Land Use Unit 930 Fast Casual Restaurant 1,000 SFGFA 931 Quality Restaurant 1,000 SFGFA 932 High-Turnover (Sit-Down) Restaurant 1,000 SFGFA 933 Fast-Food Restaurant without Drive- Through Window 1,000 SFGFA 934 Fast-Food Restaurant with Drive-Through 1,000 SFGFA Window 944 Gasoline/Service Station 1,000 SFGFA 960 Super Convenience Market/Gas Station 1,000 SFGFA ITE Average Daily Vehicle Trips Number of Person Trips 1 % Non Pass-By Trips Non Pass- By Person Trip Ends Pedestria n/bicycle Projects Motor Vehicle Projects Pedestria n/ Bicycle Reimburs ement Cost Motor Vehicle Reimburs ement Cost Admin Fee Compone nt 2019 SDC Total Per Unit % $47,256 $50,494 $623 $5,357 $3,406 $107, % 47.5 $4,230 $4,520 $56 $480 $305 $9, % 46.4 $4,133 $4,416 $54 $469 $298 $9, % $42,468 $45,378 $559 $4,814 $3,061 $96, % $17,918 $19,145 $236 $2,031 $1,291 $40, % $38,971 $41,642 $513 $4,418 $2,809 $88, % $121,924 $130,280 $1,606 $13,822 $8,788 $276,420 Source: ITE Trip Generation Manual, 10th Edition, compiled by FCS GROUP Person trip conversion rate of 1.68 derived from 2009 U.S. National Household Transportation Survey findings Abbreviations CFD - commercial flights per day ODU - occupied dwelling unit SFGFA - square feet of gross floor area SFGLA - square feet of gross leasable area VFP - vehicle fueling position

16 Transportation System Development Charge Study October, 2018 page 13 Section IV. APPENDICES APPENDIX A: Historical SDC Expenditures Motor Vehicle Improvement Fee Expenditures Bike/Ped Improvement Fee Expenditures Reimbursable Motor Vehicle Cost Available Reimbursable Year Capacity Bike/Ped Cost FY 2008 $0 $0 50.0% $0 $0 FY 2009 $0 $0 55.0% $0 $0 FY 2010 $5,028 $0 60.0% $3,017 $0 FY 2011 $378 $ % $245 $159 FY 2012 $93,040 $ % $65,128 $486 FY 2013 $680 $ % $510 $209 FY 2014 $95,041 $ % $76,033 $64 FY 2015 $682,929 $13, % $580,490 $11,178 FY 2016 $58,730 $40, % $52,857 $36,354 FY 2017 $8,526 $45, % $8,100 $42,939 Totals $944,352 $100,040 $786,380 $91,389 Source: City staff input

17 City of West Linn Transportation SDC Methodology Doug Gabbard April 1, 2019

18 Agenda Background Calculation Summary Key Inputs Growth Reimbursement Fee Cost Basis Improvement Fee Cost Basis Comparison FCS GROUP Page 2

19 Key Characteristics of SDCs SDCs are one-time charges, not ongoing rates Properties which are already developed do not pay SDCs unless they redevelop SDCs are for capital only, in both their calculation and in their use SDCs include both future and existing cost components SDCs are for general facilities, not local facilities FCS GROUP Page 3

20 Legal Framework for SDCs ORS , known as the SDC Act, provides a uniform framework for the imposition of system development charges by governmental units and establishes that the charges may be used only for capital improvements. FCS GROUP Page 4

21 The SDC Calculation Reimbursement Fee Eligible value of unused capacity in existing facilities Growth in system demand Improvement Fee Eligible cost of planned capacity increasing facilities Growth in system demand = System Development Charge per unit of demand FCS GROUP Page 5

22 Summary Improvement Fee Components Reimbursement Fee Components Mode Pedestrian / Bicycle Projects Motor Vehicle Projects Pedestrian / Bicycle SDC Expenditures Motor Vehicle SDC Expenditures Administrative Fee Component Total Eligible Costs $7,492,908 $8,437,047 $91,389 $786,380 $500,000 $17,307,724 SDC Fund Balance ($556,084) ($1,024,862) $0 $0 $0 ($1,580,946) Subtotal $6,936,824 $7,412,185 $91,389 $786,380 $500,000 $15,726,778 ADPT 77,866 Proposed SDC Per ADPT $89.09 $95.19 $1.17 $10.10 $6.42 $ Source: Previous Tables FCS GROUP Page 6

23 SDC Applied ITE Code Name Unit Average Daily Vehicle Trips Person Trip Factor Person Trips Percent Non- Pass-By Trips Net Person Trips 110 General Light Industrial 1,000 SFGFA % 7.6 $1, Single-Family Detached Housing Dwelling Units % 15.7 $3, General Office Building 1,000 SFGFA % 11.9 $2, Shopping Center 1,000 SFGLA % 31.1 $6,286 Source: ITE Trip Generation Manual, 10th Edition Person trip conversion rate of 1.68 derived from 2009 U.S. National Household Transportation Survey findings Abbreviations SFGFA - square feet of gross floor area SFGLA - square feet of gross leasable area Total SDC FCS GROUP Page 7

24 Growth Growth is measured in average daily person trips Person trips include vehicle, bike, ped, and transit trips Reflects multimodal project list Growth based on 2016 West Linn Transportation System Plan Land Use Change Percent Change Household-based Person Trips 152, ,082 28, % Employment-based Person Trips 98, ,409 49, % Total Person Trips 250, ,492 77, % New person trips as a % of future person trip 23.7% Source: 2016 West Linn Transportation System Plan FCS GROUP Page 8

25 Reimbursement Fee Cost Basis Reimbursement fee based on the cost of unused system capacity less grants and contributions Prior SDC-funded projects used to determine capacity Improvements funded with SDC expenditures assumed to achieve full capacity in 20 years Motor Vehicle Improvement Fee Expenditures Bike/Ped Improvement Fee Expenditures Reimbursable Motor Vehicle Cost Available Reimbursable Year Capacity Bike/Ped Cost FY 2010 $5,028 $0 60.0% $3,017 $0 FY 2011 $378 $ % $245 $159 FY 2012 $93,040 $ % $65,128 $486 FY 2013 $680 $ % $510 $209 FY 2014 $95,041 $ % $76,033 $64 FY 2015 $682,929 $13, % $580,490 $11,178 FY 2016 $58,730 $40, % $52,857 $36,354 FY 2017 $8,526 $45, % $8,100 $42,939 Totals $944,352 $100,040 $786,380 $91,389 Source: City staff input Note: Reimbursement and Improvement fee shares calculated based on percent which either makes up of total TSDC FCS GROUP Page 9

26 Improvement Fee Cost Basis Projects allocated to improvement fee Most SDC-eligible projects serve current and future users proportionally, allocated by growth share Growth share = 23.7% Project Type Local Cost in 2018 Growth Share SDC-Eligible Cost Pedestrian $20,205, % $4,789,440 Bicycle $11,405, % $2,703,468 Motor Vehicle $33,593, % $7,962,963 Public Works Building $2,000, % $474,085 Total $67,203, % $15,929,955 Source: 2016 West Linn Transportation System Plan, CIP, staff input Note: Numbers may not appear to add due to rounding FCS GROUP Page 10

27 SDC Comparison Total Transportation SDC by Jurisdiction Tigard $17,913 Wilsonville Lake Oswego $12,757 $12,160 West Linn (Current) Sherwood Oregon City Happy Valley Tualatin Hillsboro Beaverton $10,624 $10,366 $9,524 $9,135 $8,706 $8,706 $8,706 Portland Uninc. Clackamas County Canby West Linn (Proposed) Gresham Milwaukie $5,236 $4,374 $3,361 $3,165 $2,398 $2,114 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 FCS GROUP Page 11

28 Doug Gabbard Project Manager (503) Contact FCS GROUP: (425)