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Resolution No. 01-12 CITY OF TIGARD,OREGON RESOLUTION NO. 01- 1Z A RESOLUTION AMENDING THE AMOUNT OF THE PARKS SYSTEM DEVELOPMENT CHARGE WHEREAS,the City adopted Resolution No.96-11 on February 27, 1996,imposing a Parks System Development Charge(Parks SDC),adopting a methodology for the imposition of Parks SDC charges,and a capital improvements plan,consistent with state law; WHEREAS,the City's costs and other factors considered in the methodology have changes since 1996; WHEREAS,the study used to compute the above changes in costs and other factors and to establish updated system development charges is attached as Exhibit"A"; NOW;THEREFORE,the Tigard City Council resolves: Section 1: The amount to be charged for the Parks SDC from the effective date of this resolution shall be: a) Single Family Unit $1,640 b) Attached Single Family Unit(row house,town house) 1,030 C) Apartment unit,including condominiums 850 d) Spaces in a manufactured home park 1,150 e) Commercial/industrial(per employee) 116 Section 2: All provisions of Section Resolution 96-11 other than the amount of the charges stated in Section 1 of Resolution 96-11 shall remain in effect. This resolution does not adopt a new methodology and only adjusts the charges based on the previously adopted methodology. PASSED: This p�day of-,4,0 _,2001. i yo ,CI of rd ATTEST:� 22 City Recorder,City of Tigard Vci tywidelwslparks.sdc.msolutions20D I.doe EXHIBIT A PARK AND RECREATION FACILITIES SYSTEM DEVELOPMENT CHANGES CITY OF TIGARD March 1,2007 ECONOMIC RESOURCE ASSOCIATES,INC. P.O.Box 9190 Portland,Oregon 97207 7 TABLES OF CONTENTS Page INTRODUCTION................................... ..................... . . . . . ......... I DEMOGRAPMCS .............................. ......................... . ... .......... 2 City ..................................... ...................... . . .. . .......1. 2 Urban Services Area ..................... ... ..................... . . . . ......... 3 ACQUISITION AND DEVELOPMENT COSTS ................................... . . . . . ......... 5 "PARK LAND INVENTORY ............................................... . . . .. . ......... 6 PARK STANDARD CHOICE IMPLICATIONS ........... ... . .................... . . .. .......... 9 PARK,GREENWAY AND TRAIL NEEDS ................. .. ................... . . . . . ........ I I UNIT COSTS ...... ........................... ....... II SYSTEMS DEVELOPMENT CHARGES .................. . .................... . . . . " -....... 12 ANNUAL ADJUSTMENT PROCEDURES ............. .... . .................... .. . . ......... 13 APPENDIX.............. ........................ ..................... . .. . ......... 15 1-- �+ A •I 0% •A I s'+ Q G S n UR C E �.. V Le IV V /II . y A C ASSOCIATES, INC. TIGARD, OREGON PARK & RECREATI®N FACILITIES SDCS Submitted:March 1,2001 INTRODUCTION The purpose of this report is to update the City of Tigard's parks systems development charges. Parks systems development charges are assessed to new developments for the acquisition and development of parks,greenways and paved trails. They are based on the cost of providing these services to new City patrons. Besides the geographic area within the City boundaries,the report calculates systems development charges for the City's Urban Services Area. The City's Urban Services Area includes the unincorporated area within its urban growth boundary. It does not include the unincorporated portion of the Metzger area, where the City presently does not provide urban services. The city currently has a systems development charge for parks facilities. The method and derivation of the charges are based on the November 19,1994"Park and Recreation Facilities Systems Development Charges" by Economic Resource Associates,Inc.and JC Draggoo&Associates(1994 Report). Tigard has both a residential and commercial parks SDC. The residential fee is based on the average number of persons(per the 1990 U.S.Census)expected to live in a unit. The fee is$1,050 for single family development(2.70 persons per household),$660 per unit for multi-family dwelling units(1.70 persons per household),$540 per apartment(1.40 persons per household)and $740 per manufactured home(1.90 persons per household), Additionally, the City currently assesses a parks SDC of$4.90 per employee for new commercial or industrial development inside the City.These fees are based on a 1994 standard of 6.68 acres of park and greenway land per 1,000 residents and 1.092 of recreation land per 1,000 employees.' This report updates the financial,demographic and parks inventory information associated with the Tigard parks and recreation facilities SDCs. Further,it revises the City's Interest Area definition used in the 1994 I ' Parks and Recreation Facilities Systems Development Charges.City of Tigard_Economic Resource Associates. Inc.and JC Draggoo&Associates,November 18. 1994 ECONOMIC RESOURCE Associales./ne. City of Tigard Park and Recreation Sysieir.Development Charges page 2 Report to incorporate only the City's adopted Urban Services Area. The methods used to derive SDCs in this report remain the same as those approved by the City in 1994. The City relies on level of service(LOS) standards to determine facility needs.The LOS standards are expressed in terms ofthe number of park acres per 1,000 residents living and 1,000 employees working in the City and the Urban Services Area. The LOS standards used to calculate facility needs are based on the City's and Urban Services Area's existing parks inventory.The LOS standards are then applied to projected population and employmentio determine future facility needs for the City and the City and Urban Services Area combined. SDC funded requirements are calculated based on the estimated unit cost applied to the needed facilities. The total financial requirements associated with future park needs are then assigned to employees and residents and apportioned to each 1,000 residents and 1,000 employees to derive the SDCs for the City and the City and Urban Services Area combined. Simply put,the SDC is a fee to recover the cost of building additional parks for new residents and employees at the same level as currently exists in the City or Urban Services Area. Consequently,the SDC varies with the average number of people or employees expected from a development. Based on our analysis of cost changes since 1994,additions to the City's park inventories,changes in City boundaries and growth in population and employment,the City's SDC per single family development could be increased to a maximum of$1,640 per unit. The other development types could also be increased in a similar manner for the City to recover the full cost of new park development at the existing level of service standard. Multiple family developments(includes attached single family units,such as raw houses and townhouses)can be charged$1,030 per unit,apartments(includes apartment buildings and condom iniums) $850 per unit and manufactured homes$1,150 per unit. Since 1994,the City has also conducted an extensive study of its park system and needs by commissioning a park master plan.2 Based on recommended standards for parks,the Master Plan provides a listing of-capital improvement projects and other recommended projects that total almost$50 million to address ex ist;ng recreational deficiencies and meet the needs of the City with its Urban Services Area(57,000 population) through the year 2008. In this report,we will determine the financial impact on the City of adopting the recommended standards and extending them to the Urban Services Area. i DEMOGRAPHICS t l City i The city of Tigard is defined in terms of its current geographic boundaries. While the City is expected to } i annex properties in the future,for the purposes of this report,we are assuming the boundaries will remain fconstant. Park System Master Plan,MIG,Inc.,January 1999. ECONOMIC RESOURCE Associcries,htc. Cay of Tigard Park and Recreation System Development Charges Page 3 In this report,we rely on Metro's population and -Table 1 employment data and projections for the City and City Population,Employment&Households 1 Urban Services Area through the year 2015.' Cny Boundaries 1990 2000 2015 Popu anon 29,344 38,704 55,048 Metro's original data was adjusted to exclude Households 12,084 16,428 25,340 Walnut Island and part-time employment. Employment 23,415 33,780 41,945 PopMouse o:_ 2.431 2.56 2.17 Annus Growth Since Metro's estimates, the City has annexed Population 2.38% Walnut Island. The City performed a study of the Households 2.93% area and determined the current populationat 1,034 Employment 1,58% with the remaining Urban Services Area at 6,604 people. Also,the Portland State University Population and Census Center has updated its 2000 population for the city without Walnut Island to be 37,670. Thus,the current City population with Walnut Island included is 38,704. Urban Services Area Tigard's Urban Services Area includes the entire Table 2 area within its urban growth boundary outside the Urban Services Area Population,Employment& City. It comprises a number of discontinuous Households MDemo ra lationhic 1990 1997 2015 parcels. A map of these parcels was prepared by the po u 5,704 6,604 11,597 City for Metro. Population, households and Households 2,227 2,527 4,899 employment of the Urban Services Area were then Employment 471 762 Po /Household 2.561 2.61 2.37 derived in the same manner as for the City. Annual Growth Population 3.83% Households 4.51it Annexation ofthe entire Urban Services Area would Em to ment 3.26°%0 increase the population of the City by more than 11,000 people in 2015. In addition,employment in the City will rise by almost 800(See Table 2). The Urban Services Area is anticipated to grow more rapidly than the City in both employment and population. A map of the City and the Urban Services Area are shown on the following page. a 0 H H Market Profile Prepared for City of Tigard,Data Resource Center,Metro,February 1999_ ECONOMIC RESOURCE Associates,Inc. L O _ E � s 66. 3Atl DN L �- RAV dNZL r- O HI I �Q. = S3fJOpg 2f3dtln LL Q yang �� F� o 0 6 zl� zI h 0 i Y J 3 c a I '3Atl1SGZL -aAtl LS�r` 0 vu rt + I U) od pd' i I u. '0 CD 0 o m 0 City of Tigard Park and Recreation System Development Charges Page 5 ACQUISITION AND DEVELOPMENT COSTS The 1994 Tigard Park and Recreation Facilities SDC report provided a detailed estimate of the acquisition and development costs for each of five park types. We have adjusted these costs for land value and construction price changes since 1994(Adjusted SDC Park Prices-Table 3). The Washington County tax assessor tracks the average residential lot price for"improved home sites"for each urban area in the County. The Tigard land prices have increased from$39,000 in 1994 to$75,660 in 2000. The average annual rate of land price increases is 11.68 percent. The land component of the 1994 park acquisition expense has been increased by this factor. The most representative local pricing guide for Table 3 development costs is the Oregon Construction Cost Adiusted SDC Park Prices ver Acre Index as determined by the Oregon State Highway Park T e Land Development mhood $77,600 Department. The index monitors the bids offered NeiCohbormuni $110,509 $77,600 $153,013 for excavation, crushed rock, mixed asphalt, Pocket $77,600 $53,948 reinforcing steel, structural steel, and structural Linear $38,800 $28,295 concrete. The Department also provides a Greenwa s $38.800 $5,5501 composite index using all ofthese factors. Based on the composite index,the cost of park development has increased at an average annual rate of 4.18 percent. The 2000 estimated cost ofacquiring and developing parks is shown in Table 3. We have compared the Adjusted SDC Park Prices to prices used in the Park Master plan. The prices used in the Park Master plan result in overall park costs that are almost 55 percent higher than estimates using the Adjusted SDC Park Prices. The reason for this is that the Master Pian assumes land acquisition at about $225,000 per acre(four times as high as that assumed in the Adjusted SDC Park Prices). The Park Master Plan assumes that commercial/industrial land will be acquired for park development. This SDC study assumes only residentially-zoned land will be acquired. The latter assumption is consistent with the current residential zoning designations of all existing parkland,except pocket parks. a + We estimate that 70 percent of the Master Plan costs of$53 million dollars are associated with the i acquisition of park land. Development costs make up just 30 percent of the proposed program. Throughout "r this report,we use Adjusted SDC Park Prices. However,should the Park Master Plan prices prove to be more accurate,the SDCs shown in this report will need to be substantially adjusted to assure recovery of full 7 park acquisition and development costs from the growth sector. ECONOMIC RESOURCE Associates.Inc. City of rigard Park and Recreation System Development Charges Page 6 PARK LAND INVENTORY A generally accepted park planning practice is to categorize parks by type. The purpose is to assure that the appropriate facilities are located according to function,impact and need.The park types applicable to Tigard are defined in the Master Plan and are repeated for easy reference below. Community Parks: Community parks provide a variety of active and passive recreational opportunities for all age groups. These parks are generally larger in size and serve a wider base ofresidents than neighborhood parks.Community parks often include developed facilities for organized group activity as well as facilities for individual and family activities. Neighborhood Parks: Neighborhood parks are the foundation ofthe parks and recreation system, providing accessible recreation and social opportunities to nearby residents.When developed tomeet neighborhood recreation needs,school sites may serve as neighborhood parks. Pocket Parks: Pocket parks provide recreation opportunities for residents in areas not adequately served by neighborhood parks,such as town centers or areas of high density development. Linear Parks: Linear parks may be developed along built or natural corridors to provide opportunities for trail oriented activities and nature-oriented outdoor recreation. Linear parks may also provide some active and passive recreation facilities to meet neighborhood needs,especially in areas not adequately served by traditional neighborhood parks. Linear parks connect residences to major community destinations. Greenways: A greenspace or greenway is an area of natural quality that protects y valuable natural resources and provides wildlife habitat. It also provides u opportunities for nature-related outdoor recreation,such as viewing and ~ studying nature and participating in trail activities. H H Trails and Connectors: A public access route for commuting and trail oriented recreational activities,including sidewalks,bikeways,multi-use trails and paths. a ECONOMIC RESOURCE Associates.Inc. Cit),of Tigard Park and Recrearion System Dever.>pment Charges Page 7 Currently,the City of Tigard has 332 acres of vark Table 4 and greenway land (See Table 4). The basic Summary of Park Invento information for each City park is listed in the Park Type Units Ori incl Developed appendix of this report. In the greenways of the Community Acres 102.87 50.03Neighborhood Acres 19.06 8.76 City,the City of Tigard currently has 1.91 miles of Pocket Acres 0.15 0.15 paved trail. Also Listed in the appendix to this Linear Acres 36.77 23.90 Greenways Acres 173.59 0.66 report is a breakdown of greenway corridors that Total 332.44 83.50 contain pathways and the approximate length of Trails Miles 1.91 each trail. In addition to park land,current city residents have contributed directly to park purchases through parks systems lelopment charges. Additionally,others have made contributions to build up the existing park inventory. All of the contributed funds must be used for the purchase and development ofpark lands. Some contributions have not yet been spent and some have been spent on park related costs(Cook Park design, permit fees and wetland mitigation)but have not yet been added to the parks'inventory.These contributions. or the parks that could be purchased with them, should be counted as part of the City's existing park inventory. According to the City's financial records for 1998-99 and through 9/30/2000 ofthe current fiscal year,the City has$854,624 on hand and has spent$736,026 on park improvements and related costs which have not yet been included in park inventory(work in progress). Using Table 3 average cost data and assuming the Table 5 same level of park development as currently exists, Park Inventory with Spending of Curren[$alance the funds on hand are sufficient to buy 21 acres of Park Type Adiusted Develo ed Comm park land and develop 5.3 acres of neighborhood, Neighbor � 10937 53.19 Nei hborhood 20.26 931 community, pocket parks, linear parks and Pocket —0.16-016 greenways(See Table 5). Linear 39.09 25.41 Greenways 184.55 — 2 .70 Tota! 353.43 gg.77 According to the City,there are currently no parks 11 or recreation facilities within the Urban Services Area. STANDARDS The formula for computing SDCs includes as one of its variables the standards for developing parks,which are normally expressed in acres per person(residents or employees). This report discusses several different possible standards, including the standard adopted in 1994(Table 6), a modified standard based on the additional population in the entire urban service area(Table 7),and a totally different standard based on the ECONOMIC RESOURCE Associates,/tic'. City of regard Park anz'Recreation System Development Charges Page 8 standard recommended in the Parks System Master Plan. Although the Parks System Master Platt has been adopted,the standards set forth in the plan remain recommendations and not adopted standards. With the adoption of the 1994 SDCs, the City adopted a method for computing parks and recreation standards that recognizes that ennployees and residents both benefit from these facilities. The basic assumption of the City's method is that people(whether residents or employees)have similar propensities to recreate for each hour of available time. While the type of recreation might differ,the probability of recreating remains relatively constant. The City's approach is more conservative than that used by other jurisdictions. The City uses a more detailed method of determining the available recreation time and specifically takes account of differences in season, age ofthe population,and city residents working outside the city's boundaries. In addition,travel time for both resident and nonresident employees from home to work is factored into the computations. Table 6 Neighborhood parks are built primarily for City Standard the residents in close proximity of the park. (ExistingService Level) Thus, employees are unlikely to use Population Employee Park Category Amount Per 1,000 Per 1,000 neighborhood parks. Community parks and Community 10937 2.6331 0.225 trails are used by both residents and Neighborhood 20.26 0.524 0.000 ocket 0.16 0.004 employees. Employees play ball, use P 0.000 Linear 39.09 0.941 0.080 picnicking areas,walk the trails and engage Total Parks 168.88 4.101 0.305 in other recreational activities. Greenways Greenways 184.55 3.052 2.002 Total Parks and Greenways 1 353.43 7.154 2.307 are a special category as these facilities Paved Trails 1.91 0.032 0.021 generally do not provide recreation opportunities to either residents or employees(other than the trails dealt with separately). Greenways enhance the general community by providing open space,wetlands,mitigation of flooding...etc. Thus,all,residents and employees alike,enjoy them. Both residential and commercial properties are enhanced by the proper provision of greenway spaces. Using the City's previously adopted method,existing demographics and park inventory,the City's park and recreation standards are shown in Table 6. Consequently,the City currently provides 7.2 acres of parks and greenways for every 1,000 residents and 2.31 acres for every 1,000 employees. ECONOMIC RESOURCE Associates.inc. City of Tigard Park and Recreation System Development Charges Page 9 However, the City is planning for the Table 7 provision of park services to the Urban City and Urban Services Area Standard Services Area. These are no parks and (Existing Service Level) Population 'Employee recreation facilities cutrertly in the Urban Park Cateaory Amount Per 1,000 Per 1,000 Services Area. Thus,the Urban Services Community 109.371 2.275 0.187 Area adds population and employment to Neighborhood 20.26 0.447 0.000 Pocket 0.16 0.003 0.000 the City but does so at the cost of lowering Linear 39.09 0.813 0.067 the City's existing service level standards. Total Parks 168.88 3.539 0.254 The inclusion of the Urban Services Area Greenwa s 184.55 2.607 1.974 Total Parks and Greenwa s 353.43 6.146 2.227 decreases the City's parks standard by Paved Trails 1 1.91 0.027 0.020 more than an acre per 1,000 residents and almost a tenth of an acre per 1,000 employees. - An alternative method for developing City standards is detailed in the most recent Park System Master Plan. In that document,the recommended City standard is based on a combination ofexisting,local(neighboring jurisdictions)and National Recreation and Park Association standards. The Park System Master Plan sets standards of 2.5 neighborhood park acres,3.5 community park acres and 5 acres of greenspace/greenways for a total of I I acres per 1,000 residents. This is much more than Tigard's current service level. PARK STANDARD CHOICE IMPLICATIONS The city is free to adopt any park and recreation standard it chooses. The standard chosen has implications on the amount of the systems development charge for both residents and businesses.Generally,the higher the selected standard the more can be collected from new development.The recreation opportunities in the City can be expanded at a more rapid pace. Table 8 However,choice of a standard exceeding the City's Adjusted Park Inventory Value current service level also has implications for Park Type Land Developed Value current residents. Principles of equal treatment Community 109.37 53.19 $14,364,795 Neighborhood 20.26 9.31 $2,997,464 require that existing and new customers bear Pocket 0.16 0.16 $20,978 comparable responsibility in meeting the Cit3's Linear 39.09 25.41 $2,235,614 overa Greenways 184.55 0.70 $7,164,432 ll park and recreation needs. As residents and Total 353.43 88.77 $26,783,283 employees, whether current or new, cannot be excluded from parks and recreation facilities,both current and new customers must provide for these facilities in equal proportion. Thus,the adoption of a standard exceeding current service levels in the creation of an SDC places a financial burden on existing businesses and residents. ECONOMIC RESOURCE Associates.Me. City of Tigard Park and Recreation System Development Charges Page 10 In Table 8 we first calculate the value ofthe adjusted park inventory(includes adjustments for cash balances) based on the park acquisition and development costs shown in Table 3 on page 5. The current value of the City's park inventory is estimated to be just less than$27 million(See Table 8). We [text calculate the park requirements Table 9 using the recommended standards of the Master Plan Standard-Existing Ci ty Park System Master Plan for the current Park T a Required Developed Cost Liability City population. The result is then valued Com; uni 135.46 135.46$25,481,933 $11,117,138 ei hborhood96.76 96.76$22,314,067 $19,316,603 in the same manner as the current City Communi 135.46 135.46$25,481,933 $11,117,!38 inventory. Based on these computations, Pocket 0.00 0.00 $0 (820,978) Linear 0.00 0.00 $0($2,235,614) the City needs an additional 110 acres of Greenwa s 232.22 O.88 $9,015,170 $1,850,738 park land and more of the)and needs to be Total 464.45 233.10$56 811 170 $30,027887 developed(See Table 9). In total,the value of the park system at Master Plan standards would be worth$57 million. As the City invested$27 million and needed to invest$57 million to meet the needs ofthe current community,adoption of the Park System Master Plan standards would creat an unfunded liability of just less than$30 million. This liability cannot be charged to the growth sector. Current businesses and residents must bear it. Should the City wish to adopt an SDC based on the Master Plan standards,the current park liability must be addressed simultaneously. While the City does not have an obligation to immediately bring the parks up to the adopted standards,it must have a reasonable and implementable plan for doing so. Without such a plan,the SDCs could be challenged based on unequal tra-atment. The liability ofthe City grows ifthe Urban Table 10 Services Area is included in the analysis. Existing City and Urban Services Area As shown in Table 10 an additional 34 acres (Master Plan Standard) of park land needs to be purchased and Park Type Required Develo ed Cost Liabilitv Community 158.58 15€.58$29,829,873 $15,465,079 developed to meet the Master plan ei hborhood 113.27 113.27 $26,121,479 $23,124,015 i standards for the current Urban Services Pocket 0.00 0.00 $0 ($20,978) Linear 0.00 0.00 $0($2,235,614) Area. This would cost the City another$8 Greenwa s 226.54 0.86 $8.794 512 $1,630.079 i million. Again,this amount could not be charged to new customers and a plan 7 would need to be developed to address the park deficiency. In the remainder of this report, we assume the City does not adopt the Park System Master Plan recommended standards at this time. According to the resolution adopting the Masi--r Plan,the Master Plan standards were adopted as inspirational or visionary and not as existing or operational standards. ECONOMIC RESOURCE Associates,Inc. City of Tigard Park and Recreation System Development Charges Page I1 Considerably more work needs to be done regarding the financing of deficiencies before SDCs could be calculated incorporating these standards. Such work is outside the s-ope of this report. PARK,GREENWAV AND TRAIL NEEDS In the remainder ofthis report we assume the City will adopt an existing service level standard for parks that are based on either the current City population and employment or that of both the City and Ui ban Services Area. As a result,we compute future park needs based on these standards. In making alternative value calculations we use the Table 11 costs shown in Table 3 on page 5,the two standards, City Park Needs and the Metro 2015 population and employment (Existing Service Level) Park Type I Acres Developed I Cost figures for the City and Urban Services Area. Community 45.00 21.891 $5,911,074.5 Utilizing the current park service level standard for Neighborhood 8.56 3.931 $1,265,770.7 the City as applied to the 2015 population and Pocket 0.07 0.07 $8,632.4 Linear 16.09 10.45 $919,949.4 employment for the City,Table 1 1 identifies future Total Parks 69.71 36.34 $8,105,427.0 park needs by type, The City needs to spend and Greenways 67.43 0.26 $2,617,734.0 Paved Trails 0.70 0.70 $101,601.1 estimated $10.8 million to meet growth Total All Ci Recreation $10.824.762.1 requirements. Table 12 While the standards are lower when the Urban City and Urban Services Area Park Needs Services Area is included with the City,the City gill (Existing Service Level) earn additional park funds by including the Urban pGreenwa Type Acres Developed Cost Community 50.24 24.43 $6,598,313.6 Services Area. The reason for this is that the Urban ood 9.54 4,39 $1,411,602.6 Services Area is growing more rapidly than the City. 0.07 0.07 $9,636.0 Table 12 shows the park needs that must be 17.96 11.67 $1,026,905.4 ks 77.81 40.56 $9,^46,457.6 addressed by the year 2015 when both the City and 73.51 0.28 $2,'383,118.1 Urban Services Area are beingdeveloped_ls 0.76 0,76 $26,933.6 City&Urban Services Area Recreationj $11,956.509.2 UNIT COSTS The combination of park standards,per acre costs for land and development and the anticipated units served (resident or employee)form the basis for establishing the cost of providing parks for each unit of City growth. A weighted average of the development and land costs was used to compute the total cost of meeting the City's parks standard. We estimate that on average,if will cost approximately$1 15,000 to buy and develop the land for an average City park acre,$39,000 per acre of greenway and$145,000 per mile of paved trail. ECONOMIC RESOURCE Associates.Inc. Cit),of Tigard Park and Recreation 5}stem Development Charges Page 12 The average City park cos;is computed by weighting individual park costs. Besides buying and developing land for parks,greenways and trails,the City must periodically develop a plan for when to buy land,whet types of parks are to be developed and the best location for the parks given anticipated development. We estimate the cost of such a pian to be$66,000. Table 13 Unit Costs City (Existing Service Level) Standard Park Type (Acres/1,000) Cost Per Capita Cost Per Em to ee Capita I Employee Develo ed Land Total [Developed Land Total Total Parks 4.101 0.305 $195,846 $281,759 $477,605 $13,578 $20,588 $34,166 PavGreed s 3.052 2.002 $64 $118,426 $118,490 $42 $77,:69 $77,711 Paved Trails 0.032 0.021 $4,599 $0 $4,599 $3,016 $0 $3,016 Total All City Recreation $200,509 $400,185 $600,694 $16,636 $98,257 $114,893 Cost of Master Planning $5,772 $1104 C , ost Per Capita $606 .1 16 As shown in Table 13,it costs the City approximately$606 to acquire and develop parks and recreational Opportunities for the average new resident. Close to$120 is needed for each new employee.We conducted the same analysis for the City and Urban Services Area together. Because of the lowering of park and recreation standards,the per unit costs are lower. Table 14 Unit Costs City and Urban Services Area (Existing Service Level) Standard Park Type (Ac s/1,000) Cost Per Ca ita Cost Per Em lovee Ca ita Employee Developed Land Total Develo ed Land Total Total Parks 3.539 0254 $168,868 $243,068 $411,935 511277 517,099 528,376 Greemvays 2,607 1.974 $1,436 $101,164 $102,600 $41 $76,582 576,623 Paved Trails 0.027 0.020 $0 $0 $0 $2,974 $0 Total All Ci Recreation $170,304 $344,232 $514,536 $14,293 $93,681 $107,974 Cost of Master Planning $4,944 $(,037 Cost Per Capita $519 $i09 SYSTENis DEVELOPMENT CHARGES Systems development charges are levied at the point of application for a uuilding permit. If the building permit is for remodeling an existing business or dwelling,no systems development charge is assessed if jthe remodel is not an expansion of the existing living or work space. Otherwise,for all business remodels,new businesses and residential developments,a systems development fee is assessed based on the number of people or employees who are expected to live or work in the space. ECONOMIC RESOURCE Associates,Inc. City of Tigard Park and Recreation System Development Charges Page 73 For residential sector,we have established the 15 average number of people who wiil live in various Table Persons per Residential Unit types of dwellings. This information was obtained City of Tigard,1998 from the 1990 U.S.Census of Population and Residential Unit Household Size Housing. Single Family 2,70 Multi-Family 1.70 Apartments 1.40 The number of persons working in a proposed Manufactured homes 1.90 commercial development varies greatly with the type of use. Thus,it is not possible to provide an average as a guideline in the same manner as for the residential sector. Consequently,each permit application for the expansion or new construction of business related space must be evaluated separately for the number of employees who are expected to work within the space. The systems development charge is then based on the determination of the total number of employees who will conduct business within the proposed business space. The maximum systems development Table 16 charge that could be levied by the Proposed System Development Charges City of Tigard under the various Type of Development I City —City&,Urban alternatives discussed within this Services Area Single Family Units $1,640 $1,400 report are shown in Table 16. Multi-Family Units $1,030 $880 Because the City has not changed its Apartments $850 $730 Manufactured homes $1,150 $990 SDCs for five years and changes in Commercial-Per 10 Em to ees IL $1,090 the standards due to park purchases, the City SDCs need to be increased from their current level. The method for calculating the SDCs has not changed since 1994. However,all of the underlying information has been adjusted to bring it current. Depending on the boundary chosen for which the SDC is to be charged,it costs the City between$1,640 and$1,400 for each average single family unit to provide for parks and recreation. ANNUAL ADJUSTMENT PROCEDURES Land and development costs rise each year. The SDCs calculated in this report are based on 1994 prices inflated to 2000 costs by using price indices. We have demonstrated that the application of the indices can lead to realistic results. Consequently,we recommend that the City adjust the SDC fees annually. The new fee should be determined by multiplying the existing fee by the average of two indices,one reflecting change in development/construction and the other reflecting changes to lard acquisition costs. ECONOMIC RESOURCE Associates.lnc. City of Tigard Park and Recreation i�,srem Development Charges Page 14 The average of the two indices is a reasonable approach as the SDC fee is almost equally split between land acquisition and development costs(the average Tigard park is 41 percent development and 59 percent land acquisitions). The index for the land acq=isition component is the cost of residential tract land in Tigard as determined by the Washington County Appraiser. The 2000 lot price used in this report is$75,660 and should be used as the"base"of the land acquisition index in the first annual adjustment to the SDCs proposed in this report. The park development costs are adjusted by the Oregon Construction Cost Index that is available from the Oregon Department of Transportation. We used the most recent period composite index to calculate SDCs in this report(second period of 2000= 142.8). Consequently,the index value for this most recent period becomes the"base"for the first annual SDC adjustment. The City can use either quarterly or annual indices to make the adjustment. As can be seen from the entire series,quarterly values fluctuate more dramatically due to the nature of the bid process. SDC ANNUAL ADJUSTMENT FORMULA SDC,_ =SDC,a_,X ACI Where: SDC = System Development Charge being adjusted Base = Base Year ACI = Average of the land(LCI)and development(DCI)costs indices INDICES CALCULATION ACI=(LCI+DCI)/2 AND: LCI=L(a u.q/L(B—) DCI t Where: a LCI = Land Cost Index L = Cost of residential lot price per Washington County Tax Assessor i DCI = Development Cost Index C = Oregon Construction Cost Index per Department of Transportation ACI = Average of the land(LCI)and development(DCI)costs indices ECONOMIC RESOURCE Associates.Inc. Cip,of Tigard Park and Recreation System Development Charges Page/S APPENDIX TIGARD PARK INVENTORY i i i ECONOMIC RESOURCE Associates.hic. m Cif),of Tigard Park and Recreation System Development Charges Page 16 Park and Greenway Inventory by Type City of Tigard,2000 Percent Park Type Park Acres Type Tota Is Developed Neighborhood Park Albertsons 3.50 19.06 0% Jack Park 5.50 100% Woodard Park 3.26 100% Lowery Addition 6.80 0% Community Park Cook Park 79.05 102.87 45% Summer?ake Park 23.82 60% Pocket Parks Liberty Park 0.75 0.15 100% Main Park 0.25 100% Ye Old Windmill 0.15 100% Contributed (1.00) 100% Linear Parks Englewood Park 14.97 36.77 90% Fanno Creek Park 21.80 45,' Commercial Park 0.75 70% Contributed (0.75) ECONOMIC RESOURCE Associaies.Mr. City of Tigard Park and Recreation Sy sleet Development Charges Page 17 Park and Greenway Inventory by Type City of Tigard,2000 Percent Park Type Park Acres Type Totals Developed Greenways 113th Place 0.63 173.59 135th Avenue 0.24 74th/76th Avenues3.14 Berkley Creek/Cooper Creek I&2 6.39 Black Bull Park 2.00 Bonita Road&Industrial Park 7.31 Brookway 2.30 Cache Creek 11.63 Capstone 2 13 Castle At Brittany 0.78 Clydesdale 0.30 Colony Creek Estates 3.08 loa Creekside Park 1.00 Dover Landing&Court 3.39 Durham Road 0.32 Estate Drive 170 Fairhaven St.SW 0.06 Feet Street 2.63 Finley Park 0.38 Genesis#2&3 5.07 Gentlewoods 127 Greenburg Road 0.11 Hillshire Woods 30.62 Hol lytree 130 Jack Park 1.00 Johnson Street 0.29 Leron 43 5.01 Meadowglade 4.10 Merestone !25 Morningstar 8 27 McDonald/Brown Property 1 137 North Dakota 2 14 5% Pathfinder 1.80 Pick's Landing 6.40 Rebecca Park 0.88 5% Renaissance Woods 2.74 Riverview Estates -282 Scheckla Park 1.40 Shady Lane 196 Summer Hills Park 4.01 5°r' SW 135 th& Scholls Ferry I5.07 5°.0 ECONOMIC RESOURCE Associates,hrc. City q,Tigard Park Ond Recreation System Development Charees Page/8 Park and Greenway Inventory by Type City of Tigard,2000 Percent Park Type Park Acres Type Totals Developed Terrace Trails 2.50 Tigard Street&Addition 3.3I Tippitt Place 0,70 Tualstin Country Club 2,25 Tualatin Drive 0,42 5% Tualatin River(Hickox Property) 0,09 Willowbrook Farm 0,59 Windsor Place 2.63 Winter Lake Drive 3.03 Ye Old Windmill 7.36 Yolo Estates 2,37 Total Acres 332.44 ECONOMIC RESOURCE Associates,hvc.