Okay, we are on the air for our September sixteenth work session.

And we start with a system, I understand it's kind of C C's one oh one.

And then specifically talk about transportation.

It's been a while since we've talked about STCs when we have some new first.

And then we'll dig into preliminary analysis that we've done on other transportation essences.

So some things that uh that are important to remember about system development charges, these are the one-time fees paid at the time of development by new development.

Sometimes redevelopment pays them when they intensify their use of the systems, but generally imposed on new development planning, um, the law divides or system development charge for water, wastewater, stormwater, transportation, and parks.

So we've talked with you before about water and wastewater, actually, parks a few years ago.

Um, and now we're talking about transportation SDCs.

Um SPCs are for capital only, so you can only spend the money on capital projects.

We calculate them based on cost of infrastructure that's already been built and the cost of planned infrastructure.

So all about capital with one tiny exception, which we'll we'll talk about a little later.

Um I I sort of alluded to it.

There are two fees to a system development charge.

One is called the reimbursement fee.

That is a buy-in to existing infrastructure.

So anything that's been built, maybe overbuilt, so there's capacity available to future users.

That's the basis of the reimbursement fee.

Is future looking, and that's called the improvement fee.

So the think of the list of capital projects that are planned for construction.

Um that's the basis for the improvement deal.

We'll talk a little bit in detail about that.

Over those in a moment.

Um, lastly, of these key characteristics of STCs are they're intended to represent a share of system capacity.

So the big stuff, right?

Not the water meter or the ingress and egress to your property if it's transportation care of the public system.

So the uh the law is really good in my opinion.

We work with STC and in fact the law around the region, or STC law is really good, gives us a recipe for what we have to consider and calculating the charges, how to spend the money, what has to be on the list, the rules and considerations are in there.

Um it's ORS 223.297 through 316.

And just to give you a little bit of the flavor of the different sections, we won't go through these in any detail, but um the real meat of the ORS uh sections as they pertain to system development charge, the role meets in 223.304.

That's the one that tells us what we have to consider when we calculate the reimbursement fee, what we have to consider when we calculate the improvement fee.

Um it has a requirement that you provide as a city to provide credits to developers who build a project off the list as a condition of development.

You got the credit against their SDC, that languages in 304, also noticing requirements, and we'll come back to this in the next steps.

But um, any city has to provide 90 days notice before the public hearing at which they act upon a new system development charge.

So you know, we'll get done with all our work, arrive at an analysis that you're comfortable with, and then you start the 90-day notice period.

Uh the last 60 days of which the report has to be available.

So any interested party can come in and scrutinize the work.

Um, and uh you won't you will not be surprised as counseling um at that public hearing 90 days uh from advance.

So that those notice and requirements are also in 304.

Um 309 talks about the requirements of the project list timing cost, etc.

So it's all there.

Um, not a bad read, actually.

I mentioned the two different fees, the reimbursement fee and the improvement fee.

This is what this is what the map looks like.

That reimbursement fee, what we're what we're trying to isolate is the cost of any unused capacity in the existing system, whichever system it is.

We take that dollar amount, divide it by the growth that it will serve, and that gives us our improvement fee on the other hand.

This is the one picture the list of capital projects to be constructed.

You have to go through and isolate the growth-related portion of each of those projects.

So the part that's increasing capacity, future users.

That's the includable part in the calculation.

We add all those up again, divide by the growth that they will serve us our improvement.

So when you've got both fees, they together equal the system development charge.

It could also be one or the other if there's no basis.

Can I ask a question?

Peter, who does this?

Who calculates?

They do, yeah.

Okay.

So this is outsourced.

Um we we engage in contract with we've engaged in contract with FCS as we've gone through the updates on our system things.