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ADMINISTRATIVE ORDER NO. 58-15-17-F <br />of the <br />City Manager of the City of Eugene <br />INFLATIONARY ADJUSTMENT. OF SYSTEMS DEVELOPMENT <br />CHARGES FOR REGIONAL WASTEWATER SYSTEM, PARKS SYSTEM, <br />LOCAL WASTEWATER SYSTEM, STORMWATER SYSTEM, AND <br />TRANSPORTATION SYSTEM. <br />The City Manager of the City of Eugene finds as follows: <br />A. Section 2.020 of the Eugene Code, 1971, authorizes the City Manager of the City <br />of Eugene to determine and set fees and charges to be imposed by the City for services, goods, <br />use of municipal property, and licenses and permits. Section 7.710(5) of that Code authorizes <br />the City Manager to adopt by administrative order inflationary adjustments to Systems <br />Development Charges (SDC) based on previously adopted rate factors and cost indices. Section <br />2.4 of the SDC Methodologies authorizes the City Manager to adopt fee changes, based on a cost <br />index or rate factors, by administrative order pursuant to Section 2.020 of the Eugene Code, <br />1971, so long as the fees are not revised administratively in an amount greater than five percent <br />within any 12 -month period. <br />B. The SDC Methodologies were adopted by Resolution No. 4900 effective May 7, <br />2007, and have subsequently been amended by Resolution Nos. 4929, 4977, 4991 and 5100. <br />Inflationary adjustments to the Regional Wastewater System, Parks System, Local Wastewater <br />System, Stormwater System, and Transportation System have been adopted, most recently by <br />Administrative Order No. 58-14-08-F, effective July 1, 2014. <br />C. In accordance with the procedures set forth in Sections 2.020 and 7.710(5) of the <br />Eugene Code, 1971, the recommendation of the Metropolitan Wastewater Management <br />Commission (MWMC), and after considering the applicable policies, enactments and directives <br />of the City Council, the amount charged for these services by the City in the past, the full costs <br />of providing these services supported by the fees, the amounts charged by other comparable <br />providers, and the revenue needs of the City as determined by the adopted City budget, on June <br />3, 2015, I issued Administrative Order No. 58-15-17 proposing to implement an inflationary <br />increase to the Regional Wastewater System rates and the Parks System, Local Wastewater <br />System, Stormwater System, and Transportation System rates as shown on Exhibit A attached to <br />that Order. General descriptions of the adjustments are described in Findings D, E, and F below. <br />D. The adopted Regional Wastewater SDC Methodology provides for periodic <br />adjustments to the SDC rate schedule by applying the Engineering News Record (ENR) annual <br />"20 -City National Average" Construction Cost Index (CCI) to the value of the existing system <br />assets and to the value of future, non -bond funded projects and updating the actual costs for <br />bond -funded projects. When the ENR 2014 CCI increase of about 2.8% is applied in <br />combination with updates to actual costs for bond -funded projects, the net result is an increase in <br />SDC rates ranging from about 1.83% to 1.98%, depending upon the strength of -wastewater <br />Administrative Order - Page 1 of 2 <br />