Admin Order 58-11-12-F - Laserfiche WebLink

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ADMINISTRATIVE ORDER NO. 58-11-12-F of the City Manager of the City of Eugene INFLATIONARY ADJUSTMENT OF SYSTEMS DEVELOPMENT CHARGES FOR REGIONAL WASTEWATER SYSTEM. The City Manager of the City of Eugene finds as follows: A. Section 2.020 of the Eugene Code, 1971, authorizes the City Manager of the City of Eugene to determine and set fees and charges to be imposed by the City for services, goods, use of municipal property, and licenses and permits. Section 7.710(5) of that Code authorizes the City Manager to adopt by administrative order inflationary adjustments to Systems Development Charges (SDC) based on previously adopted rate factors and cost indices. Section 2.4 of the SDC Methodologies authorizes the City Manager to adopt fee changes, based on a cost index or rate factors, by administrative order pursuant to Section 2.020 of the Eugene Code, 1971, so long as the fees are not revised administratively in an amount greater than five percent within any 12 -month period. B: The SDC Methodologies were adopted by Resolution No. 4900 effective May 7, 2007, and have subsequently been amended, most recently by Resolution No. 4991, which became effective on January 1, 2010. In addition, inflationary adjustments have occurred, with inflationary adjustments to the Regional Wastewater System having been adopted by 58- 07 -08 -F effective August 20, 2007; Resolution No. 4943 effective July 1, 2008; and Administrative Order No. 58- 09 -08 -F effective July 1, 2009. C. In accordance with the procedures set forth in Sections 2.020 and 7.710(5) of the Eugene Code, 1971, and based on the recommendation of the Metropolitan Wastewater Management Commission (MWMC), and, after considering the applicable policies, enactments and directives of the City Council, the amount charged for these services by the City in the past, the full costs of providing these services supported by the fees, the amounts charged by other comparable providers, and the revenue needs of the City as determined by the adopted City budget,. on November 28, 2011, I issued Administrative Order No. 58 -11 -12 proposing to implement an inflationary increase to the Regional Wastewater System rates as shown on Exhibit A attached to that Order. A general description of the increase is described in Finding D below. D. The adopted Regional Wastewater SDC Methodology provides for periodic adjustments to the SDC rate schedule by applying the Engineering News Record (ENR) "20 -City National Average Construction Cost Index" (CCI) to the value of the existing system assets and to the value of future, non -bond funded projects and updating the actual costs for bond - funded projects. When the ENR CCI increase of about 5.9% is applied in combination with updates to actual costs for bond - funded projects, the net result is an increase in SDC rates ranging from about 4.4% to 4.6 %, depending upon the strength of wastewater discharge associated with Administrative Order : Page 1 of 2