Admin Order 58-18-09-F - Laserfiche WebLink

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ADMINISTRATIVE ORDER NO. 58-18-09-F of the City Manager of the City of Eugene INFLATIONARY ADJUSTMENTS TO 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 (EC), 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. EC 7.710(5) and Section 2.4 of the Systems Development Charge (SDC) Methodologies authorize the City Manager to adopt by administrative order pursuant to EC 2.020, a change in the amount of a reimbursement fee or an improvement fee if the change in amount is less than 5% within any 12 -month period and is based on: (1) the periodic application of an adopted specific cost index (inflationary adjustment); or (2) a modification to any of the factors related to rate that are incorporated in the established methodologies. B. The adopted Regional Wastewater SDC Methodology provides for periodic adjustments to the SDC rate schedule by applying the Engineering News Record (ENR) annual "20 -City National Average" Construction Cost Index 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 2017 ENR CCI annual average of 10737 is applied to the 2017 SDC fees, in combination with updates to actual costs for bond -funded projects, the net result is an increase in SDC rates ranging from about 2.484% to 2.578%, depending upon the strength of wastewater discharge associated with development categories contained in the rate schedule. As such, this inflationary adjustment will not result in a 5% or greater fee increase within a 12 -month period. C. The SDC Methodologies were adopted by Resolution No. 4900 effective May 7, 2007, and have subsequently been amended. Inflationary adjustments to the Regional Wastewater System have been adopted, most recently by Administrative Order No. 58-16-14-F, effective July 1, 2016. D. Pursuant to Sections 2.020 and 7.710(5) of the Eugene Code, 1971, and Section 2.4 of the SDC Methodologies, and the recommendation of the Metropolitan Wastewater Management Commission, on June 5, 2018, I issued Administrative Order No. 58-18-09 directing that public Notice be given advising the public of an opportunity to submit comments on my proposal to implement inflationary increases to the Systems Development Charges for Regional Wastewater System rates, effective July 1, 2018. In making the determination to implement the inflationary adjustments, I have considered the applicable policies, enactments and directives of the City Council, the amount charged by the City in the past, the full costs of providing these services supported by the fee, the amounts charged by other comparable providers, and the revenue needs of the City as determined by the adopted City budget. Administrative Order - Page 1 of 2