HomeMy WebLinkAboutAdmin Order 58-18-05-FADMINISTRATIVE ORDER NO. 58-18-05-F
of the
City Manager of the City of Eugene
AMENDMENT OF THE WASTEWATER USER FEE SCHEDULE AND
REPEAL OF ADMINISTRATIVE ORDER NO. 58-17-06-F.
The City Manager of the City of Eugene rinds as follows:
A. Section 6.411 of the Eugene, Code, 1971 (EC), authorizes the City Manager to
determine and set fees and charges to be imposed by the City for wastewater service, regional
wastewater service, and stormwater service. Pursuant to that authority, on May 8, 2017, 1 issued
Administrative Order No. 58-17-06-F amending the Wastewater User Fee Schedule.
B. On May 22, 2018, 1 issued Administrative Order No. 58-18-05 ordering that notice
be given advising the public of the opportunity to submit comments on my proposal to amend the
wastewater user fees. The current and proposed fees were set out in the Notice attached as Exhibit
A to that Administrative Order. The Notice provided that written or oral comments would be
received at the public hearing to be held in the Public Works Engineering Les Lyle conference
room, 99 E. Broadway, 4th floor, Eugene, Oregon, on June 6, 2018 at noon, and that written
comments could otherwise be submitted until 5:00 p.m. on June 6, 2018.
C. Based on my investigation of the revenue needs of the City in providing wastewater
services using the criteria in EC 6.411(2), and after considering the comments submitted, I find
that the amended wastewater user fees should be amended as proposed. (See Exhibit A)
On the basis of these findings, I order that:
1. A copy of this Order shall be promptly forwarded to the Mayor and City
Councilors. Unless reviewed by the Council pursuant to EC 6.411(1)(f), this Order shall become
final on the I I th day after the date it is rendered.
2. Notwithstanding the effective date of this Order as set forth above, the Wastewater
User Fees attached as Exhibit B are established as the fees to be charged for the described services,
effective for all bills issued on or after July 1, 2018.
4. Administrative Order No. 58-17-06-F is repealed as of the effective date of the fees
attached as Exhibit A to this Order.
Dated this day of June, 2018.
Jon I2. Ruiz
City Manager
Unless reviewed by Council pursuant to EC 6.411(1)(f), this Order becomes final on
June I'l 2018.
Administrative Order - Page 1 of 1
CITY MANAGER'S FINDINGS
Investigation of Wastewater Service Revenue Needs Pursuant to EC 6.411(2)
and Responses to Public Comments Regarding 2018 Wastewater User Fee Amendments
All properties connected to the public wastewater system pay wastewater fees.Eugene provides local
wastewater collection services, and the Metropolitan Wastewater Management Commission /MVVMC\,
apartnership nfLane County and the cities of Eugene and Springfield, operates the regional wastewater
collection and treatment facilities.
|norder tocontinue the same level ofservices through FY19,aninvestigation ofrevenueneedmvvas
conducted. The results of the investigation included the following factors, as outlined in Eugene code
6.411. In summary, the investigation supports the need to increase wastewater rates by 4% in FY19.
What has been charged in the past?
RATE COMPONENT
Current
Propose
Rate
d Rate
Per Account Fee:
Charge
Charge
Charge
Charge
Sanitary Sewer Flow -Based Charge per 1,000 Gallons of Water Used:
Total flow -based charge per 1,000 gallons of
$4.544
$4.676
$4.838
$4.992
(Per Account charge + 5 times the total flow based
$35.05
$35.96
$37.15
$38.24
Per Account Fee, All Commercial/Industrial Classes:
Charge
Charge
Charge
Charge
Sanitary Sewer Flow -Base Charge Per 1,000 Gallons of Water Used by Customer Class:
Low Strength Customer:
Total flow -base charge per 1,000 gallons of
$5.388
$5.537
$5.725
$5.902
Medium Strength Customer:
Exhibit /k10 Administrative Order 58-18-05-F
RATE COMPONENT
Current
Propose
Rate
d Rate
Total flow -base charge per 1,000 gallons of
$6.895
$7.074
$7.308
$7.524
High Strength Customer:
Total flow -base charge per 1,000 gallons of
$8.907
$9.126
$9.422
$9.691
Very High Strength Customer:
Total flow -base charge per 1,000 gallons of
$10.925
$11.185
$11.542
$11.864
Super High Strength Customer:
Total flow -base charge per 1,000 gallons of
$12.939
$13.239
$13.658
$14.033
Charge
Charge
Charge
Charge
MWMC Hauled Waste (non-septage): flow
$127.00
$127.00
What is MWMC's Recommendation for FY19?
OnApril l3 2018 MWMC adopted resolution 18-04, which approved a 2.5% increase in regional
wastewater rates over the current rates.
What are the Federal and State reeulathxnsirnoactngFY18's orwppsedrate increase?
governing the operation of wastewater treatment plants. As such, the DEQ has issued a National
Pollutant Discharge Elimination System (NPDES) Permit (number 100980) for the Eugene/Springfield
Water Pollution Control Facility. The permit describes conditions and limitations to ensure public health
and safety and protection of the environment. The FY19 proposed budget for the wastewater program
will provide funding for the City to carry out operation and maintenance activities and services
necessary under the NPDES permit.
Exhibit A10Administrative Order 50-|0-05-F
How does the City of Eugene's proposed rate compare to other similar service providers?
Residential Wastewater Rate (5k al)
$80.00
$69.84 $70.78
$70.00 (li
q/tau
y (r; rr f(!
rpJiYi/G��p�
$60.00
$49.94
rf;
$50.00 %f✓`yii �rlila� ,/,/✓/���
RI
40.00 $37 24 $37 58 $38.25 poi
$
31 76
r r
$ (�/,/Ki
'l�fy /
$30,00
�f��''(t
$21.01 �ig/r �l)�;1%��Ifi
$20.00
10.00 r{/
$0.00 r(r„<, i,,.,✓r(�
Medford Gresham Salem Corvallis Eugene Springfield Lake Portland
Oswego
What is the revenue needed to oav for service proposed in the FY19 budeet?
Uses of Funds:
Operations & Maintenance
$
Proposed
Sources of Funds:
$
FY19
Beginning Working Capital
$
904,224
Current Rate Revenue
$
10,309,577
Rate Increase Revenue
$
410,423
Other Revenue
$
305,187
Total Resources
$
11,929,411
Uses of Funds:
Operations & Maintenance
$
8,968,399
ROW Usage Fees
$
643,000
Capital Program (Rehabilitation, new capacity)
$
2,140,000
Ending Working Capital
$
178,012
Total Requirements
$
11,929,411
Rate Increase - Proposed
4%
Are there other relevant policies adopted by the City Council impactin'Rthe FY19 proposed rates?
There are no other relevant policies adopted by the City Council that will impact the FY19 proposed
rates.
Exhibit A to Administrative Order 58-18-05-F
Page 3 of 8
Are any IGAs impacting the FY19 proposed rates?
There are no new intergovernmental agreements between the City of Eugene and another entity that
will have a new and material impact to the City's wastewater program.
Do the rates establish an equity between different classes of rate Pavers?
The wastewater fee schedule isaflow-based fee set uptocharge customers whose residence or
business use more water, and thus requires more wastewater to be treated, to pay a higher fee. There is
one rate charged per thousand gallons of water used for residential customers and five different
categories of rates for commercial customers depending upon the strength and characteristics of the
wastewater discharged to the public sewer system.
Is the wastewater program paying an appropriate value for the use and occupancy of the City's right
of -way system?
The City of Eugene wastewater program is paying a similar charge for the use and occupancy of the City
of Eugene's right-of-way system, when compared to other utilities in the area.
% Revenue paid
for use of ROW
EVVEB 6%
NVVNatural Gas 6Y6
Cable/Internet 796
[OEStormwater 6%
COEVVastevxater G%
Exhibit ANAdministrative Order 58 -l0 -05-P
Public Hearing Comments and Responses
|nresponse tothe notice ofthe proposed amendments, four people submitted written comments and
one person provided comments atthe public hearing held onJune 5,2O18. Asummary ofthe
comments and responses are as follows:
1. Comments regarding the rate increase process.
• Concern about the process of holding a public hearing and submitting comments after the
City Manager has already signed the order.
* Questioned whether having the public hearing at noon on a Wednesday was a good
schedule for getting public testimony.
0 |sthere citizen oversight orisitthe staff that decides the budget and fees?
Response: Eugene Code (EC), 1971, authorizes the City Manager through the administrative
order process to determine and set fees and charges to be imposed by the City for wastewater
service and stormwater service. Pursuant to EC 6.411(l), the City Manager is required to
conduct an investigation of revenue needs and to base the fees and charges on that
investigation and the applicable criteria set out inEC6.411/I>.
The City provides avariety nfopportunities for citizen input. |naddition 1ncomplying with Code
requirements related to public hearing notifications, the City conducts a number of outreach
efforts. The City maintains web site with information about rate adjustments, time and
location ofpublic hearings, and other information. The process allows for the submittal nf
electronic and written comments, and/or attending the public hearing. The City notified local
media onMay 3O,2O1R. OnMay 23,June 5and 6,2O18,KEZIran astory which included
information about the public hearing. The City has tried different meeting times over the past
few years, including noon, afternoon and evening in order to accommodate different schedules.
The number ofpeople inattendance was minimal regardless ofthe time. The City will continue
to evaluate alternative public hearing times to better accommodate and encourage public input.
The Public Works Stormwater Policy Team is comprised of the Public Works Director and
division managers. Aspart ofthe annual budget process, the policy team reviews and
recommends the o1ormwateroperating and capital budget. The City ofEugene's Budget
Committee is a standing committee composed of an equal number of City Council members and
appointed citizen members. The committee reviews the proposed operating and capital budget
and makes a recommendation on the budget to the City Council for final enactment.
The Budget Committee reviews the City's annual budget inaccordance with Oregon's Local
Budget Law and Oregon Administrative Rules. The Committee makes recommendations to the
City Council nmthe annual budget, the Financial Management Goals and Policies, and onspecific
issues as directed by the Council. Budget Committee may also meet to discuss updates to long-
range0nanda|p|ansandpo|icies.
2. Comments regarding Eugene Water and Electric Board (EWEB) budget and rates.
0 EWEB cut 24 million dollars from their budget.
� EVVEBhas not had any rate increases inthe last 3years.
The City needs to look at their budget in a different way and limit rate increases to inflation.
Response: Below is a summary ofrate changes for electric, water, regional and local
Exhibit /\kzAdministrative Order 58-l8'U5-F
wastewater and stonnvvater
Summary of EWEB/MWMC/COE Rate Changes
Pf
Electric
Water
K&WIVIC
(regional)
WW
city
(local)
WW
Storm
FY09
-1.0%
17I%%
11%/7Y6
4]}96
4.0%
FY10
5.096
18.1%
18.0%
24.0%
4.596
FY11
1.9%
7.396
5.0Y6
9.096
0.096
FY12
8.196
7.1%
4.0Y6
3.096
11.096
FY13
5.596
5.096
4.096
3.096
4.596
FY14
5.8%
20.0Y6
3.0%
O.OY&
0.0%
FY15
4.0Y6
5.7%
3.596
2.89&
6.594
FY16
0.096
4.996
2.096
3.896
6.596
FY17
2.596
3.6%
2.096
4.096
7.5V6
FY18
0.096
2.096
3.096
4.096
4.096
FY19
0.096
-2.896
2.5%
4.096
4.096
Source: Eugene Water & Electric 000rdforslectru/Wvte,
Source: City of Eugene: regional,local and storm
pn09:Regional Inc. z11/ma11 91o; 12/1108:nu
Fmesmrmumx,rate increase effective 91111*
/Y1rnegm^*/tnoxw/weffective 7116,Storm water effective 91112016
/nu:Regional ww4mu/wwptormuproposed
3. Comments regarding use of funds.
~ Administration costs are higher than capital costs
m There should beanemphasis placed onreducing costs.
w |sthere enexus between stormvxatermanagement and parks programs?
�
City Manager and Council robs wastewater and other accounts for the City Hall and
unrelated projects.
Response: The administration cost center is approximately 12% of the stormwater operating
and capital fund. The amount of administration costs for overhead is consistent with other
funds
The capital program that is funded by user fees includes rehabilitation, replacement and
restoration ofthe system. Capacity enhancing projects unefundedbvSysternDeve|opmment
Charges (SD[n)and are not part ofuser fees.
The FY15 budget adopted by City Council included the transfer tothe stonnwaterfund of
several services with a stormwater nexus that had previously been paid from the General Fund.
These stormwater services include tree maintenance within parks, management of natural
areas, leaf removal from turf and landscape beds, and other vegetation maintenance. All of
these provide direct stormvvaterbenefits. Noparks operation and maintenance costs without a
nexus to stormwater have been transferred to the stormwater fund or are being paid for
through stormwater fees.
To accomplish the expansion of City Hall, the Eugene City Council authorized the Public Works
Exhibit /\kr Administrative Order 58-18-05-F
Department to contribute non -General Funds, including Stormwater and Wastewater, to
accommodate the cost of the construction of a 4th floor shelled space as essentially a down
payment nnfuture space inCity Hall. |tisexpected that Public Works staff will occupy either the
4th floor orsimilar space inasubsequent phase ofthe City Hall redevelopment project.
4. Comments regarding inflation and rate increases:
*
Objection tuthe increase infees for wastewater and stonnwmtec
�
What costs warrant the 4%increase?
�
What will the money beused for?
m
What percentage of these funds are allocated to wastewater and stormwater needs, and
what percentage isused for other purposes?
�
Has there been any reduction in the amount of money from the general fund for these line
items?
Response: Stormwater user fees fund stormwater operations and capital investment for system
rehabilitation, replacement and restoration. In an effort to maintain reasonable nates, the City
continually seeks efficiencies and service adjustments. The proposed 4%increase isneeded tu
continue to provide the current level of service and to maintain a growing inventory of
stormwater green infrastructure facilities. The current level of service and greater number of
green infrastructure facilities enable the City to protect public health and safety by preventing
flooding, enhance fish and wildlife habitat, and protect and improve water quality in our rivers
and streams. The rationale for the rate increase also includes avoiding large rate increases in
future years, the funding of capital reserves for replacement of assets without the need to issue
debt, and provides services over the long term in a financially sustainable manner.
Wastewater user fees fund the construction, operation, maintenance, and debt service of the
wastewater collection and treatment system. The proposed 4% increase in needed to maintain
existing local wastewater services necessary under the National Pollutant Discharge Elimination
System (NPDES) permit. The Metropolitan Wastewater Management Commission's (MWMC)
regional wastewater treatment facility that serves both Eugene and Springfield is requesting a
2.5% rate increase. K4VVMC's rate is independent of Eugene's rate.
Both the stormwater and wastewater fees are collected and spent out of their respective funds,
therefore 100% is being spent ontheir respective program areas. None ofthese expenses are
part ofthe General Fund budget.
5. Comment regarding low-inco e assistance.
w
With the passage ofthe parks bond and maintenance levy, this isanincreased burden.
How can low income people afford all these extra fees?
Response: There are customer assistance programs that are designed to help income -eligible
customers with their utility bills, including stonnwmterand wastewater fees. For more
information on how tuaccess these programs, contact Eugene Water and Electric Board (EVVE8)
who iothe billing agent for the City ofEugene.
6. Comment regarding electric vs stormwater costs.
w Aschool pays more instomnvvatercosts than itdoes inelectricity toheat the building
for a year,
Exhibit /\ToAdministrative Order S0 -{8 -O5 -p
• A school uses rainwater to irrigate and flush toilets then the remainder of the
stormwater drains to the swales onsite and does not go to the stormwater system.
Response: City of Eugene verified that the information about this school is inaccurate. The City
cannot release details about a customer's account without the customer's authorization.
Exhibit A to Administrative Order 58-18-05-F
Page 8 of 8
WASTEWATER USER FEE SCHEDULE
(Effective for all bills issued on or after July 1, 2018)
RATE COMPONENT
Rate
RESIDENTIAL:
Per Account Fee:
Cityof Eugene .....................................................................................................
No Charge
MWMC.................. .............................................................................................
$13.28
Sanitary Sewer Flow -Based Charge per 1,000 Gallons of Water Used:
Cityof Eugene ........................................................................................... I .........$2.351
MWMC................................................................................................................
$2.641
Total flow -based charge per 1,000 gallons of water used ....................................
$4.992
TYPICAL RESIDENTIAL BILLING: .........................................................................
(Per Account charge + 5 times the total flow based charge)
$38.24
COMMERCIAL/INDUSTRIAL:
Per Account Fee, All Commercial/Industrial Classes:
Cityof Eugene.....................................................................................................
No Charge
MWMC................................................................................................................
$13.28
Sanitary Sewer Flow -Base Charge Per 1,000 Gallons of Water Used by Customer
Class:
Low Strength Customer:
Cityof Eugene .....................................................................................................
$2.351
MWMC................................................................................................................
$3.551
Total flow -base charge per 1,000 gallons of water used ......................................
$5.902
Medium Strength Customer:
Cityof Eugene .....................................................................................................$2.351
MWMC................................................................................................................
$5.173
Total flow -base charge per 1,000 gallons of water used ......................................
$7.524
High Strength Customer:
Cityof Eugene .....................................................................................................
$2.351
Exhibit B to Administrative Order 58-18-05-F
Page 1 of 2
RATE COMPONENT
Rate
MWMC........................................................................................ I ............. I .........
$7.340
Total flow -base charge per 1,000 gallons of water used ......................................
$9.691
Very High Strength Customer:
Cityof Eugene .....................................................................................................
$2.351
MWMC................................................................................................................
$9.513
Total flow -base charge per 1,000 gallons of water used ......................................
$11.864
Super High Strength Customer:
Cityof Eugene .....................................................................................................
$2.351
MWMC................................................................................................................
$11.682
Total flow -base charge per 1,000 gallons of water used ......................................
$14.033
SEPTAGE HAULERS/HAULED WASTE (NON-SEPTAGE):
Cityof Eugene .....................................................................................................
No Charge
MWMC Septage: flow rate/1,000 gallons .......... ................................................$127.00
MWMC Hauled Waste (non-septage): flow rate/1,000 gallons. ....... I .... I ............
$127.00
Exhibit B to Administrative Order 58-18-05-F
Page 2 of 2