The URL can be used to link to this page

Home My WebLink AboutItem 3: Ordinaance Concerning Fee Setting and Charges ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Public Hearing: An Ordinance Concerning Setting Fees and Charges and Amending Sections 2.020, 2.442, and 6.411 of the Eugene Code Meeting Date: May 21, 2007 Agenda Item Number: 3 Department: City Manager’s Office Staff Contact: Mary Walston Department: City Attorney’s Office Staff Contact: Jerry Lidz www.eugene-or.gov Contact Telephone Number: 682-5406 ISSUE STATEMENT This is a public hearing on a proposed ordinance to revise slightly the directives to the City Manager for setting fees and charges. The Eugene Code assigns administrative rule-making authority to the City Manager (Section 2.019). In the later sections of the code proposed to be modified by the proposed ordinance, the criteria for setting fees and charges are defined. The proposed ordinance would grant the manager some flexibility in how these criteria are applied. BACKGROUND The impetus for the proposed revision comes from a recent Oregon Court of Appeals decision that interpreted the Code more strictly than staff believes was intended. In providing directives to the City Manager for setting of fees and charges, the current language in Section 2.020 states: In determining the amount of any such fee, the City Manager shall consider: a) Applicable policies, enactments and directives of the council; b) The amount charged by the City in the past; c) The full costs of providing the service supported by the fee; d) The amounts charged by other comparable providers; and, e) The revenue needs of the City as determined by the adopted City budget. In 2002, the City Manager issued an administrative order setting fees for utilities’ right-of-way use permits. Comcast subsequently challenged these fees in circuit court, which upheld the fees. Comcast appealed to the Oregon Court of Appeals, which declared that the fees were invalid because the City Manager had not expressly considered “the amounts charged by other comparable providers.” City staff had deemed that step unnecessary, because another provision in the Eugene Code, Section 7.300, expressly requires the fees for these permits to be set “in an amount sufficient to fully recover all of the City’s costs related to [the permit program].” Despite that specific directive in the Code, the Court of Appeals concluded that the right-of-way permit fees were invalid because the mandatory comparison to other “comparable providers” was not completed. The change to the fee-setting process in the proposed ordinance is narrow. It would allow the City Manager not to consider one or more of the factors listed in EC 2.020 if – but only if – the manager makes written findings that a particular factor is irrelevant or inapplicable. For instance, in setting the fees challenged in the Comcast case, the City Manager could have accompanied the fee order with a L:\CMO\2007 Council Agendas\M070521\S0705213.doc written finding that comparing the proposed fees to those charged in other cities was irrelevant in light of the specific directive in EC 7.300 that the fees must fully recover program costs and the fact that most other cities subsidize their right-of-way permit programs. The proposed ordinance also would make comparable changes to fee-setting provisions for airport fees and for stormwater and wastewater fees. A work session on the proposed ordinance was held on May 16, 2007; final action on the proposed ordinance is scheduled for May 29, 2007. RELATED CITY POLICIES The proposed ordinance would not directly affect City policies; it would revise the methods used by the City Manager to consider setting fees and charges. COUNCIL OPTIONS None at this time; this is a public hearing only. CITY MANAGER’S RECOMMENDATION The City Manager recommends that the ordinance as proposed move forward with final action scheduled for May 29, 2007. SUGGESTED MOTION None at this time, this is a public hearing. ATTACHMENTS A. Proposed Ordinance FOR MORE INFORMATION Staff Contact: Mary Walston Telephone: 682-5406 Staff E-Mail: mary.f.walston@ci.eugene.or.us L:\CMO\2007 Council Agendas\M070521\S0705213.doc ATTACHMENT A ORDINANCE NO. __________ AN ORDINANCE CONCERNING SETTING FEES AND CHARGES AND AMENDING SECTIONS 2.020, 2.442, and 6.411 OF THE EUGENE CODE, 1971. THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS: Section 1. Subsection (2) of Section 2.020 of the Eugene Code, 1971, is amended to provide: 2.020 City Manager - Authority to Set Fees and Charges. (2) Unless the city manager determines in writing that consideration of one or more of the following factors is irrelevant or inapplicable, [I]in determining the amount of any such fee the city manager shall consider: (a) Applicable policies, enactments and directives of the council; (b) The amount charged by the city in the past; (c) The full costs of providing the service supported by the fee; (d) The amounts charged by other comparable providers; and, (e) The revenue needs of the city as determined by the adopted city budget. Section 2. Section 2.442 of the Eugene Code, 1971, is amended to provide: 2.442 Airport Fees and Charges - Standards. Unless the city manager determines in writing that consideration of one or more of the following factors is irrelevant or inapplicable, [I]in determining the amount or rate of any charge, fee or rent imposed for the use of Mahlon Sweet Airport, the city manager or council shall consider the following: (a) The amount charged for such use in the past; (b) Comparable amounts or rates, if any, charged by other airports; (c) The amounts or rates and other municipal benefits agreed to by comparable users of the airport in a contract, lease, or permit; and, (d) The revenue needs of the airport. Section 3. Subsection (2) of Section 6.411 of the Eugene Code, 1971, is amended to provide: 6.411 Ratemaking . (2) Standards. Unless the city manager determines in writing that one or more of the following factors is irrelevant or inapplicable, [T]the amount or rate of any charge for wastewater service, stormwater Ordinance - 1 L:\CMO\2007 Council Agendas\M070521\S0705213-attA.DOC service or regional wastewater treatment service shall be based on the following: (a) The amount charged for such service in the past; (b) For regional wastewater treatment services the recommendation, if any, of the Metropolitan Wastewater Management Commission, or any successor agency; (c) Applicable federal or state regulations or conditions imposed as part of a federal or state grant or financial assistance agreement; (d) The amounts charged or proposed to be charged by the city of Springfield and other providers of stormwater or wastewater services for comparable services; (e) The revenue needed to pay for the direct and indirect expected costs of constructing, operating, maintaining, and replacing local and regional sewerage facilities based on the adopted budgets of the city of Eugene and the Metropolitan Wastewater Management Commission or its successor, the debt obligations of the city or other entities for construction of the facilities, adopted capital improvement plans of the council, the expected need for financial reserves and contingencies, and other sources of revenue; (f) For an individual stormwater service customer that discharges stormwater that requires extraordinary expense to the city, special surcharge rates based on the type, concentration, quantity, quality and frequency of the discharge. (g) Other relevant adopted policies of the council; (h) The terms of any applicable intergovernmental agreement relating to wastewater or stormwater services or regional wastewater treatment service; and (I) The obtaining of equity between different classes of customers so that one class of customers does not pay more than its proportionate share of the expenses of providing sewer service. Section 4. The City Recorder, at the request of, or with the concurrence of the City Attorney, is authorized to correct any reference errors contained herein, or in other provisions of the Eugene Code, 1971, to the provisions added, amended or repealed herein. Passed by the City Council this Approved by the Mayor this _____ day of ____________, 2007 ____ day of _____________, 2007 ___________________________ ____________________________ City Recorder Mayor Ordinance - 2 L:\CMO\2007 Council Agendas\M070521\S0705213-attA.DOC