HomeMy WebLinkAboutAdmin Order 58-22-15-F -- Final WW User FeesAdministrative Order - Page 1 of 2
MR
ADMINISTRATIVE ORDER NO. 58-22-15-F
of the
City Manager of the City of Eugene
SETTING WASTEWATER USER FEES AND SUPERSEDING THE FEE
SCHEDULE ADOPTED BY ADMINISTRATIVE ORDER NO. 58-21-06-F.
The City Manager of the City of Eugene finds 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 17, 2021, I issued
Administrative Order No. 58-21-06-F making the most recent changes to the wastewater user fees
and adopting an updated Wastewater User Fee Schedule.
B. On March 14, 2022, I issued Administrative Order No. 58-22-15, ordering that
notice be given of the opportunity to submit written comments on my proposal to set new
wastewater user fees. The Notice specified that comments on the proposed rates for local (City of
Eugene) wastewater service could be submitted orally at the public hearing which would be held
remotely on April 6, 2022, at noon using virtual meeting technology, and that written comments
could otherwise be submitted to the City’s Public Works Financial Manager until 5 p.m. on April
6, 2022. The Notice further provided that comments on the proposed rates for regional (MWMC)
wastewater service could be submitted at the Metropolitan Wastewater Management Commission
virtual meeting on Friday, April 8, 2022, at 7:30 a.m., and that written comments could otherwise
be submitted to the MWMC Secretary until 9 a.m. on April 8, 2022. One comment was submitted
which is addressed in the City Manager’s Findings attached as Exhibit B to this Order.
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 comment that was submitted,
I find that the wastewater user fees should be amended as proposed. (See Exhibit B)
D. The unamended wastewater user fees adopted by Administrative Order No. 58-21-
06-F are incorporated into the Fee Schedule attached as Exhibit A to this Order.
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 11th day after the date it is rendered.
2. Notwithstanding the effective date of this Order as set forth above, the Wastewater
User Fee Schedule attached as Exhibit A to this Order is the schedule of fees to be charged for the
Administrative Order - Page 2 of 2
described services, effective for all bills issued on or after July 1, 2022.
3. The Fee Schedule attached to Administrative Order No. 58-21-06-F is superseded
by the Wastewater User Fee Schedule attached as Exhibit A to this Order, effective for all bills
issued on or after July 1, 2022.
Dated this 23rd day of May, 2022.
Sarah Medary
City Manager
Unless reviewed by Council pursuant to EC 6.411(1)(f), this Order becomes final
on June 3rd, 2022.
Exhibit A to
Administrative Order No. 58-22-15-F
Notice - Page 1 of 2
WASTEWATER USER FEES
(Effective for all bills issued on or after July 1, 2022)
RATE COMPONENT Rate
RESIDENTIAL:
Per Account Fee:
City of Eugene ...................................................................................................... No charge
MWMC................................................................................................................. $14.51
Sanitary Sewer Flow-Based Charge per 1,000 Gallons of Water Used:
City of Eugene ...................................................................................................... $2.721
MWMC................................................................................................................. $2.886
Total flow-based charge per 1,000 gallons of water used .................................... $5.607
TYPICAL RESIDENTIAL BILLING: .........................................................................
(Per Account charge + 5 times the total flow based charge)
$42.55
COMMERCIAL/INDUSTRIAL:
Per Account Fee, All Commercial/Industrial Classes:
City of Eugene ...................................................................................................... No charge
MWMC................................................................................................................. $14.51
Sanitary Sewer Flow-Base Charge Per 1,000 Gallons of Water Used by Customer
Class:
Low Strength Customer:
City of Eugene ...................................................................................................... $2.721
MWMC................................................................................................................. $3.880
Total flow-base charge per 1,000 gallons of water used ...................................... $6.601
Medium Strength Customer:
City of Eugene ...................................................................................................... $2.721
MWMC................................................................................................................. $5.652
Total flow-base charge per 1,000 gallons of water used ...................................... $8.373
Exhibit A to
Administrative Order No. 58-22-15-F
Notice - Page 2 of 2
RATE COMPONENT Rate
High Strength Customer:
City of Eugene ...................................................................................................... $2.721
MWMC................................................................................................................. $8.020
Total flow-base charge per 1,000 gallons of water used ...................................... $10.741
Very High Strength Customer:
City of Eugene ...................................................................................................... $2.721
MWMC................................................................................................................. $10.395
Total flow-base charge per 1,000 gallons of water used ...................................... $13.116
Super High Strength Customer:
City of Eugene ...................................................................................................... $2.721
MWMC................................................................................................................. $12.765
Total flow-base charge per 1,000 gallons of water used ...................................... $15.486
SEPTAGE HAULERS/HAULED WASTE (NON-SEPTAGE):
City of Eugene ...................................................................................................... No charge
MWMC Septage: flow rate/1,000 gallons .......................................................... $139.00
MWMC Hauled Waste (non-septage): flow rate/1,000 gallons .......................... $139.00
Exhibit B
to Administrative Order No. 58-22-15-F
Page 1 of 5
CITY MANAGER’S FINDINGS
Investigation of Wastewater Service Revenue Needs Pursuant to EC 6.411(2)
and Response to the Public Comment Regarding the Proposed Wastewater User Fee Amendment
All properties connected to the public wastewater system pay wastewater fees. Eugene provides local
wastewater collection services, and the Metropolitan Wastewater Management Commission (MWMC),
a partnership of Lane County and the cities of Eugene and Springfield, operates the regional wastewater
collection and treatment facilities.
The City of Eugene is proposing to increase local wastewater user fees by 7%, effective July 1, 2022. This
will likely be the first of a two‐step increase needed to balance this fund. As a reminder, this fund has
experienced revenue losses caused by the COVID‐19 pandemic, with approximately $700K lost in FY20,
and $440K lost in FY21. The majority of the loss in FY21 represents ongoing lost revenue due to the
Policy Team’s decision to keep user fees flat, in response to the community‐wide economic pressures
caused by the COVID‐19 pandemic. Costs to keep our existing service level are also rising. Internally, the
recent AFSCME contract adoption will increase costs approximately $200K per year for this fund.
Externally, the contracted services and materials purchased to provide this service are seeing the same
higher‐than‐normal price increases that many other industries are experiencing.
The lost revenue and the recent inflationary pressures on our operations costs are putting a significant
strain on this fund. The policy team implemented $1.15M of underspending over the last two fiscal
years to compensate for these pressures. The underspending was achieved by deferring maintenance
activities, such as performing less pipe cleaning and idling a full crew and repair truck (holding vacant
positions) which increases the risk for inflow & infiltration of groundwater into the wastewater system.
Deferring further maintenance work is not a sustainable option for this service. A higher than average
rate increase in FY23 is necessary to keep the wastewater service level consistent.
The current forecast period (FY23‐FY27) reflects a second rate increase of approximately 7% is likely in
FY24, with the remaining years of the forecast dropping to 2%‐4%, depending on economic activity and
inflation. The policy team will continue to evaluate future rate increases with the needs of the
infrastructure while also trying to support our community members and customers in these uncertain
economic times.
What has been charged in the past?
RATE COMPONENT
FY20
FY21
Current
Rate
FY22
Proposed
Rate FY23
RESIDENTIAL:
Per Account Fee:
City of Eugene ....................................... No
Charge
No
Charge
No
Charge
No
Charge
MWMC.................................................. $13.55 $13.55 $14.02 $14.51
Sanitary Sewer Flow‐Based Charge per 1,000
Gallons of Water Used:
Exhibit B
to Administrative Order No. 58-22-15-F
Page 2 of 5
RATE COMPONENT
FY20
FY21
Current
Rate
FY22
Proposed
Rate FY23
City of Eugene ....................................... $2.445 $2.445 $2.543 $2.721
MWMC.................................................. $2.694 $2.694 $2.788 $2.886
Total flow‐based charge per 1,000
gallons of water used ............................
$5.139
$5.139
$5.331
$5.607
TYPICAL RESIDENTIAL BILLING:.........................
(Per Account charge + 5 times the total flow‐
based charge)
$39.25
$39.25
$40.68
$42.55
COMMERCIAL/INDUSTRIAL:
Per Account Fee, All Commercial/Industrial
Classes:
City of Eugene ....................................... No
Charge
No
Charge
No
Charge
No
Charge
MWMC.................................................. $13.55 $13.55 $14.02 $14.51
Sanitary Sewer Flow‐Base Charge Per 1,000
Gallons of Water Used by Customer Class:
Low Strength Customer:
City of Eugene ....................................... $2.445 $2.445 $2.543 $2.721
MWMC.................................................. $3.622 $3.622 $3.749 $3.880
Total flow‐base charge per 1,000
gallons of water used...........................
$6.607
$6.067
$6.292
$6.601
Medium Strength Customer:
City of Eugene ....................................... $2.445 $2.445 $2.543 $2.721
MWMC.................................................. $5.276 $5.276 $5.461 $5.652
Total flow‐base charge per 1,000
gallons of water used...........................
$7.721
$7.721
$8.004
$8.373
High Strength Customer:
City of Eugene ....................................... $2.445 $2.445 $2.543 $2.721
MWMC.................................................. $7.787 $7.487 $7.749 $8.020
Total flow‐base charge per 1,000
gallons of water used...........................
$9.932
$9.932
$10.292
$10.741
Very High Strength Customer:
City of Eugene ....................................... $2.445 $2.445 $2.543 $2.721
MWMC.................................................. $9.703 $9.703 $10.043 $10.395
Total flow‐base charge per 1,000
gallons of water used...........................
$12.148
$12.148
$12.586
$13.116
Super High Strength Customer:
City of Eugene ....................................... $2.445 $2.445 $2.543 $2.721
MWMC.................................................. $11.916 $11.916 $12.333 $12.765
Total flow‐base charge per 1,000 $14.033 $14.033 $14.876
Exhibit B
to Administrative Order No. 58-22-15-F
Page 3 of 5
Typical Residential Wastewater Rate (5kgal)
$90.00
$80.00
$70.00
$60.00
$50.00
$40.00
$30.00
$20.00
$10.00
$0.00
$79.98 $83.09
$54.31
$41.46 $41.48 $42.50 $42.55
$26.53 $29.26
RATE COMPONENT
FY20
FY21
Current
Rate
FY22
Proposed
Rate FY23
gallons of water used........................... $15.486
SEPTAGE HAULERS/HAULED WASTE (NON‐
SEPTAGE):
City of Eugene ....................................... No
Charge
No
Charge
No
Charge
No
Charge
MWMC Septage: flow rate/1,000
gallons..................................................
$132.00
$132.00
$132.00
$139.00
MWMC Hauled Waste (non‐septage):
flow rate/1,000 gallons........................
$132.00
$132.00
$132.00
$139.00
What is MWMC’s Recommendation for FY23?
MWMC is proposing a 3.5% increase in regional user fees, effective July 2022. On April 8, 2022, MWMC
is holding a public hearing on that proposal. Its recommendation will follow.
What are the Federal and State regulations impacting FY23’s proposed rate increase?
The Oregon Department of Environmental Quality is charged with implementing state and federal rules
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 FY23 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.
How does the City of Eugene’s proposed rate compare to other similar service providers?
Exhibit B
to Administrative Order No. 58-22-15-F
Page 4 of 5
What is the revenue needed to pay for service proposed in the FY23 budget?
Sources of Funds:
Beginning Working Capital
$1,217,213
Current Rate Revenue $11,529,000
Rate Increase Revenue $807,000
Other Revenue $307,056
Total Resources $13,860,269
Uses of Funds:
Operations & Maintenance
$7,998,839
Capital Projects $1,940,000
Administration $1,737,209
Utility Right of Way Fee $724,000
Utility Administration $505,101
Ending Working Capital $955,120
Total Requirements $13,860,269
Rate Increase ‐ Proposed
7.0%
*The rate increase is included in the cost of the above programs.
Are there other relevant policies adopted by the City Council impacting the FY23 proposed rates?
There are no other relevant policies adopted by the City Council that will impact the FY23 proposed
rates.
Are any IGAs impacting the FY23 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 payers?
The wastewater fee schedule is a flow‐based fee set up to charge 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.
Exhibit B
to Administrative Order No. 58-22-15-F
Page 5 of 5
Percentage of Revenue for Use in the Right‐of‐Way
Cable TV 5%
EWEB 6%
Telecommunications
(including Internet access) 7%
NW Natural Gas 5%
COE Stormwater 6%
COE Wastewater 6%
Public Hearing Comments and Responses
Comment: One person asserted that customers do not have adequate input and that, as they pay more
for services, they receive less service. He asserted that the increase was not related to “the supply
chain.”
Response: No change is being made to the fee schedule as a result of the comments.
Signature:
Email:
mrodrigues@eugene‐or.gov
Matt Rodrigues (May 23, 2022 11:51 PDT)