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HomeMy WebLinkAboutAdmin Order 58-96-06-F-1 ADMINISTRATIVE ORDER NO. 58-96-06-F-1 of the City Manager Pro Tern of the City of Eugene AMENDING METROPOLITAN WASTEWATER MANAGEMENT COMMISSION (MWMC) SYSTEMS DEVELOPMENT FEES AND CREDITS, AND REPEALING ADMINISTRATIVE ORDER #58-95-06-F, AND ANY OTHER ORDER IN CONFLICT The City Manager Pro Tem of the City of Eugene finds as follows: A. Sections 2.020 and 7.705 of the Eugene, Code, 1971 authorize 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, and specifically systems development charges. Section 7.710 of the Eugene Code, 1971 further authorizes the City Manager to adopt and/or amend by administrative order, the methodologies used for establishing the systems development charges, and provides this may be effected concurrent with the establishment or revision of a systems development charge. B. In accordance with the procedures set forth therein, on May 09, 1996 I issued Administrative Order No. 58-96-06 and notified the Mayor and City Councilors that I intended to: (1) amend the City of Eugene SDC Methodology to allow the adjustment of SDC charges and credits after development occurs, to establish a systems development charge methodology classification of "large Volume User" for commercial and industrial development discharging more than 100,000 gallons per day; and (2) amend the Metropolitan Wastewater Management Commission (MWMC) Equalization Fees and Credits thereto, as calculated by MWMC, all as set forth in the Notice attached as Exhibit A thereto and incorporated therein by reference, including the attachments thereto; and to repeal any Administrative Orders in conflict, including Administrative Order Number #58-95-06-F. C. The current City of Eugene Systems Development Charges (SDCs) for each system, were set forth in Table #1 of Exhibit A, to the Notice, and reflected a 2.15% increase based on the City Engineer's review of the National Construction Cost Index, published by the Engineering News Record for the preceding twelve months. These are automatically adjusted each year pursuant to Section 2.3 of the February, 1993 SDC Methodology and were included therein for ease of reference only, and therefore have not been replicated in Exhibit A hereto. D. The Notice was published on May 9, 1996 in the Register Guard, a newspaper of general circulation within the City, p'osted in four public places, and was made available for inspection by interested persons during normal business hours (8:00 am to 5:00 pm Monday through Friday, exclusive of holidays), as more fully set forth in the notice. In addition thereto, a public verbal comment session was held on June 19th from 5:30 p.m. to 6:07 p.m. The Notice provided that written comments could be submitted thereon for a period of 45 days from the date of posting and publication, and that consideration would be given to verbal comments at the June 19th session. Numerous comments were received, to which I make the following findings: Comments on MWMC SDC Fees and Credits: One comment asserted that the MWMC SDC fees were too high, while other comments objected to the proposed rates on the basis that they were too low to provide for a full cost recovery, and should be established in an amount that would recover the true costs. Administrative Order No. 58-96-06-F-1 Page 1 of 2 Findings: The proposed MWMC SDC fees and credits were calculated by MWMC to recover the actual cost of creating the capacity and in the manner required by the Intergovernmental Agreement. Except for removal of reference to "large volume user equivalent," they should be implemented as proposed. Comments on Revisions to SDC Methodology: Numerous comments were received objecting to the proposed revisions to the SDC Methodology, particularly with respect to the "Large Volume User" classification. In addition to the public comments, the City Council has expressed an interest to further review comments on this issue before I take final action on this classification. Findings: Based on the comments received, and the expressed interest of the City Council, no changes will be made at this time related to the "Large Volume User" classification. Except for amending the MWMC SDC fees and credits set forth in Section 4.0 of the Methodology, the revisions to the SDC Methodology proposed in Administrative Order No. 58-96-06 shall not be made at this time. As a consequence, any "Large Volume Users" will continue to have their SDCs calculated based on the existing methodology, until such time as I adopt an additional administrative order, which will not occur until after the City Council further discusses this issue. In addition to the above comments and findings, during the review period, staff noticed two typographical errors in the Regional Wastewater SDC rates, as set forth in Table #2, page 2 of Exhibit A to the Notice. The rate per plumbing fixture unit (PFU), should have been listed as $20.69 instead of $21.31; and the rate per 1,000 gallons average winter month's water consumption should have been listed as $55.17 instead of $56.83. Those corrections have been incorporated in Exhibit A hereto. E. Based on the findings set forth above, and the findings in paragraphs D through G of Administrative order #58-96-06, I find that the proposed MWMC Facilities Equalization Fee as calculated and requested by MWMC, and Credits thereto, for the fiscal year beginning July 1, 1996, are established in an amount designed to equal the amount existing system users have paid for reserve capacity since 1978; and as set forth in Exhibit A hereto, are established in conformity with applicable state law, adopted City policies, guidelines, and ordinances, including Sections 2.020 and 7.710 of the Eugene Code, 1971, are comparable and generally below the fees charged by other jurisdictions, and should be implemented for all permits issued on or after July 1, 1996. On the basis of these findings, I order that: 1. The Metropolitan Wastewater Management Commission (MWMC) SDC Fees and credits are hereby amended as set forth in Exhibit A, hereto, which is attached hereto and incorporated herein by reference, effective as to all permits issued on or after 12:01 am on July 01, 1996. 2. Section 4.0 of the City's Systems Development Methodology is amended to reflect the fees amended herein. 3. Administrative Order No. 58-95-06-F and the fees and credits established therein are hereby repealed, as of midnight, June 30, 1996. Dated this 28th day of June, 1996. ~ ~ ~ 1 Q:-^-W "t;,'" Linda H. Norris /1t..~r City Manager Pro Tem Administrative Order No. 58-96-06-F-1 Page 2 of 2 REGIONAL SYSTEMS DEVELOPMENT CHARGE (SDC) FEES, AND CREDITS (Effective July 01,1996) SYSTEM RATES WASTEWATER - MWMC (REGIONAL) Cost per dwelling unit $331.00 Cost per plumbing fixture unit (PFU) $20.69 Cost per 1,000 gallons average winter month's water consumption $55.17 MWMC Administrative Fee $10.00 MWMC FACILITIES EQUALIZATION CREDITS: A credit may be applied to reduce the MWMC Facilities Equalization Fee, if the property is within the City of Eugene at the time of the permit application. The credit amount for the 1997 Fiscal year and comparison to current credit amount is: Exhibit A of Administrative Order #58-96-06-F-1