Loading...
HomeMy WebLinkAboutAdmin Order 58-25-03-F -- SW User Fees (FY26 )Administrative Order - Page 1 of 2 ADMINISTRATIVE ORDER NO. 58-25-03-F of the City Manager of the City of Eugene SETTING STORMWATER USER FEES AND SUPERSEDING THE FEE SCHEDULE ADOPTED BY ADMINISTRATIVE ORDER NO. 58-24-29-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 October 1, 2024, I issued Administrative Order No. 58-24-29-F amending the Stormwater User Fee Schedule. B.On March 26, 2025, I issued Administrative Order No. 58-25-03 ordering that notice be given of the opportunity to submit comments on my proposal to set new stormwater user fees. The Notice specified that comments on the proposed rates for stormwater service could be submitted orally at the public hearing which would be held remotely on April 10, 2025, at noon using virtual meeting technology, and that written comments could otherwise be submitted to the City’s Public Works Financial Services Manager until 5 p.m. on April 10, 2025. There was no testimony at the public hearing; however, one written comment was submitted and this comment 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 stormwater service using the criteria in EC 6.411(2), and after considering the comments submitted, I find that the stormwater user fees should be amended as proposed. (See Exhibit B.) D.The unamended stormwater user fees adopted by Administrative Order No. 58-24- 2 9-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 Stormwater User Fee Schedule attached as Exhibit A to this Order is the schedule of fees to be charged for the described services effective for all bills issued on or after July 1, 2025. Administrative Order - Page 2 of 2 3. The Fee Schedule attached to Administrative Order No. 58-23-19-F is superseded by the Stormwater User Fee Schedule attached as Exhibit A to this Order effective for all bills issued on or after July 1, 2025. Dated this 05/29/2025 day of May, 2025. Sarah Medary, City Manager Unless reviewed by Council pursuant to EC 6.411(1)(f), this Order becomes final on June 9 , 2025. Matt Rodrigues (May 29, 2025 14:55 PDT) Page 1 of 1 STORMWATER USER FEE SCHEDULE (Effective for all bills issued on or after July 1, 2025) Stormwater User Fees are the sum of charges for impervious surface, street-related run-off and an administrative fee. The three categories of “residential” fees all refer to single-family dwellings, and are described as follows: 1. Small Residential Customer. Building footprint is equal to or less than 1,000 square feet. 2. Medium Residential Customer. Building footprint is greater than 1,000 square feet and less than 3,000 square feet. 3. Large Residential Customer. Building footprint is 3,000 square feet or greater. All users other than single family homes and duplexes are included as Commercial/Industrial. The fee for a duplex is calculated as follows: The administrative portion of the fee is based on a single residential account; the street-related portion of the fee is twice the amount for a single family dwelling; and the charge for impervious surface is the same as for a single-family dwelling if the duplex has a vertical configuration and twice that rate if the duplex has a horizontal configuration. The term “per 1,000 sf” refers to square foot of impervious surface area. Small Residential Medium Residential Large Residential Commercial/Industrial Impervious Surface: $9.90 $15.95 $5.50 per 1,000 sf $5.50 per 1,000 sf Street-Related: $2.76 $2.76 $2.76 $1.96 per 1,000 sf Administrative: $0.82 $0.82 $2.57 $2.57 Total Monthly Fee: $13.48 $19.53 Varies Varies Application Fees: Fees Reduction or Elimination of Discharge .............................................. $150.00 Reduction of Impervious Area: Small or Medium Residential Customer ......................................... $50.00 General Customer ............................................................................ $100.00 Exhibit A to Administrative Order No. 58-25-03-F Exhibit B to Administrative Order 58-25-03-F Page 1 of 6 CITY MANAGER’S FINDINGS Proposed Stormwater Fee Schedule Amendments Stormwater fees support services that protect clean water in Amazon Creek and the Willamette River, enhance fish and wildlife habitat, and reduce the risk of flooding. An investigation was conducted to determine stormwater revenue needs through FY26. The investigation included the following factors, as outlined in Eugene Code 6.411. There are many components to the stormwater program. When it rains in Eugene, water hits roofs, lawns, sidewalks and streets, and picks up oil from cars, sediment, bacteria, grease, and other chemicals associated with urban life. Instead of soaking into the ground, nature’s natural filter in non-urban areas, these contaminants are carried along streets and through underground storm pipes, culverts and roadside ditches, discharging directly into Amazon Creek or the Willamette River. Pipes and culverts catch leaves, sediment and litter and must be cleaned regularly. Green infrastructure such as vegetated swales and rain gardens have been installed to provide treatment for stormwater runoff in some areas and must also be maintained. Street sweeping, leaf pick up, piped system cleaning, and vegetation maintenance of rain gardens are just a few of the stormwater operations that the city provides to maintain this system. In addition to protecting clean water and healthy habitat, a functioning stormwater system also reduces the risk of flooding. The City of Eugene is proposing to increase the stormwater user fee by 5%, effective July 1, 2025. The FY26 rate increase provides the resources to invest in several solutions that address issues impacting the stormwater service. Specifically, this funding will be used to contribute to the addition of 1.50 full time equivalent (FTE) that focus on keeping the right-of-way (ROW) in the downtown core area clean of trash and debris so that it does not make it ways to storm drains or the river. Additionally, this fee increase will allow the stormwater service to partner in the addition of 0.30 of a FTE in the Engineering Division for Capital Project Delivery, Housing and Development; 0.20 FTE in the Wastewater Division for increased workload for operations and maintenance one-third of the cost of a security contract at Roosevelt Yard. The fee increase will also keep pace with inflation that this service is expecting to see over the forecast period. Pursuant to Sections 6.411(1) and (2), the City Manager has conducted an investigation of the revenue needs of the City in conducting stormwater operations and has examined the following criteria in determining the proposed stormwater fees: Exhibit B to Administrative Order 58-25-03-F Page 2 of 6 1) The amount charged for such service in the past. Findings: Small Residential Medium Residential Large Residential Commercial/Industrial Current Impervious Surface: $9.43 $15.20 $5.24 per 1,000 sf $5.24 per 1,000 sf Proposed fees: $9.90 $15.95 $5.50 $5.50 Current Street-Related: $2.63 $2.63 $2.63 $1.87 per 1,000 sf Proposed fees: $2.76 $2.76 $2.76 $1.96 Current Administrative: $0.78 $0.78 $2.45 $2.45 Proposed fees: $0.82 $0.82 $2.57 $2.57 Current Total Monthly Fee: $12.84 $18.61 Varies Varies Proposed fees: $13.48 $19.53 Varies Varies Application Fees: Fees Proposed Reduction or Elimination of Discharge .............................................. $150.00 No change to this fee Reduction of Impervious Area: Small or Medium Residential Customer ......................................... $ 50.00 No change to this fee General Customer ............................................................................ $100.00 No change to this fee 2) Applicable federal or state regulations or conditions imposed as part of a federal or state grant or financial assistance agreement. Findings: N/A Exhibit B to Administrative Order 58-25-03-F Page 3 of 6 3) The Amounts charged or proposed to be charged by the City of Springfield and other providers of stormwater services for comparable services. Findings: All the cities included in the chart below are regulated under the MS4 permit program, with an important distinction. “MS4 Phase I permittees” tend to represent larger and more densely populated areas and must meet additional obligations compared to the smaller “MS4 Phase II permittees.” The table reflects this distinction in those rates for Medford, Corvallis, Springfield, and Albany, all MS4 Phase II permittees, are on the lower end of the range. All others in the table are MS4 Phase I permittees and their stormwater programs are more comparable to Eugene’s except for Portland which, in many older areas of the city, operates a combined stormwater and stormwater system, so the programs are not comparable in scope. Residential Stormwater Rate Survey Results $49.71 $50.00 $45.00 $40.00 $35.00 $30.00 $25.00 $20.00 $21.64 $23.80 $17.28 $17.82 $19.48 $19.53 $15.00 $10.00 $5.00 $- $9.15 $11.20 Exhibit B to Administrative Order 58-25-03-F Page 4 of 6 4) The revenue needed to pay for the direct and indirect expected costs of constructing, operating, maintaining, and replacing local and regional stormwater facilities based on the adopted budgets of the city of Eugene, 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. Sources of Funds: FY26 Beginning Working Capital $5,720,938 Current Rate Revenue $24,848,000 Rate Increase Revenue $1,242,050 Other Revenue $846,000 Total Resources $32,656,988 Uses of Funds:* Operations & Maintenance $18,673,660 Capital Projects $2,465,000 Administration $2,799,877 Planning $1,506,999 Utility Right of Way Fee $1,424,500 Utility Administration $1,210,106 Education $533,492 Ending Working Capital $4,043,354 Total Requirements $32,656,988 Rate Increase - Proposed 5.0% *The rate increase is included in the cost of the above programs. 5) 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. Findings: The current fee structure is set up so the more stormwater a large residential or industrial/commercial property discharges, the more they pay for the City to manage it once it gets to the public system. 6) Other relevant adopted policies of the council. Findings: City Council adopted Comprehensive Stormwater Management Plan (CSWMP, 1993) which includes goals, policies and implementation actions that provide the framework for an integrated multiple-objective approach to stormwater management. 7) The terms of any applicable intergovernmental agreement relating to stormwater services or regional stormwater treatment service. Findings: There are no additional new intergovernmental agreements between the City of Eugene Exhibit B to Administrative Order 58-25-03-F Page 5 of 6 and other entities that will impact the proposed rates. Existing relevant intergovernmental agreements (e.g. City of Eugene/Lane County Stormwater IGA, City of Eugene/Lane County Maintenance IGA) are cost neutral and are updated periodically as needed to maintain parity in level of effort and resources. 8) 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. Findings: The stormwater fee schedule is set up to charge customers whose residence or business generates more stormwater runoff a higher fee. There are three classes of rates for residential customers based upon impervious surface area: small, medium, and large. Small and medium residential pay a flat rate. Large residential and commercial/industrial customers pay per square footage of impervious surface area. 9) In addition to the forgoing considerations, in determining the amounts or rates to be charged for stormwater service, the city manager shall consider the value of the use and occupancy of the city’s right-of-way by the city stormwater system. Findings: The City of Eugene stormwater 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. RESPONSE TO PUBLIC COMMENTS During the 15-day comment period, the City received one written comment regarding the proposed amendments to the Stormwater Fee Schedule. A summary of the comment received, and findings addressing the comment, are set out below: The participant asked for more information about the basis for the increase in fees and suggested that the City hire contractors to perform all park and open space maintenance instead of City employees. Response: The City has a contract with the AFSCME Union that requires an evaluation process to outsource union work. This evaluation process can be started as needed. Exhibit B to Administrative Order 58-25-03-F Page 6 of 6 This participant also suggested that the City adopt lower rates for property owners that are 60 years of age and over. Response: While there are not any discounts offered on Stormwater user fees based on age or ownership status, the City does contribute to EWEB’s low-income assistance program for eligible customers. This program is also available to property owners that are 60 years of age and over who meet eligibility requirements. No changes will be made to the fee schedule as a result of this comment.