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HomeMy WebLinkAboutAdmin Order 58-25-04-F -- Wastewater User Fees (FY26)Administrative Order – Page 1 of 2 ADMINISTRATIVE ORDER NO. 58-25-04-F of the City Manager of the City of Eugene SETTING WASTEWATER USER FEES AND SUPERSEDING THE FEE SCHEDULE ADOPTED BY ADMINISTRATIVE ORDER NO. 58-24-03-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 13, 2024, I issued Administrative Order No. 58-24-03-F amending the Wastewater User Fee Schedule. B.On March 26, 2025, I issued Administrative Order No. 58-25-04 ordering that notice be given of the opportunity to submit written comments on the proposal to set new wastewater user fees. The Notice specified that comments on the proposed rates for wastewater 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 and no comments were received within the time or in the manner described in the Notice. C.Based on my investigation of the revenue needs of the City in providing wastewater service using the criteria in EC 6.411(2), I find that the fees should be set as proposed. (See Exhibit B.) D.The unamended wastewater fees adopted by Administrative Order No. 58-24-03-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 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 The Fee Schedule attached to Administrative Order No. 58-24-03 is superseded by the Wastewater User Fee Schedule attached as Exhibit A to this Order effective for all bills issued on or after July 1, 2025. Dated this 05/29/2025 day of May, 2025. Matt Rodrigues (May 29, 2025 14:54 PDT) Sarah Medary City Manager Unless reviewed by Council pursuant to EC 6.411(1)(f), this Order becomes final on June 9 , 2025. Exhibit A to Administrative Order No. 58-25-04 Page 1 of 2 WASTEWATER USER FEES (Effective for all bills issued on or after July 1, 2025) RATE COMPONENT Rate RESIDENTIAL: Per Account Fee: City of Eugene ........................................................................................ No charge MWMC................................................................................................... $16.79 Sanitary Sewer Flow-Based Charge per 1,000 Gallons of Water Used: City of Eugene ........................................................................................ $3.361 MWMC................................................................................................... $3.341 Total flow-based charge per 1,000 gallons of water used ......................................................................................................... $6.702 TYPICAL RESIDENTIAL BILLING: ........................................................... (Per Account charge + 5 times the total flow-based charge) $50.31 COMMERCIAL/INDUSTRIAL: Per Account Fee, All Commercial/Industrial Classes: City of Eugene ........................................................................................ No charge MWMC................................................................................................... $16.79 Sanitary Sewer Flow-Base Charge Per 1,000 Gallons of Water Used by Customer Class: Low Strength Customer: City of Eugene ........................................................................................ $3.361 MWMC................................................................................................... $4.492 Total flow-base charge per 1,000 gallons of water used ........................ $7.853 Medium Strength Customer: City of Eugene ........................................................................................ $3.361 MWMC................................................................................................... $6.543 Exhibit A to Administrative Order No. 58-25-04 Page 2 of 2 RATE COMPONENT Rate Total flow-base charge per 1,000 gallons of water used ........................ $9.904 High Strength Customer: City of Eugene ........................................................................................ $3.361 MWMC................................................................................................... $9.284 Total flow-base charge per 1,000 gallons of water used ........................ $12.645 Very High Strength Customer: City of Eugene ........................................................................................ $3.361 MWMC................................................................................................... $12.033 Total flow-base charge per 1,000 gallons of water used ........................ $15.394 Super High Strength Customer: City of Eugene ........................................................................................ $3.361 MWMC................................................................................................... $14.777 Total flow-base charge per 1,000 gallons of water used ........................ $18.138 SEPTAGE HAULERS/HAULED WASTE (NON-SEPTAGE): City of Eugene ........................................................................................ No charge MWMC Septage: flow rate/1,000 gallons ............................................. $152.00 MWMC Hauled Waste (non-septage): flow rate/1,000 gallons.................................................................................................... $152.00 Exhibit B to Administrative Order No. 58-25-04-F Page 1 of 5 CITY MANAGER’S FINDINGS Proposed Wastewater Fee Schedule Amendments 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 5%, effective July 1, 2025. This rate increase is necessary to balance this fund and end the 6-year forecast window with a balance available that is at the City’s two-month operating reserve target. Inflationary pressures experienced by this industry are addressed within this rate increase, as well as the addition of 0.30 of a FTE in the Engineering Division for Capital Project Delivery: Housing and Development, 0.20 FTE at the Wastewater Treatment Plant for increased workload for operations and maintenance and one-third of the cost of a security contract at Roosevelt Yard. Pursuant to Sections 6.411(1) and (2), the City Manager has conducted an investigation of the revenue needs of the City in conducting wastewater operations and has examined the following criteria in determining the proposed wastewater fees: 1) The amount charged for such service in the past. Findings: RATE COMPONENT CURRENT RATE PROPOSED RATE RESIDENTIAL: Per Account Fee: City of Eugene …………………………………………………………………………………………….. No charge No charge MWMC ………………………………………………………………………………………………………… $15.99 $16.79 Sanitary Sewer Flow-Based Charge per 1,000 Gallons of Water Used: City of Eugene …………………………………………………………………………………………….. $3.201 $3.361 MWMC ………………………………………………………………………………………………………… $3.182 $3.341 TYPICAL RESIDENTIAL BILLING: …………………………………………………………………………. (Per Account charge + 5 times the total flow-based charge) $47.91 $50.31 COMMERCIAL/INDUSTRIAL: Exhibit B to Administrative Order No. 58-25-04-F Page 2 of 5 Per Account Fee, All Commercial/Industrial Classes: City of Eugene …………………………………………………………………………………………….. No charge No charge MWMC ………………………………………………………………………………………………………… $15.99 $16.79 Sanitary Sewer Flow-Base Charge Per 1,000 Gallons of Water Used by Customer Class : Low Strength Customer: City of Eugene …………………………………………………………………………………………….. $3.201 $3.361 MWMC ………………………………………………………………………………………………………… $4.278 $4.492 Total flow-base charge per 1,000 gallons of water used………………………….. $7.479 $7.853 Medium Strength Customer: City of Eugene …………………………………………………………………………………………….. $3.201 $3.361 MWMC ………………………………………………………………………………………………………… $6.231 $6.543 Total flow-base charge per 1,000 gallons of water used………………………….. $9.432 $9.904 High Strength Customer: City of Eugene …………………………………………………………………………………………….. $3.201 $3.361 MWMC ………………………………………………………………………………………………………… $8.842 $9.284 Total flow-base charge per 1,000 gallons of water used………………………….. $12.043 $12.645 Very High Strength Customer: City of Eugene …………………………………………………………………………………………….. $3.201 $3.361 MWMC ………………………………………………………………………………………………………… $11.460 $12.033 Total flow-base charge per 1,000 gallons of water used………………………….. $14.661 $15.394 Super High Strength Customer: City of Eugene …………………………………………………………………………………………….. $3.201 $3.361 MWMC ………………………………………………………………………………………………………… $14.073 $14.777 Total flow-base charge per 1,000 gallons of water used………………………….. $17.274 $18.138 SEPTAGE HAULERS/HAULED WASTE (NON-SEPTAGE): City of Eugene …………………………………………………………………………………………….. No charge No charge MWMC Septage: flow rate/1,000 gallons …………………………………………………… $148.00 $152.00 MWMC Hauled Waste (non-septage): flow rate/1,000 gallons ……………………. $148.00 $152.00 2) For regional wastewater treatment services, the recommendation, if any, of the Metropolitan Wastewater Management Commission, or any successor agency. Findings: MWMC is proposing a 5% increase in regional wastewater rates over the current rate, and a 2.7% increase in the Septage Hauler/Hauled Waste fee over the current fee, effective July 1, 2025. MWMC is holding a public hearing specific to the proposal on April 11, 2025, and its recommendation will follow. 3) Applicable federal or state regulations or conditions imposed as part of a federal or state grant or financial assistance agreement. Exhibit B to Administrative Order No. 58-25-04-F Page 3 of 5 Typical Residential Wastewater Rate (5kgal) $100.00 $90.00 $80.00 $89.26 $89.72 $70.00 $60.00 $50.00 $40.00 $66.80 $62.17 $46.23 $47.76 $48.22 $50.31 $30.00 $20.71 $20.00 $10.00 $0.00 Findings: 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 102486) for the Eugene/Springfield Water Pollution Control Facility (i.e., the regional treatment plant at 410 River Ave, Eugene). The permit describes conditions and limitations to ensure public health and safety and protection of the environment. The FY25 budget for the regional wastewater program will provide funding for the City to carry out operations and maintenance activities and services necessary under the NPDES permit. 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 102486) for the Eugene/Springfield Water Pollution Control Facility (i.e., the regional treatment plant at 410 River Ave, Eugene). The permit describes conditions and limitations to ensure public health and safety and protection of the environment. The FY25 budget for the regional wastewater program will provide funding for the City to carry out operations and maintenance activities and services necessary under the NPDES permit. 4) The Amounts charged or proposed to be charged by the City of Springfield and other providers of wastewater services for comparable services. Findings: 5) 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 Exhibit B to Administrative Order No. 58-25-04-F Page 4 of 5 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. For an explanation of regional wastewater fee increases, which are set by the Metropolitan Wastewater Management Commission, please see the April 11, 2025 meeting for MWMC at www.mwmcpartners.org/meetings/. Findings: Sources of Funds: FY26 Beginning Working Capital $1,963,833 Current Rate Revenue $14,190,000 Rate Increase Revenue $665,000 Other Revenue $660,200 Total Resources $17,479,033 Uses of Funds: Operations & Maintenance $9,977,572 Capital Projects $2,380,000 Administration $2,062,682 Utility Right of Way Fee $891,300 Utility Administration $701,516 Ending Working Capital $1,465,963 Total Requirements $17,479,033 Rate Increase - Proposed 5.0% *The rate increase is included in the cost of the above programs. 6) Other relevant adopted policies of the council. Findings: There are no other relevant policies adopted by the City Council that will impact the FY26 proposed rates. 7) The terms of any applicable intergovernmental agreement relating to wastewater services or regional wastewater treatment service. Findings: 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. 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. Exhibit B to Administrative Order No. 58-25-04-F Page 5 of 5 Findings: 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. 9) In addition to the forgoing considerations, in determining the amounts or rates to be charged for wastewater service, the city manager shall consider the value of the use and occupancy of the city’s right-of-way by the city wastewater system. Findings: 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.