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HomeMy WebLinkAboutAdmin Order 58-26-04-F -- Urban Forestry Fee AmendmentsAdministrative Order – Page 1 of 2 ADMINISTRATIVE ORDER NO. 58-26-04-F of the City Manager of the City of Eugene ADOPTING THE URBAN FORESTRY FEE SCHEDULE FOR TREE REMOVAL / FELLING AND THE STREET TREE PLANTING PROGRAM AND SUPERSEDING THE FEE SCHEDULE ADOPTED BY ADMINISTRATIVE ORDER NO. 58-18-12-F. The City Manager of the City of Eugene finds as follows: A. Sections 2.020, 6.310 and 7.280 of the Eugene Code, 1971 (EC) authorize the City Manager to determine and set fees and charges to be imposed by the City for tree felling permit applications and street tree planting costs. B. Pursuant to the above authority, on September 4, 2018, Administrative Order No. 58-18-12-F was issued making the most recent changes to the tree removal and street tree planting fees and adopting an updated Tree Removal and Street Tree Planting Fee Schedule (“the Fee Schedule”). C. On March 31, 2026, Administrative Order No. 58-26-04 was issued, ordering that notice be given of the opportunity to submit written comments on my proposal to set new tree removal and street tree planting fees and to rename the Fee Schedule. The Notice specified that comments on the proposed amendments would be accepted for 15 days from April 6, 2026, the date the Notice was published and posted. The written comments received during the public comment period are addressed in the City Manager's Findings attached as Exhibit B to this Order. D. Based on my investigation pursuant to the provisions of Sections 2.020, 6.310 and 7.280 of the Eugene Code, 1971, and after considering the comments that were submitted, I find that the fees should be set as proposed. (See Exhibit B to this Order) E. The unamended tree removal and street tree planting fees adopted by Administrative Order No. 58-18-12-F are incorporated into the Fee Schedule attached as Exhibit A to this Order. On the basis of these findings, I order that: 1. The Urban Forestry Fee Schedule for Tree Removal / Felling and the Street Tree Planting Program attached as Exhibit A to this Order is the schedule of fees to be charged for the described services effective May 15, 2026. 2. The Fee Schedule attached to Administrative Order No . 58-18-12-F is superseded by the Urban Forestry Fee Schedule for Tree Removal / Felling and the Street Tree Planting Program attached as Exhibit A to this Order, effective May 15 , 2026. Dated this 04 day of May, 2026. Administrative Order -Page 2 of 2 J?!:,~~~mat~UJa~f!qg eon Jennifer D. Haruyama City Manager Exhibit A to Administrative Order No. 58-26-04-F Page 1 of 2 Urban Forestry Fee Schedule for Tree Removal / Felling and the Street Tree Planting Program (Effective May 15, 2026) Fee Category Year 1 May 15, 2026 Year 2 Jul. 1, 2027 Year 3 Jul. 1, 2028 Year 4 Jul. 1, 2029 Year 5 Jul. 1, 2030 A. TREE REMOVAL / FELLING Permit Application Fee 1–10 trees to be felled, no public notice or comment period required $137.00 $141.11 $145.34 $149.70 $154.19 1–10 trees to be felled, public notice and comment period required $275.00 $283.25 $291.75 $300.50 $309.51 11–50 trees to be felled $550.00 $566.50 $583.50 $601.00 $619.03 51–100 trees to be felled $893.00 $919.79 $947.38 $975.80 $1,005.07 101 or more trees to be felled (base fee) $893.00 $919.79 $947.38 $975.80 $1,005.07 101 or more trees to be felled (per tree over 100) $1.72 $1.77 $1.82 $1.87 $1.93 Appeal Fee $859.00 $884.77 $911.31 $938.65 $966.81 Modification to Approved Permit: Same as the initial permit application fee. Enforcement -- Enhanced Permit Fees (after-the-fact permit for tree(s) felled without a permit) First Enhanced Permit issued to Responsible Person: Double the applicable permit fee. Subsequent Enhanced Permits issued to Responsible Person: Ten times the applicable permit fee. Enforcement -- Replacement Fee (for street tree or other public tree felled without a permit): The value of tree(s) felled as calculated using the appraisal method established by the Council of Tree & Landscape Appraisers (CTLA), with a minimum value of the cost to plant and establish a 2-inch caliper tree for three years plus the actual cost for the City to obtain that appraisal. Felling of City-Identified Hazard Tree(s): There is no fee required to accompany a permit to fell trees identified by the City as requiring removal due to poor health or hazard. B. STREET TREE PLANTING PROGRAM Per Eugene Code Section 7.280, developers creating new public street shall submit and obtain City approval of a street tree plan including selection of either the Developer Planting Option or the City Planting Option. Application Processing and Review Initial Application for Approval of Street Tree Plan $515.00 + $0.02/ft* $530.45 + $0.02/ft* $546.36 + $0.02/ft* $562.75 + $0.02/ft* $579.63 + $0.02/ft* Application to Modify Approved Street Tree Plan Same as initial fee Same as initial fee Same as initial fee Same as initial fee Same as initial fee Exhibit A to Administrative Order No. 58-26-04-F Page 2 of 2 Fee Category Year 1 May 15, 2026 Year 2 Jul. 1, 2027 Year 3 Jul. 1, 2028 Year 4 Jul. 1, 2029 Year 5 Jul. 1, 2030 Developer Planting Option Development of street tree plan agreement, review, administration and monitoring $344.00 $354.32 $364.95 $375.90 $387.18 Annual maintenance inspection (per year x 3 years) $0.43/ft* $0.44/ft* $0.45/ft* $0.46/ft* $0.47/ft* Final establishment inspection $0.43/ft* $0.44/ft* $0.45/ft* $0.46/ft* $0.47/ft* Tree establishment bond (security bond or cash deposit) $12.23/ft* $12.60/ft* $12.98/ft* $13.37/ft* $13.77/ft* City Planting Option Agreement processing fee $172.00 $177.16 $182.47 $187.94 $193.58 Tree establishment fee (one-time) $12.23/ft* $12.60/ft* $12.98/ft* $13.37/ft* $13.77/ft* *Footage = total footage of the development site abutting public street right-of-way, including exterior and interior subdivision streets except footage exempted by the City pursuant to R-7.280-D 1. or E 6.11. Exhibit B to Administrative Order 58-26-04-F Findings - Page 1 of 6 City Manager’s Findings Urban Forestry Fee Schedule for Tree Removal / Felling and the Street Tree Planting Program Pursuant to Section 2.020(2) of the Eugene Code, 1971, the City Manager has considered the following factors in determining the proposed amendments to the (currently titled) “Tree Removal and Street Tree Planting Program Fee Schedule.” The proposal to rename of the document is intended to more accurately describe the fees it establishes, since tree “removal” is only one of the ways a tree may be “felled” under the definition of “fell” at EC 6.030. This Findings document addresses fee adjustments for both the Tree Removal/Felling Permit Program (Section A of the Fee Schedule) and the Developer Street Tree Planting Program (Section B of the Fee Schedule). PART I: TREE REMOVAL PERMIT PROGRAM FINDINGS The following findings address the proposed fee adjustments for the Tree Removal Permit Program pursuant to Eugene Code Section 6.310. (a) Applicable policies, enactments and directives of the Council. Findings: The Eugene City Council has established urban forestry policies through Eugene Code Section 6.310, which establishes the tree felling permit program to regulate tree removal on private property. This regulatory framework reflects Council’s recognition that urban trees provide significant public benefits including air quality improvement, stormwater management, urban heat island mitigation, wildlife habitat, and community aesthetics. Eugene Code Section 2.020 authorizes the City Manager to set fees for city services, including permit application fees. The proposed fee adjustment ensures that the administrative costs of the tree removal permit program are borne by applicants seeking permits rather than subsidized by the general fund, consistent with Council’s directive for cost recovery where appropriate. The permit program serves dual purposes: (1) ensuring appropriate oversight of tree removal activities that affect the urban forest canopy, and (2) deterring unpermitted tree removal through the enhanced permit fee structure. The escalating fee structure for subsequent permits by the same responsible person reflects Council’s intent to strongly discourage repeat violations. (b) The amount charged by the City in the past. Findings: The current tree removal permit fees were established by Administrative Order No. 58-04-03-F, effective March 18, 2004. These fees have remained unchanged for over 21 years despite significant cumulative inflation. Fee History — Tree Removal Permits: Fee Category March 2004 Year 1 May 15, 2026 Years 2–5 (see Exhibit A) 1–10 trees (no public notice) $80.00 $137.00 $141.11 → $154.19 1–10 trees (public notice required) $160.00 $275.00 $283.25 → $309.51 11–50 trees $320.00 $550.00 $566.50 → $619.03 51–100 trees $520.00 $893.00 $919.79 → $1,005.07 101+ trees $520.00 + $1.00/tree $893.00 + $1.72/tree $919.79 + $1.77/tree → $1,005.07 + $1.93/tree Appeal fee (R-6.305-J) $500.00 $859.00 $884.77 → $966.81 Fee History Timeline: March 18, 2004 — Administrative Order No. 58-04-03-F established the current tree removal permit fee schedule. The tiered structure based on number of trees was designed to scale administrative burden with project complexity. Exhibit B to Administrative Order 58-26-04-F Findings - Page 2 of 6 September 4, 2018 — Administrative Order No. 58-18-12-F updated certain program rules. Tree removal permit fees remained unchanged. March 31, 2026 (Year 1 Proposed) — Fee adjustment of 71.76% based on CPI-U inflation from May 2004 through September 2025, bringing fees to current-dollar equivalents. Subsequent annual increases of 3% are established for Years 2 through 5 (July 1, 2027 through July 1, 2030) as shown in Exhibit A. The 21-year gap without fee adjustment means that the current fees represent only 58% of their inflation-adjusted value, resulting in an effective subsidy of permit processing costs by the general fund. (c) The full costs of providing the service supported by the fee. Findings: Tree removal permit processing involves multiple cost components within the Urban Forestry Program: Permit Processing Activities: Receipt and logging of permit applications; review of tree inventory database and field verification (as needed); evaluation of tree condition, context, and applicable code requirements; applicant consultation regarding preservation options and design alternatives; appraisal coordination for development-related permits (when applicable); permit issuance and documentation; and compliance monitoring and enforcement. Staff Time and Administrative Costs: Permit processing requires trained Urban Forestry staff with arboricultural expertise. Simple permits (1–10 trees, no public notice) typically require 1–2 hours of staff time. Complex permits involving public notice, multiple trees, or development contexts require substantially more staff involvement, including field visits, design consultation, and coordination with other City departments. The current fee of $80.00 for the simplest permit category does not cover the fully-loaded cost of staff time at current wage rates. The proposed Year 1 fee of $137.00 represents an inflation-adjusted amount that moves closer to, but does not exceed, actual processing costs. The five-year schedule provides for continued, incremental cost recovery through Year 5. Enhanced Permit Fee Structure: The fee schedule includes an enhanced permit fee (double the standard fee) for the first permit issued subsequent to unpermitted tree felling, and an escalating fee (ten times the standard fee) for each permit thereafter by the same responsible person. These enhanced fees are not designed for cost recovery but rather as deterrent measures consistent with Council policy to protect the urban forest from unauthorized removal. The proposed adjustments maintain the same multiplier relationships (2× and 10×) while applying the fee adjustments to the base fees. (d) The amounts charged by other comparable providers. Findings: Tree removal permit programs vary significantly among Oregon municipalities in scope, complexity, and fee structure. The following comparison provides regional context: Oregon Municipal Tree Removal Permit Fees (2024–2025): Jurisdiction Simple Permit Fee Notes Portland, OR $0 (as of July 2025) Fees eliminated through PCEF funding; permits still required Springfield, OR ~$1,563+ (corrective) Corrective tree felling permit; varies by circumstance Lake Oswego, OR $122 (3 or fewer trees) Tiered: $171 (4–10), $354 (11–25), $379+ (26+) West Linn, OR Type A: $24 Tiered based on permit complexity Fee structures across Oregon reflect different policy approaches. Eugene’s proposed fees fall within the mid-range of comparable Oregon municipalities when adjusted for program scope and regulatory requirements. Portland’s recent elimination of most tree permit fees was made possible through dedicated funding from the Portland Clean Energy Community Benefits Fund. Eugene does not have access to comparable dedicated funding, necessitating fee- based cost recovery for permit administration. Exhibit B to Administrative Order 58-26-04-F Findings - Page 3 of 6 (e) The revenue needs of the City as determined by the adopted city budget. Findings: The Tree Removal Permit Program operates within the Urban Forestry Program budget under Parks and Open Space. Unlike development-driven fees that generate predictable revenue streams, tree removal permit revenue is variable and depends on property owner decisions to remove trees. Revenue Considerations: The primary purpose of tree removal permit fees is not revenue generation but rather: (1) cost recovery for permit processing activities; (2) deterrence of unnecessary tree removal; (3) encouraging compliance with permit requirements; and (4) supporting the administrative infrastructure necessary for urban forest management. The proposed 71.76% Year 1 fee adjustment based on CPI-U brings tree removal permit fees to current-dollar equivalents. Subsequent annual increases of 3% in Years 2 through 5 provide for continued cost recovery and program sustainability. This five-year schedule ensures permit processing costs are not subsidized by general fund revenues and maintains the deterrent effect of enhanced permit fees in current dollars. PART II: STREET TREE PLANTING PROGRAM FINDINGS The following findings address the proposed fee adjustments for the Street Tree Planting Program, which provides for street tree establishment in new development areas pursuant to Eugene Code Section 7.280. (a) Applicable policies, enactments and directives of the Council. Findings: The Eugene City Council has established policies supporting urban forestry through Eugene Code Section 7.280, which authorizes the Developer Street Tree Program to ensure street tree planting in new development areas. The program supports the City’s broader goals for environmental sustainability, community livability, and climate resilience. The Council has also adopted Eugene Code Section 6.310 regarding tree removal permits and Section 2.020 authorizing the City Manager to set fees for city services. For the city-plant option, EC 7.280 requires the City Manager to establish fees that are “equal to the cost of the purchase, installation and establishment of the street trees required by the approved street tree plan.” For the developer-plant option, EC 7.280, fees must “reimburse the city for its costs in connection with plan review, inspection, administration and monitoring” The proposed fee adjustment aligns with Council’s directive that city programs operate on a cost-recovery basis where appropriate, ensuring that development-related costs are borne by development rather than subsidized by the general fund. (b) The amount charged by the City in the past. Findings: The current street tree establishment fee of $7.12 per linear foot was established by Administrative Order No. 58-04- 03-F, effective March 18, 2004. This fee has remained unchanged for over 21 years despite significant cumulative inflation. Fee History: March 18, 2004 — Administrative Order No. 58-04-03-F established the street tree establishment fee at $7.12 per linear foot for the City-Plant option, with the same rate applied to the Developer-Plant bond calculation. September 4, 2018 — Administrative Order No. 58-18-12-F updated program rules and administrative procedures. The per-linear-foot fee remained unchanged at $7.12. December 2022 — Urban Forestry staff prepared an internal memo recommending a fee increase based on CPI-U methodology. The fee update was not completed at that time. March 31, 2026 (Year 1 Proposed) — Fee of $12.23 per linear foot, representing a 71.76% increase based on CPI-U adjustment from May 2004 through September 2025. Subsequent annual increases of 3% are established for Years 2 through 5 (July 1, 2027 through July 1, 2030), reaching $13.77 per linear foot by Year 5. The 21-year gap between fee establishment and the proposed adjustment represents the longest period without a fee update in the program’s history. Exhibit B to Administrative Order 58-26-04-F Findings - Page 4 of 6 (c) The full costs of providing the service supported by the fee. Findings: The Developer Street Tree Program has been operating at a deficit for several fiscal years. An estimated $120,000 deficit is projected spread over the next several fiscal years due to the gap between the fee collected and actual tree planting and establishment costs. For the city-plant option, EC 7.280 requires the City Manager to establish fees that are “equal to the cost of the purchase, installation and establishment of the street trees required by the approved street tree plan.” For the developer-plant option, EC 7.280, fees must “reimburse the city for its costs in connection with plan review, inspection, administration and monitoring” Program Cost Components: Cost Component Rate/Amount Current contract tree planting and establishment $650 per tree Average program volume ~350 trees annually Estimated annual program cost ~$227,500 Projected multi-year program deficit $120,000+ Current Contract Reference: Four Seasons Trees, LLC Contract #2021-05306, Amendment #5 (November 7, 2025) — Tree Planting with Three-year Establishment at $650/tree. Case Study — The McKenzie at Crescent (recalculated at current contract rates): Metric Amount Fee received ($7.12/lf × 2,335 lf) $16,625 Actual cost at current rates (52 trees × $650/tree) $33,800 Project deficit $17,175 (51% shortfall) The current fee of $7.12 per linear foot covers only approximately 49% of actual program costs at current contract rates. The proposed Year 1 fee of $12.23 per linear foot represents an inflation adjustment using the Consumer Price Index for All Urban Consumers (CPI-U), reflecting 71.76% cumulative inflation from May 2004 through September 2025. At the Year 1 rate, fee coverage improves to approximately 84% of actual program costs. CPI-U Calculation: May 2004 CPI-U: 189.1; September 2025 CPI-U: 324.8; Cumulative inflation: (324.8 – 189.1) ÷ 189.1 = 71.76%; Adjusted fee: $7.12 × 1.7176 = $12.23 per linear foot. For reference, full cost recovery (100%) would require a fee of approximately $14.48 per linear foot based on current contract rates. The proposed CPI-adjusted Year 1 fee of $12.23/lf represents a conservative approach that brings the program substantially closer to cost recovery. The five-year schedule reaches approximately $13.77/lf by Year 5, approaching full cost recovery over time. (d) The amounts charged by other comparable providers. Findings: Street tree requirements and fee structures vary among Oregon municipalities. Many jurisdictions use in-lieu fees, per-tree charges, or frontage-based calculations. Direct fee comparisons are challenging due to different program structures, but the following provides regional context: Oregon Municipal Street Tree Programs: Jurisdiction Fee Structure Notes Portland, OR 1 tree per 25 lf of frontage In-lieu fees when planting not feasible Hillsboro, OR Developer plants; City oversight Development code requires street trees Corvallis, OR "Tree for a Fee" program Cost-recovery basis Salem, OR Developer plants; bond required Performance bond covers 3-year establishment Exhibit B to Administrative Order 58-26-04-F Findings - Page 5 of 6 Bend, OR Developer plants per approved plan City reviews and inspects Eugene’s Developer Street Tree Program is distinctive in offering a City-Plant option where the City assumes full responsibility for tree selection, planting, and establishment. This model provides consistent quality outcomes but requires adequate fee support. The proposed Year 1 fee of $12.23 per linear foot remains competitive with regional programs while achieving necessary cost recovery for the City of Eugene. (e) The revenue needs of the City as determined by the adopted city budget. Findings: The Developer Street Tree Program operates within the Urban Forestry Program budget under Parks and Open Space. The program’s current fee structure results in a deficit that must be absorbed by the work unit operating budget, reducing resources available for other urban forestry services. The proposed fee adjustment is necessary to: (1) achieve cost recovery for the Developer Street Tree Program; (2) ensure program sustainability without general fund subsidy; (3) preserve Urban Forestry resources for citywide tree maintenance; and (4) maintain service levels for the approximately 350 trees planted annually through the program. The five-year fee schedule provides a structured and predictable path toward improved cost recovery, with specific fee amounts established for each year through July 1, 2030, allowing the development community to plan accordingly. SUMMARY OF PROPOSED FEE ADJUSTMENTS A. Tree Removal Fees Fee Category Current Year 1 5/15/26 Year 2 7/1/27 Year 3 7/1/28 Year 4 7/1/29 Year 5 7/1/30 1–10 trees (no public notice) $80.00 $137.00 $141.11 $145.34 $149.70 $154.19 1–10 trees (public notice) $160.00 $275.00 $283.25 $291.75 $300.50 $309.51 11–50 trees $320.00 $550.00 $566.50 $583.50 $601.00 $619.03 51–100 trees $520.00 $893.00 $919.79 $947.38 $975.80 $1,005.07 101+ trees (base) $520.00 $893.00 $919.79 $947.38 $975.80 $1,005.07 101+ per tree over 100 $1.00 $1.72 $1.77 $1.82 $1.87 $1.93 Appeal fee (R-6.305-J) $500.00 $859.00 $884.77 $911.31 $938.65 $966.81 B. Street Tree Planting Program Fees Fee Category Current Year 1 5/15/26 Year 2 7/1/27 Year 3 7/1/28 Year 4 7/1/29 Year 5 7/1/30 App processing (base) $300.00 $515.00 $530.45 $546.36 $562.75 $579.63 App processing (per lf)* $0.01/ft $0.02/ft $0.02/ft $0.02/ft $0.02/ft $0.02/ft Developer-plant agreement $200.00 $344.00 $354.32 $364.95 $375.90 $387.18 Developer-plant inspections (per ft) $0.25/ft $0.43/ft $0.44/ft $0.45/ft $0.46/ft $0.47/ft Developer-plant establishment bond $7.12/ft $12.23/ft $12.60/ft $12.98/ft $13.37/ft $13.77/ft City-plant agreement $100.00 $172.00 $177.16 $182.47 $187.94 $193.58 City-plant establishment fee $7.12/ft $12.23/ft $12.60/ft $12.98/ft $13.37/ft $13.77/ft *Footage is the total footage of the development site that abuts street right of way. **Application per-lf fee held at $0.02/ft through Year 5 (rounded per administrative simplicity from exact CPI calculation of $0.0172). Exhibit B to Administrative Order 58-26-04-F Findings - Page 6 of 6 Factors listed above that are irrelevant or inapplicable: Not applicable. All factors listed in EC 2.020(2) were considered in determining the proposed fee amendments for both Tree Removal Permits and Street Tree Planting Program fees. Data Sources: 1. U.S. Bureau of Labor Statistics, Consumer Price Index for All Urban Consumers (CPI-U), All Items, U.S. City Average, Not Seasonally Adjusted. Series CUUR0000SA0. May 2004 index: 189.1; September 2025 index: 324.8. 2. City of Eugene Administrative Order No. 58-04-03-F (March 18, 2004) — Established current fee schedule. 3. City of Eugene Administrative Order No. 58-18-12-F (September 4, 2018) — Updated program rules; fees unchanged. 4. Developer Street Tree Program Summary and Financials (Internal tracking spreadsheet). 5. Four Seasons Trees, LLC Contract #2021-05306, Amendment #5 (November 7, 2025) — Current tree planting contract rate: $650 per tree. 6. Urban Forestry memo to Craig Carnagey, Matt Rodrigues and Lacey Risdal (December 27, 2022) — Program background and recommendations. 7. Municipal code and fee schedule review of comparable Oregon jurisdictions (December 2025–January 2026). 8. City of Portland Parks & Recreation, Urban Forestry Fee Changes (June 2025). 9. Clackamas County Tree Code Comparison Document (January 2024). Response to Public Comments During the 15-day comment period, the City received two written comments regarding the proposed amendments to the Tree Removal & Developer Street Tree Planting Fee Schedule/Administrative Rule. A summary of the comments received, and findings addressing the comments, are set out below: Comment: Mr. Shaun Hyland, of John Hyland Construction, Inc., expressed concern about increasing fees during a period of economic difficulty for local development and business recruitment, noting developers are already over- taxed and over-regulated. Response: The proposed fee adjustment is a measured, CPI-based update reflecting inflationary increases since 2004 and phased across five years to reduce impacts. No changes will be made to the fee schedule as a result of this comment. Comment: Mr. Jim Atkins, of Atkins Dame, Inc., commented that the City should complete replanting of trees previously removed in the river district before adjusting fees. This comment is outside the scope of the proposed fee schedule amendment. Response: No changes will be made to the fee schedule as a result of this comment. Staff will follow up with Mr. Atkins on the unrelated issue.