HomeMy WebLinkAboutItem A: Stormwater and Parks Service Fee Ordinance
ECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Work Session: Stormwater and Parks Service Fee Ordinance
Meeting Date: February 4, 2013 Agenda Item Number: A
Department: Central Services Staff Contact: Glenn Klein
www.eugene-or.gov Contact Telephone Number: 541-682-8447
ISSUE STATEMENT
On January 28, 2013, the council directed the City Manager to revise the proposed ordinance
related to a stormwater and parks service fee so that the ordinance would only create the
mechanism now, and postpone until the Fiscal Year 14 budget adoption in June, any decision by
the council to actually establish a monthly fee for FY14. This is an opportunity for the council to
review and take action on the revised ordinance.
BACKGROUND
During the council work session on January 28, the council passed a motion directing the City
Manager to revise the stormwater and parks service fee ordinance so that:
Only council, rather than the City Manager, may set the fee for FY14.
‒
Council will determine the amount of fee, if any, for FY14 as part of the council's
‒
FY14 budget approval process.
Council is limited to setting a fee that includes a progressive tiered rate structure
‒
with the following elements to the extent feasible: a low income program social
equity component, a rate for residential and small commercial customers not to
exceed $5 per month, and a rate for large commercial and industrial customers not
to exceed $25 per month
Attachment A is the revised ordinance. A new section 4 has been added to the ordinance (page 6)
to accomplish the council’s direction. Subsection (a) provides that only the council, and not the
Manager, may establish the fee for FY14. Subsection (b) prohibits the council from setting the fee,
if one is set, until after the Budget Committee and City Council hold public hearings as part of the
FY14 budget approval process. Subsection (c) limits the fee for FY14 to a maximum of $5 per
month for residential customers. Subsection (d) requires that the fee be tiered and include a low
income program social equity component.
COUNCIL OPTIONS
1.Adopt the revised ordinance.
2.Amend and adopt the revised ordinance.
3.Do not adopt the ordinance.
S:\CMO\2013 Council Agendas\M130204\S130204A.doc
CITY MANAGER’S RECOMMENDATION
The City Manager recommends that the council adopt the revised ordinance.
SUGGESTED MOTION
Move to adopt Council Bill Number 5088, an ordinance creating a mechanism for a monthly
stormwater and parks service fee and limiting council’s establishment of a specific fee amount
until the FY14 budget approval process.
ATTACHMENTS
A.Proposed Ordinance
FOR MORE INFORMATION
Staff Contact: Glenn Klein
Telephone: 541-682-8447
S:\CMO\2013 Council Agendas\M130204\S130204A.doc
ATTACHMENT A
ORDINANCE NO. _____
AN ORDINANCE CREATING A MECHANISM FOR A MONTHLY
STORMWATER AND PARKS SERVICE FEE AND LIMITING
COUNCIL’S ESTABLISHMENT OF A SPECIFIC FEE AMOUNT UNTIL
THE FY14 BUDGET APPROVAL PROCESS.
THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS:
Section 1
. Section 6.411 of the Eugene Code, 1971, is amended to provide as
follows:
6.411 Ratemaking
.
(1)
Ratemaking procedure.
(a) Investigation of proposed charges. Before proposing to impose or
amend a charge for wastewater service, stormwater and parks
service, or for regional wastewater treatment service, the city
manager shall conduct an investigation of the revenue needs of
the city in conducting these operations. Based on that
investigation, and using the criteria set out in subsection 6.411(2),
the city manager shall develop proposed charges for these
services.
(b) Notice. Prior to the imposition of any charge for wastewater
service, stormwater and parks service or regional wastewater
treatment service, the city manager shall give notice of the
proposed rate or charge by:
1. Making copies of the notice of intended charges available to
the news media, to any person who has requested such
notice, to the mayor and city councilors, and to interested
governmental agencies (including the United States
Environmental Protection Agency, the Department of
Environmental Quality, the Metropolitan Wastewater
Management Commission, and the Eugene Water & Electric
Board).
2. Publishing notice of intended charges on two separate
occasions in a newspaper of general circulation within the
city.
3. Posting the notice at two locations at city hall.
(c) Contents of notice. The notice of intended charges shall state the
current and proposed charge, the results of the city manager's
investigation, and the time, place and manner in which interested
persons may present their views on the intended action.
Ordinance - Page 1 of 7
(d) Public hearing and opportunity to comment. No earlier than ten
days after the first publication of notice of the intended charges,
the city manager or the manager's designee shall conduct a public
hearing on the proposed charge. The city manager shall give
interested persons reasonable opportunity to submit data or views
in writing on the proposed charge.
(e) Decision. The city manager, on the basis of his or her
investigation and the comments of interested persons, shall
approve, modify, or disallow the proposed charge by order. The
order shall contain written findings and conclusions based on the
standards set forth in subsection 6.411(2). The city manager shall
mail copies of the decision to all persons who have submitted
written or oral comments on the charge or who have requested a
copy of the decision. The city manager shall also promptly deliver
copies of the decision to the mayor and city councilors. Unless
reviewed by the council, the decision is final on the eleventh day
after it is rendered.
(f) Review of decision. At the request of the city manager or a
majority of the members of the council, made within ten days of
the city manager's decision, the decision, or any part thereof, shall
be reviewed by the council. The council may conduct a public
hearing on the proposed charge or review the order solely on the
basis of the administrative record before the city manager. After
this review, the council shall approve, modify or disallow the
proposed charge by order. The order shall contain written
findings and conclusions based on the standards set forth in
subsection 6.411(2), and shall be mailed to all interested persons.
The order is final on the date rendered.
(2)
Standards. Unless the city manager determines in writing that one or
more of the following factors is irrelevant or inapplicable, the amount or
rate of any charge for wastewater service, stormwater and parks
service, or regional wastewater treatment service shall be based on the
following:
(a) The amount charged for such service in the past;
(b) For regional wastewater treatment services the recommendation,
if any, of the Metropolitan Wastewater Management Commission,
or any successor agency;
(c) Applicable federal or state regulations or conditions imposed as
part of a federal or state grant or financial assistance agreement;
(d) The amounts charged or proposed to be charged by the city of
Springfield and other providers of stormwater or wastewater
services for comparable services;
(e) 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
the city of Eugene and the Metropolitan Wastewater Management
Ordinance - Page 2 of 7
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;
(f) 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[.];
(g) For the parks component of the stormwater and parks service
charge, the cost of operating and maintaining parks, open
space and natural areas owned, operated or maintained by
the city;
(gh) Other relevant adopted policies of the council;
(hi) The terms of any applicable intergovernmental agreement relating
to wastewater or stormwater services or regional wastewater
treatment service;
(ij) 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;
and
(jk) In addition to the forgoing considerations, in determining the
amounts or rates to be charged for stormwater and wastewater
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
and city wastewater system.
(3) If the city manager determines that one or more of the factors listed in
subsection (2) of this section is irrelevant or inapplicable, the manager
shall notify the mayor and council of that determination.
(4) Limitations. The following limitations apply to charges set by the city
manager for wastewater service, stormwater and parks service and
regional wastewater treatment service:
(a) Charges shall be imposed on a monthly basis. Each customer
shall be notified, in at least one annual billing for the service, of
the rate or the amount of the charge and the allocation of revenue
expected from application of the charge.
(b) The charges for regional wastewater treatment service shall
distinguish between the following classes of customers: single
dwelling units, duplexes, and general wastewater customer use
based on loading strengths.
(c) The charges for local wastewater service may, but need not,
distinguish between classes of customers.
(d) The monthly charge for wastewater service and regional
wastewater treatment service shall be a fixed fee together with a
fee based on volume of use of water (partial flow-based rate).
(e) When the wastewater service rate is based on volume, the
volume shall be calculated by actual measurement of the
wastewater discharged (the costs of measurement to be borne by
the customer) or by an estimate based on the wastewater
customer's average monthly water consumption during the
Ordinance - Page 3 of 7
previous December through April period, or, if no water
consumption figures are available for at least three full months
during this period, the consumption of other similar customers (for
residential customers) or actual monthly water consumption (for
non-residential customers).
(f) The charges for the stormwater component of the stormwater
and parks service shall distinguish between the following classes
of customers: small residential, medium residential and general
stormwater customer, based upon the actual number of equivalent
service units for each developed property or an average number
of equivalent service units for a specific class. Special surcharges
for stormwater service customers who receive extraordinary
service shall be in addition to the standard charges for the
customer's classification.
(g) The charges for the parks component of the stormwater and
parks service shall consist of flat monthly fees.
Section 2
. Subsection (3) of Section 6.416 of the Eugene Code, 1971, is
amended to provide as follows:
6.416 Charges - Adjustments
.
(3)
Any stormwater service component of the stormwater and parks
service charge shall be reduced or eliminated, and the appropriate
credit given, if the customer shows to the city engineer's satisfaction
one or more of the following:
(a) the amount of permanent reduction to the runoff from the property;
(b) the amount of stormwater being discharged directly from the
property into the Willamette or McKenzie Rivers or other body of
water that does not drain directly or indirectly use the city
stormwater system;
(c) the calculation of the number of ESUs assigned to the customer's
property was in error;
(d) When the stormwater service charge has been surcharged
because of the quality of the stormwater being discharged, the
amount of permanent improvement in the water quality for the
property due to mitigation measures implemented on the property
to treat the stormwater before it is discharged into the city
stormwater system.
Section 3
. Sections 6.421, 6.426, 6.431, 6.436, 6.600, and 6.605 of the Eugene
Code, 1971, are amended to provide as follows:
6.421 Charges - Collection and Payment
. The Eugene Water & Electric Board is
directed to collect the charges provided for in sections 6.401 through 6.610.
Charges levied pursuant to sections 6.401 through 6.610 shall be determined
by the city manager or his/her designee and certified to the Eugene Water &
Electric Board and any other water utility obligated to collect such charges.
Ordinance - Page 4 of 7
Revenue collected by the Eugene Water & Electric Board shall be paid
monthly to the city and shall be deposited in the appropriate fund for
wastewater operations or for stormwater or parks operations for use in
providing sewer service including debt service, parks operations and
maintenance, and such other services as the council may direct, except that
revenue collected based on the criteria contained in subsection [(2)(j)] (2)(k)
of section 6.411 of this code shall be deposited in the appropriate fund for
road operations to be used for the reconstruction, repair, maintenance,
operation, and preservation of city-owned roads and streets within the city,
roads and streets which the city is contractually or legally obligated to
operate and maintain, or roads and streets for which the city has accepted
responsibility under intergovernmental agreement. Revenue collected based
on the criteria contained in subsection [(2)(j)] (2)(k) of section 6.411 of this
code may not be used for capacity-enhancing street improvements.
6.426 Charges - Delinquencies
. The water utility providing service to the sewer
service customer shall enforce the collection of rates and charges for [sewer]
services covered by sections 6.401 through 6.610 of this code, and may
do so by withholding delivery of water, steam or electricity to the delinquent
customer, or by any other means of collection provided by the laws of the
state or permitted by the charter and ordinances of the city. [Sewer service
c]Charges for services covered by sections 6.401 through 6.610 of this
code shall be collected monthly and if not paid on or before 10 days from
and after the date the same shall be payable, the charges shall be deemed
to be delinquent. Any charge due which shall not be paid when due may be
recovered in an action at law by the city.
6.431 Charges - Penalty for Nonpayment
. In the event a customer becomes
delinquent in the payment of [sewer service] charges for services covered
by sections 6.401 through 6.610 of this code, there shall be added to the
charges a penalty in the amount of 10 percent of the delinquency and the
total amount due shall bear interest at the rate established in section 2.022 of
this Code from the date of the delinquency.
6.436 Charges - Cost of Collection
. The water utility collecting the [sewer
service] charges for services covered by sections 6.401 through 6.610 of
this code, may withhold from payments received a reasonable fee for its
actual costs of billing, collecting and remitting [sewer service revenue]the
charges. The fee shall be based on actual costs and established annually
by agreement between the city manager and the water utility.
6.600 Charges for Stormwater Service
and Parks .
(1)
Except as the charges may be reduced under subsection 6.416(3), the
obligation to pay stormwater and parks service charges arise when a
person responsible uses stormwater services. It is presumed that
stormwater services are used whenever there is an improved premises.
Ordinance - Page 5 of 7
(2)
Unless another person responsible has agreed in writing to pay and a
copy of that writing is filed with the city, the person(s) paying water
utility charges shall pay the stormwater and parks service charges. If
there is no water service to the property or if water service is
discontinued, the stormwater and parks service charges shall be paid
by the person(s) having the right to possess the property. The
stormwater and parks service charges shall be set by the city manager
using the procedures, criteria and limitations set out in section 6.411 of
this code. The city manager shall review and determine the monthly
charges for stormwater and parks service on at least an annual basis.
6.605 Initiation and Adjustment of Billing
. Using stormwater service or receiving
final approval of improvements authorized by a plumbing permit, whichever
first occurs, will automatically initiate appropriate billing for stormwater and
parks services as established by section 6.600 of this code. If development
of a parcel does not require a plumbing permit, the creation or modification of
any impervious surface from which stormwater may be discharged into city
stormwater system shall initiate the obligation to pay the charges for
stormwater and parks service[ charges].
Section 4.
Notwithstanding Sections 1 and 3 of this Ordinance, any charge for
FY14 for the parks component of the stormwater and parks service may be imposed
only under the following conditions and limitations:
(a) the amount of the charge, if any, for FY14 shall be set by the City Council and
not the city manager;
(b) the City Council may establish such a fee only after the budget committee
and City Council hold public hearings as part of the FY14 budget adoption process;
(c) if the City Council decides after those public hearings to establish such a fee
for FY14, the fee shall not exceed $5 per month for residential customers; and
(d) any such fee shall include a progressive tiered rate structure with the
following elements to the extent feasible: (1) a low income program social equity
component; (2) a rate for residential and small commercial customers not to exceed $5
Ordinance - Page 6 of 7
per month; and (3) a rate for large commercial and industrial customers not to exceed
$25 per month.
Section 5
. The City Recorder, at the request of, or with the consent of the City
Attorney, is authorized to administratively correct any reference errors contained herein,
or in other provisions of the Eugene Code, 1971, to the provisions added, amended or
repealed herein.
Passed by the City Council this Approved by the Mayor this
____ day of _______________, 2013 ____ day of _______________, 2013
_______________________________ ______________________________
City Recorder Mayor
Ordinance - Page 7 of 7