HomeMy WebLinkAboutAdmin Order 58-13-08-FADMINISTRATIVE ORDER NO. 58-13-08-F
of the
City Manager of the City of Eugene
INFLATIONARY ADJUSTMENT OF SYSTEMS DEVELOPMENT
CHARGES FOR REGIONAL WASTEWATER SYSTEM.
The City Manager of the City of Eugene finds as follows:
A. Section 2.020 of the Eugene Code, 1971, authorizes 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. Section 7.710(5) of that Code authorizes
the City Manager to adopt by administrative order inflationary adjustments to Systems
Development Charges (SDC) based on previously adopted rate factors and cost indices. Section
2.4 of the SDC Methodologies authorizes the City Manager to adopt fee changes, based on a cost
index or rate factors, by administrative order pursuant to Section 2.020 of the Eugene Code,
1971, so long as the fees are not revised administratively in an amount greater than five percent
within any 12 -month period.
B. The SDC Methodologies were adopted by Resolution No. 4900 effective May 7,
2007, and have subsequently been amended by Resolution Nos. 4929, 4977 and 4991.
Inflationary adjustments to the Regional Wastewater System have been adopted, most recently
by Administrative Order No. 58- 11 -12 -F.
C. In accordance with the procedures set forth in Sections 2.020 and 7:710(5) of the
Eugene Code, 1971, the recommendation of the Metropolitan Wastewater Management
Commission (MWMC), and after considering the applicable policies, enactments and directives
of the City Council, the, amount charged for these services by the City in the past, the full costs
of providing these services supported by the fees, the amounts charged by other comparable
providers, and the revenue needs of the City as determined by the adopted City budget, on May
24, 2013, I issued Administrative Order No. 58 -13 -08 proposing to implement an inflationary
increase to the Regional Wastewater System rates as shown on Exhibit A attached to that Order.
A general description of the increase is described in Finding D below.
D. The adopted Regional Wastewater SDC Methodology provides for periodic
adjustments to the SDC rate schedule by applying the Engineering News Record (ENR) "20 -City
National Average Construction Cost Index" (CCI) to the value of the existing system assets and
to the value of future, non -bond funded projects and updating the actual costs for bond - funded
projects. When the ENR CCI increase of about 5.7% is applied in combination with updates to
actual costs for bond - funded projects, the net result is an increase in SDC rates ranging from
about 4.13% to 4.35 %, depending upon the strength of wastewater discharge associated with
development categories contained in the rate schedule. As such, this inflationary adjustment will
not result in a 5% or greater fee increase within a 12 -month period.
Administrative Order - Page 1 of 2
E. Notice of the proposed inflationary adjustments was given by providing copies of
Administrative Order No. 58- 13 -08, including Exhibit A (the proposed amendments) and Exhibit
B (the Notice), to the Mayor and City Councilors; making those documents available for
inspection by interested persons at the office of the City Engineer, Public Works Department, 99
East Broadway, Suite 400, Eugene, Oregon, 97401; and by posting those documents at two
locations at City Hall on May 31, 2013. In addition, the Notice was published in the Register -
Guard Newspaper on May 31, 2013, and persons who requested notice of the amendments were
mailed informational postcards as notification of the proposed amendments.
F. Notice provided that written comments would be received for a period of 15 days
from the date of posting and publication. No comments were received within the time or in the
manner set forth in the Notice.
G. I find that the proposed inflationary adjustments set forth in Exhibit A are
consistent with adopted policies of the City, are in conformity with applicable state law, are
authorized by Section 7.710(5) of the Eugene Code, 1971, and should be implemented effective
July 1, 2013.
On the basis of these findings, I order that:
1. The adjusted Systems Development Charges as set. forth in Exhibit A attached to
this Order are to be implemented effective July 1, 2013.
2. The unamended Systems Development Charges shall remain in full force and
effect.
Dated this 2 1 day of June, 2013.
Jon R. Ruiz
City Manager
Administrative Order - Page 2 of 2
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