(1) Ratemaking procedure.
(a) Investigation of proposed charges. Before proposing to impose or amend a charge for wastewater service, stormwater 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 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.
(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 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 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) Other relevant adopted policies of the council;
(h) The terms of any applicable intergovernmental agreement relating to wastewater or stormwater services or regional wastewater treatment service;
(i) 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
(j) 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 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 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 stormwater 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.