The Bureau of Environmental Services shall be guided by the following principles when implementing these administrative rules:
1. Cost recovery methods shall be transparent, well documented and easily explainable to permittees.
2. Cost recovery methods shall be consistent with the best management practices of municipal utilities.
3. Cost recovery methods shall be undertaken in a manner that promotes administrative efficiency, effectively recovers the Bureau’s engineering and superintendence costs, and spreads costs equitably and accurately to permittees.
a. Concurrent with making the permit application, the person desiring the permit shall submit a deposit. The deposit will be based on a portion of the estimated Bureau costs of engineering, plan review and superintendence as determined by the Chief Engineer. For projects valued below $100,000, the deposit shall be fifty percent (50%) of the estimated Bureau costs. For projects with a valuation of $100,000 or more, the deposit shall be thirty percent (30%) of the estimated Bureau costs
b. The permit applicant’s engineer shall submit the project valuation. The project valuation shall be calculated consistent with industry standards. The project’s value submitted for the purpose of determining the deposit is not to be confused with the project value determined by the Chief Engineer for the purposes of determining the required performance bond.
c. Estimated Bureau costs shall consist of required staff time, materials and supplies, services, equipment and other assets, administrative costs, overhead, etc.
d. The Bureau shall use the same method for calculating the estimated Bureau costs as that used to determine the final costs of engineering and superintendence services.
e. All deposits must be made prior to any design work by or on behalf of the permittee.
f. In the event that no permit is issued for the proposed improvement within 1 year from the time design and plans are reviewed and completed, the City shall retain the amount of the deposit as compensation for the preparation of design and plans or efforts of review. In the event a permit is issued for the proposed improvement within 1 year from the time such design and plans are completed, the amount of the required deposit shall be applied to the cost of the permit fee for such improvements.
2. Accounting Requirements
a. The Bureau shall maintain detailed cost recovery records for each public sewer improvement permit.
b. Records shall include staff hours, expended materials and supplies, services, the use of equipment and other Bureau assets, and any other documents that support the final calculation of charges.
3. Final Charges
a. Prior to the issuance of the certificate of completion, the Chief Engineer shall calculate final engineering and superintendence charges based on Bureau records of staff time, materials and supplies, services, equipment and other Bureau assets expended on behalf of the public sewer improvement project, administrative and other costs, and overhead.
b. The Bureau shall use hourly rates set forth in Figure 14 of Section 17.32.150 of the Portland City Code to calculate the labor cost components of the final charges. The Bureau shall limit billable overtime hours to overtime work performed at the request of the permittee or in response to events caused solely by or on behalf of the permittee. The permittee shall be given reasonable prior notice of instance requiring the use of overtime labor.
c. Materials consumed shall be at actual cost including delivery to the City.
d. Services from other City bureaus shall be at actual cost determined in accordance with Section 5.48.070.
e. Services provided from non-City sources shall be at actual cost to the City.
f. Motorized equipment, trailers, etc., shall be actual time at rates for each particular class of equipment established by the Director of the Bureau of Environmental Services.
g. General overhead of 10% percent of the total charges in items c. through f. above shall be added.
h. The Chief Engineer shall calculate the final charges as set forth above. Any remaining balance, after payment of all costs, shall be returned to the permittee. If additional funds are required of the permittee, they shall be paid prior to the issuance of the certificate of completion.
Ordinance No. 179274 passed by Council May 25, 2005 and effective June 24, 2005.