Item 2C: Resolution Concerning Modification of Regional Wastewater SDC

Home Browse Search

ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Adoption of Resolution 4875 Amending Systems Development Charge Methodology for Regional Wastewater System; and Amending Resolution No. 4740 Meeting Date: June 12, 2006 Agenda Item Number: 2C Department: Public Works Staff Contact: Fred McVey www.eugene-or.gov Contact Telephone Number: 682-5216 ISSUE STATEMENT The proposed resolution modifies the regional wastewater system development charge (SDC) methodology as requested by the Metropolitan Wastewater Management Commission’s (MWMC), incorporating an index for periodic adjustments and adjusting capacity demand estimates for restaurant- type uses. BACKGROUND The MWMC has requested two amendments of the regional wastewater SDC methodology. One amendment is to the way the methodology categorizes eating and drinking establishments for purposes of estimating demand on capacity of the Regional Wastewater System. In addition, the MWMC is modifying its SDC Methodology to more clearly state the method for adjusting the cost of future projects for inflation. The proposed modification provides that future project costs may be adjusted from time to time using the nationally recognized Engineering News-Record national 20-City average Construction Cost Index (ENR 20-City CCI), the same index that is to be used to adjust the value of existing systems for inflation and that is used to periodically adjust the City’s other SDC rates. The regional wastewater SDC methodology was last modified by Resolution No. 4795, which adopted amended SDC rates for the Regional Wastewater System, effective July 1, 2004. Mayor Piercy, City Council and interested persons were notified of intended amendments to Eugene Systems Development Charge (SDC) methodologies on February 16, 2006. A draft of the proposed modifications was made available for public review on March 17, 2006. A copy of this information has been available for viewing in the Council Office as well as on the City’s web site. A public hearing was held on May 22, 2006, to receive public comment on the proposed SDC modifications; no persons testified and no written comments were received. Subsequent to adoption of these proposed modifications to the regional wastewater SDC methodology, the MWMC intends to request adoption of modified rates reflecting an inflationary adjustment to regional wastewater SDC rates applying the proposed index and changes to capacity demand L:\CMO\2006 Council Agendas\M060612\S0606122C.doc