Item 2: Resolution Amending MWMC Regional Wastewater SDC Methodology

Home Browse Search

ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Public Hearing: Resolution 4991 Amending the Systems Development Charge Methodology and Charges for the MWMC Regional Wastewater System Meeting Date: November 16, 2009 Agenda Item Number: 2 Department: Public Works Staff Contact: Fred McVey www.eugene-or.gov Contact Telephone Number: 682-5216 ISSUE STATEMENT The purpose of this public hearing is to provide an opportunity for public comment regarding the proposed adoption by resolution of the Metropolitan Wastewater Management Commission’s (MWMC) requested modifications to the regional wastewater system development charge (SDC) methodology. The proposed resolution implements modifications to the regional wastewater SDC methodology by incorporating changes in Eugene’s SDC Methodologies document. BACKGROUND On September 11, 2009, the MWMC approved the Commission’s Resolution 09-15 adopting amendments to the MWMC SDC Methodology. The MWMC is requesting the Eugene City Council adopt the SDC Methodology modifications consistent with provisions of the MWMC Intergovernmental Agreement adopted by the City of Eugene on May 23, 2005, and signed July 5, 2005 (Ordinance Number 20345). Mayor Piercy and the council, and interested persons, were notified of intended amendments to Eugene Systems Development Charge (SDC) methodologies on August 17, 2009. A draft of the proposed modifications was made available for public review and a notice of availability was published in the Register-Guard on September 17, 2009, and, along with the draft resolution and exhibits, has been posted at Eugene City Hall and the Public Works Engineering lobby. This information was also made available at the City’s website at www.eugene-or.gov/SDC. The MWMC has requested four primary amendments of the regional wastewater SDC methodology and rates, including: Use of actual project debt service costs in developing the SDC project valuation rather than the estimated project and debt-related costs of the current methodology; use of actual debt service costs in developing the SDC rate-supported credits; inclusion of a compliance charge covering legal, accounting, reporting, and methodology development costs within the SDC calculation of unit charges; and, modification of the steps to develop the SDC Charge Schedule which classifies the strength categories and rates for development types, including allowance for the update and adjustment of SDC strength categories by the MWMC Industrial Pretreatment Program for the purpose of maintaining consistency with user fee strength categories. As a result of these proposed amendments to the regional wastewater SDC methodology, rates will increase by approximately 19-27% depending on strength category. The regional wastewater SDC for a Z:\CMO\2009 Council Agendas\M091116\S0911162.doc