Item 2C: Adoption of Resolution Amending MWMC Regional Wastewater SDC Methodology

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Adoption of Resolution 4991 Amending Systems Development Charge Methodology and Charges for the Regional Wastewater System and Amending Resolution No. 4900 Meeting Date: November 23, 2009 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 and charges as requested by the Metropolitan Wastewater Management Commission (MWMC), consistent with provisions of the MWMC Intergovernmental Agreement. MWMC sets and administers regional wastewater SDC rates, which are collected by the cities of Eugene and Springfield and passed on to the MWMC to fund wastewater system capital projects. This action is on a resolution implementing the MWMC-requested modifications by incorporating them in Eugene’s SDC Methodologies document. BACKGROUND The MWMC has requested several amendments of the regional wastewater SDC methodology. 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 web site at www.eugene-or.gov/SDC. A public hearing was held on November 16, 2009, to receive public comment on the proposed SDC modifications; no persons testified and no written comments were received. 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; Z:\CMO\2009 Council Agendas\M091123\S0911232C.doc