Item 2C: Resolution Concerning Modification of Regional Wastewater SDC

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ATTACHMENT A RESOLUTION NO. _______ A RESOLUTION AMENDING SYSTEMS DEVELOPMENT CHARGE METHODOLOGY FOR REGIONAL WASTEWATER SYSTEM AND AMENDING RESOLUTION NO. 4740. The City Council of the City of Eugene finds as follows: A. On September 23, 2002, the Systems Development Charges (SDC) Methodologies were adopted by Resolution No. 4740. B. Resolution No. 4740 has subsequently been amended, most recently by Resolution No. 4795, which adopted amended SDC rates for the Regional Wastewater System, effective July 1, 2004. In addition, Systems Development Charges for Local Wastewater System, Stormwater System, and Transportation System were adjusted for inflation by Administrative Order No. 58-06-02-F, effective April 3, 2006. C. At the recommendation of a consultant retained by the Metropolitan Wastewater Management Commission (MWMC), MWMC has requested amendments to the way the Methodology categorizes eating and drinking establishments for purposes of their use of the Regional Wastewater System. The Council agrees with the recommendation, which is effected in Appendix D of the attached Exhibit A. D. In addition, the SDC Methodology provides for an SDC rate comprising a reimbursement fee (based upon capacity available for growth in existing systems) and an improvement fee (based upon capacity available for growth in future projects). The MWMC intended that charges resulting from the Methodology would be adjusted from time to time to reflect inflation. Legal review of the MWMC SDC Methodology revealed that the method for adjusting existing system costs for inflation was clearly stated, but the method for adjusting the cost of future projects for inflation was not clearly stated. 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. NOW, THEREFORE, based upon the above findings, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE, a Municipal Corporation of the State of Oregon, as follows: Section 1. The Systems Development Charge Methodology for the Regional Wastewater System is amended as set forth in the attached Exhibit A. Section 2 . Resolution No. 4740 is amended as described in Section 1 as of the effective date of this Resolution. Resolution - Page 1 of 2