Item 5: Resolution Adopting Modifications to Wastewater SDC Rate

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EUGENE CITY COUNCIL AGENDA ITEM SUMMARY c Public Hearing: Resolution 4883 Adopting an Inflationary Adjustment of Systems Development Charge Rates for Regional Wastewater System Meeting Date: June 26, 2006 Department: Public Works www.eugene-or.gov Agenda Item Number: 5 Staff Contact: Fred McVey 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 systems development charge (SDC) rate schedule. The proposed resolution implements updated regional wastewater SDC rates reflecting recent modifications of the SDC methodology and applying an indexed inflationary adjustment. BACKGROUND On June 12,2006, the council adopted modifications to the MWMC regional wastewater SDC methodology to reflect changes in capacity demand for certain development categories and to provide for periodic adjustments to the SDC based on an adopted construction cost index. The MWMC subsequently requested that the cities of Springfield and Eugene adopt modified rates reflecting an inflationary adjustment to regional wastewater SDC rates, applying the adopted index and changes to capacity demand requirements. The modification of the SDC rate schedule reflects a two-year inflationary cost adjustment by application of the published Engineering News-Record National20-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. This adjustment increases rates by a total of approximately 11 %. The MWMC revised SDC rate schedule also reflects change in user capacity demand reflected in the recently adopted SDC methodology. The proposed effective implementation date for the revised schedule is on permit applications made on and after August 1,2006. The regional wastewater SDC rates were last modified by Resolution No. 4795, which adopted amended SDC rates for the regional wastewater system, effective July 12, 2004. RELATED CITY POLICIES The cities of Eugene and Springfield and Lane County established the MWMC to implement a regional, inter-agency approach to wastewater treatment. The policy issue before the council is whether to adopt by resolution a modified regional wastewater SDC rate schedule as requested by the MWMC. LICMOl2006 Council Agendas1M0606261S0606265.doc