Item 2C: Resolution Adopting Modifications to MWMC Regional Wastewater SDC Rate Schedule

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Adoption of Resolution 4883 Adopting an Inflationary Adjustment of Systems Development Charge Rates for Regional Wastewater System Meeting Date: June 26, 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 systems development charge (SDC) rate schedule as requested by the Metropolitan Wastewater Management Commission’s (MWMC) to reflect recent modifications of the SDC methodology and apply 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. A public hearing was held on June 26, 2006, to receive public comment on the proposed SDC rate schedule modifications. No persons testified and no written comments were received. The modification of the SDC rate schedule reflects a two-year inflationary cost adjustment by application of the published 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. 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, interagency 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. L:\CMO\2006 Council Agendas\M060710\S0607102C.doc