Item 4: Transfer of Water Pollution Control Facility to MWMC

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of the Commission and the Cities of Eugene and Springfield. The Transfer of ownership shall include consideration of the following factors: 1. Original source of the funds for acquisitions, construction, maintenance, equipment replacement, and major rehabilitation; and 2. Achieving equity among the regional sewer users within the Urban Growth Boundary." Appendix A to the intergovernmental agreement specifies the Regional Sewerage Facilities as including the Eugene/Springfield Regional Water Pollution Control Facility (WPCF) located at 410 River Avenue in Eugene. At various times since 1978, staffs of the governmental partners to the MWMC have met to discuss the process of transferring ownership to MWMC and address the considerations listed above. Ultimately, it was concluded that equity could be achieved by the straightforward transfer of property titles to the MWMC from both Eugene and Springfield, without fund transfers between the parties. This conclusion is based upon the distribution of wastewater ratepayers between the two communities (approximately 2/3 from Eugene and 1/3 from Springfield), and that Springfield decommissioned its original wastewater treatment plant and committed its 37 acres to the regionalization program. Therefore, compensation from MWMC to the two cities for their property dedicated to the regional wastewater program would involve wastewater rate revenues from both communities' ratepayers in the proportions stated above, with roughly a zero net financial gain for either city. The proposal for transfer of property has not come before the council previously because there has not been a significant impact on the administration or operations of the regional wastewater program from the status quo of ownership. Staff is recommending that the transfer of this property occur at this time in order to facilitate the River Avenue Transportation Improvement project and related potential assessments, as well as to provide clarity of ownership in support of the MWMC issuing bonds for financing the approved wastewater Capital Improvement Program. Proposals to transfer title to the site of the Springfield treatment plant and other regional facilities will follow as a package to complete the property transfers described in the IGA. The River Avenue project requires acquisition of additional right-of-way (ROW) for the transportation improvements, and that cost is properly spread over the entire project, as is the cost of other right-of- way acquisition for the project. The assessments would be levied to owners of property abutting the improved portions of River Avenue, including the wastewater treatment plant. If the WPCF site is transferred to MWMC at this time, the City will pay MWMC $184,250 for the additional right-of-way needed for the project on the south side of River Avenue, and MWMC will then be assessed approximately $465,000 (estimate) for its proportionate share of the project costs as the clear owner of the treatment plant property. The intent of the property transfer and subsequent buy-back of the ROW and easements is to relieve the City of the assessment associated with the portion of the road upgrade project that abuts the wastewater treatment plant property. While the transfer of only the property needed for right-of-way could occur prior to the transfer of title to the rest of the property, a piecemeal transfer process would create a complex and potentially confusing record of ownership. In addition, the intent of the 1977 IGA and subsequent updates was that MWMC will be the fee title owner of the entire site. The MWMC has programmed the anticipated assessment charges into future expenditures and the transfer of road right-of-way in the future improvement planning. The project has allocated the expense LICMOl2006 Council Agendas1M0607101S0607104.doc