Item B - MWMC Agreement - Laserfiche WebLink

Home Browse Search

policies, which have evolved over the past 25 years. With the adoption of the 2004 MWMC Facilities Plan, review of the IGA was necessarily expanded to support implementation of the Facilities Plan and enable the use of low-cost financing mechanisms needed to serve the metropolitan area for the next twenty years. The majority of the changes proposed in the IGA are related to the need for periodic updates to reflect current operational practices, adopted plans, and metro-wide policy documents. These modifications do not reflect or implement any changes in the relationship or authorities between the governing bodies and the MWMC. The modifications will result in an agreement that is aligned with administrative and operational practices and that is consistent with current regional planning policies and terminologies. Proposed modifications to this end include: · Update the language to reflect adopted Metro Plan terms and policies. · Update the financing guidance by deleting Exhibit B (which refers to the 1992 Financial Plan, the County Service District and General Obligation bonding) and replace it with MWMC's 2003 Financial Plan (including the financial policies and revenue bonding strategy). Move relevant financial management guidance from Exhibit B into the main body of the IGA. · Change the directive from "compensating" the cities for the regional facilities to "facilitating timely transfer of ownership," with the same consideration of funding equity among all sewer users that currently exists. · Eliminate provisions referencing triggers for planning to expand capacity (Section 9 of the IGA), because the 2004 Facilities Plan and its updates replace the need for this provision. As recommended, the changes continue the requirement of obtaining governing body approval for the partial and comprehensive facility plan updates that are scheduled at five-year intervals during the planning period. The recommended changes also allow MWMC to make other relatively minor revisions to the facility plan, such as the annual updates to the regional CIP, without governing body approval. Notwithstanding these recommended changes to the IGA, however, the governing bodies will continue their existing role in reviewing such revisions through the annual MWMC budget adoption process. · Delete the outdated provisions for compensation from the three jurisdictions for "initial expenses." · Move some sections of text for better organization, without modifying intent. Additional modifications to the IGA are being proposed that reflect the recommendations of MWMC's Financial Advisor in consultation with the Lane County Financial Advisor and the Bond Counsel for Eugene (and now MWMC). The drafting of those changes was facilitated by MWMC legal counsel in collaboration with the legal counsels for all three partner jurisdictions. One of the recommended changes, described in the last bullet point below, limits the individual governing bodies' right to adopt regional user rates and systems development charges less than those recommended by the commission in certain situations. The language was recommended by the Financial Advisor and the Bond Counsel to strengthen the assurance that adequate rates and fees will be established to cover long-term borrowing by the commission, and that revenue will be collected and forwarded to MWMC. Adoption of the recommendations is necessary to satisfy the concerns of the bond market and position the MWMC to attract bidders and sell revenue bonds at the lowest cost to the regional sewer customers. Proposed modifications to the IGA in this respect include: L:\CMO\2005 Council Agendas\M050411\S050411B.doc