Item B - MWMC Agreement - Laserfiche WebLink

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The final position of the County Board of Commissioners on amending the IGA is highly uncertain. Amending the IGA requires consensus of all parties to the agreement; therefore, if the County does not accept the amendments, the IGA remains as it is currently written. In this eventuality, the MWMC would not be able to utilize revenue bonds as the most cost-effective mechanism for raising the revenue necessary to implement the 2004 Facility Plan and would have to turn to higher cost options, which include substantial user rate increases or higher interest borrowing. It is unclear, given the out-of-date nature of the IGA and potential conflicts with the County, whether any external borrowing (even at higher interest rates) would be possible. Should the County not agree with the two cities on the need and language for amending the IGA, the cities have the option of terminating their participation in the agreement, by providing one year's advance notice of termination to the other governing bodies. If the County Board of Commissioners was willing to withdraw from the MWMC, the change could be handled as an amendment to the existing IGA and potentially could happen fairly quickly. If the County were not a willing partner in such a change, the dissolution of MWMC and subsequent reformation of an agreement for management of the regional wastewater program could take a year or longer. It is uncertain what the budget/fiscal status of the regional wastewater program would be during the process of reformulating the agreement. COUNCIL OPTIONS 1. Approve the recommended changes to the intergovernmental agreement between Eugene, Springfield, and Lane County for the regional wastewater program, the related ordinance for the IGA and the resolution to approve issuance of revenue bonds by MWMC. 2. Direct staff to modify the proposed changes to the IGA and return with a modified proposal for City Council approval. 3. Take no action on the proposed changes to the IGA. CITY MANAGER'S RECOMMENDATION The City Manager recommends adoption of the proposed changes to the regional wastewater IGA and approval of issuance of the revenue bonds by MWMC. SUGGESTED MOTION None; this is a work session only. ATTACHMENTS A. Revised Intergovernmental Agreement in legislative format B. Revised Intergovernmental Agreement - clean copy C. Ordinance D. Resolution FOR MORE INFORMATION Staff Contact: Peter Ruffler Telephone: 682-8606 Staff E-Mail: peter.j.ruffler~ci.eugene.or.us L:\CMO\2005 Council Agendas\M050411\S050411B.doc