07/10/1972 Meeting - Laserfiche WebLink

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M. Financing Plan, Regional Sewers - Copie~----of a preliminary report on a study on financing Eugene/Springfield regional sewers, based on the DMJM sewer master plan, were previously distributed to Council members. Ed Wells of Bartle Wells Associates~ municipal financing consultants who made the study, reviewed the plan and presented . recommendations on which a final report will be based. It suggests revenbe sharing and cost equalization as the best method of financing the project through a joint contract wi th Springfield, providing for creation of a Regional Sewerage Advisory Commission, construction and operation of new and existing sewers to serve the 1990 Urban Service Area, and equalization of costs of existing major facilities and outstanding' bonds. The plan calls for formation of a special bonding district covering the two cities to seek authorization for $8.5 million in bonds, and the use of $2.5 million of Eugene's sewer utility funds to construct new sewers. Federal and State grants can be used to reduce local costs. Revenues for expansion of the program and rehabilitation of present facilities will be derived from (1) 509 per $1000 TCV property tax; (2) $3 monthly sewer user charge per dwelling Unit; (3) in-' . , dustria1 charges; (4) $375 per dwelling connection charge (escalating $25 per year to $600), with pro rata provision for use of these llDnies to regional and city systems. Services would be extended to unincorporated areas upon annexation to either city Or upon approval by both cities and the County. Mr. Wells said: a final report will be prepared in the next 30 days so that any suggestions to be incorporated should come within the. next ten, days. . Manager said Mr. Wells will be available for meeting with the Councilor with both Eugene and Springfield councils for discussion and study session before com- mi tment to the program.., > '. ." Councilman Williams was concerned about Eugene's bonding authori ty, wondering how expiration of present bonds would affect such a program. Mr. Wells explained that Eugene now has substantial service on outstanding sewfJr bonds so that no increase in the 509 rate will .be required for some years to come. ;, Councilman Hershner inquired about formation of a special service dist:tict. Mr. Wells explained that a County service district could be created, with ap- proval of County Commissioners, limited to the boundaries of the two cities and accepted by voters of the two cities. Or, by contractual arrangement between the, two cities, creation of a special legislative district, to issue financing bonds could be authorized. The purpose of the district would be to issue bonds for financing. purposes only, and to provide a new tax foundation. for, any addi tiona1 'bond elections. , In answer to Mayor Anderson, Mr. Wells said a financing issue settled by the I electors would be preferable, so that if bonds are not appx,-oved the district would be dissolved automatically. Also, that connection charges cannot be Ban- I " crofted. Under the proposed plan the charges are not payable until the property is actually used, avoiding heavy charges on undeveloped land and providing .b~t_t_eE.J:!5>rro!!-!l.gpower . . Manager noted that a certain portion of the present bonding debt on sewers is spent for storm sewers, so that some source of revenue would have to be found to retire that portion. This would amount to about 309 per $1000 TCV in addi- 'tion to the total sewer debt service. Comm I Mayor Anderson expressed appreciation to Mr. Wells for his presentation which 6/28/72 he said provides an excellent framework for work toward regional sewer system. File N. Report, Field Incinerator Development - Robert Alexander, director of Air Re- sources Center at Oregon. State University, reported on the direction being taken . on the research program on seed field burning, progress on mobile field in- cinerator, and alternatives to open field burning. He described the sanitizer (incinerator) which is being built by Rear Manufacturing and which should be available for field use during this burning season. He said research on economical alternatives to field burning is being emphasized to justify minimizing the burn- ing. Burning for the coming summer will be accomplished under the same regulatory. program as in the past, based on wind direction. , , ,There were questions from Council members and others on anticipated cost of the proposed machine and its use, and whether the present deadline for banning field iburning is realistic. Mr. Alexander had no conrnent, other than that they would . hope use of the machine would prove successful and provide the kind of informa- tion which would allow growers to'proceed on a good, productive program. He 'said the primary objective of the machine is sanitizing the soil at the least cost, and that ,some type of government subsidy could be considered because of the critical nature of growing perennial seed grass. There was further discussion on burning for different types of grasses and possi- Comm bi1ity of change in the deadline for banning field burning, with Mr. Alexander's i 6/28/72 reiteration that another season's test~ng of the sanitizer will provide more File information_as 1::0 whether i t w~ll _accomp"'li~h__j. t:~_purp!:>.f>e_. _ .". . -- -,... . OliO 7/10/7? - R