10/24/1988 Meeting - Laserfiche WebLink

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e Mayor Obie requested exploration of the option to strengthen the role of the Metropolitan Wastewater Commission by creating a new district or enhancing the one that encompasses the River Road/Santa Clara area. Mr. Smith responded that the existing County service district is governed by the County Commissioners as mandated by State law. As a standard service district, it could be expanded to include River Road/Santa Clara and could be made responsible for providing sewer service in that area. Ms. Schue commented that while the Wastewater Management Commission is the operating agency, the funding agency is the County service district. Mr. Holmer asked what would happen if the second option did not meet the hook-up schedule? To answer, Mr. Smith referred to a situation in Multnomah County in which Portland is installing sewers and assessing property owners for them, then allowing connection to occur at the property owner1s leisure. The City's current connection schedule is dictated by an ordinance requiring connection within 18 months following the provision of sewers. Mr. Smith indicated it might be possible to negotiate a change in that requirement. Mayor Obie suggested seeking input from representatives of other cities at the League of Oregon Cities meeting. Answering Ms. Wooten's question, Mr. Smith said other methods of financing hook-ups without burdening residents with the addition of City taxes include e extending deferrals of assessment to low-income property owners, extending Bancroft repayment to 20 years instead of ten, and attempting to acquire State revolving loan funds. Another approach might move away from the Bancrofting method and eliminate the cost of debt financing by implementing a user fee. Mr. Smith reported considerable interest in this method and he suggested forming a Citizens Advisory Group to consider financing options before the council makes its decision. At a monthly rate of approximately $30, he projected that the user fee would produce sufficient revenue over ten years to build all the needed sewers in the River Road area. If a renegoti- ated schedule required completion in five years, revenue bonds, the State revolving loan fund, or a State pollution control bond would be possible sources of the needed additional financing. Mr. Smith observed that the different financing packages would be too costly without the participation of the entire area. Mr. Miller noted that the user fee would require assessing a fee on every user regardless of whether service was being received. Mr. Miller continued by asking for comment on providing sewer connection with an agreement to subsequent annexation. Ms. Brody repeated that no mechanism to mandate that annexation exists. Mr. Smith described the second option as an attempt to separate the costs of annexation from those of sewers, but he said the two issues are closely e MINUTES--City Council October 24, 1988 Page 5 Work Session