Item 4: MWMC Ord.and Res. - Laserfiche WebLink

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EUGENE CITY COUNCIL AGENDA ITEM SUMMARY Action: An Ordinance Creating the Metropolitan Wastewater Management Commission as an Intergovernmental Entity; and Providing For an Immediate Effective Date and Adoption of Resolution 4837 Approving the Issuance of Revenue Bonds by the Metropolitan Wastewater Management Commission; and Providing an Effective Date Meeting Date: May 23, 2005 Agenda Item Number: 4 Department: Public Works Staff Contact: Peter Ruffler www. cl. eugene, or. us Contact Telephone Number: 682-8606 ISSUE STATEMENT The regional wastewater program is managed under an intergovernmental agreement (IGA) between Eugene, Springfield, and Lane County. Changes to this agreement are being proposed to align it with operational conditions and public policies that have evolved in the wastewater program over the past 25 years of the agreement, and to incorporate recommendations that will facilitate the issuance of revenue bonds by the Metropolitan Wastewater Management Commission (MWMC) in support of the 2004 Facilities Plan and related capital projects for the regional wastewater program. Please note: An immediate effective date is requested with this ordinance. If approved, the attached ordinance and resolution will have an immediate effective date in order for the MWMC to initiate the process of issuing revenue bonds necessary to support the capital improvement program outlined in the approved 2004 Facilities Plan. An immediate effective date requires a 2/3 majority or 6 affirmative votes from the council to enact. Ordinances without an immediate effective date do not take effect for 30 days. BACKGROUND The council held informational work sessions on this topic on February 9, April 11, and May 9, 2005. A public hearing was held on May 9, 2005. During the April 11 work session, concern was expressed about the proposed amendments that provide limited recourse to local government in regard to regional wastewater user rates or charges recommended by the MWMC. Based on this concern, the definition ofMWMC's authority to adopt rates and amounts above the level necessary to meet bond covenants was modified to read" ....and to achieve and maintain an unenhanced credit rating of A for the Commission's Bonds from at least one nationally recognized rating agency." This modified language was received favorably by the council. Questions were also raised in the April 1 lwork session about what the council's authority is in the process for setting the regional wastewater user rates, and what authority the council has in the review and approval of the implementation of the capital projects contained in the 2004 Facilities Plan. The L:\CMO\2005 Council Agendas\M050523\S0505234.doc