CC Minutes - 01/27/03 Mtg - Laserfiche WebLink

Home Browse Search

In response to a question from Councilor Solomon regarding how the rate of growth was determined and whether the City had any excess capacity, Mr. McVey said the way rate of growth drove the rate change was in the planning around capital improvements to meet new development over time. He said the Regional Wastewater Capital Improvement Plan was being used by MWMC to anticipate the demands of growth. He said capacity was determined by the difference between existing dry weather flows and peak dry weather flow capacity designed into the system. Wastewater Division Director Peter Ruffier said growth projections were based on data released by Lane Council of Governments in 1997. Councilor Solomon said she wanted time to analyze the written information that had been submitted by the homebuilders association. City Manager Carlson suggested that rate payers had not been paying extra for capacity improvements at the treatment plant over the last two decades. He said the change in SDCs really related to two significant transitions. First, the City was getting closer to the end of the design life of the original treatment plant which was built for a twenty-year period that had already been exceeded by five years. City Manager Carlson said 75 percent of the costs of the treatment plant were provided by the federal government. He said the reimbursement charge for the treatment plant was based on the cost of construction minus the federal grant. He said the original cost to the rate payers was based on 25 percent of the cost of the treatment plant. Federal dollars were no longer available to subsidize the full cost of additions to the plant capacity. Second, City Manager Carlson said, the MWMC board had decided, in an effort to stabilize SDC rates over a longer period of time, to lengthen the time period of the project base on which SDCs were based from five years to ten years. City Manager Carlson said there would be big costs involved with increasing capacity to the old system and with replacing pads of the old system. City Manager Carlson said loss of federal dollars and getting ready for large scale improvements to the system were the two major things driving the SDC rate increase. He said the methodology was justified and reflected the desire of the City to collect 100 percent of fees incurred by development. In response to a question from Mayor Torrey regarding whether it was only new growth that was causing the action to take place, Mr. Ruffier reiterated that the original treatment plant was nearing the end of its usable life. In response to a question from Mayor Torrey regarding whether there was time to postpone action until a later date to make sure that Ms. Cuellar's written material was reviewed, City Manager Carlson said action could be taken at the Wednesday work session. In response to a question from Councilor Pap~ regarding a process for reviewing rates on a regular basis, Mr. Ruffier said rates were reviewed but noted that there was no fixed schedule for doing so. MINUTES--Eugene City Council January 27, 2003 Page 8 Regular Meeting