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staff presented a proposed Resolution 4776 adopting adjusted regional wastewater SDC rates based on a settlement agreement between Home Builders Association of Lane County (HBA) and MWMC; the council adopted Resolution 4776 on September 24, 2003. Policy Issues The policy issue before the council is whether to adopt by resolution a modified regional wastewater SDC which updates the regional wastewater SDC methodology and rates as requested by the MWMC. Attachment A is a proposed resolution that adopts revisions to the City's SDC Methodologies document to reflect adjustments to the regional wastewater SDC methodology as revised and recommended by the MWMC. Attachment B is a proposed resolution that adopts a revised schedule of regional wastewater SDC rates as calculated based on application of the proposed methodology to the 20-year project list proposed for adoption in conjunction with the MWMC Facilities Plan. The currently proposed changes to the regional wastewater SDC as requested by the MWMC are a result of a comprehensive review of the methodology which involved a Citizen Advisory Committee (CAC). The proposed SDC rates are reflective of the proposed MWMC Facilities Plan which is the subject of the council work session immediately preceding this item. The proposed SDC methodology modifications are intended to ensure the equitable recovery of costs of system capacity related to the demands of growth, while ensuring consistency with statutory requirements related to SDCs. The proposed methodology change in-and-of itself does not cause a significant increase in SDC rates. However, the costs and timing of capacity-related projects in the proposed MWMC Facilities Plan, upon which the improvement fee portion of the SDC is based, result in an approximate 79 percent increase in the regional wastewater SDC rates. The essential issue before the council is whether it concurs with the MWMC that the proposed methodology and rates appropriately recover infrastructure costs related to new development in a fair and equitable manner. Council Goals This agenda item relates to a Council Goal from the 2003-2004 Vision and Goals Statements. Goal: FAIR, STABLE AND ADEQUATE FINANCIAL RESOURCES - A local government whose ongoing financial resources are based on a fair and equitable system of taxation and other revenue sources and are adequate to maintain and deliver municipal services. The proposed SDC rate adjustment provides needed additional financial resources for improvements to the regional wastewater system while incorporating adjustments to provide fairness and equity in the rate. Financial and/or Resource Considerations The proposed regional SDC rates reflect future capacity-related capital improvement needs of the regional wastewater treatment system. The proposed resolution adopts a modified regional wastewater SDC rate which increases from a current rate of $528.86 per typical single family dwelling unit (SFD) to $947.34 per SFD, or an approximate 79% increase. The adjustment would bring Eugene's total wastewater SDC (local and regional combined) to $1,389.66 per typical SFD from the current combined wastewater SDC of $971.18. This adjustment would not substantially change Eugene's ranking of total SDC charges in relation to other L:\CMO\2004 Council Agendas\M040519\S040519B.wpd