Item 4: Resolution on MWMC Borrowing Authority

Home Browse Search

ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Action: Resolution 4971 Approving the Issuance of Additional Revenue Bonds by the Metropolitan Wastewater Management Commission; and Providing an Effective Date Meeting Date: April 20, 2009 Agenda Item Number: 4 Department: Public Works Staff Contact: Peter Ruffier www.eugene-or.gov Contact Telephone Number: 682-8606 ISSUE STATEMENT The Metropolitan Wastewater Management Commission (MWMC) oversees the regional wastewater program (RWP) that serves the Eugene/Springfield communities. To maintain compliance with state- mandated regulations and to increase wastewater treatment capacity necessary to provide for anticipated community growth, the MWMC established a 20-Year Capital Improvement Program. The specific capital projects needed are identified in the approved 2004 Facility Plan, and it is estimated that these projects will cost a total of $196 million (in 2006 dollars). The commission has issued $100 million in debt (via two revenue bonds and a state revolving fund loan) to support the CIP, the maximum amount of borrowing it is currently authorized for by the intergovernmental partners in MWMC (the cities of Eugene and Springfield, and Lane County). To complete the approved Facilities Plan, the commission is requesting an additional $100 million in borrowing authority for revenue bonds and low-interest loans. BACKGROUND A public hearing on this matter was held before the council on Monday, April 20, 2009. No public testimony was offered at the hearing. The Springfield City Council approved a resolution increasing the borrowing authority of the MWMC, on April 6, 2009. The Lane County Board of Commissioners is scheduled to address the issue on May 20, 2009. In 2004, the MWMC and the three governing bodies adopted a Facilities Plan for the regional wastewater program, which included capital projects that had an estimated cost of $144 million (in 2004 dollars), necessary to meet the wastewater treatment needs of the Eugene-Springfield metropolitan area through the year 2025. The 2004 Facilities Plan outlines a schedule for construction of the capital improvements necessary to maintain regulatory compliance as well as satisfy anticipated demands for treatment capacity. The construction program implementing the 2004 Facilities Plan improvements encompasses 38 individually described capital projects that span 20 years of implementation. The CIP is on schedule to meet legal and regulatory obligations. Many of the critical components of the Facilities Plan are front- loaded in the 20-year period. This is to comply with a requirement that, by the end of 2009, wastewater facilities be able to transport and treat the peak flow generated by a five-year, 24-hour storm event. This Z:\CMO\2009 Council Agendas\M090427\S0904274.doc