Item 7 - Action MWMC Fac. Plan - Laserfiche WebLink

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The 2004 MWMC Facilities Plan is based on the least costly system-wide set of improvements needed, addressing both the peak flow and treatment requirements. Failure to implement the 2004 MWMC Facilities Plan in a timely manner would increase the probability of regulatory violations, pose risk to public and environmental health, result in shorter planning and construction timeframes for reacting to system shortfalls, and increase overall costs to sewer users and the community from less efficient planning and financial management processes. It might also result in restrictions to the community's ability to add new users to the system. Council Goals The 2004 MWMC Facilities Plan and 20-Year Project List is related to the City Council goals of: SUSTAINABLE COMMUNITY DEVELOPMENT A community that retains a high quality of life and a healthy economy, effectively links land use and planning, and successfully manages growth and change in the urban environment. HEALTHY NATURAL AND BUILT ENVIRONMENT A community that conserves and enhances the natural environment and provides an attractive and healthy place to live. Financial and/or Resource Considerations MWMC acquired $85,000,000 in federal grant funds to support the construction of regional wastewater facilities that began in the early 1980s. The majority of the facilities were brought on line in 1984 at a total cost of $105,000,000. General obligation bonds were issued by the Lane County Metropolitan Wastewater Service District (CSD) for $29,000,000 and were repaid through property taxes. The bonds were retired in 2002. Implementation of the 2004 MWMC Facilities Plan will require a financial investment which is most significant over the first five years of the 20-year planning period. In 2004 dollars, the 20-year total cost is projected to be $144,000,000. No grant funding is anticipated in the projected capital financing. About $90,000,000 of this need will be realized in the first five years of the CIP to reasonably assure compliance with peak flow management requirements by the year 2010, as established by the DEQ. Revenues to support the anticipated capital project needs will be derived from user rates and systems development charges. In order to mitigate potentially significant short-term impacts to user rates, a significant amount of debt financing will be necessary. The MWMC Financial Plan, adopted in 2003, anticipates this need and provides financial policies and tools which will serve the commission in managing the revenue requirements over the coming years to minimize overall costs and user rate increases. (The anticipated total increase for a typical residence over the first five years would range from approximately $5.60 to $6.50 per month.) SDC rates will increase by approximately 79% to support growth's equitable share of necessary capital improvements. Other Background Information The Facilities Plan is the culmination of a year-long effort involving significant public review. Facility planning analyses were conducted by CH2M HILL began in March 2003, with the oversight of a 12- member Eugene-Springfield staff steering committee. The commission reviewed the draft 2004 MWMC Facilities Plan in a special, publicly advertised evening workshop on November 24, 2003, and gave consensus instruction to finalize the 20-Year Project List to include the recommended preferred solutions and new disinfection system. On January 8, 2004, the commission, after another review of the draft 2004 MWMC Facilities Plan and associated costs, gave direction to proceed with the finalization L:\CMO\2004 Council Agendas\M040628\S0406287.doc