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ATTACHMENT C Public Works Engineering MEMORANDUM 858 Pearl Street Eugene, Oregon 97401 (541) 682-5291 (541) 682-5032 FAX Date: June 21, 2004 To: Mayor Torrey and City Council From: Fred McVey, 682-5216 Engineering Data Services Manager Subject: Response to Council Questions Resulting from Public Hearing on Proposed MWMC SDC Methodology and Rates This memorandum provides responses to Council questions as requested by Council following a public hearing June 14, 2004 on the Metropolitan Wastewater Management Commission (MWMC) proposed regional wastewater system development charge (SDC) methodology and rater~ Due to time constraints for Council discussion and questions following the public comments, Council agreed to allow questions to be forwarded to the City Managers Office via email. Only Councilor Bettman submitted questions. Provided are questions in italics with staff response following each question. Coburg officials urged us to consent to studying adding Coburg to the MWMC so that they can accommodate growth by providing sanitary sewer facilities as opposed to what they have now which are septic systems. First of all, I assume they have negative capacity, or a deficit, existing now due to the intensity of industrial and residential development that has proliferated without adequate facilities to serve it. So any capacity added at this time would be needed existing capacity due to the deficit plus capacity for new development to serve projected growth. They do not currently charge any SDC. 0 How could charges be equitably levied for the above capacity without a subsidy from Eugene/Springfield? It is my understanding from the staff summary that currently ratepayers are paying, and will continue to pay, a significant portion of the cost for new capacity to serve new development because the existing and proposed SDC's are too low to recover the costs of the capacity improvements required for new growth. City of Coburg officials have asked that the potential for meeting Coburg's wastewater treatment needs through the MWMC regional wastewater treatment system be studied. The officials' stated intent was that Coburg would pay for the costs they create in the regional treatment system under such an approach. Staff assume that desired results of a study of the issue would include, among other things, a determination of costs, financial feasibility, and appropriate funding structure and mechanisms of an approach which would not result in a subsidy from Eugene/Springfield. While the current regional wastewater SDC rate is under-collecting costs related to the demands of growth, the staff summary was not intended to convey that existing ratepayers would, in the future, be funding any portion of new capacity to serve new development under the proposed SDC; they would not.