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<br /> <br />ATTACHMENT A <br />RESOLUTION NO. ______ <br /> <br /> <br />A RESOLUTION ADOPTING AMENDMENTS TO REGIONAL <br />WASTEWATER SYSTEMS DEVELOPMENT CHARGE <br />METHODOLOGY, ADOPTING ADJUSTED REGIONAL <br />WASTEWATER SYSTEMS DEVELOPMENT CHARGES AND <br />AMENDING RESOLUTION NO. 4900. <br /> <br /> <br /> The City Council of the City of Eugene finds as follows: <br /> <br />A. <br /> The System Development Charge (SDC) Methodology was adopted by <br />Resolution No. 4900, effective on May 7, 2007. <br /> <br />B. <br /> Resolution No. 4900 has subsequently been amended by Resolution No. 4929, <br />effective April 3, 2008, and by Resolution No. 4977, which will become effective on January 1, <br />2010. In addition, inflationary adjustments to Systems Development Charges have been adopted <br />for: (1) the Regional Wastewater System by Administrative Order No. 58-07-08-F, effective <br />August 20, 2007, by Resolution No. 4943, effective July 1, 2008, and by Administrative Order <br />No. 58-09-08-F, effective July 1, 2009; and (2) Local Wastewater System, Stormwater System, <br />and Transportation System by Administrative Order No. 58-08-02-F, effective April 3, 2008. <br /> <br />C. <br /> It is necessary to amend the regional wastewater SDC methodology in the <br />following ways: <br /> <br />Step Three – Project Valuation <br />1. Revise “” to provide that project values <br />are updated regularly to reflect: 1) annual inflation for projects; and, 2) actual costs for <br />any bond-funded projects. <br /> <br />Step Four – Adjustments <br />2. Revise “” to provide that projected capital <br />financing costs are added to the project costs if the project is funded through debt <br />proceeds and to provide that future years’ interest expenses are discounted to present <br />value using a 5% discount rate. <br /> <br />“Methodology Element Three: Develop SDC Schedule” <br />3. Revise to <br />provide that SDC strength categories can be adjusted by the Industrial Pretreatment <br />Program for the purpose of maintaining consistency with user strength categories. The <br />revision deletes the strength assumptions from Appendix D and provides that strength <br />assumptions for different development types are estimated by MWMC’s Industrial <br />Pretreatment Program. <br /> <br />“Methodology Element Four: Calculate Offsets and Credits” <br />4. Revise <br />to provide that credit will reflect the present value of future contributions (through user <br />fees) by new development to the repayment of debt service for the cost of capital <br />improvements that benefit existing customers. <br />Resolution - Page <br />1 of 2 <br /> <br /> <br />