HomeMy WebLinkAboutItem 2D: Adoption of MWMC Regional Wastewater SDCs
ECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Adoption of Resolution 4943 Adopting an Inflationary Adjustment of Systems
Development Charge Rates for Regional Wastewater System
Meeting Date: June 9, 2008 Agenda Item Number: 2D
Department: Public Works Staff Contact: Fred McVey
www.eugene-or.gov Contact Telephone Number: 682-5216
ISSUE STATEMENT
The proposed resolution implements an inflationary cost adjustment to the Regional Wastewater System
Development Charge (SDC) rates as requested by the Metropolitan Wastewater Management
Commission (MWMC). The Regional Wastewater SDC fee schedule is proposed to be modified by
incorporating changes in Eugene’s SDC Methodologies document. This action is being placed on the
consent calendar because the resolution adopts a standard periodic adjustment following policies and
procedures previously adopted by the City Council.
BACKGROUND
Council Action History
The SDC Methodologies were adopted by Resolution No. 4900, effective May 7, 2007. Since the
adoption of Resolution No. 4900, inflationary adjustment of the SDC rates for the Regional Wastewater
System were adopted by Administrative Order No. 58-07-08-F, effective August 20, 2007; inflationary
adjustment of the SDC rates for the Local Wastewater, Stormwater, and Transportation Systems were
adopted by Administrative Order No. 58-08-02-F, effective April 3, 2008; and inflationary adjustment of
the SDC rates for Parks was adopted by Resolution No. 4929, effective April 3, 2008.
Financial Considerations
SDCs provide a funding mechanism to account for the costs and value of infrastructure system capacity
required by new development. The SDC Methodologies adopted by the council provide for periodic
adjustments to SDCs to further account for changes in construction costs to provide this capacity.
The proposed adjustment to the SDC rates for the Regional Wastewater System is based on the adopted
20-city national average construction cost index as published by the Engineering News-Record; the
applicable index reflects a 2.67% increase in construction costs. Section 2.4 of the SDC Methodologies
requires that adjustment of fees by more than 5% within any 12-month period be implemented by
resolution of the City Council. The previous 4.20% inflationary adjustment to the Regional Wastewater
rate effective August 20, 2007, together with this proposed adjustment to become effective on July 1,
2008, would result in an overall fee adjustment of more than 5% within a 12-month period.
The net effect of applying the proposed +2.67% index to both the rate and credit components of the
adopted MWMC methodology is a range of final fee adjustments from +2.0% to +2.2% dependent upon
category of assigned wastewater strength of discharge.
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Timing
The MWMC has requested implementation of the proposed inflationary adjustment effective July 1,
2008. While the Eugene Code and Oregon SDC statutes do not require notice of adoption by resolution
of inflationary adjustments based on a cost index, a notice has been provided as a courtesy to interested
persons. The notice was published in the Register Guard on May 23, 2008, and posted, along with the
draft resolution and exhibit, at Eugene City Hall and the Public Works Building lobby. This
information has also been made available at the City’s web site at www.eugene-or.gov/SDC.
RELATED CITY POLICIES
The council has adopted by resolution Growth Management Policy #14 which provides that
development shall be required to pay the full cost of extending infrastructure and services. Chapter 223
of the Oregon Revised Statutes prescribes the rights and responsibilities of local governments in
developing and imposing SDCs and providing for adoption of a cost index as an administrative means
for adjustments to SDCs. The Eugene Code, Chapter 7, prescribes the process for development,
adoption and administration of SDCs, providing for adoption of methodologies and periodic adjustments
related to SDCs consistent with statutory requirements. The adopted SDC Methodologies provide that
revisions to fees by more than five percent shall be established by resolution of the council.
COUNCIL OPTIONS
1.Adopt the resolution implementing an inflationary cost adjustment to the regional wastewater SDC
fees.
2.Direct the City Manager to prepare a written request to the MWMC for reconsideration and return to
the council at a future date.
CITY MANAGER’S RECOMMENDATION
The City Manager recommends approval of the resolution.
SUGGESTED MOTION
Move to adopt Resolution 4943 adopting an inflationary adjustment of systems development charge
rates for regional wastewater system.
ATTACHMENTS
A. Resolution No. 4943 that adopts amendments to the Regional Wastewater SDC fee schedule and the
SDC Methodologies.
·Exhibit A to Attachment A, Amendments to the Regional Wastewater SDC fee schedule and the
SDC Methodologies.
FOR MORE INFORMATION
Staff Contact: Fred McVey, Engineering Data Services Manager
Telephone: 682-5216
Staff E-Mail: fred.mcvey@ci.eugene.or.us
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ATTACHMENT A
RESOLUTION NO. 4943
A RESOLUTION ADOPTING AN INFLATIONARY ADJUSTMENT OF
SYSTEMS DEVELOPMENT CHARGE RATES FOR REGIONAL
WASTEWATER SYSTEM.
The City Council of the City of Eugene finds as follows:
A.
The System Development Charges (SDC) Methodologies were adopted by Resolution
No. 4900, effective on May 7, 2007.
B.
Since the adoption of Resolution No. 4900, inflationary adjustment of the SDC rates
for Regional Wastewater System were adopted by Administrative Order No. 58-07-08-F, effective
August 20, 2007; inflationary adjustment of the SDC rates for Local Wastewater, Stormwater, and
Transportation Systems were adopted by Administrative Order No. 58-08-02-F, effective April 3,
2008; and amendment of the SDC Methodology for Parks System was adopted by Resolution No.
4929, effective April 3, 2008.
C.
Based on the 20-city national average Construction Cost Index as published by the
Engineering News-Record, it is necessary to amend the SDCs to reflect an indexed 2.67% inflationary
increase for Regional Wastewater System. The adjustment results in rate increases of 2.0% to 2.2%,
depending on the strength category.
D.
Section 2.4 of the SDC Methodologies requires that adjustment of fees by more than
5% within any 12-month period be implemented by resolution of the City Council. The 4.2%
inflationary adjustment adopted by Administrative Order No. 58-07-08-F effective August 20, 2007,
together with this adjustment to become effective on July 1, 2008, results in an adjustment of more
than 5% within a 12-month period.
NOW, THEREFORE,
based upon the above findings,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE, a
Municipal Corporation of the State of Oregon, as follows:
Section 1.
The Systems Development Charges are amended by implementing an inflationary
increase to the Regional Wastewater System as set forth in the attached Exhibit A.
Section 2
. The City Recorder is requested to append a copy of this Resolution to the System
Development Charge Methodologies.
Section 3
. This Resolution shall become effective on July 1, 2008.
The foregoing Resolution adopted the ______ day of June, 2008.
___________________________________
City Recorder
Resolution
08 SDC Regional WW Rate Infl. Adj. (00197770)