HomeMy WebLinkAboutItem 5: Resolution Adopting Modifications to Wastewater SDC Rate
EUGENE CITY COUNCIL
AGENDA ITEM SUMMARY
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Public Hearing: Resolution 4883 Adopting an Inflationary Adjustment of
Systems Development Charge Rates for Regional Wastewater System
Meeting Date: June 26, 2006
Department: Public Works
www.eugene-or.gov
Agenda Item Number: 5
Staff Contact: Fred McVey
Contact Telephone Number: 682-5216
ISSUE STATEMENT
The purpose of this public hearing is to provide an opportunity for public comment regarding the
proposed adoption by resolution of the Metropolitan Wastewater Management Commission's (MWMC)
requested modifications to the regional wastewater systems development charge (SDC) rate schedule.
The proposed resolution implements updated regional wastewater SDC rates reflecting recent
modifications of the SDC methodology and applying an indexed inflationary adjustment.
BACKGROUND
On June 12,2006, the council adopted modifications to the MWMC regional wastewater SDC
methodology to reflect changes in capacity demand for certain development categories and to provide
for periodic adjustments to the SDC based on an adopted construction cost index. The MWMC
subsequently requested that the cities of Springfield and Eugene adopt modified rates reflecting an
inflationary adjustment to regional wastewater SDC rates, applying the adopted index and changes to
capacity demand requirements.
The modification of the SDC rate schedule reflects a two-year inflationary cost adjustment by application
of the published Engineering News-Record National20-City Average Construction Cost Index (ENR 20-
City CCI), the same index that is to be used to adjust the value of existing systems for inflation and that is
used to periodically adjust the City's other SDC rates. This adjustment increases rates by a total of
approximately 11 %. The MWMC revised SDC rate schedule also reflects change in user capacity demand
reflected in the recently adopted SDC methodology. The proposed effective implementation date for the
revised schedule is on permit applications made on and after August 1,2006.
The regional wastewater SDC rates were last modified by Resolution No. 4795, which adopted amended
SDC rates for the regional wastewater system, effective July 12, 2004.
RELATED CITY POLICIES
The cities of Eugene and Springfield and Lane County established the MWMC to implement a regional,
inter-agency approach to wastewater treatment. The policy issue before the council is whether to adopt
by resolution a modified regional wastewater SDC rate schedule as requested by the MWMC.
LICMOl2006 Council Agendas1M0606261S0606265.doc
COUNCIL OPTIONS
Not applicable; this is a public hearing only.
CITY MANAGER'S RECOMMENDATION
The City Manager recommends that the Mayor and City Council convene the public hearing. Action on
the resolution is tentatively scheduled for the July 10, 2006, City Council meeting.
SUGGESTED MOTION
No motion is necessary. Action on this resolution is tentatively scheduled for July 10, 2006.
ATTACHMENTS
A. Proposed Resolution
. Exhibit A to Attachment A: Proposed Regional Wastewater SDC Rate Schedule
FOR MORE INFORMATION
Staff Contact: Fred McVey, Engineering Data Services Manager
Telephone: 682-5216
Staff E-Mail: fred.mcvey@ci.eugene.or.us
LICMOl2006 Council Agendas1M0606261S0606265.doc
ATTACHMENT A
RESOLUTION NO.
A RESOLUTION ADOPTING AN INFLATIONARY ADJUSTMENT OF
SYSTEMS DEVELOPMENT CHARGE RA TES FOR REGIONAL
W ASTEW A TER SYSTEM.
The City Council of the City of Eugene finds as follows:
A. On September 23, 2002, the System Development Charge (SDC) Methodologies
were adopted by Resolution No. 4740. Resolution No. 4740 has subsequently been amended,
most recently on June 12, 2006, by Resolution No. 4875, which amended SDC Methodology for
regional wastewater system, and Resolution No. 4876, which amends local stormwater SDC
Methodology concerning credits effective July 12, 2006.
B. Resolution No. 4795 dated June 28, 2004, adopted amended Systems
Development Charge rates for Regional Wastewater System. In addition, inflationary
adjustments of Systems Development Charges for Local Wastewater System, Stormwater
System, and Transportation System were adopted by Administrative Order No. 58-06-02-F, on
March 29,2006, and became effective on April 3, 2006.
C. Based on the national 20-city average Construction Cost Index as published by
the Engineering News-Record, it is necessary to amend the SDCs by implementing an 11.17%
inflationary increase for Regional Wastewater System.
D. Section 2.4 of the SDC Methodologies requires that adjustment of fees by more
than five percent shall be implemented by resolution of the City Council.
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 11.17%
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 and to Administrative Order No. 58-06-02-F.
Section 3. This Resolution shall become effective on August 1,2006.
The foregoing Resolution adopted the
day of June, 2006.
City Recorder
Resolution
LICMOl2006 Council AgendasIM060626IS0606265-attA.doc
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