HomeMy WebLinkAboutItem 2C: Resolution Adopting Modifications to MWMC Regional Wastewater SDC Rate Schedule
ECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Adoption of Resolution 4883 Adopting an Inflationary Adjustment of
Systems Development Charge Rates for Regional Wastewater System
Meeting Date: June 26, 2006 Agenda Item Number: 2C
Department: Public Works Staff Contact: Fred McVey
www.eugene-or.gov Contact Telephone Number: 682-5216
ISSUE STATEMENT
The proposed resolution modifies the regional wastewater systems development charge (SDC) rate
schedule as requested by the Metropolitan Wastewater Management Commission’s (MWMC) to reflect
recent modifications of the SDC methodology and apply 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.
A public hearing was held on June 26, 2006, to receive public comment on the proposed SDC rate
schedule modifications. No persons testified and no written comments were received.
The modification of the SDC rate schedule reflects a two-year inflationary cost adjustment by
application of the published Engineering News-Record national 20-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,
interagency 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.
L:\CMO\2006 Council Agendas\M060710\S0607102C.doc
COUNCIL OPTIONS
The council can adopt the resolution or 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 adoption of the proposed resolution.
SUGGESTED MOTION
Move to adopt Resolution No. 4883 adopting an inflationary adjustment of systems development charge
rates for Regional Wastewater System.
ATTACHMENTS
A. Proposed Resolution 4883
Exhibit A to Attachment A - proposed regional wastewater SDC rate schedule
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FOR MORE INFORMATION
Staff Contact: Fred McVey, Engineering Data Services Manager
Telephone: 682-5216
Staff E-Mail: fred.mcvey@ci.eugene.or.us
L:\CMO\2006 Council Agendas\M060710\S0607102C.doc
ATTACHMENT A
RESOLUTION NO. 4883
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.
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 July, 2006.
___________________________________
City Recorder
Resolution
L:\CMO\2006 Council Agendas\M060710\S0607102C-attA.doc
REVISIONS TO
METROPOLITAN MANAGEMENT WASTEWATER COMMISSION
REGIONAL WASTEWATERSDC RATE SCHEDULE
Effective August 1 , 2006
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