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HomeMy WebLinkAboutItem 4: MWMC Ord.and Res.EUGENE CITY COUNCIL AGENDA ITEM SUMMARY Action: An Ordinance Creating the Metropolitan Wastewater Management Commission as an Intergovernmental Entity; and Providing For an Immediate Effective Date and Adoption of Resolution 4837 Approving the Issuance of Revenue Bonds by the Metropolitan Wastewater Management Commission; and Providing an Effective Date Meeting Date: May 23, 2005 Agenda Item Number: 4 Department: Public Works Staff Contact: Peter Ruffler www. cl. eugene, or. us Contact Telephone Number: 682-8606 ISSUE STATEMENT The regional wastewater program is managed under an intergovernmental agreement (IGA) between Eugene, Springfield, and Lane County. Changes to this agreement are being proposed to align it with operational conditions and public policies that have evolved in the wastewater program over the past 25 years of the agreement, and to incorporate recommendations that will facilitate the issuance of revenue bonds by the Metropolitan Wastewater Management Commission (MWMC) in support of the 2004 Facilities Plan and related capital projects for the regional wastewater program. Please note: An immediate effective date is requested with this ordinance. If approved, the attached ordinance and resolution will have an immediate effective date in order for the MWMC to initiate the process of issuing revenue bonds necessary to support the capital improvement program outlined in the approved 2004 Facilities Plan. An immediate effective date requires a 2/3 majority or 6 affirmative votes from the council to enact. Ordinances without an immediate effective date do not take effect for 30 days. BACKGROUND The council held informational work sessions on this topic on February 9, April 11, and May 9, 2005. A public hearing was held on May 9, 2005. During the April 11 work session, concern was expressed about the proposed amendments that provide limited recourse to local government in regard to regional wastewater user rates or charges recommended by the MWMC. Based on this concern, the definition ofMWMC's authority to adopt rates and amounts above the level necessary to meet bond covenants was modified to read" ....and to achieve and maintain an unenhanced credit rating of A for the Commission's Bonds from at least one nationally recognized rating agency." This modified language was received favorably by the council. Questions were also raised in the April 1 lwork session about what the council's authority is in the process for setting the regional wastewater user rates, and what authority the council has in the review and approval of the implementation of the capital projects contained in the 2004 Facilities Plan. The L:\CMO\2005 Council Agendas\M050523\S0505234.doc rate-setting and budget ratification process was reviewed in the May 9 work session, and clarification was provided on the governing bodies' approval authority over the annual regional wastewater budget and associated user rates (with the exception under the proposed amendments to the IGA of that portion of the user rates necessary to meet bond covenants and to achieve and maintain an unenhanced credit rating of A for the Commission's Bonds from at least one nationally recognized rating agency). During the May 9 work session, modifications to the amended IGA were suggested to address interests in ensuring funding equity between existing and new users of the wastewater system, as well as between the various user classes. These modifications have been incorporated into the proposed IGA, specifically in sections 3.f. 1, 3.f. 4, and 3.f. 5. Financial and/or Resource Considerations The regional wastewater program is supported by user fees, which are established annually by the MWMC and reviewed and ratified by the city councils of Eugene and Springfield, and the Lane County Board of Commissioners. Capital projects are also supported by revenue from systems development charges (SDCs). The proposed changes to the IGA do not directly affect these rates, but they improve and strengthen the agreement for the bond market and give the MWMC the ability to offer revenue bonds that will be competitive in the market. The most cost-effective financing for the regional wastewater projects is a combination of user fees, SDCs, and bond proceeds. Without the ability to obtain competitive bond rates, the commission would have to consider raising user rates in the next fiscal year, possibly by as much as 65%, to generate the necessary revenues. The 2004 Facilities Plan outlines a schedule for construction of the capital improvements necessary to maintain the needed wastewater treatment capacity and capability. This schedule, if followed, allows MWMC to maintain compliance with the current discharge permit and anticipated future needs of the Eugene/Springfield communities. Adhering to the Facilities Plan construction schedule for the next five years is crucial if the MWMC is to comply with a deadline of 2010 set by the Oregon Department of Environmental Quality (DEQ) to prevent wastewater overflows during specified storm events. Delays in the construction schedule will result in any or all of the following consequences: 1. Increased costs of construction 2. Increased costs due to enforcement actions taken by the DEQ or the Environmental Protection Agency (EPA) or both 3. Increased costs from defending MWMC and the partner agencies from regulatory enforcement actions and/or third party law suits 4. Threats to public health and safety caused by sewer overflows, which are projected in the next few years but will be controlled by constructing the planned improvements according to the Plan schedule 5. The establishment of a potential requirement that significant industrial users reduce or curtail their discharges during times of peak flows at the plant 6. The potential denial of new connections based on inadequate wastewater treatment capacity within regulatory guidelines Timing The timing of required capital improvements to the regional wastewater facilities is set forth in the 2004 Facilities Plan. The CIP schedule starts in 2005 and includes an extensive list of projects and activities that must be undertaken to meet the objectives for regulatory compliance. A draft resolution has been prepared (Attachment D) authorizing MWMC to issue bonds so that, if approved, a total amount not to exceed $100,000,000 in revenue bonds could be issued by the commission. This would be L:\CMO\2005 Council Agendas\M050523\S0505234.doc approximately the amount needed to finance the first five years of construction projects, as included in the Facilities Plan, taking into account inflation. The first issuance of approximately $35,000,000 in revenue bonds is planned for September 2005. Subsequent issuances would occur over approximately a five-year period, and would be planned strategically under the advisement of MWMC's Financial Advisor. The regional wastewater sewer user rate established by MWMC to cover operations, capital improvements and debt service is proposed to increase by 6% in fiscal year 2005-2006, an increase which equates to about 70 cents per month on an average residential sewer bill. The proposed FY06 budget for MWMC has been ratified by the City of Eugene and Lane County; the City of Springfield will address this budget on June 20, 2005. Without the timely issuance of revenue bonds it would require at least a 65% increase in user rates to generate sufficient funds to support the CIP, which equates to an increase of over $7.00 per month on the average residential user's monthly bill. Other Background Information The proposed amendments to the intergovernmental agreement for the Metropolitan Wastewater Management Commission are presented in Attachment A (which is in legislative format) and Attachment B (which is a clean copy for improved readability). These amendments are the culmination of several years of work reviewing the agreement. The scope of the review initially included only changes to align the IGA with changes in operational and physical sewerage system conditions and public policies, which have evolved over the past 25 years. With the adoption of the 2004 MWMC Facilities Plan, review of the IGA was necessarily expanded to support implementation of the Facilities Plan and enable the use of low-cost financing mechanisms needed to serve the metropolitan area for the next twenty years. The majority of the changes proposed in the IGA are related to the need for periodic updates to reflect current operational practices, adopted plans, and metro-wide policy documents. These modifications do not reflect or implement any changes in the relationship or authorities between the governing bodies and the MWMC. The modifications will result in an agreement that is aligned with administrative and operational practices and that is consistent with current regional planning policies and terminologies. Proposed modifications to this end include: · Update the language to reflect adopted Metro Plan terms and policies. · Update the financing guidance by deleting Exhibit B (which refers to the 1992 Financial Plan, the County Service District and General Obligation bonding) and replace it with MWMC's 2003 Financial Plan (including the financial policies and revenue bonding strategy). Move relevant financial management guidance from Exhibit B into the main body of the IGA. · Change the directive from "compensating" the cities for the regional facilities to "facilitating timely transfer of ownership," with the same consideration of funding equity among all sewer users that currently exists. · Eliminate provisions referencing triggers for planning to expand capacity (Section 9 of the IGA), because the 2004 Facilities Plan and its updates replace the need for this provision. As recommended, the changes continue the requirement of obtaining governing body approval for the partial and comprehensive facility plan updates that are scheduled at five-year intervals during the planning period. The recommended changes also allow MWMC to make other relatively minor revisions to the facility plan, such as the annual updates to the regional CIP, without governing body approval. Notwithstanding these recommended changes to the IGA, however, the governing bodies L:\CMO\2005 Council Agendas\M050523\S0505234.doc will continue their existing role in reviewing such revisions through the annual MWMC budget adoption process. · Delete the outdated provisions for compensation from the three jurisdictions for "initial expenses." · Move some sections of text for better organization, without modifying intent. Additional modifications to the IGA are being proposed that reflect the recommendations of MWMC's Financial Advisor in consultation with the Lane County Financial Advisor and the Bond Counsel for Eugene (and now MWMC). The drafting of those changes was facilitated by MWMC legal counsel in collaboration with the legal counsels for all three partner jurisdictions. One of the recommended changes, described in the last bullet point below, limits the individual governing bodies' right to adopt regional user rates and systems development charges less than those recommended by the commission in certain situations. The language was recommended by the Financial Advisor and the Bond Counsel to strengthen the assurance that adequate rates and fees will be established to cover long-term borrowing by the commission, and that revenues will be collected and forwarded to MWMC. Adoption of the recommendations is necessary to satisfy the concerns of the bond market and position the MWMC to attract bidders and sell revenue bonds at the lowest cost to the regional sewer customers. Proposed modifications to the IGA in this respect include: · Incorporate the regional wastewater 2004 Facilities Plan as basis for planning and improving facilities, and specify that updates that will be submitted for review and approval by the governing bodies. · Delete the user charge reference to federal regulations (40 CFR 35.929), because previous federal restrictions under the grants no longer apply, and replace it with language ensuring that sufficient user charges will be established to meet debt service requirements in addition to operations, maintenance, etc. · Strengthen language about collection and remittance of revenues, in response to Financial Advisor concerns and the need to satisfy bond rating agencies. · Remove 30-day notice of termination; leave one year notice requirement; and further restrict Eugene and Springfield from terminating when there is outstanding debt requiring long-term commitment of revenues, unless a provision is made for debt repayment. · Modify the dispute resolution process to provide that, after the Metropolitan Policy Committee makes its recommendation, the commission's action takes effect only after all the governing bodies agree, except that the objecting governing body's recourse is limited to submitting the matter to the commission for reconsideration when the objection is to the commission's determination of rates and amounts pursuant to Section 3.e. 1. Note that the current IGA contains a comparable clause that committed the governing bodies to adopt rates and connection charges that were sufficient to comply with the wastewater grant requirements of the CFR. · Provisions were also added to Section 13 to facilitate adoption of the MWMC budget by the start of the fiscal year (July 1). Changes also are proposed to Appendix A of the intergovernmental agreement to reflect a revised definition of"regional" wastewater facility. This revision shifts the current definition from an arbitrary pipe size, to a consistently applied concept of"shared flows." The new language establishes a logical ownership pattern whereby components of the overall wastewater collection and conveyance system that serve only Eugene or Springfield are owned and maintained by the appropriate agency. Components that transport or treat wastewater from both Eugene and Springfield are defined as part of the regional MWMC system. This revision reflects the actual practices used by the cities' local sewer programs and the Regional Wastewater Program for many years. L:\CMO\2005 Council Agendas\M050523\S0505234.doc The Springfield City Council held a work session on the proposed amendments to the IGA on March 21, 2005, and an additional meeting on April 18, 2005, for the first reading and public hearing on the ordinance related to the proposed amendments to the IGA and the related issuance of the revenue bonds. Two members of the public spoke at the public hearing. The Springfield City Council approved amendments to the IGA on May 2, 2005. The amendments approved differ slightly from the version now being considered by the Eugene City Council. The Lane County Finance and Audit Committee first discussed the proposed amendments to the IGA on March 15, 2005. A follow-up meeting of the Finance and Audit Committee was held on April 11, at which time the committee voted to forward the proposed amendments to the full Board of Commissioners for consideration. The first reading of the ordinance approving the updated IGA is scheduled for May 18, 2005, with a second reading and public hearing on June 1, 2005. The amendments that will be considered by the County Board of Commissioners are the same as those which are currently before the Eugene City Council. If the County Board of Commissioners and Eugene City Council approve the amendments, they would be forwarded back to the Springfield City Council for its review and final approval. Amending the IGA requires consensus of all parties to the agreement; therefore, if any one jurisdiction does not accept the amendments, the IGA remains as it is currently written. In this eventuality, the MWMC would not be able to utilize revenue bonds as the most cost-effective mechanism for raising the revenue necessary to implement the 2004 Facility Plan and would have to turn to higher cost options, which include substantial increases in user rates or borrowing at significantly higher interest rates. It is unclear, given the out-of-date nature of the IGA and potential conflicts among the governing bodies, whether any external borrowing (even at higher interest rates) would be possible. Should the governing bodies not universally agree on the need and language for amending the IGA, any of the parties to the agreement have the option of terminating their participation in the agreement, by providing one year's advance notice of termination to the other governing bodies. If the County Board of Commissioners was willing to withdraw from the MWMC, the change could be handled as an amendment to the existing IGA and potentially could happen fairly quickly. If the County was not a willing partner in such a change, the dissolution of MWMC and subsequent reformation of an agreement for management of the regional wastewater program could take a year or longer. It is uncertain what the budget/fiscal status of the regional wastewater program would be during the process of reformulating the agreement. RELATED CITY POLICIES Not applicable. COUNCIL OPTIONS 1. Approve the recommended changes to the intergovernmental agreement between Eugene, Springfield, and Lane County for the regional wastewater program, the related ordinance for the IGA and the resolution to approve issuance of revenue bonds by MWMC. 2. Direct staff to modify the proposed changes to the IGA and return with a modified proposal for Council approval. 3. Take no action on the proposed changes to the IGA. L:\CMO\2005 Council Agendas\M050523\S0505234.doc CITY MANAGER'S RECOMMENDATION The City Manager recommends adoption of the proposed changes to the regional wastewater IGA and approval of issuance of the revenue bonds by MWMC. SUGGESTED MOTIONS Move to adopt an ordinance creating the Metropolitan Wastewater Management Commission as an intergovernmental entity; and providing for an immediate effective date Move to Adopt Resolution 4837 approving the issuance of revenue bonds by the Metropolitan Wastewater Management Commission; and providing an effective date ATTACHMENTS A. Revised IGA in legislative format B. Revised IGA, clean copy C. Ordinance D. Resolution FOR MORE INFORMATION Staff Contact: Peter Ruffler Telephone: 682-8606 Staff E-Mail: peter.j.ruffler~ci.eugene.or.us L:\CMO\2005 Council Agendas\M050523\S0505234.doc TABLE SL~nmary ~! 2~Y~r P,r~ecl Ust AIIl~t~ns for ImDm~rm~t F~ AIl~s~n Gro~ Potion E~isting (in ZOO4 ~:i~n (in ExJetin,g PROJECT ,d,ollars) Gr~th % ~04 Dollam) U~m % Coll~ System~l~lu~nt Pumping Wil~k~nzJe Pump StetSon E:xp~n~sb n~ ~2,,2~,118 5~% ~3,T05, 5~2 82% Scr~' Pu~mp Staten Ex~a~ns~on ~,,0,08 38% S1 ,,0~,~ 82% $I,7,~,,~ Ter~ Strut Pu~mp Sta~t~n U~tr,~e ~ CB, IV~il Gien~ Pump Sta~ti,on Up, raCe $$91,178 38% $~,824 82% RJ~r Avenue Ilmcr,~,ements ~0 0% $3~,~0 108% LJ,qu~s Heo~,~orks E:xp:~ns bn ~,8~,118 38% ~7,98~5,882 82:5'; Pdma¢~ d:~r~er enha~n,ce~n~s $7~8,4~1; 85~4 ~23,5~ 355~ ~8~bn ~1 od,orou~ :~ir tmartme nl $1,797,,019 285~ ~5,102,~1; 745'; No~h :asret~on bssin ~mprovemsn~s $3,840,&2,8 595~ $2:,559,1~ 415'; ~ n~a~ d a~r~,er ,eh bsnceme n~ts ~2:,2,C,3,,028 42:~4 ~3,,898,974 585~ F~ltm,tion $8,412,~9 4Z5; S11 ,T57,355 585~ Nec B~nksBe ,Ou~ll $573,529 385~ $9~,471; 825'; Sub~ot:~l LJ~ui~ Tre;attment $37~0:35,568 4~% ~8,~4~ 575'; Trea, a~ nt--, Biosoli~m Wa~,e ~fiw,t,ed SludGe Th,i~enin~ ~2:,5,~,,8,0,~ 18~0~4 ~ 0% Dice:stUn Ex~nsion,~C;~,ss A C~rbili~ $~,4~9,7~,~ 54~ $8,:310, Z~ 4~5~ D,i~estbn ~i:xin~ I mpr~eme nts $1,317,519 86~4 $682,481 345~ BJo,c~e F}~rm Phase 2 $~,528 225; $233,472 785~ $3~,,~ Bi,ochre F:arm P~rase 3 $~,528 225~ $233,472 785'; B~oc~e F:arm D4~ dbu~on Eq,uipment $57,8:58 225~ $~2,~2 785'; Corn po:st~nG b~c~l~y $1;~,145 22:5~ $E~,5,85:5 785'; B],osoi~,s Mam;a~em~nt F:~dli~ (BMF) - Line ]:a~ns ph,8:se 1 ~0 0% $1 ,~,~8 1005'; $I,2,~,,~ Su pp~d: Fsci]i~ies ~]~rte na,~me F:a~cili~ Il mcr,~,eme n~ $315,158 21% $1,1~,~ 79% Fib,er lOp, tic W;ir]~r 9 $ 2,101; 21% $7,899 79% $ I Sub~al Sup~rt $317,25T Z1% $1,192,743 79% L:\CMO\2005 Council Agendas\M050523\S0505234.doc TA ELE 8,6,1.2 AH~,c,aa~,n Summa~ Gmw~ P,o~i~ n Existing (in ~04 ~d:t~n (in Ex~st:tn,g PROJECT d,oJlamm) Or~,t:h '% ~04 Dollars) U~rs '% Total T,o~I Tma~e~ Effl u~en~ Re~u~e $5~21~512 ~% $14~5T,455 74% 0~ ProSpects ~ixin~ ~n~ St~ ~p~te ~21,~58 15% $1~,,~2 ~5% ~1~,~ P~I ~il~~ pl~n ~t~ (~1~) ~1,~1~ ~1% ~11~,~ 7~% ~1~,~,~ 8ub~t~l O~h~er Proj~ $4,8~241 18;% $~2,1B~7~ 82% L:\CMO\2005 Council Agendas\M050523\S0505234.doc ~ ~ CHANGES (5/10/05) RESTATED AND AMENDED AGREEMENT Inserted: WITH BETTMAN CHANGES (5/10/05) METROPOLITAN WASTEWATER MANAGEMENT COMMISSION THIS RESTATED AND AMENDED AGREEMENT was entered into the~ day of ¢ ¢ ¢ ~ Deleted: 9th ,2005 by the City of SPRINGFIELD and the~ity of EUGENE, municipal / - ~ Deleted: February, 1977 corporations of the State of Oregon, and LANE COUNTY, a political subdivision of the Deleted: c State of Oregon, herein referred to as Governing Bodies. The Agreement dated Deleted: and Februa was previously amended January 4, 1978, February 16, 1982, ¢Jul~ /¢¢ ) Deleted:, 19, 1991 which am~clm~ts h~¥~ D~ iocorpor~ted h~re~. ~ ~ Deleted: 1990 General R E C I T A L S · ~{ Deleted: a projected / Deleted: area which / / Deleted: c 1. The Governing Bodies have adopted the plan of land use development known as the ~.[¢.a ~¢La.! P]9~ ¢8cl have cl~siga~tecl ia~h¢ pl~8 · Deleted: c AB Urban Growth Bounda~ within which urban services ma~....~.Dj;)rovided. The Urban Deleted: and Growth Bounda~ iocl~d~h~ ~wo~ities (urban lands) and certain unincorporated ~ ~[ Deleted: c areas surrounding the ,~i[i¢~,which ~i¢~ en[i~l~ wi[hio ~h~ ,~Dunt~ ~ / Deleted: projected ~/¢ Deleted: u 2. The gre~ ~..b.i..8 Ih..9 ~UrD¢o , as now or hereafter designated, is a _ ¢ ~ _ Deleted: service area metropolitan area because of its urban character and the close interrelationship ¢ ~1 Deleted: c between the two ~Qities and all parts of the area. ¢ ¢ Deleted: projected u Deleted: service area 3. The urban character of the area makes high quality sewage treatment necessary. Deleted: c 4. Federal funding policy requires sewage treatment and disposal in the projected /////// Deleted:c urban service area to be provided on a unified, metropolitan basis. ,'~,'¢ Deleted: <CC>The Eugene-Springfield //// / Metropolitan Area Waste Treatment ~// / Management Alternatives Plan, which 5. In order to plan for sewerage on a unified basis within the,Urban Growth Boundarv~ j,¢ , has been prepared for the Lane Council of Governments under the,Qities and the,Qounty entered into an agreement January 8, 1974, establishing the /¢ // Environmental Protection ActSection Metropolitan Sewer Advisory Commission. / 208 provisions, shall serve as a basis for developing a unified sewerage / system within the projected urban ~ ~/ ~ service area.¶ §: Th¢~ities have the authority under their~hcrte~ [9 p[ovicl~ fo{~l~ ¢~p~cts of ¢ ¢ ¢ Deleted: 7 sewerage, are providing it presently for parties within their respective boundaries, and ~ ~ - Deleted: c are concerned that it be provided adequately in their environs so as to prevent health ~ ~[ Deleted: C hazards. ~ Deleted: 8 / / / ~ Deleted: c Z: -I'h¢~nty~wh~l¢ not pr~ntly providiog sewerCg¢~h~[h~¢~[horitg~¢cl?!t~ ~h~rt~(to cl9 §~ h¢~ ext~si¥~ cl~[i¢~ und?§[at~ ICw§ r~g¢(cliog publiC san~t¢[iDo~cl ¢ ¢ ¢ ~ Deleted: C is concerned about hazards to public health that arise from inadequate sewerage in the ~ Deleted: 9 //i/~ Deleted: c area. ~ Deleted: c ~: LJ~cl~[h~i(ChCrtem ¢~cl)h¢ Oregon R¢¥is~d Sta[~t~§~the~ities ~d~ou~[g may ,~ ¢( Oe~eted:10 cooperate in providing sewerage and may enter into contracts to carry on that function /¢( Deleted: c jointly or by transferring the function to one of the governmental units. ¢¢ ~ { Deleted: c ...... ¢¢~ ~ ~ Deleted: April 1998 ~. The~hes and the~ounty are determined to prowde sewerage on a umfied bas~s ~ ¢~ ~ Deleted: 83060 in the projected urban service area. ~ ~ ¢ - - { Deleted: (WITH BE%I-MAN [~ [~] 1 V: Environ\MWMC\lGA~Agrement.doc 1 .2005 (doc.~.~.~) NOW DOCUMENT 102151 - ~ CHANGES (5/10/05) ~ Inthe p~rti~ opi~!on~,~t i~ not co~y¢eien~ ord~§irpble for any o~e o[them§!ngly ~ ~ ~ ~Tnserted:WITHcHANGES (5/10/05)BETTMAN to assume or be granted the responsibility for providing sewerage~itbi8 ~b~,~D~n ~ ,~ . The parties do believe that a separate commission should be ~. ~, Deleted: 11 ~ ~ l Deleted:tothe projected estabhshed' for that purpose. ~ ~ ~( Deleted: u 11. The parties ado reement in compliance with ORS 190.010 and 190.085 to ~ Deleted: service area create an intergovernmental entit~with the powers described in ORS 190.080. DEFINITIONS' 1. of the Commission that assist _ ¢ Deleted: Projected Urban Service the Commission in carrv¥ out the Facilities Plan~ Area. The projected urban service area is the estimated geographic area 2. ClP. The list of ca rovement projects that is included in the Commission's ~ within which a full range of urban annual bud roved annuall~ the Governinq Bodies. , services will need to be extended or ~ provided to accommodate urban ~ development at any future point in 3. Facilities Plan. The Commission's 2004 Facilities Plan as periodically updated ~ time (such as 1990). (1990 General ~ Plan, Page 12). pursuant to Section 3.n of this ~greement. Deleted:¶ 4. Financial Plan. The Commission's 2003 Financial Plan as periodicall¥,,,,updated pursuant to Section 3.f of this Aqreement. ¢ ¢ ¢ ~ Deleted: ¶ 6. Metro Plan. The Eu field Metropolitan Area General Plan as amended from time-to-time. 7. Regional Seweraq~ Facilities. That part of the sewera concurrence of the Governinq Bodies. The Commission has res for the Deleted: 3. _ Sewa.qe: The contents of a sewer. 8. Sewa~ The contents of a sewer. / Deleted: 4. ,B. Sewer. A conduit to carry off water and wastewater. Deleted: 5._ Re.qional Seweraqe Facilities. That part of the sewerage system, as defined in Appendix "A" of this Agreement, for which a regional / / entity has responsibility.¶ ~!~. Sewera.qe. All or part of a system used for the collection, transmission, treatment ,' ' Deleted: 6.. Local Seweraqe Facilities. All other publicly owner sewerage facilities in the projected and disposal of sewage. / urban service area. ~ / Deleted: <#>Equivalent DwellinFl ~ ~ / Unit. The average sewage Icad ~ contributed by a single family ~ ~ dwelling. The sewage Icad for commercial, industrial or other connections may be expressed in 11. Urban Growth Bounda rowth bounda ected terms of equivalent dwelling units.¶ ~hic area within which a full ran~ of urban services will need to be extended or Deleted: April 1998 provided to accommodate urban development as set forth in the Metro Plan. Deleted: 83060 ~ ~ ~ /~ Deleted: (WITH BE%I-MAN ~ ~ ~ CHANGES) V: Environ\MWMC\lGA~Agrement.doc 2 2005 (doc.~8~.~) NOW DOCUMENT 102151 ~ ~ CHANGES (5/10/05) AGREEMENTS' Inserted: WITH BETTMAN 1. Commission: The Metropolitan Wastewater Management Commission, herein CHANGES (5/10/05) referred to as Commission, is hereby established as an intergovernmental entity pursuant to ORS 190.01~ 190.080 and 190.085 to function under the authority of this Agreement.effective FebruaryThe Commissior~ replace~the9, 1 977. Metropolitan Sewer Advisory Commission 2. General Function: The Commission shall construct, operate and maintain the ~eg!onal' ~ewErag~cilities~ The, Commission shall finance these facilities in ~-¢ ¢- {___Deleted: r accordance wit he Commission's Financial Plan. The Commission shall have all the ~ ~ Deleted: s powers allowed to an i~{~rqo~rn~tal ~{i{~ ~ada~ ORS ',, ~ ~ Deleted: f other statute that owers to such ~ ~' Deleted: as described in Appendix is~tD[governmental entities for purposes of car eciflc Functions set forth in "L"A of this Agreement, or as Section 3 of this ~greement. subsequently modified with the concurrence of the Governing Bodies Deleted: an adopted financing plan 3. Specific Functions: The specific functions of the Commission shall be to: based on the financing criteria described in Appendix "B" of this ~ , Agreement or as subsequently ~ Const[uct, ma~nt¢in ~nd operate ~,b,,~,~gion¢[~wemg~ ~aciliti~§~ '~ modified with the concurrence of the ~ '~~ Governing Bodies ~, E8~i!i~t ~tb~ ~P!~ti~ bCP[ ~ ~[t[ [~[isg ~8~[ ~biP[ ~t b~ Deleted: ¶ Commission of the Existin endix"A" Section VI. ', a. Recommendtheboundariesofthe County Service District to the Lane ~ t[~[~r ~[ 9~[~ip ~9~ ~!! p~9~ i~ ~ ~i~!y ~[ ~ ~i~ ~y '~ ~', county Commissioners.¶ " ~] Deleted: f Deleted: c. Compensate the cities 2. Achievin ional sewer users within the Urban Growth for existing sewerage facilities as Bounda~ defined in Appendix "A'. Deleted: ¶ g. Sal~Dgff ~b~0clD~d §~wemg~ ~ciliti~. ~ _ ~ d Deleted: d ~ Deleted: e ~ ~mp]~rn~[~t~9 ~.~i.a.! E!.a~ a..~.~ 9~1 budget~or the regional sewerage ~ Deleted: a financing plan, facilities. ~ ~ ~' Deleted: and annual financial statement A: ~Recommend to the Governing bodies a schedule of sewer user charges and Deleted: f ~ystem development charges for regional sewer services. The Commission's Deleted: Adopt a schedule of sewer recommendation shall se set foi'th: user charges and connection fees for regional sewer services. The Commission's adopted user charges 1. The rates and amounts that the Commission reasonabl' determines shall separately set forth the amount are necessary to meet Bond covenants~ and to achieve and maintain an unenhanced necessary to recover operation, maintenance and replacement costs credit rating of A for the Commission's Bonds from at least one nationall~nized as required by 40 CFR 35.929 during and the 20 year design life of the regional sewerage facilities. Connection fees are to be established pursuant to 2. Such additional rates and amounts that the Commission determines Appendix"B'. riate to ade~ fund the actions necessa~erform the Commission's Deleted: April 1998 functions under this ~reement. Deleted: 83060 ~ ~ / Deleted: (WITH BE~-MAN ~ ~ ~ CHANGES) V: Environ\MWMC\lGA~Agrement.doc 3 2005 (doc.~) NOW DOCUMENT 102151 ~ _--IDeleted: WITH BETTMAN [, ~pdate the Financial Plan, as necessary from time to timed so as to provide ~ ~ CHANGES (5/10/05) guidance for the generation of revenue sufficient for the Commission to fulfill its Inserted: WITH BETTMAN CHANGES (5/10/05) functions under the &greement. Any update of the Financial Plan shall be desiqned to promote the followinq~'ectives: 1. Establishing revenue ade rovide for Ionq-term health and of the reqional sewera~ facilities throu ram of monthl~ sewer user stem development charges that are imposed uniforml hour the service area to achieve full cost recove~ 2. FuI the needs for lacement and ma'~ rehabilitation to address the Ion reservation of the Reqional Sewera~ Facilities ~ital assets~ 3. Full fundin a rD ramofca ital im rovementsto address ca acit and efficiency/effectiveness needs; 4. Ensurin between newly connected and connected users for their total contributions toward the Regional Seweraq9 Facilities; 5. Ensurin between various classes of users based on the relevant factors identified bv the Commission; 6. Ensuring efficient and cost-effective financial administration of the 7. Com licable laws and regulations including those g ~ ~ ~ i ~ g ~ b ~ ~ ~! i~ b m~ ~ ~ ~ ~ ~ b ~ rg ~ ~ ~ t b ~ ~ ~!i~ b m~ ~ ~ ~ y~t ~ m ment charq~ursuant to ORS 223.297 et se~ g. Establish billing and collection systems, if necessary, in locations where such systems are not provided by others. h. Contract with the Governing Bodies for operation and maintenance of the ~egion~l~SeweEage ~acilities _ - -{ Deleted: r ) Commission and for other services as necessary. ~ ~ ~{ Deleted: s ) i. Contract for consultant services. j. Provide service only to the Governing Bodies. k. Comply with state and federal standards. I. Adopt minimum uniform standards for pretreatment requirements for industrial and other wastes as necessary. ~ ~( Deleted: April 1998 m. Adopt minimum standards for construction and maintenance of local sewage ~ ~/~ Deleted: 83060 collection systems. ~ ~ / ~ Deleted: (WITH BE%I-MAN ~ ~ ~ ~ ~ CHANGES) V: Environ\MWMC\lGA~Agrement.doc 4 2005 (doc.~8~.~) NOW DOCUMENT 102151 -IDeleted: WITH BETTMAN ~ ~ CHANGES (5/10/05) n. ~egion~l~EwCrage ~ciliti~ursuant to the on's Tnserted: WITH BETTMAN Facilities Plan. Changes in the Facilities Plan made kY the Commission that result from ~ ~ CHANGES (5/10/05) Deleted: Plan and make what are described as the Partial or Comprehensive ~dates scheduled for 201 recommendations to the Governing ~ Bodies for expansion and 2020 and 2025 in the 20-Year Pro Bodies for ~i~ improvement of review and ~roval. The scheduled ~dates shall be submitted at least 6 months in advance of the antic roval date and shall be accom an estimate of ~ Deleted: r the effect the ~date may have on sewer user charqes and ~stem development '~I Deleted: s ~es. All other changes to the Facilities Plan may be made ~ the Commission ( Deleted: f without referral to the Governinq Bodies unless the Commission estimates that they will increase either sewer user cha stem development char~5% or more. In osed change to the Facilities Plan shall be submitted to the Governing Bodies for review and @roval in accordance with the above Crocedure for scheduled gpdates excep~ that the pr9posed chang9 shall be submitted at least 90 day~ in advance of the antici roval date. o. Take any action necessary or convenient to perform the above functions or other duties as specified elsewhere in this Agreement. No powers or duties related to local annexation or growth policies are granted to the Commission. ¢....................p, Issue Bonds as provided in ORS 190.080 or as otherwise allowed under state ! ~ ~i~ ~ ~ ~ ~;t~ [~g~[~! ~ gt ~ @ ~7~i~ ~B~ g i~ ~ ~ !~ ~ ~ !~ g ~ Facilities and the i..~position of sewer user charqes and ~.ystem development chargE.~ that are intended to secure favorable interest rates and other terms for the Bonds. 4. Membership: The Commission shall consist of seven (7) voting members: a. Each Governing Body shall appoint to the Commission one (1) elected official of that Governing Body. b. The City Council of Eugene, shall appoint two (2) additional members to the Commission. The City Council of Springfield and the Lane County Commissioners shall each appoint one additional member to the Commission. c. Members of the Commission shall serve for the term set by the Commission in its bylaws and at the pleasure of the Governing Body appointing that member. d. A quorum of the Commission shall be five (5) members providing at least one member appointed by each Governing Body is present. Decisions of the Commission shall require a majority vote of the entire membership unless otherwise provided in this Agreement. 5. Bylaws: The Commission shall adopt a set of bylaws governing its conduct. The bylaws shall: a. Establish times and places of meetings. /.J' Deleted: April 1998 b. Establish a central office for the Commission which shall have a mailing ¢ z ~[ Deleted: 83060 addr~ess, a telephone and acom. plete set of records ofthe Commission, be the main IDeleted: (WITH BE%I-MANCHANGES) V: Environ\MWMC\lGA~Agrement.doc 5 2005 (doc.~8~.~) NOW DOCUMENT 102151 ~ ~ CHANGES (5/10/05) place where information about the Commission can be obtained, and be under the charge of the designated agent of the Commission. Inserted: WITH BETTMAN CHANGES (5/10/05) c. Prescribe officers of the Commission, including president and other officers to be elected by the Commission from among its members. The president shall see that meetings of the Commission are conducted in accordance with the bylaws. 6. Meetings: Meetings of the Commission shall be held regularly at times and places designated in the bylaws. 7. Functions of Governin.q Bodies: The Governing Bodies shall continue to perform the following functions: a. Billing and collection of sewer user charges stem development chargD~. User char~ will be billed and collected monthl~stem development ~b~rges will be billed and collected ~y ~ggene and ~pdQgfield in accordance with state law. b. Provide local sewage collection (sewers beyond those specified in Appendix "A".) c. Provide customer contact. d. Establish local annexation and growth policies. 8. Obligations of Governin.q Bodies: The Governing Bodies shall assume the following obligations: a. L its share of revenues as specified in Governin~ on behalf of the Commission. Efforts to collect delinquent the adopted financing plan. delinquent accounts for other utility ~8!~ges due to the Euqene Water and Electric Board for such revenues collected ~ene and the ~field Utilit~ Board for such revenues collected eld. If Lane County collects revenue on behalf of the Commission, Lane Count~ will use delinquent account collection policies and practices that are similar to those used ene Water and Electric Board and the ~pEisgfield Utility Board. b. Adopt, as a minimum, the Commission's standards for construction and maintenance of sewage collection systems and for pretreatment requirements for industrial and other wastes. c. Adopt sewer user charges anQ~ose those _ ¢ ~r Deleted: required by 40 CFR 35.929 ~es on behalf of the Commission at the rates and in the amounts l jin an amount not less than adopted by the Commission. recommended ~the Commission pursuant to Section 3.e.1. An¥¥ection to the rates of such sewer user recommended b the Commission ursuant to Section 3.e.1 shall be resolved ursuantto the third ara rah of Section 16 of this A reement. If the ~¢~,Oeleted:83060 ~Commissionrecommends dditional rates and amounts ursuantto~Section:3.e. 2 Deleted: (WITH BE~-MAN CHANGES) V: Environ\MWMC\lGA~Aorement.doc 6 2005 (doc.~.~) NOW DOCUMENT ~02~5~ £ - - ~1 Deleted: WITH BETTMAN those additional sewer user charqes and'~ ~ystem development charges shall only - ~ ~~- CHANGES (5/10/05) be ado the Governinq Bodies. Inserted:WITH BETTMAN CHANGES (5/10/05) d. Provide the Commission with reports of revenues and _ ~ ~ ~{ Deleted: an annual expenses related to ~gio~¢~wer~g~ ~aciliti~§: ~ _ - ~ Deleted: r '~ ~ ~ ~ Deleted: s e. Establish service area boundaries and provide for adjustment thereto as ~ Deleted: f necessary to ensure that service is provided only to areas within the¥1imits of Deleted: taxing district yene and ; to users currently being served or to whom contractual service commitments have been made who are outside the ~ ~ ~ ~ ~ Deleted:taxing district Deleted: taxing district Deleted: Fundamental Principle B and the Public Facilities and Services Element provisions in Chapter III of the Growth Management in the Urban Service Area (Pages: II-B-1 through Metro Plan, as amended. II-B-9) and Public Utilities Services and Facilities, Element G (Pages: III- G-1 through III-G-7) of the f. The Governing Bodies will make commitments necessa~ to assist the Metropolitan Area General Plan. Commission in obtainin~l favorable interest rates and other terms for Bonds the Governing Bodies under ORS 190.080(~) 9. Liabilities__.................,_.' ~The Governinq. Bodies shall be obliqated to imp.....O....S.....e.. .... ~ ~ ~ Deleted: Capacity collect and remit to the Commission sewer user cha stem development Deleted: The initial capacity for the based on the established population Bodies reement. Excep....t.....a....S......provided in the equivalent estimates for the entire ,~,,,,.~.~.~.I.~g....B~.i.~....~b.~.I.I....~.~t...b~...!.i.~.b.I.~...~.~..~.b.~...~.~.b~.~.I~.b.i.!.i~.i.~.~...~.~..~.b.I.I~.~I~.~...~.~..~.b~ metropolitan area. When the sewage loading into the treatment plant Commission. becomes 85% of the initial design capacity, the Commission shall institute a program to expand and/or 10. Grants and ~0¢¢§_.' The Commission shall apply for grants and~i~y...e... ~08¢~ to upgrade thetreatment system beyond achieve the objectives of this Agreement and to carry out an adequate program of ~L~ the initial design capacity. sewerage ~itb~ the,~rban ' ~, '~ Deleted: Loans ~ ~ ~ Deleted: loans for funds 11. Contracts: The Commission may enter into contracts for technical assistance and ~ ~ Deleted: for for construction of facilities to achieve the objectives of this Agreement and to provide ',,~ Deleted: projected u necessary sewerage in the area. ~ Deleted: service area 12. Hearinqs: The Commission may conduct hearings on complaints from any rate payer who is aggrieved by rules of the Commission, by sewerage rules, regulations, policies, or practices of the Governing Bodies, or by any aspect of the sewerage operations of the Governing Bodies. "Rate payer~ means any person or entity responsible for the payment of any charge or fee imposed on behalf of the Commission. Deleted: 13.. Initial Expenses: The The Commission shall provide in its bylaws for advance notice and for conduct of the administrative or other expenses of the Commission prior to the adoption hearings. After the hearing, the Commission shall submit to the Governing Bodies and of the financial plan and receipt of to the complainant its findings and recommendations regarding the complaint. / revenues therefrom shall be borne o / 63% by Eugene, 24 Fo by Springfield, and 13% by Lane County, subject to / budgetary limitations of the Governing ~ Bodies. ~. Annual Bud.qet an¢ The Commission shall prepare ~ ~ ~ De~eted:14 an annual and aD. necessary supplemental budgets and ClP in accordance with its Deleted: April 1998 bylaws. The Commission may make expenditures or incur obligations only within limits Deleted: 83060 set by the budget and CIP. Exce enditures that the Commission~reasonab[y ~ ~ ~ Deleted: (WITH BE~-MAN ~ ~ ~ CHANGES) V: Environ\MWMC\lGA~Agrement.doc 7 2005 (doc.~8~.~) NOW DOCUMENT 102151 -IDeleted: WITH BETTMAN ~ - CHANGES (5/10/05) determines are necessan/to meet Bond covenants and achieve and maintain an unenhanced credit ratinq of A for the Commission's Bonds from at least one nationally Inserted: WITH BETTMAN CHANGES (5/10/05) E~Qgnized ratin he Cc)mmi~iog,shall not make any ~penditures until the ~ Deleted: T Commission's budqet and CIP ~ave been ratified by the Governing Bodies. The ~ ~ . Commission shall deliver its recommended bud ether with its estimate of ~ Deleted: budgets the rates and amounts that are necessa~ to fund the recommended bud ~ ~ Deleted: be effective until the Governinq Bodies ~ 1 of each year. If one of the Governinq Bodies objects to the recommended bud to fund them~the Governing ~ shall make every reasonable attem~ to use the reconsideration and mediation process set forth in Section 16 in sufficient time to assure that the Commission has an ~roved bud ~. Recommendations: Upon recommendation of the Commission, the Governing ~ ~ ~ { Deleted: 15 Bodies shall: a. Establish sewerage policies. b. Provide the personnel and services necessary for the operation and maintenance of the regional sewerage system at the expense of the Commission. c. Adopt a system of sewer user charges and ~ystem development charges as ¢ ~ ¢ ~ Deleted: connection fees. In the k case or user charges required by 40 CFR 35.929, the charges adopted shall be not less than those recommended by the Commission.. d. Levy and collect the charges¢ - - - ~ Deleted: severally e. Apportion funds that the Governing Bod~.. receive§ for sewerag~Dt~99O ;tb~ ~ _ ¢ { Deleted: ies ~9~9[8i8g B9¢¥ aBC Ih9 ~i~i98 i8 ~irD~;t Pi;DPDeigO [9 th9 [9[~! ~b~rg~ [b~[ a[~ - - ~ Deleted: in accordance with the the Governin~ for sewera~ on behalf of the Commission and the [. Commission's adopted financial plan ¢ ¢ ¢ ~ Deleted: ¶ ~!~ Modification and Termination: Thi~ Agreement shall continu~ ~nt[I modified by / <CC>Provide rundsrorcapital unanimous consent of the Governing Bodies. A Governing Body may terminate its ~ /systemimpr°vements to thein accordanceSeWeragewith the ......... ~ Commission's adopted financial plan."[ parbc~pabon ~n the Agreement by one year's advance nobce ofterm~nabon~to ~ ~[. the other Governing Bodies. If the parties ~re un~ble~o agree on the division o¢~et~ ; ~ ~[ Deleted: 16 and liabilities between the parties, the dispute shall be referred to a board of arbitration ~ Deleted: 30 days written notice at for its decision concerning the division. The board shall have five members; ~j~clg~ c)[ ,~ any time prior to bond authorization the Circuit Court of Lane County to be selected by the chief judge of the Court, a ,, ~ Deleted:. Thereafter, representative of the State Department of Environmental Quality to be selected by the ~ ~ ~ Deleted: must be provided director of the Department, ¢5cl one [epre§¢otatiye who he§ not served 9n~he ~[ Deleted:, Commission from each ,Governing~ody[o I:)? selected bythe respec[iye GDverning - - -[ Deleted:d Bodies. Notwithstandin~recedin that ~' ~ ~[ Deleted: g ~ated to collect revenue on behalf of the Commission may not terminate its ~{ Deleted: b ~ation in this ~reement unless all Bonds have been paid or defeased. , ~ Deleted: 17 ~. Reconsideration and Mediation: If one or more of the Governing Bodies objects to ~ ~ · Deleted: pursuant ~ny ac{ion proposed o~ {~ken Dy {he Commission, ihcluding ~ny action~ken }o ~ ~.. Deleted: Appendix "B" , the Governing Body objecting to ~ ¢ ~. Deleted: April 1998 the action shall request that the Commission reconsider such action by delivering a ¢//{ Deleted: 83060 written request therefor to the Commission. The Commission shall put suchaction on its ~ Deleted: (WITH BE%I-MAN CHANGES) V: Environ\MWMC\lGA~Agrement.doc 8 2005 (doc.~8~.~) NOW DOCUMENT 102151 Deleted: WITH BETTMAN ~ - - - CHANGES (5/10/05) agenda for reconsideration at any Commission meeting within 45 days after receipt of ~ ~ ~ the request for reconsideration. Except as provided below, if a Governing Body objects 1 Inserted: WITH BETTMAN to the Commission's action after reconsideration by the Commission, the Governing , CHANGES (5/10/05) Body may refer the matter to the General MembershiB of the Metropolitan Policy Committee (MPC) for mediation in accordance with any procedure adopted by MPC. If a resolution of the matter has not been reached previously, MPC shall, within 45 days after referral of the matter to MPC, make a written recommendation for resolution of the matter to the Governing Bodies for their consideration. MPC's recommendation shall be advisory only and shall not be binding on the Governing Bodies. Except as provided below, the Commission's action shall take effect only after all Governing Bodies are in agreement. Jf~h~ acti95 obj~ct~d~oj~ [h~ Commissio~'s~determination of rates and amounts _ ~ ~ { Deleted: ,the recourse of an objecting Governing Body is limited to -- ~r Deleted: adoption of user rates submitting the matter to the Commission for reconsideration within 30 days after the [ required by 40 CFR 35.929 J Commission's recommendation is made. The Commission's decision on reconsideration of those rates and amounts shall be final. IN WITNESS WHEREOF, the undersigned, by authority of their respective Governing Bodies, have executed the within Agreement. DATE: CITY OF SPRINGFIELD, a Municipal Corporation of the State of Oregon By: Title: City Manager DATE: CITY OF EUGENE, a Municipal Corporation of the State of Oregon By: Title: City Manager DATE: LANE COUNTY, a Political Subdivision Of the State of Oregon By: Title: County Administration Deleted: April 1998 Deleted: (WITH BE%I-MAN m . ~ ] ] ] ] ] ] ] ] ] ] ] CHANGES) V: Environ\MWMC\lGA~Agrement.doc 9 2005 (doc.~8~.~) NOW DOCUMENT 102151 (WITH BETTMAN CHANGES) RESTATED AND AMENDED AGREEMENT METROPOLITAN WASTEWATER MANAGEMENT COMMISSION THIS RESTATED AND AMENDED AGREEMENT was entered into the -- day of ., 2005 by the City of SPRINGFIELD and the City of EUGENE, municipal corporations of the State of Oregon, and LANE COUNTY, a political subdivision of the State of Oregon, herein referred to as Governing Bodies. The original Agreement dated February 9, 1977, was previously amended January 4, 1978, February 16, 1982, July 19, 1991and April 3, 1998 which amendments have been incorporated herein. RECITALS: 1. The Governing Bodies have adopted the plan of land use development known as the Eugene/Springfield Metropolitan Area General Plan and have designated in the plan an Urban Growth Boundary within which urban services may be provided. The Urban Growth Boundary includes the two Cities (urban lands) and certain unincorporated areas surrounding the Cities which lies entirely within the County (urbanizable land). 2. The area within the Urban Growth Boundary, as now or hereafter designated, is a metropolitan area because of its urban character and the close interrelationship between the two Cities and all parts of the area. 3. The urban character of the area makes high quality sewage treatment necessary. 4. Federal funding policy requires sewage treatment and disposal in the projected urban service area to be provided on a unified, metropolitan basis. 5. In order to plan for sewerage on a unified basis within the Urban Growth Boundary, the Cities and the County entered into an agreement January 8, 1974, establishing the Metropolitan Sewer Advisory Commission. 6. The Cities have the authority under their charters to provide for all aspects of sewerage, are providing it presently for parties within their respective boundaries, and are concerned that it be provided adequately in their environs so as to prevent health hazards. 7. The County, while not presently providing sewerage, has the authority under its charter to do so, has extensive duties under state laws regarding public sanitation, and is concerned about hazards to public health that arise from inadequate sewerage in the area. 8. Under their Charters and the Oregon Revised Statutes, the Cities and County may cooperate in providing sewerage and may enter into contracts to carry on that function jointly or by transferring the function to one of the governmental units. 9. The Cities and the County are determined to provide sewerage on a unified basis in the projected urban service area. V: Environ\MWMC\lGA~Agrement. doc 1 ,2005 (doc. 98535) NOW DOCUMENT 102151 10. In the parties' opinions, it is not convenient or desirable for any one of them singly to assume or be granted the responsibility for providing sewerage within the Urban Growth Boundary. The parties do believe that a separate commission should be established for that purpose. 11. The parties adopt this Agreement in compliance with ORS 190.010 and 190.085 to create an intergovernmental entity with the powers described in ORS 190.080. DEFINITIONS: 1. Bonds. Bonds, notes, loans and other borrowings of the Commission that assist the Commission in carrying out the Facilities Plan. 2. CIP. The list of capital improvement projects that is included in the Commission's annual budget and approved annually by the Governing Bodies. 3. Facilities Plan. The Commission's 2004 Facilities Plan as periodically updated pursuant to Section 3.n of this Agreement. 4. Financial Plan. The Commission's 2003 Financial Plan as periodically updated pursuant to Section 3.f of this Agreement. 5. Local Seweraqe Facilities. All other publicly owned sewerage facilities within the urban growth boundary. 6. Metro Plan. The Eugene/Springfield Metropolitan Area General Plan as amended from time-to-time. 7. Re,qional Sewera,qe Facilities. That part of the sewerage system, as defined in Appendix "A" of this Agreement, as it may subsequently be modified with the concurrence of the Governing Bodies. The Commission has responsibility for the Regional Sewerage Facilities. 8. Sewa,qe: The contents of a sewer. 9. Sewer. A conduit to carry off water and wastewater. 10. Sewera,qe. All or part of a system used for the collection, transmission, treatment and disposal of sewage. 11. Urban Growth Boundary. The urban growth boundary is the projected geographic area within which a full range of urban services will need to be extended or provided to accommodate urban development as set forth in the Metro Plan. V:Environ\MWMC\lGA~Agrement. doc 2 ,2005 (doc. 98535) NOW DOCUMENT 102151 AGREEMENTS: 1. Commission: The Metropolitan Wastewater Management Commission, herein referred to as Commission, is hereby established as an intergovernmental entity pursuant to ORS 190.010, 190.080 and 190.085 to function under the authority of this Agreement. The Commission replaced the Metropolitan Sewer Advisory Commission effective February 9, 1977. 2. General Function: The Commission shall construct, operate and maintain the Regional Sewerage Facilities. The Commission shall finance these facilities in accordance withthe Commission's Financial Plan. The Commission shall have all the powers allowed to an intergovernmental entity under ORS Chapter 190, as it may be amended from time to time, and any other statute that grants powers to such intergovernmental entities for purposes of carrying out the Specific Functions set forth in Section 3 of this Agreement. 3. Specific Functions: The specific functions of the Commission shall be to: a. Construct, maintain and operate the Regional Sewerage Facilities. b. Facilitate the completion of the process of transferring ownership to the Commission of the Existing Sewerage Facilities as defined in Appendix "A" Section VI. The transfer of ownership process shall proceed in a timely manner as determined by the mutual agreement of the Commission and the Cities of Eugene and Springfield. The transfer of ownership process shall include consideration of the following factors: 1. Original source of funds for acquisitions, construction, maintenance, equipment replacement, and major rehabilitation; and 2. Achieving equity among regional sewer users within the Urban Growth Boundary. c. Salvage abandoned sewerage facilities. d. Implement the Financial Plan and annual budget for the regional sewerage facilities. e. Recommend to the Governing bodies a schedule of sewer user charges and system development charges for regional sewer services. The Commission's recommendation shall separately set forth: 1. The rates and amounts that the Commission reasonably determines are necessary to meet Bond covenants, and to achieve and maintain an unenhanced credit rating of A for the Commission's Bonds from at least one nationally recognized rating agency; and 2. Such additional rates and amounts that the Commission determines are appropriate to adequately fund the actions necessary to perform the Commission's functions under this Agreement. V:Environ\MWMC\lGA~Agrement. doc 3 ,2005 (doc. 98535) NOW DOCUMENT 102151 f. Update the Financial Plan, as necessary from time to time, so as to provide guidance for the generation of revenue sufficient for the Commission to fulfill its functions under the Agreement. Any update of the Financial Plan shall be designed to promote the following objectives: 1. Establishing revenue adequacy to provide for long-term health and stability of the regional sewerage facilities through a program of monthly sewer user charges and system development charges that are imposed uniformly throughout the service area to achieve full cost recovery; 2. Fully funding the needs for equipment replacement and major rehabilitation to address the long-term preservation of the Regional Sewerage Facilities capital assets; 3. Fully funding a program of capital improvements to address capacity, regulatory and efficiency/effectiveness needs; 4. Ensuring equity between newly connected and previously connected users for their total contributions toward the Regional Sewerage Facilities; 5. Ensuring equity between various classes of users based on the volume, strength and flow rate characteristics of their discharges together with any other relevant factors identified bv the Commission; 6. Ensuring efficient and cost-effective financial administration of the Regional Sewerage Facilities; and 7. Complying with applicable laws and regulations including those governing the establishment of user charges and the establishment of system development charges pursuant to ORS 223.297 et seq. g. Establish billing and collection systems, if necessary, in locations where such systems are not provided by others. h. Contract with the Governing Bodies as appropriate for operation and maintenance of the Regional Sewerage Facilities, administrative services for the Commission and for other services as necessary. i. Contract for consultant services. j. Provide service only to the Governing Bodies. k. Comply with state and federal standards. I. Adopt minimum uniform standards for pretreatment requirements for industrial and other wastes as necessary. m. Adopt minimum standards for construction and maintenance of local sewage collection systems. V:Environ\MWMC\lGA~Agrement. doc 4 ,2005 (doc. 98535) NOW DOCUMENT 102151 n. Improve the Regional Sewerage Facilities pursuant to the Commission's Facilities Plan. Changes in the Facilities Plan made by the Commission that result from what are described as the Partial or Comprehensive updates scheduled for 2010, 2015, 2020 and 2025 in the 20-Year Project List, will be submitted to the Governing Bodies for review and approval. The scheduled updates shall be submitted at least 6 months in advance of the anticipated approval date and shall be accompanied by an estimate of the effect the update may have on sewer user charges and system development charges. All other changes to the Facilities Plan may be made by the Commission without referral to the Governing Bodies unless the Commission estimates that they will increase either sewer user charges or system development charges by 5% or more. In that event, the proposed change to the Facilities Plan shall be submitted to the Governing Bodies for review and approval in accordance with the above procedure for scheduled updates except that the proposed change shall be submitted at least 90 days in advance of the anticipated approval date. o. Take any action necessary or convenient to perform the above functions or other duties as specified elsewhere in this Agreement. No powers or duties related to local annexation or growth policies are granted to the Commission. p. Issue Bonds as provided in ORS 190.080 or as otherwise allowed under state law, and enter into covenants regarding the operation of the Regional Sewerage Facilities and the imposition of sewer user charges and system development charges that are intended to secure favorable interest rates and other terms for the Bonds. 4. Membership: The Commission shall consist of seven (7) voting members: a. Each Governing Body shall appoint to the Commission one (1) elected official of that Governing Body. b. The City Council of Eugene, shall appoint two (2) additional members to the Commission. The City Council of Springfield and the Lane County Commissioners shall each appoint one additional member to the Commission. c. Members of the Commission shall serve for the term set by the Commission in its bylaws and at the pleasure of the Governing Body appointing that member. d. A quorum of the Commission shall be five (5) members providing at least one member appointed by each Governing Body is present. Decisions of the Commission shall require a majority vote of the entire membership unless otherwise provided in this Agreement. 5. Bylaws: The Commission shall adopt a set of bylaws governing its conduct. The bylaws shall: a. Establish times and places of meetings. b. Establish a central office for the Commission which shall have a mailing address, a telephone and a complete set of records of the Commission, be the main V:Environ\MWMC\lGA~Agrement. doc 5 ,2005 (doc. 98535) NOW DOCUMENT 102151 place where information about the Commission can be obtained, and be under the charge of the designated agent of the Commission. c. Prescribe officers of the Commission, including president and other officers to be elected by the Commission from among its members. The president shall see that meetings of the Commission are conducted in accordance with the bylaws. 6. Meetin,qs: Meetings of the Commission shall be held regularly at times and places designated in the bylaws. 7. Functions of Governinq Bodies: The Governing Bodies shall continue to perform the following functions: a. Billing and collection of sewer user charges and system development charges. User charges will be billed and collected monthly. System development charges will be billed and collected by Eugene and Springfield in accordance with state law. b. Provide local sewage collection (sewers beyond those specified in Appendix c. Provide customer contact. d. Establish local annexation and growth policies. 8. Obligations of Governinq Bodies: The Governing Bodies shall assume the following obligations: a. Each month remit to the Commission all revenues that are collected by the Governing Body on behalf of the Commission. Efforts to collect delinquent accounts will be consistent with the policies and practices for the collection of delinquent accounts for other utility charges due to the Eugene Water and Electric Board for such revenues collected by Eugene and the Springfield Utility Board for such revenues collected by Springfield. If Lane County collects revenue on behalf of the Commission, Lane County will use delinquent account collection policies and practices that are similar to those used by the Eugene Water and Electric Board and the Springfield Utility Board. b. Adopt, as a minimum, the Commission's standards for construction and maintenance of sewage collection systems and for pretreatment requirements for industrial and other wastes. c. Adopt sewer user charges and system development charges and impose those charges on behalf of the Commission at the rates and in the amounts recommended by the Commission pursuant to Section 3.e.1. Any objection to the rates or amounts of such sewer user charges or system development charges recommended by the Commission pursuant to Section 3.e.1 shall be resolved pursuant to the third paragraph of Section 16 of this Agreement. If the Commission recommends additional rates and amounts pursuant to Section 3.e.2, V:Environ\MWMC\lGA~Agrement. doc 6 ,2005 (doc. 98535) NOW DOCUMENT 102151 those additional sewer user charges and system development charges shall only be adopted if they are approved by the Governing Bodies. d. Provide the Commission with regular periodic reports of revenues and expenses related to Regional Sewerage Facilities. e. Establish service area boundaries and provide for adjustment thereto as necessary to ensure that service is provided only to areas within the city limits of Eugene and Springfield (City Limits); to users currently being served or to whom contractual service commitments have been made who are outside the City Limits; and to any other areas outside the City Limits to which service may be extended in conformity with the Growth Management provisions in Chapter II of the Metro Plan and the Public Facilities and Services Element provisions in Chapter III of the Metro Plan, as amended. f. The Governing Bodies will make commitments necessary to assist the Commission in obtaining favorable interest rates and other terms for Bonds approved by the Governing Bodies under ORS 190.080(1 ). 9. Commission's Liabilities: The Governing Bodies shall be obligated to impose, collect and remit to the Commission sewer user charges and system development charges and to comply with the obligations specifically imposed on the Governing Bodies by this Agreement. Except as provided in the preceding sentence, the Governing Bodies shall not be liable for the debts, liabilities or obligations of the Commission. 10. Grants and Bonds: The Commission shall apply for grants and issue Bonds to achieve the objectives of this Agreement and to carry out an adequate program of sewerage within the Urban Growth Boundary. 11. Contracts: The Commission may enter into contracts for technical assistance and for construction of facilities to achieve the objectives of this Agreement and to provide necessary sewerage in the area. 12. Hearinqs: The Commission may conduct hearings on complaints from any rate payer who is aggrieved by rules of the Commission, by sewerage rules, regulations, policies, or practices of the Governing Bodies, or by any aspect of the sewerage operations of the Governing Bodies. "Rate payer" means any person or entity responsible for the payment of any charge or fee imposed on behalf of the Commission. The Commission shall provide in its bylaws for advance notice and for conduct of the hearings. After the hearing, the Commission shall submit to the Governing Bodies and to the complainant its findings and recommendations regarding the complaint. 13. Annual Bud,qet and Capital Improvement Proqram: The Commission shall prepare an annual and any necessary supplemental budgets and CIP in accordance with its bylaws. The Commission may make expenditures or incur obligations only within limits set by the budget and CIP. Except for expenditures that the Commission reasonably V: Environ\MWMC\lGA~Agrement. doc 7 ,2005 (doc. 98535) NOW DOCUMENT 102151 determines are necessary to meet Bond covenants and achieve and maintain an unenhanced credit rating of A for the Commission's Bonds from at least one nationally recognized rating agency, the Commission shall not make any expenditures until the Commission's budget and CIP have been ratified by the Governing Bodies. The Commission shall deliver its recommended budget and CIP, together with its estimate of the rates and amounts that are necessary to fund the recommended budget and CIP, to the Governing Bodies by May 1 of each year. If one of the Governing Bodies objects to the recommended budget, CIP or the rates necessary to fund them, the Governing Body shall make every reasonable attempt to use the reconsideration and mediation process set forth in Section 16 in sufficient time to assure that the Commission has an approved budget by July 1. 14. Recommendations: Upon recommendation of the Commission, the Governing Bodies shall: a. Establish sewerage policies. b. Provide the personnel and services necessary for the operation and maintenance of the regional sewerage system at the expense of the Commission. c. Adopt a system of sewer user charges and system development charges as required by Section 8.c of this Agreement. d. Levy and collect the charges. e. Apportion funds that the Governing Body receives for seweragebetween the Governing Body and the Commission in direct proportion to the total charges that are imposed by the Governing Body for sewerage on behalf of the Commission and the Governing Body. 15. Modification and Termination: This Agreement shall continue until modified by unanimous consent of the Governing Bodies. A Governing Body may terminate its participation in the Agreement by providing one year's advance notice of termination to the other Governing Bodies. If the parties are unable to agree on the division of assets and liabilities between the parties, the dispute shall be referred to a board of arbitration for its decision concerning the division. The board shall have five members: a judge of the Circuit Court of Lane County to be selected by the chief judge of the Court, a representative of the State Department of Environmental Quality to be selected by the director of the Department, and one representative who has not served on the Commission from each Governing Body to be selected by the respective Governing Bodies. Notwithstanding the preceding language in this Section, a Governing Body that is obligated to collect revenue on behalf of the Commission may not terminate its participation in this Agreement unless all Bonds have been paid or defeased. 16. Reconsideration and Mediation: If one or more of the Governing Bodies objects to any action proposed or taken by the Commission, including any action taken to update or implement the Financial Plan or the Facilities Plan, the Governing Body objecting to the action shall request that the Commission reconsider such action by delivering a written request therefor to the Commission. The Commission shall put such action on its V:Environ\MWMC\lGA~Agrement. doc 8 ,2005 (doc. 98535) NOW DOCUMENT 102151 agenda for reconsideration at any Commission meeting within 45 days after receipt of the request for reconsideration. Except as provided below, if a Governing Body objects to the Commission's action after reconsideration by the Commission, the Governing Body may refer the matter to the General Membership of the Metropolitan Policy Committee (MPC) for mediation in accordance with any procedure adopted by MPC. If a resolution of the matter has not been reached previously, MPC shall, within 45 days after referral of the matter to MPC, make a written recommendation for resolution of the matter to the Governing Bodies for their consideration. MPC's recommendation shall be advisory only and shall not be binding on the Governing Bodies. Except as provided below, the Commission's action shall take effect only after all Governing Bodies are in agreement. If the action objected to is the Commission's determination of rates and amounts pursuant to Section 3.e.1, the recourse of an objecting Governing Body is limited to submitting the matter to the Commission for reconsideration within 30 days after the Commission's recommendation is made. The Commission's decision on reconsideration of those rates and amounts shall be final. IN WITNESS WHEREOF, the undersigned, by authority of their respective Governing Bodies, have executed the within Agreement. DATE: CITY OF SPRINGFIELD, a Municipal Corporation of the State of Oregon By: Title: City Mana,qer DATE: CITY OF EUGENE, a Municipal Corporation of the State of Oregon By: Title: City Manaqer DATE: LANE COUNTY, a Political Subdivision Of the State of Oregon By: Title: County Administration V:Environ\MWMC\lGA~Agrement. doc 9 ,2005 (doc. 98535) NOW DOCUMENT 102151 ATTACHMENT C ORDINANCE NO. AN ORDINANCE CREATING THE METROPOLITAN WASTEWATER MANAGEMENT COMMISSION AS AN INTERGOVERNMENTAL ENTITY; AND PROVIDING FOR AN IMMEDIATE EFFECTIVE DATE. The City Council of the City of Eugene finds that: A. Pursuant to ORS Chapter 190, the Cities of Springfield and Eugene and Lane County (Governing Bodies) entered into an intergovernmental agreement (Agreement) on February 9, 1977 establishing the Metropolitan Wastewater Management Commission (Commission) to construct, operate, and maintain Regional Sewerage Facilities to service the Eugene-Springfield Metropolitan area (Metro Area). B. The original Regional Sewerage Facilities were constructed in the early 1980s with a planned design capacity to serve the Metro Area through 2004. C. The Commission and the Governing Bodies have approved the 2004 MWMC Facilities Plan and 20-Year Project List, which includes capital projects with an estimated cost of $144,000,000 (in 2004 dollars) necessary to meet the sewage treatment needs of the Metro Area through the year 2025. D. ORS 190.085(1) provides that intergovernmental entities may be created by intergovernmental agreements. E. The cities of Springfield and Eugene, Oregon and Lane County, Oregon desire to create the Metropolitan Wastewater Management Commission as an intergovernmental entity pursuant to the provisions of ORS 190.010, 190.080 and 190.085 ("Intergovernmental Entity"). F. The cities of Springfield and Eugene and Lane County, Oregon propose to create the Intergovernmental Entity by executing a restated and amended intergovernmental agreement in substantially the form that is attached to this Ordinance as Exhibit A ("Intergovernmental Agreement"). NOW, THEREFORE, THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS: Section 1. Declaration of Intent. The City Council hereby declares its intent to create the Metropolitan Wastewater Management Commission as an Intergovernmental Entity by executing the Intergovernmental Agreement in substantially the form attached as Exhibit A. Section 2. Effective Date of Intergovernmental Agreement. The effective date of the Intergovernmental Agreement shall be the latest of the effective dates of the ordinances enacted by the governing bodies of the three parties to the Intergovernmental Agreement, approving and Ordinance- 1 ratifying the creation of the Metropolitan Wastewater Management Commission as an Intergovernmental Entity. Section 3. Public Purposes of the Metropolitan Wastewater Management Commission. The Metropolitan Wastewater Management Commission is created as an Intergovernmental Entity for the public purposes of constructing, operating, maintaining and financing regional sewerage facilities as provided in the Intergovernmental Agreement. Section 4. Powers~ Duties and Functions. The Metropolitan Wastewater Management Commission, as an Intergovernmental Entity, shall have the powers, duties and functions specified for it in the Intergovernmental Agreement, as that Intergovernmental Agreement may be amended from time to time in accordance with its terms. Section 5. Approval~ Ratification and Filing. The City Council hereby approves and ratifies the creation of the Metropolitan Wastewater Management Commission as an Intergovernmental Entity and the terms of the Intergovernmental Agreement. The City Manager is hereby authorized to execute the Intergovernmental Agreement on behalf of the City of Eugene. A copy of this Ordinance and the corresponding ordinances enacted by the governing bodies of the other two parties to the Intergovernmental Agreement, together with the statement described in ORS 190.085(2), shall be filed with the Secretary of State as required by ORS 190.085(2). Section 6. Effective Date. The Metropolitan Wastewater Management Commission must be created as an Intergovernmental Entity before the Metropolitan Wastewater Management Commission may borrow money to finance regional sewerage facilities. Because delays in that borrowing may increase project costs and interest rates, this Ordinance shall become effective immediately upon its passage by the City Council and approval by the Mayor, retention by the Mayor for more than ten days, or readoption over a Mayoral veto by two-thirds of all members of the City Council. Passed by the City Council this Approved by the Mayor this __day of ,2005 __day of .,2005 City Recorder Mayor Ordinance - 2 ATTACHMENT D RESOLUTION NO. A RESOLUTION APPROVING THE ISSUANCE OF REVENUE BONDS BY THE METROPOLITAN WASTEWATER MANAGEMENT COMMISSION; AND PROVIDING AN EFFECTIVE DATE. The City Council of the City of Eugene finds that: A. Pursuant to ORS Chapter 190, the Cities of Springfield and Eugene and Lane County (Governing Bodies) entered into an intergovernmental agreement (Agreement) on February 9, 1977 establishing the Metropolitan Wastewater Management Commission (Commission) to construct, operate, and maintain Regional Sewerage Facilities to service the Eugene-Springfield Metropolitan area (Metro Area). B. The original Regional Sewerage Facilities were constructed in the early 1980s with a planned design capacity to serve the Metro Area through 2004. C. The Commission and the Governing Bodies have approved the 2004 MWMC Facilities Plan and 20-Year Project List, which includes capital projects with an estimated cost of $144,000,000 (in 2004 dollars) necessary to meet the sewage treatment needs of the Metro Area through the year 2025. D. The Commission and its financial advisor conducted an evaluation of funding options, and concluded that revenue bonds are the best available financing tool and that approximately $100,000,000 in revenue bonds should be issued between 2005 and 2010 to fund the capital projects on the 20-Year Project List. E. Pursuant to Ordinance No. adopted 2005, the City Council adopted a restated and amended intergovernmental agreement that, in part, created the Metropolitan Wastewater Management Commission as an intergovernmental entity pursuant to the provisions of ORS 190.010 and 190.085. F. ORS 190.080(1) provides that intergovernmental entities may issue revenue bonds if the parties to the agreement approve the issuance of the revenue bonds after a public hearing. G. The cities of Springfield and Eugene, Oregon and Lane County, Oregon desire to authorize the Metropolitan Wastewater Management Commission to issue revenue bonds under ORS 288.805 to 288.945. Resolution- 1 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE, a Municipal Corporation of the St ate of Oregon, as follows: Section 1. Approval of Bonds. A public hearing was held before the City Council on May 9, 2005 regarding the issuance by the Metropolitan Wastewater Management Commission of up to $100,000,000 of revenue bonds to finance regional sewerage facilities pursuant to ORS 190.080(1)(a) and ORS 288.805 to 288.945. By adoption of this Resolution, the City Council hereby approves of the issuance of up to $100,000,000 of revenue bonds by the Metropolitan Wastewater Management Commission pursuant to ORS 190.080(1)(a) and ORS 288.805 to 288.945 to finance regional sewerage facilities. Section 2. Effective Date. This Resolution shall become effective immediately upon its adoption, or on the date that the Intergovernmental Agreement referred to in Finding E above takes effect, whichever is later. The foregoing Resolution adopted the __ day of ,2005. City Recorder Resolution - 2