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MEMORANDUM <br /> To: Eugene and Lane County Joint Elected Officials <br /> From: Coburg City Administrator Don Schuessler <br /> Date: 25 October 2005 <br /> Re: Consideration of Coburg connection to MWMC <br /> Coburg is asking to connect to MWMC if it is fiscally possible. To start the discussion, Coburg <br /> has drafted a "strawman" intergovernmental agreement. This IGA proposes that Coburg pay all <br /> the costs associated with connection. This includes the standard MWMC Systems Development <br /> Charge, plus a surcharge of three percent, which represents the maximum percentage of the <br /> planned additional capacity of the system that Coburg would use. In other words, it is the SDC <br /> that a user would pay inside the UGB, plus an additional amount to cover the unplanned capacity <br /> that Coburg might use. In this draft Coburg proposes not to pay the possible $474,000 Eugene <br /> SDC, because there is no cost to Eugene when a city user connects to the regional system. All <br /> costs are covered by the regional SDC. Finally, Coburg proposes to pay a fee of $175,000 to the <br /> jurisdictions and MWMC, to cover expenses of dealing with the unusual aspects of Coburg's <br /> connection ($200 per EDU). These are costs that are usually covered in the SDCs. <br /> This makes the final cost of connecting to MWMC approximately $2 million less than the <br /> alternative of building a separate system discharging into the McKenzie River. These estimated <br /> costs do not include the cost for later users, who would be required to pay separate SDCs to <br /> MWMC. <br /> <br /> ` Preliminary estimate of costs for initial MWMC connection: <br /> Coburg collection system and connection development costs $ 14,365,000 <br /> MWMC SDC (with surcharge) $ 1,748,000 <br /> Extra cost coverage $ 175,000 <br /> Total estimated anticipated cost $ 16,288,000 <br /> Even this will not be easy for the average Coburg resident. Assuming a state grant of $1 million, <br /> which is twice the usual OECDD grant amount, the preliminary proj ections of how these costs <br /> would be paid by Coburg gives a projected monthly bill of approximately $59. <br /> Staff has also prepared an estimate of Coburg costs, based on discussions with state and local <br /> participants in the process. This table is also attached. <br /> _ _ <br /> <br />