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DISCUSSION DRAFT -FOR THE PURPOSES OF INITIAL DISCUSSION, NOT <br /> PROPOSED FOR ACCEPTANCE <br /> jurisdictions prior to initiating any such action. As compensation for additional direct <br /> expenses for other parties' staff expenses, and in lieu of reimbursement billing, Coburg shall <br /> pay at the time of connection the following amounts: to MWMC $75,000; to Eugene <br /> $50,000; to Springfield $25,000; to Lane County $25,000. <br /> B. The parties recognize the complexities of calculating the true cost of Coburg's <br /> connection. The initial projected capacity use increment represented by Coburg is <br /> approximately one and one half percent of the wastewater flow currently received at the <br /> MWMC regional wastewater treatment plant Future projections of parallel growth show <br /> that Coburg is likely to maintain nearly the same proportion of capacity use over the next 20 <br /> years. Coburg's increase may reach a total of approximately three percent of the additional <br /> demand for capacity over the next 20 years. Coburg was not included in MWMC capacity <br /> projections, so the addition of Coburg will represent a modification of theoretically available <br /> capacity. However, Coburg's proportional share of total MWMC capacity is near the.margin <br /> or error allowed in capacity calculations. State law requires that all systems development <br /> charges charged to new users of a system be carefully calculated to represent a fair charge for <br /> used capacity. While the charges that Coburg will pay to connect are not a part of the <br /> MWMC system, Coburg will, pursuant to this agreement calculate its systems development <br /> charges to include a portion that passes the MWMC systems development charge to future <br /> connections in Coburg. While MWMC's systems development charges are adequately <br /> documented and supported, any additional charges beyond the existing MWMC systems <br /> development charges must have a rationale with adequate support to allow Coburg to charge <br /> future users in Coburg these costs. <br /> C. At the time Coburg establishes a connection with the MWMC system Coburg shall pay <br /> MWMC an amount equal to the sum of the calculated MWMC SDC for each user from <br /> which Coburg will be collecting wastewater for transmission to the MWMC system, plus an <br /> additional three percent of the MWMC SDC. The existing MWMC SDCs reflect the cost of I <br /> a proportionate purchase of capacity of the regional treatment system, calculated to <br /> accommodate existing and future users anticipated within the projected service area of the <br /> MWMC. The addition of service to Coburg is not within the proj ected service area for the <br /> calculated MWMC system. The maximum proj ected amount of additional capacity that <br /> Coburg is forecast to require from MWMC treatment is three percent. For this reason, the <br /> addition of a three percent surcharge to all new Coburg connections will be necessary to <br /> compensate the existing MWMC system for the addition of Coburg. <br /> i <br /> Section 5. Point of Connection. <br /> A. Coburg will deliver wastewater to a point of connection with the MWMC system. The <br /> point of connection will be a point chosen jointly by Coburg engineers, MWMC staff and <br /> staff of the city whereCoburg will connect.. The point of connection will be chosen as the <br /> point where it is most practical to connect the Coburg system to the MWMC system, taking <br /> into account expected flows, long term integrity of the system downflow from the point of <br /> connection, the ability of the system downflow to accommodate the flow, and the cost of <br /> connection to the MWMC system. <br /> <br /> DRAFT - IGA for Coburg - MWMC DRAFT Page 4 <br /> ~ ~ <br /> _ _ <br /> <br />