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1 <br /> Public Works <br /> Engineering <br /> Proposed Changes to Systems Development C~iarges (SDCs) <br /> The City of Eugene is proposing three changes to the current public investment in the extra capacity at the treatment plant. <br /> SDC rates and methodology. The first proposed change is The proposed annual adjustment for the MWMC <br /> the annual inflation increase, which adjusts the SDC rates Equalization Fees is shown on the table of proposed fees on <br /> based on the National Construction Cost Index, published the reverse side of this fact sheet. <br /> by the Engineering News Record (ENR). The second change <br /> adjusts the Metropolitan Wastewater Management City of Eugene's SDC Methodology: <br /> Commission (MWMC) Equalization Fees and credits through A) Large Volume User Classification: Anew unit of <br /> an annual cost update. The third change modifies the SDC measurement will be created for calculating the impact of <br /> fee computation method for large industrial users to more large volume users on the wastewater system. The <br /> accurately reflect the impact created by these types of classification of "Large Volume User" will be used for <br /> development, and allow for the adjustment of SDC charges calculation of both the local and regional wastewater SDC <br /> and credits after development occurs. The new rates ~aze rate for commercial and industrial development discharging <br /> scheduled to become effective July 1,1996. more than 100,000 gallons per day. Because large volume <br /> users discharge at an even level, they have a different impact <br /> WhatAre Systems DevelopmentCharge (SDC) Fees? on collection systems and the treatment plant than flows <br /> that vary during the day. The proposed methodology <br /> SDC fees have been collected by the Gty of Eugene since 1978, establishes a classification that treats these users more <br /> and similaz types of fees have been charged by the City as far . equitably and provides a method of equating the impact of <br /> back as 1948. In compliance with Oregon Revised Statutes, large volume users to dwelling units. <br /> the City Council adopted Ordinance #19773, effective July 1, <br /> 1991, which revised the City's SDC methodologies and fees. B) Modification of SDC Charges: The ability to review the <br /> SDC fees aze collected when new development or expansion impact of a development on public systems once the facility~,~ <br /> occurs in the city. The fees are used to fund a portion of the ~ ~Y operational is also proposed. This would enable the <br /> construction of infrastructure to support growth, such as City to adjust SDC charges or credits, based on actual impact <br /> wastewater and stormwater drainage systems, streets and The ability to revise prior SDC charges would be used <br /> bike paths, and parks facilities. SDC funds aze used to help primarily when a development's original chazge was based <br /> the City provide for the increased capacity needed to serve on estimated system usage, on an alternative measurement <br /> new development, and recoup a portion of the community's of impact than the standard methodology, or when a credit <br /> investment in the infrastructure that is already in place. was based on program or site modifications not operational <br /> at the time the credit was granted. SDCs for most <br /> Eugene's SDC methodology provides for periodic developments would not be subject to later modification. <br /> modifications to the methodology or rate structure to be <br /> accomplished through the administrative rate-making What Future Changes Are Forecast? <br /> process as defined in Eugene Codes 2.020 and 7.710. The <br /> methodology also provides for adjustment of the fees to Regional variations in construction costs are not accurately <br /> account for inflation. The changes proposed to become reflected by the ENR's national statistics. The Eugene/ <br /> effective July 1,1996, are described below Springfield area has been experiencing higher levels of <br /> development activity, and it appears that a more <br /> What Changes Are Being Proposed? comprehensive approach to looking at the local costs is <br /> warranted. Because of the potential impact of permit fees <br /> Annual Inflation Adjustment: For, FY 97 Quly 1,1996-June 30, on customers, the City will be working with stakeholders in <br /> 1997) an inflationary rate adjustment of 2.15°!o will be applied the near future. to better estimate the true cost of providing <br /> to SDCs for stonnwater, wastewater systems, parks, and for infrastructure to serve new development. In the interim, <br /> the transportation system. No change will be made to the local the standazd inflation adjustment is being implemented, and <br /> wastewater SDC in the RiverRoad/Santa Gana/Hwy 99 areas. other immediate needs are being addressed. <br /> Metropolitan wastewater Management commission Current and proposed #ees can be found on the <br /> Facility Equalization Charge: The MWMC Equalization Fee, rate table on the back of this fact sheet. <br /> the regional component of the City of Eugene's wastewater <br /> SDC, represents the reimbursable cost of each unit of capacity <br /> at the regional Wastewater Treatment Plant. Each new t <br /> connection to the regional system uses a portion of the extra i ~ ~ <br /> capacity that was built into the treatment plant. The regional <br /> <br /> Equalization Fee is the method used to recover the existing Call the Public Works Engineering SDC Coordinator at687-5291. <br /> <br />