Title
Oregon City Water Distribution System Water Rate and SDC Study - Continued
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RECOMMENDED ACTION (Motion):
A follow-up presentation on the City’s financial requirements necessary to fund the recommended citywide water system Capital Improvement Plan (CIP) and other water system program needs. No recommended action required at this Work Session.
BACKGROUND:
On August 7, 2019, the City Commission was presented with a Work Session update on our citywide water system Capital Improvement Plan (CIP) as well as other water system program needs. This CIP and program needs update is scheduled to go before the Planning Commission as the commencement of a legislative adoption of a new Water CIP (Amendment to the 2012 Water System Master Plan and Comprehensive Plan ancillary document) early next year. Upon Planning Commission approval, the subject will return to the City Commission as a Public Hearing.
In 2012, the City adopted Ordinance No. 12-1001, an update to the Oregon City Water Distribution System Master Plan (WMP), which included the City's Water Capital Facilities Improvements Plan.
In 2017, the City retained Murraysmith to re-evaluate the 2012 recommended capital improvements to address efficiency, system capacity, condition of the water distribution system, and to provide an updated CIP project list that addresses the existing operational and future capacity needs. As this work has continued, staff and Murraysmith have scrutinized many of the 2012 assumptions, tested and monitored the system hydraulics, challenged emergency supply planning assumptions, and finalized the Clackamas River Water/South Fork Water Board/Oregon City Joint Engineering Study.
With mounting certainty of the revised CIP, the City contracted with FCS Group in March 2019 to complete the Water Rate and SDC Update associated with the new financial needs. The goal of the study continues to ensure that the City’s water rates and SDCs as proposed reflect the capital improvement plan and also to reflect the current operating budget. This follow-up presentation will bring forth additional rate scenarios requested by the City Commission and cover the System Development Charge element of the study.
The presentation will also provide an update of the anticipated schedule of events leading up to adoption of the Water Rate and SDC Adoption and present a scenario of events should the City Commission propose a City Charter Amendment and ballot measure.
This presentation topic is in alignment with City Commission Goal 5 - "Deferred Water Infrastructure" and is a crucial step forward in the City's efforts to begin the community outreach and communications regarding long-term water rates and the need for water infrastructure replacement.