06/02/1987 Meeting - Laserfiche WebLink

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e users as well as revenue from residential users. Ms. Andersen said the proposal includes a percentage increase in commercial rates approximately equal to the percentage increase in residential rates. For example, commercial rates would increase from $15.29 to $17.30, from $30.08 to $33.92, and from $111.84 to $125.76. The mid-year flow will continue to be used to calculate rates. The projected revenue does not anticipate conservation of flows. A 2.5 percent growth is anticipated in the projected revenue for the second year. Replying to questions from Mr. Miller, Ms. Andersen said the Public Works Department has not received comments on the proposed rate increase. Mr. Jessie said comments at the MWMC public hearing on proposed increases in the regional sewer rates indicated that people want stable rates and minimum increases. Answering questions from Mayor Obie, Mr. Gleason said personnel costs are $2.1 million (about 65 percent) of the sewer operating expenses. Labor contracts require a 3 percent increase. Ms. Andersen said the rest of the operating expenses are sewer pipes, grates, and other equipment. The capital projects are all contracted. Central service allocations are determined by a formula requi red by the Federal government. Mr. Gl eason di scussed the servi ce allocations. Replying to questions from Ms. Ehrman, Mr. Gle~son said the City pays Eugene Water & Electric Board (EWEB) for including sewer charges on water bills. e ~esponding to questions from Mayor Obie, Mr. Gleason said the Environmental Protection Agency (EPA) and State standards for waste water and storm water affect 1 oca 1 sewer rates. He di scussed the standards. Ms. Andersen said additional flows would necessitate additional cleaning and maintenance of the sewers. Mr. Gleason said the capacity of the wastewater treatment plant is huge because the plant was built for the future. It is not operating at capacity. The relative treatment costs will decrease as capacity increases. However, the rate users pay probably will not decrease. Answering a question from Mr. Holmer, Mr. Wong said the central services cost allocation for the sewer fund is different from the cost allocation for the urban renewal agency because the bases for distribution are different. Mr. Wong reviewed the capital projects included in the FY88 budget and the projects in the FY89 CIP. He said they would be reduced if the second, third, and fourth rate options are approved by the council. Mr. Wong said some administrative restraints will be imposed on the sewer fund to assure that fixed costs can be met regardless of which rate is approved by the council. He said some capital projects probably will be deferred. He emphasized that a substantial sewer infrastructure must be supported. Answering questions from Ms. Wooten, Mr. Jessie said the proposal includes an increase in the storm sewer charge from $2.41 to $2.74 and an increase in the sanitary sewer charge from $4.24 for 6,000 gallons to $3.60 for single-family residences. e MINUTES--Eugene City Council Dinner/Work Session June 2, 1987 Page 4