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<br />e <br /> <br />Answering a question from Mr. Rutan, Mayor Obie said this meeting provides an <br />opportunity for the councilors to discuss sewer rates and, if they wish, <br />change the direction given the City Manager on June 2, 1987. <br /> <br />Mr. Rutan said the sewer system has gotten more costly unpredictably and the <br />staff explained why. He said a different solution from the proposed increases <br />is needed. <br /> <br />Mr. Holmer agreed with Mr. Rutan. Mr. Holmer displayed a report on wastewater <br />management for the National Council on Public Works Improvement. He said the <br />budget process for wastewater management in Eugene does not provi de <br />confidence. He suggested that the staff be required to operate the system at <br />less than the proposed rate. <br /> <br />Mayor Obie said he does not want businesses to move to other areas because of <br />high sewer rates here. He said additional solutions are needed. He said he <br />does not support the recommended rate. He said the problem is severe, <br />significant, and continuing. <br /> <br />Ms. Wooten suggested the staff rearrange the elements and present new options <br />to the council. She said she does not think any of the present options are <br />appropriate. Mr. Gleason responded that the four options presented to the <br />council are based on the ~osts of operating the sewer system. He discussed <br />the options and said they represent all the information available. <br /> <br />e <br /> <br />Mr. Bennett said he wants to retain the businesses in the community. <br />Responding to his question, Mayor Obie said a six percent increase would <br />provide for inflation, wage increases, and other increases. He said 12 <br />percent is too much. He said the council can indicate that the plant should be <br />- operated at a specific cost. <br /> <br />Ms. Schue emphasized that the cost of operating the Wastewater Treatment Plant <br />is in the regional sewer rate. The council is considering the local rate <br />which involves the maintenance of the sewer system, the largest trunk lines <br />and pump stations, storm sewers, and street sweeping. She said street <br />sweeping could be decreased. <br /> <br />Mr. Miller said the staff recommendation includes shifting some positions from <br />the Genera 1 Fund to the sewer fund because the peop 1 e work on sewers. He <br />suggested that shifting the positions be phased, although that would <br />necessitate reconsidering the City budget, He said the council could take <br />money from other places in the budget and apply it to the sewer fund. He <br />emphasized that a safe sewer system is very important and that it is not wise <br />to approve rates so low that costs will be increased in the future. <br /> <br />Mr. Gleason said the recommended rate ($6.35) is an increase of six percent <br />for each of the next two years and the $6.13 rate (Opion #2) is a 4.5 percent <br />increase each of the next two years. He said wage contracts will probably <br />necessiate a three percent increase and the flow corrections will probably <br />necessiate a one percent increase. Consequently, a four percent increase is <br />needed to maintain the existing level of service. He said the $6.13 rate <br />would provide .5 percent for recovering working capital and cash balances and <br /> <br />- <br /> <br />MINUTES--Eugene City Council <br /> <br />June 8, 1987 <br /> <br />Page 9 <br />