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e he was unsure of the figure for EWEB; he believed the figure in the audit for overall gain to MWMC was on the order of $35,000 per year. Ms. Andersen said the staff was working to shorten the time frame. Mr. Jones discussed the charges levied by the cities of Springfield and Eugene. He said these charges are based on services actually used by MWMC and are very reasonable. The audit recommended that MWMC file the necessary documents to recover the indirect cost of grant funds expended subsequent to 1983. This figure could be from $150,000 to $200,000. Mr. Holmer clarified that this was recovery from the Federal government. Mr. Jones said the auditors recommended that MWMC simplify the budget prepa- ration process. Mr. Jones discussed the utility's subsidized rates, noting the subsidy fund was created in prior periods when revenues exceeded costs. The fund will be expended by FY90. This subsidy on the regional side equals about 46 percent; on the local side it is about 20 percent of the total. The auditors found that MWMC's unsubsidized rates are within the reasonable range of other sewer utilities, and recommended that rate payers be prepared for a IIrate shockll when the fund is expended, and to raise rates to the unsubsidized level. Mr. Jones said that the auditors found, in general, that the operation of MWMC is successful and,MWMC has met its goals. e Ms. Andersen said staff will return the following month with the report on the local fund status and forecast what the local rate structure will look like in the following year. Mr. Rutan said two different terms have been used: performance evaluation and audit, which are two different things. Ms. Andersen said that the term .used was "performance audit.1I The audit is not a financial audit. Mr. Rutan asked if the audit was put out for competitive bid. Ms. Andersen replied yes, and said approximately six companies responded. Responding to a question from Mayor Obie, Ms. Andersen said that Springfield is responsible for the administrative side of the operation and they are looking at personnel efficiencies. The City of Eugene is looking at the staffing plan on the operational side and staff has projected reductions. The meeting was adjourned at 1:36. Re s p:c: f~.l, 1 y.?-u~~ 11 t~ -/' '.' '. ... .......-.. ' "'A?".,Jc , '~";"'=--.;?/~/' (~,., .! Micheal Gleason City Manager (Recorded by Leslie Scales/Kimberly Young) mncc 051888 - MINUTES--Eugene City Council May 18, 1988 Page 10