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05/18/1988 Meeting
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05/18/1988 Meeting
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5/18/1988
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<br />e <br /> <br />he was unsure of the figure for EWEB; he believed the figure in the audit for <br />overall gain to MWMC was on the order of $35,000 per year. Ms. Andersen <br />said the staff was working to shorten the time frame. <br /> <br />Mr. Jones discussed the charges levied by the cities of Springfield and <br />Eugene. He said these charges are based on services actually used by MWMC <br />and are very reasonable. The audit recommended that MWMC file the necessary <br />documents to recover the indirect cost of grant funds expended subsequent to <br />1983. This figure could be from $150,000 to $200,000. Mr. Holmer clarified <br />that this was recovery from the Federal government. <br /> <br />Mr. Jones said the auditors recommended that MWMC simplify the budget prepa- <br />ration process. <br /> <br />Mr. Jones discussed the utility's subsidized rates, noting the subsidy fund <br />was created in prior periods when revenues exceeded costs. The fund will be <br />expended by FY90. This subsidy on the regional side equals about 46 percent; <br />on the local side it is about 20 percent of the total. The auditors found <br />that MWMC's unsubsidized rates are within the reasonable range of other sewer <br />utilities, and recommended that rate payers be prepared for a IIrate shockll <br />when the fund is expended, and to raise rates to the unsubsidized level. <br /> <br />Mr. Jones said that the auditors found, in general, that the operation of <br />MWMC is successful and,MWMC has met its goals. <br /> <br />e <br /> <br />Ms. Andersen said staff will return the following month with the report on <br />the local fund status and forecast what the local rate structure will look <br />like in the following year. <br /> <br />Mr. Rutan said two different terms have been used: performance evaluation <br />and audit, which are two different things. Ms. Andersen said that the term <br />.used was "performance audit.1I The audit is not a financial audit. Mr. Rutan <br />asked if the audit was put out for competitive bid. Ms. Andersen replied <br />yes, and said approximately six companies responded. <br /> <br />Responding to a question from Mayor Obie, Ms. Andersen said that Springfield <br />is responsible for the administrative side of the operation and they are <br />looking at personnel efficiencies. The City of Eugene is looking at the <br />staffing plan on the operational side and staff has projected reductions. <br /> <br />The meeting was adjourned at 1:36. <br /> <br />Re s p:c: f~.l, 1 y.?-u~~ 11 t~ <br />-/' '.' '. ... .......-.. ' "'A?".,Jc <br />, '~";"'=--.;?/~/' <br />(~,., .! <br /> <br />Micheal Gleason <br />City Manager <br /> <br /> <br />(Recorded by Leslie Scales/Kimberly Young) <br />mncc 051888 <br /> <br />- <br /> <br />MINUTES--Eugene City Council <br /> <br />May 18, 1988 <br /> <br />Page 10 <br />
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