05/18/1988 Meeting - Laserfiche WebLink

Home Browse Search

e been any language added to the plan to reflect the importance of housing. Mr. Rutan said the committee chose not to add such language. IV. STATUS OF SEWER UTILITY Ms. Andersen said this was one of a series of work sessions the Public Works Department will be scheduling with the council over the next several months. She noted that the council had adopted a two-year rate at its last rate-set- ting process that will be effective through June 1989. Ms. Andersen said staff will be coming back to the council at future meetings with the status of the local Sewer Fund, the financial projections for the fund over the next six years, the Storm Drainage Study, and an Amazon Channel Floodway Study. e Mr. Jones presented the results of the performance audit conducted on the Metropolitan Wastewater Management Commission's sewer functions by Coopers and Lybrand. He noted that the executive summary of the report is in the council packet, and full copies are available upon request. The audit fo- cused on the appropriateness of administrative and operational costs; opera- tional systems and procedures; administrative systems and procedures, bill- ings, collections, the payment process between the cities, and the transfer of that money to MWMC; appropriateness of indirect rates charged by the cities for services performed for MWMC; the budgetary process; and the re- gional sewer user rate schedule. Mr. Jones said that Coopers and Lybrand had compared MWMC to seven plants in the west and found that costs, on average, were lower than that of comparable jurisdictions. Ms. Wooten asked how the plants were chosen. Mr. Jones said the plants were not specifically identi- fied and were not identical to Eugene's, but were selected on their basis of similarity of problems, treatment process, complexity, and sophistication. Mr. Gleason added that there are not many plants in the Northwest comparable to Eugene's. The plants were chosen for review by Coopers and Lybrand. Mr. Jones said the audit revealed good operational procedures and policies in place on the Eugene side of the program. The plant has a good maintenance program, storage and purchasing system, and adequate technical employee training. A five-year CIP is in place. The plant is currently conducting a staffing evaluation. In Springfield, MWMC staff is implementing a transition plan keyed to construction completion. Mr. Jones discussed the auditors' recommendations, including enhancement of the maintenance management program, development of work standards for mainte- nance repair tasks, development of a capital budgeting process consistent with other City departments, and development of a long-term management plan. Mr. Jones said that the auditors found that the cost of billing through the Springfield Utility Board and ~ugene Water & Electric Board is very reason- able and the best choice compared to other options for MWMC. The audit recommends that time of remittance to MWMC be shortened. This is being reviewed. Responding to a question from Ms. Ehrman, Mr. Jones said the remittance time is about 56 days from EWEB and 49 days from SUB. Ms. Wooten asked how much EWEB makes on the interest for the City. Mr. Jones said that e MINUTES--Eugene City Council May 18, 1988 Page 9