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