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e includes customers in the cities of Eugene and Springfield, with a few excep- tions outside city limits. He also said there is a possibility that customers in the River Road/Santa Clara area could be included. Mr. Guenzler added that apartment owners are given the option of flow-based or flat rates, and approx- imately 80 percent of them have chosen flow-based. Mr. Guenzler presented a slide showing the breakdown of costs in terms of suspended solids, biological oxygen demand, and flow, and multiplying those to come up with the monthly charge. He added that administration was usually the problematic area. He also showed a slide of current and proposed regional rates. He said the proposal would continue the current average-flow flat rates for single-family dwellings until July 1, 1986, when flow-dependent rates would be enacted. He said the current charge of $6.30 would be reduced to an average of $4.50, based on an average flow of 5,800 gallons. Mr. Guenzler said the proposed charge was based on new information from the Wastewater Plant, which had lowered costs for biological oxygen demand and increased costs for suspended solids. Medium-strength customers, like laundries, grocers, and motels, would be charged $1.61/month plus $.71/1,000 gallons, which is about the same as, or lower than, present costs. - High-strength customers, such as restaurants, bakeries, and food processors, would be charged $1.14/1,000 gallons. Mr. Guenzler said high-strength cus- tomersl costs probably would be equal to, or possibly greater than, present costs. Septage rates would go from $30/1,000 gallons to $39/1,000 gallons. The eight large industrial customers would continue to be charged based on specific strengths as measured by a laboratory and on specific flows. Mr. Guenzler said cost differences for that group varied among individual customers. Mr. Guenzler showed a pie chart of revenues and expenditures. He said 73 per- cent of MWMC revenues would come from user charges, while about 14 percent would come from the $3.9 million reserves. On the expense side, 61 percent goes for treatment plant operation and maintenance. Ms. Ehrman asked about billing costs. Mr. Guenz1er said they are based on a figure of $.28 per bill. Mr. Holmer asked why MWMC costs were so high with construction com- pleted. Mr. Guenz1er said much of that cost was related to a grant reim- bursement. Mr. Guenzler said the regional rate proposal meant lower costs for most customers except for about 290 high-strength customers, whose costs could be higher. He introduced Mr. Deis, who presented an indirect cost allocation plan. Mr. Deis said the issue of indirect costs had been a topic of discussion by the MWMC board and in public testimony. He outlined how the indirect costs were identified and why they were recovered. He said indirect costs are .e MINUTES--City Council Dinner Session May 13, 1985 Page 2