05/28/1991 Meeting (2) - Laserfiche WebLink

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e e e Mr. Rutan moved, seconded by Mr. Boles, to approve the use of $2,084,000 Community Development Block Grants funds in 1991-92. Roll call vote; the motion carried unanimously, 7:0. VII. FY92 METROPOLITAN WASTEWATER COMMISSION (MWMC) BUDGET RATIFICATION Acting City Manager Linda Norris introduced the topic. Christine Andersen, Public Works Director, gave the staff presentation. She said that the three governing bodies making up the MWMC (Eugene, Springfield, and Lane County) need to ratify the proposed MWMC budget prior to the start of the FY92. She said that Councilor Rutan has participated in the rate-setting process this year as Eugene's representative councilor on MWMC. Ms. Andersen said that the City has contracted with the Lane Council of Governments (L-COG) to con- duct a rate stability analysis. The results have been included in the pack- et, along with regional rate information. Mr. Robinette asked for additional information on equipment replacement re- serve. In response, Ms. Andersen said that the EPA requires that equipment replacement funds be provided for the facility for the next 20 years. Beyond that time, any facility maintenance would be considered a capital project not covered under the rate structure. If the plant lasts beyond 20 years, MWMC presumes that those users paying for debt retirement on the existing facility would be gone and a new bond measure would be presented to the voters. Responding to a question from Mr. Boles, Ms. Andersen said that there is currently an equipment replacement reserve component in the rate calcula- tions; however, she noted that MWMC will be considering a comprehensive equipment replacement funding strategy in the coming months. Mr. Boles observed that the $5 million in surplus revenues which were re- turned to users through rate subsidies ultimately resulted in steep rate increases. Should a similar circumstance occur in the future, he wondered whether the committee might consider making the rate transition more gradual. Mr. Rutan responded that it was a one-time policy decision to handle the surplus money in that manner and said that it is unlikely that such a situa- tion yielding surplus would occur in the future. Ms. Andersen explained further that when the rate structure was first established, policy makers took into account emergency start-up costs as well as operation costs. Sur- plus revenues resulted because these emergency funds were not needed. Responding to a question from Mr. MacDonald, Ms. Andersen said that the final rate structure will be adopted by the City Manager by Administrative Order and would not come before the council for approval. Mr. Rutan moved, seconded by Mr. Boles, to approve the FY92 Metropolitan Wastewater Commission Budget. In response to a question from Ms. Bascom, Ms. Andersen explained that the City is having difficulties with the drainage of the seasonal industrial MINUTES--Eugene City Council May 28, 1991 Page 8