09/22/1980 Meeting - Laserfiche WebLink

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. , Mr. Obie asked if the $1.75 charge includes a capital reserve charge. . Mr. Cook responded that it does not. Mr. Obie asked if the $1.95 charge includes a capital reserve charge. Mr. Cook responded that it does not. Mr. Obie did not feel the capital reserve charge was hidden in any other charges. Mr. Obie asked why the users' charge would be increased now when the pl anti s not fi ni shed. Mr. Cook responded that: 1) it is a change of policy in how the City calculates staff support costs; 2) that this will provide additional MWMC staff at a cost of $339,000; and 3) that there is a shift from the general fund into sewer utility fund. Mr. Obie commented that since the $2.50 monthly charge was not enough, this is the reason for the new charges. Ms. Miller asked if the $1.30 figure in capital reserve could change over the next few years from capital reserve to maintenance. Mr. Cook responded that it could. Ms. Miller asked what would happen if the $5 were insufficient for operation and maintenance expenses for any particular year and if it would be possible to use the capital reserve fund. Ms. Racette stated that the user charge is to cover operation and maintenance expenses and if that is not enough, the funds to cover these expenses would come out of the capital reserve fund. They would have to check with the State budget and audit laws to make certain that is legal. Ms. Smith noted that would be a policy decision the commission would have to make. If that were the case, they would use the funds for operation and maintenance. She did not believe that the $5 charge would be increased. Mr. Henry stated that as the plant is built it will require more people to operate it. The staff will be e about double that of the combined Eugene and Springfield plants currently. Mr. Lieuallen asked why more personnel are needed. Ms. Racette responded that this is a larger, more sophisticated plant requiring more highly skilled personnel. Mayor Keller noted that this plant will operate 24 hours per day which will have some bearing on the matter. Mr. Henry stated that the quality of output requires more personne 1 . Ms. Smith stated that the commission has not yet deter- mined who would operate the plants. The hope is that it would be contracted with existing staffs. Mr. Lieuallen asked if the $1.30 charte would accumulate the $2.5 million. Ms. Racette responded that the 1.30 is not a firm figure; it will be whatever is not needed for operation and maintenance. Less money will be available as mainte- nance costs increase. The 1981-82 amounts would total about $2.5 million. Mr. Lieuallen asked if either of the other two charges would be going into the capital reserve fund. Ms. Racette responded that the regional charge would not. Mr. Cook noted that the local charge will be to maintain the local system. Mr. Lieuallen asked if the hope is to create a $2.5 million reserve. Mr. Cook responded that that is correct. Mayor Keller noted that there is a question regarding whether River Road residents will pay their fair share. Mr. Cook stated that with the connection charge, they will attempt to offset additional costs to current residents. e 9/22/80--11