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09/22/1980 Meeting
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09/22/1980 Meeting
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City Council Minutes
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9/22/1980
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<br />D. Char es <br /> e memo a ac e 0 e <br />. agenda outlines the charges that are proposed. Council has received <br /> other material 9 including the rationale and a copy of the ordinance. <br /> This was discussed at the council meeting last Wednesday. When the <br /> MWMC budget was adopted by the council, this material was included. <br /> All information received must be reconciled for agreement. The City <br /> budget included money for plant operation and the distribution system <br /> maintenance. The proposal is for a regional charge of $1.75 to cover <br /> operation of the plant and the major collection system of mains over <br /> 24 inches, a $1.30 charge for raising capital amounts which will later <br /> pay for plant operation if necessary, and Eugene's local charge which <br /> is being proposed at $1.95. The former charge was $2.50--Eugene's <br /> local charge--which would be reduced to $1.95, but the other two <br /> charges are new; $2.50 currently does not cover total costs of the <br /> sewer facilities for Eugene's public. He introduced Doug Cook9 Public <br /> Works, to provide background information and stated that the regional <br /> charge would be explained by Susan Racette, Metropolitan Wastewater <br /> Management Commission. <br /> Mr. Cook stated that this ordinance would change the "water users' <br /> ch arge"- to a "sewer users' ch arge. " The collection fee is eliminated, <br /> which had produced little revenue. The ordinance also would adopt the <br /> MWMC rates. Operation and maintenance charges for the future are <br /> estimated at this time. Any of the charges not used for operation and <br /> maintenance would go into a capital reserve fund. All costs are not <br /> presently being covered. In evaluation of the rates last January, <br />e staff was not aware that the entire costs for staff support for MWMC <br /> needed to come out of the operations and maintenance budget of the <br /> Maintenance Division of Public Works. These costs had been previously <br /> paid out of the Engineering Division. They were about $1.20 short of <br /> covering the actual charges. These charges that are proposed would <br /> cover indirect costs for the Maintenance Division. The new budgeting <br /> system has allowed better accounting for how people spend their time <br /> on the job. The general fund had been subsidizing the sewer fund. <br /> The proposed rates are very close to those in other cities in the <br /> st ate. He showed charts to this effect. There was about a 250% <br /> average increase in charges. <br /> Mr. Lieuallen asked if the proposed fees are a flat rate. Mr. Cook <br /> responded that they are averages based on the use of 6,000 gallons <br /> per dwelling. They developed a unit charge rate which is multiplied <br /> by the average for that group. The commission would like to get to a <br /> point where they can charge for actual water consumption. Mr. Lieuallen <br /> asked how this would be measured. Mr. Cook responded that this would <br /> require re-programming EWEB's computer. Mr. Henry asked if the amount <br /> of water used would be the basis for determining charges at some point <br /> in the future. Mr. Cook responded that that would be the best. <br />e <br /> 9/22/80--7 <br />
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