CC Minutes - 05/26/98 Work Session

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Wastewater Division Director Peter Ruffler acknowledged the presence of Susie Smith, Director of the Metropolitan Wastewater Management Commission (MWMC). He noted that the FY99 MWMC budget had already been adopted by the commission and under the intergovernmental agreement, each of the three governing bodies must also ratify the budget. Mr. Ruffler said the bottom line was that there is no change proposed in the regional user rate structure. Ms. Smith distributed a copy of her May 21, 1998, memorandum to the commission on rate comparisons using the Association of Metropolitan Sewage Agencies (AMSA) Index. Addressing a question from Ms. Swanson Gribskov, Mr. Ruffler said a citizens advisory committee researched system development charges (SDCs) and made recommendations. Ms. Smith recalled that the committee, representing a broad cross-section of the community, reached consensus in recommending a new methodology for assessing rates and greatly improved the base of knowledge for the area. She noted that the jurisdictions adopted the methodology and there have been no problems with the rate schedule. Ms. Swanson Gribskov ascertained that the SDC revenue was a small but important addition to the capital improvement program. Mr. Meisner noted that the annual cost-of-living adjustments were different between the two communities and wondered why that was so. Mr. Ruffler said the figures reflected the fact that there was no cost-of-living adjustment in Eugene last year but there was in Springfield. Mr. Meisner expressed concern with the indirect overhead costs, particularly Eugene's. He asked for a comparison of billing entries between the Eugene Water & Electric Board (EWEB) and the Springfield Utility board (SUB). Ms. Smith said the City of Springfield did a comparison study of billing costs by utilities providing the service and were able to renegotiated a decreased charge per bill from SUB, which was, however, still above the middle of the range for the state. In response to a question from Mr. Laue, Mr. Ruffler said there was sufficient base capacity to serve both communities through the year 2017. Addressing a question from Ms. Swanson Gribskov, Mr. Ruffler said there is a sinking fund for equipment replacement funded on a regular basis and one for major rehab based on revenue generation. He added that the capital costs will be paid for partly by SDCs supplemented by other funding if needed. In response to a question from Mr. Tollenaar, Mr. Ruffler said biosolid (sludge) management entails air- drying the biosolids and then land-applying them. The current system can only handle about 50 percent of the sludge generated on an annual basis, but a de-watering process project was planned that will add the required capacity. Mayor Torrey commended what he called "the finest example of intergovernmental cooperation" in the area. Mr. Tollenaar moved, seconded by Mr. Lee. to ratify the Metropolitan Wastewater Management Commission budget for FY 1999. Roll call vote. The motion passed unanimously, 6:0. Ms. Smith personally thanked the council for its sympathetic comments at the beginning of the meeting, adding that the City of Springfield organization was very appreciative of the City's and council's support. Minutes--Eugene City Council May 26, 1998 Page 2 6p.m.