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HomeMy WebLinkAbout04/22/1987 Meeting e e e M I NUT E S Eugene City Council Work Session City Hall--McNutt Room April 22, 1987 11:30 a.m. COUNCILORS PRESENT: Debra Ehrman (11:45 a.m.-1:30 p.m.), Freeman Holmer, Emily Schue, Cynthia Wooten, Ruth Bascom, Roger Rutan, Jeff Miller, Rob Bennett. Mayor Obie called the work session to order. I. LOCAL SEWER USER FEE RATE PROPOSAL Public Works Director Christine Andersen said the sewer charge paid by Eugeneans is composed of a regional rate and a local rate. She said the Metropolitan Wastewater Management Commission (MWMC) is reviewing the regional rate and information about it will be given to the council later. She said Eugene, Springfield, and Lane County each adopt a local sewer rate and review the rates every two years. She introduced George Jessie of the Public Works Maintenance Section. Mr. Jessie said the MWMC contracts with Eugene to manage operational activities and with Springfield to manage administrative activities. He discussed the process MWMC is using to review the regional sewer rates. He said regional sewer fees primarily pay for wastewater treatment. Local sewer fees finance storm drainage, sanitary sewer service, and some capital improvements. Mr. Jessie said local utility companies bill and collect sewer fees. In Eugene, the fees are paid to the Eugene Water & Electric Board (EWEB), which transfers the receipts to the City. Mr. Jessie discussed local sewer rates as he showed slides to the councilors. He said the City tries to develop equitable rates and to recover all the costs of providing sanitary sewers and storm drainage. He said storm drainage costs are figured separately from sanitary sewer costs and the proposed fees include both operational and minor capital costs. Mr. Holmer said he would like copies of studies of storm drainage from commercial property and from residential property. Answering his questions, Mr. Jessie said about 70 percent of storm run-off comes from commercial property. Mr. Gleason added that commercial properties are more covered with buildings and pavement than residential properties. MINUTES--Eugene City Council Work Session April 22, 1987 Page 1 e Replying to other questions from Mr. Holmer, Ms. Andersen said the $100,000 included in the City's Capital Improvement Program (CIP) for storm sewer improvements will construct small improvements and replace existing facilities. It will not pay for improvements identified in the Storm Drainage Master Plan that ;s being prepared. Answering questions from Mayor Obie, Mr. Jessie said the proposed rates include a 4.5 percent increase in storm and sanitary sewer operational costs for the second year. Capital improvements for both years are identified in the CIP. Replying to questions from Mr. Miller. Mr. Jessie said the proposed rates include some future improvements to sanitary sewers and some future improvements to storm sewers in Eugene. The rates include "seed money" for the Riverfront Research Park until improvements can be assessed to property owners. Mr. Gleason added that the City pays for 12 to 16 percent of street improvements that cannot be assessed to property owners. For example. the City pays for some intersections and manhole covers. He said the City had to make an investment in sewers in the River Road/Santa Clara area before the costs can be assessed to property owners. Answering questions from Mr. Holmer, Mr. Jessie said the proposed rates will increase average residential storm sewer charges 13.7 percent and average residential sanitary sewer charges 11.1 percent in the next two years. e Mr. Holmer initiated a comparison of Eugene's sewage treatment costs to Portland's sewage treatment costs. One of Mr. Jessie's slides compared sewer rates in Eugene to rates in other cities. Mr. Gleason said most cities have separate sanitary and storm sewers. He discussed the standards set by the Federal Department of Environmental Quality (DEQ) for Eugene and Portland. Answering questions from Mr. Bennett and Ms. Ehrman, Mr. Jessie said it is hard to know what is included in Portland's sewer charges. He said he is quite sure that other jurisdictions do not recover all sanitary and storm sewer costs in their fees. Eugene includes leaf pick-up in the storm sewer charge. Replying to questions from Ms. Schue, Mr. Jessie said the United Sewerage Agency includes the Beaverton/Tigard area. Mr. Gleason said the United Sewerage Agency sewer fee does not include storm sewage charges. Rep 1 yi ng to a question from Mr. Rutan. Coy Jones. Superi ntendent of the Wastewater Treatment Pl ant, said the Wastewater Treatment Pl ant uses an activated sludge treatment process which is the best process for the stringent requirements Eugene must meet. He said the plant is computerized and uses modern technology. Mr. Gleason said many cost savings have been incorporated into the plant operation. For example. electricity is generated from methane gas. Ms. Wooten said cost efficiencies after construction of the new treatment plant created surplus revenues which were to be used to offset sewer charges. Ms. Andersen responded that the surplus was incorporated into the regional rates adopted two years ago. She said most of the surplus has been used but some of it is included in the regional rates being reviewed by the MWMC. e MINUTES--Eugene City Council Work Session April 22, 1987 Page 2 Mr. Gleason said the regional rates probably will have to be increased to make up for the surplus incorporated into the rates for the last two years. ~ Replying to a question from Ms. Ehrman, Mr. Jessie said Eugene and Springfield rates will be similar. Mr. Holmer pointed out that the regional sewer charge will be in addition to the proposed local monthly sewer charge of $6.35. Mr. Miller said sewer charges seem to be increasing every two years. Mr. Jessie said the estimates on which rates were based two years ago were about ten percent under actual flows. He said the estimated flows now are more accurate. He said regional costs may be increased again in two years because the surplus will be used by that time. Ms. Schue said the flow-based rate adopted by the council is based on an average water use. Ms. Wooten and Mr. Rutan asked for additional information about the size of the surplus two years ago, how it has been used, and the reasons for the present situation. e Mayor Obie said he would like information about costs of sewer service to industrial users because people tell him sewer costs are very high in Eugene and it is less costly for heavy sewer users to do business in Portland. He said the information presented to the council does not justify an increase in rates and, if an increase in the rates is proposed, he wants to understand the justification for it. He challenged-the staff to find ways to avoid an increase in rates. Mayor Obie adjourned the work session about 12:20 p.m. o/'~ Mictieal Gleason City Manager (Recorded by Betty Lou Rarick) mncc0427 e MINUTES--Eugene City Council Work Session April 22, 1987 Page 3