08/08/1988 Meeting (2) - Laserfiche WebLink

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e report. He said the method used forecast the financial requirements, invest- ments, expenses, and rates absent service to Willow Creek. A second forecast was prepared using the same factors and including the various expenses of serving Willow Creek. Mr. Winnerfeld said the following results were determined if EWEB served the Willow Creek area: 1) there would be an approximate $3 million decrease in costs over a 20-year period for both utilities' customers; 2) the rates and total utility costs paid by Willow Creek customers would be lower if served by EWEB; 3) a slight decrease in the rates paid by other EWEB customers would occur if the utility served the area; 4) a slight increase for LEC customers would occur if EWES served the area. Ms. Brody pointed out the council's packets include testimony from the Metro- politan Partnership, Lane Electric Cooperative, a letter on behalf of Blachley Lane, and two letters from residential property owners, one favoring the transfer, and one opposed. For the audience's benefit, Mayor Obie said the council has received an immense amount of studies and written testimony over the issue. He said the council also spent from 5:30 p.m. to 7:15 p.m. this evening in a work session asking additional questions. Following tonight's public hearing, Mayor Obie said the record will remain open until 5 p.m. Tuesday to receive additional written testimony. The council will make a decision on the issue at its August 10, 1988, meeting. e Mayor Obie opened the public hearing. Jim Saul, 111 West 7th Avenue, Suite 300, said he is speaking on behalf of Gonyea and Associates, which controls Willow Creek Park. He said the company strongly endorses the transfer of electric service to EWEB. Willow Creek Park represents nearly 50 percent of the area being considered in the trans- fer. The question of which utility serves the area has been of concern to the developers because of the traditional disparity in rate structure, reli- ability of service, and relative capital strength of the two utilities. Since the recent improvements to the Willow Creek Park area were completed, Mr. Saul said firms considering locating there have rejected the area because of the disparity in rate structure. He said this problem is particularly acute because firms that have learned about EWES's rate structure arrive to find a different utility serving the area. Mr. Saul encouraged the council to review the boundaries of the service area. He noted that Willow Creek Park is surrounded on 3-1/2 sides by EWEB service area. Richard P. Haugland, 4849 Pitchford Avenue, said he is president of Molecular Probes Inc., the largest employer in the Willow Cr~ek area with approximately 45 employees. He said Molecular Probes is a model of the type of industry Eugene is seeking to attract; its business and products are research orient- ed. Molecular Probes is currently building an addition that will nearly triple its existing space and increase its number of employees. e MINUTES--Eugene City Council August 8, 1988 Page 3