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II. EWEB BOND ISSUE e Mr. Whitlow explained the request from EWEB for City Council approval of issuance of $30 million of revenue bonds to finance the energy conservation program in Eugene. EWEB hopes to place the issue on the September 20 ballot and needs council approval by August 17. He asked councilors to consider areas to be further researched prior to the August 17 council meeting. Ms. Wooten noted a contradiction in the Bonneville Power Association's prior- ities in that they have a legal obligation to pursue conservation measures as a first priority, whereas they are continuing to finance WPPSS plant #3. This has necessitated their cutting back on conservation programs with resultant passing on of weatherization expenses to local ratepayers. Mr. Gleason re- sponded that legal staff could assess the lawsuit possibilities of this issue as a separate strategy, but recommended that the weatherization program be considered because it offers significant advantages to citizens of Eugene in energy efficiency. Mr. Lindberg questioned the extent of financial liability to the City of Eugene through endorsement of EWEB's bond issue in the event of EWEB financial d iffi cul ty. Mr. Vanderzanden responded that only revenue of the electric utility system could be looked to for repayment and that there could be no compensation from city or EWEB property or from city taxing sources. Ms. Reeder, in response to Mr. Hansen's question, stated that joint customers of electric and oil heat would benefit by overall cheaper electric rates even though only electric customers were being subsidized directly. Customers e with oil and gas heat can get energy audits from the local gas company or State of Oregon. She also stated that changes in the conservation program involve buyback payments wi th an 85% II cap II now, and that EWEB' s pil ot program woul d do likewise. Ms. Reeder stated that the $30 million bond issue would allow 75% of the residences to be weatherized. Half of the bonds would be issued within the first three years for $15 million, and if B.P.A. agrees to pay the debt service, the program could be continued to complete all weatherization. Mr. Vanderzanden said that if the council approved the ballot measure, EWEB would move ahead in anticipation of Treasury and B.P.A. approval of the tax exempt status in view of the benefits to the community. Several councilors cautioned that all legal issues and B.P.A. and federal trea- sury issues be cleared before a city commitment is made. Mr. Gleason agreed to draft a compatible EWEB/City agreement and prepare a joint statement of bond counsel and attorneys in this matter and review these with the council prior to the regular meeting. Mr. Keller concluded the discussion by stating that support was evident from the council on the proposed weatherization program, and if the loose ends were taken care of, unanimous support would likely be forthcoming. It was agreed that no special meeting was necessary to further discuss this. ~~~_d_at):OO p.m. - {R.p~b. ST SP:bm/CM8a26 MINUTES--Eugene City Council August 8, 1983 Page 3