CC Minutes - 09/19/01 Work Session

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Eugene Water & Electric Board, and adopted by the EWEB Commissioners on September 4, 2001. Mayor Torrey called for council comments and questions. Ms. Nathanson questioned why the council needed to approve a project already approved by the voters. She thought many of the questions about the propriety of EWEB's actions were related to a fundamental question about whether EWEB should offer the service at all. She believed the voters had spoken in favor of the service, and the utility needed to start somewhere. Ms. Nathanson pointed out that the service was always to have been phased in, and EWEB was merely proposing a different phasing approach. She thought the voters would approve of the conservative approach being taken by EWEB. Ms. Nathanson noted the council was frequently criticized for interfering in the business of other agencies and urged not to get involved. She found it ironic that in this case, there were people who did not trust the board, which was accountable to the ratepayers, and were urging the council to insert itself between EWEB and its customers. Ms. Nathanson thought the risks involved were small, and said the council should trust the EWEB commissioners and allow EWEB to proceed. Mr. Kelly said that the project was EWEB's and for that reason he gave deference to the EWEB commissioners, who were responsible to the public that elected them. However, because of the fact of the joint resolution, he wanted to ensure he was comfortable with the amendment. He thanked EWEB for the changes to the amendment to the resolution made in response to his concerns. Mr. Kelly thought on balance, the issue involved was one of economic development. He believed the presence of MetroNet would give local businesses a competitive advantage and attract the types of businesses compatible with the community's goals. Mr. Kelly noted he had determined from Ms. Wright that $4.5 million on hand would get the system running for two years, the business plan indicated short-term borrowing would begin in the out years, and the voters would approve future indebtedness, including such short-term borrowing. Mr. Farr wanted EWEB to proceed with the project, which would benefit small businesses in the long run. He had been convinced that the project was viable and one that would eventually sustain itself. He was not concerned the project would compete with the private sector, but thought the project would compliment existing businesses and would also attract new businesses to the community. However, Mr. Farr was concerned that the voters approved spending money in one way, and the amendment changed the way in which the money was spent. He thought there was a community perception that the council did not care how the people voted. Mr. Farr was worried that changes to the resolution could be interpreted as ignoring the public. He asked staff to address that concern. MINUTES--Eugene City Council September 19, 2001 Page 2 Work Session