CC Minutes - 04/14/08 City Council Meeting

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Councilor Zelenka ascertained from Ms. Bloom that the electric system bonds were existing bonds that were already embedded in the rates. He asked if the purpose of this action was to help lower costs and stabilize rates. Ms. Bloom confirmed this was the purpose. Councilor Zelenka asked if the projects the water bonds were intended to pay for were in EWEB’s Capital Improvement Program (CIP). Ms. Bloom affirmed that they were. She said every year as part of the budgeting process they developed what the capital costs were currently, and would be for the next year, and for the next four years. She stressed that this was part of the public process when they adopted the budget. Councilor Zelenka pointed out that EWEB Commissioners were elected and if someone did not like how things were going the ultimate accountability was being “un-elected.” Roll call vote; the motion passed 5:2; councilors Bettman and Taylor voting in opposition. Regarding Item D, Councilor Bettman ascertained from Ms. Bloom that the refinance of the bond would save $1.7 million and this would result in future savings to the ratepayers. In response to a follow-up question from Councilor Bettman, Ms. Bloom explained that the savings would occur from the present forward. Councilor Bettman asked if the bond money would be used to accomplish anything else. Ms. Bloom replied that it would not; they were refinancing an existing debt to realize a savings. Councilor Bettman said it seemed to her that there would not be much savings given the administrative costs. She wondered what other reason there would be for refinancing the bonds. Ms. Bloom explained that the savings were far and above the costs of issuing the bonds. Roll call vote; the motion passed unanimously, 7:0. Councilor Bettman said she had flagged Item E because there was a request to increase the amount of debt that could be incurred on assessments from $4 million to $5 million. In response to a question from Councilor Bettman, City Attorney Glenn Klein explained that if enough property owners refuse a Local Improvement District (LID) the City Council could override it. Councilor Bettman would not favor forcing people to take on a large liability. She wanted to know that the Crest Drive neighbors were in agreement before she could do so. Mr. Klein referred to Section 37 of the Charter and determined that if the owners of a majority of the parcels that would be assessed object then the improvement could not go forward unless two-thirds of the council decided to override that objection. Councilor Bettman, seconded by Councilor Taylor, moved to table Item E, adoption of Resolution 4937 authorizing interim and long-term financing for Local Improvement Pro- jects and terminating the authority under Resolution No. 4807. Roll call vote; the motion passed, 5:2; councilors Clark and Pryor voting in opposition. MINUTES—Eugene City Council April 14, 2008 Page 9 Regular Meeting