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<br />RESOLUTION NO. 'Is,? <br /> <br />A RESOLUTION APPROVING ALTERNATIVE TO SIX PERCENT IN <br />LIEU OF TAX PAYMENT ON STEAM SALES FROM THE EUGENE <br />WATER & ELECTRIC BOARD <br /> <br />The City Council of the City of Eugene finds that: <br /> <br />A. Since 1962, when the Eugene Water and Electric Board (EWEB) acquired its <br />steam distribution system, steam system sales revenues have been generated by EWEB, resulting <br />in benefits for the City through payments pursuant to Section 44(4) of the Eugene Charter of <br />1976. <br /> <br />B. EWEB' s steam operation provides a competitive energy source to downtown <br />businesses and government agencies, benefitting both downtown and the community at large. <br /> <br />C. Changes in recent years, including load losses exceeding 40%, have made it <br />difficult for EWEB to continue to remain competitive and also make its payments to the City <br />under the current formula of six percent of EWEB' s gross steam sales revenues. <br /> <br />D. It would be in the best interest of the City, EWEB, and EWEB's steam system <br />customers to alter the in lieu of taxes payment terms as of August 1, 1999. <br /> <br />NOW, THEREFORE, <br /> <br />BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE, a <br />municipal Corporation of the State of Oregon, as follows: <br /> <br />Section 1. Based on the above findings, which are hereby adopted, the City Council <br />approves a change in the payments received from EWEB pursuant to Section 44(4) of the Eugene <br />Charter of 1976 as they relate to steam system sales revenues earned by EWEB. The formula to <br />be applied to all such revenue earned after August 1, 1999, shall be four percent of the gross <br />revenues from steam system sales. <br /> <br />Section 2. Nothing in this Resolution is intended to affect any ofEWEB's other <br />payments to the City, including but not limited to payments related to sales of electric power. <br />The revision of this formula does not establish any precedent for future negotiations. <br /> <br />Section 3. This Resolution shall become effective after the EWEB Board also approves <br />the change in payments and the City Manager and EWEB General Manager execute a <br />Memorandum of Understanding consistent with the terms of the Resolution, but no earlier than <br />August 1, 1999. <br /> <br />The foregoing ReSOIUtionlted this 26th day of July, 1999. <br /> <br />4- tf fY7 <br /> <br />ity Recorder <br />