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<br />RESOLUTION NO. QLf70 <br /> <br />A RESOLUTION APPROVING ALTERNATIVE TO SIX PERCENT IN <br />LIEU OF TAX PAYMENT ON WHOLESALE ELECTRICITY SALES <br />FROM THE EUGENE WATER & ELECTRIC BOARD. <br /> <br />The City Council of the City of Eugene finds that: <br /> <br />A. Significant revenues have been generated by the Eugene Water & Electric Board <br />(EWEB) through sales for resale, resulting in benefits for the City through payments pursuant to <br />Section 44(4) of the Eugene Charter of 1976. <br /> <br />B. Significant changes have occurred in the wholesale electric market, making it <br />difficult for EWEB to continue to make sales to other entities for resale and make its payments to <br />the City under the current formula of six percent of EWEB's gross revenues. <br /> <br />C. It would be in the best interest of the City, EWEB, and EWEB's customers to alter <br />the payment terms for sales for resale for a trial period ending on December 31, 1997. <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 contracts entered into between EWEB and another power <br />company, for sales for resale. During the trial period ending on December 31, 1997, the formula <br />to be applied to all such contracts entered into after the effective date of this Resolution shall be <br />seventeen percent of the net revenues from sales for resale. Payments shall continue to be made <br />at the seventeen percent rate until expiration of the contract, notwithstanding the expiration of the <br />trial period. <br /> <br />Section 2. The current formula based on a percentage of gross revenues will continue to <br />apply to sales for resale entered into prior to the effective date of this Resolution, to any contracts <br />for services where EWEB is not responsible for supplying power, to all existing contracts, and to <br />all retail sales. <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 this Resolution. <br /> <br />The foregoing Resolution adopted th~~ay of June, 1996. <br /> <br />t! ;co!r'7 <br />