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e e e Answering questions from Ms. Ehrman and Mr. Miller, Ms. Reeder said $500,000 is budgeted for the parking lot, the walkways, the public plaza, landscaping, and screening. She said EWEB representatives consider providing the public amenities in the plan to be their public responsibility. She noted that EWEB has developed the Leaburg Park for public use. The EWEB storage yard will continue to be fenced. Jim Brown, EWEB Operations Manager, said the parking lot is lighted and patrolled both night and day and the patrolling will continue after the parking is increased. Replying to questions from Mr. Holmer and Ms. Bascom, Don Vanderzanden, EWEB treasurer, explained that a one-percent rate increase will be needed to pay the difference between the savings which will result from implementation of the plan and the principal and interest costs of the revenue bond issue. Mr. Brown said pipes, water meters, and boxes are the type of things in the storage yard. The piles are only 15 feet high. Ms. Bascom wondered if $500,000 is enough to landscape and screen the area. Ms. Reeder said the EWEB engineering staff has indicated $500,000 is sufficient, but, if it is not, the proposal includes a $400,000 contingency item for such things. Responding to questions from Mr. Rutan, Ms. Reeder said EWEB will need some rate increases during the period of the revenue bonds because the cost of materials will increase, because some of the Bonneville Power Administration (BPA) 22 percent rate increase in 1983 will have to be passed on to customers, and because BPA may increase rates again. She said EWEB usually absorbs about 50 percent of the BPA rate increases. The EWEB Board of Directors approves rate increases after public notice. Answering questions from Ms. Bascom, Ms. Reeder said University of Oregon and EWEB representatives are discussing the future of the two steam plants. The EWEB Board of Directors recently approved a study of the steam systems and alternative systems. Ms. Wooten added that the refinement plan for the Riverfront Research Park indicates one steam system would be desirable. Responding to a question from Ms. Wooten, Ms. Reeder said EWEB will probably pass on to customers about half of future BPA rate increases. She will get information about the effect on an average all-electric home in Eugene. She said the EWEB staff intends to keep EWEB rates below average. Answering questions from Ms. Ehrman, Ms. Reeder said EWEB rates will be increased about one percent in the next five years to support the proposal. The increase will be included in the explanation of the measure on the ballot. Ms. Reeder introduced Bill Watt of Lazards Freres & Co. who discussed the financing of the proposal. He said the financing is conventional. He said the financial condition of EWEB will be improved after the proposal is approved. He said the new bonds will replace the outstanding old bonds which total about $25,000,000. The debt service will be about the same. MINUTES--Eugene City Council Work Session January 29, 1986 Page 2