08/11/1986 Meeting - Laserfiche WebLink

Home Browse Search

Gary Long, the City I s Director of Administrative Services, said that condemnation costs appear to be less than $1 million, and given EWES's past e position and rate structure, and depending if EWEB acquires the property, it appears that there would be no rate adjustment or any serious cash problem. He said that in terms of the assets to be condemned, the value of the poles and wi re s on the property would be less than $50,000. He said that this is separate from the cost to EWES to serve the area. Mr. Rutan said that he wanted the council to be direct with this conversation and to determine what information is needed. He asked EWES to state its intent and whether this issue could be resolved by negotiations between the two utili ties. He said if EWES and LEC cannot agree on this subject, then the council can then decide if it wants to get involved. Mr. Sercombe said that if the condemnation process was initiated, LEC would not be entitled to an award of future profits and he would check to see if LEC might be entitled to severance damages. He said that the condemnation would not be subject to review or action by the pue. EWES was asked to provide start-up costs based on a scenario of assumed growth in the Willow Creek basin that was contained in the exercises by LEC. Ms. Wooten wanted to know from EWES .what the impact of a 20-year build-out would be on the rate structure--either increase or decrease. She requested detailed information on the condemnation costs of LEC assets for that area. Mr. Hansen requested information on other types of condemnation proceedings, of similar successes or failures within the state. Ms. Wooten requested a comparison of residential electricity outages in southeast and southwest Eugene from both utility companies. She asked for LECls and EWEB's track record to the areas e surrounding the Willow Creek basin. She also requested an analysis of LEels industrial service, the number of outages in the area, and what LEC's back-up, uninterrupted service capability is. EWEB was asked to initiate a conversation or arbitration session with LEC to try and resolve the issue without legal or City action. A report was also requested stating any negotiating problems. Mr. Fadeley said that if LEC was going to negotiate, it needed to know that City staff will not he 1 p to solicit--or help others to solicit--LEC customers with letters that have been distributed. Ms. Schue requested background information on LEC, with a map showing what two-thi rds of Lane County is served by LEC. She also asked for an annual report and general background on LEC. The councilors requested that EWEBls board state its position on the proposed negotiations and on the possible condemnation process. A summary of the CH2M Hill Report, including comments on the Tampa exercise, was also requested by the councilors. The City Council also asked for the status of LECls financial condition, how LEC projected its future, and how the Willow Creek basin issue will affect LEe I s growth. Staff was asked to prepare a synopsis of the CH2M Hill Report, and give LEC sufficient time to respond to that synopsis, or for a report from LEC on this study. e MINUTES--Eugene City Council Dinner Session August 11, 1986 Page 7