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the City. He said it is apparent in the legislature to have cities pay for e it. Mr. Long said negotiations are understood and that the City declares its intentions to acquire by passing an eminent domain resolution. Responding to Ms. Ehrman1s query, Mr. Long said that technically the City is condemning personal property. He said that State law recognizes that bounda- ries change. He said theoretically the City could go back to the PUC or eject the utility, but that still leaves the question of who is to pay. He said it would be best to purchase the personal property, and then the legal effect is to reallocate the territory. Ms. Ehrman asked if the City condemns, would EWEB pay. Mr. Long sa i d ut il i- ties operate under the same charter as the City, so EWEB would pay the bill after the City Council authorizes the move. Mr. Holmer asked whether the EWEB or LEe boards have taken a formal position on the issue. Ms. Brody said EWEB is scheduling a public hearing for August 15, after which they will make a formal declaration. Ms. Schue asked if it is appropriate for the City Council to act before the EWEB board makes a decision. Mr. Long said that has been the customary practice. Mr. Holmer said that section two of the draft ordinance makes a reference to lithe stated amountll; he asked to know that amount now. Ms. Power said the EWEB board will determine a reasonable offer when it meets after August 15. Mr. Gleason said the amount will be made by the two parties in agreement or by the court which must determine the market value. He said this figure is not made by governing bodies. Mr. Holmer said it makes a lot of difference e for making a decision if the council knows this number up front. He said he believes that condemnation is a difficult, serious, political action, and he would like to be sure that it be done in a fair and equitable terms. He added that it is difficult to make a rational decision when LEC has not been given time to make its case, Mr. Bennett said that staff is briefing the council and providing its recommendation. Mayor Obie added that this is the way work sessions are usually run. Ms. Ehrman said she shared Mr. Holmer's concern about the cost and agreed that condemnation is a serious business. Mr. Gleason suggested that an executive session would be required to disclose the figure to the councilors. The group informally agreed that a confiden- tial memo would suffice. Ms. Bascom requested that information on the utili- zation of this property over a certain time period be included in the memo. Ms. Brody distributed a letter from Richard Butler of Atherly, Butler, and Burgott who is representing LEC. The meeting was adjourned at 7:10 p.m. Re$pectfully submitted~ ~~ .... , ',. ..~~ .t .'-1 Mi chea f"G1 eason City Manager e (Recorded by John Makowsky) MINUTES--City Council Work Session August 8, 1988 Page 7