08/08/1988 Meeting (2) - Laserfiche WebLink

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e officer, he said he understands the utility business well. He said the council should base its decision on personal ethics. Mr. Zenith said his opinion of EWEB would deteriorate significantly if the utility pursues the territory transfer. Leon S. Yaggy, 49363 Eagle Rock Place, Vida, said he is a retired electrical engineer and has been a member of LEC for over six years. LEC has provided the McKenzie River schools and homes with excellent rates; in fact, he said the latest rate change was a reduction. He said he is confident LEC can provide highly competent service at competitive rates. Mr. Yaggy said the City of Eugene would be abusing its authority if it proceeds with the condem- nation proposal. Ray McGowan, 29190 McTavish Lane, said he has been an LEC customer for 25 years. He said he has a "fistful" of names from neighbors who prefer to remain in the cooperative. Mr. McGowan pointed out that while he respects the work of R.W. Beck, consultants can highlight certain facts if they know what their clients objectives are. He said high property taxes rather than electrical rates are the primary factor in businesses not choosing to locate in the area. Mr. McGowan said the price of transferring LEC facilities to EWEB will be borne by City taxpayers. Martha G, Shearer, 83499 Rattlesnake Road, reminded the council that if it bases its decision on current rate~, it should look at the fact that EWEB increased its rates in 1983 and 1988, while LEC dropped its rates in 1986 to its 1983 level. If EWEB expands its facilities, it will have to increase its e overall rates because low-cost power is being spread out over a larger base, She said she and her family have enjoyed wonderful service, responsiveness, and good customer relations for the over 17 years they have been LEC custom- ers. Curtin Mitchell, PO Box 38, Lorane, said transferring territory from LEC to EWEB would be doing a disservice to all of Lane County. He said the study done by CH2M Hill shows that LEC can provide service as reliable as that of EWEB. He said the abuse of the members/owners of LEC reflects on local control and democracy at the grass roots level. Mr. Mitchell said a pamphlet from the State Economic Development Department shows that property taxes top the list of factors contributing to the business climate, while electrical rates are much farther down. If electrical rates are so important, Mr. Mitchell asked why there aren't more companies coming to the area since it has some of the lowest rates in the country. Mayor Obie closed the public hearing. Ms. Brody said the Willow Creek area is becoming more, not less, important as a primary site in the City's industrial inventory. She said the City is not able to offer as many incentives as other areas of the country. A differen- tial in electrical rates can end up being a factor in a company's decision on where to locate, e MINUTES--Eugene City Council August 8, 1988 Page 7