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08/08/1988 Meeting (2)
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08/08/1988 Meeting (2)
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8/8/1988
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<br /> e officer, he said he understands the utility business well. He said the <br /> council should base its decision on personal ethics. Mr. Zenith said his <br /> opinion of EWEB would deteriorate significantly if the utility pursues the <br /> territory transfer. <br /> Leon S. Yaggy, 49363 Eagle Rock Place, Vida, said he is a retired electrical <br /> engineer and has been a member of LEC for over six years. LEC has provided <br /> the McKenzie River schools and homes with excellent rates; in fact, he said <br /> the latest rate change was a reduction. He said he is confident LEC can <br /> provide highly competent service at competitive rates. Mr. Yaggy said the <br /> City of Eugene would be abusing its authority if it proceeds with the condem- <br /> nation proposal. <br /> Ray McGowan, 29190 McTavish Lane, said he has been an LEC customer for 25 <br /> years. He said he has a "fistful" of names from neighbors who prefer to <br /> remain in the cooperative. Mr. McGowan pointed out that while he respects <br /> the work of R.W. Beck, consultants can highlight certain facts if they know <br /> what their clients objectives are. He said high property taxes rather than <br /> electrical rates are the primary factor in businesses not choosing to locate <br /> in the area. Mr. McGowan said the price of transferring LEC facilities to <br /> EWEB will be borne by City taxpayers. <br /> Martha G, Shearer, 83499 Rattlesnake Road, reminded the council that if it <br /> bases its decision on current rate~, it should look at the fact that EWEB <br /> increased its rates in 1983 and 1988, while LEC dropped its rates in 1986 to <br /> its 1983 level. If EWEB expands its facilities, it will have to increase its <br /> e overall rates because low-cost power is being spread out over a larger base, <br /> She said she and her family have enjoyed wonderful service, responsiveness, <br /> and good customer relations for the over 17 years they have been LEC custom- <br /> ers. <br /> Curtin Mitchell, PO Box 38, Lorane, said transferring territory from LEC to <br /> EWEB would be doing a disservice to all of Lane County. He said the study <br /> done by CH2M Hill shows that LEC can provide service as reliable as that of <br /> EWEB. He said the abuse of the members/owners of LEC reflects on local <br /> control and democracy at the grass roots level. Mr. Mitchell said a pamphlet <br /> from the State Economic Development Department shows that property taxes top <br /> the list of factors contributing to the business climate, while electrical <br /> rates are much farther down. If electrical rates are so important, Mr. <br /> Mitchell asked why there aren't more companies coming to the area since it <br /> has some of the lowest rates in the country. <br /> Mayor Obie closed the public hearing. <br /> Ms. Brody said the Willow Creek area is becoming more, not less, important as <br /> a primary site in the City's industrial inventory. She said the City is not <br /> able to offer as many incentives as other areas of the country. A differen- <br /> tial in electrical rates can end up being a factor in a company's decision on <br /> where to locate, <br /> e MINUTES--Eugene City Council August 8, 1988 Page 7 <br />
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