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e in order to make the council's findings consistent with that, changes need to be made in Findings F and G on Page 2 of the resolution. Mr. Nicholson cautioned the council that if the council places this question before the voters and then immediately purchases the building, it will have committed a serious strategic error. Mr. Rutan moved, seconded by Mr. Boles, to adopt the amended resolution (replacing this motion with his substitute motion made earlier). The motion carried unanimously, 8:0. VII. EUGENE WATER & ELECTRIC BOARD REVENUE BONDS City Manager Mike Gleason introduced the topic. Administrative Services Director Warren Wong gave the staff report. He said that the EWEB Board is requesting that the council place a $22 million Revenue Bond measure on the March 26 ballot necessary to fund electric system capital improvements con- tained in EWEB's Capital Facilities Plan. The rate structure will pay for debt service. He indicated that Commissioner Hendrickson and EWEB staff would be available to answer questions. Responding to a question from Mr. Rutan, Mr. Wong said that the bonds would not be backed with the full faith and credit of the City but rather be sup- ported by rate revenues of the utility itself. . e In response to a question from Mr. Robinette, Commissioner Hendrickson said that EWEB believes that this is a more rate-effective means of paying for improvements than paying through operating revenues. She explained that rate stability is one of EWEB's goals and said that over the long term, this has been judged to be the best method. Responding to a comment from Mr. Boles, Randy Berggren, EWEB staff, said that the goal is to improve facility efficiency in addition to capacity. He also said that operational considerations drive the demand for enhanced electrical substation transmission capacity. The replacement underground cable has proven more reliable than the one currently in place. Mr. Berggren explained that some increase in rates will be necessary to pay for facility construction over time. Lower rates will be seen in the first few years. The alternative to this bond would be a higher increase in rates initially to create capital for facility improvements. Ms. Bascom inquired about the steam-generation facility located near the University of Oregon. Mr. Berggren commented that this facility is providing a mutual benefit for the steam utility and the University. Ms. Bascom encouraged EWEB staff to publicize and program the use of the public plaza located near EWEB's facility. She also spoke positively about the relationship which currently exists between the EWEB Board and the City. - . MINUTES--Eugene City Council January 9, 1991 Page 9