12/22/1980 Meeting - Laserfiche WebLink

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form by the end of the year. The program was discussed in detail in the city- . wide distributed Parks and Recreation letter. In November, the proposal was presented on cable TV. Council requested the ordinance be presented at the end of December. In the next four years, there will be strong educational programs. On January 19, it will be discussed with neighborhood group leaders. Information programs will be developed in cooperation with EWEB. A key provision of the mandatory measure was financing. Mr. Page introduced Ms. Reeder to discuss the program. Ms. Reeder discussed the financing plan adopted by the EWEB Board on May 27, 1980. The details are being worked out and developed but Ms. Reeder emphasized that a loan program would be in place and available by EWEB. There will be a zero-percent-interestloan for electric space heat customers. There will be matching grants for most cost-efficient measures installed by electric heat customers. (If a customer does the work, they are donating their labor. EWEB will donate the materials.) There will be low-interest loans for non-electrical space heat customers equal to the bond rate so that EWEB customers are not paying for those loans. There will be available low-cost loans and grants for landlords and tenants. There will be the provision for payback at the time of resale or over a monthly payment schedule which can be assumed by a new resident. The availability of the loan program and the list of measures for which the loans will be available is independent of the ordinance under consideration. The fin'ancing program wi 11 cover all eight measures covered in the ordinance. With regard to the status of the loan program, Congress rescinded the provisions, saying utilities could not loan money. On November 17, the Attorney General issued an opinion that they do not need to change the Oregon Constitution to . have public utility financing of weatherization. EWEB is involved in a test case which had a preliminary ruling December 2, 1980, that EWEB is not in violation of the Oregon Constitution, the State statutes, or the City of Eugene Charter if there ;s a weatherization program. The case is being appealed to the appellate court. A decision will come in two to six months. At that time, EWEB will go to a bond issue election. They believe that they will need voter approval to finance bonds for the program. They hope to offer the program by the end of 1981. Mr. Page explained the concerns of the Policy Board. The loan program had to be available to rental properties. A landlord could raise the rent to cover the loan payment. The tenant would be better served because the rent after weather- ization, plus the loan fees~ would be less after the weatherization than before. The landlord would be able to take advantage of those tax credits that are equitable to the EWEB loan program or retain capital gains at the sale of the investment property. The financing program would be available to oil and natural gas customers. It is cost-effective to the rate payer. It has no impact on the property tax. Mr. Page reviewed the key elements of the ordinance. It becomes effective in 1985. The Energy Board believes the citizens will voluntarily accomplish the work given the forecast electric rate increases and the availability of financing. For the houses weatherized in the four-year period, this ordinance would have very little impact. EWEBwou 1 d have record s on fi 1 e. The ordinance affects . MINUTES--Eugene City Council December 22, 1980 Page 12