CC Minutes - 02/25/02 Work Session

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Ms. Nathanson thanked EWEB staff for the information it provided to the Human Services Commission the past fall when the subject of funding energy assistance was under discussion. She appreciated the programs that EWEB offered to its customers to assist them with the costs of energy, and hoped those programs could be integrated into the efforts of the commission and the City where appropriate. Ms. Taylor asked how much electric rates would go down if the CILT were reduced to three percent. Mr. Berggren estimated that the result would be a 2 percent to 2-1/2 percent reduction. Ms. Taylor wondered how much energy assistance the City could have provided to Iow-income residents if it did not grant Hynix a tax exemption, adding that not just Iow-income residents were having difficulty paying their energy bills. Ms. Bishop said she received a lot of calls from customers who wanted to know why EWEB rates were higher than SUB's rates, and she believed the biggest difference was that SUB's rates were based on costs, and EWEB's rates were based on the public's interest. Eight to ten percent of EWEB's revenues go to public purposes, such as renewals, conservation, and energy assistance. She said that the public had demanded those elements. Mayor Torrey said he believed there was a need in the community for many forms of relief, including energy assistance, and he believed that the council reached out to address those needs. For example, the City provided after-school programs without discriminating between residents and nonresidents. In addition, the council decided to fund drug treatment programs and had to address the negative impact of the Board of County Commissioners' decision to allow Lane Rural Fire District to provide service in an extended ambulance district. Regarding the six-percent CILT, he said that the business decisions around CILT were ones that he endorsed. He recommended that EWEB and the City work together to the degree possible to solve the problem that existed. He asked that the board understand the limitations facing the council. Mr. Rayor suggested the possibility of EWEB borrowing to fund energy assistance programs and then repay the money when conditions improve in two or three years. City Financial Analysis Manager Becky Koble invited questions on the staff recommendation for a potential charter amendment regarding EWEB's short-term borrowing authority. Ms. Bettman asked staff to define the risks of the charter amendment for the ratepayer and the City. She also asked how the five percent figure was arrived at. Jim Origliosso, EWEB Treasurer, said the five- percent number had been in the City Charter since 1976. It actually was derived from an old Trojan Power Plant bond resolution that sought to restrict the subordinated, or unsecured debt, of EWEB. He said the ratepayers were essentially protected by the additional language that was outlined in the staff memorandum on the topic, Joint Staff Recommendation on Proposed Revisions to the Eugene City Charter. The bond holders would assume the risk of the revenues not being available. Mr. Johnson also pointed out that by definition, short-term borrowing was for one year. Mr. Kelly said the amendment appeared to be a housekeeping item. Mr. Meisner did not characterize the amendment as housekeeping, given that it addressed borrowing. He asked if the charter amendment was being prepared in isolation from other EWEB charter issues. Mr. Johnson indicated that staff was recommending that it be addressed aside MINUTES--Eugene City Council February 25, 2002 Page 7 Work Session