Item B: EWEB Water Rights - Laserfiche WebLink

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While the City Manager continues to believe that perfection of the third water right is in the City’s interest, the City Manager believes that the issue of Charter authority should be resolved first. Accordingly, the City Manager recommends the City intervene in the pending validation proceeding. RELATED CITY POLICIES Section 44 of the Eugene Charter sets out the Eugene Water & Electric Board functions. It states, in part: “(1) The power of the city to generate, collect, and distribute electricity, steam, and other kinds of physical energy is hereby vested in the Eugene Water & Electric Board (the Board). * * * “(3) The board shall maintain and operate the water utility and the electric utility of the city, subject to control by the council of extension of water service.” Section 2.212 of the Eugene Code, 1971, contains provisions for extraterritorial water and sewer service extensions. It states: “The city, including EWEB, shall not provide water, water service or sewer service outside the city limits except as authorized pursuant to the city charter, this code, and adopted resolutions. The city manager or the manager's designee is hereby authorized to receive on behalf of the city requests for the extra-territorial extensions of water service or sewer service from inside the city limits to serve property located outside the city limits or for the provision of water or sewer service to special service districts. Such requests shall be accompanied by the application fee established by the city manager as provided by section 2.020 of this code. Requests for the extra-territorial extension of water service or sewer service shall be processed and approved or denied as provided in section 9.8115 to 9.8121 of this code.” COUNCIL OPTIONS 1. Postpone a decision on whether the council supports the proposed sale of water to Veneta until after the “Charter authority” question is resolved by the court. If the council chooses this option, the City will intervene in the validation proceeding and argue that the City Charter grants to the council, rather than EWEB, the authority to decide to sell water outside the City’s limits. 2. Support not only this proposed sale of water, but agree that EWEB should have the authority to approve other sales to municipalities without needing the council review and approval. If the council chooses this option, staff will (a) present to the council a resolution authorizing this proposed sale to Veneta (since that can happen quickly), and (b) schedule a public hearing for the council on a proposed code amendment delegating to EWEB the authority to enter into wholesale water sale contracts. Z:\CMO\2010 Council Agendas\M100628\S100628B.doc