Item C: EWEB Sale of Water to Veneta

Home Browse Search

ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Work Session: Eugene Water & Electric Board Sale of Water to Veneta Meeting Date: January 11, 2011 Agenda Item Number: C Department: City Manager’s Office Staff Contact: Brenda Wilson www.eugene-or.gov Contact Telephone Number: 541-682-8441 ISSUE STATEMENT Eugene Water & Electric Board (EWEB) entered into a contract to sell water to the City of Veneta. EWEB filed a lawsuit asking the court to declare that EWEB has independent authority to enter into that contract without council approval. On October 27, 2010, the circuit court issued its decision finding that EWEB, rather than the City Council, has the authority to sell water to Veneta. The City of Veneta has asked that the council weigh in on whether the council supports the proposed sale of surplus water to Veneta. BACKGROUND In 2009, EWEB informed the City Manager about EWEB’s interest to sell water to Veneta in order to certify part of EWEB’s third water right and to help ensure that the water in this water right would be available to Eugene residents in the future when needed. In mid-April 2010, EWEB and the City of Veneta signed a water-sale contract. EWEB then submitted the contract to the Lane County Circuit Court for validation. On October 27, 2010, the circuit court decided that EWEB, rather than the City Council, has the authority to sell water to Veneta. The City has appealed that decision. There have been several public meetings and hearings on this issue. On May 12, 2010, the council was presented with background information on the water sale and the court process. On June 7, 2010, a joint meeting with the EWEB Board was held; a Public Information Forum was held on June 8, 2010; and a Public Hearing was held on June 14, 2010. On June 28, 2010, this issue was brought back to the council. At that meeting, the council voted to postpone a decision on whether the council supported the proposed sale of water to Veneta until after the Charter authority question was resolved by the court. On October 27, 2010, the circuit court issued its decision that EWEB, rather than the City Council, has the authority to sell water to Veneta. On November 10, 2010, a work session was held where the City of Veneta presented information to the council. On December 13, 2010, a public hearing was held to hear from the community on this issue. As of January 5, 2010, and subsequent to the December 13, 2010, public hearing, the City has received 10 written comments. Those comments are attached as Exhibit A. Any \\Cesrv500\cc support\CMO\2011 Council Agendas\M110111\S110111C.doc