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Item 3: Resolution 5022 Concerning the Sale of Water to the City of Veneta
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Item 3: Resolution 5022 Concerning the Sale of Water to the City of Veneta
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1/24/2011
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<br />ATTACHMENT A <br />RESOLUTION NO. _____ <br /> <br /> <br />A RESOLUTION CONCERNING THE SALE OF WATER TO THE CITY <br />OF VENETA. <br /> <br /> <br /> The City Council of the City of Eugene finds that: <br /> <br />A. <br /> The Eugene Water & Electric Board (“EWEB”) and the City of Veneta have <br />entered into a contract which allows Veneta to purchase from EWEB up to 4 million gallons of <br />water per day. The water would be delivered to Veneta through a pipeline that Veneta would <br />construct from Eugene to Veneta (“the pipeline”). <br /> <br />B. <br /> Veneta has obtained approval from the federal government for grants and loans to <br />pay for much of the cost of the pipeline. In order to take full advantage of those grants and <br />loans, as well as the favorable construction market, Veneta desires to commence planning, <br />design and construction of the pipeline as soon as reasonably possible. <br /> <br />C. <br /> There is uncertainty about whether EWEB possesses the authority to sell water to <br />Veneta without approval of the City Council. That question is in the early stages of an appeal <br />before the Oregon Court of Appeals. A final appellate court decision on that question is likely <br />12 to 24 months away. <br /> <br />D. <br /> Before spending the federal grant and loan funds to construct the pipeline, Veneta <br />would like certainty that it will be able to use the pipeline by purchasing water from EWEB. <br />That certainty can exist only: (a) if a final appellate court decision concludes that EWEB, rather <br />than the City Council, possesses the authority to approve a sale of water outside the city limits; <br />or (b) if the City Council authorizes EWEB to sell the water. <br /> <br />E. <br /> Although Veneta desires to be able to purchase up to 4 million gallons a day from <br />EWEB, Veneta has indicated that construction of the pipeline would be fiscally responsible as <br />long as it could purchase at least 3 million gallons a day. <br /> <br />F. <br /> In order to provide Veneta with the certainty it needs to be able to begin to spend <br />the federal funds for the pipeline, the City Council is willing to approve EWEB’s sale of water to <br />Veneta of up to 3 million gallons a day, subject to certain conditions. <br /> <br /> <br />NOW, THEREFORE, <br /> <br /> BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE, a <br />Municipal Corporation of the State of Oregon, as follows: <br /> <br />Resolution - <br />Page 1 of 2 <br /> <br />
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