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HomeMy WebLinkAboutResolution No. 4535 RESOLUTION NO. '63 ~ A RESOLUTION APPROVING A CHANGE IN EWEB'S RATE OF PAYMENT TO CITY RELATED TO TROJAN REVENUES. The City Council of the City of Eugene finds that: A. The City of Eugene (the City), Eugene Water & Electric Board (EWEB), and Bonneville Power Administration (BP A) have been negotiating since July, 1995, to resolve the issue of the appropriateness of BP A continuing to reimburse for EWEB' s contributions in lieu of tax (CIL T) payments to the City related to the Trojan project, the operation of the plant having been terminated. B. In July, 1997, the City, EWEB and BPA agreed to recommend to their governing bodies that a settlement of $2.25 million be approved. C. It would be in the best interest of the City, EWEB and BP A to accept the settlement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE, a Municipal Corporation of the State of Oregon, as follows: Section 1. Based on the above findings, which are hereby adopted, the City Council approves, pursuant to section 44(4) of the Eugene Charter of 1976, a change in the "rates of payment" related to the Trojan facility. EWEB no longer shall pay to City an amount equal to 3 % of the Trojan revenues. Instead, EWEB shall pay to City the amount of $2.25 million, as follows: $1.15 million by October 1, 1997; $550,000 by July 1, 1998; and $550,000 by July 1, 1999. Section 2. This Resolution shall become effective after the EWEB Board approves a substantially similar resolution, and BP A formally has approved the settlement. Section 3. Except as provided by this Resolution with respect to revenues derived from the Trojan project, by Resolution 4490 for sales for resale, and the Agreement between the City, EWEB, and Lane Electric Cooperative, Inc., EWEB's payments to the City pursuant to Section 44(4) of the Eugene Charter shall remain the same as they were at the time that Section 44(4) of the Charter was adopted by the electorate. ~ The foregoing Resolution adopted ~ ::: Of~ City Recorder , 1997. EUGENE WATER & ELECTRIC BOARD RESOLUTION AUTHORIZING SETTLEMENT OF CONTRIBUTION IN LIEU OF TAX (CILT) PAYMENT DISPUTE RELATED TO THE TROJAN NUCLEAR PROJECT WHEREAS in 1970 the Eugene Water & Electric Board ("EWEB"), Portland General Electric, and Pacific Power & Light (together, the "Owners") agreed to construct and jointly own the Trojan Nuclear Power Project (the "Project") located northwest of Portland, Oregon; and WHEREAS EWEB committed at that time to a 30 percent ownership share of the Project; and WHEREAS in 1970 EWEB and Bonneville Power Administration ("BPA") executed a Net Billing Agreement for the Project which obligated BPA to pay 100 percent of all EWEB costs associated with the Project; and WHEREAS the Net Billing Agreement was executed at the same time as the Project Ownership and Construction Agreement; and WHEREAS in 1976 the Project began operation; and WHEREAS in 1993 the Owners and BP A agreed to terminate the operation of the Project and, since 1993, the Owners have been working to decommission the Project; and WHEREAS, since 1976 and in accordance with the terms of the Net Billing Agreement, costs related to the Project paid by BP A have included an annual contribution in lieu of tax payment ("CILT payment") for the City of Eugene, an amount equivalent to 3 percent of EWEB' s share of the net operating costs for the Project; and WHEREAS since 1993 BP A has questioned BP A's continued responsibility to make the annual CILT payment for the Project and, beginning in Project budget year 1996, refused to make the aforementioned CIL T payment; and WHEREAS EWEB and the City of Eugene, in ongoing discussions and negotiations with BP A, have consistently maintained that BP A has a contractual obligation to make the aforementioned CIL T payment until such time as the Project decommissioning is completed; and WHEREAS, in order to avoid potentially costly litigation, the City of Eugene, subject to Eugene City Council approval, has agreed to accept $2.25 million from BP A as compensation to replace the estimated CIL T payments expected during decommissioning of the Project (through 2023) and, in return, to relinquish claim to any and all future CILT payments based on net operating costs related to the Trojan Project (the "Settlement"). NOW, THEREFORE, BE IT HEREBY RESOLVED that the EWEB General Manager is authorized to bind EWEB to support and act in accordance with the terms of the aforementioned Settlement. This authorization is contingent upon execution of mutual releases by BPA and the City of Eugene, which in the opinion of EWEB Special Counsel are adequate to protect EWEB from liability in connection therewith with regard to all CIL T issues under the Net Billing Agreement. Adopted by the Eugene Water & Electric Board on August 5, 1997. THE CITY OF EUGENE, OREGON Acting by and through the EUGENE WATER & ELECTRIC BOARD ~~ ~~lt/~ President I, KRISTA K. HINCE, the duly appointed, qualified and acting Assistant Secretary to the Eugene Water & Electric Board, do hereby certify that the above is a true and exact copy of the Resolution adopted by the Board at its August 5, 1997 Regular Board Meeting. ~ ~K ~; Assi ant Secretary '--'