HomeMy WebLinkAboutResolution No. 4599
RESOLUTION NO. 'Is,?
A RESOLUTION APPROVING ALTERNATIVE TO SIX PERCENT IN
LIEU OF TAX PAYMENT ON STEAM SALES FROM THE EUGENE
WATER & ELECTRIC BOARD
The City Council of the City of Eugene finds that:
A. Since 1962, when the Eugene Water and Electric Board (EWEB) acquired its
steam distribution system, steam system sales revenues have been generated by EWEB, resulting
in benefits for the City through payments pursuant to Section 44(4) of the Eugene Charter of
1976.
B. EWEB' s steam operation provides a competitive energy source to downtown
businesses and government agencies, benefitting both downtown and the community at large.
C. Changes in recent years, including load losses exceeding 40%, have made it
difficult for EWEB to continue to remain competitive and also make its payments to the City
under the current formula of six percent of EWEB' s gross steam sales revenues.
D. It would be in the best interest of the City, EWEB, and EWEB's steam system
customers to alter the in lieu of taxes payment terms as of August 1, 1999.
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 a change in the payments received from EWEB pursuant to Section 44(4) of the Eugene
Charter of 1976 as they relate to steam system sales revenues earned by EWEB. The formula to
be applied to all such revenue earned after August 1, 1999, shall be four percent of the gross
revenues from steam system sales.
Section 2. Nothing in this Resolution is intended to affect any ofEWEB's other
payments to the City, including but not limited to payments related to sales of electric power.
The revision of this formula does not establish any precedent for future negotiations.
Section 3. This Resolution shall become effective after the EWEB Board also approves
the change in payments and the City Manager and EWEB General Manager execute a
Memorandum of Understanding consistent with the terms of the Resolution, but no earlier than
August 1, 1999.
The foregoing ReSOIUtionlted this 26th day of July, 1999.
4- tf fY7
ity Recorder