Laserfiche WebLink
<br />M I N U T E S <br /> <br /> <br />Eugene City Council <br />Work Session <br />McNutt Room – City Hall <br />777 Pearl Street—Eugene, Oregon <br /> <br /> May 20, 2009 <br /> 12:00 p.m. <br /> <br />COUNCILORS PRESENT: Chris Pryor, Mike Clark, George Poling, Betty Taylor, Alan Zelenka, <br />Jennifer Solomon, George Brown, Andrea Ortiz. <br /> <br />Ms. Piercy called the work session meeting of the Eugene City Council to order at 12:00 p.m. <br />Ms. Piercy noted that although more information had been expected to be presented regarding the hiring of <br />the new police auditor, council and staff were still performing due diligence and had no new information to <br />present. <br />A. WORK SESSION – Reconsideration of Resolution 4976 Authorizing a Contingent Loan <br />Agreement to Secure a Borrowing by Lane Council of Governments (LCOG). <br />Mr. Zelenka, seconded by Mr. Clark, moved to remove Resolution 4976 from the <br />table for the purposes of further discussion. The motion passed unanimously, 8:0. <br />City Attorney Glen Klein noted that the motion had been automatically removed from the table once the <br />work session had been convened. <br />Mayor Piercy recalled that the motion regarding the resolution had been tabled at the previous work session <br />meeting for the purposes of providing LCOG the opportunity to discuss the matter with those City <br />Councilors who were initially in opposition to the resolution. <br />Mayor Piercy requested that City Manager Jon Ruiz and his staff re-state their positions of support for <br />Resolution 4976 for the benefit of the public and to explain in more detail why it was a risk for the City <br />that was worth taking. <br />Financial Analysis Manager Sue Cutsogeorge noted that Eugene was a member agency of LCOG, which <br />had received similar assistance from other members before. She believed that the risk to the City was <br />reasonable given the proposed financing mechanism, and suggested it was unlikely that a government <br />would default on the debt. <br />Ms. Cutsogeorge, responding to a request from Mayor Piercy for an explanation of the repayment <br />contingencies under the resolution, reported that LCOG would place one year’s worth of loan payments <br />into a reserve fund that could be drawn on in the event that LCOG missed a payment. She further noted <br />that, when depleted, the reserve fund would be replenished by the City as a loan that would need to be <br />repaid by LCOG with interest. Ms. Cutsogeorge also noted that, in a worst-case scenario, the City would <br />also maintain a lien position on the LCOG building and its corresponding assets. <br /> <br /> <br />MINUTES—Eugene City Council May 20, 2009 Page 1 <br /> Work Session <br /> <br />