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3. Campaign Update Mr. Heuser reviewed upcoming legislative and congressional races and answered questions. Mr. Kelly asked if there were potentially a significant budget impact to the City of Eugene if the ballot measure ending the State Accident and Insurance Fund (SAIF) Corporation should pass. Mr. Heuser answered that he did not know, but could attempt to find out. Mr. Pap~ said he believed it would have a heavy negative effect on Eugene businesses, and that the Association of Oregon Industries (AOI) had taken a stance against the measure. Mr. Heuser added that staff assessment at the City of Eugene, League of Oregon Cities (LOC), and AOI was that SAIF was structurally sound and its performance optimum, but its management transparency was less than ideal. Mr. Pap~ and Mr. Heuser expressed confidence in Linda Rockland, recently appointed as SAIF Director. At Mr. Kelly's request, Mr. Heuser agreed to continue monitoring the SAIF ballot measure for any financial impact on the City. 4. Preview of 2005 Legislative Session Mr. Meisner said he had reviewed the Legislative Policy Document and believed it was broad enough to stand as a policy statement for the 2005 Oregon legislative session. He said he hoped the council could start working with their legislative delegation on the question of private security contracts under the state contracting law. He said this question had been brought up at the Police Commission recently, in that the law provides for an automatic grant of contracts to qualified rehabilitation facility (QRF) vendors. The result in downtown Eugene was that a rehabilitation agency based in Portland has the contract for parking garage security for much more money than the City was previously paying, with less security. Mr. Kelly added that his understanding was the QRF need not employ its clients who are in rehabilitation under the contract, so the original noble goal of the law is not necessarily being realized except indirectly, in that the agency receives more revenue to serve more clients. Mr. Meisner said there were exemptions in the state contract law for other areas, and he believed security was another area that needed to be looked at for exemption. Mr. Heuser agreed, and said the City of Portland was also interested in the issue, and he could work with their staff on it. Mr. Kelly brought up the issue of ~awkward preemption" being used as a major argument to promote legislative changes to the transportation planning rule as a result of the Jaqua decision, significantly restricting allowed appellants of land use decisions. He said LOC has intervened with an amicus brief in two cases in which the Community Development Committee was notified after the fact, rather than being brought into the discussion. He said he was looking for general guidance in situations when the City of Eugene was taking one position and LOC was taking another, and noted an innate conflict between state land use laws and local control. He was concerned that Eugene policy of preemption could be used as a lever to dramatically change state land use law. Mr. Meisner said he doubted that would occur, but he was basing his opinion on experience with previous Planning Manager Jan Childs, who always made it very clear as the City Council considered bills to consider them in the light of the state system of land use planning, and the council has very consistently backed Senate. Bill 1. He asked Mr. Heuser to look at the language on preemption in the policy document and make sure there is a statement on land use planning arguing against preemption. Mr. Heuser said he MINUTES--Council Committee on August 31, 2004 Page 3 Intergovernmental Relations