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- -------- --- -- --- -- Mr. Holmer also asked about the numbers involved with the lease of The Bon e lot. Mr. Luell said that the lease costs $12,000. Mr. Byrne explained the lease arrangement with the Eugene Hotel, which brings revenue over and above costs. Mr. Gleason said that the agreement is cash positive in the budget. Mr. Ehrman asked about automation increase. Mr. Luell and Mr. Gleason explained the rationale. Mr. Hansen asked for the rationale in assuming responsibility for the Eugene Hotel lot, and both Mr. Luell and Mr. Gleason responded. Ms. Bascom clarified that if the replacement reserve was not $95,000, then the working capital would increase instead of decrease. Ms. Ehrman asked about Item 61739 on page 3 (Contractual Services), and Mr. Luell explained that the City no longer contracts for the enforcement services. Mr. Byrne summarized that the Enterprise Fund 529 has a very low debt ser- vice~ that the bulk of the surface lots are on development sites, and that the Replacement Reserve account is a new fund which provides for future needs. Mr. Luell introduced the information about the Parcade garage by explaining that the Parcade management is the most complex and incorporates all of the functions served by the Enterprise Fund 522. Mr. Holmer asked if the figures included the City rental of space, and e Mr. Gleason said that this has been a low-budget lease, which will be upgraded and show up as income. Mr. Byrne explained that the Parcade only has 180 free spaces available (40 percent), while the rest are permit or fee parking spaces. The public perceives that the facility is 100 percent free parking. The commercial spaces are all leased and $195,000 represents a 100 percent rental at marketable rates. Ms. Wooten asked if the City had responded to the letter from Leah Jacobs regarding the lease agreement with the new tenant in the building. Mr. Byrne said that the other patrons were polled about the proposed tenant mix, and Ms. Jacobs was of the minority opinion; the other tenants approved. Mr. Rutan asked about the debt service of $274,000. Mr. Wong replied that this represents the check written for principal and interest. As Mr. Luell reviewed the Fund Resources and Requirements and Department Expenditure Summary, discussion was held. Ms. Wooten asked what security was provided in the Parcade. Mr. Luell said that 20 hours per day for both the Parcade and the Overpark are provided. There will be a change in FY87, in that instead of a normal security contract, the contractor will provide main- tenance and security at $6 per hour. The public employees provide tenant improvements, plumbing, electrical, mechanical, and maintenance services. Mr. Gleason provided the rationale for the employees required for the build- ing. He also explained that Parks and Recreation job classifications are more appropriate for maintenance work than Public Works. In response to Mayor Obie's question, Mr. Gleason explained personnel transfer accounts. e MINUTES--City Council Work Session June 16, 1986 Page 3