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<br /> e Ms. Decker reviewed Option 1 for addressing sewer and annexation issues in <br /> River Road/Santa Clara. She said Option 1 provides for sewer availability to <br /> all properties in the River Road area in the near future. In addition, <br /> Option 1 gives residents an opportunity to vote on issues, provides for lower <br /> sewer assessments because of the large-scale annexation, generates tax <br /> revenues which could be used to fund police services in the area, and <br /> provides for public hearings before the Eugene Planning Commission, Eugene <br /> City Council, and the Lane County Boundary Commission. Ms. Decker added that <br /> Option 1 would be based on a tax differential system and would provide for a <br /> gradual phase-in to the City tax rate. <br /> Ms. Decker noted that if the council chooses to proceed with Option 1, some <br /> type of fall-back strategies should be developed in case a remonstrance is <br /> filed and the election is lost. She said possible strategies include moving <br /> on to Option 2 and working with the County and Springfield to make the <br /> changes necessary to allow connection of existing development to sewers prior <br /> to annexation or utilizing the election results to process small annexations. <br /> Ms. Decker said staff has also developed an Option lA, which incorporates an <br /> advisory vote conducted by Lane County. She stated that asking Lane County <br /> to schedule such a vote is the only way to allow for a vote prior to the <br /> initiation of the annexation. <br /> Ms. Decker reviewed Option 2, which would: establish the inevitability of <br /> sewers; extend sewer availability to existing development in the near future; <br /> allow the connection schedule to be met; and would separate annexation and <br /> e sewer issues. Ms. Decker mentioned several drawbacks to Option 2. These <br /> included: financing of the sewers would not be backed by the full faith and <br /> credit of the City; other needed urban services would not be provided; and, <br /> the approach would require changes to the Metro Plan and the County Service <br /> District Agreement. Ms. Decker emphasized that Option 2 would provide for <br /> sewer connections for existing development; new development would still <br /> require annexation. <br /> Ms. Decker said staff examined several alternative methods for addressing <br /> sewer and annexation concerns in the River Road/Santa Clara area. These <br /> alternatives included an incremental annexation process, island annexation, <br /> returning River Road/Santa Clara issues to the County, repayment of the grant <br /> from the Environmental Protection Agency, and small area annexation <br /> elections. Ms. Decker said staff did not feel any of these options were <br /> worth pursuing. She reviewed some of the difficulties with these <br /> alternatives (see memorandum dated June 21, 1989). <br /> Terry Smith, Assistant Director of Public Works, described the logic behind <br /> staff's recommendation. He said there are two ways to approach annexation. <br /> One of those is the belief that in order for annexation to succeed, it must <br /> be done at the lowest possible expense. The second approach takes the view <br /> that annexation will succeed if services that people really want are offered <br /> in a cost-effective manner. Mr. Smith said what cities do best is provide <br /> cost-effective services. He said the City's ability to deliver <br /> cost-effective police service is one of its strengths, and should be used in <br /> e MINUTES--Eugene City Council June 21, 1989 Page 3 <br />