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Mr. Sercombe answered the question: Why is this incorporation issue important e to Eugene? One reason is the efficiency of providing urban services. There is a decline in the tax dollar. The provision of sewers to the area is a metro- politan issue. If the new city were to form, it would not have the funds to provide sewers or police. There would be a duplication of administrative services. Mr. Sercombe said it was a metropolitan issue because limited grants would go to the area and limited revenues could be collected to provide the services. If the River Road/Santa Clara area spends its money unwisely, it will affect Eugene, Springfield, and Lane County. The second issue is what will happen if the city forms. It will mean that the Metropolitan Plan that took five years to develop and is newly acknowledged by the State will be in limbo. It will require a long amendment to the plan. This will take staff time and resources. It will require a larger urban reserve in another area and force the City to provide services in the new residential area. Mr. Lindberg asked if that was because the proposed city could not provide services as quickly as needed and would push development into Willow Creek. Mr. Sercombe explained the formation of a city takes time. It would require several years before Santa Clara could bond capital intensive projects. He explained that presently there was a moratorium on septic tanks in the River Road/Santa Clara area. A house is only allowed on 1.3 acres. With a sewer system, it could be more densely populated. The annexation process would provide sewer service faster than the incorporation process. Mr. Farah added that Eugene would not have the planning certainty that it has had since e acknowledgement. Mr. Sercombe noted that the new proposed city area in the Metro Plan is primarily residential. In order to support a city, it would have to expand its industrial and commercial base. The most likely area of expansion is west of the industrial triangle area. The last issue was the degradation of the quality of life. If one part of the metro area suffers, it affects the other part. Mr. Lindberg said if the last point is correct, Eugene should look at its pockets of poverty. Mr. Hansen asked what the benefits were to the citizens of Santa Clara. Mr. Sercombe said in incorporation vs. annexation, the benefit of incorporation is that it will allow the provision of police services to the entire area more quickly than a gradual annexation. With the defeat of the Sheriff's levy, they have only State Police protection. Mr. Sercombe said the City is preparing an application to EPA for financing the trunk sewer system. If the incorporation continues, the grant could be denied. It is a grant for $7.5 million. Mr. Hayes referred to the document River Road/Santa Clara Urban Facilities Plan. He said the council, along with Springfield, could pass the joint resolution on the grounds of 1) the Metro Plan; 2) the stipulated agreement e MINUTES--Eugene City Council Dinner Session October 10, 1983 Page 2