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<br />e Responding to a question from Mr. MacDonald, Mr. Bowers said that the $70,000 <br /> would come out of the replacement reserves. Mr. MacDonald questioned the <br /> viability of DEI and said that it is prudent to have a fall-back proposal. <br /> He noted, however, that some property owners have questioned the need for the <br /> additional services provided by DEI. He suggested that the council may want <br /> to discuss the service package further. He also said that DEI needs the <br /> additional $70,000 because it is not signing enough contracts. <br /> Ms. Ehrman voiced her opposition to the $70,000 contribution to DEI, noting <br /> that there is some danger that DEI will never reach the "trigger point." <br /> Mr. Nicholson noted that if DEI cannot provide its services, the merchants <br /> can always contract with another service provider. He urged the council to <br /> let the merchants decide what service mix, if any, they want. <br /> Mr. Boles said that because DEI has been in this business, it has the best <br /> chance of surviving the transition to privatization. The City should assist <br /> DEI in making the transition for the first year. <br /> Mr. Rutan proposed that the council offer to DEI the transi- <br /> tion to operating incentive as outlined above with no stipula- <br /> tions on its use and including the trigger mechanism proposal. <br /> The proposal carried 5:3, with councilors MacDonald, Ehrman, <br /> and Nicholson voting opposed. <br />e E. Additional Information <br /> Mr. Bowers said that the information requested by Mr. Nicholson outlining <br /> what it would cost to continue the parking district at an increased tax base <br /> rate is available for review. <br /> Regarding Ms. Ehrman's request for additional information about employee <br /> violation of the parking system, Mr. Bowers said that there are approximately <br /> 10,000 employees and non-customer clients downtown. The City sells approxi- <br /> mately 1,350 monthly permits and estimates that 25 percent of the persons <br /> using the free spaces are doing so in violation of the parking policy. He <br /> noted that moving toward an attended system would cut down on abusers. <br /> Mr. Bowers recapped the decisions that had been made thus far: suspend the <br /> ODD, convert ODD services to privatization with DEI to have private service <br /> contracts, convert 3-hour parking program to free customer parking through <br /> validation at a rate of $.75, created attended system in the Overpark, <br /> Parcade, 8th and Willamette, and 8th and Pearl lots; shift to pay boxes on <br /> other large lots; Saturday free in garages; provide DEI with a $70,000 oper- <br /> ating match, if they can make the trigger mechanism. The outlined proposal <br /> would impact the replacement reserve at $92,000. <br /> Mr. Boles said that, with the exception of the "first hour free" component, <br /> he believes that the council has crafted an integrated set of parking propos- <br /> als. The council has demonstrated that it is committed to a graceful transi- <br />e MINUTES--Eugene City Council July 17, 1991 Page 5 <br />