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e He stated that this particular issue had not been discussed by the Planning Commission. Mr. Gleason stated that the Planning Commission, however, reaffirmed the Bicycle Committee's Master Plan and recommendations. The Planning Commission and the Bicycle Committee are recommending compatible plans. If this were to be sent back to them, it should be sent back with a specific recommendation. Mr. Lindberg agreed that a public hearing should be held. Ms. Schue noted agreement with Mr. Lindberg. This has gone through the established procedures. She knows that it is controversial, and before a decision is made, she would like for public comments to be received. She feels that if someone is willing to give money for the acquisition of the right-of-way, the council should take advantage of this. Ms. Wooten moved, seconded by Ms. Smith, that council hold a public hearing on April 27, 1981, to determine if the Spyglass- Greenview bike connector should be constructed. Mr. Obie asked what would happen if nothing is done. Mr. Gleason responded that the City Council can accept or reject gifts. If nothing is done, it will do nothing but complicate the issue. Roll call vote; motion carried unanimously. VI. UPDATE ON ATTORNEY GENERALIS OPINION AFFECTING CITY'S CETA OPERATION (memo distributed) Mr. Gleason introduced Gary Long, Staff Services Department, to provide a 30-day 4It update on the CETA legal and fiscal questions. Mr. Long stated that on February 11, 1981, staff reported that the Attorney General's opinion indicated that the State CETA program as currently structured is unconstitutional, and that the City had similar constitutional problems. The City Attorney had focused on the prohibition in the Oregon Constitution of cities lending their credit to private companies or corporations. Since the February 11 discussion, staff has modified the current contracts to agent agreements. Staff has worked extensively with other jurisdictions in Oregon to try to develop a coordinated position of state and local prime sponsors. Congressman Weaver's office has been very helpful in getting requests for assistance out to the balance of the Oregon delegation and in arranging a meeting with Department of Labor officials in Washington, DC. City staff has also been working directly with staff in senators Hatfield's and Packwood's offices. However, the President announced on February 18 that the Public Service Employment section of CETA would end in fiscal year 1981-82--which represents $1.7 million of our current $4.2 million--and on March 2, 1981, froze further PSE program expenditures beyond the funding level of that date. Those fiscal decisions forced the City to financially reorganize the current program regardless of the legal issues. Although the legal problem is legiti- mate, City staff has concluded from the Department of Labor meeting that its resolution is long-term as it will require both statutory and regulatory changes. Staff will continue trying to get other prime sponsors and possibly other states to work with us on this problem. The Eugene Private Industry Council will have to playa part in making this work regarding planning and e MINUTES--Eugene City Council March 11, 1981 Page 8