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Chief Tallon stated that the site review and design review had been completed. He related that <br />the project group was recommending the structure size as indicated on the site plan. Regarding <br />concern expressed by some councilors that the building was larger than necessary, he stated that <br />the structure would be built for six people and that currently it was planned that at the initial <br />opening, a fire crew and a medic crew, totaling five people, would reside there. He explained that <br />the plan for three truck bays was intended to accommodate the possibility of additional vehicles in <br />the future. He said that one bay was for a fire truck, one was for a medical vehicle, and one <br />would be used for extra apparatus, which was being kept outside at present. He added that, as <br />the department had continued its partnership with Santa Clara, it was entirely possible that one of <br />the Santa Clara vehicles would eventually be parked at this substation. <br /> <br />Chief Tallon emphasized that this was truly one-time money. He introduced Ms. Hamm to speak <br />on the proposal for financing. <br /> <br />Ms. Hamm reiterated that Station 11 was a priority item on the multi-year financial forecast. She <br />presented two financing options, as presented in the attachment entitled Permanent Fire Station <br />11 Financing Plan, the first of which proposed a general obligation bond (GO bond). Regarding <br />this, she related that there was concern that the City voters would not provide a majority vote for a <br />bond to construct a substation that provided service for a small section of the City. <br /> <br />Ms. Hamm outlined Option B, noting that it would create an ongoing expense of $265,000 per <br />year for ten years to cover the debt service on any City of Eugene bonds. She supported approval <br />of the station, stating that this was an optimal time to take on such a project as construction <br />contracts were favorable and that the annual percentage rate was Iow. <br /> <br />Mayor Torrey called for questions and commentary from the councilors. <br /> <br />Mr. Meisner said that he was prepared to support the financing package in Option B. He <br />expressed his appreciation for the creativity that had gone into it. <br /> <br />Mr. Meisner questioned whether it was realistic to expect $780,000 from the sale of three surplus <br />properties. Ms. Hamm assured him that the department was confident the properties would bring <br />in at least this much. <br /> <br />Ms. Nathanson approved of the substation construction and the financing package outlined in <br />Option B. She affirmed that the fire substation was an asset now and would be into the future. <br />She felt that there was no risk inherent in this plan. <br /> <br />In response to a question from Ms. Nathanson, Mike Penwell, Principal Facilities Project Manager, <br />stated that both houses on the property were in good shape and it was likely that they would be <br />moved to another location rather than razing them. Ms. Nathanson approved of doing so. <br /> <br />Regarding Station 4, which had yet to be sold, Ms. Nathanson asked if there was any merit to <br />delaying the sale so that the worth of the facility would increase. Glen Svendsen, Division <br />Manager/Central Services Facilities, responded that staff had worked with people who had done <br />the pre-bid walk-through and the current plan was to hold an oral auction. He noted that there <br />was a reserve price, should the auction not meet the needed price. <br />Mr. Kelly approved of the site plan and stated his support for the facility. He asked if the funds <br />freed up when the AIRS contribution ended and those from the fire contract savings were from the <br /> <br /> MINUTES--Eugene City Council July 23, 2003 Page 2 <br /> Work Session <br /> <br /> <br />