CC Minutes - 04/27/09 Meeting - Laserfiche WebLink

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Mr. Schoening said the $2.25 million in stimulus funds were awarded to the City in a competitive process at the state level, which meant there were other projects that were not funded. He said the Oregon Transporta- tion Commission (OTC) had the authority to obligate those funds and he could not imagine a scenario in which the City of Eugene could use the funds for any other purpose. He said the $1 million in transportation enhancement funds was also awarded through a competitive OTC grant process in which other projects were not funded. The $2.8 million earmark from the last federal transportation bill was specifically for the Delta Ponds bridge project and it would likely take congressional action to make them available for another use. Mayor Piercy commented that if the City changed its mind about the project, the funds could be reallocated to another jurisdiction and the 85 jobs associated with the project would be lost to the community. Councilor Brown asked why property owners were unwilling to sell. Mr. Schoening said he was optimistic that the City could reach an agreement with the property owners, but it was a matter of timing. He said in one instance a property owner and tenant both had rights to compensation. In response to questions from Councilor Brown, Mr. Schoening explained that the owner and tenant would be compensated through rent for the staging area during construction; the portions to be acquired were not currently being used. Councilor Zelenka asked how long the project had been in the planning process. Mr. Schoening replied that the project had been in Trans Plan since 1986 and the concept was in bicycle plans before that; it had been in the City’s capital improvement program for four or five years. Councilor Zelenka remarked that the project would create 85 jobs, plus the purchase of materials from local businesses. Mr. Schoening agreed and added that unlike paving projects, which employed a narrow segment of the construction industry, the project would provide a wide range of opportunities for many different types of contractors. Councilor Zelenka asked if the property owner would be paid fair market value. Mr. Schoening said the City would pay fair market value for an easement. Councilor Zelenka asked what constraints were placed on use of the funds. Mr. Schoening said two of the funding sources related to the federal transportation enhancement program, required that a certain portion of funds were spent on projects such as bike paths and historic structures. The remaining funds represented a specific earmark in federal legislation for the project. He confirmed that the funds could not be repro- grammed by the City for another use. Councilor Pryor observed that citizens were often unhappy that restricted funds could not be used for other purposes. He was willing to take two days to explore whether all options for the funds had been explored, but he did not expect there would be a different outcome at the April 29 meeting. Councilor Poling indicated he would not support the motion because it had been planned for 23 years, the funds had gone through a vetting process and granted over a period of time and he did not want to risk losing the funds. He had also received complaints from citizens about the project, but thought that it would enhance bicycle and pedestrian safety in the area and therefore supported the project. Ms. Solomon asked if it was the City’s intent to have the ability to threaten property owners with eminent domain to force them to negotiate. Mr. Schoening said the City had been working with the property owner for some time and the resolution would provide some certainty about acquiring the necessary property rights MINUTES—Eugene City Council April 27, 2009 Page 3