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HomeMy WebLinkAboutCCMinutes - 09/27/04 WS MINUTES Eugene City Council Work Session McNutt Room--Eugene City Hall September 27, 2004 5:30 p.m. COUNCILORS PRESENT: Bonny Bettman, George Poling, Nancy Nathanson, Scott Meisner, David Kelly, Betty Taylor, Gary Papd Jennifer Solomon. Council President Bonny Bettman, presiding in the absence of Mayor James D. Torrey, called the meeting of the Eugene City Council to order. A. ITEMS FROM MAYOR, CITY COUNCIL AND CITY MANAGER Ms. Taylor stated she was pleased that City Manager Dennis Taylor, Assistant City Manager Jim Carlson, and a number of City staff were at the recent sustainability conference and she hoped that some of the concepts such as an inventory of the types of jobs that existed in the community and "building on what you have," could be implemented in Eugene. She asked if any activities were occurring around zoning of the railroad property. City Manager Dennis Taylor said that the property was not within the city limits and there were no zoning issues. Mr. Pap6 reminded the council about City Hall Day on October 14, 2004, and said Eugene would be one of Oregon's host cities under the initiative by the League of Oregon Cities (LOC) to inform communities about local government functions. Mr. Meisner thanked those who had attended the dedication of the train depot. He asked the City Manager to extend the council's appreciation to all staff who worked on the project. He stated that the dedication exceeded his expectations and the depot exceeded his hopes. City Manager Dennis Taylor echoed Ms. Taylor's comments regarding the value of the sustainability conference, which had representatives from model communities across the country. He observed that a number of the ideas featured in discussions were consistent with efforts underway in Eugene. He com- mented that staff was developing "Working City," a community television production that would feature various aspects of the City organization and provide information for citizens in a series of broadcasts. He said the first program would be aired on October 6, 2004, at 8 p.m. He asked for feedback from councilors on the program. City Manager Taylor acknowledged a recent incident that raised concerns regarding racial profiling by the Police Department. He said that he and Police Chief Bob Lehner had met with the complainant and representatives of the Eugene-Springfield chapter of the National Association for the Advancement of Colored People (NAACP) and Chief Lehner had contacted the United States Department of Justice (DO J) to determine if the DOJ would investigate allegations around the issue of police profiling and the recent complaint. He said he would continue to report to the council on the matter. MINUTES--Eugene City Council September 27, 2004 Page 1 Work Session Ms. Bettman noted that the Police Commission was conducting community forums on September 28 and September 30, 2004, to obtain public comment on police complaint procedures. She announced that a public meeting and design workshop for the Crest Drive area would be held September 29, 2004. She said that a recent article published by the American Public Health Association confirmed that research had established that traffic calming measures saved children's lives. Mr. Pap6 asked when the racial profiling study being conducted by the Police Commission would be available. City Manager Taylor said that a presentation on findings had been scheduled for the previous week but was cancelled because of the incident he mentioned earlier. He said that the task force working on the report would reconvene to review the findings and a report would be submitted to the Police Commission and made available to the council and the public later in the year; he would keep the council informed about the timeframe and how the report would be used. Ms. Solomon arrived at 5:45 p.m. Mr. Kelly requested a copy of the written request to DOJ to investigate the incident. He commented that many community residents faced discriminatory and arbitrary behavior both from the City organization and the community at-large. He said that while many people had been working on the problem for years, little progress had been made and it was necessary to face up to diversity issues and racism issues. He said he appreciated and supported the work of the committee and the Police Commission but it was critical for both elected and appointed City leaders to set the tone in the community. City Manager Taylor said the City was on record to make organizational changes and pledged his commitment to treat people fairly, both individually and systematically, and work to address the complex societal issue. Mr. Meisner commented that a number of councilors had complained over the years about ;;paper planning" instead of planning that made a real difference. He said the City organization and the community had a habit of studying and processing and talking about diversity, but Eugene was not actually a very tolerant community, and the City organization could model better behavior. He said it was important to voice actively and loudly the City's commitment to make a change. City Manager Taylor reiterated his pledge that he and Chief Lehner would provide leadership on that issue. He thanked the council for raising the issue, the Police Commission for its work, and individuals in the community who had worked with the City on diversity challenges over the years. B. WORK SESSION: Transportation Funding for Pavement Preservation City Manager Taylor recognized the council's interest in finding a sustainable, locally controlled source of funding to address the growing backlog of pavement preservation needs. He introduced Public Works Director Kurt Corey and asked him to discuss the history of the issue and various options available. Mr. Corey provided a brief background of the issue, referring to a report from the Budget Citizens Subcommittee in the fall of 2001 that identified a $67 million backlog of deferred maintenance that was continuing to grow and required a new revenue source to address. He said the committee recommended a combined local option gas tax and transportation system maintenance fee (TSMF) for the purpose of generating a new revenue stream of $9 million per year. He said the council had approved a motor vehicle MINUTES--Eugene City Council September 27, 2004 Page 2 Work Session fuel tax and approved and then repealed a TSMF ordinance after Springfield repealed its TSMF ordinance. He reviewed the existing revenue sources: · Three-cent local option gas tax · Transportation system development charge reimbursement component · Transportation Management Area (TMA) status qualified for additional federal funding · Lane County transfer of Oregon Transportation Investment Act (OTIA lll) funding Mr. Corey said that almost $3.5 million in preservation projects had been placed on the ground during the past three construction seasons and while progress had been made, the backlog continued to grow to about $93 million and funding was $4.5 to $5 million short of the Budget Committee's recommendation each year. He referred to a chart that demonstrated the backlog would reach $180 million over the next ten years if no additional action was taken, while full funding at the $9 million level would reduce the backlog to the level it was at three years ago and continue to reduce it over the next several years. Mr. Corey summarized the policy issues before the council as: 1. Is transportation, capital preservation, and the growing backlog still a priority? 2. If so, is an increase to the local gas tax and/or revisiting the TSMF ordinance an appropriate solu- tion? Mr. Corey reviewed the options set forth in the agenda packet and said that staff recommended the option that combined a two-cent increase to the local gas tax and a TSMF to generate an additional $4.5 million annually for pavement preservation funding. He said the rationale for the staff-recommended option was that it reflected the recommendation of the Budget Committee and provided a balanced approach as everyone who benefited from the transportation system participated in the cost even if they did not purchase gas. He indicated that a TSMF coupled with an increase in the local gas tax would need to generate substantially less money than what was contemplated by the earlier TSMF initiative. Also, trip generation data was more sophisticated and along with pass-by trip methodology could help establish a reasonable cap to address high-end user estimated rates. Mr. Corey said that Springfield was able to meet its current pavement preservation funding needs through the local option gas tax and the OTIA lll transfer from Lane County. He said the Eugene Area Chamber of Commerce's position was that pavement preservation funding remained a top priority for the community and surveyed members had indicated a preference for a gas tax over TSMF. He said that representatives of Springfield and the chamber were present to answer questions. He encouraged the council to adopt the staff recommendation. City Manager Taylor asked the council to provide feedback on whether the issue was still a priority, what action to take, and when to take it. Ms. Solomon expressed disappointment that County representatives were not present as there had been no progress on discussions of countywide funding solutions. She stated her support for the concept of a gas tax and TSMF and directed the council's attention to a message from Bruce Mulligan, lay member of the Budget Committee, supporting the staff recommendation if the revenue generated was specifically focused on the backlog of needed reconstruction and overlay instead of ongoing operations and maintenance. She urged that the amount of any proposed TSMF be clearly communicated to both business and residential MINUTES--Eugene City Council September 27, 2004 Page 3 Work Session taxpayers so they understood the impact. She asked if Springfield intended to propose an increase in its gas tax. Mr. Corey said that Springfield was not proposing any increase. Ms. Taylor questioned why the TSMF issue was before the council again when it was only repealed a year ago and why the Chamber of Commerce was characterized as a major partner in the transportation funding effort as though it was a branch of government. She said she would prefer to see the problem discussed with neighborhood organizations. She also asked how quickly funds could be used if they became available. Mr. Corey said the funds could be immediately used. City Manager Taylor added that there were almost $11 million in contracts that could have been issued if the TSMF had not been repealed. Ms. Taylor remarked that she did not feel the meetings with the County were futile, although follow-up was needed. She said the contention during discussions was that a countywide vehicle registration fee could not be passed. She supported such a fee because people would pay according to the number of vehicles they owned and those who did not own vehicles would not pay anything. She said if all the municipalities in the county voted for a vehicle registration fee it would pass, as two-thirds of residents lived inside an incorpo- rated area. She urged staff to work with other municipalities in the county to support a registration fee and stated she was opposed to a TSMF. She said with sufficient time for public input she would likely support a two-cent gas tax increase. Mr. Meisner also expressed disappointment that the County was not represented. He asked why the incorporated cities of Lane County were not getting part of the County's road funds, which was commensu- rate with business activities, gas sales, market importance, assessed valuation, or population in addition to the OTIA III transfer. He was not optimistic that any progress could be made on that matter. He suggested that the term %treet maintenance fee" should be used in lieu of TSMF to more clearly identify the intent of the fee. Mr. Meisner noted that the progressive community joined the Chamber and County Commissioners in opposition to the TSMF. Mr. Meisner stated he was not prepared to support the staff recommendation until more detailed figures were available to illustrate the impact on business and residential taxpayers. He expressed concern that any action taken by the current council could be affected by future increases in stormwater maintenance fees. He said he could support a two- or three-cent increase in the gas tax. Mr. Poling said he would support the staff recommendation with the understanding that it was a starting point to allow staff to prepare an ordinance with supporting data to begin a community dialogue. He said the issue should be addressed as a pavement preservation project and that is where the fund should be focused, not on street amenities such as benches. He remarked that he was appreciative of the OTIA III funds, but hoped the County would participate in making pavement preservation funding a countywide issue with a countywide solution. He agreed with the points made by Mr. Mulligan in his message. He said that the council needed to take action quickly and cautiously. Mr. Pap~ believed that those projects that were "on the ground" were not adequately "celebrated" with signage to identify them as pavement preservation projects funded by the gas tax. Responding to Ms. Taylor's comment, he said the TSMF was back before the council because the council had hoped when it was repealed that the County would come forward and provide a reasonable solution. He also expressed disappointment in the County's response. He thanked the Chamber of Commerce for its support and agreed MINUTES--Eugene City Council September 27, 2004 Page 4 Work Session with the points made by Mr. Mulligan about dedication of the funds to preservation only. He emphasized the need for an uncomplicated TSMF formula. Mr. Corey noted that the preservation projects did have advisory signs at the beginning and end of each project and he appreciated the feedback that they should be more visible. He related that the County Commissioners had a joint meeting with the Veneta City Council and were unable to attend the work session. Mr. Kelly said that many people did not realize that the historic funding sources for street preservation had diminished or not kept pace with inflation and that property taxes were not used for street maintenance. He commented that he had previously supported the gas tax and TSMF and would likely do so again if the ordinance was substantially similar to that which came before the council in 2002. He cautioned that the motion was the start of the process and it was necessary to obtain community support, particularly from the chamber. Ms. Bettman said that regardless of what terminology was used, the TSMF was a tax and with the $2 million from the existing gas tax would represent a $6.5 million tax increase, the largest burden would fall on residents of the City. She said the issue should go to the ballot. She stated that the City should be run like a household, not a business, and the first priority should be preserving assets instead of expansion. She said she did not believe that asset preservation through road maintenance had been a long-term City priority. She said that she voted against new road projects because they contained funds that could be used to preserve the existing street system. She said the TSMF was repealed the last time because the Chamber of Commerce threatened to put the issue on the ballot. Mr. Poling, seconded by Mr. Pap6, moved to direct the City Manager to re- mm to the City Council prior to the end of the calendar year with draft or- dinances increasing the local motor vehicle fuel tax by an additional two cents (to five cents per gallon) and establishing a Transportation System Maintenance Fee. Mr. Pap6 asked if Springfield had been able to fill the gap in transportation funding with OTIA III funds transferred by the County. Mr. Corey said a major difference was the comparative size of the backlog of deferred maintenance between Springfield and Eugene. Springfield Public Works Director Dan Brown explained that the Springfield City Council had set a target of $1.6 million in additional revenue and $900,000 was to come from the TSMF. He said that federal surface transportation funding combined with OTIA III funds and the County OTIA III transfer funds equaled $900,000 and the target was met. Mr. Pap~, seconded by Ms. Solomon, moved to amend the motion to in- clude direction to staff to return to the City Council with a potential bond- ing proposal as an option to address pavement preservation and the backlog of deferred maintenance. In response to a question from City Manager Taylor, Mr. Pap~ said the funding mechanism should be a general obligation bond. Mr. Kelly said he could not support the amendment because of his concern about adding another fundamen- tal City program to the programs that would be placed before the voters for property tax bonds. MINUTES--Eugene City Council September 27, 2004 Page 5 Work Session Ms. Taylor said she could consider asking the voters if they wanted to support a bond action, but preferred to see new road or road upgrading included. Ms. Bettman said she preferred Mr. Pap6's approach to that of simply raising taxes by increasing the gas tax and charging a fee. She said the community would be included in the discussion of priorities and voters could make their choices. City Manager Taylor said that if the amendment passed, staff would be able to produce materials for a general discussion of bonding vehicles available to address funding needs. Mr. Meisner asked if Mr. Pap6 was proposing a bond alternative for the entire backlog of projects. Mr. Pap6 said that it could be the sole alternative or in combination with the gas tax. He agreed with City Manager Taylor's suggestion for a general discussion of revenue bond approaches. Ms. Taylor said it was important to her that people be able to vote on whatever type of bond was proposed. Mr. Kelly asked what other sources besides property taxes could be used for a revenue bond. Mr. Corey said that revenues from a TSMF or local gas tax could be used. City Manager Taylor said that the bond could also be used to specifically identify those things for which the TSMF or gas tax revenues could be exclusively used. Mr. Kelly stated that he would oppose the amendment as he felt there was less clarity to the direction to staff. Mr. Pap6 said he would not support a bond that was backed by TSMF revenue. He said that bonding was more straightforward and streets were shared by many users and benefited the entire community, not just those with automobiles. Ms. Bettman said she would not support a bond that was supported by a TSMF or any type of fee revenue source. She said that she could only support a bond that allowed voters to vote to incur a tax. She observed that if the amendment failed because it was not sufficiently specific about the revenue sources, the council had an opportunity to defeat the main motion and direct staff to bring back information on different bonding mechanisms for discussion. The motion to amend passed, 5:3; Mr. Kelly, Mr. Meisner, and Ms. Na- thanson voting in opposition. Ms. Nathanson stated that she supported multiple revenue sources wherever possible because it helped balance the burden and the ability to afford certain types of projects or services. She said that if only one or two primary revenue sources were used, a poor year for that type of revenue would jeopardize the programs or projects that were funded. She used sales taxes and property taxes as examples of revenue sources that could be affected by things such as Internet sales and property tax limitations. Ms. Nathanson said broadening revenue across different categories, particularly consumption-based taxes, made it more likely that everyone contributed to the cost of providing public services and facilities. She said she supported multiple revenue sources by continuing the gas tax and adding a TSMF. She also expressed regret that the County and other cities in Lane County were not looking at a countywide vehicle registration fee to continue to broaden the revenue sources. MINUTES--Eugene City Council September 27, 2004 Page 6 Work Session Mr. Kelly cautioned that although there was a compelling need for street preservation, it was necessary to establish expectations. He encouraged staff to make available to the public the map of potential projects and tabulated data. He observed that even in ten years the backlog of projects would still exist, although it would not have increased and in fact would be somewhat reduced. He said he would support the motion, but cautioned staff not to proceed too far without a sense of the positions of the major constituencies. Ms. Solomon asked staff to provide a summary of how effective TSMFs had been in other communities in Oregon. Mr. Meisner remarked that the motion was premature and he would not support it. Ms. Taylor stated that she would not support the motion and preferred to concentrate on efforts to establish a vehicle registration fee. Mr. Pap~ thanked staff for keeping the issue before the council and stressed the need to provide the public with specific information as was done with the parks bond. Ms. Bettman said that she wished other needs, such as social services and education, were as easy to quantify as deteriorating streets. She commented that the County had been generous in its support of City street projects in downtown and the courthouse district. She said that elected officials had been negotiating with the County to obtain substantial funding for new projects and all of those funds were County Road Fund moneys that could be used to preserve the existing street system. She expressed concern that identifying a specific revenue target of $4.5 million would result in a shift of costs to ~average folks" when the chamber negotiated for a cap on high-end users who generated a lot of trips. City Manager Taylor said that if the motion passed it was essential to reach out again to the community and build a new case for revenue. Mr. Meisner declared that there should be no public education to the community before the issue had been returned to the council for a decision. Mr. Kelly said that outreach should focus on stakeholders who were likely to raise significant issues, such as neighborhood groups and the chamber. He agreed with Ms. Bettman's warning regarding the effect of a cap on high-end users. Ms. Taylor said that the need for street repairs had already been conveyed to the community and encouraged staff to discuss methods for funding those repairs with stakeholders. The motion as amended passed, 5:3; Mr. Meisner, Ms. Taylor, and Ms. Bettman voting in opposition. The meeting adjourned at 6:53 p.m. Respectfully submitted, MINUTES--Eugene City Council September 27, 2004 Page 7 Work Session Dennis M. Taylor City Manager (Recorded by Lynn Taylor) MINUTES--Eugene City Council September 27, 2004 Page 8 Work Session