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HomeMy WebLinkAboutCCMinutes - 12/06/04 Mtg MINUTES Eugene City Council Regular Session Council Chamber--City Hall December 6, 2004 7:30 p.m. COUNCILORS PRESENT: Bonny Bettman, David Kelly, Betty Taylor, Jennifer Solomon, Scott Meisner, Gary Pap~, Nancy Nathanson. COUNCILORS ABSENT: George Poling. Mayor James D. Torrey called the meeting of the Eugene City Council to order. He explained that the agenda had been adjusted to ensure that all of the public hearings would be held. 1. PUBLIC FORUM Mayor Torrey reviewed the rules of the Public Forum. John Brown, 1260 Charnelton Street, speaking on behalf of himself, thanked the outgoing Mayor and councilors for all of their work. He stressed that people speaking in the Public Forum were testifying because they cared about the community. He said people live in Eugene because it was a great place through ~no small result of the efforts" of the City Council. He conveyed his gratitude to those who were leaving and for those who agreed to continue conducting the affairs of City government. Gary Nauta, 2300 Oakmont Way, President of the Eugene Fire Fighters' Association, wished to remind the council as it proceeded into the next budget cycle that the Valley River fire station remained without an engine company. He called the situation an ~unacceptable risk" to the taxpayers of Eugene. He recalled that Fire Chief Tom Tallon presented a memorandum to the City Council on December 3, 2003, which conveyed the findings of the Standards of Coverage Document and unambiguously stated that elimination of the engine company at that station increased response time in that area to an unacceptable level. He reiterated the fire union's concurrence with the findings. He noted that Councilor Pap~ had moved to instruct staff to bring funding options for the engine company for the fiscal year (FY) 20005 budget process and the motion had passed unanimously, 8:0, at the same December 3 meeting. He said he was curious as to what those options were, given that the budget cycle for FY06 was about to begin. He underscored that restoration of funding for the Valley River engine company was the number one priority for both the Eugene Fire and Emergency Services Department and the union. David Helton, 878 Glory Street, a member of the Community Center for the Performing Arts (CCPA) which operates the WOW Hall, reiterated the CCPA's desire to purchase the gravel lot behind the WOW Hall from the City. He noted that the City received one proposal, among others, that would use two parking spots in that lot. He said this proposal would eliminate the WOW Hall's ability to bring in busses and trucks belonging to performing artists and would threaten the viability of the hall as an entertainment venue. MINUTES--Eugene City Council December 6, 2004 Page 1 Regular Session Mr. Helton repeated CCPA concerns regarding potential noise conflicts that could arise between a residential structure and the hall. He encouraged the City to work with the hall, as it was an existing use. Ellen Hyman, 3863 Dorchester Lane, spoke regarding the proposed land swap in Santa Clara. She said she assumed that the intention of the urban growth boundary (UGB) was to encourage smart growth and to control urban sprawl. She asserted that having the boundary forced officials, developers, and citizens to carefully consider decisions that could have irreversible repercussions. She understood changes to the UGB in the Santa Clara area were not slated to be considered until 2017. As such, she was deeply concerned that changing the UGB to benefit developers and city coffers at the expense of area residents set a bad precedent. She referred to an Eco-Northwest report, which alleged that the City would lose the ability to regulate development at the Laurel Hill site with the land swap. Ms. Hyman said it took 500 years to make one inch of top soil. She questioned the wisdom of sacrificing good farmland. Ms. Hyman remarked that it seemed the McDougal land swap was a ~done deal" and had been in the works for years. She thought it looked ~underhanded." She suggested the City purchase the Santa Clara Elementary School site for park development instead. She noted that, should the land swap go through, there would be no funding for park amenities. Additionally, she questioned the wisdom of having staff create a parks survey for area residents. She submitted her testimony in writing. Yanessa Fadjo, 26904 High Pass Road, spoke on behalf of the Santa Clara Committee for Sensible Parks and Open Spaces (SCCSPOS). She acknowledged that she did not live by the land proposed to be swapped for land in the City and developed, but felt it was a move ~in the wrong direction." She explained that she was working to become a local, small-scale farmer, having chosen this area of the country because of rich agricultural land and the strength of the locally grown food movement. She had been shocked to learn that the UGB would be altered 12 years earlier than scheduled in order to allow development on Class 1 soils. She thought the loss of this much farm land would set a %cary precedent." She had personally experienced the frustration of coaxing fertility out of lesser soils. She opined that covering prime soils with a housing development outside the UGB would circumvent State planning goals. She referred to Goal 14, which determined that no development should occur on Class 1 soils unless less desirable soil was not available. Ms. Fadjo added that, although she could not speak to the proposed 77-acre park personally, she had met with many Santa Clara residents through her work in the SCCSPOS and none were willing to agree to such a park if it included a 1,000 home development. She stated that the committee's petition now had over 900 signatures in opposition to the development. Randall J. Collis, 2176 Prestwich Place, stated that he had been chairman of the Board of the Oregon Festival of American Music (OFAM) for six years. He related that the OFAM Board had been discussing the potential outright purchase of the Shedd Auditorium, formerly the Baptist Church. He said the purchase would include the parking lot on 8th Avenue and High Street. It had been brought to the attention of the OFAM Board that the City had indicated interest in developing the parking lot as part of its Great Streets project. He stressed the importance of the parking lot to the purchase as OFAM wished to expand its Oregon Music Institute. He noted that the board and City staff had discussed possible alternatives and had not found one that was mutually agreeable at this point. He conveyed that the OFAM Board would only be open to contiguous land swaps. MINUTES--Eugene City Council December 6, 2004 Page 2 Regular Session Bob Cassidy, 1401 East 27th Avenue, expressed his unhappiness in the City's decision to use tax dollars to "subsidize the profit-making hospital." He felt a move to the Eugene Water & Electric Board site would ultimately result in the ratepayers subsidizing the move. He opined that the EWEB headquarters would be better used for a City Hall. Zachary Vishanoff, Patterson Street, thought the Prisoner Of War/Missing in Action (POW/MIA) flag should fly year-round on top of Skinner's Butte and not just on holidays. Mr. Vishanoff shared that he had participated in planning sessions regarding the EWEB site and no one had suggested locating a large hospital at the site. He thought the hospital move would benefit from more citizen input. Mr. Vishanoff suggested the City inventory Eugene's empty storefronts. Mr. Vishanoff opposed razing either the Civic Stadium or the old Agate School. He recommended the new University of Oregon (UO) arena should include design input from students and members of the public. Rob Handy, 455-½ River Road, related that the Oregon Department of Transportation (ODOT) had produced its West Eugene Parkway (WEP) evaluation report. He said the report indicated that the cost had nearly doubled to $169 million. He averred that the report also indicated that nearly twice the original estimate of wetlands acreage would have to be mitigated, that an interchange would be built instead of an intersection, and that maintenance of the WEP east of the Beltline Road would fall onto the shoulders of the City. He opined that little remained the same from the old plan. He felt it merited a new discussion, especially given that the parkway was "$152 million short." He noted that Mayor Torrey had called Beltline Road the City's # 1 transportation funding need at a council meeting in September. He asked the councilors to consider how their constituents felt about transportation needs. He commended the Mayor for the good deeds he had done for the children of the City. He asked the Mayor if his legacy would be that of "saddling the community with a $169 million boondoggle." Dave Hunt, 6208 North Ensign Street, Portland, spoke regarding the proposal to deepen the Columbia River Channel. He acknowledged that it was not an immediate concern of the City, though Lane County was the third largest user of the channel in the State of Oregon. He reported that every $1 invested in deepening the channel from 40 to 43 feet deep would result in a $1.66 savings to local farmers. He underscored that the project had passed all of its environmental reviews and State funding from both Oregon and Washington had been appropriated. He said the last piece to fall into place was the federal funding and expressed hope that the City Council would join many cities in passing a resolution in support of the project. He averred the project would help to keep the local economy viable in a world market. Mayor Torrey closed the Public Forum and called on the council for responses and comments. Councilor Pap~ thanked everyone for testifying, especially given that it was a wet night. He agreed with comments made by Councilor Kelly regarding the need for park parity in the Santa Clara area. Noting that a community park would need approximately 40 acres, he welcomed proposals from those opposed to the current proposal. He said the Santa Clara Elementary School property was not large enough to meet the needs of the community for a park. MINUTES--Eugene City Council December 6, 2004 Page 3 Regular Session Councilor Papd supported reestablishment of the engine company for Station 9. Councilor Taylor concurred with the remarks of Councilor Papd. Regarding the request from the OFAM Board, Councilor Taylor asked if staff was working on the item. Additionally, she conveyed her hope that the City would work to protect the cultural asset to the community that the WOW Hall represented. She commented that such cultural assets were part of a good downtown. Councilor Taylor supported protection of the farmland outside of Santa Clara as it was important to the future of the community. Councilor Kelly thanked everyone for taking the time to speak to the council. Regarding the requests by OFAM and the WOW Hall, he said he was nervous that the City would be faced with the situation wherein one community good won out over another community good. As he had served on the Housing Policy Board (HPB), he recognized the need for low-income housing. He asked staff to look into ways to meet the needs of both the City's projects and the needs of the performing arts organizations. Councilor Kelly conveyed his distress that no funding alternatives had been found for Station 9. Continuing, Councilor Kelly requested copies of the ODOT report on the WEP. Councilor Solomon asked for more details on the OFAM issue. Regarding the WEP, Councilor Solomon noted that her ward, Ward 6, and the City had voted in support of the WEP twice. She asked opponents to respect that vote and redirect their energies to other issues in the City of which there was no shortage. Councilor Bettman thanked everyone for coming down and providing input. She opined that staff was working at cross-purposes regarding the WOW Hall. She had thought that the council had provided direction that the WOW Hall should not be impacted. Regarding the OFAM request, she thought another site should be found for courthouse parking. Councilor Bettman asked that copies of the WEP reevaluation report be provided prior to the Metropolitan Policy Committee (MPC) meeting scheduled for December 9. Councilor Bettman agreed that Santa Clara needed a park, but opined that this goal could be met without the proposed land swap. She asserted that 30 percent of the job growth in the region had been attributed to agriculture. Mayor Torrey recommended to the City Manager that funding be found for the engine company at Station 9. Regarding comments about the EWEB site, Mayor Torrey clarified that EWEB paid no property taxes. He thought a hospital would pay taxes that would be used for transportation improvements that the hospital needed. He noted that using the EWEB site for a new City Hall would mean that the property would continue to pay no taxes. He remained convinced that the highest and best use of the property was not as EWEB's manufacturing or industrial site. He thought the building could be used for any number of reasons, MINUTES--Eugene City Council December 6, 2004 Page 4 Regular Session but hoped that unanimous support of the City Council and the agreement of the EWEB Board meant the hospital project would move forward. 2. CONSENT CALENDAR A. Approval of City Council Minutes - October 25, 2004, Work Session - October 27, 2004, Work Session B. Approval of Tentative Working Agenda C. Resolution 4817 Authorizing the Issuance and Sale of Electric Utility System Revenue Bonds in the Aggregate Principal Amount Not to Exceed $15,400,000 for the Purposes of Financing Electric Utility D. Adoption of 2005 Legislative Policies Document E. Appointment to the Police Commission The City Council approved the Consent Calendar during the earlier work session. 3. PUBLIC HEARING: An Ordinance Concerning Cell Towers, and Amending Section 9.9750 of the Eugene Code, 1971 Mayor Torrey explained that this was a continuation of a public hearing opened on November 22, 2004. City Manager Dennis Taylor asked City Attorney Jerry Lidz to provide a brief overview of the topic. Mr. Lidz stated that in April 2004, the City Council asked staff to come back with amendments to the Cell Tower Citing Ordinance. He highlighted the amendments, noting they were delineated in the agenda packet. Mayor Torrey outlined the procedure for testimony. He opened the public hearing. Dave Barta, 1244 Walnut Street, director of Telecommunications Services for the University of Oregon, conveyed the University's concern that setback provisions in the ordinance could inadvertently have a negative impact on Wi-Fi and WiMax wireless technologies that were "about to burst on the scene." He explained that Wi-Fi was the short-range wireless internet connectivity service found in airports, some coffee shops, some 4J School District classrooms, and in some areas of the UO campus. He noted that all new laptop computers come with Wi-Fi installed. He further explained that WiMax was the "outside" version of Wi-Fi. He said a density of one or two per block could blanket an area with Broadband and any subscriber with a laptop could easily access it. He underscored the importance of this use to the University as it allowed students and faculty to access course management systems, streaming video, and online research and email, which had fast become an important component of the higher education teaching model at the UO and its competitor institutions. Mr. Barta noted that more than 80 percent of the students lived off campus. He thought Wi-Fi and WiMax technologies would provide internet connectivity to all students. He explained that the code as proposed would dictate that every installation of Wi-Fi and WiMax facilities that could not be located on an existing MINUTES--Eugene City Council December 6, 2004 Page 5 Regular Session pole would require a variance. He predicted the additional process and expense could delay or prevent entirely the implementation of this technology in significant parts of the community. In closing, Mr. Barta stressed that RF radiation issues were related to placement of antennae and not cell towers. He said attempting to take this into account would require a more comprehensive change in the code than presented in the ordinance. He conveyed the general support of the University for the City's assessment of sufficient fees to evaluate the coverage needs of applicants and said it would welcome a review of the city's overarching wireless coverage needs. Douglas P. Evans, 1500 Northeast Irving Street, Portland, director of development for Team Mobile Wireless, submitted a letter to the City Council outlining the reasons he thought the proposed changes to the ordinance were fundamentally flawed. He stated that industry representatives would favor the proposal that was forwarded by the Planning Commission. He called the ordinance before the council a %ontinuation of the piecemeal approach" and predicted that it would cause further problems in time. He felt the wireless industry had been singled out for onerous, expensive, and time-consuming regulation that was not applied to similarly situated providers, though it had invested over $5 million in the community. He commented that the wireless industry was required to pay to prove no harm every time it needed to make a change. Ron Fowler, 6940 Southwest Dale Avenue, Beaverton, consultant for Cingular Wireless, expressed support for the recommendation from the Planning Commission and support for postponement of further amendments. He thought the ordinance as currently presented was difficult for staff to apply and difficult for the industry to comply with. He conveyed the willingness on the part of industry representatives to participate on a task force with concerned neighbors and Planning staff to review it and come up with a good and workable code. He asserted that wireless phones were rapidly replacing home phones and with this change would come the need for more neighborhood cell facilities. He noted that many cities embraced the location of communication sites on school grounds and home properties. He did not agree with the setbacks as proposed. He opined that everyone would win with a good code, but that the code as proposed was a ;;bad one." He remarked that wireless representatives were not the ;;villains" but were merely representing the communication method of the future. Michael Smith, 685 Trail Avenue, of Silke Communications, asked the council to take into consideration the recommendation that came from the Planning Commission. He recommended a ;~total rewrite" of the ordinance as proposed. He also suggested the ordinance be closely scrutinized in order to avoid possible invocation of any Measure 37 claims. Ed Fournier, 25977 Southwest Canyon Creek Road, Wilsonville, consultant for Verizon Wireless, concurred with previous testimony. He supported a full rewrite of the code, specifically with regard to setbacks, as proposed setbacks would effectively prohibit most providers from expanding. He averred that the underlying concerns upon which the proposed setbacks were founded had never been outlined. As such, he surmised the setbacks resulted from concerns for health. He reiterated that the 1996 Federal Telecommunications Act had prohibited this concern from being included in part of the basis for denial. He also concurred that putting a variance procedure into place would lead to the variance procedure becoming the rule and not the exception. He stated that Oregon did not have a State Radio Frequency Engineer. He thought the best action for the community, the industry, and citizens would be the formation of a task force. Zachary ¥ishanoff, Patterson Street, thought passage of the ordinance would not succeed in keeping the telecommunications situation under control. He felt the hospital building alone would deploy ;;all sorts of MINUTES--Eugene City Council December 6, 2004 Page 6 Regular Session state of the art equipment." He thought the community had provided input. He supported getting an independent expert to provide input. He opined that the City was doing ;;way too little" and that %lectro- smog" was an emerging issue. Rob Handy, 455-½ River Road, averred that a healthy economy arose from healthy neighborhoods. He said often a property owner's only investment was in his or her home. He suggested deploying a less stringent setback and eliminating the variance procedure. He supported having an independent technical review of applications. He said, in all fairness, the impact on the livability of neighborhoods, potential impacts on health, and the potential burden to taxpayers and their investments must be considered. Mona Lindstromberg, 87140 Territorial Road, Veneta, recalled that she and Martha Johnson had submitted a comprehensive review of the current cell tower code on October 2, 2002, including their suggestion for a model ordinance. She said after reviewing the minutes from the hearing on the Planning Commission she looked back in her own research to determine the genesis of the 1,000 foot setback for cell towers from schools. She provided an email to staff from the Planning Director from Concord, Massachusetts as well as its current telecommunications bylaws. She thought the bylaws did much to lay the foundation for process and rationale for its regulations. Ms. Lindstromberg felt the setbacks from homes and schools and meaningful use of the independent technical review provision would provide a ~quick fix" to the ordinances governing cell tower placement that the City Council sought. However, she said the proposed variance procedure would require due diligence by Planning staff to ensure the needs of neighbors most impacted would be served. She related that she asked the City to approve the change from ~may' to ~shall' regarding independent review and to incorporate a section similar to that of Concord, Massachusetts, regarding documentation needed for technical review of an application. She asserted that there were independent radio frequency engineers available via the internet. She noted that the 4J School District already had a setback rule. She submitted testimony in writing. Ms. Lindstromberg cited a court case from Hillsboro, Oregon, in which the City had been able to write stringent rules regarding cell tower placement. Martha Johnson, 110 East Hilliard Lane, related that she and her neighbors had spent more than two years and several thousand dollars fighting the placement of a cell tower in their River Road neighborhood. She said she had a 100-foot tower within 150 feet of her house. She did not want other homeowners to face the same fight with the same outcome. She asserted that the current code left homeowners in mixed-use areas vulnerable to property devaluation, which was why she sought setbacks in the code. She felt allowing a variance rendered the setbacks meaningless. She noted that the City Attorney and the Planning Commission concurred that the variance would likely become a standard path taken to place a cell tower. She had thought the 800-foot number for a setback would be negotiated down. She sought to have a meaningful setback without a variance provision that gave the industry the green light to site towers anywhere in town. She wished the telecommunications industry would work as hard to be a good neighbor as it did to maximize its profits. Ms. Johnson approved ofthe independent technical review. She felt a lack of independent review would present conflicts of interest. She supported returning the ordinance to the Planning Commission for a comprehensive rewrite. MINUTES--Eugene City Council December 6, 2004 Page 7 Regular Session Kevin Matthews, PO Box 1588, president of Friends of Eugene, said he was a customer of the wireless industry. He felt one could look around the City of Eugene and see the negative visual impacts of cell towers. He recommended passage of a version of these amendments with strict setbacks and requirements for independent review that would ~hold the fort" and maintain the interests of the community while the ordinance was reviewed and comprehensively revised. Mayor Torrey closed the public hearing and opened the floor for council questions and comments. Councilor Nathanson said she was most concerned that there was not specific evidence indicating that citizens opposed wireless services. In fact, she observed, residents of the City of Eugene wanted the services. She indicated she would have liked to have seen a concise summary as to what the shortcomings of local wireless coverage were if such evidence was available. She noted there were ;;dead zones" in the city. Mr. Lidz responded that such shortcomings were unknown. Councilor Nathanson said the existing ordinance worked to encourage collocation of wireless services on cell towers. She asked if there had been any disagreement that the ordinance had worked in this capacity. Planning Division Manager, Susan Muir, replied that it had worked. Councilor Pap6 asked if cell towers presented health and safety issues. Councilor Nathanson reiterated that municipal governments were barred from considering health and safety concerns in regulations as it was the specific domain of the FCC. Councilor Pap6 surmised that the real issue was the esthetic degradation of neighborhoods. He wondered if the ordinance would force antennae to observe the setback. He could not support the ordinance as it was written. Councilor Pap6 asked if the ordinance would raise issues related to Ballot Measure 37. Mr. Lidz responded that it was possible, depending on circumstances. Councilor Kelly suggested the council explore a shorter setback with no variances. He did not think adequate consideration could be given to defining the setback prior to December 8. He clarified, for Councilor Pap6, that the ordinance was specific to cell towers and did not apply to antennae. Councilor Kelly did not interpret the proposed code as mandating technical review. He stated that the council had asked for this requirement and asked for clarification. To him, it seemed the ordinance only directed who should pay for such review. He supported a broader review of the ordinances governing cell towers. In closing, Councilor Kelly said he had not previously heard that the ordinance would affect Wi-Fi and WiMax services. He asked staff to speak to this at a later date. Councilor Bettman echoed Councilor Kelly's comments. She requested staff to reword Section 11 so that it was clear that the technical review was a requirement in every case. She also asked that a motion be crafted to circumscribe the changes that should be made. She thought Councilor Nathanson's comments were succinct, especially regarding the identification of capacity gaps. She averred that the council did not speak of the cell towers in terms of health issues, but rather focused largely on the effects that cell towers would have on property values, and their dangers as attractive nuisances. MINUTES--Eugene City Council December 6, 2004 Page 8 Regular Session Councilor Meisner, responding to comments made that suggested drive-through fast food restaurants and gas stations were not subject to the same regulations as cell towers, said many neighborhoods would likely support regulating the location of such businesses. Councilor Meisner noted that the council had discussed the Planning Division work plan and the staff limitations of that division. He pointed out that Option 3 included a high-priority work program on this issue with full funding and asked for a sense of what was being proposed. He wanted to know what the work program was comprised of and what it would cost. Councilor Meisner remarked that he had spent time in Concord, Massachusetts, and observed that Concord was geographically compact and surrounded by other communities and should it ban outright the placement of cell towers if would not likely lose any coverage. He asked staff to look into the comparability of the cities of Eugene and Concord. Councilor Nathanson commented that some public agencies and cities actively encourage the placement of towers on public property as it was a revenue source. Councilor Bettman asked, regarding the regulation of interference for public safety purposes, if the federal government did a ~good job" and whether there were problems with interference with public safety radios. Mr. Lidz said he was relatively certain there were no problems. City Manager Taylor added that there were no complaints from the Police and Fire departments during his tenure. Councilor Bettman opined that it would have been better to have another work session on the item in order for the council to be apprised of the issues and allow for better discussion in order to provide staff better direction to modify the provisions. City Manager Taylor responded that the council had given specific directions for what information was needed and this was the information before the council. Mayor Torrey commented that the people who own the airways were protective of that right and were vociferous to the FCC when encroached upon. He did not think it merited concern on the part of the council. Mayor Torrey called for a break at 9:02 p.m. The council reconvened at 9:10 p.m. 4. PUBLIC HEARING: An Ordinance Concerning Motor Vehicle Fuel Dealer's Business Licenses; and Amending Sections 3.467, 3.474, 3.480, 3.483, and 3.484 of the Eugene Code, 1971 City Manager Taylor explained this was a subject that had been under considerable discussion and staff would be available to respond to questions after the hearing. Mayor Torrey opened the public hearing. Jeff Green, 2111 West 12th Avenue, Apartment 12, provided neutral testimony. He instructed the councilors, should they ultimately approve the ordinance, to spend the money well by testing the soils and base rock underneath roads and building roads that would endure for longer. He explained that he had been a laboratory technician working with soils who had tested many of the local streets of Eugene and MINUTES--Eugene City Council December 6, 2004 Page 9 Regular Session Springfield. He said Eugene streets were built for a 15-year life, using T-99, while Springfield used the T- 180 process which provided a 20-year life. He related that he spoke with a City of Eugene engineer and the engineer indicated he did not know why the T-99 process was being employed. He opposed "throwing money" into building streets for the shorter term. He suggested the City use concrete, which provided streets with a 50-year life. He admonished the City to fix the streets properly. Murphy McHugh, 1848 Russet Drive, explained that he was a gasoline station owner. He related that the last gas tax caused him to lose 10 to 15 percent of his business, which resulted in loss of employment and reductions in hours for his employees. He pointed out that many people from rural communities came to the City of Eugene to shop and would fill their gas tanks up prior to leaving. He predicted the increase in gas tax would force those people to purchase gasoline in Springfield and other communities. He suggested charging. 1 percent to all of the businesses in Eugene, rather than singling out the gas stations. He projected that another increase in the gas tax would force him to let another employee go. Jozef Zdzienicki, 1025 Taylor Street, submitted a letter of testimony from his "mate." He provided three examples of alleged misuse of public money for council consideration, as follows: 1) In July 2002, four Public Works employees poured 100 square feet of concrete for four hours for the owner of the Chambers house. He shared that he and his boss had poured 600 square feet of slab with two sets of stairs in it on that same day. 2) In September, 2002, while relandscaping a yard at 23rd Avenue and Agate Street, two employees of the Division of Parks and Open Space would visit for 45-minutes and then would utilize leaf blowers for 10 minutes at the park across the street. He witnessed this twice a week for the three and a half weeks he worked on the landscaping project. 3) In February 2004, nine Public Works employees with seven vehicles poured 60 feet of sidewalk near East Amazon Street and were present for an entire morning. He asked the council to "set its house in order" prior to taxing the public more. Aaron Johnson, 2672 Canterbury Street, opined that a government that stopped working for its people was no longer a government for the people but a government that "enslaved its people" for its own benefit and growth. He felt the City continued to ask for money though people keep saying no to taxes. He said, as a manager, he was bound by a budget and the City should be, too. Mr. Johnson stated that only three independent gas stations were left. He related that he employed 22 people in 2003, but had to lay off three in 2004. Should the ordinance be approved, he predicted he would be forced to lay off more employees. He opined that excessive fees were killing the small station operators. He felt the City provided tax breaks to developers for a "failed downtown" and managed to find $28 million to be spent on a police station. He said the current taxes took $300 per day from his business. He felt this drove 10 percent of his business away. He agreed the fee had a "noble cause" attached to it, but opined it would be a burden that would result in the death of unskilled jobs. Steve O'Toole, 7070 Southwest Fir Loop, Suite 150, Tigard, executive director of the Petroleum Association of Oregon, primarily representing small, independent Oregon businesses involved in commercial and retail petroleum sales, conveyed the organization's opposition to the gas taxes. He stated that the association would support an equitable system on the State level that would provide continuous jurisdiction between local entities. He underscored that local competitive factors affected the purchasing habits of the motoring public. He predicted that Eugene drivers would go elsewhere to purchase gasoline should the ordinance be passed and would hurt not only the local gasoline proprietors, but the city and its residents. He MINUTES--Eugene City Council December 6, 2004 Page 10 Regular Session thought the ordinance was not a solution and would only set up a perpetual vicious cycle of ever-increasing tax needs. Terry Connolly, 1401 Willamette Street, conveyed the Eugene Area Chamber of Commerce's conditional support of the ordinance. He agreed the City needed to address its backlog of maintenance projects. However, he acknowledged that finding consensus on how to pay for the $94 million backlog had presented a challenge. He stated that the chamber, faced with a choice of standing aside and doing nothing or supporting an increase in the local motor vehicle fuel tax, would offer its tepid support for the ordinance. The chamber felt it imperative that the City ordinance have an 80-percent refund for diesel users consistent with that of the City of Springfield; that the revenue from the tax be restricted to street maintenance and preservation between the curbs and nothing else; and third, street maintenance must be contracted out to the private sector to insure the best use of the money. Additionally, he said the chamber's support was conditioned on City leaders demonstrating their commitment to addressing the backlog problem by redirecting resources from lower priority services and lobbying Congress for the reauthorization of Lane County's federal forest payments. Zachary Vishanoff, Patterson Street, did not think the tax was needed. He pointed out that the gas tax would be incorporated into the cost of food, as people would use motorized vehicles to transport it. He predicted poor families would be forced to spend more on gasoline for their cars and less on food. Mr. Vishanoff expressed concern that the University of Oregon's proposed arena project would greatly increase wear on local streets. He also suggested that Lane Transit District (LTD) buses damaged roads and should spend more money to preserve them. Mr. Vishanoff reiterated his concerns regarding smart growth and suggested that local roads would be governed by a %uper surveillance system." E. W. Walton, 2427 Adams Street, said the last increase in fuel costs forced his wife and him to plan their travel and also to purchase an electric scooter. He testified that should this tax be enacted he would shop in the city of Springfield to save money. He predicted the tax would place the approximately 30 service stations of Eugene in jeopardy. He suggested the City use some of the $28 million earmarked for a new police station for road maintenance. In closing, he provided a list of current fuel prices for the cities of Eugene and Springfield. David G. Hinkley, 1350 Lawrence Street, Apartment 1, opposed the ordinance. He said Eugene service stations would no longer be competitive with the outlying communities. He agreed that transportation maintenance was a problem and recommended the council revisit the transportation system maintenance fee. He reminded the council that it had adopted such a fee but repealed it prior to collecting any of the revenue because of opposition from the business community. He felt the fee should be established at approximately $1 per trip for both businesses and residents. Rick Mikesell, 3015 Salem Avenue Southeast, Albany, a regional distributor of petroleum products, registered his opposition to the ordinance as it would place Eugene service stations at a competitive disadvantage compared to the other communities in the area. He predicted the City would drive such small businesses outside of the city limits. He pointed out that the ordinance also asked service stations to be a tax collector and said taxes, when paid with a credit card, would cost the service stations to collect. He MINUTES--Eugene City Council December 6, 2004 Page 11 Regular Session estimated that this ordinance would cost the average service station owner one-third of his or her gross profit. Kevin Matthews, PO Box 1588, president of the Friends of Eugene, said his organization supported funding mechanisms that connected transportation to its users. He felt the City was pressing ahead with the West Eugene Parkway although the State had indicated that some of the maintenance costs would be assigned to the City. He said the Friends of Eugene could not accept a gas tax as part of a rational transportation funding process. Ron Tyree, 4000 Spring Boulevard, was owner of Tyree Oil, a local company that provided over 50 jobs. He objected to the inclusion of diesel fuel in the ordinance, although he appreciated the need to improve roads. He said his company was the only oil distributor located within the City limits of Eugene. He related that he paid $100,000 per year in Public Utility Commission road mile taxes for his trucks, which equated to 58 cents per gallon for State taxes alone on top of the 24-cent federal tax. He felt this was his fair share. He stated that while his trucks did five percent of the driving in Eugene, 95 percent of the fuel was purchased there and he was paying the three-cent-per-gallon City gas tax on it. He thought more tax could potentially drive his business to relocate or, at the very least, to purchase fuel in Springfield. He opined that taxes to fund road improvements should not overburden one type of business. Mayor Torrey closed the public hearing and called for questions and comments from the council. Councilor Kelly asked staff to clarify whether the existing code exempted bio-diesel fuel. He was also unclear as to whether Mr. Tyree was referring to the fuel he was transporting or to the fuel the trucks themselves burned. He was a little confused by the requests for exemption for diesel fuel. He expressed appreciation for Mr. Green's testimony and asked staff for a memorandum regarding paving standards. He also appreciated Mr. Mikesell's testimony regarding competitors in the two different cities but within close proximity of one another. He emphasized the need to find a way to improve the roads. Councilor Bettman opposed the ordinance. She underscored her sense that what was needed was fiscal discipline. She reiterated that systems development charges (SDCs) were "artificially low" causing road tax money to be spent on new roads. Councilor Bettman asked if the subcommittee looked at concrete road construction and its maintenance and also what it would cost to restore such a road after tearing it up for repairs. Noting that the chamber representative had suggested the City take funding from its lower priority services to fund road maintenance, Councilor Bettman said she would like to see a list of the services the chamber thought to be low priority. Councilor Bettman requested that staff verify the 80-percent figure cited by Mr. Connolly in his testimony regarding the City of Springfield's reimbursement for diesel fuels. Additionally, Councilor Bettman asked staff to provide a "ballpark estimate" of what portion of the list of road projects the council was slated to approve on December 8 included "flexible" funding. She averred the Monroe/Friendly bike path project was funded by "flexible" funding that could have been channeled into maintenance and preservation. MINUTES--Eugene City Council December 6, 2004 Page 12 Regular Session Mayor Torrey conveyed his opposition to the elimination of the transportation system maintenance fee (TSMF), rescinded earlier in the year. He felt it should have been put to a vote of the people in order to provide the citizens with the opportunity to discuss the importance of the transportation backlog. He said the council had pulled the TSMF with the understanding that the County and the Eugene Area Chamber of Commerce were going to work with the City of Eugene to ;;fill the whole." He opined that the proposed gas tax would not accomplish much. He recommended the City ;;go back to the drawing board" and ask the County for some of its Road Fund money. He underscored that the City had gone to Congress every year and asked for support for road funding and asked that it be shared equitably between the City and the County. He averred that the road quality within the City limits should be as good as the roads outside of the City limits were. He reiterated that, should transportation truly be a high priority, the Budget Committee and the City Council should be willing to take money from the General Fund in order to backfill the gap. He said roads must be kept moving for the citizens of Eugene, but the gas tax would only serve to make service stations in Eugene unable to compete with those of Springfield. Mayor Torrey closed the meeting of the Eugene City Council at 9:54 p.m. Mayor Torrey opened the meeting of the Urban Renewal Agency of Eugene. 5. ACTION: Resolution 1032 Authorizing Execution of a Design Finance Agreement Councilor Bettman, seconded by Councilor Nathanson, moved to adopt Resolution 1032 authorizing execution of a Design Finance Agreement. City Manager Taylor stated that the resolution created the ability for the City to move forward with the loan to expedite the design work on the Patterson Street underpass. In response to a question from Councilor Kelly, Ms. Cutsogeorge assured him that any changes in the criteria would be brought before the council. Roll call vote; the motion passed unanimously, 7:0. 6. PUBLIC HEARING and ACTION: Resolution 1033 Adopting a Supplemental Budget: Making Appropriations for the Urban Renewal Agency of the City of Eugene for the Fiscal Year Beginning July 1, 2004, and Ending June 30, 2005 Mayor Torrey opened the public hearing. Kevin Matthews, PO Box 1588, president of the Friends of Eugene, spoke in opposition to the resolution as he felt there had been a lack of transparency in the process. He opined that the appropriations were potential subsidies for a private institution on ~prime land." He commented that citizen input had indicated opposition to such development on the riverfront. Mayor Torrey, noting it was 9:59 p.m., asked the Council President to provide a motion to extend the time. MINUTES--Eugene City Council December 6, 2004 Page 13 Regular Session Councilor Bettman, seconded by Councilor Papd, moved to extend the time long enough to complete the present agenda item. Roll call vote; the motion passed unanimously, 7:0. David G. Hinkley, 1350 Lawrence Street, Apartment 1, objected to the Mayor Torrey's earlier comment that EWEB paid no property taxes. He pointed out that EWEB paid a six-percent contribution in lieu of tax (CILT) to the City. He felt that, should the City feel this was insignificant, he would prefer as a ratepayer not to pay it. He opined that spending money on design work prior to the certificate of need process was "putting the cart before the horse." He recommended the City wait until there was a proposal on the table. He said there was no guarantee at this point that there would be a hospital. He averred that the hospital should pay for such improvements and should not be subsidized by the City. He thought it contradictory that the City had money for this project but was seeking an increase in the gas tax to pay for road maintenance. Zachary ¥ishanoff, Patterson Street, felt that the council had time to discuss urban renewal with the public. He felt it was linked to "smart growth" like the gentrification of the City of Portland. He called the project "corporate welfare." City Manager Taylor clarified that the supplemental budget had simple transactions: $400,000 to demolish the Sears building, $245,000 for eligible projects in the urban renewal district, and a loan from McKenzie- Willamette Medical Center which would not be repaid if there was no project and would simply result in that entity funding the preliminary design and engineering work. Councilor Bettman, seconded by Councilor Nathanson, moved to approve Resolution 1033 adopting a Supplemental Budget; making appropriations for the Urban Renewal Agency of the City of Eugene for the Fiscal Year beginning Julyl, 2004 and ending June 30, 2005. Councilor Kelly underscored that the proposed agreement was that the initial design work would not use taxpayer dollars and only in the case that the hospital was then built at the site would the City have to repay the money from tax increment dollars from the hospital. In response to a question from Councilor Pap~, City Manager Taylor affirmed that the money for the razing of the Sears building would only be used if there was a signed sales agreement and the City did not have such an agreement yet. In response to a question from Councilor Bettman, Ms. Murdoch said the $245,000 was for initiating capital projects in the downtown area. City Manager Taylor clarified that it provided authority for the Urban Renewal Advisory Council to move forward with projects within the district. Councilor Bettman requested a list of projects as they were known. Councilor Bettman stated, for the public record, that the hospital had to have a site prior to being able to obtain a certificate of need. Roll call vote; the motion passed unanimously, 7:0. MINUTES--Eugene City Council December 6, 2004 Page 14 Regular Session Mayor Torrey adjourned the meeting of the Eugene Urban Renewal Agency. Councilor Bettman, seconded by Councilor Kelly, moved to extend the meeting by three minutes. Roll call vote; the motion passed unanimously, 7:0. Mayor Torrey reconvened the meeting of the Eugene City Council at 10:11 p.m. 7. PUBLIC HEARING and ACTION: Resolution 4818 Adopting a Supplemental Budget; Making Appropriations for the City of Eugene for the Fiscal Year Beginning July 1, 2004, and Ending June 30, 2005 Mayor Torrey opened the public hearing. Kevin Matthews, PO Box 1588, President of the Friends of Eugene, opined that the public involvement had been insufficient to meet the standard with other elements of the City budget process. He opposed the resolution. Mayor Torrey closed the public hearing. The meeting adjourned at 10:13 p.m. Respectfully submitted, Dennis M. Taylor City Manager (Recorded by Ruth Atcherson) MINUTES--Eugene City Council December 6, 2004 Page 15 Regular Session