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HomeMy WebLinkAbout01/13/1986 Meeting e e - M I NUT E S City Council Work Session Eugene Conference Center--Wilder Room I January 13, 1986 5:30 p.m. PRESENT: Brian Obie, Mayor; Cynthia Wooten, Jeff Miller, Emily Schue, Richard Hansen, Debra Ehrman, Roger Rutan, Ruth Bascom, Freeman Holmer, councilors; Dave Whitlow, Gary Long, Jody Miller, Elizabeth Cherry, Barb Bellamy, staff; Jim Boyd, The Register-Guard, Jim Smith, Eugene's Washington, DC, lobbyist. The meeting was called to order by the Mayor at 6:35 p.m. I. ITEMS FROM THE MAYOR Mayor Obie distributed illustrated maps of the city from the Chamber of Conmerce. A memorandum dated January 13,1986, entitled, "Annual Financial Audit, II was distributed. The Mayor stated his intention to appoint Mr. Holmer, Mr. Hansen, and Mr. Rutan to form a three-member audit committee. II. REPORT FROM LOBBYIST Ms. Cherry introduced Mr. Smith, partner of Smith/Dawson Associates and princ- ipal on the City's contract. Mr. Smith will be assisting in formulating and implementing the City of Eugene list of Federal priorities. A. Federal Overview On the positive side, Mr. Smith's firm, in cooperation with the Oregon Con- gressional delegation, was able to secure for the City a technical assistance grant through the Department of Housing and Urban Development for a central- ized retail management program in the city's downtown core. Also, the Contin- uing Resolution Bill, which Congress passed in December, included a provis- ion identifying Mahlon Sweet as a priority project for FAA discretionary funding. Mr. Smith reported that the Gramm-Rudman and tax reform measures will have negative effects on the City. The Gramm-Rudman legislation gives to the exec- utive branch the authority to cut domestic spending programs of interest to local and State governments. The proposed tax reform bill will put restric- tions on tax-exempt financing for bond-funded City projects. The Gramm-Rudman bill mandates a balanced budget by 1991 and has set a target of $172 billion deficit by the end of FY86. The new estimates indicate that there will be a $20 billion-3D billion higher deficit than previously estimated which will require even larger spend1ng cuts each year. Mr. Smith believes there will be serious consideration for raising Federal taxes, because spending cut requirements will be so drastic. MINUTES--City Council Work Session January 13, 1986 Page 1 - Mr. Smith advised that the City of Eugene develop a precise list of priorities to present to the Oregon Congressional delegation. Those priorities need to be established early in the year in order to transmit them to the delegation. Mr. Smith said that because our relationship with the delegation is good that the year can be very productive. B. Lobbying Work Plan and Process Ms. Cherry presented the report on the work plan. The work plan designates contacts with the delegation only when all leg work with the members' personal and committee staffs is done. All City contacts will be timed and coordinated carefully through the Intergovernmental Relations Division. A third work plan item is to establish some measures of success for the program, with a prelimi- nary evaluation to be done in September. Any letters to the delegation stat- ing official City policies or positions should go over the Mayor's signature. One of the communication tools will be a monthly conference call between Mr. Smith and the City Council and Mayor. C. 1986 Federal Priorities Ms. Cherry reported that a department survey will be completed by January 30, 1986. The Legislative Subcommittee will be asked to meet the week of February 10, and Federal priorities are on the City Council agenda for the week of February 19. This will allow a week and a half to prepare for the trip to Washington, DC. A list of lithe vital few" items will be prepared for presentation to the Oregon Congressional delegation. e III. DISCUSSION AND QUESTIONS e '. Mr. Hansen asked if there are a few programs which the City will need to work on which might be in danger of being cut. Mr. Smith explained that he doesn't think Congress will dismantle any more than necessary in an election year. He expects Congress to confront the tax issue. However, competition for funds will be acute. The airport project is fairly safe and has a high priority rating. FAA discretionary funds for this project are user-financed, are dedi- cated, and are therefore in less danger than general fund-financed programs. Eugene has presented a solid proposal and the Oregon delegation is in a position to be helpful. Mr. Rutan asked about the status of the City's request for airport project funding. Mr. Smith responded that the application submitted to the FAA is for $4.7 million. This comes from a combination of entitlement funds (FAA trust funds) and through discretionary funds (also trust funds distributed at the discretion of the Secretary of Transportation). The groundwork with the staff in Washington, DC, has begun. Negotiations are with both the regional and district offices as the funds are distributed regionally. Mr. Rutan also asked if the non-terminal requests (landscaping, parking lot, etc.) were over and above the $4.7 million. Mr. Whitlow explained that the $4.7 million is divided into three packages: 1) $1.8 million the first Federal year; 2) $700,000 over the next Federal year; and 3) $2.2 million discretionary money. Mr. Rutan asked if there were MINUTES--City Council Work Session January 13, 1986 Page 2 e plans to request further funds and Mr. Whitlow said, no, that all the Ci~(ls energy would be directed toward receiving the $4.7 million and a portion of State lottery moneys. Mr. Hansen asked if funds would be available from the Entitlement Program dur- ing the third year and Mr. Smith responded that the funding was currently authorized through 1987. Mr. Whitlow said that Mr. Shelbyls report at Wednes- day's council meeting would provide a clearer explanation of our strategy on funding. e Mr. Holmer asked Mr. Smith to address the issue of reauthorizing the passenger facilities charge. Mr. Smith said that there will be an opportunity to debate the issue when the Airport Improvement Program expires. When asked why groups oppose the tax, Mr. Smith explained that airports donlt want it because there may not be local authority to levy the tax. Also, current agreements with airlines might be a deterrent. Small and medium-size airports are afraid that, if given the option, it would cause Federal funding to diminish because large airports would pullout and leave small airports without funds. Mr. Whitlow explained that some early analysis of the difference in revenue between Federal funding and local taxes has been done. Mr. Miller asked if any thought has been given to the provision for a head tax dedicated only for capital improvement which can be phased out. Mr. Smith was not aware of any such plans in other states, but advised that this be developed as a strategy option. Mayor Obie reviewed that one of the City Council IS objectives in committing to the Federal lobbying program was to receive assistance in identifying procure- ment contract opportunities and potential sitings of Federal government facil- ities. Mr. Smith said that watching appropriation bills for agencies is the best means of monitoring procurement and siting opportunities and that ma:in- taining contact with the network of interests groups in Washington, DC, is al so hel pful . Mr. Obie asked Mr. Smith to tell the council something about the firm of Smith/Dawson Associates. Mr. Smith replied that a new partner, Greg Andr'ews, has recently been added. All three partners have worked at different levels of the Federal government in both the executi ve and 1 egi sl ati ve branches., They have been in business for six years and represent both the private and public sectors. The meeting was adjourned at 7:20 p.m. e (Recorded by Judy Jernberg) JJ:pv/1960C MINUTES--City Council Work Session January 13, 1986 Page 3