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HomeMy WebLinkAbout12/15/1986 Meeting (2) . M I NUT E S e Eugene City Council City Council Chamber December 15, 1986 7:30 p.m. COUNCILORS PRESENT: Richard Hansen, Cynthia Wooten, Jeff Miller, Emily Schue, Roger Rutan, Ruth Bascom. COUNCILORS ABSENT: Debra Ehrman, Freeman Holmer. The adjourned meeting of December 10, 1986, of the Eugene City Council of Eugene, Oregon, was called to order by His Honor Mayor Brian B. Obie. I. PUBLIC HEARING: AIRPORT FINANCING City Manager Micheal Gleason introduced the item. Dave Whitlow gave the staff report. He said Mahlon Sweet Airport was completed in 1964. In 1972, the City Council authorized an airport master plan because it was apparent the facility would need to be expanded. The master plan was updated in 1979 when Eugene was no longer just a stop-over point for airline travel. Eugene had become an . origin and destination point. e Mr. Whitlow said the City and the Federal government have invested over $14 million in the airfield part of the airport since 1978. The improvements include access roads, runways, taxiways, a fire station and equipment, and jet parking. In addition, the Federal Aviation Administration (FAA) invested in new radar and navigational systems and a gO-foot control tower. Mr. Whitlow said now it is time to improve the airport terminal and parking facil ities. The $18.3 million proposal before the council will construct a new road circulation system, parking facilities, related infrastructure, and landscaping as well as a new terminal. He said two-thirds of the funding for the project has been identified. The FAA has committed $3.7 million and is expected to approve an additional $600,000, the State lottery program has provided $720,000, Lane County has allocated about $1.6 million, and the airlines have agreed to provide about $5.6 million. Mr. Whitlow said the Council Subcommittee on Airport Financing composed of Councilors Hansen, Ehrman, and Rutan recommended a project budget of $18.3 million for the expansion. They also recommended that private financing be sought for projects totaling $1.5 million and that the City's share of the project be financed with $1.1 million cash and revenues from Revenue-Backed General Obligation bonds. He said Eugeneans will vote on the bonds on March 31, 1987. The subcommittee recommended that the debt service on the bonds be paid with revenues from a property tax levy or by using capital budget funds and reducing the growth in the City's working capital. He sa i d the subcommittee never recommended using the operating budget to pay the debt service on the bonds. e MINUTES--Eugene City Council December 15, 1986 Page 1 Mr. Whitlow said the subcommittee recommended approval of $300,000 for design and administrative costs for the expansion until March 31, 1987. He sa i d e construction could begin in Mayor June 1987 on the pa rk i ng and road improvements and in December 1987 on the terminal. He said the'council will take testimony this evening and probably take action on the proposal on December 17, 1986. Mayor Obie opened the public hearing. Dennis Huserik, 3581 Agate, represented the Eugene Area Chamber of Commerce. He sa i d Chamber of Commerce representatives have rev i ewed the proposed expansion and concluded that the project should be pursued aggressively. He said the current scope of the project is appropriate. He said the financing for the expansion has become regional because Federal, State, and Lane County funds will be used and because many airline ticket buyers are from outside Eugene. Mr. Huserik said an attractive and efficient airport is an important community asset. He said the Fantus Report identified the existing airport as a liability for the community. He recommended the expansion be approved and financed with existing City resources as soon as possible. Fergus McLean, 2920 County Farm Road, referred to an article in a June 1986, issue of What's Happening. He said he distributed a questionnaire to people present to determine their economic development goals. He said people should create a vision of the community they want and then pursue the creation of that community. He said the library can be open every school night, downtown housing can be provided for the elderly, a swimming pool can be provided for e inner-city neighborhoods, and the Willamette Greenway can be preserved if people want those things. David Wildermuth, 4856 Donald, is chairperson of the Eugene Public Library Board. He said the library and the airport do not compete for City funds. He said Library Board members find it distasteful to compete with the Police, Fire and Emergency Services for scarce City funds. He said Library Board members are conscious that some service foundations may be undermined. He wondered how many businesses have not come to Eugene because of drug problems in the community. Mr. Wildermuth said the library and the airport were the most important projects in the Eugene Agenda and the voters should take responsibility for financing the airport expansion and other City services. He said the voters also should take responsibility for cuts in services. He cautioned against using the kind of financing for the airport expansion that was used for the fine arts center. He discussed the excellent Boise, Idaho, airport. He said the council should "work on" attitudes in the community. Helen L. Howard, 888 Armstrong, said she does not want the City's operating funds to be squeezed to provide capital funds to pay the debt service on the airport expansion bonds. She said she would like the council to use new funds for the debt service. She said the Eugene Pub1 ic Library book budget was about $165,000 in 1981 and it is about $104,000 in 1986. She pointed out that book prices have risen in the last five years. She said the capital budgets of e MINUTES--Eugene City Council December IS, 1986 Page 2 City departments should not provide the debt service for the airport expansion. e Dick Briggs, 80 West 23rd Avenue, said Eugene citizens are being asked to pay about $6 million of an $18 million project to expand the airport. He said the airport is regional, everyone uses it, and the expansion should be approved. Glenn E. Rabenold, 2990 Friendly, said he opposes the expansion of the airport. He is concerned about the type of businesses that might be attracted to Eugene if the airport is expanded. He said the livability of Eugene will suffer if large businesses are attracted here. He said bureaucratic costs of local government could provide funds for the airport expansion. He sa i d sma 11 businesses are good risks for investment and building a community on small, neighborhood-based businesses is in the best interests of the citizens. He said the city is growing too fast and people need to know where the money is going. Svend Toftemark, 2060 Broadview, thanked the councilors for the time they spend on City business. He said he favors the expansion of the airport but he thinks it should be postponed until people in Springfield and Lane County outside of Eugene agree to share equally in the expansion1s cost because they will benefit from it. Frank Bonson, Box 944, sa i d he opposes spending money on the airport expansion. He read from a Letter to the Editor that appeared in The Register- Guard in May 1986 in which he stated that 90 percent of the peop 1 e he . interviewed do not favor spending tax money on the airport. He said Salem has one airline fl i ght a day but its business and tourism are better than e Eugene1s. He asked what studies indicate a need for the airport expansion. Mr. Bonson said there are many foreclosures on homes and bankruptcies in Eugene because of increased taxes. He said crime is increasing and there are jail, transient, and unemployement problems. He said citizens and the City should live within a budget. Don Norris, 1984 Kimberly, said he is a real estate consultant. He said he has gone to Portland six times in the last three weeks to pick up clients because their planes could not land in Eugene or because the clients could not afford to fly into Eugene. He emphasized that Eugene loses money when people land in Portland. He said many people judge Eugene by its airport and decide that Eugene ;s not adequate for their business. He said passengers boarding planes at the airport have increased 65 percent this year and the increased revenue will pay for the airport expansion. Mr. Norris said approval of the airport expansion will create a better work environment in the community and increased jobs will increase the City's funds for such things as the library and swimming pools. Gary Kutcher, 2638 Hawkins Lane, said he opposes the airport expansion. He said there has been no citizen participation during consideration of the airport expansion although the cost of the expansion is great. He said the City has spent much money on the project and intends to spend more before the March vote even though there has been no citizen participation. e MINUTES--Eugene City Council December 15, 1986 Page 3 Mr. Kutcher suggested the council take action on the airport expansion at a night meeting because many citizens will not be able to attend the council e meeting at noon on December 17. He said the title of the ballot measure for the bonds should be clear. He said the planned expansion is more expensive than necessary and he does not think it will create additional jobs. He said the City should financially support existing small businesses and local people who want to start new businesses. Responding to Mr. Kutcher's statement, Mayor Obie said Councilors Holmer and Ehrman could not be present this evening and asked the council to defer action until December 17. He said they will revi ew the cassette tapes of thi s hearing. Alan Yordy, P.O. Box 10905, said he represents Sacred Heart General Hospital. He said Mahlon Sweet Airport is the first public facility many people see in Eugene and it does not i ndi cate the resources and quality of 1 He the community offers. He said the airport provides a vital transportation link. For example, hospital officials often travel between Eugene and the company headquarters in Belleview, Washington. He said Sacred Heart Hospital serves about 120,000 patients annually and over 20 percent of them come from outside Lane County. Many well-known patients come to Eugene for treatment, many hospital employees travel elsewhere for technical training, many physicians go elsewhere for conferences, and many experts come here for conferences. He said the airport is the first and last thing many people see in Eugene and it is what they remember of Eugene. Mr. Yordy said the airport is important to the economic development of Eugene and Springfield and hospital officials support its expansion as well as such e projects as entrance beautification. He said additional property taxes are not likely to be approved by the voters so the best alternative for financing the airport expansion is to consider the plans carefully and pay for the expansion from existing revenues. Richard Gold, 907 River Road, #58, said Mahlon Sweet Airport is in the Amazon flood plain and has much fog. He said it is a regional facility adequately serving most of the people who use it. He said he is glad citizens will have the opportunity to vote on the expansion. He suggested the vote should be a county-wi de one. Referring to an article in The Register-Guard on December 13, 1986, about the possibility of razing the airport terminal, he said the planning process for the expansion does not seem to be over. Gary Pape', 34362 Deerwood Drive, said he represents Papel Brothers, Inc., and severa 1 other businesses. He thanked the councilors for the time they have spent considering the airport expansion and commended them for making it their first priority. He said air freight is very important to his and other businesses and the expansion will improve the handling of air freight. Mr. Papel said he is a member of the Budget Committee. He supports the airport expansion and said the debt service for the bonds should be paid from existing revenue. He said the Jackson County Metropolitan Airport is excellent and will provide competition for Mahlon Sweet Airport. e MINUTES--Eugene City Council December 15, 1986 Page 4 Shawn Boles, 105 North Adams, said he is testifying as a private citizen although he is a member of the Budget Committee. Reviewing the context in e which decisions about the airport must be made, Mr. Boles said projections indicate the City will have a $3 to 4 million shortfall in 1987~88 and City departments have been directed to reduce expenses 3 percent which will reduce total expenses $1.4 million. He said the projected capital budget for 1987-88 is $2.2 million but $8 million will be needed. He said the airport expansion will cost about $18 million and the City's share of it will be about $8.6 million. Mr. Boles discussed several financing options for the City's share of the airport expansion. He said the proposal to fund the debt service on the bonds from existing revenues does not allow the airport expansion to "stand on its own merits" because it does not place the entire financing of the airport expansion before the voters. He said the proposal to use the endi ng fund balances for the debt service violates a commitment of the Budget Committee. He said 25 percent of the 1987-88 capital fund budget will be used for the debt service on the airport bonds if $550,000 of the capital budget is used to pay the debt service. He said that is unreasonable because it would result in decreased services or an increase in property taxes. Mr. Boles said he favors asking the voters to approve the entire airport expansion proposal. He suggested a proposal to fund the entire City share of the airport expansion with property taxes be put before the voters. He said he bel ieves the voters would approve the expansion of the Eugene Publ ic Library and it is reasonable to ask them to fund the airport expansion. Approval of that would not constrain the budget when City funds are scarce. He said another way to fund the airport expansion would be to create a special e tax district which would result in regional funding. Mr. Boles said passengers on regional airlines will still have to board planes in the rain and passengers will still have to wait for airline personnel to unload baggage after the expansion. He said most cities improve airports after economic expansion. He suggested the council commission a scientific survey to learn what the voters want to do about the airport. lotte Streisinger, 32591 Fox Hollow Road, said she is coordinator for the architecturally integrated art at the Hult Center and for new buildings on the University of Oregon campus. She said she expects to coordinate art projects in the airport expansion. She said art in public places is very important because cultures are remembered for it, because it introduces art to people who do not usually go to museums, and because art provides a sense of place. She said the art projects in the Eugene airport will significantly identify the airport. Kenneth Hern, 1400 High Street, said he is secretary/treasurer of the Eugene Firefighters Association which~s 145 members. He said members do not oppose the airport expansion, but they voted unanimously to oppose fundi ng the expansion from the General Fund because the City asked, the Police, Fire and Emergency Services Department to reduce its expenses 3 percent this year and 4 percent next year. e MINUTES--Eugene City Council December 15, 1986 Page 5 Mr. Hearn said the Police, Fire and Emergency Services Department has 30 fewer firefighters than in 1979 and, in addition, operates the ambulance service. e He said the Willakenzie Fire Station has been abolished, a truck company has been eliminated from the South Eugene Fire Station, the Bailey Hill Fire Station is not staffed, and some companies have only two firefighters. He said the bonds for the airport expansion will be 20-year bonds and he wondered if the council will guarantee there will be no service reductions for 20 years. He urged the counci 1 not to fund the airport expansion from the capital improvements budget. Steven Mays, 660 Conger, is Vice President of Clark Sheet Metal, Inc. He said the company has been in Eugene for 35 years and employs between 100 and 150 people. The company designs and manufactures woodworking equipment. He said 90 percent of the company's business used to come from the northwest. Because of the depression in the woodworking industry from 1980 to 1984, the company changed and now less than 20 percent of its business comes from the northwest. He said company officials use the Eugene airport every working day. Mr. Mays said the president of the company stated that Eugene's airport is one of the poorest he has seen in cities of Eugene's size. He said the airport is an embarrassment. Mr. Mays said the development of cities used to be influenced by railroads, rivers, and ocean ports. Now, the economic well- being of cities is influenced by the quality of airport service. He said the airport expansion will have no effect on regular City services and the $6 million City share of the expansion is a bargain. He sa i d the long-term economic benefits to the University of Oregon, businesses, the Riverfront Research Park, and other parts of the community exceed the cost of the airport expansion. He urged its approval. e Joseph Dehn, 5340 Saratoga, said the airlines and people who use the airport should pay for its expansion. He said many Eugeneans do not use the airport and many people who use the airport do not live in Eugene. He said a charge of $1 for each passenger would pay the $550,000 debt service for the expansion. He said the money for the debt service on the airport bonds will come from Eugene taxpayers. He said there probably will have to be new taxes to pay for the expansion. Chuck Missar, 959 Terry, said he represents Spectra Physics Retail Systems, and the company supports the airport expansion because it will result in more flights in and out of Eugene and because better access to other cities will increase Eugene's economic diversification. He sa i d the commun ity wi 11 continue to lose jobs, the infrastructure will decline, and there will be much personal suffering if Eugene1s economy is not diversified. Mr. Missar said the level of primary services should be maintained in Eugene. He said a viable library, an award-winning Police, Fi re and Emergenci es Services Department, and Parks and Recreation Department servi ces are important to Spectra Physics employees. He said both an improved airport and a good library are important to the quality of life in Eugene. He said the funding sources for the library and other City services are different from the funding sources for the airport expansion. He said an investment in the airport expansion will pay long-term rewards. He urged its approval. e MINUTES--Eugene City Council December 15, 1986 Page 6 Bill Thomas, 1588 West 25th Avenue, said he has had no problems getting his luggage at Mahlon Sweet Airport. Recently, it took him only one-half hour. e He said the taxpayers should not pay for the airport expansion. It should be funded by airport users. Orlando Hollis, 1908 Hilyard, most of the people who use the airport are not business oriented. Many of them travel to visit their families, many are professional people, and many represent Lane Commun i ty Co 11 ege or the University of Oregon. He said the University of Oregon is a premier research organization and it will not be able to recruit outstanding faculty members if the city does not have adequate air transportation. He said faculty members need to keep in touch with colleagues in other parts of the country. Mr. Hollis said total passenger traffic at Mahlon Sweet Airport in the first ten months of 1986 was 28 percent more than it was in the first ten months of 1985. He said the air freight was 151 percent more than in the first ten months of 1985. He said the need for the airport expansion is evidenced by the lines at the airline ticket counters that "snake around," by the lines to get into the security area, and by the lines of incoming passengers. He said City officials have worked hard to get additional airlines to serve Eugene and the competition has resulted in decreased air fares. He suggested it isn't embarrassing to have two airlines in temporary buildings outside the terminal. Mr. Hollis said Eugeneans have indicated that an improved airport is the City's most important capital need and it must be accomplished. Richard Greene, 766 East 13th Avenue, said he is a business owner and member of the Crime Action Task Force. He said he agrees with Shawn Boles that e citizens should vote on the entire financing of the airport expansion. Mr. Greene said some people want to take as much of the cost as possible from existing revenues in order to sell as few bonds as possible. Mr. Greene said City departments such as the library and Police, Fi re and Emergency Services have been directed to cut their budgets 3 percent. He said those savings will be unexpended ending balances and will be used to pay some of the City's share of the airport expansion. He said the City's roads, parks, library, and police and firefighters need funds and the cuts in those departments are directly related to the airport expansion. Mr. Greene said the the police division is understaffed but the City could have an excellent police division and an excellent library if it chose to do so. He said people respect Mayor Obie's ability, energy, and dedication but they hope he does not want monuments to be the legacy of his administration. Mr. Greene said longer library hours, additional police, better parks, and additional swimming pools would be a fine legacy. He said the recommendations of the Crime Action Task Force should be implemented. He urged the council not to fund the airport expansion from existing revenues. Bill Sweet, 65 West 26th, thanked the councilors for their work and for the vision of a new airport. He said many people have indicated the City has greater needs than an expanded airport. He said Eugene has a low ratio of police officers to population and an "anorexic" public safety budget. He said the hiring of eight police officers was delayed, retiring officers are not e replaced, and the number of firefighters has been reduced to save money. MINUTES--Eugene City Council December 15, 1986 Page 7 Mr. Sweet said he served on the Crime Action Task Force and found that many people are frightened. He said public safety needs should be the City's first e priority. If the airport can be financed without using existing funds, he urged the council to consider it. He said the Lane County jail bond issue may be defeated if citizens are asked to vote on bonds for the airport expansion at the same time. Dan Williams, 220 Johnson Hall, said he is a Vice President of the University of Oregon. He said the university administration supports the expansion of the airport. He said an adequate airport is not a luxury. It is a necessity. He said the faculty cannot serve the citizens of the state and the students cannot come and go without good air transportation. Good air transportation is also very important when the university hosts national and international events. He said people expect their arrival and departure to be convenient and enjoyable. Mr. Williams said Eugene will compete with other commun it i e s for new businesses in the Ri verfront Research Park and adequate transportation facilities are very important. He said the airport expansion is a necessary investment to maintain the University of Oregon as a major research institution, the largest employer in the city, and the home of over 16,000 students. Jon Silvermoon, 2441 Madison, said people want to know what will be sacrificed for the expansion of the airport. He said 30 percent of the City's Capital Improvement Program (CIP) comes from the General Fund and that money could be . put into the operating budget. If CIP funds are used for the airport expansion, he wondered what CIP projects will be delayed. He said the council e should make that information available before the CIP and the funding of the airport expansion are approved. Mr. Silvermoon read from an editorial that appeared in The Register-Guard. He did not indicate its date. He said General Obligation bonds for the airport expansion will affect City operations because they are backed by property taxes. He wondered how much bonding the City can afford in the next few years. He said bonds could also be used for the library and parks. He emphasized that the airport expansion will affect City services and facilities regardless of the council's intent. Mr. Silvermoon said, if the airport expansion wi 11 help the economic development of Eugene, it wi 11 a 1 so he 1 p the economi c deve 1 opment of Springfield and Lane County and citizens of Springfield and Lane County of those jurisdictions should help pay for the expansion. He said the extensive airport expansion was one reason the citizens defeated a City income tax and it is unfortunate the size of the airport expansion was not decreased. He emphasized that the council should clearly i dent i fy the funding for the airport expansion. Diane Uto, 44 West Broadway, said she represented the Eugene-Springfield Metropolitan Partnership. She said the expansion of the airport is very important to businesses. She said the partnership recruits small, as well as large, companies and sometimes airport facilities are very important to small companies. She said other City facilities are also important but people who e MINUTES--Eugene City Council December 15, 1986 Page 8 . are considering the relocation of businesses consider an improved airport essential. e There being no additional requests to testify, Mayor Obie closed the public hearing. He said written testimony will be received for the public record until 5 p.m. December 16, 1986. Mr. Hansen said this is his last public hearing as a councilor. He said the testimony was excellent. Ms. Schue thanked those who testified. She said the council intends to ask the opinion of the citizens about the airport expansion before making a final decision about the bonds. Mayor Obie commended those who testified. He said they and the council have the best interests of the community in mind. Mayor Obie adjourned the meeting at 9:17 p.m. to December 17, 1986. ~llY submitted, ~ ....... Mlcheal Gleas City Manager (Recorded by Betty Lou Rarick) e mnccde15 e MINUTES--Eugene City Council December IS, 1986 Page 9