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HomeMy WebLinkAbout06/27/1988 Meeting e M I NUT E S Eugene City Council Council Chamber--City Hall June 27, 1988 7:30 p.m. COUNCILORS PRESENT: Freeman Holmer, Ruth Bascom, Robert Bennett, Debra Ehrman, Jeff Miller, Roger Rutan, Emily Schue, Cynthia Wooten. The regular meeting of the City Council of the City of Eugene, Oregon was called to order by His Honor Mayor Brian B. Obie. I. PUBLIC FORUM Mayor Obie gave an opportunity to those who wished to address the council about subjects that are not on the scheduled for council consideration. No one desired to speak. e II. PUBLIC HEARING: CITY OF EUGENE FY89 ANNUAL BUDGET City Manager Mike Gleason introduced the item. Warren Wong, Finance Director, presented the staff report. He said the FY89 budget has been recommended by the Budget Committee. He reviewed the changes made to the budget by the Budget Committee that includes program restorations of $141,000. He said $3,000 was added from the Transient Room Tax to fund the Children's Theatre. One $12,000 capital project in Public Works was reduced. He said items that will have to be considered under a supplemental budget include the Nuclear Free Zone, the Votersl Pamphlet, Lincoln School, and the Hazardous Materials Program. He reviewed the two budget notes on the Cops in Schools and $141,000 program restorations contained in the recommendation. Ms. Bascom asked if money in the budget will be able to address the proposed Juvenile Program for Habitual Offenders. Mr. Gleason said that it will. He said staff will be bringing a report to council through the citizen's committee to discuss the juvenile program as well as other programs aimed at habitual offenders. Mayor Obie opened the public hearing. Richard Gold, 1486 East 25th Avenue Apt. B, said overall the FY89 budget looks good. He said funding should be reinstated for the Cable Access and e MINUTES--Eugene City Council June 27, 1988 Page 1 e Community Schools programs. He said the council should also consider commissioning a performance audit for the entire City. Tom Halferty, 728 West 5th Avenue, said he would like to thank the Budget Committee on behalf of the Cable Access Center for its recommendations with regard to the Cable Access program. He said also thanked the Budget Committee for the neighborhood liaison program. He said it is important for the community to have a direct link of communication with the City Manager's Offi ce. Mayor Obie closed the public hearing. Ms. Schue said the budget note submitted by Mr. Miller is not a good idea. She said the application of Marginal Beginning Working Capital is already a budget note. She said the trouble with part A is that it instructs the City Manager to find $141,000. She said the council has already spent countless meetings determining how the council, Mayor, and Budget Committee should be in charge of the budget. Ms. Schue said Mr. Rutan made an honest attempt to deal with the situation by presenting the council with a list of suggested cuts. Ms. Ehrman said it was her understanding that the budget note requests action from the City Manager, but does not mandate it. She said she is still willing to try and work out something for Mr. Miller. e Mr. Obie said he appreciates Ms. Schue's comments. However, he said the council worked hard at reaching a compromise. Ms. Bascom said she was surprised to see the word "permanent" in the note. She said she does not want the City Manager to have the power to make permanent cuts in programs. Mr. Holmer said he likes the objective of the budget note in light of the Budget Committee's decision to tap the Fleet Replacement Reserve. However, he said the budget note does not significantly change the circumstances surrounding the budget. For that reason, he said he will be making the main motion without a budget note. Mr. Miller said the intent of the note is to allow the council, as it goes through the budget year, to make permanent reductions that do not interrupt the ongoing flow of the City. He asked how Mr. Gleason interprets the budget note. Mr. Gleason said his understanding is that the council would first like to use the ending fund balance. He said he interprets the note to say he should make reductions throughout the year that would allow for repayment of the $141,000 but that do not make a substantial impact on service programs. Mr. Bennett said he supports the intent of the budget note. He suggested a wording change that would allow for more options. e MINUTES--Eugene City Council June 27, 1988 Page 2 - Mr. Miller said he believes the note addresses the anticipated budget shortfall in the coming years in a way that is least disruptive. He said the note is a challenge to the City Manager to see to it that the budget situation does not get more complicated. Ms. Schue said the real question is whether the council wants to mix the issue of an economical City Manager with a $141,000 add-back inserted by the Budget Committee. She said the note should not be used to remove the council's responsibility for selecting items that will have to be cut. Mayor Obie said he will accept two more comments, then the council will vote on the budget, and lastly take up the issue of the budget note. Ms. Ehrman suggested deleting the word "permanent." Mr. Bennett said he will not support the budget without a budget note. He said he wants to send the message that the add-backs should not come from the Fleet Fund. Ms. Bascom said removing the word "permanent" would keep the issue from becoming part of the mayor's race and address both the concerns of Ms. Schue and Mr. Mill er. Mr. Rutan said he would like some form of a note to address the legitimate concerns that have been brought up. He said he will be voting for the budget, although he said he is very disappointed at where the council finally ended up. e Mr. Holmer moved, seconded by Ms. Bascom, to adopt the budget note suggested by Mr. Miller with the deletion of the word "permanent" in item A. Roll call vote; the motion carried 6:2 with councilors Holmer, Bascom, Bennett, Ehrman, Miller, and Rutan voting aye, and councilors Wooten and Schue voting nay. CB 3050--An ordinance adopting the budget, making appropria- tions, determining and levying the annual ad valorem property tax for the City of Eugene for the fiscal year beginning July 1, 1988, and ending June 30, 1989; and declaring an emergency. Mr. Holmer moved, seconded by Ms. Bascom, that the bill, with unanimous consent of the council, be read the second time by council bill number only, and that enactment be considered at this time. Roll call vote; the motion carried unanimously, 8:0. Council Bill 3050 was read the second time by council bill number only. Mr. Holmer moved, seconded by Ms. Bascom, that the bill be approved and given final passage. Ro 11 ca 11 vote; a 11 councilors voting aye, the bill was declared passed (and became Ordinance No. 19562). e MINUTES--Eugene City Council June 27, 1988 Page 3 e III. PUBLIC HEARING: EUGENE RENEWAL AGENCY FY89 ANNUAL BUDGET City Manager Mike Gleason introduced the item. Mayor Obie opened the public hearing. Richard Gold, 1486 East 25th Avenue, Apt. B, noted that under operations there are nondepartmental interfund transfers of $650,846 and $150,408. Under operations in the Eugene Renewal Agency's capital development trust fund, he said there are nondepartmental miscellaneous fiscal transaction loans of $500,000. He said the council needs to be reminded that ORS 457.4404 does not allow interfund transfers or loans. Mayor Obie closed the public hearing and asked staff to respond to the testimony. Mr. Wong said he is not familiar with the specific citation by Mr. Gold. However, he said the City has been processing interfund loans and transfers allowed under ORS. He said the items noted by Mr. Gold are not interfund loans. He said there are no interfund loans in the tax allocation budget. The one interfund loan that did exist was rescinded and reversed based on an updated City Attorney.s opinion. Res. No. 934--A resolution of the Eugene Renewal Agency adopt- ing the budget and making appropriations for the e fiscal year beginning July 1, 1988, and ending June 30, 1989. Mr. Holmer moved, seconded by Ms. Bascom, to adopt the resolution. Roll call vote; the motion carried unanimously, 8:0. IV. PUBLIC HEARING: CITY OF EUGENE SUPPLEMENTAL BUDGET #4 City Manager Mike Gleason introduced the item. Mayor Obie opened the public hearing. Hearing no requests to testify, Mayor Obie closed the public hearing. CB 3051--An ordinance adopting a supplemental budget; making appropriations for the City of Eugene for the fiscal year beginning July 1, 1987, and ending June 30, 1988; and declaring an emergency. Mr. Holmer moved, seconded by Ms. Bascom, that the bill, with the unanimous consent of the council, be read the second time by council bill number only, and that enactment be considered at this time. Roll call vote; the motion carried unanimously, 8:0. -- MINUTES--Eugene City Council June 27, 1988 Page 4 - --- e Council bill 3051 was read the second time by council bill number only. Mr. Holmer moved, seconded by Ms. Bascom, that the bill be approved and given final passage. Ro 11 ca 11 vote; a 11 councilors voting aye, the bill was declared passed (and became Ordinance No. 19564). V. ORDINANCE CONCERNING A NUCLEAR FREE ZONE City Manager Mike Gleason introduced the item. Mayor Obie asked Mr. Holmer to make a motion, and then have those councilors who wish speak to the issue do so. Mr. Holmer moved, seconded by Ms. Bascom, that Council Bill 3053, an ordinance concerning a nuclear free zone, be read the second time by council bill number only, and that enactment be considered at this time. Ms. Schue said she will be voting against the motion. If she could, she said she would vote for Council Bill 3052, or proposal A. She said this is a voter issue as well as a council one. She said the council has an obligation to follow the will of the people as expressed in two previous elections. She said proposal A most closely follows that will. Mr. Holmer recalled that he has heard that the council should pay attention e to what the voters adopted in 1986. He said he has great respect for the initiative process and feels that it should be preserved. Mr. Holmer said the question of what the voters adopted in 1986 rests in the ballot title. He said he does not believe that the voters of Eugene voted for the original lengthy measure intending for an unconstitutional and illegal ordinance to be adopted. He said the voters in 1986, and again in May of 1988, told the council they want Eugene to be declared a nuclear free zone. He said he is prepared to vote for that despite his own reservations of the desirability of such legislation, because that is what the voters have indicated they want. He said he will not go further than proposal B. Ms. Bascom asked if proposal B is the same as the legislation adopted by Lane County. Mayor Obie said proposal B was requested to be prepared as close to the county's as possible. Ms. Bascom said she is concerned about how the current interpretation by the council impacts the initiative process, although she said she can see why members of the council who work hard on economic issues would be concerned about proposal A. Mr. Miller said proposal B achieves what the citizens of Eugene have asked for and sends the kind of message a local community can send. He said adopting an extreme position does not serve either the community or the cause for peace well. e MINUTES--Eugene City Council June 27, 1988 Page 5 e Ms. Wooten said she supports proposal A with an appointed board. She said the histrionics demonstrated by the opponents of proposal A speaks to whether Eugene should be a nuclear free zone at all, and not what type. She said proposal A would not have the "chilling effect" on Eugene's business climate that its opponents claim. She said the proposal is not an extreme position, and said the council is obligated to pay more than lip service to peace. Ms. Ehrman said she will be voting against proposal B. She said she has felt since the beginning of the process that the council could proceed with the board and let it take care of the flaws in the ordinance. She said the council acted in good faith setting up the task force and obtaining several legal opinions on how the ordinance could be implemented. She said it is clear to her that the community wants more than a simple statement condemning nuclear war. Mayor Obie said he is concerned about remarks made earlier by Ms. Bascom about the male members of the council not supporting the nuclear free zone. He said it is unfortunate to try and create a division along gender lines. He said a gender split has not existed in the past and does not exist now. Mayor Obie said he believes there is merit in Eugene being a nuclear free zone. That is a position he said he would probably not have taken in November 1986. However, he said he does not want a board such as the one outlined in proposal A that has investigative powers that no other board in the community has. Despite what has been said regarding what the community e intended in the previous two votes, he said in the end he has to decide what he thinks is right for the community. That decision is to support proposal B. Ms. Schue pointed out for the audience that an ordinance requires two votes by the council. Before an ordinance receives final approval or disapproval, it must first pass its first reading for procedural reasons. She said the second vote is the real vote. Roll call vote; the motion carried unanimously, 8:0. Council Bill 3053 was read the second time by council bill number only. Mr. Holmer moved, seconded by Ms. Bascom, that Council Bill 3053 be approved and given final passage. Roll call vote; the motion carried 5:4, with councilors Holmer, Bennett, Miller, Rutan, and Mayor Obie voting aye, and councilors Wooten, Schue, Bascom, and Ehrman voting nay. The bill was declared passed (and became Ordinance No. 19565). e MINUTES--Eugene City Council June 27, 1988 Page 6 e VI. ORDINANCE CONCERNING STATE REVENUE SHARING City Manager Mike Gleason introduced the item. Carol Calkins, Finance Division, presented the staff report. She said this ordinance is passed each year to certify the City's request to receive State revenue sharing funds during the next fiscal year. The FY89 estimate for budgeted revenue is $446,000. CB 3054--An ordinance electing to receive State Revenue Shar- ing funds pursuant to Section 221.770 of Oregon Revised Statutes, and declaring an emergency. Mr. Holmer moved, seconded by Ms. Bascom, that the bill, with unanimous consent of the council, be read the second time by council bill number only and that enactment be considered at this time. Roll call vote; the motion carried unanimously, 8:0. Council Bill 3054 was read the second time by council bill number only. Mr. Holmer moved, seconded by Ms. Bascom, that the bill be approved and given final passage. Ro 11 ca 11 vote; a 11 councilors voting aye, the bill was declared passed (and became Ordinance No. 19566). e VII. RESOLUTION CONCERNING STATE SHARED REVENUES City Manager Mike Gleason introduced the item. Ms. Bascom asked how the revenues compare with last year. Ms. Calkins said alcohol and cigarette tax revenues will be declining this year from preceding receipts. She said the gasoline tax revenues will increase as a result of Legislative action last year. Ms. Ehrman asked if the City has to account for expenditures in those areas. Ms. Calkins said the City account for these expenditures; in particular, road-related activities that are supported by the gasoline tax need to be reported to the State. Res. No. 4088--A resolution certifying that the City of Eugene provides the specified municipal services in order to receive State Shared Revenues pursuant to 221.760 of Oregon Revised Statutes, and declaring an emergency. Mr. Holmer moved, seconded by Ms. Bascom, to adopt the resolution. Roll call vote; the motion carried unanimously, 8:0. e MINUTES--Eugene City Council June 27, 1988 Page 7 e VIII. RESOLUTION CONCERNING TRANSIENT ROOM TAX FUNDS City Manager Mike Gleason introduced the item. Ms. Calkins presented the staff report. She said the resolution allocating transient room tax revenues was updated last year to include Hayward Field. She said staff is recommending the resolution be updated again this year by adding new guidelines for allocations. Those include changing the Parks and Recreation's Cultural program allocation to a set dollar amount instead of 7.5 percent of net revenues. Ms. Calkins said the major change this year is that the adopted budget has set aside a $97,000 reserve for contingencies for special events such as the World Veterans Games. Because the Strategic Financial Plan has not been completed yet, she said staff is unsure whether the plan will have an impact on destination point activities such as the Eugene Celebration. Once the audit is completed for FY88, staff will come back to the council and the Budget Committee with a recommendation for use of those reserve funds. In response to a question from Ms. Bascom, Ms. Calkins said the Room Tax is a 7.5 percent: 4.5 percent goes to the City and 3 percent goes to Lane County. Ms. Wooten asked if the $40,500 allocated for the Parks, Recreation, and Cultural Services Department (PARCS) is reserved for only PARCS events or also used for other cultural events that may need assistance. Ms. Calkins said the money is used for a diversity of cultural events. e In response to other questions from Ms. Wooten about reserve money for small, independent cultural events, Ms. Calkins said there was no change in the allocations from last year. Mr. Miller asked how much is included in the remainder of the fund. Ms. Calkins said $34,812 has been budgeted for the Conference Center for FY89, and $187,640 has been budgeted for the Hult Center. If additional money comes in, she said it is added to the previous allocations after the audit is completed and the fund balance has been determined. She said the Hult Center and the Conference Center are the only two funds that do not have set dollar amounts for FY89. Mr. Miller asked what impact that kind of changing amount can have on the budget. Mr. Gleason said that was the reason for the reserve being created this year. He said this year's figures stem from a formula that was developed by a group headed by Mayor Obie that tried to sort out what funds were going to go to the Arts Commission, the Cultural Arts Commission, and the Eugene Arts Foundation. Mr. Miller said he is concerned that there are not fixed dollar amounts. Mr. Gleason said he will research the agreement reached between the three major arts organizations and report back to the council. e MINUTES--Eugene City Council June 27, 1988 Page 8 e Ms. Schue said she is interested in the amount of money that is involved. She asked if there is anyway to estimate how much the remainder might be. Ms. Calkins repeated that the remainder is $187,640 for the Hult Center, and approximately $35,000 for the Conference Center. She said there was an approximate increase in room tax revenues of $90,000 this year. In response to a question from Mr. Holmer, Ms. Calkins said further appropriations of remaining funds will have to come back to the council through a supplemental budget action. Ms. Bascom pointed out this is the last year that the City is using room tax money to support performing arts organizations. Ms. Wooten said the reason the City has been phasing out its support to those organizations is because the Eugene Arts Foundation was going to offset the City's contribution. She said she is concerned that has not happened. She said it would be helpful to receive a report from the foundation on how the substitution of private for public money is proceeding. Ms. Wooten said she is not certain that she agrees with forwarding the fund balance to the Hult and Conference Center when the City is cutting programs and cultural services that serve a broad range of the public. She suggested the council take another look at the policy of providing the money to the Hult Center on an ongoing, IIblind" basis. Mayor Obie said that issue will be able to be addressed later when the e council takes up a supplemental budget item. In future discussions of fixed dollar items, Mr. Miller said it would be helpful for staff to note the options if additional or less money is found. Res. No. 4089--A resolution concerning Room Tax Funds; repeal- ing Resolution No. 4045; and adopting new guidelines. Mr. Holmer moved, seconded by Ms. Bascom, to adopt the resolution. Roll call vote; the motion carried unanimously, 8:0. IX. RESOLUTION PROVIDING FOR INTERIM FINANCING FOR LOCAL IMPROVEMENT PROJECT City Manager Mike Gleason introduced the item. Mr. Wong presented the staff report. He said staff is recommending the City negotiate a line of credit for $6 million to provide interim financing of local improvements to the City. He said the City currently has approximately $3.5 million in outstanding warrants that mature September 1, 1988, and needs an additional $2.2 million to fund local improvement projects during the current summer construction season. e MINUTES--Eugene City Council June 27, 1988 Page 9 . Mr. Wong said staff proposes to payoff the outstanding warrants and fund current cash needs for the new projects with draws against the line of credit, and to go to market with a Bancroft Bond issue in January 1989. The Bancroft Bonds would provide the permanent financing for the projects and repay the draws against the line of credit. Res. No. 4090--A resolution authorizing the Finance Director to negotiate a line of credit or revolving credit facility and related documents in an aggregate principal amount not to exceed $6,000,000 at any time outstanding in any fiscal year for the purpose of providing inter- im financing of local improvements of the City. Mr. Holmer moved, seconded by Ms. Bascom, to adopt the resolution. Roll call vote; the motion carried unanimously. X. ORDINANCE AUTHORIZING ACQUISITION BY CONDEMNATION OF STREET RIGHT-OF-WAY FOR IMPROVEMENTS ON TANEY STREET City Manager Mike Gleason introduced the item. He said staff does not anticipate needing condemnation for the street improvements. However, he said the ordinance gives the City that option if necessary. CB 3055--An ordinance authorizing the institution of e proceedings in eminent domain for the acquisition by condemnation of property interests along Taney Street between Barger Drive and Marshall Street for the purposes of construction of street improvements; and declaring an emergency. Mr. Holmer moved, seconded by Ms. Bascom, that the bill, with unanimous consent of the council, be read the second time by council bill number only, and that enactment be considered at this time. Roll call vote; the motion carried unanimously, 8:0. Council Bill 3055 was read the second time by council bill number only. Mr. Holmer moved, seconded by Ms. Bascom, that the bill be approved and given final passage. Ro 11 ca 11 vote; a 11 councilors voting aye, the bill was declared passed (and became Ordinance No. 19567). e MINUTES--Eugene City Council June 27, 1988 Page 10 ----- . XI. FINDINGS OF HEARINGS OFFICIAL/APPROVAL OF IMPROVEMENT PROJECT (GREENACRES) (JOB #2373) City Manager Mike Gleason introduced the item. Mr. Holmer moved, seconded by Ms. Bascom, to approve the Hearings Official findings and recommendations of May 14, 1988, and to approve the improvements for traffic signal at the intersection of Delta Highway and Greenacres Road. Roll call vote; the motion carried unanimously, 8:0. XII. FINDINGS OF HEARINGS OFFICIAL AND APPROVAL OF IMPROVEMENT PROJECT-- SEWER PUMP STATION STERLING VIEW ESTATES (JOB #2392) City Manager Mike Gleason introduced the item. Mr. Holmer moved, seconded by Ms. Bascom, to approve the Hearings Official findings of June 20, 1988, and to approve the improvements for a sewer pump station on Walton Lane, 1300 feet north of Honeywood Street, to serve Sterling View Estates Phase II and contiguous property currently outside City limits. Roll call vote; the motion carried unanimously, 8:0. e XIII. DOWNTOWN COMMISSION APPOINTMENT City Manager Mike Gleason introduced the item. Ms. Wooten said she was not able to attend the interviews with candidates, and was also not able to listen to the tapes of those interviews. She asked if this barred her from voting. Mr. Sercombe said the only time a councilor is barred from voting is when the council is in a quasi-judicial procedure. He said this matter does not qualify as a quasi-judicial procedure. Ms. Ehrman said she was pleased with all the candidates who applied. She encouraged those applicants who are not selected to reapply. Mr. Holmer moved, seconded by Ms. Bascom, to appoint Sue Pritchard, 2671 Emerald Street, 97403, to the Downtown Commission for a term ending December 31, 1989. Roll call vote; the motion carried unanimously, 8:0. Mayor Obie turned the meeting over to Mr. Holmer for consideration of the Interim Sign Code ordinance. - MINUTES--Eugene City Council June 27, 1988 Page 11 .~ . XIV. ORDINANCE CONCERNING AN INTERIM SIGN CODE City Manager Mike Gleason introduced the item. In response to a question from Ms. Wooten, Terry Smith, Public Works Department, said the interim ordinance does allow for billboards on limited access freeways. Mr. Rutan affirmed that the interim ordinance reflects the consensus of the council on each of the five issues. Mr. Miller said the council received a note from some realtors concerned over the impact of changes in the interim ordinance. Mr. Smith said the interim ordinance does not pose a problem for realty signs. Ms. Ehrman said she will be voting in favor of the ordinance, although she said she has reservations about billboards. CB 3056--An ordinance concerning the Sign Code; amending Sections 8.615, 8.620, 8.625, 8.630, 8.635, 8.640, 8.645, 8.650, 8.655, 8.656, 8.670, 8.690, 8.695, 8.700, 8.710, 8.720, 8.725, 8.756, and 8.795 of the Eugene Code, 1971; repealing Sections 8.660, 8.665, 8.671, 8.672, 8.705, 8.785, and 8.790 of that code; and declaring an emergency. e Ms. Bascom moved, seconded by Ms. Schue, that the bill, with unanimous consent of the council, be read the second time by council bill number only, and that enactment be considered at this time. Roll call vote; the motion carried unanimously, 8:0. Council Bill 3056 was read the second time by council bill number only. Ms. Bascom moved, seconded by Ms. Schue, that the bill be approved and given final passage. Ro 11 ca 11 vote; a 11 councilors voting aye, the bill was declared passed (and became Ordinance No. 19563). The meeting was adjourned at 8:41 to June 29, 1988. Respectfully submitted, ~~lr, Micheal D. Gleason City Manager (Recorded by Todd Nissen) mncc062788 e MINUTES--Eugene City Council June 27, 1988 Page 12