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HomeMy WebLinkAbout05/26/1982 Meeting - e - - .~ M I NUT E S Eugene City Council City Council Chamber May 26, 1982 11:45 a.m. COUNCILORS PRESENT: D. W. Hamel, Gretchen Miller, Emily Schue, Betty Smith, Cynthia Wooten, John Ball (12:05 to adjournment). COUNCILORS ABSENT: Eric Haws, Mark Lindberg, Brian Obie. Adjourned meeting of the City Council of the City of Eugene, Oregon, was called to order by His Honor Mayor Gus Keller. I. ITEMS FROM MAYOR AND COUNCIL A. Suggestions for Naming Area of Performing Arts Center, Eugene Conference Center, and Eugene Hilton Hotel Ms. Wooten asked that the names Cascade Plaza, Willamette Plaza, McKenzie Square, and McKenzie Plaza be added to the list of suggested names for this area. Ms. Miller added Willamette Square. Ms. Smith added Skinner Plaza. B. Request for Information on Mall Use Permit System Councilor Miller requested a report from the Parks Department on the mall use permit system. She suggested that this item be placed on the agenda for the last council meeting in June. C. Status Report on Funding for Construction of the Wastewater Treatment Plant Councilor Smith said that congressional bills for construction funds of $2.4 billion that the Wastewater Management Commission had been hoping for had passed the House of Representatives and had been reported out of committee in the Senate. She felt that passage looked positive. She also reported that the Budget Committee for the Treatment Plant had met earlier in the day and had approved a construction budget for the plant, with hopes that if the $2.4 billion is allocated, the State will receive the funds this year. The committee also anticipated selling additional bonds of $7 million to $8 million in July or August. D. Historic Designation for Eugene Hotel Building Mayor Keller said that he had been asked by the owners of the Eugene Hotel to testify before the Governor's Advisory Committee on Historic Preservation in support of historic designation for the hotel building. Council members agreed by consensus to extend the support of the council for this designation. MINUTES--Eugene City Council May 26, 1982 Page 1 e e - - ,j II. CONSIDERATION OF FILLING COUNCILOR VACANCY CREATED BY RESIGNATION OF COUNCILOR HAWS (memo distributed) Mayor Keller said that he had been in touch with John Ball, who had been nomi- nated in the May 18, 1982, election to the Ward 6 council position, and that Mr. Ball was present and prepared to serve. Ms. Schue moved, seconded by Ms. Smith, that the council accept the resignation of Councilor Eric Haws. Roll call vote; motion carried unanimously. Councilor Miller expressed her appreciation for the work done by Councilor Haws during his seven and one-half years on the council. She felt that he had made a good contribution to the City and had increased the council's awareness of the problems and concerns of the Bethel-Danebo area. Councilor Schue agreed and expressed the appreciation of the council for Mr. Haws' service. The Mayor noted that he would be sending a letter to Mr. Haws conveying his thanks. Ms. Schue moved, seconded by Ms. Smith, to appoint John Ball to fill the Ward 6 council vacancy. Roll call vote; motion carried un animous ly. John Ball was sworn in by City Recorder Warren Wong. Councilor Ball was seated on the council. III. DISCUSSION OF COUNTY TAX BASE PROPOSAL Assistant City Manager David Whitlow introduced Paget Engen, City Lobbyist. Ms. Engen reported that the Lane County Budget Committee had recommended to the Board of Commissioners that an "A" Ballot be placed before the voters, with $2.5 million from this levy allocated to the operations of the County Sheriff and the District Attorney and $538,000 allocated to such things as social service programs, the County Extension Service, animal control, and the County's dues to the Lane Council of Governments (L-COG). She said that the Budget Committee had made this recommendation in conjunction with recommendations for $3 million in budget cuts, reorganization and consolidation of current programs, reduction in administrative costs, and reduction in contingency funds. In addition, the Budget Committee had anticipated a loan of $1 million from the road fund. Ms. Engen said that at the time this presentation was made to the commissioners, the commissioners had allowed Mayor Keller and Springfield Mayor Lively to speak on the results of their discussions with representatives of other juris- dictions on County budget matters. Mayor Keller referred to the discussion of this matter at the May 24, 1982, council meeting. He said that, pursuant to the request of the council at that meeting, he had attempted to organize a meeting with representatives of other jurisdictions in Lane County to discuss the County tax proposals. He reported that the representatives of the cities had been unanimous in non-support for the County proposal, based primarily on what they felt to be a lack of recognition on the part of the County of the services provided by the cities and on a strong MINUTES--Eugene City Council May 26, 1982 Page 2 ., e e - .f feeling that placing this matter before the voters in June, as proposed by the County, would not allow time for the public education efforts that would be needed to explain this matter to the public and garner support for it. Mayor Keller noted that there was discussion of a citizen-initiated serial levy to support law enforcement and reported that the cities' representatives had voted unanimously in opposition to such a levy. Mayor Keller said that he was not certain whether the council's message of support for an adequate County budget had been made clear to the commissioners. Ms. Engen then reported on a proposal presented to the County Commissioners earlier in the day by the Sheriff and the District Attorney, calling for revi- sion of the Budget Committee recommendation, with $2.5 million allocated to the Sheriff's and District Attorney's offices and $538,000 returned to the cities, based on per capita figures, for law enforcement. Ms. Engen said that this proposal had subsequently been modified to include support for funding of existing intergovernmental agency agreements. She said that the commissioners had taken no action on this proposal, but that the Budget Committee proposal had been defeated by the commissioners on a 2:3 vote. Ms. Engen said that that the commissioners had asked for comments from the Eugene City Council on the pro- posal of the Sheriff and District Attorney. Councilor Wooten said she believed that the Eugene City Council had demonstrated its support for County efforts to stabilize local government economy. She felt, however, that the County was acting in haste with current proposals and that presenting any County levy proposal to the public should be delayed until September to allow time for the adequate review of all proposals, for informing the voters regarding the proposal, and also for the voters to realize the impact of the loss of County services. She felt that the council should give support for the County's efforts but withhold any recommendation on this proposal. Councilor Miller said that the council should express its appreciation for the County's attempt to address some of the concerns of the City. She felt, how- ever, that the council needed to give thorough consideration to any proposals before acting on them. Ms. Miller said that by her calculations the recommenda- tion of the District Attorney and County Sheriff called for one-sixth of the proposed "A" Ballot levy to be returned to the cities for law enforcement. She questioned how this figure had been derived and wondered if it bore any relation to existing service duplication. She felt that the decision on use of the funds allocated to the City from a County "A" Ballot should be made through normal City budgeting channels and that the County should not impose budgeting prior- ities on the City. Councilor Smith agreed that the council should express its thanks to the County Commissioners for this spirit of cooperation. She felt that it would not be responsible for the the council to take a stand on the County proposals without reviewing a written proposal and staff analysis of that proposal and its impact on the citizens of Eugene and the Eugene budget process. Councilor Schue summarized the concerns that had been expressed by councilors: 1) there needs to be ample time before any ballot measure to allow an oppor- tunity to get information to the voters; 2) essential intergovernmental services MINUTES--Eugene City Council May 26, 1982 Page 3 . - - .1 must be protected; and 3) County Commissioners should be asked to recognize the problems of double taxation facing City residents and the need for some type of tax equalization. Councilor Wooten noted that County Commissioner Scott Lieuallen was present and requested that he be recognized. Mayor Keller recognized Mr. Lieuallen. Ms. Wooten expressed the council's appreciation of the commissioners' efforts. She asked whether the County could borrow road fund moneys to allow postponement of the "A" Ballot until September. Commissioner Lieuallen responded that the County's budget problem was too great to be solved through an interfund loan but needed, instead, to be tied to longer-term financing. He recognized the impor- tance of honoring the County's intergovernmental agreements and of the effect of these agreements on economic development issues. Mayor Keller and the councilors thanked Mr. Lieuallen and the commissioners for their continuing efforts at compromise and at meeting the needs of the cities. IV. ANNOUNCEMENTS, AGENDA ADJUSTMENTS A. Budget Allocation to Eugene Visitor and Convention Bureau Mr. Whitlow said that this matter would be discussed under agenda item VII. B. Bonneville Power Authority Grant for Study of Solar Energy Potential in Eugene-Springfield Area Mr. Whitlow said that a slide show would be presented during the lunch before the June 9, 1982, council meeting on the $32,000 grant which the Bonneville Power Administration had made for a study of the solar energy potential in the Eugene-Springfield area. V. ROUTINE ITEMS FOR COUNCIL APPROVAL A. City Council Dinner Session Minutes of May 10, 1982, and Regular Session Minutes of May 12, 1982 (distributed) Ms. Schue moved, seconded by Ms. Smith, to approve the City Council dinner session minutes of May 10, 1982, and regular session minutes of May 12, 1982. Roll call vote; motion carried unanimously. B. Payment of Bills and Claims (distributed) Res. 3668--A resolution authorizing the payment of bills and claims for the period May 19, 1982, through May 26, 1982. Ms. Schue moved, seconded by Ms. Smith, to adopt the resolution. Roll call vote; motion carried uanimously. MINUTES--Eugene City Council May 26, 1982 Page 4 . v-c. Improvement Petition: Cresta de Ruta (affected property on petition-- assessable costs: sewers, total lateral footage/square footage petition--34,612.5 feet, 100 percent; City cost: none) Mr. Whitlow said that approval of this resolution would allow the City to call for bids on the project and that the council would in the future hold a public hearing on the improvements. Res. 3669--A resolution authorizing sanitary sewer construction between Cresta de Ruta and Capital Drive to serve Tax Lot 18-03-04-3 1--00300, 2995 Capital Drive (2053). Ms. Schue moved, seconded by Ms. Smith, to adopt the resolution. Roll call vote; motion carried unanimously. D. Segregation of Asessments for Properties Located on Woodside Drive (Lot Six, Birdnest Subdivision); Applicant: Thomas Rogers, Ltd. Ms. Schue moved, seconded by Ms. Smith, to approve the segregation of assessments as noted. Roll call vote; motion carried unanimously. VI. PUBLIC HEARINGS A. Pedestrian right-of-way vacation located south from Bardell Avenue and Stonegate Street (Lloyd Lindley) (PD 81-1) (map, background information distributed) e Mr. Whitlow introduced Jerry Jacobson, Planning. Mr. Jacobson said that the request was for vacation of a 15-foot-wide, unimproved pedestrian way leading from Chevy Chase subdivision along Bardell Avenue south to Alton Baker Park. He noted that this matter was before the council in August 1980 and that the council had at that time referred the matter back to the Planning Commission, since additional information was presented at the council hearing which the Planning Commission had not considered. Mr. Jacobson said that following that council meeting staff members from the Planning and Parks departments and the Bicycle Committee had met to examine the bike-pedestrian access in the area of the request and had recommended to the Planning Commission that the vacation be denied and that the City retain the option to provide access to the park. Mr. Jacobson said that as Alton Baker Park develops in the area of the request, the Parks Department envisions constructing a bridge from the pedestrian way across the canoe way to the park. He noted that at the Planning Commission meetings of February 8 and March 8, 1982, the commission had recommended unanimously that the request be denied. Mr. Jacobson said that if the council followed the recommendation of the Planning Commission, councilors would be voting against Council Bill 2481. He noted that the council bill should be corrected to read 15- not 17-foot-wide pedestrian way. Mr. Jacobson noted that John Etter from the Department of Parks and Recreation and Eleanor Mulder of the Planning Commission were present to respond to questions from councilors. - MINUTES--Eugene City Council May 26, 1982 Page 5 e - - . , Public hearing was opened. There being no public testimony, public hearing was closed. Ms. Schue moved, seconded by Ms. Smith, to accept the recommenda- tion of the Planning Commission and of staff and to deny Council Bill 2481. Roll call vote; motion carried unanimously. VI-B. Alley vacation Located North of Cheshire and west of Jefferson Street (Ivorena Properties Oregon Limited LTD.) (AV 81-2) (map, baCkground information distributed Recommended approval by Panning Commission January 11, 982 Vote--6:0 Mr. Whitlow said that this was a routine alley vacation and that staff was available to respond to questions from councilors. Public hearing was opened. There being no public testimony, public hearing was closed. CB 2477--An ordinance authorizing vacation of the south two feet of an eight-foot alley located north of Cheshire and west of Jefferson Street. Ms. Schue moved, seconded by Ms. Smith, that the bill be read the second time by council bill number only, with unanimous consent of the council, and that enactment be considered at this time. Responding to a question from Councilor Wooten, Jim Croteau, Planning, said that a six-foot-wide portion of this alley had been vacated previously and that this item was a housekeeping measure to provide vacation of the full eight feet of the alley. Roll call vote; motion carried unanimously. Council Bill 2477 was read the second time by council bill number only. Ms. Schue moved, seconded by Ms. Smith, that the bill be approved and given final passage. Roll call vote. All councilors present voting aye, the bill was declared passed and numbered 18981 C. Mr. Whitlow introduced Jim Croteau, Planning. Mr. Croteau said that the request was for vacation of the Marshall Avenue cul-de-sac that abuts the Solvang elderly housing development and for vacation of a bikeway easement that crosses the north portion of the Solvang development. Mr. Croteau said that the Plan- ning Commission had recommended approval of the request, contingent upon acqui- sition of the necessary signatures prior to council approval. Mr. Croteau said that the Planning Commission had today received a letter from Paul Hansen and Glen Pedersen of the Solvang Associates, requesting that the council postpone MINUTES--Eugene City Council May 26, 1982 Page 6 e action on this request until its June 30, 1982, meeting, to allow acquisition of additional signatures necessitated by a change in ownership of the project. Mr. Croteau said staff recommended that the council grant the postponement. Ms. Schue moved, seconded by Ms. Smith, to postpone the public hearing and council action on this item until June 30, 1982. Roll call vote; motion carried unanimously. VI-D. Easement Vacation Located South of Cal Young Road and East of Spyglass Drive (Roger's Engineering) (EV 82-1) (map, background information distributed) Recommended approval by Planning Commission March 15, 1982 Vote--5:0 Mr. Whitlow introduced Jim Croteau, Planning. Mr. Croteau said that this was a routine vacation but that he wanted to point out to councilors that it is located in a phase of the Oakway Golf Course. He said that the request was for easement vacations in the Fairway View Drive Subdivision area. He said that when the subdivision was originally platted, the easements were required as part of the plat. He noted that the easements were no longer needed and that the Eugene Water and Electric Board and other public agencies had approved the vacation. He said that the Planning Commission recommended approval. Public hearing was opened. Mark Ferris. 840 Lawrence, said he was the landscape architect and owners' representative for Fairway View Planned Unit Development. He said that the easements were no longer needed, since the services are provided within the e street right-of-way, and that the applicants therefore requested vacation. There being no further testimony, public hearing was closed. CB 2479--An ordinance authorizing vacation of public utility easements located south of Cal Young Road and east of Spyglass Drive. Ms. Schue moved, seconded by Ms. Smith, that the bill be read the second time by council bill number only, with unanimous consent of the council, and that enactment be considered at this time. Roll call vote; motion carried unanimously. Council Bill 2479 was read the second time by council bill number only. Ms. Schue moved, seconded by Ms. Smith, that the bill be approved and given final passage. Roll call vote. All councilors present voting aye, the bill was declared passed and numbered 18982 - MINUTES--Eugene City Council May 26, 1982 Page 7 e e - VII. SUPPLEMENTAL BUDGET NO.6 (memo, detail distributed) Mr. Whitlow said that the council would be considering two separate items: Council Bill 2480 dealing with the supplemental budget, and Resolutions 3672 and 3673 which were a follow-up to the Budget Committee action of May 25, 1982. He said that the supplemental budget was approved by the Budget Committee on May 4, 1982, and was brought to the council on May 19~ 1982~ at which time the council held the item over until the matter of the Convention and Visitors' Bureau could be addressed. He noted that the supplemental budget did include a $6,000 allocation to the Oregon Repertory Theater. CB 2480--An ordinance adopting a supplemental budget; making appropriations for the City of Eugene for the fiscal year beginning July 1, 1981, and ending June 30, 1982, and declaring an emergency. Ms. Schue moved, seconded by Ms. Smith, that the bill be read the second time by council bill number only, with unanimous consent of the council, and that enactment be considered at this time. Ms. Smith said that, in the spirit of the consensus reached at the May 25, 1982, Budget Committee meeting, she would vote for Council Bill 2480, but she hoped that a more refined process for allocating funds from the supplemental budget would be followed in the future. Ms. Schue thanked Ms. Smith for her spirit of consensus and agreed with the hope that this process would not be repeated in the future. Councilor Ball requested information on the proposed $6,000 allocation to the Oregon Repertory Theater. Councilor Wooten responded that there had been a shortfall in Room Tax Fund revenues and that, as a result, allocations to the major performing arts groups, the Convention and Visitors Bureau, the Eugene Peforming Arts Center, and the Parks Department were reduced. She said that the major performing arts groups were nearing completion of development of a peer review process for the allocation of their share of Room Tax Funds, but that the process was not yet complete. She said that, meanwhile, the Oregon Repertory Theater wanted to maintain the tradition of a summer production on the mall, but that there were not Room Tax dollars available for the production, nor was there a process in place for providing an allocation to ORT. She said that ORT had therefore come to the Budget Committee with a request for $6,000 from the contingency fund to match funds raised elsewhere. Ms. Wooten said that the allocation to the Visitors and Convention Bureau had been reduced by approxi- mately $12,000, but that the bureau had already signed contracts with others to provide services. The Convention Bureau had therefore requested $10,000 to fulfill these contracts. Ms. Wooten noted that both requests were one-time-only requests and said it was hoped that a process would be in place for dealing with such allocations in the future. Ms. Smith reiterated her concern that the council not make it a practice using supplemental budget funds for every IIneedy causell that comes along. MINUTES--Eugene City Council May 26, 1982 Page 8 e Councilor Ball said that he would vote against Council Bill 2480, because he opposed the allocation to the Oregon Repertory Theater, but agreed to support the bill on the first reading, so that final reading could take place at this meeting. Roll call vote; motion carried unanimously. Council Bill 2480 was read the second time be council bill number only. Ms. Schue moved, seconded by Ms. Smith, that the bill be approved and given final passage. Roll call vote. Motion carried 5:1, with councilors Hamel, Miller, Schue, Smith, and Wooten voting in favor, and Councilor Ball voting in opposition. The bill was' declared passed and numbered 18983 Res. 3672--A resolution authorizing the transfer of contingency appropriations within a given fund to official budget categories. Ms. Schue moved, seconded by Ms. Smith, to adopt the resolution. Roll call vote; motion carried unanimously. Res. 3673--A resolution acknowledging adjustment to estimated revenues and authorizing the adjustments to appro- priations and expenditures related to those revenues. e Ms. Schue moved, seconded by Ms. Smith, to adopt the resolution. Roll call vote; motion carried unanimously. Mr. Whitlow explained that these two resolutions accomplished the transfer of appropriations to the Convention and Visitors Bureau. VIII. RESOLUTION CHANGING OVERHEAD RATES ON PUBLIC IMPROVEMENT PROJECTS (memo, resolution distributed) Mr. Whitlow introduced Bert Teitzel, City Engineer. Mr. Teitzel said that the purpose of the resolution was to enable the City to recover the actual costs of engineering and financing improvement projects, including assessment projects. He said that the resolution called for an increase of the engineering fee from the current 10 percent to 15 percent and for change of the method of calculating the administrative fee which would raise that fee from the current 8 percent to 2 percent plus actual warrant costs. He said that the resolution also called for adding 3 percent in 1982 to reimburse the General Fund for central service. Mr. Teitzel said that these increases and changes would bring fees charged in line with actual costs to the City. He said that the disparity between current fees and actual costs to the City resulted from:; 1) the way in which the admin- istrative section of the Public Works Department is allocated to the different divisions; 2) leveling off of construction costs over the past few years with no corresponding leveling off of City operating costs; and 3) costs of upgrading City filing systems and development of computer systems. e MINUTES--Eugene City Council May 26, 1982 Page 9 " e e - .'; Mr. Teitzel said that the new fee structure was in line with those of other jurisdictions. Responding to a question from Councilor Wooten, Mr. Teitzel said that the City1s proposed rate of 17 percent for engineering and administrative costs compared with the following rates of other jurisdictions: City of Corvallis--15 percent for engineering, and 1 percent plus the cost of warrant interest; City of Salem--15 percent for engineering, plus 8 percent for adminis- tration; and City of Springfield--actual cost for engineering (from 8 to 12 percent). He noted that the City of Springfield agreed that its figure for overhead was low. Mr. Teitzel noted that private sector firms working in the City of Eugene were charging from 8 to 12 percent for design work only. Councilor Wooten asked whether these charges would be made for City-initiated as well as developer/property-owner initiated projects. Mr. Teitzel responded affirmatively. Ms. Wooten said that she was uncomfortable with raising the fee for the work of City departments on projects initiated by the City. Mr. Whitlow said that the intent of the proposal was to allow the City to recover the costs of design, inspection, bidding, assessments, etc. without having these activi- ties subsidized by the General Fund. Councilor Miller said that this proposal seemed to follow City policy of having adjacent property owners pay the costs of improvements. She said that discussion of saving money within the Public Works Department itself was a separate but appropriate topic for discussion. Res- ponding to Councilor Wooten's concern regarding increasing City fees on City- initiated projects, Ms. Miller said that this concern could be addressed, at least in part, by caution on the part of the City regarding initiation of projects which do not address issues such as the publiC health and safety. Councilor Wooten said that she would oppose the resolution, since she did not believe that the City should impose additional costs on City-initiated projects. Res. 3670--A resolution establishing fees for engineering, inspec- tion, and administrative costs incidental to public improvements and repealing Resolution No. 2365. Ms. Schue moved, seconded by Ms. Smith, to adopt the resolution. Roll call vote; motion carried 4:1, with councilors Hamel, Miller, Schue, and Smith voting in favor, Councilor Wooten voting in opposition, and Councilor Ball abstaining. IX. RESOLUTION AUTHORIZING SALE OF WARRANTS (memo, resolution distributed) Mr. Whitlow introduced David Coombs, Accounting Manager. Mr. Coombs reported on a new process being used by the City in the sale of warrants to fund local improvement projects. He said that lending institutions that had bought the warrants in the past were not interested in buying this type of warrants, because of their portfolios and the tax-exempt status of the warrants. He said the City had also found that, on a cash flow basis, the City would receive the cash sooner and that the new process would create a new market that will improve the City's ability to sell warrants on a competitive basis in the future. MINUTES--Eugene City Council Page 10 May 26, 1982 e " Mr. Coombs said that staff recommended that the council accept the purchase agreement with First Interstate Bank at an interest rate of 9 percent, with a discount of $38,867, which translates to a net interest cost of 9.66 percent. He said that this net interest cost compared favorably with other negotiated sales. Mr. Coombs said that Mike Shangle of First Interstate was present to respond to questions from councilors. Mayor Keller noted that, in the event that the vote of the council was tied on this matter, he would abstain from voting due to a potential conflict of interest. Res. 3671--A resolution authorizing sale of warrants in the amount of $3,886,711. Ms. Schue moved, seconded by Ms. Smith, to adopt the resolution. Roll call vote; motion carried unanimously. X. EUGENE PRIME INDUSTRY COUNCIL/CETA PROGRAM--STATUS REPORT (memo distributed) Mr. Whitlow introduced Gary Long, Administrative Services Director. Mr. Long said that two years ago the council had decided to have the City become aCETA prime sponsor. He reported that the City program had been under way for only five months when it experienced a 50 percent budget cut and was legally required to reorganize its operating structure and program. e Mayor Keller left the meeting. Council Vice President Schue assumed the chair. Mr. Long introduced Ray McIver, Chairperson of the Eugene Private Industry Council (EPIC), to discuss the progress of the CETA program to date. Ray McIver, 2540 Snelling, noted that Rich Cook, Vice Chairperson of EPIC was also present. Mr. McIver said that in its work EPIC had addressed the economic diversification, destination point activity, and small business assistance elements of the City's Six Point Program for Economic Diversification. He reported that to date 720 people had been placed in unsubsidized employment through the City CETA program. Mr. McIver was pleased with the public/private partnership of EPIC. He noted that, in response to a telephone call from the White House, EPIC members would be meeting to develop unsubsidized private- sector summer jobs for youth. Mr. McIver said that CETA staff had done an excellent job with Eugene's program. e Mr. Long introduced Doug Booth, Eugene CETA Director. Mr. Booth used three bar graphs to illustrate the performance record of the Eugene CETA program and to compare the results of Eugene's program with those of Lane County and CETA Region X program averages. He said that the entered employment rate for the Eugene program for the past Federal fiscal year was 69 percent, as compared with 41 percent for Lane County and 47 percent for Region X. He said that the cost per placement for Eugene was $3,999 and $5,000 for Region X. Mr. Booth said that there had been good cooperation between the public and private sectors in MINUTES--Eugene City Council May 26, 1982 Page 11 e e e .. the CETA program. Mr. Booth summarized by stating that the Eugene CETA program had the highest entered employment rate and the lowest costs per placement on all programs, when compared with the other 20 prime sponsors in Region X. Councilor Smith asked about the future of the Eugene Prime Sponsor Program. Mr. McIver said that EPIC had been lobbying members of Congress to maintain the Eugene program and that the situation appeared hopeful, particularly in light of the excellent performance record of the Eugene program. Councilor Schue said she was pleased with the progress of the Eugene program and felt it was a good contributor to the future of business activity in Eugene. XI. EUGENE-SPRINGFIELD AMBULANCE SERVICE--ONE-YEAR STATUS REPORT (memo, full report distributed) Mr. Whitlow noted that at the time that the City had taken over ambulance service operations, the council had requested a report back at the end of the first year of operations. He said that, in making the decision to have the City assume responsibility for ambulance service, the council had directed staff to stabilize service and to develop a program that would not use General Fund moneys. Mr. Whitlow noted that the average response time for the Eugene- Springfield service was under four minutes. He said that medical services provided were excellent and that the program had developed an effective working relationship with the medical community and with Emergency Room physicians. He said that work was now needed on the financial stability of the operation. Mr. Whitlow said that the collection rate and average billing had been lower than estimates made at the start of the program. He said that, as a result, the program had experienced an operational loss of $40,000. He noted that actual billings exceeded expenditures, but that low collection rates were the cause of the loss. Mr. Whitlow noted that staff had proved a range of options for council consideration of the future of the program: 1) maintain the current level of service, but adjust rates to make it self-supporting; 2) reduce the level of service and adjust rates to make the program self-supporting; 3) reduce the level of service without changing rates; 4) provide general fund subsidy for the program; and 5) return the service to the private sector. Mr. Whitlow said that staff recommended that the council approve alternative 1, with rates increased to raise the average billing from the current $195 to $255. Mr. Whitlow noted that, even with this increase, the average bill would still be lower than the $269 experienced by Medical Services, Incorporated, at the time that it ceased operations. Mr. Whitlow also recommended that an interfund arrangement for costs of purchasing capital equipment for the program be rolled into Fiscal Year 1982-83. Mr. Whitlow reported that on May 24, 1982, the Springfield City Council had asked its staff to prepare documents to raise the average billing to $255, pending the action of the Eugene City Council. Mr. Whitlow emphasized that a key element in the success of the service was the joint Eugene-Springfield participation. Councilor Smith suggested that the council request information, similar to that requested by the Springfield Council, on the rate increase request proposals. She said that the council had felt all along that the service should be self-supporting. MINUTES--Eugene City Council May 26, 1982 Page 12 -., . . e e .~ Councilor Hamel said that he had formerly been critical of the management and poor collection rate of this service, but he felt that staff was dOlng a good job and making good effort. Mr. Hamel said he still felt, however, that if a private firm makes an offer to take over the service, the council should give the offer serious consideration. Ms. Smith moved, seconded by Mr. Hamel, that the council accept the staff report and request staff to prepare materials for council consideration, regarding a revised rate structure. Roll call vote; motion carried unanimously. The meeting was adjourned. Respectfully submitted, n;:~. Micheal D. Gleason City Man ager (Recorded by Darcy Marentette) MDG:DCM:db/CM8a1 MINUTES--Eugene City Council May 26, 1982 Page 13