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HomeMy WebLinkAbout03/16/1983 Meeting M I NUT E S e Eugene City Council City Council Chamber March 16, 1983 11:45 a.m. COUNCILORS PRESENT: John Ball, Richard Hansen, Freeman Holmer, Mark Lindberg, Brian Obie, Emily Schue, Betty Smith, Cynthia Wooten. 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 & COUNCIL, APPOINTMENTS, ANNOUNCEMENTS, AGENDA ADJUSTMENTS e A. Proposed Amendment to Resolution No. 3755 (information distributed) Councilor Wooten distributed copies of language drafted at her request by the City Attorney's Office relative to the resolution adopted by the council at its March 14, 1983, meeting regarding allocation of the one-percent increase in the Transient Room Tax Fund approved by the council on that date. She said that the draft language would require an annual review of the way funds generated by the one-percent increase were being spent. Mayor Keller concurred that an annual review was appropriate and would promote a good discussion with the tourism industry and the Eugene-Springfield Convention and Visitors' Bureau. Councilor Obie said that the hotel/motel industry had supported the one-percent increase with the understanding that the funds generated would be dedicated to the promotion of tourism and convention business. He said that he would have difficulty supporting any amendment that would call for annual review of this dedication of those funds. Councilor Wooten noted that the resolution previously adopted by the council had contained similar language. She said the amendment was based on the requirements of contracting law. City Manager Michea1 Gleason added that under contract law the resolution had to indicate that the council had the option of changing the allocation of the funds, but he noted that this did not mean there was any intent to make a change. Councilor Smith referred to the wording of the amendment proposed by Councilor Wooten and asked if the subcommittee identified in the amendment was the Room Tax Committee. Tim Sercombe, City Attorney's Office, said yes, that the intent was to refer review of the allocation to the Room Tax Subcommittee. Ms. Smith noted that a majority of members of the Room Tax Committee had agreed at that group's March 9 meeting that the committee would review the way in which the funds generated by the one-percent increase were spent and would then report to the council on the matter. Mayor Keller suggested that the subcommittee remain undefined in case the council chooses to restructure or rename subcommittees. e MINUTES--Eugene City Council March 16, 1983 Page 1 e e e Councilor Smith said that the Room Tax Subcommittee was reviewing its respon- sibilities and that this review could be added to the group's work program if the council so directs. Councilor Obie asked how the proposed language differed from the resolution adopted on March 14. Mr. Sercombe responded that the resolution adopted on March 14 stated that the Room Tax Subcommittee may from time to time make recommendations to the City Council and that the suggested new language would make such a report mandatory once per year. Mr. Obie noted that the hotel/motel industry had originally wanted to take the matter to the voters to have the tax dedicated and that the City had said this was unnecessary. Mr. Obie felt that it would not be in good faith to change this stand without first discussing the matter with the industry. Mayor Keller responded that no change was intended, just a review. He noted that industry representatives had been present at the March 14 meeting when the council discussed the matter of an annual review and that he had not been contacted with any concerns about the proposal. Councilor Smith said she had discussed the matter of annual review with industry representa- tives and had told them that it was standard City procedure. She said their concern was that the Room Tax Committee, which includes industry representatives, be the body that conducts the review and then reports to the council and that they had supported the resolution with the understanding that this is how the review would be conducted. Councilor Hansen said that he was concerned with the review of the allocation of the one-percent increase. He felt the only issue to be reviewed was whether the funds were being used well. He felt there needed to be assurances, especially for the Convention and Visitor's Bureau, that this was long-term funding. Councilor Schue said that the council had committed itself to funding for the bureau, but she was concerned that if the bureau's efforts are successful and the revenues generated by the additional one percent are large, the bureau might not need the entire amount. She felt that the door should be left open for considering other use of the funds or a portion of them. Ms. Wooten moved, seconded by Ms. Schue, that the City Council direct the City Attorney to bring back language which properly amends the resolution adopted regarding the allocation of a one-percent increase in the Room Tax funds as outlined in the memo distributed by Ms. Wooten. Roll call vote. Vote of the council was tied 4:4, with Councilors Ball, Lindberg, Schue, and Wooten voting in favor, and Councilors Hansen, Holmer, Obie, and Smith voting in opposition. Mayor Keller broke the tie with a vote in favor. Motion carried. Councilor Holmer said he felt there was no purpose to the amendment. He did not feel that review should be limited to annual reviews, but, rather that the use of the allocation should be reviewed as often as the council deemed necessary. Councilor Obie moved, seconded by Ms. Smith, that the language be brought before the Room Tax Committee for its recommendation prior to being brought before the City Council. MINUTES--Eugene City Council March 16, 1983 Page 2 e Councilor Wooten said that she believed this motion was merely a delaying tactic, since the Room Tax Committee had already indicated it did not believe that an annual review was necessary. Councilor Obie responded that he wanted to hear from the Room Tax Committee whether the industry is supportive of the proposed language, since he believed the committee supported the tax increase due to the council's commitment regarding dedication of the funds to promotion of tourism and conventions. Roll call vote. Vote of the council was tied 4:4, with Councilors Hansen, Lindberg, Obie, and Smith voting in favor, and Councilors Ball, Holmer, Schue, and Wooten voting in opposition. Mayor Keller broke the tie with a vote in opposition. Motion failed. B. Activities of Councilors on Recent Trip to Washington, D.C. Councilor Lindberg said that he had testified before the House Education and Labor Subcommittee on employment opportunities regarding labor and jobs bills now before the Congress, particularly the Community Renewal Employment Act. Mr. Lindberg said he had urged that, if this effort is funded, the program be made flexible enough to allow the City to use funds while maintaining its existing economic development and job development strategies. Councilor Schue said that while in Washington she had worked in the area of revenue sharing. e C. Appointments 1. Balloting for interviewees for Citizen Involvement Committee opening; set interview time (ballot, applications distributed) Councilors submitted ballots for interviewees for the opening on the Citizen Involvement Committee. Mr. Gleason suggested that interviews be held at 10:45 a.m. on April 13, 1983. 2. Consideration of appointment to the Metropolitan Area Planning Advisory Committee (memorandum distributed) Ms. Schue moved, seconded by Mr. Obie, to appoint Jeffrey Wilson, 2650 University, to the Metropolitan Area Planning Advisory Committee, term to expire June 30, 1984. Roll call vote; motion carried unanimously. 3. Consideration of replacement on Minority Commission Ms. Schue moved, seconded by Mr. Obie, to appoint Robin Johnson, 1163 West 11th Avenue, Eugene, currently an alternate to the Minority Commission, to fill the unexpired term of Grady Radford, term to expire 1/1/85. 4. Councilor to serve on the Metropolitan Wastewater Management Commission Advisory Committee e MINUTES--Eugene City Council March 16, 1983 Page 3 - - e Mayor Keller asked for a councilor to volunteer to serve on the Metropolitan Wastewater Management Commission Advisory Committee. Councilor Holmer said he did not believe it was necessary to have this position filled by a council member, since two councilors already serve on the commission itself. He sugges- ted the Mayor and council consider appointing a lay citizen to this position. Councilor Smith said that there had been an indication that it was not absolutely necessary to have the representative on the committee be an elected official. Mayor Keller said that he would pursue the matter. D. Announcements 1. River Road/Santa Clara Service Plan (memorandum distributed) Mr. Gleason referred to the memorandum which had been distributed to councilors regarding development of a sewer service plan for the River Road/Santa Clara area. He noted that the Metropolitan Area General Plan requires that Eugene and Lane County cooperate in development of such a plan. He referred to a $7 million grant which could be available for construction of the main trunk line and noted that the City of Eugene was the only agency which could act on this grant in a timely fashion. He said that City staff was working with staff from Springfield and Lane County to develop a citizen advisory group to begin work on the plan. Mr. Gleason noted that these actions would not affect the incorporation efforts currently being carried forward in River Road/Santa Clara and that the City continued to follow a policy of leaving River Road and Santa Clara alone, while still providing options for solutions to sewer problems when such problems arise. 2. Possibility of Litigation Regarding Sewer User Rate Increase (memorandum distributed) Councilor Hansen asked for clarification of the possible effects of efforts under way in Springfield to challenge the implementation of the adopted sewer user rate increase. Mr. Gleason responded that a referendum petition had been circulated in Springfield to place the rate increase issue on the ballot. He said that when the voters approved the bonds accepting the Federal grant for construction of the treatment plant, it had been agreed that the plant would be operated through user fees. He noted that this was also a requirement of the Department of Environmental Quality for the County Service District. He said that the Metropolitan Wastewater Managmement Commission (MWMC) and the two cities were therefore obligated to implement user fees. Regarding the petition proceedings, Mr. Gleason said that in general the courts tend to let such a referendum vote take place and then rule on whether the matter was administra- tive or legislative and whether the referendum results should therefore be overturned. He said that for this reason the MWMC and the County Service District may be forced into litigation with Springfield to enjoin Springfield from holding the referendum. He said that none of this would affect the City of Eugene's user rate, which would remain as previously approved by the council. MINUTES--Eugene City Council March 16, 1983 Page 4 II. ROUTINE ITEMS FOR COUNCIL APPROVAL e A. Consideration of City Council Minutes of February 14, 16, and March 2, 1983, and the Legislative Subcommittee Minutes of March 2, 1983 (minutes distributed) Ms. Schue moved, seconded by Mr. Obie, to approve the City Council minutes of February 14, 16, and March 2, 1983, and the Legislative Subcommittee minutes of March 2, 1983. Roll call vote; motion carried unanimously. B. Improvement Petition for Paving Alley Between Ferry Street and Patterson Street from 17th Avenue to 18th Avenue (assessable costs: paving, percent in favor in accordance with weighted front footage, 50%; paving, percent in favor in accordance with weighted area, 54%; City cost, intersection aprons, $1,500) (2067) Res. No. 3759--A resolution authorizing alley paving between Ferry Street and Patterson Street from 17th Avenue to 18th Avenue. (2067) Ms. Schue moved, seconded by Mr. Obie, to adopt the resolution. Roll call vote; motion carried unanimously. III. PUBLIC HEARINGS e A. Withdrawal of Property located on the east side of Prairie Road, south of Be1tline, from the Junction City Water Control District (ordinance distributed) (Maxwell A/l 82-1) Mr. Gleason said that this was a routine item related to annexation of the Maxwell property, which the council had previously heard and recommended to the Boundary Commission for approval. Public hearing was opened. There being no testimony, public hearing was closed. CB 2618--An ordinance providing for withdrawing from the Junction City Water Control District of Lane County, Oregon, that part of the district annexed to the City of Eugene by Final Order No. 790 of the Lane County Local Boundary Commission on February 3, 1983; and declaring an emergency. Ms. Schue moved, seconded by Mr. Obie, 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. e MINUTES--Eugene City Council March 16, 1983 Page 5 - Council Bill 2618 was read the second time by council bill number only. Ms. Schue moved, seconded by Mr. Obie, that the bill be approved and given final passage. Roll call vote. All councilors present voting aye, the bill was declared passed and numbered 19119. Supplemental Budget #5 (memos, resolution, details distributed) B. Mr. Gleason noted that the supplemental budget had been reviewed at the March 15, 1983, Budget Committee meeting. He introduced Finance Director Warren Wong. Mr. Wong recommended that Resolution No. 3760, authorizing an interfund loan from the Community Conference Center Fund to the Performing Arts Center Fund, be withdrawn from council consideration. He noted that staff had distributed material revising Council Bill 2619 and recommended that this bill be adopted as revised. Resolution No. 3760 was withdrawn. Referring to items in the supplemental budget, Mr. Wong noted that the adjustment in the County serial library levy was the result of delinquent property tax collections. He said that no capital projects were involved and that funds would be used to acquire books and equipment and to do a feasibility study on relocation of the library. He said that the grant from the Oregon Department of Energy would fund a study of energy efficiency in City facilities. He noted that the adjustment to the budget of the Facilities Development Department was made in recognition of the completion of work on the Performing Arts Center and the Conference Center and subsequent reallocation of staff to other projects. ~ Public hearing was opened. There being no testimony, public hearing was closed. CB 2619--An ordinance adopting a Supplemental Budget; making appropriations for the City of Eugene for the fiscal year beginning July 1, 1982, and ending June 30, 1983; and declaring an emergency. Ms. Schue moved, seconded by Mr. Obie, that the bill be adopted as revised and 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 2619 was read the second time by council bill number only. Ms. Schue moved, seconded by Mr. Obie, that the bill be approved and given final passage. Roll call vote. All councilors present voting aye, the bill was declared passed and numbered 19120. - MINUTES--Eugene City Council March 16, 1983 Page 6 ,e e e IV. COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR FY82 (memo, resolution, additional information distributed) Mr. Gleason introduced Finance Director Warren Wong. Mr. Wong introduced Dave Lilley, Accounting Supervisor, who prepared the financial statements. Mr. Wong referred to the FY82 Annual Report and the Management Letter from Peat, Marwick, Mitchell and Company (PMM&Co). He said that PMM&Co had recommended further examination of the internal control systems and financial records for the Hu1t Center. He said that his staff had been working with Hult staff to improve these systems and that he believed the internal and management control proced- ures at the center were now operating at an acceptable level. He said PMM&Co had noted that the Risk Management Fund reserves were higher than they need to be, since they were based on premium levels prior to initiation of the current risk program. He said staff would therefore be recommending a transfer of surplus risk funds to the General Fund for use in non-recurring expenditures. Mr. Wong stated that PMM&Co had also raised questions as to the timeliness of the City's financial reporting. He said that staff had been reorganized to address this concern and that the City was in the process of developing an Integrated Financial Information System that would bring reporting capabilities up to the state of the art. Mr. Wong said that PMM&Co had recommended estab- lishment of an audit committee, but he noted that staff felt the existing functions of the Budget Committee and the City Council fill that role. Mr. Wong concluded by stating that staff would report back to the council at a future time regarding the effect on the City of recent pronouncements regarding audits and the Federal government's single audit concept. Councilor Wooten asked what the responsiblities of the Performing Arts Commission were regarding audits. Mr. Wong responded that the commission is responsible for budget review but not for performance review. Councilor Wooten suggested that the commission could act as a mini-budget committee for the Performing Arts Center and make recommendations to the Budget Committee and the council. Councilor Lindberg asked if all those involved were satisfied with having the council and Budget Committee serve as the audit committee. Mr. Wong responded that staff believed this was the best approach. Councilor Holmer asked whether staff proposed to have the council, functioning as an audit committee, act on all aspects of the external audit. Mr. Gleason responded that in most cities the budget committee meets only once per year, to form the budget. He noted that in Eugene the committee meets quarterly to review expenditures and thus would be in a position to serve as budget implementation review committee. Councilor Holmer commended staff on the unqualified audit. He expressed concern regarding the use of source program libraries and the security of electronic data. Mr. Wong said that while he could not speak for the Information Services Division he believed that there were internal control systems as well as control by a systems librarian. MINUTES--Eugene City Council March 16, 1983 Page 7 - Res. No. 3761--A resolution accepting measures taken to correct deficiencies disclosed in the Comprehensive Annual Financial Report for the fiscal year ending June 30, 1982. Ms. Schue moved, seconded by Mr. Obie, to adopt the resolution. Roll call vote; motion carried unanimously. Mr. Gleason noted that because of the sorts of concerns raised during this discussion, staff recommended that no cutbacks be made in the Administrative Services Department. V. DOWNTOWN DEVELOPMENT DISTRICT TAX MEASURE (memo, resolution, ordinance distributed) e Mr. Gleason introduced Finance Director Warren Wong. Mr. Wong noted that the Budget Committee had reviewed this item last night. He said that the Downtown Development District taxes itself to fund the free parking program and that the City Attorney's Office has recommended that this matter be taken to the voters annually. Mr. Wong said staff recommended that the item be placed on the May 17 ballot, so that the cost of the election could be shared with overlapping jurisdictions using that ballot and so that the subsequent election date of June 29 could be used as a fall-back date. Mr. Wong noted that sharing the cost of the election could save the City at least $9,000 in election costs. Res. No. 3762--A resolution referring Measure No. 51 to the legal voters of the City of Eugene, authorizing the City to tax owners of property within the Downtown Development District $190,588 outside the consti- tutional six-percent limitation for 1983-84. Ms. Schue moved, seconded by Mr. Obie, to adopt the resolution. Roll call vote; motion carried unanimously. CB 2620--An ordinance ordering an election to be conducted by the Lane County Election Department on the 17th day of May, 1983, for the purpose of submitting to the legal electors of the city of Eugene a measure authorizing a $190,588 tax on ownership of real property in the Downtown Develop- ment District; adopting polling places and providing for all acts necessary for the carrying on of said election; and declaring an emergency. Ms. Schue moved, seconded by Mr. Obie. 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 2620 was read the second time by council bill number only. - MINUTES--Eugene City Council March 16, 1983 Page 8 e Ms. Schue moved, seconded by Mr Obie, that the bill be approved and given final passage. Roll call vote. All councilors present voting aye, the bill was declared passed and numbered 19121. VI. ITEMS FROM MAYOR AND COUNCIL, APPOINTMENTS, ANNOUNCEMENTS A. Schedule Interviews for Citizen Involvement Committee Ballots were submitted as follows: Councilor Ball: Sylvia Gagnon, Ione Pierron, Richard Guske. Councilor Hansen: Laura Johnson, Sandy Cutler, Bruce Mallory. Councilor Holmer: Edward "Sandy" Cutler, Laura Johnson, Karen Alvarado. Councilor Lindberg: Karen Alvarado, Richard Guske, Sylvia Gagnon. Councilor Obie: Sandy Cutler, Bruce Mallory. Councilor Schue: Sandy Cutler, Sylvia Gagnon, Richard Guske. Councilor Smith: Karen Alvarado, Sandy Cutler, Bruce Mallory. Councilor Wooten: Dick Guske, Julie Roswall, Sandy Cutler. e Mayor Keller announced that balloting for interviewees for the opening on the Citizen Involvement Committee had produced Sandy Cutler and Richard Guske as the two top vote-getters, followed by a three-way tie. Councilors agreed to interview Messrs. Cutler and Guske at 11:00 a.m. on April 13, 1983. B. Council Participation in St. Patrick's Day Parade It was agreed that Council Administrator Patrick Lynch would coordinate council participation in the St. Patrick's Day Parade. C. Council Spring Break Mr. Gleason announced that, following adjournment of this meeting, the council would take a two-week break. D. Scheduling Change for Meeting of Council Subcommittee on Economic Diversification Members of the Council Subcommittee on Economic Diversification agreed to reschedule the meeting of March 17, 4:00 p.m., to March 18, noon. Meeting was adjourned. Respectfully submitted, --'"-/?'-~- ~~ ,pT./ ~ / ~~;Jt~" ~icheal D. eason City Manager (Recorded by Darcy Marentette) MDG:DCM:pm/CM7a17 - MINUTES--Eugene City Council March 16, 1983 Page 9