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HomeMy WebLinkAbout02/13/1985 Meeting (2) M I NUT E S . Eugene City eouncil City Council Chamber February 13, 1985 Noon COUNeILORS PRESENT: Emily Schue, eynthia Wooten, Freeman Holmer, Richard Hansen, Ruth Bascom, Debra Ehrman, Roger Rutan, Jeff Miller. Adjourned meeting of February 11,1985, of the Eugene eity eounci1 was called to order by His Honor Mayor Brian B. Obie. I. ITEMS FROM MAYOR AND eOUNCIL, APPOINTMENTS, ANNOUNCEMENTS, AGENDA ADJUSTMENTS A. Bike Racks at Hult Center e Ms. Bascom said wooden bike racks have been installed at the Hult Center by the Support Hult Organization (SHO). She asked the Mayor to send a letter of appreciation to SHO for the donation. B. Downtown Parking Ms. Ehrman will attend a meeting on downtown parking tonight. She welcomes comments from other councilors. e. Intergovernmental Efficiencies Mayor Obie met with Mike Williams, President of the 4-J School Board, and discussed efficiencies in such things as the maintenance of adjacent properties. Mr. Williams asked for an opportunity to inform the council of the growth in community schools. Ms. Wooten is the liaison from the council to the eommunity Schools eoordinating eommittee. She said the committee made a presentation to the council in the fall. Mayor Obie was absent that day. Mayor Obie indicated he will respond in writing and can suggest that Mr. Williams express his personal feelings about community schools in writing. e D. Future eounci1 Meetings Mayor Obie suggested the regular council meeting of February 25 be cancelled and a dinner/work session be scheduled so that the council can work on the Capital Improvement Program and the Eugene Agenda. He suggested scheduling a public hearing on the Eugene Agenda (March 4) and then scheduling a council meeting to consider its adoption at a later time (March 13). Other councilors agreed with the change in schedule. MINUTES--Eugene eity Council February 13, 1985 Page 1 E. Appointments 1. Mayor's Notification of Airline Service Task Team (memo distributed) . Mayor Obie said the Airline Services Task Team will have four tasks. They are: 1) To evaluate the number of seats available and frequency of schedules from airlines serving Eugene; 2) To investigate the possibility of earlier arrivals of Eugene flights into the San Francisco area; 3) To investigate air fare structures to California destinations; and 4) To assist in the recruitment of additional schedules, where appropriate. He said the Airline Services Task Team will cooperate with and report to the Airport Commission. 2. Mayor's Notification of Sister City eommittee Chair Mayor Obie said Councilor Holmer had worked hard at invigorating the Sister eity Committee. Councilors will be asked to participate here and in Japan. He notified the council that he has appointed Ted Baker as Chair of the Sister eity Committee. Mayor Obie reminded councilors of Eugene's Sister City in Korea. 3. Mayor's Nominations to Interim Community Development Committee, Oregon Museum Park Commission, and Sign Code Board of Appeals (memo distributed) Ms. Wooten moved, seconded by Mr. Hansen, to approve the following nominations: - Airline Services Task Team Bruce ehase, Chair, Airport eommission Louise Wicks, Airport Commission Robert Kime, Airport Commission Ehrman Giustina, Chamber of eommerce Aviation Committee Greg Bronson, Chamber of eommerce Aviation Committee Kurt Schauwecker, ehamber of Commerce Aviation Committee Richard Kossol, Spectra Physics Jerry Fisher, Hewlett-Packard Robert Bolton, Atlas eylinders Ron Young, First Interstate Bank Interim eommunity Development eommittee Tom Schott (term expiration: 4/23/85)--2011 Woodlands Oregon Museum Park Commission Tom Hoyt (term expiration: 1/01/89)--460 Palomino Dr. e MINUTES--Eugene City Council February 13, 1985 Page 2 e - . Sign eode Board of Appeals Angela Dean--2092 Roland Way Gloria Timmons--2825 Elinor Street Roll call vote; the motion carried unanimously, 8:0. II. ROUTINE ITEMS FOR COUNCIL APPROVAL A. City Council Minutes of January 9, 1985; January 14, 1985; January 21, 1985; and January 28, 1985, and Legislative Subcommittee minutes of February 1,1985 (minutes distributed) Ms. Wooten moved, seconded by Mr. Hansen, to approve City Council minutes of January 9, 1985; January 14, 1985; January 21, 1985; and January 28, 1985, and Legislative Subcommittee minutes of February 1, 1985~ Roll call vote; the motion carried unanimously, 8:0. B. Segregation of Assessment for Property Located North on Cal Young Road, West of Fir Acres Road; Applicant: Fred G. Vandehey (SE 85-1) Ms. Wooten moved, seconded by Mr. Hansen, to approve the segregation of assessment as noted. Roll call vote; the motion carried unanimously, 8:0. C. Resoluti_on Designating Those Authorized to Sign (memo, resolution 'distributed) Res. No. 3897--A resolution designating those authorized to sign checks on behalf of the City of Eugene; authorizing depository transfer checks; designating those authorized to sign grant applications, bonds, contracts, etc., on behalf of the City; repealing Resolution No. 3872; and declaring an emergency. Ms. Wooten moved, seconded by Mr. Hansen, to adopt the resolution. Roll call vote; the motion carried unanimously, 8:0. III. ORDINANCES/RESOLUTION CONCERNING ALIGNMENT FOR 6TH/7TH AVENUES/CALLING MARCH 26,1985, ELECTION (memo; r-esolution and ordinances distributed . eity Manager Micheal Gleason introduced the agenda item. Chris Andersen, Public Works Director presented the staff report. She referred to her memo dated February 13, 1985, to the councilors giving responses to questions about the weave alignment recommended by the Design Review Committee for the 6th/7th Avenue Project. She said a four-and-a-half foot planting strip between the MINUTES--Eugene City Council February 13, 1985 Page 3 - e e curb and the sidewalk was incorporated into the project design. The planting strip could be eliminated and a seven-foot sidewalk constructed in some locations to mitigate the impact of the project, but such a pedestrian way is not appropriate for streets like 6th and 7th and that option would have to be considered carefully. It was considered at sites such as the Texaco Station, but two or three feet of right-of-way would still be needed and the station would have to be relocated anyway. The weave alignment will also impact the Midas Muffler Shop and the Skin Diver's Shop and damages will be associated. The project will follow Federal requirements for right-of-way acquisition and relocation. They include a choice of compensation for the property owner. Answering a question from Ms. Wooten, Ms. Andersen said a restriping plan which would provide the same number of spaces could be designed for the parking lot at Gray's Feed and Seed. The cost of saving the trees in the weave alignment is associated with impacts and right-of-way acquisition. The cost will be between $300,000 and $400,000. The estimate is not based on an appraiser's report. The prepared ordinance includes a provision for a fund for maintenance of street trees because Ballot Measure 52 which resulted in the Historic Street Tree Charter Amendment requires such a fund. The State and the City will negotiate about it and incorporate it into the agreement. It will be a one-time, percentage of the project cost. The contractor will be required to maintain two lanes of traffic and access to adjacent properties. Actual construction in front of properties will probably last three to four weeks. Construction time for Phase 1 was limited to 120 days. Construction time for Phases 2 and 3 will have to be negotiated, but it will be kept as short as possible. The specifications for construction around large trees prepared by the eity Arborist and incorporated into Phase 1 will also be incorporated into Phases 2 and 3. Dave Reinhard of the Public Works Traffic Division discussed truck traffic on 6th and 7th using a large map. Heavy truck traffic on the downtown section of 6th and 7th avenues is 1 to 2 percent of the total traffic. Heavy truck traffic on 6th and 7th avenues is about 3 percent west of 1-105. On Franklin Boulevard, heavy truck traffic is about 0.8 percent. A truck route was established on 6th and 7th to keep traffic off 11th Avenue to protect the neighborhood between Franklin Boulevard and Garfield Street. Beltline Highway is designated as the truck, as well as regular, traffic route around the city by the State. Eleventh Avenue west of Beltline is part of the Beltline Highway around the city. Trucks using 6th and 7th avenues are destined for the industrial area. The traffic percentages are from State statistics for 1-105. Design specifics for pedestrian crossings, street lighting, and landscaping will be part of the final design, Ms. Andersen said. Phase 1 will be a model. Because Phase 1 is a final design and Phases 2 and 3 are preliminary designs, the degree of speCificity about impacts in Phases 2 and 3 is not as great as in Phase 1. The preliminary designs are all the City should do to comply with the Historic Street Tree Amendment. They provide the information needed. MINUTES--Eugene City Council February 13, 1985 Page 4 e Answering a question from Ms. Ehrman, Ms. Andersen said the right-of-way impacts in the Design Review eommittee recommended alignment for the project will necessitate an amendment to the environment assessment statement. Replying to questions from Ms. Schue, Ms. Andersen said 6th and 7th are now about 34 feet wide at the narrowest point. The widening provides for a 46-foot wide street. The maximum increase will be 12 feet. In the downtown, several blocks of 6th and 7th are 46 feet wide. An individual crossing with street signals probably will not perceive the difference in crossing a 34-foot wide street and a 46-foot wide street. Seventh Avenue in front of the Hult Center is 46-feet wide now. It is as wide as the rest of the street will be. If the eity acquires the right-of-way from Midas Muffler necessitated by the weave alignment, Midas Muffler can stay in business and probably will not have zoning problems. The business might be impacted because the parking lot would be smaller. Specific information has not been obtained, because Midas Muffler business increases in the summer and the long-term impact will have to be assessed with that in mind. Responding to questions from Ms. Wooten, Ms. Andersen said funds from the Capital Improvement Program will be used to acquire right-of-way for the project. She estimated that $500,000 will be the maximum cost of right-of-way acquisition. e Answering questions from Mr. Rutan, Ms. Andersen said the State has reviewed, and indicated it will support, the weave alignment recommended by the Design Review eommittee. The State will be very involved in the final design. Replying to questions from Mr. Holmer, Ms. Andersen said the estimated cost of right-of-way acquisition applied to additional acquisition required by the weave design recommended by the Design Review eommittee. Whichever alignment is chosen by the council and supported in the election will be supported by the State. Ms. Bascom said 7th Avenue in front of the Hult Center is not as wide as such streets in many cities. Ms. Andersen conservative. The outside lanes will will be 11 feet wide. New streets in 12 feet wide and wider outside lanes. considered necessary. said the proposed lane widths are be 12 feet wide and the inside lanes other cities often have inside lanes The recommended widths are what is Responding to questions from Mr. Miller, Ms. Andersen said four lanes on 6th and 7th avenues could be constructed within the existing right-of-way. Any additional right-of-way acquisition will be to weave the street to save trees. Mayor Obie said the owner of Gray.s Feed and Seed did not think a compacted design of parking spaces will work in his lot because people use pick-ups and other trucks at the store. Ms. Andersen did not know if Mr. Gray would be happy with the redesigned parking lot, but the Public Works Department will work with him in assessing potential damage to his business. e MINUTES--Eugene City Council February 13, 1985 Page 5 . e - Mayor Obie asked if the eity would have to buy all the property of the Texaco Station and Midas Muffler Shop. Ms. Andersen said the owners indicated they would like to remain on the site. Relocation on the same site is usually expensive for the City, but it is an option a property owner may choose. If the street does not weave to save trees, the City will not have to acquire additional right-of-way. Discussing 6th Avenue in front of Gray's Feed and Seed, Mr. Hansen said the street could be widened within the existing right-of-way and the trees on the south could be saved if a planting strip is eliminated along about 36 feet and a six-foot sidewalk is constructed. He pointed out the weave design puts the street within two or three feet of some apartment buildings. Ms. Andersen said the City might cause damage to the use of the apartment buildings and have to construct a barrier to mitigate such problems as noise. Mayor Obie suggested councilors discuss their observations one by one. He said the council must make a difficult decision. The decision should be clearly in the interests of the whole community. Mr. Rutan said the widening of 6th and 7th avenues was one of the first projects he considered as a member of the Planning Commission; consequently, he is very familiar with the project. The project is extremely important to the transportation system of the community. The eity has listened to and reacted to the concerns of citizens. The obligation to plan a far sighted transportation system which reflects concepts in documents such as the T-2000 Plan has been lost in the attempt to respond to the Historic Street Tree Charter Amendment and community concerns about the protection of historic trees. The council needs to show the kind of vision that built the Hult Center for the Performing Arts during a depression. The recommended weave alignment compromised the project in order to save trees. For the community, the adverse impact on businesses would be greater than the loss of the trees. He would support a design within the existing right-of-way. Mr. Holmer said a community consensus should be attained, if possible, and the council must make choices. The testimony indicated that the weave design recommended by the Design Review Committee did not persuade many people who had opposed the project. The weave design would cause many costly problems. Many people would question the council IS judgment if it authorized additional expense. All three phases should be approved because they are needed and because business people need to know what will happen. Ms. Bascom was mYstified by the division the project had caused in the community. She thought the project is "pro-Eugene." It will increase the livability of Eugene. It will rebuild a bumpy, tired section of the street into a smoother, safer section. The widening will be minimal because each lane will be narrower than most cities require. The narrow lanes will provide space for planting street trees on both sides of the streets the full length of the project for the next generation. In 1972, as a citizen working on a transportation plan, she realized the rebuilding of 6th and 7th was a key to a livable city and would make it possible to avoid a new freeway. eoncentrating traffic on 6th and 7th avenues will make the other streets safer for bicycles. She could not understand why some people think the project is ugly MINUTES--Eugene eity eouncil February 13, 1985 Page 6 e e - and "anti-neighborhood and pro-business." The image of the project should be pro-Eugene in a broad sense. She will soon ask the mayor to appoint a commission to work on keeping the city beautiful. Phases 2 and 3 should be constructed within the existing right-of-way. All three phases should be put on the ballot. Ms. Wooten limited her remarks to consideration of the Design Review Committee's recommendation. She pointed out an alignment within the existing right-of-way had not been recommended by the committee. She could not support an alignment the committee had not studied and supported. She did not think all three phases of the project had to be voted on March 26, 1985. Phases 2 and 3 did not have the same thoughtful consideration that Phase 1 had. They might have more acceptance by the voters if they were given more considera- tion. Mr. Hansen served on the Design Review Committee. The committee's charge was to analyze each historic tree and determine if it could be saved. The committee did an outstanding job. The recommended weave alignment indicated that some trees could be saved at a price, but the alignment might not be best for the whole community. People for and against the project indicated they want to vote on the project which had been studied extensively. He did not want to put businesses out of business. He did not want to have a negative impact on residences, vacant properties, and the Salvation Army although that impact had not been discussed. He would support an alignment within the existing right-of-way which would save the trees across from Gray's Feed and Seed. Ms. Ehrman said the issue was difficult for her ward. Most of the constituents who had contacted her were against the project. An alignment within the existing right-of-way would force some people who would support a weave to oppose the project. She would not support an election on an alignment within the existing right-of-way. It would be a breach with the members of the Design Review eommittee. Knowledge that their recommendation might not be accepted might have affected their work. Mr. Miller was concerned about the impact of the alignment on businesses and the ulooku of the street. Some trees could be saved if the streets stayed within the existing right-of-way. It would not be responsible to ask the voters to approve an alignment which seemed to please no one. He would support a minor weave which would have minor impacts on properties, stay primarily within the existing right-of-way, be safe and attractive, and save trees, if possible. Ms. Schue said the streets need to be widened. She compromises when it is possible but, in this case, it was obvious everyone could not be satisfied. Testimony indicated some people are not interested in compromise, they want to prevent the widening of the streets. Saving certain trees would not make any difference to them. Therefore, she had become less interested in saving specific trees. Public money should be used wisely and the weave alignment would cost public money. The price of the trees had become more than the public should pay. She would like to save the trees across from Gray's Feed MINUTES--Eugene City Council February 13, 1985 Page 7 e and Seed and any others that could be saved without too much cost. She would not accept the alignment of the Design Review Committee although the Committee had done what it was asked to do. Mayor Obie had realized during the public hearing what a positive impact the project will have on west Eugene. The situation is bad now. Some owners of properties on 6th and 7th avenues are waiting for approval of the project before they improve their own properties. The Design Review Committee worked hard to compromise and win support, but the recommended alignment had not been supported by those who opposed the original design. The recommended alignment would be constructed at great cost to the community. The widening had been planned to avoid a freeway and that seemed a valid reason for the project. Keeping traffic out of neighborhoods and strengthening neighborhoods by building arterials is a positive aspect of the project. Providing 600 new trees which will provide a gateway to the community is a good thing. He favored asking the voters to allow the City to move ahead and construct the streets in a straightened design which would save as many trees as possible. The community should know that the council will make good judgments about the design, if the voters approve the project. Mr. Hansen moved, seconded by Mr. Holmer, to accomplish the widening of 6th and 7th avenues in a modified weave within the existing right-of-way in Phases 2 and 3 and with a weave design in Phase 1 and to submit the designs to the voters on March 26, 1985. e Mr. Sercombe, the City Attorney, said the motion was sufficient for the staff to indicate to the voters what the project involved. He discussed the difference in the prepared ordinance and an ordinance which would conform to the motion. Answering a question from Ms. Wooten, Ms. Andersen said a modified weave within the existing right-of-way would save the trees across from Gray's Feed and Seed. Of the 44 historic trees from High to Garfield, 18 would be saved. Twenty-six historic trees would be removed. Ms. Schue was also concerned about the trees across from Gray's Feed and Seed. She did not want the trees cut simply because the eity could not buy a couple of feet of parking lot from Mr. Gray. Ms. Andersen said the City would work with Mr. Gray and perhaps buy some property, but, if that could not be done, a six-foot curb side sidewalk could be constructed in front of Gray's without requiring any additional right-of-way from Mr. Gray. Roll call vote; the motion carried 6:2. Councilors Schue, Hansen, Holmer, Bascom, Rutan, and Miller voted aye. Councilors Ehrman and Wooten voted nay. ~ Mr. Sercombe said the third sentence of Section 1 of the prepared ordinance should be changed. Bracketed material should be deleted. Underlined material should be added. The same change should be made in the prepared ordinance. Presently, at least [13] 26 trees that are defined as historic trees will be required to be removed. MINUTES--Eugene eity eouncil February 13, 1985 Page 8 . Mr. Sercombe pointed out that eB 2806 authorizes the City Manager to negotiate with the State about the widening of 6th and 7th avenues, Resolution 3898 establishes an election, and CB 2807 refers the widening project to the voters. Ordinance CB 2806 will not be effective until approved by the voters. Ms. Wooten understood that the motion just passed forwarded the design of the streets to the voters. She asked if the eity Manager will negotiate with the State before the election. She was told he will not. eB 2806--An ordinance concerning the reconstruction, widening, and landscaping of 6th and 7th avenues and authorizing executive of agreements therefore. Ms. Wooten moved, seconded by Mr. Hansen, that the bill as amended be read the second time by council bill number only, with unanimous consent of the council, and that enactment be considered at this time. e Ms. Wooten will support the ordinance, but the vote will not necessarily reflect her personal opinion of the issue. She said it is important the citizens be given an opportunity to vote. She is not pleased with the option presented to the voters because the design has not been given public review before the election. She thought the supporters of the projects were making an error because more people care about trees and economic development than reflected by those who testified against the project. Roll call vote; the motion carried unanimously, 8:0. eouncil Bill 2806 was read the second time by council bill number only. Ms. Wooten moved, seconded by Mr. Hansen, that the bill be approved and given final passage. Ms. Wooten said councilors had indicated previously they wanted more than just a decision about trees to be presented to the voters, but now the project was not being presented to the voters in the best way. Some people who would have accepted another alignment might now vote against the project. Mr. Miller said a modified weave alignment was being presented to the voters. Councilors tried to minimize the expense by using the existing right-of-way. Ms. Schue said the council was operating under the direction of the voters and keeping faith with the voters who asked to vote on the tree issue. The voters did not ask to vote on the issue of widening 6th and 7th. The council wants to save as many trees as possible and is asking the opinion of the voters. Roll call vote; the motion carried 7:1 with Councilors Schue, Hansen, Wooten, Holmer, Bascom, Rutan, and Miller voting aye and Councilor Ehrman voting nay. The bill was declared passed (and became Ordinance No. 19308). - MINUTES--Eugene City eouncil February 13, 1985 Page 9 e Res. No. 3898--A resolution referring Ordinance No. 19308 concerning the reconstruction, widening, and landscaping of 6th and 7th avenues to the electors of the eity of Eugene. Ms. Wooten moved, seconded by Mr. Hansen, to adopt the amended resolution. Roll call vote; the motion carried 7:1 with eouncilors Schue, Hansen, Wooten, Holmer, Bascom, Rutan, and Miller voting aye and Councilor Ehrman voting nay. CB 2807--An ordinance ordering a special City election to be conducted by the Lane County Election Department on March 26, 1985, for the purpose of referring to the legal electors of the city of Eugene an ordinance to allow the eity to enter into agreements to facilitate a street widening and landscaping project; providing for all acts necessary for the carrying on of said election; and declaring an emergency. Ms. Wooten moved, seconded by Mr. Hansen, that the bill as amended 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; the motion carried unanimously, 8:0. Council Bill 2807 was read the second time by council bill number only. - Ms. Wooten moved, seconded by Mr. Hansen, that the bill be approved and given final passage. Roll call vote; the motion carried 7:1 with eouncilors Schue, Hansen, Wooten, Holmer, Bascom, Rutan, and Miller voting aye and Councilor Ehrman voting nay. The bill was declared passed (and became Ordinance No. 1 9309) . Mayor Obie recessed the meeting briefly at 1 :30 p.m. to confer with the eity Manager about the agenda. IV. ORDINANCE/RESOLUTION re: DOWNTOWN DEVELOPMENT DISTRIeT (DDD) TAX LEVY/ELEeTION (memo, ordinance, resolution distributed) eity Manager Micheal Gleason introduced the agenda item. Res. No. 3899--A resolution referring Measure No. 52 to the legal voters of the city of Eugene, authorizing the City to tax owners of property within the Downtown Development District $192,353 outside the constitutional six-percent limitation for 1985-1986. Ms. Wooten moved, seconded by Mr. Hansen, to adopt the resolution. Roll call vote; the motion carried unanimously, 8:0. - MINUTES--Eugene City eouncil February 13, 1985 Page 10 e CB 2808--An ordinance ordering a special City election to be conducted by the Lane County Election Department on March 26, 1985, for the purpose of referring to the legal electors of the city of Eugene a measure authorizing $192,353 tax on ownership of real property in Downtown Development District; adopting polling places and providing for all acts necessary for the carrying on of said election; and declaring an emergency. Ms. Wooten moved, seconded by Mr. Hansen, that the bill be read the second time by council bill number only, with unanimous consent of the council, and that enactment be considered by this time. Roll call vote; the motion carried unanimously, 8:0. Council Bill 2808 was read the second time by council bill number only Ms. Wooten moved, seconded by Mr. Hansen, that the bill be approved and given final passage. Roll call vote; all councilors present voting aye, the bill was declared passed (and became Ordinance No. 19310). v. ORDINANCE re: BANCROFT BOND SALE (memo, resolution, ordinance distributed) e eity Manager Micheal Gleason introduced the agenda item. He said the ordinance would change the date on a previously adopted resolution because another sale was being made on the previously authorized date. The change of date would improve the City's position. Answering a question from Ms. Bascom, Warren Wong, Finance Director, said interest between 9.5 and 10.00 percent was anticipated. Res. No. 3900--A resolution repealing Resolution No. 3896 and prescribing the form of notice of sale of two million, two hundred thirty-five thousand dollars ($2,235,000) General Obligation Bancroft Improvement Bonds, Seri es ilK ", of the Ci ty of Eugene, Oregon. i' Ms. Wooten moved, seconded by Mr. Hansen, to adopt the resolution. Roll call vote; the motion carried unanimously, 8:0. eB 2809--An ordinance repealing Ordinance No. 19305 and authorizing the issuance and sale of two million, two hundred thirty-five thousand dollars ($2,235,000) General Obligation Bancroft Improvement Bonds, Series ilK," of the City of Eugene, Oregon, and directing that they be advertised for sale, all in accordance with the provision of Chapter 223, Oregon Revised Statutes, commonly known as the Bandroft Bonding Act, and appointing a registrar; and delaring an emergency. 4' MINUTES--Eugene City Council February 13, 1985 Page 11 - / e . Ms. Wooten moved, seconded by Mr. Hansen, that the bill be read the second time by council bill number only, with unanimous consent of the council, and that enactment be considered by this time. Roll call vote; the motion carried unanimously, 8:0. eouncil Bill 2809 was read the second time by council bill number only. Ms. Wooten moved, seconded by Mr. Hansen, that the bill be approved and given final passage. Roll call vote; all councilors present voting aye, the bill was declared passed (and became Ordinance No. 19311). VI. RESOLUTION re: SERVICE REDUCTION (memo, resolution distributed) City Manager Micheal Gleason introduced the agenda item. He said the resolution reaffirmed a council recommendation that expenditures and revenues be kept in balance by small adjustments in the budget. The City's financial advisers recommended the policy be formally adopted by the council in a resolution. Mayor Obie said the resolution will be used in presentations to companies which rate the City's bonds. The resolution concerns City policy which is always controlled by the council. Answering a question from Ms. Wooten, Mr. Gleason said the council could change the policy any time. The council and Budget Committee make budget decisions which will implement the resolution. The council and the Budget Committee will not be bound by the resolution. Answering a question from Ms. Bascom, Mr. Gleason said the resolution will not cause any lay-offs. Res. No. 390l--A resolution requesting the City Manager to implement a gradual reduction in services during the next three years. Ms. Wooten moved, seconded by Mr. Hansen, to adopt the resolution. Roll call vote; the motion carried unanimously, 8:0. Mayor Obie recessed the Eugene City Council meeting and called to order a meeting of the Eugene Urban Renewal Agency. VII PRELIMINARY DEVELOPMENT AGREEMENT FOR THE DOWNTOWN RETAIL DEVELOPMENT PROJEeT (memo, agreement distributed) City Manager Micheal Gleason introduced the agenda item. He said Anne Bennett, Vice Chair of the Downtown eommission, was present. Answering a question from Ms. Wooten about such things as the climate- controlled portion of the project and the importance of Broadway as a through street, Ms. Bennett said the Downtown Commission had not received any new MINUTES--Eugene eity Council February 13, 1985 Page 12 e information. The commission continues to support the project and voted unanimously to accept the preliminary development agreement with the Price Development Company. Some commission members expressed concern because the contract was for six months instead of nine months. The staff will schedule a commission discussion of it in five months. Subcommittees will be working on the issues Ms. Wooten has raised. Replying to questions from Ms. Ehrman about the expansion of the location of the project, Ms. Bennett said the Downtown Commission has not agreed on a conceptual plan for the project. Mr. Holmer wants the council to be apprised of all the information given to the Downtown Commission by the developer, of the decision points in the project, and, especially, about the estimated costs of public improvements and relocation of businesses. The council needs to know what the developer identifies as public costs so the council can have input before decisions need to be made. Ms. Wooten moved, seconded by Ms. Ehrman, to approve the Preliminary Development Agreement with Price Development eompany and Sonoma Finnancial Corporation for a downtown retail development project. Roll call vote; the motion carried unanimously, 7:0. Mr. Hansen abstained from the discussion and vote. e Mayor Obie adjourned the meeting of the Eugene Urban Renewal Agency and reconvened the meeting of the Eugene City Council. VIII. WORKING AGREEEMENT WITH SOUTHERN WILLAMETTE PRIVATE INDUSTRY COUNeIL (memo, agreement distributed) Mayor Obie said the council had reviewed the agreement previously. Council requests for additional authority had been incorporated into the agreement. Ms. Wooten would like information about the anticipated annual budget of the Southern Willamette Private Industry Council, how many people from the two programs will be laid-off, and what process will be used to select the administrative director. Ms. Wooten moved, seconded by Mr. Hansen, to approve a working agreement with the Southern Willamette Private Industry Council. Roll call vote; the motion carried unanimously, 8:0. IX. COMMUNITY DEVELOPMENT eOMMITTEE STRUCTURE (memo distributed) At Mr. Hansen's request, the agenda item was postponed. X. ELECTRICAL SERVICE IN THE WILLOW CREEK BASIN (memo, background material distributed) ~ City Manager Micheal Gleason introduced the agenda item. MINUTES--Eugene City Council February 13, 1985 Page 13 e Ms. Wooten moved, seconded by Mr. Hansen, to approved the staff recommendation to require EWEB to engage in a cooperative study with Lane Electric eooperative regarding electrical service in the Willow Creek Basin. Responding to a question from Mr. Holmer, Mr. Sercombe, the City Attorney, said the City staff had not contacted the Public Utility Commissioner's staff about the study. The commissioner was involved in the allocation of existing Lane Electric Cooperative and EWEB boundaries and will be involved in their allocation in the future. At the present time, financial consequences, such as the cost of service and new construction, to Lane Electric Cooperative and EWEB are being considered. The Public Utility Commissioner's staff will be contacted and other legal options will be considered. Mr. Holmer hoped information from the commissioner's staff will be a part of the final report given to the council. Replying to a question from Mr. Hansen, Mr. Obie said it is generally accepted that utility companies will not request additional territory from other utilities. He had discussed the matter with the chair of the EWEB Board of Directors who appreciated council support and will appreciate a formal request from the council. Mr. Hansen was grateful for Mayor Obie's contacts with the EWEB Board of Directors. He hoped the council will have camaraderie with the Board in the future. Roll call vote; the motion carried unanimously, 8:0. e XI. EWEB ELECTRICAL UTILITY PAYMENTS TO THE GENERAL FUND (memo, background information distributed) City Manager Micheal Gleason introduced the item. Ms. Wooten moved, seconded by Mr. Hansen, to approve the staff recommendation requesting EWEB to provide the Eugene City Council a written explanation of the EWEB board's position regarding Trojan and other miscellaneous gross operating revenues which may be due to the eity of Eugene and requesting the explanation be due in thirty days. Mr. Hansen said the council action was predicated on Section 44 of the eharter but he preferred to have Mayor Obie write a less formal letter to the EWEB Board of Directors. He would like the letter to request the information and not state the charter provision. More official action could be taken if results are not achieved. He offered to amend the motion. Mayor Obie accepted the recommendation and said he would write an appropriate letter. Mr. Holmer pointed out the request was from the council. He would like the report from EWEB transmitted directly to the council when it is received. The staff review should follow. Ms. Wooten agreed with Mr. Holmer. - MINUTES--Eugene City Council February 13, 1985 Page 14 e . - Mayor Obie had discussed the issue with the chair of the EWEB Board of Directors. Mayor Obie indicated the council wanted to have an open dialogue with EWEB. The council wished to provide the information from the auditors which seems reasonable. He indicated the council hopes the issue will be resolved in a business-like manner so the EWEB Board and the council can move ahead on issues which are mutually beneficial. He wished to convey that attitude to all members of the EWEB board. Ms. Bascom pointed out Deborah Brewer, the EWEB intergovernmental liaison, was present. Ms. Bascom hoped Ms. Brewer would convey the feeling that the matter proceed in a constructive, peaceful way. Roll call vote. The motion carried unanimously, 8:0. The meeting was adjourned at 2 p.m. ??~~ Micheal Gl eason Ci ty Manager (Recorded by Betty Lou Rarick) BLR:cj/1657e MINUTES--Eugene City eouncil February 13, 1985 Page 15 e e e M E M 0 RAN DUM Feberuary 7, 1985 To: City Council From: Warren G. Wong, Finance Director Subject: Authorized Signatories The attached resolution updates the list of officials authorized to sign checks, bonds, grant applications, etc. on behalf of the City. This resolution will be transmitted to our financial service providers to reflect the authorization update. cc: G. Long D . L ill ey Attachment -- 1 fnwgw534 RESOLUTION NO. A RESOLUTION DESIGNATING THOSE AUTHORIZED TO SIGN CHECKS ON BEHALF OF THE CITY OF EUGENE; AUTHORIZING DEPOSITORY TRANS PER CHECKS; DESIGNATING THOSE AUTHORIZED TO SIGN GRANT APPLICATIONS, BONDS, CONTRACTS, ETC. ON BEHALF OF THE CITY; REPEALING RESOLUTION NO. 3872; AND DECLARING AN EMERGENCY. e BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE, a Municipal Corporation of the State of Oregon, as follows: Section 1. The pacific Western Bank, First Interstate Bank of Oregon, N.A., and united States National Bank of Oregon are hereby requested, author ized and directed to honor checks, drafts or other orders for the payment of money drawn in the name of the City of Eugene, including those drawn to the indivi- dual order of any person or persons whose name or names appear thereon as signer or signers thereof when bearing or purporting to bear the facs imile signatures of the Mayor or City rvIanager and Recorder-Treasurer: Title Name Facsimile e Mayor Bria.n. B. Obie City Manager Micheal D. Gleason Recorder-Treasurer Warren G. Wong and the Pac if ic Western Bank, First Interstate Bank of Oregon, N.A., and United States National Bank of Oregon shall be entitled to honor and to charge the City of Eugene for all such checks, drafts or other orders, regardless of by whom or by what names the facsimile signature or signatures thereon may have been affixed thereto, if such facsimile signature or signatures resemble the facsimile specimen duly certified to or filed with the above banks by the Recorder of the City of Eugene. Section 2. First Interstate Bank of Oregon, N.A., as a designated depository of the City of Eugene is requested, author- ized and directed to pay against the City of Eugene account number 65031-5 in such bank, Depository Transfer Checks payable to a City of Eugene account number 10-007-467-4 at the First National Bank and Trust Company of Evanston, Illinois, which transfer checks do not require a signature. The checks will be deposited at the First National Bank and Trust Company of Evanston, Illinois, and will be presented through regular bank Resolution - 1 e e e e clearing channels for payment. Depository transfer checks will not and cannot be presented for encashment over the counter at First Interstate Bank of Oregon, N.A. or the First National Bank and Trust Company of Evanston. The checks will be identified with the words "Depository Transfer Check" in the upper left hand corner. Section 3. That the City of Eugene does hereby adopt the facsimile signatures above set forth as true and valid signatures by and of the City and agrees to save and keep the said banks free and harmless from any and all claims or losses of any kind or character resulting from the payment of the checks, drafts or other orders bearing or purporting to bear such facsimile signatures made by stamp, machine or other mechanical device. Section 4. The City Manager is further authorized, pursuant to the City Charter, to sign and execute on behalf of the City of Eugene, grant applications, bonds, contracts, and other docu- ments as may be required from time to time. Section 5. That Resolution NO. 3872 adopted by the City Council on August 8, 1984, and any other Resolution in conflict herewith are hereby repealed. Section 6. The City Recorder is directed to deliver a certifled copy of this Resolution to Pacific Western Bank, First Interstate Bank of Oregon, N.A., the united States National Bank of Oregon, and First National Bank and Trust company'of Evanston, IlYinois. Section 7. That the matters contained herein concern the public welfare, and this Resolution shall be effective immedi- ately upon its passage and remain in full force and effect until amended or repealed by action of the City Council. The foregoing Resolution adopted the 1985. day of , City Recorder Resolution - 2 e e e February 8, 1985 TO: Mayor and City Counci 1 FROM: Departments of Public Works and Planning SUBJECT: COUNCIL ACTION ON ALIGNMENT AND ELECTION FOR THE 6TH/7TH WIDENING AND RECONSTRUCTION PROJECT Final action on the proposed alignment for the Washington to Garfield section of the 6th/7th project and on the March 26th election will be needed by the Council at your Wednesday, February 13th meeting. Council will be required to act on two separate items: 1. A resolution adopting the alignment for the Washington to Garfield section of the 6th/7th project; 2. An ordinance and resolution calling for the March 26th election on the 6th/7th Widening and Reconstruction Project, from High to Garfield Streets. plpd67w M E M 0 RAN DUM February 7, 1985 To: City Council e From: War7~WOng, Finance Director Subject: DDD Tax Levy/Election A major funding source for the Downtown Free Parking Program is the ad valorem tax on the right to own property in the Downtown Development District. Legal Counsel has advised staff that although the DDD Tax is not a property tax, per se, it is advisable to place the levy before the City's voters for approval. The Downtown Commission has approved an FY86 Budget, which will be presented to you in April, for the Free Parking Program requiring a DDD Tax levy of $192,353. Since this is a non-Primary Election year, placement of the levy on the ballot will cost the Downtown Development District Fund between $6,000 and $18,000, depending on the number of overlapping jurisdictions having measures/offices on the ballot. It appears that there will be three other jurisdictions on the March 26 ballot. Further~ the City is planning to place the Reconstruction and Widening of 6th and 7th Avenues measure on the March ballot. Thus, the City can minimize the cost to the DDD and General Funds by having both the DDD Levy and 6thj7th Project on the March ballot. To place the measure on the March ballot, we are requesting Council action ~ on the attached resolution and ordinance to place the DDD Levy on. the March ~ 26th special election ballot. During it's budget review proc~ss, the Budget Committee will review the DDD Budget as 'part of its preparation of the FY86 Budget Recommendation to Council. The Downtown Commission endorsed this levy amount and placement of the levy on the March 26th"special election at its December 11, 1984 meeting. Attachments -- 2 cc: D. Whitlow G. Long J. Porter M. 1'1usso FNWGW529 - e e e M E M 0 RAN DUM February 7, 1985 To: City Council From: \va~t'';rJ G. Wong, Finance Director Subject: Bancroft Bond Sale Based on advice from our Financial Advisor, we are ~rocessing a substitution to the ordinance and resolution passed on January 23, 1985 authorizing the sale of 52,235,000 in Bancroft Bonds. At the time the initial ordinance and resolution were prepared, we were not privy to the fact that another Oregon goverment entity would be issuing approximately 57.5 million in bonds at the same time as the City issue. Thus, we are modifying the interest payment dates to ensure the marketability of the Eugene issue. _ All other terms and conditions of the ordinance and resolution remain the same, except for minor technical adjustments. cc: ~l. Gleason D. Lilley Attachment -- 2 fnwgw528 M E M 0 RAN DUM February 7, 1985 To: City Council warFL)J G. Wong, Finance Director e From: Subject: Service Reduction Resolution At your October, 1984 Council Goals Session and the November 13, 1984 Budget Committee meeting, you were apprised of an effort to manage and budget for the General Fund service system within projected available resources. The Six Year Financial forecast prepared by Council in the Spring of 1984 indicates increasing deficits in the immediate planning horizon assuming the current revenue base and carrying-forward the current service system. To avoid operating deficits and severe disruptions to the service system, we proposed a gradual reduction of services as one mechanism to bring the revenue base into balance with the service system. Hopefully, this process will result in balancing resources and requirements with no layoffs. I should point out that we will be using other devices, such as productivity improve- ments and automation, concurrently to achieve this balance. The attached resolution expresses Council's support of this goal and provides direction to the City Manager for implementation. Implementation proposals will be submitted to you as part of the normal budget process and as members of the Budget Committee and Council approving the final budget, you will have opportunity for review and modification of service reduction proposals. This resolution constitutes a formal expression of intent to the City organi- e zation and wili "be used in discussions with our bond rating agencies and other financial agencies. cc: M. Gleason D. Whitlow G. Long Attachment 1 fnwgw533 e M E M 0 RAN DUM e February 7, 1985 TO: Mayor and eity Council as the Eugene Renewal Agency FROM: Eugene Development Department Staff SUBJECT: PRELIMINARY DEVELOPMENT AGREEMENT FOR THE DOWNTOWN RETAIL DEVELOPMENT PROJECT The current exclusive negotiating agreement between the City and Price Develop- ment Company and Sonoma Financial Corporation, granting those parties the exclusive right to negotiate for the development of a major retail project in certain areas of downtown, expires of February 18, 1985. The agreement called for the developer to retain an architect, develop a site and concept plan, and identify property for acquisition. The developer has met the terms of the agreement. The next steps in the development process are detailed in the attached chart of the development agreement process. Under the terms of the proposed Preliminary Development Agreement the City (as the Eugene Renewal Agency) would assume responsibility for the completion of appraisals of property situated within the project area; and arrange for the development of cost estimates for public improvements; land acquisition, and business relocation expenses associated with the project. - The developer would be responsible for further revision and refinement of the project concept plan for agency approval, for securing commitments from major anchor retail tenants, for projecting final development costs for the project, and for meeting monthly in Eugene to discuss project progress and related issues. The developer will--as a further expression of a good-faith commit- ment to the project--provide a letter of credit in the amount of $50,000 as additional security to the agency for the satisfactory completion of his obligations under this agreement. This additional security will supplement the $100,000 letter of credit already committed by the developer. This Preliminary Development Agreement represents the next step in the development process, an interim step between the Exclusive Negotiating Agree- ment and the final Disposition and Development Agreement. The term of this agreement will continue through August 1985, with an opportunity to extend the agreement for an additional 90 days if the developer has made substantial progress and is nearing completion of obligations under the agreement. The City Council, in its capacity as the Eugene Renewal Agency, will consider the proposed Preliminary Development Agreement--and an authorized motion-- at its meeting of February 13. The Downtown Commission will review the agreement at their February 12 meeting and forward a recommendation to the Council. A copy of the proposed agreement is provided under separate cover. JB:ky/Wa6 - e RESOLUTION NO. A RESOLUTION REQUESTING THE CITY MANAGER TO IMPLEMENT A GRADUAL REDUCTION IN SERVICES DURING THE NEXT THREE YEARS. The City Council of the City of Eugene finds as follows: 1. Projected revenues to the City's General Fund will not be sufficient to fund estimated operating requirements in future years. 2. Extended financial projections estimate an operating budget deficit of $1,300,000 by the end of Fiscal Year 1987. 3. The City Council discussed this projected financial shortfall at its October 1984 goals session and concluded that raising additional operating revenue would not be appropriate given the local economy. Until such time as the City Council approves additional revenue measures, the Council instructed the Manager to prepare future budgets within the projected revenues available to the eity. NOW; THEREFORE, based on the above findings, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE, e a Municipal Corporation of the State of Oregon, as follows: Section 1. The City Manager is requested to adjust City services in the FY86 and FY87 budget proposals consistent with the above findings. Section 2. The City Manager is further requested to report to the Council on the financial projections for the General Fund and other related funds and to prepare budgets for Budget Committee consideration consistent with the reductions set out in this plan. The foregoing Resolution adopted the day of , City Recorder e e e e M E M 0 RAN DUM February 6, 1985 TO: City Council FROM: Brian Obie, Mayor SUBJECT: SWPIC/ELECTED OFFICIAL AGREEMENT Attached is the final version of the Southern Willamette Private Industry Council/Elected Official agreement. There have been very few changes to the draft I provided you in January mainly minor wording shifts suggested by the attorneys. As you'll recall, this document is required by the federal law as a condition for our community to receive job training funding. Essentially, the agreement delegates to the Private Industry Council responsibility for setting job training program policies and priorities. The City's formal input into this process is througb approval of the grant plan under our intergovernmental agreement with Springfield and Lane County, and through represent- ation on the SWPIC Board. While SWPIC will have general responsibility for the job training program, our'agreement is that they will contract with one of the three governments for administrative support. Actual training services will be provided under contract by existing agencies in the sommunity such as the school districts and Lane Community College. This agreement has already been approved by the SWPIC Board, the Lane County Board of Commissioners and the Springfield City Council. I believe that it is yet another step forward in our efforts to build better intergovernmental and public/private partnerships. The action that is needed is for the Council to approve the agreement. Besides myself, Gary Pierpoint, SWPIC President, will be available at the meeting to answer any questions. ~ M E M 0 RAN DUM e February 5, 1985 TO: Mayor and City Council FROM: Interim Community Development eommittee (I-CDC) SUBJECT: COMMUNITY DEVELOPMENT COMMITTEE (CDC) STRUCTURE Background: The Interim Community Development Committee (I-CDC) was appointed by Council in April 1984. One of the primary missions was to develop a new committee struc- ture to advise the Council on community development and housing program pOlicy issues. The most significant portion of this community development activity relates to the Community Development Block Grant. This year the eommunity Development Block Grant provided Eugene with an entitlement of $1,292,410. The I-CDC encouraged public discussion relative to the structure of a permanent eommunity Development eommittee by conducting public hearings on October 24 and December 13. In addition, specific input was requested from a variety of interest groups. These groups included the Planning eommission, the Downtown ~ ~ommission, the Human Rights Commissions, the Chamber of Commerce, ~ighborhood ~ groups, and the Lane Interagency Network (a coalition of social service providers). In December, a draft recommendation was developed and forwarded to the Planning Commission, the Downtown Commission, and the Human Rights eommission for review and comment. The intent was to forward a recommendation on to Council which had widespread public support. Each of these bodies supported the recommendation without dissent. Committee Purpose: The I-CDC recommends that the permanent Community Development Committee be primarily a body which provides advisory policy guidance and evaluation of the eommunity Development Block Grant and related programs. The recommendation is that this group meet quarterly, except as needed during peak workload periods. A proposed list of roles and functions for the eDC is listed below. A. The committee shall be advisory to council, with a quarterly meeting schedule, except during peak work periods. B. Development of eommunity Development Block Grant three-year plans--including program goals and funding strategies. e e COMMUNITY DEVELOPMENT STRUCTURE February 5, 1985 Page 2 C. Development of the annual COBG grant application. --review specific requests for capital projects through the City's Capital Improvement Program (eIP) --adjust CDBG goals to respond to community needs and adopted City goals --approve major reprogrammings of funds to respond to changes in priorities o. Solicit and provide a forum for community involvement in the community development process. E. Housing program implementation. --Review and comment on particular projects and related new grant or funding opportunities F. Community Development Block Grant Program Evaluations. Composition TOTAL: Eleven members e --One City Councilor to provide policy direction and linkage with the eity Council. --One Planning Commissioner to assure close ties with City planning processes, the Capital Improvement Plan, and housing planning. --One Downtown Commissioner to provide integration with eligible downtown development projects and representation for the many people housed in the Downtown Commission boundary. --One at-large citizen representing low-income interests. This provides a voice for potential recipients of CDBG or housing funds. It is difficult to identify low-income people in the appointment process. However, at minimum, an advocate for poor people's needs can be recruited. e --One at-large representative of the housing industry to provide expertise trom persons wno aeal wltn nouslng lssues tnrougn construction, rehabilitation, or property management activities. This person may be a builder, a rental owner, a property manager, a realtor, or other member of the housing industry. eOMMUNITY DEVELOPMENT STRUCTURE February 5, 1985 Page 3 - --One representative from the Private Industry Council (PIC) to provide both business insight and a linkage with job training opportunities for low-income persons. --One tenant or tenant advocate familiar with local housing issues. --One Eugene Minority Commission member or a citizen who has actively demonstrated interest and expertise in the field of minority relations and anti-discrimination causes. --One member of the Eugene Commission on the Rights of the Disabled or a citizen who has actlvely demonstrated lnterest and expertise ln fields related to the special needs and concerns of disabled citizens. Imp1 ementa ti on T~ere are two important tasks ,which require review and recommendations from either the Interim Community Development Committee or the permanent Community . e Development Committee this spring prior to eDBG grant submission in June. The first task relates to the development of goals and funding strategies for the next three years of CDBG allocations; i.e., the Three-Year Plan. The second task is specific to the particular COBG objectives and projects to be funded during FY85/86. The Interim eommunity Development Committee is pre- sently developing the Three-Year Plan. The I-CDe encourages Council to begin the appointment process for the permanent Community Development Committee in a timely manner so that new committee members can be involved along with current I-CDC members in developing the annual statement of objectives and funding program for the fiscal year which begins October 1, 1985. The I-CDC feels that a transition period will be useful to help educate the permanent CDe members on the important issues and to make the transition as smooth as possible. Council Action Requested: Council is requested to approve the recommendations of the Interim Community Development eommittee. Following action by the Council in this regard, an ordinance will be drafted for Council adoption. RW:jw/HC1b15 e ~ , - e e February 7, 1985 TO: FROM: Mayor and City Council Bill Sloat Business Assistance Team SUBJECT: Electrical Service in the Willow Creek Basin Several members of the City Council may recall concerns raised last Summer regarding the availability of electrical service in the Willow Creek basin. The expressed concerns related to a prospective industrial siting for signif- icant electrical service capacity. The firm eventually picked a Portland area site. Mayor Obie requested staff to pursue the electrical service issues to assure the community that the proposed residential, commerical, and industrial development in the Willow Creek refinement plan could be executed. Moreland and Unruh is acting as the development representative for the larger industrial property owners in the Willow Creek basin. Staff met ~nd discussed the siting and concerns of the prospective firm with Tom Moreland. Mr. More- land indicated he would work with Lane Electric Cooperative to determine LECls capacity to serve the area, its financial policies for industrial firms, and its financing and service ability if a major electrical user is sited in the Willow Creek basin. CH2M Hill performed a formal long-range electrical system study for the Willow Creek basin including all of the area within the Urban Growth Boundary (UGB) and the Urban Reserve. Lane Electric has adopted the study. There are, however, as Mr. Moreland raises in his letter to the Busi- ness Assistance Team, several more questions regarding development financing policies, customer rates, and duplication of costs which need additional study and comparative analysis between EWES and LEC. The Willow Creek Area Refine- ment Plan contemplated that such comparative analysis should occur and cooper- ation between EWES and LEC to determine the most reliable and efficient way to service the area is necessary. Technically, EWEB has no right or authority to involve itself in another utility.s service area. The City Council, however, not only has a right but a responsibility to the general public interest to pursue the best possible service arrangements in a key residential and indus- trial expansion area within the Urban Growth Boundary. Mayor and City Council February 7, 1985 Page 2 STAFF RECOMMENTATION: Staff recommends the Council require a written report by EWEB, as provided in Section 44 of the Charter, that will address the issues raised by Mr. Moreland in his letter of February 3, 1985. We suggest a timeframe of approximately thirty to forty-five days for the requested report. Staff also recommends that EWEB's report include any other issues of public interest such as duplication of customer expenses due to overlapping facilities. We recommend the Council encourage LEC and EWEB to jointly cooperate in a com- parative analysis for the City Council using planning assumptions in the CH2M Hill planning document to address all of the electrical service issues affect- ing the Willow Creek basin. City staff will be available to work with the EWEB and LEC staff in any way in which we can be of assistance. WS:lv ~ ~ ~ e e - ~ e e e February 6, 1985 TO: FROM: Mayor and City Councilors Gary Long, Director Administrative Services SUBJECT: EWEB Electrical Utility Payments to the General Fund The Council instructed the staff last Spring to study and resolve the dis- crepancies in payments to the City general fund from the EWEB managed elec- trical utility. These payment discrepancies were identified by the City's external auditors in FY78, FY83, and FY84. The City Manager clearly conveyed our audit concerns to EWEB officials as early as 1981. We also believe there were joint staff discussions between EWEB and the City preceding 1981. You have received a legal opinion advising you that an extensive internal study has been done by our legal and financial staff. In that process we have worked with EWEB staff and have resolved several minor issues raised in the 1983 management letter from our auditors, Peat, Marwick and Mitchell. We have also reviewed a variety of old reports and correspondence relating to EWEBls payments to the City general fund. We have not been able to understand EWEB1s interpretation of Ugross operating revenuesu as it applies to electrical utility revenues received from Trojan operations and other miscelleneous revenues of the electrical utility. These underpayments currently approximate $1.5 million per year. Our staff recommendation to the City Council is that you formally require, as provided in Section 44 of the Charter, a written explanation by EWEB of the Board's rationale for not paying the 6% rate on all of the electrical utility's gross operating revenue - including Trojan and other miscellaneous revenues. We recommend the Mayor forward correspondence to the EWEB Board Chair detailing the Council IS request for this written report. We recommend the Council ask EWES for its response within thirty days. Upon receipt of the Board's formal report, staff will review it and report back to you with recommended action to resolve the outstandin~ audit issues. GL:lv Attachment - 1983 Peat, Marwick, Mitchell Management Letter