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HomeMy WebLinkAbout02/25/1985 Meeting M I NUT E S e Eugene City Council Dinner/Work Session Eugene Hilton Hotel, Studios Band C February 25, 1985 5:30 p.m. COUNCILORS PRESENT: Emily Schue, Richard Hansen, Freeman Holmer, Ruth Bascom, Roger Rutan, Jeff Miller. COUNCILORS ABSENT: Cynthia Wooten, Debra Ehrman. Adjourned meeting of February 20, 1985, of the Eugene City Council was called to order by His Honor Brian B. Obie. I. REPORT ON TRIP EAST TO DISCUSS AIRPORT EXPANSION, AIRLINE SERVICE, BOND RATING e Mayor Obie discussed the trip east he took with Bob Shelby, Mike Gleason, Gary Long, and Warren Wong the week of February 18, 1985. He said the trip was very successful. He and Mr. Shelby discussed the improvement of service to the south with United Airline officials in Chicago. They also discussed air fares. The fares from and to Eugene are not likely to change until the competitive situation among airlines changes. The airport needs to be expanded to accommodate additional airlines, Mr. Obie said. Schedules will be improved in June because the flights to and from San Francisco will be direct. Mr. Obie emphasized that United will need proof that more flights and earlier flights to Eugene are needed. Mayor Obie, Mr. Wong, Mr. Long, and Mr. Gleason made a presentation about Eugene, its financial controls, its management, and its economy to bond raters in New York. The purpose of the presentation was to keep Eugene's AA bond rating. The bond sale to be offered in a few weeks was discussed briefly. Mr. Gleason said the raters were impressed with City Council policies and the discipline the Council used in shifting revenue sharing funds to the Capital Improvement Program. The City's use of Tax Anticipation Notes and investment policies were also part of the presentation. Mr. Obie said the printed booklet was professionally formatted. Mayor Obie, Mr. Gleason, Mr. Wong, and Mr. Long then went to Washington, D.C., to talk with Oregon legislators. Senator Hatfield indicated support for the Science Center and the riverfront project. He also indicated the airport will be "named" in appropriation legislation which will facilitate funding. Senator Packwood was surprised at the airport needs and encouraged the City to apply to the Federal Aeronautic Administration for $15 million. e MINUTES--Eugene City Council February 25, 1985 Page 1 e . e Representative Weaver is working to mitigate the timber imports from Canada. He is also concerned about the impact on Eugene and Lane County revenues of the Bureau of Lane Management and Forest Service land exchange and the Bonneville Power Administration insurance issue. Mayor Obie and the councilors discussed lobbying efforts. Mayor Obie said a good effort in Washington, D. C., will cost between $30,000 and $60,000 a year. Lobbying will help at the legislative staff level. Councilors also discussed appropriate activities for them when they go to Washington in March. Answering a question from Ms. Bascom, Mayor Obie said legislators need to know Eugene's needs. Money will be needed for the improvement of the Ferry Street bridge as well as the University of Oregon Science Center and the airport expansion. II. EUGENE AGENDA Mayor Obie said the council had discussed making the "0bie Agenda" the "Eugene Agenda" previously. He suggested the council discuss and refine the agenda, hold a public hearing, and then adopt a resolution which itemizes the Eugene Agenda. Answering a question from Mayor Obie, Ms. Freedman said a public hearing on the Agenda is scheduled for March 4, 1985. Mr. Gleason said the Agenda will focus on projects the council has considered for some time. It will be part of the Six-Point Economic Diversification Program. He reviewed the components of the 1985 Six-Point Action Plan and emphasized the importance of the Capital Improvements Program (CIP). He said the Agenda is composed of specific projects: the airport expansion, the Riverfront University Science Park, the revitalization of the downtown, the transportation system for key industrial areas, and the gateway and street program. Each of the projects can be included in at least one of the six points in the Action Plan. Some are in the CIP. Three points in the Six-Point Action Plan (Business Assistance, Marketing and Recruitment, and Public and Private Partnership) are processes needed to accomplish the other actions. Answering a question from Mr. Holmer, Mr. Gleason said the CIP does not include all the projects in the Agenda. Mayor Obie suggested a subcommittee be formed to investigate funding for the Agenda after it is adopted. Mr. Whitlow described each of the Agenda projects, indicated their estimated costs, and discussed ways of funding them. He also discussed the affect of a State sales tax on the City's revenues. Mr. Holmer pointed out the planning and development of the Riverfront University Science Park should coincide with the improvement of the Ferry Street Bridge. Answering questions from Mr. Hansen, Mr. Obie said representatives of School District 4-J and Lane County indicated they will support bonding for the MINUTES--Eugene City Council February 25, 1985 Page 2 - .-',e .,..... '" e Riverfront University Science Park. Mr. Hansen said the Council should be sure the project will succeed before approving a bond issue. Ms. Schue pointed out there will be no development on the riverfront property, if the project does not succeed. Noting the sales tax proposal includes restrictions on tax increment districts, Mayor Obie said a tax increment district for the Riverfront University Science Park should be established before the sales tax is approved by the voters, if the council decides a tax increment district is the way to fund the project. Discussing the revitalization of the downtown, Mr. Hansen pointed out the community will be obligated to pay the costs once the project is begun. Replying to a question from Mr. Miller, Mr. Gleason said the City can require a turn lane on West 11th Avenue when there is enough right of way and development occurs within the city. Mayor Obie said about $100 million of private investment will occur in the Riverfront Park and the downtown. During discussion of the Agenda, Mr. Holmer asked if the Agenda included adequate commitment to the Ferry Street Bridge. Mayor Obie said "No." Mr. Holmer said improvement of the bridge is as important as other transportation improvements in the Agenda. Funds are needed to study the design and funding of the bridge improvement. Mr. Gleason said the bridge is part of the industrial transportation system, but the Agenda includes projects which can be accomplished soon and will have an immediate impact on private investment. The improvement of the Ferry Street Bridge is a long-term project. Ms. Schue said inclusion of the bridge in the Agenda would possibly increase its cost to an amount which will seem impossible to raise. Ms. Bascom suggested the bridge improvement be identified as a federally-funded project. Mr. Holmer said funds can be found for planning the bridge improvement and the planning will give credence to requests for federal funds. Ms. Bascom said the improvement will have to be coordinated with other projects. Perhaps it should be given a longer timeframe. Ms. Schue said the title "Transportation System Servicing Key Industrial Area" excludes many important transportation projects. Mayor Obie suggested an asterisk indicate the Ferry Street Bridge improvement should have a high priority. Mr. Holmer said the bridge improvement could be included in the "Gateway" project because it needs to be beautified. It should be included in the Agenda. It is important for economic development. The work session was recessed for 10 minutes at 7:50 p.m. Mayor Obie said the Ferry Street Bridge improvement project should be included in projects to receive state and federal funding. Ms. Bascom said Eugene citizens want street trees included in the Agenda. She distributed a second draft of a memo titled "Mayor1s Tree Commission." MINUTES--Eugene City Council February 25, 1985 Page 3 .e She suggested the fifth item in The Eugene Agenda be titled "Gateways and Trees" and the Mayor appoint a commission titled "Mayor's Tree Commission." She suggested that the commission's responsibilities should include entrances to the city as well as street trees. She proposed the commission hold a public hearing on urban forestry. Mr. Miller suggested the "Mayor's Tree Commission" include a representative from School District 52, as well as School District 4-J. The councilors and the Mayor suggested several titles for the fifth item of the Agenda. Mayor Obie suggested "Trees and Entryways." Mr. Hansen recommended "beautification", which includes more than just entrances and trees. He hoped the concept of making the city attractive could be broad. Ms. Schue also did not want "beautification" to be narrowly focused. She liked the Shaping Up Campaign of 1984. Mr. Holmer wondered if the item should include a reference to cultural and destination point activities. Ms. Bascom said the term "trees" can be Quite broad, but she suggested her efforts be limited to trees. Mayor Obie asked for concensus on "Gateways and Trees" as a title. The item could include the other things the council had discussed. Ms. Schue thought the title would have to be explained constantly. Mr. Miller suggested the title "Community Enhancement" and Mayor Obie suggested "Trees and Community Enhancement. II .,e Mr. Hansen moved, and Ms. Schue seconded, to present the Eugene Agenda to the public in detail and ask the pUblic to comment on it in a pUblic hearing. A vote was not taken because the council does not customarily take formal action at work sessions. By consensus, councilors agreed to take action on the Eugene Agenda on February 27, 1985, and to hold a public hearing on it in several weeks. Mr. Hansen suggested the items in the Eugene Agenda be displayed graphically in the Council Chamber, the Conference Center, or the Hult Center. III. CAPITAL IMPROVEMENT PROGRAM Mr. Whitlow discussed the Federal Revenue Sharing portion of the proposed Capital Improvement Program (CIP) for the next three years. He reviewed a memo dated February 22, 1985, to the Mayor and City Council which reformatted the projects into three priority classifications. He reviewed the projects in each of the priorities. Mr. Whitlow said the Federal Revenue Sharing portion of the CIP is now almost exclusively used for enhancing, operating, or replacing fixed assets. The funds are rarely used for additions to the City's infrastructure. Federal revenue funds are the City's only unrestricted funds and they may be cut or eliminated in the near future. In FY 86/87, none of the Federal Revenue Funds will be included in the general operating budget. e MINUTES--Eugene City Council February 25, 1985 Page 4 e e e Answering questions from Mr. Hansen and Ms. Bascom, Mr. Whitlow said a project, such as reroofing, which extends the useful life of a facility, is considered a capital improvement instead of an operating expense. If the project costs less than $5,000, it is considered maintenance. The Parks and Recreation Department staff has approved the relocation of the radio transmitter on Skinner's Butte. The money allocated for parks renovation is to be used to upgrade playing fields. It is not for Alton Baker Park. Parks are designed now so that very little labor is needed to maintain them. The CIP indicates future maintenance costs of new parks. Mr. Whitlow said much background work has been done on each project in the CIP. He suggested changes to specific projects be made at another time when more staff is present to discuss the details. Mr. Gleason said redirection will result in service reductions. He said the council could direct the Budget Committee to recommend funding for the Eugene Agenda, or the council could reduce the projects in the CIP to provide funding for the Agenda. Discussing the CIP, Mayor Obie said it did not focus on the projects in the Eugene Agenda. Mr. Miller said Priority 1 projects are essential to the well-being of the city and, consequently, probably cannot be reduced. Eugene Agenda items will have to be compared to Priority 2 and 3 projects only. Mr. Holmer said Priority 2 items seem essential also; therefore, perhaps the Budget Committee should be directed to compare Agenda items to Priority 3 projects only. Mr. Obie suggested some Priority 2 projects could be eliminated. Mr. Hansen said perhaps projects in the current CIP should be completed, and Agenda items included in subsequent CIPs. Ms. Schue emphasized the importance of the CIP projects and said it is not advisable for the council to change the Budget Committee recommendation. Continuing the discussion, Mr. Obie suggested the council direct the Budget Committee to consider items in the Eugene Agenda and other council priorities when developing the budget. Ms. Bascom said projects are in the CIP because they have had support in the past. Community support for Eugene Agenda items needs to be built. Mr. Holmer suggested the Budget Committee advise the council on the replacement of Federal Revenue Sharing Funds. Mr. Hansen pointed out the proposed CIP for FY 86/87 could be adopted and Agenda items included in the CIP for the next year. Mr. Miller said alternative funding sources will be needed if Federal Revenue Sources decrease. Answering a question from Mr. Hansen, Mayor Obie said he accepted the criteria for Priority 1 items. Mr. Hansen said the Eugene Agenda is just one element. The CIP includes projects for all parts of the community. He wondered how many items could be shuffled from the Agenda to the CIP. Mayor Obie said the council has been working on the Six-Point Plan for several years, and it should be the basis for funding decisions. He did not see a propensity for the Six-Point Plan in the CIP. Ms. Schue pointed out the Six-Point Program is not the only council goal. MINUTES--Eugene City Council February 25, 1985 Page 5 e Mr. Miller suggested adding the underlined words to the definition of CIP Priority 2 items. Projects which are needed to preserve or upgrade existing city assets, save on operating costs, and are consistent with the Six-Point Economic Diversification Program or the Eugene Agenda, and which could, conceivably be postponed from one to three years. Mayor Obie said the comment could be "or consistent with the Six-Point. II e Discussing the Budget Committee and how it should be directed, Ms. Schue said the committee has a set of priorities which are not the same as the council goals. The committee's first goal has been public safety. Mayor Obie did not think the council should allow the council and Budget Committee priorities to be different. All programs should move toward the council's goals. Mr. Miller agreed that some nudging toward council goals is necessary. Ms. Bascom said items in the Agenda are so costly, perhaps they should be funded separately. Some CIP projects are very "dear to the hearts of some people." The Budget Committee needs to listen to citizens and include projects in the CIP which are important to citizens. Mayor Obie pointed out the refinement planning process for the Riverfront Park cost the City about $50,000 and the airport expansion design process costs $30,000 a month. There are increments to those projects which could be addressed now and should be considered by the Budget Committee. He suggested the conversion of Willamette Street to two-way traffic should be compared to projects in the CIP such as the renovation of playing fields. Answering a question from Ms. Bascom, Mayor Obie said he had not decided which items in the Agenda should be in the CIP. The CIP subcommittee of the Budget Committee should discuss that with the staff. Mr. Miller said capital projects should be prioritized to prepare for a reduction in Federal Revenue Sharing Funds. Continuing the discussion of direction to the Budget Committee, Mayor Obie suggested maintaining the projects in Priority 1, changing the definition of Priority 2 as suggested by Mr. Miller, and eliminating Priority 3 projects. Mr. Hansen said the whole CIP should not be tied to the Six-Point Program because that would limit the CIP. However, he did not object to eliminating Priority 3 projects because they are discretionary. Mr. Holmer thought some projects in Priority 3 are very important. For example, street lights involve public safety. He suggested directing the Budget Committee to consider the Agenda, the Six-Point Plan, and the three priorities. Mr. Gleason asked the staff to prepare a resolution for council consideration which will provide instruction to the Budget Committee to consider the Six-Point Economic Diversification Program and the Eugene Agenda in addition to Priorities 1, 2, and 3. e MINUTES--Eugene City Council February 25, 1985 Page 6 'e e e IV. DISPOSITION AND DEVELOPMENT AGREEMENT--AX BILLY BUILDING Mr. Gleason briefly discussed the agreement the council will consider at its next regular meeting. He emphasized that the council has the responsibility and right to direct development projects. The projects often take a long time to prepare and accomplish. He asked for comments from councilors. All councilors present said they will vote to approve the project. Mr. Holmer said the council could have addressed some community concerns about the project, but the council did not have sufficient information about the bank, the investment of the developer, and what the City will gain from the project. Answering a question from Mayor Obie, Mr. Holmer said it would have been appropriate for the council to address the concerns when the federal grant application was denied. Mr. Miller had asked many questions about the project. He had learned the "worse case scenerio" for the City is no worse than if nothing is done. Ms. Schue was comfortable with the project because she had learned much during Community Development Committee discussions. The presentation by an Oregon Bank representative had been informative. She was not sure other councilors had heard that presentation. Mr. Hansen said the council does not need to be involved in every project, but when the projects are large, the council should be asked to "sign off" at some points because the process builds. If Mr. Gleason will recommend a change in future procedures so that the council is briefed at specific points, the process will be facilitated. A check list could be used. Ms. Bascom said Ms. Wooten was concerned about the large portion of Eugene development funds that were committed to the Ax Billy project when the federal grant request was denied. Mr. Gleason reviewed the process used to develop funding for the Ax Billy project and the financing of the project. He said the present condition of the building is very bad. Something had to be done. He emphasized that the project will be appraised at about $4 million when it is completed. Tax payments to the City will be increased as well as payments to School District 4-J and Lane Transit District. Answering a question from Mr. Miller, Mr. Gleason said the last two years of payments for the purchase of the building ($213,000) are the most "at risk" of the City's involvement. Mr. Obie approved the procedural changes suggested by Mr. Hansen. MINUTES--Eugene City Council February 25, 1985 Page 7 'e e - v. 6TH/7TH WIDENING PROJECT Mr. Holmer commended the staff on the centerfold notice of the 6th/7th avenues widening project in the Register Guard. The work session was adjourned at 9:35 p.m. Respectfully submitted, (Recorded by Betty Lou Rarick) 1 650C MINUTES--Eugene City Council February 25, 1985 Page 8