Loading...
HomeMy WebLinkAbout02/27/1985 Meeting . e .: M I NUT E S Eugene City Council City Council Chamber February 27, 1985 Noon COUNCILORS PRESENT: Emily Schue, Cynthia Wooten (12:15-1 :55), Freeman Holmer, Ruth Bascom, Roger Rutan, Jeffrey Miller. COUNCILORS ABSENT: Richard Hansen, Debra Ehrman. Adjourned meeting of February 25, 1985, of the Eugene City Council was called to order by His Honor Mayor Brian B. Obie. Mayor Obie announced that Councilors Hansen and Ehrman would be absent. Because Councilor Wooten would arrive later, Mayor Obie changed the order of the agenda. I. ITEMS FROM MAYOR AND COUNCIL, APPOINTMENTS, ANNOUNCEMENTS, AND AGENDA ADJUSTMENTS A. Councilor Bascom Conducts Tour of 6th/7th Loop Councilor Bascom would like to inform voters about the 6th/7th widening project. She invited her constituents to ride with her in her white pickup truck around the 6th/7th loop. Riders will sit up high and see the route clearly. She suggested other councilors invite their constituents to participate with her also. Interested citizens should telephone and arrange to meet her at 7th Avenue and Willamette Street within the next two weeks. B. Schue Announced Birth of Nicholas Leonard Councilor Schue announced the birth of Nicholas Leonard, son of Jody Miller and Kip Leonard, on Monday, February 25, 1985. Ms. Miller will resume her work in the City Intergovernmental Relations Department in August. Until then, the position is being filled by Elizabeth Cherry. c. Appointments Ms. Schue moved, seconded by Mr. Holmer, to approve the following nominations to the Human Rights Commissions: Aging Cotmlission Georgia Higgins (reappointed as member) Charles Strong (reappointed as member) Bessie Campbell (member) Ruth Koenig (alternate) Sabine Gordon (alternate) Theresa Taylor (alternate) Mary Tegger (alternate) 2555 Ri vervi ew 495 West 26th 750 East 36th 1237 Monroe 1 71 0 Cameo 992 Fillmore 151 N. Grand, #3 MINUTES--Eugene City Council February 27, 1985 Page 1 Disabled Commission - Collin Gray (reappointed as member) Michael Keller (member) lone Pierron (member) Elizabeth LePine (alternate) Minority Commission Ruben Sholander (reappointed as member) Linda French (reappointed as member) Angela Dean (member) Richard Mayers (member) Arturo Zamudio (alternate) Sharon Woods (alternate) Betty Snowden (alternate) Women's Commission Patty Pate (reappointed as member) Allison Hassler (member) Ellen Bezona (member) Susan Hoyt (alternate) Hilda Young (alternate) Eleanor Payle (alternate) Maureen Shine (alternate) ~ The motion carried unanimously, 5:0. D. Announcements 130 River Road, #60 710 Tyler, #2 1360 Ferry 2360 Jeppesen Acres 2236 Floral Hills 2244 Jefferson 2092 Roland Way 4490 Inwood Lane 556 Pearl 195 East 40th 3855 University 273 Coburg Road 62 East 23rd 2567 Harris 2150 Lincoln 1750 Kona 2176 Charnel ton 1801 Sylvan Referring to a memo dated February 26, 1985, to the councilors proposing a Mayor's Tree and Beautification Commission, Mayor Obie suggested the council take action on the commission on March 11,1985. At his request, Ms. Bascom discussed the proposal. Discussing the history of the proposal, Ms. Bascom said she had met with the councilors on the Joint Parks Committee and the staff and had discussed the matter with other councilors. She had incorporated their suggestions into the proposal. The commission would have eleven members. She suggested it review ordinances and the City's history concerning street trees and gateways and, after publicizing the information, have an all day public hearing. Mr. Gleason said a special task team would be appointed from the Planning, Public Works, and Parks departments to support the commission if it is approved by the council. II. ROUTINE ITEM FOR COUNCIL APPROVAL: CITY COUNCIL LEGISLATIVE SUBCOMMITTEE MINUTES OF FEBRUARY 15, 1985 (minutes distributed) Ms. Schue moved, seconded by Mr. Holmer, to approve the Legislative Subcommittee minutes of February 15, 1985. The motion carried unanimously, 5:0. - MINUTES--Eugene City Council February 27, 1985 Page 2 - e e III. FY84 FINANCIAL AUDIT, CORRECTING RESOLUTION, AND MANAGEMENT LETTER (memo, resolution, background information distributed) City Manager Micheal Gleason introduced the agenda item. Dee Ann Raile of the accounting section presented the staff report. She said the councilors had received copies of the Component Unit Financial Statements for the Urban Renewal Agency. The statements were audited by Peat, Marwick, Mitchell & Co. The City received an unqualified opinion which means the statements are presented fairly, consistently, and in accordance with generally accepted accounting principles. There were no deficiencies in the audit report. Discussing the Comprehensive Annual Financial Report for the City, Ms. Raile said it was audited by Peat, Marwick, Mitchell & Co. which expressed an unqualified opinion. Two deficiencies were noted. One concerned overdraft cash balances in the airport fund and in the Job Training Partnership fund as of June 30, 1984. The overdrafts were caused by timing differences in grant reimbursements. The staff is monitoring the timing closely now. The other deficiency concerned expenditures of $2,000 over the approved budget limits in the airport fund and of $16,000 in the library trust fund. The expenditures were for fire services and a computer up-grade. The council had approved the activities. The deficiencies were small compared to a budget of $130 mi 11 ion. Discussing the Letter to Management from Peat, Marwick, Mitchell & Co, Ms. Raile said the auditors did not determine the City had any major weaknesses in its system of internal auditing controls, but the letter indicated where management information or operation efficiencies can be improved. The staff has responded and is implementing the suggestions. Councilor Wooten arrived during the staff report. Councilor Holmer said the audit deserves attention from councilors. He suggested the Mayor consider the appointment of an audit committee of three councilors prior to receipt of the next audit. The committee could assist the staff informally. Ms. Schue agreed with the suggestion. Mayor Obie asked that consideration of an audit committee be put on a work session agenda of the council. He said the audit reinforced the council action which sought a resolution with EWEB to the "in-lieu-of-tax payments" problem. The auditors brought it up this year clearer and bolder than they have in the past. Councilors might incur personal liability by ignoring the management letter. He asked for a written report from the City Manager's Office or the Finance Division responding to the deficiencies noted in the management letter. Res. No. 3902--A resolution accepting measures taken to correct deficiencies disclosed in the Comprehensive Annual Financial Report for the fiscal year ending June 30, 1984. Ms. Wooten moved, seconded by Ms. Schue, to adopt the resolution. Role call vote; the motion carried unanimously, 6:0. MINUTES--Eugene City Council February 27, 1985 Page 3 IV. PUBLIC HEARING: SUPPLEMENTAL BUDGET #3 (memo attached) ~ City Manager Micheal Gleason introduced the agenda item. A staff report had been presented to the Budget Committee the previous evening. Warren Wong, Finance Director, was available to answer questions. Mayor Obie opened the public hearing. There being no requests to testify, Mayor Obie closed the public hearing. CB 28l0--An ordinance adopting a supplemental budget; making appropriations for the City of Eugene for the fiscal year beginning July 1, 1984, and ending June 30, 1985; and declaring an emergency. Ms. Wooten moved, seconded by Ms. Schue, 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; the motion carried unanimously, 6:0. Council Bill 2810 was read the second time by council bill number only. Ms. Wooten moved, seconded by Ms. Schue, 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. 19312). e Mayor Obie recessed the meeting of the Eugene City Council and convened a meeting of the Eugene Urban Renewal Agency. V. PUBLIC HEARING: EUGENE RENEWAL AGENCY SUPPLEMENTAL BUDGET #2 (resolution distributed) City Manager Micheal Gleason introduced the agenda item. A staff report had been presented to the Budget Committee the previous evening. Mr. Wong, Finance Director, was available to answer questions. Answering a question from Ms. Wooten, Mr. Gleason said the Urban Renewal Agency Supplemental Budget #2 concerned a loan for the renovation of the Ax Billy Building. A presentation about the whole project would be made later during this meeting when the council considers the disposition and development agreement for the building. Ms. Wooten decided to make her comments during the discussion of the project later in the agenda. Mayor Obie opened the public hearing. There being no requests to testify, Mayor Obie closed the public hearing. Res. No. 909--A resolution adopting a supplemental budget; making appropriations for the Eugene Renewal Agency for the fiscal year beginning July 1, 1984, and ending June 30, 1985. e MINUTES--Eugene City Council February 27, 1985 Page 4 e Ms. Wooten moved, seconded by Ms. Schue, to adopt the resolution. Role call vote; the motion carried unanimously, 6:0. FY84 FINANCIAL AUDIT AND ADOPTING RESOLUTION (memo, resolution, background information distributed) City Manager Micheal Gleason introduced the agenda item. He said Dee Ann Raile had discussed this matter during consideration of the FY84 Financial Audit, Correcting Resolution, and Management Letter (Item III). She was available to answer questions. VI. Res. No. 910--A resolution adopting the component unit finan- cial statements for the Urban Renewal Agency for the City of Eugene for the fiscal year ending June 30, 1984. Ms. Wooten moved, seconded by Ms. Schue, to adopt the resolution. Role call vote; the motion carried unanimously, 6:0. Mayor Obie adjourned the meeting of the Eugene Urban Renewal Agency and reconvened the meeting of the Eugene City Council. e VII. ADVANCE REFUNDING OF COMMUNITY CONFERENCE CENTER CERTIFICATES OF PARTICIPATION (memo, background information distributed) City Manager Micheal Gleason introduced the agenda item. Warren Wong, Finance Director, presented the staff report. He said the council had approved the refinancing of the Community Conference Center Certificates of Participation in January of 1985. The underwriters had marketed the issue at $11.665 million and sold it at a true interest cost of 9.09 percent. It is a AAA rated issue because insurance was acquired. The City has realized a 4.93 percent or $400,000 savings because of the refinancing. Noting the matter concerned both the Eugene Urban Renewal Agency and the City Council, Mr. Obie reconvened the meeting of the Urban Renewal Agency and asked that the previous staff comments on this item be included in the minutes of its meeting. Res. No. 91l--A resolution concerning the refinancing of the Eugene Conference Center and authorizing the execution of an amendment to the intergovern- mental agreement. Ms. Wooten moved, seconded by Ms. Schue, to adopt the resolution. Role call vote; the motion carried unanimously, 6:0. e Mayor Obie adjourned the meeting of the Eugene Urban Renewal Agency and reconvened the meeting of the Eugene City Council. MINUTES--Eugene City Council February 27, 1985 Page 5 e e e CB 2811--An ordinance concerning the refinancing of the Eugene Conference Center; authorizing execution of documents; and declaring an emergency. Ms. Wooten moved, seconded by Ms. Schue, 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; the motion carried unanimously, 6:0. Council Bill 2811 was read the second time by council bill number only. Ms. Wooten moved, seconded by Ms. Schue, 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. 19313). VIII. ORDINANCE AMENDING APPOINTMENT PROCESSES FOR VARIOUS CITY BOARDS AND COMMISSIONS (memo, ordinance distributed) Mayor Obie said the proposed adjustments were discussed by the council at a work session in January. Currently, Citizen Involvement Committee (CIC) members are interviewed and appointed by the council, Community Schools Coordinating Committee members are interviewed and recommended by a council subcommittee and appointed by the council, Metropolitan Area Planning Advaisory Committee (MAPAC) members are interviewed and nominated by a council subcommittee and appointed by the council, and Metropolitan Cable/Television Commission members are interviewed and nominated by a council subcommittee and appointed by the council. The council had directed the staff to prepare an ordinance which provides that CIC, Community Schools Coordinating Committee, MAPAC, and Metropolitan Cable/Television Commission members all be nominated by the Mayor and appointed by the council. CB 2812--An ordinance concerning City boards and commissions; amending Section 2.013 of the Eugene Code, 1971, and Ordinance No. 18710; and declaring an emergency. Ms. Wooten moved, seconded by Ms. Schue, 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; the motion carried unanimously, 6:0. Ms. Wooten said the Mayor and Ms. Freedman had given detailed information about prospective appointments to councilors and had sought their advice about appointments. She appreciated the efforts. Mayor Obie asked for recommendations from councilors about potential MAPAC nominees. MINUTES--Eugene City Council February 27, 1985 Page 6 e e e Council Bill 2812 was read the second time by council bill number only. Ms. Wooten moved, seconded by Ms. Schue, 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. 19314). Mayor Obie recessed the meeting of the Eugene City Council and reconvened the meeting of the Eugene Urban Renewal Agency. IX. DISPOSITION AND DEVELOPMENT AGREEMENT--AX BILLY BUILDING (memo, background information distributed) City Manager Micheal Gleason introduced the agenda item. Greg Byrne of the Development Department presented the staff report. He introduced Michael Schwartz, President of the Downtown Commission, Tom Fuller, Vice President for Business Services of the Oregon Bank, Bruce Anderson, a member of the Eugene Loan Advisory Committee, and Rob Bennett, the developer. Mr. Schwartz said the Downtown Commission unanimously approved the working drawings of the project and the Development and Disposition Agreement. The development is an important part of the Downtown Plan. The commission supported the project because it is economic diversification for the downtown, it will anchor the south end of the mall, it will mean 50 new jobs the first year, it is a major private investment, it will increase activity in the mall all day, itwill get the Ax Billy Building back into private ownership and back onto the tax rolls, it will mean additional income to the City, an old building will be rehabilitated, and the "spill over effect" which will attract other new businesses to the mall. The project will pay the parking fund $2,725, ad valorem taxes of $11,600, and Lane Transit District taxes of $1,290. Mr. Schwartz said Mr. Bennett, the developer has committed $2.8 million to the project supported by the Oregon Bank. If the project fails, property taxes will be limited to the third floor of the building. The taxes will be $19,374 for 1987. There will be new tax increment taxes. The Loan Advisory Committee reviewed the project and the creative financing package developed by the City. The committee indicated the package responded to policies adopted by the council. He said the project has more strengths than weaknesses. It will give the downtown momentum. He urged unanimous council support. Mr. Fuller said the City must participate in the financing of the project to mitigate the risk to the Oregon Bank. About 75 percent of the loan will be provided by the bank which wants to see the mall succeed and grow. He had found that pUblic/private partnerships such as this one create additional private reinvestment and new investment in the area. Of the approximately $3.9 million needed for the project, $863,000 or about 23 percent will be public money. The balance is in equity provided by the developer in a limited partnership and in financing from the Oregon Bank. He emphasized that the project will improve a vacant building and put it back on the tax ro 11 s . MINUTES--Eugene City Council February 27, 1985 Page 7 - e e Mr. Fuller said the staff did an excellent job of reviewing financing options. The project may have less risks than it would have had if the original proposals had been approved. The Oregon Bank is proud to participate with the City in the public/private partnership. Answering a question from Mr. Holmer, Mr. Fuller said the City's participation ($863,000) includes the original purchase price of the land, a $300,000 business development fund loan, and $200,000 and $350,000 in two categories from the Urban Renewal Agency. Mr. Miller was concerned about the "worst case senario." He asked if the City will be in a better position if the project fails than if nothing is done. Mr. Schwartz said membership in three or four years will indicate if the project will be successful in the long term. Anything done to the building now will be an improvement. About $3.4 million will be spent on improvements to the structure. Ms. Wooten was also concerned about the "worst case senario." Answering her questions, Mr. Fuller said the break-even point is 1,225 members. There are about 200 members now. If the project fails, the Oregon Bank will take possession of the building. Conversion of the building to office space will cost between $200,000 and $400,000. The Bank would then sell the building. The building will be appraised at $3.8 as an athletic club. It has not been appraised as an office building. Ms. Wooten emphasized that the City will probably lose its investment if the project does not succeed. Mr. Fuller said the bank considers the developer's guarantee important. The guarantee is to the City as well as to the Bank. Ms. Wooten asked if capital could be raised so that the City would not have to invest more than the originally anticipated $300,000. Mr. Fuller did not think that could be accomplished now. If it were mandated, the bank would not support the project. Mr. Gleason pointed out the original proposal was for a much smaller project. Mr. Fuller said the Oregon Bank had originally expected to loan only $1.3 million for the project. Now the Bank is loaning $1.6 million for the building, $525,000 for equipment, and $150,000 for operating expenses. The original project included a $500,000 Federal loan. Mr. Schwartz answered an inquiry from Mr. Holmer by saying the southern end of the mall does not have an anchor to bring traffic to it now. Discussing the project, Ms. Wooten said she wants the southern part of the mall to prosper and she is enamored with the Ax Billy Building. She has been concerned about the project because the level of public commitment is great, because of the kind of jobs that will be created, and because the facility will not be open to the public. She would have supported a City commitment of $300,000, but she felt the City's equity position in case of failure is risky now. She supported the disposition of the property. Her concern involved the level of the City's loans. She hoped the City's financial commitment could be decreased to the originally proposed $300,000. There is still a need for other loans in the downtown and this project will deplete MINUTES--Eugene City Council February 27, 1985 Page 8 e the funds. She thought the project is marginal and had not received loans from the Small Business Administration because of its nature. Ms. Wooten moved, seconded by Ms. Schue, to approve the Disposition and Development Agreement for the Ax Billy Building as outlined in the staff memorandum dated February 20, 1985. Roll call vote; the motion carried unanimously, 6:0. Ms. Wooten was pleased about the disposition of the property. She would like the council to be informed about efforts to lower the City's commitment and about the progress of the project. She wondered at what point the City would decide not to make additional contributions if memberships are not obtained. Mayor Obie complemented the staff on its tenacity in developing the project. He appreciated the Oregon Bank's commitment to the downtown, the Downtown Commission's creation of the project, and Mr. Bennett's personal guarantee. e Ms. Bascom and Mr. Holmer appreciated Ms. Wooten's questions and comments. Mr. Holmer thought the risk is bearable. Ms. Schue appreciated Ms. Wooten's concerns but did not share all of them. Because she is chairer of the Community Development Committee, she had discussed the project at length. She thought the opportunity outweighted the risk because the downtown needs the project, the building will be saved and be in private ownership, the jobs will be good for University students, the project fits City goals, and because she respects Mr. Bennett, the Downtown Commission, the Oregon Bank, and the staff. X. ANNEXATION REQUEST BY DOUGLAS AND JEAN WATERS (AZ 84-4) (memo, map, background information distributed) City Manager Micheal Gleason introduced the agenda item. Jim Croteau of the Planning Department presented the staff report. He discussed the extraterritorial water extension and annexation policies of the city. The applicants had applied for an extraterritorial water extension. City policy required them to apply for annexation because urban services are available and their property is contiguous to the City. There is a deferred sewer assessment against the property. Answering questions from Mr. Holmer, Mr. Croteau said the applicants' request for water extension was processed. Their well had failed. The staff explained City policies to them when they requested the extension. He did not think they would be willing to give up city water now. Mr. Holmer was not eager to forcibly annex property, but he agreed with the City policies. Res. No. 3903--A resolution forwarding a recommendation to the Lane County Boundary Commission for annexation of property located north on Shasta Loop, east of Barber Drive, to the City of Eugene and the Lane County Metropolitan Wastewater Service District. e MINUTES--Eugene City Council February 27, 1985 Page 9 e e - Ms. Schue moved, seconded by Mr. Holmer, to adopt the resolution. Role call vote; the motion carried unanimously, 5:0. Ms. Wooten had left the meeting. XI. CONSIDERATION OF EUGENE AGENDA AND SCHEDULING OF PUBLIC HEARING Mayor Obie suggested a hearing on the Eugene Agenda be scheduled for Monday, April 1,1985, at 7:30 p.m. Ms. Bellamy will develop an informational strategy concerning the Eugene Agenda which will solicit public comment before the public hearing. Ms. Schue moved, seconded by Mr. Holmer, to approve, in concept, the Eugene Agenda and schedule a pUblic hearing on it for April 1, 1985. Role call vote; the motion carried unanimously, 5:0. XII. DIRECTION TO THE BUDGET COMMITTEE CONCERNING THE CAPITAL IMPROVEMENT PROGRAM (resolution distributed) City Manager Michea1 Gleason said the resolution reflected council discussion, at its work session of February 25, to give direction to the Budget Committee. Res. No. 3904--A resolution concerning review of the proposed 1985-86 Capital Budget. Ms. Schue moved, seconded by Mr. Holmer, to adopt the resolution. Roll call vote; the motion carried unanimously, 5:0. The meeting was adjourned. Respectfully submitted, ~~- Ci ty Manager (Recorded by Betty Lou Rarick) BLR:je/1651 C MINUTES--Eugene City Council February 27, 1985 Page 10 e M E M 0 RAN DUM February 20, 1985 TO: Budget Committee and City Council FROM: Warren G. Wong, Finance Director SUBJECT: SUPPLE~1ENTAL BUDGET ~e3 Attached are the Ordinance and Resolution and supporting schedules to facilitate Supplemental Budget #3 for the City of Eugene and the Eugene Renewal Agency for FY85. The following schedule summarizes the impac~ of Supplemental Budget ~3. General/Federal Other Total Item Revenue Sharing Fund Funds Funds l. Budget/Accounting $ 0 $ 0 s 0 Adjustmen"ts - 2. Unanticipated Revenue 119.217 3,046.750 3,265,967 $ 119,217 $3,046,750 $3;165,967 - -- FNGRM009 Attachments e e M E MaR AND U M February 14t 1985 From: Dee Ann Railet Reporting and Control ~~ Manager ~~~ To: City Council Subject: FY84 Financial Audit, Correcting Resolution and Management Letter Enclosed is the Comprehensive Annual Financial Report for the City of Eugene for the year ended June 30, 1984. The financial statements have been audited by Peat, Marwick, Mitchell & Co. The auditors have expressed an unqualified opinion on the financial statements. An unqualified opinion indicates the financial statements present fairly the City's financial position and results of operation for the year ended June 30, 1984. Attached is a resolution providing for corrective action to address citations noted in the section titled IIAudit Comments and Disclosuresll (page 189). The resolution directs staff to implement policies and procedures to correct the cited incidences. However, it is important to note that none of the citations enumerated by the auditors were of sufficient merit to impinge on ~ the internal controls or the integrity of the City's financial systems. .., Each year as a function of the external audit, the auditor's review the City's system of internal accounting controls. The purpose of the auditor's review is to determine the nature, timing and extent of the auditing procedures that will be necessary to express an opinion on the City's financial statements. The review of internal controls for FY84 disclosed no material weaknesses in the system of internal controls. The review did disclose certain opportunities for improving management infor- mation and operational efficiency. The enclosed document from Peat, Marwick, Mitchell & Co. details those suggestions. Also enclosed is the staff response to implementing the external auditor's suggestions. cc: M. Gleason D. Whitlow G. Long W. Wong C. Dallas Attachment--4 ATDAR6 e e - e RESOLUTION A Resolution Accepting Measures Taken To Correct Deficiencies Disclosed in The Comprehensive Annual Financial Report for The Fiscal Year Ending June 30, 1984 The City Council of the City of Eugene finds that: The firm of Peat, Marwick, Mitchell & Co. has completed the audit of the financial records of the City of Eugene for the fiscal year ending June 30, 1984, as required by ORS 297.425 and, pursuant to ORS 297.465, reported to the Mayor and City Council on its findings. The report advised the Mayor and City Council of certain deficiencies in the financial records of the City. ORS 297.466 requires that the City Council adopt a resolution setting forth measures to correct the deficiencies noted in the audit report and the period of time estimated to implement and complete these corrective measures. Now, Therefore 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 audit report stated that the City made expenditures in excess of the amount appropriated on a fund and department basis. Sp~cifi ca lly: 1. Overexpenditure of $16,655 in the Library Trust Fund due to misbudgeted capital project expenditures for a computer upgrade. 2. Overexpenditure of $2,143 in the Municipal Airport Fund due to departmental operating expenditures in excess of budget for Fire Department activities at the airport. The Finance Division has been monitoring budget compliance on an ongoing basis. This monitoring activity provides a reasonably prudent control eliminating such overexpenditures to as great an extent as possible, and and as such provides an appropriate corrective measure. Section 2. The audit report stated that throughout the year there were several funds that operated in a cash deficit position and that these defi- cits in substance, represent unauthorized interfund loans. Cash deficit positions result during the first several months of the fiscal year since it is not possible to record the ending cash balance as of the prior year end until the audit is completed for the prior year. These deficits are therefore created by a system restriction and do not necessarily reflect a true deficit. Specifically, the cash deficit at June 30, 1984 of $192,720 for CETA/JTPA Fund and $30,166 for the Municipal Airport Fund results from the "reimbursement basis" of the grant revenue sources in those funds. The CETA/JTPA reimbursement for June 84 activity was received in the first week of July. The FAA grant reimbursement was erroneously stalled at grantor headquarters and not received by the City until late July 84. A system has been established identifying a regular billing cycle for the grants. Re- imbursement requests, amounts of reimbursement and date the reimbursement is received will be noted in the file. This process will assist in com- pleting regular grant billings and identifying necessary follow-up tasks. This process provides tighter control while still balancing Oregon Budget Law Restrictions with Federal Grant Requirements. Section 3. That the foregoing corrective measures have been completed as of the date of adoption of this Resolution. Section 4. That the Comprehensive Annual Financial Report for the year ended June 3D, 1984 is adopted. The foregoing resolution adopted the 27th day of February, 1985. City Recorder e e e e eo e RESOLUTION NO. 909 A RESOLUTION ADOPTING A SUPPLEMENTAL BUDGET; MAKING APPROPRIATIONS FOR THE EUGENE RENEWAL AGENCY FOR THE FISCAL YEAR BEGINNING JULY 1, 1984 AND ENDING JUNE 30, 1985. The Eugene City Council, acting as the governing body of the Eugene Renewal Agency under ORS 457.045(3), finds that adopting the supplemental budget and making appropriations is necessary under ORS 294.480(3). NO\{, THEREFORE. BE IT RESOLVED by the Eugene City Council, acting as the governing body of the Eugene Renewal Agency, as follows: Section 1. The supplemental budget as approved by the budget committee for fiscal year beginning July 1, 1984, set forth in attached Exhibit "A" is hereby adopted. Section 2. The supplemental amounts for the fiscal year beginning July 1, 1984, and for the purposes?hown in attached Exhibit "A" are hereby appropriated. The foregoing resolution adopted this 27th day of February 1985. Director - M E M 0 RAN DUM February 13, 1985 From: Dee Ann Raile, Reporting and Control Manager ~ 'V\\{~.( To: Urban Renewal Agency Subject: FY84 Financial Audit and Adopting Resolution Enclosed is a copy of the Component Unit Financial Statements of the Urban Renewal Agency for the City of Eugene for the year ended June 30, 1984. The financial statements were audited by Peat, Marwick, Mitchell & Co. The. auditors has expressed an unqualified opinion on the financial statements. An unqualified opinion indicates that the financial statements present fairly the financial position and results of operations for the Urban Renewal Agency for the year ended June 30, 1984. The accompanying resolution adopts the Urban Renewal Agency Component Unit Financial Statements. cc: M. Gleason D. Wh it 1 ow G. Long J. Porter . W. Wong C. Da 11 as - Attachment--2 ATDAR5 e e e e RESOLUTION A Resolution Adopting the Component Unit Financial Statements for the Urban Renewal Agency of the City of Eugene for The Fiscal Year Ending June 30, 1984 The City Council of the City of Eugene acting in their capacity as the Board for the Urban Renewal Agency for the City of Eugene finds that: The firm of Peat, Marwick, Mitchell & Co. has completed the audit of the financial records of the Urban Renewal Agency of the City of Eugene for the fiscal year ending June 30, 1984, as required by ORS 297.425 and, pursuant to ORS 297.465, reported to the Mayor and City Council on its findings. The report advised the Mayor and City Council of no deficiencies in the financial records of the Urban Renewal Agency of the City of Eugene. Now, Therefore Be it resolved By the City Council of the City of Eugene, acting in their capacity as the Board for the Urban Renewal Agency of the City of Eugene, that the Component Unit Financial Statements for the year ended June 30, 1984 for the Urban Renewal Agency for the City of Eugene be adopted. The foregoing Resolution adopted the 27th day of February 1985. Mayor, as chairperson of the Eugene Urban Renewal Board M E M 0 RAN DUM e February 20, 1985 TO: Mayor and Eugene City Council as the Eugene Renewal Agency FROM: Downtown Commission SUBJECT: DISPOSITION AND DEVELOPMENT AGREEMENT--AX BILLY BUILDING Background Robert D. Bennett holds the option to purchase and redevelop the Ax Billy Building. He secured the option after his proposal to rehabilitate the building for use as an athletic facility was selected by the Eugene Renewal Agency in a Request for Qualifications process. Bennett has given notice of his intent to exercise the option, which expires February 28, 1985. The Development and Disposition Agreement details the terms of the purchase of the property and its redevelopment. The Downtown Commission has reviewed the Disposition and Development Agreement and forwards a unanimous recommendation for approval. A draft agreement prepared by the City Attorney's Office, formally known as the "Agreement for Sale of Land for Private Deve.1opment," construction plans, and floor plans e come under separa te cover. . City Involvement The Downtown Commission supports City involvement in this project because of the public benefit in downtown economic development. A successful athletic facility at that location will provide: . Fifty new permanent full-time jobs, 80 percent of which are targeted for low- and moderate-income persons, plus additional part-time jobs, . Over $2.8 million in private investment, . Increased mall activity before, during, and after regular business hours, . Rehabilitation of an historic building, . Return of the property to the tax rolls, . Stimulation of additional reinvestment in the area. The commission's downtown revitalization strategy is dependent upon building successful private/public partnerships. Public dollars are invested where ~ substantial private investment occurs. When this project was initiated, e DISPOSITION AND DEVELOPMENT AGREEMENT--AX BILLY BUILDING February 19, 1985 Page 2 it was assumed that the City's role would simply be one of a vendor selling the building. The municipal role in development practice has changed sub- stantially since then. Public participation in financing is now an essential development incentive. Disposition and Development Agreement Highlights of the document include: . $213,000 building purchase price; this figure determined by an independent fee appraisal previous to offering the building for sale. . Return of $5,000 of the $10,000 option consideration currently held by the agency upon successful and timely completion of the project. . Scope of plan review by the agency. Major changes require agency approval. Major changes include changes which affect the historic rehabilitation or the availability of major recreational or other facilities in the club. e . Requirement that the developer remain as the business's general partner unless a change is approved by the agency. This is included to protect the City's reinvestment. . Completion deadline of December 31, 1985. . The agency's default remedies that include rights as a holder of a trust deed and personal guarantees by the developer. Construction Plans e The exterior elevation plan for the building was prepared by George McMath, FAIA, of Portland, a respected specialist in historic rehabilitation. The building will be rehabilitated to its appearance in approximately 1930. The third floor addition has been designed to be compatible with the original exterior, but not to imitate it, which is in keeping with policies regarding buildings on the National Register. It is set back ten feet so that it will be less visible from street level. Mr. McMath also consulted with the project engineer, Emile Mortier, regarding the rehabilitation of interior elements of historic significance. The structural drawings show the complete interior reframing, including the historic elements to be retained. The drawings are in keeping with preliminary approvals by the Oregon State Historic Preserva- tion Office and the National Register Division of the National Park Service, Department of the Interior. They have been submitted for final approval, which is expected in March. DISPOSITION AND DEVELOPMENT AGREEMENT--AX BILLY BUILDING February 20, 1985 Page 3 e Future Action Two items related to the project will come to the council for action in the future. One is a supplemental budget in March which will include the tax allocation funding. The other is the Community Development Block Grant Three-Year Plan which will include the use of CDBG funds for interim financing. The former has been recommended by the Downtown Commission. The latter is being reviewed and recommended by the Community Development Committee. Major changes in the plans, as described above, will also be referred to the agency. The Downtown Commission will receive regular project progress reports. Recommendation The Downtown Commission recommends approval of the Agreement for Sale of Land for Private Development and construction plans. As the option agreement with the developer expires February 28, 1985, a brief extension may be necessary. ~ The commission recommends the City Manager be authorized to extend the option . agreement up to two weeks and to execute the sale agreement. Action City Council acting as Eugene Renewal Agency approves Agreement for Sale of Land for Private Development and construction plans. Authorizes City Manager to extend option and to execute Agreement for Sale. JB:ky/Ta16 e February 21, 1985 To: Ci ty Council Urban Renewal Agency e From: Warren G. Wong, Finance Director Subject: Advanced Refunding of Community Conference Cente~ Certificates of Participation At your January 16th meeting, you approved a plan to initiate an advanced refunding of the outstanding Certificates of Participation used to construct the Eugene Community Conference Center. At that time, we indicated that finalization of this plan would require several changes to existing agreements and confirmation of new agreements pertinent to the refunding issue: The changes to existing agreements and new agreements are as follows: A. As the Urban Renewal Agency: 1. Authorizes sale of New Certificates of Participation and transfers "rental payments" from the URA to the City to the New Certificates. 2. Amends the Intergovernmental Ageements between the URA and the City to recognize that "rental payments" are to be considered along with outstanding Tax Increment Bonded Debt payments in the application of coverage requirements for the issuance of additional parity bonded debt. e B. As the City Council: 1. Authorizes the City to enter-into a Purchase Agreement with the Underwriters, Kidder-Peabody/Shearson Lehman (Foster & Marshall) - American Express/Portland Northwest, for new Certificates of Participation to be called Refunding Certificates as follows: *a. Principal Amount -- $ *b. True Interest Rate -- *Net Present Value Savings -- $ *NOTE: At the time this memorandum was prepared, the above information was not available as the issue was still being marketed by the Underwriters. However, at your February 27th meeting, this information will be available for inclusion in the documents. 2. Amends Intergovernmental Agreement between City and URA to: a. Recognize advance refunding program. b. Formally recognize that coverage requirements on the issuance of additional parity Tax Increment Bonded Debt must also cover the "rental payment" on the Refunding Certificates as well as the debt service on currently outstanding URA bonds. 3. Amends Lease-Purchase Agreement between the City and the Trustee, First Interstate Bank of Oregon, to recognize that the Refunding Certificates are replacing the existing Certificates. e 4. Authorizes the City to enter into a new Refunding Trust Indenture with the new holders of the Refunding Certificates of Participation, which transfers provisions of the current Indenture to the new Refunding Indenture; and, further, makes the following changes or adds to the existing provisions as follows: a. Changes restrictions on Trust Fund investments from a maximum of ten years to five years and limits investments to placement in banks with at least $50 million in capital rather than the present $10 million bank capital requirement. b. Requires that Tax Increment revenue be equal to 110% of the ~ maximum annual debt service on additional certificates be in place ,., before issuing additional certificates. c. Establishes a reserve account within the Construction Fund held by the Trustee to cover possible payments of property taxes to which the City is currently seeking exemption from trye State Department of Revenue. 5. Establishes an Escrow Account that covers investment of proceeds from the sale of Refunding Certificates. The funds will be invested in U. 'S. Government obligations to match the payment of principal, interest and final redemption (1992) amounts of the original "defeased" Certificates. Escrow account with First Interstate Bank. 6. Adopts Investment Instructions for the escrow deposit account which directs that certain investments, not in violation of U. S. Treasury Department arbitrage regulations, be made by First Interstate Bank. 7. Designates First Interstate Bank to continue in its role of Paying Agent and to act as Registrar on the Refunding Certificates. 8. Formally recognizes and authorizes the issuance of the Official Statement on the Refunding Certificates. The State Treasurer1s Office has reviewed and given approval to this advance refunding proposal, meaning they have confirmed that the proposal is "doable" and will meet statutory requirements for minimum net. savings. from the refunding. We are enclosing a copy of the Preliminary Official Statement and will have available in the City Manager1s Office and Finance a complete set of the agreement cited above. The Official Statement will be released after your approval of the attached resolution and ordinance. - We are requesting your approval of an ordinance and a resolution acting as the City Council and Urban Renewal Agency, respectively. cc: M. Gleason D. Wh it 1 ow G. Long J. Porter C. Da 11 as Moore-Breithaupt Attachment -- 3 fnwgw541 e e e e M E M 0 RAN DUM Februa ry 22, '1985 TO: FROM: RE: City Council Mayor Brian B. Obie CITY BOARD AND COMMISSION APPOINTMENT PROCESSES At the Council Goals Session last October, Council agreed that a review of the various appointment processes of city boards and commissions was in order. During the recent Quarterly Process Session, Councilor Wooten and I recom- mended the following changes: CITIZEN INVOLVEMENT COMMITTEE Current Process: Recommendation: Interviewed and Appointed by Council Nominated by Mayor; Appointed by Council COMMUNITY SCHOOLS COORDINATING COMMITTEE Current Process: Interviewed and Recommended by Council Subcom- mittee; Appointed by Council Nominated by Mayor; Appointed by Council Recommendation: METROPOLITAN AREA PLANNING ADVISORY COMMITTEE (MAPAC) Current Process: Interviewed and Nominated by Council Subcom- mittee, Appointed by Council Nominated by Mayor; Appointed by Council Recommendation: METROPOLITAN CABLE/TELEVISION COMMISSION Current Process: Interviewed and Nominated by Council Subcom- mittee; Appointed by Council Nominated by Mayor; Appointed by Council Recommendation: At that session, Council agreed to have staff prepare an ordinance imple- menting these changes and that ordinance is attached. We would appreciate your consideration of these changes at the February 27 City Council meeting. ORDINANCE NO. e AN ORDINANCE CONCERNING CITY BOARDS AND, COMMISSIONS~ AMENDING SECTION 2.013 OF THE EUGENE CODE, 1971 AND ORDINANCE NO. 18710~ AND DECLARING AN EMERGENCY. THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS: Section 1. The table of City Boards, Commissions and Committees set forth in subsection (1) of Section 2.013 of the Eugene Code, 1971, is hereby amended to provide that members of the Citizen Involvement Committee, Community Schools Coordinating Committee, Metropolitan Area Planning Advisory Committee (MAPAC), and Metropolitan Cable/Television Commission shall be nominated by the Mayor and appointed by the Council. Section 2. Ordinance No. 18710 adopted by the Council e and approved by the Mayor on October 8, 1980 is amended to provide that members of the Citizen Involvement Commi ttee shall be nominated by the Mayor and appointed by the Council. Section 3. The activities of the committees and commission referred to herein concern the public welfare, and in order to insure the continuation of those activi ties and appointments thereto in an orderly manner, an emergency is hereby declared to exist, and this Ordinance shall become effective immediately upon its passage by the Council and approval by the Mayor. Passed by the City Council this 13th day of February, 1985 Approved by the Mayor this 13th day of February, 1985 City Recorder Mayor e .. e e e MEMORANDUM February 18, 1984 To: Mayor and City Council From: Planning Department Subj: Annexation Request by Douglas and Jean Waters (AI 84-4) On February 5, 1984, the Eugene Planning Commission recommended (5-0) to the City Council annexation of the above request. The site, tax lot 900, containing 2.23 acres, is located on the north side of South Shasta Loop east of Barber Drive. The property has one single family residence owned and occupied by the Waters. Earlier last year, the Waters approached the city seeking an extension of city water due to their failing on-site well. Water extensions outside the city are governed by the Council-adopted Policy # 2643. The policy allows extension of water to developed properties outside the city but within the Urban Growth Boundary if the property cannot meet the criteria for annexation at the time of the request for water extension. I n these cases, the property owner must sign an agreement consenting to annexation when their property does meet the criteria for annexation. However, the request by the Waters indicated that their property would meet the criteria for annexation and so the staff required that they submit an annexation petition. The request for water extension was also processed and approved by the Boundary Commission due to the fact that the existing well had failed and the Waters couldn't wait for the annexation to receive water service. At the Planning Commission public hearing, no opposition to the proposed annexation was presented other than the applicants who do not wish to annex to the city in order to recieve water service. The applicants did submit a letter previously submitted to the Boundary Commission regarding their position on annexation and water extension (see attachments). The Planning Department is requesting that the City Council pass the resolution recommending annexation to the Lane County Boundary Commission. However, if the Council feels a public hearing is necessary, it may by a majority vote set the hearing date for March 11, 1985. Attachments: Staff Notes, Eugene Planning Commission, February 5, 1985. Minutes, Eugene Planning Commission, February 5, 1985. Applicant's Letter to the Lane County Boundary Commission pljcmem4 t >, ~ Douglas and Jean Waters (A/Z 84-4) Tax Lot 900--Assessor's Map 18-03-16-3 0 e Located north on Shasta Loop, east of Barber Drive. Annexation to the City of Eugene and Lane County Metropolitan Wastewater Service District with concurrent application for City zoning and sign district. Rezoning from Lane County RA/U to City of Eugene RA Suburban Residential District and designation of Residential Sign District. , , I C 100' 3~~ e - 1-6