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HomeMy WebLinkAbout10/09/1985 Meeting / , M I NUT E S . Eugene City Council City Council Chamber October 9, 1985 Noon COUNCILORS PRESENT: Cynthia Wooten, Richard Hansen, Emily Schue, Ruth Bascom, Debra Ehrman, Roger Rutan, and Jeff Miller. COUNCILOR ABSENT: Freeman Holmer. The regular meeting of the City Council of the City of Eugene, Oregon, was called to order by Council President Cynthia Wooten in the absence of His Honor Mayor Brian B. Obie. I. ITEMS FROM MAYOR AND COUNCIL, APPOINTMENTS, ANNOUNCEMENTS, AGENDA ADJUSTMENTS A. Distribution of TransPlan e Councilor Bascom announced that the Metropolitan Area Transportation Committee had met and are distributing copies of the TransPlan, which councilors will receive before long. She said the projected vehicle registration in this area is seven percent of the projected vehicle registration in the state, but the area will only receive two percent of the State funds for street and highway improvements. She said our area is underfunded by the State. City represen- tatives should have an incentive for working hard to get a fair share of State funds. Answering a question from Councilor Wooten, Ms. Bascom said the TransPlan replaces the T-2000 Plan. The TransPlan contains projections for an addi- tional population of 100,000, but it does not project a date when the metro- politan area will have an additional 100,000 people. B. L-COG Appreciation Dinner Councilor Schue said the L-COG Appreciation Dinner will be held October 25, 1985. She urged councilors to attend. Senator Hatfield will speak. C. Police and Fire Response Times Councilor Miller said he has received inquiries from constituents about police and fire response times. He suggested the council review cost estimates of increasing the number of police officers and firefighters. Mr. Gleason responded that the council.s goal-setting session would be an appropriate time to discuss service levels. He will prepare a report. e MINUTES--Eugene City Council October 9, 1985 Page 1 v D. Appreciation from University of Oregon Representatives . Councilor Ehrman said that University of Oregon representatives have expressed appreciation for the efforts of City representatives during the legislative session. E. Information on Ballot Measure Ms. Ehrman had asked for information from the staff about publicity being gen- erated by the City about the income tax ballot measure. She said the City should distribute neutral information. She is pleased with the Fact Sheet. She suggested that the council consider plans during a work session. F. Airport Expansion Plans Mr. Rutan said he and Councilor Hansen have met with Bob Shelby and Ed Smith to discuss the airport expansion plans. Mr. Shelby will discuss the plans with local contractors. Mr. Rutan will attend the meetings. Answering a question from Ms. Ehrman, Mr. Rutan said no effort to scale down the plans has been made. The project is planned incrementally. It coul d be changed if the council wished. Ms. Wooten suggested some thought be given to scaling down the project. Councilor Hansen said an enclosed area for boarding and unboarding is very e important to the expansion and dictates how the expansion is planned. G. Eugene Celebration Mr. Rutan expressed his appreciation for the excellent job Ms. Wooten did in directing the Eugene Celebration. II. COMMUNITY REPORT: COMMUNITY SCHOOLS PROGRAM City Manager Micheal Gleason introduced the agenda item and said that Molly Stafford would give the staff report. Ms. Wooten said that Ms. Stafford represents the City on the Community School Coordinating Committee (CSCC). Ms. Stafford distributed a pamphlet titled "Eugene 4-J Community Schools Are Open for You" and two pages which described the community school s. She said Twin Oaks and Awbrey Park schools are new community schools this year. Neigh- borhood groups were encouraged to get involved in the application process for the new schools. City funds do not support the new schools because they are not inside the city limits. She said City support for community schools is essential because it ensures that the programs will reach all citizens. The 4-J Board of Directors approved revisions in the 4-J Community School pol- icies which the CSCC recommended, Ms. Stafford said. The revisions did not - affect the four goals for community schools adopted by the City Council and MINUTES--Eugene City Council October 9, 1985 Page 2 the 4-J Board of Directors in 1979. She said community school coordinators e work closely with City Community Centers to avoid duplication, present comple- mentary programs, and jointly sponsor activities. She discussed programs in the middle schools and cooperative programs with neighborhood groups. She said programs at the community schools differ because the programs reflect citizen participation in planning. The community school advisory group meet- ings are attended by many neighborhood people who are not involved in regular school activities. Answering a question from Mr. Hansen, Ms. Stafford said 4-J policies indicate that all schools should become community schools. However, if community schools are begun in neighborhoods which are not ready for them, the schools grow very slowly. Consequently, the CSCC recommends new community schools only when interest is shown by the neighborhood. Currently, no funds to expand the number of community schools are available. Replying to a question from Ms. Bascom, Ms. Wooten said the City contributes $36,000 and the 4-J district contributes $150,000 to community schools. Ms. Stafford said both the City and the school district reduced the funding several years ago . Two years ago, the school district raised its contribu- tion and the City did not. Ms. Wooten announced that Christine Donahue, Neighborhood Liaison, will be the liaison between community school coordinators and City Parks and Recreation Department staff. e III. RESOLUTION CONCERNING SCHOOL DISTRICT 4-J AND CITY OF EUGENE COOPERATION (memo, resolution distributed) City Manager Micheal Gleason introduced the agenda item. Res. No. 3943--A resolution of cooperation among the Eugene City Council and the Boards of Directors of School Districts 4-J and 52. Mr. Hansen moved, seconded by Ms. Schue, to adopt the resolu- tion. Answering a question from Mr. Hansen, Ms. Wooten said the resolution formal- izes a commitment to work together aggressively. Mr. Gleason said approval of the resolution by the elected officials will make organizational change eas- ier. Roll call vote; the motion passed unanimously, 7:0. Ms. Wooten recessed the meeting of the Eugene City Council and convened a meeting of the Eugene Urban Renewal Agency. - MINUTES--Eugene City Council October 9, 1985 Page 3 IV. IMPROVEMENTS TO GARAGE (memo distributed) e City Manager Micheal Gleason introduced the agenda item. Greg Byrne of the Eugene Development Department gave the staff report. He said the 10th and Oak Overpark Assessment District has been dissolved, the Overpark Fund operations have been balanced, and the management of the Overpark has been changed in the 1 ast year. He said the building needs to be upgraded because it is a public asset which provides parking for the general public in an area of intensive downtown development, because it has not been upgraded since it was built 15 years ago, and because it contains commercial space which should produce enough income to offset the costs of operating the parking areas. Mr. Byrne said commercial activities on the ground floor of a parking garage increase the vitality of an area. Mr. Byrne said the Overpark was not improved previously because the commercial space did not produce enough profit for the private management to upgrade it and the City would not have realized any financial benefits from the improve- ments. The Overpark Fund does not pay the central service allocation which all other City funds pay. Those regular City costs have been forgiven the Overpark Fund. There is no money in the Overpark Fund to pay for capital improvements. Some energy-saving devices were installed and they paid for themselves in less than a year. Mr. Byrne said the Downtown Commission recommended approval of the proposal and indicated less costly methods should be used if possible. e Mr. Byrne introduced Eric Jungjohann, property manager for commercial space in the Eugene Development Department. Answering a question from Mr. Hansen, Mr. Byrne reviewed what would be inclu- ded in each of the proposed improvements. Lease space improvements such as carpeting would be completed only if a tenant had signed a lease for the space. Storefront and ground level renovation would involve painting and other improvements to make the commercial space more competitive. The alley improvements and short-term parking would provide lighting and provide high- turnover parking for the tenants. Improvements to the ground floor entries will make the breezeways more attractive for the businesses which front on them. An exterior stairway would provide visibility for people using the parking decks, but it might cost more than the estimated $50,000 because of structural problems. Parking signs and lights would improve the parking decks. Stairwell and upper entry renovation would improve the areas around the stairs and elevators. The concrete cutting on the parking decks would provide openings in the north and south ends of the building to provide natural 1 i ght. Mr. Byrne emphasized that the proposed costs are only esti- mates. Funds are not available for detailed costs. Replying to questions from Ms. Ehrman and Mr. Miller, Mr. Byrne said an exter- ior elevator for the Overpark would cost about $150,000. There are two sets of restrooms in the Overpark. They are not accessible to disabled people now. One or both of them would become accessible to the disabled when the ground floor entries are improved. ,e MINUTES--Eugene City Council October 9, 1985 Page 4 Responding to questions from Mr. Rutan about options, Mr. Byrne said the Down- e town Commission considered doing only some of the improvements. Members gave projects priorities and the list presented to the council is in that order. Downtown Commissioners decided that all the projects are needed now. Another option would be to lease the commercial space as it is now at reduced rates. Such rates probably would not pay the operating expenses of the building. If the building is upgraded, the commercial space will be leased at market rates. Selling the building has been considered, but it has not been offered for sale. Parking garages may pay operating expenses, but they do not usually pay a mortgage. Mr. Gleason added that a paid parking program might enable a parking garage to pay back a purchase price. Mr. Rutan wondered if the Urban Renewal Agency should pay for improvements to the Overpark with the hope the expenses will be recovered in a tough rental market. Responding, Mr. Byrne said some propective tenants have indicated an interest in renting space, which would increase the annual income of the Over- park by $51,000, but they will only rent the space if the improvements are made. If the building is not upgraded, probably the existing tenants will leave. Answering a question from Ms. Ehrman, Mr. Jungjohann said the most important thing to prospective tenants is an improvement in the image of the Overpark. They want people to be comfortable using the building. The list of projects is in the order of importance to prospective tenants. Replying to Mr. Hansen, Mr. Jungjohann said the tenants who have left the e building rented it at reduced rates and have failed. Only one prospective tenant has been interested in space at a reduced rate of 35 cents a square foot, which would not pay the operating expenses of the building. The pro- posed improvements would pay for themselves over the period of the leases he has been discussing with prospective tenants. The market rate in the area is 75 cents a square foot. The average downtown rent is about 55 cents a square foot. Responding to questions from Ms. Schue, Mr. Byrne said the urban renewal fund has a working balance of $2.9 million. The working balance provides required reserves, loans for developers, and other debt service reserves. The current appropriation for capital improvements would cover about $200,000 of the Over- park improvements. A supplemental budget would have to be approved for about $200,000. Responding to questions from Ms. Wooten, Mr. Byrne said the "cut-off points" considered by the Downtown Commission were after the lease space repair, the storefront renovation, and the alley improvements projects, and then after those projects and the ground floor entries and the exterior stairway pro- jects. The five projects would cost about $192,000. Commenting on the proposed improvements, Ms. Bascom said she does not like to use the Overpark. The proposed improvements need to be approved if the buil- ding is to useful. She did not think any of the projects should be elimina- ted. She thought the outside stairways and the openings in the concrete are especially important. e MINUTES--Eugene City Council October 9, 1985 Page 5 Mr. Rutan wanted the council to consider other options. He would like to know e if the building could be sold. The proposal would result in the City spending a lot of money in a risky plan, he said. He would like to know what improve- ments could be completed for about $200,000. He said there is lots of commer- cial rental space available in the area. Ms. Ehrman said the proposal addresses the marketability of the commercial space and the needs of the parking garage. She said the outside stairways and improvements to the stairwells are important. She did not think the council had to approve all the projects recommended by the Downtown Commission. She suggested the council vote on the projects. She did not think openings in the north and south walls were important. She thought the existing signs and lights were sufficient. Some painting might be necessary. She would approve the first three projects. Mr. Miller did not want to "redesign an Edsel." He would like to know how the proposal relates to the Downtown Plan. He was very interested in making the restrooms accessible to disabled people. Ms. Wooten suggested the council discuss the issue at the dinner session on October 14, 1985. Mr. Hansen asked the staff to meet with at least three active downtown real- tors and present their recommendations to the council. Ms. Bascom will not be present on October 14. She warned the other councilors e about making architectural decisions. She said the structure has been a prob- lem since it was built and improvements to it are important to the success of the redevelopment of the downtown. Ms. Schue would like to know what the Downtown Plan indicates about the need for parking in the Overpark area. She did not think the council needed to approve all the projects. Summarizing, Ms. Wooten said the council will discuss options for the lease or sale of the property, staff preferences for projects which will improve the marketability of the commercial space and the use of the parking areas, recom- mendations from downtown realtors, and the relationship of the proposals to the Downtown Plan. V. ORDINANCE CONCERNING COMPROMISE OF DEBT At Mr. Gleason's suggestion, Ms. Wooten postponed consideration of the ordi- nance to October 14, 1985. VI. ORDINANCE CONCERNING CITY INCOME TAX At Mr. Gleason's suggestion, Ms. Wooten postponed consideration of the ordi- nance to October 14, 1985. e MINUTES--Eugene City Council October 9, 1985 Page 6 Ms. Wooten recessed the meeting of the Eugene Urban Renewal Agency at e 1:13 p.m. and announced that the council would reconvene in the McNutt Room for a work session. WORK SESSION COUNCILORS PRESENT: Richard Hansen, (1:15-1:25 p.m.), Emily Schue, Ruth Bascom, Debra Ehrman, Roger Rutan, and Jeff Miller. COUNCILORS ABSENT: Cynthia Wooten, Freeman Holmer. Mr. Hansen called the work session of the Eugene City Council to order in the McNutt Room. VII. FIRE AND EMERGENCY SERVICES LONG-RANGE PLAN AND REDEPLOYMENT PLAN (memo, background information distributed) . Fire Chief Everett Hall said development of the the Fire and Emergency Ser- vices long-range plan involved people from all the City departments, people from other fire and emergency departments, and a citizen advisory group. The redeployment plan was developed from the long-range plan and involved a study of existing fire stations and the delivery of fire and emergency services. e Mr. Hall introduced Tim Birr, who reviewed the redeployment plan using illus- trations and maps. He discussed firefighters' activities and the equipment used during a fire and the location of existing stations. He said response time after an alarm is received is the most important criterion for locating fire stations. The City's goal is to be able to deliver services within four minutes after an alarm is received. Changing development patterns indicate the need to change the location of fire stations. The redeployment plan is a capital-intensive plan that will relocate fire sta- tions, equipment, and personnel in order to provide good response time. The department now has a minimum shift of 36 firefighters. A call-back system and mutual aid agreements with other agencies provide additional personnel when it is needed. The department provides services to the River Road area under con- tract. The completion of the Chambers Connector will enable a station to be located in the River Road area. The redeployment plan indicates Station 4 will be closed, Station 2 will be moved to the River Road area, Station 6 will be moved to the Coburg/Alicia Road area, and Station 10 will be opened. Mr. Birr discussed the financing of the redeployment plan. He said several City properties can be sold and the purchase prices applied to the capital projects in the redeployment plan. In addition, about $752,000 will be needed. Answering questions from councilors, Mr. Gleason said the redeployment plan will provide fire and emergency services for about 15 years. It will provide e protection for the Willow Creek area. Mr. Hall said additional resources MINUTES--Eugene City Council October 9, 1985 Page 7 might be needed to provide protection for the G1enwood area, parts of Santa e Clara, and an industrial area near the Mah10n Sweet Field. The redeployment plan will take about four years to implement. Be1t1ine Road will provide good access to some parts of the city from the new Station 6. It would not be advisable to implement only part of the redeployment plan. All the elements are necessary to accomplish the aim. Mr. Gleason said the staff would like to present a financial feasibility plan for the redeployment plan to the council. He noted there will be public reac- tion to the proposed closure of some stations. Ms. Ehrman said she would like to discuss the redeployment plan after the November 5 vote. Mr. Miller said the redeployment plan must be implemented. Ms. Schue adjourned the meeting at 1:48 p.m. ;;~ .... Michea1 Gleason Ci ty Manager e (Recorded by Betty Lou Rarick) BLR:vr/1882C . ~.- . MINUTES--Eugene City Council October 9, 1985 Page 8 M E M 0 RAN DUM e October 9, 1985 TO: Mayor and City Council FROM: Planning Department SUBJECT: TALLACKSON/LESHER REQUEST FOR ANNEXATION AND CITY ZONING (AZ 85-2) The two applicants request annexation of two parcels located south of the' existing termination of Spring Boulevard. The Tallackson parcel on the east consists of 3.8 acres and is vacant and covered with Douglas fir and ground vegetation. The Lesher parcel on the west is also vacant and consists of 1.4 acres. Included in the request is the unimproved right-of-way between the two parcels of Spring Boulevard. The requested city zoning is RA Suburban Residential District. On September 24, 1985, the Planning Commission recommended approval of the annexation and zoning of the subject request to the City Council. During the public hearing, concern was expressed regarding the future connection of the unimproved Spring Boulevard between the two parcels with the current Spring Boulevard located directly to the north. Staff indicated that in conjunction with development of these parcels, the unimproved portion would be realigned e to connect with the existing street. This realignment would require rededication of Spring Boulevard across Tax Lot 2800, the Tallackson parcel, and future vacation of the unneeded Spring Boulevard right-of-way. The area of this request is located within the area of the adopted South Hills study and future development of these parcels will require conformance with the standards and density contained in the South Hills study. Council action requested: Recommend annexation to the Lane County Local Government Boundary Commission and approve city zoning to RA Suburban Residential District. Attachment: vicinity map JC:kb/0931S e . c c~ '. Ta llackson/Lesher (A/Z 85-2) Tax Lots 2800, 6500--Assessor1s Map e 18-03-09-3 0 Located southeast.of Spring Boulevard Requests annexation to the City of Eugene and Lane County Metropolitan Service . District and rezoning from County F-2 Forest Land District to City RA Suburban Residential District Appl icants: Stanley Lesher Shirley Tallackson -----------------,----------. I -~ t I ...... I I I I 5.20 Acres I I 0' 300' : I I ~~ F'.~ I I e . I F-2 . e ------------ ---------------- ------ 1-8-5 . M E M 0 RAN DUM e October 10, 1985 TO: Mayor and City Council FROM: Planning Department SUBJECT: ANNEXATION AND ZONE CHANGE FOR GREENHILL TECHNOLOGY PARK SITE On September 24, 1985, the Eugene Planning Commission recommended 5:1 to the City Council annexation/zoning of the above-referenced request. The site involves 139.35 acres incorporatina 13 tax lots in five ownerships. The proposal is being processed as a triple-majority request. ft is located north of West 11th Avenue and east of Greenhill Road. At the extreme corners of the area are located a small, older wood-frame house, service station, and a post and pole business. The site is bounded on the east by the existing city limits, on the south by West 11th Avenue, on the west by Greenhill Road (being the westerly boundary for the urban growth boundary), and the Coos Bay branch of the Southern Pacific Railroad on the north. Responses from utility providers, both public and private, indicate a full range of servic~s are available. The proposal is e consistent with the City of Eugene's criteria for annexation, recognizing that a logical and orderly extension of urban services can be provided to the site and the area will be a logical extension of the city boundary consistent with the r~tro Plan. The applicant requests a zone change from Lane County C-2, Commercial Dis- trict, to C-2, Eugene General Commercial District for Tax lot 602 (existing service station site on the northeast corner of West 11th Avenue and Greenhill Road) and for the balance of the site from County M-2/ICU, Industrial/Commer- cial Urbanization District, to 1-1 Special light Industrial District. The site is not presently designated by the Metropolitan Plan as one of the specific Special light Industrial sites. Therefore, the Planning Commission recommends that the applicant's proposal of 1-1 Special Light Industrial District is not consistent at this time with the existing Metropolitan Area General Plan and is therefore recommending 1-2 Light-Medium Industrial Dis- trict and C-2 General Commercial District for Tax Lot 602. If the change in Metro Plan designation occurs, the City will initiate a change in zone for the industrial portion to 1-1 in the future. The commission also recommends the application of Industrial Sign District designation to the industrial portion and Outlying Commercial to Tax Lot 602, the commercial portion of the proposal. At the Planning Commission public hearing, no opposition to the proposed annexation was presented. The Planning Department is requesting that the City Council pass a resolution recommending annexation to the Lane County Boundary Commission. e ,- ANNEXATION AND ZONE CHANGE FOR GREENHILL TECHNOLOGY PARK SITE October 10, 1985 e Pa ge 2 Information Received After Planning Commission Public Hearing On October 9, 1985, the Planning Department was informed of a recent siting of three rare endangered plants on a portion of the subject property. These sitings were confirmed in the Draft Enviromenta1 Imp'act Statement for 6th/7th Extension Project which was released on October 3, 1985. The siting of rare and endangered plants requires possible protection measures for a natural resource under Statewide Planning Goal 5. As a part of the Metropolitan Plan Mid-Period Review, the Metro Policy Commit- tee ha s forwa rded dra ft p 1 a n amendments on how to a ddress future i denti fi ed natural resources. The sitings associated with the subject annexation and zoning request do represent a new and possible natural resource area. Late last week, the Planning staff met with members of the Metro Planning Team to discuss the implications of this new information on the pending annexation and zone change request. It is the opinion of. the Metro Planning Team and the Planning staff that the annexation can proceed without delay and still reserve options in the future for further study and .possible protection of the rare plant area. The staff is also of the opinion that the, application of City zoning on the parcel can be approved with a minor amendment to the recom- mendation of the Eugene Planning Commission. ' - The staff recommends that the City Council attach the Site Review suffix to the portion of the industrial site which has been identified as the area of the. rare plants. The staff suggests the following specific Site Review con- cern be attached to provide interim protection of the rare plant area until further study can be done. The proposed Site Review concerns are as follows: 1. Due consideration to the preservation of attractive and distinctive historic an~ natural features; and 2., Protection of possible natural resource area prel iminarily identi- fied as containing rare and endangered plants. The purpose of this Site Review criterion is to restrict changes in use until the Goal 5 Evaluation Process has been completed (see Statewide Planning Goal 5) . The proposed final order prepared for council approval reflects the above sta ff recommenda ti on. The staff will also be available at the meeting to further explain the above information. Council Action Requested: 1. Recommend annexation of the subject property to the Lane County Local Government Boundary Commission. 2. Approve rezoning to City C-2, 1-2, and 1-2/SR. e JC:db/0950S . - '\...._.~. . - Greenhill Technology Park (AZ 85-1) Tax Lots 2501, 2600, 2801, and 2802-- Assessor's Map 17-04-29-00 e Tax Lots 200, 300, 400, 500, 600, 601, 602 603, and 700--Assessorls Map 17-04-32-00 Located north of West 11th Avenue, east of Greenhill Road Requests annexation to the City of Eugene and Lane County Metropolitan Wastewater Service District with concurrent applica- tion for city zoning and sign district. Rezoning from Lane County ICU Industria1- Conunerica1 Urbanizing District to 1-1 Special Light Industrial District and C-2 General Commercial District - ---------~------~l .------------------ -------- - .... I 2700 , COUNTY 84.04 Acres I I 0' 250' .... I M2/I CU - I 2300 R. I I , Bra nc h S. P. . , , 1-1 I , . I I I 1:-40 C OU N TY , 1-1 , , , , I , , I I I , I I I I I , I , I I I I I I COUNTY I I e" I I R-A I I t .-.-.-- I t I -------- - - ------ -- ---------. . - .. - - - --------------- T-^_7 I ~ I - e M,E M 0 RAN DUM October 9, 1985 TO: Dave Whitlow, Assistant City Manager FROM: Bert S. Teitzel, City Engineer SUBJECT: REASSESS FOR PUBLIC IMPROVEMENT PROJECT This project was initiated in March, 1984 by a petition represehting 100 percent of property owners. The City Council approved the project by Resolution No. 3849 on April 18, 1984, directing the Public Works Department to prepare plans and specifications and authorizing the costs of the improvement to be assess to properties within the improvement district in - aecordance with applicable sections of the Eugene Code, 1971. Ordinance No. 19266 passed by the Council and approved by the Mayor on July 23, 1985 levied assessments against the parcels of real property described therein for construction of sanitary sewers to serve the area between Centennial Boulevard and 200 feet south of Bardell Street from 3000 feet west of Lindley Lane to Lindley Lane. On the 12th day of August, 1985, by Resolution No. 3939, the Council declared its doubt as to the validity of the assessments levied therein for the improvements in the proposed Eugene's Park Place Subdivision and declared its intent to reassess those properties. RECOMMENDED ACTION BY THE CITY COUNCIL: The first action should be to adopt the findings. The second action should be to approve the ordinances. - ~ ~ . e PROPOSED FINDINGS . 84-117 Sanitary sewer to serveOEugene's Park Place Subdivision (Job #2100) The City Council of the City of Eugene finds that: Ordinance No. 19266 passed by the Council and approved by the Mayor on July 23, 1985 levied assessments against the parcels of real property described therein for construction of sanitary sewers to serve the area between Ceatennial Boulevard and 200 feet south of Bardell Street from 3000 feet west of Lindley Lane to Lindley Lane. On the 12th day of August, 1985, by Resolution No. 3939, the Council declared its doubt as to the validity of the assessments levied therein for the improvements in the proposed Eugene's Park Place Subdivision and declared its intent to reassess those properties. On the 29th day of August, 1985, the approved final plat for Eugene's Park Place Subdivision was filed with Lane County's recording officer. e Monday, the 7th day of October, 1985, at 7:30 p.m. Pacific Daylight Time in the Council Chambers, City Hall, Eugene, Oregon, was established as the date, time and place for a public hearing on the proposed reassessment, and notice thereof was published in the Eugene Register Guard, a nespaper of general circulation within the City for four successive weeks prior to the date of the hearing. Notice of the hearing and the proposed reassessments was also forwarded by mail to the owners and reputed owners of the parcels of real property located whithin Eugene's Park Place Subdivision. No protests, objections, or remonstrances have been filed with the respect to the proposed reassessments. RECOMMENDED ACTION BY THE CITY COUNCIL: The first action should be to adopt the findings. The second action should be to approve the ordinances. - MEMO ATTACHED TO . 1"1' 9 r"r- AGENDA October 3, 1985 ' t..-)- -I; To: Ci ty Council PASSED BY CIT'{ COUNCIL war~~~Wong, Finance Director ON e- From: ORDH~ANCE NO. I I (CITY MGR'S OFnCE) , Subject: Compromise and Settlement of Claims The attached ordinance provides for delegation of expressed authority to the City Manager (Finance Officer) to compromise claims due the City. Staff and the City Attorney have previously assumed that the City Manager, as the City's Business Agent, had authority to compromise claims due the City. Based on the recent issue concerning the Interest on Usegregated Taxes due the City from Lane County, the City Attorney has recommended that this authority be formalized. Further, this expressed authority will reduce the personal liability risk to Councilors. Staff will continue to pursue all claims due the City within a reasonable expenditure of resources, materiality limits and return on effort. You will note that in situations where the claim is supported by a lien against real property, such as in the case of a Bancroft Assessment, we will not compromise the claim since it will ultimately be paid by either collection or foreclosure and subsequent resale. cc: M. Gleason D. Whitlow G. Long , . " D . L ill ey Attachment -- 1 e fnwgw750 ~ - .. .' . "..,.. .' - ORDINANCE NO. e, AN ORDINANCE AUTHORIZING THE CITY FINANCE OFFICER TO MODIFY, COMPROMISE, OR CANCEL CLAIMS DUE THE CITY; ADDING SECTION 2.582 TO THE EUGENE CODE, 1971; AND DECLARING AN EMERGENCY. THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS: Section 1. There is hereby added to the Eugene Code, 1971, a new sec- tion, to be numbered and provide: 2.582 Finance Department ~ Modification, Compromise or Cancellation of Claims. (1 ) As used in this section "claim" shall mean any sum due the city from another and includes but is not limited to taxes, assessments, fines, fees, charges, rents, penalties, payments, amounts due the city on contracts or arising from damages sustained by the city. It shall also in~ clude any interest due thereon. (2) Except as provided in subsections (3) and (4) of this section, it shall be the duty of the finance officer to collect all claims in full and to take all actions necessary in the discretion of the finance officer to collect the claims. . . (3) When in the discretion of the finance officer it appears in e the best' interest of the city or it appears the cost of requiring timely pay~ ment is not justified, the finance officer may extend the time for payment of a claim or the rate of interest thereon, or both. In consideration for such a modification of the claim, the finance officer may require additional security to insure its payment. (4) The finance officer may compromise, settle, or cancel any claim when it is in the city's financial interest and: (a) Where litigation involving the validity of the claim is pending or seriously threatened and there is a grave legal ques~ tion as to the validity of the claim; (b) When, notwithstanding section 2.580, accepting payment in the form of property of equal or greater value than the claim insures payment of the claim that otherwise may be uncollectible or collectible at great expense to the city; (c) Where good and sufficient cause is shown and the amount of the claim is $10 or less; ( d) When any claim has been delinquent for seven or more years and: 1. All reasonable efforts have been made to effect col~ lection, 2. The person against whom the city has a claim cannot be located or is dead, and 3. The claim is wholly uncollectible. (e) When the finance officer determines that the administra~ tion and collection costs involved would exceed the amount that e can reasonably be expected to be recovered; {o~} (f) When the property against which a city lien exists is donated to the city, provided the city makes no payment for the Ordinance;,,: 1 ., ~ , ".,. -:; : - . . . property and the property is not pledged as security to the holders of any evidence of city indebtedness{~}i~ e ill When the adjustment of the claim involves only interest or penalties which were imposed by a discretionary administrative decision. (5) The authority granted the finance officer in this section does not allow the waiver of any sum due the city under this code or state law the payment of which is a precondition to receiving a benefit, service, deci~ sion, permit or privilege issued or to be performed by the city. (6) Any modification, compromise, settlement or cancellation of a claim under this section shall be reviewed by the city attorney, reduced to writing, signed when possible by the parties thereto, and recorded when Qecessary. Such agreements shall provide that in the event the obligor has withheld or misrepresented material facts or committed fraud, a penalty in the amount of the original claim shall be added to the sums then due and the entire amount shall be immediately due and payable to the city, and such other provisions as may be required by the finance officer. Section 2. That the matters contained herein concern the public welfare and in order to insure the orderly implementation thereof, an emergency is hereby declared to exist, and' this Ordinance shall become effective immedi'7- ately upon its passage by the Council and approval by the Mayor. . Passed by the City Council this Approved by the Mayor this day of , 1985 day of , 1985 City Recorder Mayor e Ordinance", 2 , M E M 0 RAN DUM - e October 10, 1985 To: City Council From: warr,;:/' &! ~, Fi nance Di rector Subject: REVISED PERSONAL INCOME TAX ORDINANCE The attached ordinance implementing a City Personal Income Tax reflects changes made by Council at its September 25 meeting and technical language changes. The changes include: 1. Rate -- Change rate to 0.4% during period in which debt service for Airport Terminal Expansion and New,or Expanded Library is outstanding; J'o- and, thereafter, rate changes to 0.25% to support Capital Improvements Program. (3.606) 2. Low Income Exclusion/Credits -- Provides for low income exclusion for taxpayers earning less than $7,500 taxable income and decreasing credits for taxpayers ~arning between $7,501 and $10,000. Cl arifi ed application of exclusion/credits to non-residents. (3.608) 3. Dedication of Revenue, Capital Project Definition -- Included acquisition e of motorized vehicles and automated equipment. (3.612) 4. Employer Withholding -- Changed required withholding to Eugene based employers only. (3.618) As indicated previously, we recommend that formal action on this ordinance take place after receipt of an affirmative vote on the ballot measure that imposes the City Personal Income Tax with the stipulated rate and use limitations. Alternatively, you may take action prior to the election with a provision making the implementation of the ordinance subject to affirmative approval of Ballot Measure #51 by the voters. In addition to the revised Personal Income Tax ordinance, we are enclosing a copy of Resolution #3942, which contains the wording of the ballot neasure. cc: M. Gleason D. Whitlow G. Long Attachments -- 2 fnwgw763 e ORDINANCE NO. e .' AN ORDINANCE CONCERNING A CITY PERSONAL INCOME TAX; ADDING SECTIONS 3.600, 3.601, 3.602, 3.604, 3.606, 3.608, 3.610, 3.612, 3.614, 3.616, 3.618, 3.620, 3.622, 3.62~, 3.626, 3.628, 3.630, 3.632, 3.634, 3.636, 3.638, 3.640, 3.642, 3.644, 3.646, 3.648, 3.650, 3.652, 3.660, 3.662, AND 3.998 TO THE EUGENE CODE, 1971. THE CITY OF EUGENE DOES ORDAIN AS FOllOWS: Sect ion 1. The following caption and sections are hereby added to the Eugene Code, 1971, to read and provide: CITY OF EUGENE PERSONAL INCOME TAX ACT '. 3.600 Short Title. Sections 3.600 to 3.662 and 3.998 of this code shall be known as the city of Eugene Personal Income Tax Act, and may hereinafter be referred to as the "Act". - 3.601 Policy. It is the intent of this Act, insofar as necessary and consistent with this Act, to make the city personal income tax law identical in effect to the provisions of the Oregon personal income tax law for the taxable year for which a return is made, modified as necessary by the city's jurisdiction to tax; to achieve this result by the application of the various provisions of the Oregon personal income tax law in effect for the year in which the return is made; to impose a tax on residents of the city measured by taxable income as hereinafter defined, from wherever derived, and to impose a tax on nonresidents measured by the taxable income of non- residents derived from sources within the city. 3.602 Definitions. Except as specifically defined to the contrary in sections 3.600 to 3.662 of this code, as used in those sections, the following words and phrases mean: Business means an enterprise, activity, profession or under- taking of any nature conducted or ordinarily conducted for gain or livelihood by any taxpayer, including the operation of an unrelat": ed business by a charitable, religious or educational organization. City means the City of Eugene, Oregon. Department m~ans the Oregon Department of Revenue. Director means the Director of the Department of Revenue. Employer means a person who is in such relation to another person that the person may control the work of that other person . and direct the manner in which it is to be done; or an officer or employe of a corporation, or a member or employe of a partnership, Ordinance - 1 - " who as such officer, employe or member is under a duty to perform e the acts required of employers und~r this Act. Individual means a natural person. Nonresident means an individual who -is not a resident of the city. Part-year resident means a taxpayer who changes status during . a taxable year from resident to nonresiqent or from nonresident to resident. Resident means: (a) An individual who is domiciled in the city unless he/she maintains no permanent place of abode in the city, and does maintain a permanent place of abode elsewhere, and spends an aggregate of not more than 30 days of the taxable year in the city; or (b) An individual who is not domiciled in the city but maintains a permanent place of abode in the city and spends an aggregate of more than 200 days of the taxable year in the city is presumed to be a resident unless he/she proves he/she is in the city only for temporary or transitory purposes. Taxable income means "adjusted gross income" as that term is defined in section 62 of the Interna1 Revenue Code of 1954, as amended, and limited by ORS 316.012, as amended from time to time. Taxable year means the period corresponding to the taxpayer's taxable year for federal income tax purposes. Taxpayer means any individual whose income is in whole or in e part subject to tax under this Act. Wages means remuneration for services performed by an employe for an employer, including the cash value of all remunera- tion paid in any medium other than cash, except that "wages" does not include remuneration paid: (a) For active service in the Armed Forces of the United States on which no withholding is required by the Internal Revenue Code. (b) To an employe of a common carrier when such employe is not a resident of the city and regularly performs services both within and without the city. (c) For domestic service in a private home, a local college club or a lrcal chapter of a college fratefnity.or sorority. , ' (d) For casual labor not in the course of ~he employer's trade or business. (e) To an employe whose services to the employer con- sists solely of labor in connection with the planting, culti- vating or harvesting of seasonal agricultural crops, if the total amount paid to such employe is less than $300 annually. ( f) To seamen who are exempt from garnishment, attach- ment or execution under Title 46, United States Code. (g) To persons temporarily employed as emergency forest fire fighters. (h) To employes' trusts exempt from tax under the Internal Revenue Code. e (1) For services performed by a duly ordained, commis- sioned or licensed minister of a church in the exercise of the Ordinance - 2 - ~ e minister1s ministry or by a member of a religious order in the exercise of religious duties required by such order, which duties are not commercial in nature. 3.604 Imposition of Tax. (1) A tax is imposed upon every resident of the city upon and with respect to his/her entire taxable income from sources both within and without the city. (2) Except as set forth in section 3.604(4), a tax is imposed upon every nonresident of the city upon and with respect to his/her entire taxable income derived from every business, trade, or occupation carried on in the city, including income from intangible personal property used by the taxpayer in the conduct of his/her business, trade or occupation within the city; and ,from ownership or disposition of all real or tangible pe~sonal property located in the city, including interest or any amount received in lieu there- .;0- af upon the deferred payments of the selling price received in connection with the sale of such property. The determination of taxable income derived from or connected with a business, trade, or occupation carried on partly in and partly outside this city shall be made by apportionment and allocation under the provisions of section 3.634 and following of this Act. (3) A tax is i~osed upon every part-year resident of the city upon and with respect to his/her entire taxable income from sources both within and without the city for the portipn of the year during which he/she is a resident, and upon and with respect to his/her entire taxable income e subject to nonresident taxation under this Act for the portion of the year during which he/she is a nonresident. The provisions of this Act shall apply as the context may require to accomplish the purpose of this section 3.604 (3). ( 4) If any other ci ty (lIenact i ng ci tyll) shall enact a tax on i n- come, earnings or other form of compensation that would otherwise apply to residents of the city in any manner analogous to that of section 3.604(2), the city may, but is not required to, enter into an agreement with the enacting city providing for reciprocal exemptions, in whole or in part, from such tax, with the result that the tax imposed by section 3.604(2) may be mitigated or eliminated with respect to the residents of the enacting city. ';, (5) 'Subject to the withholding provisions of section 3.618 et g..,g., the tax imposed by this Act shall be levied, collected and paid annu- ally on taxable income, as defined in this Act, after allowing the proper credits against the tax~1n accordance with this Act. The tax imposed by this Act shall apply to taxable years commencing on or after January 1, 1986. (6) The tax imposed by this Act may hereinafter be referred to as the IIcity personal income tax" or the IItaxll. 3.606 Rate of Tax. The tax rate shall be four-tenths of one percent (0.4%) of taxable income. The tax rate shall decrease to not more than one-quarter of one percent (0.25%) after obligations incurred by the city for airport expansion and library expansion or replacement are paid. e 3.608 Credit Against Tax. (1) Except as provided in section 3.608(2), there shall be allowed to each taxpayer (or to each married couple filing a joint return) as a Ordinance - 3 credit against the tax imposed by this Act an amount determined in accordance e with the following schedule: (a) If taxable income is greater than $0 but less than or equal to $7,500, the credit shall be the lesser of the amount of the tax or $30. (b) If taxable income is greater than $7,500 but less than or equal to $8,000, the credit shall be the lesser of the amount of the tax or $24. (c) If taxable income is greater than $8,000 but less than or equal to $9,000, the credit shall be the lesser of the amount of the tax or $16. (d) If taxable income is greater than $9,000 but less than or equal to $10,000, the credit shall be the lesser of the amount of the tax or $8. (e) If taxable income is greater than $10,000, the'credit shall be $0. (2) In the case of nonresident taxpayers having aggregate taxable income derived from all sources in excess of $7,500, the credit allowed by section 3.608(1) shall be determined by multiplying the credit amount other- wise allowable under section 3.608(1) by a fraction, (i) the numerator of which shall be the amount of the taxpayer1s taxable income derived from sources within the city; and (ii) the denominator of which ~hal1 be the amount of the taxpayer1s taxable income derived from all sources. The "credit amount otherwise allowable under section 3.608(1)11 shall be deter- mined by reference to the amount of taxable income derived from sources with- e in the city. 3.610 Taxable Income of Nonresident From City Sources. (1) Items of income, gain, loss and deduction comprising taxable income of a nonresident derived from or connected with sources within this city are those items attributable to: (a) The ownership or disposition of any interest in real or tangible personal property in this city; and (b) A business, trade, or occupation carried on in this city. (2) Income from intangible personal property, including annuities, dividends, interest and gains from the disposition of intangible personal property, constitutes income derived from sources within this city only to the extent that such income is from property employed in a business, trade, or occupation carried on in this city. (3) Deductions with respect to capital losses, net long-term capital gains, and net operating losses shall be based solely on income, gains, losses and deductions derived from or connected with sources in this city, under regulations to be prescribed by the department. (4) Notwithstanding section 3.610(2), the distributed and undis- tributed taxable income of an electing small business corporation for federal income tax purposes derived from or connected with sources in this city does constitute income derived from sources within this city for a nonresident individual who is a shareholder of such a corporation, and a net operating loss of such corporation derived from or connected with sources in this city does constitute a loss or deduction connected with sources in this city for e such a nonresident individual. Ordinance - 4 . - 3.612 Dedication of Revenue. Revenue to the city derived from imposi- tion of the tax under this Act shall be applied to administration of this Act, to any obligations incurred by the city for airport expansion, to any obligations incurred by the city for library expansion or replacement, and to capital expenditures of the city, which shall include, but not be limited to, discrete capital improvements and public facilities, motorized vehicles, automated equipment, and continuous capital expenditures pursuant tO,the capital improvements program of the city,'as well as related costs of project administration. The revenue shall not be applied to operating expenses of the city. 3.614 Department to Administer Tax. The city may enter into any agree- ment authorized by state law with the department to administer and enforce the city personal income tax. The dep,artment may be authorized therein to exercise all supervisory and administrative powers with regard to the enforcement, collection and administration of the tax purs~ant to the contract, including but not limited to entering closing agreements, deter- mining and assessing deficiencies, waiving interest and penalties, imposing and releasing liens, and making refunds. 3.616 Income Tax Paid In Another City. Every individual taxpayer who resides in the ci1;.y, but"who receives taxable, income from sources outside the city, if it be made to appear he/she has paid an income tax on e said income in and to ~nother city, shall be allowed a credit against the tax imposed by this Act in the amount paid by him/her or in his/her behalf in the other city. This credit shall 'be applied only to the extent of the tax imposed by this Act by reason of the individual IS receipt of the income taxed in the other city. 3.618 Withholding of Tax Required. (1) Every employer within the city shall at the time of the pay- ment of wages to any employe who is also a taxpayer, deduct and retain from the total amount of the wages an amount determined, at the employer's elec- tion, either: (a) By a "percentage method" withholding table, or (b) By a "wage bracketll withholding table, prepared and furnished under the rules and regulations of the department. (2) Every employer who deducts and retains any amount under sec- tion 3.618(1) shall hold the same in trust for the city and for the payment thereof to the department in the manner and at the time provided in section 3.620. (3) The amounts deducted from the wages of an employe during any calendar year shall be considered to be in part payment of the city personal income tax on such employe's income for his/her taxable year which begins within such calendar year, and the return made by the employer pursuant to this Act shall be accepted by the department as evidence in favor of the employe of the amounts so deducted from his/her wages. 'e 3.620 Payment to Department by Employer. Ordinance - 5 . ( 1) Except as may be speci ally provjded by the department for the ~ first six months of 1986, each employer shall pay over to the department within the time that each employer is required to pay over taxes withheld for state income tax purposes for any period the amount required to be with- held by this Act for the same period. (2) With each payment made to the department, every employer shall deliver to the department a return in the form prescribed by the department showing the total amount of wages, salaries, bonuses or other compensation paid to his/her employes, the amount deducted therefrom in accordance with this Act, and such other information as the department may require. The employer is charged with the duty of advising the employe of the amount of moneys withheld, in accordance with such regulations as the department may prescribe, using printed forms furnished or approved by the department for that purpose. At any time the employer fails to remit any amount withheld, the department may enforce collection in accordance with state law. Fa il ure to file the return required by this section when due without reasonable excuse subjects the employer to the penalty described in section 3.998(1) ( 3) In addition to the returns required in section 3.620(2), the employer shall make an annual return to the department on forms provided or approved by it before February 16 of the year following that for which the report is made, summarizing the total compensation paid and the tax withheld for each employe during the calendar year. Failure to file the annual return without reasonable excuse on or before the 30th day after notice has been given to the employer of his/her failure subjects the employer to the penalty described in section 3.998(1). e 3.622 Refunds to Employes. (1) If the total amount deducted under the withholding requirement of this Act exceeds the amount of tax on the employe's taxable income as com- puted under this Act, or if the employe1s income or portion thereof is not taxable under this Act, the department, after examining the annual return filed by the employe pursuant to section 3.624 and following of this Act, shall refund the amount of the excess deducted. No refund shall be made to an employe who fails to file an original return within three years after the du~ date of the return in respect of which the tax withheld might have been refunded. If the excess tax as deducted is less than $1, no refund shall be made unless sp::';~H'ically requested by the taxpayer at the time such return is file'd~ In no eV2nt shall the eXCESS be allowed as a credit against any tax on a return filed for a year subsequent to the year during which the excess was withheld. (2) If a taxpayer who is entitled to a refund under this section dies, the department may issue a draft for payment of the refund under the terms and conditions set out in ORS 293.490 to 293.500, and exercise the same powers, subject to the same restrictions, pursuant to which the State Treasurer is authorized to pay the amounts of warrants, checks or orders under those statutes. 3.624 Persons Required to Make Returns. (1) An income tax return with respect to the tax imposed by this e Act shall be made by every taxpayer. A husband and wife may make a joint return with respect to the tax imposed by this Act if they are permitted to file a joint return under the Oregon personal income tax law. Ordinance - 6 e (2) An income tax return for an individual who is unable to make a return by reason of mi nori ty or other di sa'bil i ty sha 11 be made and fil ed by his/her duly authorized agent, his/her gua~dian, conservator, fiduciary or other person charged with the care of his/her person or property other than a receiver in possession of only a part of the individual's property. (3) An income tax return, in the name of the decedent, for any deceased individual shall be made and filed by his/her executor, adminis- trator or other person charged with the care of his/her property, and this duty extends to any unfiled return prior to decedent's death. The tax sha 11 be levied upon and collected from his/her estate. A final return of a dece- dent shall be due when it would have been due if the decedent had not died. I';' 3.626 Time and Place for Filing Returns and Paying Tax. (1) The income tax return required by this Act shall be filed with the department on or before the 15th day of the fourth month following the close of the taxpayer's taxable year, except that the final return of a decedent shall be filed at any time following the decedent's death, to and including the fifteenth day of the fourth month after expiration of the decede~t'sregular tax year. An individual requ{red to make and file a re- turn under this Act, without assessment, notice or demand, shall pay any tax due thereon to the department on or before the date fixed for filing such return (determined without regard to any extension of time for filing the return). (2) The tax may be paid with uncertified check during such time e and under such regulations as the department shall prescribe, but if a check so received is not paid by the bank on which it is drawn the taxpayer by whom such check is tendered remains liable for the payment of the tax and for all legal penalties the same as if the check had not been tendered. (3) A return fil ed before the last day prescri bed by 1 aw for the filing thereof is considered as filed on the last day. ORS 305.820 applies to returns filed by mail and to due dates that fall on a Saturday, Sunday or legal holiday. 3.628 Effect of Failure to File Return; Pel'lalty Sum; Interest. , (1) If a taxpayer: .. -, (a) fails to fil e a retuy'n of 'j ncome at the t im:: i':,equi,red by ; or under. this Act. or . . . (b) fails to pay the tax at the time the tax be~omes du~, ~ ~ unless it is shown that such failure is due to reasonable cause and not due, to willful neglect, there shall be added to the amount of tax required to be shown as tax on the return a penalty of five percent of the amount of such tax if the failure is not for more than one month, with an additional five percent for each additional month or fraction thereof during which failure continues, not exceeding 25 percent of the aggregate. In addition, the tax- payer shall be subject to the penalty described in section 3.998(2). (2) Interest shall accrue and be collected on the unpaid tax at the rate of eighteen percent per annum or at the adjusted interest rate determined from time to time by the director pursuant to ORS Chapter 305, e whichever shall be greater. (3) For the purposes of section 3.628(1), the amount of tax re- quired to be shown on the return shall be reduced by the amount of any part of the tax that is paid on or before the date prescribed for payment of the Ordinance - 7 - tax and by the amount of any credit against the tax which may be properly ~ claimed upon the return. 3.630 Adjustment of Returns. Whenever for any reason the income tax liability of any taxpayer to the State of Oregon for any particular tax yea~ has been changed and the change would, if originally applied on the return for that year, have affected the tax payable to the city, or whenever for any other reason the liability of any taxpayer to the city under this Act for any particular taxable year has been changed, a report of the change shall be made to the department and payment of any additional tax liability, or refund of any overpayment, by reason thereof shall be made within 90 days of the time in which the adjusted tax is determined. 3.632 Form of Returns. ~ (1) Returns shall be in such form as the department may, from time to time, prescribe. There shall be annexed to the return a statement veri- fied by a written declaration of the taxpayer making the return to the effect that the statements contained therein are true. (2) The department shall prepare blank forms for the returns and distribute them to taxpay~s throughout the city. Failure to receive or secure a form shall not relieve a taxpayer from the obligation of making any return required by law. 3.634 Division of Income for Tax Purposes. Any nonresident taxpayer hav- e ing income only a portion of which is taxable under this Act, other than income from activity as a public utility, shall allocate and apportion his/her income as provided in sections 3.634 to 3.650. 3.636 Definitions for Sections 3.634 to 3.652. Definitions for sections 3.634 to 3.652 unless the context otherwise requires: Business income means income arising from transactions and activity in the regular course of the taxpayer1s business and in- cludes income from tangible and intangible property if the acqui- sition, managEment, use or rental, and disposition of the property constitute integral parts of the.taxpayer1s regular business operatio~s. Commercial domicile means the principal place from which the business of the taxpayer is directed or managed. Compensation means wages, salaries, commissions and any other form of remuneration paid to employes for personal service. Nonbusiness income means all income other than business income. Public utility means any business entity whose principal business is ownership and operation for public use of any plant, equipment, property, franchise, or license for the transmission of communications, transportation of goods or persons, or the production, storage, transmission, sale, delivery, or furnishing e of electricity, water, steam, oil, oil products or gas. Sales means all gross receipts of the taxpayer not allocated Ordinance - 8 - e under sections 3.638 to 6.646. 3.638 Certain Nonbusiness Income to be Allocated. Rents and royalties from real or tangible personal property, capital gains, interest, dividends, or patent or copyright royalties, to the extent that they consti- tute nonbusiness income, shall be allocated as provided in sections 3.640 to 3.646. 3.640 Allocation to this City of Net Rents and Royalties. (1) Net rents and royalties from real property located in this city are allocable to this city. (2) Net rents and royalties from tangible personal property are allocable to this city if and to the extent that the property is utilized in this city. (3) The extent of utilization of tangible personal property in ./'0- this city is determined by multiplying the rents and royalties by a frac- tion, the numerator of which is the number of days of physical location of the property in the city during the rental or royalty period in the taxable year and the denominator of which is the number of days of physical loca- tion of the property ever~here during all rental or royalty periods in the taxable year. If the physical location of the property during the rental or royalty period is unknown or unascertainable by the taxpayer, tangible persona 1 property is utili zed in the city in whi ch the property was located e at the time the rental or royalty payer obtained possession. 3.642 Allocation to this City of Capital Gains and Losses. (1) Capital gains and losses from sales of real property located in this city are allocable to this city. (2) Capital gains and losses from sales of tangible personal property are all ocab 1 e to thi s ci ty if: (a) the property had a si~us in this city at the time of the sa 1 e, or , , ' , (b) the taxpayer1s commercial domicile is in thiS city' and" f; .;,~ the taxpayer is not subject to an income or earnings tax:lev;~d by, the c,ity or county in whi ch the property had a, situs. , '~p ': ... .,'" , " (3) Capital gains and losses from sales of intangible pe+s'qn.ai .. ,..''::f:;'" proper;ty employe<;Lin taxpayer1s business, trade, or occupationc;a:r,ried'on ,,l'~c.,:,,,,"" within the city are allocable to this city if the taxpayer1s conimercial';'1,'" domicile is in this city. 3.644 Allocation to this City of Interest and Dividends. Interest and dividends derived from property employed in taxpayer's business, trade, or occupation carried on within the city are allocable to this city if the taxpayer1s commercial domicile is in this city. e 3.646 Allocation to this City of Patent and Copyright Royalties. (1) Patent and copyright royalties are allocable to this city: (a) if and to the extent that the patent or copyright is Ordinance - 9 .. utilized by the payer in this city, or . (b) if and to the extent that, the patent or copyright is utilized by the payer in a city or county in which the taxpayer is not subject to a local income or earnings tax, and the tax- payer's commercial domicile is in this city. (2) A patent is utilized in a city to the extent that it is em- ployed in production, fabrication, manufacturing, or other processing in that city or to the extent that a patented product is produced in that city, even though sold or distributed outside of that city. (3) A copyright is utilized in a city ,to the extent that print- ing or other publication originates in that city. 3.648 Formula for Apportionment to this City of Business Income. All business income of a nonresident taxpayer shall be apportioned to this city by multiplying the income by a fraction, the numerator of which is the property factor plus the payroll factor plus the sales factor, and the denominator of which is three. (a) Determination of "property factor": (1) The property factor is a fraction, the numerator of which is the average value of the taxpayer's real and tangi- ble personal property owned or rented and used in this city during the tax period and the denominator of which is the average value of all the taxpayer's real and tangible person- al property owned or rented and used, regardless of location, - during the tax period. (2) Property owned by the taxpayer is valued at its original cost. Property rented by the taxpayer is valued at eight times the net annual rental rate. Net annual rental rate is the annual rental rate paid by the taxpayer less any annual rental rate received by the taxpayer from sub-rentals. (3) The average value of property shall be determined by averaging the values at the beginning and ending of the tax period, but the department may require the averaging of monthly values during the tax period if reasonably required to properly reflect the average value of the taxpayer1s property. .. ; (b) [)etel~mi nat i on of "payro 11 factor-II: (1) The payroll factor is n fraction, the numerat0r of which is the total amount paid in this city during the tax period by the taxpayer for compensation, and the denominator of which is the total compensation paid everywhere by the taxpayer during the tax period. (2) Compensation is paid in this city if: a. The recipient1s service ;s performed entirely within the city; or b. The recipient's service is performed both within and without the city, but the service performed without the city is incidental to the recipient1s service within the city; or c. Some of the service is performed in the city and e 1. the base of operations or, if there is no base of operations, the place from which the service Ordinance - 10 - is directed or controlled is in the city, or 2. the base of,operations or the place from which the service is"~irected or controlled is not in any city in which some "part of the service is performed, but the recipient's residence is in this city. (c) Determination of "sales factor": (1) The sales factor is a fraction, the numerator of which is the total sales of the taxpayer in this city during the tax period, and. the denominator of which is the total sales of the taxpayer everywhere during the tax period. (2) Sales of tangible personal property are in this city if: a. The property is delivered or shipped to a pur- chaser within this city regardless of the f.o.b. point or other conditions of the sale; or b. The property is shipped from an office, store, warehouse, factory, or other place of storage in this city and 1. the purchaser is the United States Govern- ment, or 2. the taxpayer is not subject to an income or earnings tax by the city or county of the pur- chaser. (3) Sales, other than sales of tangible personal prop- -- erty, are in this ci~y if: a. the income-producing activity is performed in this ci ty or b. the income-producing activity is performed both in and outside this city and a greater proportion of the income producing activity is performed in this city than in any other city, based on costs of performance. 3.650 Additional Methods to Determine Extent of Business Activity in this City. If the allocation and apportionment provisions of se~; , tions 3.634,to 3~648 do not fairly represent the extent of the taxpaye~ls business activity incthis city, the taxpayer may petition for,and the depart~ ,.':.:'i' ment may permit, or the department mayrequir"e, in respect to all or any part of the taxpayer1s business activity, if reasonable: (a) Separate accounting; (b) The exclusion of anyone or more of the factors; (c) The inclusion of one or more additional factors which will fairly represent the taxpayer1s business activity. in this ci ty; or (d) The employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer's income. 3.652 Allocation of Income of a Public Utility From Business Within and e Without the City. (1) If a taxpayer has income from business activity as a public utility which is taxable both within and without this city, the determina- tion of taxable income shall be based upon the business activity within the Ordi nance - 11 , . - e city, and the department shall have power to permit or require either the segregated method of reporting or the apportionment method of reporting, under rules and regulations adopted by the department, so as fairly and accurately to reflect the taxable income of the business done within the city. (2) The provisions of section 3.652(1) dealing with the apportion- ment of income earned from sources both within and without the city are de- signed to allocate to the city on a fair and equitable basis a proportion of such income earned from sources both within and without the city. Any tax- payer may submit an alternative basis of apportionment with respect to his/ her own income and explain that basis in full in his/her return. If approved by the depar~ment that method will be accepted as the basis of allocation. 3.660 Procedural Matters. The provisions of ORS chapters 305, 314 and ~ 316 (as amended from time to time), including but not limited to provisions pertaining to audit and examination of reports and returns, determination of deficiencies, interest, penalties, assessments, claims for refund, conferences, appeals to the director and appeals to the Oregon Tax Court, and the procedures relating thereto, shall apply to the determina- tion of taxes, penalties stJd interest under this Act, except where this Act provides, or the context requires, otherwise. A taxpayer may utilize , the procedure respecting appeals to the small claims division of the Oregon e Tax Court as provided in ORS Chapter 305. 3.662 Partial Invalidity. If any section of this Act or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Act, or the application of such section to persons or circumstances other than those to which it is held invalid or unenforceable, shall not be affected thereby, and each sec- tion of this Act shall be valid and be enforced to the fullest extent per- mitted by law. - 3.998 Personal Income Tax Act - Penalties. (1) Any employer that fails to file the returns required by sec- tion 3,620(2) and section 3.620(3) when due shall be punished by fine of not to exceed $1,000, or confinement in jail not to exceed one year, or both fine and imprisonment. (2) In addition to penalties and interest imposed pursuant to section 3.628, any taxpayer that fails to file the return required by sec- tion 3.626 when due shall be punished by fine not to exceed $1,000, or con- finement in jail not to exceed one year, or both fine and imprisonment. (3) The penalties provided herein shall be in addition to, and not in lieu of, any assessments, penalties or enforcement actions, civil or criminal, available to or undertaken by the department on behalf of the city in administering the tax imposed by this Act. e Passed by the City Council this Approved by the Mayor this ____ day of October, 1985 ---- day of October, 1985 Ordinance - 12 ~ Ci ty Recorder Mayor e .;.. ~ ,e " 'r. " ' .~+. , .. e Ordinance - 13 . ,< . . . . e RESOLUTION NO. 3942 A RESOLUTION REFERRING A CHARTER AMENDMENT CREATING INCOME TAX, LIMITING RATE AND DEDICATING REVENUES, TO THE ELECTORS OF THE CITY OF EUGENE. The City Council of the City of Eugene finds that: The City Council is considering a City of Eugene Personal Income Tax Act which contains a limit on the tax rate and dedicates the revenue expenditure thereof. The Council has determined that a Charter Amendment creating a city income tax, limiting the tax rate, and dedicating revenues should be referred to the electors of the City. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE, - a Municipal Corporation of the State of Oregon, that the Measure hereinafter set forth be submitted to the legal voters of the City of Eugene, Oregon, at a special election to be held on Tuesday, November 5, 1985: MEASURE SUBMITTED TO THE VOTERS BY THE CITY COUNCIL Measure No. 51 Charter Amendment creating income tax, limiting rates and dedicating revenues. Should there be a City income tax for capital expenditures initially limited to 4/10% of taxable income and later 1/4%? Charter Amendment creates city income tax. Limits tax rate to 4/10% of taxable income. Limits tax rate to 1/4% of taxable income when final payment for city airport and library improvemen ts has been made. Dedicates income tax revenue solely to improvements to the city airport and library, e other city capital expenditures and administration of the tax. THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS: 1 - Resolution '''!-. r . . . 't - BE IT ENACTED BY THE ELECTORS OF THE CITY OF EUGENE, e that the Charter of the City of Eugene is hereby amended to add the following provision thereto: There shall be a city tax on the income of residents of the city from whatever source derived, and on the income of nonresidents of the city derived from sources within the city. The tax shall not exceed the rate of four-tenths of one percent of taxable income. When all financial obligations incurred prior to January 1, 1996 for capital improvements at the Municipal Library and Airport have been paid, the rate of City income tax shall not exceed 1/4% of taxable income. Revenue derived from the imposition of a city income tax is hereby dedicated exclusively to improvements to the municipal airport and library, other city capital expenditures and to administration of the tax. This Measure shall become effective upon its approval by the electors of the City of Eugene. The.foregoing Resolution adopted the 25th day of September, 1985. '. 7Y\'UJ~'~ R. (JJ) :7J~~ ' e D t A st \" Ci ty Recorder epu y s . : -e 2 - Resolution '.. M f M 0 RAN DUM . October 11, 1985 TO: Mayor and City Council FROM: Mike Gleason, City Manager SUBJECT: ROOM TAX REVENUES In November 1984, the City Council approved a re-a110cation of room tax funds to transfer money from the five major arts organizations to the Hu1t Center over a fi ve-yea r peri od. The plan was recommended by the Hu1t Center Task Force. The plan worked by establishing a base in year one, with each suc- . ceeding year having 20 percent less allocated to the arts organizations and having the increment directed to the Hult Center. The a 11 oca ti on plan you adopted in 1984 is attached to this memo. The base of $68,000 represents 15 percent of net room tax revenues estimated in the 1984-85 budget (net revenues are determined after deducting admini- strative expenses and contribution to working capital). The fi ve arts organizations have asked that the base emanate from actual gross revenues collected in the 1984-85 year. . Using the latter approach, the allocation plan - would result in slightly more dollars being directed toward the major arts organi za ti ons. Last November you indicated you ~mnted to be very sensitive to the financial needs of the major arts organizations. It is for that reason that we are bringing back a slight amendment to the resolution which would direct addi- tional dollars to the arts cOMpanies. If you have any questions on this item, please contact Assistant City Manager Dave Whitlow (687-5010). MG: ky /0893 S e ; RESOLUTION NO. e A RESOLUTION CONCERNING ROOR TAX FUNDS: AMENDING SECTION 4 OF RESOLUTION NO. 3886 ADOPTED BY THE COUNCIL ON NOVEMBER 19, 1984. The City Council of the City of Eugene finds that: On November 19, 1984 the Council adopted new guidelines for the allocation of room tax funds, as evidenced by Resolution No. 3886. Section 4 of Resolution No. 3886 established the amount of the annual allocation of transient room tax funds to be used for local professional performing arts companies unless those allocations ,were .subsequently modified by the Council. The Council has . determined that the allocations should be adjusted as hereinafter set forth., .- Now, therefore, based the above findings, the Council upon finds that it is in the public interest to adjust the allocations set forth in Section 4 of Resolution No. 3886. 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. Section 4 of Resolution No. 3755 adopted by the Council on November 19, 1984 is amended to read and provide: Section 4. Allocation of Annual Net Revenue of Transient Room Tax Funds to be Used for Local Professional Performing Arts Companies. In order to assist professional performing arts companies which are located in the City of Eugene, and to phase out in an orderly manner the ~ - 1 - Resolution "" City's use of the annual net revenue of transient room tax funds for services from professional performing e arts companies which are located in the City of Eugene, the following allocation shall be used unless subsequently modified by the Council: Room Tax Allocation Fiscal Year to Arts Organizations 1984-85 $68,000 1985-86 $57,280 1986-87 $42,960 1987-88 $28,640 1988-89 $14,320 1989-90 $ -0- Section 2. Except as herein specifically amended, all other provisions of Resolution No. 3886 remain in full force and effect. . The foregoing Resolution adopted the day of , 1985. -- City Record~r - 2 - Resolution