HomeMy WebLinkAbout11/25/1985 Meeting (2)
M I NUT E S
_- Eugene City Council
City Council Chamber
November 25, 1985
7:30 p.m.
COUNCILORS PRESENT: Richard Hansen, Ruth Bascom, Debra Ehrman, Freeman
Holmer, Jeff Miller, Roger Rutan, Emily Schue.
ABSENT: Mayor Brian Obie, Cynthia Wooten.
The regular meeting of the City Council of the City of Eugene, Oregon, was
called to order by Council Vice President Richard Hansen in the absence of His
Honor Mayor Brian B. Obie and Council President Wooten.
I. PUBLIC FORUM
Mr. Hansen gave an opportunity to those who wished to address the council
about subjects not scheduled for council consideration. He asked speakers to
complete request forms and said the policy was to receive testimony but to
take no action.
e A. Beyond War Movement
Rick and Stephanie Cleveland, 1165 Debrick, Eugene, representing the Beyond
War movement, said the goal of the organization was to change human thinking
about war worldwide. Mr. Cleveland read a 1946 quote from Albert Einstein:
"The unleashed power of the atom has changed everything, save our modes of
thinking, and we thus drift toward unparalleled catastrophe. II To illustrate
the 50,000 nuclear weapons now existing in the world, the Clevelands dropped
BBs (representing one megaton of explosive power each) into a metal garbage
can. They first dropped the amount represented by all of the explosive power
used by the Allies in WWII, including the bombings of Hiroshima and Nagasaki,
which lasted about one second. They followed that by the amount believed to
be sufficient to cause a "nuclear winter," or less than one percent of the
world's current arsenal, which lasted about four seconds. The Clevelands then
dropped the remaining BBs, representing the balance of the world's nuclear
arsenal, which continued for about 30 seconds.
Mr. Cleveland said Eugene ranked 151st in population out of 18,000 American
cities. He said in the event of catastrophe, the food supply for the area
would only last a few days. He urged a local solution, noting a broadcast of
the 1985 Beyond War award on December 14 at 8:30 a.m. on KOZY-TV, Channel 4.
He said the award would be presented to the Delhi Declaration of principles
signed by the six presidents of Argentina, Tanzania, Greece, Mexico, Sweden,
and India, who had issued a historic call for a response from people and
governments to end war on earth. Mr. Cleveland also said the award was given
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MINUTES--Eugene City Council November 25, 1985 Page 1
to honor the person, group, or nation making the greatest contribution toward
-- efforts to build a world beyond war, adding that the 1985 award would be a
IIg10bal space bridgell linking five continents live, two-way by satellite. He
said the Delhi Declaration of principles was included in the response
statement that had been distributed to councilors and was signed by
Mayor Obi e. He urged those present to join in signing the response statement,
noting that County Administrator James Johnson and four County Commissioners
had recently signed, and appearances also had been made at the School District
4-J Board of Directors, Lane Community College Board of Directors, and
Springfield City Council. He also called upon 4-J Superintendent
Dr. Margaret Nichols and University of Oregon President Dr. Paul Olum to speak
in support of the effort.
Dr. Nichols said one issue she dealt with as an educator was children's fear
of nuclear war, citing evidence that 75 percent of 1,100 children surveyed
believed they would die in a nuclear war. She also said studies showed
nuclear war ranked second only to death of a parent among adolescent fears,
adding that the PTA had begun implementing programs to deal with these fears.
Dr. Nichols said another concern was the expense of nuclear armaments, which
the current Administration had proposed as $77.5 billion in 1986. She said
that sum would provide the current year's Eugene School District budget for
1 ,100 years. She noted that the US infant mortality rate was higher than that
of 15 other developed countries, and 11,000 children die annually in the
United States from poverty-related causes. She said one in five children--and
one in two black chi1dren--live in poverty in the United States, and she read
e a 1953 quote from Dwight Eisenhower: "Every gun that is made, every warshi p
launched, every rocket fired signifies in the final sense a theft from those
who hunger and are not fed, those who are cold and not clothed. Thi s worl d in
arms is not spending money alone; it is spending the sweat of its laborers,
the genius of its scientists, and the hopes of its children. II
Dr. Olum urged councilors to sign the initiative. He said the United States
and the Soviet Union each had about 25,000 nuclear warheads, 1,000 of which
would be sufficient to destroy every city of consequence in the Soviet Union,
and 2,000 of which would likely trigger a nuclear winter that would end all
life on earth. He said continuing to build nuclear arms when the superpowers
could destroy each other 15 times over would be insanity and would increase
the likelihood of nuclear war. He said it was time the tiniest chances were
taken for peace, instead of the most enormous chances being taken to further a
nuclear arms race.
Mr. Hansen said the statement would be forwarded to councilors for any who
wished to sign.
B. Mayor Welcomes Scout Group and U of 0 Students
Mr. Hansen welcomed visiting members of Scout Troop 12 from O'Hara School and
students of a University of Oregon journalism class.
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MINUTES--Eugene City Council November 25, 1985 Page 2
II. PUBLIC HEARINGS
e A. Planning Commission's Recommendation on the Draft Environmental
Impact Statement for the 6th/7th Extension Project
(memo, background distributed)
City Manager Mike Gleason introduced the item. Dave Reinhard of the Public
Works Department presented the staff report. He said proposed alternate
routes 1 and 2 were shown in the wall display.
He described the Planning Commission's recommendation for Alternate 1, saying
the State would make the final decision, and the City's role would be
advisory. He said the Planning Commission recommended shifting the roadway
north as outlined in part 2 of the memo because of landowners' requests for a
more logical division of property. Mr. Reinhard described the proposal for an
elevated roadway at the eastern end of the project between the area of Conger
and Highway 99 in order to preserve local circulation at grade and eliminate
interference with railroad spurs. He said part 4, dealing with wetland
mitigation, had been arrived at based on testimony that those were the most
significant areas. Mr. Reinhard also described part 5, calling for
consideration of the Amazon-Fern Ridge bike path when the final design work is
done.
He described the process for council consideration, including tonight's
hearing and consideration for action at the December 4 meeting. He said the
State Department of Transportation would hold a hearing on December 18 and
e would issue a recommendation and analysis of testimony at approximately the
end of January, when it would return to the City Council.
Mr. Hansen opened the public hearing.
Jeri Cohen, 825 East Park, Eugene, representing the Willamette Valley Company
located at 660 McKinley Street, said the company was concerned about the east
end of the proposed project, where Alternate 1 would bisect company property.
She submitted written comments and asked that the council seriously consider
retaining the 5th/7th one-way grid system as a feasible alternative to either
of the routes being proposed. She said the recommended route would make
continuation of business impossible at the present location, and would have
financial impacts on Eugene and Lane County.
Jim Saul, 111 West 7th Avenue, Eugene, representing Bradley Trust, owners of
63 acres extending from Danebo to Terry Street at the western end of the
project, said the proposed route would affect Bradley Trust, and they strongly
supported the recommendation submitted by the Planning Commission and urged
that the council proceed with the project. He said they recognized that
changes might be necessary, but were convinced that the facility was of
critical importance to the entire city and to the west Eugene area.
Peter lafferty, employed at 310 Seneca Road, Eugene, spoke in opposition to
all three alternatives. He said Eugene eventually would need a better
east-west corridor, such as 1-105, which was already 60 percent in place.
Mr. Lafferty said 6th and 7th would not carry the amount of traffic that would
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MINUTES--Eugene City Council November 25, 1985 Page 3
someday be necessary. He added that West 11th could be connected via Garfield
e to 6th and 7th and could handle traffic if 1-105 were extended west to
Greenhill Road. He said he had spoken with representatives of the State, who
seemed to favor the idea, but the Transplan contained no provision for an
east-west freeway connector. He also said several property owners had asked
that alignment be moved north, and a good alternative might be to go farther
north, near the railroad overpass, and to proceed down the tracks. He said
access automatically would be limited because of fewer railroad crossings in
that area. Mr. Lafferty noted the expense of elevating the eastern end of
6th/7th. He said he thought it would be a disservice to the industrial area
to cause poor traffic circulation by putting a large street down the middle
when land along the railroad track could easily be used as a buffer for
residential areas to the north.
He said staff felt his proposed route was too far north, although it was only
one-half mile from the east end of the present alignment and was in the same
place on the west end. Mr. Lafferty said he had noted cars going from the 1-5
Coburg interchange to 1-105 and into Eugene, which showed that people would go
out of their way to use a good road.
He said the proposed alternatives would be short-lived, at high cost of
condemnation and of future work. Mr. Lafferty also said the T-2000 Plan
called for increasing 1-5 to six lanes in order to handle local traffic, and a
freeway system should be looked at for the greater east-west distance. He
also suggested leaving a section open for later connection to the Chambers
connector.
e Gary Stiltner, of Lane Plywood, 65 North Bertelson Road, said Alternate 1 ran
through the southeast corner of the property, and the right-of-way for the
extension would take about 3.5 acres. He said Lane Plywood also would have to
be compensated for other damages, including six additional acres now used for
storage that would become inaccessible, a log scaling pad, 200 feet by 450
feet and including a base of several feet of rock and 12 inches of asphalt
overlay, that would be reduced and require relocation. He added that
operation of log-handling equipment was limited because of Bonneville Power
lines in the area, so choices of location for the scaling pad were very
limited. Mr. Stiltner also said a drainage and recycle system for watering
deck logs was built into the ground in the area, and he supplied copies of
blueprinted photos.
Dorothy Anderson, 939 East 21st, President of the Eugene Planning Commission,
reviewed additional considerations not included in staff notes. She said the
Planning Commission had received quite a bit of testimony about the Roosevelt
freeway. She said reasons for dropping that proposal included the requirement
of an additional Environmental Impact Statement, non-compliance with the plan,
and the present lack of State ownership of the necessary property. She said
the commission also had discussed putting the west end near the railroad
tracks, but did not want to cause adverse impacts on other property owners and
did want more study. The east end also would need more work, she said, noting
the concern for the impact on property owners. Ms. Anderson said discussion
of site review procedures to protect wetlands had occurred, but some problems
existed, and purchase of the areas therefore was recommended.
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MINUTES--Eugene City Council November 25, 1985 Page 4
Kit Larsen, 2162 Kincaid Street, representing Lane County Audubon Society,
e submitted a copy of statements previously presented to the Planning
Commission. He said the proposed highways would have a significant impact on
Bertelson Slough, Stewart Pond, and adjacent wetlands. He said he was not
opposed to the highway, but he would be very much opposed to Alternate 2,
which would destroy Stewart Pond. He said any roads would have a negative
impact on a natural area, and any wetland loss measures mandated by the
project should go into the Bertelson Slough, Stewart Pond area for
preservation of the small, but valuable, resource.
Jeff Stier, 958 West 11th, spoke in opposition to building the highway. He
said the central assumption of the Transp1an, Metro Plan, and 6th/7th
extension was the population projection of 293,700 by the year 2000. He also
said it was recommended as part of the Mid-Period Review that the population
estimate be increased to 300,000 with no specified year. He said $43 million
worth of improvement projects were included in Transp1an for Eugene over the
short and medium range, adding that he found such plans ridiculous when the
population projections might not occur for 20 or 30 years. He said the
population assumptions should be changed if they were incorrect. Mr. Stier
also noted the expense of the projects and the reluctance to support tax
increases. He said the 6th/7th extension plan would go before voters, and he
intended to bring up those issues. Mr. Stier added that the Environmental
Impact Statement for the project contained a significant omission (possibly
open to legal challenge) of flooding problems for the Amazon Creek drainage
area, which was included in recent Federal Emergency Management Administration
definitions.
e Paul Morris, 222 66th Avenue East, representing Pay IN' Pak Stores, Inc., said
he had met with staff and favored Alternate 1. He said a concern existed,
however, about the present location of the extension across parking lot
property. He said Pay 'N' Pak would like to see the extension moved about 80
feet to the northwest and would be willing to eliminate the building if
necessary. He submitted photos and revised plans showing the option.
Jack Hough, 925 Ascot Drive, representing Bob Bennett Realty, presented
letters from property owners on the southwest corner of 5th and Seneca. He
said the letters requested reconsideration of the alignment for Alternate 1
where it crossed subject property. He proposed moving the alignment 60 to 70
feet north to allow continued use of the main facility on the property.
Mr. Hough said the property contained two bui1dings--one 18,000 square foot
manufacturing structure on the south and a 6,000 square foot warehouse to the
north. He said the EIS and other documents called for removal of the smaller
structure, which also would eliminate any access to Seneca Avenue from the two
and one-half acre site. He said the quality of the structure and the value of
the land, approximately $500,000, would justify northerly realignment.
William Sweetland, 1257 Courtney Place, owner of Sweetland Industrial Park,
said his property would be adversely affected by Alternate 2, but he did not
favor either alternative because of the impact on the west Eugene industrial
area. He said he enjoyed working in the area and found area supplies complete
and convenient. Either alternative would slash through the area in a way that
was out of character and would destroy established businesses, he said.
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MINUTES--Eugene City Council November 25, 1985 Page 5
Mr. Sweetland noted that moving a business was more difficult than moving a
e home because of the continued need to serve customers. He said he saw no
reason why the alignment could not be moved north along Highway 99, pick up
the railroad at the overpass, and follow it all the way through. Although
Mr. Sweetland said he was concerned about the impact of Alternate 2 on his
property, he also thought the destruction in Alternate 1 was unconscionable.
Richard Gold, 2354 Emerald Street, spoke in opposition to the extension. He
noted that Alternate 1 was the only option identified in the Transplan. He
submitted USGS information from the 1943 Eugene flood and he noted several
hydrology and water quality problems with the Environmental Impact Statement.
Mr. Gold said pages 9 and 16 stated the project would not encroach on the 100
year flood plain of the Willamette River, but the 1943 data indicated that the
area was included in the Amazon Flood Plain. He also noted mention on page 16
of annual rainfall of 40 inches, and asked how much of the runoff from the
highway would include oil wastes, rubber by-products, litter, and other
pollutants, which could flow into the water tables of Bertelson Slough and
Stewart Pond. Mr. Gold referred to statements on page 62 of the EIS that
runoff could double and increased pollutants could enter local drainage
channels with growth of traffic. He asked about the long-term effects of
sediment on the water table.
Mr. Gold also said he thought the City should not purchase Bertelson Slough
because the Mid-Period Review and management document contained no management
plan for the wetlands, a situation which he said would allow encroachment by
industrial development. He closed by readi ng a poem he wrote call ed, IIThey I re
e Going to Put a Road Right Here. II
Richard Phi11i~, 751 East 11th Avenue, said the 6th/7th Avenue extension
project would ave to come before voters. He read and submitted a poem
call ed, IIposi tively 6th and 7th Avenue, II describi ng hi s two weeks of research
into the process of public approval for the 6th/7th Avenue widening project.
Mr. Hansen closed the public hearing.
Dave Reinhard of the Public Works Department presented the staff response. He
said the lack of reference in the EIS to the Amazon Flood Plain was an
omission that would be corrected in the final version.
He said staff had met with representatives of businesses regarding the
concerns of the Wi11amette Valley Company. He said impacts had been reviewed
and the entire business might not have to be taken. He added that some
opportunities for relocation appeared possible on the north side of
Al ternate 1.
Mr. Reinhard also said he had told Pay IN' Pak representatives that the
suggested shift in alignment to the northwest appeared feasible but would have
to be referred to the State.
Responding to Ms. Schue's question, Mr. Reinhard said he thought work on the
Amazon Channel had been done in the 1950s--after the publication of the 1943
material distributed. He said the flood plain still was a substantial issue
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MINUTES--Eugene City Council November 25, 1985 Page 6
e that needed long-term planning, for example in designing the span for
Alternate 1 across the Amazon Channel.
Responding to Ms. Bascom's question, Mr. Reinhard said he intended to meet
with representatives of Lane Plywood, but did not yet have a solution. He
said the alignment in that area was designed to miss the EWEB substation, for
which replacement costs were extremely high. He said alignment also was
required to be to the north to avoid negative impacts on Bertelson Slough.
Mr. Reinhard said staff would like to work with the State and with Lane
Plywood on mitigation measures.
Mr. Miller said he also was concerned about impacts on Lane Plywood. He asked
whether staff had examined the feasibility of moving access to Lane Plywood
toward the railroad track as a way of mitigating the impact on businesses.
Mr. Reinhard said a more northerly alignment had been considered in 1982-83.
H~ said that route had been rejected in favor of Alternates 1 and 2 because it
was intended as an alternative to West 11th and would be too far out of the
w~. Mr. Reinhard said the Roosevelt corridor was being developed as an
arterial. He also said he thought Alternate 1 was the closest thing possible
to a clear path between Highway 99 and Be1tline. Although some impacts, such
as those on Lane Plywood, would occur, he said he thought they could be
mitigated successfully.
Mr. Gleason reviewed procedure. He said the council was scheduled to make a
recomendation to the State on December 4, and the State would hold a hearing
on December 18. The State then would send a report back to the council, which
e in February would make a decision on referral to the voters and on an
alignment.
Mr. Hansen suggested taking a van to tour the area the first part of next week.
Responding to Ms. Ehrman's question, Mr. Gleason said the record would be open
until the final council decision. Mr. Reinhard said the record was open at
least until the December 18 State hearing at 7:30 p.m. in the Council
Chamber. He said information sessions were planned for the afternoons of
December 17 and 18, adding that the State would make the final decision based
on testimony and on the council.s recommendation.
Ms. Bascom thanked those who had offered testimony.
Mr. Hansen announced a five-minute break. He reconvened the meeting and
suggested postponing the council's decision on the 6th/7th Avenue extension
until December 16 to allow time to look at the area and for a possible work
session. Ms. Schue said she thought postponing the decision was a good idea.
Mr. Rutan said making a decision on the 16th would not allow much time for
preparation of testimony for the State hearing on the 18th. He added that he
wished more time were available for resolution. Mr. Gleason said written
testimony would be accepted for the State record after the 18th. Ms. Bascom
said she thought it was important to have time for a tour and for a work
session for in-depth discussion of mitigation measures. Mr. Holmer said
tonight's meeting had identified the issues for the decision. Mr. Hansen said
e he preferred the 16th to allow time for a tour and work session.
MINUTES--Eugene City Council November 25, 1985 Page 7
B. 10th and Oak Assessment District--Adjustment of Assessments
e (memo, ordinance, background information distributed)
City Manager Mike Gleason introduced the agenda item. Audit Supervisor Carol
James presented the staff report. She said the proposed ordinance would
reduce the original assessment by 30.86 percent, or a total of $652,869.38.
Ms. James said the action would allow for the resolution of many long-standing
issues, including the distribution of more than $1.8 million in excess net
operating revenues and distribution of $800,000 in remaining funds.
She presented a history of the assessment district. The 10th and Oak Special
Benefit Assessment District was formed in 1966 when a $2 million levy was
assessed against benefitted properties within the district to finance
construction of a five-level parking facility. Ms. James outlined the
district on a map. She said Bancroft bonds related to the assessment were
sold in 1969, and the Overpark first opened for paid parking in fall 1969,
although the structure was not completed until after that. A deficit
assessment of $440,000 was levied in 1972 to finance completion of the
structure, and related Bancroft bonds were sold in 1974.
Code provisions at the time called for the rebate of excess operating
revenues, less operating expenses, with the rebates to be applied as credits
to the assessments outstanding. The structure's revenues had been projected
to be sufficient to service the debt.
Ms. James said the Downtown Develoment District was formed in 1972, and free
e parking was established in surrounding areas, including the Overpark. To
avoid double taxation of properties within the assessment district, a program
of tax credits and deferrals was established as part of the DDD ad valorem and
business and professional tax systems. Under the system, those in the 10th
and Oak district received credits on their ODD ad valorem taxes in the amount
of their annual assessment payments, including interest. Surrounding ODD
properties were assessed higher ad valorem taxes to make up for the revenue
deferred as credits to 10th and Oak district properties. Code provisions at
that time called for reimbursement, to the ODD property owners who had paid
the additional taxes, when the rebate from the Overpark net operating revenues
was declared. Ms. James said no rebates had been declared before 1984.
In March 1984, the council reviewed the issues and directed the call of the
related Bancroft bonds remaining outstandtng. The council also directed staff
to determine amounts available to be rebated' and to remove from the code
provisions for future rebates and for the ODD-10th and Oak credit program. In
June 1984, the council adopted ordinance 19253, declaring the rebate of $1.6
million in excess net operating revenues, an amount that included interest
earnings on unrebated amounts. This ordinance set the stage for court action
to confirm the council's interpretation of Eugene code provisions related to
the rebate program.
In July 1984, the council passed resolution 3868, directing staff to return to
appropriate 10th and Oak assessment payers any funds remaining in the Overpark
Fund after satisfaction of the bonds, distribution of the rebates, and
satisfaction of any related administrative and legal costs. In August 1984,
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MINUTES--Eugene City Council November 25, 1985 Page 8
~
the City filed a petition with the Circuit Court requesting a judgment
- confirming the legality and correctness of Ordinance 19253 and associated
procedures. Objections to City procedures for rebate distribution were filed
by ten out of more than 250 affected parties.
Ms. James said a tentative settlement of the case was reached in August 1985.
It involves the distribution of rebates in accordance with procedures outlined
in the City's original petition and the distribution of remaining funds (i.e.
the reduction of the assessments and return of the resulting overpayments,
offset by the City of deficit assesments remaining outstanding against cash
distributions otherwise due the objectors). The settlement required the
distribution of all funds due the objectors on or before January 1,1986.
Ms. James said staff and legal counsel had, since August, pursued tentative
agreements in writing with both objecting and non-objecting property owners in
the assessment district. She said more than 60 parties had signed agreements
so far, and settlement now was contingent on both council and court approval.
If the council approved the assessment adjustment ordinance tonight, the court
hearing would be tomorrow.
Ms. James said the proposed assessment adjustment before council this evening
was required as part of the settlement and provided a means to return
remaining cash to assessement district property owners while maintaining a
constitutionally required equitable application of a tax. She said staff
recommended approval of the ordinance, which provided a return of any
overpayment resulting from the reduction in assessments to the persons
e entitled cash upon application of the rebate.
Ms. James said notice of this public hearing had appeared as required by code,
in The Register-Guard for four successive days beginning November 5, 1985.
She also said notice of the hearing was mailed on November 6, 1985, to 244
parties determined by the City to be current or previous property owners or
persons with some interest in the matter.
Ms. James said a hearing before the Administrative Hearings Officer was held
on November 14. One objection was presented at that time, and the minutes of
that hearing were included in the information packet, along with a staff
response to those objections, She said two more objections to the proposed
ordinance had been received since the hearing. The objection involved the
Quackenbush Building and two of its former owners, the Salvation Army and
St. Mary's Episcopal Church.
Ms. James said development of the distribution procedures was a difficult,
time-consuming undertaking, and no solution offered by staff satisfied all
interests. She said staff felt the procedures were balanced and as equitable
as possible. She said they also were administratively workable and consistent
with code.
Ms. Ehrman asked whether agreements with the ten objectors were needed. Dave
Jewett, special legal counsel on this issue, said an attempt had been made to
get as many agreements as possible. He said a proposed settlement had been
e reached with respect to the rebated funds, but the proposal also involved
MINUTES--Eugene City Council November 25, 1985 Page 9
additional revenue that was not part of the original court petition, and as
- such the default judgment available in the court case did not apply to these
additional funds. Written agreements were therefore being sought with all
affected parties for all amounts involved. Ms. Ehrman asked how that would
affect tomorrow's hearing, and Mr. Jewett said tomorrow's hearing was to get
judicial approval of the final judgment proposed and of the settlement
involving contested claims, adding that Circuit Court approval was required
for settlement amounts greater than $5,000. Ms. Ehrman said she saw the issue
for Schaefers Bros. to be who made the last payment, while the Salvation Army
and the Episcopal Church issue was the appropriateness of looking at the last
payment. Mr. Jewett agreed. Ms. Erhman said the language dealing with the
last payment was in the prior ordinance and could not be changed. Mr. Jewett
said that was true for the excess net operating revenue subject to rebate.
However, with the remaining funds, which did not constitute operating revenue
from the facility, Mr. Jewett said the council did have discretion over the
manner of the return. He said after consideration, staff had determined the
most fair, equitable, and feasible manner would be consistent with the code's
intent with respect to operating revenue rebates, which unfortunately did not
satisfy all parties.
Responding to Ms. Bascom's question, Mr. Jewett said the adoption of the
ordinance and the court decision tomorrow would resolve the issues raised in
the recent letters.
Mr. Hansen opened the public hearing.
- Jack Gardner, 725 Country Club Road, an attorney representing five of the
parties involved in the lawsuit and 13 other property owners in the Downtown
Development District, said all his clients had signed agreements and approved
of the settlement. He also said all ten parties in the lawsuit agreed to the
settlement, and he added that a need existed to approve the settlement, and
not for the council to be concerned with who pays.
Richard Bryson, 1565 Oak, an attorney representing Schaefers Bros., said
notice of the hearing had been too short to allow an opportunity to appear
before the Hearings Officer on the question of who made the last payment
before June 30, 1982, on the Schaefers Bros. property at the southeast corner
of 10th and Wi11amette. Mr. Bryson said he had filed final written testimony,
including an affidavit from the managing agent for Schaefers Bros. He said he
understood that Mr. Cornacchia had appeared before the Hearings Officer and
contended that the joint venture, as successive owner, should have the rebate
and refund because it had provided the funds with which Schaefers Bros. made
the payment which triggered the cash rebate. Mr. Bryson said sale of the
property was closed on July 2, 1981, and the payment in question was made
June 2, 1981. At that time, he said a payment of earnest money was made on
the sale. Mr. Bryson said it was his contention that the money belonged to
Schaefers Bros. as soon as it was received, and the assessment paid with that
money was their own. He said Schaefers Bros. had paid $61,731 in principal on
the building, and were entitled to a cash refund of about $41,0000. He also
said the joint venture had paid $14,824 and was getting a $30,000 decrease in
its assessment. With the $12,000 deficit assessment payment, total join
venture payments would be about $27,000, $3,000 less than the reduction in
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MINUTES--Eugene City Council November 25, 1985 Page 10
assessment. Mr. Bryson asked the council to approve the staff recommendation
e applying the City's formula, which would allow Schaefers Bros. to collect the
rebate to which they were entitled.
No further requests to speak were made, and Mr. Hansen closed the public
hearing.
Mr. Gleason said the ordinance had been amended to reflect final objections
received today.
Ms. Ehrman asked whether the recommendation from the Hearings Officer was
being considered. Keith Martin, of the City Attorney's Office, said the
adjustment in the assessment would allow judicial review of the council's
decision after the ordinance was adopted. He said only the first reading
would be done tonight, to allow court settlement of the rebate issue, and once
settlement was reached, the council could take final action on the assessment
adjustment. He also said those testifying on the Quackenbush Property would
have standing to seek review of the council IS assessment adjustments after
adoption of the ordinance. He said staff thought the record was more than
complete to substantiate the council IS discretion about distribution of the
$600,000, that the appropriate recipient was noted in the staff report, and
the use of an appropriate method to calculate the ajustment was within council
discretion and based on substantial evidence.
CB 2863--An ordinance adjusting 10th and Oak Overpark special
benefit assessments and declaring an emergency.
e Ms. Schue moved, seconded by Mr. Holmer, that the bill be read by
council bill number only, that the City Council adopt first reading
of the ordinance and have it presented for second reading and
enactment following the Circuit Courtls approval of settlement
agreements and the entry of judgment in the case of The Cit~ of
Eugene v. Ebella Corp. et a1. (case #16-84-06460). Roll ca 1 vote;
the motion carried unanimously, 7:0.
Ms. Schue moved, seconded by Mr. Holmer, to authorize the City
Manager, subject to Circuit Court approval, to execute the
settlement agreements relating to The City of Eugene v. Ebe11a Corp.
et ale (case #16-84-06460). Roll call vote; the motion carried
unanimously, 7:0.
III. FRANCHISE AGREEMENT WITH AMERICAN TELEPHONE AND TELEGRAPH COMPANY
(memo, ordinance distributed)
Mr. Gleason introduced the agenda item. Finance Director Warren Wong
presented the staff report. He said AT&T had approached the City about using
the City right-of-way to lay a fiber optics cable from 10th and Oak to Blanton
Heights. He said AT&T did not have a franchise agreement with the City, but
the charter provided for franchise agreements which called for assessments
based on a percent of revenue. Mr. Wong said an agreement had been negotiated
to charge AT&T $1 per linear foot, because of the difficulty in determining
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MINUTES--Eugene City Council November 25, 1985 Page 11
, the amount of revenue generated within the city as a result of the fiber
e optics cable. He said the agreement was for fifteen years, with three-year
reopeners, and should generate about $26,000 to $27,000 annually.
Mr. Wong said research indicated a City franchise with AT&T for laying of
fiber optics cables was unique nationwide, and the three-year reopener was
included because the technology was expected to grow. He said tonight's
action was to take first reading on the ordinance.
Ms. Ehrman asked where the five miles would be located. Mr. Wong said it
would be located principally out West 11th and used city streets and parkland.
Mr. Holmer asked about the charge, and Mr. Wong said the $1 per foot charge
had been determined by comparing revenues generated by existing franchises,
and a similar Pacific Northwest Bell rate of $.98 per mile was used.
Mr. Holmer asked whether that rate was related to net profits or to gross
revenue. Mr. Wong said the PNB rate was based on three percent of gross
revenues, translated per mile, and with AT&T no relationship existed to
revenue.
Responding to Ms. Ehrman's question, Mr. Wong said resources would go into the
General Fund.
Mr. Hansen asked whether the review included criteria of financial charges.
Keith Martin said there were none. He said the City had the unilateral power
to terminate the franchise by giving notice to the holder, and the holder had
e the same power of termination by notice every three years. He also said no
arbitration clause was included.
CB 2864--An ordinance granting to the American Telephone and
Telegraph Company, through its Interstate Division, the
privilege to use the public way to construct and maintain
public communication facilities within the city of Eugene.
Ms. Schue moved, seconded by Mr. Holmer, that the bill be read by
council bill number only, and that the City Council adopt first
reading of the ordinance at this time. Roll call vote; the motion
carried unanimously, 7:0.
Ms. Schue moved, seconded by Mr. Holmer, to direct the City Manager
to provide notice of the public hearing on December 16, 1985. Roll
call vote; the motion carried unanimously, 7:0.
IV. ADOPTION OF FINDINGS/LEVYING OF ASSESSMENTS FOR SANITARY SEWER
ON FERRY STREET (CONTRACT 8S-30) (memo distributed)
City Manager Mike Gleason introduced the agenda item. Bert Teitze1 of the
Public Works Department said plans included construction of a short sanitary
sewer to serve three houses previously on a private sewer.
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MINUTES--Eugene City Council November 25, 1985 Page 12
.
A. Adoption of Findings (Job #2191) (findings distributed)
- Ms. Schue moved, seconded by Mr. Holmer, to adopt the proposed
findings concerning improvements on Ferry Street from 18th Avenue to
150 feet north of 18th Avenue. Roll call vote; the motion carried
unanimously, 7:0.
B. Levying of Assessments
CB2865--An ordinance levying assessments for sanitary sewer on Ferry
Street from 18th Avenue to 150 feet north of 18th Avenue
(#85-30).
Ms. Schue moved, seconded by Mr. Holmer, 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, 7:0.
Council Bill 2865 was read the second time by council bill number only.
Ms. Schue moved, seconded by Mr. Holmer, 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.
19367).
The meeting was adjourned at 9:37 p.m.
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(Recorded by Leslie Scales)
LS:kb/1944C
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