HomeMy WebLinkAbout04/20/1992 Meeting
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M I NUT E S
Eugene City Council
McNutt Room--City Hall
Apri 1 20, 1992
5:30 p.m.
PRESENT: Shawn Boles, Ruth Bascom, Randy MacDonald, Roger Rutan, Kaye
Robinette, Paul Nicholson, Bobby Green, Debra Ehrman (5:45).
The special meeting of the Eugene City Council was called to order by His
Honor Mayor Jeff Miller.
I. FIESTA LATINA CINCO DE MAYO FUNDING REQUEST
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Mr. Boles directed attention to the staff analysis of the funding request from
Fiesta Latina for a street fair celebrating Cinco De Mayo.
Mr. Boles moved, seconded by Mr. Green, that the City Council
authorize funding in the amount of $915 to support a street
fair celebration of Cinco De Mayo.
Mr. Robinette clarified that this is a one-time request and is appropriate to
be supported through contingency funding.
The motion passed unanimously (7:0).
Ms. Ehrman arrived (5:45 p.m.).
II. WORK SESSION: EUGENE DECISIONS--DEVELOPMENT OF DETAILED STRATEGIES
Mayor Miller allowed Tony Mounts, Financial Management Services Director, to
facilitate the meeting. Mr. Mounts stated that there are 30 components that
have neither been included nor excluded from council discussion to date.
These components are listed according to their financial impact.
Mr. MacDonald brought up the strategic value of developing a third option, in
addition to strategies A and B. Mayor Miller said that a combination of the
two strategies would be beneficial. Mr. Boles said that one strategy offers
across-the-board budget reductions and the other consists of efficiency
strategies. Mr. MacDonald concluded that it would be more effective to
provide two strategies to the public.
Mr. Mounts said that items in the "excluded" category consist of items that
the council does not wish to discuss further at this stage in the process.
These items received at least six votes from the council to exclude from
further discussion.
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Glen Svendsen, Financial Analyst, said that the balance of components that
received at least six votes to include in strategies is $994,000, which does
not include $800,000 on which the City Manager needs council direction.
Ms. Bascom brought up the issue of City employee compensation. Mr. Nicholson
viewed this as a serious public relations problem. Linda Norris, Assistant
City Manager, said that this issue could be addressed as part of a long-term
process, which would thoroughly examine the compensation packages of City
employees. Mr. Nicholson pointed out that some of the components have
addressed this issue already, such as implementing volunteer programs. He
stated that the public expressed a desire for reduction in middle management
and compensation. Mr. Boles thought that the council should make decisions
about middle management and compensation based on sustainability criteria, and
not on public relations issues. He said that staff is already examining
management issues for the long term and one consequence may be to eliminate
some middle management positions. Mr. Boles also pointed out that the study
conducted by the Eugene Area Chamber of Commerce indicates that direct
compensation for City employees is within the norm but that benefits packages
may be questionable. Mr. MacDonald said that any study done on compensation
should be comprehensive. He said that market issue8dn~edb~oehQmiRQdinBdain a
rational, realistic manner. Mayor Miller suggested that this item be tabled.
Mr. Nicholson reiterated his concern that these two issues were those most
frequently suggested by the public for reduction. He said that until the
council examines them, it will not gain community support for the packages it
presents. Mayor Miller stated that the study conducted by the Eugene Area
Chamber of Commerce addresses these issues in depth. Mr. Nicholson said that
the public is not aware of that study. Ms. Bascom wondered why staff could
not provide figures which specify reductions which would occur with compensa-
tion reductions. Mr. Mounts said that there are too many underlying assump-
tions that would affect those figures.
A. ComDonent 143. Recreation Division
Mr. Robinette wondered if there would be a different reaction to a 50 percent
membership fee at the lower levels, such as level 1. Mr. Mounts said that it
made more sense to examine individual customer bases for certain service
around human services, community planning, and swimming pools. In response to
a question from Mr. Robinette, Mr. Mounts said that the number of people who
use more than one service is not known at this time and difficult to measure.
The council agreed, by consensus, to exclude this item.
B. ComDonent 146. Community Centers
Mr. Boles moved, seconded by Mr. MacDonald, to accept alterna-
tive 1 of component 146, which proposes to increase fees to
recover 53 percent of full costs over two to three years.
Mr. Mounts said that there were some analyses of alternatives which were
inadvertently excluded from the packet. Mr. Rutan wondered how alternative 1
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would affect programs. Mr. Mounts said that based on market assessments,
alternative 1 is sustainable. He said that fee increases would be phased in
over a two- to three-year period to achieve 53 percent cost recovery.
Mr. Robinette wondered why the recovery of net direct cost for level 1 is not
53 percent of $1.25 million. Mr. Mounts said that the total cost is $1.775
million. He said that the net cost does not reflect revenue. Mr. Mounts
clarified that new adult membership fees would be approximately $40.
The motion passed, 7:1 (Ms. Ehrman opposed).
Ms. Ehrman expressed concern about providing services to community members
based only on their ability to pay. Mr. Boles emphasized that the community
and the council will have an opportunity to re-examine these decisions. Mr.
MacDonald agreed with Ms. Ehrman, and stated that this issue should be
presented to the community.
C. Component 117. DeveloDment Services
Mr. MacDonald moved, seconded by Mr. Rutan, to include compo-
nent 117, which recovers the full cost of building permits/plan
check development services through user fees.
Mr. MacDonald emphasized that this issue needs to be presented before the
community. Mr. Nicholson requested more information on how the component
would affect the users. Mr. Ehrman said that the council had already voted to
proceed with this option. Mr. Rutan said that Mr. Nicholson's question may
have no answer. He said that as a result of this option, some development
projects may not occur. For other developments, it may result in significant
hardships. He said, however, that extensive analysis has already been done
and community input has been received. He thought that it was time for the
council to make very difficult value judgments. He pointed out that there
will be citizens opposed to every strategy that the council suggests. Mr.
Nicholson stressed that there is a difference between unfortunate options and
unjust options. Ms. Ehrman pointed out that the public has expressed support
for this option.
The motion passed 7:1 (Mr. Nicholson opposed).
D. Comoonent 115 AI. Statistical Samoling
Mr. Nicholson was unsure whether this option applied only to licensed profes-
sionals, such as electricians and plumbers. He said that if so, it should not
be so restrictive. Mr. Mounts said that a different license is required to
inspect work than to perform work. Abe Farkas, Director of the Planning and
Development Division, stated that licensed professionals must be certified by
the State. Mr. Nicholson stated that it seems more appropriate to address
this issue on a legislative level. He suggested that the component be
discussed in the near future, with the intent on ratifying the concept and
removing State barriers. Ms. Ehrman expressed a desire to ascertain how those
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affected would view that option. Mr. Nicholson proposed that the council
place this item in its current agenda of possible ways to reduce costs,
recognizing there are external costs. The council agreed, by consensus, to
place this item in the "deferred" category, as Mr. Nicholson suggested.
E. ComDonent 119. Transfer and/or Privatize
Ms. Ehrman moved, seconded by Mr. Robinette, to include compo-
nent 119, which would transfer building permit/plan checking
programs to the County and/or State and/or privatize functions.
Mayor Miller stated that the County is considering this option. Mr. Mounts
said that this program would achieve a short-term savings of approximately
$350,000. Mr. Boles pointed out that the savings achieved with this option
overlap with savings from other related options. Mr. Robinette suggested that
this component be placed under Strategy B. Mr. Nicholson expressed concern
about the County adding functions without losing money. He wondered whether
the City could enforce a sustainable level without transferring responsibility
to the County. Mr. Rutan noted that in the past when building permits were
not the City's responsibility, the system was inefficient and more time
consuming.
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Ms. Ehrman left the meeting (6:40).
Mr. Boles said that the council must address the issue of reducing the burden
on the general fund by providing services differently.
The motion passed unanimously, (7:0).
F. ComDonent 118A. Critical Fire and life Safety and Aesthetic Issues
The council agreed, by consensus, to add this component to the "deferred"
category for consideration at another time.
G. ComDonent 139. Turf and Ground
Mayor Miller wondered if there was a way to naturalize the turf so as to
reduce the maintenance required. Mr. MacDonald pointed out that sometimes
ecosystem management requires more intensive management which is sometimes
more expensive. He added that that does not apply in this area, however, and
expressed a preference to keep areas as natural as possible.
Mr. Green asked whether there was any consideration given to the cooperation
of school districts and the affected properties. Mr. Mounts said that was not
addressed in this analysis.
Mr. Rutan moved, seconded by Mr. Robinette, to include compo-
nent 139, which would reduce the general fund support of turf
and ground park maintenance by 50 percent.
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Mayor Miller expressed opposition to the motion. Mr. Boles also expressed
opposition to the motion, stating that the component is not sustainable. Mr.
MacDonald suggested reducing general fund support by a figure less than 50
percent. Mr. Boles suggested that staff analyze this component more thorough-
ly, in order to provide more reduction options.
The motion failed unanimously (7:0).
The council agreed to add this component to the "deferred" list, directing
staff to investigate other options.
Mr. Boles stated that he is opposed to including components 154 and 156. He
then left the meeting (6:50 p.m.).
H. Comoonent 154. Swimming Pools
Mr. Robinette moved, seconded by Mr. Green, to adopt staff
alternative 1, which would achieve a 40 percent cost recovery
of full net General Fund support, plus provide a low-income
scholarship program. The motion passed 6:1 (Mr. Boles op-
posed).
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I. Comoonent 156. Swimming Pools
In response to a question from Mr. Robinette, Mr. Mounts said that this
component differs from 154 in that it only decreases instructional swimming
programs and the general fund would continue to support open swim time only.
The council agreed, by consensus, to exclude this component.
Mr. Boles returned to the meeting (6:55).
J. Component 152 A. Senior Centers
The council agreed, by consensus, to exclude component 152 A, which would have
established a more substantial annual membership fee for senior centers in
order to recover 50 percent of the net cost.
K. Components 131 and 134. Street Trees
Ms. Bascom commented that it was difficult for Eugene Water and Electric Board
to achieve standards similar to those of the City of Eugene. She was opposed
to contracting for street tree maintenance. She added that the expertise of
City employees cannot be improved and funding should not be reduced. Mr.
Mounts said that the original strategy was to reduce general fund support and
contract for services. He said that park tree trimming is funded through the
general fund. Mr. Mounts said that this component would save approximately
$360,000 of the general fund if those services were then supported by the road
fund. Mr. MacDonald said that when the council voted on component 131, it
voted based on a certain level of impact. However, now that that level has
changed, as indicated by staff, he suggested that the council reconsider
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component 131 concurrently with 134. He said that component 131 should be in
one strategy and 134A in the other.
Mayor Miller moved, seconded by Mr. Green, to include component
131, which would investigate savings regarding maintenance of
street trees resulting from addressing life safety issues, as
the highest priority, and support the program entirely with
Road Funds.
Mr. Rutan pointed out that this motion would not reduce the amount of mainte-
nance on street trees. However, it would reduce additional programs funded
with the Road Fund. Mr. Nicholson said that this decision is contingent on
decisions about revenues. Mr. MacDonald said that if this motion passes, the
public should have information regarding the effects it would have on programs
supported by the Road Fund. Mr. Rutan said that all the components will
result in some programs not being funded. He said that neither the council
nor staff know exactly which ones.
The motion failed, 4:3 (Ms. Bascom, Mr. Nicholson, and Mr.
Rutan in support).
The council agreed, by consensus, to place component 131 in the "deferred"
category.
Regarding component 134, Mr. Mounts said that this would reduce program
funding from $450,000 to $225,000. Mayor Miller clarified that $450,000 is
the total cost from the general fund from all street tree maintenance. Mr.
Mounts stated that all the street tree crews are Public Works employees. Mr.
MacDonald thought that $225,000 would not be adequate to support life safety
issues and would not be sustainable. The council agreed, by consensus, to
exclude component 134.
Mayor Miller expressed a desire to place component 131 in Strategy A. Mr.
MacDonald said that he would require more information that certain services
supported by the Road Fund would be continued.
l. ComDonent 144 and 145. Athletic Services
Mr. Mounts said that the alternative to 145A is component 144A. In response
to a question from Mr. Green, Mr. Mounts said that approximately 70 percent of
the fees from field use would fund youth athletic programs. Mr. Mounts added
that component 144A addresses only adult athletic programs.
Mr. MacDonald moved, seconded by Mr. Nicholson, to include
component 144A, alternative 1, which would increase fees for
all adult athletic programs, over a two-three year period to
recover 73 percent of full cost ($101,000).
In response to a question from Mr. Rutan, Mr. Mounts said that it is possible
to achieve alternative 1 of component 144A. Mr. Rutan expressed concern that
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this component may result in a decrease in participants, and asked whether
staff had accounted for this in its analysis. Mr. Mounts responded affirma-
tively, and added that some programs may have to engage in sponsorship
activities if this component is implemented. Mr. Boles shared Mr. Rutan's
concern regarding drop-out rates.
The motion failed, 5:2 (Mr. MacDonald and Mr. Boles opposed).
M. Component 136. landscaoinq/Park Trees/Hendricks Park
Mr. Robinette moved, seconded by Mr. MacDonald, to include
component 136, which would reduce the general fund support of
landscaping and maintenance of park trees by $200,000.
Mr. Boles expressed opposition to the motion, and stated that the parks are a
great asset to the community.
Ms. Ehrman returned to the meeting (7:40 p.m.).
Mr. Robinette pointed out that the total budget for this program is $650,000,
and that eliminating only $200,000 would not be debilitating. He said that
there would be funding to provide maintenance in addition to that needed on an
emergency basis.
The motion failed, 5:3 (Mr. Boles, Mr. Nicholson, Ms. Ehrman
opposed).
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N. Revisit Comoonent 134A
The council revisited component 134A, in order to allow Ms. Ehrman to vote on
the issue. She-was in favor of including the component, thereby the component
had enough votes to be placed in the strategies.
O. Comoonent 148. Outdoor/Environmental Proqrams
Mayor Miller moved, seconded by Mr. Rutan, to include component
148, which would eliminate the outdoor/environmental program.
The motion failed, 5:3 (Ms. Bascom, Mr. Rutan, Mr. Green in
support).
Mr. MacDonald moved, seconded by Mayor Miller, to include
component 149, alternative 1, which would increase fees for
adult programs over three to five years to recover 100 percent
of the costs. The motion passed, 6:2 (Mr. Boles and Mr.
Nicholson opposed).
P. Comoonent 128. land Use Permits
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Mr. Boles moved, seconded by Mr. MacDonald, to include compo-
nent 128, which would increase the cost recovery to 50 percent
by increasing user fees.
In response to a question from Mr. MacDonald, Mr. Mounts said that this
analysis was based on projected future levels of activity.
The motion passed unanimously, 8:0.
Q. ComDonent 108. Hult Center
Ms. Bascom stressed that the Cultural Affairs Commission specifically request-
ed that performance rental rates for local art groups be excluded from this
component. The council had a brief discussion regarding this matter.
Mr. Robinette moved, seconded by Mr. Rutan, to include compo-
nent 108, alternative 4. The motion failed 6:2 (Mr. Robinette
and Mr. Green in support).
Ms. Bascom moved, seconded by Mr. Rutan, to include component
108, alternative 2.
Several council members thought that the increase in rental rates for rehears-
al days from nothing to $520 was too drastic.
The motion passed, 6:2 (Mr. Green and Ms. Ehrman opposed).
R. Comoonent 137A. Riverside Park/Owens Rose Garden
Ms. Ehrman moved, seconded by Mr. Rutan to include component
137A, which would reduce general fund support by $69,127 and
incorporate the use of volunteers.
Mr. MacDonald expressed a concern that this component would not sustain the
program. Mr. Nicholson wondered whether volunteers would be able to make up
for the funding reductions. Ms. Bascom expressed concern about programs in
Parks, Recreation, and Cultural Services being considered "not as important"
as other programs. Mr. Nicholson shared her concern. However, he stated that
utilization of volunteer efforts to decrease the burden on the general fund
was among the most frequent of public responses.
The motion passed, 6:2 (Mr. Boles and Mr. MacDonald opposed).
S. ComDonent 124. Business Licensing
Mr. Rutan moved, seconded by Mr. Nicholson to include component
124, which would reduce the service level and reduce the budget
by 50 percent by allowing some businesses to become self-
regulating. The motion passed unanimously, 8:0.
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T. Comoonent 130. Metro Partnershio Contract
Mr. Boles moved, seconded by Mr. Nicholson, to include compo-
nent 130, which would eliminate general fund support for the
Metro partnership contract, and thus eliminate the contract.
Mayor Miller opposed the motion, stating that the partnership must exist. Ms.
Ehrman said that the services that that partnership performs will still have
to be done. Mr. Nicholson maintained that the services can be allocated to
other departments and agencies. Mr. Robinette stated that he supports the
motion, but also supports the partnership. He said that if the City is
unhappy with the partnership, it should be changed. Mr. MacDonald stated that
component 122B should be under Strategy B and component 130 should be under
Strategy A. Mr. Rutan said that the Metro Partnership is the link between the
private and public sectors. He commended the Metro Partnership's past
services, but also commented that presently, there seems to be a shift in the
organization to supporting businesses.
Mr. MacDonald amended the motion, seconded by Mr. Robinette, to
place component 130 in Strategy A and component 122B in Strate-
gy B. The motion passed, 6:2 (Mr. Rutan and Mr. Green op-
posed).
U. Comoonent 140. Animal Control
Ms. Ehrman moved, seconded by Mr. Robinette, to include compo-
nent 140, which would reduce animal control enforcement servic-
es.
Mr. Boles said that this component is not sustainable because it affects
police services. Mr. Nicholson suggested that the City subsidize nonprofit
agencies. Mr. Rutan pointed out that the City is currently competing with
private veterinarians.
The motion passed, 7:1 (Mr. MacDonald opposed).
V. Comoonent 125. Business licensing
The council agreed, by consensus, to add thi s component to the "defer"
category.
W. Comoonent l12A. Sister Cities
Mayor Miller stated that the Sister Cities program requires the Mayor's
connection. He said the program can be privatized, but it will still involve
the City Manager's Office. The council agreed, by consensus, to exclude the
component.
X. Comoonents 101. 107. 115. 111. and 121
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The council agreed, by consensus, to exclude components 101, 107, Ill, and
121, and to add component 115 to the "defer" category.
The meeting adjourned at 8:45 p.m.
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Re. s%ect. '.. "l~i ted~'
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Micheal Gleason
City Manager
(Recorded by Kathy Varner)
mncc 042092
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