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HomeMy WebLinkAbout06/17/1992 Meeting - M I NUT E S Eugene City Council McNutt Room--City Hall June 17, 1992 11:30 a.m. PRESENT: Mayor Jeff Miller (l2:l3 p.m.), Shawn Boles, Bobby Green, Ruth Bascom, Debra Ehrman, Randy MacDonald (ll:40 a.m.), Paul Nicholson, Kaye Robinette, Roger Rutan. ABSENT: None. The adjourned Eugene City Council meeting of June 10, 1992, was called to order by Mr. Boles, in His Honor Mayor Miller's absence. The council agreed to address agenda item II prior to item I. I. COMMUNITY REINVESTMENT ACT TASK FORCE UPDATE Mike Sullivan, Planning and Development Department, provided an update on the Community Reinvestment Act (CRA) Task Force. Mr. Sullivan said that the City Council directed staff to form a citizen task force to examine community cred- it needs and related issues, and whether local lenders were meeting these e needs. The council further directed that this effort be undertaken jointly with the City of Springfield to address the credit concerns of the entire metropolitan area. The 12-member task force held eight meetings and two com- munity forums over a six-month period. The task force considered housing credit needs (multi-family and single-family) and business credit needs. Mr. Sullivan presented several major findings of the report, as follows: Multi-family housing * Lack of equity for low-income housing development * Financing for private, nonprofit developers * Lack of local market for low-income tax credits * Technical assistance to nonprofit developers Mr. MacDonald arrived. Single-family housing * Inability to qualify for home loans * Higher cost of small mortgage loans * Downpayment and closing costs barriers * Difficult to obtain loans for older units in older neighborhoods * More information and training is needed for borrowers - MINUTES--Eugene City Council June 17, 1992 Page 1 11:30 Work Session e Small Business * limited availability of financing for formative/start-up expenses * Limited access to investment/venture capital * Difficulty in obtaining bonding (insurance) * Limitations on commercial financing * Borrower educational needs Mr. Sullivan then presented the following suggested actions, and noted that the listing is not inclusive: Housing * Develop a bank loan consortium, whereby banks contribute to a lending pool that could be used for specific purposes and their liability would be limited. * Formation of a bank-sponsored Community Development Corporation and/or increase support for existing community development corporations, such as the Neighborhood Economic Development Corporation and St. Vincent DePaul. * Develop investment pool for low-income housing tax credits. * Improve information for borrowers. e In response to a question from Mr. MacDonald, Mr. Sullivan said that the task force did not specifically consider Community Development Block Grant (CDBG) funding for community development corporations. He added, however, that dis- cussions are currently under way regarding related issues. Mr. Nicholson wondered why tax credits are so difficult to sell. Mike Gleason, City Manager, said that the new tax laws have reduced the value of tax credits. Business * Maximize use of existing public finance programs * Develop new finance programs * Continue commitment to small business technical assistance Mr. Boles introduced Frank Brawner of the Oregon Banker's Association. Mr. Brawner commended the task force. He distributed a memorandum that elaborated on his comments regarding the report. He said that there were two goals of the report: 1) to make housing more affordable; and 2) to increase employment by assisting small businesses. He emphasized that involvement of the full community is necessary for these goals to be achieved. He said that local banks are doing a good job at providing needed services to low-income individ- uals and small businesses, and need to continue their efforts. He stressed that banks succeed financially when they are able to make loans. He said that e MINUTES--Eugene City Council June 17, 1992 Page 2 11:30 Work Session e some impediments to making loans are due to societal problems, such as timber worker layoffs and Ballot Measure 5. Mr. Brawner said that the Home Mortgage Disclosure Act (HMDA) data in the report is out of date and does not provide an accurate conception of the en- tire situation, although it does provide a good overall picture. He stated that the percentage of loans made to individuals with low incomes is higher in Oregon than the national average. He added that there have been two 2038 loans made in lane County, and three are in progress. Mayor Miller arrived. Mr. Boles introduced Richard Guske, Vice Chair of the Community Reinvestment Task Force. Mr. Guske stressed that lenders have a commitment and an obliga- tion to provide loans to individuals with low income and to small businesses, and that these obligations have been defined by overseers of the lending in- stitutions. He said that CRA legislation arose because of the perception that lenders are not meeting the needs of individuals with low income and small businesses, and noted that more strict enforcement of these obligations is necessary. He compared the cooperative lending model with the intervention model. He said that the cooperative model identifies needs and suggests re- sponses. Mr. Guske distributed examples of the two kinds of contracts, as well as an outline of a previous presentation he had given on this topic. John Tamulonis, City of Springfield, said that although the HMDA data may be slightly out of date, it is the best data available. He said that Eugene e averages 1 loan denial for every 13 approvals to individuals with low incomes. Similarly, Springfield averages 1 denial for every 8 approvals. He added that in one section of Springfield, the denial rate is 1 for every 6 approvals. He said that this may be due to the older homes in the area or other factors. In summary, he said that the data provides information about where the City should focus its efforts. Mr. Tamulonis explained that banks receive informa- tion by census tract, but that the Federal Reserve is reluctant to reveal geographical locations of loans that were approved and denied. Mr. Boles commented that CRA accreditation occurs at the Federal level. He suggested that the City Council develop strategies whereby lending institu- tions could indicate their progress in certain areas. He said that the lend- ing community could provide a report of that progress after six months. Mr. Sullivan suggested that staff could work with area lenders and report back to the council after six months. Ms. Ehrman was concerned that six months may not be adequate time. Mr. Boles explained that six months should be enough time for lending institutions to begin organizational and formation efforts. In response to a question from Ms. Ehrman, John Vanlandingham, task force member, said that the early history with Network for Oregon Affordable Housing is favorable, although lately, the results differ depending on the lending institution. e MINUTES--Eugene City Council June 17, 1992 Page 3 11:30 Work Session e Mr. Rutan requested that all area lending institutions receive a copy of the CRA Report, and that the report clearly ask for cooperation of the lending community. Mr. Boles suggested that the City explore investment linkage options whereby the City could take into account CRA records when selecting banks to hold City depos its. II. ITEMS FROM THE MAYOR, CITY COUNCIL, AND CITY MANAGER A. Olive Street Construction Grant Application Mr. MacDonald said that the Intergovernmental Relations (IGR) Committee has authorized staff to proceed with an official request for $500,000 from the Economic Development Assistance Program that Lane County has through the Road Fund for construction of Olive Street. He said that there is considerable support from Commissioner Roberts and other commissioners. In response to a question from Ms. Ehrman, Mr. MacDonald said that Lane County could act within ten days. He said that money in the Urban Renewal Fund earmarked for the Olive Street project could be used for other projects, such as the library. B. Special Session of the State Legislature Mr. MacDonald said that there will most likely be a Special Session of the Legislature and requested that each Councilor contact at least one legislator. e He said that the IGR Committee generated a list of topics to discuss with the legislators. He said that this list is also being distributed to elected officials of Lane County and Springfield, who are being encouraged to contact legislators. He said that IGR wishes to convey to the legislators that local government would rather handle its own affairs, and proceed with the Eugene Decisions process. C. Federal Lobbying Efforts Mr. Rutan announced that he has preliminary results from Eugene's most recent Federal lobbying efforts. He said that the full request for the Amazon Chan- nel widening was funded--$167,000 to the Corps of Engineers to complete the Reconnaissance Study; and $500,000 for the feasibility study. Regarding transportation, Lane Transit District (LTD) will receive $3.5 million to build a downtown transit facility and $4.2 million to purchase new buses. He added that there is a good chance the full $1 million will be approved for the Lane Community College training facility at the airport. He expressed confidence that the wetlands acquisition program, Springfield wetlands planning, and the McKenzie River enhancement program will be funded. D. Sports Facil ity Mr. Rutan said that he attended a sports facility meeting and would keep the council informed on its progress. e MINUTES--Eugene City Council June 17, 1992 Page 4 11:30 Work Session e E. Meeting with State Officials Ms. Bascom reported on her meeting in Salem regarding lane County United Front issues. She said that she met with staff from the Governor's office and dis- cussed how State decisions affect local government. F. Alton Baker Park Ms. Bascom referred to a memorandum regarding Alton Baker Park Citizen Commit- tee and requested the council's approval, which it gave, by consensus. G. Budget Agenda Item Ms. Bascom announced that she will not be present at the next council meeting and requested that the vote be deferred if there are changes to the budget. H. Century Council Mr. Boles requested the council's approval to send a letter he had written to the Century Council requesting information on its progress--specifically, its methods of evaluating its efforts. Such approval was granted. I. Golden Gardens Proposal Mr. Boles said that he had many questions regarding the Golden Gardens propos- e al. linda Norris, Assistant City Manager, said that she is handling that proposal. J. lane Council of Governments Ms. Ehrman said that lane Council of Governments (l-COG) had a focusing ses- sion last week, but she could not attend. She said that she received a memo- randum from l-COG if anyone would like more information. K. Eugene Decisions Workshops Mr. Nicholson said that he attended two of the Eugene Decisions workshops. He said that the public does not understand that the proposed income tax would apply only to those whose income is greater than $40,000. In addition, he said that he has received two telephone calls regarding the City's spay and neuter services and the fact that neither the County nor the City of Spring- field offer such services. He wondered if a partnership could be established between the three jurisdictions to provide the service. Ms. Ehrman commented that more lane County residents use the service than city residents. Mr. Robinette requested comments on the outline that the Eugene Decisions Committee developed. e MINUTES--Eugene City Council June 17, 1992 Page 5 11:30 Work Session e L. Council Process Session Mr. Robinette commented on the memorandum he distributed regarding the coun- cil's upcoming process meeting. He expressed his desire to increase the num- ber of people who are willing to serve on the City Council. Mr. Boles said that the memorandum can serve as a guideline for discussions around process improvement. Mayor Miller requested that Councilors arrive at 5:30 p.m. and that the meeting start promptly at 6 p.m. Mr. Gleason said that a memorandum was received from Lorig and Associates, Inc., that describes the progress of the Lincoln School construction project. The memorandum states that Lorig and Associates, Inc. is frustrated with the lending institutions because of their unmet time lines. Lorig and Associates, Inc. also realizes that the neighborhood is frustrated, but maintains that construction delays are beyond their control. Lorig and Associates, Inc. expresses confidence that construction will begin in the very near future. Mr. Boles commented that the residents are frustrated because of the lack of communication between the City and Lorig and Associates, Inc. and themselves. Mr. Boles requested that the City Manager review the various reasons for the delays and the current status of the project, and report back to the council. III. LIBRARY PROJECT: SEARS BUILDING OPTION EXTENSION Mayor Miller introduced Lew Bowers of the Planning and Development Department. - Mr. Bowers summarized the memorandum that he had distributed to councilors prior to the meeting. He noted that under the column of "amount applied to purchase price" the figure $33,425 should be $25,000. Mr. Green moved, seconded by Ms. Ehrman, to approve the extension of the option on the Sears property for a period of six months to a year. Mr. MacDonald clarified that the City is not committed to extending the option for an additional three months after this initial extension of six months. Ms. Ehrman expressed opposition to the motion. She maintained that this is not a wise business deal, and that the City should purchase the property in- stead. Ms. Bascom thought it important to prepare a proposal for the voters in fall, as planned. Mr. Robinette pointed out that the City cannot afford to purchase a new building. He added that the owners most likely do not have a viable opportunity to sell the property to anyone except the City because of this agreement. Mr. Green said that in other circumstances, he would oppose the motion. However, he said that he will support it because of the need to follow through with the Eugene Decisions process. Mr. Nicholson said that it will cost more annually to purchase the building than to continue the option. Mr. Rutan said that the City needs to keep community options open, while also being responsible to the property owner. . MINUTES--Eugene City Council June 17, 1992 Page 6 11:30 Work Session .> ---- e In response to a question from Mr. Boles, Mr. Gleason said that a fixed pur- chase price was not part of the initial agreement. If a decision was made to purchase the building, the City must purchase it at no more than fair market value at the time of purchase. The motion passed, 6:2 (Ms. Ehrman and Ms. Bascom opposed). IV. WORK SESSION: METROPOLITAN INDUSTRIAL LANDS STUDY Carol Heinkel, of the Lane Council of Governments, provided a brief summary of the materials included in the agenda packet, and offered to answer questions. Mr. Nicholson noted that the Downtown Commission's concern about allowing office uses that are unrelated to industrial uses in business parks will most likely be a popular topic of testimony during the public hearing. V. WORK SESSION: NATURAL RESOURCES SPECIAL STUDY Neil Bjorklund, Planning and Development Department, summarized the informa- tion included in the agenda packet. He noted that the majority of public testimony requested that the North 66th Street site be added to the inventory. Other issues included the study's lack of specificity, which staff explained will be addressed through implementing ordinances. Mr. Bjorklund added that this plan offers implementation strategies for policies already in the current Metro Plan. e Mr. MacDonald requested more information be provided at a later date on the status of stormwater maintenance issues. Mr. Boles stated that Jenny Sirnio, President of the Planning Commission, was present to answer any questions. VI. SOUTH HILLS FIRE SAFETY Mr. Gleason introduced Bill Bass, the Director of Fire and Emergency Services. Mr. Bass presented a topographic map of the Eugene area, noting the large number of deciduous and evergreen trees. He said that in addition to the growing number of trees, more houses are being built in forest areas. These locations are difficult to get to because of many factors, such as narrow, winding roads and steep slopes. Mr. Bass said that Oregon has had a drought for the past six or seven years, and that the current moisture content resem- bles that found in August. He said that Oregon has already had major forest fires this year. Mr. Bass said that this year, Eugene is emphasizing prevention, with a theme of "no fire in my backyard." Media, neighborhood newsletters, door hangers, flyers, and informational signs will be used to educate the public on preven- tative measures. Activities include neighborhood and community meetings, neighborhood cleanups sponsored by disposal companies, concentrated media campaigns, door-to-door campaigns, roving fire crews visiting neighborhoods, e MINUTES--Eugene City Council June 17, 1992 Page 7 11:30 Work Session e and businesses offering special rates for prevention services, such as roof cleaning. Mr. Bass said that the department is exploring the idea of air surveillance also. Mr. Bass presented photographs of a house fire that occurred on April 25, 1992, pointing out the resulting excessive damage to the house and forest. He noted that the fire occurred outside the urban growth boundary, the roads were very narrow and steep, and water needed to be carried in trucks. He said that the fire started from recharging an electrical appliance. Mr. Bass emphasized that the entire region is experiencing a drought, and that resources are limited. He said that the department is working extensively with rural agencies to promote preventative measures. He also stressed that the department is not "stingy" with resources when a call is received. He said that it is much more productive to stop a fire in its initial stages than to underestimate its potential to spread. Mr. Bass said that the Eugene Fire Department has traditionally concentrated its training on structural fires. Currently, fire fighters are undergoing wildland fire training. He said that the department is considering utilizing helicopter companies to assist in locating spot fires, which are common among wildland fires. In response to a question from Mr. MacDonald, Mr. Bass said that "crowning" refers to fires spreading over large distances over the tops of trees, where there is little moisture. Mr. Bass presented a video that contained several examples of recent forest e fires. The video also introduced a new compressed air foam system, which promises to be much more efficient at dousing fires than water. In response to a question from Mr. Green, Mr. Bass said that the foam does no damage to homes when applied on the exterior as a preventative measure. He added that typical prevention measures damage homes and create runoff problems because toxic chemicals are used. Mr. Bass said that the City is requesting to purchase two additional compressed-air foam units. Mr. Rutan wondered whether a ban on fireworks might be appropriate this sum- mer. Mr. Gleason pointed out that such a ban is difficult to enforce if it is not statewide, and added that the 9-1-1 line would most likely be flooded with calls if such a ban were in place. Mayor Miller suggested that the City and the council encourage residents not to use fireworks in the south hills area. He added that other areas could be designated as appropriate for fireworks use. The City Council agreed, by consensus, to approve the request for $260,000 to be used for Fire and Emergency Services, as outlined in the June 12, 1992, memorandum from the City Manager. Mr. Boles expressed support for the request, but added that a long-term plan is needed. Ms. Bascom said that implementation of the Urban Forest Management Plan will offer long-term management of this issue. Ms. Ehrman supported the e MINUTES--Eugene City Council June 17, 1992 Page 8 11:30 Work Session e expenditure, but said that she would have preferred the costs be incurred incrementally, beginning five years ago. He added that compressed-air foam will aid in all fires, not just wildland fires. In response to a concern from Ms. Ehrman, Mr. Gleason said that if other areas request assistance from the City of Eugene, the compressed-air foam units would not be part of the assistance (unless Springfield is requesting assis- tance). Mr. Gleason emphasized that the public must be educated on the concept of fire perimeters, which are the areas around structures that must be kept clear of trees and other vegetation. He said that fire fighters decide whether to try and save a structure based on how well its perimeter is kept clear. Mr. Boles requested that the council discuss at a later date more specific roles that the Councilors should play in their respective wards. The meeting adjourned at 2:30 p.m. Respectfully submitted, e o/~. Micheal Gleason City Manager (Recorded by Kathy Varner) cclla17 .062 e MINUTES--Eugene City Council June 17, 1992 Page 9 11:30 Work Session