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HomeMy WebLinkAbout04/05/1978 Meeting - tit e MINUTES EUGENE CITY COUNCIL April 5, 1978 Adjourned meeting from March 29, 1978, of the City Council of the City of Eugene, Oregon, was called to order by His Honor Mayor Gus Keller at 11:30 a.m., April 5, 1978, at King's Table, Oakway Mall, with the following Counci- lors present: D. W. Hamel, Ray Bradley, Tom Williams, Eric Haws, Jack Delay, Scott Lieuallen, Brian Obie, and Betty Smith. 1. Items from Mayor and Council A. Air Quality Maintenance--Mr. Delay expressed concern regarding the City continuing its efforts in terms of air quality in the area. He was disturbed regarding a recent series of setbacks. He felt there was a lack of public comprehension of the entire problem and how it relates to the economic growth of the area, and felt a work session between Council and staff directed toward enlightening the community (in terms of long-range goals) was necessary. He suggested the need for a comprehensive overview to see to what extent the City is being abused. He also felt the legislature was the inappropriate vehicle to develop standards for air quality. Also, he disagreed with the notion that it was a good idea to allow considerable burning this summer to determine what amount of smoke is bothersome. Manager concurred with many of Mr. Delay's statements, and felt it appropriate for City Attorney to make a presentation. He agreed there was a need for a stepped-up public information program, with the community being better informed of the danger to Eugene's entire economy. He noted Stan Long would be present at the April 12 meeting to make such a presentation. Mayor Keller agreed, noting the City has had some problem in working out a solution with EPA. City officials are willing participants, but it cannot be a one-sided discussion. B. Residency of Members of Commissions and Boards--Mr. Hamel requested this be an agenda item April 19. Manager noted information was being gathered and would be appropriate for presentation at that time. C. Public Hearing for T-2000 Plan--Ms. Smith suggested Council hold a special meeting for public hearing on this one item to allow enough time for public input. She suggested the date of May 1. It was consensus of Council a special meeting for a public hearing on T-2000 would be scheduled with the Mayor and Manager determi- ning the date. 4/5178--1 1'''' ,D. Monday Meeting Adjournment Time--Mayor Keller reported a poll had ~ been taken of Councilors with 7:1 vote in favor of adhering to the ... 10:30 p.m. adjournment time. E. Community Schools Coordinating Committee--Mayor Keller received a request from School District 4-J for Council appointment, and asked Councilors to submit suggested appointees to him. F. American Institute of Architects--Mayor noted a request from the group for Council representative to meet with the group to parti- cipate in the workshop studying walkway covers for the mall. Any Councilor so interested should let the Mayor know. G. Appointments--Mayor Keller distributed two appointments: Mike Marczuk, 863 East 13th, to the Masonry Board for one-year term endi ng January 1, 1979; and Larry Hubbard, 1840 West 11th, ex-officio member to the Sign Code Board of Appeals for a term ending April 1, 198U. He noted Council would take action on the Sign Code Board of Appeals appoint- ment at its April 12 meeting. H. Agenda Changes--Manager noted item X regarding lease agreement with Witzig would be eliminated from today's agenda. I. Handicapped Commission--Letter of resignation from Pat Hocken and staff's letter to Paul Martinez distributed. Mr. Hamel moved, seconded by Mr. Bradley, to accept resignation of Pat Hocken and affirm staff dropping Paul Martinez from commis- sion; and appoint Clarence Townsend, 271U Onyx, for a term ending 1/1/80 and Ralph Bradley, 66 West 29th, for a- term ending 1/1/81. Motion carried unanimously. tit J. MAPAC Appointments--Manager noted at its special meeting March 29, Council did not take final action by motion to approve the appointments. Mr. Hamel moved, seconded by Mr. Bradley, to approve appointments of John Morrison and Joe Olexa to MAPAC. Motion carried unani- mously, with Mr. Haws abstaining. II. Continuation of Discussion Re: Civic Center Project Memo dated April 4, 1978, from Civic Center Commission with recommended motion distributed. Manager said Civic Center Commission had met Tuesday, April 4, and was forwarding its recommendation as outlined in April 4 memo to Council regarding a bond issue election to be scheduled June 27. - 4/5/78--2 ~'5 -- les Anderson, Chairman, Civic Center Commission, reviewed memo for Council. It requested an election date be scheduled June 27 for an $18.5 million sale of general obligation bonds to finance the entire Civic Center Project. It was hoped Council would approve the motion and recommendation so the citizens of Eugene would have the opportunity to vote on the issue and to enable a group of citizens to help move forward with plans for the project. Mr. Haws requested the vote from the Commission on the recommendation; also, he wondered if this resolution were passed whether it indicated Council was approving $18.5 million project or more. Mr. Anderson said the vote was 12:1. It would be difficult to pinpoint the exact figure until more complete plans have been drawn. The recommendation is asking that $18.5 million appear on a ballot and funds be authorized for issu- ance of bonds. He noted there would be other sources for funding of the project. The resolution was asking permission to spend up to $18.5 million and was requesting support for the total project. e Mr. Obie clarified for Mr. Haws the $18.5 million would be the only amount requested from the voters. There would be other sources for funding to build the project as it has been conceived. Council's decision today would be to allow the Eugen~ citizens the right to vote on the project. He felt Council had no choice in this regard, considering the amount of time and money spent to date on the project. He encouraged Council to support the Commission's recommendation on the basis that, at this point, this is the best program which can be offered to the citizens and they have the right to decide if they want that type of facility. Mr. Delay expressed concern regarding the Commission's discussion in arriving at the $18.5 million figure. He wondered if other sources would be used to provide the remainder of the facility, or if the facility would be pared down to stay within the $18.5 million figure. Mr. Obie said the $18.5 million figure was basically the amount it would take to build the auditorium and theater portions of the project. If the commitment is made by the voters to support that, then the poten- tial for a hotel in the vicinity would be more feasible and the use of tax increment or EDA funding would be used to complete the facility. Mr. lieuallen said the commission was committed to spending the money for the facility in a very careful manner and would be attempting to stay within the money allocated. The resolution requested from Council would simply express Council's intent to support the Civic Center Commission in its recommendation of building the total project rather than just one portion of it; and the use of tax allocation bonds and EDA funds would be used to complete the facility. e 4/5/78--3 2.1& Mr. Williams questioned the significance of the June 27 date, wondering ~ whether it could be put on the primary or general election where there ,.., would be a more substantial voter turnout. Mr. Anderson said the Commis- sion had discussed such possibilities at great length. However, a delay in presenting the bond issue to the voters would not help the project. He said the project, as presented, is one that will be essentially understood by the voters. A group of people in the community now are willing to work on the project, and it was thought the June 27 date would give these people the opportunity to get the information out to the voters. Another very important issue was the cost, with $135,000 being added monthly by inflationary costs. If the vote were in November, that additional money would be wasted and could have been used elsewhere. As to holding the election earlier, Mr. Anderson said there were certain other conflicts, so it was felt the June 27 date to be more appropriate. Mr. Haws asked Council to take a look at the other options that were available for the amount of money that was being requested for this project. He suggested money could be used for additional swimming pools, park acquisition and development, tennis courts, urban beautification, ball fields and soccer fields. He felt the community would want those kinds of programs rather than the expensive project being proposed. Mr. Anderson clarified for Mr. Haws the process of Council today would actually be a vote as to whether or not the citizens in the community are entitled to make that choice. He said if Mr. Haws were to vote against the recommendation today, he would in fact be voting against giving the citizens in the community the opportunity to make their wishes known. He felt a choice .between those items Mr. Haws listed and such a project being ~ recommended were ones that should be debated among the community. The ~ Civic Center Commission has to be able to face those arguments, comparing needs among the community, but the opportunity to allow voters to express their choice is at issue today. Mr. Del ay and Mayor Kell er agreed the commi ssi on had done very fi ne work to date, and it was time to allow the voters to make their wishes known. Mr. Hamel moved, seconded by Mr. Bradley, to place on the June 27, 1978, a ballot measure seeking approval of the City's issuance and sale of general obligation bonds in the amount of $18.5 million for use in the construction and development of the Civic Center Project. Mr. Haws moved, seconded by Mr. Bradley, to amend the motion to delete the issue of general obligation bonds and substitute the financing process through a business license tax. Mr. Haws said it seemed this project was designed to attract a hotel in the area and it would be best, in his belief, that people who would be benefitting should be standing the cost of such a project. Ms. Smith said she would oppose the motion, as Council had appointed a Commission asking it to bring its recommendation and that form of financing had not been included in the recommendation. She felt it to be inappropriate. " 4/5/78--4 ll1 - Mr. Anderson said, in regard to the question of who benefits from the project, the architects who had been working on the project said there is a great deal of community support for cultural development within the community. It was felt this facility would be used widely by the people in the community. There are a large number of groups who are supporting the project because it is not a case of merely benefitting some in terms of dollars, but rather contributing to the cultural life of the community. He added this was a missing link in that there is no adequate facility now available. He said another side benefit would be that more people would be downtown, thus benefitting the entire city. Mr. Lieuallen noted the people in the arts community are very interested in the facility, but are also concerned about rates for use being too high. However, he noted that would be a policy to be determined later on. He had not heard that the facility has changed from what it was in the beginning. He had heard some constructive criticism and was inter- ested in knowing Mr. Haws' sources of those in the arts community not satisfied with the proposed facility. Vote was taken on the amendment to the motion which failed, with all Councilors present voting no, except Mr. Haws voting aye. Vote was taken on the main motion, which passed unanimously. 'e Res. No. 2879--Concerning Civic Center; adopting five recommendations made by Civic Center Commission April 4, 1978, was read by number and title. Mr. Hamel moved, seconded by Mr. Bradley, to adopt the resolu- tion. Motion carried unanimously. III. Port District Discussion--Planning Department memo, dated March 31, 1978, distt'ibuted. Manager noted Council had not yet taken a position either for or against the establishment of a port district. However, the Chamber of Commerce had I'equested such a district be formed. Prior to the Chamber of Commerce presentation, Mr. Porter would discuss legal interpretations for Council. John Porter, Planning Director, said some research had been done'regarding the varying laws supporting a port district. He said it is staff's understanding that the Oregon Economic Development Commission has a responsibility to act favorably before any port district is established in Oregon, but they are just one of the participants in the process. He said after that approval, the County Commissioners in such a district would have to approve; if any part of a city is included, then the city would also have to pass a resolution approving. A port district may levy a tax of one-quarter of one percent of the true cash value of property within the district; it also has a two and one-half percent of true cash value levying authority if approved by the voters. e 4/5/78--5 218 The process for establishing a port district was described. First, the governing body is appointed by the Governor and then after an election within the district the persons serve on a rotating basis. Mr. Porter noted he had not seen the METROPORT proposal, but noted it had not been approved by the Economic Development Commission and there would be a public hearing April 14. A letter was sent to the Commission stating the City Council had taken no position on formation of a district and felt it premature to recommend whether or not one should be formed. If such a district included Eugene and Springfield, both those municipalities would have to give approval. Joyce Benjamin, City Attorney's office, said the City would have to adopt a resolution prior to the submission to the County Commissioners, similar 'to the process used in setting up the Wastewater Management Service District. However,the Boundary Commission would not be invoJved. e John Amundson, Chamber of Commerce, said he had heard from the Economic Development Commission that the letter received from Eugene had indicated a negative posture on the part of the City for development of a port district. However, he did not have a copy of the letter. Manager clarified that the letter said the Council had taken no position, but the consensus was not generally supportive. Mr. Amundson then reviewed for Council the concept of METROPORT. He reviewed the past efforts made by the Eugene-Springfield chambers of commerce who were most interested in trying to develop a viable economic alternative for the area. Alternatives were considered, including an ecomomic improvement district, an economic development district, and a port district. The group preferred the port district and continued to ~ pursue such a development. That proposal for a port district has been submitted to the Economic Development Commission as it was felt to be a meaningful direction to maintain a viable economic health for the commu- nity. Boundaries of such a district would b~ the Eugene-Springfield- Bethel School District boundaries. He said this area has an assessed value of $2 billion, with a projected budget of $159,550 for the first year (six cents per $1,000 tax levy). The maximum amount a port district can generate is $2.50 per $1,000.00; however, no port districts in Oregon have assessed even one-third of that amount. He noted there were 23 port districts in Oregon, with all being maritime and none being dry land, as METROPORT would be. However, he noted port districts were not a unique economic vehicle and cited there were 96 in the state of Washington. The proposal before the Economic Development Commission will be for a public hearing April 14. Upon approval by the Commission, the chambers will continue to pursue such a district and have it placed on the November ballot. It was felt the citizens should have the opportunity to select the manner in which they want economic development to be achieved. He noted the following members of the chambers of commerce available to answer questions: Ray Walder, Austin Ritchie, Wes Morgan, and Doug McKay. - 4/5/78--6 ~Iq e Ms. Smith questioned whether the persons pursuing the port district had been working in any direct relationship with those working on the economic improvement district. Ray Walder said he was working directly with both groups. However, he said the citizens' committee working on EID had failed to have a quorum and, therefore, had not yet adopted a set of bylaws which would allow establishment of the commissioners for such a district. Mr. Morgan indicated he had talked last week with Commis- sioner Bob Wood. He clarified for Council the commission would be a policy-making body, whereas the port authority would be an acting agency with a right of buying land, etc. He felt there was no real conflict between the two, with the exception the commission is not accountable to the people, but a port district would be. e In response to a question from Mr. Obie, Mr. Amundson said a port district has rather extensive powers. Resources would come from the Economic Development Commission, the State, loans and grants; or sources could be obtained from the issue of revenue bonds which are highly acceptable on the open market. He al so noted the port di strict woul d be allowed to issu~ unlimited bonds for pollution control. A port district can acquire land, put in improvement systems (sewer and water), build roads and buildings. The district can develop management programs for resources of mcmpower opportunity, maintain convention centers, work and own land joint~y with other port districts. He cautioned one danger was assuming that a port district would do all these things. The reason it has such an array of power is to allow it to be an implementation agency and he said it was not bound by city government powers. Mr. Obie wondered how supporters of a port district would answer the charge that this would encourage more growth in Eugene. Mr. Amundson did not feel port districts should address that question as people are coming into Eugene and will continue to do so as it is an attractive area in which to live. It was the feeling there was no need to pursue increased population or new industries as the area was not ready to accommodate them. However, the group pursui ng a port di strict was not satisfied with the belief that the economic situation in Eugene can be solved by federal programs. It was felt there had to be some comparable growth and some basic industries to complement the service and govern- mental base of its present economy. Mr. Del ay requested staff recap the position on the proposal, and focus on the question if the City wants to encourge another taxing entity that would be beyond control of the City. Mr. Walder said in regard to staff's comml~nts, he did not think any entity could violate the City's goals and guidelines, but rather would have to work within those goals and guide- line-i. In regard to Mr. Obie's concern, Mr. Walder said it was not the intent to try to attract industry to bring in people, but rather to attrdct diversification of industry for a more heal thy economy. e 4/5178--7 2..1.0 Ms. Smith said as she recalled, Council did not go an record as taking a position. She felt Council was not prepared to take action on this issue ~ today, but preferred to have more information available for Council. Mr. Lieuallen said he was prepared to take action today as he was opposed to the formation of essentially another general purpose government that would not be bound by local guidelines and policy. Mr. Amundson said no action was required by Council until the State Economic Development Commission had taken action on the proposal for formation of the port district. He felt there had been misleading information regarding the district and its powers, as all agencies in the state have to operate under the same guidelines. Mr. Morgan said it had not been stated that a POy't district would have any powers that would exceed local powers or guidelines and goals set by the City. A port district has to conform to every general plan that exists. He said it would be an acting agency within the framework of the local guidelines and laws. There was some discussion by Council as to whether staff should respond at this time or prepare further information for Council to consider and take action at a later date. Mr. Hamel suggested the representatives from the Chamber of Commerce get together with City staff to list the pros and cons of the creation of a port district and report back to Council. Mayor Ke11E'r said he would like included in that response some staff answers to questions raised at today's session, particularly any new issues. Manager reminded Council of the Economic Development Commission's public hearing scheduled April 14, and wondered what the City's posture should ... be. Mr. Porter said testimony could only report the City Council is not ~ ready to act to either support or to not support formation of such a dis- trict. He requested a copy of the Chamber of Commerce proposal. His major concern was- the proposed district would be outside the urban service bounda ry . Mr. Amundson wanted to have deleted from the Planning Department's letter a statement he felt to be inappropriate: II... violate statewide goals and guidelines, 1974 Community Goals statement, and 1990 General P1an.1I Mr. Porter said that was included to call the Council's attention to that concern that the 1990 General Plan did not favor creating a special dis- tricts with broad powers, but rather a general purpose government should provide services. He noted the phrase IIpotential1y could vio1atell was the key phrase. It was consensus that the Chamber of Commerce representatives and Planning Department staff would meet to coordinate information to be returned to Council. ^ short break was taken. Mr. Haws left the meeting. - 4/5178--8 211 e Manager said Council could move through the remalnlng routine items, except VII, which would be considered at the end of the meeting. IV. Authorization for Contract for City Auditor--Finance memo, dated March 30, 1978, distributed. Manager noted the Council subcommittee (Williams and Obie) worked with the staff on the recommendation. The recommendation was that Peat, Marwick, Mitchell & Co., from Portland, be hired as City auditors for a sum not to exceed $21,800 in the first year. This would mean a change from Coopers & Lybrand who have been the auditors for the City for many years. Both firms are very capable, but PMM has submitted a much lower bid. Mr. Obie said staff had done a very thorough and professional job in reviewing all the proposals and had made a broad search for a good audi- tor. He was dissappointed in the dollar difference between the two firms because he leaned toward hiring a locally-managed firm, and toward keeping the same auditing firm. Mr. Williams agreed with most of Mr. Obie's comments. He was not sure the amount of money would be saved as the first year a great amount of staff time would be dedicated toward training the auditors with the system. He felt it was a question as to whether the City was really going to save money. - Ms. Smith felt it best to hire a local firm and questioned the distance and money that would be spent for travel. It was noted that travel money was included in the contract. Sherm Flogstad, Finance Director, said the distance and location was a factor and it was felt Coopers & Lybrand might be more readily acces- sible. He said the memo had outlined the disadvantages and advantages for E'ach one, noting they were pretty well balanced. Staff felt it could work with the staffs of either firm and the cost.was the main reason for making the recommendation for change. Mr. [;radl ey questi oned the frequency of use by the auditor and whether it would be just for the fiscal audit. Mr. Flogstad said the main use would be for preparation of a preliminary audit in May and a final audit after the first of the year. He noted the bid by PMM was maximum; however, CoopErs' & Lybrand's bi d woul d be the amount pl us thei r out-of-pocket expenses. He said use of the auditors would be mainly for auditing with telephone use for any other contact. The contract specified the firm would come every other month to Eugene. There might be some special projects that the auditors would be used for also. However, PMM had emphasized it would not exceed the $3,800 estimate to provide regulatory and compliance requirement audits. - 4/5/78--9 2.22.. Mr. Bradley raised the question if the prices were higher in the next two years that the City might be faced with changing auditors again to get a ~ lower price. Mr. Flogstad said the proposals included that the following ..., two years would not be increased greater than the Portland CPl. After the third year it was not known what the amount would be. He noted the dollar portion of the $7,000 to be saved might be eaten up with staff time the first year, but after the first year that cost will not be there. Mr. Hamel wondered if PMM might refuse some services because they wete not listed in the contract. Mr. Flogstad said that had been discussed and as much work as possible will be handled by phone. However, if special projects were added outside the audit, those will be charged separately. Mr. Delay wondered what the overall assessment of total impact on staff time would be and whether it would warrant the saving of $7,000. Mr. Flogstad said the following two years would be a substantial difference, amounting to $14,000. He continued there were definite advantages to be said for both. Regarding Coopers & Lybrand, the staff was accessible and already knows the City's system. However, one concern regarding hiring PMM was getting a new look at the system and perhaps offering new methods. Mayor Keller said it appeared proposals had been requested and bids had been received: Considering the taxpayers' dollar, it seemed appropriate for Council to accept the lowest bid. He questioned if Council did not want to change auditors, why it had requested going through this process. Mr. Hamel moved, seconded by Mr. Bradley to authorize acceptance of a ~ contract with Peat, Marwick, Mitchell, & Co. for city auditor. ~ Mr. Bradley was going to vote in favor of the motion because he liked the idea of having a look at the City's system. Mr. Williams said he would vote in favor because he did not think it would cost any more, staff wants to do it that way, there is no reason to believe that PMM cannot do the work, and he believed the taxpayers will be protected. Vote was taken on the motion, which carried unanimously. V. Authorization of Transfer of Funds--Memo from budget officer, dated March 29, 1978, distributed. Res. No. 2865--Authorizing transfers of appropriations in General Fund, General Revenue Sharing Fund, and Equipment Service Fund wa s read by number and ti tl e. Mr. Hamel moved, seconded by Mr. Bradley, to adopt the resolution. Roll call vote. Motion carried unanimously. Mr. Delay requested, in connection with one of the items in this transfer, that at some later date the staff report on the recent changes with respect to the IFS data processing project. -- 4/5/78--10 213 . VI. Authorizing Condemnation of Property for Extension of Runway Clear Zones at Airport--Public Works memo, dated March 30, 1978, and map distributed. Manager said this request would authorize acquisition of land and air rights to conform to FAA clear zone requirements. The request was approved by the Airport Commission and a voter-approved bond issue November 8, 1977. Bob Shelby, Airport Director, said it included four parcels: On the southwest corner a six-acre and 23-acre parcel; on the northeast corner a 33-acre and 156-acre parcel. It was noted final authorization for acquisition will be brought back to Council. Mr. Williams questioned City Attorney regarding a conflict of interest and it was concluded there was none. Res. No. 2866--Authorizing the institution of proceedings in eminent domain for acquisition by condemnation of property interests for expansion of Mahlon Sweet Field runway clear zones was read by number and title. Mr. Hamel moved, seconded by Mr. Bradley, to adopt the resolution. Roll call vote. Motion carried unanimously. e VII. Calling Hearing May 10, 1978 Re: Easement Vacation--Map distributed. C.B. 1648--Calling public hearing May 10, 1978 reo Easement vacation located south of Murnane Street between Echo Hollow Road and Juhl Street (Idea Builders) (EV 77-7) was read by council bill number and title bill only, there being no Councilor present requesting it be read in full. Mr. Hamel moved, seconded by Mr. Bradley, 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. Motion carried unanimously and the bill was read the second time by council bill number only. Mr. Hamel moved, seconded by Mr. Bradley, that the bill be approved and given final passage. Roll call vote. All Councilors present voting aye, the bill was declared passed and numbered 18157. VIII. Improvement Petitions Res. No. 2867--Authorizing initiating procedure for street paving, sanitary sewer, storm sewer, and pedestrian way construction to serve Candlelight Park Fourth Addition was read by number and title. . 4/5/78--11 2~ ~ Mr. Hamel moved, seconded by Mr. Bradley, to adopt the resolution. Moti on carri ed unanimously. . Res. No." 2868--Authorizing initiating procedure for street paving, sani- tary sewer, storm sewer, and pedestrian way construction to serve Souza Park Third Addition was read by number and tit1 e. Mr. Hamel moved, seconded by Mr. Bradley, to adopt the resolution. Roll call vote. Motion carried unanimously. Res. No. 2869--Authorizing initiating procedure for street paving, sani- tary sewer, storm sewer, and pedestrian way construction to serve Souza Park Fourth Addition was read by number and tit1 e. Mr. Hamel moved, seconded by Mr. Bradley, to adopt the reso1ution~ Roll call vote. Motion carried unanimously. IX. Liquor License: Change of Ownership Murphy & Me, 1475 Franklin Boulevard, (RMB); from Ted Murphy to LRH, Inc., 1717 Centenni a 1 . Manager said all papers were in order and staff recommended approval. Mr. Hamel moved, seconded by Mr. Bradley, to forward with approval 4IIJ to OLCC. Motion carried unanimously. X. Approval of Minutes Mr. Hamel moved, seconded by Mr. Bradley, to approve Council minutes of March 29, 1978, and special Council meeting minutes of March 29, 1978. Roll call vote. Motion carried unanimously. XI. Amendments to Multiple Tax Exemption Ordinances--HCC memo, dated March 24, 1978, distributed. Manager said C.B. 1646 was a routine change in wording to conform exactly with statutes. Council Bill 1645 made the same changes, plus a request by the applicant to be released from costs of an expensive energy conserving heating and cooling system which had been classified as a public benefit. It was estimated by the applicant that inclusion of this system would raise the rents $30-$40 per month and he could not proceed with the project unless that aspect were deleted. .. 4/5178--12 lA5 J - Betty Niven, Chairman, JHC, spoke for the applicant. She indicated Council action was requested today to avoid inflating costs. She noted that when the project had been initially approved by JHC, the only public benefit included was community rooms. JHC was ready to approve the application on that basis. However, Mr. Tomlinson had been so enthusiastic about the proposed heating system that JHC felt that should be allowed as a public benefit also. Subsequently, when the applicant was costing the system out, he found out it was too expen- sive. He was now asking for waiver of that benefit. The other public benefits remain including 12 units for the handicapped. The heating system to be substituted would be forced air and the project will be very well insulated. Mr. Delay expressed concern, especially in light of the lack of clarifi- cation of what is a public benefit. He felt there should be some offset policy or proposal for extending other public benefits if this one were allowed to be deleted. Ms. Niven said she felt the applicant would be willing to extend the time period of the public benefits. e Mr. Obie questioned the $250 per month rent for a one-bedroom apartment. Ms. I~iven said it should be remembered this is an elevator building and is in Fire District No.1, both of which add to the cost. She said it was hoped that after it was in existence for a year, it would become eligible for Section 8, HUD, for existing housing program. She reiterated that Mr. Tomlinson would appreciate Council taking action today. There was some discussion among Councilors that it might be more appro- priate for Mr. Tomlinson to appear before Council to discuss any changes directly. Assistant Manager said if Council wanted to extend the time for use of public benefits, it could make a motion with the condition that an agreement be reached between City Manager and the applicant. It was consensus of Council that C.B. 1645 would be held over to April 12 meeting to allow Mr. Tomlinson to meet with City Manager to discuss additional proposals. Ms. Niven suggested perhaps Mr. Delay and Mr. Lieuallen might like to sit in on that discussion. Mr. Lieuallen said he would rely on staff to make those determinations. However, he did question what an exten- sion of the public benefit for five years would mean and questioned whether that was a proper request. He wondered if Mr. Tomlinson might have some other proposals. Ms. Niven said it seemed unlikely, but per- haps that might be possible if a clear definition of public benefits were made. She noted that Mr. Tomlinson already was providing public benefits in excess of what anyone could think of or more than could be asked of others. She also said Mr. Tomlinson was going to hold the rent to $250 a month, even with a different heating system. - 4/5/78--13 Zl' C.B. 1646--Concerning Diversified Development Company application for Multiple Unit Property tax exemption; repealing Ord. No. ~ 18105; approving application No. MEP 77-2 was read by council .., bill number and title only, there being no Councilor present requesting it be read in full. Mr. Hamel moved, seconded by Mr. Bradley, 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. Motion carried unanimously and the bill was read the second time by council bill number only. Mr. Hamel moved, seconded by Mr. Bradley, that the bill be approved and given final passage. Roll call vote. All Councilors present voting aye, the bill was declared passed and numbered 18156. XII. Public Hearings Scheduled April 10, 1978 A. Systems Development Charge: Amendments B. Abatement at 2043 Ohio Street C. Liquor License New Outlet: Drive Marie Callender's, 1300 Valley River D. Rezon;ngs - 1. Property located east side of Villard Street, north of 15th Avenue from R-1 to R-2 (Daugherty) (Z 77-43) 2. Property located west side of Lincoln Street between First and Second avenues from M-2 to R-3 (Vandenberg) (Z 78-1) E. Public Works Bid Awards Upon motion duly made, seconded and passed, the meeting was adjourned. c~nr~~ Ci ty Managl~r DT:so/CM7a14 - 4/5/78--14 2.1.1