Loading...
HomeMy WebLinkAbout11/08/1978 Meeting ~ " M I NUT E S e EUGENE CITY COUNCIL November 8, 1978 -------- ..- Adjourned meeting from November 6, 1978, of the City Council of the City of Eugene, Oregon, was called to order by Council President, D.W. Hamel, 11:30 a.m., November 8, 1978, King's Table, Oakway Mall, with the following Councilors present: Ray Bradley, Eric Haws, Jack Delay, Scott Lieuallen (arrived late), Brian Obie, and Betty Smith. Mayor Gus Keller and Councilor Tom Williams were absent. -~--. ---- -- I. Items from Mayor and Council A. Eric Haws--Mr. Haws was congratulated on his reelection and he said it was nice still to be a Councilor. B. School District 4-J Superintendent Selection--Mr. Bradley felt a City representative should be included in the Selections Committee for interviewing superintendent applicants, as the City has an interest in the new school superintendent. C. Metro Plan Policy Update Committee--Meeting scheduled Thursday, e November 9, 1978, 7 a.m., Gingerbread House, Springfield. D. Consideration of New Councilors Taking Office--Mr. Bradley suggested the Charter be amended to allow new Councilors to take office imme- diately following their successful election. Manager noted there might be a problem between the primary and general election, in that there is the possibility of a write-in campaign during the November election. He said also there could be a Constitutional problem. Assistant Manager noted a City Councilor could resign with the under- standing that the newly elected Councilor would take office. Mr. Lieuallen arrived. Manager said staff will explore the possibility of Councilors taking office prior to January. E. Community Schools Coordinating Committee Appointments--Memo distri- buted with Mayor's nomination of Lori Loehr, 1312 Piper Lane, to fill a term ending April 1980; and Ann Mention, 2695 Cresta De Ruta, for a term ending April 1981. Mr. Bradley moved, seconded by Mr. Delay, to approve the appointments. Motion carried unanimously. e 11/8/78--1 '20 0' F. Meeting Announcements-- Room Tax Committee, 4 p.m., November 8, 1978, Mayor1s Office. e Part II of the Community Goals Mini-Conference, Thursday, November 9, 7:30 p.m., Council Chambers. G. Appointments to Boards and Commissions--Manager noted the citizen interest applications are to be submitted by 5 p.m., Monday, November 13, 1978. Those will be transmitted to Council Friday, November 17. It is hoped that at the Wednesday, November 22 meeting, Council could schedule a process for interviews for making those appointments. II. Kiosks on the Mall--Memo distributed Charles Kupper, HCC Director, said the matter had first been brought to Council three years ago. The Mall Shops Committee gave a status report which was accepted by Council. After that acceptance, the issue of temporary shops on the Mall was put into limbo. Several months ago, Council authorized push carts on the Mall which have been very successful. Because of this success, there has been interest in a program for perma- nent improvements. A committee consisting of Downtown Development Board, Eugene Downtown Association, Parks Department, and Eugene Renewal Agency members met several times. They discussed the issue regarding permanent kiosks. The major problem is financing of the kiosks. It was deci ded the Council should give direction. - The issues involved the following: An attempt to create a permanent commercial space for a kiosk on the Mall directly west of the fountain; approval for authorizing space for public bidding; and approval of a method for financing. Mr. Kupper recognized the memo from the Finance Director suggesting that use of existing Downtown Development District funds be used for such construction. However, there was some concern of borrowing the money for only one year and thus not allowing amorti- zation over a period of time. In response to a question from Mr. Hamel, Mr. Kupper said the price per unit would depend on whether the City or a private developer would do the construction. The City had estimated a cost of $20,000 for 300 square feet, including utilities; however, it might be possible that a private developer could do it more cheaply. Dr. Robert Loomis, President of the Downtown Development Board, said there was a possibility ODD funds could be used for financing. However, he noted there were other projects that had higher priority. There was some concern about paying back the $20,000 in one year and not being able to amortize the debt. He said the Board would have to consider the possibility in light of its priorities. He felt the Board would rather amortize the debt over a period of time. Mr. Kupper mentioned one problem regarding a private developer assuming the financing. He said there was a possibility a bank might not loan e' 11/8/78--2 '21 ., for such construction as this is a City-owned site. If that were the e case, then the developer would have to raise the money himself which might reduce the number of persons who would bid on the project. He said he would rather see financing done in another way. Mr. Obie approved of the proposal with the inclusion that staff be allowed to find the most suitable method of finanCing possible. Mr. Kupper requested direction from Council as to who would make the final selection of the tenant: Councilor the Downtown Development Board. It was consensus of Council that the Board was in a better position to make that decision. Mr. Bradley said he felt it would be better to have the ad hoc committee, which consisted of a broader membership, make the decision. Mr. Lieuallen did not feel that was necessary. He felt it important for Council to be involved in policy matters, but that the selection of a tenant was not a policy decision. He supported the DDB making that decision. Mr. Obie moved, seconded by Ms. Smith, to adopt the staff recommendations; to have staff seek the best possible finanCing agreement; and to give the Downtown Development Board respon- sibility for final decision on the tenant. Mr. Bradley moved to amend the motion to eliminate the Downtown Development Board having final decision on the tenant. Motion died for lack of a second. e Mr. Kupper said the financing agreement would come back before Council only if it were necessary to subsidize or if it were impossible to get a self-amortizing loan agreement. Manager noted also that it would come back before Council for approval if there were any City transfers of funds included. Vote was taken on the motion which carried with all Councilors present voting aye, except Mr. Bradley voting no. III. Routine Items for Council Approval A. Council Minutes November 1, 1978-- Mr. Bradley moved, seconded by Mr. Delay, to approve Council minutes November 1, 1978. Motion carried unanimously. B. Segregation of Assessment: Located end of cul-de-sac on end of Norkenzie Road; Applicant: ~ric A. Lowry, 2978 Norkenzie; (SE 78-5) Mr. Bradley moved, seconded by Mr. Delay, to approve the segre- gation of assessment. Motion carried unanimously. - 11/8/78--3 '2'2. < c. Improvement Petitions Res. No. 3037--Authorizing initiating process for street paving and e storm sewer construction within Tiny Subdivision (1530) was read by number and title. Mr. Bradley moved, seconded by Mr. Delay, to adopt the resolution. Motion carried unanimously. Res. No. 3038--Authorizing initiating process for sanitary sewer construction within Banyan Subdivision and sanitary sewer construction 350 feet south of Cal Young Road from Hammock Street to 240 feet east (1581) was read by number and title. Mr. Bradley moved, seconded by Mr. Delay, to adopt the resolution. Motion carried unanimously. Res. No. 3039--Authorizing initiating process for street paving, sanitary sewer, and storm sewer construction within Capri Subdivision (1593) was read by number and title. Mr. Bradley moved, seconded by Mr. Delay, to adopt the resolution. Motion carried unanimously. Res. No. 3040--Authorizing initiating process for street paving, e sanitary sewer, and storm sewer construction within First Addition to Horizon West Subdivision (1595) was read by number and title. Mr. Bradley moved, seconded by Mr. Delay, to adopt the resolution. Motion carried unanimously. Res. No. 3041--Authorizing initiating process for street paving, sanitary sewer, and storm sewer construction within Seychelles West IV Subdivision (1626) was read by number and title. Mr. Bradley moved, seconded by Mr. Delay, to adopt the resolution. Motion carried unanimously. Res. No. 3042--Authorizing initiating process for sanitary sewer construction in Arcadia Street from 400 feet north of Harlow Road to 1500 feet north of Harlow Road (1687) was read by number and title. Mr. Bradley moved, seconded by Mr. Delay, to adopt the resolution. Motion carried unanimously. e 11/8/78-- 4 12.'3 --...--- , D. Public Hearings tit l. Water withdrawal from Bethel Water District (Jessen Drive area) Public hearing was held with no testimony presented. CB 1792--Authorizing withdrawal from Bethel Water District, that portion annexed by Final Order No. 560 of Boundary Commission (Jessen Drive both sides of Elizabeth)(Hein, A/I 78-5) and declaring an emergency was read by number and title only, there being no Councilor present requesting it be read in full. Mr. Bradley moved, seconded by Mr. Delay, 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. Bradley moved, seconded by Mr. Delay, that the bill be approved and given final passage. Roll call vote. All Councilors present voting aye, the bill was declared passed and numbered 18301. 2. Street Name Change: McMillan Avenue to Karyl Avenue; located from Chambers Street to McKendrick Street, between West 29th Avenue and McLean Boulevard (SC 78-4) -- e Unanimously recommended by Planning Commission September 25, 1978. Public hearing was held with no testimony presented. CB 1793--Authorizing street name change located from Chambers Street to McKendrick Street, between West 29th Avenue and McLean Boulevard (McMillan Avenue to Karyl Avenue)(SC 78-4) and declaring an emergency was read by number and title only, there being no Councilor present requesting it be read in full. Mr. Bradley moved, seconded by Mr. Delay, 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. Bradley moved, seconded by Mr. Delay, that the bill be approved and given final passage. Roll call vote. All Councilors present voting aye, the bill was declared passed and numbered 18302. IV. Sale of City-Owned House, 1442 West 11th--Memo distributed Manager said this was a continued discussion from November 1 at which time Council had expressed concern regarding a method for discouraging premature e 11/8/78--5 12.'t . ~ sale of the house and how the City might avoid continued subsidation of the loans on the first sale. e Mr. Kupper reviewed a memo distributed to Council which outlined a method to address concerns of Council. Those included: The second lien would bear an interest rate of 6 percent, which is the amount the CDC has to pay on borrowed rehabilitation funds; an interest rate of 6 percent on the $10,500 extra value created by the rehabilitation which, hopefully, would prevent speculative buying. Also included was a suggestion that the City have the first right of refusal at the price of $58,500 for three years. Mr. Obie said the suggestions certainly addressed his concerns, and he felt it would not inhibit the goals of the NIP in trying to establish and owner/occupied house for a low/medium-income family. Mr. Lieuallen said it was important to note that this program is not intended to solve the broad range of community problems. It is a situa- tion that came from not wanting to tear down a particular house in the neighborhood, not a solution to the housing problem in Eugene. Mr. Delay requested discussion on the implications of the 6-percent interest rate on the $10,500 value created by the rehabilation. He noted this was not money out of the City's pocket and wondered if this were really necessary. Paul Osborn, HCC, said during last week's discussion Council had indicated there should be some interest rate attached to that money, or the City should somehow share in the increased value of a future sale. He felt the City's participation in this increased value was not a workable solution. Thus, it was determined that attaching an e interest rate would be the best solution. He noted the 6-percent interest rate is less than the current appreciation rate. Mr. Obie said he would be concerned in not attaching an interest rate. He said it would be difficult to justify the City's involvement in a give-away program for one person. He said this was City money which could be reused for other purposes if the house were put on the market and sold at $58,500. He felt the 6-percent interest rate attached was a compromise between zero interest rate and today's higher interest rates. Mr. Bradley wondered if any thought had been given to a 6-percent rate for two to three years, with a variable interest rate thereafter. He said three years from now the prevailing interest rate may be down from what it is today. Mr. Osborn said it would be easy to build in a variable interest rate on the downside, but would be more difficult on the upside. . . Mr. Lieuallen moved, seconded by Mr. Delay, to approve the staff's formula for resale of the house as outlined in the memo, ,dated November 1, and the additional conditions, dated November 8. Motion carried unanimously. Mr. Obie understood there was one other house in the area which the City is rehabilitating and plans to sell. He suggested the City sell the house before it gets involved and finds itself in a similar situation. Mr. Osborn said the City is currently in an arrangement with Lane County. e 11/8/78--6 ,~ ~ - There are two houses on the lot, which cannot be divided. The agreement e calls for the City to rehabilitate one house, but not the other; both houses are to be sold at the same time. V. Consideration of Resolution re: Emerald Canal--memo and resolution distributed. Manager said this request came from a group led by Charles Porter and Catherine Lauris for the City to endorse the concept and effort to explore converting the Millrace and Amazon Channel into a scenic waterway as well as to provide for better water flow into Fern Ridge Reservoir. Senator Hatfield has announced that $60,000 is available for funding for the Corps of Engineers to conduct a preliminary feasibility study. Prior to these immediate events, there was a group from the University of Oregon who have been working on the matter and made a presentation to the Planning Commission which was very favorably received and endorsed. He said the immediate matter before Council today is a request for endorsement which includes the acknowledged need to assign a City staff person to cooperate as a resource person in this matter. Don Gilman, Public Works, would be that resource person, receiving assistance from other departments. Charles Porter, 2680 Baker Boulevard, said the County had unanimously approved a similar resolution and had selected one staff person to work with his group. The request was to have the City agree to the idea and allow one staff person to work with his group. He said the Engineer's report to be conducted with the $60,000 will be extremely important to the entire project. An organizational meeting will be held with a public e hearing on November 15, 1978, 7:30 p.m. at Edison School. He noted wide- spread community support for the project. He said this was a request for cooperative effort, indicating the canal should be organized and built. He said his group would be before Council again with more concrete plans at a later date. In response to a question from Ms. Smith, Mr. Porter said the Board of Directors would select a steering committee to work with the City and County people. He expected the citizens committee to be the spark for directing the project. Mr. Lieuallen felt this to be an exciting prospect; however, he was con- cerned about the level of staff involvement and the amount of time required. Don Allen, Public Works Director, said the liaison person would make available the City.s wealth of data to the working committee. Mr. Gilman would do nothing more than make the data available at the proper time. He felt it would not take a great amount of time and the time could be controlled. Res. No. 3043--Tentatively approving in principle the proposal for an Emerald Canal to join the Millrace and Amazon Creek was read by number and title. Mr. Bradley moved, seconded by Ms. Smith, to adopt the resolution. Motion carried unanimously, with Mr. Obie e abstaining. 11/8/78--7 'L4 ... VI. Preliminary Discussion of Election Results: Impact on City Policy Directions -----------~----- e President Hamel said he hoped the State legislators would heed the voters concern regarding tax limitation. Manager reported statewide results of voting on Ballot Measures 6 and 11: Ballot Measure 6--451,000 No votes, 422,000 Yes votes; Ballot Measure 11--465,000 No votes, 382,000 Yes votes. He said it seems apparent the Legislature will have to study the tax limitation in depth and the City should take part in every possible way during that process. He noted department heads would be meeting next week to assess actions the City should take and to follow up on the goals and guidelines from the recent City Council goal-setting session. The result of that discussion would be to bring to Council a work program and actions that could be considered by the Council in the future. In response to a question from Mr. Haws, Manager said the City was in no different situation now than it was last year. He assummed the Budget Committee would be operating on the same schedule as last year. He noted however, the Lane County results showed very decidedly that voters favored Ballot Measure 11 as Ballot Measure 6 was rejected by a sizeable majority. Ms. Smith said she did not feel the City was in the same place as it had been a year ago. The City needs to be sensitive to the fact that the mood of the voters is to take a serious look at what types of services and pro- grams are really needed. Manager said possibly a guideline could be esta- blished from the voters responses on Ballot Measures 6 and 11. Perhaps e the City should be considering limiting increased taxes based on growth factors and cost of lliving increases as specified in Ballot Measure 11. Mr. Obie said it was obvious the voters wanted tax some relief. He fe 1t this gave the City an excellent opportunity to take the offensive and poten- tially set the stage for leadership in the State. He said perhaps the bud- get decisions should be within certain limits, and within those limits the City will do the very best it can to provide services for its citizens. Mr. Delay agreed it would be necessary to take a hard look at services in view of Lane County's voters feeling on tax limitations. However, he said the City should not deny the opportunity to bring programs that may be needed by the community to the voter. He also felt the Council and Budget Committee had been very frugal in the past. The passage of Ballot Measure 11 in Lane County indicated to him that the voters do want tax reform, and perhaps they are not just striking out at government. He felt it would be necessary to watch closely the Legislature, and perhaps people in the community will be observing more closely what happens at the State legislative level. Upon motion duly made, seconded, and passed, the meeting was adjourned to November 15, 1978. ~!n~ City Manager DT:er/CM27bl e 11/8/78--8 ''2.'