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HomeMy WebLinkAbout10/24/1979 Meeting .. M I NUT E S e EUGENE CITY COUNCIL October 24, 1979 Adjourned meeting from October 17, 1979, of the City Council of the City of Eugene, Oregon, was called to order by His Honor Mayor Gus Keller at 11:45 a.m., October 24, 1979, Council Chamber, with the following Councilors present: Jack Delay, Betty Smith, D. W. Hamel, Eric Haws, Scott Lieuallen, Brian Obie, Gretchen Miller, and Emily Schue. I. ITEMS FROM MAYOR AND COUNCIL, APPOINTMENT-S, ANNOUNCEMENTS, AGENDA ADJUSTMENTS A. Sewage Treatment Plant Funding--Ms. Smith referred to recent articles in the newspaper regarding funding for the sewage treatment plant. She said a task force of Metro Wastewater Commission members has been appointed to deal with options, focusing on the notion of a one-plant treatment facility. She will keep Council informed of progress. B. Appointments--Mayor Keller has nominated Linda Bennett, 3900 Langton, Eugene, to fill a vacancy on the Employment and Training Advisory e Committee. Also, Rosemary Batori has submitted her resignation from the Women's Commission. Robin Casey, first alternate, should be appointed to fill the unexpired term. Mr. Delay moved, seconded by Ms. Smith, to confirm the nomination of Linda Bennett to the Employment and Training Advisory Committee and Robin Casey to fill the unexpired term of Rosemary Batori on the Women's Commission. Motion carried unanimously. C. Lighting On Eugene Mall--Assistant Manager said that the Downtown Development Board has requested modifications to the lighting on the Eugene Mall. A subcommittee has been studying alternatives and developing proposals to reduce energy costs on the mall and enhance the lighting level for the winter months. An adjustment to the Parks Department budget in the amount of $9,000 will be on the October 31 Council agenda, should Council deem the lighting modifications appro- priate. Incandescent lighting fixtures on the alleyways approaching the mall would be converted to fluorescent lights to enhance the lighting level and reduce energy costs. On the mall, mercury vapor side-cast lights would also be installed. This project is experimental, as there has been some concern about aesthetics and foot-candle levels that will exist with these modifications. The lighting will be adjusted in the alleyways first. . 57'i 10/24/79--1 .. Mr. Loomis, 3540 Pearl, chairman of the Downtown Development Board, said that the subcommittee has recommended these steps be taken e in time for the Christmas season. He said the subcommittee has concerned itself with all aspects of lighting, security, and safety. Fi nanci al studi es have been compl eted by Oi ck Morg.lll of the P.ll'k s Department, and Mr. Loomis said these projects would represent a cost savings of about $3,000 to $4,000 a year. It is hoped that further lighting modificat~ons can occur later. It was Council consensus that the project was worthwhile and it was understood that appropriate budget transfers would appear on the October 31 Council agenda. D. Request For Use of Civic Emergency Fund Monies--Assistant Manager said that the Civic Emergency Fund receives about $2,000 a year in revenue, which represents six percent of the gross gate of boxing and wrestling matches in Eugene. State law requires that these funds be spent specifically for educational, recreational, and public welfare-oriented act iviti es. No money has been expended from that fund for four or five years, and the West Eugene Boxing Club is now requesting funds for the purchase of an AAU-approved ring that can be transferred from facility to facility. The cost would be $7,560. Mr. Delay moved, seconded by Ms. Smith, to authorize expenditure of $7,560 from the Civic Emergency Fund for an AAU-approved ring. Motion carried, all Councilors present voting aye, except Mr. Delay and Mr. Obie voting no. e II. ROUTINE ITEMS FOR COUNCIL APPROVAL A. Approval of Council Minutes of October 8, 1979, and October 10, 1979 Mr. Delay moved, seconded by Ms. Smith, to approve the Council minutes of October 8, 1979, and October 10, 1979. Roll call vote. Motion carried unanimously. B. Improvement Petitions 1. Paving Van Buren Street--(Affected property on petition; assessable costs: paving, total front footage, 647 feet and total footage petitioned, 475 feet, 73.4 percent; City costs, none) Res. No. 3263--A resolution authorizing street paving on Van Buren Street from 12th Avenue to 13th Avenue (1788) was read by number and title. Mr. Delay moved, seconded by Ms. Mith, to adopt the resolution. Roll call vote. Motion carried unanimously. . 10/24/79--2 580 . 2. Paving Dove Lane--(Affected property on petition; assessable costs: paving, total front footage, 1779.8 feet, total footage e petitioned, 1196.3 feet, 67.2 percent; City costs, none) Res. No. 3264--A resolution authorizing street paving on Dove Lane from Taney Street to 930 feet west (1793) was read by number and title. Mr. Delay moved, seconded by Ms. Smith, to adopt the resolution. Roll call vote. Motion carried unanimously. III. PUBLIC HEARINGS A. Easement vacation for Spectra Physics (EV 79-9) Recommended approval by Planning Commission August 20, 1979 Vote 6:0 Mary Briggs, Planning Department, reported that the area in question is north of West 11th between Oanebo and Terry streets. She added that the applicant is requesting an emergency clause in the ordinance. Public hearing was held with no testimony presented. CB 2015--An ordinance authorizing easement vacation of a 14-foot-wide public utility easement located north of West 11th Avenue between Danebo Avenue and Terry Street, was read by number and title only, there being no Councilor present requesting that it be read in full. e Mr. Delay moved, seconded by Ms. Smith, that the bill be read the second time by council bill number only, with unanimous consent of the Council, that enactment be considered at this time, and that the bill contain an emergency clause. Motion carried unanimously and the bill was read the second time by council bill number only. Mr. Delay moved, seconded by Ms. Smith, that the bill, as amended, be approved and given final passage. Roll call vote. All Councilors present voting aye, the bill was declared passed and numbered 18526. IV. TRI-AGENCY ORGANIZATION--Assist9nt Manager reported that the Tri-Agency Management Board and Policy Board are requesting Council feedback on organizational options. October 19 memo to Council outlines the four basic structures for consideration: the first option is to continue the current structure of an intergovernmental department, having two public bodies review its work, one at the administrative level and another at the policy level. Second option is to continue the current e 10/24/79--3 58/ . structure but to repl ace the management team wi th a management super'vi SOt' who is responsible for the Tri-Agency director. The third possible tit structure is to change the organization to create a new single-purpose intergovernmental agency, like LRAPA, with a separate policy board composed of representatives from the two councils and board of commissionel's who would supervise the Agency and its director, and the last option is to have an existing general purpose government provide this service and have the other two agencies contract with them for the service. Assistant Manager said that, no matter which alternative is selected, essential characteristics include clear role definition for each agency, clear accountability and definition of service delivery, coordinated and joint policy formulation by elected officials, agreed-upon frequent information exchange, and a single mechanism for handling service com- plaints and conflict resolution. He added that the Agency.s past problems have been resolved quite positively. He feels that the best approach from an accountability and service delivery standpoint would be to adopt the fourth option. Council feedback is requested at this time, and the Policy Board will return with a proposal at a later time. Mr. Lieuallen, who serves on the Policy Advisory Committee, said that, generally speaking, the direction of the Tri-Agency Authority has been pretty well accepted by all three jurisdictions. They are in agreement that strong educational and enforcement programs are necessary. He said that it is the day-to-day administration that needs streamlining so that the Agency does not have to continuously deal with three jurisdictions. He said that he also favors the fourth proposal. e Ms. Smith said that she supports Proposal 4 and wondered how Lane County and Springfield would feel about Eugene being the coordinating body. Assistant Manager said that the City of Eugene would be open to the proposal only if asked by the other two jurisdictions. Mr. Hamel agreed that Eugene should be the operational managing body only if the others ag reed. Otherwise, he felt the responsibility lies with the County. Mr. Delay pointed to the current problem of financial commitments as an illustration of unclear expectations. He feels that the door should be kept open to what other jurisdictions think and that there is a need for clarity with regard to the responsibilities between the partners. Ms. Miller felt that Proposal 4 seems the most reasonable because it provides what appears to be a single line of authority, which the Agency has lacked. She feels that the decision of which body will provide the service needs to be made jointly. She appreciates the manner in which this item has been presented. There is time for discussion since the item is being considered without the pressure of a crisis decision. It is a better method than acting by crisis management. Ms. Schue agreed that Proposal 4 would probably be the best alternative provided all jurisdictions are comfortable with it. She would suggest Proposal 3 as the first alternate. Mayor Keller and Mr. Obie both agreed that Proposal 3 would be the most likely alternate, should Proposal 4 not be acceptable. Mr. Lieuallen added that reorganization is not expected to result in increased costs. He also mentioned that each jurisdiction would then be able to tailor its contract delivery to meet its own needs. e S8Z 10/24/79--4 V. JOINT HOUSING RECOMMENDATION RE: CONDOMINIUM CONVERSIONS e Assistant Manager said that Jim Bernhard, chairman of the Joint Housing Committee, would present a report. Mr. Haws questioned the purpose of the discussion and whether decisions would need to be made "today." Assistant Manager responded that the Joint Housing Committee report would be presented and supplemented by additional staff informatiqn. It is anticipated that Council may wish to take some public testimony, but action is not neces- sarily required. Jim Bernhard, chairman of the Joint Housing Committee, said that by Council direction the Joint Housing Committee discussed the condominium conversion issue at its September and October meetings. HCC and Planning Department reports were reviewed and public testimony taken, and it was agreed that both reports should be submitted to the Council along with material received at the October 16 JHC meeting. The Joint Housing Committee agreed with the four staff recommendations in its report. In essence, those four recommendations are: 1. Direct the staff to investigate and, if appropriate, prepare a draft of an ordinance to require owners of buildings being converted to condominium units to issue notice of conversion at least 180 days prior to recording the declaration of unit ownership; 2. Continue to work to modify the State HOUSing Division's administrative rule on its mortgage purchase program; e 3. Direct staff to work with low-income tenants who are displaced by condominium conversion to find other suitable housing; and 4. Investigate development of a local condominium purchase program which would provide down payments for low-income tenants on a deferred loan basis intended to bring mortgage payments in line with their income. The Joint Housing Committee further recommended that the City renew efforts toward increasing the supply of multiple-family hOUSing city-wide, particularly for lower-income households. It also recommended that a special effort be made for continued study of the condominium conversion issue which would include special meetings. Decisions made at this time may not provide a final solution to the problem, and it feels the situation warrants continued investigation and study. The Joint Housing Committee felt it did not have enough information at this time to make a complete report to the Council. At the October 16 meeting, the vote was 4:1 against imposing a moratorium at this time. Mr. Haws wondered how the 180-day notice-to-tenants figure was arrived at, and Mr. Bernhard said it was felt that 180 days would provide time for the occupants to pursue other options. Mr. Haws did not understand what a maximum mortgage value per unit meant. Assistant Manager clarified e 583 10/24/79--5 that the State, at the present time, will not enter into a mortgage agreement on homes exceeding $47,000 in sales value. It is being proposed that the State be allowed to enter into mortgage agr'eements where the e mortgage amount does not exceed the maximum regardless of what the sale price of a home is. This would allow someone who had a more significant down payment to purchase a domicile for a greater value and still have the benefit of the State Mortgage Program. Mary Briggs, Planning Department, summarized the staff report's pertinent points on the subject of condominium conversions in the community as prepared by the Planning and HCC departments. Those points were: 1. State regulations control the process of condominium conversion. There are tenant protections built into the process, including 90-day notice, first right of refusal to purchase, and Public Report. 2. Market forces affect the supply and demand of condominium units (including conversion of existing rental units) and affect the cost and timing associated with conversion. 3. There are State and local goals and policies supporting choice in housing, home ownership, housing affordability, and high- density housing near the city's core. 4. Problems of displacement are not unique to occupants of multiple- family housing and displacement can and does occur in the absence of conversion. e 5. Displacement is a problem for low-income households, particularly elderly and handicapped. 6. To date, in Eugene, condominium units are a very small percentage of the total housing stock. 7. Condominiums are likely to become an increasingly important compo- nent of the city's housing stock. 8. Increases in condominiums can be an important part of Eugene's efforts to achieve some of its goals and policies, e.g., choices in housing, compact urban growth, housing mixes, etc. She indicated that the Joint Housing Committee's 4:1 vote against imposing a moratorium at this time is supported by staff. She added that staff does not support a moratorium at this time based on the following factors: 1) there is not sufficient evidence to warrant the use of this selective mechanism; 2) it conflicts with other City housing policies; 3) it could result in increased purchase costs of condominiums when the moratorium is lifted; 4) it won't solve the problems of displacement; 5) there appear to be legal risks in so doing; and 6) the consequences of such actions are not well enough known at this time. There is no evidence to suggest that a moratorium would be the best action. e 10/24/79--6 5g~ " Ms. Briggs mentioned this action would represent the first instance of the e City regulating tenure with respect to renting versus owning. Also, this would the first time a housing policy would be differentiating against a group other than by income. Mr. Haws wondered if most of the tenants are on leases. Robin Johnson, HCC, responded that at the Patterson Towers the present leases are up for renewal. Their lease agreement states that the owner has the right to give a 90-day notice. At the Willamette Tower, a 3D-day notice is required and tenants are not on leases. Mr. Lieuallen wanted to clarify whether all of the documents that Council has been given have also been read by staff. He mentioned that his documents include: a letter from Legal Aid dated October 17; a memo from Legal Aid about municipal authority; a staff memo outlining the results of a survey of condominium conversions in Eugene; a statement by Daniel Lauber, principal consultant, Planning/Communications Associates; an October 19 memo from the Eugene Commission on the Rights of Aging; a letter from Lane County Legal Aid introducing a memo from Mr. Steve Mustoe. Ms. Briggs, Planning Department, said that staff has not seen the Steve Mustoe memo and that Attorney Steve Skipton's summary of Daniel Lauber's statement has been reviewed by Ed Whitelaw, economic consultant for the City. Ms. Wickes Seal, 712 East 16th, speaking as a member of the Aging Commis- sion, referred to the recent survey done by the Commission of the residents e of the Patterson Tower, Willamette Tower, Lane Tower, and Eugene Manor. She noted an omission on page 2 of that survey under Item 11. In response to the question as to whether tenants have physical limitations that would make it difficult for them to move, there were 249 responses. It should be noted that that there were 126 yes votes received and 123 no votes. She said that the Aging Commmission realizes more and more that the problem is one of human rights. She said that none of those tenants being affected by this conversion think of themselves as being disadvantaged because they have always taken care of themselves. They have never come before the Council to ask for anything and, if satisfied on a decision regarding a place to live, they will probably never need come before the Council again. She commented that she knows the Council will use their heads on this matter and she hope~ they will use their hearts, because "all of you will get old someday," she said. Charles Strong, 495 West 26th, speaking as a member of the Aging Commission, said that the most desirable domicile for older people is their own homes. He mentioned it is also less costly to care for people in their own homes. He said that seniors in particular are affected by income erosion and very few of these people are really able to buy condominiums. He said two alternatives left them are other rentals or nursing homes. He concludes that the Joint Housing Committee recommendations have not provided any real solution. A firm policy is urgently needed and a moratorium is warranted in order to have time to develop that policy. e 585 10/24/79--7 . Teresa Bishow, an Outreach Coordinator with the West University Neighbors, said that the problem and concern at the Patterson Towers was first e discussed in September. The neighborhood group voted to express its concern about the condominium conversion and she added that the residents of Patterson Towers have added a great deal of stability to the neighbor- hood. Some of these residents have shown much leadership. There is not enough available housing in that neighborhood if some of those tenants need to move, she said. Carl Hosticka, 2420 Emerald, Public Affairs Professor at the University of Oregon, feels that, if the City attempts to relieve the situation by providing moving assistance, it will encourage other developers to convert more units to condominiums. The City will be saying that it will stand ready so the developers need not worry. He feels that the social disrup- tion of the tenant should be the responsibility of the developer, not the taxpayer. He felt that a moratorium was necessary to develop a policy. John VanLandingham, Legal Aid, spoke against the staff report, as he felt that the City has the legal authority to impose a moratorium. In reference to staff's opposition to a moratorium because it is a selective mechanism, he said Council has acted similarly before. Without a mora- torium, he said, there could be delays anyway because of financing problems. A moratorium would protect people during that period. As to any legal risks, he would like to hear the City Attorney's response. He also pointed out that the vacancy rate in 1978 was below one percent. In May 1979 it was 1.9 percent. The Metro Update Plan shows it has declined significantly. He feels displaced seniors will have trouble finding e places to live. He said he also feels that buying a condominium is more costly than renting. People buying condominiums will be those with higher incomes. Jean Beachdel, 1309 Willamette, Senior Law Service Program, attested to the trauma that the seniors will experience. She believes there will be numerous relocations taking place if condominium conversion is not regu- lated. She added that habit patterns are difficult for seniors to break. Sometimes they do not resume normalcy at all after a relocation. It is a very serious matter, and she feels that in many cases it would prematurely force seniors into nursing homes. Jo Lu Roberts, 2775 Friendly, supports the moratorium. She feels the City is creating a drastic situation and that it should get out of the policy of dictating people's choice of housing. She feels that HCC has discouraged elderly housing in the past. Curtis Irving, 2594 Pierce Street, a local real estate agent representing the Boise firm that is purchasing the two high-rise buildings, said that Oregon has good laws regulating condominium conversions. It has recently been further refined in terms of how much notice is to be given, the kind of notice, what kind of information should go out on purchase options, e 58b 10/24/79--8 . - etc. He said that the landlord-tenant law gives the landlord the right to e ask a person to move in 30 days, but he feels that a person involved in the conversion of rental units would not want to have the loss of income generated by requesting people to vacate immediately. He feels that perhaps most of the tenants who were surveyed stated they did not want the conversion because they did not understand it. Rents will go up regardless of what happens. He feels this type of conversion fills a void in the market. The new home today is not affordable to many people and this conversion offers a viable alternative to someone wanting to realize the dream of homeownership. Though taxes may go up and upkeep is required with ownership, mortgage prices are fixed and costs usually are less than when renting. Vacancy rates should not increase with conversion, he said. Occupancy will be shifted in some cases, but that shifting will not destroy the available housing in the total marketplace. He also noted that approximately 250 new units are planned for construction in the downtown area. That information will be made available to tenants re10- cat i ng. He added that this is a human rights issue for everyone, not just the elderly. Whitney Scobert, 440 Blair, submitted an October 24 newspaper article from the Oregonian titled "Experts Gloomy Over Housing." The article points to government barriers and obstructions in housing construction as the princi- pal culprit in today's tight Oregon housing market. He feels this type of action must be stopped and added that elderly housing development on his own property has been prevented by the Council for two and-a-ha1f years. Ruth Shepherd, 1765 East 26th, in looking at the Patterson Tower situa- - tion, has concluded that condominium conversion is not an elderly problem exclusively. There are a broader set of issues involved. It seems to her that the problem is, in fact, a low percentage of available housing, com- pounded by the fact that there is an imbalance in the types of housing to provide a range. That imbalance should be addressed by the Council. She suggested that the process of condominium conversion should include a method to ensure that, before a rental unit is converted, there should be a percentage of available rental units assured in that area of the community before permission is granted. Betty Niven, 3940 Hilyard, felt that the major issue should be making relocation of those who will be forced to move as gentle a process as possible. She said that most residents will not want to purchase the unit if they can't do so with cash, so their choices will be moving or staying where they are if able to rent a unit purchased by an investor. It seems there could be 20 percent of the units available as rentals because a developer need only assure 80-percent owner-occupancy to get financing. When tenants are faced with the question of whether to buy and protect themselves against inflation or to move to another rental, most will decide to buy, she feels. One determining factor would be whether financing would be available at lower rates, e.g., available state pro- grams. A proposal on next May's ballot would redefine multi-family e 10/24/79--9 581 . - housing, for which statewide bonding was approved in May 1978. If a redefinition is approved, it will apply to structures that might contain e condominium units, whereas at present under an Attorney General ruling, it would apply only to the structure and not individual units. At present, there are financing opportunities available to rehabilitate multi-family rental housing. She would suggest that perhaps the City or the Housing Authority acquire housing in the downtown area to be made available for those needing to relocate. She would recommend the City initiate a May bond issue which would be used to help finance the 50-percent equity required by the State. She also mentioned that the City recently approved a tax exemption for a downtown multi-family development. She thinks it would be reasonable for the City to ask the developer to give first priority to those displaced tenants of these two units who are unable to relocate themselves in the current housing market. It would also be reasonable to ask the condominium developer to agree to let those current residents who are eligible for this new development stay until the units are completed. Lastly, she requested that for those who have to move and for whom the actual physcial act of moving is an insurmountable obstacle, the developer should be willing to provjde moving services. Ernest Jaffarian, 2074 Todd, said he has been personally involved in condominium conversions in Eugene (52 units) and Ashland (24 units). In neither case was there a major problem. He cautioned that there are more ways of converting rental units than the process of condominium conversion. If a moratorium were imposed, he wondered whether other forms would also be limited; for example, where cooperative ownership is held by a cor- poration. He asked whether the Council will be suggesting that a person _ cannot change from private to corporate ownership. He added that this is a much larger issue than just the conversion of condominiums. Mr. Joseph Mahler, 1080 Patterson, though capable of purchasing a condo- minium, recognizes that many tenants are unable to purchase a unit. He cited examples in other communities. In Los Angeles, for example, a condominium conversion is rejected if the overall vacancy rate is less than five percent. Other cities have imposed restrictions when the vacancy rate is below three percent. In New York City, tenants over the age of 62 with an income of less than $30,000 may not be affected if they have lived in a unit for over two years. He mentioned several other cities with similar programs and said that these communities, as well as the federal government, have realized that existing housing cannot be successfully converted without having some controls. Mr. Lieuallen commented that he was irritated to discover that staff has not seen all the materials that he has seen. He wants staff to respond to Mrs. Niven's suggestions, other concerns expressed by those who testified, and to the assertion in some reports that the demand for condominium conversion is artificial and that conversions are being done only in areas where the vacancy rate is extremely low. In reference to staff's mention that this would be the first instance of regulating tenure, Mr. Lieuallen 1_ 588 10/24/79--10 referred to a house that the City recently moved to West 11th and rehabilitated. In that move, suggestions included that tenants be e required to live there for a certain period of time prior to restrictions being lifted. He feels that is an example of regulating tenure. He said the City could probably cite other instances in which the housing policy differentiated between groups for other than income factors. He would also like a report from the legal department on whether a moratorium can even be imposed. Mr. Haws left the meeting. It was Council consensus to hold further discussion on the matter but that public testimony would not be received at that time. After future discus- sion, Council may wish to call another public hearing depending on Council.s course of action. Ms. Schue would be interested in the possibility of lengthening the present 30-day time period for tenants to remain during condominium conversion. She would like legal advice on that as well as whether the City could add a landlord-tenant statement to the ordinance which would allow tenants to remain for a more extended period of time, should they be unable to purchase. Mr. Delay said he would like Mr. Whitelaw's response to the Daniel Lauber statement made to the Subcommittee on Housing and Urban Affairs. He also wants to look at the general question of appreciated value'of a development and whether the City can somehow share in that value. e On the issue of staff not seeing material distributed to Council, Assistant Manager said that anyone wishing to submit material in the future should provide 25 copies to the City Manager's Office by the Friday noon preceding a Council meeting. Mr. Lieuallen said that he disagrees with the notion that the issue is not a human rights issue. He feels strongly that it is. He said that the discussion revolves around people with set life situations and it is extremely difficult, whether affordable or not, for them to switch in their thinking. They don't want a complicated financial situation at this point. He feels that giving special treatment to the elderly is a very appropriate stance for the Council to take. It was understood that, due to a heavy agenda at the Wednesday, October 31 meeting, discussion on this issue would be continued at the Monday, October 29 Council meeting. Upon motion duly made, seconded, and passed, the meeting was adjourned to October 29, 1979. A. Keith Manager Assistant City Manager e (Recorded by Diane Price) AKM:DP:pm/CM8a25 581 10/24/79--11