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HomeMy WebLinkAbout04/30/1980 Meeting - e e M I NUT E S EUGENE CITY COUNCIL April 30, 1980 The adjourned meeting from April 28, 1980, of the City Council of the City of Eugene, Oregon, was called to order by His Honor Mayor Gus Keller on April 30, 1980, at 11:30 a.m. in the Council Chamber with the following councilors present: Betty Smith, Scott Lieuallen, D. W. Hamel, Gretchen Miller, Emily Schue, and Jack Delay. Councilors Brian Obie and Eric Haws were absent. I. ITEMS FROM MAYOR AND COUNCIL, APPOINTMENTS, ANNOUNCEMENTS, AGENDA ADJUSTMENTS A. CETA Program--Ms. Smith explained that the RFP requests for proposals are now out and targeted at the Eugene Summer Program. They are expected to have a good response. B. PAC Committee--Ms. Smith explained that the PAC Committee will con- tinue at this time as the advisory committee to the Eugene CETA pro- ject. Later this summer or early fall there will be a new, expanded advisory committee. C. Appointments--The Mayor held the recommendations to the Performing Arts Commission over to next week, at Mr. Lieuallen's request. D. Announcements 1. Joint Planning Commission/City Council Workshop--April 30, 1980, 12:45 p.m., McNutt Room. 2. Library Subcommittee Budget Review--April 30, 1980, 2 p.m. 3. Budget Committee--Wednesday, May 1, 1980, 7:30 p.m., McNutt Room. The Budget Committee will also meet May 8 and 15. E. Agenda Adjustments 1. Manager asked that Item V., Bancroft Poli~ies, be moved to the top of the agenda. 2. Manager explained he received a letter dated April 24, 1980, received April 28, from Medical Services, Inc., notifying the City of a request to increase ambulance service rates beginning May 1, 1980. To increase these rates without City review would 4/30/79--1 be a violation of the City Code. He had explained this to Mr. Leonard. There is a study currently being done and the results will be brought to the council in August or September. After ~ the results of the study are accepted, Eugene and Springfield will agree upon a schedule of rates. In the interim, Eugene will consult with Springfield on these proposed rates and bring a recommendation to the City/Council on May 27, 1980, at which time they will hold a public hearing. Mr. Delay responded that the task force had told Mr. Leonard that he must submit any rate increases through the normal process time frame. He suggested a modest interim adjustment to meet Mr. LeonardIs needs pending the conclusion of the study. Consensus was to review the interim report May 22, 1980, and hold a public hearing May 27, 1980. II. ROUTINE ITEMS FOR COUNCIL APPROVAL A. Approval of Council Minutes of April 14 and April 16, 1980 Ms. Smith moved, seconded by Mr. Lieuallen, to approve council minutes of April 14 and April 16, 1980. Motion carried unanimously. B. Finance Resolutions (memo distributed) Res. No. 3355--A resolution authorizing the transfer of operating contingency monies in the General Fund to cover costs of Touche, Ross & Co., study of Medical Services, Inc. Ms. Smith moved, seconded by Mr. Lieuallen, to adopt the resolution. Roll call vote. Motion carried unanimously. Res. No. 3356--A resolution authorizing the transfer of operating contingency monies in the General Fund for the installation and repair of fire hydrants. - Ms. Smith moved, seconded by Mr. Lieuallen, to adopt the resolution. Roll call vote. Motion carried unanimously. Res. No. 3357--A resolution authorizing the transfer of non-contingency appropriations within a given fund between programs and/or object groups. J Ms. Smith moved, seconded by Mr. Lieuallen, to adopt the resolution. Roll call vote. Motion carried unanimously. C. Jail Property Resolution Res. No. 3358--A resolution authorizing the City Manager to execute a deed for the jail property. . 4/30/79--2 Ms. Smith moved, seconded by Mr. Lieuallen, to adopt the resolution. Roll call vote. Motion carried unanimously. e III. PUBLIC HEARINGS A. New Liquor License Outlet: Butcher Block Delicatessen (Retail Malt Beverage); Located 1858 East 13th Avenue; Applicants: Patrick and Roxanne Tancredi Manager indicated all was in order for this new liquor license request. It has been checked by the City departments. Public hearing was held with no testimony presented. Ms. Smith moved, seconded by Mr. Lieuallen, to forward the request to OLCC with recommendation for approval, subject to conditions, if any. Motion carried unanimously. B. New Liquor License Outlet: Friendly.s Market (Package Store License); located 2749 Friendly; Applicants: Kenneth Barr and Terry Potash Manager introduced the request and said all was in order; it had been reviewed by staff. e Public hearing was held with no testimony presented. Ms. Smith moved, seconded by Mr. Lieuallen, to forward to OLCC with recommendations for approval, subject to conditions, if any. Motion carried unanimously. IV. BANCROFT POLICIES (Memo distributed) Manager explained that with this ordinance, instead of a maximum of seven percent interest, the City can charge whatever the State law allows, ten percent currently. Mr. Long added that there is currently an investiga- tion under way to determine if the interest rate could be raised to 12 percent. Manager read the provision in the proposed ordinance allowing for reduction in rates as determined by the City Manager. Mr. Long explained the council.s desire was not to make a profit, but not to subsidize development either. The interest charge will be adjusted to cover the cost plus the City.s administrative charge, but not to exceed that allowed by law. There were four categories of projects originally disGussed. The first category could not be changed to the higher rate. The higher interest rate could be attached to other categories. The next bond sale will be June 10. It will require a subsidy for administrative costs, and possibly more. e 4/30/79--3 Mr. Lieuallen inquired if the interest rates could be placed high enough on future bond sales to cover the subsidy of the first bond sale. Mr. Long replied that the City cannot make up deficiencies in bond sales in that manner. It has to come from a direct tax levy or the General Fund. Manager explained that the City has, in the past, made a profit on these bond sales and it has gone into the General Fund. Mr. Delay was concerned about the City's exposure created by the time lag between the sale of the bonds and the previous contractual agreements between the City and developer. He asked if the agreements could stipu- late adjustable rates. Manager replied that Mr. Teitzel, Public Works, would address this issue. Mayor introduced Randall Hledik. Randall Hledik, Wildish Construction Company, PO Box 7428, said that in previous testimony, the construction industry said it would support increased interest rates for Bancroft bonding. They are into the 1980 construction season. Twenty subdivisions await council action. Further delay would result in this construction season being severely impaired. Unemployment would result. Late starts mean late completions. The City, should they extend completions into 1981, would lose the revenue for 1980. He urged council action to make Bancroft financing available. CB 2112--An ordinance regarding interest rates on amounts due the City. Ms. Smith moved, seconded by Mr. Lieuallen, 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. ,Mr. Delay presumed that the ordinance would apply to all situations that it can. Manager replied that it could apply to one area, not another, and then there was a "gray area." This "gray area" would need specific council authorization and will be brought back to the council for con- sideration. Mr. Delay asked about the financial liability that could occur due to this ordinance increasing the rates. Mr. Long replied this particular ordi- nance does not seem to have any financial risk; it will improve the City's situation. The next areas of consideration are the areas of potential risk. Motion carried unanimously, and the bill was read the second time by council bill number only. Ms. Smith moved, seconded by Mr. Lieuallen, that the bill be approved and given final passage. Roll call vote. All coun- cilors present voting aye, the bill was declared passed and numbered 18616. 4/30/79--4 <> ,. . . -- " 1980 Project Schedule . Manager referred council to a memorandum dated April 21, 1980, from Bert Teitzel, City Engineer, to Don Gilman, Acting Director of Public Works, with an attached list of 1980 projects that the Engineering Division recommends proceeding with. tit Mr. Teitzel told the council they would like to go ahead with the bid nos. 1 and 2 groupi ngs. The groupi ng call ed "Unschedul ed 1980" 1 i sts ' projects that they would like to complete this year. Some preliminary design projects have been delayed until 1981. Manager explained the table and recommended that Bid No. 1 be awarded before the June 10 Ban- croft bond sale date. Bid No.2 would be awarded after June 10. The fund 491, District Improvement column, shows the additional liability that would be added with those two groupings, $500,000. Mr. Teitzel explained that they would like to proceed with those projects shown in the tabulation as unscheduled subdivisions. The developer-owner would pay the front-end engineering costs. The City would not have any liability until it was let to bid. The subdivider-owner would be respon- sible for any added costs to the City. This would cover any high interest rate that the City pays on warrant sales. These would be awarded after July if the bond market is still favorable. A favorable bond market would be a continuation of the present downward trend. There may be additional conditions that would apply to the subdivider after negotiating with the bankers who would potentially buy the warrants. Mr. Delay asked Mr. Teitzel about the engineering cost to be collected. Mr. Teitzel explained the City had accounts outstanding for $90.000 in engineering fees for these projects on the schedule. They would like to collect that money from the developers and put the projects out to bid if there was a favorable bond market in July. Ms. Smith asked if this issue would be brought back to council in July. Mr. Teitzel said the checkpoint would be at the time of the bid award of individual projects. Ms. Miller felt there was a potential in the bond market to look favorable at the time the warrants are sold but not when the bid is let. The lag time could create a deficit situation. Mr. Teitzel replied that Ms. Miller was correct; the lag time could be one or two years for subdivi- sions. Ms. Miller asked, if they approved the projects, would the risk be shifted to the developer. Ms. Miller asked what would happen if the bond market keeps climbing. Mr. Teitzel replied they are anticipating that the State legislature would increase the ceiling on the interest charge allowed for Bancroft bonds. Mr. Delay asked what the worst-case situation would be. Mr. Long replied there are two risks, even though one collects front-end costs. One case would be that the interest rates would be so high that it would be necessary e 4/30/79--5 ~ ~ to go to the General Fund to cover the deficit. The second situation is that the lots would not sell; the assessments would not be paid; the developer would go bankrupt; the City would foreclose on the lots and be ~ unable to sell them as well. If the situation were really bad, the City could need to cover not only the interest deficit but the amount of the bonds as well. It is the amount of the bonds that the City would be called upon to pay from other sources. That is the worst-case situation, not a prediction. Ms. Smith moved, seconded by Mr. Lieuallen, that the council approve the 1980 Project Schedule as outlined. Mr. Delay said he was not comfortable with this schedule. It is a lot of money and he did not favor taking ambiguous risks for the community. Manager replied that it would monitored and evaluated as it progresses, and if anything happens they will alert the City Council. On June 10 the overall status would be reviewed. Mr. Delay asked if the City could protect itself against default in any other way than a lien on the property. Mr. Teitzel said they had dis- cussed requiring the developer to make a security deposit for the amount of the contract, but it would limit the people who could proceed with projects. Ms. Miller said she was uncomfortable with the situation and would want people to realize that it is still up in the air and Bancroft projects may not proceed this summer. Mr. Delay felt the projects should go ahead, although there is some risk. He said there was risk if they stood in the ~ way of this development. He would like to have the City Council study the .., situation in the fall before the next session of the legislature. Mayor suggested having an interim report after June 10. Mr. Delay suggested looking at the long-range questions in the fall before the 1981 building season. Motion carried unanimously. V. INITIAL CONSIDERATION OF TRESPASS ORDINANCE/CALL FOR SPECIAL MEETING A. Initial Consideration of Trespass Ordinance--Requested by Councilor Miller B. Call For SpeCial Meeting for May 5, 1980 Ms. Smith opposed the reading of the ordinance since the April minutes of the City Council indicate that the issue was to come before the council on May 12. People have been notified of that date and they should have a chance to speak on the issue. . 4/30/79--6 e Ms. Miller indicated it was important to have the first reading today. There were people present to hear the discussion and she would expect more people on Monday. She had little doubt about how people in the community feel about this issue. People have called and written to her. She felt that it was important to have the public hearing next Monday before the upcoming election so that people could see how people will vote on this issue prior to the election. This issue has been around for a year. The ordinance has been written for months. It is a matter of one delaying tactic after another. She suggested the smoking issue go on the Monday agenda as well. Mr. Hamel could see no reason for not having the hearing on Monday, May 12. He could see no reason for this political camouflage. It is an important hearing and should follow the schedule. Mr. Delay agreed with Ms. Miller. The positions one could take were simple and straightforward. People could get to the meeting easily on Monday. He would like to see the agendas free for other matters. Ms. Schue agreed with Mr. Delay and Ms. Miller. The clean air ordinance and this ordinance have been put off. She was agreeable to a special meeting. e Mayor said it was always nice for those not running for office to make political issues for those who were. He welcomed the opportunity. He objected because, at the last meeting on this issue, they told people that they could be heard and they would schedule a public hearing for May 12. He questioned if the councilors would do this on other issues and whether it was in the City's best interest. He asked the Manager if they could notify all people previously in attendance. Manager said he could not notify all the people. He could, however, notify leaders who could notify others. Mayor indicated he would be in Portland on Monday and he would like to be present at the discussion. Mr. Hamel said that he would be out of town on May 5, 1980, as part of his work schedule. Vern Gleaves, 975 Oak Street, said on April 7, 1980, this was discussed and the councilors agreed to a public hearing on May 12, 1980. He objected to council scheduling a public hearing and then changing the date. On April 2, the council had discussed whether this was an urgent matter. Their own record indicated there was no emergency. He ques- tioned whether this was the most important issue before the council at this time. Although Councilors Delay and Miller have their minds made up, he believed there would be opinions brought forth in the public hearing that the councilors have never heard. At a time when public officials' credibility is in question, this is damaging the council's credibility within the community. He would have all the officials present; he would like to hear all the comments. e 4/30/79--7 - Ms. Schue asked about the process. Mr. Long replied it was almost entirely within the discretion of the council. The dates could be changed; it was a question of equity and fairness. Ms. Miller did not feel that they would lose valuable comments. . The issues were straightforward and simple. They might hear the same comments 50 times instead of 80 times. CB 2107--An ordinance concerning defense to trespass; amending Section 4.805 of the Eugene Code, 1971; and declaring an emergency. Ms. Miller moved, seconded by Mr. Delay, that the bill be read the second time by council bill number only at a special meeting of the council, that a special meeting to be called for this pur- pose, as well as for other purposes that might be put on the agenda May 5, 1980, in the Council Chamber, and that enactment of this bill be considered at that time after a public hearing. Ms. Smith asked Ms. Miller if she would consider an amendment to the motion changing May 5 to May 12, in light of the Mayor's and Councilor Hamel's absence. Ms. Miller said she would not. Mr. Delay and Ms. Miller explored other dates with the Mayor and Councilor Hamel during that week. They could not agree on an accep- table date. e Mayor asked council to consider what they were doing. He felt they were not serving the public's best interest. He urged the motion's defeat. Motion carried 4:2, with Ms. Smith and Mr. Hamel voting no. The proposed no-smoking regulations were held over to the special Monday night meeting. Meeting was adjourned to May 5, 1980. ~)~ Charles T. Henry City Manager (Recorded by Beth Conant) CTH:BC:pm/CM8b15 e 4/30/79--8