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HomeMy WebLinkAbout09/10/1980 Meeting M I NUT E S EUGENE CITY COUNCIL e September 10, 1980 Adjourned meeting 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., September 10, 1980, in the City Council Chamber with the following councilors present: Betty Smith, Scott Lieuallen, D. W. Hamel, Gretchen Miller, Brian Obie, and Emily Schue. Councilors Eric Haws and Jack Delay were absent. I. ITEMS FROM MAYOR & COUNCIL, APPOINTMENTS, ANNOUNCEMENTS, AGENDA ADJUSTMENTS A. Appointments--Mr. Henry stated that the Mayor's recommendation for the Hlstorlc Review Board opening is Deirdre Malarkey, 1131 East 20th Avenue, to complete the unexpired term of Kenneth Helphand, ending January 1, 1983. Ms. Smith moved, seconded by Mr. Hamel, that Deirdre Malarkey be appointed to the Historic Review Board to complete the unexpired term of Kenneth Helphand ending January 1, 1983. Roll call vote; ~ motion carried unanimously. e B. Announcements--Mr. Henry stated that the Economic Development Committee meet1ng 1S tentatively scheduled for noon, September 12, in the Mayor's office; Joint Housing Committee meeting of September 16 has been postponed to September 23, at 11:30 a.m. in the McNutt Room; Civic Center Commission meeting will be held on September 23, in the McNutt Room at 7:30. Mayor Keller stated that he would be not attending the September 17 council meeting. Mr. Henry stated that the National League of Cities Conference will be held November 29-December 3 in Atlanta, Georgia, a non-ERA-ratified state. Mayor Keller noted that the council has not been sending anyone to the workshops or conferences in states that have not ratified the ERA. Unless there would be a change of policy, this would mean that no one would attend. Council consensus was to notify the National League of Cities that no one would be attending because of Georgia not having ratified the ERA. Ms. Smith noted that earlier the council had become slightly more lenient in this policy and said if there were specific responsibilities of one or more of the councilors that they would be able to attend such workshops or conferences. Mr. Keller noted that John Porter, Planning Director, has returned from Scotland and will give a presentation to the council at a e later date. 9/10/80--1 ~ II. ROUTINE ITEMS FOR COUNCIL APPROVAL A. Approval of Council Minutes of August 13, 1980 - Ms. Smith moved, seconded by Mr. Lieuallen, to approve the council minutes of August 13, 1980. Roll call vote; motion carried unanimously. B. Intergovernmental Personnel Act Grant (memo distributed)--Mr. Henry noted that this item would be stricken from today's agenda. Mr. Lieual1en stated he would like further information about assessment centers. Mr. Henry responded that this would be done. C. Call for Public Hearing 1. Alley Vacation for Fifth Street Public Market Partnership (AV 79-2) (map distributed) Mr. Henry stated that this is to recall a pUblic hearing to consider vacation of an alley right-of-way in the area of the Fifth Street Market. 'Since the utility company is planning to move in two or three years and utility easements could be retained now and removed later, there has been an adjustment in easement sites since first calling the public hearing. CB 2081--An ordinance repealing Ordinance 18556 and calling for another public hearing for October 15, 1980; re: alley vacation for e Fifth Street Public Market Partnership for property located in the block bounded by High Street, Pearl Street, East 5th Avenue, and East 6th Avenue. Ms. Smith moved, seconded by Mr. Lieual1en, 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 with Mr. Obie abstaining. Council Bill 2081 was read the second time by council bill number on 1 y . Ms. Smith moved, seconded by Mr. Lieual1en, that the bill be approved and given f.inal passage. Roll call vote; all councilors present voting aye, with Mr. Obie abstaining, the bill was declared passed and numbered 18696. Mr. Obie stated that the reason for his abstention is that he has a financial investment in the Fifth Street Market. e 9/10/80--2 ~ III. PUBLIC HEARINGS e A. New liquor license Outlet: Mother Nature's Natural Foods (package store license); located at 987 Garfield Street; applicant: Harold and Linda Schleef Mr. Henry stated that this is for a new liquor license outlet and various departments have reviewed the application. Ev~rything seems to be order and approval is recommended. Public hearing was opened; there being no testimony, public hearing was closed. Ms. Smith moved, seconded by Mr. lieuallen, to forward to OlCC with recommendation for approval, subject to conditions if any. Roll call vote; motion carried unanimously. B. Mr. Croteau stated that the June 18, 1980, memo contains an outline e and work program for the zoning ordinance update. Planning Commission felt that the program should be reviewed by the Citizen Involvement Committee and this was done. The Citizen Involvement Committee sent their recommendation to the Planning Commission. Mr. Croteau stated that a detailed work program on a modular basis will be available to the public. An article will appear in the neighborhood newsletters. Additionally, this process was outlined to the neighborhood groups this summer. Mr. Croteau stated that the zoning ordinance was adopted in 1968 prior to adoption of the 1990 Plan, Community Goals and Policies, and the Metro Plan. This ordinance is out-of-date with the current adopted plans and policies of the City. Some sections need to be totally redone. It is hoped that this review will be a thorough and evolu- t ionary process. Simplicity will be emphasized. Mr. Croteau said the process has been divided into modules to break it into more easily understandable packages. Some areas overlap. Citizens will be involved in all steps of the two-year process. The time schedule was designed around known priorities, yet to remain somewhat flexible. e " 9/10/80--3 Ms. Smith stated that in regard to the time schedule, portions pertaining to industrial areas will be completed prior to those portions dealing . with the commercial district. Mr. Croteau stated that the industrial sections will be completed in late 1980. Ms. Smith asked if commercial areas will be completed by that time also, and Mr. Croteau responded that they would. Ms. Smith suggested starting with commercial areas first as she feels that this will be a more thorough process. Public hearing was opened. Randall Hledik, Land Use Subcommitee, Eugene Area Chamber of Commerce, stated that guiding principles are necessary. They agreed that a workable zoning ordinance is needed. They had had some concerns about the word "drastic" in the memo, and felt the process should be thorough and "evolutionary." They are also concerned about the definition of "simplicity." They feel it would be very good if this could be accomplished within two years. They would like to see emphasis placed on this project so that it will occur as rapidly as possible. They would prefer to see the industrial area tackled first. They are looking forward to working with the City and Planning staff. There being no further testimony, public hearing was closed. Mr. Ob i e st ated th at he is concerned about the word "dr as tic. " He asked why this procedure would have to take so long and not be completed until 1982. John Porter, Planning Director, stated that the completion date of 1982 is due to budget cuts which resulted in only e half as much money being available for the project. They will be using present staff and some consulting services. Some elements will take longer because of the volume of public input that is anticipated. Mr. Obie asked if it would be necessary to wait until the total project was completed before changes in the ordinance were adopted. Mr. Porter responded that they would like to see modules adopted as they are completed. Mr. Obie noted further concerns with the residen- tial section being placed sixth in priority since many homes conceivably could be built in the meantime, affecting density, downtown housing, and energy considerations. These may have an impact greater on the community than the impact resulting from the industrial issues. Ms. Miller noted agreement with Mr. Obie. All areas are important but most development that occurs will be residential. She wondered whether R-3 zoning and infilling would be addressed through the residential section or in the developments standards portion. Mr. Lieuallen questioned the timing for inclusion of the Energy Conservation Policy Board recommendations. Mr. Porter stated that the council should decide how the process is to occur. If the council can agree on which areas have higher priority then that is what will be done first. They have already begun work on some areas but those could be put in a holding pattern should the council priorities be different. Mr. Lieuallen asked when the Energy Conservation Policy e ',./ 9110/80--4 ..--- Board would make recommendations regarding industrial and commercial e buildings. Mr. Henry stated that residential areas are first priority but they are applying for a grant to work in the commercial and industrial areas which they hope to receive in 1981. Ms. Miller stated that coordinating the timing of these recommendations with the zoning update process makes sense. Ms. Schue stated that the Citizen Involvement Committee had raised the issue of giving a higher priority to residential sections. Mr. Porter stated that the residential section is an area where the most retrofitting has occurred in the 1968 cod~ because portions of that code were no longer functional. Most problems in that ordinance were in central areas and changes will occur in R-3 and R-4 zoning. Solar energy uses will be considered in the second category. Mayor Keller noted that since the entire package has been promised to be completed by 1981, he would recommend proceeding as outlined. Mr. Porter ~tated that individual concerns on higher priorities should be incorporated in the work schedule. Mayor Keller said that perhaps additional funding for this project might be available. He would rather see a good job done in a confined period of time than have it stretched out. Citizen involvement would . not necessarily be impaired if the time were shorter. Mr. Porter noted agreement but stated that based upon the history of the zoning ordinance, 26 public hearings had been held by the Planning Commission and eight were held by the council. Some items were not discussed to e the extent they should have been, and that is the reason for the modular approach in the update. Mayor Keller noted agreement with the modular concept but indicated he would like to see it take a shorter time. Mr. Obie suggested that Mr. Porter come back to the council in a few weeks with a modified plan indicating residential concerns as higher priority and including cost estimates for completing the process by the end of 1981. Mr. Henry stated that since the public hearings take time, they cannot guarantee an earlier completion date. Mr. Henry stated that in comparison, neighborhood group refinement plans take years. Mr. Lieuallen stated that he would like to see the word "drastic" removed and the word "thorough" substituted. He would like to see this process easily understood. He indicated agreement with Mr. Obie's suggestion. In regard to the industrial element, he feels there is some urgency. He said that the atmosphere is one of urgency and asked what the best way is to handle this. Mr. Porter stated that until there is a settlement of where urban development will occur, it may be a difficult issue to deal with. Staff could work on an individ- ual basis where the council feels there is a problem in the indus- trial element. e 9/10/80--5 ------ Mr. Lieuallen asked by placing industrial development first, if that would address the concerns that have been heard in the last few weeks. Mr. Porter responded that it may not ever be able to deal with some of . these criticisms. Mr. Lieuallen said that residential concerns should then perhaps be addressed first. Ms. Smith stated that if this is to come back in two weeks, she would lfke to see more specifics as to what would be included in each module. Mayor Keller suggested each councilor turn in a prioritized work schedule to Mr. Porter. Using this information he will bring back a revised schedule and cost estimates for an earlier completion to council in two weeks. IV. ORDINANCE CONCERNING RESIDENCY REQUIREMENTS FOR CITY OFFICES (ordinance distributed) Mr. Henry stated that this ordinance is in response to Mr. Delay's questions regarding officials' principal residences. CB 2189--An ordinance concerning elections; amending Section 2.964 of the Eugene Code, 1971; and declaring an emergency. 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. Ms. Miller stated that she had talked to Mr. Delay and this is a housekeePingtlt item and not a change in direction. Mayor Keller noted that this would fill a gap in the City Charter. Roll call vote; motion carried unanimously. Council Bill 2189 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 councilors present voting aye, the bill was declared passed and numbered 18697. V. PERMIT FEES FOR CONFERENCE CENTER PROJECT (memo distributed) Mr. Henry stated that these fees would be substantial, approximately $1,400 per month, if the Conference Center and parking structure had to pay. This would be a situation where the City would be paying the City. This would not waive the building permit fees, just the fees required for use of streets. . 9/10/80--6 > Res. No. 3417--A resolution waiving street use permit fees in connec- e tion with the Conference Center and parking structure construction. Ms. Smith, seconded by Mr. Lieuallen, to adopt the resolution. Mr. Lieuallen asked if this would apply to the hotel construction. ~. Henry responded that it would not. Mr. Lieuallen asked if there would be overlapping of the use of space. Ed Smith, Development Director, stated that the hotel has its boundary and the lines are clearly defined. This would not affect hotel development. Roll call vote; motion carried unanimously. VI. CONSIDERATION OF METROPOLITAN WASTEWATER MANAGEMENT COMMISSION BUDGET FOR FY 1980-81 (memo distributed) Mr. Henry stated that the budget would pay for the October 1, 1980, to September 30, 1981. It has been approved by both Springfield and Lane County. This budget is divided into several sections: administration fund, operations fund, capital resources fund, and construction fund. Construction fund moneys will be forthcoming and the project will be over half completed, although they are two-plus years behind schedule. An increased users charge for operations will be considered in October. In the coming year, the commission will be responsible for operation of the e City contract. This would also occur with Springfield. There are concerns in the administration fund--these figures contemplate operation of plants under contract and continuation under MWMC. This would create several new positions. Mr. Henry stated that the staff, except for the operations engineer, would be for construction of the project and the east bank interceptor. They will need more staff now. The city will operate a plant under contract. Bill Pye, MWMC, is present to provide additional information. Ms. Smith said MWMC will be contracting for plant operation. It would be appropriate for the council to approve this today. Mr. Pye stated that the commission had received an almost $12.9-million grant for materials for pipe and the East Bank Interceptor, and are being considered for another $S.8-mi11ion grant. They will begin construction next summer. They should be finished with the East Bank Interceptor by December 1981. Mr. Lieual1en stated that he has mixed feelings and does not have confidence in the process. His concerns lie in the commitment of millions of dollars due to cost overruns caused by inflation. It will be an expensive project which will lead to facilities that would collect dangerous materials that have caused prob1ems.in similar plants where failure has occurred. He does not know where the money will come from or how people will pay for e its implementation, since Bancrofting may not be available. 9/10/80--7 Mayor Keller stated that he feels it is important that Ms. Smith take a message back to MWMC. He has concerns about adopting the budget because e it appears more people are being added. The council did not agree to create a second level of government. He feels if a larger staff is needed for a short period of time, then these individuals should be on contract as the first alternative. Ms. Smith stated that she would convey the concerns. Ms. Miller stated the she has heard the concerns expressed by Mr. Lieua11en and by others as well. However, there is no safe alternative which would allow development to occur at the urban density the council desires. Any alternatives would also be expensive. Ms. Smith moved, seconded by Mr. Lieuallen, to approve the Metropol- itan Wastewater Management Commission budget for fiscal year 1980-81. Mr. Lieuallen stated that this project began with a budget of about $105 million and a committed local share of $30 million. Now, the cost is projected at $140 million to $160 million. The length of time it takes for completion will also be a cost factor. There has been no public discussion of these issues. Mayor Keller noted that inflation has been expensive. Hopefully, they can reduce estimated costs. There are not many alternatives for this service. If it had to stop at this point, it would create more costs later on. Roll call vote; motion carried 5:1 with Councilor Lieua11en voting - no. VII. CONSIDERATION OF MEDICAL SERVICES, INC., REQUEST FOR A TEMPORARY INCREASE IN MOBILCHAIR RATES (memo distributed) Mr. Henry stated that MSI trustees have indicated that because of their bankruptcy situation, each division of the company must be self-supporting and not subsidized by other portions of the business. The letter received . states that if the rate increases are not approved, the Mobilchair division will need to be closed. The dollar figures in the letter have not been audited. This is a substantial increase in charges, increasing them from $9 to $47 for an average trip. Mobi1chair services are from bedrooms to vehicle. LTD has the only comparable service--Dial-A-Bus--which is $4 per round trip. However, this is curbside service. There are a number of alternat ives: to delay action; to deregulate rates; or to grant a portion or all of the increase temporarily. Staff would recommend deregulation. If MSI no longer is able to provide the service, the question is raised on how the service is to be provided. There are serious reservations as to whether a Mobi1cnair service can sustain itself. He added there will probably be fewer requests for this service if rates are raised to the extent of the request. Eric Mellgren and Pat Lynch, City Manager's Office, are available to answer questions. A representative from MSI and LTD will provide information. - 9/lD/80--8 , Mr. Obie said he has problems with the suggestion in the memo from the e Manager and thinks it is going in the wrong direction. It is not a question of whether the rates are quadrupled or not but what is a fair amount. The task force was charged with developing a system of costs, as well as a reasonable profit level. If this service is deregulated at this time since it is a quasi-public service, the work already done on this report would be wasted. Mr. Henry stated that he had not attended the task force meeting but was acting on what he was told.' It is up to the council to make a decision. The Touche Ross figures have not been audited; the figures in the request were submitted by MSI and their validity is in question. Michael Jarvill, attorney for MSI, stated that he does not quite understand the questloning of the figures. Touche Ross is presenting figures which they have obtained from MSI records. He presented figures comparing MSI's rates with those charged in other cities. MSI is coming before the council with a great deal of urgency as expressed in Mr. Giustina's letter. MSI has to go before the bankruptcy court November 3, unless they get an extension, and present a plan approved by the creditors' committee which is composed of the ten largest creditors of which Mr. Giustina is chairman. They must present a plan which shows how it can be profitable and dispose of those operations of the business which do not make a profit. The creditors' committee is aware that the Mobilchair division is losing money. It either has to become profitable or be shut down. If the creditors' committee petitions the court, then the court can instruct MSI to stop wheelchair coach operation. The MSI board of directors met this e morning and they decided that if the rate increase was not granted, Friday, September 12, will be the last day'of operation for this segment of their business since they have no alternatives. A delay would put them in the same position as a denial. Mr. Obie asked if the figures presented were based on the Touche Ross formula. Mr. Jarvill stated that he is 90 percent sure that they are. Mr. Henry stated that he would like to know if the committee took into account that the rate increase would go above the Touche Ross guidelines of $23,000. Mr. Jarvill stated that the creditors' committee is separate from MSI. Mr. Henry stated it looks like the figures were put on the Touche Ross form and 1-1/2 positions were then added at a sizable cost. Mr. Obie indicated concern that someone from Touche Ross was not present to respond. He asked what is holding up the attorney's letter which is holding up the process. Mr. Jarvill stated that Touche Ross was supposed to have sent up a letter which they did not receive. They asked for a copy and it was provided to them just yesterday. Mr. Lieuallen asked how long Mobilchair had been operating at a deficit. Mr. Jarvill responded approximately four years, as far as he knew. Mr. Lieuallen asked if it had been subsidized all along by the other portions of the company. Mr. Jarvill responded that that probably was the case. Mr. Lieuallen asked if it had been subsidized by the ambulance division. e Mr. Jarvill responded that it could have been. 9/10/80--9 ~- Mr. Lieuallen asked if Mobilchair is regulated like the ambulance portion of the business. Mr. Henry responded that it is a quasi-public service e and the regulations are not as strict. Mr. Lieuallen noted that a question had been raised before as to whether the ambulance portion of the company was subsidizing other portions. He thought the council had been assured that that division was not subsidizing any other division. Mr. Obie indicated concern about deregulating a portion of this business without requesting an opinion from Touche Ross. He suggested approving the rates for two weeks and asking for' an opinion from Touche Ross. Ellen Bevington, LTD, stated that have completed adoption of their transfer plan. Route accessibility is now being mandated. This will probably occur by 1982 or 1983. Their board has determined that 50 percent of their major routes will be accessible during peak hours. They will maintain their curb-to-curb service and will be phasing out Oial-A-Bus in 1982-83. They have been contacting other agencies who have moneys for handicapped and elderly transportation in developing other alternatives with LTD being the lead agency. Oial-A-Bus is at capacity and costs $12 to $15 one way. They cannot expand this service and they will replace Dial-A-Bus with service by private contractors. They are in the process of reviewing proposals. MSI is one of several companies that may be interested in bidding for this service. Taxis have shown an interest. They are starting to look for other agencies to participate in funding. Mayor Keller asked what happens if no successful, reasonable bid is proposed. Ms. Bevington responded that they would make do and continue e turning people away. They have not seen the proposals yet. They are not asking contractors to buy new vehicles or hire new staff. Mr. Henry asked if there are terms attached regarding maximum charges. Ms. Bevington responded that LTD has curb-to-curb service while Mobilchair has door-to-door, and they are requiring only first aid certification. They are reserving the right to reject any and all bids. The bid al so could be offered to more than one contractor. Bids are based on the cost of a one-way trip. Mr. Jarvill, in clarifying an earlier statement, stated that each division of MSI must stand on its own. The profit of the ambulance division could ' go into the Mobilchair division but the costs of one division are not "pumped up" in order to cover the costs of another division. Mr. Obie asked when they would receive the task force recommendations. Mr. Mellgren stated .that they are awaiting the Touche Ross audited figures. The figures which were inserted into the draft copy for Mobil- chair were done by MSI, not by Touche Ross. An additional report should be forthcoming to the committee within two weeks and perhaps a report can be made to council in 30 days. - 9110/80--10 . Mr. Obie stated that the council cannot rely on MSI figures; figures must come from either Touche Ross or the Finance Department. Ms. Smith moved, seconded by Mr. Lieuallen, to delay action on this item. Mayor Keller asked when the figures could be obtained. Mr. Henry responded that this could be put on an agenda in about two weeks. He asked if the comparative figures for other cities were one-way or round trip. Mr. Jarvill responded that to his understanding, they are o~e-way. He stated that in two weeks, they would be out of the Mobilchairbusiness. In order for them to reopen the Mobilcha;r division after that, they would have to obtain permission from Federal court and the creditors. committee. Mayor Keller noted that this item could come back in one week from today if it is as critical as they have said. Ms. Miller wondered if MSI had taken into account decreased ridership with the increased rates. It is not clear how many riders they will have or why they think they will have more in the future. She does not know whether it is the patient or an insurance company that pays the fees for Mobilchair, but does not feel that people will pay $50 per trip. The figures are not reliable enough to proceed on. Mr. Obie stated that bringing this item back in one week with the necessary information would be nearly impossible but it would be the best solution; e but if they wait for 30 days, the Mobilchair division will be out of business. They could approve the rates for 60 days. Ms. Smith suggested adding a time frame of one week to the motion. Ms. Schue expressed concern for those who might be left without transpor- tation. She agreed with Mr. Obie.s suggestion to wait until information is available before a decision is made. Mr. Hamel suggested deregulating rates for 60 to 90 days and see if MSI is still in business at the end of that time. Ms. Smith withdrew her previous motion with consent of Mr. Lieuallen. Ms. Smith moved, seconded by Mr. Lieuallen, that the City deregulate Mobilchair rates for 60 days. Mr. Jarvill noted that having a decision within 30 days would be important to them in order to do their planning. I Ms. Miller asked if the rates would go back to the present rates at the end of that time. She asked what the rationale is. Mr. Obie stated that he would hope that staff would have additional information by then. Roll call vote; motion carried 5:1, with Mr. Lieuallen voting no. e The meeting was adjourned to September 17, 1980. R~Ubmitted, Charles T. Henr~~ City Manager (Recorded by Lynda Nelson) LN:al/CM8al 9/10/80--11