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HomeMy WebLinkAbout10/22/1980 Meeting - e M I NUT E S Eugene City Council City Council Chamber October 22, 1980 11:30 a.m. PRESENT: Councilors Betty Smith, Scott Lieuallen, Brian Obie, Eric Haws, Jack Delay, D. W. Hamel, Gretchen Miller, and Emily Schue. Adjourned meeting of the City Council of the City of Eugene, Oregon, was called to order by His Honor Mayor Gus Keller. 1. ITEMS FROM MAYOR & COUNCIL, APPOINTMENTS, ANNOUNCEMENTS, AGENDA ADJUSTMENTS ~. A. Sacred Heart Nurses' Strike Ms. Schue said that the Concerned Citizens group has written to Sister Monica and hope to receive a reply within 24 hours. She requested that councilors give information to either her or Ms. Miller regarding medical concerns of the community. Mr. Haws asked if the City has authority to force this into binding arb itrat i on. Mr. Henry responded that the City does not have that authority. e Ms. Miller stated that the 1981 State Legislature will probably look into situations such as this because of this strike. B. Appointments Mr. Henry stated that staff is interested in proceeding as rapidly as possible with Planning Commission appointments. Eighteen applications are on file. The terms of Planning Commissioners Bernhard and Barkman will expire and Commis- sioner Maxwell has resigned. The application deadline is October 31 and the . council will have materials sent to them so that they can ballot on interviewees and determine a time for the interviews on November 5. C. Industrial Land Study Mr. Henry stated that Springfield City Council has approved the Industrial - Land Study but has made no appointments to the task force. D. Meetings October 22, 4 p.m., a tour will be held of the Performing Arts Center/Con- ference Center. Council Goals Session begins on October 23 at 5 p.m. Metro- politan Wastewater Management Commission meeting will be held on October 23. - MINUTES--Eugene City Council October 22, 1980 Page 1 . Monday, October 27, Open House at City Hall will be held from 6 to 8 p.m. with the council meeting beginning at 8 p.m. The Animal Control Task Force will meet at 4:30 p.m. Monday in the HCC conference room. Mayor Keller noted that any items which the council would like to have discussed at the League of Oregon Cities executive meeting should be given to him prior to that meeting on October 30-31. II. ROUTINE ITEMS FOR COUNCIL APPROVAL A. Approval of Council Minutes of October 8, 1980. Ms. Smith moved, seconded by Mr. Lieuallen, to approve council minutes of October 8, 1980. Roll call vote; motion carried unanimously. B. Call for Public Hearing. 1. Easement Vacation for Roger Bird (EV 80-4) (map distributed). CB 2207--An ordinance calling for a public hearing for December 3, 1980; re: easement vacation for Roger Bird located between Cal Young Road and Sharon Way west of Coburg Road. e 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. Roll call vote; motion carried unanimously. Council Bill 2207 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 and passed and numbered 18714. I I I. CONSIDERATION OF MEDICAL SERVICES, INC., AMBULANCE RATE INCREASE REQUEST (information distributed) Mr. Henry stated that this item had been discussed previously at the October 13 and October 15 council meetings. Because of the time frame relating to Chapter 11 bankruptcy, a decision on the rate increase must be made today. A sub- stantial amount of information has been received from MSI. The rate increase . MINUTES--Eugene City Council October 22, 1980 Page 2 e should be granted if it is the council IS intent to keep MSI in business. The way the company is operated now, this increase would provide a very slim margin for profit. There could be cash flow problems. Certain items do not appear in the information that was distributed, such as $6,000 per month for debt service for equipment payment costs. Gross billable income figures must be compared with the net billing receivables. Staff conclusions are that there should be changes in the organization and that consultant charges are very high. Staff questions the number of billing clerks and other personnel. Various dispatch methods should be considered by MSI. There are changes which could be made in the operations and they should be seriously considered. Even with the rate increase MSI will have a hard time. Staff feels that the rate increase should be granted conditionally upon MSI agreeing to undertake reorganization in the management area and in support services. Mr. Obie indicated that he agreed with Mr. Henry's analysis and recommendations. The rate increase might be just barely enough. He requested that Wesley Morgan, MSI President, state how he views the management organization during the next six months. Mr. Morgan responded that they are pursuing reorganization and with the elimination of some changes, they feel they can make it. They've outlined changes in computer costs for a lesser system and have cut back from 82 to 68 employees. They are making cuts as rapidly as they can. Their goal is to cut back $15,000 a month in expenditures. Mr. Obie asked about the management structure and ownership. Mr. Morgan stated that there must be changes. e Since the ambulance service is a quasi-public business, ownership should be of a quasi-public nature; perhaps, a non-profit agency. They will do what they must to make the service able to meet its expenses and provide the service to the public. Mr. Haws stated that a memo from the City Manager's Office said $79,000 of MSI's budget is listed for personnel costs plus $8,500 for consultant fees. He asked about the consultants' fees. Mr. Morgan responded that Kim Short is being cut from one-half to one-quarter time. and that George Ralph will be leaving at the end of the month. Mr. Morgan stated that Mr. Ralph makes $2,500 per month and Mr. Short makes $2,100 per month. Mr. Morgan stated that Bill Leonard makes up the rest of the consultant fees, that Mr. Leonard is making $4,000 per month, and that the contract says he must be paid. Mr. Haws asked about the amount of money being paid to Mr. Leonard. Mr. Morgan stated that due to the voting trust, payment must be made as a stipulation in the trust. To not pay him would obviate the trust. Mr. Haws asked if Mr. Giustina has asked the bankruptcy court if payment to Mr. Leonard can be set aside. Mr. Morgan stated that this has not been done as far as he knows. Mr. Morgan stated that there is a trust agreement on the stocks. The Leonards own the assets. e MINUTES--Eugene City Council October 22, 1980 Page 3 e Mr. Haws wanted to know if consultants are necessary. Mr. Haws said that the council can either decide to grant a temporary rate increase or could decide to not grant a rate increase. If there is a rate increase granted, they would be buying time to look at other options. Mr. Morgan stated that he could not run the company without Mr. Leonardis advice and that he has been invaluable for rescheduling salaries. He does not know enough about the business to run it alone. Mr. Morgan said that if Mr. Leonard were not there he would need to hire a consultant at a s imi 1 ar pay rate. Mr. Haws asked whether, if the rates are raised now, the company will come back in another six months for an additional rate increase. Mr. Morgan stated that probably in six months they would be going through what they are going through right now. Ms. Smith asked whether, if the rate increase were granted, any extra money would go to payoff debts from their other operations. Mr. Morgan responded affirmatively. Ms. Smith asked if the money would go to other operations with debts incurred elsewhere. Mr. Morgan responded that that would not occur and that the Amarillo business was a "paper balloon." However, there were computer costs. Mr. Delay asked for the current staff assessment of the level and quality of service. Eric Mellgren, City Manager's Office, stated that the quality of care is in question, particularly in regard to errors and inadequate training. MSI has indicated they are working on upgrading these, however. They have seven or eight people who are provisionally certified by a local physician. Each e week, MSI submits to the City a list of its personnel who worked that week as part of the monitoring process. The State Board of Medical Examiners has indicated that 7 of the 14 personnel were not State-certified. Mr. De 1 ay asked why standing orders have been withdrawn. Mr. Mellgren indicated that standing orders have been rescinded by the three major hospitals, which means the hospital must be called prior to administering any procedure. The exception is that McKenzie-Willamette will allow MSI personnel to use their judgment in cardiac emergencies, since time is of the utmost importance. Mr. Delay asked if any of the requests for treatment have been denied by the hospitals. Mr. Mellgren stated that they have been. He understands that they have been with- held until arrival at the emergency room. Mr. Delay asked if the quality of service has been lowered. Mr. Mellgren stated that it has been lowered. Ev Hall, Fire Chief, stated that in May, he was instructed to monitor MSI activities. Before May, the general opinion was that they had been doing a very good or excellent job. Since then, he has received only one report of excellent care; most reports indicated either good or fair care with a few poor reports. The quality now is considerably lower than a year ago but mainly falls within the fair category. e MINUTES--Eugene City Council October 22, 1980 Page 4 e Mr. Delay wondered whether, with the projected budget, services will be brought back up to the previous level. Mr. Morgan stated that the three different hospitals have established three different sets of protocol. They have written to the hospitals asking for case review and a common set of protocol. They are working on upgrading the personnel. Of 23 men, 16 are EMT 3's either certi- fied or provisional. Standing orders are based upon trust and confidence of the doctors. It is an individual procedure granted to individual paramedics, not a blanket policy. Service may be below what it was but it is still good and improving. Mr. Delay stated that the Amarillo operation owes $110,000 to the Eugene ambu- lance operation. He does not see that as a "paper balloon." He asked if there were real expenditures. Mr. Morgan replied that there were some on-site costs for personnel and computer costs. He is going down there today and will sell the operation tomorrow. Eugene's ambulance operation should receive a sub- stantial portion of the money owed them from the Amarillo operation. Mr. De 1 ay asked if this money.would go into the ambulance division or into another d i vis i on of MS 1. Mr. Morgan responded that the moneys would be used for debt repayment. Mr. Haws asked what contingency plans, if any, the City has if MSI converts to Chapter 7 bankruptcy. Mr. Henry responded that they have developed an interim plan with Springfield which could be in operation for a limited period of time--two or three months at the most. Mr. Haws asked if the recommendation is to approve the rates rather than fall back on the contingency plan. He asked if e this would be favorable to the creditors' committee. Derrick McGavic, attorney for the creditors' committee, stated that it would be favorable. Mr. Haws asked what would happen if MSI liquidates. Mr. McGavic responded that that is pri- vileged attorney-client information. Mr. Haws asked what would happen to the reclaimed money from Amarillo and if it would go to the creditors. Mr. McGavic stated that it would be used for debt reduction. Mr. Haws asked when MSI's plan would be submitted to the court. Mr. McGavic said that it would be submitted November 3, 1980, or the following day. Mr. Haws asked about the trust arrange- ment from which Mr. Leonard receives $4,000 per month. Mr. McGavic stated he thought it was Mr. Leonard's salary. Mayor Keller stated that he has received petitions with approximately 400 signatures in support of the increase. In regard to the number of people in the billing and general employ, staff is recommending that a serious look be taken to see if a reduction can be made. Mr. Morgan stated that they are already moving in that direction. One full-time staff person has been cut back to six hours per day and another has been cut back to half-time. Another staff person is leaving. Mr. Henry stated that there are some divisions of the company that are self-supporting, such as delivery of bodies to the morgue and contract first aid. He asked what will happen to those services if MSI moves toward Chapter 7. e MINUTES--Eugene City Council October 22, 1980 Page 5 e Mr. Morgan said to fulfill OSHA requirements certain businesses and industries have contracted with MSI to have them supply first aid equipment and have available personnel to administer first aid. He agreed that they are profi- table, and a time line has not been established for shutting down these ser- vices. Mr..Henry asked if this is part of the plan which will be submitted to the court. Mr. Morgan stated this is all one corporation operating with over- lapping personnel. Ms. Miller questioned MSI's policy of "women in the office and men in the field.1I Mr. Morgan stated that they have two or three women EMT's. Ms. Miller asked what ongoing mechanism will be used to see that the council recommen- dations are enacted if the rate increase is approved. Mr. Henry stated that a monitoring mechanism is part of the task force's charge. The Touche Ross study states that the effectiveness of the model depends on the effectiveness of the monitoring agency, reviewing the budget and the operation. This would be similar to the City Manager Office's review of any other City departmental budget. Mr. Lieuallen stated that after the Springfield Council meeting, the newspaper quoted Mr. Morgan and he asked if that was an accurate reflection of what was said. Mr. Morgan responded that it was. Mr. Lieuallen stated that at last week's council meeting, when the rate increase was being discussed, it was mentioned that this rate increase would be used for current operations and that other moneys resulting from items being sold and a different internal management e woul d be used to amorti ze the debt. The newspaper stated that only 30 percent of the debt would be amortized from other sources. It stated that the rate increase would be used to pay the debt. Mr. Morgan responded that MSI sub- sidized the rates in the past and the public received the benefit of those rates which caused the debts. It will take not only liquidation of some assets, including sales of the rental and sales division as well as selling the building, but use of current profits to reduce the debt. Mr. Lieuallen asked if he had misunderstood last week when he thought they had said the rate increase would be used strictly for current operations. Mr. Morgan stated it will take a combina- tion of both liquidation and profits to payoff the debts. Mr. Lieuallen asked about the building being leased to a corporation. Mr. Morgan st ated that MSI is using the entire building right now, but they do not need all the room. There is currently a proposal for retail space on the ground floor. Mr. Lieuallen asked if the entire building has been in use since it was opened. Mr. Morgan responded that it has been. Ms. Schue stated that she thought she understood that the company feels justified using the rate increase to payoff part of the debt because the public received the benefits of the service when the debts were incurred. She asked for clari- fication, adding that MSI used all of the building, but not all the space was e MINUTES--City Council October 22, 1980 Page 6 r. e necessary and she was having difficulty reconciling the two statements. Ms. Schue asked why the public should pay for the level of luxury MSI was enjoying but that was not needed. Mr. Morgan stated that applies to only a very small part of the dollars lost in the last two years. The building was designed to fit Mr. Leonardis operational concept where all of the room was needed. This is not the case now due to the changes in the company. Ms. Smith moved, seconded by Mr. Lieuallen, to approve the temporary rate increase for six months with a continuing . monitoring system. Mr. Haws stated he does not feel he has much choice. The best option must be determined. By not approving the rate increase they would force liquidation. He encouraged looking at the contingency plans. The amount of money paid out to consultants may not make a great deal of difference in six months. He does not feel there is much choice but to grant the increase. He noted that they need time to review and to come up with a better plan. Mr. Delay stated that he has been working on this issue for a couple of years. He has met many dedicated individuals. He urged the council to consider that if they feel there is no choice now, and feel that MSI must be given what they need or they will move toward Chapter 7 bankruptcy, then the council may never have a choice. In six months MSI may come back and again say they must have a rate e increase or they will liquidate. They no longer have the confidence of the medical community as they had a few months ago and the quality of care is less than expected. He feels that their problems are due to incompetent management, some poor decisions were made, including having a large central facility and the fact that there is nearly as much turnover in management as there has been in paramedic personnel. The council is being asked to accept the same concept since Mr. Leonard is the consultant. There is already a great deal of public money involved in this company. Equipment, including video equipment, was purchased with a grant of $142,000+ and he has heard many rumors about this equipment not being used properly, like taping Marist football and basketball games. Due to the things he has heard in the past two years, he cannot support the rate increase. He does not feel the rates should be that high, but does feel that the company was improperly managed. He has heard today that in addition to previous cutbacks another $15,000 also could be eliminated. He asked how much more could be cut. He asked if the City needs to pay for past ,mistakes of MSI. If he had confidence that the company would be properly managed and that in the past proper decisions had been made, he might feel differently, but as it is, he cannot support the motion. e MINUTES--City Council October 22, 1980 Page 7 e Ms. Schue stated that she feels the council is between lIa rock and a hard place.1I The firefighters are EMT lis, but heart attack victims require an EMT 3 level. Also, since firefighters are in the business of fighting fires, she feels the service level provided would not be as good. She asked what the council IS obligations are to citizens for emergency medical services. If there were alternatives ready to take over, that would be desirable. She feels, however, that she is compelled to vote for the rate increase. She wants this tied to the monitoring system and wants to hear more later regarding service delivery. Mr. Lieuallen noted that he would vote against the motion for several reasons. Last week, Mr. Morgan stated that ambulance services are in trouble allover the country. Additionally, the management history and inability to get a clear picture of the financial situation concerns him. It seems that a non-profit delivery ~ystem would be best. Mr. Morgan has stated that the council will be faced with another .increase request in six months. Mr. Obie stated that a rate increase was granted earlier this year in the base rate to $80 but the requested increases in other areas were not granted. He feels the council must take some of the responsibility for the conditions at MSI. Perhaps the council should have acted faster and given more encouragement. for MSI to ask for rate increases or had the Touche Ross study finished faster. Unless the council is prepared to increase the City's tax base this should be kept a non-City agency. He feels it should continue as a user-pay system. He does see some encouraging things in the management structure at thi~ time e since Mobilchair is now profitable, they are selling the rental and sales operation, and they are looking at leasing a portion of the building. He feels progress is being made. It is impossible to get the best service at the lowest rates; that just does not happen. The number one reason that businesses fail is because they do not charge enough. When the service is needed, the quality must be good. He hopes that the council and the City can be part of the solution and not part of the problem. Roadblocks must be eliminated so that excellent service can be provided. Ms. Miller stated that if the temporary rate increase is approved, the council is doing no more than buying six months of time. There is a need to look closely at the management organization during this time. It may be questionable to use the same management concept of the consultant that got MSI into problems in the first place. She will go along with buying more time. City staff should continue refining the contingency plans and continue ongoing management review of this company. This is not a free enterprise model and those analogies do not apply. Insurance companies do not seem to be interested in the amount of cost but will just raise their premiums accordingly. No one ever seems to know when rate increases have gone too far. She will go along with the recommendation for the temporary rate increase. She is dubious of the management. If reports indicate the quality of service to be poor, the council will have to stop buying time and move to an alternative. e MINUTES--City Council October 22, 1980 Page 8 e Mr. Haws stated that a vote for the temporary rate increase is a vote of desper- ation. He thought a six-month rate increase would be revocable and asked if the council could lower the rates prior to the end of six months. Mr. Henry stated that the City has never undertaken the approach of lowering approved rates and it would depend on future actions. The council does have the legal authority to revoke the rates. He noted that City representatives would be attending the court proceedings. Mr. Haws stated he is still concerned with the $100,000+ that is owed from Amarillo because it came from public money locally. He asked if the rate increase could be structured so that it would be a loan contingent upon receiving that money back from Amarillo. Stan Long, City Attorney, stated that it might be possible if enough information were available. The rate schedule could be changed when certain events would occur that would reach that result. Mr. Haws stated that he does not mind allowing the rate increase and working on a contingency plan but he would like for the City to get that money back. Mr. Delay noted that the $80 rate increase previously approved by the City of Eugene was not approved by the City of Springfield. There was always a cloud around Mr. Leonardis approach in requesting increases. Representatives of both cities had asked him if a rate increase was needed so they need not feel they are responsible. Mobilchair was regulated originally at the request of MSI. He feels they are not accountable for their actions. He cannot support the temporary increase. There is not adequate justification. If the council has no choice now, when will they ever have a choice and what assurances for accounta- e bility are there from MSI? He asked how they will know more in the next six months. Mr. Hamel stated that he was against the rate increase in July. However, that was listening to the old management and that is not the case any longer. The ambulance service is needed. He has been in favor of there being two services in this area for some time and he feels competition is needed. He was not in favor of granting a rate increase previously but feels there is no choice at this time. Mr. Haws moved to amend the motion so that the City of Eugene would be reimbursed for the difference in the rate increase either in the plan for MSI or upon liquidation and that the money be received back in total. Mayor Keller asked why the money should come back to the City. Mr. Haws stated it could be held in trust for those people who paid it. The motion died for lack of a second. Mr. Lieuallen noted that this sounds as though it could be a class action suit and perhaps that is what should be done. e MINUTES--City Council October 22, 1980 Page 9 e Mayor Keller stated he did not realize the council would be forced into the role of financial managers. In the next six months, the council should ask to receive the same reports as'the board members of MSI receive. He agrees with Mr. Obie that in the past the service was excellent and comparable in cost to what was provided in comparable cities at higher prices. There are not many alternatives but a reporting process can be developed. Mr. Lieuallen asked Mr. Morgan whether, if the motion passes, the City Manager's Office should be provided with information and be allowed access to records of MSI. Mr. Morgan stated they would provide that information. Roll call vote; motion carried 6:2, with councilors Delay and Lieuallen voting no. Ms. Miller asked when staff would refine and develop the contingency plan. Mr. Henry responded that in a day or two, the short-range plan would be avail- able and also a long-range plan is being developed which will be done by the task force. Data is being prepared for the next meeting. Mr. Delay noted that if the City is serious about considering alternatives, it will take a different level of effort from the present one. Mr. Henry stated that one problem would be to determine the front-end capital. Mr. Henry stated that due to the length of this topic, the last three items on the agenda would be held over. Item IV--BALLOT MEASURE 6--will be moved to the October 27 agenda but in the e meantime, a press conference will be held to get the word out to the public. This measure would be devastating in many ways. Ms. Smith noted that the majority of the council has read the materials since they have had this item place on the past three agendas. She would like for the council to go on record to let the public know how they feel about this measure. Ms. Smith moved, seconded by Mr. Lieuallen, that the council go on record in opposition to Ballot Measure 6 with further discussion on October 27. Mr. Delay stated he feels that they should have council discussion on this item prior to taking a stand to have the proper impact of the council's actions. Ms. Schue stated that she understands Mr. Delay's request to provide the public with this information, but timing may be a problem. Mr. Lieuallen noted that all of the councilors have looked at the materials and know the effect that it would have. This measure would "gut" local control and empower the State. He suggested that a presentation be made Monday evening. Mr. Delay noted that it might be more effective to have everyone support the motion with an adequate airing of the problems later. Mr. Obie added that previously Measures 6 and 11 failed and the council had not taken an official position. Discussion continued and Ms. Smith withdrew her motion with the consent of Mr. Lieuallen. e . MINUTES--City Council October 22, 1980 Page 10 . V. CONSIDERATION OF METROPOLITAN TREATMENT PLANT OPERATION (memo distributed) Mr. Henry stated that the City MWMC representatives should have the benefit of the thinking of the council on this issue. It needs to be determined whether the council feels it would be feasible for MWMC staff to operate this plant or to have a contractual arrangement for operation of the plant. There are three alternatives being considered. There is' an error in Alternative 1--80 people rather than 40 or 60 would be required for staffing and there are now ten or twelve. There are six reasons for the staff recommendation against direct MWMC opera- tion of the plant. It is contrary to City policy, generally, to encourage creating special-purpose bureaucracies if they can be avoided because (1) they will probably add unnecessarily to total government costs by requiring their own staff support services; (2) they encourage pay scale competition between jurisdic- tions; (3) there is potential for confusing the public in the areas of respon- sibility; (4) the City has a good track record of providing uninterrupted service at reasonable cost while the present MWMC staff has no record of service in this area; (5) it was understood by City staffs as well as many of the representatives from both cities that Eugene would contract for plant operations; and (6) since the cities of Eugene and Springfield will operate the plant under contract for one or two years, a suitable trial period will exist. If the trial period proved unsatisfactory, they could go to the large staff concept but it would be difficult to change back to a contractual arrangement once a large e staff was established. Ms. Smith noted that in regard to the intergovernmental agreement, the legal staff and MWMC have different opinions and feel this can be interpreted either way. The intent was for contracting as being the preference. Springfield is supporting the concept of a separate agency. There is no consensus at this time for operation of the facility. Staff recommends council delay on the decision since it does not need to be made immediately. Mark Westling, MWMC representative for Eugene, stated that he does not know if a delay for delaying alone would be useful. The only purpose would be to try to formulate a procedure for arriving at a better level of agreement between Eugene and Springfield. Postponing the decision would be within that framework and provide an opportunity for the jurisdictions to review the situation because it represents a difference of opinion in the interpretation of the intergovern- mental agreement. It was assumed that the City treatment plant would continue to operate for at least two years. If possible, a decision should be reached as soon as possible for the benefit of the personnel operating the plants cur- rently. This does not create a good situation and the sooner it can be settled, the better. e MINUTES--City Council October 22, 1980 Page 11 , . e Mr. Delay asked for clarification since this seems to represent a change of direction. Ms. Smith said the commission has been talking around this for several months. Not all commissionersjs:taffhave the same opinion of contracting. At the goal session a few months ago, it was identified as a decision that needed to be made. Mr. Delay asked what the argument in favor is. Ms. Smith responded that the argument maintains that MWMC could operate better as a separate agency than as a contractual situation. There have been some misunder- standings in regard to design of the East Bank Interceptor. Trust level is also involved. Mr. Del ay asked if the arguments have been di scussed. Ms. Smi th responded that they have been somewhat and will be again tomorrow morning. Cost differences will also be discussed. She feels it would be cheaper to contract and use existing staff but some do not see that. Doug Cook, Public Works, stated that if MWMC runs the plant they feel they would need to be looking over the shoulders of the contract agent which would require staff and not be a staff savings. Mr. Delay asked if the commission members are new. Ms. Smith responded that some are. Mr. Westling stated that he had a question regarding the interpretation that Eugene would operate the plant. He said that was staff level communication. He has served on the Advisory Board as Eugene's representative. Mr. lieuallen left the meeting. e Mr. Westling continued that the only decision that was reached in the Advisory Committee was to avoid creating another level of government. The concept of building a big new staff went with that. MWMC has been attempting to look at the operations issue and options. At an early step in the process, lane County operating the plant was erased as an option. That was also true of Springfield, which left them with Eugene operating the plant. The other option was to operate with staff being set up. As a result of the process, they have not found a good argument that will document that it is more effective operation either regionally or by the City of Eugene. This would leave them with no reason to do anything but contract with Eugene which would be the original intent. This should be reviewed by the jurisdictions. There were no arguments for or against except the principle of establishing another governmental entity in this region. This is calling for subjective and political judgments. Mr. Delay asked Ms. Smith if that was her understanding. She stated that she would suggest going back to the beginning and reviewing the intergovernmental agreement. Mr. Delay stated that he felt that would be the proper way to proceed. This issue will have to be resolved. He agrees with Mr. Henry that the one alternative of creating a separate agency leaves no future option. The option of contracting leaves the option of a separate agency open. e MINUTES--City Council October 22, 1980 Page 12 . . e Ms. Schue asked for clarification regarding press reports that had come from Springfield City Council regarding engineering. Don Gilman, Public Works, stated they have reviewed their performance on the East Bank Interceptor. The engineering was done properly and on time and did not create delays for Metropolitan Wastewater Management Commission. This was performed excellently under difficult circumstances. They were directed to begin the East Bank Interceptor after Federal dollars were cut off in November. Des i gn cr iteri a were established in December and materials and bids were let in February. The first phase of construction wilJ begin in March. Mr. Henry noted that talking about plant operation and a discussion of engineering design are two different topics and should not be interrelated as relevant arguments. Ms. Smith stated that she would like the council to support the intent of the intergovernmental agreement to contract the services. They could ask for a delay, and if this is not approved, they could ask for a review of the intergovernmental agreement intent. Mr. Obie moved, seconded by Mr. Hamel, to approve the staff recommendation supporting contractual operations if a decision is required tomorrow of MWMC representatives or to suggest a delay to review the intergovernmental agreement. Mayor Keller noted that Mr. Lieuallen had expressed his support of this motion prior to departure. Mr. Obie asked when the issue of sewer charges would be back before the council. e Ms. Smith responded that this would be next week and that at this point Spring- field is not willing to go along with the $5 charge. Mr. Cook stated it would appear on the November 5 agenda. Roll call vote; motion carried unanimously. The following items were held over until October 27: VI. PROPOSED EXTENSION OF ROOSEVELT BOULEVARD--STAFF PRESENTATION (memo attached) VI I. GROWTH MANAGEMENT STUDY: AN ANALYSIS OF OTHER CITIES (memo attached) VIII. CONVENTION AND VISITORS BUREAU, INC.--QUARTERLY REPORT (report under separate cover) The meeting was adjourned to October 27, 1980. Respectfully submitted, ~J~ Charles T. Henry City Manager e (Recorded by Lynda Nelson) CTH:LN:sba/CM26b10 MINUTES--City Council October 22, 1980 Page 13