HomeMy WebLinkAbout08/12/1981 Meeting
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M I NUT E S
. Eugene City Council
City Council Chamber
August 12~ 1981
12 noon
COUNCILORS PRESENT: Gretchen Miller, Brian Obie~ Betty Smith, Mark Lindberg~
D. W. Hamel~ Cynthia Wooten~ and Emily Schue.
COUNCILOR ABSENT: Eri c Haws
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. Automobile Towing
Mr. Obie stated the council had received a memo from Police Chief Packard
regarding towing. Mr. Gleason added that staff is recommending consideration of
a signing ordinance for private parking lots to be placed on the next agenda and
if council wants more to be done~ staff could be so directed.
Council Holiday i
. B.
Mayor Keller stated that the council takes a two-week holiday in the end of
August. He had assumed there would be no meetings for the balance of the
month. However~ staff had scheduled a meeting for next Wednesday. He asked
whether councilors would be in town and if they planned to attend the council
meeting scheduled for August 19. If not, there will be no meeting. Mr. Gleason
indicated an extremely short meeting could be held. Council discussion followed
to determine how many councilors would be available. Dave Whitlow, Assistant
City Manager~ stated that the problem is that current ambulance ordinance is not
consistent with what is occurring. With the current ordinance~ no one can
transport patients from workplaces to hospitals except ambulances. Th e bill s
and claims also need to be authorized for payment. This item should be
considered.
Council consensus was to schedule a meeting at 7 p.m.~ Monday~ August 17.
Discussion followed to determine how many councilors would be available on
August 18 for the joint school district/council meeting.
C. Appointments
Ms. Schue stated that Joan Mazo has resigned from the Budget Committee.
Ms. Schue moved~ seconded by Ms. Miller~ to appoint Mary Sherriffs,
137 West 37th Avenue~ to the Budget Committee to complete the
. unexpired term of Joan Mazo ending December 31, 1983. Roll call
vote; motion carried unanimously.
MINUTES--Eugene City Council , August 12, 1981 Page 1
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II. ROUTINE ITEM FOR COUNCIL APPROVAL
A. Finance Resolution/Ordinance Regarding Record Keeping (memo distributed)~
Res. No. 3567--A resolution concerning retention of City records; adoptinlj
Oregon Administrative Rules, Chapter 166, Division 40
promulgated by the State Archivist; and providing an
effective date.
Ms. Miller moved, seconded by Mr. Obie, to adopt the resolution.
Roll call vote; motion carried unanimously.
CB 2351--An ordinance concerning the retention of City records; repealing
Ordinance No. 12651; and declaring an emergency.
Ms. Miller moved, seconded by Mr. Obie, that the bill be read the
- second time by council bill number only, with unanimous consent by
the council, and that enactment be considered at this time. Roll
call vote; motion carried unanimously.
CB 2351 was read the second time by council bill number only.
Ms. Miller moved, seconded by Mr. Obie, that the bill be approved
and given final passage. Roll call vote; all councilors present
voting aye, the bill was declared passed and numbered 18852.
III. PUBLIC HEARINGS ~
A. Consideration of an Appeal of the Planning Commission's Denial of an
Appeal of the Planning Director's Approval of a Minor Partition
Located on North Grand Street (Joint Venture) (M 81-12) (map and
packet of information distributed)
Mr. Gleason introduced Jim Croteau, Planning.
Mr. Croteau stated this is a panhandle configuration with a single-family
dwell ing on the front and two rear-lying residences on the property. Approval
by the Planning Director was based on the proposed access across adjacent
property to the north which is owned by the same person. Jeff Siegel, 247 Grand,
is the appellant and lives across the street from the property in question. The
Planning Commission denied the appeal and supported the Planning Director's
dec i s ion. Staff has researched the issue and the legalities of using the
alternative access and there may be some legal problems if that provision were
to be continued and approved. Staff would like to recommend that council
postpone consideration for one month for further research. The appellant has
been notified and is present.
Ms. Miller moved, seconded by Mr. Obie, to postpone consideration
of this item for one month until a report comes back from the City
Attorney and Planning staff.
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Jeff Siegel, 247 Grand, stated there are further issues to be considered. He
. would like to ask the council to consider a revised plan. The staff has not
outlined all of his objections; parking is another issue.
Roll call vote; motion carried unanimously.
B. New Liquor License Outlet--Sunny Market Basket (package store);
Located at 1080 West 7th Avenue; appl icant: Sunny Service Station,
Inc., Allen Maxwell, President
Mr. Gleason stated that all was in order with this new liquor license application
and staff recommends approval.
Public hearing was opened; there being no testimony, public hearing was closed.
Ms. Miller moved, seconded by Mr. Obie, to forward to OLCC with
recommendation for approval, subject to conditions, if any. Roll
call vote; motion carried unanimously.
IV. LINCOLN SCHOOL TASK FORCE--STATUS REPORT (memo attached; full report under
separate cover)
Mr. Gleason stated that Ed Smith and Jim Farah were present as are members of
the Lincoln School Task Force. The task force was established. to investigate
the feasibility of keeping Lincoln School open and in public trust for possible
. future use as a school. The task force is comprised of representatives from the
neighborhood group, the 4-J School District, and City staff. The basic charge
was to present a proposal that would break even. The task force has developed a
list of potential uses including potential lessors. With any leased operation,
there is the chance of running into the red. There are two bas ic scenarios.
PlanA would have the building used entirely by non-profit groups who would
maintain their own space as well as the integrity of the building. This could
occur but it would have the highest financial risk. Plan B would move the CETA
Program into the building as a major occupant with possibly other portions of
the City operation moving into the building as well since they are general-fund
supported. This plan would include as many non-profit groups as possible and
would attempt to move toward all non-profit groups in the future. There wi 11 be
conflicts with neighborhood use and tenants may not be compatible. The building
maintenance must be carefully considered. There may not always be a compatible
mix of tenants and there may be some controversies. They do not feel the
capital side of the budget can break even with this project. The City will have
to spend from $150,000-$500,000 over a ten-year period. They can try to recoup
their losses by increasing rents and then could turn back an $8-$9 million asset
with $500,000 retention factor, which would be good. The City would be held
harmless from the school district from capital expenditures unless it is success-
ful and then the community would win. Staff has discussed this at length and
recommends taking the risk for at least five years. They feel it is important
in the long run. The ri sk of 1 awsuits due to dislocation of tenants in less
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than five years would be small. They have no completed negotiated commitments
with 4-J put they are working on it. Staff feels that property management staff .
should be assigned to the property who would have the responsibility for lease
assignment. .
Mr. Hamel asked if the CETA operation would be moved from the Atrium. He also
asked if the City or the school district would own the property. Mr. Gl eason
responded that staff would try to place compatible non-profit users in the
building s.o it w"ould break even. If they were unable to break even, then CETA
could be moved, .iri, part orwhole~ and if that is not enough, then other depart-
ments could be moved there. The council will need to balance community interests
with group needs as will staff in charge of management. The City would enter
into a lease with 4-J for $1 per year with an agreement for maintenance and then
turn the property back to 4-J after five years when demographics change to
support the building being used as a school again. The capital would be secure
but there could be a cash-flow problem. It would also take about six months
before the building could be filled.
Ms. Smith asked what the current lease costs are for CETA. Mr. Gleason responded
current costs are 72 cents per ~quare foot and they would drop to 35 cents per
square foot if they relocated to Lincoln School. Ms. Smith stated that CETA
Program costs would drop then. Mr. Smith stated that CETA costs would be 60
cents and non-profit agencies' costs would be 35 cents per square foot. Ms.
Smith stated that in regard to immediate improvements, one reason the school
board closed Lincoln School was because of the immediate needs for upgrading the
facil ity. She would like to see it made clear that if the City occupies the
building, the building must meet City Code and other requirements. 'She asked if .
the quoted figure was a safe one. Mr. Smith stated that the Building Division
and the Fire Department had staff on the task force team. The change of occu-
pancy would create different restrictions for use and code requirements. To
meet the building code, they would have to adopt a program of improvements.
There would be some immediate needs in addition to adding an elevator for the
handicapped. Ms. Smith asked if compliance could be met by adopting a mainte-
nance program. Mr. Smith indicated that it would. Mr. Gleason noted this would
cost about $500,000 over a five-year period.
Ms. Wooten noted appreciation for the work performed by the staff and the task
force. She stated this is a good example of responses to community needs. She
would support Plan A, which would move CETA in while maintaining community
use and community school activities, with the non-profit organizations as a
subsi dy. She would like to see it kept open asa school but that cannot happen.
If the school were not used, the building would deteriorate. This would save
the building for future school use. She asked when a response might be expected
from School District 4-J. Mr. Gleason stated that there has been a delay in
communications with School District 4-J with the change in superintendents,
vacation schedules, etc. He and Acting Superintendent Lindquist talked about a
month ago and the School District would like to discuss the issues further. Ms.
Wooten asked if the issues yet to be decided are major issues. Mr. Gleason
stated there are some capital issues, maintenance of the boiler decisions, as
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. well as the community school issue. There is a possibility this project would
not break even until the fourth year. All of the problems have solutions, but
the solutions depend upon the cost. The question is whether the council wants
to take the risk or not. Ms. Wooten stated she feels it would be wise to
proceed and try to reach agreement for Plan A. She asked what would happen if
the demographic information would indicate a need for using this facility as a
school in less than five years. She asked if L-COG has this kind of data. Mr.
Gleason stated that staff has good data now. If this would happen before the
fifth year, then the council would have to decide what to do. Pl anning staff
does not think this will happen prior to the fifth year. Ms. Wooten stated that
she felt the.potential for this building was great.
Ms~ Miller indicated that she would like to have staff directed to pursue this
issue. From the projections, Plan A seems more likely to break even. She
would like to keep the building open. The closure of the building would
have a negative impact on the facility and the neighborhood. That neighborhood
has gone through some major improvements in the last six to ten years. The
City must continue taking an interest in this area. If 4-J can share in the
maintenance costs, the City can carry part of the financial load.
Mr. Lindberg asked if there is any indication that non-profit groups are willing
to move into this building. Mr. Gleason stated that through LINK, staff has a
list of potential lessors but they must be compatible, economically able to
lease, and reasonably long-term. The management must be left to the building
management staff. He feels the number of the leases will not be the problem but
. rather that cost and compatibility will be. Mr. Lindberg stated that he is
enthusiastic about the concept but concerned because the CETA Program is an
effort to help the community. He would like to see CETA's charges less than
60 cents per square foot. Mr. Gleason stated that staff has been trying to
emphasize that CETA is a private sector assistance program. It has an image to
maintain. Staff would prefer Plan B with a fall-back to Plan A if necessary.
Council seems to prefer Plan A with a fall-back to Plan B. He requested direc-
tion from the council.
Mr. Obie noted agreement with the concept of using Plan B with Plan A as a
safety net, but he is concerned that there are unresolved questions. He would
be willing to give conceptual approval but would like more information on
projected costs. Mr. Gleason stated that the council could conceptually agree
today and staff could bring back more financial data later. They can bring the
final lease agreement ~o council for ratification rather than now authorizing
the City Manager to sign the agreement. The lease agreements are still unclear
at this time. Mr. Obie asked what the parameters are for the non-profit
groups. Gary Long, Staff Services, stated that they have been working with LINK
and United Way. Both are enthusiastic about locating near each other. They
think they could maintain or improve their services if they could locate together.
Some other non-profit groups have also come forward. Mr. Obie asked about
possibilities for the arts community locating in that facility. Mr. Long stated
that staff has not heard from them. Mr. Obie asked how staff will determine who
can locate in the building. Mr. Gleason reiterated that staff would be trying
to lease space to users that are compatible with the neighborhood orientation
and yet provide a rental income. Junior Achievement would be a compatible user
. .as an example, as would some others. Goals and guidelines should be written
MINUTES--Eugene City Council August 12, 1981 I Page 5
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and staff should make the decisions based on those guidelines. Mr. Ob i e agreed
and stated he would like,~o see definite goals and guidelines developed. He .
questioned whether some gr~ups could afford the rental fee.
Ed Smith stated there is an unlimited list of groups who want to reside there.
The: Junior Achievement 'space could have dual use. Their space could be used
during the day by someone else.. Also, arts groups need space badly. Mr.
Gleason added that the reason for a property manager would be to help determine
multiple uses. This property could be manqged intensely. Mr. Obie indicated he
would support the idea. . A central pl ace to go for services has been needed for
a long time.. If the City gets into financial. trouble, he would like for the
council to be informed early on.
Mr. Hamel asked how this fits in with the City's need for a new city hall as
outlined in the. Capital Improvement Program for the City. He wondered how one
could ask the taxpayers to support construction of a new city hall with this
facility available. Mr. Gleason stated that the objective would be to pull City
operqtions back into one general complex but that will not be for at least three
to four years from now. In the meantime City government will continue to be
fragmented. The goal in the future is to alleviate this fragmentation of City
services. Staff recommends proceeding with Plan B, and falling back to Plan A
if necessary. He does not feel this would be working at cross purposes. Thi s
would be saving a public asset for the public trust. He feels $500,000 is cheap
to save a facility.
Ms. Schue stated that she is excited about this, particularly Plan B. It would
be great to assist social service agencies and the community. She is concerned,
however, about breaking even financially. She has mixed feelings about having .
CETA move in although CETA intake could certainly be there. She would have no
problem with charging CETA 60 cents per square foot. Mr. Gleason indicated that
CETA could be transferred to that facility piecemeal. Some parts of the CETA
operation could be moved without harming others.
Ms. Wooten stated that she supports Plan A because she does not want the whol~
facility to fail because of undercapitalization. She would rather that there
would be steady capital for stabilization and then move toward use by non-profit
groups. She asked for clarification on the current price CETA is paying. Mr.
Long stated that it would be closer to 90 cents per square foot a day than 70
. cents if custodial services were included in the costs. Ms. Wooten stated this
is not going to be a "rag tag" event for anyone. The image of many non-profits
is important to them. They are interested in a professional image. A 11 should
have the best quality affordable.
Mayor Keller asked what type of lease CETA has currently. Mr. Long stated
that now it is a month-to-month lease but in the next 60 days, they either must
sign a 12-month lease or move out. Mayor Keller indicated there may be conflicts
besides the costs. Those conflicts will have to be worked out with the neighbor-
hood as the top priority. Mr. Gleason agreed there could be some conflicts but
they would be difficult to work out in the council meeting format. Staff can
draft a plan and start earnest negotiations with 4-J, then begin signing lease
holders if the council approves. Ms. Wooten stated that no real controversy
exists now with the neighborhood groups or other agencies. The neighborhood has
been. working with the task force. Perhaps there can be intensive multi-uses. .
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Ms. Miller moved, seconded by Mr. Obie, to direct staff to continue
. negotiations with School District 4-J to enter into a lease for
city use of Lincoln School to be brought back for council review,
to bring back a report to the council with additional financial
data, have staff begin sub-lease procedures as noted in Plan B
with fall-back to be Plan A, and come back to council with an
outline of tenant guidelines and definitions.
Ms. Wooten noted there could also be some combination of the two plans in order
to ensure a steady income stream.
Roll call vote; motion carried unanimously.
V. BONNEVILLE POWER ADMINISTRATION ENERGY MANAGEMENT PROGRAM GRANT AND
L-COG LOCAL ELECTRIC ENERGY COMMITTEE REQUEST FOR PRIORITIES--STAFF
REPORT (memo attached; additional information under separate cover)
Mr. Gleason stated this would be allowing staff to proceed with a grant applica-
tion. He introduced Greg Page, Technology Coordinator.
Mr. Page stated that Ms. Wooten had previously presented two summaries of Energy
Management Program Grant proposals to be submitted on behalf of the City to BPA.
Also, she had requested that council energy priorities be used by the local
Electrical Energy Committee for their work program. Mr. Page stated there are a
couple of concerns. Bonneville Power1s solar use potential will be useful in
future years. He has been pursuing writing the grants. Springfield City
e Council has asked to participate with Eugene and the L-COG Local Electrical
Energy Committee if there are no objections. Assuming that there are no objec-
tions, this grant application will be submitted August 14, 1981. Also, there is
a sense of priority regarding energy conservation. Staff will prepare a letter
for Councilor Wooten to submit to the Local Electrical Energy Committee.
Ms. Smith noted that she appreciates the information and clarification.
The meeting was adjourned to August 17, 1981, at 7 p.m.
Respectfully s~
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Micheal D. Gleason
City Manager
(Recorded by Lynda Nelson)
MDG:LN:sba/CM7a23
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MINUTES--Eugene City Council August 12, 1981 Page 7