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HomeMy WebLinkAbout08/12/1981 Meeting - ~ s; 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 '" 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. . MINUTES--Eugene City Council August 12, 1981 Page 2 '" r 1> 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 . MINUTES--Eugene City Council August 12, 1981 Page 3 .,. , 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 . MINUTES--Eugene City Council August 12, 1981 Page 4 '"- ~ .< . 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 'J 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. . MINUTES--Eugene City Council August 12, 1981 P ag e 6 0 .. 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~ ~~ ,",. . . - Micheal D. Gleason City Manager (Recorded by Lynda Nelson) MDG:LN:sba/CM7a23 - MINUTES--Eugene City Council August 12, 1981 Page 7