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HomeMy WebLinkAboutCC Minutes - 12/01/03 Mtg MINUTES Eugene City Council Regular Meeting Council Chamber--City Hall December 1, 2003 7:30 p.m. COUNCILORS PRESENT: Gary Pap6, Nancy Nathanson, Scott Meisner, David Kelly, Betty Taylor, Bonny Bettman, George Poling, Jennifer Solomon. Council President Gary Pap6 called the meeting to order, as Mayor James D. Torrey was still in transit from a meeting in the city of Portland. 1. PUBLIC FORUM Councilor Pap6 reviewed the rules of the Public Forum. Richard Quigley, 2260 Jefferson Street, stated that, as a 28-year resident of Jefferson Street, he had always anticipated an increase in traffic on this street, but had not been prepared for the speed of the traffic. He provided petitions signed by area residents requesting traffic calming measures. He stressed that the neighborhood was not asking that traffic be routed elsewhere, just that it be slowed down somehow. Alan Butler, 2261 Jefferson Street, said he helped Mr. Quigley gather the petitions. He echoed his sentiments, stating that he also had moved to the area knowing that there would be traffic, but had been taken aback by the speed at which people drive on the street. He expressed appreciation for the traffic enforcement officers who patrol the area, but felt there was not enough staff available to truly impact the problem. As such, he relayed the neighborhood's desire for other measures to impede the speed of traffic. Bruce Miller, PO Box 50968, Eugene, provided City Manager Dennis Taylor with a copy of a book that discussed some of the problems of small towns. He showed the council pictures of the "horrible condition" of downtown. He felt Eugene could take a lesson from the City of Corvallis. Mr. Miller criticized the recently unveiled statue memorializing the late Ken Kesey located in downtown. Paul Atkinson, 83601 Territorial Road, said that although he did not live within the city limits, he had lived in the area for all of his 51 years and considered Eugene to be his home town. He had been a farmer his whole adult life. He expressed concern regarding the proposed expansion of the urban growth boundary (UGB) north of Irvington Drive. He stated that the area was comprised of Class 1 soils. He appealed to the City to look at the soil maps prior to planning development. Class 1 soil was 2.5 to 3 percent of the land base in this county when settlers arrived. He asserted that 90 percent of this soil was now covered in asphalt. He emphasized that all kinds of soil can grow grass seed, but 200 food crops can grow in Class 1 soils. He advocated for ensuring that the residents still have a way to grow food by not paving over this MINUTES--Eugene City Council December 1, 2003 Page 1 Regular Meeting type of soil. He commented that the proposed UGB expansion seemed like a %lam-dunk" and implored the City Council to think carefully about it prior to making such a decision. Kate Perle, 4740 Wendover Street, stated that the McDougal Brother land swap for the Santa Clara park area was an ill-considered proposition. She asserted it was an example of sacrificing the security of an entire community for the %bscene gain of a few businessmen." She said the agricultural soils took millions of years to develop and were getting paved over at an ~alarming" rate. She alleged that farmers were being put farther afield without cognizance of the energy, resource, and time inputs it takes for food production on less fertile soils. She advocated for a conscious and deliberate plan to encourage development on poorer soils. She agreed that more park space was needed, but opposed development of more subdivisions, stating they %xacerbate the single-occupancy vehicle nightmare that is River Road today." Ms. Perle called this form of %prawl development" a net loss to the community while developers ~make off with a tidy sum." She asserted that infrastructure was paid for by the taxpayers. She felt, until livable communities were created, where home, work, and sustenance were all derived from proximate locations, the door to this sort of exception to the UGB rule should not be allowed. She noted that, during the %haping Eugene" planning series, there had been a clear mandate to develop more densely within the UGB. She remarked that the park may seem to come cheaply now, but the future costs of sprawl and the lack of suitable ground for growing food would make the project costly both now and for generations to come. David Monk, 3720 Emerald Street, spoke on behalf of the Toxics Right-to-Know program. He called it a mature program that recognized that toxics harm human health and that people had the right to know what they were being exposed to. Mr. Monk related that he served on the Toxics Board, calling it a model for many cities around the world. In his capacity as a member of that board, he had spoken to a representative of the Japanese government, accompanied by a representative of the %usiness side" of the board. He said he had met with a Rhodes scholar who was working with a citizens' group in Thailand and who had been impressed with the program. He felt the program was working well and had shown that some businesses, when aware of the toxic implications of the use of some substances, would choose to reduce the use of such substances. He cited Forrest Paint Company as an example of a company that had voluntarily reduced its toxic outputs. He asserted that public awareness led to greater advocacy for such reductions. Mr. Monk reported that the board, though split between the business interests, the right-to-know advocates, and one neutral party, maintained a cordial, cooperative working relationship. He said the decisions that came forth from the board were fairly balanced. He related that he and one other right-to-know advocate had voted against the exemption process that was on the agenda for the present meeting, and the three business advocates and two others had voted for it. He recommended approval of the exemption process as proposed and expressed hope that the council would accept it and recognize that the board had fulfilled its charge. Councilor Pap~ thanked Mr. Monk for all the time he spent on City affairs and called for comments from the council. MINUTES--Eugene City Council December 1, 2003 Page 2 Regular Meeting Councilor Meisner shared the concern of the Jefferson neighborhood on the weight and speed of traffic along Jefferson Street. He felt many other streets had similar concerns, but that it was not easy to resolve. He conveyed his eagerness to see the petition and to see what sort of response the Public Works Depart- ment could come up with. He noted that traffic enforcement patrols had lost staffing for several reasons and the City was currently conducting patrol recruitment. Councilor Meisner remarked that he had not heard any other criticisms of the Kesey statue, but rather had only heard positive responses to it. Councilor Meisner said, regarding the proposed land swap, that it was hardly a ;;slam dunk." He called it a difficult issue, noting there were many sides. For as many people who would be concerned about the loss of Class 1 soils, there were an equal amount of people who had voiced support of preservation of Moon Mountain. He felt the council was ;;besieged" with concerns about various land types and whether to preserve them or not. He reiterated that the City had spoken in favor of redevelopment and the intensifica- tion of infill. Councilor Bettman concurred with the analysis of the Jefferson Street neighbors that it was not the volume of the traffic that was causing the problem, but rather the speed at which the traffic was driving by. She was unsure what sort of traffic calming strategies would work for an arterial. She conveyed her apprecia- tion for the attention given to the area by the traffic patrol. Councilor Bettman thanked Mr. Adkinson for farming and producing food for the community. She referred to the hierarchy of human need: air, water, and food. She asserted it was often overlooked or taken for granted. She believed there were other ways to develop a park for the Santa Clara neighborhood that would not cover over Class 1 soils. Councilor Bettman stressed that agriculture created jobs, noting that community money was being spent toward that end. She felt this to be one incentive to keep such high-grade soils in use for food production. Councilor Kelly thanked all those who spoke in the Public Forum. He asked staff to provide a memoran- dum on possible solutions for the Jefferson Street traffic speed issue. Regarding the land in Santa Clara, Councilor Kelly said there were hearings yet to come, both before the Planning Commission and the City Council, and the hearings would not be scheduled until the property owner initiated a formal request to the City. He commented that, though the land swap would expand the UGB by 120 acres in one part of the City, it would subtract 120 acres in southeast Eugene. There would be no net change in developable land. He supported the development of a park in the Santa Clara area, as it was under served. He felt the key to finding an alternative way to do the land swap was a matter of finding a different way to develop the park. He agreed with Mr. Adkinson and Ms. Perle on the issue of the value of Class 1 soils. Councilor Taylor thanked all who testified, especially those who reminded the council of the importance of agricultural land. Mayor Torrey arrived. MINUTES--Eugene City Council December 1, 2003 Page 3 Regular Meeting Councilor Taylor advocated for saving any agricultural land. She did not think it should be the farmers' responsibility to find an alternative to the proposed land swap. She urged the agricultural land advocates to keep watching the proceedings and to continue to raise public consciousness regarding the loss of good soils. Regarding the concerns expressed by the Jefferson Street residents, Councilor Taylor commented that excessive driving speeds were a big problem all over the community. She advocated for the formation of a committee to brainstorm on solutions to such traffic issues other than speed bumps. Councilor Pap~ turned the gavel over to Mayor Torrey. City Manager Taylor noted that the Ceremonial Matter originally scheduled for the present meeting had been postponed until January 12, 2004. 2. CONSENT CALENDAR A. Approval of City Council Minutes - October 27, 2003, City Council Meeting - November 10, 2003, Work Session - November 12, 2003, Work Session B. Approval of Tentative Working Agenda Councilor Pap6, seconded by Councilor Nathanson, moved to approve the items on the Consent Calendar. Councilor Kelly said he had submitted a correction to the minutes via e-mail. Mayor Torrey stated that, without objections, the correction was approved. Roll call vote; the motion to approve the Consent Calendar passed by unanimous vote, 8:0. 3. PUBLIC HEARING AND POSSIBLE ACTION: An Ordinance Amending the Willa- kenzie Area Plan Text; amending Sections 9.2160 and 9.9700 of the Eugene Code, 1971; Adopting a Severability Clause; and Providing an Effective Date City Manager Taylor asked Teresa Bishow, Senior Planner for the Planning Division, to speak to the item before the council. Ms. Bishow explained that the ordinance under consideration removed a prohibition against clinics on a ten-acre site known as the Summer Oaks Crescent Center. She stressed that the ordinance had a limited scope and did not include a request to change the plan designation or the zoning on the property, and also did not include any changes to the recently imposed standards enacted through the application of the Nodal MINUTES--Eugene City Council December 1, 2003 Page 4 Regular Meeting Development (/ND) Overlay to the area the property lay within. She reported there had been a significant change in circumstances since the Willakenzie Area Plan had been adopted as PeaceHealth had owned property immediately north of the Summer Oaks Crescent Center property and had intended to develop a major medical facility on it. She noted the change in ownership of the property and indicated the property would now be a planned unit development (PUD) known as Crescent Village As such, there was no need to prohibit the development of a clinic within the Summer Oaks Crescent Center. She reiterated the Planning Commission recommendation to approve the ordinance had been unanimously approved. Mayor Torrey opened the public hearing. Terry Harding, 132 East Broadway Street, of Satre and Associates, spoke as the applicants' representa- tive. She stated that the applicant sought to remove a policy that no longer served a purpose. She reiterated that the prohibition of the construction of a clinic had resulted from the plans that PeaceHealth had for development of the property across the street. She said the site was appropriate for commercial development and the ordinance did not change that. Mayor Torrey closed the public hearing. Mayor Torrey opened the floor for questions and comments from the City Council. Councilor Kelly commented that the ordinance made sense as there was no reason that the property should be the only property zoned commercial with such a prohibition placed upon it. Ms. Bishow affirmed, at Councilor Kelly's request, that the Summer Oaks Crescent Center PUD had been applied for prior to the Land Use Code Update (LUCU). Councilor Kelly said the 5,000 or 10,000 square foot limit on development on C-1 zoned property would not, then, apply to this development. He expressed some puzzlement that the applicant spoke about a lack of traffic impact as long as there was no more than 50,000 square foot of clinic use and had specifically expressed a willingness to have this incorporated into the language of the ordinance. Yet, such language had not been included. In response, Ms. Bishow said the Planning Commission and staff recommended simply removing the prohibition on clinics since there was no longer a public concern about excessive concentrations of medical facilities in this area. It would also keep the Land Use Code as simple and easy to administer as possible. She felt it would encumber the code to predetermine the maximum size of any future clinics. She asserted that, should the size of the clinic necessitate an impact assessment of the traffic, there were other tools to utilize to impose traffic mitigation measures. Councilor Kelly noted that, had this application come in more recently, there would be more severe limitations to the size of the proposed developments. He felt that, as the applicant was amenable to the imposition of a maximum limit to square footage, there should be one. He wished to make an amendment and sought the advice of legal counsel to determine whether this would be possible at this time. City Attorney Jerry Lidz thought it possible, though he said he would have to look at the ordinance. Councilor Bettman asked if the property in question was a part of the Crescent node. She asked how the application and the nodal designation interacted. Ms. Bishow responded that the Summer Oaks Crescent MINUTES--Eugene City Council December 1, 2003 Page 5 Regular Meeting Center PUD was approved prior to the City's designation of the property as a node. She stated that, in cases where there is a final land use decision, the property owner had a vested right to build. She stated that the ten-acre C-1 zoned site would not be subject to the/ND overlay standards unless the applicant wanted to make significant changes to the approved PUD. In response to another question from Councilor Bettman, Ms. Bishow said if the ordinance was adopted, the applicant could build according to the final approved PUD and include a clinic as an allowed use. Councilor Bettman asked if the development would be eligible for the 10 percent discount in system development charges (SDCs) because of being built within the/ND overlay. Ms. Bishow stated that she would research the answer to this and provide it to Councilor Bettman at a later time. Councilor Bettman conveyed her support for the lifting of the prohibition, but said she wanted to be assured that such a development would not receive the SDC discounts. Mayor Torrey suggested postponing the action until the work session scheduled for December 3. Ms. Bishow affirmed that staff would be able to come forward with new language prior to Wednesday, December 3, if directed to do so. City Manager Taylor asked if a majority of the council supported the change. Councilor Kelly, seconded by Councilor Bettman, moved to direct staff to draft a re- vised ordinance that included the 50,000 square foot size limitation on clinic space within the development. Councilor Kelly felt, given the applicants' willingness to live with such a limitation, there should be no reason not to include one. He also asserted that, though the applicant had been approved for the PUD prior to the/ND overlay, to the extent the council could promote nodal development in such a project, it should. Councilor Meisner stated he was unlikely to support such an amendment. Regarding a question from Councilor Bettman on the traffic impact analysis (TIA), Ms. Bishow referred to the table on page 155 in the council packet, stating that it referred to the peak time on both Crescent Avenue and Chad Drive and looked at the daily trips going in and out of the property. Councilor Bettman asked if the numbers took into account the cumulative impact of the recent zone change for the 10.6 acres north of Crescent Avenue. Ms. Bishow responded that the TIA looked at the incremental difference between the traffic of the area before and after the PUD with and without clinics. Councilor Bettman questioned whether the City ever took a look at the ~traffic big picture" and considered where the City was headed ~transportation-wise" in a certain corridor. Mark Schoening, city engineer for the Public Works Department, responded that the City did long-range transportation planning and the area in question would be part of the future Coburg Road Corridor Study, currently unbudgeted and unpro- grammed. MINUTES--Eugene City Council December 1, 2003 Page 6 Regular Meeting Councilor Bettman voiced her support for the amendment, calling the 50,000 square foot limit on clinic space reasonable. In response to a question from Councilor Pap6, Ms. Bishow related that the Planning Commission had unanimously voted in support of removing the restriction to the size of clinic development. She said the commission had looked at the context for the size limit and based its recommendation on the change in use for the property across the street. The commission had looked at the TIA and had been assured that traffic mitigation measures would be carried out should traffic warrant it. Councilor Kelly felt the Crescent node would not be discemable from the rest of the city. The motion to amend the ordinance failed, 5:3; councilors Bettman, Taylor, and Kelly voting in favor. Mayor Torrey asked if there would be opposition to addressing the issue at the present meeting. Councilor Bettman asked if it would be possible to amend the ordinance to ensure that the development would not get the discounts that the/ND overlay would provide. Mr. Lidz said it was conceivable to make the change, but he would not be comfortable incorporating this into the Land Use Code. He suggested researching the issue and bringing back information to the December 3 work session. He stressed that this was an ;;SDC issue" and the ordinance under consideration did not pertain to SDCs. Mayor Torrey stated that the council would address the issue at the coming work session during Item B of the agenda. 5. PUBLIC HEARING: An Ordinance Requesting that Jurisdiction Over a Portion of County Road No. 307, 388, 531, and 1304 (Garden Way) be Transferred to the City of Eugene Within a Specified Period of Time City Manager Taylor explained that the ordinance transferred jurisdiction over Garden Way from Lane County to the City of Eugene. He said this was one of the last actions before going to bid on this project. He stated that the engineering division was 90 percent completed with its portion of the project. Mayor Torrey opened the public hearing. Seeing no one wishing to testify, Mayor Torrey closed the public hearing. Mayor Torrey opened the floor for questions and comments by the council. Councilor Bettman questioned the wisdom of taking on more streets when the City did not have the resources to maintain the existing transportation system. She asked what advantage this transfer provided the City. Paul Klope, Principal Civil Engineer for the Public Works Department, explained that, if left a County street, the City could request a permit to build the street. The County, through the permitting process could MINUTES--Eugene City Council December 1, 2003 Page 7 Regular Meeting impose conditions, such as a requirement that the City take on the obligation for future maintenance of the street. He added that it was the City's practice, when initiating a street improvement, to request that it becomes part of the City. Councilor Bettman indicated she would support the motion. City Manager Taylor called the transfer a ;;last step in a long process" that would provide continuity. He said, should there be no objection, it would be possible to move to adopt the ordinance at the present meeting. Councilor Pap6, seconded by Councilor Nathanson, moved to approve City Ordi- nance No. 4855, an ordinance requesting jurisdiction over the road known as Garden Way. Roll call vote; The motion carried unanimously, 8:0. 6. PUBLIC HEARING AND ACTION: Resolution 4781 Adopting a Supplemental Budget; Making Appropriations for the City of Eugene for the Fiscal Year Beginning July 1, 2003 and Ending June 30, 2004 City Manager Taylor asked Budget Manager Kitty Murdoch, to speak on the Supplemental Budget. Ms. Murdoch stated that Supplemental Budget 1 (SB 1) added an increase of $10.5 million to the City of Eugene's annual budget. She said this increase was in large part due to a reconciliation of marginal beginning working capital. She explained that this was the difference between the budget estimate was for the starting balance of each fund in the budget and the auditors' final determination of the starting balance. She reported that the amount of that difference in the General Fund was $3.7 million, with the distribution, as follows: · $900,000 transferred to capital, as per usual policy · $662,000 sent to departments to complete projects budgeted in FY03 but not completed · $1 million sent to the pension bonds reserve to establish resources for use in calling pension bonds in FY07, and stated that if all the bonds could be called at that time the City would save $500,000 per year · $1.2 million has been allocated to the Reserve Fund for Revenue Shortfall Mr. Murdoch related there was a general fund contingency request for $5,000 to assist the Planning and Development Department in paying for a facilitator in the hospital siting effort. Ms. Murdoch said the City was recognizing new revenues across all funds, primarily grant revenues. Some of those include the $6.3 million in bond proceeds from the voter authorized Parks and Open Space bonds, $4.3 million in federal receipts for airport improvement projects, and $1.1 million from federal sources for the Amazon Creek Wetland Restoration Projects. She noted that the Solid Waste and Recycling Subfund had been taken out of the General Fund to become a stand-alone special revenue fund as the Solid Waste and Recycling Sub fund had been a stable fund for some years and did not need the protection from the General Fund. The Telecommunications Sub fund, also changed to a stand-alone fund because many of the lawsuits surrounding it had been resolved. These actions reduced the General Fund budget by $3.7 million. MINUTES--Eugene City Council December 1, 2003 Page 8 Regular Meeting Continuing, Ms. Murdoch stated that the capital carryover estimate was being reconciled with the actual amount that was spent, a routine budget practice each year. Ms. Murdoch reported that the airport was asking for authorization to move $388,000 from the airport development fund reserve to the operating budget for use as a revenue guarantee for new air service from Delta Airlines. She explained that the stormwater capital budget was being reduced by $577,000 to reflect the council's decision to eliminate the stream corridor acquisition program. Also, the transportation utility fund had a large change due to the action associated with the rescinding of the Transportation System Maintenance Fee (TSMF) comprised of a $568,000 reduction to the operating budget and an $8.8 million reduction to the capital budget. Ms. Murdoch reported the repayment of inter-fund loan from the previous year, but added that staff was asking for a new capital inter-fund loan of $750,000 and a $150,000 transfer from the special assessments fund to pay for operating costs incurred for initial development of the billing TSMF system. Additionally, Ms. Murdoch said new property was being purchased on Garfield Street, with $1.625 million from four funds paid through an inter-fund loan from the fleet reserve. She also noted the financing plan for Fire Station # 11 was being established, as per the council-adopted directive. Mayor Torrey opened the public hearing. Melanie Foster, 2307 Churchill Street, urged the council to help fund the reopening of the cattery at the Lane County Animal Regulation Authority (LCARA) with available funds. She stressed the importance of continuing support of "this necessary and humane part of our community." Ms. Foster cited Eugene Code (EC) 4.330, stating that the City Manager appointed the Animal Regulation Authority to enforce and administer the provisions of 4.330 to 4.490. She cited 4.335, regarding animal abuse and the provision of minimum care, and asserted that leaving the cattery closed was in violation of this provision. She cited Oregon Revised Statute Chapter 609, which detailed at length the regulations for the well-being of animals. Ms. Foster said Resolution 4781 included $10.5 million in proposed budget changes. She asserted that ongoing franchise fees would generate an approximate $500,000 per year. She added that there was one- time money from other resources that could "kick-start" the LCARA cattery, such as a surplus from property taxes. She felt revenue could continue to grow through a supported program. Janetta Overholser, 30300 Cottage Grove-Lorane Road, Cottage Grove, speaking as a representative of the Cottage Grove Humane Society, asked the council to help restore funding for the cattery. She recounted the problems that the Greenhill Humane Society had due to a feline disease epidemic and expressed her gratitude that this had prompted the emergency reopening of the cattery. She noted the recent closing of a trailer park in the community of Saginaw and the stray cats abandoned there. She related that she had taken in nine of the 31 left behind and her house was overburdened with cats. She commended the veterinarian who had volunteered to spay and neuter the abandoned cats. She asserted that, had the Humane Society not stepped in, the cats would have faced death by starvation, sickness, or by being hit by MINUTES--Eugene City Council December 1, 2003 Page 9 Regular Meeting a car. She felt that every one of the cats would meet a more humane end by euthanization than by abandonment. Mary Blackburn, 3914 Shasta View, said she had been upset by the situation at the Saginaw Trailer Park and the impact it had created in the lives of private citizens. She also conveyed her unhappiness with the recent decision to upgrade the River House, slated to cost more than $100,000. She realized the project had been on a waiting list and asked when the cattery had ever been on such a waiting list. Ms. Blackburn stated that the cattery facility had finally been built and urged the City Council to vote to help provide funding for it. She discussed some of the history of LCARA and the Greenhill Humane Society. She noted that the nine-cage cattery that had been part of LCARA was housed in a former utility closet. She reiterated the willingness of cattery supporters to help with the problem. Diana Robertson, 871 River Road, executive director of Shelter Animal Resource Alliance (SARA), a 501 (c)(3) animal welfare organization with over 500 supporters, advocated for the City to work with the LCARA to develop a comprehensive cat program. She stressed the importance of having a place to bring stray cats to. She felt some of the crisis the Greenhill Humane Society had recently experienced was due to the unwillingness of the City Council to help fund the cattery. Ms. Robertson recommended applying more funding to low-cost spaying and neutering, as many low- income people could not afford to do so for their animals. She said this was a cost-effective resource. She urged the council to move the animal control program up to the level of consideration given to the other public safety programs, the Fire Department and the Eugene Police Department. Dave Hauser, 1401 Willamette Street, conveyed the support of the Eugene Area Chamber of Commerce for approval of the request for use of the air service development reserve funds to help the community bring Delta Air Service to the area. He noted the chamber had been involved in negotiations with Delta Air Lines since early 2002. He assured those present that the package being offered was competitive, adding that the earliest package the airlines had requested was much larger. He agreed it was a more competitive package than had been offered previously to other airlines, but times had changed since the tragic events of September 11,2001. He predicted that the package would ~unravel" should it not be approved and the City would lose the opportunity for this air service. He added that the chamber was committed to add a $400,000 travel bank to the incentive package. He called the revenue guarantee an ~important piece of community infra-structure for existing businesses and businesses that are growing here." Ann Jensen, 1642 North Danebo Avenue, called the closing of Greenhill Humane Society at the same time that the Saginaw Trailer Park closed ~very unfortunate," adding that it made cats ~homeless individuals." She noted that she had just paid her property taxes and asked the following questions: · What contribution did the City make to the funding of LCARA? · What percentage of the total budget of LCARA was provided by the City of Eugene? · What percentage of the total services of LCARA were returned to the City of Eugene? She requested a breakdown from LCARA on how funding was spent to determine how much was spent on housing animals and how much was spent on investigating complaints. She stated that the City Council should know all of these things in order to make an informed decision to provide additional funds for LCARA or whether to request that LCARA spend its funds more wisely. MINUTES--Eugene City Council December 1, 2003 Page 10 Regular Meeting Mayor Torrey closed the public hearing and called for a five-minute recess. Mayor Torrey called the meeting back to order at 9:02 p.m. Councilor Meisner clarified that the stormwater fund fee increase had been repealed, but some stream corridor acquisitions were continuing. Councilor Meisner called the cattery a %ignificant question." He averred that the questions asked by the last person testifying at the public hearing should receive a response. For the questioner, he noted that not only did the City contribute as a municipal government toward the support of LCARA, but City residents accounted for 40 percent of both the appraised value of Lane County and 40 percent of its population, therefore 40 percent of the General Fund of Lane County came from City residents. He felt the expectation that the County would provide services was reasonable, adding that Lane County was the only county in the State that did not shoulder the entire responsibility for its animal control agency. He said the building of the cattery did not necessarily make it a City function. He noted, as an example, that the County had built a juvenile facility and, should there not be funding for its operation, the responsibility for operation would not have fall to the City. Councilor Nathanson commented that there were numbers in the public testimony that, out of context, looked large. She asserted that much of the money had to do with reconciling ending fund balances and a lot of the funds in question were dedicated to be used for certain purposes. Regarding the comment that the City needed to %tep up and take responsibility," she said the City was paying for a lot of services. Some of the services were paid for with County funds with the City of Eugene paying additional money and the other smaller cities of the area paying sometimes or not at all. She felt the analysis was more complex as to what jurisdictions were paying for which services. Councilor Nathanson agreed that more information was needed regarding the animal regulation services. She supported determining the most cost-effective way to fund and administer those services. Councilor Kelly opined that a better way of addressing one-time needs would be to meet them as they were being discussed. He said that staff had recommended waiting until the supplemental budget proceedings, but the one-time needs seemed somewhat out of context at the present proceedings. He reminded the council that the during a meeting in November the FY03 purchase orders that had been outstanding had been reconciled, transferring $372,000 into the reserve for revenue shortfall. He stated that the supplemen- tal budget would transfer another $1.2 million into the reserve for revenue shortfall. While he considered this to be good, prudent fiscal management, he felt that should another one-time need arise between the current proceedings and June, it would be wise to pull a portion of that amount back to cover such a shortfall. Councilor Kelly commented that the telecommunication funds did not have the visibility at the council level that they needed. He acknowledged that this was due, in part, to one outstanding lawsuit. He requested the discussion to be brought before the council after the last suit was resolved. Councilor Pap~ asked what sort of support other cities in Lane County provided for LCARA. Finance and Courts Services Executive Manager Cindi Hamm responded that there was limited support from other cities. She noted that the City of Springfield had a case-by-case shelter contract. MINUTES--Eugene City Council December 1, 2003 Page 11 Regular Meeting Ms. Hamm said, in response to another question from Councilor Pap6, the issue raised had to do with $75,000 proposed to fund the LCARA cattery during the FY04 budget process. She stated that LCARA had provided some figures on a proposal basis, not yet approved by the Lane County Board of Commis- sioners, that were slightly less than that. She added that Eugene accounted for 48 percent of the cat intakes at the cattery. Councilor Pap6 asked how much of the funding came from the City and what it paid for. Ms. Hamm responded that currently the City, in FY04, was providing money for animal enforcement and for sheltering lost and abandoned dogs. She related that LCARA had voiced concern that the amount of money that would be provided for the operation of the cattery, should proposed amendments be passed, would not be enough to maintain operation for six months. She said LCARA would prefer to have an 18-month commitment by February, adding that, in fairness to the agency, it was difficult for them to build a budget without knowing what was coming in and difficult to add staff, as it was challenging to hire staff only to turn around and lay them off. Councilor Pap6 remarked that Saginaw was not a part of Eugene and the closing of the trailer park there was a County responsibility. He opined that the County had money in its budget to address this and simply chose not to do so. Councilor Pap6 asked Airport Manager Bob Noble whether the other three airlines had been contacted regarding the proposal to Delta Airlines. Mr. Noble replied that he had ongoing conversations with all of the incoming carriers over the years and the outreach to Delta Airlines was not a new practice. He said the terms and conditions of the negotiations had not been shared with other carriers as the discussion was more appropriately brought before the council first. Councilor Taylor felt an in-depth discussion regarding animal control was in order. She hoped the council would at least choose to fund the cattery for the next six months in this budget deliberation. She called the issue a community issue. In response to a question from Councilor Bettman, Ms. Murdoch affirmed that $382,795 in domestic preparation grants for specialized equipment included in the police operating budget had been provided through the Homeland Security Act. Councilor Bettman asked if the airport had negotiated with only one air carrier or had it taken bids or put out a request for proposals (RFPs). Mr. Noble replied that no RFP had been put out as the ongoing relationships with air carriers were not conducive to such proposals. He said that Delta Airlines provided a specific service that was strategic for the community in terms of providing capacity to east-bound travel. Councilor Bettman questioned whether Delta Airlines truly was the only carrier that could provide the service. Mr. Noble explained that soliciting an air service was very different from contracting for street improvements. He stated that the airport had held discussions with three different carriers, but Delta Airlines had been the one that had the service that was most in demand in the area. Councilor Nathanson said some of the discussion was toward increasing the number of travelers that fly out of Eugene as opposed to driving to Portland to fly out of there. Mr. Noble affirmed this, adding that Delta provided connectivity with Portland and also with Salt Lake City, Utah. He stated that, with air MINUTES--Eugene City Council December 1, 2003 Page 12 Regular Meeting travel, "activity breeds activity" and it had been observed that there was more traffic on the other air carriers when there was more competition. He commented that the airport was in the business of increasing options for the community with both incumbent carriers and new ones. Councilor Papd, seconded by Councilor Nathanson, moved to adopt Resolution 4781 adopting a Supplemental Budget; making appropriations for the City of Eugene for the Fiscal Year beginning July 1, 2003, and ending June 30, 2004. Councilor Pap~ questioned the inclusion of the airline incentives in the supplemental budget discussion. He wondered if it could be considered separately. City Manager Taylor explained that the council was authorizing the expenditure of funds that would allow the City to complete the deal negotiated with Delta Airlines. Mayor Torrey asked if it would be appropriate to move to delete the item from the supplemental budget and then revisit it when the rest of the budget had been considered. City Attorney Jerry Lidz suggested that it be treated as a separate item and consider it after the budget was decided. He noted that the budget was the authorization to spend and not the expenditure itself. City Manager Taylor stressed that, based on the information from the Public Works Director, the Airport Manager, and the people involved in the negotiations, should a motion to delete the item from the budget pass, it would effectively "kill the deal" that had been negotiated with Delta Airlines. He urged the council to pass the budget recommendation. Councilor Bettman asked if this was a "last gasp" attempt to bring in a new air carrier. She likened it to spending the whole budget in one place. Mr. Noble replied that the original purpose of the fund was not just for marketing, but for any endeavor that would affect recruitment and enhancement of the air service program. He stressed that the revenue guarantee was a possible way, should it not be used, to have a balance in the fund at the end of the year. He said the City's air service program had been the result of these sorts of agreements with carriers. He stated that both America West and Horizon Air had been partners with the City and expressed hope that the new partnership with Delta Airlines would be sustain- able. He noted that the additional service would increase the number of destinations out of the airport to nine. Councilor Bettman averred that the success of the carrier was predicated on attracting customers back from the Portland Airport to the local airport and this was predicated on ticket price. She felt it would be built-in failure should there be no parity. Mr. Noble replied that increased competition would provide for fare parity, but tickets out of Eugene would likely always cost more than fares out of Portland due to the capacity of the larger airport. Councilor Meisner, seconded by Councilor Pap~, moved to delete from Supplemental Budget 1 the interfund loan transfers recommended for the property purchase on Gar- field Street. Councilor Meisner said he did not wish to delete this permanently, but to obtain more information regarding the purchase. He expressed concern about the purchase price, the appraisal on which it was based, the liability of the City as the property holder, and who was responsible for maintenance. He declared it a MINUTES--Eugene City Council December 1, 2003 Page 13 Regular Meeting policy question in that the City was prioritizing this public works acquisition seemingly because the City could afford the land and had a willing seller, though it could not afford to develop it at this time as there were so many other needs. In response to a question from Councilor Bettman, City Manager Taylor stated that the acquisition was in the master plan for the site, the property had been appraised, and deletion of it would be to forego an opportunity to acquire the land for a favorable price. Councilor Solomon disagreed with the characterization of the price as "reasonable." She stressed that the price per acre was $340,000 for land that abutted the railroad tracks. She questioned the desirability of the area, calling the price for the property "astonishing." Councilor Nathanson asked staff to delineate the implications of delaying action. Public Works Director Kurt Corey recognized the concern with property values, noting the City recently purchased property around the Eugene depot that on an acreage basis would have been three to four times more than the amount of the appraised price of the property in question. He stated that the appraised price was the price the property would cost on the market, adding that any number of appraisers would provide a range which ultimately would boil down to an agreement between a buyer and a seller. He said the property price was due, in part, to income generation from the property. He related that this purchase was the last remaining component of the Roosevelt Boulevard Master Plan and conveyed his willingness to bring any necessary information before the council in order to move the purchase along. Councilor Pap~ called for the question. Roll call vote; the motion passed, 7:1; Coun- cilor Poling voting in opposition. Councilor Nathanson felt the most critical need at the present time was to address the handling of lost cats, stray cats, and cat reproduction. She stated that there were topics that needed to be covered with regard to the various agencies that were currently involved, including animal control, shelter for lost and abandoned animals, and spay and neuter services. She stressed the imminent need for the service, but suggested the council not go beyond the six-month need in order to allow other funding options to be explored. Councilor Nathanson, seconded by Councilor Meisner, moved to allocate $15,078 from the General Fund Contingency Account to fund cattery services at the Lane County Animal Regulation Authority (LCARA) for feral cats only through the fiscal year 2004. Councilor Taylor, seconded by Councilor Kelly, moved to substitute a motion to take $26,000 from the General Fund Contingency Account to fund for the remainder of Fiscal Year 2004 a contract with LCARA to restore cattery services to the level of services purchased by the City prior to the budget reductions for FY04. Councilor Taylor asserted it was not just feral cats that were the problem. She averred that the council should not just provide a temporary fix to the situation. She commented on the fecundity of cats, stating that the population, if left unchecked, would quickly become more than a nuisance. MINUTES--Eugene City Council December 1, 2003 Page 14 Regular Meeting Councilor Kelly declared he was in no way convinced that the City should consider providing ongoing funding to LCARA at the previous levels and that this vote was for one-time funding. He looked forward to the meeting on January 12 at which the Animal Welfare Task Force would present its report. City Manager Taylor conveyed the wish of staff to discuss why Lane County was the only county that participated in the funding of animal control, as all other counties considered such funding a county responsibility. Councilor Bettman voiced her support for Councilor Nathanson's motion. The substitute motion to provide $26,000 from the General Fund Contingency Ac- count to the cattery for FY04 failed, 6:2; councilors Taylor and Kelly voting in sup- port. Councilor Kelly expressed concern that Councilor Nathanson's motion would only provide ;;bridge" funding for the cattery. He opposed the motion, stating it would ultimately cause more problems than it would solve. Councilor Pap6 voiced his support for the motion. He commented that hearing that Eugene was ;;48 percent of the problem" had helped to sway his vote. Councilor Taylor, declaring something was better than nothing, said she would vote in favor of Councilor Nathanson's motion. The motion to allocate $15,078 from the General Fund Contingency Account to the LCARA cattery passed, 7:1; Councilor Kelly voting in opposition. Councilor Bettman, seconded by Councilor Pap~, moved to amend Resolution 4781 to place $500,000 from the $1,220,610 proposed for the Reserve for Revenue Short- fall into a separate reserve account dedicated to the hospital siting, as per the council resolution. Should the funding remain unused, it shall be reallocated to the Reserve for Revenue Shortfall. Councilor Kelly conveyed his appreciation to councilors Bettman and Pap~ for putting the motion on the floor. He averred the motion sent %trong signals" that the City was willing to aggressively work to site the hospital. Councilor Solomon found it ironic that the council was willing to spend $500,000 to attract a hospital but was unwilling to spend $400,000 to attract an airline service with money reserved for that specific purpose. Councilor Bettman countered that the most important thing to do as a City right now, within the parameters of the budget, was to assure citizens access to emergency room services within the geographic core. Councilor Pap~, seconded by Councilor Bettman, moved to extend the meeting by 15 minutes. Roll call vote; the motion carried unanimously, 8:0. MINUTES--Eugene City Council December 1, 2003 Page 15 Regular Meeting Councilor Nathanson reiterated the council's intent to spend money to aid in the siting of the hospital. She noted the motion did not spend all of the money, but rather made it available up to that amount, to spend on this project. Councilor Papd felt that the council needed to be proactive in order to encourage placement of the hospital south of the river and close to the downtown area. Councilor Meisner clarified that the funding was to help provide the incentives listed in the resolution the council had approved. Councilor Bettman cited the courthouse project, noting that it had incurred unforeseen expenses. She felt the amendment offered a level of preparedness and indicated to the hospital a willingness to work toward a common good. Roll call vote; the amendment passed, 7:1; Councilor Solomon voting in opposition. City Manager Taylor commented that the item would take the budget for the next year down approximately $200,000, should all of the incentive money be spent. Mr. Noble stated, in response to a question from Councilor Taylor, that his experience with the airlines had only been since 1995 and he was not aware of any incentive packages used to attract airlines or retain them prior to his tenure. He related his experience in using the Air Service Development Fund on two previous occasions, which made three times that it had been used, twice with official marketing initiatives matched with travel bank commitments from the business community. Councilor Solomon rescinded her vote in opposition to the prior amendment regard- ing the hospital siting reserve, thus changing the vote to unanimous approval, 8:0. Councilor Solomon remarked that the guarantee offered to Delta Airlines was on the low end of what was considered in other cities across the United States. She reminded the council that Mr. Noble's job was to seek out these sorts of opportunities and that he had spent much time on this. She conveyed her trust in his management abilities. Additionally, Councilor Solomon stated that the goal was not only to sway passengers to utilize the local airport rather than traveling to Portland, but also to make the community of Eugene more attractive and accessible for conventions and recreational events. Mayor Torrey called for the vote on Resolution 4781. Roll call vote; the motion passed unanimously, 8:0. Mayor Torrey adjourned the City Council at 10:02 p.m. Mayor Torrey convened a meeting of the Eugene Urban Renewal Agency at 10:03 p.m. MINUTES--Eugene City Council December 1, 2003 Page 16 Regular Meeting 7. PUBLIC HEARING AND ACTION: Resolution 1027 Adopting a Supplemental Budget; Making Appropriations for the Urban Renewal Agency of the City of Eugene for the Fiscal Year Beginning July 1, 2003, and Ending June 30, 2004 City Manager Taylor stated that staff was available to answer questions, but that most of the changes were already approved by the council and were contained in the agenda item summary (ALS). Mayor Torrey opened the public hearing. Seeing no one present to testify, Mayor Torrey closed the public hearing and called for questions and comments from the council. Councilor Kelly asked for clarification on the large difference between the budgeted and actual expense in the Riverfront Capital Projects. Ms. Murdoch explained that the $1.1 million difference was due to an expected federal payment that had not been received. Councilor Papd, seconded by Councilor Nathanson, moved to adopt Resolution 1027 adopting a Supplemental Budget; making appropriations for the Urban Renewal Agency of Eugene for the Fiscal Year beginning July 1, 2003, and ending June 30, 2004. Roll call vote; the motion passed unanimously, 8:0. Mayor Torrey adjourned the meeting of the Eugene Urban Renewal Agency. Mayor Torrey reconvened the meeting of the Eugene City Council at 10:08 p.m. 8. DISCUSSION AND ACTION: Motion by Councilor Pap~ to Require a Three-Year Commitment by Delta Air Service in Return for a Revenue Guarantee Councilor Pap6, seconded by Councilor Taylor, moved to direct the City Manager not to guarantee Delta Airlines $388,000 in revenue over three years unless the air- line made a commitment to provide air service for at least three years. Councilor Kelly supported the use of incentives to attract additional airlines. He averred that Delta Airlines would provide a needed service. He expressed concern that a one-year commitment was bad for the travelers and sent a signal to other carriers that Eugene was not a good market for them. Councilor Meisner opposed the motion. He said he would have supported the motion prior to initiating negotiation. He likened the introduction of such a motion at this point in the process to a ~deal breaker." He recommended that staff provide more advance information to the council regarding such budgetary expenditures. He added that, while he would not vote for the motion, he appreciated the motive behind it. Councilor Pap~ called the revenue guarantee a ~disservice to taxpayers" if it would not represent a commitment by the airlines to remain for at least three years. He called it a ~rich" proposal. He felt it would be worse for the community for Delta Airlines to be a presence in the community for only a year and MINUTES--Eugene City Council December 1, 2003 Page 17 Regular Meeting then leave, as the airline had done in the early 1990s. He advocated for a discussion of commitment when such proposals were being made to business entities. Councilor Bettman supported the objective of bringing additional service to the City of Eugene. She agreed with Councilor Pap6's points, adding that only last week there had been an article in the Eugene paper that declared Delta Airlines to be on the brink of insolvency. She asserted that, as the City was taking on a risk, so should the airline. Councilor Poling echoed the points made by Councilors Meisner and Solomon. He underscored that the money in question was one-time General Fund money that had been set aside for a specific purpose. He noted that the last two times the funding had been used for this purpose, it had been a success. He remarked that the airline had initially proposed a guarantee of $2 million and, through negotiation, the City had reached agreement on the present figure. He added that the business community was also taking on a financial risk. He recognized the intent behind Councilor Pap6's motion, but urged the council to send a clear message that the council was behind the effort to secure Delta Airlines. Councilor Nathanson, seconded by Councilor Pap~, moved to extend the meeting by five minutes. Roll call vote; the motion carried unanimously, 8:0. Councilor Nathanson conveyed her appreciation of the intent of the motion. However, she said the motion was late in coming and the council had not been able to analyze the implications or details of the motion. Negotiations were already in place and, as such, she would not support the motion at this time. She noted the council had asked the airport to be a self-supporting service and averred that should this be what the airport needed to achieve this, it should be granted and would ultimately become an investment in future budgets. Mayor Torrey indicated that, should there be a tie vote, he would vote in opposition to the motion. He reported that he had just returned from a all-day meeting in Portland on ways the State of Oregon could remain competitive. He asserted that Eugene must make itself accessible or it would lose the opportunity to provide resources for all of the services the council had just talked about providing in the budget the council had debated for 90 minutes. He opined that the City was a supply-and-demand community and the council did not have the luxury of dictating the terms of the debate. Though it would be nice to set the standards in the negotiation, he said the airline was holding ~the chips." He complimented Councilor Bettman for the motion she made regarding incentive funding for the hospital site. He likened that motion to the proposed revenue guarantee, stating that both sought to make the City more competitive. City Manager Taylor urged the council not to give this direction to staff at this time. He called it the wrong signal and predicted it would place the tentative agreement in jeopardy and eliminate the window of opportunity to provide access to Salt Lake City and other eastward destinations. Councilor Kelly objected to characterizing support for Councilor Papa's motion as being opposed to the provision of incentives. He reiterated that the motion was only to attain a longer commitment from the airline in return for the incentives. Roll call vote; the vote on the motion was a tie, 4:4; councilors Bettman, Kelly, Tay- lor, and Pap~ voting in favor, and councilors Solomon, Meisner, Nathanson, and Pol- MINUTES--Eugene City Council December 1, 2003 Page 18 Regular Meeting ing voting in opposition. Mayor Torrey voted against the motion and motion failed on a final vote of 5:4. The meeting adjourned at 10:25 p.m. Respectfully submitted, Dennis M. Taylor City Manager (Recorded by Ruth Atcherson) M: 12003 ICentral Services DepartmentlCity Counci llcc0 3 i 201m2. wpd MINUTES--Eugene City Council December 1, 2003 Page 19 Regular Meeting