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HomeMy WebLinkAboutCC Minutes - 02/25/02 Work Session MINUTES Eugene City Council Work Session Council Chamber--Eugene City Hall February 25, 2002 5:30 p.m. COUNCILORS PRESENT: David Kelly, Betty Taylor, Nancy Nathanson, Scott Meisner, Pat Farr, Gary Rayor, Gary Pap~, Bonny Bettman. CITY COUNCIL WORK SESSION In the absence of Mayor James D. Torrey, Council President Kelly called the meeting to order. A. Items from Mayor, Council, and City Manager Ms. Bettman had no items. Mr. Meisner had no items. Mr. Rayor observed that it was City Manager Jim Johnson's last week of employment with the City, and said he had been honored to work with Mr. Johnson, who taught him a great deal about government and how to do the public's business in an open and humane way. He said that it had been a real privilege to serve with Mr. Johnson. Ms. Taylor had no items. Ms. Nathanson requested information from staff on the possibility of Eugene using a 3-1-1 nonemergency police and other government services information number, which had been successfully used elsewhere to divert calls from 9-1-1 centers. She asked if the use of the number had been considered or could be considered for Eugene or for Eugene and the other local area governments. Mr. Fart requested a work session on regulating unmuffled engine brakes inside the city limits. He noted that Lincoln County prohibited unmuffled engine brakes and placed signs in predominant places stating so. Mr. Pap~ and Mr. Meisner indicated support for Mr. Fart's work session request. Mr. Fart reported on his son's recent experience at a Willamette High School meeting of living former governors of the State of Oregon, saying he had the opportunity to speak to each of the governors present. Mr. Pap~ congratulated the Human Rights Commission on its recent event recognizing the Day of Acknowledgement. MINUTES--Eugene City Council February 25, 2002 Page 1 Work Session Mr. Pap8 said that Mr. Rayor's remarks regarding Mr. Johnson were well-taken, and he regretted he would miss Mr. Johnson's farewell event. Mr. Pap8 indicated he continued to receive comments about the improvements made to Ayres Road and Delta Highway and said he hoped that changes would be made. Mayor Torrey and Mr. Johnson arrived at the meeting. Mr. Kelly raised a concern regarding illegal dumping in his neighborhood as a result of its proximity to the Glenwood receiving station. He said that it appeared that if debris was on private property, it was the responsibility of the Planning and Development Department to respond to complaints; if the debris was on public property, it was the responsibility of the Public Works Department. That caused confusion among citizens attempting to report debris. The issue was compounded if the dumping occurred on vacant land; it might be a little into the private property, but it was essentially roadside trash. He questioned if the efficiency of the City's response to illegal dumping could be improved, and asked the manager to look into the subject. Mayor Torrey had no items. Mr. Johnson reported that he and the mayor had met with representatives of the General Services Administration (GSA) earlier that day in Auburn, Washington, to reassure the GSA that the City was on schedule with implementing the Memorandum of Understanding. The GSA had indicated understanding of the City's position and was pleased with the progress being made. B.Work Session: Joint Meeting with the Eugene Water & Electric Board The council was joined by Board President Dorothy Anderson and commissioners Sandra Bishop, Patrick Lanning, and Peter Bartel of the Eugene Water & Electric Board (EWEB). Ms. Anderson convened the meeting of the board, noting that Mr. Lanning and Mr. Bartel were going to be somewhat late arriving. Mr. Kelly welcomed EWEB commissioners and staff to the meeting. He thanked them for their work in responding to the ramifications of the recent windstorm. He also thanked the commissioners for their work in managing the electric utility in a difficult energy market. Those present introduced themselves. Mr. Johnson outlined the order the meeting would follow, noting that staff presentations would be followed by a dialogue about the Iow-income energy assistance funding issue and a proposed charter amendment for short-term borrowing. Mr. Lanning arrived at the meeting. EWEB General Manager Randy Berggren provided a briefing on EWEB's financial outlook. He first discussed the volatile energy markets of late 2000 through June 2001 as energy supplies were limited and forecasted to remain so. He described the negative impact that the electrical contracts purchased by EWEB at that time in order to replace lost generation had on the utility's financial position when price caps were finally imposed by the Federal Energy Regulatory Commission (FERC), the drought eased, and electric prices fell. He indicated that the price caps had little effect on EWEB. However, had EWEB failed to act to buy power, it was possible that the MINUTES--Eugene City Council February 25, 2002 Page 2 Work Session cost to customers could have been as much as ten times the increase they have seen to this point. Mr. Berggren reported that FERC held hearings in August and September 2001 regarding whether unjust and unreasonable prices were charged for wholesale power in northwest markets and whether refunds were due some utilities; FERC had yet to rule on the issue. If FERC were to rule in favor of the utilities, EWEB would save nearly $40 million, but that would require EWEB to seek refunds from numerous parties, which would be a challenge. Mr. Barrel arrived at the meeting. Continuing, Mr. Berggren said that the recession, in combination with the events of September 11, resulted in a collapse of loads on the entire west coast and lowered its load requirement by ten percent. That collapse of loads, in combination with the collapse of market prices, left many northwest utilities, including EWEB, with stranded commitments to high-price contracts and no market in which to sell them. That resulted in substantial increases in rates. In addition, Bonneville Power Administration raised wholesale power rates by an average of 46 percent in October 2001; that, in combination with increases in other costs, meant that EWEB saw a 63 percent wholesale increase in BPA rates. EWEB raised its electric rates by 32.8 percent to pass those costs to customers. Mr. Berggren stated that EWEB had borrowed money to pay for the higher priced contracts and had spent down its reserves prior to borrowing that money. EWEB needed to repay $30 million and generate an additional $10 million to build its reserves to normal levels. Mr. Berggren said that the board was now considering a rate increase in April 2002 to address the ramifications of the energy crisis, the drought, and the recession. To reduce the needed increase, EWEB had initiated several actions, outlined in the staff memorandum accompanying the agenda item summary, to lower costs over the next three years while minimizing customer rate increases. He anticipated the increase would be about 2.6 percent for residential customers and up to 5.5 percent for some commercial customers. A surcharge would be levied equally across all kilowatt hours for 36 months; at the end of that time, the surcharge would be reduced. He said that the utility continued to seek further savings opportunities. Responding to a question from Ms. Bettman, Mr. Berggren clarified that the rate increase affected both commercial and residential customers, noting again the approximate 5.5 percent increase for certain industrial contracts and commercial customers. Ms. Bettman asked if the additional megawatts purchased by EWEB were in excess of what was needed to serve the projected local need. Mr. Berggren responded that the amount was slightly in excess. EWEB executed those contracts in March and April 2001; at that time EWEB had a forecast of load and went slightly above it, although within power management guidelines, because EWEB was unsure of the future impact of the drought, which was anticipated to drop the McKenzie River flow below 1,000 CFS, the minimum flows on the Leaburg and Walterville projects. He noted that at that time EWEB had decided that if minimum flows occurred, the projects would be shut down. Responding to a question from Mr. PapS, Mr. Berggren confirmed that once EWEB had contracted for power, it had to purchase it. EWEB could sell the power, and EWEB had done so as it could. MINUTES--Eugene City Council February 25, 2002 Page 3 Work Session Mr. Berggren further confirmed, in response to a follow-up question from Mr. Pap6, that many northwest utilities were similarly affected, particularly those larger utilities with hydroelectric generation capabilities. He noted that EWEB has five hydroelectric projects. Mr. Pap6 asked how other local utilities fared. Mr. Berggren said that some had full requirements contracts with the BPA, leaving BPA with the financial obligation, which added to its rate increase. Others may have had other supply contracts of a firm cost nature that bridged the time period in question. Mr. Pap6 asked about the impact of conservation on the utility's load demand. Mr. Berggren said that EWEB thought it would get a good look at the impact of price elasticity when it implemented the tiered rate system, but the recession had somewhat clouded the issue. Loads dropped after the adjustment an additional ten percent; but on average, the entire west coast lost ten percent of its load over the last six months, which he attributed both to the recession and to some elastic response to higher prices. However, he noted the specific impacts of these two factors were difficult to distinguish. Mr. Pap6 observed that in the past, the Springfield Utility Board (SUB) had higher rates than EWEB. Ms. Taylor asked if the rate increase imposed in October 2001 would be decreased in the future. Mr. Berggren said it was possible, although the increase was a result of higher wholesale prices. Projections indicated that BPA's rates would probably be flat over the next few years following a small decrease in power costs in April and a possible rate increase in October 2002, which was attributable to a drop in the agency's financial reserves. Mr. Berggren said that there were many factors, including the potential of a new El Nifio, affecting the answer to Ms. Taylor's question. Ms. Taylor hoped that rates could be reduced, saying that people are going without heat and are cold. Mr. Farr reiterated Mr. Kelly's comments about EWEB's response to the windstorm. He asked about the impact of that response on EWEB's budget. Mr. Berggren estimated about $1.5 million in additional costs; staff was in the process of working out the actual costs. He added that EWEB was working with the City to secure relief dollars from the Federal Emergency Management Agency, which could mean recovery of about 75 percent of those costs, reducing EWEB's net out- of-pocket costs in responding to the storm to less than $500,000. Ms. Bishop added that the situation emphasized the importance of building EWEB's reserves. Mr. Meisner asked Mr. Berggren to speculate as to what FERC might do, and what effect a FERC action to order a cap on deliveries taken after the original order date would have on rates, and in what period of time. Mr. Berggren said that EWEB's legal counsel believed that there was about a ten percent probability of FERC ruling in the utilities' favor. He added that would be based less on the merits of the utilities' arguments and more on FERC's ability to figure out all the complications of the deals underlying them. If EWEB prevailed on the arguments, the value of the contracts involved in terms of prices paid above the cap would be about $40 million. However, even if EWEB was sustained by FERC, that reward would be in the form of refunds, which would require the establishment of a costly and complicated tracking system. In addition, some of the parties to the contracts may not be in business anymore. Mayor Torrey asked what expectations EWEB had of the load and revenue from local firms HMT and Hynix. Mr. Berggren said that he did not have that information at hand, noting that HMT was MINUTES--Eugene City Council February 25, 2002 Page 4 Work Session no longer in business but he did not think it was large relative to the volatility EWEB had seen in its retail loads. Hynix was a significant load, even through its shutdown and retooling. He added that the shutdown of Weyerhaeuser's number one paper machine cost EWEB some generation in June 2001. Mayor Torrey asked if BPA's agreements with the aluminum plants could be modified to put the plants back on line. Mr. Berggren did not know. He said that there was a regional debate occurring now, with all major customer classes of BPA, including investor-owned and public utilities, in negotiations to determine the future relationship of the aluminum companies to the BPA, and what obligation BPA had to serve them. He added that information he had seen indicated that aluminum smelters in the northwest were antiquated, inefficient, and, in the long- term, "dinosaurs." He did not anticipate that aluminum production would be a major part of the northwest economy in the future. Mayor Torrey asked Mr. Berggren what he thought would happen with electricity deregulation at the State level. Mr. Berggren responded that the State was in the process of implementing its deregulation bill, which took effect on April 1, 2002. He said that electricity deregulation in Oregon was very different than that embarked on by California. EWEB had supported the State legislation because of it was able to secure guaranteed payments for Iow-income customers, conservation, and renewables. In addition, the bill did not affect publicly owned utilities, leaving local control in Eugene with the board. DeeAnn Hardt of the Finance Services Division provided an overview of the financial status of the City's General Fund. She reviewed the impact of Ballot Measure 50 on Eugene's property tax revenue, forecasted property tax collection rates, the impact of Hynix revenues on the General Fund, and noted EWEB's wholesale and retail contribution in lieu of taxes (CILT) for electricity. She noted the reduction in current forecasted ClLT dollars since last fall's forecast. Ms. Hardt reviewed the uses to which ClLT wholesale moneys had been put, which included payment on a court-ordered land use claim award and seeding a Facilities Reserve for downtown City space needs. Ms. Hardt also noted the impact of Qwest's decision to stop honoring its franchise agreements with Oregon cities. Ms. Hardt discussed the impact of inflation, wage adjustments, and health care and retirement costs on the General Fund. Ms. Hardt provided a base case forecast of General Fund revenues and expenditures through fiscal year 2008, and also discussed the Eugene Budget Committee's adopted strategy to address the projected shortfall. Ms. Hardt noted a series of downside budget risks that could have a further detrimental effect on the City's forecast. She invited questions. Mr. Barrel asked what the City intended to do regarding Public Employee Retirement System (PERS) pooling. Ms. Hardt said that the City had chosen to not pool yet. The City was focused on becoming more fully funded on its own, which had some of the advantages of being in the pool, and would consider in the future whether it wished to join the pool to stabilize rates. MINUTES--Eugene City Council February 25, 2002 Page 5 Work Session Responding to a question from Ms. Bishop, Ms. Hardt estimated personnel costs at about 70 percent of the General Fund budget; that figure did not include consulting services. Any contracts within the wage category were included. Ms. Hardt then discussed City staff's recommendation to the Budget Committee regarding EWEB's proposal that the City fund additional Iow-income energy assistance. She said that staff recommended that the City not provide that additional funding in fiscal year 2003 because the CILT revenues, while still substantial, were less than projected; the City's General Fund was already financially constrained and reductions were planned for fiscal year 2003; EWEB had provided increased funding for Iow-income energy; and the City Council had recently taken action to dedicate $55,000 to energy assistance for Human Services Commission Fund contract agencies who provide housing or direct client support in Eugene. Ms. Anderson acknowledged Eugene's financial position. She said that the problem the board was having with the CILT issue was that it was often criticized because Eugene's CILT rates were higher than Springfield's CILT rates. The Springfield Utility Board pays only three percent in a CILT to the City of Springfield, and by mutual agreement EWEB pays a six-percent CILT to Eugene. Now the board was "hammering" its constituents with rate increases, and for that reason the board had hoped Eugene could provide the requested assistance funding. In response to Ms. Anderson, Mr. Kelly said that if the City's finances were in better shape he would give EWEB's proposal very serious consideration. However, the City's was looking at finding $1.5 million in budget reductions in its own services. Regarding the CILT money dedicated to the Facilities Reserve, Mr. Kelly said that the reserves would be allocated to relocating the police personnel from the basement of City Hall, which he described as an unreasonable and unsafe environment. Mr. Meisner said he appreciated the action the council took to support the human service providers with assistance for their increased costs of energy. He thought that providing type of assistance, one-time or emergency assistance, was a more appropriate role for the City. He did not support using the CILT moneys for an ongoing program, saying that the council needed to consider its mission as a government. He said that the City Council needed to consider carefully when the City could take on new ongoing services and ensure that they were affordable and sustainable and within the City's mission. Mr. Meisner hoped that the outcome of the FERC process was favorable to EWEB. Ms. Bishop questioned the distinction made between the wholesale and retail CILT. She thought it somewhat misleading to state that the City would get less CILT money. She said that EWEB was asking the City to use the CILT money for Iow-income energy assistance because of the nexus between the source of the funds and the use. Ms. Bishop believed that the City had an obligation to spend the money in a way that was directly related to those who paid it. She was trying to find a fair and equitable way to regain some of the CILT money for that purpose. Ms. Bishop said that while the City was getting less than projected, it was getting more than expected before because of EWEB's rate increase. Mr. Johnson emphasized the impact of Qwest's refusal to pay franchise fees on the General Fund budget, and said that even if the City prevailed in court, he did not expect any payment would be received until fiscal year 2005. He believed that if Qwest had not refused to pay the franchise fees, the discussion that was occurring would be very different. MINUTES--Eugene City Council February 25, 2002 Page 6 Work Session Ms. Nathanson thanked EWEB staff for the information it provided to the Human Services Commission the past fall when the subject of funding energy assistance was under discussion. She appreciated the programs that EWEB offered to its customers to assist them with the costs of energy, and hoped those programs could be integrated into the efforts of the commission and the City where appropriate. Ms. Taylor asked how much electric rates would go down if the CILT were reduced to three percent. Mr. Berggren estimated that the result would be a 2 percent to 2-1/2 percent reduction. Ms. Taylor wondered how much energy assistance the City could have provided to Iow-income residents if it did not grant Hynix a tax exemption, adding that not just Iow-income residents were having difficulty paying their energy bills. Ms. Bishop said she received a lot of calls from customers who wanted to know why EWEB rates were higher than SUB's rates, and she believed the biggest difference was that SUB's rates were based on costs, and EWEB's rates were based on the public's interest. Eight to ten percent of EWEB's revenues go to public purposes, such as renewals, conservation, and energy assistance. She said that the public had demanded those elements. Mayor Torrey said he believed there was a need in the community for many forms of relief, including energy assistance, and he believed that the council reached out to address those needs. For example, the City provided after-school programs without discriminating between residents and nonresidents. In addition, the council decided to fund drug treatment programs and had to address the negative impact of the Board of County Commissioners' decision to allow Lane Rural Fire District to provide service in an extended ambulance district. Regarding the six-percent CILT, he said that the business decisions around CILT were ones that he endorsed. He recommended that EWEB and the City work together to the degree possible to solve the problem that existed. He asked that the board understand the limitations facing the council. Mr. Rayor suggested the possibility of EWEB borrowing to fund energy assistance programs and then repay the money when conditions improve in two or three years. City Financial Analysis Manager Becky Koble invited questions on the staff recommendation for a potential charter amendment regarding EWEB's short-term borrowing authority. Ms. Bettman asked staff to define the risks of the charter amendment for the ratepayer and the City. She also asked how the five percent figure was arrived at. Jim Origliosso, EWEB Treasurer, said the five- percent number had been in the City Charter since 1976. It actually was derived from an old Trojan Power Plant bond resolution that sought to restrict the subordinated, or unsecured debt, of EWEB. He said the ratepayers were essentially protected by the additional language that was outlined in the staff memorandum on the topic, Joint Staff Recommendation on Proposed Revisions to the Eugene City Charter. The bond holders would assume the risk of the revenues not being available. Mr. Johnson also pointed out that by definition, short-term borrowing was for one year. Mr. Kelly said the amendment appeared to be a housekeeping item. Mr. Meisner did not characterize the amendment as housekeeping, given that it addressed borrowing. He asked if the charter amendment was being prepared in isolation from other EWEB charter issues. Mr. Johnson indicated that staff was recommending that it be addressed aside MINUTES--Eugene City Council February 25, 2002 Page 7 Work Session from the other charter issues because EWEB requested it as one of four possible amendments, and because both EWEB and City staff believed it was not a controversial amendment. He did not believe it would complicate the passage of other charter-related amendments. Responding to a question from Mr. PapS, Mr. Johnson concurred that the firewall between utilities was provided in the last sentence of the charter amendment. Mr. Rayor agreed that the amendment was a housekeeping item that codified the separation between utilities. He said that he was satisfied in that telecommunications utility was to be self- supporting, or EWEB would not embark on it. Ms. Bettman asked if the charter amendment would be a stand-alone measure or grouped with the City's housekeeping charter items. Mr. Johnson said that would be a council decision. Ms. Bettman preferred a separate ballot measure. Mayor Torrey thanked the board for meeting with the council. Mr. Johnson encouraged the two bodies to meet at least once annually to discuss issues of shared concern. The council took a two-minute recess. C.Work Session: Selection of Bus Rapid Transit Route for Further Study The council was joined by Lane Transit District Board (LTD) President Pat Hocken, LTD General Manager Ken Hamm, Planning Director Jan Childs, Senior Planner Kurt Yeiter of the Planning and Development Department, Transportation Engineer Dave Reinhard, and LTD staff Stefano Viggiano and Graham Carey. Mr. Yeiter said that the first phase of Bus Rapid Transit (BRT) was being designed for construction. The choice before the council was to select the first route of the second phase. The two most probable routes appear to be toward the northwest along 6th/7th avenues and Highway 99, or toward the northeast in the Coburg Road corridor. He characterized both routes as desirable with many positive attributes. He said both appear to be feasible, and both would be difficult to implement. Mr. Yeiter said that after much study, by a 6:1 vote, the Planning Commission recommended the Coburg Road corridor as the first route for the second phase. The commission also asked the council to join it in encouraging LTD to explore better bus service improvements along the Highway 99 corridor to better serve northwest Eugene until BRT can be extended in that direction. Ms. Hocken provided a short presentation on the Coburg Corridor BRT route, emphasizing that the corridor not selected would be constructed in the future. She reported that LTD's Bus Rapid Transit Steering Committee had also endorsed the route recommended by the commission. The LTD staff also supported the recommendation. The LTD board itself had not taken action, but was supportive of the corridor because it provided an opportunity to link the route with the Pioneer Parkway BRT corridor, creating more transit connections and enhancing ridership potential. The linkage would create a system rather than separate routes, which LTD believed would appeal to the Oregon Congressional delegation when it considered future funding requests. Ms. Hocken said that another important consideration of the route was that it was under the sole jurisdiction of Eugene and had more potential for an exclusive right-of-way. MINUTES--Eugene City Council February 25, 2002 Page 8 Work Session Ms. Hocken noted the route studies that would follow and emphasized the extensive public participation envisioned by LTD. She said that LTD would also have to comply with all federal environmental regulations. Following that process, the council would decide whether to proceed with the route. She clarified that at this time, LTD did not have money to build the route, and hoped to secure earmarked funds through the next reauthorization of federal transportation legislation. Mayor Torrey called for a first round of comments/questions. Mr. Kelly indicated appreciation for the Planning Commission's recommendation but disagreement with its analysis. He preferred the Highway 99 route because of high growth in the Bethel-Danebo area, because it was currently underserved by transit as compared to the Coburg corridor, and because there was more potential to reduce vehicle miles traveled because of the area's distance from the core. Regarding the Planning Commission's recommendation that the City Council encourage LTD to improve frequency and service options to northwest Eugene, he said it struck him as "almost insulting," given LTD's budget problems and dependence on the payroll tax. He acknowledged that the Oregon Department of Transportation's (ODOT) jurisdiction over Highway 99 complicated the construction of the route, but suggested that a conversation with ODOT must occur sooner or later, and he preferred to have it now with the existing traffic volumes on 6th and 7th avenues. Mr. Kelly said that the Highway 99 route brought people into the center of town, and the Coburg route, particularly with the loop to Springfield, seemed designed to encourage people to go to Gateway and out to the edge of town. Ms. Bettman agreed with Mr. Kelly's remarks. She thought the route should be placed where it would have the most positive impact, and pointed out that the Chad area off Coburg Road was already being redeveloped privately, and that was not true of the areas along and around the Highway 99 route. The route would stimulate private investment in those areas. Ms. Bettman said that the two areas were not comparable in terms of the income of residents in the neighborhoods to be served, and BRT could serve working families in the Bethel area to commute to work and allow them to own only one car, a cost savings annually of between $6,000 and $8,000. She termed that a boon to those families and the economy. Mr. Meisner, a member of the BRT Steering Committee, said there was value to both routes. However, he agreed with the points cited by Ms. Hocken in support of the Coburg route and agreed that the City's jurisdiction over the road was critical. He said neither route was easy, but in the case of the Coburg route, the City was the decision maker. Referring to the suggested motion included in the agenda item summary, which referred to a "possible" link, Mr. Meisner said that the word should be struck; he termed the link crucial. He noted the considerable amount of multiple- family housing in the Coburg Road as contrasted to the Bethel area, and the heavy use Coburg buses now receive. Mr. Meisner asked Ms. Hocken to respond to the question of "how and why BRT when LTD is cutting other services because of revenue loss." Mr. Rayor said that both options had strengths and weaknesses. He thought the focus of the discussion should be on which route better supports the concept of the BRT system. He questioned whether the linkage of the Eugene and Springfield routes was as significant as it seemed given that it was not much farther for people to travel to Eugene using the Springfield MINUTES--Eugene City Council February 25, 2002 Page 9 Work Session Station. Mr. Rayor said that the Highway 99 route appeared to better balance the first phases of the BRT system and in addition took on the hardest route first. He thought LTD needed to test the BRT concepts with ODOT given the agency's unfamiliarity with the concepts outside the Portland metro area. Ms. Taylor also supported the Highway 99 route and concurred with the remarks of Mr. Kelly and Ms. Bettman, particularly Ms. Bettman's remarks about serving the Iow-income residents living near the route. Ms. Nathanson supported the Planning Commission's recommendation because she believed it would better serve more intense development and demonstrate the greatest near-term success. She emphasized the importance of the project having early success to enhance its public and later, federal support. In addition, the growth projections for employment and linked trips convinced her the route was the better choice. Ms. Nathanson asked LTD for examples of other successful two-way loop service. Mr. Farr agreed with Ms. Nathanson regarding the need for near-term success. He supported the Planning Commission's recommendation because of the City's jurisdiction over the street, which would give LTD and the City the opportunity to work out some of the issues related to the use of the street before approaching ODOT for use of 6th and 7th avenues. He concurred with Mr. Meisner about the importance of the connection to the Springfield route. Mr. Farr believed the route would help alleviate conditions in the heavily congested Ferry Street Bridge corridor, Chad- Crescent area, and Gateway area. Mr. Farr endorsed the Planning Commission's recommendation to increase neighborhood routes and frequencies in northwest Eugene. Mr. Pap8 concurred with the remarks of Mr. Meisner, Ms. Nathanson, and Mr. Farr. He agreed as to the importance of the link with Springfield. He said that the Coburg route was also important because the City needed to begin to deal with its lack of bridges and the fact the few that existed were becoming a bottleneck. The traffic conditions on those bridges needed to be alleviated. He said that would demonstrate the near-term success mentioned by Ms. Nathanson. Mr. Pap8 acknowledged the growth that had occurred in west Eugene, but pointed that there had also been considerable growth in north Eugene. Mayor Torrey indicated support for the Coburg route because of the substantial increase in University of Oregon students living off Crescent, the many Iow-income housing developments adjacent to Coburg Road, the high percentage of senior citizens living in the area, and the anticipated development and redevelopment projected to occur along the corridor. Ms. Hocken responded to comments and questions. She endorsed Mr. Meisner's recommendation that the word "possible" be struck from the motion. She said that LTD had many th th discussions about the use of 6 and 7 avenues with ODOT, and the agency was not willing to commit a lane of traffic for the use of BRT. She hoped that the ridership on the Coburg route could help demonstrate to ODOT that the system could be an asset rather than a problem. Regarding service in the northwest, Ms. Hocken said that the board had heard testimony the previous week about that issue, and she anticipated a larger discussion of service to the area, involving area residents, about that topic. MINUTES--Eugene City Council February 25, 2002 Page 10 Work Session Mr. Viggiano cited LTD's service to Valley River Center via Coburg Road as an example of a looped service. He emphasized Springfield's interest in a link between the two routes. Ms. Hocken addressed Mr. Meisner's question about how and why BRT, noting LTD's dependence on payroll tax revenues and fares for operations. She said that payroll tax revenues were much less than projected because of the recession. Much of the money LTD received from the federal government was restricted to capital expenditures such as buses, and could not be used by LTD to put buses on the road. Mr. Kelly, seconded by Mr. Pap~, moved that the City Council's recommendation to LTD be that Coburg Road to the Chad/Crescent area, with a link to a BRT line connecting downtown Springfield to the Gateway area, be immediately considered for Bus Rapid Transit. Mr. Kelly noted that the data provided by LTD indicated that the population along the Highway 99 corridor was currently 50 percent higher than the population along the Coburg corridor and would continue to be so in 2020. The population per mile was currently higher, and projected to remain so. He said that preliminary numbers, since pulled, had indicated that the percentage of exclusive busway on the Coburg Road route would be no higher than 50 to 60 percent. The council had passed a motion stating it expected BRT in Eugene would have the great majority of routes in exclusive busways. He wanted to support BRT but said he would oppose a design that was 50 to 60 percent guideways. He opposed the motion. Mr. Rayor said that the discussion should focus on where the need for BRT was. He said the Coburg route would result in more ridership because of its higher employment numbers. In contrast, the employment base in the Highway 99 area was more spread out. He said that the City and LTD should work with ©D©T to ensure that the Highway 99 route can be built next. Mr. Rayor said that the system needed a near-term success to build upon. Ms. Bettman asked if LTD received assurance from the City that it would receive a lane on Coburg Road. She said that BRT was a commuter system, which meant that stops are less frequent than regular service, and she was concerned that the Coburg route would succeed by displacing the existing successful service. Regarding the employment figures, she said that to make transit work, the population base must be linked with employment. Merely recirculating people around an employment area would not increase ridership or decrease congestion. She said that the connector system would better serve the Highway 99 corridor, giving that population base of 21,000 people access to the BRT system and then to the core, as opposed to 9,000 people living along Coburg Road. In addition, the people in Bethel were of lower income and much more likely to ride the bus to commute to work than Coburg residents. She opposed the motion. In response to Ms. Bettman, Ms. Hocken said that LTD did not have an assurance from City staff about the use of the road, but she anticipated that, given the council's strong interest in a dedicated right-of-way, it would direct staff to work with LTD to achieve that objective. Ms. Nathanson asked why LTD did not support the Highway 99 route over the Coburg route given the disparity in connector bus population per mile. Mr. Viggiano said that the reason the figures for the Highway 99 were higher was because the area was quite a bit larger and because of the extensive nature of the connector system. He added that the connector bus system design would be done in conjunction with the route design process, and the projections were to some degree just guesses at this point. MINUTES--Eugene City Council February 25, 2002 Page 11 Work Session With regard to ODOT, Mayor Torrey pointed out that it did not need to give the City permission to use its road. Not only was there the issue of the dedicated lane, there was also the issue of computerized signalization at State highway intersections. He emphasized the importance of the second link in the system, and said the Coburg route had the most potential for success. Regarding service to the Bethel area, Mayor Torrey pointed out that the Bethel School District was building a new alternative high school in the northwest area, and stressed the importance of addressing transit needs in that part of the community. The motion passed, 5:3; Mr. Kelly, Ms. Taylor, and Ms. Bettman voting no. Mayor Torrey adjourned the meeting at 7:47 p.m. Respectfully submitted, James R. Carlson City Manager pro tern (Recorded by Kimberly Young) MINUTES--Eugene City Council February 25, 2002 Page 12 Work Session