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HomeMy WebLinkAboutCC Minutes - 06/25/01 Meeting MINUTES Eugene City Council Regular Meeting Council Chamber--Eugene City Ha11--777 Pearl Street June 25,2001 8 p.m. COUNCILORS PRESENT: Betty Taylor, David Kelly, Nancy Nathanson, Pat Farr, Scott Meisner, Gary Rayor, Gary PapS, Bonny Bettman. CITY COUNCIL MEETING Mayor James D. Torrey called the meeting to order. 1.PUBLIC FORUM Gary Gillespie, 790 East 23rd Avenue, speaking as a representative forAFSCME Local 1724, said that the union's workers were employed in every City department and performed a wide variety of services. He requested that the AFSCME contract maintain its health benefits and cost-of-living increases. Additionally, Mr. Gillespie urged the council not to endorse a policy that asked the middle- and working-class citizens of the community to bear the cost of the huge profits of the health care and drug industries. Alan Wagner, 2650 Chuckanut Street, urged the council to permit Sacred Heart to relocate its main facility to its desired location but keep its emergency room and trauma team at its current location. Wanda Simmons, 1183 Skipper Avenue, raised concern over the overcrowding of development in the Santa Clara area and urged the council to adopt more stringent development regulations for that area. Jim Hale, 1715 Linnea Street, urged the City to play "hard ball" with Sacred Heart Hospital. He suggested deleting hospitals from R-4 zoning and that the City Council make an official response to the hospital's plans to relocate. Mr. Hale also suggested that the hospital could relocate to the old Eugene Clinic site and its surrounding blocks, saying that it would have a positive impact on the downtown area. Wallace Anderson, 3288 Lakemont Drive, thanked the City Council and staff for their work on the Ayres Road planning. He said the area would be greatly improved. MINUTES--Eugene City Council June 25, 2001 Page 1 Regular Meeting James W. Edgar, 55 Ayres Road, expressed his dissatisfaction with the Ayres Road decision and asserted that the City Council was not doing its job. Deborah Jeffries, 3800 North Delta Highway, requested that items D and E be pulled from the Consent Calendar. She requested that a traffic study be performed to support staff's conclusions on Ayres Road design. She raised concern that the City would not maintain the planned landscaping adequately and added that staff's road design was inconsistent in its safety philosophy. She reiterated that there had been no traffic study or accident history to support staff's conclusions. Ms. Jeffries quoted Milo Meecham as saying: "The City is paying the greatest share of the cost of the project and the City should be able to design the project that they (sic) want." Ms. Jeffries expressed her alarm at that statement and asked, if that was the case, why have public hearings on anything. She commented that the private sector would be required to do a traffic analysis and a wetland delineation if it was a development project. She stressed that the City should demonstrate that everyone needed to follow the same policy and rules. Ms. Jeffries requested that a wetland delineation and a design analysis be done for the project. She also asked that the people in the area be allowed to design the project. Betty Donaldson, 398 Hawthorne Avenue, urged that better planning be done for the Santa Clara area. She stressed that development was overcrowding the area. Bob Meltebecke, 3224 Boardwalk Drive, said that the Ayres Road work should be done as soon as possible before the costs went up any more. James Spickerman, 975 Oak Street, requested that items D and E be pulled from the Consent Calendar. He asserted that there had not been adequate notice to citizens on how to file a remonstrance. He said that people did not even know that they had the chance. He also urged that the project be returned to the Hearings Official since he believed that the public notice was inadequate. Marie Gray, 353 Knoop Way, urged better development planning to address the narrow streets in the Santa Clara area. Charles Van Dyne, 1995 Potter Street, urged the council to come to a good/fair resolution to the Ayres Road proposed project. Councilor Bettman thanked the AFSCME workers for attending the meeting and for the service they provided to the City. Addressing Mr. Wagner, Councilor Bettman noted that an emergency room facility required an intensive care unit and a range of other services. She said that an emergency room needed to be accompanied by a hospital. She acknowledged that there were urgent care centers, but said that they did not provide the same services as an emergency room. Councilor Bettman said that Mr. Hale's suggestion for the hospital was an excellent one. MINUTES--Eugene City Council June 25, 2001 Page 2 Regular Meeting Mayor Torrey said that a number of City staff were working on the development process in the River Road/Santa Clara area. He said that no one was at all comfortable with what happened there. He expressed his appreciation to the area residents who testified at the public forum. Regarding AFSCME, Mayor Torrey thanked the members for the manner in which they presented their position. Councilor Kelly thanked the AFSCME workers for attending the meeting. He said that he was very impressed with the high quality of work that they provided for the organization. He noted that the City Council was, by charter rule, not allowed to take any part in benefits negotiations with the union. Regarding Mr. Hale's proposal to relocate near downtown, Councilor Kelly said that it was an excellent idea and said that a change in the wording of the code would help convince the hospital to keep a central location in the city. He said that it was a lengthy process to change the Land Use Code and asked that the City Manager start the process. Councilor Pap~ echoed the thanks to the AFSCME workers. Regarding the Ayres Road issue, Councilor Pap~ said that he intended to pull items D and E from the Consent Calendar. Councilor Taylor also thanked the AFSCME workers who attended the forum. Councilor Taylor commented that Mr. Hale's proposal regarding the relocation of Sacred Head Hospital was a better idea than what was proposed. II.CONSENT CALENDAR A. Approval of Council Minutes: May 29, 2001, Work Session May 29, 2001, Regular Session May 30, 2001, Work Session B. Approval of Tentative Working Agenda C. Ratification of Intergovernmental Relations Committee Actions of May 31, 2001 D. Resolution 4674 Forming a Local Improvement District for Paving, Curbs, Gutters, Sidewalks, Medians, Street Lights, Street Trees, and a Storm Water Drainage System on Ayres Road from Delta Highway to Gilham Road and on Gilham Road from Ayres Road to Honeywood Street (Job #3367) MINUTES--Eugene City Council June 25, 2001 Page 3 Regular Meeting E. Resolution 4675 Forming a Local Improvement District for Paving, Curbs, Gutters, Sidewalks, Wastewater, Medians, Landscaping, Street Lighting, and a Storm Water Drainage System, on North Delta Highway from Green Acres Road to Ayres Road (Job #3710) F. Resolution 4676 Opposing Proposed Update to Ambulance Service Area Plan G. Resolution 4677 Providing the Issuance and Sale, by the City of Eugene, Oregon, Acting by and Through the Eugene Water and Electric Board, of Revenue Bonds in an Amount Not to Exceed $50 Million H. Resolution 4682 Calling a Special City Election on September 18, 2001, for the Purpose of Referring to the Legal Electors of the City of Eugene a Charter Amendment Concerning the Process for Election of the Mayor and City Councilors Councilor Taylor, seconded by Councilor Kelly, moved to approve the items on the Consent Calendar. Councilor Rayor pulled item A. Councilor Pap8 pulled items D and E. Councilor Nathanson pulled item F. Councilor Rayor offered a correction to the minutes of May 29, packet page 64, paragraph 4. He said that he had said perfecting the arrest rather than affecting the arrest. He noted the same correction for packet page 65. For the May 30 minutes, packet page 83, paragraph 3, he noted that the word should have been no rather than on. Roll call vote; items A, B, C, G, and H, were approved unanimously, 8:0. Regarding item F, Councilor Nathanson said that the Ambulance Service Area Plan was important for the viability of service for the entire area. She said that she had looked for information coming from other than Eugene staff. She cited Lane County Health and Human Services staff and a consulting physician as examples. She said that the outside information confirmed the information provided to her by Eugene staff. She suggested clarifying a statement on packet page 272, if the council had to address another redesign proposal in the future, regarding calculations of response times for units in and out of position. She also called for an explanation of the base line requirement for a license for Eugene Fire and Emergency Medical Services (EMS) and for information on how often Eugene had to back up Lane Rural's service. City Manager Johnson noted that there was a letter of concern over the plan from several district chiefs, on packet page 275. Roll call vote; Item F passed unanimously, 8:0. Mayor Torrey recused himself from the meeting during the discussion of items D and E and passed control of the meeting to Council President Taylor. MINUTES--Eugene City Council June 25, 2001 Page 4 Regular Meeting City Manager Johnson introduced Paul Klope from the Public Works Department to answer any questions from the council. In response to a question from Councilor Rayor regarding the lane width on Delta Highway near Ayres Road, Mr. Klope said that, including the bike lane on the west side, the lane was 17 feet. He said the east side was approximately 13 feet. Councilor Rayor said that there had been a previous agreement to make the east side lane of the road at least 14 feet wide to address the tracking of long gravel haulers in the area. Mr. Klope said that the outer edges of the long vehicles used had been tracked in a computer program and the design had been altered to make sure that the vehicles did not intrude on the bike lanes. Councilor Rayor reiterated that an agreement had been made to make the lane on the east side 14 feet wide. He said that the computer program did not track the gravel hauler's vehicles correctly and the lane needed to be wider. In response to a concern raised by Councilor Pap8 regarding the notice for the remonstrance period, Mr. Klope said that the letter that was distributed to the affected property owners stated that they could remonstrate at the public hearing. He went on to provide the standard notice process and noted that there had been a notice in The Register-Guard ten days prior to the public hearing. In response to a question from Councilor Pap8 regarding a wetland delineation and a traffic study, Mr. Klope said that a wetland delineation had been done for both projects and the area surveyed for rare and endangered plants. Regarding a traffic study, Mr. Klope said that staff had followed the guidelines that were in the Arterial and Collector Street Plan. He added that the Transportation Division had also reviewed the design of the turn lanes. In response to a question from Councilor Pap8 regarding how many design charettes were held for the proposed projects, Mr. Klope called attention to council packet page 106 and 200 that showed all public meetings starting in October 1998. In response to a question from Councilor Pap8 regarding whether he felt that there was a normal public process for the proposed projects, Mr. Klope said that there had been greater than normal opportunity for public input on the projects. Councilor Bettman commented that three of the properties were receiving a subsidy and said that systems development charge (SDC) funds should be used to provide for those subsidies. In response to a question from Councilor Bettman regarding whether there was any way for the City to recover its contribution if the subsidized properties were ever sold, Mr. Klope said that, to his knowledge, there was no way for the City to recover the assessment. In response to a question from Councilor Bettman regarding whether properties that would directly access the street in the future would be assessed, Mr. Klope said that if a property received access to the street at a future date then an assessment would be due at that time. Councilor Kelly noted that the final design for Delta Highway had already been approved in March. MINUTES--Eugene City Council June 25, 2001 Page 5 Regular Meeting In response to a question from Councilor Rayor regarding the remonstrance notice, City Attorney Lidz called attention to Eugene Code 7.260 "Curative Provisions". He noted that no one had shown that they did not have an opportunity to remonstrate that would have made a difference. He said that those who were complaining were represented by a knowledgeable attorney at the public hearing. In response to a question from Councilor Pap8 regarding whether notice was given incorrectly but there was no prejudice, City Attorney Lidz said there was one issue relating to the published notice and whether it gave sufficient detail about who could remonstrate and when. He said that error, if it was an error, was corrected by mailed notice to affected property owners. In response to a question from Councilor Taylor regarding whether the property owners in Lakeshore and on River Point Road were paying any assessments, Mr. Klope said that the people in River Point abutting the road were paying assessments and the same went for abutting residences in Lakeshore. He noted that the assessments were spread differently in a planned unit development than other areas. Councilor Taylor said that she continued to think that the method of assessment was unjust and said that she would vote against both of the items again. Councilor Kelly, seconded by Councilor Nathanson, moved to approve the Hearings Official's minutes, findings, and recommendations of June 14, 2001, and further moved to adopt Resolution 4674, a resolution forming a local improvement district for paving, curbs, gutters, sidewalks, medians, streetlights, street trees, and a storm water drainage system on Ayres Road from Delta Highway to Gilham Road and on Gilham Road from Ayres Road to Honeywood Street. Roll call vote; the motion passed 7:1, Councilor Taylor voting in opposition. Councilor Kelly, seconded by Councilor Nathanson, moved to approve the Hearings Official's minutes, findings, and recommendations of June 14, 2001, and further moved to adopt Resolution 4675, a resolution forming a local improvement district for paving, curbs, gutters, sidewalks, waste water, a storm water drainage system, medians, landscaping, and street lighting on North Delta Highway from Green Acres Road to Ayres Road. Councilor Nathanson commented that the discussion had gone on for a long time before the current meeting. She said there was not going to be a way to satisfy all parties and added that there were always design issues that some people were not comfortable with as well as cost issues that people were not going to be happy about. She noted that it was especially a problem where the City took over an unimproved County road that was not developed to urban standards. Councilor Rayor commented that it only made sense to improve roads along with area growth. Councilor Taylor commented that the people who caused the need for the improvement should be the people paying for the improvement. She said that the SDCs on the new properties did not begin to equal assessments that people already living there had to pay. Roll call vote; the motion passed 7:1, Councilor Taylor voting in opposition. MINUTES--Eugene City Council June 25, 2001 Page 6 Regular Meeting Councilor Meisner left the meeting room. III.DISCUSSION AND ACTION: Golden Gardens Land Exchange Mayor Torrey returned to the meeting. Councilor Taylor, seconded by Councilor Kelly, moved to approve the Golden Gardens land exchange subject to the conditions of agreement which are substantially similar to those presented in the Lane County Special Use Permit. In response to a question from Councilor Rayor regarding the reason the entire edge of the southern pond was not included, and therefore would be subject to Fish and Wildlife regulations, Andrea Riner of the Public Works Department said the reason was based primarily on access. She said that because of the pond and the A-2 channel there was currently no access to the north side of the property. She said that the proposed boundary was drawn to match the natural features of the site. In response to a question from Councilor Kelly regarding whether there was language in the exchange protecting the ponds from filling, Ms. Riner said that the language that protected the ponds was included in the Lane County Special Use Permit. City Manager Johnson said that he would be happy to put additional protection language into the exchange agreement as a condition. Roll call vote; the motion passed unanimously, 7:0 (Mr. Meisner being out of the room at the time the vote was taken). IV. PUBLIC HEARING AND POSSIBLE ACTION: a Special Ordinance Granting an Exemption to the Application of Eugene Code 1971, Section 6.200 (Open Burning Exemption for Prescribed Wetland Management Burning) Mayor Torrey opened the public hearing. Seeing no one wishing to speak, he closed the public hearing and called for councilor comments/questions. City Manager Johnson asked the council to consider Council Bill 4767, a special ordinance granting an exemption to the application of Eugene Code, 1971, Section 6.200 (Open Burning Exception for Prescribed Wetland Management Burning). Councilor Meisner returned to the meeting. Councilor Taylor, seconded by Councilor Kelly, moved that the bill, with unanimous consent of the council, be read a second time by council number only, and that enactment be considered at that time. Roll call vote; the motion passed unanimously, 8:0. City Manager Johnson asked the council to consider Council Bill 4767 by number only. MINUTES--Eugene City Council June 25, 2001 Page 7 Regular Meeting Councilor Taylor, seconded by Councilor Kelly, moved that the bill be approved and given final passage. Roll call vote; the motion passed unanimously, 8:0, and became Ordinance 20231. V. PUBLIC HEARING AND ACTION: a Resolution Adopting a Supplemental Budget; Making Appropriations for the City of Eugene for the Fiscal Year Beginning July 1, 2000, and Ending June 30, 2001 Mayor Torrey opened the public hearing. Seeing no one wishing to speak, he closed the public hearing and called for councilor questions/comments. Councilor Taylor, seconded by Councilor Kelly, moved to approve Resolution 4678 adopting a supplemental budget; making appropriations for the City of Eugene for the fiscal year beginning July 1, 2000, and ending June 30, 2001. Councilor Kelly, seconded by Councilor Taylor, moved to amend the FY01 Supplemental Budget #3 to direct that any remaining General Fund contingency balance be transferred into FY02 General Fund contingency at the time of FY02 Supplemental Budget #1. In response to a question from City Manager Johnson regarding whether the intent of the motion related to the social services side or the general contingency account, Councilor Kelly said just the general City of Eugene account was intended. In response to a question from Councilor Nathanson regarding the bottom line impact of the amendment, Kitty Murdoch of the Administrative Services Department said staff was not anticipating any balance in the general contingency account. She noted that there was a $50,000 request for police overtime reimbursement and staff was asking for that money to be appropriated for the Police Department. City Manager Johnson said that the Police Department was extremely close to overexpending its budget. He said that any money not needed would be returned, but noted that there had been a number of large specific overtime costs during the year. He cited the Halloween activity, three homicides, and the Romania arson investigation as examples. Councilor Kelly said that it was his understanding that the remaining $50,000 had not yet been expended and it was his intention to salvage whatever was left for things that had recently come before the council. He cited design standards for reopening Broadway as an example. City Manager Johnson noted that there was more than $50,000 in the social services contingency account that could accomplish what Councilor Kelly was suggesting. Councilor Kelly expressed concern that the $50,000 was a placeholder in case of spring public demonstration activity and observed that there had been no spring and summer protest activity. He said that if the police budget did not end up being appropriately managed for separate reasons then that was a matter for the department manager to work through since the contingency was set aside for a specific purpose that never occurred. MINUTES--Eugene City Council June 25, 2001 Page 8 Regular Meeting City Manager Johnson said it was not unusual for there to be extraordinary events that exceeded the Police Department's overtime budget. He said that the overtime budget had already been exceeded even without any protests to address. With the permission of his seconder, Councilor Kelly changed his motion to specify the social service side of the contingency funds. Councilor Bettman raised concern that there were social service needs that the contingency money could have been used for. She also expressed concern that a placeholder had been in the budget for a specific activity and now the reason for the placeholder had been expanded. City Manager Johnson said there were no dollars being taken away from social service agencies by Councilor Kelly's amendment. He said that no further applications from social service agencies had been received. Councilor Bettman reiterated that the placeholder in the budget had been for a specific police activity which did not happen and was now being expanded to include any overtime costs. Roll call vote; the amendment passed 7:1, Councilor Farr voting in opposition. In response to a question from Councilor Meisner regarding money being used for sports park lighting, Ms. Murdoch said the money was being forwarded by School District 4J. In response to a question from Councilor Meisner regarding whether the requested Citizen Charter Review Committee money was in addition to the anticipated amount, Ms. Murdoch said that it was the anticipated amount. Councilor Taylor, seconded by Councilor Kelly, moved, at the suggestion of Ms. Murdoch, to amend the motion by decreasing the Planning and Development Department appropriation in the Facility and Fleet Fund by $100,000 and to increase the balance available by $100,000. In response to a question from Councilor Farr regarding where the $100,000 came from, Ms. Murdoch said that it was a mistake in the format of the resolution that should not have been in the budget and would not affect the total of the budget. Roll call vote; the amendment passed unanimously, 8:0. Councilor Taylor, seconded by Councilor Kelly, moved to reduce the EMS Fund balance available by $60,000 and increase the Fire and EMS department operating budget by $60,000. Councilor Rayor expressed his surprise that new ambulances were being purchased as he did not remember it in the budget discussion. City Manager Johnson responded that money was set aside for the replacement of all City vehicles each year. He said that the money came from the Fleet Fund budget that was approved and not part of the Fire and EMS budget. Roll call vote; the amendment passed unanimously, 8:0. Roll call vote; the main motion passed unanimously, 8:0. MINUTES--Eugene City Council June 25, 2001 Page 9 Regular Meeting VI.PUBLIC HEARING AND ACTION: A Resolution Adopting the Budget, Making Appropriations, Determining, Levying, and Categorizing the Annual Ad Valorem Property Tax Levy for the City of Eugene for the Fiscal Year Beginning July 1, 2001, and Ending June 30, 2002; a Resolution Electing to Receive State Revenue Sharing Funds Pursuant to Section 221.770 of Oregon Revise Statutes; and a Resolution Certifying That the City of Eugene Provides the Municipal Services Required by Oregon Revised Statutes Section 221.760 Mayor Torrey opened the public hearing. Seeing no one wishing to speak, he closed the public hearing and called for councilor comments/questions. Councilor Taylor, seconded by Councilor Kelly, moved to approve Resolution 4679, a resolution to receive State revenue sharing funds pursuant to Section 221.770 of Oregon Revised Statutes. Roll call vote; the motion passed unanimously, 8:0. Councilor Taylor, seconded by Councilor Kelly, moved to approve Resolution 4680, a resolution certifying that the City of Eugene provides the municipal services required by Oregon Revised Statutes Section 221.760. Roll call vote; the motion passed unanimously, 8:0. Councilor Taylor, seconded by Councilor Kelly, moved to approve Resolution 4681, amended for the staff recommendation, adopting the budget, making appropriations, determining, levying, and categorizing the annual Ad Valorem property tax levy for the City of Eugene for the fiscal year beginning July 1, 2001 and ending June 30, 2002. Councilor Taylor, seconded by Councilor Kelly, moved to amend the budget by removing the matching requirement from the Sister City item. Councilor Taylor explained that, during Budget Committee discussions, there had been a motion to require that the Sister City Program raise money get money to match its City appropriation. Councilor Meisner opposed the amendment. He said that the Budget Committee had changed the matching arrangement to a 3:1 match, which meant that the Sister City Foundation only had to raise $5,000 to receive an additional $15,000. He thought that it was a small requirement that addressed issues of program accountability and building community support for the foundation. He said the match was a minimal requirement that was required of other organizations for support. Councilor Farr opposed the amendment. He said that it seemed like an "end run" to change the budget at the last moment without any members of the Budget Committee in the audience. Councilor Kelly noted that the Budget Committee was a recommending body to the City Council. He said that although significant deference should be given to its recommendations, its decisions were not absolute. Councilor Kelly said there was a difference between other social services and the Sister City Program. He said that the Sister City Program was a City function that the City MINUTES--Eugene City Council June 25, 2001 Page 10 Regular Meeting chose to "outsource" after Ballot Measure 47/50. He said that if the council wanted to require fundraising and the foundation was unwilling to do that, then the sister city relationships needed to be terminated. Councilor Rayor requested a work session on whether the Sister City Program should be a City responsibility. Councilor Nathanson said that if the program was a City function, then the City needed to provide more oversight for the program. She noted that the program was run by self-directed volunteers and added that the match was a small requirement. She was against terminating the sister city agreements. Roll call vote; the amendment failed 5:3, councilors Kelly, Taylor, and Rayor voting in favor. Councilor Bettman, seconded by Councilor Kelly, moved to direct the City Manager to restore the previous level of funding ($69,000) to the Human Services Committee as an ongoing allocation beginning in FY02. Councilor Nathanson stressed that the City was trying to encourage its intergovernmental partners to increase their level of participation in funding social services. She remarked that this could not be done by continuing to make up 100 percent of the requests unilaterally. She said that the Budget Committee approved a proposal for a decreasing allocation over several years, which provided some planning certainty to the joint fund and the agencies. She opposed the amendment. She stressed that Eugene had been paying better than 2:1 more per capita than its intergovernmental partners and it was time for the partners to increase their participation. Councilor Meisner also opposed the amendment. He noted that, according to the plan, the level of funding stayed at $69,000 in the first year, was reduced by one-third in the second year, and reduced by two-thirds in the third year. He added that inflation actually increased the contribution each year. He stressed the need to make a statement to the City's intergovernmental partners that they needed to provide more participation. Councilor Bettman stressed that the need was extreme. She noted that the County had increased its allocation in the current year and added that all of the partners would have to increase their allocations. Roll call vote; the amendment failed 5:3, councilors Taylor, Bettman, and Kelly voting in favor. Councilor Kelly, seconded by Councilor Taylor, moved to amend the FY02 budget to increase the amount for implementation of the Hendricks Park Forest Management Plan from $39,000 to $60,000 and decreasing the Reserve for Revenue Shortfall by a like amount. He further moved to direct the City Manager that the amount should be made an ongoing expenditure in FY03 and following years. Councilor Kelly noted that thousands of dollars had been spent on creating the forest management plan, citizens had spent hundreds of hours working on it, and yet the $39,000 did MINUTES--Eugene City Council June 25, 2001 Page 11 Regular Meeting nothing but prevent further degradation of the forest area. He stressed the need for improving the condition of the City's oldest park. Addressing the issue of where the money would come from, Councilor Kelly said that the $31,000 that the Budget Committee had allocated for the Bethel afterschool programs turned out not to be needed and his request would only use two-thirds of that funding and therefore would not reduce the Reserve for Revenue Shortfall by any more than the Budget Committee had expected. In response to a question from Councilor Nathanson, Councilor Kelly confirmed that the total request was for $60,000 of ongoing funding. Councilor Nathanson noted that new open space was being acquired all over the city and preferred that the money be allocated generally to the urban forestry program or to park maintenance. She said that the money would be better spent if it was spread around rather than being allocated to one particular park. Councilor Meisner said he was willing to support ongoing funding to $60,000 per year. He expressed a desire to see a detailed work plan specifying what the money was spent on and a budgeted work plan for the next year. In response to a question from Councilor Pap8 regarding EWEB wholesale CILT payments were coming in, City Manager Johnson said that the payments were still being received. City Manager Johnson noted that Hendricks Park was not that different from many other parks in the City and added that the Ridgeline Trail and Skinner Butte Park had no forest management plans at all. He said that he supported Councilor Kelly's desire but Hendricks Park was actually much further ahead than many other parks throughout the City. Mayor Torrey said that he would like to see the issue come back to the Budget Committee in the next budget cycle and make sure that other areas of the City had an opportunity to provide input. Councilor Kelly reiterated that Hendricks Park had gone through an entire planning process and did not see how such a process could be undertaken if the City were not prepared to implement the plan. Councilor Taylor agreed and said that too much time and money had been spent on the plan to not implement it. Councilor Nathanson opposed the amendment. She said that she was committed to Hendricks Park but raised concern over inequity in the parks system. Councilor Meisner noted that there was a Skinner Butte Park planning process currently going on and said that he would be coming to the council for implementation funding. The amendment passed 5:3, councilors Nathanson, Rayor, and Farr voting in opposition. Councilor Bettman, seconded by Councilor Kelly, moved to direct the City Manager to utilize the Airport Operating Surplus Fund to reduce or eliminate future property taxes levied for airport related GO debt through 2006. MINUTES--Eugene City Council June 25, 2001 Page 12 Regular Meeting Councilor Bettman said she had come to the conclusion that the City could not dictate over time how the funds would be available. She said she favored a broadly worded motion that gave direction to the Airport Manager and the City Manager to look at the schedule of the Airport's capital projects and do some re-scheduling and re-prioritizing. In response to a question from Councilor Farr regarding how much money was in question, City Manager Johnson said there were seven separate reserve funds that were part of the Airport. He said that there should be some kind of policy that described the appropriate amounts that should be in those reserve funds. The funds he cited totaled approximately $5.9 million. City Manager Johnson said that it was very clear from the minutes of the council meeting that placed the issue on the ballot that the Airport was going to try hard not to levy the GO debt. He said that it was during the time of Ballot Measure 47/50 that a subsequent council changed that direction and decided to levy the debt. Councilor Fart said that the motion needed more time than the council could dedicate to it that evening. Councilor Fart, seconded by Councilor Pap~, offered a substitute motion that the City Manager be directed to prepare a financial policy outlining operating and capital reserve strategies for the Eugene Airport and report back to the City Council by February of 2002. Councilor Fart said that the motion would give the council a chance to fully define what Councilor Bettman meant and a chance to act more deliberately as a council rather than on a very shod time for consideration. He stressed his desire for more discussion on the issue. Councilor Kelly said that the original amendment said that surplus dollars in Airport Reserve Funds would be dedicated to work on reducing the GO Bond debt. He said he believe the intent of the amendment was getting at what Councilor Fart's substitute motion was after. City Manager Johnson said that he was not sure Councilor Fart's motion was needed since there would probably be a work session on the item anyway. Councilor Rayor acknowledged that there was confusion over the Airport funds. He expressed a desire to see what the Federal Aviation Administration was going to do and how the City's budget responded to it. He said that both motions moved toward a work session that would help the council to understand airport funding issues. Councilor Bettman said that there had already been substantive discussion on the issue. Councilor Meisner agreed that there had already been substantial and substantive discussion of the principle behind Councilor Bettman's motion. He opposed Councilor Fart's substitute motion. Councilor Pap~ stressed the need for more discussion of the implementation of the Airport Plan. Roll call vote; the substitute amendment failed 5:3, councilors Pap~, Fart, and Nathanson voting in favor. MINUTES--Eugene City Council June 25, 2001 Page 13 Regular Meeting Roll call vote; Councilor Bettman's amendment passed unanimously, 8:0. Roll call vote; the main motion passed unanimously, 8:0. Mayor Torrey adjourned the meeting of the City Council and called to order a meeting of the Urban Renewal Agency. VII.PUBLIC HEARING AND ACTION: A Resolution Adopting a Supplemental Budget; Making Appropriations for the Urban Renewal Agency of the City of Eugene for the Fiscal Year Beginning July 1, 2000, and Ending June 30, 2001 Mayor Torrey opened the public hearing. Seeing no one wishing to speak, he closed the public hearing and called for member comments/questions. Councilor Taylor, seconded by Councilor Kelly, moved to approve Resolution 1015, a resolution adopting a supplemental budget; making appropriations for the Urban Renewal Agency of the City of Eugene for the fiscal year beginning July 1, 2000 and ending June 30, 2001. Roll call vote; the motion passed unanimously, 8:0. VIII.PUBLIC HEARING AND ACTION: A Resolution of the Urban Renewal Agency of the City of Eugene Adopting the Budget and Making Appropriations for the Fiscal Year Beginning July 1, 2001, and Ending June 30, 2002 Mayor Torrey opened the public hearing. Seeing no one wishing to speak, he closed the public hearing and called for member comments/questions. In response to a question from Councilor Meisner regarding whether the budget included administrative time for managing a building which was no longer an asset of the Urban Renewal Agency, City Manager Johnson said that he would come back to Councilor Meisner with an answer. Councilor Taylor, seconded by Councilor Kelly, moved to approve Resolution 1016, a resolution of the Urban Renewal Agency of the City of Eugene adopting the budget and making appropriations for the fiscal year beginning July 1, 2001 and ending June 30, 2002. Councilor Rayor expressed his opposition to another library levy. Roll call vote; the motion passed 7:1, Councilor Rayor voting in opposition. Mayor Torrey adjourned the meeting of the Urban Renewal Agency and called the meeting of the City Council back to order. IX.ACTION: Hyundai Enterprise Zone Tax Exemption Extension Request MINUTES--Eugene City Council June 25, 2001 Page 14 Regular Meeting Denny Braud of the Planning and Development Department provided the staff presentation. He said that the original proposal from the company was that the City would recapture no more than one-third of the benefit to the company. He said in the company's latest proposal, in FY02 the City would recapture 100 percent of the taxes that would otherwise have been paid without the tax exemption, and for the rest of the extension years and any future two-year extensions the City would recapture one-third of the tax exemption. He said the basic difference was that the estimated City tax revenue without the extension was $8.6 million and $2.9 million with the exemption. Councilor Taylor, seconded by Councilor Kelly, moved to deny the request of Hyundai for a two-year extension on the enterprise zone exemption. In response to a question from Councilor Kelly regarding the amount of City revenue given up in the second year of the proposal, Mr. Braud said the amount was $2.1 million. In response to a question from Councilor Pap~ regarding how the proposal would affect the financial forecast of the City in the coming years, City Manager Johnson said the proposal would make it very difficult to achieve the financial forecasts that City staff had made. He said staff did a six-year financial forecast that assumed that Hyundai would pay the full amount that it owed. In response to a question from Councilor Pap~ regarding whether Hyundai had qualified on all points of the tax exemption, City Manager Johnson said that Hyundai had complied fully with the law for the first three years and, in fact, had exceeded the requirements in many cases. He stressed that the agreement read that the City and the County may grant exemptions for years 4 and 5 but it did not say they had to. In response to a question from Councilor Bettman regarding when a new pre-certification needed to be done, Mr. Braud said that a new pre-certification needed to be done sometime in the next two years, prior to the expiration of existing tax exemptions. In response to a question from Councilor Rayor regarding the future projected tax rate dropping drastically, Mr. Braud said that a large factor of that drop was depreciation of equipment. Councilor Rayor commented that because of depreciation, the City would not see the kind of tax revenue in the future that it would be foregoing if Hyundai's extension was approved. In response to a question from Councilor Farr regarding the legality of the request, City Manager Johnson said that Hyundai had met all of the legal requirements to make the request in a timely manner. In response to a question from Councilor Farr regarding how the financial forecast would look if Hyundai had decided to relocate, City Manager Johnson said that the financial picture would look very bad. Councilor Fart said that the community had made a substantial investment in Hyundai and in return Hyundai had made a substantial investment in the community. He stressed that the investment could not be looked at in the shod term. He said that Hyundai had exceeded all of the requirements that had been placed on them and added that the company had contributed far in excess of taxes to the community in terms of jobs and contracts provided to the community. He expressed a desire to make sure that Hyundai was in the community for many years to come. MINUTES--Eugene City Council June 25, 2001 Page 15 Regular Meeting Councilor Farr moved to amend the motion by accepting Hyundai's proposal. The amendment to the motion died for lack of a second. Councilor Nathanson acknowledged that Hyundai had provided a lot of jobs in the community and was doing what the enterprise zone was intended for, but noted that the bottom line was the impact to the City's budget and the decision had to be made accordingly. Councilor Kelly agreed that the vote was about the City budget and not a reflection on Hyundai. He stressed that the City budget could not take the hit that the extension would create. He also noted that there was an issue of equity with other companies that did not receive tax exemptions. City Manager Johnson cited a letter from former Mayor Ruth Bascom regarding the tax exemption and stressed that no commitment was made to extend the tax exemption. Councilor Meisner agreed with Councilor Kelly. He said that Hyundai was a good corporate citizen but that was no reason to forgive taxes due the City. He stated his support for the motion. Councilor Nathanson reiterated that the vote was about the City budget and not a judgement on Hyundai as a company. She stressed that the City could not afford the proposed extension. Councilor Fart raised concern over the future beyond the years being discussed. He stressed the importance of keeping Hyundai in the community. He was opposed to the motion. Mayor Torrey expressed his support for Hyundai. He stressed that the company had been a stellar corporate citizen but said that the extension was not in the best interest of the City. He said that he would have voted for the motion and reiterated that the vote was about the City budget and not a reflection on Hyundai. Roll call vote; the motion passed 7:1, Councilor Fart voting in opposition. The meeting adjourned at 11:30 p.m. Respectfully submitted, James R. Johnson City Manager (Recorded by Joe Sams) MINUTES--Eugene City Council June 25, 2001 Page 16 Regular Meeting