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HomeMy WebLinkAboutCC Minutes - 03/08/99 WS MINUTES Eugene City Council McNutt Room--City Hall March 8, 1999 5:30 p.m. COUNCILORS PRESENT: Scott Meisner, Pat Farr, Bobby Lee, Nancy Nathanson, Gary Pap~, Gary Rayor, Betty Taylor. COUNCILORS ABSENT: David Kelly. I. CALL TO ORDER The March 8, 1999, Eugene City Council meeting was called to order at 5:30 p.m.; His Honor Mayor James D. Torrey presiding. II. WORK SESSION: REGARDING THE CHARGE AND SCOPE OF WORK FOR THE COUNCIL AD HOC COMMITTEE ON STREET IMPROVEMENT FUNDING Les Lyle, Public Works Engineering, provided the report and indicated that Mr. Pap~ and Mr. Kelly were the council's representatives on the ad hoc council committee. He reviewed the Item Summary attached to the agenda and said the committee's multi-phase approach for evaluating funding options for street improvements was supported by councilors Pap~ and Kelly. Mr. Lyle suggested that other associated needs such as those identified in the TransPlan also be considered by the committee as it discusses funding sources. He called the council's attention to Attachment A, a matrix depicting the current condition of the City's inventory of unimproved streets. He asked the council to give approval and direction on the committee's charge and scope in preparation for final approval on March 17. Mr. Pap~ noted that both he and Mr. Kelly had reviewed the draft report, suggested changes, and supported the current report before the council. Ms. Taylor asked for a report on how Salem finances its streets and to have the committee report to the council on a regular basis to avoid wasting its time on something inconsistent with the council's wishes. Mr. Meisner echoed Ms. Taylor's suggestion, adding he preferred summary reports rather than committee meeting minutes. He asked staff to enure that any proposals forwarded were consistent with adopted council policies. He wondered if the alley assessment policy would be reviewed by the ad hoc committee rather than interjurisdictionally. Mr. Lyle said it would go to the ad hoc committee. Addressing a question from Mr. Rayor, Mr. Lyle said Lane County's policy discussions have focused on the larger lots that have yet to be annexed to the City and the share of assessment Minutes-Eugene City Council March 8, 1999 Page 1 5:30 p.m. they would bear through the local improvement district (LID) that the City would form--an approach inconsistent with what commissioners believe the policy should be. The County Board of Commissioners, he indicated, wished to find a consistent approach within the entire metro area. Ms. Nathanson said the summary indicated what the committee should be doing, but not why. She offered the following purposes, provided the council agreed: equity and fairness, revenue, and growth management and other land use and transportation policies. Ms. Nathanson commented on "piecemeal" development of streets and sidewalks as a problem, an issue that may be more related to permitting. She wondered if the City's assessment policy had anything to do with this consequence; if so, how it could be avoided. In response to a question from Mr. Farr, Mr. Lyle said the committee wished to first look at the broader range of options, research them, and report to the council for direction before inviting the other elected officials to join the discussion. Mr. Farr expressed concern that other jurisdictions might not be involved early enough in the discussions. Mr. Lyle said the initial exploratory phase would likely take only two or three meetings, after which the larger body would be invited to participate. Mayor Torrey expressed his concern that this process was a change from the past and wondered how many of the 14 percent unimproved areas were contiguous with Lane County and if an election for a bond measure might be able to be funded in part by those citizens. Mr. Lyle said he would be prepared to provide the information for the March 17 meeting. Addressing a question from Mr. Meisner, Mr. Lyle stated he discussed the committee composition with input from City of Springfield staff. Mr. Meisner noted the irony of the City's focus on working interjurisdictionally to pay for transportation improvements "when less than a month ago we agreed to opt out of joint planning." Mr. Lee wondered if the staff had addressed the issue of non-residents (those that work in Eugene but live elsewhere) sharing the cost of City roads. Mr. Lyle said that likely would be addressed through TransPlan. Mayor Torrey asked the committee to consider a "no-build" option should funding sources fail to gain support. Mr. Lyle said his report for the council's March 17 meeting will incorporate today's discussion. III. WORK SESSION: NEW LIBRARY CAMPAIGN GIFT COMMITTEE City Manager Jim Johnson introduced Library Foundation President Barbara Dellenback who made the presentation and asked the council to approve the committee's process suggestion for accepting funding gifts and recognizing donors as outline in the meeting material. In response to a question from Mr. Rayor, Mr. Johnson said that once the council adopts the policy it has delegated its ability to make final program decisions to the committee. The council can provide input through its appointed liaison. Mr. Rayor said he was concerned about doing any fundraising for the project. Minutes--Eugene City Council March 8, 1999 Page 2 5:30 p.m. Mr. Pap~ expressed concern with the proposed committee composition, specifically the number of staff compared to foundation members, i.e., the public. Mr. Lee shared Mr. Papa's concern. Mr. Meisner addressed concerns raised by councilors Pap~ and Lee, saying the public would be significantly involved with the foundation, the library and department staff, and he was comfortable with the committee's composition. He added that it was common for public institutions to do private fund raising to support its programs and there was no competition for library funding in the community. Mr. Fart agreed with Mr. Meisner and said it is clear that the council is not creating a precedent. Mr. Johnson referred the council to page 25, outlining an opportunity for ~ublic comment on the criteria, with a final decision by the committee. Ms. Nathanson said she believed this was the type of project that would ~nspire donations without taking away from other causes or organizations. She noted a recent article in the Washington Post that reported a significant increase in philanthropy in the past year. In response to a question from Ms. Taylor, Mr. Johnson said he would appoint at least one librarian to the committee. Addressing follow-up questions from Ms. Taylor, Mr. Johnson said the entire library would not be named for someone and at least one opportunity for small donations would be made available. Mr. Meisner said the foundation was currently conducting a large gift campaign. As part of the overall funding campaign there would be opportunity for community support in the broadest sense, not necessarily monetary. Mr. Johnson said the direction regarding the committee composition was to increase public participation, something that could be done by substituting foundation board members for staff members. Mr. Meisner moved, seconded by Ms. Nathanson, to approve formation of the Library Campaign Gift Committee, as outlined in the agenda summary, and a process for accepting and recognizing gifts as described in Attachment I. Mr. Rayor moved to amend the motion by replacing two staff members on the committee with citizens from the voters pool. The motion died for lack of a second. Mr. Pap~ moved, seconded by Fart, to amend the motion by having two staff and four foundation members on the committee. Mr. Farr spoke in favor of the motion. Ms. Nathanson expressed support for the motion and noted that the seventh member was an architect who also was a member of the public. Minutes-Eugene City Council March 8, 1999 Page 3 5:30 p.m. Mr. Lee said he would support the motion, calling it a good compromise. Addressing a question from Mr. Farr, Mr. Johnson said the committee would conduct its business with staff present to answer questions and add to the discussion. Mr. Meisner said he would also support the motion, reminding the council that the fund raising campaign would be conducted entirely by members of the public. In response to a question from Ms. Taylor, Ms. Dellenback said she supported the amendment to the motion. The motion to amend passed unanimously, 7:0. Mr. Rayor clarified that while he remained uncomfortable with fund raising, he believed that the citizens would appreciate the opportunity to contribute. The main motion passed unanimously, 7:0. IV. WORK SESSION: NEW LIBRARY EXPANSION/LEASE SPACE Mr. Johnson introduced the topic and referred to information at the councilors' places. He reminded the council that at its January 20 meeting staff had suggested using lease dollars from the Administrative Service Department, Information Service Division, and the Library, Recreation and Cultural Services Department to generate the cash flow for bonds. He said that a staff analysis reviewed is contained in the table in question. Mr. Johnson reviewed the table and said staff's recommendation is to use the proceeds from the sale of the Sears building and the old library to help cover the cost of the expansion. He said that by allocating the assets for this particular purpose, the council will forego any other uses for the building and also foregoing a revenue stream that could be used for a future City Hall or for City office space. Addressing a question from Ms. Taylor, Mr. Johnson said the bond would be for 20 years. She expressed concern about selling the old Sears building, calling it a valuable property downtown that the City could use for many things. Ms. Nathanson said she agreed with the staff recommendation except with selling the Sears building, specifically because of its location. She urged a broader discussion including the building's potential future uses and asked for more options. Mr. Meisner reminded the council that the Sears building was owned by the Urban Renewal Agency, and was part of the assets that the agency can only use for the specific purposes identified in the Downtown Urban Renewal District Plan. At Mr. Lee's request, City Attorney Glenn Klein explained that a year ago the council adopted an ordinance identifying the library as the "one new project," although the agency's assets would be used for other downtown projects it adopted earlier. He added that the council could revise that ordinance, subject to limitations on "maximum indebtedness." Such a revision, he explained, would involve a long process that could lead to referendum. If there were another resource, the City could buy the building from the Urban Renewal Agency and use it however it saw fit. Minutes-Eugene City Council March 8, 1999 Page 4 5:30 p.m. Mr. Farr said he believed that expansion space should be built into the new library and it should be done now. He pointed out that the new library will increase library use "even without growth in the City of Eugene." He expressed support for the staff recommendation, saying he cannot see a "cleaner method" of funding the expansion at this time. Addressing a question from Mr. Lee, Mr. Johnson said the proposed motion included a third part- -about $750,000 annually set aside to handle additional growth in service demands--a portion of which would be used if necessary. In response to a follow-up question from Mr. Lee, Mr. Klein confirmed that the Sears building could be leased to another entity with proceeds going to the library. He said he would have to review the Downtown Urban Renewal Plan to give a more definitive answer. He added that if the building were involved in a long-term lease, the proceeds may be limited to authorized downtown urban renewal projects. At minimum, any lease payments would become assets of the Urban Renewal Agency. Mr. Johnson said that in order to lease the building at fair market value, it would require a costly renovation. Mr. Pap8 ascertained that the building and the half block across the street were purchased for library use and cost the City approximately $900,000. Mayor Torrey said it was important to understand that the value of the property now is the value of the open land where the new library will be built, plus the Sears building and the parking lot east of it. Addressing a question from Mr. PapS, Lew Bowers, Planning and Development Department, said the current value of the property purchased by the Urban Renewal Agency, if sold, would realize about $1.4 to $1.7 million. In response to a follow-up question, Mr. Bowers said taxes are based on use of the building and it was currently generating tax revenue. Mr. Pap8 said he was not in favor of the City or public entities speculating on real estate by retaining the building. He added that he was also opposed to the third part of the motion. Mr. Rayor agreed with Mr. PapS's position, saying that retaining the building would make the proposal "fiscally unbalanced." Mr. Johnson pointed out that the figures were estimates and the City may not be able to afford to build the new library (with or without the expansion space) without the sale of assets. Mayor Torrey said he was concerned about other facility needs of the City, e.g., a new City Hall, and about revenue associated with those needs. He said he was prepared to support the staff recommendation under the following conditions: 1) ask the committee for an update on funding efforts in 90 days, and build the library anyway; and 2) be prepared to sell the assets, but ensure that the uses are consistent with the City's goals. Mayor Torrey said he was convinced that a trade for assets of equal value could be brokered. Ms. Nathanson noted the creative ideas that have surfaced during this discussion and said she felt as though she were being pushed into a decision without having reviewed the broad range of options for the Sears building. She acknowledged that with a good analysis, she may decide the best thing to do is turn it over to a private entity for redevelopment, along with other City property Minutes--Eugene City Council March 8, 1999 Page 5 5:30 p.m. to the north. She agreed with Mr. Pap8 that government should not be in the business of land speculation but this was different because the City already owned that property. Ms. Taylor agreed with Mayor Torrey's comments, saying it is very important how that building is used given its crucial downtown location. She said she was not prepared to decide on what to do with the building without more information and a public process. Mr. Lee agreed with Ms. Nathanson, adding he wished to support the staff recommendation but could not do so without more information. He wondered if the decision was time-sensitive. Mayor Torrey said both the architect and committee needed council direction before moving forward. He suggested moving forward with the proposal, reserving the right to revisit the issue of selling the Sears building at a later date. Mr. Johnson said the RFP (Request for Proposals) process could address the issues raised by the council during this meeting. He added that timing was critical and design could not proceed until a decision was made regarding the fourth floor expansion space. Addressing a question from Mr. Rayor, Mayor Torrey said he suggested a 90-day update from the committee, because at that time the City would enter into an agreement with an architect for design of the building of a specific size. The issue was the additional square footage. Mr. Rayor said he supported building the library, but only if the sale of properties was done because that was fiscally prudent. He agreed with placing conditions on use of the buildings so long as the property goes into private hands and generates tax revenue. Mr. Meisner spoke in support of the staff recommendation, saying it allowed the City to recover lease payments and build equity. He addressed Ms. Nathanson's concern by adding he also supported a comprehensive downtown planning process. Mr. Meisner moved, seconded by Ms. Nathanson, to expand the space by approximately 30,000 square feet to the new library, financed by: 1) bonds backed by lease payments from City office use; 2) proceeds from the sale of the former Sears building and old library, and 3) if necessary, a portion of the expected General Fund growth factor in future years. Ms. Nathanson expressed reluctant support for the motion. Mr. Pap8 moved, seconded by Ms. Taylor, to amend the motion by deleting the third item. The motion to amend passed, 6:1; with Mr. Meisner opposed. Mr. Rayor said he was sensitive to Ms. Nathanson's concerns but was convinced that the analysis would address those issues. Addressing a question from Ms. Nathanson, Mr. Johnson said the fair market value of the buildings to be sold would be determined by conditions at that point. The main motion passed, 6:1; with Ms. Taylor opposed. The meeting adjourned at 7:25 p.m. Minutes--Eugene City Council March 8, 1999 Page 6 5:30 p.m. Respectfully submitted, James R. Johnson City Manager (Recorded by Yolanda Paule) Minutes--Eugene City Council March 8, 1999 Page 7 5:30 p.m.