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HomeMy WebLinkAboutCC Minutes - 09/28/98 Work Session MINUTES Eugene City Council McNutt Room--City Hall September 28, 1998 5:30 p.m. COUNCILORS PRESENT: Pat Farr, Tim Laue, Bobby Lee, Scott Meisner, Nancy Nathanson, Laurie Swanson Gribskov, Betty Taylor, Ken Tollenaar. I. CALL TO ORDER The adjourned September 23, 1998, Eugene City Council meeting was called to order at 5:30 p.m.; His Honor Mayor James D. Torrey presiding. Mayor Torrey introduced Mike Sheppard, a former Eugene resident who is now a City Councilor for the City of Bremerton, Washington. Mr. Sheppard thanked staff and the council for their hospitality, adding that the purpose of his trip was to learn from Eugene's downtown urban development/redevelopment and he has learned much. II. CONTINGENCY REQUESTS Ms. Nathanson asked the council to hold off approving any requests until the council has had a chance to discuss, in general, the use of the Contingency Fund, adding she did not wish to keep the council from receiving information from those requesting funds this evening. She recalled that the fund historically was used for small allocations or for one-time key events. Lately, she continued, the fund has been used by the City organization itself when there was an emergency or some extraordinary expense. The other purpose the fund has been used for, she noted, has been for social and cultural services and events. Ms. Nathanson said she has suggested using the fund in a more planned way, adding that the ad hoc handling of the requests prevents the council from weighing those needs against others. Ms. Taylor agreed, saying she has been concerned about this for some time. Mr. Tollenaar said the term "contingency fund" strongly implies that the money is to go for contingencies related to City government needs that were unanticipated. He said the council must first answer the question "Do we use it for City government or do we use it as a general resource for social/recreational activities from the community at large?" Mr. Tollenaar said another policy issue is whether the council should be processing non-City government requests for needs outside the City of Eugene. He said he was in favor of processing the requests on the agenda this evening and suggested a moratorium on further requests until the issue can be discussed and policy developed. Mayor Torrey noted that the item has been scheduled for council discussion on October 21. Minutes--Eugene City Council September 28,1998 Page 1 5:30 p.m. Mr. Meisner agreed with Ms. Nathanson than no more requests should be approved until after the council discussion, adding that it is evident that there is no clarity on the part of the members of the council about the purpose of the Contingency Fund. He said the application for funds should request more information, specifically the contributions being made or sought from other jurisdictions. He noted that one of the requests questions the City policy of charging for police services at social/cultural events--something he says amounts to a "reconsider-the-City-policy request." Mr. Meisner preferred to postpone approval of the requests until after the council discussion. Mr. Lee said the council should consider the requests on the agenda, adding that many of these events are organized by lay people who do not understand the City government's process-- neither, apparently, does the council. He pointed out the error of placing these requests on the agenda prior to the policy discussion, but said the organizations/applicants should not be penalized for that. Ms. Swanson Gribskov said it would be unfair to postpone the requests, adding it would be tantamount to "changing the rules mid-stream." She was prepared to go along with the council majority but wondered if any of the requests were time-sensitive. Mr. Laue recalled that most of the fund has been used for council initiatives. He cautioned the council not to limit its use, noting that this was the only discretionary money available to the council. Mr. Johnson indicated that to his knowledge none of the requests are time-sensitive. Mr. Tollenaar said the requests had been made under the current process and the requests should move forward under that process. Several councilors agreed. A. Food for Lane County Mr. Farr moved, seconded by Mr. Tollenaar, to approve the use of $35,972 in contingency funds to offset the Systems Development Charges (SDCs) for the 30,000 square-foot Food for Lane County warehouse at the Bailey Hill Road site. Saying she was concerned about setting a precedent, Ms. Swanson Gribskov asked if the fund had been used to cover SDCs in similar circumstances before. She wondered what it meant if the council did not approve the request. Mr. Johnson said that the fund has been used to cover Iow-income housing permit fees and that is the only method to "waive" those fees. Ms. Nathanson asked for an update on her previous request about support for the agency from other jurisdictions since it serves the entire county. She said she understood that Lane County and City staff were discussing these costs. She also asked for an update on her request for a breakdown of SDCs to separate out those related to transportation. Mr. Johnson said he has learned from County Administrator Bill Van Vactor that the County Commissioners will consider a similar request in the near future. He added that the Board of Commissioners was also considering a request for the use of Road Fund money for road-related Minutes--Eugene City Council September 28,1998 Page 2 5:30 p.m. items that are not SDCs. Indications are that Food for Lane County's request will be approved but the amount was unknown. In response to a question from Ms. Swanson Gribskov, Food for Lane County Board Chair Don Mack explained that every dollar invested on "brick and mortar" was one that could not be spent on food to fill the facility so every dollar that was saved could be devoted to making the facility one that will be the most efficient it can be to alleviate hunger in the community. Food for Lane County Director Caroline Frengle said it was clear the building will be built but without the City's support but it just made it more difficult. Ms. Swanson Gribskov suggested funding the request at 50 percent. Mr. Meisner moved, seconded by Ms. Swanson Gribskov, to amend the motion by reducing the amount granted from the contingency fund to "up to $18,000; i.e., the portion not to be paid by Lane County." Mr. Meisner addressed comments made by Ms. Frengle and Mr. Mack, saying what has been said is undeniable but it is also the case for everything in the fund. He said he hoped the council would regularly and consistently address the point with respect to other jurisdictions' responsibilities and support. He asked for a report that reflected, in addition to tracking the City's Contingency Fund, how the City supports these agencies through the Intergovernmental Human Services Committee (IHSC). Ms. Taylor moved, seconded by Mr. Tollenaar, to table all requests until after the council's October 21 discussion. The motion failed, 5:3; with councilors Meisner, Tollenaar and Taylor voting in favor. Mr. Tollenaar said the City, according to the staff summary, has drawn a narrow focus on the use of the fund for SDCs (for publicly assisted housing). He said it was possible to make the logical conclusion that any request for use for SDCs should be approved only for housing projects. Mr. Farr said this raised the council's need to address a policy around "waiving" SDC fees as opposed to paying them out of general fund dollars. He ascertained that Lane County Road funds were targeted for road assessment fees for the project unless the County voted to pay the SDCs associated with transportation. Given that, Mr. Farr said, he would vote against the motion as he favored full support of the project. Ms. Swanson Gribskov said she would support the motion because she believed the City has encouraged the agency's growth in this direction. Ms. Nathanson explained her vote against tabling, saying she would have supported it if it had been made earlier in the discussion. She agreed with Mr. Lee's comment about being mindful of these community agencies and said she supported the motion and hoped, with the support of other jurisdictions, that the project would be funded in whole by the end of the year. The motion to amend passed, 5:3; with councilors Farr, Laue, and Lee opposed. Mr. Farr indicated that he would support the amended motion, adding he hoped the other jurisdictions also supported the project. Minutes--Eugene City Council September 28,1998 Page 3 5:30 p.m. Ms. Taylor reiterated her interest in holding the policy discussion first but added she would likely support the amended motion. Mr. Meisner said the council's history of approving requests in the full amount has provided no impetus for other jurisdictions to support such projects. The amended motion passed, 7:1; with Mr. Tollenaar opposed. B. Adelante Si Mr. Farr moved, seconded by Mr. Tollenaar, to authorize the expenditure of $3,770 from the contingency fund for police services for the 1998 Fiesta Latina. Mr. Meisner said he could not support the request because the request did not meet current standards, adding that the application does not reflect a loss from holding the event. He pointed out minutes attached to the application that described continuing discussions between the organization staff and its Board of Directors objecting to the City's policy of requiring events to pay for police protection services. He said it was clear the organization wanted a policy change and the application did not support the funding request. Ms. Swanson Gribskov pointed out inconsistencies between the original, oral request and the final application. She said the budget shortfall was not apparent from the application and if any shortfall occurred as a result of the Immigration and Naturalization Services (INS) raids prior to the event, she might feel differently. Mayor Torrey said that when the agency first raised the request, it indicated that the Police Department had required more police protection than "was necessary" and at the same time the INS raid greatly reduced attendance, which was compounded by poor weather and cancellation of a "headliner" band. Ms. Swanson Gribskov said that given that explanation, she was inclined to support the motion. Ms. Taylor said she opposed the request and believed the policy discussion should have occurred prior to entertaining this request. Ms. Nathanson expressed concern that the discussion and action taken tonight might be construed as taking a position on whether the City should charge for police services at such events. She said she did not support the request, but supported this very worthy organization and the event. She recalled that the fund was not supposed to support ongoing events, adding that annual events should be able to anticipate shortfalls and plan accordingly. Mr. Meisner agreed, saying it is inappropriate to use contingency funds to pay debt. He noted that the application's budget analysis did not show a deficit; however, it did show an unwillingness or lack of interest in paying for police services. Mr. Meisner added that the agency asked him to carry a contingency request to the council to cover police services for the event-- this was before the INS raid, before bad weather, and before the headliner band backed out--and the application he sent out was never returned. He expressed concern with the City becoming a "guarantor" of events. Minutes--Eugene City Council September 28,1998 Page 4 5:30 p.m. City Attorney Glenn Klein explained that when the council decides to expend public funds, it can only do so if there is a public purpose, which is much like defining "essential benefit." He said the City will not be second-guessed but it must articulate what the public purpose is. When the City hands over money to an agency, the City must get something in return. Mr. Klein said the request before the council can be looked at in two ways. First, the City will pay for the loss of revenue that "did not happen." If the council is going to do that, he said, someone needs to articulate what is the public purpose, given that the event has already happened. The other way to look at it is to say: "there was a debt, we think this is a worthwhile organization, we want to make sure the organization remains in existence and the payment of the debt will help the organization to remain in existence to provide benefits to the community that we think are important benefits." Mr. Laue said "contingency" was whatever the council wished it to be, and in this case "it was a reaching out to a continuing event that has an ethnic component to it that we think is important to foster in this community.., and we would like to see it continue and we believe this may help them to continue." The motion passed, 5:3; with councilors Meisner, Taylor, and Tollenaar opposed. C. Willamette Livability Forum Mr. Fart moved, seconded by Mr. Tollenaar, to authorize the expenditure of $500 from the contingency fund for survey expenses. Mr. Tollenaar noted that other communities and agencies including the Eugene Water & Electric Board and the City of Corvallis ($3,000) were supporting the survey. The motion passed unanimously, 8:0. Ms. Swanson Gribskov asked staff to include information for the October 21 work session on how other jurisdictions use their contingency funds. III. WORK SESSION: FACILITY CONDITION REPORT Vic Martin, Public Works, reviewed the report, highlighting the items staff believed were critical and saying that the goal was to reduce or eliminate the backlog of deferred maintenance and refine an investment strategy for the future. Mr. Martin said the report and work session were meant to create a model for making decisions and determine alternatives methods of managing the City's assets. The computer-based report, he noted, provides for reviewing and testing the information for specific projects. He emphasized that the report covered general fund facilities only, excluding parking garages, the airport, the waste treatment plant, and other facilities. He noted that the report does not address Americans with Disabilities Act (ADA) issues, which will be reported on separately. Mr. Martin indicated that the report is also the basis for the annual Capital Improvement Program (CIP). He said the average expenditure for maintenance has been slightly under one percent of the asset--the recommended amount is three to four percent and some organizations allow up to eight percent. Minutes--Eugene City Council September 28,1998 Page 5 5:30 p.m. Mr. Johnson distributed a handout reflecting how the money has been spent on facilities over the last three years. Addressing a question about City Hall from Mayor Torrey, Mr. Martin said analysis of leasing versus owning/building City offices was last done five years ago and it was probably time to repeat it. Mr. Johnson noted he has met with the Lane Council of Governments (LCOG) and Lane County around the topic of an office building and a report was expected in about two weeks. In response to a question from Mr. Farr, Mr. Martin said another way to reduce the deferred maintenance backlog without raising the budget would be to review the City's holding and sell those assets that were dragging the asset base down. Ms. Nathanson called attention to properties such as fire stations that were being replaced and said she assumed that the old facilities remained on the report and wondered if those made a big difference in the report. Mr. Martin said the square footage was small enough not to make a great impact. Ms. Nathanson commended staff for the report and if the City had percentage information based on the square footage under City operation. She said she hoped for similar comparative information data over time for activity in the Permit and Information Center. Mr. Tollenaar said the Council Committee on Finance had decided not to address the annual preservation and maintenance budget (the $1.9 million) but the committee did not consider the $21.6 million backlog and the council may wish to address that as a separate item in the multi- year financial plan. Mr. Laue said it is evident that the City was unable to keep up with preservation and maintenance and a new revenue stream must be found to address this problem. IV. WORK SESSION: REPORT ON YEAR 2000 PROBLEM Jeff Kurtz, Information Services Division, referred the council to the report in the packet and said the City was in a good position and now there was a need to focus on implementation of the plan developed to address the problem. Mr. Johnson noted that the clear comment in the staff notes was that 98 percent of the inventory has been evaluated so the City has a good handle of the extent of the problem. Entities outside the City organization who provide services to it, however, may create a problem. Mr. Tollenaar said the report includes information on interfacing with other systems and asked if the City had done as systematic an analysis on those systems to ensure compliance. Mr. Kurtz said systems outside the City were not part of the analysis, but the next step was to begin working closely with the City's suppliers. Addressing a question from Ms. Swanson Gribskov, Mr. Kurtz said staff identified 565 objects requiring evaluation. In response to a question from Mayor Torrey, City Attorney Klein said that the general rule is that if someone wants to sue a city for negligence, they have six months from the time of the negligence to give notice to the city that they intend to file a suit. Minutes--Eugene City Council September 28,1998 Page 6 5:30 p.m. Mayor Torrey wondered if what the City is now doing sufficient to avoid negligence claims. Mr. Klein said what the City is doing is exactly the type of action that both the leagues and the City Attorneys Office are recommending to try to foresee any problems that might arise and deal with them. Ultimately, he added, the question was whether the City acted responsively and reasonably. Mr. Lee emphasized the complexity of the problem, noting it impacts every facet of everyday life. He said opinions vary on the severity of the problem, from "bump on the information highway" to "a blind turn on the highway and we have no steering wheel." He asked the council to view a video cassette on a June 2, 1998, speech by Senator Bennett who is the chair of the Senate Special Committee on the Year 2000 Problem. Senator Bennett's presentation included a review of actions already taken to address the problem and suggestions for others. He noted that the greatest challenge was to get people "thinking beyond the narrow lives of their own organizations because it is entirely possible that every organization in American could get its own computers fixed, its own imbedded chips discovered and replaced, and still have major problems." Mr. Bennett said the committee has identified seven generic areas, in priority order, to perform two services: 1) make people aware of the scope of the problem, create a place of accurate assessment, and disseminate information; and 2) recommend legislative fixes where appropriate. The following are the seven generic areas identified by Senator Bennett: utilities, telecommunications, transportation, financial system, general government services (includes health care), general business activities, and litigation (placed last because not as time-sensitive). Discussion of the video tape's content was postponed due to time constraints. Mayor Torrey asked Mr. Lee to reach out to intergovernmental partners and pertinent organizations and develop recommendations for the council. Mr. Lee said he needed more direction from the council on the scope of the outreach effort. Given the time constraints, Mayor Torrey asked to have the item placed on the council's October 14 agenda. The meeting adjourned at 7:30 p.m. Respectfully submitted, James R. Johnson City Manager (Recorded by Yolanda Paule) Minutes--Eugene City Council September 28,1998 Page 7 5:30 p.m.