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HomeMy WebLinkAbout06/09/2014 Work SessionCity of Springfield Work Session Meeting MINUTES OF THE WORK SESSION MEETING OF THE SPRINGFIELD CITY COUNCIL HELD MONDAY JUNE 9, 2014 The City of Springfield Council met in a work session in the Jesse Maine Meeting Room, 225 Fifth Street, Springfield, Oregon, on Monday June 9, 2014 at 5:30 p.m., with Mayor Lundberg presiding. ATTENDANCE Present were Mayor Lundberg and Councilors VanGordon, Moore, Ralston, Woodrow and Brew. Also present were City Manager Gino Grimaldi, Assistant City Manager Jeff Towery, City Attorney Mary Bridget Smith, City Recorder Amy Sowa and members of the staff. Councilor Wylie was absent (excused). 1. Charter Amendment to Allow for Councilor Compensation. Communications Manager Neil Laudati presented the staff report on this item. Greg James, Chair of the Committee for Citizen Involvement (CCI), joined Mr. Laudati for the presentation. In 2013, a small sub- committee made up of members of the City Council, the City Attorney's Office and the City Manager's Office met on several occasions to review the need for an update of the City Charter to allow for a reasonable monthly compensation. After discussion and reviewing council compensation from across the state, the sub - committee recommended a $300 per month stipend for each councilor and a $500 per month stipend for the Mayor. The issue was then forwarded by the City Council to the Springfield Committee for Citizen Involvement (CCI) for review and direction. A survey was released on April 3, to all city boards and commissions via email and to the community at -large via the city's social media sites, websites and email lists. Local media outlets also covered the survey and provided information on how to participate. Over the course of two weeks, 282 people took the survey, with 76- percent of those surveyed in favor of supporting a charter amendment. The unedited responses, along with all public comments, can be found on Attachment 1. A public hearing took place on May 20. No one spoke on the issue. The CCI recommends that the council move forward in placing a charter amendment regarding council compensation on the ballot in Novembers, 2014 with the following additional consideration: That the base compensation be at $300 a month for councilors with an allowance for cost of living for future years. And, the Mayor start at $500 per month with the same cost of living application. Decision points: 1. Move forward with a ballot measure using the recommendation from the CCI and discussion from the council 2. Hold a public hearing prior to moving forward with a ballot measure 3. Keep the charter as is with no changes and no ballot measure City of Springfield Council Work Session Minutes June 9, 2014 Page 2 Next steps if council decides to move forward (prior to July 21): 1. Finalize compensation options 2. Prepare ballot title Mr. James said the CCI knew they needed to vet this issue and get input to provide the councilors with the information they needed to move forward. He reviewed the survey and the results of the survey, including the comments received. He noted that nine of the comments stated that the amount wasn't enough. Six of the comments indicated that it was important that the compensation is indexed so the Council could not change it on their own. He had done some outreach to the Springfield Chamber of Commerce to invite people to speak during the public hearing to provide input to the CCI. Although they had not taken any formal action, the Executive Director of the Chamber said the Chamber was generally in support of the Council stipend. The CCI unanimously passed a recommendation to place Council compensation on the November ballot at $300 for councilors and $500 for the Mayor. Councilor Ralston asked how any of this affected the reimbursements for the cell phone and internet. Mr. Laudati said they would still receive reimbursement for those items. Mr. James said the survey was set up to address the stipend only. Councilor Woodrow said the possibility of a COLA increase was noted in the agenda information. She would prefer to increase the base compensation to $400 (councilors) and $600 (Mayor) rather than a COLA increase, with a two year review by the Budget Committee or CCI. She agreed it should not be in the Council's hands to increase the amount. There are many ways to determine a COLA so it might be difficult to choose. Councilor VanGordon asked about the impact for those currently on Public Employees Retirement System (PERS). Mr. Grimaldi said there should be no impact since this will be a stipend rather than paid from payroll. Councilor VanGordon asked if it would be possible to exclude PERS or healthcare in the Charter amendment. Ms. Smith said they will likely be changing the language in the Charter, not just removing the current language. The new language could include something about the stipend being reviewed bi- annually by the Budget Committee. It will probably be best not to include anything in the Charter regarding health care. Charter's she had looked at included an option of choosing health care. Language can be drafted to eliminate any reference to health care so nothing could be read into it. Councilor VanGordon said he was not in favor of going forward with this at this time because he felt the community was relatively divided on the issue. As a group they normally act on behalf of the entire community. This will only benefit the Council, so he was more cautious. His preference was that if this was something they are concerned about, they have the citizens file a referendum or initiative to place it on the ballot. He felt they may expend some of the goodwill they have built in the community. He didn't feel the Council should be the group to initiate the action. City of Springfield Council Work Session Minutes June 9, 2014 Page 3 Councilor Ralston said it was in their best interest and the people that serve on the Council. There may be people that don't run due to the financial impacts and he felt the community would understand that. Our citizens are well informed and support Council decisions. He asked if this would be a taxable income or just a stipend. Mr. Laudati said it would be taxable Discussion was held regarding the impact of additional income for those on social security Councilor Moore said she saw being a councilor as a volunteer position and $300 a month would not change that. She didn't think they were making a decision, but were giving the citizens an opportunity to make a decision. She is not just thinking of this Council, but of Council's in the future. Many people discover once they are on the Council how much more time is involved in being a Councilor. That might be something they publicized more. She appreciated Mr. Laudati's effort to get the word out about what the Council does and time spent. She felt they should go forward to put this on the ballot. If citizens disagreed, they would vote accordingly. She thought they had originally chosen $400 and $600. If they started at $300 and $500, adding a 2% cost of living adjustment (COLA) would not be much. She felt the citizens should be given the option to vote on this topic. Councilor Brew said he was supportive of moving forward, and was ambivalent about amount. It is a reasonable recognition that there are real costs to being on the Council. No one expects to make money serving on the Council, but doesn't expect to lose money either. The voters should have the chance to decide. He agreed it should go to either the Budget Committee or CCI to make recommendation of any future raises. Mayor Lundberg agreed to take it to the voters, but did not want to build in a mechanism to raise the rate without the voters' approval. People are not happy when things they vote on get changed down the road. Even if it goes to another committee, it is out of the hands of voters and voters could see the potential for abuse. She would advocate for a variation or mechanism outside of a COLA that could be built in to assure voters there would not be abuse, but would change over time. Ms. Smith said if they put a flat amount in the Charter, any change would need to be changed by an amendment in the Charter, which would require a vote. The only community that had the COLA increase was Eugene. They included language in their Charter that they would use the Portland consumer price index (CPI), and if there ever became a Eugene CPI, it would switch to that. Another option would be to have another City committee, such as the Budget Committee, make any adjustments. It might be difficult to include the voters without going through a Charter amendment or other election format. Ms. Smith said she drafted a ballot title based on the CCI recommendation of $300 and $500 with the CPI used for increases. They would need to include the details of the effect in the explanatory statement. Councilor Moore said they may need clarification of how a stipend could affect social security. It was decided that was not necessary. Mr. Grimaldi said Council needed to provide direction to staff about what they want in the ballot title. That ballot title would then be drafted and could be brought back for review during another work session, followed by a regular meeting to put it on the ballot. City of Springfield Council Work Session Minutes June 9, 2014 Page 4 Councilor Brew said they could put something in the language that any increase approved by the CCI would be no greater than the Portland CPI. It seemed wasteful to go back to the voters each time an increase was needed. Councilor Ralston said he liked the method used by Eugene. It is not controlled by a group, but based on a financial environment that exists, whether it is the Portland CPI or some other standard. He didn't want it to be more complicated than it had to be or have to go back to the voters each time. Councilor Woodrow said it wasn't cost efficient to go to the voters with each increase. If they had something locked in that would be used, the citizens would be voting on that. If someone wanted a major change, it would probably be a long time down the road. She is comfortable with $300/$500 or $400/$600. Mayor Lundberg said this would not preclude them from going back for another Charter amendment. They need to have more information regarding the Portland CPI and one more work session. Mr. Grimaldi asked if they wanted to see the ballot title with a dollar amount and the Portland CPI, along with information on the Portland CPI. The goal would be to come out of that work session with the final language for the ballot title. Mr. James said the CCI was very willing to do whatever they need to get this on the ballot and get information out to the public. 2. Costs and Impacts of City Administration of Nuisance Code Enforcement in the Urban Transition Area. Planning Manager Greg Mott presented the staff report on this item. The topic of effective code enforcement in the UTA has been the subject of several previous Council discussions primarily because the Springfield Municipal Court, and by extension the effective implementation of Springfield's codes, has no jurisdiction outside the city limits. This condition has persisted ever since the County transferred Urban Transition Area planning and building authority to the City in 1987. All of the City's efforts to date to enforce land use and building codes in the Urban Transition Area have relied upon cooperative compliance or in extreme circumstances, an appearance at Circuit Court. The Council Briefing Memorandum includes the analysis of providing nuisance code enforcement organized into three principal discussion sections: 1) The codes and programs subject to city administration in the Urban Transition Area; 2) the costs to implement the Administrative Civil Penalties process; and, 3) the impacts to the code enforcement program in general and inside the city limits in particular. The analysis of implementing nuisance code enforcement in the Urban Transition Area identifies three components, and their costs, necessary to accomplish this program authority. These include creating an Administrative Civil Penalties process; installing the equipment and adopting the procedures needed to support the Administrative Civil Penalties process; and providing the staff resources needed to accommodate the volume of work generated by the City's code enforcement programs. City of Springfield Council Work Session Minutes June 9, 2014 Page 5 The City also enforced portions of the Springfield Fire Code as part of an obligation of a contract service the City provides for the water districts. That includes about 40 -50 inspections annually for businesses to identify violations of the Fire Code. The City also has jurisdiction over illicit discharges. That is performed through our contract with Lane County and includes inspections and violations. Police have enforcement for animal control in the city limits only. The only service people aren't receiving in that area is the nuisance code. In order for the City's Nuisance Code to have an effect in that area is to have an enforcement tool. The only thing that works outside of the City limits is the Administrative Civil Penalties process which provides the City with the ability to cite people to encourage them to comply. If they object to that, they go to the Hearings Official. Staff recommends the Administrative Civil Penalties be applied to the Nuisance Code in the UTA. Circuit Court was not practical to use on a regular basis due to cost, etc. Councilor Brew asked if we would be enforcing the County or City nuisance code. Mr. Mott said the City Code. We would not want to enforce the County Nuisance Code because it is not as stringent as the City's. Councilor Brew said he recalled that one option could be for the County to adopt the City's nuisance code. Mr. Mott said they would still need to do that and the City would enforce. The City and County have an existing agreement related to land use and buildings to have the Hearings Official, but that person has only acted on land use. Staff feels they could adjust that IGA so the Hearings Official would have the authority to hear appeals of the nuisance citation. The third element is whether or not this change would have an effect on our existing code enforcement program inside city limits. It would and the City would likely need to hire additional enforcement code staff. To implement the Nuisance Code in the UTA, along with the Administrative Civil Penalties process with staffing, the estimated cost would be about $117,000 the first year, and $107,000 - $110,000 each subsequent year. This is just an estimate because they don't know how many citations might be issued, and how many of those might go to the Hearings Official. It could be comparable to action occurring within the City limits. This also opened up the ability for the City to cite for violations of the Development Code, Building Code and Fire Code, closing the loop on what we currently have in place. Councilor Ralston asked why it wasn't being enforced now by Lane County. Mr. Mott said the County is enforcing their Nuisance Code, but they have fewer violations. They do exercise some selective enforcement and their remedies are different. He explained. Mr. Grimaldi said the County has a less stringent code geared toward a county environment with larger properties. The City has more stringent codes for the urban environment. Mr. Mott said they have only one staff person to enforce their code in the whole County. Councilor Ralston asked if the City could contract for that service from Lane County to save us money. Mr. Grimaldi said staff could ask the County. City of Springfield Council Work Session Minutes June 9, 2014 Page 6 Councilor Ralston said he is concerned we will be imposing our codes in an area where properties are bigger, and they have and expect more freedom. Mr. Grimaldi said this would only be for properties between the City limits and urban growth boundary (UGB). Many of those areas are developed like the City, although not all. Councilor Ralston said he does not want to adversely affect those that are not developed. Mr. Mott said the County's code included a distinction between County property inside or outside the City's UGB. Many of the codes enacted by the City, except the Nuisance Code, have been co- adopted by the County. If the City talked to the County about contracting through the City to do the enforcement, they would insist it remain just in that area (between City limits and the UGB). Councilor Woodrow said because they were in the urban transition area (UTA), they are in an area that could come into the City. There is currently no one taking care of the situations of people concerned about violations by the neighbors through Code Enforcement. She would like to see the City pursue this to provide a better way to take care of these situations. The City needs to step up enforcement. Councilor Brew he felt that this was a City service paid for by City taxes that they are considering giving to people not annexed to the City. He sympathized with those in this area, but didn't feel City citizens should pay for this service for people outside the City. Councilor Moore referred to Attachment 1, page 5, which stated, "The provision of this service outside the city limits without cost might be regarded by some as an action in contradiction with the city's efforts to incentivize annexation'; but also noted that the City will benefit from the establishment and implementation of an Administrative Civil Penalties process to provide a mechanism for enforcement of all of the city's existing programs in the Urban Transition Area currently without such a tool. It seems reasonable for those residents who might eventually annex into the City to already meet City Code. She also sees that this will benefit the County. She agreed they should try to contract with the County to cover the costs the City will be taking on. Mr. Mott said one of the benefits was that people would come to the City for all land use and building needs, making it easier for developers. Having the City enforce those codes simplifies things. Councilor Woodrow asked what the difference was between the UGB and UTA. Mr. Mott said there are approximately 4800 acres within the UTA. Other than the County sanitarian, County Commissioner or sheriff, people came to the City for most everything else. Individuals can only annex their own property and land must be contiguous. That is one reason the City chose to annex Franklin Boulevard, so all of the properties along that road would be contiguous. Mr. Grimaldi said if one neighbor annexes, and the other neighbor does not, there is no Code enforcement for violations by the non - annexed neighbor. Councilor VanGordon asked about the costs after implementation. Mr. Mott said he is comfortable with the cost for City staff necessary to staff the hearings official and code enforcement program, and of hosting our system. What is not known is how many times the hearings official will conduct business. The hearings official would be hearing all cases, not just those City of Springfield Council Work Session Minutes June 9, 2014 Page 7 for nuisances. If the City chose not to enforce the Nuisance Code in the UTA, but wanted to go forward with the Administrative Civil Penalties, we would still need the hearings official at a cost of approximately $6000 - $8000. Councilor VanGordon asked if with the amount of households and number of cases would drop over time, or would it remain about the same. Mr. Mott said nuisances can sometimes be centered around a particular neighborhood. Because people know the City doesn't address nuisance in the UTA, people don't call so it is difficult to have a good sense of what is out there, so they are comparing them to City calls. Once it becomes common knowledge that the City is enforcing, they may see more than they are predicting. It will eventually level out. The costs would not increase substantially, but may change by a few thousand dollars. Councilor Brew said the difference was that people are payirig for the building permit, fire code, and illicit discharge. This is a service no one is paying for unless we get something from the County. Perhaps they could implement a district or non - district rate. Councilor Moore asked what other cities in Lane County did regarding nuisance codes, building codes, fire codes, etc. Mr. Mott said Eugene has the same IGA for land use building as Springfield. The Nuisance Code in the UTA around Eugene is handled by Lane County. He didn't believe other cities had the same agreement for the land use and building permits due to lack of resources. Councilor Moore asked if we could implement a fee. Mr. Mott said currently the City charges UTA applicants more than City applicants for building and land use, Councilor Moore asked if we could have a Nuisance Code fee that was higher. Mr. Grimaldi said it would be difficult to make it pencil out. Councilor Ralston said he felt they needed to move forward, but that they needed to collect something. He would like'to approach Lane County to subcontract at least half that amount. He also felt they should charge more for those in the UTA that use the hearings official. It isn't fair to the citizens of Springfield to have to foot that bill. The area north of Springfield was very dense like neighborhoods, but those areas south of Springfield included large acreages. There should be a way to distinguish different situations based on lot size. Mayor Lundberg said she is fine charging extra for those not in City limits. She wouldn't go so far as to designate separate areas because it could get very complicated and she wants to keep it simple. She is in favor of enforcement of our Code in this area and agreed they should speak to the County about sharing the cost listed. One of the areas they are having issues is Glenwood, which will be annexed sometime in the future. If they enforce the code now, they can get some things cleaned up better before they get annexed. Councilor Ralston said they need to use some reason because the farmers that live in the south area have numerous vehicles on their property with tractors and trucks. If he lived in the county, he would City of Springfield Council Work Session Minutes June 9, 2014 Page 8 expect to be entitled to certain things. We can't expect our standards to be acceptable to someone who lives on ten acres. Mayor Lundberg said the issues revolve around neighborhood areas, and is complaint driven Mr. Grimaldi said the first step will be to talk with the County to see if a portion of the funding can come from the County. Staff will also look at possible fees associated with going to the hearings official. After gathering that information, staff will come back to the Council. He noted that he spoke to the new County Administrator who has some ideas he will discuss with his staff. If that discussion goes well, it may be something they can move forward with at a lower cost. Mr. Mott said staff was going to bring the Administrative Civil Penalties to Council as a separate topic. That item has been rescheduled to September. Whether or not that topic needs to come to Council will depend on decisions made regarding the Nuisance Code. 3. Street System Communication Update and Revenue Options Deputy Development and Public Works Director Anette Spickard and Operations Manager Brian Conlon presented the staff report on this item. She thanked staff members Rhonda Rice, Greg Ferschweiller, Bob Duey, Len Goodwin and Jeff Paschall for their work in getting this information together. A power point was presented. The City of Springfield shares the same struggle that the Oregon Department of Transportation (ODOT) and numerous Oregon counties and cities face regarding adequate funding for transportation system needs. The City of Springfield continues to look for appropriate and sufficient revenues to support desired levels of transportation system operations, maintenance and preservation. Staff estimates a $4.5 million annual unfunded need to effectively support the City's transportation system operations and preservation objectives, in addition to an approximate $25 million backlog of more comprehensive street rehabilitation projects. At the October 28, 2013 Council Work Session, staff was asked to explore in more detail potential revenue options that can inform the next step of polling citizens on a preferred approach to begin addressing the funding gap problem. At Council's direction from the October 2013 work session, staff has researched potential Street Fund revenue options to address the $25 Million rehabilitation backlog and the annual $4.5 Million operations and preservation unmet need. Our research shows that Springfield is not alone in dealing with street system funding challenges. According to information provided by the League of Oregon Cities there are 23 cities that have implemented a Local Fuel Tax and 34 cities that have implemented a Transportation User Fee. Springfield is primarily reliant on State and Local Fuel Tax for our Street Fund but both State and Local Fuel Tax revenues have remained relatively flat, continuing a trend that began in mid -FY08. The majority of feedback and suggestions staff received during presentations of the Street System Communication Plan to numerous community and civic groups centered around two potential revenue approaches: debt financing, such as voter approved general obligation bonds, revenue bonds, or municipal loans; and "pay as you go" methods, such as increasing local fuel taxes and /or implementation of a transportation system maintenance fee. The goal of any approach is to match system operations, preservation, and rehabilitation objectives with the appropriate revenue source and amount. In the briefing memorandum staff provides for your discussion potential strategies for the City of Springfield Council Work Session Minutes June 9, 2014 Page 9 short, medium and long term that Council may consider as reasonable solutions to address the street preservation and rehabilitation needs of our community. Mr. Conlon said the City has faced street funding problems since 2003, continuing with preservation for about three years until 2007. Since that time, the City has not funded preservation activities. The unfunded backlog at that time was about $4.5 Million, and is currently $25 Million. Staff also estimated an approximate $4.5 Million funding gap which consists of operation needs ($1.5 Million) and $3 Million for continued preservation. Councilor Brew asked if the $4.5M is an annual cost, with a backlog of $25 Million. Mr. Conlon said that is correct. The two are separate. It is important to fund preservation annually so we didn't lose more streets. Ms. Spickard said before 2007, the City did seals on residential streets every 7 years and worked through the whole City on that cycle. The $3.5M was what it would cost to get back on that cycle. Mr. Conlon said people really notice when the problem is on the street they live. Almost every street that falls into the residential classification is due for preservation slurry. The revenue has remained flat taking in about $4.2 Million annually through State fuel tax and local fuel tax. In 2012, staff started doing public outreach and put together a communication plan that was successful. The objective was to connect for people that the street system is important to them and point out how much more complex the street systems are now. It was evident through the outreach that people believe in taking care of the streets. The solutions and options for how to fund street maintenance had not changed since the 2007 Mayor's Task Force. Ms. Spickard referred to pictures of current conditions of City streets. Staff will try to do work on some of these segments this summer. Councilor Woodrow asked if during the outreach, the public had indicated they were amenable to an increase in a fuel tax. Mr. Conlon said when they met with civic groups, people asked why our fuel tax was different than Eugene's. Some people were aware that the City had gone out for an increase in the fuel tax and that it failed. A 2 cent increase in the fuel tax would bring in about $650,000. Ms. Spickard said as of January 2014, any increase in the fuel tax would need to go to the voters. Councilor Ralston said the State needed to raise the gas tax enough to support all street systems. Users should be paying for it. He asked if there are any discussions going on about the State raising the rate. Development and Public Works Director Len Goodwin said when the Transportation Enhancement Act, Legacy for Users was enacted in 2009, there were discussions about increasing and indexing the fuel tax. At that point, the House refused to consider it then and again in 2012. At this point, there are no conversations in the current Congress about increasing the tax or indexation, even though the estimate is that by July 31, the Highway Trust Fund will be unable to pay its bills. City of Springfield Council Work Session Minutes June 9, 2014 Page 10 Councilor Ralston said he is hoping that whatever the City does is temporary. They should set a goal to keep up with things. Last year he would have supported a big bond measure to take care of it all, but he's not sure that's the solution anymore. Tax bills are continually going up. Ms. Spickard said they could go with the two pronged strategy to get the City back on a regular preservation cycle to address the ongoing system needs with a pay -as- you -go financing method, and another funding option to address the backlog. The proposal includes exploring another gas tax ballot measure or user fee for the ongoing needs, and a possible General Obligation bond for streets and other capital improvements. Staff would bring information back to Council on those options if directed. She referred to a matrix that outlines the different mechanisms, how they are authorized, who will pay, what the revenue could be used for, how it would be collected, the potential rate and the amount it could raise. Staff did an analysis of the pros and cons of each, and which stakeholders will be impacted. She reviewed some of those options. She referred to Attachment 4 of the agenda packet which compares what other cities in Oregon are doing. Four cities have done both a fuel tax and Transportation System Maintenance Fee. Ms. Spickard said staff recommended getting Council direction to investigate implementation of the Transportation System Maintenance Fee by reaching out to people to help with the rate structure, public education and the collection method. They also proposed identifying $100,000 of existing City resources using the Priority Based Budgeting (PBB) tool to do some high priority slurry seal for residential streets and look at a future ballot measure for the local fuel tax and future bond measure. Mr. Grimaldi reminded the Council that the City will be going out for the Fire Levy in 2015 and the Police Levy in 2016. Councilor Woodrow asked how the collection of a TSMF might be handled since Springfield Utility Board (SUB) was not amendable to adding that to their bill. She wants to see how much of the potential revenue from the TSMF will be lost with the cost of administration. She asked how far $100,000 would go for slurry seal. Ms. Spickard said page 4 of Attachment 2 of the agenda packet provided a list of slurry seal projects needed. Staff would prioritize projects based on the street condition index. Mr. Conlon said one of the processes involved in doing a slurry seal was crack sealing. Staff had incorporated crack sealing into the costs listed on page 4 of Attachment 2. The chosen projects would be done right and by private contract. Councilor Woodrow spoke regarding a GO Bond for 2017 and said if they want to get it passed, they need to be very specific about the use of the funds. The first strategy is to determine the specifics for a bond. Ms. Spickard said staff would bring back to Council a list of recommended projects. Councilor Brew said they had also talked about going out for a bond for the Library. He felt a $2M revenue stream from a County vehicle registration fee could service a $22M revenue bond. If they could get the County on board to implement such a fee, it would not impact voters and it would not get in the way of a Library bond or other levies. City of Springfield Council Work Session Minutes June 9, 2014 Page 11 Councilor Ralston said the Transportation User Fee didn't seem reasonable because they didn't have a way to collect. He also doesn't think the GO bond is a viable option because of the levies and other possible bonds coming forward. The only things left are the gas tax and vehicle registration fee. Both have a collection process already in place. They can explore the other options, but will need to find a way to collect on them monthly. He asked what type of increase in the gas tax is needed in order to get the funds needed. Ms. Spickard said each one cent increase brought in approximately $325,000 a year. It would take a ten cent per gallon increase to fully fund our preservation gap of $3 -3.5 Million. Councilor VanGordon asked if they could use the Priority Based Budgeting to find more than $100,000 for the slurry seal projects. Ms. Spickard said they could try. There are some vacant positions they could choose not to fill. Mr. Grimaldi said staff could bring back what that will look like and Council would make any decisions about how to adjust the funds. Councilor VanGordon said he wasn't sure he wanted to go for fuel tax as it is not sustainable. He would like to see what the Transportation User Fee will look like in terms of industrial rates. Ms. Spickard said there was a wide variety of ways to structure fees using trip counts, etc. Councilor VanGordon said he is open to explore a vehicle fee and a 2017 revenue bond attached to the vehicle fee. There is no one thing that will solve the problems, but will be a package of proposals. He wants to see this word towards a steady fund for maintaining our streets and catching up on our backlog. Councilor Woodrow asked if the projected revenue from vehicles registrations was for every two years. Yes. Councilor Moore referred to an article in today's paper about Transportation User Fees. She asked if they chose that option if it will go to the voters or just be enacted by Council. Ms. Spickard said that would be the Council's choice. If it is enacted by ordinance, citizens could file a referendum by gathering signatures, which would put it on the ballot. Councilor VanGordon said he would like more information about everything before going forward. Ms. Spickard said staffs recommendation took into account that Council would want to be pragmatic and inform the citizens along the way. It will take the next year to further develop options. Councilor Moore said finding a way to collect the Transportation User Fee would be key. Regarding the fuel tax, she understood the State is looking at other ways for funding. In the meantime, Eugene is collecting two cents more yet it doesn't seem to affect the cost much. It would add money to our revenue. She asked how quickly they could put a fuel tax on the ballot. Ms. Spickard said to give them time to develop the language, it would be best to wait until May 2015 City of Springfield Council Work Session Minutes June 9, 2014 Page 12 Councilor Moore said she appreciated the information provided by staff. There is no easy answer and we need more money for the roads. She is not impressed with the Transportation User Fee. Councilor Ralston said the TUF is inherently unfair for those that didn't drive much and he would look at that as a voter. Those that drive more should pay more. The gas tax is the only common sense option. Councilor Woodrow said she looks at the TUF differently. All things that come to everyone come by road, so in a roundabout way all should pay. She didn't have an issue with it adding $5 per household, but would if it was more. She is fine with the gas tax because gas prices jump around so much that any change would only be noticed for a short time. She didn't want to raise it by a lot, but perhaps enough to even it up with Eugene. Mayor Lundberg said this topic has been discussed many times and there are no new options. Tough decisions had to be made. She doesn't like the TUF and never has. Once something like that is in place, it can be raised without going back to the voters. She also felt it is not equitable in terms of number of vehicles per household. She would like to look at finding more than $100,000 through the PBB process. She doesn't think a gas tax will pass. She noted that there is discussion about the O &C money being stabilized for the County. Those funds helped fund road projects in the past. She encouraged the City to work with the County on the registration fee and sharing that revenue. She wouldn't mind paying a fee for tires, especially studded tires. That could include some lobbying to the State. She would encourage letting the County know they wanted to look at the registration fee. Mr. Grimaldi asked if Council wants staff to look further at all of the options presented, or if they want any of them removed from the list. Councilor Woodrow said she is comfortable removing the TUF. Mayor Lundberg said she would like staff to look at the gas tax, vehicle registration, and a capital bond that is specific for preservation. Councilor Ralston said he is proud of how Springfield is proactive, but he didn't want to do anything that took care of all of our problems because the federal government needs to do something. He felt there are too many reasons not to do a bond, including other bond and levies already on the horizon. There is never a good time to go out for big bond measure. Councilor VanGordon said he would like to keep the bond measure on the table. They didn't have to do it all and could reduce the amount of the bond if that' what they chose. Councilor Woodrow said she would like to spend more time on the gas tax, vehicle registration, the increase above $100,000 through PBB, and have some discussion on a bond measure for the future. Mr. Grimaldi said the bond topic would not be brought back until further out in the future. Councilor Brew said because the City is behind on maintenance, the streets are starting to fail now. He would like to look at some type of revenue bond that did not need to go to the voters to front -load the cash needed to address the current needs. They could use the County vehicle registration fee or gas tax funds to pay for that type of bond. City of Springfield Council Work Session Minutes June 9, 2014 Page 13 Councilor Brew said he would be resigning from his Council position due to work load and moving out of Springfield. He read the email he sent to the Mayor and Mr. Grimaldi regarding his resignation. In his email, he stated "It has been an honor and a privilege to serve the citizens of Springfield over the past eighteen months. Springfield will always be my hometown, and I'm proud to say so. The City Council and the City staff have much to be proud of, and much to look forward to." His last meeting will be July 7, 2014. Mayor Lundberg thanked Councilor Brew for his service to Springfield ADJOURNMENT The meeting was adjourned at 7:32 p.m Minutes Recorder —Amy Sowa Christine L. Lundberg Mayor Attest: 2ru X Amy Sow City Recorder