HomeMy WebLinkAbout12/10/2001 Work Session
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City of Springfield
Work Session Meeting
MINUTES OF THE WORK SESSION MEETING OF
THE SPRINGFIELD CITY COUNCIL HELD
MONDAY, DECEMBER 10,2001
The City of Springfield Council met in work session in the Jesse Maine Room, 225 Fifth
Street, Springfield, Oregon, on Monday, December 10, 2001, at 4:30 p.m., with Council
President Hatfield presiding.
ATTENDANCE
Present were Mayor Leiken (5:20 p.m.), Councilors Ballew, Fitch, Hatfield, Lundberg,
Ralston and Simmons (4:40 p.m.). Also present were City Manager Michael Kelly,
Assistant City Manager Gino Grimaldi, City Attorney Joe Leahy, Administrative
Coordinator Julie Wilson and members of the staff.
RECOGNITION
I. Recognition of Len Goodwin.
City Manager Mike Kelly presented an award to Technical Services Manager Len
Goodwin. The award was from the League of Oregon Cities, recognizing service on
behalf of Oregon's cities during the 200 I Legislative Session. His efforts on
'telecommunications issues provided a valuable service for the citizens of all Oregon
cities.
Len Goodwin was on the HB 3345 Task Force. This task force was ajoint
government/industry group established by the 1999 Legislature to find a workable
solution regarding how telecommunication providers compensate cities for the use of
their right-of-way.
Len Goodwin was on the LOC Telecom Work Group which the LOC uses to
formulate legislative policy positions.
Because of Len Goodwin's expertise and knowledge gained on working on these
committees, Len often testified before the Legislature on behalf of LOC and the City
of Springfield.
Len Goodwin has emerged as one ofthe recognized leaders on telecommunications
and continues to be a valuable resource to the city as well as the LOC.
WORK SESSION
1. Mixed-Use and Nodal Development Overlay Zoning Districts.
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City Planner Mark Metzger presented the staff report on this issue. No action is
requested at this time. Mr. Metzger presented a broad overview ofthe mixed-use and
nodal overlay districts and will identify policy directions in the new districts that may
be controversial and in need of careful consideration. He also updated the Council on
a TGM grant project that will assist the City in identifying the mixed-use nodes called
for in TransPlan.
Article 40-Springfield Mixed Use Zoning District is a potential development tool for
addressing future transportation needs by allowing people to live close to where they
shop or work. It is the tool prescribed in TransPlan to implement "nodal
development," an approach to community design mandated by the state to reduce the
average vehicle miles traveled (VMT) by the public.
Article 40 specifies the mix of uses that are deemed to be compatible and sets out
design standards that will ensure the attractiveness and livability of mixed-use
developments. It includes three types of mixed use: commercial, residential and
employment. These types represent the intended dominance of use within the mixed
use area (i.e. Mixed-use Commercial would be predominantly commercial centers
with residential development included.).
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Article 41-Nodal Overlay District is tied directly to Article 40. It adds specific
strictures and standards to those called for in the mixed-use zones to implement nodal
development. These structures prohibit auto-oriented uses such as car sales lots and
drive-thru windows for restaurants. The development standards promote transit-
oriented design and establish minimum residential densities that must be achieved
within nodal areas.
Both Article 40 and 41 are nearing completion. The Planning Commission met on
three occasions to review and revise Article 40. On November 20th, the Planning
Commission completed its review and determined that Article 40 is ready to move
forward for adoption proceedings. Article 41 has yet to be reviewed by the
Commission. It is a relatively short document that is closely related to Article 40.
Review of Article 41 is scheduled for Planning Commission review on February 5th.
It is anticipated that adoption proceedings for both articles can begin late in February.
The following article 40 items were reviewed:
Mr. Metzger answered specific questions from council. He discussed the existing
Development Code and category of uses.
Mr. Metzger discussed retail square footage and the model development code used to
develop this.
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The group discussed building orientation and maximum setbacks (A-20 of the
attachment). Mr. Metzger discussed the importance of an education program related
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to standards followed by developers. Mr. Metzger said we would be developing
differently. He further discussed the importance of communicating and educating
related to design considerations. Development Services Director Cynthia Pappas said
this is an opportunity for local developers to learn a new development niche.
Mark Metzger discussed mixed use residential and how designers would work within
these guidelines.
The group discussed Nodal development and the impact on reduced vehicle miles
traveled, mixed use commercial and commute trips.
2. Public Employees Retirement (PERS) System Pooling: Electing for the City of
Springfield to Enter the State PERS Pool as of January 1,2002.
Benefits Manager Ardis Belknap introduced this item. Human Resources Director Bill
Spiry was also available to answer questions. In order for the City to enter the State
PERS pool as of January 1,2002, as permitted under Oregon Administrative Rule 459-
009-0070, and as allowed by the 2001 Oregon Legislative Assembly in Senate Bill
134, an election has to be completed by December 31, 2001.
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The PERS Board has recently adopted a rule to permit cities, counties, and special
districts that participate in PERS to voluntarily choose to join the new pool. State
agencies, community colleges, and public institutions of higher education are required
by law to be part of the pool. All Oregon school districts are required by law to be
part of a separate school district pool. Prior to that change in state regulation, cities
were only permitted to pool with other local jurisdictions, which limited the size and
therefore the stability of the pool.
The City of Springfield now has an opportunity to join the larger State PERS pool. If a
decision is made by December 31,2001 the City will enter the pool effective January
1,2002. If the City does not exercise this option at this time, it must wait until July 1,
2003 to notify PERS that the City will join the pool, which would then be effective
January 1,2004. If the City chooses not to join the pool, City PERS rates will continue
to be based upon individualized experience with the possibility of greater variability.
The methodology of this analysis has been discussed and validated with the City's
pension actuary, and a review of the final recommendation by the actuary is in
progress and concurrence was provided. Staff recommends Council adoption of the
resolution at this time to ensure the City can finalize this action by the December 31,
2001 deadline. In the event the review by the actuary does not support the final
recommendation to pool to the satisfaction of the City Manager, the resolution will not
be delivered to PERS, and pooling will not occur.
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The PERS State Actuarial Pool would actuarially combine the PERS assets and
liabilities of State agencies, community colleges and public institutions with cities,
counties, and special districts. Upon joining the pool, any prior unfunded actuarial
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liability would remain an additional liability of the City. Additionally, any prior
actuarial surplus of the City would be credited to the City.
Ardis Belknap reviewed specific details regarding pooling. The primary reason for
pooling is to promote stability in employer rates. Employer rates for non-pooled
employers can fluctuate significantly between valuations while the rates of pooled
employers tend to remain more stable. Employer PERS rate fluctuations can and have
caused unexpected financial difficulties for local governments. Because of the
demonstrated stability of pooled rates for the state and schools, the 200 I Legislature
chose to extend the opportunity for local governments to pool their rates with those of
the state of Oregon.
The City has considered a number of factors in the development of this
recommendation regarding pooling. First we looked to the process being used by other
public agencies in making decisions whether or not to join the State pool. In February
of2001, Lane County hired actuary Peter J. Neuwirth to conduct an analysis ofthe
factors involved in the decision whether or not to join an actuarial PERS pool. The
factors set forth in that analysis have been used as a guide for other agencies including
The City of Eugene, EWEB, and Local Government Personnel Institute. In that
analysis Mr. Neuwirth provided the following advice on whether or not it makes
financial sense for an employer to join a PERS pool.
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The first reason is stability. Neuwirth expressed the belief that, ".. ..pooling of Local
Agencies will bring much needed stability to PERS and substantially reduce the
volatility in contribution rates (and funded status) currently experienced by many
employers." He qualified this with the caveat that it is impossible to predict with
certainty whether a particular employer will experience higher or lower contribution
rates by joining the pool than it would independently.
The second reason an employer would consider joining the actuarial pool would be to
achieve a contribution rate, which is near, or lower than the contribution rate an
employer would anticipate based upon individual experience. The benefits of pooling
based on this reason are much more difficult to assess, and can vary dramatically from
employer to employer based on numerous factors.
Many factors influence the employers contribution rate: the employer's funding level,
earningsllosses of the system, Normal Cost rate, turnover, disability, variable account
participation and benefits in force. In consideration of these factors the decision of
whether or not the City should elect to join the pool is less clear.
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The City of Springfield is well funded as of the 1999 valuation. However, our
actuary, Milliman USA, has told us that the potential losses that will show in
the 2001 valuation will erode the entire over-funding and probably cause the
City to develop an unfunded liability. The "insurance" value of pooling at this
time would be that the City would lessen the impact of the effect on our
funding level caused by the investment returns for 2000/200 I.
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The Normal Cost Rate is an actuarial indicator of the employer's rate. It is
important to note that the "normal cost rate" does not directly equate to the
"employer contribution rate" but is one of the indicators of how the employer
contribution rate may be influenced. Our composite non-pooled Normal Cost
Rate is 9.66% and the composite State pooled Normal Cost Rate is 9.83%, a
difference of .1 7%. This difference suggests that our initial employer
contribution rates in pooling could be somewhat higher than our individual
rate.
The proportion of Tier I employees to Tier 2 employees also influences the
employer contribution rate. Generally, the individual normal cost rate can be
anticipated to decline at a faster pace if the employer has a greater number of
Tier 1 employees leaving the system. The City has a much smaller percentage
of Tier I employees than the average local agency. This indicates that our
individual Normal Cost Rate will not decline as quickly as it might for other
local agencies.
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The City's turnover rates are above the averages for other PERS employers. Our
disability (L TD) rates are higher than the average based on the eligibility
standards for our current L TD insurance carrier. It is unknown what the L TD
rates would be if our employees had been in PERS for the duration of their
career. PERS acceptance rate of claims is lower than our current carrier.
Although inconclusive, if we assume that our PERS disability rate would be
higher than the average of other PERS employers, this would ,suggest that the
protection of the pool could help insulate the City from the effect upon our
contribution rates in the future.
The next factor in the analysis is the percentage of the City's member funds in
the variable account and benefits in force (funds set aside to pay for benefits
for retired PERS members). City of Springfield PERS members have only
been able to contribute to the variable account from their integration forward.
The result is that the City has a lower proportion of member accounts invested
in the variable account. Also, our BIF (Benefits in Force) is less than the
average because most of the City's PERS employees are not yet eligible for
retirement. Therefore, these factors are less likely to effect our contribution
rates in the near future.
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The agenda item summary packet, attachment 2, referenced Question and Answers
provided by PERS. The group discussed attachment 2-4, "Will the pooling oflocal
governments save money? The answer is "generally not." The reason for pooling is
rate stability, not lower employer rates. Initially, some employers will pay less and
some employers will pay more depending on what pension costs they incurred prior to
entry into the pool. But over the long term, the pool will likely be cost neutral for
most employer participants."
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Research shows that pooled rates will be more stable than individual rates. Stability of
rates would suggest that the City should elect to join the pool. Stability of rates allows
more accurate budgeting and projection of costs.
Our research has shown no clear direction on whether we should join the pool
effective January 1,2002 or wait for the next opportunity on January 1,2004.
The factors that influence the "when to join" decision include the City's funding level,
potential 2001 losses, projected changes in the Normal Cost Rate, turnover, disability,
variable account participation and benefits in force. The history of these factors is
inconclusive regarding the benefits or timing of pooling for the City. Even if past
experience clearly indicated a correct decision of joining the pool at this time, the
future cannot always be predicted by past experience. First and foremost, pooling is
an insurance against future variation in the factors listed above.
Based on the known rate stability in the pool verses the potential rate variability for
individually rated entities, and the potential increase in employer rates due to
considerably lower than expected earnings in the 2000/01 valuation period, it is
recommended that Council adopt the resolution authorizing the City to enter into the
PERS State Pool, effective January 1,2002.
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Ardis Belknap answered questions regarding Attachment 2-15 of the agenda item staff
report regarding employer rate history as of valuation date.
Bill Spiry answered questions regarding pooling, related to retirement and disability.
Ardis Belknap said we have a lower than average Tier 1 group of employees
(compared to other public agencies).
Ardis Belknap discussed pool rates for emergency services as well as general service
employees.
Councilor Fitch recognized the dedicated workforce of the city of Springfield. She
also expressed support for pooling.
Councilor Lundberg agreed with Councilor Fitch and supported pooling.
Councilor Ballew said we should go forward.
3. Youth Access Ordinance.
Assistant City Manager Gino Grimaldi, Community Services Manager Dave Puent and
City Attorney Joe Leahy were available to answer questions from council.
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At its meeting of July 16,2001, the council directed staff to prepare an ordinance
regulating the sale and distribution of tobacco and tobacco products to minors. The
proposed ordinance is based on a model ordinance from the Oregon Health Division
and ordinances from several Oregon municipalities. The council reviewed the initial
draft of the Youth Access Ordinance at its meeting of October 1,2001, and conducted
a work session on October 8, 2001. At its meeting of October 8,2001 the council held
the work session, asked for modifications to the ordinance, and asked staff to research
several issues.
The purpose of the proposed ordinance is to restrict youth access to tobacco products.
The proposed ordinance would:
. Require tobacco sales to be vendor assisted
. Prohibit self-service tobacco displays
. Prohibit the sale of tobacco products to minors under the age of 18
.. Require tobacco retailers to be licensed by the city.
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Attachment 2 ofthe agenda item summary document includes a memorandum from
the City Attorney that addresses each of the concerns raised by the council at the
October 8 meeting. Significant changes to the proposed ordinance include the ability
to fine a clerk for the sale of tobacco to a minor, notification of the storeowner of
violations by clerks, the ability to revoke or suspend a license upon three or more
violations in a one-year period and changing the effective date to July 1,2002. The
memorandum also details the procedures that will be used by Lane County Public"
Health to enforce the proposed ordinance. Due to significance of the changes to the
proposed ordinance a new first reading will be required.
At the second reading ofthe ordinance staff will present a resolution establishing a
license fee of $55 for the first license and $35 for the annual renewal or change of
ownership. The Development Services Department estimates that approximately 50
licenses will be issued.
Councilor Lundberg thanked staff for bringing this item forward.
Council briefly discussed specifics related to the proposed ordinance as well as
accountability. Councilor Ballew reminded folks of the fact that city resources are
limited and have continued to reduce.
4. Olympic and 42nd Street Improvements.
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Traffic Engineer Brian Barnett presented the staff report on this issue. Brian Barnett
introduced the newest member ofthe Transportation Division, Gary McKinney,
Transportation Planning Engineer. The group welcomed him. Olympic Street and
42nd Street will experience significant traffic volume growth as a result of
development of properties in the area. An opportunity to enhance the street network in
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this area may exist. Staff seeks Council approval to open discussions with property
owners in the area.
The 42nd Street corridor needs improvement to handle projected traffic volumes and to
provide an urban standard of services. The City has applied for grant funded
improvement projects in the past and will continue to do so. Staff seeks the
opportunity to explore the possibility of improving the collector street network with
42nd and Olympic Street area property owners.
During the course of staff evaluating a subdivision development Traffic Impact Study
and subsequent meetings with Oregon Department of Transportation (ODOT) staff, it
was discovered that the intersections of Olympic Street with 42nd Street and the
eastbound Hwy. 126 ramps with 42nd Street will have significant traffic volume
growth and major improvements would be needed. These intersections are very close
to each other (approximately 470 ft.) and additional separation would be valuable to
traffic flow and signal operations.
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A concept was discussed which would add a collector street through the site of the
reclaimed log pond connecting Olympic Street to 42nd Street at a point approximately
1,100 feet south of the present 42nd Street at Olympic Street intersection~ This route
approximates the location of the street proposed in the subdivision application. If the
new collector street could be added the intersection of Olympic and 42nd Streets could
be modified to remove the traffic signal, reduce conflicts, enhance safety and smooth
traffic flow. The traffic signal would be relocated to the new collector intersection
with 42nd St. As a result of extending the collector, a short portion of Olympic Street
near 42nd Street would be used to a lesser extent than it is today and some value ofthe
prior street improvement would be lost.
Staff is seeking council direction to enter into discussions with property owners
affected by potential street network improvements.
Councilor Ralston suggested removing the ramp and make a loop back up to Olympic
Street. That would eliminate some driving. He said you could easily widen the ramp
and loop back. He said you could direct traffic west. It could greatly reduce the need
at that intersection. Brian Barnett said ODOT would not support this. The group
further discussed this topic in detail. Brian Barnett said he held lengthy discussion
with ODOT representatives about the concept. He said he would pursue this request at
council's direction.
Councilor Fitch asked about the zoning. Brian Barnett responded that it was zoned
heavy industrial. He discussed development standards.
Brian Barnett said ODOT does not have jurisdiction over 42ndStreet.
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Councilor Lundberg asked about the type of traffic that will use this area. Brian
Barnett said use would vary for this area, including truck traffic, automobile and other
traffic.
Brian Barnett answered questions from Councilor Ballew about specific right-of-way.
Councilor Simmons discussed a specific ramp and referenced it as a "tip" ramp. He
said many issues related to the development need to be addressed at the same time. He
said you need to cover bases all at the same time. He said this could be a good
development.
Councilor Simmons discussed access off of 42nd Street. The traffic study proposed a
'right in' only into a facility. This has not yet been analyzed.
Council provided consensus for staff to continue discussions to expand to collector
streets, possible use of SDCs to help pay for collector, review relocation of the traffic
light from Marshals to the proposed site, as long as impacted nearby business owners
are contacted for input before moving signals.
5. Eugene-Springfield Metropolitan Natural Resources Study.
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City Planner Mark Metzger presented the staff report on this issue. He introduced
Kathi Wiederhold, Planner and Project Manager for the Natural Resources Study from
LCOG. Council was asked to review revisions to two "significance criteria" to be
used in the Natural Resources Study as requested by the Council.
"Significance criteria" are used to identifY sites for the Natural Resource Inventory. At
the November 13th work session, Council directed staff to revise criterion #5 and #6.
At issue is whether the revisions in those criterion adequately address the concerns that
were expressed by Council.
Set out below are both the original language and the proposed changes for criterion #5
and #6. "Attachment A" provides rationale and additional supporting information for
the proposed changes.
Original Criterion #5:
Undeveloped natural areas that are contiguous with a water feature.
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Revised Criterion #5:
Undeveloped vegetated corridors that are contiguous with a water feature, and some
natural areas immediately associated with those corridors, that together provide fish
or wildlife habitat and contribute to a properly functioning riparian area.
The changes to criterion # 5 more clearly detail the resource being captured. The
language provides a "descriptive edge" to the resource sites while avoiding a hard and
fast distance measure. The language captures primary resource type: the vegetated
corridors that immediately embrace water features (riparian areas). The language also
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allows for inclusion of some blocks of associated natural vegetation immediately
adjacent to those corridors. Such inclusions are limited. These associated natural
areas must act in conjunction with the corridors to provide habitat for fish or wildlife.
Mark Metzger said other agency partners suggested deleting the language "contribute
to a properly functioning riparian area." Councilor Hatfield said definition was
important and did not support eliminating the language.
Kathi Wiederhold discussed the words "the properly functioning riparian area." She
said we might face difficulty in defining "riparian." She and the team favor simpler
language.
Councilor Lundberg asked how this plan would be put together (opportunity for
public input/testimony). She asked if we were locked in and had to have our
language match up with Eugene language. Its possible Springfield may be able to
have its own criteria, although, this would need further discussion with partner
agencies. We are not there yet.
Councilor Simmons discussed the importance of processing this issue correctly. He
said the language is acceptable for Springfield. He said the proposed language might
better meet regulatory needs. He said this language is preliminary. He does not think
we need to change the language. Staff has done a good job of developing language.
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Councilor Ballew said the words "properly functioning" could be challenged and
debated. It is important to be clear.
Environmental Services Manager Susie Smith said the National Marine Fisheries
Service (NMFS) 4-d rules specify definition of "existing" properly functioning
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Council recommended adding the word existing. Council approved this language. It
will read "to an existing properly functioning riparian area."
Original Criterion #6:
Areas that are undeveloped, and which in their natural state are un-vegetated (e.g.,
rock outcrops, gravel bars)
Revised Criterion#6:
Areas that are undeveloped, and which in their natural state are un-vegetated (e.g.,
rock outcrops, gravel bars) and provide wildlife habitat.
The change to criterion #6 specifies that those un-vegetated areas proposed for
inventory must be wildlife habitat.
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These proposed changes in criterion #5 and #6 will have little or no impact to the
current inventory, but will provide more specific direction for the selection of natural
resource sites that might be proposed in the future.
Council approved the revised criterion.
6. Draft Executive Summary - Fire District Feasibility Study
Fire Chief Dennis Murphy introduced this topic and City Manager Mike Kelly
presented the staff report on this issue. Mr. Kelly discussed the current financial
issues facing the organization at this time.
Fire & Life Safety Council Goals for 200 I include an evaluation of the feasibility of
formation of a fire district as a means to provide stable funding for future operations of
the department. This preliminary report will be followed by a complete feasibility
report and request for Council action planned for January 2002.
The Fire & Life Safety Department contracted with Emergency Services Education
and Consulting Group (ESECG) for evaluation of the feasibility of the formation of a
fire district to serve Springfield and surrounding areas. Phase 1 ofthe study evaluates
the financial feasibility within Springfield and the Urban Growth Boundary and
explores the potential advantages and disadvantages of fire district formation.
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ESECG Director of Consulting Services Bruce W. Caldwell made a brief presentation
to the council. Conrad Christensen was also present to answer questions.
As with many cities ofthe state (and for that matter the nation), the City of Springfield
faces some particularly tough financial decisions in the near future. The City projects
a shortfall in fiscal year 2002-03 of$I,400,000. Obviously, such insufficiency will
impact on the ability of the City to fulfill its goals.
. The City initiated a study to examine the probable financial outcome of shifting
responsibility for fire and emergency medical services from a municipally based fire
department to a fire protection district. The aim of such a change is to offer the
citizens same or better emergency services at less cost. Given the deficits predicted by
the City, it is safe to say that without significant change some or all city services are
likely to reflect higher cost and/or lesser service in the future.
The City contracted with Emergency Services and Education Consulting Group
(ESECG) to conduct the study. Work on a full report continues as remaining legal and
procedural details become clear, however we offer some preliminary condusions now
for consideration.
The following topics were discussed:
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. Concepts for change
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. Options for formation of district
. Merger with Fire District
· Consolidation
. Cost of service
Conrad Christensen clarified information regarding the calculation for cost of service
for current services, versus creation of a fire district.
Bruce Caldwell provided information regarding discussions held between the firm and
other service provider(s).
City Manager Mike Kelly provided additional information regarding taxing rates,
protection to the citizens of Springfield, as well as other issues specifically related to
the creation of a special district.
Mike Kelly further discussed unique abilities of shifting services to a special district
and taxing ability to fully staff a fire station.
Councilor Ballew discussed the purpose of municipal government providing central
services. She did not think voters would support increased tax for a special district.
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City Manager Mike Kelly said the choice would be left for council decision. He said
the city could reduce services to match city funding, consider revenue enhancements,
etc.
Councilor Fitch said a fire district does have potential and she would like to further
review this in January.
Bruce Caldwell answered questions regarding the Glenwood permanent tax rate.
Finance Director Bob Duey answered questions .regarding the Ballot Measure 5 cap
(1990). He also discussed Ballot Measure 50.
Councilor Simmons referenced previous studies regarding the creation of special
districts in California.
Councilor Hatfield said this topic is worth leaving on the table for further review. He
said we currently have a very effective and efficient Fire and Life Safety Department.
He discussed the budget situation of the city at this time.
Mike Kelly provided additional clarification regarding city services as well as
enhancements. He again noted that staff would not advocate for the creation of a
special district, only provide facts to the council for review and consideration.
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City Manager Mike Kelly discussed the characteristics of a fire district (funding).
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Bob Duey answered questions regarding permanent tax rates.
Mayor Leiken noted the importance of keeping a levy focused when bringing forward
to the voters.
Council provided consensus to keep this on the table for further review.
ADJOURNMENT
The meeting was adjourned at 7 :03 p.m.
Minutes Recorder - Julie Wilson
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Kim Krebs
City Recorder