HomeMy WebLinkAbout11/24/2014 Work SesssionCity of Springfield
Work Session Meeting
MINUTES OF THE WORK SESSION MEETING OF
THE SPRINGFIELD CITY COUNCIL HELD
MONDAY NOVEMBER 24, 2014
The City of Springfield Council met in a work session in the Library Meeting Room, 225 Fifth Street,
Springfield, Oregon, on Monday November 24, 2014 at 5:30 p.m., with Mayor Lundberg presiding.
ATTENDANCE
Present were Mayor Lundberg and Councilors VanGordon, Wylie, Moore, Ralston, Woodrow and
Pishioneri. 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.
1. Proposed Annexation Incentives Project Update
Greg Mott, Planning Manager, presented the staff report on this item.
The annexation incentives project is divided into three phases; 1. Information gathering; 2. Incentives
program development; and 3. Incentives program implementation. The preliminary survey results are
characterized by an extremely high rate of participation, overwhelming opposition to annexation, and a
resolute belief that the project is prelude to "forced annexation." These compelling survey results
paired with a growing anxiousness about the purpose of the project are good reasons for the Council to
review this project and instruct staff how or whether to proceed further.
Two of six survey areas in this project have been completed and the results are very similar in terms of
rate of participation (43% in Hayden Bridge, 55% in West Centennial) and position on annexation
(90+ % opposed/not interested). Additionally, three petitions opposing annexation were submitted
with a total of 1,289 signatures; more than 30 pieces of correspondence were received all of which
oppose annexation; and several dozen phone calls were received most of which were unequivocally
opposed to annexation. Notwithstanding our efforts to make this initial phase of the project a
transparent data collection exercise, a significant number of survey respondents expressed fears that
the city's real purpose for the survey was to begin a process that would lead to "forced annexation."
An annexation study undertaken 20 years ago which could have resulted in phased, contested
annexation and which left many of these residents distrustful of the city's annexation objectives, was
consistently raised as a point of comparison and is likely responsible for the submittal of the three
petitions opposed to annexation. Staff is requesting Council direction to continue the survey process,
reduce the number of areas surveyed, or terminate the project.
Staff chose to bring this to the Council because of the ill will, anxiety and resentment from many
residents in regard to the survey. The interest of the Council was strictly data gathering, but has been
regarded differently. Staff feels that continuing on with the survey would not be beneficial to the
Council or the city.
Councilor Moore said she feels badly for staff as recipients of the negative feedback. Her sister told
her she did not want to annex to the City. She agrees they should not move forward. She asked if staff
could follow up with the few people that did express an interest in annexing.
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Mr. Mott said it is difficult for the City to find ways to reduce the costs unless there are a lot of people
in an area wanting to participate in the annexation. Most of the residents surveyed did not want to
annex, not only due to the cost. It may be a benefit to examine some of the incentive options when
people do need or want to annex. The Council has been looking at ways to finance City growth and
development and this is a part of that conversation. Staff can draft some options and any possible
consequences changes to policy might make.
Councilor Pishioneri said this came up some time ago in looking at expanding the urban growth
boundary, yet the areas being surveyed are already built out so it doesn't make sense for the City to try
to annex those areas. On the other hand, there is a history of septic systems failing in the study area.
He asked if staff has an estimate of the life remaining in the septic systems in that area. In five years if
they have multiple failures, the City will be required to step in.
Mr. Mott said if there is no solution rather that a sewer connection, the City is required to step in. That
is an infrequent circumstance. Ground water quality was of public contention in Santa Clara, but the
City has not done an analysis in these areas.
Councilor Pishioneri said septic systems are similar to road systems and will eventually fail. He
supports not annexing, but landowners may want to look at today's costs to connect compared to what
it could be in the future. It could be an opportunity for some that have systems that are near failing.
Mr. Mott said the State sanitation requirement for lot size for a drainfield is 10,000-12,000 square feet.
If the drainfield is the source of the problem, it is difficult to remedy with that type of system. The
City has not undertaken an analysis to determine whether or not there is a potential for a large number
of septic failures that could occur in the near future.
Councilor Pishioneri said he agreed not to move forward with the survey and to reassure people the
City is not supporting forced annexation.
Councilor Woodrow said she would prefer the residents understand that the City was just trying to
gather information. She wants to reinstate good will.
Councilor VanGordon said there is no reason to continue the survey as the results are pretty clear. The
City will continue with voluntary annexation. He is still interested in looking at fees and incentives to
lessen the burden for those that voluntarily annex.
Mayor Lundberg agreed with Councilor VanGordon and would like to continue to look at incentives.
People have approached the City about annexing, but the costs are too high. There will be a time
when there is a failure of the septic systems. She asked if Springfield Utility Board (SUB) is checking
carefully to make sure there is no leaching from the septic systems into the groundwater into the
wellheads. That would be our only way to monitor that.
Mr. Grimaldi said SUB would know when it reaches the well. The septic system is designed to take
care of waste, and some may go into the ground. When it starts to fail, the home owner is the first to
know.
Mayor Lundberg said we have been through the situation where someone needs to annex because of
septic failure. It is very painful to go through this process, plus they are then forced to annex. People
are unhappy and the City is trying to do the best to control costs. That's what prompted the City to do
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this survey. People often aren't prepared when that situation arises. She didn't want to force people to
pay fees, but they have no choice at that time.
Mr. Mott said annexation laws were changed in 2009 or 2011 and now property needs to be
contiguous in order to annex, so the City has annexed right of way in some areas. State law does not
require annexing to get sewer; it is called extra territorial extension. The City would still get the SDCs
and user rates, but the property would not be in the City. It is still expensive.
Mr. Grimaldi said the most expensive part is construction of the sewer. They have to determine how
to best pay. This might be more of a public works discussion for a future work session about how that
works and if there are any changes the Council wants to make.
Mayor Lundberg said she would like to table this and bring it back for further discussion. The City
will run into that situation (failed septic) again at some point.
Councilor Ralston said he has always been opposed to forced annexation so is happy the City has that
policy. At some point those septic systems will fail and the costs will be high. He was not anticipating
this type of response to the survey. He wanted to get information and felt they should get it out to all
residents with septic systems so they understood the costs involved. He thought there might be a way
we could say we could do this at a lower cost of a group of neighbors connected and annexed.
Mr. Mott said staff could look at options for cost reduction. The City should be able to design a system
and be prepared. In the short term, neighbors can form an LID (Local Improvement District) to offset
costs in the short term.
Councilor Moore said she was impressed with the petition and the fact we have well informed citizens
who came to the meeting. This is a public process and we need everyone to contribute.
Mayor Lundberg said for now they will table this, but she does not want to lose it as a discussion for
the future to look at ways to help with costs, and possibly consider extra territorial extensions.
Councilor Wylie said it was not their intention to force people to annex, but to gather information
about what was appealing about annexation.
Councilor Pishioneri said it wasn't unnoted that people are not wanting to pay more taxes. Being
outside the City, residents are not able to vote on Springfield issues but the Council still listens to what
they have to say. The City has obligations and needs to do their due diligence.
2. Library Department Update
Rob Everett, Library Director, presented the staff report on this item.
The Library has a number of short term initiatives aimed at increasing efficiency and improving
service immediately. In addition, the Library is trying to navigate the future course of library service
in Springfield including the construction of a new library facility, and finally, the Library is facing
significant staff turnover in the next 9 months that will impact its ability to move forward on any of
these initiatives.
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There are four aspects of Library service in Springfield that we would like to discuss in this work
session: 1) The 2014-15 Library Work Plan that highlights specific tasks to be accomplished this year
including: improving our Integrated Library System (ILS) on both the staff and the public sides;
contracting for the purchase and installation of self -checkout circulation stations; design and
implementation of a merged service point that can serve all functions from a single desk; the
development of a building program for a new library in Springfield 2) Increased library open hours - a
brief report on our initial experience and future plans. 3) The direction public library service is headed
in communities across the nation, including Springfield, as reflected in a recent Aspen Institute report,
Rising to the Challenge: Re -Envisioning Public Libraries, and 4) The impact of impending library
personnel changes.
Mr. Everett said the guiding principle of the Library is to "give the very best service we can by
maximizing the resources we have been allocated". They do this by hiring the best personnel
available, improve service and productivity by using their brains and technology effectively, and
leverage their dollars to achieve the greatest amount of service for their patrons. Their current work
plan reflects those three tenets. They have completed migration from hosting their library system on a
local system to a cloud based service saving staff time and money. In December, the Library will
begin work on designing and implementing the patron self -check stations, and procuring a contractor.
This is another way the Library is using technology to empower the user, improve service and use staff
more strategically. Accompanying this project will be the first upgrade to their security system in
more than 20 years.
Mr. Everett said in conjunction with the above effort, they are exploring how to use employees more
efficiently through a merged service point with all services from a single desk. That change will help
support their current expanded hours with the fewest number of staff possible while allowing the
flexibility of freeing up the professional staff for collection development, programming and individual
assistance. While they strive to improve current services, they are also looking at future library
services for Springfield. They will be using their Priddy Planning Grant funds to develop a building
program for a new library to serve the needs of current and future Springfield residents. This effort
will involve all stakeholders, include professional assistance from a design firm, will conduct
community focus groups and create a building program that truly reflects community needs.
Mr. Everett said the greatest improvement over the past twelve months is the expanded hours of
operation, allowing them to be open an additional four hours per week which went into effect in
August. They will be tracking the number of patrons over the next year with those increased hours.
They are regularly scheduling Saturday stories and Cuentos bilingual programming, as well as
Saturday morning specialty programs. They are hearing positive feedback from patrons happy with the
extended hours, and will promote the extended hours again soon.
Mr. Everett noted that through all of this activity, he received news of three library staff retirements
over the next few months. These women have contributed greatly to the success and reputation of the
Springfield Library not only with users, but with the Oregon library community. His work plan is
being amended due to those staffing changes. He referred to a report included in the agenda packet
"Rising to the Challenge, Re -Envisioning Public Libraries" from The Aspen Institute, which addresses
key issues in our library and community. The report, funded by the Gates Foundation, is timely in that
we are in the beginning stages of planning a new library in Springfield. The report focuses on two
things: Public libraries are essential to success and progress in a digital age; and community value of a
public library is built around three key assets — people, place, and platform. As the Library engages
with the community about a new building, they can incorporate these concepts into their discussions.
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They want the library to be a hub of civic engagement, a welcoming space for a wide range of
purposes, and user centered. This is exactly what library staff have been striving to do now and what
they aspire to do in the future.
Councilor VanGordon said one of the things he liked on the additional hours, was the focus on
positively impacting the community and how the library strives to do that. In the long term, he is
concerned how many people come during the additional hours and if it impacts the overall attendance.
He thinks the work plan looks great and using the Priddy Grant in looking at community needs
because they don't know what a library will look like in twenty years.
Mr. Everett said historically libraries were archival, but now they manage information that is growing
every hour and helping people use the new tools to help manage the flow of information in order to be
successful. New information is always being created and they are helping people access and use it.
Councilor VanGordon said it would be interesting to hear how to grow and get more patrons through
the door. That is an interesting challenge. Literacy is very important and he asked if there are kids in
the school district without library cards.
Mr. Everett said the library participates in an initiative for every Springfield 1St grader to receive a first
book and library cards for use of one year. Some students who are in the school district are out of the
City limits. Through the Gift of Literacy and the efforts of Springfield and Twin Rivers Rotaries, and
the Wildish Foundation, they have funding to provide library cards for every 1St grader. Last Spring
they checked with the School District and determined that 780 kids that attend Springfield schools are
outside city limits, which is an estimated 312 households. About $25,000 provides cards for those
students. Those students can come to the library and attend library programs. Today, they are
providing a program where they teach teens how to program in a program for graphic design. Those
students can come to the Library, but can't check out books or log in at access databases from the
internet. This is a bigger problem that needs a community solution with the help of the School District
and Willamalane.
Councilor VanGordon said he would be interested in partnering with the school district or get a grant
to fill in that gap.
Mr. Everett said Lane County citizens are the most underserved in terms of library services in the
state.
Councilor VanGordon said he would like to pursue that with other community partners.
Councilor Woodrow said the value of the outside cards is approximately $25,000, but is not something
the library counts on for funding.
Mr. Everett said if they did add 720 patrons, they would not need to hire additional staff.
Councilor Woodrow said there should be a way to get cards out to those people in the school district.
Mr. Everett said that is an important policy decision for Council.
Councilor Woodrow said she doesn't see a drawback in providing cards to Springfield School District
students who live outside of City limits. She said although there are changes in information sharing at
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the library, it is still a social hub for the community. That has always been a bottom line of the library.
The positive differences in the library since Mr. Everett became director have been phenomenal. She
thanked him for his energy and positive attitude toward the growth of the library.
Councilor Wylie agreed. She asked Mr. Everett to list several ways libraries are changing and how
Springfield is keeping up with those types of changes.
Mr. Everett said the more services offered on the library website becomes a service point. People do
many transactions with the library online so people aren't coming to the library to do certain things.
The Springfield Library is open more hours than the Oregon Employment Division and has faster
computers. Many people come to the library to look for work, take their food handler's license, look
for housing, look for social services, and much more. Chief Education Officer for the State of Oregon,
Nancy Golden, spoke to the Rotary Club a couple of weeks ago regarding the gateway skill. The three
tenets of education are entering kindergarten ready to read, establishing reading skills by the third
grade, and then college. The Springfield Library addresses the first two of those. Springfield has made
concerted effort to make their programs match the curriculum and initiatives of Springfield schools.
Literacy is even more important today.
Councilor Ralston said he is not sure the students outside city limits will use a library card.
Councilor VanGordon said he would like to start that conversation and work with other partners in
Springfield to get grants to help address the need. He is not sure how many people will use it and how
much it will cost or if it is cost neutral.
Councilor Ralston said he used the school library when young. He asked about the school libraries
Mr. Everett said all schools had libraries, but many did not have librarians.
Councilor Ralston said it seems like there needs to be partners. Reading is vitally important for
everyone. He is surprised schools don't have librarians.
Mr. Everett said the schools have very limited budgets. When they did the Battle of the Books, schools
didn't have the funds to provide the books.
Councilor Ralston said if they want a library, someone has to pay for it. It should be a collaboration of
interested parties that solves that. He wants to know if the students outside city limits would use a
library card if they had one.
Councilor Pishioneri said he would like to know what it costs to administer a program to get those
cards out to those not in city limits. Academics of the students are the school's responsibility and the
City has an obligation to serve the community. If the school will pay the administrative costs, the City
can provide the service.
Councilor Moore said Lucinda Gustayson's teen program is one way of getting people through the
door. Ms. Gustayson went to the schools and got to know the students. There are also foster families
that might be outside city limits that could benefit from a library card. There are other programs that
serve those kids that the library could connect with and find ways to help serve those kids.
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Mr. Everett said during the Gift of Literacy, each student gets a library card for one year. They are
trying to bring them back to remind them about the library at the beginning of each year.
Mayor Lundberg said she is in favor of the library cards and that they should have something in their
packets at the beginning of the school year to encourage them to go to the library. Libraries are
changing and are now our information center where people can go to rill out job applications, look for
housing, get food handlers card, etc. People need a library card to access those services. The half-life
on a skill is five years. The teen class in being held is an example of using the library as a training
service. Perhaps the library could provide hot spot capability with the library card in neighborhoods
that don't have access. They need to get literacy at ground level and be able to train the workforce.
She noted the concept of "One stop shop for community development". As they go into strategic
planning, the library needs to look at the Council goals and match the library goals to those. Look at
the end of the report at the steps for making those changes. When we expand what we are and what
people think of us, we bring in more people.
3. Review of Transportation System Development Charge (SDC) Proposed Fees and Implementation
Options
Anette Spickard, Deputy Development and Public Works Director, presented the staff report on this
item. She introduced Deb Galardi, consultant on this project.
On December 1, 2014 Council is scheduled to continue the public hearing that opened on October 20,
2014 and adopt resolutions to implement the City's Transportation SDC methodology, project list, and
fees. Council's direction is requested at this work session for the effective date and amount of the new
fee in order for staff to prepare the appropriate resolution language for the December 1, 2014 public
hearing.
Staff has completed an update to the City's Transportation SDC methodology, project list and
proposed fee using the Transportation System Plan, the recommendations made by the council -
appointed citizen's advisory committee and the direction received from Council on May 19, 2014 and
June 16, 2014. The methodology, project list and proposed fee have been available for public
inspection, both in hard copy and on the City's website, since August 20, 2014. Interested parties
have been notified of the methodology update per ORS 223.304(6). To date no formal comments have
been received by staff. Council opened a public hearing on October 20, 2014 and is scheduled to
continue that hearing and a vote to adopt resolutions to implement the methodology, project list, and
fees at the December 1, 2014 regular session.
The maximum allowable fee derived from the new methodology and project list is $340.38 per trip
end. The current fee is $268.35 per trip end. This equates to a $72.03, or 26.8%, increase. The
citizen's advisory committee recommended a maximum increase of 151,10 which equates to a $40.25
increase. Staff proposes the following implementation strategies as options for Council to consider:
1. Implement the full fee of $340.38 effective January 1, 2015
2. Implement the full fee of $340.38 effective July 1, 2015
3. Implement a 15% increase to $308.60 effective January 1, 2015 and the full fee of $340.38 on
July 1, 2015.
4. Implement a 15% increase to $308.60 effective January 1, 2015.
5. Implement a 5% increase to $281.77 effective January 12015 and consider additional
increases at a later time.
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Councilor Ralston said it's not something they want to do, but need to do. They made a large increase
in 2008 to recover costs. He would support the third option. It could be incentive for developers to get
in on the lower rate.
Councilor Pishioneri understood it cost money to run the City, but noted that if they went with the
highest figure it was over an 18% average increase over the last 4 years. He didn't feel they could
justify those types of increases per year. At the full allowable rate, a new single family residential
property would cost about $700 more than it would have prior to 2008. He understood the phasing in
process. They could also look at holding costs down. In the report, it sounds like they need to increase
the fee by 26% in order to remain status quo.
Ms. Spickard said what is driving the new costs is the updated Springfield Transportation System Plan
(TSP) project list. The projects on that list that are attributable to growth are in this methodology. She
described the calculations for coming to the rate. The basic intent of the SDC was to cover some
portion of the infrastructure needed for new development.
Councilor Pishioneri said he can't support the full increase because it is basically a 75% increase since
2007. That is an addition of $700 per construction. The fairest was to keep the SDC as small as
possible now and look at it every year or so.
Councilor VanGordon asked how much the City was raising the SDC based on the construction price
index (CPI) each July 1.
Ms. Spickard said it fluctuated from year to year. There was a time when the cost of materials was
low, but that has turned around. Staff could find out the average increase and let Council know.
Mr. Grimaldi said in looking at the project list, the bike path in Glenwood was added per Council
request. There are also projects in the Gateway area that will need infrastructure if the urban growth
boundary is expanded in that area.
Councilor VanGordon said part of the cost is due to the Council adding things to the project list.
Ms. Spickard said in the past methodology, Franklin Boulevard was a state highway, but the
jurisdiction and responsibility has now been transferred to the City. To pull together these large
projects is very costly.
Councilor VanGordon said he is good at going with the 15% increase. He is not sure he wants to see it
staggered out six months, but would be interested in seeing another staggering option perhaps over
three years. It's important when revisiting this that the fee and the project list are connected as a
reminder of the effect the list has on the fees. He asked if they had a document for developers that
easily explains how they came up with methodology. That provides transparency and mutual
ownership. The write ups comparing the costs that are in the packet are confusing. He would like to
be able to compare the figures of current costs and proposed costs next to each other.
Councilor Pishioneri said this was done backwards by creating the list first and then looking at the
SDCs to cover the costs. Franklin Boulevard now shows four roundabouts when it used to have three.
Each of those is very expensive and now they are telling developers they are going to pay for them. To
minimize the impact, the project list should be considered. He agreed that the League of Oregon
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Cities (LOC) chart was difficult to decipher. He asked how Springfield rated in the state for SDC
rates.
Ms. Spickard said currently Springfield is in the middle. If they increased it to the highest percentage,
Springfield would be slightly higher than the middle. Many cities are in the process of considering
increases.
Ms. Galardi said Springfield is currently below the middle, and the increase would put us just above
the middle. If the other cities increased, Springfield would likely remain in the middle.
Ms. Spickard said Springfield is very comparable to Corvallis and Salem, but higher than Eugene. If
Council adopted the full increase, Springfield would remain comparable to our neighbors along I-5.
Councilor Pishioneri said he is opposed to the large increase.
Councilor Moore said it is hard to figure out comparable because each jurisdiction does things
differently. She would like to see the comparison with 15% rather than the maximum.
Ms. Spickard said if they adopted the 15% increase, the City would forego about $5 million over the
twenty year period, which isn't a lot.
Councilor Moore said she is trying to get an overall picture of all the fees. She noted the sewer fees
Ms. Spickard said the City did a comprehensive SDC update for all systems in 2008. The next time
Council will see something about wastewater or stormwater will be next time they do another big
Master Planning effort. That could be another year or two. She is not sure of the regional side with
MWMC and if they have anything scheduled. This year, they are only looking at the transportation
SDC because of the adoption of the Springfield TSP. She said she would provide a comparison sheet
for a single family home.
Councilor Moore asked if they could look at another option between 15-26%.
Councilor Wylie said she has concerns that there is a greater global demand for materials, and growth
is expensive. Things are different than they were a few years ago and Springfield is in a rapid growth
period and in competition. Developers will go where there is opportunity and we don't want to get
behind. It is very important to look carefully at the projects on the list. They need to be pretty serious
about what it costs to maintain our community and compete on the global market.
Councilor Woodrow said the project list continues to change, and growth is inevitable. They need to
look at growth and meet the needs of the community and of the growth. She looked at the work that
went into this and is inclined to go with the third option. She feels they need to keep moving forward
so they don't get behind.
Councilor Ralston said this isn't a shopping list, but are things that need to be done and someone has
to pay for it. If the city is going to move forward, this is the system to get those funds.
Mayor Lundberg said she felt 15% is plenty. The list is large and complete, but can change as things
change. The City put off the Jasper Natron Trunk sewer line for a long time because of the economy.
She is comfortable with the CAC's recommendation.
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Mr. Grimaldi said staff needs a number to put into the resolution for the public hearing on December
1. Based on the public testimony, Council can make changes if they choose. It would probably be best
to put in something that might be supported.
The Councilors gave their informal choices as follows:
• Option 3: Councilor Ralston, Councilor Wylie
• Option 4: Councilor Woodrow, Councilor VanGordon, Councilor Pishioneri and Councilor
Moore
Ms. Spickard said the $5 million that would be lost over 20 years equaled about 10% of the projects on
the list. Staff and the Council would need to look at which projects to prioritize. It is important to have
a complete project list, and have it remain flexible. If construction pays for some of the projects, they
would receive credits. She recommends not removing things on the list, but prioritizing as they go
along.
4. HOME Program Update
Tom Boyatt, Community Development Manager, and Molly Markarian, Senior Planner, presented the
staff report on this item. Stephanie Jennings and Denny Braud from Eugene were also in the audience
for this presentation.
Issues identified by Housing and Urban Development (HUD) staff in a recent HOME Program
Monitoring, in combination with rule changes to the HOME program that became effective last
August and shrinking federal funding, have created a situation where HUD is no longer willing to
continue the HOME Consortium on a sub -recipient model.
Springfield is not of sufficient size to receive HOME funds directly from HUD and for many years has
joined with Eugene in a sub -recipient HOME Consortium model where HUD allocates HOME
Funding to Eugene on behalf of the Consortium and Eugene passes through 30% of the Consortium's
HOME funds to Springfield through a sub -recipient agreement to allocate based on its approved
Action Plan and the Eugene -Springfield Consolidated Plan. In the sub -recipient model, the City of
Eugene is responsible to HUD for the proper use and tracking of all funds received, including those
dispersed to Springfield. HUD's recent monitoring of the HOME program in Eugene -Springfield
found multiple issues in the way that Springfield has managed funded projects and Eugene has
provided program oversight. HOME is a complicated federal program that requires significant
technical expertise and staff resources to manage effectively, and for many years Eugene has provided
non -reimbursed staff time to oversee Springfield's sub -recipient activity.
Eugene, Springfield and HUD staff are now considering a Lead Entity model for the HOME
consortium. In this model Eugene staff would administer the entire program, and funds would be
allocated regionally to projects that meet HOME regulatory and match requirements and are ready to
proceed. Springfield now has the choice to work with Eugene in establishing a Lead Entity
consortium or to instead rely on the statewide competitive process to fund projects with HOME
dollars. If the City were to drop out of the Consortium, then annually distributed HOME funds would
decrease by about 28%, and would only be expended in Eugene. Springfield could apply to the State
for HOME program awards in Springfield, and this would be highly competitive and still carry all the
restrictions of the HOME program.
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Staff from Eugene and Springfield are currently discussing what a Lead Entity arrangement might
look like, including: a preferred governance structure between Eugene and Springfield, how to insure
equity in fund distribution across the region over time, and how Springfield can access some portion
of HOME administrative funding to cover a portion of staff costs associated with advancing HOME
funded projects and activities.
Mr. Boyatt said there are three areas of interest by Springfield staff: how funding decisions are made;
what becomes eligible with the rule changes; and what we do with administrative funds. The new
Lead Entity model would be a new decision process of how HOME funds are allocated to the Eugene
and Springfield region by changing ways projects have been screened, prioritized and funded. In this
model a governing body (the two Mayors) would oversee the HOME Program, and there would be a
technical evaluation committee which would evaluate requests for funding and make
recommendations to the governing body. Over time, the governing body would have the
responsibility to ensure the same amount of funds that are currently allocated to Springfield (about
30%) are spent in Springfield.
Mr. Boyatt said the second piece is what is eligible for HOME funding. Springfield used to use funds
for down payment assistance, but that is no longer going to be a practical use. The HOME program is
moving towards last gap funding and needs to be spent within 18 months of allocation. The property
standards have gone up so it would be nearly impossible for Springfield to use HOME funds for down
payments. The City would have to look at ways to fill that need elsewhere.
Mr. Boyatt said the third part is staff cost reimbursement. Typically, 10% of the funds can be used for
administrative costs, although it rarely covers all of the costs. The new model could be more efficient,
but the 10% would still not cover Eugene's costs so other funds may need to be found to support the
program. There is always opportunity and there are several upsides to the new model. The challenge is
getting the policy structure in place. The alternative is to step out of the consortium meaning 28% of
the funding would no longer come to the metro area. If Springfield stepped out of the consortium, we
would be competing with the rest of the State for HOME funds. The staff perspective has been to
continue with the program and work out a system to bring 30% to Springfield projects.
Councilor Ralston asked for clarification on Springfield receiving 30% over the course of a period of
time, such as five years.
Mr. Boyatt said if there is $1M/year, over a ten year period, Springfield would expect to receive $3M.
Springfield would still need to work with housing providers and other eligible applicants for projects
that could qualify. This formula could put more HOME Funding into single projects as they qualify.
Councilor Ralston said he would support this if the consortium said a certain percentage will be spent
in Springfield, but there is no guarantee. Eugene and Springfield do things differently — Springfield
focuses on home ownership and Eugene focuses on low-income subsidized housing. He wanted
something to insure Springfield would get a set percentage.
Mr. Grimaldi said the advantage of spreading it out over a long period of time opens it up for larger
projects. They will be relying on the system to balance it out between the partners.
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Councilor Ralston said the big projects are low-income housing projects and doesn't target the type of
programs in Springfield. Eugene land banks property and Springfield does not, which gives Eugene an
advantage. It will take a long time for Springfield to land bank property.
Councilor VanGordon said he understood the advantage of the long term, but worried Springfield
would have years when we wouldn't get anything. He asked if it is possible to guarantee an amount to
Springfield annually, while still maintaining the 30% over the time span of ten years.
Mr. Boyatt said they will not be able to guarantee a certain amount annually. Their choices are to look
for another arrangement with Eugene or step out of the consortium The idea of the governing body is
meant to provide some assurance of equity of distribution over time. They will be relying on the
housing project developers to come up with quality housing projects and promote those into the
funding system. Staff would have an enhanced focus of working with the housing providers to present
projects that can be ready for funding and competitive during that time frame.
Councilor VanGordon asked there could be a model in which 30% will go to Springfield over 10 years
with 15% going to Springfield on an annual basis.
Mayor Lundberg said this is not like transportation funds. The whole basis of how we are doing things
is changing and is now rental focused for projects that are not just shovel ready, but ready for the last
source of funding. It also has to be spent in 18 months. We have the same four or five providers in
both communities and they will be looking at the best place in both cities. We can say we want a
certain amount of funds, but it will depend on where the projects are in the community. The money is
not as important as the project and being able to make sure the developers have what they need to have
a Springfield location. It does change Springfield's focus from home ownership. The hope is that
with the governance from both cities, and the technical committee, Springfield will get a portion of the
funds. If not, Springfield can step out of the consortium.
Councilor VanGordon said he agrees that the goal should be that Springfield does get a share of the
funds. He wants to stay in more than he wants to walk away. He has concerns about the transparency
and the Council having the opportunity to see the applicants. Once they have more details, he may feel
more comfortable.
Mr. Boyatt said they haven't worked out all of the details yet.
Councilor Pishioneri said he is fine staying with the consortium. The number of years is ambiguous at
this time, as are the percentages for each city. He asked if Eugene would get less if Springfield
stepped away.
Mr. Boyatt said the 70/30 split has been traditional between the two cities. If Springfield opts out,
Eugene will get a little more (about 72%), which would be limited to their jurisdiction.
Councilor Pishioneri said Eugene does not have a fiduciary advantage to keep Springfield as a partner
so Springfield doesn't have much to lose. He feels we should try to work with this the best way
possible to try to get funds to help the City of Springfield. If we can't get the funds, we can step away.
Councilor Moore said it is a regional issue, as is the cost of housing. She doesn't think we have
anything to lose by partnering with Eugene in this consortium. It is going to be set up with both
governing bodies participating and with a process.
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Councilor Wylie said she has a lot of faith that the two mayors and staff can look at the needs of the
community. She liked that they could possibly fund larger projects. She would like to see how it could
work with the two cities.
Councilor Ralston said Springfield could still apply for funds on their own if they were not part of the
consortium. He is not seeing they should get out of it until they see how it works. He doesn't like
how it looks at this time and is not confident it will work out. He would be more supportive if they
could find a way to help with home ownership.
Councilor Pishioneri said he didn't want to give up the program for down payment assistance and look
for other funding. Doing that could broaden what the City is currently providing.
Mr. Boyatt said staff has not given up on down payment assistance. Community Development Block
Grant (CDBG) funds are suitable for that purpose.
Councilor Woodrow said she wanted to know if the City was precluded for applying at the State level
if they stayed with the consortium.
Mr. Boyatt said if Springfield is part of the consortium, they can't go after the State HOME funds, but
could apply for other funding opportunities. Staff will get back to Council with other opportunities and
if being part of the consortium is going to be a liability.
Mayor Lundberg said she is disappointed with HUD. CDBG is oversubscribed each year and it is hard
for the Community Development Advisory Committee (CDAC) to make their choices. It's hard to add
another program to the CDBG pot. She wants to make sure that language is included in the
intergovernmental agreement (IGA) that they will revisit this in a year or so and determine any issues
and how it is working. She wants the team that looks at the applications to be as technical as possible.
Springfield may want to consider landbanking to be in a better position. In the past, Springfield had
used HOME funds as loans rather than grants which gave the City the opportunity to get the money
back to use again.
Ms. Markarian said Eugene structures theirs through forgivable loans. She can look into that further.
Staff was directed to move forward with development of the consortium and the IGA.
5. Jim's Landing Residents
Mayor Lundberg said this item was added to the agenda and related to the recent fire and evacuation at
Jim's Landing. The City provided a couple of days' worth of vouchers to the residents for being
displaced, but additional help is needed.
Mr. Grimaldi said twenty -plus individuals ranging from toddlers to the elderly have been displaced. It
is a population that doesn't fit neatly into the social network, and housing resources are also sparse.
The City provided some initial vouchers to keep people housed for a couple of days, but they now
need to provide additional vouchers for the short-term. They are also looking at long-term solutions.
There is a possibility of the City coming up with some assistance so people can qualify for market
rental housing. That assistance would likely go towards first and last month's rent, or a deposit. The
City can't meet 100% of everyone's needs, but would like to do what they can. He is asking
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permission from the Council to spend up to $25,000 to provide assistance to these residents, and
possibly contract through Catholic Community Services who are equipped to handle people in need of
housing. Springfield Management Analyst, Neil Obringer, is available to answer questions.
Councilor Ralston asked how much the vouchers cost the City and where they got the funds
Mr. Grimaldi said the funds came from the General Fund Reserves. The last set of vouchers was for
$40 and $60 per night.
Councilor Ralston asked why this is the City's problem and not the responsibility of the owner of the
building.
Mr. Grimaldi said they have not been able to make the owner responsible. It is a choice whether or not
the City provides assistance.
Councilor Ralston said the voters of the City just voted down $27,000 for the Council to get a stipend,
yet now the City is looking at this cost.
Councilor VanGordon asked how many individuals are affected.
Mr. Obringer said there is not a written list, but anecdotally they believe there are 26 people that have
been displaced.
Councilor VanGordon asked how many had transitioned into something more stable.
Mr. Grimaldi said we haven't heard of anyone who has made that transition yet. There is one person
who chose not to take a voucher and is living on the street. Some people are living temporarily with
relatives. There is a wide variety of situations.
Councilor VanGordon said it sounds like a majority of residents have not transitioned to something
permanent. He supports allocating the $25,000.
Councilor Woodrow said the City is confronted with a situation where we step in to take care of our
own when we can't make the appropriate person responsible. This gives us an opportunity to help out
and help stabilize some living situations, or at least give the residents the chance to try. If they can
help any of the residents, that is something. She doesn't want to see the City step back because we
can't help everyone. She feels compelled to approve this amount of funding to see how we could help.
It may be just the thing to get someone into a better living situation.
Councilor Woodrow asked what type of assistance will be offered.
Mr. Obringer said Catholic Community Services (CCS) has access to and an understanding of the
affordable housing in the area. Many of the individuals have appointments to speak with a social
service worker at CCS. From that initial meeting, they will go into the county's long-term waiting list
and find out what other resources are available to them. The wait list for subsidized housing is long
and the biggest barrier to moving people into a home at market rate is the first/last and the deposit. In
meeting with the residents today, they voiced that was a big issue for them. CCS will determine what
resources can be available and help coordinate residents with market rate rentals.
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Councilor Wylie asked if the City is providing moving assistance.
Mr. Obringer said discussions have been held about storage units or moving assistance, but that has
not yet been set up.
Councilor Moore said she appreciates that hometown feel and that we are a community. She
suggested the Mayor ask the community to step up and donate to this issue and see what type of
response they receive. The $25,000 is a step to getting help for the residents.
Councilor Ralston asked how long $25,000 would last
Mr. Grimaldi said it will depend on how it is used.
Councilor Ralston asked how long they would allow people to get vouchers to stay in a hotel.
Mr. Grimaldi said they would spend $25,000, and once those funds are expended they will re-evaluate.
Councilor Ralston said he is fine with the assistance, but wants to make sure people don't take
advantage. He compared it to mobile home parks closing and people having to relocate, which is the
developer's responsibility. He liked what Councilor Moore said about putting it out to the community
for assistance. He wants to do what is right, but does not want to set a bad precedence.
Mr. Grimaldi said over his years in Springfield, this is the largest eviction. It is very uncommon.
Councilor Pishioneri said this is unique as it is an emergent, unsafe situation rather than a normal
eviction. He asked if the individuals residing in those apartments had been identified so others could
not come in claiming to be a resident. He asked how many units are in the building.
Mr. Grimaldi said the residents had been identified. There are 20+ units.
Councilor Pishioneri said if the funds are divided equally, it will be about $1250 per unit. He asked if
the City could reach out to the major rental properties and ask those principals if they could make
concessions in the deposit, first/last, or rent. That could help free up some of the money. He
suggested that the deposit money be returned to the City, or be provided by the City as a no -
percentage loan that could be refunded to the City when the resident moves out. He asked if there
have been violation citations by the Fire Marshal to the landowner.
Mr. Grimaldi said that is still being evaluated.
Councilor Pishioneri said the City should seek reimbursement for the costs as a loss to the City,
possibly through a lien on the property. The City needs to do what we can to assist, and agrees we
should partner with CCS, St. Vincent DePaul, and Goodwill. They may find that the property
management folks are receptive to some concessions.
Mayor Lundberg said she would like to pursue whatever the City can do in regard to the property
owner. The City had to remove people from an unsafe location, but it is the owner of the property that
put the people in that situation and it is unacceptable. Each of the residents is in a different situation.
CCS has volunteered to do the initial triage. The Mayor, Mr. Grimaldi and Mr. Obringer met with
residents today to try to address the most immediate needs. These funds would be that stop gap to get
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people to get through CCS, figure out a solution and get people into a setting that is safe. The Council
members, such as Councilor Pishioneri, that know multi -plus property owners can also make those
calls.
Councilor Pishioneri said he can make some initial calls. If the $25,000 is not quite enough, he is fine
with an additional 10% or 15% to complete the process. He asked that they keep it reasonable.
Mr. Grimaldi said some funds have been spent so the $25,000 would be an additional amount.
ADJOURNMENT
The meeting was adjourned at 8:10 p.m.
Minutes Recorder — Amy Sowa
4�Christine L. Lundberg
Mayor
Attest:
Amy Sow
City Recorder