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HomeMy WebLinkAboutItem 08 Council MinutesAGENDA ITEM SUMMARY Meeting Date: 12/7/2015 Meeting Type: Regular Meeting Staff Contact/Dept.: Amy Sowa Staff Phone No: 541-726-3700 Estimated Time: Consent Calendar S P R I N G F I E L D C I T Y C O U N C I L Council Goals: Mandate ITEM TITLE: COUNCIL MINUTES ACTION REQUESTED: By motion, approval of the attached minutes. ISSUE STATEMENT: The attached minutes are submitted for Council approval. ATTACHMENTS: Minutes: a. November 9, 2015 – Work Session b. November 16, 2015 – Work Session c. November 16, 2015 – Regular Meeting DISCUSSION/ FINANCIAL IMPACT: None. City of Springfield Work Session Meeting MINUTES OF THE WORK SESSION MEETING OF THE SPRINGFIELD CITY COUNCIL HELD NOVEMBER 9, 2015 The City of Springfield Council met in a work session in the Jesse Maine Meeting Room, 225 Fifth Street, Springfield, Oregon, on Monday November 9, 2015 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. Community Development Advisory Committee (CDAC) Interviews. Erin Fifield, Development Analyst, presented the staff report on this item. The Community Development Advisory Committee (CDAC) advises Council on matters related to the City’s housing and community development activities funded by federal Community Development Block Grant (CDBG) dollars, for the purposes of benefiting low and moderate-income residents and improving downtown. The CDAC recommends annual CDBG funding priorities and allocations to Council in line with the adopted Eugene-Springfield Consolidated Plan. All three upcoming vacancies have term expirations on December 31, 2015. Two members have served two consecutive full terms, and can’t reapply, per the By-laws. One member resigned this year due to a scheduling conflict. Council is scheduled to appoint new members during the Regular Session on November 16, 2015. The Mayor and Council introduced themselves and interviewed the following applicants: 1. Martha Brandl 2. Scott Chase The Council asked the following questions of the applicants: 1. Why are you interested in serving on the Community Development Advisory Committee (CDAC)? (Mayor Lundberg) 2. Describe your professional and personal experience as it relates to your desire to become a CDAC member. (Councilor Moore) 3. Describe your familiarity with Springfield’s affordable housing and community needs resources. (Councilor Woodrow) 4. What is it about affordable housing and community development that interests you most? (Councilor VanGordon) 5. What skills and abilities do you bring that will contribute to an effective community advisory committee? (Councilor Ralston) 6. Describe your style of communication and your approach to consensus-making. (Councilor Wylie) 7. What does an economically and socially vibrant Springfield look like to you? (Councilor Pishioneri) City of Springfield Council Work Session Minutes November 9, 2015 Page 2 Isabelle Mathews was not able to attend the meeting to be interviewed. Mayor Lundberg said there were several points of discussion, including the fact that Scott Chase is currently serving on another City Committee. She noted some of the questions and asked that in the future, a question could be added that is more geared towards the financial aspect of serving on the CDAC, and how to prioritize allocating the funds. Councilor Ralston said he did not have an issue with Mr. Chase serving on another City committee. Discussion was held regarding Mr. Chase serving on both the Springfield Police Advisory Committee (SPAC) and the CDAC. Council decided to wait until they could interview the third applicant to make a final decision. Ms. Fifield said she would reschedule the interview with Ms. Mathews. 2. Mobile/Manufactured Home Park Information. Senior Management Analyst Courtney Griesel presented the staff report on this item. The City, not unlike other communities, is grappling with a large population of residents (estimated 1,400), owners and renters, living in mobile and manufactured homes in parks across the urban area. Many of these parks and/or structures are beyond their designed life, distressed and facing infrastructure failure, park overcrowding, informal agreements between park owners and structure owners and renters, and impacts of redevelopment where the park is on non-conforming industrially zoned and/or on privately owned land. These factors create an environment where park residents may be at risk of being displaced and municipalities and regional service providers may be unprepared for the sudden impact to a group of residents requiring housing assistance. In order to address these universal concerns, staff partnered with HUD and the South Willamette Valley Regional Solutions Team (SWVRST) to host a state-wide service provider and practitioner roundtable discussion around existing and needed tools and next steps. Immediate action items and tools identified included: • Mobile Home Park Owner Annual Training Promotion and Follow-Up • Convening of Current Funders and Resource Providers to Mobile Home Parks • Development of a Decision Tree • Creation of Rapid Response Teams and Team Structure • Statewide Transition Specialist Role Based on these items, the City, supported by HUD and the SWVRST, is requesting formal designation by the Governor’s Office as an Oregon Solutions (OS) project to create a formal action plan and ‘tool kit’ which might be available to a jurisdiction faced with sudden notice of park closure. The OS project will result in the creation of a sequence of ‘best practice’ steps to help the impacted jurisdiction implement a formal park-specific action plan and rapid response team to manage communication, engage service providers, streamline local and state process and paper work, and request any additional assistance needed during the initial sensitive stage directly following receipt of closure notice. This solution is intended to be used as a template and foundational action plan for jurisdictions across the state. This work is expected to take place throughout the next 12 months with multiple updates to Council. City of Springfield Council Work Session Minutes November 9, 2015 Page 3 Councilor Moore said she had heard compliments about Ms. Griesel pulling together the roundtable discussion and coming to an outcome. This is a statewide issue. Councilor Ralston said he wants to make sure that whatever solution is found, it does not find that the City or government agency is financially responsible for relocations. If a park closes, it is up to the park and tenants to work out a solution. He is excited about the opportunities presented. Councilor Pishioneri said these are opportunities to upgrade people’s living conditions and an economic opportunity for the City. He would like to be able to use Economic Development funds to make things happen if it is possible or needed, as long as there is a return on tax money. Ms. Griesel said during the roundtable those issues were addressed. The discussion continued to come back to the fact that the City and State would get the calls and we currently have no process for handling calls and directing people appropriately. Councilor VanGordon said it is an important issue and he is glad the City is working on this and some progress has been made. He asked what the deliverable would be at the end of twelve months if the OS designation was received. Ms. Griesel said they have proposed a rapid response action structure. It would be an action plan that once triggered would create a series of solutions based on circumstances. It helps navigate the existing resources in the State and jurisdictions. In order for that to occur, all of the service providers need to know how this works and be on board. In theory it could work for any mass closure of housing. Councilor VanGordon said decision trees are very linear and structured, and he felt they needed more flexibility. He shares Councilor Ralston’s concern about tax dollars, but also knows that if it happens we need to do what we can. The final tool kit needs to be something very useful. The meeting notes identified three scenarios. He suggested collapsing those into two scenarios to get a simpler tool kit. Ms. Griesel said the tool kit may or may not use the scenarios. Councilor Woodrow said each community in Oregon is unique, with unique situations. The tool kit needs to be adaptable to each community’s needs and not penalize them if they don’t use something. Councilor Moore asked if this would address a situation similar to Jim’s Landing. These are our citizens and we should try to help out where we can. Ms. Griesel said the group agreed those types of issues are examples where this could be a response for staff. Regardless of who is responsible, governments will get the calls and be responsible for passing that call to the next service provider as appropriate. The easier the process, the better. In many cases, the structure of a mobile home park is similar to the structure of an apartment dwelling. Mayor Lundberg said Ms. Griesel had done an excellent job and Springfield is the leading example in Oregon in terms of how to deal with an issue that is a statewide issue. We can help direct what transpires. There are many mobile home parks in Springfield and we haven’t had a plan in place to address a closure. No matter who pays, you still have citizens who come to the government for help. This is a way to approach what we can do and find solutions. It opens up many opportunities to figure out housing for all of our citizens and how we use our land. Many good things result from this tool kit. It also makes us prepared when people come and need help. City of Springfield Council Work Session Minutes November 9, 2015 Page 4 Councilor Moore asked if it would help with the application if a support letter was included from the Mayor or Council. She said she would be happy to provide something if needed. Ms. Griesel said a letter was being drafted for the Mayor’s signature, but others would help. Councilor Ralston asked about notification required if a mobile home park closes. Ms. Griesel said in a standard closure, the park owner has to give residents a one-year notice, and some monetary assistance. The monetary assistance is not enough to cover cost and only applies if the resident owns the structure. There are still a large percentage of renters in the parks. Mayor Lundberg said Council was supportive of staff moving forward with their work. 3. Potential Regulations of Medical and/or Recreational Marijuana. Mary Bridget Smith, City Attorney, presented the staff report on this item. In November 2014, Oregon voters approved Measure 91, the Control and Regulation of Marijuana Act, which legalized the growth, sale, and use of marijuana for recreational purposes. Currently, registered medical marijuana dispensaries are authorized to sell medical marijuana to medical marijuana cardholders and recreational users over the age of 21. Beginning in January, Oregon Liquor Control Commission (OLCC) will accept applications for recreational marijuana business licenses. The 2015 Legislature adopted HB 3400, an omnibus bill that amends the Oregon Medical Marijuana Act (OMMA) and Ballot Measure 91. Additionally, the Legislature adopted HB 2041 (2015), which revised the tax structure for recreational marijuana and SB 460 (2015), which authorizes early sale of recreational marijuana by medical marijuana dispensaries. Under HB 3400 and home rule authority the City has a number for options for regulating marijuana. Whether to regulate is a local choice. Ms. Smith described the three different form of regulating marijuana—tax, business license, and land use – and how those can be addressed. Through tonight’s discussion, Council can then identify where gaps may exist between what state law allows and what the City wishes to further restrict. Councilor Ralston said he supports the medical marijuana program and does not want to tax medical marijuana because we don’t tax other medicines. He would also not like to go to the voters to support a 3% tax in recreational marijuana since we already get a share from the State. Mr. Grimaldi said the tax amount from the State is based on the number of establishments. Councilor Pishioneri said he is not in favor of taxing medical marijuana, but supports taxing retail recreational marijuana. He would like to look at the amount we would receive and where they are to be dedicated. He feels the voters would pass it if the City identified where the funds would be allocated. Councilor VanGordon agreed there should be no tax on medical. He would like more information on a tax for recreational marijuana, how it would work, and where the funds would go. If they are going to go to the voters for this tax, they need that information. City of Springfield Council Work Session Minutes November 9, 2015 Page 5 Councilor Moore said she would like information on the following: if the taxes we receive from liquor and cigarette sales are designated to a particular fund or just into the General Fund; and how the liquor and cigarette taxes were collected or distributed. Councilor Woodrow said she was not in favor of taxing medical marijuana. She could be in favor of taxing recreational marijuana, but would want to know how it is collected, how much we would collect, and if it would be worth collecting in terms of our cost to collect. Councilor Wylie asked about the status of the Council vote to tax marijuana. Ms. Smith said when Council adopted the ordinance to allow taxation of marijuana it was to give the City some flexibility. They approved the authority to tax, but did not set an amount. With the new legislation regarding going to the voters to implement a tax for recreational marijuana, she would recommend referring it to the voters. Councilor Ralston asked how much revenue a tax on recreational marijuana would bring into the City. The only way he would support such a tax is if it went towards something to get the City off one of our levies. He would like to see the revenue projections less the cost to collect. Ms. Smith said they would have that information before referring something to the voters. Mayor Lundberg said she does not want to tax medical marijuana. She spoke regarding the other aspects for Council consideration. She is in favor of the staff recommended zoning. Ms. Smith confirmed that Council did not want to tax medical marijuana, but wanted more information about potential revenue for recreational marijuana, the process and where the funds could be allocated. Another consideration was to implement a business license for recreational marijuana. There are different type of owners for recreational – retailers, wholesalers, processors, and growers – and it might be helpful to know what types of businesses are in the City when looking at a potential tax. Councilor Ralston said currently medical marijuana dispensaries are selling recreational marijuana and already paying a business license. He asked if they would have to pay two business licenses. Ms. Smith said medical marijuana dispensaries under the temporary rules are able to sell recreational marijuana because the State won’t be able to issue the licenses until later in the year. She is asking if the Council would like to have a business license for those recreational businesses that will be regulated by the Oregon Liquor Control Commission (OLCC). It would help identify where they are located and the type of business they are running. Mayor Lundberg said when someone gets a liquor license, it has to go through the City and there is a fee. She would like the same process for recreational marijuana. Councilor Pishioneri said it would also help by monitoring police calls. Ms. Smith said she will check with the OLCC about their process and how it connects with the City. It does in the land use. City of Springfield Council Work Session Minutes November 9, 2015 Page 6 Mayor Lundberg said they need to look at what the City will do separately because it is different from liquor because of the different types of businesses. She is most interested in zoning and where they are located. Councilor VanGordon said he was comfortable keeping licenses for both medical marijuana and recreational marijuana. He asked about consumption of power for growers and the impact on the power grid. He asked how we get information on that and the impact on Springfield Utility Board (SUB). Mr. Grimaldi said another issue with growers is the odor that can impact neighbors. Ms. Smith said those were more land use issues, and have been discussed by staff. Councilor Moore said they should look at implementing significant code enforcement and fines for those violating laws to help track problem areas and issues. Ms. Smith said there are two types of violations. The first are around licensing violations and the second are for land use. She will look at both. Councilor Woodrow asked where daycare exists in the zoning. Ms. Smith said State law does not address daycare, only schools. Councilor Woodrow said it is hard to add that in, yet it is a concern. Daycares can come and go in residential area so it makes it difficult to monitor and use as a buffer area. Ms. Smith said they could look at that in regards to different types of daycare. There are daycare centers that are likely to be in commercial or industrial areas; and in-home daycare centers that are in residential only. There could be other laws regarding strictly residential areas that may cover the latter, but she would look into it further. Councilor Ralston said he remembers the maps showing the buffer zones, which left few places for medical marijuana dispensaries. He doesn’t want to be more restrictive than what they decided before for either. Councilor Pishioneri said he has seen a number of shops in a short distance on Main Street and would like to see buffers for recreational marijuana. The State law says they cannot have one medical marijuana facility within 1000 feet of another. He would like to have minimum state levels for recreational. It makes sense to have a buffer of no less than 1000 feet from schools, daycare centers and child development centers. He also felt there should be a 100 foot buffer from residential, leaving plenty of opportunity to have private businesses selling recreational marijuana. Ms. Smith said the zoning discussion will assist with the topic of a buffer. Staff can provide maps showing those zones. She asked if the zones in the memo made sense. Councilor Pishioneri said it treated them the same as other similar businesses. Mr. Donovan said this is continuation of a discussion regarding buffers between dispensaries and from residential districts to dispensaries. They had also discussed distance from daycares, parks and transportation corridors. Willamalane was more focused on the parks where children congregate rather City of Springfield Council Work Session Minutes November 9, 2015 Page 7 than the transportation corridors. They will now be adding discussion about recreational marijuana buffers. The maps will show all of the impacts of any buffer options. Councilor Moore said dispensaries are only for dispensing and not for consuming, similar to liquor stores. That is different than a bar where people consume the product. Councilor VanGordon said he is in favor at looking at a residential buffer. Fifty feet seems small and 500 feet seems too big. Councilor Moore said producing and growing also need different regulations. Councilor Wylie said she is concerned about buffer zones overlapping leaving no place for businesses. It is wise to be concerned, but she is more concerned about the odor of growers in residential areas. She wants to be sensible. Mayor Lundberg said she is concerned about extracts and other flammable products. Liquor stores are State run so that is why there are so few of them. There will need to be a robust code around these different types of businesses because there are a lot of issues. Ms. Smith said staff would look into safety and other impacts to neighbors for land use. She asked if Council was fine with staff taking the land use regulations to the Planning Commission first and then back to Council. Council agreed that going through the Planning Commission first was fine. Mr. Grimaldi said the information brought to the Planning Commission will be framed around the issue brought up by Council. Ms. Smith said the State is still working through some of the regulations. Staff will look at the land use options, taking into consideration safety and impacts to neighbors. They will also look at buffers and zoning. This information will go to the Planning Commission and then back to the Council. She will go through Finance to get information for the business license and tax discussion. At this time, dispensaries can sell recreational marijuana until the OLCC gets its registration going for recreational. More dispensaries may start selling recreational marijuana between now and when the City is able to put regulations in place. The first licenses from OLCC will be issued approximately by the 3rd quarter of 2016. Applications will be taken in January 2016. Councilor Pishioneri asked if there was anything we could do to implement a moratorium on recreational sales. Ms. Smith said she would check. Mr. Grimaldi asked if he wanted to put in something very restrictive, and then open it up later. Councilor Moore asked what growers and producers could do in the meantime. Ms. Smith said they would not be able to start growing or producing until the licenses are issued. Councilor Moore said there should be a difference in licensing based on the amount someone is growing or producing. City of Springfield Council Work Session Minutes November 9, 2015 Page 8 Ms. Smith said the current recommendation is to look at a City business license for a recreational retailer and for a recreational grower, wholesaler or producer. They had not considered differentiating by size or quantity. Councilor Moore said she would like to differentiate the license fee based on the amount produced. Mayor Lundberg asked if the State was working on rules for recreational. Ms. Smith said she believed they were. Mayor Lundberg said those people interested in this have their own best interest in mind and will be cautious in case tighter restrictions are put into place later. She would prefer to let the free market run its course while things are being worked out. The City can identify their intentions so people know what they might expect as part of their planning. Councilor Pishioneri said he is concerned that people could use a grandfather clause in court to continue doing business where they start. Ms. Smith said her understanding is that the grandfather rules apply only to medical grows and not recreational. She will look into that further. Councilor Pishioneri said he wants to be confident on the rules that will be coming and let businesses know of the possible zone regulations that would affect their business. Mr. Donovan said recreational facilities cannot get a license yet. The City should have our rules in effect by the 3rd quarter when licenses are issued. Mr. Grimaldi said the buffers currently in place are only those in the State Code. None of the buffers talked about in the Council work session last year are in effect. ADJOURNMENT The meeting was adjourned at 7:04 p.m. Minutes Recorder – Amy Sowa ______________________ Christine L. Lundberg Mayor Attest: ____________________ Amy Sowa City Recorder City of Springfield Work Session Meeting MINUTES OF THE WORK SESSION MEETING OF THE SPRINGFIELD CITY COUNCIL HELD MONDAY NOVEMBER 16, 2015 The City of Springfield Council met in a work session in the Jesse Maine Meeting Room, 225 Fifth Street, Springfield, Oregon, on Monday November 16, 2015 at 6:00 p.m., with Mayor Lundberg presiding. ATTENDANCE Present were Mayor Lundberg and Councilors 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. Councilor VanGordon was absent (excused). 1. Strategizing for Long-Term Fiscal Health Bob Duey, Finance Director, presented the staff report on this item. The City is beginning its third year using the methodology of priority based budgeting as a tool to help focus the allocation of available resources to those services that help most to advance Community and Council goals. For this annual budget process to prove successful it is important that the City has established long-term fiscal targets or performance measurements that support the long-term fiscal stability for both a consistent level of base services year after year and allow for expanded or new and innovative services be planned for in advance. This first work session is concerned with defining the elements that make up a fiscally healthy organization and to begin to identify how those elements could be incorporated into the strategic plan for the City. Council is being asked to provide input on draft Financial Management Policies prior recommended adoption at a later time. Transitioning from traditional to priority-based budgeting involves learning curves for annual budgeting as well as strategic planning, performance measurement, and evaluating long-term fiscal health of the organization. The ultimate goal is to be able to provide consistent services to City of Springfield citizens, now and in the future. In order to realistically assess that possibility, the City needs to objectively identify and establish its long-term fiscal health goals for 5, 10 or 20 years into the future. This discussion, the first in a series on Fiscal Health, is intended to introduce the importance of Financial Policies. Topics will include: • Defining fiscal health • Showing fiscal health’s influence on the annual budgeting process • The City’s current state of fiscal health • How financial policies steer future fiscal health • Review of updated financial policies document Mr. Duey introduced Paula Davis, Budget Officer, who has been lead in the Priority Based Budgeting and Michele Lewis, Budget Analyst, who has been working on the Fiscal Health. City of Springfield Council Work Session Minutes November 16, 2015 Page 2 Mr. Duey said the definition of fiscal health is: “A government is financially healthy if it can deliver the services its citizens expect, with the resources its citizens provide, now and in the future”. The reserves in the City’s General Fund are currently healthy, but the General Fund is not able to provide all of the services citizens want. He used the Ambulance Fund as an example of providing services, but not having a sufficient reserve. It is important to have financial health in order to know what to expect from year to year, and is also important from a credit rating standpoint. The City is susceptible with infrastructure costs, insufficient revenues, and personnel costs. He described each and how we have managed to get through difficult times. Long-term awareness and planning ensure our citizens continue to receive the services they expect. Mr. Duey discussed the Priority Based Budgeting (PBB) and how they have used that to work towards fiscal health. He reviewed how the PBB process worked and the steps Council took to get through that process. Council has done the PBB for two years. This year departments are rewriting the programs and costs of services to better fit what is currently being done. They will then be rated again to see where they fall. Mayor Lundberg said when PBB first got set up, she thought they would look at all of the services and possibly change some that could be done outside of the City, etc. She asked where that was in the process. Mr. Duey said that part of the process has been internal to this point. They have asked departments to do analysis on programs that fell into Quadrants 3 and 4, describe the service and how it fits with the Council goals, and if it could be served outside of the City. It is a difficult task, but they are working through the process. They haven’t found anything to eliminate, but are looking at ways to make some of the programs more efficient. Staff is looking at programs in Quadrants 1 and 2 to find ways to make them more efficient, or determine if they need to increase the program. It will take more years to get really good at this process, but they are making progress. PBB didn’t show what the citizens should be receiving that they currently are not, so they are looking at the fiscal health. Mayor Lundberg said she would be concerned if there was elimination of a program without Council input. She wants assurance those changes won’t be made outside of Council. Mr. Grimaldi said any program change would be vetted through the Council. Mr. Duey said animal control was a good example of a program in Quadrant 3 or 4 that was very important to the Council. They are looking at ways to make the program more efficient or cost effective. Mr. Duey noted the three types of reserve: general reserve, contingency and capital. For reserve policies, they look at best practices (minimum and maximum reserve ranges and reserve replenishment). Staff is suggesting that each reserve consider a working capital reserve, contingency and general reserves. He discussed the four funds of the City: Building Fund; Ambulance Fund; Street System Funds; and General Fund, and charts of each fund over the last five years and looking ahead five years. Staff is starting to establish what each of those reserve funds should be to get the City through tough times. Councilor Moore asked about the chart for the building fund and growing the reserve in that fund. City of Springfield Council Work Session Minutes November 16, 2015 Page 3 Mr. Duey said the City had done grown the reserves in the past, but had no policy in place to ensure adequate reserves in each fund. Councilor Moore asked if the reserve would be maintained at a set level until it was needed. Mr. Duey said it would be re-evaluated as they moved in the future to determine if those amounts were adequate. Councilor Moore confirmed each fund would have its own reserve. Mr. Duey said they have not had a policy in the past to know how much contingency is needed in each fund and how to respond to a downturn. There could be a time when they are overfunded in one area, so it is a balancing act. As an example, the Ambulance Fund is maintaining on its own and starting to build reserves, but in January another drop in Medicare reimbursement is expected so there would be a drop in revenue. He explained how that might be addressed. Councilor Wylie asked if some of these problems should be solved one at a time. Mr. Duey said nothing is urgent, but staff would like to have direction for the Budget Committee meeting during the Spring of 2016. The City is not unhealthy, but this is a good time to build on our strength, making prudent decisions. Councilor Ralston said the Ambulance Fund is one of the more important enterprises and should not be abandoned. He feels we have been cutting costs enough over the years. He would like to see what effect a $5 increase would be to this fund. The fee is reasonable and for a purpose. Mr. Duey said goal is to make this process interactive. He spoke regarding street funds and the funding gap the City is experiencing. Councilor Moore asked about ‘other reserves’ that was listed on the Street Fund chart. Mr. Duey said that could be funds carried over for capital projects. The General Fund has always gotten special attention. The reserves have been maintained through staff reductions, service changes, etc. Staff wants to make sure they have direction to keep the General Fund healthy while maintaining stability. Whatever is done should be sustainable and maintain service levels. Mayor Lundberg referred to the General Fund drivers and that 81% is personnel costs and 10% is indirects and internal charges. In the non-profit world, they try to keep their administrative costs to 5-6%. She used the Community Development Block Grant (CDBG) funds used for emergency home repairs as an example. Ten percent going to administration is a lot of money. She wants to take a look at those costs because they have to take funds from other services. Mr. Duey said the bulk of indirect costs are from stormwater, wastewater, ambulance and others considered enterprise. It also includes the cost of how much it costs to run the City in overhead and divided by FTE. Each employee has a certain share of those indirect costs. He explained further. The indirect cost to CDBG is 18% to run the program. The City caps the indirects from CDBG to the General Fund. Mayor Lundberg said she wants to point these things out for another discussion. She is concerned about how we are doing business. City of Springfield Council Work Session Minutes November 16, 2015 Page 4 Mr. Duey said he will do a written report on how indirects work. Councilor Moore asked about state shared revenues from liquor and cigarette taxes, and if we can anticipate funds from the marijuana tax. Mr. Duey said they anticipate funds, but have no idea how much. Councilor Moore said that might be a place we could see an increase. Mr. Duey said last week during the discussion about marijuana, Council spoke about dedicating those funds to a particular service rather than just the General Fund. Councilor Ralston said it might be helpful to separate indirect and internal charges. Mr. Duey said he could do that when he prepares follow-up information. Councilor Moore asked about the comparison with other cities regarding services provided by Albany and Corvallis. Mr. Duey said the comparison is not apples to apples. Some of the other cities might include a parks department. He spoke regarding financial policies and the document attached to the agenda packet. There are not many changes in the first part of the document. He asked for Council feedback. Councilor Moore asked about the self-insurance and if the City invests those funds in pool funds. Mr. Duey said so far, going with self-insurance has gone well, and reserves have increased since going to that program. They don’t yet know the impact of the Cadillac tax or if we will owe anything. Staff is looking at other possible changes to keep from paying that and minimize impacts. Councilor Moore asked if the State mandate regarding sick leave affected the City. Mr. Duey said our employees are already covered. Mr. Grimaldi said the initial calculation shows we could hit the Cadillac Tax mark in a couple of years. Mayor Lundberg said benefits are part of the 81% of personnel costs. Mr. Grimaldi said the City did not have a Cadillac version of benefits. Health costs are a major driver of personnel costs, but we are not at the Cadillac level. Over time, we project the City will reach the level for that tax as the price of the program increases. He explained that the Cadillac Tax is calculated based on total cost, not the benefit. The purpose of the tax is to fund the healthcare system. Councilor Wylie asked which fund property taxes go to when received by the City. Mr. Duey said most goes into the General Fund, some into the Fire and Police levies, and some into the General Obligation (GO) Bond. He described how we invest our funds and why we are required to do that. Lane County Assessor’s Office transfers our taxes to the State pool account which pays .055%. The number one criterion for investment policy of General Fund dollars is safety. The Retirement Fund has different criteria. City of Springfield Council Work Session Minutes November 16, 2015 Page 5 Mr. Grimaldi said this discussion can be continued at another work session. Mr. Duey said he would provide a copy of the investment policies. Mayor Lundberg asked about transferring funds such as supplemental budgets. Mr. Duey said staff is looking into a new budget system that would reduce the number of funds from 44 to about 21. ADJOURNMENT The meeting was adjourned at 6:57 p.m. Minutes Recorder – Amy Sowa ______________________ Christine L. Lundberg Mayor Attest: ____________________ Amy Sowa City Recorder City of Springfield Regular Meeting MINUTES OF THE REGULAR MEETING OF THE SPRINGFIELD CITY COUNCIL HELD MONDAY NOVEMBER 16, 2015 The City of Springfield Council met in regular session in the Council Chambers, 225 Fifth Street, Springfield, Oregon, on Monday, November 16, 2015 at 7:00 p.m., with Mayor Lundberg presiding. ATTENDANCE Present were Mayor Lundberg and Councilors Wylie, Moore, Ralston, Woodrow and Pishioneri. Also present were City Manager Gino Grimaldi, Assistant City Manager Jeff Towery, City Attorney Lauren King, City Recorder Amy Sowa and members of the staff. Councilor VanGordon was absent (excused). PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Mayor Lundberg. SPRINGFIELD UPBEAT CONSENT CALENDAR Council discussed the item 5a. Councilor Pishioneri said he would like to see the cost of the options to see if the City is using the most cost effective measures. Councilor Ralston asked about bariatric. Mr. Grimaldi said it involves dealing with very large patients between 300-500 pounds. Councilor Pishioneri said looking at the costing, it appeared there are things that are not mechanically or Occupational Safety and Health Administration (OSHA) required. He wants to know what we are paying on extra options. Mr. Grimaldi said some of the items may seem like extra to some, but necessary to others. Ms. Sorenson said the ambulances are the exact same as the ones purchased three years ago. Councilor Pishioneri said with the recent passage of the levy and the public watching our funds, he wants to make sure they are spending the funds wisely. Mayor Lundberg said this would be the same vehicle. She asked if the price was the same as the previous ambulances or if it was higher due to the cost of the bariatric. Ms. McMahan said the one with the bariatric unit, has a piece of equipment that costs about $4200. The equipment puts less strain on the paramedics when loading larger patients. Mr. Grimaldi said they could take some time to identify things that are not standard, or look for things that could help reduce the price. City of Springfield Council Regular Meeting Minutes November 16, 2015 Page 2 Ms. McMahan said they would need to check with the company because they simply provided a price based on the request for proposals (RFP) that was sent out. Mayor Lundberg asked about the trucks matching the rest since they are all one department now. Ms. Sorenson said they have an apparatus committee made up of Eugene and Springfield personnel who put together the specifications for the equipment. The specifications in the RFP were based on the ambulances we have in service and others we have used over the years. They have found that the newest vehicle works best. She is confident that the specifications are there because they work best. The committee spends many hours and weeks putting together those specifications. Councilor Pishioneri asked about the effect of waiting to get further information. Ms. McMahan said it would delay delivery of the vehicles for both cities. Councilor Wylie said we could go ahead and vote now, but could look at getting more information to Councilor Pishioneri later. This may be something to consider next time we order vehicles to get this information to the Council sooner. Mayor Lundberg said it sounds like we need to approve this now in order to get the vehicles. Councilor Pishioneri said he did not want to stall this at the risk of anyone. He would like to have the costing information for this and future purchases. Councilor Moore asked about the life of the vehicle. Ms. Sorenson said it is ten years. 1. Claims a. Approval of the October 2015, Disbursements for Approval. 2. Minutes a. October 19, 2015 – Regular Meeting b. October 26, 2015 – Work Session c. November 2, 2015 – Work Session d. November 2, 2015 – Regular Meeting 3. Resolutions 4. Ordinances 5. Other Routine Matters a. Authorize City Manager to Sign a Contract with Hughes Fire Equipment, Inc. for Purchase of Two Ambulances. City of Springfield Council Regular Meeting Minutes November 16, 2015 Page 3 IT WAS MOVED BY COUNCILOR WOODROW WITH A SECOND BY COUNCILOR WYLIE TO APPROVE THE CONSENT CALENDAR. THE MOTION PASSED WITH A VOTE OF 5 FOR AND 0 AGAINST (1 ABSENT – VANGORDON). Mayor Lundberg asked staff to provide the costing information to all of the Council when it is available. ITEMS REMOVED PUBLIC HEARINGS - Please limit comments to 3 minutes. Request to speak cards are available at both entrances. Please present cards to City Recorder. Speakers may not yield their time to others. BUSINESS FROM THE AUDIENCE COUNCIL RESPONSE CORRESPONDENCE AND PETITIONS BIDS ORDINANCES BUSINESS FROM THE CITY COUNCIL 1. Committee Appointments 2. Business from Council a. Committee Reports 1. Councilor Moore said 1st Baptist Church in Springfield celebrated 150 years of being a church in Springfield. Pastor Jeff Savage held a nice celebration. She did not attend the Veteran’s Day Parade that day, but Corkey Gourley had a nice reception at his office for veterans on Veteran’s Day. She felt Veteran’s Day was well celebrated this year, which was great to see. Mayor Lundberg said she went to Briggs Middle School for a Veteran’s Day Breakfast. Councilor Woodrow said they got a good community response of the week-long events for Veterans. Councilor Wylie mentioned the news regarding the attack in Paris. It is right we are celebrating Veteran’s Day as we are engaged in wars and things could get even more serious. City of Springfield Council Regular Meeting Minutes November 16, 2015 Page 4 2. Councilor Pishioneri said the Metropolitan Wastewater Management Commission (MWMC) is trying to figure out how to pay down a $29.2M revenue bond. They are trying to decide whether or not to pay it off in 5 years which is ahead of schedule, or pay it off completely. Both would mean substantial savings. b. Other Business BUSINESS FROM THE CITY MANAGER BUSINESS FROM THE CITY ATTORNEY ADJOURNMENT The meeting was adjourned 7:25 p.m. Minutes Recorder Amy Sowa ______________________ Christine L. Lundberg Mayor Attest: ____________________ City Recorder