HomeMy WebLinkAbout05/05/2008 Work Session
City of Springfield
Work Session Meeting
MINUTES OF THE WORK SESSION MEETING OF
THE SPRINGFIELD CITY COUNCIL HELD
MONDAY, MAY 5, 2008
The City of Springfield Council met in a work session in the Jesse Maine Meeting Room, 225
Fifth Street, Springfield, Oregon, on Monday, May 5, 2008 at 6:00 p.m., with Mayor Leiken
presiding.
ATIENDANCE
Present were Mayor Leiken and Councilors Lundberg, Wylie, Ballew, Ralston, and Woodrow.
Also present were City Manager Gino Grimaldi, Assistant City Manager Jeff Towery, City
Attomey Joe Leahy, City Recorder Amy Sowa and members of the staff.
Councilor Pishioneri was absent (excused).
1. Reorganization Plan for the Ownership and Operation of the Wildish Community Theater.
City Manager Gino Grimaldi presented the staff report on this item. The Springfield Renaissance
Development Corporation (SRDC) owns and operates the Wildish Theater. While current
revenues have adequately supported ongoing operations, no significant progress has been made
to retire approximately $600,000 in debt. SRDC has proposed the creation of a new non-profit
organization to operate the theater and believes that the elimination of the debt is a key to long-
term success. The SRDC proposal would have the City, Springfield School District and
Willamalane each contribute $200,000 toward the elimination of debt. In consideration, each
entity would become an owner of the facility, is guaranteed priority use of the theater, consistent
with current use patterns, and would appoint members of the new governing board.
At its meeting of March 24,2008, the City Council discussed the SRDC proposal and provided
guidance to staff regarding the future ofthe Wildish Theater. That guidance has been used to
prepare four alternatives (Attachment I included in the agenda packet) for City Council
consideration. In addition to the four alternatives listed in Attachment I, the City Council has the
option of not contributing to the retirement of the debt or accepting the original SRDC proposal.
Resources are available from the funds collected related to the rezone of the former Chambers
property. Those funds were dedicated to the construction of South 320d Street improvements and
other economic development activities. Approximately $2.4 million remains, with about $2
million committed to other projects.
Mr. Grimaldi discussed the four options. He noted that a couple of changes had occurred since
the last time Council had discussed this subject. The first was that SRDC could contribute up to
$100,000 to the retirement of the $600,000. The second was that SRDC would retain
responsibility for the $10,000 debt on the piano if the ownership of the facility went to a new
non-profit.
Councilor Woodrow asked who would own the debt for the $100,000 in Alternative 4.
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Council Work Session Minutes
May 5, 2008
Page 2
Mr. Grimaldi said the new non-profit would own the debt.
Councilor Ralston said he wasn't sure the public knew the City had already given over $lM and
he was not inclined to give any more. The City had significant budgetary problems oftheir own.
He wouldn't support any of the options listed. He wished the public had more opportunity to
give input on this subject.
Mayor Leiken asked how much the City had put in or had been passed through the City.
Mr. Grimaldi said an earmark grant for $396,000 passed through the City. Money that was
actually available to the City to spend in other places was about $622,000.
Councilor Ralston said grant money was still tax money.
Councilor Ballew said she was willing to contribute some additional money and move away
from ownership and operation. She liked the option of a $100,000 gift and a $100,000 loan, as
noted in Option 4.
Councilor Wylie said she supported Option 4 as well.
Councilor Woodrow agreed that Option 4 would be the best. He would like to see the piano paid
off.
Mr. Grimaldi said SRDC felt confident they could payoff the piano loan through fundraising.
Councilor Lundberg agreed with Councilor Ralston that the City had put a lot of money into this
facility. The school district had a lot of investment in the theater as the school and it made sense
for the park district, as the cultural events agency for the community, to own and oversee the
theater. She didn't feel we would be at this place to pay off the loan. In the future there could be
opportunities with urban renewal funds that could be contributed. There were big budgetary
issues that the City had to face and they needed to focus on core services. She would like the
City to step aside from the ' theater. She said giving $100,000 and loaning $100,000 could be
feasible, but she would prefer not contributing more.
Mayor Leiken asked about timing and when a decision was needed for SRDC. He felt it was
important to have all the councilors present to weigh in and Councilor Pishioneri was not at
tonight's meeting. It was not because it was a huge monetary amount, but because of the
symbolism. As the City looked forward at options for downtown, the theater could be a catalyst.
Mr. Draggoo from the SRDC said the sooner the better because of the current interest expense.
The SRDC had reserves available to continue those interest rates for awhile, but not for long
until they would need to raise rates, and they were hoping not to do that.
Mayor Leiken asked if this could be brought back when Councilor Pishioneri was here in a
couple of weeks.
Mr. Draggoo said that would be sufficient for the SRDC.
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Council Work Session Minutes
May 5, 2008
Page 3
Councilor Ralston said he would like two other options when this was brought back to Council:
Option 5) loaning $200,000 to be repaid, and Option 6) don't do anything.
Councilor Ballew wanted to make sure SRDC could repay the $100,000 if it was from grant
funding. Grants were often specific regarding use of funds and whether or not it could be
transferred.
Mr. Grimaldi said the dollars would flow to the new non-profit that had the theater.
Councilor Ballew said she would also like to use part of those funds to take care of part of the
debt.
Mayor Leiken felt it was important to have all councilors weigh in on this subject. He asked
when the other two agencies would be reviewing this proposal.
Mr. Grimaldi said Willamalane would be discussing it on Wednesday, May 7 and the School
District was discussing it tonight.
2. Storm water Program Update.
Environmental Services Manager Susie Smith and Assistant Environmental Services/ MWMC
Manager, Chuck Gottfried presented the staff report on this item. The City's stormwater/drainage
management activities have been evolving since 1999 to address water quality problems and
declining conditions of our open waterways. State and Federal requirements, as well as Council
objectives, have guided these efforts. Over the past nine years, the City has made significant
progress. At the tonight's work session, staff will provide to Council a "State of the Stormwater"
presentation, reflecting the City's progress to date, current efforts, and future issues and challenges.
In 1999 and 2000, staff began to inform the Council regarding the conditions of our stormwater
drainage system, the effects of urban activities on water quality and drainage capacity, and the steps
needed to expand and modify our stormwater management activities. Since that time, Springfield's
stormwater management activities have evolved to recognize the functions and benefits the open
drainage/stormwater system provides to the community, and to address water quality and drainage
problems. This process has been guided by State and Federal Clean Water Act and Endangered
Species Act requirements, as well as the Council's "7 Key Outcomes for Stormwater." These Key
Outcomes, which were endorsed by the Council in 1999, provided the local framework for the
City's fIrst Stormwater Management Plan, 2004. (Attachment A included in the agenda packet.)
Springfield has taken significant steps, and has made substantial progress toward addressing the
challenges. Springfield's Stormwater Management Plan was accepted by the Department of
Environmental Quality (DEQ), which issued the City a StoImwater Discharge Permit in 2007. The
permit and plan enable the City to lawfully discharge stormwater to local rivers and streams, and
address the City's obligation to reduce stormwater pollution "to the maximum extent practicable"
through implementation of Best Management Practices (BMPs) in six focus areas. (Attachment B
included in the agenda packet.) Another milestone recently reached by the City was completion
and submittal of an Implementation Plan to manage specific pollutants under the Total Maximum
Daily Load (TMDL) program requirements of the Clean Water Act. This Implementation Plan,
currently under review by the DEQ, will provide a framework for the City's activities to meet
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Council Work Session Minutes
May 5, 2008
Page 4
mercury, bacteria and temperature reduction goals in our rivers and streams. (Attachment C
included in the agenda packet.)
In November of 2007, staff submitted Springfield's fIrst required annual report to DEQ
demonstrating progress under the discharge permit. While the report demonstrates progress, it also
reveals that weare somewhat behind in meeting the full range of targets that must be met within the
five-year duration of our discharge permit. The City's stormwater management program currently
lacks sufficient staff to address all of the permit requirements and to implement required TMDL
Implementation Plan activities. These stormwater program deficiencies will be addressed in the
fiscal year 2008-2009 budget process.
The May 5th presentation will higWight the range of efforts that have been undertaken across the
City's various Departments....and how the Council's leadership and guidance have translated into
results on the ground. It will briefly touch on forthcoming program requirements, strategies for
regulatory compliance, and identified program gaps. This presentation is intended to be both
informative and thought-provoking, and to serve as recognition and appreciation of organizations,
citizens, businesses, and industries who have stepped up to reduce and minimize stormwater
pollution in Springfield. .
Ms. Smith acknowledged Public Works staff Sonny Washburn, George Walker, and Chuck
Gottfried who were three of the key starting staff on this project. There had also been
cooperative and supportive departments and divisions throughout the city changing the way we
did business. There had been a lot of success and positive feedback from residents and
businesses staff had worked with.
Ms. Smith introduced Rachael Chilton, Public Information Education Outreach staff person who
put together the power point presentation that would be presented. Ms. Smith also noted that Mr.
Gottfried, who had been the original water resources coordinator staff; was recently promoted to
Assistant Environmental Services Department (ESD) Manager, taking over for Al Peroutka, who
was leaving the City the end of May. She said the presentation overlaid the National Pollutant
Discharge Elimination System (NPDES) requirements with Council objectives. She said
following the presentation, Mr. Gottfried would talk about where we were headed next. Ms.
Chilton presented the power point presentation.
Following the power point presentation, Mr. Gottfried said staff would be back in the summer
with a couple of programs for Council consideration. The City's Stormwater Management Plan
had been endorsed since 2004. Staff recently submitted an annual report and proposed a few
changes which they were negotiating with the Department of Environmental Quality (DEQ).
Staff hoped to get DEQ's final comments back by the fall of2008, revise the plan accordingly
and bring it to Council for their consideration. A newer program for Springfield was the Total
Maximum Daily Load (TMDL) Program. This program dealt with temperature, bacteria and
mercury levels. Staff had developed an implementation plan to target those three pollutants.
Most of the measures were refinements of what was in the current Stormwater Management
Plan, but the plan strengthened outreach to businesses, industries and citizens, public/private
partnerships and outreach to schools. The plan had been submitted to the DEQ. Comments from
DEQ were expected later this summer and staff would then bring the plan to Council for
comments this fall before finalizing the plan.
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Council Work Session Minutes
May 5, 2008
Page 5
Mr. Gottfried said a third project, the Storm water Facilities Master Plan, had been in the works
for several years. Staff hoped to have that finalized this summer and ready for Council adoption
this fall. The Storm water Facilities Master Plan focused on infrastructure and capacity for future
development. One other project that was near completion was the basin characterization study.
This would be an opportunity to compile information on surface drainage syst~m, open channels
and geology. This would be online and available to the public and staff to look at with about
twenty-three different map layers including geological issues, topography, and protected
waterways. Mr. Gottfried noted the Mill Race and Metro Waterways projects that were ongoing.
Councilor Ralston said one of the pictures in the power point presentation showed McGowan
Creek. He asked why it was included if it was outside the City.
Mr. Gottfried said the Springfield School District operated Outdoor School at that location.
Ms. Smith noted that it was part of the City's involvement with the school district to teach kids
about clean water.
Councilor Ralston asked about the Q Street restoration project and if the City was going to plant
the additional vegetation in that location.
Ms. Smith said between MWMC's temperature reduction target and the two cities, they were
looking at shading small streams. Q Street had industrial discharges into that stream that were
over 100 degrees. It was an east/west canal which gave it a lot of shading potential if trees were
planted on the south side, providing cooling potential. The submission in the TMDL on this
didn't commit addition funding, but was partnership building with other industries and agencies
to get small streams shaded.
Mr. Gottfried said it meshed with TMDL reaching out to industries. Initial discussions with
Weyerhaeuser had been positive. Staff looked forward to the opportunity to use their skills to
bring the community together and facilitate these types of things that otherwise might be
challenging.
Councilor Ralston asked where the bacteria was coming from and how the issue could be solved.
Ms. Smith said urban animal waste was a big source of the problem.
Mr. Gottfried said water fowl and nutria also contributed to the bacteria. Planting certain plants
would deter ducks and geese from staying in certain areas.
Ms. Smith said some citizens liked to feed the nutria and City staff had tried to educate those
citizens about the problems that could cause.
Mr. Gottfried said part of the education was teaching the public that feeding animals could add to
pollution. He said staff would inventory areas with septic service for bacteria, and educate those
property owners.
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Council Work Session Minutes
May 5, 2008
Page 6
Ms. Smith said staff carried Council's message of community ownership; The core foundation of
their program was education. Staff had received a great response from businesses and residents
and had great success with those partnerships.
Councilor Lundberg suggested partnering with Guy Lee Elementary to get rid of the term 'ditch'
for the drainage area near the school property. She would like staff to partner with the school
using that space as educational. She said she would be interested in seeing a map showing the
storm water system in Springfield, with the major points highlighted. A map could give people'
the concept of where the water went and why it needed to be cold, have oxygen, and be free from
bacteria. It would be a good visual. She would also like staff to use the power point presentation
to educate people. It could be burned onto a CD so people could borrow it if needed.
Ms. Smith said they did have plans to use the presentation for educational purposes.
Mr. Gottfried said one of the measures in the implementation plan included developing sites
adjacent to schools as educational sites. They were very proud of the work done at Agnes
Stewart Middle School and hoped to do the same for other schools. The facility at ASMS had
informational signs explaining the function of the stream. Additional educational signs would be
put up at other locations.
Councilor Ballew asked if there was a problem using the music on the presentation. Staff would
check into that.
Councilor Ballew asked if both wastewater and stormwater had the same requirements for
correction regarding temperature.
Ms. Smith said the best solutions were the same, but the vehicles were different. She explained.
Councilor Wylie asked if an educational campaign was planned regarding disposal of cigarette
butts.
Ms. Smith said nothing was currently planned, but she noted that street sweepers did pick up
some of those.
Councilor Wylie said there should be an educational campaign to bring this to citizen's attention.
Mayor Leiken thanked staff. He agreed that it would be beneficial to use the power point
presentation as an educational tool. The young people in the community understood many of the
issues thanks to their education.
3. Garbage and Refuse Rates.
Mayor Leiken recused himself from this item due to a conflict of interest. The parent company
that owns Sanipac owns the bank where his wife is employed.
Council President Lundberg presided over this portion of the meeting.
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Council Work Session Minutes
May 5, 2008
Page 7
Assistant Public Works Director Len Goodwin presented the staff report on this item. The City
of Springfield has granted a garbage collection franchise to Sanipac Oregon, Limited, of Eugene,
Oregon, under which the City establishes collection rates by ordinance. On April 07 in a letter
from Sanipac' s General Manager Richard Wichmann, Sanipac requested a combined 8%
increase in revenue in the hauler's portion of the solid waste collection rates for all categories of
waste collection.
Sanipac's rates have not increased since April 2003. During that time, consumer prices, as
measured by the Consumer Price Index, all Urban Consumers (Portland-Salem MSA) has
increased by 15.3%. At the time of the last adjustment, staff concluded that the increase at that
time would provide an appropriate rate of return for three years. Under the proposed increase,
the rate for a 32-gallon container would increase to $14.35 and for a 60-gallon container it would
increase to $20.80. For comparison purposes, the equivalent rates in Eugene, after allowing for
the $1.50 recycling credit, which is built into Springfield rates, would be $19.70 for a 32-gallon
container and $34.45 for a 60-gallon container.
Mr. Goodwin introduced Rick Wichmann, General Manager of Sanipac, who was in the
audience. He noted an error in the charts on attachment C. The chart on attachment C showed a
duplication of the County User Rate. He also referred to attachment A, the council briefing
memorandum, page 2, and noted that the alignment on that chart was incorrect. He explained the
correct rates for each city.
Mr. Goodwin said when Sanipac increased their rates in 2003, it was estimated that rate could
provide them an adequate rate of return for approximately three years, and it had actually given
them a reasonable rate of return for five years. As costs continued to grow, Sanipac was
experiencing a decrease in revenue and profitability. The proposed increase would hopefully last
another three years, but it could be longer.
Councilor Ballew asked about the rate of return. Mr. Goodwin said ten percent was the typical
return. Councilor Ballew asked if raising their rates only seven percent would still provide an
adequate rate of return.
Mr. Goodwin said if the rate increase was set lower than eight percent, the rate of return might
last one or two years, but could increase the likelihood of an additional increase sooner rather
than later. They could do annual increases. Sanipac had traditionally come in with a number to
last over a period of several years.
Councilor Wylie said she understood the need for the increase, but noted that citizens were also
having trouble making ends meet with the increase in cost of food and gas. There could be a
price to pay ifpeople couldn't afford to have their garbage hauled away and it piled up.
Councilor Ralston said he downsized his garbage can to reduce his costs. A lot of people could
do the same thing if they used the recycling cart. Sanipac could put an insert in the bills
suggesting people consider doing that.
Mr. Goodwin said that was currently happening. He also noted that over 2100 applications had
been received for the yard debris program.
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Council Work Session Minutes
May 5,2008
Page 8
Mr. Wichmann said migration (people reducing their container size) happened with other fee or
rate increases. Most people were moving to the thirty-two gallon carts. Reducing to that size
combined with using the yard debris cart would still save people money.
Councilor Woodrow said he also went to a smaller container. The difference between the old and
new rates was minimal and he didn't feel it would be the breaking point. It was important to look
out for the citizens, but the City also expected Sanipac to do an excellent job and they needed the
tools to do that. He was fine with the eight percent increase.
Councilor Lundberg talked about the increase in fees that Sanipac had to pay and understood
pass-throughs. She was [me with the eight percent increase because Sanipac had been a good
steward of the City's sanitation service. The increase was not much per month. She asked for
Council's final thoughts.
Councilor Ballew asked if there was assurance how long the eight percent would be adequate.
Mr. Goodwin said there was no guarantee.
Councilor Ralston said he was fine with the increase. He did note, however, that private
companies were cutting wages and that may be something people need to do.
Councilor Lundberg said they could revisit this in the future.
ADJOURNMENT
The meeting was adjourned at 7:02 pm.
Minutes Recorder - Amy Sowa
Attest:
AmY~ JovU "---
City Recorder