HomeMy WebLinkAbout04/23/18 Work Session City of Springfield
Work Session Meeting
MINUTES OF THE WORK.SESSION MEETING OF
THE SPRINGFIELD CITY COUNCIL HELD
MONDAY APRIL 23, 2018
The City of Springfield Council met in a work session in the Jesse Maine Meeting Room, 225 Fifth
Street, Springfield, Oregon, on Monday April 23, 2018 at 5:30 p.m., with Mayor Lundberg presiding.
ATTENDANCE
Present were Mayor Lundberg and Councilors VanGordon, Wylie, Moore, Stoehr,Woodrow and
Pishioneri. Also present were City Manager Gino Grimaldi, City Attorney Mary Bridget Smith,and
members of the staff.
Councilor Stoehr was absent(excused).
1. Community Development Block Grants(CDBG)FY2019.
Community Development Analyst,Erin Fifield, presented the staff report on this item.
The Community Development Advisory Committee(CDAC) has made a recommendation to Council
for the DRAFT Springfield 2018119 (CDBG)One Year Action flan, following a public hearing on
April 5,201.8 and the review of public comment. The recommendation prioritizes the strategy to
increase the supply of affordable housing,while maintaining the City's current programs to assist low-
income residents with home repairs and down payment assistance.
The CDAC held a public hearing and reviewed public comment on April 5,2018,on the proposed
substantial amendment to a prior year action plan. While the draft proposal would have reallocated
funds from the now-completed neighborhood lighting improvements project, a recent invoice from
SUB has prompted the committee to reconsider the substantial amendment and recommend a smaller
amount to be reallocated in order to pay the invoice.
Councilor Moore asked about the recommendation of increasing the supply of affordable housing and
if there is a specific plan.
Ms. Fifield explained that the approach is to submit a plan to HUD that focuses on the strategy that the
Council would like to achieve. The activities and actual projects could then be decided outside of that
plan.
Councilor VanGordon clarified that his understanding of the plan being presented is a high policy
level of what the Council wants to see and then the Council can make decisions to fill in the rest of the
plan throughout the year.
Councilor VanGordon asked that staff continue to look for efficiencies and areas to cut costs in all of
the programs when possible.
Councilor Pishioneri asked for clarification of how the dollar amounts were calculated and if the
additional $50,000 being allocated to the program will be sufficient to encourage citizens to utilize the
programs.
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April 23,2018
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Ms. Fifield explained that,with the projects available, it is believed that the additional funding should
be enough to fund possible emergency home repair projects in this fiscal year.
Mayor Lundberg clarified that the money used for emergency home repairs have specific criteria that
must be met before a repair can be funded. For example,funds cannot be used to replace a heat pump,
but they can be used to replace a furnace, since heat is considered a basic need and air conditioning is
considered a luxury.
Ms. Fifield anticipates bringing this item, with additional details regarding allocation,to the Council in
May,2018. She anticipates adjustments to the allocations once she receives final figures from HUD.
Mayor Lundberg requested a memorandum from staff that provides information about what repairs are
being made through the emergency home repair program.
Ms. Fifield informed the Council that she will conduct an environmental review of the site identified
previously by Council on 57`x' Street to determine if that property can be used for additional affordable
housing. Once the review is completed,staff will issue a Request for Proposal(R.FP)to be completed
this summer, so it can come back to the Council in the fall for further evaluation and possible project
approval.
In closing, Ms. Fifield was asked by the Advisory Committee, in response to public comment
received,to make a portion of the funds available to community groups. Ms. Fifield expressed her
support for creating a pilot program that would make a portion of the funds available through an RFP
that community groups could apply .
Councilor VanGordon expressed support of pilot project, but would like to see it in partnership with
a non-profit in the area.
Councilor Moore asked for clarification about purchasing land with the purpose of"land banking"for
future affordable housing projects.
Ms. Fifield explained that federal funds could be used to purchase property that would then be used for
a project already approved.
Councilor Pishioneri expressed his continued concerns that there is not enough funding being
allocated in the Emergency Home Repair(EHR)program based on the current projections and past
trends.
In response to Ms. Fifield's question about using funds for a pilot program, the Council expressed
support for staff to bring back additional information about creating a pilot program that would
include for-profit and non-profit organizations.
2. Wastewater and Stormwater User Fees FY 2018-19.
Environmental Services Manager Matt Stouder and Environmental Services Program Manager
Katherine Bishop presented the staff report on this item.
Each year, staff presents to Council proposed user fee rates for local wastewater and stormwater
programs. These fees are established to provide adequate revenue to fund operations and maintenance,
capital improvement programs,debt service payments, and meet environmental permit requirements
for the City. In addition to local user fees,the Metropolitan Wastewater Management Commission
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April 23,2018
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(MWMC)develops regional user fees to support the Regional Wastewater Program. On April 1.3,
2018,the MWMC adopted the FY 18-19 regional user fees with a 2.5%rate change that will increase
the typical residential customer bill by$0.64 monthly(assuming 6.684 units or 5,000 gallons).
Last year, Council approved a 3.5%stormwater rate change along with a rate forecast projecting a
3.5% increase in FY 18-19 and FY 19-20. Additionally,Council approved a 2.5% rate change last year
for local wastewater along with a rate forecast projecting a 3.0% increase in FY 1.8-1.9 and FY 19-20.
Staff has prepared )=Y 1S-19 rate options for further discussion and Council consideration,with Option
2 being the recommended option. The options show the combined change to local wastewater
(assuming 6.684 units or 5,000 gallons) and storinwater user fees for a typical residential customer:
Option I—(basic service level) includes a 2.0% user fee rate increase in FY 18-19, resulting in a $0.75
monthly increase,which includes a local wastewater increase at$0.46 and a storinwater increase at
$0.29 monthly.
Option 2—Recommended(Basic service level with pay-as-you go financing plan) includes a 2.5% user
fee rate increase in FY 18-19 resulting in a$0.93 monthly increase,which includes a local wastewater
increase at$0.57 and storinwater at$0.36 monthly.
Option 3 (basic service level with greater level of pay-as you go financing plan) includes a 3.3%user
fee rate increase in FY 18-19 resulting in a$1.13 monthly increase,which includes a local wastewater
increase at$0.69 and stormwater at$0.44 monthly.
Councilor Wylie asked why the rates for Eugene are lower than Springfield's. Ms. Bishop and Mr.
Stouder explained that factors in that difference include the number of citizens in Eugene, allowing the
cost to be distributed over a larger customer base, and they combine their sewer projects with street
projects, allowing them to fund part of their wastewater project with street funds. In addition,the City
of Springfield has had to go out for bonds in the past and Eugene has not.
Councilor Moore asked if grey water usage is allowed within the city code for citizens to use for
watering gardens,washing hands,etc.? Mr. Stouder expressed that he would have to do some
research, but will follow up with an answer to Councilor Moore's question.
Councilor VanGordon expressed his support for Option 2 and pointed out that he would like
information next year as to when staff thinks that the City can get to the point of"pay as you go" for
future projects vs. financing projects with bonds.
Councilor Pishioneri expressed his support for Option 2 and commended staff for their work and
forwarding thinking.
Mayor Lundberg confirmed that the Council supports Option 2 and that it is important that staff bring
back information that will help the Council, when making decisions moving forward,to achieve the
desired"pay as you go"plan as soon as possible.
A public hearing on Option 2 is scheduled for May 7, 2018.
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April 23,2018
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3. Regional Infrastructure Fund(RIF)Grant for Booth Kelly Crane Shed Redevelopment Project.
Economic Development Director Courtney Griesel and Associate Project Manager.Tire Polston
presented the staff report on this iterir.
The Crane Shed Project was first identified during the 2012 City of Springfield Sustainable City Year
partnership with the University of Oregon. The project called to `activate'the areas beneath the
existing crane shed,offering a place for the community to gather,dine, enjoy entertainment,and shop.
This concept was net with much exciterment and interest.
Staff sees the Booth Kelly Crane Shed Redevelopment Project as an opportunity project for RIF
submittal,with a total request of$1 million split between two phases of work:
(a) Planning, Design Development, Construction Documents/Permitting,and Site Preparation($200k).
Funded by: Request for RIF
This phase would include further investigation and design to detenxrine the feasibility and design
elements needed to construct crane shed facing retail/commercial facades. A study to conclude the
number of fagade entries possible and ideal, delineation of common spaces, access and tie-ins to
existing south warehouse spaces,and overall design feel will be critical during this phase. Technical
activities would also include crane shed floor assessment for existing power and plumbing and
feasibility of new; crane shed site and structural assessments; architectural drawings; engineered
drawings;construction documents and permitting. Overall.,this phase is likely to take 12 months to
complete froth award of contractual elements.
(b) Project Construction ($800k-$1.2 million)
Funded by: Request for RIF with potential local funds from Booth.Kelly Fund and Downtown Urban
Renewal
Overall project construction costs are anticipated to be determined through the completion of Phase
(a), driven by selected design elements and prioritized functionality of the space. Overall,this phase is
likely to take 18 months to complete from construction bidding through occupancy. Phase (a)could
be completed independent of a funded Phase(b), providing tirnc for the City to identify alternative
Phase(b) funding scenarios, if not awarded as part of RIF competitive funding.
Councilor Woodrow expressed concern and disappointment about how this itein was brought to the
Council with such short notice to make a decision since the application is due in six days.
Councilor Wylie validated Councilor Woodrow's concern about receiving such short notice, but also
expressed excitement of how this project could move the efforts around the downtown urban renewal
forward.
Councilor Pishioneri provided support to apply for this grant, but cautioned that if the City is awarded
this grant, although the funds would be provided for this project, it could mean a large commitment of
staff time, the cost of which has not been budgeted for.
Councilor VanGordon confirmed that the pian submitted with the grant application is not necessarily
the design that has to be implemented. He expressed support to apply for the grant with the condition
that, if the grant is awarded,there are extensive conversations with the Council about designing and
implementing Council's decided design.
Councilor Moore expressed concern about the age of the structures and how feasible it is to move
forward with design and construction if the grant is awarded to Springfield. Overall she supports
moving forward with this grant application.
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Council Work Session Minutes
April 23,2018
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Ms. Griesel confirmed that a feasibility study would be in the beginning of the first phase of this
proj ect.
The majority of the Council agreed with staff moving forward with applying for the RIF Grant with
the conditions that this item will be brought back to Council for discussion and visioning, regardless of
whether or not the City is awarded this grant,and that Council receives frequent updates from staff if
funds are awarded to Springfield.
ADJOURNMENT
The meeting was adjourned at 7:47 p.m.
Minutes Recorder—AJ Ripka
- &
Christine L. Lundberg
Mayor
Attest:
4Ri
City Recorder