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HomeMy WebLinkAbout05/05/1997 Regular . MINUTES OF THE REGULAR MEETING OF THE SPRINGFIELD CITY COUNCIL HELD MONDAY, MAY 5,1997 The city of Springfield council met in regular session in the Springfield City Council Chamber Room, 225 Fifth Street, Springfield, Oregon, on Monday, May 5, 1997 at 7:40 p.m., with Mayor Morrisette presiding. ATTENDANCE Present were Mayor Morrisette, Councilors Ballew, Beyer, Burge, Dahlquist, and Shaver. Councilor Maine was absent (excused). Also present were City Manager Michael Kelly, Assistant City Manager Gino Grimaldi, City Attorney Tim Harold, City Recorder Eileen Stein, Administrative Aide Julie Wilson and members of the staff. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Mayor Morrisette. INVOCATION The invocation was given by Rev. Richard Doc Kirk, Immanuel Baptist Church. . SPRINGFIELD UPBEAT 1. Mayor Morrisette proclaimed May, 1997 as Sexual Assault Awareness month. 2. City Manager Mike Kelly recognized Cindie Mott, Development Services Department, for 20 years of service to the city of Springfield. CONSENT CALENDAR IT WAS MOVED BY COUNCILOR SHAVER, WITH A SECOND BY COUNCILOR BEYER, TO ADOPT THE CONSENT CALENDAR WITH ITEM 5(B) REMOVED. THE MOTION PASSED WITH A VOTE OF 5 FOR AND 0 AGAINST. 1. Claims 2. Minutes a. April 21, 1997 - Work Session b. April 21, 1997 - Regular Meeting 3. Resolutions 4. Ordinances . 5. Other Routine Matters Regular Council Meeting May 5, 1997 Page 2 . a. Award Bid for Project 1-981, Gateway Street, Harlow Road to Beltline; Project 1-982, 10th Street, B Street to Centennial Boulevard; and Project 1-983: Olympic Street, Mohawk Boulevard to 28th Street, Asphalt Concrete Overlay, Base Repair, Traffic Loop Detection and Lane Striping, to Morse Bros., in the Amount of $749,622.55. ITEMS REMOVED FROM THE CONSENT CALENDAR 5. Other Routine Matters b. Award Bid for Project 1-961, South Springfield Interceptor, to H&J Construction, Inc., in the Amount of$3,988,919. Council will discuss this item during the executive session following this meeting. PUBLIC HEARINGS 1. Ordinance Establishing Liens for Improvements to Serve South 34th Street, Main to Oregon, and Vicinity, Project 1-926. . ORDINANCE NO. 5853- AN ORDINANCE ESTABLISHING LIENS FOR INST ALLA TION OF ASPHALT PAVING. CURBS AND GUTTERS. SIDEWALKS, DRIVEWAYS. STREET TREES. STORM DRAINAGE AND STREET LIGHTING IMPROVEMENTS. TO SERVE SOUTH 34TH STREET. MAIN TO OREGON. AND VICINITY. PROJECT 1-926. IN THE CITY OF SPRINGFIELD. LANE COUNTY. OREGON AND DECLARING AN EMERGENCY. Finance Director Bob Duey presented the staff report on this issue. The city has completed a local improvement project to serve South 34th Street, Main to Oregon, and vicinity, project 1- 926. The council is requested to adopt the ordinance assessing the properties for this project in the amount of $154,935.50. The ordinance contains an emergency clause which makes it effective immediately upon adoption. The emergency clause is being used because staff would like to enter the liens on the city docket as soon as possible. Mayor Morrisette opened the public hearing. No one appeared to testify. A correspondence from Russell Phillips, 3305 Main, expressing concern regarding the financial impact of the assessment, was entered into the public record. Mayor Morrisette closed the public hearing. Mayor Morrisette commended Assessment Accounting Technician Jackie Owen for her efforts in working with members of the public with assessment issues. Councilor Shaver supported the project. . Councilor Burge referenced Exhibit A and said one property was owned by two property owners. Regular Council Meeting May 5, 1997 Page 3 . IT WAS MOVED BY COUNCILOR SHAVER, WITH A SECOND BY COUNCILOR BURGE, TO ADOPT ORDINANCE NO. 5853. THE MOTION PASSED WITH A VOTE OF 5 FOR AND 0 AGAINST. 2. FY 1997-98 One Year Action Plan of the Eugene-Springfield Consolidated Plan for Housing and Community Development. City Planner Robin Johnson presented the staff report on this issue. The five-year Eugene Springfield Consolidated Plan for Housing and Community Development adopted in May 1995, is a requirement of the federal government and is necessary for Eugene and Springfield to continue receiving funding from the Department of Housing and Urban Development (HUD). qne Year Action Plans must be submitted to HUD each year and are designed to indicate how communities intend to fulfill the priorities established in the five year plan. . The FY 97-98 One Year Action Plan must be approved by both the city of Springfield and city of Eugene prior to submission to HUD. The document was distributed for a 30-day public comment period between March 29 and April 28, 1997. The Intergovernmental Housing Policy Board held a public hearing for the annual plan on April 9, 1997. The Plan is due at HUD on May 15, 1997 and is scheduled for adoption by the Eugene city council on April 28, 1997. The One Year Action Plan needs to include the Community Development Block Grant (CDBG) and HOME funding allocations for the next year. The city of Springfield receives CDBG and entitlement community and HOME funds as a participant in a consortium agreement with the city of Eugene. CDBG funds are awarded to communities who carry out community development activities directed towards neighborhood revitalization, economic development, and the provision of improved community facilities and services. HOME funding is a housing block grant program allocated to communities to be used for rehabilitation, new construction, acquisition and tenant based rental assistance activities. The city has completed the allocation process for both CDBG and HOME programs. The CDBG and HOME projects adopted by the city council will be inserted into the Action Plan before it is submitted to HUD. Mayor Morrisette opened the public hearing. No one appeared to testify. Mayor Morrisette closed the public hearing. IT WAS MOVED BY COUNCILOR SHAVER, WITH A SECOND BY COUNCILOR BEYER, TO ADOPT THE SPRINGFIELD PORTION OF THE FY 97-98 ONE YEAR ACTION PLAN OF THE EUGENE SPRINGFIELD CONSOLIDATED PLAN, FOR HOUSING AND COMMUNITY DEVELOPMENT, FOR SUBMISSION TO THE FEDERAL DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WITH THE INCLUSION OF THE CDBG AND HOME FUNDING ALLOCATIONS. THE MOTION PASSED WITH A VOTE OF 5 FOR AND 0 AGAINST. BUSINESS FROM THE AUDIENCE . 1. Curtis Greer, 2150 Laura, commented on an article recently published in the Springfield News. The article was related to pending litigation against the city of Springfield. Mr. Greer Regular Council Meeting May 5, 1997 Page 4 . commented on city regulations and equal enforcement of the regulation. Council suggested Mr. Greer meet with staff to obtain additional information. 2. Timberlane Hamilton, 1975 E Street, spoke regarding ORS requirements regarding the duties of the council. He also testified regarding a lawsuit filed against the city of Springfield. Councilor Shaver explained since a lawsuit was filed, his attorney needed to contact the city attorney for further information. 3. Leslie Hamilton, 1975 E Street, requested information regarding the City Code and regulations. City Manager Mike Kelly and Risk Manager Craig Gibons met with the Mr. & Mrs. Hamilton and answered their questions. COUNCIL RESPONSE CORRESPONDENCE AND PETITIONS 1. Correspondence from Secretary of State Audits Division, Salem, regarding the audit report for the city of Springfield for the period of July 1, 1995, to June 30, 1996. (See staff response provided.) . IT WAS MOVED BY COUNCILOR SHAVER, WITH A SECOND BY COUNCILOR BURGE, TO ACCEPT CORRESPONDENCE FOR FILING. THE MOTION PASSED WITH A VOTE OF 6 FOR AND 0 AGAINST. 2. Correspondence from Bill and Judy Sheppard, 897 South 37th Street, regarding Redwood Estates, First Addition, requesting council to initiate proceedings to have the city of Springfield vacate a ten foot public walkway. Council was provided with a new correspondence from the Sheppards which included additional signatures. The signatures included William Sheppard, Judith Sheppard, Loren Slager and Jerry B. Slager. Council was provided with a memorandum from Lydia Neill to Susan Daluddung regarding the request. a. Bill Sheppard, 897 South 37th, spoke in support of the request for the city to initiate vacating a 10-foot public walkway, located adjacent to their property at 897 South 37th Street, which would provide a connection between Aldridge Place and South 37th Street. Councilor Shaver suggested council have additional time to review the request and review past precedent on this issue. Staff would follow-up with Mr. Sheppard. . Regular Council Meeting May 5, 1997 Page 5 . IT WAS MOVED BY COUNCILOR SHA VER, WITH A SECOND BY COUNCILOR BURGE, TO ACCEPT THE REVISED (NEW) CORRESPONDENCE FOR FILING. THE MOTION PASSED WITH A VOTE OF 5 FOR AND 0 AGAINST. BIDS ORDINANCES BUSINESS FROM THE CITY COUNCIL 1. Committee Appointments a. Planning Commission. IT WAS MOVED BY COUNCILOR SHAVER, WITH A SECOND BY COUNCILOR BURGE, TO REAPPOINT JEFF COLE TO SERVE A SECOND TERM ON THE PLANNING COMMISSION. Councilor Burge said he would like to abstain from voting due to a conflict of interest. . IT WAS MOVED BY COUNCILOR SHAVER, WITH A SECOND BY COUNCILOR BURGE TO RECONSIDER THE MOTION. THE MOTION PASSED WITH A VOTE OF 5 FOR AND 0 AGAINST. IT WAS MOVED BY COUNCILOR SHAVER, WITH A SECOND BY COUNCILOR DAHLQUIST, TO REAPPOINT JEFF COLE TO SERVE A SECOND TERM ON THE PLANNING COMMISSION, WITH THE TERM EXPIRING ON MAY 5, 2001. THE MOTION PASSED WITH A VOTE OF 4 FOR, 0 AGAINST, AND 1 ABSTENTION (BURGE). IT WAS MOVED BY COUNCILOR SHAVER, WITH A SECOND BY COUNCILOR BURGE, TO APPOINT TIM HOVET, TO FILL THE REMAINDER OF MR. HARVEY'S TERM, WHICH EXPIRES ON SEPTEMBER 6, 1998. THE MOTION PASSED WITH A VOTE OF 5 FOR AND 0 AGAINST. 2. Business from Council a. Committee Reports b. Other Business BUSINESS FROM THE CITY MANAGER 1. City Retirement Plan Amendments and Distribution of Reserve Account. . RESOLUTION NO. 97-18 - A RESOLUTION OF THE CITY OF SPRINGFIELD AMENDING THE CITY OF SPRINGFIELD RETIREMENT PLAN. . " ,'" . . . Regular Council Meeting May 5, 1997 Page 6 Benefits Manager Tamara TenBrook presented the staff report on this issue. In 1995, council approved the transfer of general service employees from the Pacific Mutual (PM) Retirement Plan to the Money Purchase Pension Plan through Wells Fargo (WF), and authorized distribution of a portion of the PM reserve account to general service employees. This change was necessary due to rising costs required to maintain the guaranteed interest rate of the PM plan. Distribution of the reserve account has been delayed, pending IRS approval of the new pension plan. Now that IRS approval has been received, the designated reserve account balance will be allocated to general service employees. To do this, the city's actuary must calculate the reserve account balance of two employee groups, those remaining in PM, and those who have transferred to WF. These calculations are impacted by a recent court ruling which upholds legislation passed in 1991 and 1995. This legislation increases benefits for emergency service employees. If benefits are increased for emergency service employees under the current retirement plan language, distribution of reserve funds to general service employees could be significantly reduced or eliminated. Since the city has flexibility in how to implement the statutory mandated benefit increases, the Retirement Management Committee and Management Team propose a process which considers both the city's current financial situation, as well as its legal liability for distributing the reserve to general service employees. The proposed implementation and plan amendment minimize impact on general service employees while still utilizing reserve dollars to fund plan expenses as much as possible. This approach reduces the risk of litigation created by eliminating or significantly reducing reserve aliocations to general service employees. It also funds the majority of accrued benefits, thereby avoiding an immediate funding deficit on the plan. It also, however, exhausts plan reserves six months earlier than projected, requiring a change to actuarial funding sooner than anticipated. The financial impact of this proposed process was outlined in the staff report. Ms. TenBrook answered questions from council. She also provided clarification about the reserve account. Councilor Burge asked if the general service employees were subsidizing emergency service employee benefits. He questioned the fairness of this action. Ms. TenBrook replied that in June 1995, the fund would be divided between employees based on account balances at that time. She said based on those accrued benefits, the amount of reserve can change. Adoption of the resolution would authorize amending the retirement plan consistent with option 3, the balanced approach. . '4 II ... . . . Regular Council Meeting May 5, 1997 Page 7 Councilor Burge discussed the language stating minimal impact on general service employees, and other language contained in the staff report. Assistant City Manager Gino Grimaldi answered questions and said according to Oregon Supreme Court ruling the increased benefits for emergency service employees is required. Councilor Burge asked if the majority of general service employees would favor option three. Mr. Grimaldi discussed what the best balance was to address the issue. Mr. Harold answered questions from council. Councilor Shaver discussed the guaranteed interest rate and financial impacts. He also said he did not feel many options were available in this situation. Councilor Burge again questioned if general service employees were being treated fairly. IT WAS MOVED BY COUNCILOR SHAVER, WITH A SECOND BY COUNCILOR BEYER, TO ADOPT RESOLUTION NO. 97-18. THE MOTION PASSED WITH A VOTE OF 5 FOR AND 0 AGAINST. Mayor Morrisette expressed opposition to the current policy allowing vesting in five years. 2. Other Business BUSINESS FROM THE CITY ATTORNEY RECESS Pursuant to ORS 192.660(l)(h), the council recessed into executive session at 8:55 p.m. RECONVENE The council reconvened into regular session at 9:20 p.m. OTHER BUSINESS 1. Bid Award for Project 1-961: South Springfield Interceptor. City Attorney Tim Harold presented findings based on the discussion ofthis item during the Executive Session. Project 1-961 is the final phase of the South Springfield Interceptor, and consists of approximately 13,500 feet of new gravity sewers, in sizes 42 inch and 48 inch, five railroad under crossings, approximately 900 feet of micro tunneling, the demolition of two sanitary sewer pump stations, and demolition of the Don Street screening structure. This project is in both the adopted 1996-2001 Capital Improvement Program and the adopted 1996-97 budget. " . . . . . . Regular Council Meeting May 5, 1997 Page 8 IT WAS MOVED BY COUNCILOR SHAVER WITH A SECOND BY COUNCILOR BURGE, TO WAIVE THE IRREGULARITIES IN SECTION 02015 OF THE BID REQUEST, REGARDING MOVE-IN AND SITE PREPARATIONS, WHICH REQUIRE THAT LINE ITEM CONCERNING MOVE-IN AND SITE PREPARATIONS, NOT EXCEED 2% OF THE TOTAL BID. THE REASON FOR WAIVER OF THE IRREGULARITIES IS THAT THE WAIVER DOES NOT AFFECT THE SUBSTANTIVE RIGHTS OF ANY BIDDERS AND ALSO FIND THAT THE APPARENT SUCCESSFUL BIDDER WAS IN SUBSTANTIAL COMPLIANCE WITH IV 2008 AND THEREFORE AWARD THE BID TO THE APPARENT LOW BIDDER, H&J CONSTRUCTION. THE MOTION PASSED WITH A VOTE OF 5 FOR AND 0 AGAINST. ADJOURNMENT The meeting was adjourned at 9:25 p.m. Minutes Recorder - Julie Wilson Bill Morrisette Mayor (' Attest: