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HomeMy WebLinkAbout01/20/2009 Regular City of Springfield Regular Meeting MINUTES OF THE REGULAR MEETING OF THE SPRINGFIELD CITY COUNCIL HELD TUESDAY, JANUARY 20, 2009 The City of Springfield Council met in regular session in the Council Meeting Room, 225 Fifth Street, Springfield, Oregon, on Tuesday, January 20, 2009 at 7:00 p.m., with Mayor Leiken presiding. ATTENDANCE Present were Mayor Leiken and Councilors Lundberg, Leezer, Ralston, Woodrow and Pishioneri. Also present were City Manager Gino Grimaldi, Assistant City Manager Jeff Towery, City Attorney Matthew Cox, City Recorder Amy Sowa and members of the staff. Councilor Wylie was absent (excused). PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Mayor Leiken. Mayor Leiken referred to the inauguration today. It was a historic event and no matter how people voted, a proud moment. The transfer of power was incredible and we live in an incredible country. ' SPRINGFIELD UPBEAT 1. Volunteer Recognition: Dona Berry. Library Director Rob Everett introduced Ms. Dona Berry. The Library is recognizing the service oflongtime volunteer shelver, Dona Berry. Dona has volunteered with the Library since 1997. During this time she has devoted countless hours to re-shelving books, movies, magazines, and other Library materials. Dona averages about 45 hours of volunteer time per month. Dona grew up in Coos County Oregon, moved to Portland, and then to Springfield. She has lived in Springfield for 47 years. She is retired from Sacred Heart, where she worked as a housekeeper for 19 years. Dona has been involved with the Community Time Share, Oasis Senior Program, and the Smart Reading program. Besides library shelving, Dona enjoys reading, sewing, walking, and traveling. She and her husband have traveled to Australia, New Zealand, Germany, Austria, and France. Dona's favorite reading is about pioneer times. Dona enjoys volunteering because she likes the people & can help in the community without writing & gets her away from home. Dona's husband worked his career with ExxonMobil Company. ExxonMobil has a retiree program for volunteers, called Star Grants. The company will give money for individuals who volunteer their time to educational institutions, art/culture groups, and the like. Through this program, Dona has given the Springfield Public Library over $10,000 since she started volunteering with the Library. The Library has used this money to purchase books and fund both adult and children's programming. City of Springfield Council Regular Meeting Minutes January 20, 2009 Page 2 The Library wants to recognize Dona for the generous contributions she has made to the Library, both monetarily and in volunteer time. Mayor Leiken thanked Ms. Berry for her service to the Library. 2. Employee Recognition, Paula Guthrie, 25 Years. City Manager Gino Grimaldi introduced Paula Guthrie, City of Springfield employee from the Information Technology (IT) Department. Paula introduced her family in the audience. Mr. Grimaldi noted her accomplishments with the City. Ms. Guthrie formed the collective bargaining unit, now known as SEIU. She served as the first president of that organization and had remained very active in that organization. He noted her accomplishments in the IT department and her role with PeopleSoft. He discussed some of the changes that had occurred during her years at the City. Ms. Guthrie said she would not have stayed if not for the challenges and fun she had at the City. She also served as a Springfield Historic Commissioner, and was very wedded to Springfield's history and growth. It was amazing what had been done in Springfield over the past twenty-five years, and how it had grown. Mayor Leiken thanked Ms. Guthrie for her service. He had always appreciated her professionalism with the Council. 3. Employee Recognition, Kevin Murphy, 30 Years, Fire and Life Safety. Mr. Murphy was unable to attend tonight's meeting. CONSENT CALENDAR IT WAS MOVED BY COUNCILOR LUNDBERG WITH A SECOND BY COUNCILOR WOODROW TO APPROVE THE CONSENT CALENDAR WITH ITEMS 1.A AND S.H REMOVED. THE MOTION PASSED WITH A VOTE OF S FOR AND 0 AGAINST (1 Absent- Wylie). 2. Minutes a. November 17,2008 - Work Session b. November 17, 2008 - Regular Meeting c. November 24,2008 - Work Session d. December 1, 2008- Work Session e. December 1, 2008 - Regular Meeting 3. Resolutions a. RESOLUTION NO. 09-01 - A RESOLUTION TO ACCEPT PROJECT P20425: SANITARY SEWER REHABILITATION 2005 IN THE AMOUNT OF $1.251.752.37. 4. Ordinances 5. Other Routine Matters City of Springfield Council Regular Meeting Minutes January 20, 2009 Page 3 a. Approval of Liquor License Endorsement for Thurston Market, Located at 6590 Thurston Road, Springfield, Oregon. b. Approval of Liquor License Endorsement for Abby's Legendary Pizza, Located at 2053 Olympic Street, Springfield, Oregon. c. Approval of Liquor License Endorsement for Hop Valley Brewing Co., Located at 980 Kruse Way, Springfield, Oregon. d. Approval of Liquor License Endorsement for El Rey Mexican Restaurant, Located at 1909 South A Street, Springfield, Oregon. e. Approval of Liquor License Endorsement for Courtsports Athletic Club, Located at 2728 Peasant Blvd., Springfield, Oregon. f. Appr:oval of the Amended Council Operating Policies and Procedures. g. Lane Council of Governments (LCOG) Intergovernmental Agreement. ITEMS REMOVED 1. Claims a~ Approval ofthe November 2008, Disbursements for Approval. IT WAS MOVED BY COUNCILOR LUNDBERG WITH A SECOND BY COUNCILOR WOODROW TO APPROVE ITEM 1.A. FROM THE CONSENT CALENDAR. THE MOTION PASSED WITH A VOTE OF 4 FOR AND 0 AGAINST (1 Absent - Wylie, 1 Abstention - Leezer). 5. Other Routine Matters h. Approval of a Contract Amendment to Convert. $20,000 of the $80,000 Loan Portion of the HOME Awarded to the Neighborhood Economic Development Corporation for the Provision of Affordable Housing to a Grant. IT WAS MOVED BY COUNCILOR LUNDBERG WITH A SECOND BY COUNCILOR PISHIONERI TO APPROVE ITEM S.H. FROM THE CONSENT CALENDAR. Councilor Woodrow asked if it was appropriate to put a $20,000 conversion of a loan to a grant without the public being made aware of that. He was not sure he was in favor of that during these economic times. He thought perhaps this should be discussed outside the Consent Calendar. Mr. Grimaldi said staff would note that for the future. A staff report could be provided this evening on this subject. Councilor Lundberg said this had been done before in the Consent Calendar format because it was within the parameters of the funding. Housing Assistant Jodi Peterson provided a staff report on this item. HOME investment partnership funding was specifically to help promote affordable housing and to develop capacity. HUD didn't determine whether it was done as a grant or loan, rather it was done at the staffs discretion based on the project type. She noted that the City of Eugene just recently started loaning their funds. They had formerly been all grants. It was to help the City's non-profit developers create affordable housing and continue to provide that housing. That was the motivation to convert it from a loan to a grant. City of Springfield Council Regular Meeting Minutes January 20, 2009 Page 4 Councilor Woodrow asked if these were Federal funds given to the City. Yes. THE MOTION PASSED WITH A VOTE OF 4 FOR, 1 AGAINST (Ralston) (1 Absent- Wylie). 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. 1. Transportation Systems Development Charges. RESOLUTION NO.1 - A RESOLUTION OF THE CITY OF SPRINGFIELD COMMON COUNCIL MODIFYING A LIST OF CAPITAL IMPROVEMENTS TO BE FUNDED BY SYSTEMS DEVELOPMENT CHARGES. INCREASING A SYSTEMS DEVELOPMENT CHARGE. AND SETTING AN EFFECTIVE DATE. Assistant Public Works Director Len Goodwin presented the staff report on this item. On November 24, 2008, Council directed staffto give notice of a proposed change in the Transportation Systems Development Charge Project List. If adopted, the proposed list would permit the Council to impose a Transportation Systems Development Charge of not more than $278.89 per trip end, consisting of a reimbursement component of $48.30 and an improvement component of$230.60. In discussion, the Council determined that under the current economic circumstances, it was unwise to impose the maximum charge permissible. Council directed staff to propose a fee that would be reduced and directed that staff calculate the amount of the improvement component of the Transportation Systems Development Charge on the basis of only those projects in the Project List which had already been programmed in some approved capital planning document. Although all the projects remain on the Project List, using that criteria to establish the fee would result in an improvement component.reduced to $176.04 per trip end, resulting in a total Transportation Systems Development Charge of $224.34 per trip end. On December 11, 2009, staff gave notice of the proposed adoption of a modified Project List and of the proposed increase in fee, as required by ORS 223.304. That notice advised recipients that, pursuant to law, persons could, on or before January 13, 2009, make a written request for a public hearing in connection with the adoption of the proposed Project List and increased fee. On January 13,2009, the Home Builders Association of Lane County filed a written request for a public hearing. Consistent with Council direction, if this resolution is approved, staff will plan to review the Transportation SDC Fee at the time a Local Transportation System Plan is prepared or in two years, whichever is earlier. Mr. Goodwin said staff and the consultant, Galardi Consulting, had reviewed the methodology and found it to be legal. With the implementation ofHB3337 and the review of buildable lands, the City would be developing a new Transportation System Plan over the next couple of years. At that time, they would want to review the Transportation System Development Charge methodology and do a comprehensive update. Since the last review of the project list was done in 2000, revenues from SDCs had deteriorated markedly because of economic conditions and also because we were relying on a project list that was eight years old. City of Springfield Council Regular Meeting Minutes January 20, 2009 Page 5 Mr. Goodwin noted that a couple of work sessions had been held regarding this subject. Initially, the project list presented would have justified the increase in Transportation SDC methodology trip rate to about $278 per trip. Council expressed concern at that amount, knowing the economic situation was viewed as causing difficulty on development, and directed staff to come back with an alternative. On November 24, staff brought the proposed alternative before Council. They would not base the charge on implementation of all the projects on the project list. The fee would be based on projects that had already been programmed in some appropriate documents. The trip rate generated for those projects would only be $224 compared to $278. This would reduce revenue recovered, but would be minor since the methodology would be reconsidered again in the next couple of years, and because the revenue projection during these slow economic times would be minimal. Even with tonight's resolution, this still may not make this year's target. This was a temporary gesture, and would have little impact on increasing revenue. The potential for deferring this fee along with the others would have only minor affects on the revenue funds. Mr. Goodwin referred to Attachment 4, pages 1 and 2, which included fees imposed by other cities. He noted that many cities didn't have a reimbursement component. Even with the new fee, Springfield compared favorably. He discussed the figures on both pages. He referred to Attachment 5, showing a sample of what the exact transportation charge would be for a variety of developments from residential to industrial. The memo from the November 24 work session and a letter from Laura Potter, the intergovernmental representative from the HomeBuilders Association, were also included in tonight's packet. Mayor Leiken asked Council to hold their questions until after the public hearing. Mayor Leiken opened the public hearing. 1. Mike Dotson. 3005 Calla Street. Eugene. OR. Mr. Dotson said he was the President of the Lane County HomeBuilders Association 2009 and that he appreciated the opportunity to speak before the Mayor and Council. He said he had not come to argue about the amount or the necessity, but noted that this fee was one of many burdens placed on the building industry. He noted the increase that could equal about $1000 for a modest home. The issue was the timing. He had built homes in Lane County for many years, and last year was especially tough due to the economy. The local building industry had slowed to a crawl, resulting in loss of revenues and jobs. The downturn started in the building industry in 2007 and had reached every person and profession in our community in some way or another. He asked Council to consider waiving or delaying this increase, as it was another burden on an already struggling industry in a tough economy. Even a small increase could have a devastating effect. He was cautiously optimistic about the prospects of recovery in the new year. He thanked Springfield for thinking outside the box and deferring the other fess. Placing another burden on the building industry at this time would put out any signs of recovery. He asked that they reconsider instituting this increase at this time. 2. Mike Butler. 826 McKenzie Crest Drive. Springfield. OR. Mr. Butler said he and his wife owned Future B homes, which they purchased from his parents who had started the company over thirty years ago. They had built successfully in the Springfield area for 29 years. Their company had built in twelve jurisdictions in Oregon, but their favorite place was Springfield. He emphasized that Council waive or delay the charges. They no longer had work for the framing company that had done work for them for 21 years. He noted the inauguration and the need for everyone to work together. He noted a first time buyer credit of $7500 that City of Springfield Council Regular Meeting Minutes January 20, 2009 Page 6 would be wiped out by the new charges proposed by Springfield. He again asked that as a way to get people back to work, the Council waive and delay this process. 3. Ed McMahon. 2053 Laura Street. HBA. Springfield. OR. Mr. McMahon thanked Council for this opportunity. He noted the written testimony from Ms. Potter. He said HBA had been very impressed with the professional staff at the City and how they had heard Council's direction and brought back a lesser increase than what it could have been. At this time, however, any increase would be detrimental. A lot was happening on the national level regarding stimulus for housing, but no one knew what it would look like. He asked Council to postpone increasing any SDC's for a minimum of 3 months until they could find out more about what was happening nationally. This would also provide the HBA time to educate Council on other aspects of housing that they were investigating in hopes of coming back with other solutions. The infrastructure was needed and they wanted Springfield to grow, but delaying these fees for 3 months may not be very detrimental because there would not be many permits during that time. He thanked Council for their time and service to the City. 4. Jim Welsh. 950 Killiam Lane. ElMira. OR Mr. Welsh said he was here representing the Springfield Board of Realtors. He noted that they were connected with the HBA. He reiterated what the HBA had been saying. These were tough times, and our economy went the way of housing starts. Mortgage bond prices were falling and correspondingly interest rates were rising. There was one more challenge week by week. There could be another incentive from the Federal government that could increase inflation in the future. This had nothing against what the City had done in the past. They had done wonderful work in providing incentives, such as deferring the other fees. He thanked Mr. Goodwin and their staff for their work and the information they had provided. He felt the proposal from the HBA should be considered to get housing starts back. They would be supportive either way. Mayor Leiken closed the public hearing. Councilor Woodrow asked Mr. Goodwin how much impact it would have if Council postponed this increase for three months. Mr. Goodwin said the number of residential building permits issued recently was virtually negligible and would probably remain so for a few months. On the commercial side, there were some larger scale developments in various states that could come to fruition during this time frame. If that was the case, it could be a substantial amount of SDC's. He doubted that the delay would have any effect in terms of revenue received from residential, but could have an affect regarding revenue from commercial and industrial. Councilor Woodrow asked if the two (residential and commercial/industrial) could be separated. Mr. Goodwin said the methodology did not permit that. The fee was imposed for per trip end. He explained. Councilor Woodrow asked if it would be impractical to make it retroactive. Mr. Leahy said it would be difficult. They would need to explore it further. Mr. Goodwin said there were requirements that were fixed at the time of application. He would have to check to see if this was that type of situation. City of Springfield Council Regular Meeting Minutes January 20, 2009 Page 7 Councilor Lundberg said as someone who worked in the construction world, she saw daily that there were so many jobs and people in the community affected by whatever they did regarding these fees. She was supportive of SDC charges reflective of our goals for growth, but felt this was absolutely not the time to look at this increase. Everyone who was trying to build or do something was affected. It made no sense to look at this increase now because there wouldn't be much income from residential now anyway, although maybe some from commercial or industrial. She . didn't feel it would hurt long-term growth in the City. She wanted to be responsive to the people that worked in the world of construction. She would have a hard time supporting this going forward. She would like to be patient and allow time for the economy to turn around. She would like the chance to look at other ideas that might be out there. Councilor Pishioneri asked if the proposed increases could be deferred to a later date, such as conveyance or occupancy. Mr. Leahy said that could be done, as the City was doing with the other fees. Councilor Pishioneri discussed deferring the fee. He had concerns about commercial development going forward and the City not being able to collect those SDCs. Mr. Goodwin said if Council took action on deferring residential SDC's, it would be effective on March 15,2009, but not collected until occupancy. Commercial SDC's would be collected starting the effective date. Councilor Pishioneri asked if the difference between the existing fee and the new fee could be deferred. Mr. Grimaldi said there was more risk with commercial. Discussion was held regarding collecting the old fee now and the additional fee later. Mr. Leahy asked Mr. Goodwin if there was any bill before legislature that would affect SDC's. Mr. Goodwin said he was not aware of anything. Another alternative the Council could take would be to adopt the resolution with a different effective date such as July 15. In that case, if a development applied for building permit between now and the effective date, they would pay today's fee, not the increased fee. Mr. Leahy said any building permit for residential after the effective date would still be deferred. Councilor Ralston said this was difficult situation and he appreciated the HBA's predicament. If development occurred, the City had expenses and the City had no more money. He would be willing to postpone it for awhile to investigate it more. The fee was one that was passed on to the buyer, so could be deferred to occupancy. In the interest of the citizens of Springfield, he felt development needed to pay their way. Mayor Leiken asked Mr. Leahy if he needed some time to research the question about making the fee retroactive. Mr. Leahy said he would like some time to research. City of Springfield Council Regular Meeting Minutes January 20, 2009 Page 8 Mayor Leiken recommended delaying any action on this item for two weeks to allow Mr. Leahy time to research the retroactive option. Mr. Goodwin made a good argument regarding the potential of loss of revenue from the commercial side if the increases were delayed. He noted that the public hearing was closed, but Council could come back in two weeks to discuss this further after Mr. Leahy had done his research. He appreciated the HBA coming out to speak on this issue. He felt Mr. Dotson was very optimistic about the economy. There was still a lot of uncertainty about any Federal funds from a stimulus package. Councilor Pishioneri asked if the SDCs were normally payable up front. That was correct. He asked if the increase in the SDCs could be deferred to conveyance. Mr. Goodwin clarified Councilor Pishioneri' s request. He said that should be similar to what Council was considering for residential. He confirmed that the Mayor's recommendation was to come back to Council on February 2. That was correct. Mr. Leahy asked if Councilor Woodrow could state the terms of retroactivity he wanted researched. Councilor Woodrow said the HBA had asked for 3 months to see if something else might come forward. He wanted to look at enacting the changes with a postponement for those 3 months, and if a different resolution was not found, the fees would go retroactive to the date of adoption. Councilor Lundberg reminded Council members that these were Transportation SDCs being discussed. Storm water and sewer SDC methodology was also coming forward in the near future. It was getting complicated and there were substantial increases to all fees. She suggested being careful and keeping it as simple as possible. She was supportive of deferring and watching the economy. Councilor Ralston said the City should continue to collect the SDC, but would consider deferring any increase until closing for both commercial and residential. IT WAS MOVED BY COUNCILOR WOODROW WITH A SECOND BY COUNCILOR LEEZER TO TABLE THE PUBLIC HEARING FOR TWO WEEKS, KEEPING THE WRITTEN RECORD OPEN AND BRINGING BACK TO COUNCIL AT THAT TIME. THE MOTION PASSED WITH A VOTE OF 5 FOR AND 0 AGAINST (1 Absent - Wylie). COUNCIL RESPONSE BUSINESS FROM THE AUDIENCE 1. Greg Harris. 1947 D Street. Springfield. OR. Mr. Harris first said he agreed with the HBA regarding the effect of the new charges on the building industry. Mr. Harris said he came tonight to talk about poker. The City of Springfield and the City of Eugene had different poker rules regarding dealers. He explained. He referred to the letter he had written to Council which was included in their Agenda Packet. He noted some of the issues of changing the dealer, and said he would like the playing field equalized between the two cities. He invited Council to attend a poker house in Eugene and note the amount of money spent. He felt we could have the same thing going on in Springfield, but due to the City of Springfield Council Regular Meeting Minutes January 20, 2009 Page 9 different rules, people were not coming to Springfield. He discussed the table fee, which was usually 10% ofthe entry fee. Mr. Harris said he played in World Series of Poker, World Poker Tour in Las Vegas and paid $500 to play poker. He would like us to get a handle on it, manage it and keep it legal and above board in a professional atmosphere. 2. Phillip Farrington. PeaceHealth. 123 International Way. Springfield. OR. Mr. Farrington said Council would be meeting in Executive Session shortly to discuss roadway extensions and alignment. PeaceHealth and the City of Springfield had common objectives about the need to improve access and circulation between employment centers at Martin Luther King, Jr.. Parkway. PeaceHealth was obligated to provide funding for a roadway connection that would provide the northeastern link between the Parkway and the campus industrial area in Gateway. They shared the interest in making sure Phase II of the Bus Rapid Transit (EmX) came online as quickly as possible, and to leverage the investments made at Sacred Heart Medical Center at RiverBend to create a growing healthcare cluster for future employment growth. The requirements for PeaceHealth went back to the annexation agreement and master plan approval. Mr. Farrington asked Council to consider that PeaceHealth didn't have control over the alignment. All of the prior planning for this roadway was conceived to improve Baldy View Lane. Council would be considering other options and alignments. For the medical center, forty percent oftheir inpatient admissions came from the Eugene-Springfield metropolitan area and some of the intersection controls were challenging for the hospital. People often came to the medical center in distress or unfamiliar,with the area, and there was concern for wayfmding and circulation, as well as safety. As Council considered the different options for roadway alignments, he asked that they consider lot to depth ratios and developability of the remainder of the property. PeaceHealth staff looked forward to collaborating with the City further on this and asked that Council not act in haste in making judgments. Councilor Pishioneri commented on Mr. Harris's testimony. He asked that the City Attorney indicate for the record that the City addressed this earlier and found that the house taking fees or having a surcharge was contrary to the opinion of the Attorney General. Mr. Leahy said he would pull that research and provide it to Council. Councilor Pishioneri noted that Springfield was doing this legally. He asked if the attorney's office could respond to Mr. Harris with that information. Yes. Councilor Ralston said his issue was that they had dealers, and no house dealer was permitted in Springfield. Mr. Leahy said this discussion had occurred several times with Council. The advice of Police Chief Smith and the City Attorney's Office was not to have house dealers. ' Councilor Ralston said if the house paid their dealers, they would have to collect some fee to pay for the dealer. He explained further. He would like clarification why Springfield did not allow house dealers. Mr. Leahy said he would fmd that information and provide it to Council. Councilor Lundberg asked him to find out why Eugene was doing it that way if it was illegal. City of Springfield Council Regular Meeting Minutes January 20, 2009 Page 10 Councilor Ralston discussed a tournament that was a charity event. Mr. Leahy said it was Council's decision. He would provide the information he had brought to them in the past. Councilor Leezer said according to Mr. Harris's letter, the dealers were not getting paid, but were just getting tips. Councilor Pishioneri said that during his testimony, he spoke of charging a fee. Mr. Leahy said because it was difficult to get into the relationship between a permanent dealer and the owner of the establishment, it was difficult to police. CORRESPONDENCE AND PETITIONS 1. Correspondence from Gregory E. Harris, 1947 D Street, Springfield, Oregon Regarding a Change in the "Friendly Poker" Law. IT WAS MOVED BY COUNCILOR LUNDBERG WITH A SECOND BY COUNCILOR WOODROW TO ACCEPT CORRESPONDENCE FOR FILING. THE MOTION PASSED WITH A VOTE OF S FOR AND 0 AGAINST (1 Absent - Wylie) BIDS ORDINANCES BUSINESS FROM THE CITY COUNCIL 1. Committee Appointments a. City Council President Appointment. City Manager Gino Grimaldi noted that during the first meeting of the year following a General Election, Council was to appoint a new Council President. IT WAS MOVED BY COUNCILOR LEEZER WITH A SECOND BY COUNCILOR PISHIONERI TO APPOINT DAVE RALSTON AS THE CITY COUNCIL PRESIDENT. THE MOTION PASSED WITH A VOTE OF S FOR AND 0 AGAINST (1 Absent - Wylie). Mayor Leiken thanked Councilor Lundberg for her service as Council President for the past two years. Her role had helped keep the City going in the right direction. b. Mayor/Council Committee Assignments. Mayor Leiken noted the committee assignments noted in the agenda packet. He also noted that he would be changing the seating for both Work and Regular meetings at the next meeting. City of Springfield Council Regular Meeting Minutes January 20, 2009 Page 11 2. Business from Council a. Committee Reports 1. Councilor Ralston said LRAP A elected new officers and Bill Carpenter was elected as the new president. The representative from Oakridge had the opportunity to serve as Vice Chair. Oakridge and Cottage Grove rotate each year, so it was difficult for them to serve as Vice Chair, then Chair. 2. Councilor Woodrow said the Metropolitan Planning Committee (MPC) met last month and talked about how the STIP-U funds were being used to offset some ofthe services cuts from Lane Transit District (LTD). Staff would look at what that might, involve and bring it back to MPC. There was not a lot of support to do that. He was now serving on the Oregon Freight Advisory Committee, replacing Councilor Ballew. 3. Councilor Ralston reported on the Highway126 Ad Hoc Committee. He said they discussed options between 52nd Street and Main Street. Councilor Pishioneri said they had reduced from fifteen to seven, options with varying costs. The Oregon Department of Transportation (ODOT) representatives had been very receptive and were moving forward at a good rate. Phase 3 of this project was scheduled in 2010. Mr. Boyatt said Phase 3 was underway and would be about an 18 month scope of work. Staff was working with ODOT to bring a project briefmg to the full Council in March or April. BUSINESS FROM THE CITY MANAGER 1. Consideration of Local Residential Development Incentives. RESOLUTION NO. 09-02 - A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SPRINGFIELD TO STIMULATE AND ENCOURAGE THE DEVELOPMENT AND REDEVELOPMENT OF SINGLE FAMILY OR DUPLEX RESIDENTIAL HOUSING STARTS. TEMPORARILY AMENDING RESOLUTION NO. 08-27. THE AMENDED MASTER SCHEDULE OF MISCELLANEOUS FEES AND CHARGES. RATES. PERMITS. AND LICENSES ADOPTED THE 1 ST DAY OF JULY. 2008. PROVIDING FOR DEFERRAL OF FEES AND CHARGES AT THE REQUEST OF THE PROPERTY OWNER FOR HOUSING STARTS DURING THE PERIOD OF TIME FROM THE EFFECTIVE DATE OF THIS RESOLUTION THROUGH OCTOBER 15.2009. PROVIDING DEFERRAL LIMITATIONS. PROVIDING FOR THE PAYMENT OF DEFERRED FEES UPON THE TRANSFER OF OWNERSHIP OF SUCH PROPERTIES. AND PROVIDING AN ASSESSMENT FOR A DEFERRED CHARGE OR FEE. ORDINANCE NO. 6233 - AN ORDINANCE AUTHORIZING THE IMPOSITION OF ASSESSMENTS TO IMPLEMENT RESOLUTION NO. 09-02 "A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SPRINGFIELD TO STIMULATE AND ENCOURAGE THE DEVELOPMENT AND REDEVELOPMENT OF SINGLE F AMIL Y City of Springfield Council Regular Meeting Minutes January 20, 2009 Page 12 OR DUPLEX RESIDENTIAL HOUSING STARTS. TEMPORARILY AMENDING RESOLUTION NO. 08-27. THE AMENDED MASTER SCHEDULE OF MISCELLANEOUS FEES AND CHARGES. RATES. PERMITS. AND LICENSES ADOPTED THE 1 ST DAY OF JULY. 2008. PROVIDING FOR DEFERRAL OF FEES AND CHARGES AT THE REQUEST OF THE PROPERTY OWNER FOR HOUSING STARTS DURING THE PERIOD OF TIME FROM THE EFFECTIVE DATE OF THIS RESOLUTION THROUGH OCTOBER 15.2009. PROVIDING DEFERRAL LIMITATIONS. PROVIDING FOR THE PAYMENT OF DEFERRED FEES UPON THE TRANSFER OF OWNERSillP OF SUCH PROPERTIES. AND PROVIDING AN ASSESSMENT FOR A DEFERRED CHARGE OR FEE.nAND DECLARING AN EMERGENCY. ORDINANCE NO. 6234 - AN ORDINANCE AN ORDINANCE REGARDING THE SPRINGFIELD MUNICIPAL CODE SECTION 3.412 AND "COLLECTION OF CHARGE" SYSTEMS DEVELOPMENT CHARGES. SECTION 8.332 "FEES" AND GRADING. AND SECTION 304(a) "PERMIT ISSUANCE" AND (b) "PLAN REVIEW PROCESS" OF THE SPRINGFIELD BUILDING SAFETY CODES. ADMINlSTRATIVE CODE TO TEMPORARILY DEFER CHARGE AND FEE COLLECTION AT THE REQUEST OF THE PROPERTY OWNER UNTIL TIME OF FINAL OCCUPANCY REQUEST IN ORDER TO STIMULATE AND ENCOURAGE THE DEVELOPMENT AND REDEVELOPMENT OF APPROPRIATELY SERVICED LAND FOR SINGLE F AMIL Y OR DUPLEX RESIDENTIAL HOUSING STARTS WITHIN SPRINGFIELD'S PLANNING AND BUILDING JURISDICTION DURING THE PERIOD OF TIME FROM THE EFFECTIVE DATE OF TillS ORDINANCE THROUGH OCTOBER 15.2009. PROVIDING DEFERRAL LIMITATIONS. PROVIDING FOR THE PAYMENT OF DEFERRED FEES AND CHARGES UPON THE TRANSFER OF OWNERSHIP OF SUCH PROPERTIES. PROVIDING AN ASSESSMENT FOR A DEFERRED CHARGE OR FEE AND DECLARING AN EMERGENCY. Development Services Director Bill Grile presented the staff report on this item. Front-end permitting costs impact the local development of single- family homes and duplexes. Local fees and charges imposed at the time of permit issuance consist of building permit fees, System Development Charges (SDCs) and other charges established by the City, S.U.B., W.P.R.D. and M.W.M.C. The City's fees and charges alone exceed $4,000 for a $130,000 house, and $8,700 for a $370,000 house. Under current procedures, these must be paid before a permit is issued for occupancy -- before construction financing or sale proceeds become available to allow the homebuilder to recover these front-end costs. Allowing a homebuilder to defer payment of front-end permitting costs until the request for issuance of a final occupancy permit would ease the financial burden associated with starting residential construction, and this may stimulate the economy. Anyone wishing to defer fees and charges under the proposed program would be required to file a municipal lien to secure future payment, although collection could prove challenging because (1) the City lien would be in "junior" position to other liens above it such as financing liens, mechanics liens, etc., and (2) there might not be enough value at the time of any foreclosure to cover the City's deferred fees/charges. After conferring with the Homebuilders Association and considering the City's fiscal constraints, staff is bringing forward this proposal for a temporary program to allow deferral of building permit fees, system development and other front-end charges imposed by the City of Springfield City of Springfield Council Regular Meeting Minutes January 20, 2009 Page 13 on new construction of single- family dwellings and duplexes, with the full payment of these required before issuance of a fInal occupancy permit. The proposal would (1) sunset on October 15,2009 unless extended by the Council after an evaluation of its effectiveness, (2) limit the number of deferrals to a maximum of six for any single developer during the period, and (3) require payment of the fees at the time the benefitting property is conveyed. Mr. Grile said Willamalane Park and Recreation District staff had expressed support for the deferral program and would be asking the District Board to participate by deferring its Park SDC's until October 15, 2009. Mayor Leiken said this item was discussed during the work session. Councilor Woodrow asked if deferral was by request. Mr. Grile said yes. Mr. Leahy said it was by request of the property owner. In making that request, the City was entitled to receive consent to assessment and Council (in tonight's action) would be directing the Finance Director to impose that assessment. The assessment was only triggered by a voluntary request by the property owner to participate in the program. Mayor Leiken commended staff and the City Attorney for their work on this, as well as Ed McMahon (HBA) for his input and participation. IT WAS MOVED BY COUNCILOR LUNDBERG WITH A SECOND BY COUNCILOR WOODROW TO ADOPT RESOLUTION NO. 09-02. THE MOTION PASSED WITH A VOTE OF S FOR AND 0 AGAINST (1 Absent - Wylie). IT WAS MOVED BY COUNCILOR LUNDBERG WITH A SECOND BY COUNCILOR WOODROW TO ADOPT ORDINANCE NO. 6233. THE MOTION PASSED WITH A VOTE OF S FOR AND 0 AGAINST (1 Absent - Wylie). IT WAS MOVED BY COUNCILOR LUNDBERG WITH A SECOND BY COUNCILOR WOODROW TO ADOPT ORDINANCE NO. 6234. THE MOTION PASSED WITH A VOTE OF S FOR AND 0 AGAINST (1 Absent - Wylie). IT WAS MOVED BY COUNCILOR LUNDBERG WITH A SECOND BY COUNCILOR WOODROW TO DIRECT THE CITY MANAGER TO NEGOTIATE WITH WILLAMALANE PARK AND RECREATION DISTRICT AND TO EXECUTE AN AGREEMENT FOR DEFERRAL OF WPRD FEES TO CONFORM TO ANY ACTION TAKEN BY COUNCIL CONCERNING FEES AND CHARGES. THE MOTION PASSED WITH A VOTE OF S FOR AND 0 AGAINST (1 Absent - Wylie). 2. Springfield's Neighborhood Stabilization Program (NSP) Funded Homebuyer Program. Housing Manager Kevin Ko presented the staff report on this item. Prompted by the alarming increase of foreclosed and abandoned properties, the US Department of Housing and Urban Development (RUD) has authorized an allocation of $3.92 billion nationally to assist states and local jurisdictions in responding to this issue. Through an allocation formula derived by Oregon Housing and Community Services (OHCS), $363,466 ofNSP funds have been earmarked for the City of Springfield Council Regular Meeting Minutes January 20, 2009 Page 14 City of Springfield to address local needs. The pri~rnary purpose of the NSP is to assist with putting abandoned and foreclosed residential properties back in service. The City of Springfield is proposing a program to use NSP funds to assist income-qualified homebuyers with the purchase of foreclosed single-family homes. Of the $363,466 earmarked for Springfield, $7,270 (2%) will be retained by OHCS for State administration and $29,077 (8%) will be available for City program administration. The remaining $327,119 is NSP program funds, of which $89,049 (25% of total NSP allocation) must be used for activities which provide direct benefit to residents at or below 50% of area median income. The proposed NSP homebuyer program will use approximately $227,119 to help income-qualified households purchase their fIrst home. It is anticipated that 10-15 families will be assisted through the program, three of which will be at or below 50% of median income. The maximum NSP assistance will vary depending on household income and need. The NSP Homebuyer program will be similar to the Springfield Home Ownership Program (SHOP). Assistance will be in the form of no-interest, deferred-payment loans secured by a mortgage on the property. Repayment is required upon subsequent sale or refinance of the assisted property. Because foreclosed properties may suffer from deterioration, it is expected that other City Housing Programs may be used for additional assistance on an as-needed basis. Staff recommends that the remaining $100,000 ofNSP program funds be made available to assist with the demolition and/or redevelopment of blighted downtown commercial properties. If eligible commercial properties cannot be identified in a timely manner, the funds may be used for other NSP eligible activities such as acquisition and redevelopment of foreclosed or abandoned rental properties by non-profit organizations, or additional homebuyer assistance. Council may choose to accept or modify staff s recommended use of the remaining NSP funds. The NSP program .will be administered by the Development Services Department, primarily by housing and community development staff. The department does not foresee a need to hire additional staff to administer the NSP program. Mr. Ko said he had received notification from HUD and from the OHCS that the Oregon application for funding was approved. Springfield was entitled to $363,466 of the funds approved. The NSP funds were to be used primarily to purchase abandoned and foreclosed properties in the community and bring them back to use. To be eligible for the funds, homebuyers must be fIrst time homebuyers and go through the homebuyer preparation program, and the house must be abandoned and foreclosed upon. Those properties must be sold at 15% below market value. The City must be responsible for getting the appraisal and the homebuyer was responsible for $1500 of their own funds to insure the homebuyer had a stake in the purchase. Mr. Ko said with this program, HUD allowed flexibility regarding minimum housing standards, so staff was proposing that the minimum housing standards were met within 6 months of the purchase. Attachment 2 in the agenda packet showed the different levels of income and Attachment 3 showed the allowable locations for houses in Springfield. Councilor Pishioneri asked if the funds had to be paid back if the house sold. Mr. Ko said yes, if the house was sold, deeded to the homebuyer's children, turned into a rental, or refinanced, the funds would need to be paid back. City of Springfield Council Regular Meeting Minutes January 20, 2009 Page 15 . Councilor Lundberg asked about the minimum standards, who monitored those standards and how they were assessed. Mr. Ko said he was proposing that the homebuyer would present a plan showing how they would bring the home to minimum home quality standards within six months. Staff at HUD had established guidelines for inspection. City staff.would be responsible for inspecting for those standards and the homebuyer would need to do other inspections. Councilor Leezer asked if there was something in place ifthe homeowner did not bring the house up to standards by the six months. Mr. Ko said with the current program, a lien was placed against the property if minimum standards were not met. If the homebuyer didn't perform to standards, the City would step in, claim the funds and remedy the situation. Council Pishioneri referred to Attachment 3 and asked how about numbers in the district areas. Mr. Ko said those were the census numbers. IT WAS MOVED BY COUNCILOR LUNDBERG WITH A SECOND BY COUNCILOR WOODROW TO APPROVE STAFF'S RECOMMENDATION FOR THE PROPOSED NSP HOMEBUYER PROGRAM TO USE APPROXIMATELY $227,119 TO HELP INCOME-QUALIFIED HOUSEHOLDS PURCHASE THEIR FIRST HOME, AND THE OTHER $100,000 OF NSP PROGRAM FUNDS TO BE MADE AVAILABLE TO ASSIST WITH DEMOLITION AND/OR REDEVELOPMENT OF BLIGHTED DOWNTOWN COMMERCIAL PROPERTIES. THE MOTION WAS PASSED WITH A VOTE OF S FOR AND 0 AGAINST (1 Absent - Wylie). 3. December 2008, Disbursements for Approval. Assistant City Manager Jeff Towery noted that Finance Director Bob Duey was out oftoWn and unable to present this item. Checks totaling $7,014,066.42 were issued in DECEMBER 2008. Documentation supporting these payments has been reviewed. Councilor Lundberg declared a conflict of interest and recused herself due to a payment to her employer, Marshall's Heating and Air Conditioning. IT WAS MOVED BY COUNCILOR WOODROW WITH A SECOND BY COUNCILOR PISmONERI TO APPROVE THE DECEMBER 2008, DISBURSEMENTS FOR APPROVAL. THE MOTION PASSED WITH A VOTE OF 4 FOR AND 0 AGAINST (1 Abstention - Lundberg and 1 Absent - Wylie). Mr. Grimaldi reminded the Council of the TEAM Springfield meeting scheduled for Saturday, morning, January 24 at the new Forest Service BLM facility. BUSINESS FROM THE CITY ATTORNEY ADJOURNMENT The meeting was adjourned at approximately 8:25 p.m. City of Springfield Council Regular Meeting Minutes January 20, 2009 Page 16 Minutes Recorder Amy Sowa Attest: ci~l~