Loading...
HomeMy WebLinkAbout05/09/1994 Work Session . ,. City of Springfield Work Session Council Meeting . . MINUTES OF THE MEETING OF THE SPRINGFIELD CITY COUNCIL HELD MONDAY, MAY 9, 1994 The City of Springfield Council met in Springfield City Hall, Meeting Room 2, 225 Fifth Street, Springfield, Oregon, on Monday, May 9, 1994, at 6:10 p.m. ATTENDANCE Present was Council President Burge and Councilors Shaver, Walters, Schanz, Beyer and Maine. Mayor Morrisette was absent (excused). Also present were City Manager Mike Kelly, City Recorder Eileen Stein, Public Work Director Dan Brown, City Engineer Al Peroutka, Environmental Programs Manager Gary Colwell and members of staff. 1. Sanitary Sewer Manaqement Report City Engineer Al Peroutka gave the staff report. He reported the city will need to fund $14 million ($4.2 million for Kelly Butte Interceptor and $10 million for South Springfield Interceptor) in sewer projects within three to four years in order to meet demands of future city growth. Mr. Peroutka explained the city does not currently have the funds needed, but the Public Works Department has developed a funding plan. Mr. Peroutka explained the city's sewer needs that are competing for funding. He explained how these capital needs are in addition to the need for regular maintenance and replacement of existing sewer lines which are deteriorating. He described in detail the following needs: sanitary sewer replacement $250,000 per year; storm sewer replacement $50,000 per year; stormwater quality mandates $654,000, plus annual funding; participation in private projects of $100,000 per year; and sanitary sewer extensions $7 million. Mr. Peroutka explained the South Springfield Interceptor project and provided background information on interceptor needs for the entire city. He reminded the Council of past Council decisions to increase sewer rates by five percent per year to build up a reserve in the Sewer Revenue Fund for a revenue bond for construction of the project. Mr. Peroutka stated the city is hoping for three million dollars in State Revolving Loan Funds to use with the current reserves in FY 94/95 to complete the Kelly Butte interceptor phase of the project. Councilor Maine asked if the five percent increase used to fund the capital reserve was also used for maintenance. Mr. Peroutka replied the five percent increase was over and above that required for maintenance costs. The Council discussed the merits of different types of sewer piping materials and sizing. Specifically, they discussed using PVC pipe versus concrete pipe, up to 24 inches in diameter, which would have less joints and a tighter seal. Mr. Peroutka discussed house laterals which need small connections. He also reviewed the process for fixing pipe leaks including the use of the sewer video monitor. . City of Springfield Work Session Council Meeting Page two Councilor Walters asked if the city would need additional pumping stations as part of the Interceptor Project. Mr. Peroutka replied no, and reported the city would remove the two pumping stations currently located off of West D Street. He explained Willamalane Parks and Recreation District has inquired about the D Street property. Councilor Shaver suggested selling the property to help pay for the sewer extension. 2. Proposed Reqional and Local Sewer User Rates Environmental Programs Manager Gary Colwell provided the staff report. Mr. Colwell discussed the sewer rates citizens currently pay on their monthly utility bills. He provided a handout regarding current sewer rates. He noted they are set at 44 percent for regional sewer use and 56 percent for local use. Mr. Colwell explained the regional rate portion pays for administration offices and plant operations and the local rate portion pays for city sewer operations, maintenance, and capital needs; Mr. Kelly explained how both Eugene and Springfield must adopt the regional sewer rates by ordinance. He also explained the operations at the Eugene plant site includes all field activities and the Springfield administrative site handles the grants, Commission staffing, budget and audits. Councilor Burge clarified both Eugene and Springfield must agree to change the regional rates. . Councilor Burge asked if the city of Eugene receives over $1 million and the city of Springfield receives approximately $225,000 for indirects for local rates. Mr. Kelly answered yes, and explained in detail the functions of the two sites. Councilor Burge asked why Eugene City Manager Mike Gleason is on the commission. Mr. Kelly explained how the Eugene Council was split over representation on the commission and Mr. Gleason was selected as someone who could represent both environmental and business concerns. He also explained Mayor Morrisette appointed himself as the city's elected representative and Scott Engstrom is the Springfield citizen representative. Councilor Burge asked where revenue could come from for local capital projects. Finance Director Bob Duey replied it could be raised by increasing sewer rates or revenue issuing bonds. Councilor Shaver clarified that for sewer lines 24 inches or less, ownership and maintenance responsibility is local, and for sewer lines larger than 24 inches ownership and maintenance responsibility is regional. Mr. Kelly explained how the decision was made to have each city responsible for their own needs. He reported how Springfield looked at the balance between the two cities and its own needs. He said it would not of been beneficial for Springfield to have the commission responsible for its needs, because most of the city's sewer lines were 18 inches or under. . The Council discussed the idea of MWMC becoming a private corporation. Mr. Kelly said the commission could possibly function under the Metropolitan Policy Committee in the future. . . . City of Springfield Work Session Council Meeting Page Three Councilor Burge asked about increasing the regional rates and placing dollars in the General Funds in-lieu-of increased property taxes. Mr. Kelly discussed the concern that this would put Springfield in the position of a customer to the city of Eugene, who would be setting the rates. Mr. Colwell explained the proposed rate increases for FY 94/95, using three scenarios of GRADUAL, WAIT and NOW, per the staff report. He discussed his calculations for meeting sewer capital needs through the year 1999 and reviewed line by line the reserves and additional resources the city will need. The Council reviewed the current level of debt service. Mr. Duey stated the city usually receives low interest rates with market rates varying based on the current economy. Mr. Colwell gave detailed information regarding the GRADUAL scenario, which he reported was a 1992 Council guideline. Councilor Burge stated the Council policies of two years ago may need to be reviewed. Mr. Colwell explained the WAIT scenario is the same as the GRADUAL scenario, except it remains flat with the only increase to pay debt service. Mr. Colwell described the NOW scenario and said it shows what rates would be taking into consideration the passage of the new Ballot Measure 5. Council discussed the ballot measure, scheduled for the November General Election, and the impact it would have on current city fees or rate increases. Mr. Kelly explained an ordinance passed before the election which would increase rates by steps over the next five years may possibly be permissible if the measure passed. He said as the election becomes closer the city may choose to review its fees and possibly adopt a step increase by ordinance. Councilor Burge discussed the NOW versus GRADUAL scenarios. He stated he favored the NOW approach as the city would need approval on a smaller revenue bond. Councilor Maine asked if the regional costs would increase also. Councilor Beyer asked if the five percent capital needs increase was forever or just until the needed revenue was achieved. Mr. Colwell stated the increase was not ongoing and referred the Council to the GRADUAL scenario for timeframes. Council discussed the scenarios in detail, asked questions with the charts, and looked at averaging a five year rate increase. discussed holding current rates flat over the next three years. regards to They Mr. Kelly stated the public hearing on the proposed local and regional sewer rates is currently scheduled for June 6. By consensus, the Council agreed to have staff prepare an ordinance for Council consideration for the NOW scenario for the June 6, 1994 meeting and update the ordinance based on public testimony. The meeting recessed at 7:25 p.m. The meeting reconvened at 7:35 p.m. . City of Springfield Work Session Council Meeting Page four 3. Social Gamblinq Ordinance Mr. Leahy explained the City Attorney's Office needs direction from Council regarding preparation of a new social gambling ordinance. He apologized for previous advice that has since been found to be incorrect, regarding providing an exemption for charitable, religious and fraternal organizations. Councilor Burge suggested a provision be created to allow non-profit organizations to provide social gambling. Councilor Walters suggested non-profit and fraternal organizations receive special event approval to allow gambling. Councilor Shaver suggested limiting participation for non-profit organizations to groups who have been established for at least three years. Mr. Leahy asked Council for directions regarding allowing licenses card tables. Councilor Walters and Councilor Maine suggested limiting card tables to a certain number of times per year and for fundraising purposes only. Councilor Schanz inquired about the licensing permit process. . Councilor Beyer asked where funding for the enforcement came from when the gambling ordinance was first adopted. Chief DeForrest explained the current intergovernmental agreement was not entered into until earlier this year, so there was no prior active enforcement. Mr. Leahy and Chief DeForrest explained the background on enforcement issues associated with social gambling. Councilor Walters inquired about the bowling alley fee of $6.00 per alley per day. Mr. Kelly said staff would check with the development services department regarding this provision of the ordinance. Council had a lengthy discussion regarding the enforcement of gambling in Springfield. Councilor Beyer asked Chief DeForrest to provide her with additional information regarding the ordinance and enforcement funding sources. By Consensus, the Council asked Mr. Leahy to prepare an ordinance allowing social gambling for use by non-profit organizations only, to research yearly limitations, a two year waiting period, and to suggest a permit process. Mr. Leahy also agreed to review Section 5 of the current ordinance regarding bowling alleys. Councilor Walters questioned the two year waiting period, based on newly established non-profit groups who may wish to hold fundraisers. Councilor Shaver clarified a fundraiser such as a "casino night" is not the same as a non-profit group conducting social gambling for profit. The latter he said should not being permitted. Chief DeForrest commented it would be easier to enforce the state statues, which do not allow social gambling, versus a city ordinance, due to the high level and cost of investigation required. . Mr. Kelly told the Council they would have the opportunity to extensively review the current license fees and charges at an upcoming work session meeting. He also suggested the Council conduct a public hearing to allow citizens to testify before amending the current social gaming ordinance. . . . City of Springfield Work Session council Meeting Page four ADJOURNMENT The meeting adjourned at 8:00 p.m. Minutes Recorder - Shari Higgins ATTEST: ~ City Recorder