HomeMy WebLinkAbout05/09/1994 Work Session
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,. City of Springfield
Work Session Council Meeting
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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.
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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.
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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.
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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.
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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
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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.
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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.
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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.
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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.
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Work Session council Meeting
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ADJOURNMENT
The meeting adjourned at 8:00 p.m.
Minutes Recorder - Shari Higgins
ATTEST:
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City Recorder