HomeMy WebLinkAbout01/25/2010 Work Session
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City of Springfield
Work Session Meeting
MINUTES OF THE WORK SESSION MEETING OF
THE SPRINGFIELD CITY COUNCIL HELD
MONDAY, JANUARY 25,2010
The City of Springfield Council met in a work session in the Jesse Maine Meeting Room, 225 Fifth
Street, Springfield, Oregon, on Monday, January 25, 2010 at 5:30 p.m., with Mayor Leiken presiding.
ATTENDANCE
Present were Mayor Leiken and Councilors Ralston, Lundberg, Wylie, Leezer, Simmons, and
Pishioneri. Also present were City Manager Gino Grimaldi, Assistant City Manager Jeff Towery, City
Attorney Joe Leahy, City Recorder Amy Sowa and members of the staff.
1. 2010 Lane Transit District Bus Service Redesign.
Senior Transportation Planner David Reesor presented the staff report on this item. To prepare a
balanced Fiscal Year 2010-11 operating budget, Lane Transit District (LID) planners were in the
process of identifying service cuts, and were examining personnel costs, materials and services
expenditures and other cost-saving measures. LID staff would present service issues to the Council
and provide an opportunity to ask questions and provide comments.
On December 14th, 2009, LID provided a brief memorandum to the City of Springfield describing its
most recent transit service evaluation. This memo was provided to Council via the Council
Communication packet. The memo explained that the dramatic reduction in payroll tax receipts this
year had created a budget gap for LID that must be filled through reductions in the operating budget.
The attached memorandum from LID further explained LID's 2010 bus service redesign. Additional
attachments in the agenda packet included:
· LID PowerPoint presentation: Provides general overview of 20 lObus service redesign.
· Tier One Service Reduction Proposal: Chart representing the draft service reduction proposal.
· Tier Two Service Reduction Proposal: Chart representing additional services that may be cut
if needed.
· 2010 Service Reduction / Redesign Proposal- System Map: Illustrates potential deleted
routes, new routes, and existing routes which will not change.
LID was currently identifying cuts to bus service hours of 20 percent or more. These plans were being
vetted with the community between January and April, 2010. As part of this process, LID staff would
present bus service issues to the Springfield City Council during the work session and would be
available to respond to questions and comments.
Mr. Reesor introduced Mike Eyster, LID Board President.
Mr. Eyster noted that Mark Pangborn, LID General Manager, and Andy V obora, Director of
Marketing and Communications from LID were also in the audience if Council had questions. He
presented a power point presentation which was included in the agenda packet. The first chart showed
ridership, service hours, and population growth. The challenge faced by LID was the decline of
payroll revenues, which drove their budget shortfalL He referred to some of the solutions, many of
which they had already implemented. Reducing service was the only alternative left to make up the
deficit they faced.
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Council Work Session Minutes
January 25,2010
Page 2
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Mr. Eyster referred to the goals during the redesign: maintain strong corridor service; maintain
minimum urban route frequency of 60 minutes; ensure changes to low income and minority block
'groups were not disproportionate; and achieve budget goal.
Mr. Eyster referred to a map showing the system overview, and discussed the summary statistics. He
discussed the system-wide effects of their cuts, including both the positives and negatives. Tonight
was the fIrst meeting with jurisdictions in the area, and they would be meeting with both Eugene and
Lane County in the coming weeks. They would also be meeting with neighborhood leaders, the
Metropolitan Policy Committee (MPC) Citizen Advisory Committee, and would hold public hearings.
Mr. V obora referred to a map showing where service would be cut and he explained some ofthe
changes. Core services would remain intact, but may not be running as frequently. The changes would
be phased in over time, about 60% in June with the bulk of changes in September. All SpringfIeld
changes would go into effect at the opening of the EmX in January of20ll. He explained the changes
for SpringfIeld. Some of the changes were in areas that were heavily used and they were trying to
connect major connections. He noted how the EmX line would affect some of the current routes. It
was very challenging for their staff to make the routes for the ridership. Springfield would actually get
a three percent net increase in service hours once the EmX was up and running.
Mayor Leiken asked about the timeframe for the EmX line on West 11 th Street in Eugene.
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Mr. V obora said it was anticipated construction would begin in 2014-2015 if all went well. If the 11 th
Street EmX didn't go through, Main Street was an opportunity for an EmX line.
Mayor Leiken asked if LID had talked with the Federal representatives about converting capital
dollars to operational dollars. It seemed like LID was capital rich and operational poor.
Mr. Vobora said they were able to do that with ARRA funds they received last year.
Mr. Eyster said they had applied for more stimulus money, but it would also be a one-time deal. Many
transit districts around the nation were making the case that those funds needed to be converted.
Mr. Pangborn said the financing plan for West 11 th EmX, was to receive the local share from State
Lottery bonds and the rest from the Federal Government. If part or none of that came to be, they
wouldn't be able to proceed. LTD did get Federal funds that came with some restrictions which they
had used primarily for capital, but in certain instances could be used for operations. In their current
budget, they had already moved some of those funds to the operational side. The reauthorization funds
promised to allow funding for operations, but he wasn't sure when that would happen.
Councilor Ralston noted an error on the route map.
Councilor Leezer said the Pioneer Parkway EmX was scheduled to come online in 2011. She asked if
the other lines would be deleted in conjunction with the opening of that EmX so there was no lapse in
coverage.
Mr. Pangborn said that was correct. It would happen on a Sunday.
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Mr. V obora said LID was actually looking at a $6.5M shortfall, but were addressing half ofthat this
year and half next year. They had challenges they were facing with this budget shortfall.
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Council Work Session Minutes
January 25,2010
Page 3
Councilor Wylie said she hated it when fares had to be raised. She asked if they had found that raising
fares had reduced ridership.
Mr. Vobora said they had always done raises incrementally. so it didn't affect ridership. There were
many other factors that changed along with fares that made it complicated. They were proposing a
pass fare increase in July.
Councilor Wylie asked if reducing fares might increase ridership, making the buses more full.
Mr. V obora said their buses were currently full. To mitigate the affect cutting service would have on
capacity, they would be adding some of the sixty foot articulated buses.
Councilor Wylie asked how the group pass program worked.
Mr. V obora said a small monthly fee was paid by the participating group, which was about ten percent
of the cost of a monthly pass, for every participant in the business. It averaged out at about $5/per
person per month. They had about seventy-eight participating businesses. PeaceHealth was trying out
a new program of distributing full price passes to only those employees that requested it, but would be
evaluating whether or not there was any cost savings.
Councilor Pishioneri asked if there were plans to extend the EmX line to east Springfield. Yes. He
asked about the timeframe for that line.
Mr. V obora said they were just talking about what the 4th corridor of the EmX line would be.
Mr. Pangborn said once they had a decision on West Eugene in the fall, they would immediately begin
a discussion about the next corridor. By the end of this year or the beginning of next, LID would be
coming back to the Springfield and Eugene City Councils regarding this issue. The first corridor
connected the two cities, the second corridor was in SpringfieId, and the third would be in Eugene.
The question would be where to put the 4th corridor. A lot of that would be driven by the funding from
the Federal government. He liked the idea of a bus from Thurston that could go all the way out to
WalMart on West 11 th. They could then bring feeder buses into those EmX lines.
Councilor Pishioneri asked who was the decision body regarding that fourth corridor.
Mr. Pangborn said it would be the City Councils of Eugene and Springfield and the LID Board. It
could also go back to the MPC because it was a regional decision.
Mr. Vobora said one of the major things considered was ridership, and Main Street had a high
ridership, making it a prime candidate.
Councilor Simmons said the weakness was the lateral movement in the neighborhoods. When LID
looked at east Springfield EmX potential, he didn't want them to forget the Booth Kelly corridor. LID
was facing a very tough budget issue. He noted that the Fairview line had never been very productive,
but was sensitive because of the connection for the adult activity center. He felt LID had made a
realistic decision. The test would be whether or not they were willing to restore service. He liked the
change in the Mohawk area. With the increase in activity in that area, L TD was a critical part. He felt
LTD should be part of TEAM Springfield because they were part ofthe delivery service in Springfield
and had an important role. He noted that Ride Source was an issue, and something the legislature
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Council Work Session Minutes
January 25, 2010
Page 4
needed to review. It was critical that the senior and disabled services were funded. Once the Jasper
Natron area was developed, LID would need to look at that area. They had a tough decision, but it
was in good hands; They had to balance their budget.
Councilor Ralston said it was always tough to make cuts. He was not opposed to what they had done.
He felt there were a lot of people riding the bus because it was cost effective, and raising fares was not
an unfair thing to do. He would like them to consider raising it more. Those using the system should
pay for it. He suggested cutting service to five days a week, and reducing the weekend runs.
Mr. V obora referred to the service change summary in the agenda packet and discussed the weekend
and weekday schedule.
Mayor Leiken asked if LID had a seat on the MPC Board. No. He was surprised they didn't since
they relied on payroll taxes. One of the questions siting consultants asked was about the transit
services available.
Mr. Pangborn said he was not sure of the history of why they were not part of MPC, but would be
interested in exploring that.
Councilor Wylie said the weekend service was payback for businesses whose employees used the
service during the week for work, and could use the service on the weekend to go shopping.
Councilor Pishioneri said service industry workers worked odd hours and weekends, and those people
probably needed the transportation more. Weekends were critical for the general population.
Mr. V obora said he had the opportunity to help the kids from Hamlin Middle School to plant trees
along the Pioneer Parkway EmX line. He said they were a great group of students and very sharp
2. Mid-Year Review of Downtown Criminal Activitv and Demand for Police Services.
Community Services Manager Dave Puent and Police Chief Jerry Smith presented the staff report on
this item. Illegal activity and the persistent demand for police services continued in a defined
downtown geographical area.
Mr. Puent said on July 20, 2009 Council conducted a public hearing on the liquor license renewal for
five downtown establishments. As part of the endorsement review for the five establishments, Council
was provided with information that identified a high level of request for police assistance and criminal
activity that radiated outward from an area of 4th and Main Street to approximately 500 feet. At the
conclusion of the public hearing, Council was requested to provide a recommendation to OLCC
relative to the pending endorsement of their liquor license applications. Council provided the.
following recommendations to OLCC:
Club 420
Stables Bar & Grill
Jim's Landing
The Brick House
Bright Oak Meats
Deny
No Recommendation
No Recommendation
Grant
Grant
Testimony received that evening mostly centered on three of the establishments; Club 420, Stables Bar
& Grill and Jim's Landing. OLCC has completed its investigation of the three downtown bars, which
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City of Springfield
Council Work Session Minutes
January 25,2010
Page 5
received a "No Recommendation" and/or "Deny" from the City Council. The OLCC decision was
pending. Because of the high concentration of illegal activity and the increasing need for police
assistance in this defmed geographical area, staff was directed to provide a mid-year report to Council
relative to the reduction or persistent continuance of illegal activity within this area.
Chief Smith noted the attachments included in the agenda packet and discussed the level of criminal
activity in the affected area. Police calls for service dropped about thirteen percent last year, and there
was a correlation between those numbers and crimes. With those drops in service, they still saw an
upward trend in the downtown area.
Councilor Pishioneri referred to Chart C, and asked about the difference between calls for fights and
calls for assaults.
Chief Smith explained the difference.
Councilor Pishioneri said those calls disrupted the surrounding area. He referred to Chart D regarding
Total Felonies and Total Warrants. He asked if they were parole violations (PV's) or arrests.
Chief Smith said based on the general application, both would be in the total.
Councilor Pishioneri referred to Chart E, and asked about the number of calls from owners.
Chief Smith said the calls originated from the business or from a citizen or from an officer in the area.
The report didn't distinguish who made the call.
Council Pishioneri said that would be a question he would ask if challenging these numbers. He
referred to Chart H and also asked if they could separate out if the call was from the public or a police
officer. It would be more illustrative of the issue.
Councilor Wylie asked about timeline with OLCC regarding these licenses.
Mr. Puent said OLCC had finished their investigation and sent the information to the corporate office.
The final results should be ready by the end of the month.
Councilor Wylie asked when the business would have to quit serving liquor if the OLCC denied their
application.
Mr. Puent said a recommendation for denial would go out immediately. The establishment could
appeal and serve while they appealed. If an establishment received a denial and appealed, the
conclusion of the appeal would be complete by mid summer.
Councilor Wylie said she wanted to see the crime statistics if one of the establishments was denied.
Councilor Lundberg asked if any establishments had been on a work plan program. That seemed to be
the way OLCC was going rather than denying.
Chief Smith said Club 420 was on self initiated voluntary work plan. Since it was voluntary, after a
certain amount of time, they were not required to continue.
Mayor Leiken asked what was on the 800 block.
City of Springfield
Council Work Session Minutes
January 25,2010
Page 6
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Chief Smith said it was Lithia Toyota.
Councilor Pishioneri thanked the Chief for the statistics. He appreciated the work done by staff.
3. Cherokee Drive Local Improvement District Funding & Financing Options.
City Engineer Ken V ogeney and Housing Manager Kevin Ko presented the staff report on this item.
Council directed staff to explore options to reduce homeowner costs on the Cherokee Drive LID
project. Options presented for Council discussion included: alternatives for Community Development
Block Grant (CDBG) funding; implementing a City-funded subsidy program; a possible freeze of
Local Wastewater Systems Development Charges (SDC's); and/or a reduced interest rate for
assessment financing.
Staff researched four options to reduce the overall costs to property owners in the Cherokee Drive LID
project. These options were summarized below and discussed in further detail in Attachment 1 ofthe
agenda packet.
CDBG Assistance: Staff conducted a mail-in income survey of the 44 property owners within the
proposed LID. Twenty-seven property owners responded to the survey. Of all respondents, 16
appeared eligible for CDBG funding which was less than the 51 % needed to provide CDBG funding
for the overall project. Individual property owners could apply for assistance through the Springfield
Home Improvement Program.
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City-Funded Subsidy: In the early 1990's, Council adopted a policy to subsidize street improvement
costs for single family and duplex residences. While this program was specific to street improvement
LID's, the Council may wish to consider providing a subsidy for the property owners in this LID: ~e
street improvement subsidy mimicked the guidelines for area-wide CDBG funding subsidies and
based the amount of the subsidy on the property owner's income. Implementing such a program for
this LID would significantly increase the City's share of the cost and would be paid using wastewater
user rate revenue.
SDC Rate Freeze: Council may also wish to defray property owner costs by freezing the local System
Development Charges at their current rates. This could occur for a time certain (i.e. a specific number
of years), or Council could choose to keep the SDC frozen until such time as the property owner
connected to the system, which could be several years after construction of the public system.
Assessment Financing Rate: A fourth option to reduce costs incurred by the property owners in the
LID was to alter the interest rate for construction assessments charged by the City. Typically,
construction assessments were tied to the 1 a-year Treasury note. The 10-year note had been declining
recently, though the long term average had been hovering near 3.5%. The current rate was
approximately 3.8%. Council could assess a rate based on the long term average, not the current rate,
to reduce the assessment costs property owners paid over a 1 a-year loan period.
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Staffs recommendation for a preferred package to both help offset property owner costs and protect
the City's interest was as follows: 1) make CDBG funding available to all qualifying homeowners on
an individual basis, and 2) apply an interest rate for the construction fmancing of3.5%, consistent with
the lO-year Treasury note.
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Council Work Session Minutes
January 25,2010
Page 7
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Mr. Vogeney said a neighborhood meeting was scheduled on February 18 to discuss design. He said
other staff were available for questions. He explained in more detail each of the four options.
Councilor Ralston said he thought staff had done a good job. He thought it would be good for staff to
fmd six more people in the neighborhood that qualified for CDBG funding so they could get assistance
for the whole project. If they still did not qualify as a group, he agreed with letting them apply
individually. He referred to the SDC rate freeze and said that was not what he had in mind. He was
thinking of a reduction in the hook-up fee.
Mr. Vogeney said the City didn't charge a hook-up fee, but rather charged for plumbing permits and
SDC's.
Councilor Ralston said he liked the interest rate of 3 .5%, but was not interested in a City-funded
subsidy. He would like to look first to see if the full neighborhood qualified.
Mr. Vogeney said if the neighborhood qualified for CDBG funding, it would federalize the project
which would mean the City would have to pay the higher prevailing wages for the project. Also, all
property owners would have to connect to the sewer up front, rather than wait until their system failed
or they chose to connect.
Councilor Ralston said as long as they knew it would be upfront, that would be fair.
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Councilor Pishioneri said he agreed with staff's recommendation. He didn't want higher user rates on
existing rate payers. If there was a SDC rate freeze, it needed to have a time limit. It made sense to
use the lower interest rate. He agreed with CDBG funding to those that qualified, but was not sure if
he agreed with checking with the rest of the neighborhood for eligibility. Individual CDBG funding
was a good idea and so was financing at 3.5%.
Mayor Leiken asked about the SDC freeze and if this was something besides the deferral of fees that
Council had enacted.
Mr. V ogeney said this was a different discussion. Council wanted staffto look at the best package for
citizens regarding the sewer hook-up. That was independent from the earlier direction.
Councilor Pishioneri asked if there was other funding available through the State or the Department of
Environmental Quality (DEQ).
Mr. Vogeney said there could be some property owners eligible for elderly assistance. Through DEQ
there wasn't a program available to help get people off the septic to sewer. Staff could look into a
State revolving loan if the City needed to borrow funds for the project. That was a highly competitive
process and the City probably wouldn't qualify.
Councilor Simmons said he agreed with the low rate of interest. He discussed income eligibility and
an incident that occurred in his neighborhood when a participant retired by the time the project was
done. He didn't favor freezing SDC rates. There were some opportunities in the staff report that could
be done, and he would like to see it done in the most favorable way for the neighbors without
punishing current rate payers. In certain situations, the Council had the right to waive fees if they
chose.
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City of Springfield
Council Work Session Minutes
January 25,2010
Page 8
Mr. Vogeney said their intent was for an SDC freeze for this area only, not citywide, similar to the
program for the downtown district with fifty percent SDCs.
Mr. Ko clarified the questions regarding CDBG assistance. They would actually need seven additional
households to qualifY for the whole neighborhood to qualifY. Staffs experience had been that when
people did not reply to this type of survey, it meant they knew they would not qualify. He referred to
Councilor Simmons concern regarding eligibility for CDBG funds based on the previous year's
income. They were also required to look at the potential for the next twelve months to address
seasonal employment, raises, retirement, etc. It was hard to know the trend.
Councilor Lundberg said she was fine with staff recommendations. She liked the flexibility of
allowing individuals to come to the City for CDBG funds when they were ready to hook to the sewer.
Others could be fine with the good interest rate over a long period of time. Those two options seemed
to fit most of the people. She hoped the design of the sewer lines were better designed than those at
her home, which was built in the 1980's.
Mr. Vogeney said as part of workshop on Feb 18th, they would ask homeowners where their lines ran.
Council agreed with staffs recommendation of Options 1 and 4.
ADJOURNMENT
The meeting was adjourned 6:48 p.m.
Minutes Recorder - Amy Sowa
Attest:
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WLW\!"
Amy Sowa
City Recorder