HomeMy WebLinkAbout06/14/2004 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, JUNE 14,2004.
The City of Springfield council met in a work session in the Jesse Maine Meeting Room, 225
Fifth Street, Springfield, Oregon, on Monday, June 14,2004 at 5:30 p.m., with Mayor Leiken
presiding.
ATTENDANCE
Present were Mayor Leiken and Councilors Ballew, Woodrow, Lundberg, Ralston and Fitch.
Also present were Assistant City Manager Cynthia Pappas, City Attorney Joe Leahy, City
Recorder Amy Sowa and members of the staff. '
1. Joint Meeting with Springfield Area Chamber of Commerce.
Mayor Leiken introduced Springfield Chamber President Sue Slaughter-Nichols. Other
Springfield Chamber Board members included Paul Roth, owner of Roaring Rapids Pizza and
Camp Putt; Chamber Vice President Mike Donnelly, Springfield School District; Chamber
Treasurer Dean Huber; Dan Egan, Executive Director of the Springfield Chamber; Corkey
Gourley, State Farm Insurance; and Richard Boyles, Insight Hotel Management Group.
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The current Chamber Board President, Sue Slaughter-Nichols and several members ofthe
Chamber's Executive Committee met with the Mayor and Council March 8, 2004 to share
information and discuss the contract for tourism services, the Chamber's work plan, and
common goals and issues. The Chamber and City Council planned a follow-up meeting to
include major proposed projects: possible urban renewal districts for Downtown and Glenwood
and development of a new civic center and how it could enhance tourism.
Ms. Slaughter-Nichols said since the Chamber met with council on March 8, they have
conducted eight discussions with potential partners and property owners and have completed all
of their first round conversations. They looked at Gateway, Glenwood and downtown. All three
areas continue to be the focus for a conference center/hotel project at this time. A group
attended a conference in Florida and took a road trip through the Willamette Valley to areas that
have or are beginning public assembly projects. She discussed the different areas they visited.
There were a number of private and public representatives that were a part ofthis trip, including
representatives from Convention and Visitor Association of Lane County (CV ALCO), Councilor
John Woodrow and City Manager Mike Kelly.
Mr. Boyles discussed the projects in Corvallis at the CH2M Conference Center and in Salem.
Both are projects where there had to be substantial public involvement to get the project
accomplished. The hotel piece was subsequent to an express community desire to get a
conference center done. There are other models. From a hotel perspective, a project could be
done in Springfield but it would take a public/private partnership to get it accomplished. Council
has wanted to learn about this project and the Chamber members hope to bring some ideas to
council.
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Community Development Manager John Tamulonis presented a slide show of si~ilar projects.
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Council Work Session Minutes
June 14, 2004
Page 2
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Ms. Slaughter-Nichols referred to the slides and pointed out the hotel and conference center in
Salem. Mr. Tamulonis referred to slides showing different conference centers in Florida and
around the country. He discussed the information and ideas they got from the conference in
Florida.
Mr. Boyles said the project they visited in Florida was done in pieces and does not work together
effectively. A vision needs to be in place to make it function well.
Mr. Roth said they talked with eight potential partners about Glenwood and the Gateway area for
a potential development. He was most interested in the Glenwood area and they spoke with
potential partners for that area. He noted that someone said Glenwood looked great from 1000
feet, but is not as attractive from ground level. He discussed urban renewal and how that could
assist in the development of this area. With city involvement, there could be a better way to
package Glenwood to potential partners. There is real interest in Glenwood, but it is not yet the
time. There is a need to work on the packaging.
Ms. Slaughter-Nichols said the potential partners said that if the Glenwood and/or downtown
areas were Urban Renewal Districts there would be greater possibilities. The city involvement
seems to be an important message for the private developers and other potential investors.
Gateway continues to be a special focal point as the existing visitor's center is clustered there.
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Mr. Egan said Lane County had a tourism summit earlier in the year. During the summit, it was
noted that Eugene and Springfield have not kept up with these types of developments. The
infrastructure in Lane County has not been appreciatively added to in a number of years. Other
areas throughout the northwest are competing with Lane County for businesses. The Lane
County Tourism Task Force is tasked to do a gap analysis; what exists now in Lane County, how
do we compare to other areas, and where are the gaps (do we have enough hotels, meeting spaces
and attractions). There is great scenery in our area, but not a lot of attractions. We haven't built
a lot of facilities in this area. The University of Oregon (UofO) has added to their facilities,
which is a good thing. The UofO is a major player in bringing people in for sporting events,
schooling and conferences. We are less competitive because of the things being done in other
counties. The Salem conference center will be opening in 2005.
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Mr. Egan said the task force is looking at a lot of other issues and new ideas. He referred to a
magazine discussing technology making meetings and conferences more effective. Many new
facilities are adding this component. At the Florida conference, it was advised that new facilities
enlist as much new technology as affordable. He said now is the right time for the conference
center with the technologies. The Clarion is no longer available for a meeting space, so there is
now a more urgent need for such a space. He referred to the discussions held with eight potential
partners. They spoke with these people about a conference center and hotel. A number of
people were interested, and some were not interested. They will have second conversations with
those who are interested. There are a couple of questions they need council to answer so the task
force can relay them to the potential partners. One question is what is the city's stand?
Sometimes questions are area specific relating to downtown or Glenwood. There is a strong
sense there needs to be a strong commitment from the city in the downtown and Glenwood areas.
The private sector feels these projects are done with public involvement. The Chamber would
like to have a discovery meeting with the Mayor and council about the financing they have
learned about through their research. The Chamber has information on how the business plans
work and how the financing works for the cities and the private developer. They would like
another level of meeting with city council and staff. He discussed one of the fmancing options
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Council Work Session Minutes
June 14, 2004
Page 3
of a private party building the project and leasing it back to the public entity until the public
entity owns the building.
Councilor Woodrow asked Mr. Boyles how many people a conference center and hotel might
employ.
Mr. Boyles said assuming the hotel is full service and provided service for the conference center
as well, it would employ about 160-200 people. There would be seasonal changes and changes
with special events.
Councilor Woodrow asked how many room nights that would be per year.
Mr. Boyles said with a 200 room hotel, you would likely be able to achieve 65-70% occupancy.
Mr. Egan discussed the room occupancy of the Hilton and the Hult Center in Eugene.
Councilor Ralston said he is not in favor of public involvement. He would like to know more
about the financing. Our citizens have to make the decision on financing such a project. He is in
favor of a convention center, but it should be market driven with private funding.
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Mr. Egan said it is council's job to protect the public's interest. There are about a dozen ways to
finance. The chances the private sector would pursue this without the city's involvement is
rather slim, but they could look at that option. They can look at models where the public
exposure is minimal. A conference center alone does not generate enough revenue to pay its
debt over time. If you have a hotel with the conference center, it gives the ability to structure
between the hotelier and the city or county, a repayment schedule that protects both. The goal is
to generate enough revenue to payoff all investments and have some left over. The next step is
for the council to go and meet with other cities to see what they have done.
Councilor Fitch said as the Chamber of Commerce looks at a conference center, the Chamber
members would benefit by the money brought in by those visitors. She asked what the success
rate was of these conference centers and if they are used more by out of town visitors or in town
groups. She also asked how much they are subsidized.
Mr. Egan said it varies a lot. Placement is very important and that is why studies are done. The
Chamber has done many studies over the years. They know it is important not to make a mistake
in placement. He referred to a case study in which a hotel was located in the wrong place in a
community and why it failed. The Chamber would like to meet again with council to discuss
models that work and get council's input. He discussed subsidies and looking at ways to build
the conference center and hotel without relying on subsidies. He discussed areas that have put in
only a conference center or only a hotel and the ineffectiveness of both scenarios.
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Mayor Leiken said it would be best to look at areas that are most ready to go. In Springfield, the
Gateway area is the most ready. With the ongoing work that needs to occur in downtown and
Glenwood, those areas are not ready to go at this time. He said by focusing on Gateway for a
conference center they may be able to get more citizens involved. Gateway is a great site in the
metropolitan area. He referred to the 1-5 Beltline project and the support that project received
because it was ready. There is still a lot of work that needs to be done in downtown and
Glenwood. We should start focusing on a certain area. He appreciates the Chamber and the
Task Force and their vision for Springfield.
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Council Work Session Minutes
June 14, 2004
Page 4
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Mr. Egan said they do not want to shut the door on any location, but will study this closely.
With council's input, the private sector will pay more attention to this project. Potential partners
ask questions and the Task Force cannot answer for the council. Meeting with council allows
them to get some answers and feedback from council to take back to those potential partners.
Having a more in depth meeting about what council likes and what council doesn't like will
move this project forward more quickly.
Mayor Leiken said they are getting close to asking for some commitments.
Councilor Ralston said the sooner they meet to discuss these details the better. The citizens need
to be involved if it is going to make an impact on citizens and public money. Citizens need to
agree to this; council cannot make the decision by themselves.
Ms. Slaughter-Nichols said they would also like to discuss urban renewal. Mr. Tamulonis
distributed a handout with a timeline and steps in adopting an urban renewal plan. Ms.
Slaughter-Nichols said the Chamber staff and committee members have attended several council
work session presentations regarding the concept of urban renewal. The Future Committee of
the Chamber has also discussed this at several of their meetings. The committee feels urban
renewal could be a positive and legitimate tool to be used in downtown Springfield and
Glenwood. Developers have said there is a need for this type of public investment. The
committee decided to urge the City Council to explore districts for both Glenwood and
downtown.
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Mr. Egan said the committee wanted to address this in a way that they could make a
recommendation based on what they have heard. Urban renewal is simple and complex at the
same time. In downtown it does seem like a legitimate tool. It has been used, usually
successfully, by cities in and outside of Oregon. The committee felt there needed to be a
discussion of the vision for those two areas. That needs to be in place as soon as possible so
businesses in the area can know if it would impact them. The committee wanted to discuss job
growth, because it is often a big part of urban renewal. Increased employment and property
value will influence the business community. Urban renewal should speak to how the
community feels about the area. Image and identity are important. Gateway happened with
involvement from the public sector and a vision. An increase in private investment is needed
and he discussed several opportunities that have presented themselves to the Glenwood area.
Small business is still the backbone of the Springfield/Eugene area. He discussed the future 1-5
project offering access into Glenwood which will be a great asset for this area.
Mayor Leiken said Commissioner Green returned from a transportation meeting and the
Environmental Impact Study (EIS) for the new 1-5 bridge now includes the study for an off ramp
into Glenwood.The fact it was included sends a strong statement and allows us to see this could
actually work. He discussed the great amount of support from the legislature, especially from
Representative DeFazio.
Mr. Egan discussed some of the other projects in Oregon cities that took a number of years. He
discussed the obstacles they faced and the opportunities that they took along the way which
brought their projects to fruition. Downtown continues to incrementally increase its value and is
on the right path. The Chamber would like to remain involved as the city looks at urban renewal.
It seems to be worth looking into further.
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Mr. Roth said he would like to encourage those that are creating the vision to think big. There is
great potential for these areas.
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Council Work Session Minutes
June 14,2004
Page 5
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Councilor Ralston referred to the handout showing the timeline for urban renewal. He asked if
the timeline was accurate. He said it seems to be moving too fast and would not allow councilor
the citizens to learn enough about urban renewal to make a decision.
Mr. Tamulonis said this timeline was presented to council in May. Council directed staff to
come back with a potential plan for downtown in July. As directed by council, staff has been
gathering information from Lane County Tax Assessor on Glenwood and downtown and has
talked with Willamalane Parks District Board regarding projects that could be incorporated in the
urban renewal. Staff hopes to bring a vision for downtown to council in July. A vision for
Glenwood would take longer because of the complexities of multi-jurisdictional areas within
Glenwood involving the city and Lane County. If urban renewal for downtown were to go to a
vote in November, there would be several months when information would be given to the
citizens about the district. This would have to go to a vote first and would then come back to
City Council for their approval in January. This would only go on the November ballot during
the General Election if council agreed to place it on the ballot.
Mayor Leiken said if council does not feel comfortable with the plan, they do not have to move
forward with it. Council had directed staff to move ahead with a plan to bring to council within
the timeline shown.
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Mr. Egan agreed that many people might not be able to vote for it at this time until there is more
information. If there was a vision that could show the projects and job growth in the community,
the business community would be able to support this. If it could be shown that urban renewal is
a tool to increase job growth, the business community would support it. Glenwood is special
with river frontage property and is different than downtown. The Chamber looks forward to
having a continued conversation about urban renewal with the council.
Mr. Egan reminded council that the first Chamberfest will be held June 22 at Roaring Rapids
from 4- 7pm. There will be significant business awards that night including the Pillar of the
Community to Weyerhaeuser and Businesses of the Year to McKenzie Forest Products and The
Pioneer Pacific College. The highlight of the event will be Mayor Leiken challenging Mayor
Torrey of Eugene to a miniature golf contest.
Mayor Leiken distributed some information on the Mayor's Business Advance Team (MBAT).
An invitation letter will be going out in the next week to those the Mayor would like to join this
task force. He looks forward to working with the Chamber on this as well.
2. Police Planning Task Force Application Review.
Police Chief Jerry Smith presented the staff report on this item. There are four existing vacancies
on the Police Planning Task Force. One is the School District representative and three are
citizen-at-large positions. Ten candidates have applied.
The Police Planning Task Force received a total of 10 applications to fill current vacancies.
Applications were received from Diana Garcia, Bruce Webber, Gery VanderMeer, Juan Cuadros,
Carol Dickenson, Bryan Smeltzer, Mark Watson, Wesley Seckler, Fred Simmons, and Tina
Novack.
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Council Work Session Minutes
June 14,2004
Page 6
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It was determined that Tina Novack does not live within the city limits and is not eligible to
apply except as a business representative. Since there are currently no business owner positions
available on the task force, she was not interviewed.
Candidates were interviewed on May 26th, May 27th, and June 3rd, 2004 by the PPTF
subcommittee. The task force recommends that Mark Watson be appointed to represent the
Springfield School District, and that Diana Garcia, Bruce Webber and Fred Simmons be
appointed as citizen-at-Iarge members.
Councilor Fitch was impressed with the number of applicants and the quality of the applicants.
She recommended the PPTF keep the applications for those not appointed for future vacancies.
3. Review Proposed Management Agreement Between the City of Springfield and the
Springfield Museum Board.
Development Services Director Bill Grile and Museum Coordinator Kris Redmond presented the
staff report on this item. Mr. Grile introduced Museum Board Chair Steve Stermer. Mr. Stermer
introduced Kris Redmond, Museum Coordinator, and Bev Medford, Museum Board member.
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Mr. Grile said the city hopes the Springfield Museum can prosper and grow by seeking
community support for its programs, thereby lessening dependence on the city for financial
support. The Museum Board believes it can accomplish this by improving the operation and
management of the Museum through a contract with the city for these services. To this end, the
board and city staffs have drafted a proposed agreement that can defme a new relationship
between the board and City. The board supports the proposed agreement. It is now presented to
the City Council for consideration.
The Springfield Museum values its relationship with the City of Springfield and is looking
forward to continuing a strong working relationship for many years. The proposed agreement
articulates mutual expectations. It creates the structure needed for the Springfield Museum to be
a "stand on its own," viable non-profit operation.
City Attorney Joe Leahy has been instrumental in helping craft the proposed agreement. The
Museum Board has had the proposal reviewed by its own legal counsel.
In short, the proposed agreement provides for the city t9 continue to own the building and
permanent collection, to pay utilities and to provide other minimal operations support such as
telecommunications and building security. The proposal calls for the Museum Board to maintain
and enhance the permanent collection and manage Museum programs and operations, in part as a
tourism facility and tourism support service. For this, the Museum Board requests $34,440 of
room tax proceeds during FY 05. In addition, the board requests (i) $2,637 as one-time funding
needed for computer equipment and software, and (ii) Museum building remodeling needed to
create an office for the museum manager. The requested remodel is estimated to cost +/-
$10,000. Finally, the board also requests that if room tax receipts for FY 2004/2005 exceed
projections that the Museum receive the amount over the estimate for FY 05 to help insure a
successful startup year.
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The proposed agreement is written to be renewed annually. If the proposal meets the council's
expectations, it will be presented for approval at the Regular Session on June 21, 2004 and will
take effecUuly 1,2004.
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Council Work Session Minutes
June 14,2004
Page 7
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Mr. Grile referred to Attachment II included in the agenda packet which outlined some one time
money the Museum is requesting for a permanent office.
Councilor Ballew asked if the $34,440 was already in the proposed budget.
Mr. Grile said that was correct. He said the agreement also provides the additional $12,637
being requested for the office, laptop and software components.
Mr. Leahy suggested referring to the exhibit in the paragraph under Section 3(3) in the contract
so the cost is locked in at $12,637.
Councilor Fitch referred to the note at the bottom of Attachment II which stated "the Museum
Board requests that if room tax receipts exceed FY05 projections, that such excess be granted to
the Museum. . . ". That is not normally done for other entities and she would liketo remove that
from the contract.
Ms. Redmond asked if they could put in the contract to revisit this in six months.
Ms. Pappas said council looks at room tax receipts annually. In the past, any overage has been
put into a fund that has gotten carried over to the next year. Groups could apply for those funds
at that time and the funds would be allocated based on criteria. That type of committee has not
been in place for some time.
Councilor Fitch said she would like to remove it since the one time money is already listed.
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Councilor Woodrow asked if they would be eligible to apply for CDBG funds as a 50 1 (3)(c)
agency. Ms. Redmond confirmed that they would if they met the requirements.
Councilor Ballew said the city does not have a lot of money. She discussed the amount the city
would continue to contribute to keep the Museum running. In addition, the city is being asked to
build an office they have never done before and to provide computers and software.
Mr. Stermer noted HB 2267 stated cities must spend the same amount on tourism as they have in
past years. To his knowledge, twenty-five percent of room tax dollars has been spent on tourism
in Springfield. The Springfield Museum has been the recipient of those funds in the amount of
$34,440. The Museum would come back each year to ask for those proceeds as part of their
contract. He discussed the money used to maintain the Museum in the past and how that amount
would be less in future years. The office they are asking to have built would replace the office
currently housed in city hall. He discussed the other computers they have in the Museum which
were donated to them. The board sees this as a win-win situation and is looking forward to the
relationship with the city. He discussed the cut in funds for the Museum Director from the city.
The board believes in the Museum and would hope the council could believe in the Museum and
allow them to carry this out.
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Ms. Medford said the Museum Board is stepping out and taking on a major amount of work to
the benefit of the city collection in the Museum they are trying to preserve. The Board is trying
to make the Museum a viable institution without depending as much on the city and has raised
outside funds to benefit the city. They have taken a large cut because of the room tax money yet
are taking on more responsibility for half the cost of the director position to the city. She
discussed the one-time money they are requesting in exchange for the amount of work the board
is taking on. They need to have this one time step-up to make it viable.
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Council Work Session Minutes
June 14,2004
Page 8
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Councilor Woodrow asked if the computer and software would belong to the city or the manager.
It would belong to the city. He asked if the $10,000 for the office space was an estimate or
actual dollars.
Mr. Grile said they have received a bid from a private contractor and it reflects actual dollars.
Ms. Redmond said one of the reasons they are requesting the office in the Museum is because of
complications of a non-employee having an office in city hall. They are still working some of
these things out and trying to gain more independence as the council directed.
Councilor Ballew asked who "the manager" was as referred to in the contract.
Mr. Leahy said that represents the foundation.
Mr. Leahy said the changes he has noted so far to be made to the contract include 1) limiting the
amount needed to the amount of city expenses as listed on Attachment II; 2) provide that the
equipment acquired for the use of the "manager" would remain the property of the city; and 3)
eliminate the "Note" from the last page on Attachment II. He referred to a question by council
candidate Debi Baker regarding the contract. There are two provisions that relate to term and
termination. Those are coexisting. One is to be sure the city has a way out on a regular basis if
it is determined the city no longer wants to continue this contract beyond a year. The other
provision relates to the city's option of terminating the contract during the middle of the year.
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Councilor Lundberg said the costs the Museum are requesting would in turn belong to the city.
She referred to the CDBG funding. She said it would be a landlord/tenant arrangement and we
are basically asking someone to be in charge of our collection. She asked about getting the costs
down.
Mr. Leahy said it is specifically not a landlord/tenant relationship and not under landlord/tenant
law. They are there as a manager and the city could terminate under the terms in the contract.
The citizens are the beneficiary.
Councilor Ralston said a viable Museum is important for a city this size and all want to see it
succeed. This is a step in the right direction to make it better fmancially and he supports this
proposal. The Museum does attract visitors to the downtown area. He discussed room tax
money and tourism. The one time expenses are legitimate to help make them more self
sufficient.
Councilor Ballew asked which fund the one time expenses would be coming from.
Ms. Pappas said they could come from one of the different reserve accounts depending on
council direction.
Councilor Woodrow asked why our Public Works Department could not build the office.
Mr. Grile and Ms. Pappas responded to his question. The work load issues would not make it
feasible.
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Councilor Woodrow said the contract is a great idea. He supports the proposal and it is worth
the investment. He applauded the board for the work they have done.
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Council Work Session Minutes
June 14,2004
Page 9
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Councilor Fitch said the board should be commended. Perhaps the money for the computer and
software could come from the equipment replacement fund from Development Services .
Department because the past Museum Coordinator was funded through that department. She
suggested looking at other ways to cut the amount requested. A majority of the council would
like this to come forward with the changes discussed.
Mr. Grile thanked council for considering this and the Museum Board for their hard work. It has
been a great partnership.
4. Interim Ward 6 Councilor Discussion.
Assistant City Manager Cynthia Pappas was present for the staff report on this item. During the
May 18,2004 Primary Election, no one candidate received over fifty percent of the total votes
counted. Pursuant to the Springfield City Charter, the two candidates who received the higher
number of votes will go forward to the General Election in November, leaving this position
vacant until the results of that election are certified.
Because there was no clear winner in the primary election for City Councilor for Ward 6, the
position is vacant until after the General Election results in November 2004. Council can
appoint an interim councilor to fill the position from the date of appointment through November
2, 2004. At that time the candidate declared the winner at the General Election would be
appointed to fill the position until they are eligible to officially take office in January 2005.
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Council also has the option to leave the position vacant until the candidate winning the General
Election in November could be appointed.
Mayor Leiken said time is slipping away regarding this issue. Council has been without Ward 6
representation since Tim Malloy's resignation in March. The next Ward 6 councilor will not be
determined until the election in November. At that time, council can choose to appoint the
elected candidate to the position immediately following the election until the official swearing in
ceremony in January 2005. He felt it was important to have a discussion regarding this vacancy.
There have been phone calls that have come in and have generally been directed to staff by the
Mayor or Councilor Fitch. If someone asks to speak with an elected official, the Mayor or
Councilor Fitch usually takes those calls. The Mayor said he was in favor of finding someone
who could come in to fill the vacancy through November. The Mayor contacted former Mayor
Sandra Rennie to seeif she was interested in serving as interim council. Although she was very
interested, her schedule would not allow her to serve at this time.
Councilor Ralston said he does not want to appoint someone who would not have the detailed
information to answer questions from citizens. He is not inclined to appoint anyone at this time,
but would support appointing the winner of the General Election immediately following the
election. He discussed the short amount of time an interim would serve and the fact they would
not be someone elected by the citizens. He said he would be willing to step in as liaison to the
Planning Commission until the new councilor is elected.
Mayor Leiken discussed upcoming agenda topics and how vacations could affect their quorum.
The legal quorum is three councilors and there are currently only five.
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Councilor Lundberg agreed with Councilor Ralston. There is normally a public process and this
would not allow that process to take place and would leave it entirely in council's hands. A lot
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Council Work Session Minutes
June 14,2004
Page 10
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of staff time would be involved in getting an interim councilor on board for a short amount of
time. Staff is already overworked and it would not be an efficient use of their time for such a
short period of time with breaks. She said the urban renewal issue is coming up, but it is not the
first time a councilor will be coming on board in the middle of something the past council has
already decided. She would suggest keeping the position vacant.
Councilor Ballew agreed that the public process and staff time are both important issues. She
reminded council that although they are nominated by ward, they represent all citizens.
Councilor Fitch asked councilors to notify the City Recorder if they would be absent for future
meetings because of important issues that would be scheduled for upcoming meetings. Council
majority would like the position to remain vacant.
Mayor Leiken suggested a rotating system for taking calls from Ward 6 constituents.
Councilor Woodrow said he could take calls from Ward 6 constituents.
ADJOURNMENT
The meeting was adjourned at 7:02 pm.
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Minutes Recorder - Amy Sowa
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Attest:
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Amy So
City Recorder
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