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HomeMy WebLinkAbout02/24/2003 Regular . . . . , MINUTES OF THE SPECIAL REGULAR SESSION OF THE SPRINGFIELD CITY COUNCIL HELD ON MONDAY, FEBRUARY 24,2003 The Springfield City Council met in a Special Regular Session, Jesse Maine Meeting Room, 225 Fifth Street, Springfield, Oregon, at 7:00 p.m., with Mayor Leiken presiding. ATTENDANCE Present were Mayor Leiken, and Councilors Ballew, Burge, Fitch, Ralston, and Woodrow. Also present were City Manager Mike Kelly, City Recorder Kim Krebs, Police Chief Jerry Smith, and members of staff. PLEDGE OF ALLEGIANCE Mayor Leiken led the Pledge of Allegiance. SPRINGFIELD UPBEAT 1. Celebrate Reaching the 10th Anniversary of the Springfield Puppet Festival. Judy Harold was present for the brief report on the lOth Anniversary of the Springfield Puppet Festival. She said she would like to think that the Puppet Festival has become a wonderful feather in the city's cap. Families continue to be enthusiastic, and what's very exciting is that the community shows their support by assisting with the funding. She higWighted briefly the events and workshops that have taken place, and concluded her presentation with a brief viewing of one of her friendly puppets. CONSENT CALENDAR Councilor Fitch requested that item 5 c be removed from the consent calendar for further discussion. IT WAS MOVED BY COUNCILOR FITCH WITH A SECOND BY COUNCILOR BURGE TO ADOPT THE CONSENT CALENDAR WITH THE EXCEPTION OF ITEM 5 C. THE MOTION PASSED WITH A VOTE OF 5 FOR AND 0 AGAINST. 1. Claims 2. Minutes a. December 9, 2002 - Work Session b. December 9,2002 - Regular Session c. January 13,2003 - Council Goal Setting d. January 21,2003 - Work Session e. January 21,2003 - Regular Session f. January 27,2003 - Work Session 3. Resolutions Springfield City Council Regular Session Minutes - February 24, 2003 Page - 2 . a. RESOLUTION NO.03-7 - A RESOLUTION TO ACCEPT PROJECT P20290 FROM EUGENE SAND AND GRAVEL IN THE AMOUNT OF $96.046.48. b. RESOLUTION NO. 03-8 - A RESOLUTION TO ACCEPT PROJECT P30296: PUBLIC IMPROVEMENT SECOND ADDITION TO MIMOSA PARK. PHASE L "S" STREET BETWEEN 8TH AND 10TH STREETS. c. RESOLUTION NO. 03-9 - A RESOLUTION TO ACCEPT PROJECT P30284: WINCO PUBLIC SANITARY SEWER IMPROVEMENTS. 1920 OLYMPIC STREET. 4. Ordinances 5. Other Routine Matters a. Approve Request of Pacific Source, Developer of Subject Property Located at 110 International Way to Release a Portion ofthe Storm Drainage Easement in Land Partition Plat No. 94-P-0502. b. Approve the Contract Award to Lester L. Brock Construction, of Sherwood, Oregon, in the Amount of $38,000, for Replacement ofthe Metal Siding on the Maintenance Storage Building. c. Authorize the City Manager to Execute the Intergovernmental Agreement for Guardrail Replacement along 48th Street, Main to G Street, Project P20305. (REMOVED) . d. Approve the OLCC Liquor License Endorsement for Ji's Market, formerly Lee's Market, Located at 5095 Main Street, Springfield, Oregon. e. Authorize the City Manager to Execute the Contract with Pacific Habitat Services, Inc., to Assist Planning Staff with the Completion of the Springfield Wetlands Conservation Plan. ITEMS REMOVED FROM THE CONSENT CALENDAR 5 c - Authorize the City Manager to Execute the Intergovernmental Agreement for Guardrail Replacement along 48th Street, Main to G Street, Project P20305. City Engineer AI Peroutka was present and said from the time the staff prepared the information contained in the council packets, there have been some changes to the agreement that Lane County has adopted and approved by their Board of Commissioners. He said the changes are noted in the new agreement: he has circulated copies for the council to review. He highlighted briefly the changes that have been made to the agreement for council consideration. IT WAS MOVED BY COUNCILOR FITCH WITH A SECOND BY COUNCILOR BURGE TO APPROVE THE AMENDED INTERGOVERNMENTAL AGREEMENT FOR GUARDRAIL INSTALLATION OF THE 48TH STREET PROJECT. THE MOTION PASSED WITH A VOTE OF 5 FOR AND 0 AGAINST. . PUBLIC HEARINGS Springfield City Council Regular Session Minutes - February 24, 2003 Page - 3 . 1. Local Fuel Tax. ORDINANCE NO.1 - AN ORDINANCE IMPOSING A BUSINESS LICENSETAX ON MOTOR VEHICLE FUEL DEALERS, PROVIDING FOR ADMINISTRATION, ENFORCEMENT AND COLLECTION OF THE TAX: ADDING SECTIONS 7.500, ET SEQ., TO THE SPRINGFIELD MUNlCIP AL CODE. Len Goodwin, Acting Assistant Public Works Director was present for the staff report. He said the ordinance before the Council for consideration tonight would impose a business license tax on the delivery of motor vehicle fuel into the City of Springfield, which ultimately would be passed on by retailers to the consumers as the price at the pump. He said this is the second step or phase. Council began the process in the year 2000 in an attempt to develop local revenue sources to fund adequate levels of maintenance and preservation of city streets. The first step was the adoption on December 9,2002, of the ordinance imposing a Transportation System Maintenance Fee (TSMF). That ordinance directs staff to return within 90 days with a recommended methodology for implementation of the TSMF. Council's direction at that time was that staff should return with a methodology which hopefully would support a fee on residence of no more than $1.75 per month, and a fee on businesses that would range from a minimum of $20.00 - $25.00 per month, to a maximum of no more than $550.00 per month. This second step completes the process of solving the basic structural flaw in the city street fund, which is that revenues have been stagnant or declining over the past decade, while spending even after a number of large reductions continues to grow both as costs rise and as the size of the city street system increases. . In discussions preceding the adoption of that ordinance, the Council indicated it believed such a fee should be imposed in conjunction with a local fuel tax, because the combination of the two alternatives would permit each to be imposed at a lower rate, and would provide a more equitable solution to revenue needs than would either alternative alone. Since then, the City of Eugene, on January 27,2003, passed an ordinance imposing a local fuel tax of $0.03 per gallon. The draft ordinance in the Council packet has been modeled on the Eugene ordinance, with certain changes based on comments from the Oregon Department of Transportation (ODOT), whom the staff anticipates will administer the local fuel tax. Staff estimates that this tax will produce revenue of about $675,000 annually. If the ordinance is approved, staff would begin discussion with ODOT concerning an intergovernmental agreement authorizing ODOT to be the tax administrator. Staff believes those discussions could be completed in time for implementation sometime shortly after July 1,2003. Mr. Goodwin said since the year 2000, staffhas explored a number of solutions to this problem, and Council has reviewed them as well. He referred to the charts displayed on the wall and highlighted the information contained in the charts. They included a) Springfield Street Fund Revenues and Spending - Past 10 Years; b) Street Fund Revenue, Expenditures & Reserve Projections; c) Street Fund Revenue & Expenditures - Last 10 Years. . Mr. Goodwin said as Council knows, principally there are two sources of revenue for the city street fund. Both of these sources are related to the state fuel tax which is presently $.24. The largest component is direct payments from the state; these represent a distribution of 16% of all revenue collected from fuel taxes throughout the state, a distribution that is made to all cities in the state relative to their population. That revenue source has remained stagnant because although there are more people in Oregon, and they are driving more, fuel efficiency has increased to the point where the average driver in fact pays less per mile to drive in terms of taxes Springfield City Council Regular Session Minutes - February 24, 2003 Page - 4 . than they did in 1993, of which revenue source accounts for approximately 60% ofthe street fund revenue. The balance ofthe component would be similar funds that are received from the County pursuant to a revenue sharing agreement, which dates back to the time of what is called "urban transition". When the City took over the planning jurisdiction for areas in the urban fringe, and the County turned over to the City's jurisdiction of all County roads then within the City and made payments to support the operation and maintenance of those roads. Those payments which began at the level of approximately $450,000 - $480,000 grew between the periods of 1987-1995 when they reached approximately $1 Million dollars. Since then, the County, concerned that the revenue source that they relied on was declining, began to ratchet down the payments so that they reached the point now where they are approximately $500,000 per year. Congress recently, with the support of Springfield and other cities within Lane County, passed legislation which provided for additional sources of revenue to the County to replace the decline, however the County has not taken action to increase the level of payments to the City made pursuant to the partnership agreement that they enacted in the beginning of 1987. He said the last time the State fuel tax was increased was in January 1, 1993. Mr. Goodwin described in detail how funding distribution had been reallocated where it is legally permissible; how they have moved to increase efficiency in many ways. . Mr. Goodwin said in December when staff came forward to the City Council to discuss the TSMF there were discussions of a gap of approximately $1.1 - $1.2 Million, and presented a proposal which would close that gap. Council's direction to staff was that staff should not return with a half of loaf solution, because that solution would only preserve the status quo, which did not change the fact that there was approximately $6 - $6 V2 Million in maintenance that remained uncovered with only a million dollars of additional revenue. Council's further direction to staff was to return with a proposal which would produce the $1.6 Million in additional revenue that would permit the City over a period of time to work off that backlog. And that is what staff presented on December 9 with respect to the TSMF, and is what staff presents tonight for City Council consideration and for public hearing. He said timing has, however, become critical, as he mentioned earlier. Had the City not taken action in prior years, the street fund would have run out of money this June. However, in the budget that staff has prepared for submission to the City Manager which he may refer to the Budget Committee in April, and in Budget Transfers staffhas accomplished this year, there has been a shift of a number of capital projects that would otherwise have been funded from the street fund, to other funding sources. They have made a number of operational cuts in the proposal for next year. If the budget is in fact submitted and approved by the Budget Committee and the Council, we would end Fiscal Year 2004 with approximately $100,000, which is not a reserve but merely enough to start the process for the next year. That however, as staff has proposed is really a one time solution, because it does defer preservation and the following year there will be no preservation projects to defer as the fund will be out of money. As a result, if for some reason it is the will ofthe Council that we not move forward with these revenue sources or if for some reason it is not possible to reasonably anticipate that they will be available during the next fiscal year, it will be necessary for the department to suggest to the City Manager that the budget to be proposed for next year include a substantial amount of operational reductions. Those would include reductions in services to Springfield citizens. This is the only way to make the street fund sustainable for more than the next several months. . Mr. Goodwin said we have reached a crisis, however there are other solutions that are being considered, but he doesn't believe that they are likely in the near term realistic solutions. He said the State Legislature is considering increases in the fuel taxes in the current session, and although nothing can be sure until the Legislature actually acts, it appears most likely that the proposals Springfield City Council Regular Session Minutes - February 24, 2003 Page - 5 . that will receive support will be those proposals that will be dedicated to bridge maintenance and repair. He said the I-5 Bridge as well as others will begin substantial delays beginning on March 5, and from a state prospective, that is likely to be the highest priority. He said, even if it were not, because the Cities receive only 16% of the money distributed by the state for fuel taxes, it would require a gas tax increase of $.25 to meet the needs of the local revenue proposals before the council. He said that is simply not realistic. Mr. Goodwin said there is also some talk to attempt to work with Lane County to find a way to redistribute the money that the County and the City receive to pool the funding, in order to more efficiently serve the citizens throughout the County, both urban and rural. This is significant, because of course 80% of the drivers who buy fuel in Lane County, live within the City and the urban growth boundary, not in the rural areas. It is unclear whether this effort will produce positive results; it is certainly improbable that it will produce positive results in the immediate future, although in the long term it may provide some substantial benefit. Obviously, if these issues do come to fruition, it is certainly within the power of the City Council to repeal or reduce the fees that staff is proposing. He said he would be available for questions. . Councilor Ralston said six months ago he was adamant that he would not be supportive of a TSMF; but when presented with the fact that if we didn't do anything it would an irresponsible action, he reluctantly supported it at that time. He said he always felt that a fuel tax was easier to sell to the public because they can relate to the fact that they use it, and are consumers who pay for the fuel. He would certainly rather support Lane County stepping up to the plate and pooling resources, which makes a lot more sense. He said at this time he would support the fuel tax along with the TSMF provided that if Lane County does step up to the plate, that the City Council would first eliminate the TSMF. Mayor Leiken said prior to opening the public hearing, for the sake of the audience, the Council would not be voting on this issue tonight, it is the fIrst reading of the Ordinance only, and the 2nd reading is scheduled for March 10. Mayor Leikenopened the public hearing. . 1. Chris Pryor, 101 S. A Street, Springfield, Oregon. As the Chair of the Legislative Issues Committee for the Chamber of Commerce Mr. Pryor said they represent the relationship between the Chamber of Commerce in the business community and the public sector, primarily the City. They represent nearly 700 businesses in this Springfield and Eugene area. The Committee has hosted 3 presentations on the matter before the Council. He highlighted the information provided at the meetings to those attendees. Out of many considerations of the Legislative Committee and in partnership with the City a "Needs and Processes" forum was held last week, which was an opportunity to invite people from the business community to weigh in on their opinions and their ideas, as well as to share information. He said it was not enormously well attended by members of the community, but there were some present which led them to believe that this might not be a giant issue for a lot of people. He briefly reported on the fIndings by saying the public and the business community have a good process in matters such as these. He said they acknowledge that there is pressure to make this decision quickly because of issues that might have happened at the state level, but it's the Committees thoughtful request that sometimes quick pressures cannot produce the most thoughtful outcome. They would encourage the Council when these very important decisions come down, to try and include the business community and the public as much as possible in the deliberations. Springfield City Council Regular Session Minutes - February 24, 2003 Page - 6 . He said the Chamber of Commerce recognizes that the Council is confronted with a dilemma, as very clearly from the forum no one could really dispute the fact that there is a very tangible and very real issue with regard to road maintenance. Without a bigger slice of the County road fund, most cities in Lane County will be faced with this same challenge, so one of the findings was to encourage that the City seek to expand the role with the County on maintenance issues. Good roads are important to the business community, therefore, the Chamber of Commerce strongly endorses the need to keep the roads well maintained as it is a quality of life issue, but they would encourage the City to keep the impact to the taxpayers of Springfield as low as possible. They recognize that doing nothing may impact the taxpayers even more in the future. They would also urge the City to keep the business community involved in any future solutions, as they want to be positive in finding and supporting solutions that are fair and practical. If Council has to choose between the two, the Committee feels that the fuel tax is probably closer to the actual road maintenance than the user fee. Councilor Burge commented that he did not like the inference that the Council is not an open public body that invites the public or the business community to participate. Councilor Ballew said she attended the "Needs and Processes" meeting Mr. Pryor was referring to. She felt it was an important part of the process. She realizes there is a lot of resistance, but a question was asked at that meeting whether there was another way or is there something different that one would prefer if they agreed that in fact there is a funding problem. She said after the question was posed, there was a deaf silence. She does not know ifthere is a better solution. . 2. Fred Simmons, 312 South 52nd, Springfield, Oregon. He does support the Transportation Maintenance Fee with the low income exemption. It is a very tough spot to be in; not only are we looking at $36.00 a barrel crude, we are looking at the impact of$1.79 per gallon at the pump right now. Each business, every shipper, and everyone involved in the process that is going to pay this tax, is not only going to have to pass that on to their customers, but each individual will then have to take a little bit more out of their revenue stream to pay the freight. He said he will support the fuel tax if the City will adopt a life cycle analysis, not only on capital, but on maintenance. We need to get into the issue of doing our maintenance smarter, more cost effective, and more long term. It makes no sense to tear up 21 st Street, re-asphalt it and then 7 years later down the road perform another seal coat and the process continues. He said it is a terrible time for the fuel tax, but it is necessary. . 3. Steve O'Toole, Oregon Petroleum Marketers Association (OPMA), 7070 SW Fir Loop, Tigard, Oregon. He thanked the Council for the opportunity to speak and said their group is composed of distributors and many of which are involved in retail. Many members are second, third and fourth generation small businesses, and therefore this is a pretty sensitive issue to the members. OMP A strongly disagrees with the idea of any local gas taxes. They feel it will establish a patchwork system throughout the state. What they do support is a State wide solution so that everyone would be paying the same taxes, and that it would be part of a state wide comprehensive transportation package. As mentioned in a bill that is in the legislature to be used as a vehicle to increase the gas tax, however he believes the first priority for the State is for bridges, but there is some support there for some of the funding to be kicked back to the cities and counties. Opposition to the local gas taxes on their part is also based upon competitive factors, in the fact that it Springfield City Council Regular Session Minutes - February 24, 2003 Page - 7 . affects the motoring public, and that local taxes provide an element of an unfair competition in an industry where a lot of time, the decisions as far as pricing is based upon pennies. It would undoubtedly cause motorists to drive to the next city or town for gasoline. 4. Nicoletta Endres, P.O. Box 2285, Lake Oswego, Oregon. Ms. Endres is the Executive Director of the Oregon Gasoline Dealers Association, which is a non profit made up of service station dealers in Oregon. They realize that many cities in Oregon are now looking at a gasoline taxes to raise money for their road maintenance. As an organization they have been actively seeking other solutions to what they see is a huge problem in their industry. They understand the need, but are looking for a fair and equitable solution for everyone involved. They want every motorist and dealer in the state to bear the same tax burdens. Local taxes create boundaries resulting in some severe competitive inequities. She provided a brief example of an issue like that. She said service station dealers in this city could possibly be looking at having to close their doors, and she is certain that the Council would not want to see that happen. That is why they are encouraging and advocating an increase in the gas tax on a statewide level that would go directly to the City and County entities for their road improvements. It would create a uniform tax system. She said by working together she believes they could make something happen in the legislation. Councilor Fitch asked how much the state was proposing for an increase in a fuel tax and how much of that would come to the cities. Would it be enough to assist in our shortfall? . Ms. Endres did not have those figures. Mayor Leiken said he appreciates the public comments. He said something that has been discussed at the City Council level is the fact that for the last decade it's been very apparent that the State of Oregon has had zero vision. We are now in a position where these are being evaluated at the local level. He said he hopes the public can appreciate that part of it, because it is very apparent that more people are concerned about the next election than trying to create a positive energy and a positive vision for this state. The Council is now in a situation where they have to evaluate and develop solutions to this real problem. He said until the City Council hears from Salem that they are serious about providing funding for local street maintenance, he would recommend at this time that the Council proceed forward. Mayor Leiken closed the public hearing. Councilor Woodrow said he understands that the City of Eugene has already passed a Fuel Tax, and wonders if there were any other cities or towns that have this scheduled for discussion. Mr. Goodwin said the City of Cottage Grove is considering a gas tax ordinance this evening. They have held a work session on it, but he is not absolutely sure if the fIrst reading is tonight or somewhere in the very near future. That is the only other jurisdiction he is aware of in the immediate area that is presently considering such a fee. . Councilor Burge said this is an issue that is very difficult. He honestly believes that our Public Works Department is well managed under the direction of Dan Brown. The bottom line is the revenue resources just aren't there any longer. During the same period oftime, our streets have become older and costs for repair have also increased. There is no need to look for someone to Springfield City Council Regular Session Minutes - February 24, 2003 Page - 8 . blame. He will not support the gas tax as he feels it is a band-aid approach and not a good approach nor is it a solution. The state legislature has the responsibility on the state wide level to find an action that will correct this continuing problem. He serves as a citizen, not as a member of government. In all fairness what we pay in taxes is a pretty good investment. Streets are a core service with a value today of about $5 Million, and it's not good management to sit back and watch them deteriorate. He said that he does not like the wording in the proposed ordinance which states, ". . . the net revenue shall be used only for the construction, reconstruction, improvement, repair, maintenance operations, etc." He does not like the word "construction" which implies building of new roads and should be in capital expenses. He said we have about 33 miles of unimproved streets which we are still maintaining. If you don't want a street in front of your home, then he isn't going to pay to maintain it. You want a street, you have to help pay for it. He spoke about the lack of support from the County. He is curious on why out of revenues of $84 Million, $35 Million are held in reserves. These reserves should be spent on street repair now. He said someone needs to answer to that. Councilor Burge thinks we should visit the County Charter and look at amending it in the manner of how County road funds and expenses are being used. . Again, Councilor Burge is not supportive of this fuel tax and hopes the state legislature does what they should do. He thinks collectively if all jurisdictions work towards it, maybe the state legislature will do what needs to be done. Councilor Burge and the Mayor spoke with Larry Campbell this afternoon. Mr. Campbell feels there may be something done; possibly a vehicle license fee or some other method such as a statewide gas tax. Councilor Burge would rather hold off on this proposed fuel tax increase and spend the efforts and energies of trying to get the legislature to work for the betterment of the entire state. It is not so critical that we need it tomorrow; we do have some breathing room. Let's stop and look for a better solution. Councilor Fitch respectfully disagrees with Councilor Burge. She said after two years of discussion, she believes we have a task at hand. She said that is one of the issues Council has asked during the many work sessions. That amount is higher than anything she is hearing from the state level. There is definitely a need regarding the bridge issue with the I-5 Bridges. We are in need of doing something now, unless we want to drastically cut in the Public Works department. We are looking at cuts in the budget, and we as a public body need to do something. We do have a public asset to protect. She will be supporting the gas tax. Councilor Ballew said she doesn't disagree with the opinions tonight. She thinks we are out of time. We have been waiting a long time and we need to act. It wouldn't embarrass her if a solution comes along later. With Oregon weather, our roads can deteriorate quickly. She will be supporting both issues. Mayor Leiken asked about an agreement created by Eugene's previous City Manager Jim Johnson, regarding County/City partnership regarding road funds. The County was allocating $5 Million to the City in 1994-97. Now they are allocating $2.5 million. Part of that comes from the County struggling with their budget. Mr. Goodwin said the County told the City it would be cut; they didn't ask. . Mayor Leiken said this was about the time when Congress was looking to allocate money to replace those dollars. City and County lobbied together to get that increase. While the County revenues have increased, their contribution to the City of Springfield has not. Was there not some oral agreement that cities' allocations would be increased to replace those funds? Springfield City Council Regular Session Minutes - February 24, 2003 Page - 9 . Mr. Goodwin said he doesn't believe there was a commitment. City Manager Mike Kelly said, in addition, when the County received extra funding from the federal government, the City went to them and strongly pushed for funding in maintenance. Mayor Leiken said what he is hearing is that the County has changed the rules, so now in order to increase the amount back to what it was there needs to be continued discussion regarding the Lane County manual. The County has decided to basically roll it back and not stand up to their commitment. Councilor Ballew said it's important to not forget that the County has been a good partner in other areas. We may disagree on this issue, but not all issues. 2. Vacation of Public Rights-of-Way Lithia Toyota Planning Supervisor Mel Oberst was present for the staff report on this issue. Mr. Oberst explained that the criteria for approval for a vacation of an applicant are as follows. (These can be found in the Springfield Development Code, Chapter 9, Subsection 30.) The applicant shall demonstrate that the following criteria have been met in order to approve a vacation request: l) The vacation is in conformance with the MetroPlan including any adopted street plans and/or any conceptual plans and 2) There are no negative effects on access, traffic circulation, and emergency service protection or any other public benefit derived from the right of way. . Mr. Oberst asked that anyone speaking on this matter tonight please direct their comments to this criteria and do so with specificity so that the Council and staff can respond to their issues and so that they may have standing if they wish to appeal this matter. Mr. Oberst said that at the October 15,2002 Planning Commission public hearing they recommended DENIAL of the request because it failed to meet the criteria of the Springfield Development code. It is premature to consider a vacation of public right of way when the City does not know what the impacts may be from development of the property. The applicant has not submitted substantive evidence into the record to justify the vacation ofthe alleys. Mr. Oberst said the applicant has not submitted any development plans for the City to review. Without development plans, the City can not evaluate the site design issues that mayor may not warrant vacation of the alleys. The City is willing to evaluate the vacation ofthe alleys when a site plan review application is submitted. There may be alternatives to vacating the alley that will ensure security through site design. In the absence of any detailed information about the development or the perceived security issues the city staff can not evaluate the issue. Staff recommends DENIAL of the vacation request because the proposed vacation would decrease safety, impeded police functions, increase congestion, reduce public access, cause congestion on the arterial and local street system and be inconsistent with the long term plans to develop downtown Springfield as a mixed use regional urban center. . Mr. Oberst said The Findings of Fact in Attachment 2 list the reasons for DENIAL, as follows; l) the request does not conform to the Metro Plan, TransPlan and the Downtown Refinement Plan policies: 2) ODOT opposes the vacation because it violates the Oregon Highway Plan and Springfield City Council Regular Session Minutes - February 24, 2003 Page - 10 . Springfield Police do not support the vacation because downtown alleys provide police access to businesses, covert police surveillance, faster response to calls for service, and staging locations for police operations; 4) City staff oppose the vacation because it reduces safety for pedestrians and bicyclists, would negatively impact the long-term capacity and function of the arterial and local street system and is contrary to plan policies for creating a viable downtown mixed use center; and 5) the Planning Commission found that it could not support the vacation in the absence of a development plan to evaluate the potential loss of public access in downtown Springfield. . Mr. Oberst said that staff has done further investigation into this application and has discovered other issues. One major issue is regarding the first criteria of compliance with the MetroPlan. The MetroPlan designates downtown Springfield as mixed-use from the river to 14th Street. From the river to 10th Street it is mixed use commercial and from 10th to 14th it's mixed use residential. He noted that the Springfield Downtown Refinement Plan is consistent with the MetroPlan and it also designates downtown Springfield as mixed use commercial. Once that was discovered, based on statutory law, we are bound to require that zoning of properties be consistent with the plan designation. A mixed use ordinance was adopted in June of 2002. The mixed use ordinance was intended to implement the mixed use plan designation. That would require that Lithia rezone their property to be consistent with the plan. The second criteria is conformance with the TransPlan. He referenced the agenda packet Council had before them, page 2-6. ODOT has submitted letters in opposition ofthe vacation of the alleys. Eliminating the alleys would require service deliveries out into the street. Alleys also have a function in that they provide for the Police Department for surveillance, establish staging operations and chasing offender. These alleys were part ofa first edition to Springfield's original core plat in city ownership since 1890. The alleys have traditionally been used for public access as well as public art. Mr. Oberst said they have found that an existing business, by changing the zoning would become nonconforming because in the mixed use commercial district, auto sales and auto retail sales are not permitted. He said, however, a property that exists at the time the ordinance changes is given a status known as pre-existing/nonconforming use, which means they can continue to exist there. The ordinance also allows for the expansion of nonconforming uses so the doors aren't closed on property owners: there are options. The Planning Commission's struggle with this revolved around what was going to happen on the land. They wanted to see a development proposal so they could evaluate the merits of vacating the public alleys and giving up the public access. If we give up those alleys and then when additional development occurs, we need them back, the City would then have to buy them back. The Planning Commission asked the applicant to come back with a development proposal. Mr. Oberst said that if the applicant could come back with a development proposal, there could be a discussion on the vacation of the alleys or ifthere was another solution for them to accomplish their purposes to develop the property. Recommendation from staff to the City Council is denial of the vacation request. Mayor Leiken opened the public hearing. City Attorney Joe Leahy said it would be appropriate to declare any ex parte contacts or other ethics issues. . 1. Mike Farthing, 767 Willamette, Eugene, OR. Mr. Farthing requested that the record remain open because of the new information that Mr. Oberst presented. Mr. Farthing Springfield City Council Regular Session Minutes - February 24, 2003 Page - 11 . would like to respond to that information. He will agree on behalf of the applicant to extend the time for making a decision under the statute. He said that Mr. Oberst outlined the issues. He said the bottom line is whether or not Council wants car dealers in downtown Springfield. Kendall just invested a large amount of money in downtown Springfield and the reason they were allowed to go forward is because they beat the June adoption of the mixed use district. He will put his remarks in writing to the Council. Lithia employs 60+ people in Springfield. They will employ more if allowed to expand. All effected property owners have signed in approval. If the Council doesn't want them downtown, where do you want them? Lithia pays over $30,000 in taxes. Lithia and Kendall are destinations. What other private or government entities are attracting people from all over Lane County? They want to vacate their alley and consolidate their ownership.. 2. Tom Boyatt, 644 A Street, Springfield, OR. Mr. Boyatt is with ODOT. He has submitted written comments for the record, and a letter which summarizes the issues. ODOT agrees with city staff which recommend denial of the request. He believes the vacation of the alley will have a negative impact to the safety and operations of the state highway. ORS 271.120 states three approval criteria for alley vacations. He believes there is potential for prejudicing the public interest by adding private approaches to the highway for each of the ten budding tax lots on both South A and Main Streets. Mayor Leiken closed the public hearing. He asked if we could leave the record open to allow Mr. Farthing time to respond. . City Attorney Joe Leahy suggested 30 days. He said we need a date certain so there is no need to re-advertise. The record will remain open until April 7t\ and the public hearing will remain open. Let the record indicate that Mr. Farthing agreed to the April 7th date for the record to be remained open. Councilor Burge commented about the AIS formatting under the "Action Requested" states to DENY the request. Councilor Ballew said the emphasis is "Action Requested". Councilor Burge asked what the vote from the Planning Commission was. Mr. Oberst confirmed the vote was 3-3. Councilor Burge asked if auto dealers pay personal property tax on auto inventory. Staff will provide a response to the request. Councilor Burge asked why approximately one year ago the City issued a demolition permit where Lithia could burn/destroy an apartment building/complex. City Attorney said they would find the answer to that for Councilor Burge. . Councilor Burge said the abutting ownerships on this alley are all owned by Lithia. One of the big issues regarding properties that are on alley ways is the crime that takes place in the alleys. Springfield City Council Regular Session Minutes - February 24, 2003 Page - 12 . He feels that the point that police are not supporting this because of the crime is invalid. He said he believes that staffs opposition to this is very weak. He will vote to approve the request. We do want business downtown. Councilor Ralston asked about the value associated with the alley. Councilor Burge said the alley used to belong to the property owner. The City took it when the property was developed. Mr. Leahy said the City Manager inquired about the value of the alley. In the past Springfield City Council has been reluctant to ask for money to vacate alleys. There are other situations where we may have bought the property instead of exacting~ Staff has followed an opinion from the Attorney General's office that made the same point Councilor Burge made. The City of Eugene does not call it "payment for the alley" they call it a "Special Benefit" to the property owner to determine an assessment based on 1) value of the property and 2) the amount of dollars the city has put into it for public improvements. We don't have an ordinance in place similar to that of the City of Eugene. It is something that staff needs to take a look at. If the record is going to be left open, and the public hearing continued, it might be best to not make a decision until the Council has all of the information. Councilor Ballew asked about utilities in the alleys. Mr. Oberst confIrmed there are utilities in the alleys. The applicant would still allow access to the utilities through easements. . Councilor Woodrow asked about the alley art. Are there any buildings that have art on those alleys? Mr. Oberst said no. He asked if the alleys would remain open. Mr. Oberst said he doesn't know the answer to that because they haven't seen a development plan. IT WAS MOVED BY COUNCILOR FITCH WITH A SECOND BY COUNCILOR BALLEW TO CONTINUE THE PUBLIC HEARING TO APRIL 7 AT THE APPLICANT'S REQUEST. THE VOTE WAS 5 IN FAVOR AND 0 AGAINST. BUSINESS FROM THE AUDIENCE 1. Shawn Hyland, 2535 Grand Vista Drive, Springfield, OR. Mr. Hyland spoke regarding the proposed sewage pump station to take care of Grand View Estates. He is opposed to that. He built his property two years ago. He received a copy of a draft agreement from City Engineer Al Peroutka for neighbors to sign for the sewer installation. It stated on there that it was a condition of the code that there is a deed restriction that when they are ready to be hooked up all of the property owners would pay for it. He said it did not get recorded on deeds as of yet. He said there was also an agreement that 2/3 of property owners would have to vote yes, and last he heard the vote was 7 yes and 7 no. Another neighbor he spoke with recently who had not voted, told him she would vote no, which would make it 7 yes and 8 no. He feels this is not a smart move to spend the money on this. There are other things for the money to go to, like street repair. . 2. Kent Noah 254l Grand Vista Drive, Springfield, OR. Mr. Noah opposes the installation of the sewage pump station in Grand View Estates. He opposes the project for two reasons: l) this project from the start has been full of inconsistencies; 2) we are in the midst of a recession, dollars are hard to come by, and now does not seem to be a good time for such a project. He noted that a majority of the residents are opposed. Springfield City Council Regular Session Minutes - February 24, 2003 Page - 13 . 3. Nick Shevchynski, 2347 Marcola Road, Springfield, OR. Mr. Shevchynski is here to speak about the Municipal Code that deals with fencing standards. He referenced the term "or unsightly". He does not know what unsightly means and wants the Mayor and Council to advise him what unsightly means. City Attorney Joe Leahy said we are engaged in litigation with this individual and staff would respond in writing with this issue. Correspondence and Petitions Councilor Burge asked about item #1 which is regarding an increase request from Sanipac. He asked when Sanipac asked for this increase. Mr. Goodwin responded to questions of Mr. Burge. Councilor Burge asked about how much additional revenue the collection fees would generate for Sanipac. Discussion was held regarding the collection fee, increased costs for Sanipac, and number of clients they serve. It was discussed how this would impact Springfield citizens. Councilor Fitch said in comparison, the fees paid by the City of Springfield citizens are less than they pay in Eugene. . IT WAS MOVED BY COUNCILOR FITCH WITH A SECOND BY COUNCILOR BALLEW TO ACCEPT CORRESPONDENCE ITEMS 1-5 FOR FILING. THE MOTION PASSED WITH A VOTE OF 5 FOR AND 0 AGAINST. Mayor Leiken opened it up for discussion regarding item #6, a letter from Rosie Pryor, McKenzie Willamette Hospital regarding a request for Mayor Leiken to sign a letter to the Attorney General in support of the partnership between McKenzie Willamette and Triad. Councilor Fitch said she would agree to support a letter, however in paragraph 2 of the letter, we know nothing about Triad or the conditions. She agrees with the positive effect of health care in Lane County. She recommends a letter that would state having two thriving hospitals in the area would be good for the citizens. Councilor Burge asked about the City underwriting the hospital. Joe Leahy said the City provides the legal authority, but we do so without any liability. There is no traditional underwriting and no language in the statute that would affect our bond rating. Finance Director Bob Duey agreed. Mr. Duey spoke, but his comments were inaudible as they were from the audience. IT WAS MOVED BY COUNCILOR FITCH WITH A SECOND BY COUNCILOR BALLEW TO ACCEPT CORRESPONDENCE ITEM #6 WITH THE RESPONSES DISCUSSED. THE MOTION PASSED WITH A VOTE OF 5 IN FAVOR AND 0 AGAINST. ORDINANCES . Springfield City Council Regular Session Minutes - February 24,2003 Page - 14 . 1. Ordinance Adopting Engineer's Report for Project P20328, Installation of Sanitary Sewer in 21 st Avenue From Harrison Avenue East 100 Feet and Vicinity - 2nd Reading. ORDINANCE NO. 6038 - AN ORDINANCE ADOPTING THE REPORT OF THE CITY ENGINEER FOR THE INSTALLATION OF SANITARY SEWER IN 2l ST AVENUE FROM HARRISON AVENUE FROM HARRISON AVENUE EAST 100 FEET AND VICINITY (PROJECT P20238) City Engineer Al Peroutka was present for the staff report. He said a public hearing and first reading of the ordinance for adoption of the report was held on February 3, 2003, but there were insufficient votes to adopt the ordinance with an emergency clause. Council needs to approve the ordinance for adoption of the Engineer's Report prior to award of contract for the project. Councilor Ralston declared a conflict of interest and recused himself from the decision. Councilor Woodrow said he would like to thank staff for all the information. He appreciates staffs work, but does not believe it is equitable to force one citizen to do something because one other citizen wants to do something. That is why he doesn't support. Councilor Burge will not support this. He asked if we have a Council policy that you need 2/3 approval. . Mike Kelly said all public improvements projects are initiated by the Council, either on their own or in response to petitions signed by half or more of the people involved. It does take 2/3 ofthe affected owners to remonstrate. IT WAS MOVED BY COUNCILOR FITCH WITH A SECOND BY COUNCILOR BALLEW TO ADOPT ORDINANCE NO. 6038. THE VOTE PASSED WITH A VOTE OF 3 IN FAVOR AND 1 AGAINST. 2. Council Adoption of Ordinances with Corrected Legal Descriptions of Property Subject to Previous Council Action Regarding Metro Plan and Gateway Refinement Plan Diagram Amendments and Rezoning. ORDINANCE NO. 6039 - AN ORDINANCE CORRECTING A SCRIVENER'S ERROR IN AND CLARIFYING ORDINANCE NO. 6030 AMENDING THE METROPOLITAN AREA GENERAL PLAN DIAGRAM BY REDESIGNATING 22 ACRE OF LAND FROM PARKS AND OPEN SPACE AND COMMUNITY COMMERCIAL TO CAMPUS INDUSTRIAL AND DECLARING AN EMERGENCY. ORDINANCE NO. 6040 - AN ORDINANCE CORRECTING A SCRIVENER'S ERROR IN AND CLARIFYING ORDINANCE NO. 6031 AMENDING THE GATEWAY REFINEMENT PLAN DIAGRAM BY REDESIGNATING 22 ACRES OF LAND FROM PARKS AND OPEN SPACE AND COMMUNITY COMMERCIAL TO CAMPUS INDUSTRIAL CONSISTENT WITH THE METROPOLITAN AREA GENERAL PLAN DIAGRAM DESIGNATIONS FOR THIS PROPERTY AND DECLARING AN EMERGENCY. . ORDINANCE NO. 6041 - AN ORDINANCE CORRECTING A SCRIVENER'S ERROR IN AND CLARIFYING ORDINANCE NO. 6032 REZONING TAX LOT 100, ASSESSOR'S MAP 17-03-15-30, FROM COMMUNITY COMMERCIAL TO CAMPUS INDUSTRIAL, AND A Springfield City Council Regular Session Minutes - February 24, 2003 Page - 15 . PORTION OF TAX LOT 1000, ASSESSOR'S MAP 17-03-15 FROM PUBLIC LAND AND OPEN SPACE TO CAMPUS INDUSTRIAL CONSISTENT WITH THE METROPOLITAN AREA GENERAL PLAN DIAGRAM DESIGNATIONS FOR THIS PROPERTY AND DECLARING AN EMERGENCY. Joe Leahy said each of the ordinances described contained a reference to an incorrect assessor's map identification. The clarification is that at the time the ordinances were passed, there were maps and pictures, but the exhibit B was not attached to the ordinances. He said we want to make sure that correct attachment is included and that is the purpose of these three ordinances tonight. IT WAS MOVED BY COUNCILOR FITCH WITH A SECOND BY COUNCILOR BALLEW TO ADOPT ORDINANCE NO. 6039. THE MOTION PASSED WITH A VOTE OF 5 FOR AND 0 AGAINST. IT WAS MOVED BY COUNCILOR FITCH WITH A SECOND BY COUNCILOR BALLEW TO ADOPT ORDINANCE NO. 6040. THE MOTION PASSED WITH A VOTE OF 5 FOR AND 0 AGAINST. IT WAS MOVED BY COUNCILOR FITCH WITH A SECOND BY COUNCILOR BALLEW TO ADOPT ORDINANCE NO. 6041. THE MOTION PASSED WITH A VOTE OF 5 FOR AND 0 AGAINST. BUSINESS FROMT THE CITY COUNCIL . 1. Committee Appointments 2. Business from Council a. Committee Reports Councilor Ralston reported on the Human Services Commission and said he was elected to be chair of that commission. He discussed the grants they have applied for regarding a family practice clinic. They are looking for sites in Springfield. He asked about the status of the Winco (old Waremart building). Councilor Woodrow reported on the McKenzie Watershed Council meeting. He said he received an e-mail stating that the BP A will fund the budget for the McKenzie Watershed. Councilor Ballew reported on a letter she received regarding weight on highways, and it's relativity to speed. Councilor Fitch reported on BRTlDowntown Station. The mark up of the appropriation bill occurred. They had $6 Million earmarked for the Downtown Station and the Senate approved. The House side did not approve and had it marked at $2 Million. Therefore, we do not have the funding for the station yet. They are exploring other funding alternatives. Councilor Burge asked ifthe funding for the theatre isn't approved in the United Front effort, what would happen to that project. . Councilor Fitch reported on the possible efforts to raise the $l.2 Million Springfield City Council Regular Session Minutes - February 24, 2003 Page - 16 . Mayor Leiken said he talked to Councilor Woodrow about filling Lyle Hatfield's seat on the Public Safety Coordinating Council (PSCC) and he is strongly considering that. Councilor Hatfield was scheduled to be the new chair of PSCC. Mr. Kelly said that Mayor Torrey has stepped up to be chair of the policy committee and Gretchen Pierce would move into the PSCC chair position. If there is an interest among Council representatives on the PSCC to move into that position, that should be expressed to the PSCC. Mayor Leiken reported on Metropolitan Policy Committee (MPC) subcommittee. Councilor Fitch agreed to be a part of that committee and Christine Lundberg is the representative from the public. They are working to coordinate something similar to enact in order to accommodate the Oregon of Transportation Commission (OTC). Councilor Ballew will sit in at the next meeting in Councilor Fitch's absence. Mayor Leiken said he accepted a position statewide in the Domestic Preparedness Work Group. He discussed the money coming to the state from the Homeland Security Federal dollars. The Work Group recommends or denies how the federal homeland security funds are allocated when applications are received. He was appointed to represent the cities. b. Other business . Councilor Fitch said having read the correspondence in the communication packet regarding the Grand View Estates project, she believes we need to reconsider and reevaluate. She said we also need clarification on whether or not we have anything recorded on the titles regarding deed restrictions. BUSINESS FROM THE CITY MANAGER 1. Annual City Manager Contract. Human Resources Bill Spiry reported on the annual City Manager contract. The renewal represents essentially maintenance ofthe City Manager's current agreement with the recommendation that includes cost of living adjustment which is based on cost of living adjustment for all non-union management employees as of July I of this year. He stated that they are maintaining the comparables when looking at other municipalities and local public agencies. He noted the new evaluation form, based on a request from the judiciary committee last year. Staff will recommend using this new evaluation form for future evaluations of the City Manager. Councilor Fitch said this is long overdue and extended her apologies to Mr. Kelly. IT WAS MOVED BY COUNCILOR FITCH WITH A SECOND BY COUNCILOR BALLEW TO APPROVE THE ANNUAL CITY MANAGER CONTRACT FOR 2003/04. THE MOTION PASSED WITH A VOTE OF 5 IN FAVOR AND 0 OPPOSED. BUSINESS FROM THE CITY ATTORNEY . 1. Mr. Leahy is pleased to share that this is his 30th wedding anniversary and he introduced his wife Judy Leahy. Springfield City Council Regular Session Minutes - February 24, 2003 Page - 17 . ADJOURNMENT 9:21 p.m. , Attest: ~ 0 /' ~1)lAJ?L City Recorder . . "':