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HomeMy WebLinkAbout11/03/2003 Work Session . City of Springfield Work Session Meeting MINUTES OF THE WORK SESSION MEETING OF THE SPRINGFIELD CITY COUNCIL HELD MONDAY, NOVEMBER 3,2003. The City of Springfield council met in a work session in the Jesse Maine Room, 225 Fifth Street, Springfield, Oregon, on Monday, November 3, 2003 at 6:30 p.m., with Mayor Leiken presiding. ATTENDANCE Present were Mayor Leiken and Councilors Ballew, Woodrow, Burge, Fitch, Ralston, and Malloy. Also present were Assistant City Manager Cynthia Pappas, City Attorney Tim Harold, City Recorder Amy Sowa and members of the staff. 1. Development Task Force Recommendation. Assistant City Manager Cynthia Pappas and Development Task Force Chair Mike Evans presented the report on this item. In late July, council held a work session on proposed increases in planning fees. Options included 50, 75 and 100 percent cost-recovery strategies. Council recommended the Development Task Force be formed to take a closer look at how Springfield's planning fees compare with other comparable cities, as well as ways to increase efficiency in the development review process. . The first recommendation proposed to the council included forming a subcommittee comprised of members of the development community to work with staff on analyzing and rewriting Article 31 of the Springfield Development Code Site Plan Review, to streamline the review process. The second recommendation proposed to the council included funding Land Drainage and Alteration Program staff, as well as implementing efficiencies identified during a three-day Rapid Process Improvement session. This is the third and final recommendation proposed by the Development Task Force. Ms. Pappas described the comparison chart included in the agenda packet which Senior Management Analyst Bob Brew and City Planner Mel Oberst created for the task force. The task force discussed the issue of cost-recovery and what makes sense for the development community and the city and how best to find a balance. Ms. Pappas introduced Mike Evans, the chair of the Development Task Force. Mr. Evans discussed the process the task force went through regarding fee structure and cost- recovery. He discussed other factors such as streamlining processes and additional staffing which were going on as the task force was meeting and how those all contributed to this project. He said the majority of the committee did not feel comfortable making a recommendation based on permit cost-recovery because they did not know where the base line was and where to go from there. They analyzed how they could find a recommendation and referred to the comparison chart from Mr. Oberst. He said the committee is making a recommendation of a 21 percent increase in fees. Councilor Woodrow asked about the hourly charge-out rate noted on the comparison chart and if it was defined anywhere when that kicked in. . Mr. Oberst said it was not specified anywhere. City of Springfield Council Work Session Minutes November 3, 2003 Page 2 . Councilor Woodrow asked if it was known whether the cities listed on the chart charged the charge-out rate in addition to their standard fee or not. Mr. Oberst said one of the applications did charge it in addition. He pointed out that such a charge is noted on the comparison chart under Salem. Councilor Ralston asked Councilor Burge wl;1y he felt comfortable with a 65 percent cost- recovery instead of 100 percent cost-recovery. Councilor Burge said the thought has always been in both Planning Commission and City Council discussions, there was a residual benefit to the community when development occurs. There is a benefit because a grocery store or place of employment is constructed. New housing is a benefit to a community as well. The rational is that it is not for the sole benefit of that particular developer, owner, user or occupant. Councilor Ralston said that the public would be paying the other 35 percent from taxes. Mr. Evans said that from the perspective of the task force, in addition to those things that Councilor Burge mentioned, there was the opinion that the general public of the City of Springfield benefit from other things such as the transportation system, the clean water system, or other elements generated from development. . Mayor Leiken asked Ms. Pappas about the comparables noted on the chart and the discrepancies between the cities based on their overall property tax bases. He would like to have an idea how this scenario would be affected if property values in Springfield were $125,000. We are always in an uphill battle and we need the cost recovery. Ms. Pappas said there was discussion in the task force meetings about a fairer comparison. Councilor Burge said the problem in Springfield is the low average assessed value of homes. It is at $101,000 in Springfield and $154,000 in Eugene; Our average household income is also low in comparison to other cities. Those numbers make a significant difference in what you can do. Springfield provides an equal level of service as these other communities, but with much less funding. It makes it difficult to continue providing the basic services. He mentioned the site plan review fees and how these added costs are passed through to the buyer, making it even more difficult for citizens to buy or build a home. Councilor Fitch appreciates the task force and the work they have done. She noted the suggestions for streamlining some of our processes, but said we are faced with tough budget times. She suggested council forward this 21 percent for approval with the knowledge that this figure would need to be revisited in late spring or early summer after some evaluation. She said some additional small increases may need to be made if budget issues warrant. She said we cannot keep subsidizing to continue operating. Councilor Ballew said we need to work more on quantifying the shared benefit to the community. She said the 21 percent is probably the best we could do at this time. She asked about the System Development Charge (SDC) funds and her concern that those funds would be used for subsidizing other projects. . p . . . . City of Springfield Council Work Session Minutes November 3, 2003 Page 3 Ms. Pappas said the task force had difficulty with the issue of whether they were looking at a current 29 percent cost recovery or a current 46 percent cost recovery because of the SDC fees and whether or not they would be included. She said the committee is not recommending subsidizing anything with those funds. Councilor Burge agreed and said that is why both fees were shown in the comparison chart. Mayor Leiken said this task force did a good job on this item. He would hope to see this group getting together periodically to discuss and share ideas, etc. He thanked the staff for their work and willingness to try these new processes to become more efficient. He said he was very , appreciative ofthe work they have done. Councilor Burge said the task force does not believe this increase will be set in stone. They fully understand that circumstances change and focuses and allocations have to change. He said it was an excellent task force with highly qualified members. He said the task force was not anti- government or anti-fee increase. This group understood the fact that the city is facing some shortfalls in the General Fund. He noted that all members agreed to reconvene once or twice a year, as needed, because they do care about assisting and making the process work. ADJOURNMENT The meeting was adjourned at 6:55 p.m, " Minutes Recorder - Amy Sowa \ Attest: ~~ Amy So City Recorder