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HomeMy WebLinkAbout12/08/2003 Regular . MINUTES OF THE SPECIAL REGULAR MEETING OF THE SPRINGFIELD CITY COUNCIL HELD MONDAY, DECEMBER 8, 2003 The city of SpringfIeld council met in special regular session in the Council Meeting Room, 225 Fifth Street, SpringfIeld, Oregon, on Monday, December 8, 2003 at 8:00 p.m., with Mayor Leiken presiding. ATTENDANCE Present were Mayor Leiken, Councilors Ballew, Fitch, Woodrow, Lundberg, Malloy, and Ralston. Also present were City Manager Mike Kelly, Assistant City Manager Cynthia Pappas, City Attorney Joe Leahy, City Recorder Amy Sowa and members of the staff. PUBLIC HEARING 1. Willakenzie Fire District Annexation. RESOLUTION NO. 03-59 - A RESOLUTION INITIATING ANNEXATION OF ALL TERRITORY WITHIN THE CORPORATE LIMITS OF THE CITY OF SPRINGFIELD TO THE WILLAKENZIE RURAL FIRE PROTECTION DISTRICT AND REQUESTING THAT THE LANE COUNTY LOCAL GOVERNMENT BOUNDARY COMMISSION APPROVE THE ANNEXATION. . Assistant City Manager Cynthia Pappas presented the staff report on this item. The Willakenzie Rural Fire Protection District (WFD) passed a resolution which requests the Lane County Local Government Boundary Commission approve annexation of the corporate limits of the City of SpringfIeld into the boundaries of the WFD. The Council must adopt a Resolution in support of the Willakenzie proposal for the annexation request to go before the Lane County Boundary Commission. Elements necessary for such support include a determination that this action is consistent with the Comprehensive Plan and an IGA that accounts for all personnel and capital matters associated with this transfer. On November 17, 2003 Council held a public hearing on this issue and continued the public hearing to December 8,2003. Eight citizens testifIed; 3 submitted written testimony during the November 17 public hearing. Evaluation of the fInancial and operational feasibility of annexation has been in progress since December 2001. A consulting fIrm, Emergency Services Consulting, Inc, submitted a formal feasibility study in January 2002. Over the past six months, the city has been working with the WFD to formulate a draft intergovernmental agreement. Financial and operational stabilization of emergency services is at issue. The Mayor formed a Blue Ribbon Panel (BRP) to review the idea of annexing SpringfIeld Fire and Life Safety to the WFD and to recommend whether any of the freed up General Fund dollars should be utilized to stabilize the public safety levy. The BRP unanimously recommended moving forward with annexation;, . Annexation presents a viable option for providing stable, effIcient and effective long-term service delivery of fIre and life safety services. Once this fIrst phase occurs, there is SpringfIeld City Council Special Regular Session Minutes - December 8, 2003 Page - 2 . likelihood that several other districts (Rainbow, Glenwood, and other nearby rural fIre districts) would merge with the WFD, providing further cost and service effIciencies. Ultimately, Eugene may choose to annex their fIre and life safety department to Willakenzie, further consolidating services, which would result in cost savings throughout the metropolitan area. BenefIts to the City include the ability to absorb the temporary (4-year) police services levy with money saved from transferring the General Fund expense for fIre operations to WFD, while simultaneously making it possible for the District to absorb the fIre levy within their permanent tax rate. The result would serve to stabilize basic levels of police and fIre protection for the SpringfIeld taxpayer. WFD gains the advantage of stabilizing the tax rates for fIre protection at the same level as city residents while gaining a direct voice in the governance of fIre and life safety operations. Ms. Pappas entered into the record a letter dated December 3,2003, received by SpringfIeld Fire Chief Dennis Murphy from Eugene Fire Chief Tom Tallon stating that Eugene would continue to provide fIre and life safety services to that portion of the Willakenzie Fire District that is located on the west side ofI-5. Mayor Leiken continued the public hearing. . 1. Fred Simmons. 312 S 52nd Place. SpringfIeld. OR. Mr. Simmons said compression is a complicated issue and the answers are not there. He said Finance Director Bob Duey and staff have done the best to explain it, but there are still questions unanswered. Revenue neutrality is very important for the citizens of SpringfIeld. The control of the district is clear. The board is comprised of fIve members that are elected at large; not from districts or wards. Mr. Simmons suggested the proponents of the annexation initiate the petition to the vote, allowing them to get it done in a timely fashion. If citizens opposing the district refer it, they could wait to the fInal deadline date and delay the vote until fall, preventing the tax collection from beginning until July 2005. This is a complex issue and there are metro plan implications. He doesn't understand the fmancial strategies they have listed for providing services. Mr. Simmons opposes annexation with the facts we have, but would abide by the judgment of council and withhold opposition until the fmal order by the Lane County Boundary Commission is executed. . 2. Jeff Kronser. 6540 E Street. Springfield. OR. Mr. Kronser represents the Springfield Professional Fire Fighters Union, P.O. Box 902, SpringfIeld, OR. Mr. Kronser said the members of the fIrefighters union are in favor of this annexation. There have been numerous conversations regarding the pros and cons involved in this merger. Disadvantages that have been mentioned include the loss of a popular city service and the potential for a tax increase. The City of SpringfIeld provides a wide array of necessary services. The citizens of the community recognize the value of these services and understand the city will need continued support even if another entity is providing their fIre protection. The city leadership has a solid and lengthy record of fIscal conservancy and any use of freed up taxing authority without citizen involvement is very unlikely. The advantages of merging with the fIre district include the provision of stable funding, the ability of the emergency services to expand as the community grows and the increased effIciency as multiple jurisdictions combine into one. Mr. Kronser discussed the fIre levy passed by the voters in 2002. The comments by the community during that SpringfIeld City Council Special Regular Session Minutes - December 8, 2003 Page - 3 . campaign sent a clear message the citizens of SpringfIeld want the ftre engine staffed and would pay to have it done. A merger with Willakenzie Fire District would give stable funding without having to go to voters every four years. As our community grows, our emergency and fire protection services will have to expand to provide the same high quality service to all citizens. A ftre district would be in a better position to keep pace with these demands and could operate more economically. Several other districts have shown interest in merging into this expanded district. He said that both an independent consultant and the Mayor's Blue Ribbon Panel concluded that a signifIcant potential for long-term cost savings existed should a regional fIre district become a reality. He thanked council for the opportunity to speak tonight. The best choice is to vote yes and allow the merger to go forward. He said regardless of the outcome of council's deliberations, SpringfIeld ftre fIghters will continue to work very hard to provide the high level of service they expect and deserve. . 3. Greg Shaver. 1225 Water Street. SpringfIeld. OR. Mr. Shaver said this is a tax increase. It may remain tax neutral now, but it could easily go up with other councils in the future. He said when the Spo~s Park in the Gateway area was annexed into the city, it was on the stipulation that it would remain a sports park. As other councilors joined the City Council, things changed and that property is now under ownership of a private developer. He understands there were some land trades done on that site, but it shows that what one council promises, another council is not bound to do. He said the council is opening the door for tax increases. If more money is needed, ask the citizens for more money, don't disguise it this way. Mr. Shaver said SpringfIeld has the assets; Willakenzie does not have the assets. By merging the city is losing a major incentive for people to annex into the city. A major local district is very unlikely and he doesn't necessarily want SpringfIeld to merge with Eugene because we will lose controls. He is extremely opposed to this merger. . 4. Rick Maulding. 2196. SpringfIeld. OR. Mr. Maulding feels the Fire Department should remain part of SpringfIeld. He hopes the council will make that decision tonight. Springfteld is known as a good, yet relatively, inexpensive place to live and this is due to having a pragmatic and effIcient city government. Springfield believes in delivering adequate services the residents can afford. A separate district would not do half the job that SpringfIeld does in running an effIcient Fire Department or anything else. He appreciates the diffIcult balancing act between revenue and expenditures, but that is what it means to manage. There are never enough resources to do all things. If we want to keep Springfield a place where senior citizens and working families can live, it is imperative that unavoidable costs, such as taxes and utilities, be kept in the tightest reign. Districts are not representational government. A district would have no vested interest in SpringfIeld, their leaders are not beholding to the citizens and are not subject to property tax limitations or voter control, and they have no motivation to consider the factor of what the citizens can afford. He asked council to carry on as we are; manage our city, don't sell it. . 5. Linda Shaver. 1225 Water Street. SpringfIeld. OR. Ms. Shaver is opposed to this annexation. She said our ftre department cares for our community. If we were to annex to the ftre district, we would lose that local control. Our Fire Department is a quality department, faithful to our citizens and accountable to our government. We would lose our autonomy and would lose another measure of local control. She said we would also lose the integrity of our service. If council is determined to proceed with this annexation, SpringfIeld City Council Special Regular Session Minutes - December 8, 2003 Page - 4 . she suggests putting it to a vote of the people. This merger would cause tax increases. We have good service and we should keep it where it is. 6. Donald Mainwaring, 481 48th Street, SpringfIeld. OR. Mr. Mainwaring is against the annexation to the fIre district. He voted for the levy to open this new fIre station and persuaded many of his neighbors to vote for it also. Mr. Mainwaring was on the Eugene Fire Department for 25 years and is now retired. He cannot afford more taxes and he feels that is the purpose of this annexation. Mayor Leiken closed the public hearing. . Councilor Lundberg said she is opposed to the fIre district. She has listened to the testimony and the information. She said we do have an issue with money and it is legitimate to fInd ways to make city government work. She calculated the potential tax increase for a homeowner with a $100,000 home which would be $307 a year. This is based on the city using all oftheir taxing authority and Willakenzie using all of their taxing authority. She would not want to give someone that much more in taxes without having to say we need to do something else. She is not comfortable or confident about the three phase policy. She said she is not hopeful that we would combine with another metropolitan fire district. She is in favor of looking at that, but does not feel we would be in that position in three years. She also agrees that moving away from having our local fIre department takes away the incentive for owners to annex into the city. Ifwe were to renew the police and fIre levies in three years and we needed a ten percent increase accounting for inflation and other factors, it would still be considerably less that going to a fire district. If our fIre service is good, we can go out with another levy in three years and the people can vote on it again. She would be optimistic those levies would pass again. She is not convinced this is the path the city should take. Councilor Lundberg is opposed to the annexation to Willakenzie Fire District. Councilor Woodrow thanked those who came to speak tonight on this issue. He said it is rare to hear from citizens. The general public does not have a complete understanding of what this annexation means. Incentive to annex to the city has been discussed tonight. He said the people that are not part of the City of SpringfIeld already receive fIre and EMS services from SpringfIeld because we contract with the Rainbow and Glenwood Water Districts anyway. He does not believe fire service is an incentive to annex. He said the Willakenzie Fire District Board would be made up of fIve members, four of which would be from Springfield. Those members would be in control of the flIe district. He agreed that this is an issue about money. With the help of city staff it can be tax neutral for the [lIst year. The second year probably would not be tax neutral, but it would not be a large tax increase. Without the possibility of a small increase in revenue, the city would have to make major cuts or close down services in the city. The Blue Ribbon Panel's objective was to look fIve, ten and twenty years ahead. The panel tried to fInd a logical solution that would be benefIcial to everyone. He said this council can't control what the next council will do no matter what they decide tonight. This is a diffIcult decision. He is in favor of annexing with the flIe district. It is a logical and good decision for the City of SpringfIeld to position itself for the future. Councilor Woodrow is in favor of the annexation to Willakenzie Fire District. . Councilor Fitch said council met with Willamalane Park and Recreation District earlier this evening in a joint work session. She said Willamalane encompasses a larger area than the city limits, but has a fIne board elected by the citizens ofthe district. SpringfIeld is within that district. Willamalane does a good job and listens to all of the citizens ofthe district. The SpringfIeld City Council Special Regular Session Minutes - December 8, 2003 Page - 5 . consultant staff hired and worked with has worked with EMS and Fire Districts across the United States. One of the issues of citizens is that Fire and Life Safety should not be held hostage by a tightened city budget. There are certain things cities are required to do and mandates that must be met. By going to the district, you take away some of the uncertainty and bring stability to the fire and life safety services. She said there is some potential for some savings in the future. Eugene councilors are taking a further look at this, despite their staff's recommendations. She said she cannot bind future councilors to what they will do, but . for this fIrst year, council will maintain this as tax neutral. In future years, the city must look at basic services and decide what additional funding may be needed. This council is very frugal and effIcient and will do their best to keep increases to a minimum. Citizens can choose future councilors during the election. She said this annexation is a good solution. We are not giving away a good Fire Department, but are making it better and stronger for the future. Councilor Fitch is in favor ofthe annexation to Willakenzie Fire District. . Councilor Ballew said this is one of the hardest things this council has worked on. She said her heart is to maintain the fire department with the city, but her head tells her we need to fInd some options. We have spent much of our reserves and our future cannot support the level of services we currently have in all areas. To put the fIre service into the fIre district, gives them their own means of fInancing public safety. It does put some relief on the city. She said they cannot guarantee actions of future council regarding the freed up tax dollars. If we do not make some changes, other negative changes will occur. We don't have the money to continue providing the services we currently have in place. As hard as this has been, she feels the responsible thing to do is to support the change with the understanding that if the Boundary Commission approves the annexation and there is a remonstrance, it will go to a vote of the people which will make the outcome binding. That is a safety valve. Councilor Ballew is in favor of the annexation to Willakenzie Fire District. Councilor Ralston said this is a difficult issue. He made a list of pros and cons, but that didn't make the decision any easier. He said if it weren't for the $1.2M defIcit the city is facing, the city would not be looking at this option. He said there is no economy of scale and the annexation would not save the city any money at this time. He supports the fIre and police departments, but voters were told the city would come back in four years to 'ask for support again. By annexing into a fIre district, we are taking away the citizens' right to vote on these services in three years. The city is required by law to balance the budget, and council and staff look out two to three years in preparing the budget so they know what they have to face. He looked at last year's budget and noted where the increases were generated. He discussed the union contracts, the raises city employees received and rising health benefIt costs. He said by taking a four percent wage and benefIt cut across the board we could balance our budget for the coming year. He said previously he was willing to approve this annexation with the guarantee that the fIrst year remained tax neutral. He has changed his mind because he knows that it will not remain tax neutral. At every opportunity, the city would use their taxing authority to get more money from our citizens without their vote. He said we still have three and a half years on the levies. Citizens already have said they want those services and he believes they will approve the levies again. The only way he would consider approving this at this time, is if it were to remain tax neutral for the three and a half years left on the levies. He knows this will be remonstrated and he feels the citizens will vote it down. Councilor Ralston is opposed to the annexation to Willakenzie Fire District. . Councilor Malloy said he has looked at this and has gone back and forth on this issue. He does not want to feel he has made a wrong decision so he has spent a lot of time on this issue. SpringfIeld City Council Special Regular Session Minutes - December 8, 2003 Page - 6 . He attended the City of Eugene council meeting last week to see the response of the Eugene City Council. He expected the Eugene City Council to oppose this, but instead there was support to look into this further. He doesn't believe we can wait for Eugene to move on this first. When larger cities and departments merge together there are large savings and he believes that is something that could occur in the future with Eugene. He said as a citizen, he does not want tax increases. If there are tax increases, he wants to be sure the money is spent wisely. He does not look at this as a way to get more money or solve the city's budget problem. He is supportive of making this tax neutral the first year. He noted that in the staff report, it said the Blue Ribbon Panel recommended using 'some restraint', but in fact they said to use 'great restraint' in raising taxes. He agrees with that. He will look to the citizens before making any decisions on raising taxes of any amount. He said it is true that this council will not be in place forever, but before he votes for any new councilor, he will ask them how they feel about raising taxes. If they think it is a way to solve issues, they will not have his vote. He supports this as a good move for the future looking at other cities to join this for additional savings. He does not support the issue of raising taxes. Councilor Malloy is in favor ofthe annexation to Willakenzie Fire District. . Mayor Leiken said if there had been a tie vote, he would have probably voted no because that would have indicated to him that there were still too many questions. He said he is not opposed to a fIre district. There is an economy of scale and he foresees this will be benefIcial with the merging of both large communities encompassing the metro area. There are still a lot of questions. The ultimate decision is made by the Lane County Boundary Commission. He said if they approve the annexation, this will most likely be remonstrated. He agrees with Mr. Simmons that the council should refer this and send it to the voters because it would give the city more of a handle of the ballot title. The concept of a fIre district is a good concept. Nearly 60 percent of all fIre department in the state of Oregon are operated by fIre districts. Only 30 percent are run by cities and 10 percent are non-profIt, volunteer fIre departments. It is a trend that is happening throughout the United States. Fire Departments are much more entrepreneurial than other services within the city. He is thankful for the citizens that came forward to speak tonight. He noted the small number of people who have come before council and communicated with council on this subject. He said the information is out there for the citizens. IT WAS MOVED BY COUNCILOR FITCH WITH A SECOND BY COUNCILOR BALLEW TO ADOPT RESOLUTION NO. 03-59. THE MOTION PASSED WITH A VOTE OF 4 FOR AND 2 AGAINST (LUNDBERG AND RALSTON) Mr. Kelly said with council on recess between December 9,2003 through January 5,2004, staff will take this resolution and submit an application to the Boundary Commission by January, which is the application deadline for the February hearing. The Public Hearing will be advertised and will be held in early February. Citizens can speak before the Boundary Commission at that public hearing. The council makes the recommendation in the form of the resolution passed this evening, and the Boundary Commission will make the fInal decision. . City Attorney Joe Leahy clarifIed there is also a public hearing scheduled before the SpringfIeld City Council on January 12,2004 to review the proposed intergovernmental agreement (IGA) with Willakenzie. That will be an opportunity for review of the IGA and another chance for the public to testify to that agreement. Only if council approves at that time to go forward with the agreement and its terms and conditions will it go to the Boundary . . . . . . SpringfIeld City Council Special Regular Session Minutes - December 8, 2003 Page - 7 Commission in February. Council still has another crucial decision and citizens have an opportunity for more public input on the terms and conditions, which are very important to whether or not the city moves forward. Mr. Kelly said the annexation decision is that of the Lane County Boundary Commission. when they meet on February 5,2004. The city will prepare all of the documentation for the application to go before the Boundary Commission by the January deadline. The IGA is the important document with the details of our relationship with Willakenzie, the transfer of assets, etc. This document is important to the city, but the Boundary Commission is not as concerned with that document. They will decide if it is logical to move to a district and if it is consistent with the metro plan policies. Some members of the Boundary Commission do have interest in the IGA. If council is not happy with that IGA, council can go on behalf of the citizens to the Lane County Boundary Commission to request the annexation be withdrawn. Councilor Malloy said they have heard it is a good idea, but it should be done with a vote. One reason he voted in favor of this tonight was to move it to a vote in the most effIcient and effective manner. He agrees that council needs to do what they can to bring it before the public as soon as possible. BUSINESS FROM THE CITY COUNCIL a. Other Business Councilor Woodrow said as the President of the SpringfIeld Community Parade Corporation he would like to thank the city staff, City Manager's OffIce, Public Works Department and Police Department for their assistance with the Holiday Parade. He appreciated all of their help with the parade. He also thanked Councilors Ballew and Lundberg for participating as judges and Councilor Ralston and Mayor Leiken for participating in the parade. ADJOURNMENT The meeting was adjourned at 8:53 p.m. " Minutes Recorder Amy Sowa Attest: AmY~ City Recorder