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HomeMy WebLinkAbout12/09/2002 Regular . MINUTES OF THE REGULAR SESSION OF THE SPRINGFIELD-CITY COUNCIL HELD ON MONDAY, DECEMBER 9, 2002 The Springfield City Council met in Regular Session at Springfield City !jaIl, Jesse Maine Meeting Room, 225 Fifth Street on Monday, Deceniber 9, 2002 at 7:00 p.m. with Council President Hatfield presiding. ATTENDANCE Present were Councilors Fitch, Hatfield, Lundberg, Ralston, and Simmons. Mayor Leiken and Councilor Ballew were absent (excused). Also present were City Manager Mike Kelly, Assistant - City Manager Gino Grimaldi, City Recorder Kim Krebs, and members of staff. PLEDGE OF ALLEGIANCE Councilor Hatfield led the Pledge of Ailegiance. SPRINGFIELD UPBEAT 1. Presentation of Groundwater Guardian Plaque for 2002. . Planner Sarah Summers was present and introduced Nancy Moreno of the Springfield Utility Board, who was here to present the plaque. Ms. Moreno thanked the Mayor and City Council for their continued support of the Springfield Groundwater Guardians Group. She reviewed the group's 2002 activities, which included the placement of groundwater protection signs around the community and the addition of water- related topics to the existing science curriculum at local schools. Ms. Moreno presented the plaque and a picture of the initial presentation ceremony that included Councilor Anne Ballew to the City Council to general applause. CONSENT CALENDAR IT WAS MOVED BY COUNCILOR FITCH WITH A SECOND BY COUNCILOR SIMMONS TO APPROVE THE CONSENT CALENDAR. THE MOTION PASSED WITH A VOTE OF 5 FOR AND 0 AGAINST. 1. Minutes a. November 25,2002 - Work Session b. December 2, 2002 - Work Session c. December 2, 2002 - Regular Meeting 2. Ordinances . a. ORDINANCE NO. 6030- AN ORDINANCE AMENDING THE METROPOLITAN AREA GENERAL PLAN DIAGRAM BY REDESIGNATING 22 ACRES OF LAND FROM PARKS AND OPEN SPACE AND COMMUNITY COMMERCIAL TO CAMPUS INDUSTRIAL (SECOND READING). Springfield City Council Minutes of Regular Session - December 9,2002 Page - 2 . b. ORDINANCE NO. 6031- AN ORDINANCE 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 (SECOND READING). c. ORDINANCE NO. 6032- AN ORDINANCE REZONING TAX LOT 100, ASSESSOR'S MAP 17-03-15-13 FROM COMMUNITY COMMERCIAL TO CAMPUS INDUSTRIAL, AND A 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 PROPOERTY (SECOND READING). d. ORDINANCE NO. 6033 - AN ORDINANCE AMENDING THE METROPOLITAN AREA GENERAL PLAN DIAGRAM BY REDESIGNATING APPROXIMATELY 35 ACRES OF LAND FROM LIGHT-MEDIUM AND HEAVY INDUSTRIAL TO COMMUNITY COMMERCIAL AND PARKS AND OPEN SPACE (SECOND READING). ., e. ORDINANCE NO. 6034 - AN ORDINANCE AMENDING THE MID-SPRINGFIELD REFINEMENT PLAN DIAGRAM BY REDESIGNATING APPROXIMATELY 35 ACRES OF LAND FROM LIGHT-MEDIUM AND HEAVY INDUSTRIAL TO COMMUNITY COMMERCIAL AND PARKS AND OPEN SPACE CONSISTENT WITH THE METROPOLITAN AREA GENERAL PLAN DIAGRAM DESIGNATIONS FOR THIS PROPERTY (SECOND READING). f. ORDINANCE NO. 6035 - AN ORDINANCE REZONING TAX LOT 500, ASSESSOR'S MAP 17-02-31 FROM LIGHT-MEDIUM AND HEAVY INDUSTRIAL TO COMMUNITY COMMERCIAL (5.1 ACRES) AND PUBLIC LAND AND OPEN SPACE (29.24 ACRES) CONSISTENT WITH THE METROPOLITAN AREA GENERAL PLAN DIAGRAM DESIGNATIONS FOR THIS PROPERTY (SECOND READING). Other Routine Matters a. Authorize the City Manager to Execute an Intergovernmental Agreement to Participate in a Review of Franchise Fees Paid by Qwest and Verizon. PUBLIC HEARINGS Transportation System Maintenance Fee. . _ ORDINANCE NO. 6036 - AN ORDINANCE IMPOSING A TRANSPORTATION SYSTEM MAINTENANCE FEE, PROVIDING FOR RATE SETTING AND ADMINISTRATION, ENFORCEMENT AND COLLECTION OF THE FEE; ADDING SECTIONS 7.600, ET SEQ., TO THE SPRINGFIELD MUNICIPAL CODE AND DECLARING AN EMERGENCY. Springfield City Council Minutes of Regular Session - December 9, 2002 Page ~ 3 . Public Works Technical Services Manager Len Goodwin was present for the staff report on this issue. He said the ordinance before the council was the culmination of a process that began about three years ago when he discussed the City's growing road maintenance backlog with the council. Revenues the City traditionally relied upon in the form of State gas taxes and County Road Funds had stagnated over the past few years. He anticipated that Springfield would receive the same amount in gas taxes in 2003 that it had in 1980, when the system was much smaller. Since that time, the council had discussed the potential of adopting locally controlled revenue sources to fund the street system. Those discussions regarding two potential sources, a transportation system maintenance fee (TSMF) and a local gas tax. Mr. Goodwin reported that on December 2,2002, and December 9,2002, the council reviewed a draft ordinance imposing a local TSMF. Mr. Goodwin said that he was here to present the draft ordinance and ask the council to conduct a public hearing on the fee. Pursuant to the council's direction, staff would return at a later time to discuss the possibility of a local fuel tax ordinance. He said that during recent work sessions, the council identified the basic funding need for operations, maintenance, and preservation of the transportation system as totaling about $1.6 million annually. That included about $1 million needed to create a structural balance between ongoing revenues and expenditures, and another $500,000 to $600,000 for additional funding to bring the City's level of preservation activity up to about $1 million annually, which would allow the City to maintenance preserve the system it had at or better the condition it was today. . Mr. Goodwin said that the ordinance called for the creation of a monthly fee that would be assessed to the resident in control of the water utility fee. Fees would be created in six classes, one class of residential customers and five classes of commercial and industrial customers. Mr. Goodwin said that the council directed staff to attempt to keep the residential fee to $1.75 per month. He estimated that the business fee applying to approximately 1,100 of the city's 1,400 business establishments would be about $20 to $25 monthly. He noted that the methodology for constructing the fee was based on trip generation data provided by the Institute of Transportation Engineers Manual. The staff investigation indicated that the maximum fee for a commercial or industrial business would be about $550 monthly. That would apply only to businesses generating more than 40,000 trips on average each month. Ifthe ordinance was adopted, staff would return within 90 days with a fee-fIxing resolution. Mr. Goodwin indicated that because the ordinance, if adopted, would not meet the entire revenue target, staff would return within the next few months with a proposal for a local fuel tax to raise the balance of the funds. He noted that the city councils of Eugene and Springfield had directed their staffs that any fuel tax enacted by the two cities would be enacted at approximately the same time at the same rate. Springfield staff had consulted with Eugene staff, and it appeared that a three cent local fuel tax could be supported by both councils. . Mr. Goodwin noted that the draft ordinance included a finding related to disproportionate impact on low-income persons and provided for staff to make a recommendation to mitigate that impact. He said that at this time, staff was considering exempting households with less than 50 percent of the median income from the charge. Reflected input from the City Attorney as well as direction from the council was included in the staff report. As noted at the work session of December 2, many of council's directions to staff are not reflected in the ordinance but, as set above, will serve as guidance to staff as the rate setting methodology and fee resolution are drafted in anticipation of further action by the council. . Springfield City Council Minutes of Regular Session - December 9,2002 Page - 4 . Councilor Simmons suggested that there was a grammatical error in the paragraph addressing mitigation of low-income households. Councilor Hatfield opened the public hearing. 1. Michael O'Connor, 561 Nicholas Drive, Springfield, said that the City's goals called for the effective and efficient use of public dollars to meet citizen's needs. He said he took a 20 percent pay cut to go back to work. That meant he must put off purchases. He said that the council was proposing a gas tax and user fee to cover basic, needs that it should be responsible for managing. He said that the City already had police and fire levies, and . over 50 percent of his tax bill was levies. He was tired of that He said it was ridiculous to impose another fee in an economic downturn. Mr. O'Connor said that all expenses except schools, police, fIre, and road maintenance should be cut out of the City budget. 2. Dave Carvo, 4010 East 16th Avenue, Glenwood, asked the council to ensure that citizens of Glenwood were not billed as they were not inside the city limits. He expressed concern that log trucks would pay the same fee as light cars and he did not think that was fair because heavier vehicles caused more wear and tear on roads. He wanted to see something in the ordinance that addressed that concern. . Mr. Carvo spoke to the exemption for low-income residents, questioning the median income figure and suggesting that it was not the median income in Springfield. He said . he hated to see the ordinance be passed and the citizens charged more money. He agreed with Mr. O'Connor that there were City services that the City did not really need. Mr. Carvo thought that the City could fmd more money in its budget if it looked harder. 3. Jim Daubenspeck, 2579 Castle Drive, Eugene, said he owned-residential property in Springfield. He did not understand why there had not been a bigger public information process regarding the ordinance. Mr. Daubenspeck said that if residents did not watch the television or subscribe to the newspaper, they would not know what was going on. He acknowledged that traditional sources of funding were not available, but he did not think it was appropriate for the council to make a decision based on the lack of public input.. Regarding the gas tax, he believed that the State legislature would address the issue in the upcoming session, and it was inappropriate for the cities of Eugene and Springfield to seek such a tax. He asked why there was no discussion of how long the fee would last, or what penalties would be imposed if a resident refused to pay the fee. Mr. Daubenspeck called for more public input and public hearings. . 4. Jan Johnson, 4116 T Street. Springfield, noted that studded tires were not mentioned in the ordinance but they do a great deal of damage to the streets. She agreed with the previous speakers, saying that residents were being taxed and taxed on everything. Councilor Hatfield closed the public hearing. Responding to a question from Councilor Ralston regarding the application of the fee outside the city limits, Mr. Goodwin clarified that the fee would apply only to those who live inside the city limits and are billed by the Springfield Utility Board. . Springfield City Council Minutes of Regular Session - December 9,2002 Page - 5 . Councilor Ralston asked if there were city residents billed by another provider, such as the Rainbow Water District. Mr. Goodwin was not sure there were any remaining citizens of Springfield who were billed by the district; if so, the City would need to make arrangements to add the fee to its bills. Mr. Goodwin noted that the reference in the statute to "median area income" was designed to capture the incomes of those living in the Springfield area. Councilor Simmons suggested that when the council adopted the fmal rates, it receive the Community Development Block Grant schedule showing Springfield income levels. Councilor Ralston asked staff to speak to the issue raised in testimony regarding the difference. between automobiles and heavy equipment. Mr. Goodwin said that each trip was treated the same whether it was generated by an automobile or a truck. There was at present no reliable methodology for segregating trips by type, unless one actually went out and did traffic counts. However, such an approach added so much to the cost of administering the program that it became a situation of diminishing returns. . Councilor Fitch recalled the area meeting between the 12 cities and the County, and noted at that time the potential of registration fee was discussed. However, Lane County was not willing to use that approach and the City could not, leaving it to figure out how it was going to preserve its assets and not allow them to deteriorate to the point where future citizens would have to pay to replace them. . Councilor Simmons suggested the potential that the forth "Whereas" in the finding could be revisited so it was not limited to the frequency of trips, weight, size, and design of vehicles so that the methodology could be revised in the future if another way to address the impact issue was found. IT WAS MOVED BY COUNCILOR FITCH, WITH A SECOND BY COUNCILOR SIMMONS, TO ADOPT ORDINANCE 6036 (EMERGENCY). Councilor Lundberg was opposed to the motion. While she believed that the streets, along with fire and life safety, were one of the most basic services the City delivered, she had a basic issue with imposing a tax because it was creative and convenient. Councilor Lundberg said that the County failed to show leadership on the subject by failing to take on some sort of vehicle registration fee or local gas tax increase that she considered more fair taxing mechanisms because they were based on the use of roads. Councilor Lundberg did not think it fair that Springfield was constantly being asked to fill in for other governmental bodies such as the legislature and County board when they failed to meet the needs that existed. She indicated her intent to use the Lane Council of Governments Board as an venue for advocating for a countywide conversation on transportation funding. Councilor Lundberg also noted her objection to the burden the fee would place on schools. . Councilor Hatfield agreed with Councilor Lundberg's remarks, particularly those regarding the failure of the State and County to act. He said that city residents paid far more in gas taxes than they received and the City had no control over what the County did with its rocid budget. , Springfield City Council Minutes of Regular Session - December 9,2002 Page - 6 . However, Councilor Hatfield reluctantly indicated support for the motion. He said that currently Springfield has a good street system, and the City could preserve it now at a lower cost than it would require later. Councilor Hatfield said that the low-income exemption made the tax more acceptable to him. He agreed that the State and County should be doing more. Councilor Hatfield did not think Springfield could address the issue of studded tires without State consent. Councilor Hatfield said that Oregon was moving toward a fees for service government because other methods of payment were being preempted at a time when revenues were falling and demand for services was increasing. He said that while he did not think the proposal was the fairest way of dealing with the issue and noted his own preference for a local gas tax as a more equitable approach, he believed the council had an obligation to maintain the road system. Councilor Simmons indicated that after he left office, he would continue to advocate for improvements and best management practices as they regarded B Street between Pioneer Parkway to 14th Street. \. Being no further discussion, and a motion was on the table, the Council acted on that motion. THE MOTION PASSED WITH A VOTE OF 4 FOR AND 1 AGAINST (LUNDBERG). CORRESPONDENCE AND PETITIONS . 1. Correspondence from Roger L. and Patricia E. Lee, 2928 Darrien Street, Eugene, Regarding the Proposed Peace Health Plan to Establish a Medical Complex in the Gateway Area. . IT WAS MOVED BY COUNCILOR FITCH, WITH A SECOND BY COUNCILOR SIMMONS TO ACCEPT THE CORRESPONDENCE FOR FILING. THE MOTION PASSED WITH A VOTE OF 5 FOR AND 0 AGAINST. BUSINESS FROM THE AUDIENCE Councilor Hatfield noted that if there was anyone in the audience wishing to speak before the council, now would be the time to do so. It was not a scheduled item on the Agenda for the evening, but he felt it appropriate to allow testimony if one so desired. There was no one present wishing to speak. BUSINESS FROM THE CITY MANAGER 1. Request by Symantec Corporation for Approval by Springfield Enterprise Zone Sponsors to . Modify the Required Minimum Average Annual Employment Level and Extend Property Tax Benefits for an Additional Two Years. . RESOLUTION NO.02-60 - A RESOLUTION AUTHORIZING THE CITY MANAGER TO SIGN AGREEMENTS WITH LANE COUNTY AND THE SYMANTEC CORPORATION TO MODIFY THE REQUIRED MINIMUM AVERAGE ANNuAL EMPLOYMENT . Springfield City Council Minutes of Regular Session - December 9,2002 Page - 7 . LEVEL AND TO EXTEND THE-PROPERTY TAX EXEMPTION TWO YEARS FOR A TECHNICAL SUPPORT CUSTOMER SERVICE CENTER IN THE GATEWAY AREA. Economic Development Manager John Tamulonis was present for the staff report on the Enterprise Zone issue. He reminded the council that it approved, along with co-sponsor Lane County, a tax exemption for Symantec for its new Gateway facility. The company had about 700 employees at that time. Since then the company made some operational changes that resulted in it becoming eligible for the zone. The company could become eligible again if it paid the fIrst year's property taxes and if the council was willing to make an adjustment in the minimum number of employees the company maintained throughout the five-year exemption period. That number would be 525 employees. Mr. Tamulonis noted that Lane County must also accept the reduction. Mr. Tamulonis briefly reviewed the fmancial impact of the adjustment, noting that the minimum compensation levels for all employees in the facility must average 150 percent of Lane County's average wage, or $40,832. Councilor Lundberg asked what Symantec would pay if it was not to receive the enterprise zone benefit in years 2-5. Mr. Tamulonis said assuming the company maintained a constant assessed value over the five-year period, it would pay $118,000 to Springfield annually. He confIrmed, in response to a question from Councilor Lundberg, that the firm was currently paying more. He attributed that to the differences between the investment value, market value, and assessment value. . City Manager Mike Kelly reminded the council that the enterprise zone was a State program, and a typical program included a three-year exemption. If a company met the State criteria related to job creation and investment, it qualified for a three-year abatement of all taxes. If the company wanted abatement in years 4 and 5 of the exemption period, it must negotiate with the local sponsors. Springfield had done such negotiations with Sony and Symantec related to funding for emergency services. IT WAS MOVED BY COUNCILOR FITCH WITH A SECOND BY COUNCILOR SIMMONS TO ADOPT THE RESOLUTION. THE MOTION PASSED WITH A VOTE OF 4 IN FAVOR AND 1 OPPOSED (RALSTON). Councilors wished outgoing Councilors Lundberg and Simmons well. ADJOURNMENT . The meeting was adjourned at 7:51 p.m. Minute Recorder - Kim Krebs . ~~ Kim Krebs, City Record r