Item B: Ordinance Concerning Solid Waste Administrative Powers

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Action: An Ordinance Concerning Solid Waste Administrative Powers and Amending Section 3.250 of the Eugene Code, 1971 Meeting Date: June 10, 2009 Agenda Item: B Department: Public Works Staff Contact: Kurt Corey www.eugene-or.gov Contact Telephone Number: 682-8421 ISSUE STATEMENT This item is to take action on a proposed ordinance amending Section 3.250 of the Eugene City Code dealing with Solid Waste Administrative Powers. The proposed amendments would permit the establishment of a transportation surcharge on solid waste (garbage) hauler collection revenue and require that the revenue generated from the surcharge be used for repair, maintenance, operation and preservation of local streets. If the council approves the ordinance amending the solid waste hauler code, the City Manager would adopt by administrative order a 5% transportation surcharge on solid waste hauler collection receipts, effective August 1, 2009, with the revenues generated from the surcharge dedicated to street services on local streets. Following a public hearing on April 20, the council voted 5-3 on April 27 not to adopt an ordinance establishing a solid waste surcharge, similar to the ordinance which is the subject of this public hearing. In the course of the debate on that ordinance, several councilors requested that the full Eugene Budget Committee be engaged in discussing the FY10 Road Fund issue in the context of broader City budget issues. That discussion took place on May 18, where the Eugene Budget Committee approved on a 10-4 vote the following motion: “Move that the Budget Committee recommend that the City Council impose a 5% transportation surcharge on solid waste haulers to generate an estimated $900,000 for road maintenance and operations. All monies collected are to be designated to local streets for O & M. Should the City receive any extra road funding from the state or other sources in the year 2010 budget cycle, that money should be used first to offset the fees as a priority in order to rescind the surcharge.” Based on that strong recommendation by the Budget Committee, this is an opportunity for the council to take action on the revised ordinance, which would restrict the use of the revenue to providing services on local streets. The City Manager’s rationale for moving the decision on this issue along in an expedient manner is to allow this matter to be resolved in advance of the public hearing and action on the FY10 Adopted Budget, which are currently scheduled for June 15 and June 22, respectively. The council’s ultimate decision on this ordinance will have a significant bearing on the FY10 Road Fund budget and the level of street operations and maintenance services which the City will be able to provide in the upcoming year. For that reason, it is important for the City Manager to have the council’s decision on this proposed ordinance and the FY10 road funding issue by the time the FY10 City budget comes to the council for formal adoption. Z:\CMO\2009 Council Agendas\M090610\S090610B.doc