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ATTACHMENT B Public Works Administration Division City of Eugene 858 Pearl Street Eugene, Oregon 97401 (541) 682-5291 (541) 682-6826 FAX Date: October 18, 2004 To: Mayor Torrey and City Council From: Kurt Corey, Public Works Director Subject: An Ordinance Establishing Transportation System Maintenance Fees Based on Council direction at the September 27, 2004 work session on transportation system funding needs, staff are providing as Attachment C a draft ordinance establishing a transportation system maintenance fee (TSMF). This draft ordinance is identical to Ordinance No. 20273 adopted by Council on December 9, 2002 and subsequently repealed by Council on September 8, 2003. This memo describes the principal provisions of the draft ordinance and provides estimated rates and example customer fees assuming Council adopts the TSMF and Motor Vehicle Fuel Tax ordinances as currently drafted. Overview of the Draft Ordinance Under state law and local code a TSMF would fall into the category of utility or user fees. Authority to establish utility and user fees falls to local governments under state statutes. The draft ordinance establishes a transportation system maintenance fee and provides the following elements: · Purposes of the TSMF, which also control the allowed uses of the fee; · Definitions for terms used in establishing and controlling the TSMF; · Restrictions, beyond the purposes statement, on uses of TSMF revenues; · Authority for imposing, setting and modifying the amount of the fee (ratemaking procedure); · Ratemaking standards which control the basis and methodology for implementing the fee; · Adjustments and appeals; · Mechanisms for billing, payment and collections; and, · Authority for administrative rule making and methodology. The draft ordinance would establish a TSMF to be paid by all customers having possession or control of premises in the city with the purpose of proving funding for operation, maintenance and preservation of the transportation system and, more specifically, to reduce the backlog of needed street repairs. A detailed definition of the transportation system is provided to further clarify those portions of the system which are eligible for use of TSMF revenues. Revenues are to be used in the most cost-effective manner to preserve and maintain the existing street and bikeway system. Use of revenue is restricted to the prescribed purposes and is further prohibited from use for capacity-enhancing improvements of the street system. The draft ordinance has been structured to be generally consistent with adopted wastewater and stormwater service charge (user fee) ordinances. Based on prior Council dlrrection, the TSMF ordinance provides more detail on ratemaking standards and customer categories than ordinances governing stormwater and wastewater user fees. The ordinance as drafted provides a policy framework, fundamental rate structure and specific customer categories, procedures, limitations and a mechanism for implementation of the rates by administrative order of the City Manager. This implementation mechanism provides for public notice and a public hearing prior to the City Manager issuing an order imposing or amending the fee. The ordinance also provides for the Council, if it chooses, to review and