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said Ms. Bettman might not always get her way, but she was heard; being heard was not always the same as being agreed with. The motion passed, 5:3; Ms. Taylor, Mr. Kelly, and Ms. Bettman voting no. B. WORK SESSION: Transportation Funding for Pavement Preservation City Manager Taylor introduced the item, reminding the council that it had been working for some time on a sustainable, locally controlled finance the backlog of pavement preservation projects. The council had explored many options and discussed the issue with the Lane County Board of Commissioners. Staff was now returning with more options. Public Works Director Kurt Corey provided some brief history on the item, noting the council last discussed the issue on September 27. He reminded the council of the work done on the topic of transportation financing by the Budget Citizen Subcommittee and its recommendation for a local gas tax and establishment of a transportation system maintenance fee (TSMF) to address the preservation backlog. The council subsequently adopted a local gas tax and a TSMF, but later repealed the TSMF because of concerns expressed by the Eugene Area Chamber of Commerce and because the council wanted to discuss additional funding opportunities with the Board of County Commissioners. Mr. Corey noted current sources generate about $3 million to $4 million annually in the face of an annual need of about $9 million. The maintenance backlog was approximately $90 million. Mr. Corey reminded the council that on September 27, it directed staff to return with a two-cent increase in the gas tax and an ordinance reinstituting the TSMF. Mr. Corey reviewed the attachments to the Agenda Item Summary: A) Proposed revisions to Ordinance No. 20278 (Concerning a Business License Tax on Motor Vehicle Fuel Dealers); B) "An Ordinance Establishing Transportation System Maintenance Fees," staff memo dated October 18, 2004; C) Proposed ordinance establishing transportation system maintenance fees; D) excerpt from Citizen Subcommittee materials and report to council regarding the discussion and conclusions on the use of General Obligation bonds for transportation funding; and E) Bonding Alternatives for Pavement Preservation. The options before the council included: Option 1: Direct the City Manager to discontinue effbrts for the adoption of ordinances for the purpose of generating additional pavement preservation funding; Option 2: Bring back for discussion a resolution to place a measure on the ballot authorizing the issuance of General Obligation bonds for the purpose of providing funding for pavement preservation projects'; Option 3: Increase the Business License Tax on motor vehicle fuel dealers by an additional two cents', to the five-cent level, by moving forward with the proposed amendment to Ordi- nance No. 20278; Option 4: Establish transportation system maintenance fees by moving forward with the proposed ordinance; or Option 5: Direct the City Manager to do any combination or variation of these options. MINUTES--Eugene City Council October 27, 2004 Page 8 Work Session