Item B: Update on Street and Lighting Fee Development

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Work Session: Update on Street and Lighting Fee Development Meeting Date: November 21, 2007 Agenda Item Number: B Department: Public Works Staff Contact: Kurt Corey www.eugene-or.gov Contact Telephone Number: 682-5241 ISSUE STATEMENT This work session is to discuss funding for transportation system operation, maintenance and preservation with user fees. The City Council is asked to provide further direction for development of two fees, a street and bicycle path lighting user fee and a street utility fee based on parking as a measure of street use. Staff seeks further council direction on approach and assumptions for developing draft ordinances to implement the fees. BACKGROUND The Council Subcommittee on Transportation Funding Solutions presented its report to the council on May 23, 2007. That report set out recommendations for a package of solutions to address adequate funding for the operation, maintenance and preservation of the local transportation system. The City Council reviewed the subcommittee recommendations and directed moving ahead with four of the five revenue sources: Capital Local Option Levy (potential ballot measure in May 2008) ? Increased Motor Vehicle Fuel Tax (placed on the November 2007 ballot; rejected by voters) ? Street and Bicycle Path Lighting Fee ? Street Utility Fee Based on Parking ? The council declined to pursue a solid waste collection surcharge recommended by the subcommittee. For a summary of the council action history on the funding solutions, along with next steps for each, see Attachment A. Street Utility Fee Development The street utility fee as recommended by the subcommittee for inclusion in the package of funding solutions was generally defined as using parking as a measure of system usage, with a number of implementation details to receive further definition and refinement through development of an implementing ordinance and rate methodology. A range of policy choices and alternatives exists for development of the fee as summarized below and outlined in more detail in Attachment B to the AIS. The purpose of the street utility fee is, in combination with other funding sources, to provide an adequate and stable funding source to operate, maintain, preserve and reconstruct elements of the City’s transportation system and reduce the backlog of needed street repairs. While potential uses of street F:\CMO\2007 Council Agendas\M071121\S071121B.doc