CC Minutes - 01/28/08 Work Session

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Ms. Ortiz remarked that a transportation funding bill was passed by the Washington State legislature and then referred to the voters by unhappy taxpayers, so a State solution was not guaranteed. She said a sunset provision required the council to discuss and reconfirm a tax. She applauded the citizens of Eugene because using less gas meant people were changing their driving behavior and operating more fuel-efficient cars, not going out of the area to buy fuel. She pointed out that the gas tax could be rescinded at any time the council wished and if other funding became available she would support that. She was in favor of the second option. Mr. Pryor, seconded by Ms. Bettman, moved to direct the City Manager to go with Option 2, an ordinance concerning motor vehicle fuel dealer's business license tax as shown in Attachment A. Mr. Lidz read the action section of the ordinance: Section 3 of Ordinance No. 20337 (the sunset provision) adopted by the City Council on January 24, 2005, is hereby amended to read: "Unless otherwise extended by the City Council, the amendment to Subsection (b) of Section 3.467 shall sunset on February 28, 2011, and the tax will revert to three cents per gallon." Mr. Zelenka said he was willing to compromise on a three-year extension, but the sunset should be linked to solving the problem. He clarified that the council's action did not increase the tax; it maintained the status quo. He stressed that if the sunset extension was placed on the ballot and defeated, that would mean a reduction in the pothole fund and there would be consequences in terms of worsening street conditions. He said that the Oregon Department of Transportation indicated that gas tax revenues were declining because people were driving hybrid vehicles, driving smarter and using less gas and as Ms. Ortiz pointed out, that trend was reflected locally. He said the extension would provide time for the legislature to act and for the council to work on other funding options discussed by the subcommittee. Mr. Clark said he would have a difficult time supporting the motion because voters had earned the right to vote on the matter. Mr. Poling said that Ms. Ortiz had persuaded him to support the motion. The motion passed, 7:1; Mr. Clark voting in opposition. Mayor Piercy adjourned the work session and called the council into executive session at 7 p.m. C. EXECUTIVE SESSION Pursuant to Oregon Revised Statutes 199.660(2)(e), the City Council met in executive session. Respectfully submitted, Angel Jones City Manager pro tem MINUTES—Eugene City Council January 28, 2008 Page 8 Work Session