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estimated that this ordinance would cost the average service station owner one-third of his or her gross <br />profit. <br /> <br />Kevin Matthews, PO Box 1588, president of the Friends of Eugene, said his organization supported <br />funding mechanisms that connected transportation to its users. He felt the City was pressing ahead with the <br />West Eugene Parkway although the State had indicated that some of the maintenance costs would be <br />assigned to the City. He said the Friends of Eugene could not accept a gas tax as part of a rational <br />transportation funding process. <br /> <br />Ron Tyree, 4000 Spring Boulevard, was owner of Tyree Oil, a local company that provided over 50 jobs. <br />He objected to the inclusion of diesel fuel in the ordinance, although he appreciated the need to improve <br />roads. He said his company was the only oil distributor located within the City limits of Eugene. He related <br />that he paid $100,000 per year in Public Utility Commission road mile taxes for his trucks, which equated to <br />58 cents per gallon for State taxes alone on top of the 24-cent federal tax. He felt this was his fair share. <br />He stated that while his trucks did five percent of the driving in Eugene, 95 percent of the fuel was <br />purchased there and he was paying the three-cent-per-gallon City gas tax on it. He thought more tax could <br />potentially drive his business to relocate or, at the very least, to purchase fuel in Springfield. He opined that <br />taxes to fund road improvements should not overburden one type of business. <br /> <br />Mayor Torrey closed the public hearing and called for questions and comments from the council. <br /> <br />Councilor Kelly asked staff to clarify whether the existing code exempted bio-diesel fuel. He was also <br />unclear as to whether Mr. Tyree was referring to the fuel he was transporting or to the fuel the trucks <br />themselves burned. He was a little confused by the requests for exemption for diesel fuel. He expressed <br />appreciation for Mr. Green's testimony and asked staff for a memorandum regarding paving standards. He <br />also appreciated Mr. Mikesell's testimony regarding competitors in the two different cities but within close <br />proximity of one another. He emphasized the need to find a way to improve the roads. <br /> <br />Councilor Bettman opposed the ordinance. She underscored her sense that what was needed was fiscal <br />discipline. She reiterated that systems development charges (SDCs) were "artificially low" causing road tax <br />money to be spent on new roads. <br /> <br />Councilor Bettman asked if the subcommittee looked at concrete road construction and its maintenance and <br />also what it would cost to restore such a road after tearing it up for repairs. <br /> <br />Noting that the chamber representative had suggested the City take funding from its lower priority services <br />to fund road maintenance, Councilor Bettman said she would like to see a list of the services the chamber <br />thought to be low priority. <br /> <br />Councilor Bettman requested that staff verify the 80-percent figure cited by Mr. Connolly in his testimony <br />regarding the City of Springfield's reimbursement for diesel fuels. <br /> <br />Additionally, Councilor Bettman asked staff to provide a "ballpark estimate" of what portion of the list of <br />road projects the council was slated to approve on December 8 included "flexible" funding. She averred the <br />Monroe/Friendly bike path project was funded by "flexible" funding that could have been channeled into <br />maintenance and preservation. <br /> <br />MINUTES--Eugene City Council December 6, 2004 Page 12 <br /> Regular Session <br /> <br /> <br />