Item 2A - Minutes Approval - Laserfiche WebLink

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Mr. Corey reviewed the recent history of pavement preservation funding efforts. He dated the most recent effort to September 27, 2004, at which time the council directed staff to return with draft ordinances increasing the local gas tax and establishing a transportation system maintenance fee (TSMF). In October the council decided against proceeding with a TSMF and proceeded with the gas tax increase. A public hearing on the increase was held in December 2004. Mr. Corey noted the staff response to council questions, included in the agenda item summary as Attachment B. He noted that action on the proposed ordinance was tentatively scheduled for January 24. Mr. Corey called attention to a proposed amendment to the ordinance to increase the Business License Tax for motor fuel dealers by an amount to be determined. The counci[ would determine the increase in the local option gas tax. Staff continued to recommend a two-cent increase as consistent with the recommendations of the Budget Committee. The ordinance as amended would provide a partial refund on certain sales of bulk diesel fuels, which would affect over the road trucking companies located in Eugene. The ordinance change was modeled on Springfield's ordinance. Few of the miles traveled by such businesses were on city streets. Mr. Corey noted housekeeping amendments proposed for the ordinance, reflected in the draft ordinance provided to the council in the agenda item summary. Mayor Piercy thanked Mr. Corey for his comprehensive update. Mayor Piercy called on the council for questions and comments. Ms. Taylor asked why people who commuted to other cities would not receive a refund on the tax. Mr. Corey said that many people, such as tourists, could make the case that they would not be traveling on city streets and could argue for a retired. He thought the case of the trucking community was unique. Mr. Corey believed that if the City did not provide refunds to the trucking industry, it would put the commu- nity at a competitive disadvantage with Springfield, which did provide such refunds in its ordinance. Ms. Taylor asked if a local vehicle registration fee could provide adequate transportation funding. Mr. Corey said yes, if the State legislature lifted its preemption. He noted that even with the adoption of an increase in the local option gas tax, the City still had a funding gap. Ms. Taylor called for a discussion of bonding to fund pavement maintenance and upgrades. She noted that she was still undecided about an increase in the gas tax. She did not support passing an ordinance that gave staff the ability to raise the tax without council action. Ms. Solomon asked staff what other strategies it had to close the funding gap given that the two-cent gas tax increase would be insufficient, and to what extent was Lane County ready to listen to Eugene again. She asked what other Lane County communities were doing. Mr. Corey suggested that as a strategy, the City continue to pursue the work it had been doing over the past five years. He personally believed that the ultimate solution was a locally controlled, fee-based system that would resemble a transportation utility fee, such as the previously considered TSMF. He said there may be other options staff had not looked at. He acknowledged that whatever was proposed, it could compete with other City priorities, and encouraged the council to take a long-term examination. In regard to the actions taken by other Lane County cities, he said that most had enacted a local option gas tax. MINUTES--Eugene City Council January 19, 2005 Page 6 Work Session