Item B: Transportation System Maintenance Fee

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Potential Adjustments and Reductions to Rates In addition to specifying a minimum distinction between categories of residential and non-residential uses, the ordinance provides for the City Manager to consider other factors in the TSMF rates to adjust or reduce the fee for categories of customers. Adjustments and reductions would be specified in the administrative rules adopted by the City Manager. Fee reductions allow for recognition of reduced usage or demand on the transportation system. For example, in implementing the rate methodology, reductions in fees can be allowed for mixed-use development or for businesses implementing transportation demand management strategies such as providing transit passes to employees. Further analysis is required to determine the appropriate types and amount of reductions to include in the rate methodology, but it is important to give consideration to providing incentives and recognition for customers’ efforts to reduce demand on the transportation system. Next Steps The City Manager is proposing to schedule a public hearing this fall to take public comment on the proposed ordinance establishing a transportation system maintenance fee. If the ordinance was adopted, the earliest likely date for implementation would be July 1, 2007, and the critical work elements for implementation would include: Update and evaluate data necessary to implement the rate methodology and establish fee amounts $ for all customers; Develop and implement agreements, systems and methods to enable billing of the TSMF; $ Develop administrative rules specifying rate methodology and adjustments; $ Give notice of proposed fees and hold a public hearing; and $ Prepare findings and administrative order implementing the fee. $ If you have questions regarding this proposal for an ordinance or any information in this memo, don’t hesitate to contact me at 682-5241 or kurt.a.corey@ci.eugene.or.us. Page 5