Item 3: An Ordinance Concerning Transportation System Maintenance Fees

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Action: An Ordinance Concerning Transportation System Maintenance Fees and Adding Sections 7.750 through 7.790 to the Eugene Code, 1971 Meeting Date: November 27, 2006 Agenda Item Number: 3 Department: Public Works Staff Contact: Kurt Corey www.eugene-or.gov Contact Telephone Number: 682-5241 ISSUE STATEMENT Eugene lacks adequate revenue to operate, maintain, and preserve its local transportation system. This lack is manifested in a current backlog of more than $100 million in capital preservation projects and a projected operating deficit for FY08 of nearly $1.5 million for operation and maintenance activities in the Road Fund. The specific action item before the council is whether to approve an ordinance establishing a transportation system maintenance fee (TSMF) for the purpose of generating revenue to meet the operational, maintenance and preservation needs of the transportation system. BACKGROUND On October 16, the council held a public hearing on a proposed TSMF ordinance. Eighteen people testified at the hearing, and additional input was provided by letter and e-mail. A summary of citizen contacts with staff is included in Attachment B. At the conclusion of the hearing, members of the City Council asked several questions about the TSMF and the broader issue of transportation system funding. Councilors also suggested potential revisions to the TSMF as well as potential alternatives to the TSMF. Responses to those questions and suggestions, including potential motions for the council to consider, are provided in Attachment A. The October 16 public hearing followed a work session on July 24, 2006, at which the council reviewed a draft ordinance establishing a TSMF and directed staff to proceed with a public outreach and education effort and to schedule a public hearing in October on the proposed TSMF. A report on public outreach and education is summarized in Attachment B. The direction to consider a TSMF is the result of a process that began in 2001 when the Citizen’s Subcommittee on Transportation System Funding presented its recommendation that the council implement a transportation funding package consisting of a combination local motor vehicle fuel tax and transportation system maintenance fee for the purpose of generating an additional $9 million annually to address the City’s critical transportation system funding needs. Subsequently, the council in December 2002 approved an ordinance establishing a TSMF. In January 2003, a related transportation revenue measure, a local motor vehicle fuel tax was approved by the council. In September 2003, the council voted to repeal the TSMF ordinance, citing concerns about the impact on local businesses and the hope for collaborative solutions with partner agencies, including Lane County. L:\CMO\2006 Council Agendas\M061127\S0611273.doc