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ATTACHMENT A <br /> <br /> <br /> <br /> <br /> <br /> <br />Public Works <br /> <br /> Administration <br /> <br /> <br />City of Eugene <br /> 858 Pearl Street <br />M <br /> Eugene, Oregon 97401 <br />EMORANDUM <br /> (541) 682-5241 <br /> (541) 682-6826 FAX <br /> www.ci.eugene.or.us <br /> <br />Date: <br />November 21, 2006 <br /> <br />To: <br />Mayor Piercy and City Council <br /> <br />From: <br />Kurt Corey, Public Works Director, 682-5241 <br /> <br />Subject: <br /> Response to Questions and Comments Related to Transportation System Maintenance Fee <br /> <br />Public comments and subsequent council discussion related to an ordinance establishing a transportation <br />system maintenance fee (TSMF) raised several issues. This memorandum provides staff responses to <br />those issues and offers potential motions for council’s consideration. The issues are presented in two <br />categories: those directly relating to the proposed TSMF ordinance before council; and those relating to <br />the broader issue of adequate and sustainable revenue to operate, maintain and preserve the local <br />transportation system. <br /> <br />ISSUES RELATING DIRECTLY TO TSMF ORDINANCE <br />Three issues have been raised that pertain directly to the proposed TSMF ordinance. Each issue <br />discussion includes a summary of the issue, including pros and cons of various options, and provides for <br />council consideration a potential motion to amend the proposed ordinance. <br /> <br />Allowable Uses of TSMF Revenue <br />Under the proposed ordinance, the purpose of the TSMF is to provide funding to operate, maintain, <br />preserve and improve the city’s transportation system and to reduce the backlog of needed street repairs, <br />except for transportation-related components which are routinely funded by assessments or which are <br />eligible for funding from the improvement fee component of transportation system development charges. <br />TSM fees can only be used for these purposes and are specifically prohibited from use for capacity- <br />enhancing street improvements. <br /> <br />The transportation system is defined as all transportation-related components located on city-owned <br />property, city right-of-way, city easements. This would include existing street and alleys, on- and off- <br />street sidewalks and paths, and on- and off-street bike paths. The construction of new streets using TSMF <br />funds is prohibited in the proposed ordinance. However, the construction of new off-street sidewalks and <br />bike paths is permitted. <br /> <br />The question has been raised whether funding for operation, maintenance and construction of off-street <br />pedestrian and bike paths should be restricted. Operation and maintenance of off-street paths are <br />currently funded from the General Fund. New construction and preservation have been funded through <br />federal funding and transportation system development charges. Motor vehicle fuel tax revenues can not <br />be used to operate and maintain off-street paths that are outside of the right of way. <br /> <br />In its September 2001 final recommendation, the Eugene Budget Committee Citizen Subcommittee on <br />Transportation Funding concluded that: “The most important capital funding needs to be addressed are in <br />Attachment A for TSMF AIS/Council Action 112706 - 1 <br />