Item 3: An Ordinance Concerning Transportation System Maintenance Fees

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the backlog of preservation work on roads and off-street bike paths with the estimated annual funding needs of $8.5 million for roads and $425,000 for off-street bike paths.” The original TSMF ordinance approved by council in December 2002 did not restrict spending to preserve the off-street path system but set a percentage cap on other system expenditures (not to exceed 2 percent of the total fee paid in any year for traffic calming, sidewalk access ramps, street lighting fixtures and street trees). Restricting the use of TSM fees for off-street bike paths could increase the funding available for street preservation projects but would limit the funding available for preservation of the bike path system. Retaining the current language in the ordinance provides the greatest amount of flexibility to address specific system preservation needs on a year-to-year basis. A percentage cap (as opposed to an absolute dollar amount) would be more responsive, over time, to inflation and other indexed costs. Potential Motion 1: Move to amend proposed section 7.760(1) to add the following sentence at the end: "No more than 5% of the TSM fee revenue in any year may be spent for operation, maintenance and construction of off-street pedestrian and bike paths." Referring the TSMF Ordinance to Local Voters The TSMF ordinance as proposed would be adopted by the city council under its authority as a home rule charter form of government. Referring the matter to the voters could help measure the public’s support for the fee as a revenue vehicle for funding the local transportation system. Approval of the referendum would arguably be a public expression of support for the fee and would provide some assurance it would not subsequently be placed on the ballot through the voter initiative process. Conversely, all of the public information and outreach on this topic has suggested the ordinance would be adopted by the council; it might be viewed as untimely, after more than six years of development of the concept, to subsequently refer it to the voters. Additionally, the council has completed an exhaustive study of the issue and found no other viable solution to address the transportation system funding gap. Potential Motions: 2a. Move to amend the proposed ordinance to add a new section to the ordinance, as follows: "Notwithstanding the effective date of ordinances as provided in Section 32 of the Eugene Charter of 2002, this ordinance shall take effect only upon the approval of the electors of the City at an election." and 2b. Move to direct the city manager to place on the consent calendar for the council's December 11, 2006 meeting, a Resolution referring the TSMF ordinance to the voters calling an election for that purpose on the earliest available date. Revising the Rate Methodology to “Shall” from “May” Section 7.765 (2) (a) of the draft ordinance says that the fee may be based on a number of components, including a variable trip-rate component, a flat base component and a flat administrative component. The draft fee methodology does incorporate these three components. This section may be amended to require, rather than simply permit, that these three components be part of the rate-setting methodology. Since the draft methodology incorporates all three components, this change will have no effect on implementation of the TSMF as proposed. The amendment would prevent the rate- setting methodology from being changed in the future to eliminate any of the three fee components, but elimination of any component is not anticipated to be necessary in any case. Attachment A for TSMF AIS/Council Action 112706 - 2