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III.PUBLIC HEARING: An Ordinance Concerning Transportation System Maintenance Fees <br /> and Adding Sections 7.750 through 7.795 to the Eugene Code, 1971 <br /> <br />Public Works Department Director Kurt Corey provided the staff report. He said the this public <br />hearing represented the culmination of a process that had begun over two years ago when the <br />council had requested that the citizen members of the Budget Committee review and bring back <br />proposals for addressing Eugene's transportation system funding shortfall. He noted that the <br />FY03 budget assumed establishment of a transportation utility fund with funding provided in part <br />by a transportation system maintenance fee. He said fees would be collected on a monthly basis. <br />Mr. Corey noted the changes to the revised draft ordinance as they were presented in the <br />meeting packet: <br /> <br /> · Include "alleys" in the list of transportation system elements. <br /> · Factor in residential characteristics, such as number of drivers registered at an <br /> address, that have a high correlation with usage. <br /> · Request for further consideration of incentives for businesses and individuals who are <br /> reducing their usage of the transportation system. Transit program credit needs to be <br /> based on demonstrated effectiveness rather than just participation. <br /> · Provide that rates will be adjusted as other sources of revenue are realized. <br /> · Eliminate requirement that EWEB collect the transportation system maintenance fee <br /> and authorize the city manager to contract with EWEB or another entity for collection. <br /> <br />In response to a question from Councilor Bettman regarding the purpose of the fee and how <br />"improve" was defined, Mr. Corey noted that, in a previous meeting, activities had been described <br />for which the funding would be appropriate. He referred Councilor Bettman to agenda page 154 <br />where, under Section 7.76, use of revenues for capacity enhancing street improvements was <br />specifically precluded. <br /> <br />In response to a question from Councilor Bettman as to the effectiveness of participation in transit <br />program credits could be demonstrated, Mr. Corey said that it would be part of the administrative <br />rule-making process to address that issue subsequent to adoption of the ordinance. He <br />commented that he did not know that it was appropriate to get to that level of detail on rate-setting <br />and methodology as part of the legislative consideration of the issue. <br /> <br />In response to a question from Councilor Bettman regarding how the level of the fee would <br />change with or without a gas tax as a supplement, Mr. Corey said staff were operating on the <br />assumption that the council was going to conduct a public hearing later in the year to consider the <br />other component of the recommended transportation funding package, which was a proposed gas <br />tax. He said staff were not contemplating anything different than what had previously been <br />reported to the council. Mr. Corey said that without the gas tax, the ordinance being discussed <br />would not completely address the funding shortfall. <br /> <br />In response to a question from Councilor Bettman regarding the upgrading of alleys to City <br />standards and whether that would be a capacity improvement, Mr. Corey said it was not intended <br />that the ordinance would be enacted for the purpose of generating revenue to build new street <br />improvements or alley improvements the first time. He said staff had always assumed a <br />continuation of the assessment process to get those facilities brought up to standard. <br /> <br />In response to a question from Councilor Pap8 regarding whether the ordinance could be <br />perceived as akin to a property tax, Mr. Klein said the proposed fee would not constitute a <br /> <br /> MINUTES--Eugene City Council July 22, 2002 Page 6 <br /> Regular Meeting <br /> <br /> <br />