Item B: Funding Strategies for Transportation System Operations, Maintenance, and Preservation

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of the pavement managementsystem, and specifically the preservation backlog analysis, as a reliable indicator and measure of the transportation system funding problems facing Eugene. The results of that study, conducted by A. M. ?Bud? Furber of Pavement Services, Inc., do confirm the reliability of the City?s pavement condition analysis, as well as the essential finding of the City?s analysis--namely, that an annual budget for preservation work of $8.5 million will significantly reduce the backlog of preservation work over the next ten years. The analysis also predicts that, without additional funding, the 2001 preservation work backlog of $67 million will grow to nearly $232 million by 2011. An annual budget of $8.5 million to address the backlog is predicted to reduce the 2011 backlog to approximately $40 million, achieving a net avoided cost of $107 million compared to the no-funding scenario. A second study was also commissioned for the purpose of obtaining an independent opinion as to the efficiency and effectiveness of the City?s transportation systemoperation and maintenance (O&M) services. The essential finding of that report, prepared by John Ostrowski Management Consultant, is that the operation and maintenance services provided through City road funds are generally efficient when compared to other cities. In fact, without adjustments of the survey data, the consultant found that Eugene has the lowest costs in three of the nine categories of services among surveyed cities. Comparisons of the raw data for total cost-per-mileand the total cost-per-capita place Eugene in the middle of the surveyed cities. With adjustments to make engineering and administrative charges more comparable with other cities? reporting practices, Eugene has the lowest costs in both cost-per-mile and cost-per-capita for Road Fund operations. It is our belief that the two consultant reports have satisfactorily addressed the concerns which prompted the recommendation for reviews of certain issues by external consultants. Based on the additional assurance provided by these two reports, we are now prepared to offer our final recommendation to Council for funding Eugene?s unmet transportation needs, as follows: We, the citizen members of the Eugene Budget Committee, recommend that Council implementa transportation funding package consisting of a combination local motor vehicle fuel tax and transportationutility fee, collaborating with the City of Springfield on the motor vehicle fuel tax, for the purpose of generating an additional $9 million (FY02dollars) each year to address the City?s transportation system funding needs. We furtherrecommend the use of the Institute of Transportation Engineers (ITE) Trip Generation manual as the basis for the transportation utility fee. Additionally, we encourage and support a public education and outreach effort, coordinated with our regional partners, to increase the public?s knowledge of the physical and financial requirements needed to maintain the city?s transportation system in its current condition. We would be pleased to respond to questions or comments about our work and conclusions when we meet with you in work session on October 17, 2001.