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

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and preservation.Operating agreements have long been in place to provide efficient service delivery. Examples of these operating partnerships include road maintenance agreements, ice and snow removal agreements, and agreements on how other road-relatedservices such as leaf pickup and sweeping are provided. The goals of these operating agreements, and similar agreements with Oregon Department of Transportation, are to avoid redundant service and make the most efficient use of equipment in geographical areas. An example would be the establishment of maintenance jurisdiction responsibilities in River Road-Santa Clara for specific geographic areas. Eugene has received transfer payments from the Lane County Road Fund since 1986. Originally, these payments were related to the transfer of planning, building and park services as well as the transfer of County roads within Eugene?s urban growth boundary to City jurisdiction. In 1993, the agreement was modified in the form of the existing County/City Road Partnership Agreement. Transfer payments from the Lane County Road Fund are deposited in Eugene?s Road Fund and are available for any legal Road Fund purpose. In recent years, these funds have been used almost exclusively for operation, maintenance and preservation. Revenues received through the County/City Road Partnership Agreement have declined in recent years, from a high of $2.7 million in FY96 to $1.25 million in FY01. The City in May 2001 signed a one-year extension of the current $1.25 million agreement. Extension of the agreement beyond FY02 is uncertain, complicatingthe City?s Road Fund financial projections and strategies. Lane County recently learned it would receive an estimated $24 million in additional road funds over the next six years through the federal Rural Schools and Community Self Determination Act of 2000 and has adopted criteria for distributing the additional funds through a new Capital Projects Partnership (CaPP) fund.Modernization and safety projects are the highest priorities for the CaPP fund; however, preservation projects may receive funding if other criteria are met. Over the next several months, Eugene will review its transportation system needs and determine which projects should be submitted for consideration for CaPP funding. Eugene also has historically received special capital project funding from Lane County. An example is the $5 million contribution Lane County made to the recently completed Ferry Street Bridge project. Another example is the funding Lane County has provided for low-income housing projects through its Roads for Assisted Housing Projects Program. These funds typically are project specific and are not a likely source of funding for operation, maintenance and preservation. Collaboration with City of Springfield Throughout the course of the subcommittee process, staff from the cities of Eugene and Springfield have made particular effort to maintain close communications and working relationships, both in preparation of materials and testimony for the County Roads Advisory Committee and in sharing process and backgroundmaterials related to our exploration of various transportation funding options. On a somewhat parallel process to that of Eugene, the City of Springfield staff and council have also been exploring the issue of transportation funding. When the subcommittee was beginning its work last fall, Springfield staff indicated that, while their council had not as yet expressed strong interest in creating new revenue sources, interest on the part of Eugene City Council or the County Commissioners in doing so could make a difference in Springfield?s interest in exploring different revenue options. Throughout its evaluation of various funding options, the subcommittee has continued to emphasize the value of working jointly with Springfield towards regional implementation of a new revenue source to 11