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amending the solid waste hauler code provisions, the City Manager would adopt by administrative order a 5% transportation surcharge on solid waste hauler license fees with the intention that the revenues generated from the surcharge be used for the repair, maintenance, operation and preservation of roads and streets owned or maintained by the City. Authorize a transfer from stormwater/wastewater reserves 3. - Move forward with steps to approve a modest, one-time $500,000 contribution for FY10 from existing reserves in City-owned wastewater and stormwater utilities, acknowledging that City utilities derive a direct benefit from the use of the road right-of-way but, unlike other utility providers, have never paid a fee for the commercial use of the right-of-way. Approval of this one-time transfer from City-owned utilities would impose no ongoing obligation on utility ratepayers. However, as part of the longer-term strategy for solving the City’s overall transportation funding problems, the council may wish to expand discussions later this year to include the proposed Eugene right-of-way use fee on City-owned sewer and stormwater utilities to be used for the operation, maintenance and repair of city streets. Total proposed contribution to FY10 Road Fund budget = $500,000 ? Next Steps: Under Eugene City Code, the City Manager sets wastewater and stormwater utility charges by Administrative Order. However, because the use of wastewater and stormwater resources for street O&M (even on a one-time basis) is a significant change in practice, the City Manager intends to schedule a public hearing on April 20 to receive public comment on proposed amendments to the Eugene City Code that would specifically allow the use of certain stormwater and wastewater resources for road operations, maintenance, repair, preservation and reconstruction (see Attachment C). On April 27, the council would have an opportunity to take final action on the proposed code amendments. Budget authority for the FY10 one-time transfer of $500,000 from wastewater and stormwater utility reserves would come to the council for formal approval as part of the FY10 Supplemental Budget #1 later next fall. RELATED COUNCIL GOALS AND POLICIES The council’s Vision and Goals Statement with respect to Fair, Stable and Adequate Financial Resources reaffirms commitment to “a local government whose ongoing financial resources are based on a fair and equitable system of taxation and other revenue sources and are adequate to maintain and deliver municipal services.” The goal of the current council Transportation Initiative is to “Develop mechanisms to adequately fund Eugene’s transportation system for cars, trucks, bikes and pedestrians, including maintenance and preservation and capital reconstruction.” COUNCIL OPTIONS The two principal strategies available for balancing the FY10 Road Fund budget are 1) to reduce the current service system to the level of existing and projected resources, 2) to increase the level of revenue, on at least a short-term basis, to adequately fund the current street O&M service system through June 30, 2010. The specific policy options available to the council in moving forward with a short-term strategy for funding FY10 Road Fund services are as follows: Option 1: Direct the City Manager to not move forward with implementation of any new revenue sources or redirection of any existing revenues, but instead to develop the FY10 Road Fund Proposed Z:\CMO\2009 Council Agendas\M090408\S090408B.doc