Item 3: Ordinance on Solid Waste Administrative Powers

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Public Hearing: An Ordinance Concerning Solid Waste Administrative Powers and Amending Section 3.250 of the Eugene Code, 1971 Meeting Date: April 20, 2009 Agenda Item: 3 Department: Public Works Staff Contact: Kurt Corey www.eugene-or.gov Contact Telephone Number: 682-8421 ISSUE STATEMENT Tonight’s public hearing is for the purpose of gathering community input on a proposed ordinance amending sections of the Eugene City Code dealing with Solid Waste Administrative Powers. The proposed amendments would permit the establishment of a transportation surcharge on solid waste (garbage) haulers and further permit the transportation surcharge to be used for the repair, maintenance, operation and preservation of City-owned roads and streets. City Council action on these proposed amendments is scheduled for April 27. If the council approves the ordinance amending the solid waste hauler code provisions at that time, the City Manager would adopt by administrative order a 5% transportation surcharge on solid waste hauler license fees, effective July 1, 2009, with the intention that the revenues generated from the surcharge would be used to continue to deliver street operations and maintenance services in the upcoming fiscal year beginning July 1, 2009. Eugene lacks adequate funding to maintain current service levels for street operations and maintenance (O&M) activities in FY10. These are the critical street and traffic infrastructure services which keep the streetlights lit, the street signs and signals in good working order, the potholes and cracks patched, the alternative modes goals on track, and more. These services are paid from the city’s Road Operations Fund, which has experienced a 15% decrease in revenue over the last five years while expenditures have increased by 23% in that period, despite an organizational restructuring in FY04 and FY05 which resulted in service reductions, efficiencies and over $1.0 million in annual budget savings. Ongoing operating deficits are projected to deplete the fund balance to zero by late 2009. Without new revenue, the fund will be unable to support roughly one-third of current City street O&M services after June 30, 2009. In previous work sessions, the council has weighed the two available options for keeping the Road Fund solvent—to either stop providing the traditional number of street services in order to live within the available resources and/or to look for new ways to fund the services we decide to keep. The City Manager is finalizing his FY10 Proposed Budget to preserve existing street O&M services through a combination of cost reductions and realignments as well as options for using both existing and potential new revenue sources to preserve critical services. The new revenue source which the council has been discussing is a 5% transportation surcharge on solid waste (garbage) haulers. In addition to this one new revenue source, the council is also considering the use of two existing sources of revenue for preserving critical street O&M services for FY10, including the use of a portion of the local gas tax proceeds and a one-time contribution from the City’s stormwater and wastewater utilities. Z:\CMO\2009 Council Agendas\M090420\S0904203.DOC