Item B: Comprehensive Transportation Funding Solutions and a Street Utility Fee

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If the council wishes to pursue a street utility fee, it will be critical for the City Council members to initiate outreach efforts with their counterparts on the EWEB Board to begin discussions as to what it would take to secure board endorsement for the use of EWEB’s billing infrastructure for a City street utility fee. Timing The “stop-gap” funding solutions for FY10 fall far short of a long-range, comprehensive transportation funding solution for Eugene. If it is the desire of the council to continue with the development of a street utility fee as part of the long-term transportation funding solution, it is essential that the council commit to the time and effort associated with developing this alternative, while also acknowledging that it will not be a universally acceptable solution. RELATED COUNCIL GOALS AND POLICIES The goal of the 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 City Manager is seeking clear direction from the council as to whether or not to move forward with development efforts for a Eugene street utility fee. The council has two basic options: Option 1: Direct the City Manager to continue work on development of a street utility fee, including returning with a proposed budget for additional staffing and program needs for this effort. ?Provide direction to the City Manager as to which metric should be used as the basis for calculating and billing this proposed fee (trip-generation, parking spaces, other). ?Provide direction to the City Manager and staff to work with EWEB leadership to coordinate a joint elected officials meeting where the primary topic of discussion would be the potential for use of EWEB’s billing infrastructure for a City street utility fee. Option 2: Direct the City Manager to cease efforts to develop a street utility fee until instructed otherwise by the council. ?Further direct the manager to develop an alternative five-six year transportation funding strategy, relying on known and projected resources for transportation funding from all sources. By fall, the City Manager would inform the council of this mid-range funding strategy and advise them regarding his budget strategy for developing the FY11 transportation services budget within existing sources of revenue. CITY MANAGER’S RECOMMENDATION The City Manager recommends that the City Council proceed with Option 1. SUGGESTED MOTIONS ?Move to direct the City Manager to continue work on development of a street utility fee, including returning with a proposed budget for additional staffing and program needs for this effort. Z:\CMO\2009 Council Agendas\M090715\S090715B.doc