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MINUTES Eugene City Council Work Session McNutt Room-City Hall January 28, 2004 Noon COUNCILORS PRESENT: Gary Pap6, Nancy Nathanson, Scott Meisner, David Kelly, Betty Taylor Bonny Bettman, George Poling, Jennifer Solomon. His Honor Mayor James D. Torrey called the meeting to order. A. WORK SESSION: Transportation Financing City Manager Dennis Taylor stated that the work session was a continuation of the conversation on transportation funding and an outgrowth from the joint meeting held on this subject with the Lane Board of County Commissioners and elected officials of other jurisdictions in Lane County. He said the work session was intended to get council direction on the response the City should give to the County. He introduced Kurt Corey, Director of the Public Works Department, who spoke on the issue. Mr. Corey noted that on numerous occasions the department had provided a well-documented need to reduce the backlog of deferred maintenance in the City of Eugene. He said there had been similar difficulties in the operating side of the Road Fund. He briefly highlighted the recent developments authorized by the City Council and legislature to implement two new revenue sources, the gas tax and the transportation system maintenance fee (TSMF). He stated that several projects had been completed with this revenue. He recalled the council's decision to repeal the TSMF in late 2003. The board had requested specific feedback in three areas from individual cities pursuant to the joint meeting held in November: 1) To the extent that Lane County would agree to share the new money from House Bill 2041, also known as the Oregon Transportation Investment Act (OTIA) III, under what formula should the distribution of those dollars be made to the cities of Lane County? 2) Do the cities within Lane County, specifically Eugene and Springfield, have a willingness to participate in looking at an operational efficiency audit by an outside consultant? 3) What recommendations might the City have as far as other potential revenue sources? Mr. Corey stated that there would be a presentation to the Budget Committee on broader Road Fund issues on February 18. He said that absent an infusion of new money, the operating side of the Road Fund would be up to $2 million out-of-balance in fiscal year (FY) 2005 and the capital preservation side would be up to $6 million out-of-balance in that fiscal year. He estimated that the new OTIA funding to be received by the County could amount to $1.4 million per year and depending on the funding formula, as yet to be determined, the City would stand to receive approximately $700,000 per year. Regarding additional revenue sources discussed at the County level, Mr. Corey said a countywide gas tax could yield $620,000 per year and a potential vehicle registration fee increase could yield up to $4 million per year to Eugene. Mr. Corey stated, regarding the OTIA III distribution formula the City would recommend to the County,