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EUGENE CITY COUNCIL AGENDA ITEM SUMMARY Work Session: Transportation Funding for Pavement Preservation Meeting Date: September 27, 2004 Agenda Item Number: B Department: Public Works Staff Contact: Kurt Corey www. cl. eugene, or. us Contact Telephone Number: 682-5241 ISSUE STATEMENT The implementation of a 3-cent-per-gallon local motor vehicle fuel tax in August 2004, together with the reimbursement component of the transportation systems development charge, has allowed the City to begin addressing the significant backlog of pavement preservation projects in Eugene. However, this backlog continues to grow. Additional funding is needed to reverse this trend and to do the repair work necessary to ensure the efficient and safe operation of local transportation systems. This work session provides an opportunity for council to review the progress on preservation program funding efforts, to hear updates on cooperative efforts with partner agencies, and to discuss the potential implementation of additional funding options or increases in the levels of existing funding mechanisms. BACKGROUND Previous Council Action and History_ In October 2001, the Citizen's Subcommittee on Transportation System Funding presented its recommendation that the council implement a transportation funding package consisting of a combination local motor vehicle fuel tax and transportation system maintenance fee for the purpose of generating an additional $9 million annually to address the City's critical transportation system funding needs. On December 9, 2002, the council approved an ordinance establishing a transportation system maintenance fee (TSMF). On January 29, 2003, a related transportation revenue measure, the local motor vehicle fuel tax ("fuel tax"), was approved by the council. On September 8, 2003, the council voted to repeal the TSMF ordinance, citing the recent repeal by the Springfield City Council of that city's TSMF and concerns about equity between the two cities, as well as concerns raised by the Eugene Chamber of Commerce about the structure and impact of the TSMF on Eugene businesses. The council also cited continued hope for collaborative solutions with partner agencies, with particular reference to upcoming discussions with the Lane Board of County Commissioners and other local officials around the potential distribution of new street maintenance monies being made available to the County as a result of recent State legislation. Status of Current Funding and Project Accomplishments As a result of those interagency discussions, Lane County chose not to continue at this time exploration of either a county-wide motor vehicle registration fee or a county-wide motor vehicle fuel tax. L:\CMO\2004 Council Agendas\M040927\S040927B.doc