HomeMy WebLinkAboutItem 2: PH on Ordinance Concerning Transportation System Maintenance Fees
ECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Public Hearing: An Ordinance Concerning Transportation System Maintenance Fees and
Adding Sections 7.750 through 7.790 to the Eugene Code, 1971
Meeting Date: October 16, 2006 Agenda Item Number: 2
Department: Public Works Staff Contact: Kurt Corey
www.eugene-or.gov Contact Telephone Number: 682-5241
ISSUE STATEMENT
This is a public hearing scheduled at City Council direction to receive public comments on an ordinance
to amend the Eugene City Code and to establish a transportation system maintenance fee for the purpose
of providing stable and adequate funding to operate, maintain, preserve and improve the city’s
transportation system.
BACKGROUND
In a work session on July 24, 2006, the council reviewed a draft ordinance establishing a transportation
system maintenance fee (TSMF) and directed staff to proceed with a public outreach and education
effort and to schedule a public hearing in October on the proposed TSMF.
On February 27, 2006, the council reviewed and discussed a number of potential revenue strategies to
address unmet transportation system funding needs. At that session, the council directed the City
Manager to bring back a proposal for reestablishing the previously repealed transportation system
maintenance fee (TSMF) to address not only the projected ongoing operating deficits in Road Fund
street operations and maintenance, but also to generate additional revenue to address the remaining
annual funding gaps in the pavement and off-street bike path preservation programs.
On September 26, 2005, the council reviewed and discussed the financial status and fund forecast for
Eugene’s Road Fund. Based on that discussion, the council directed the City Manager to develop a
FY07 Road Fund budget at the current service level and to bring back a proposal for a new revenue
funding package which would not only address the projected ongoing operating deficit in street
operations and maintenance but would also generate additional revenue to be dedicated to the backlog of
unfunded projects in the pavement preservation program.
Public Outreach and Education Effort
Public outreach and education has proceeded generally along the lines of the plan included as
Attachment B to the July 24, 2006, agenda item summary. A six-minute video was produced by Metro
TV and has run numerous times on Metro TV (Comcast cable channel 21). A four-page newsletter was
widely distributed to Eugene homes and businesses as inserts to The Register-Guard and Eugene
Weekly. A web site was created to provide information and offer an opportunity for residents to submit
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online comments. A number of presentations were made, including presentations to the Neighborhood
Leaders Council, local school districts, the University of Oregon and the League of Women Voters.
Based on the dissemination of information from the above-mentioned activities, the quantity of
responses received and the intent to broadly publicize the public hearing through advertising and news
releases, staff determined that a community workshop was not needed.
To date, approximately 40 responses have been received by telephone, e-mail, letter and the online
comment form. Comments included requests for fee estimates for specific properties, concerns about
the equity of the fee for those who don’t drive much, questions about how street repairs are prioritized,
and suggestions that gas taxes, property taxes or vehicle registration fees be used to fund transportation
services.
Staff will continue to offer presentations to community groups and will continue to monitor public
comments until the scheduled council action on the proposed TSMF on November 27.
Proposed Ordinance
The proposed ordinance (Attachment A) that is the subject of the October 16 public hearing is identical
to the ordinance reviewed by the council at the July 24, 2006, work session.
RELATED COUNCIL GOALS AND POLICIES
The council’s Vision and Goals Statement with respect to Fair, Stable and Adequate Financial
Resources reaffirms its 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 2001-2002 City Council Work Plan Item 1 under this goal called
for an effort to “Identify and implement funding sources (including possible reallocation of existing
sources) for operation, maintenance and preservation of the transportation system.” Additionally, the
City’s Financial Management Goals and Policy, A.4, states that the City’s municipal service priority
Level 2 (second only to the preservation of the public safety system) is to “maintain and replace the
City’s fixed assets, which includes… infrastructure…so as to optimize their life.”
COUNCIL OPTIONS
Option 1: Conduct a public hearing on the proposed ordinance and move forward to adoption with no
further revisions.
Option 2: Conduct the public hearing on the proposed ordinance and direct the City Manager to modify
the proposed ordinance prior to adoption.
CITY MANAGER’S RECOMMENDATION
The City Manager recommends that the council consider input received at the public hearing and take
appropriate action on November 27 on the proposed ordinance establishing a transportation system
maintenance fee.
SUGGESTED MOTION
None needed.
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ATTACHMENTS
A. Draft Ordinance
FOR MORE INFORMATION
Staff Contact: Kurt Corey
Telephone: 682-5241
Staff E-Mail: kurt.a.corey@ci.eugene.or.us
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ATTACHMENT A
ORDINANCE NO. ____
AN ORDINANCE CONCERNING TRANSPORTATION
SYSTEM MAINTENANCE FEES AND ADDING SECTIONS
7.750 THROUGH 7.790 TO THE EUGENE CODE, 1971.
Section 1
. Sections 7.750 through 7.790 of the Eugene Code, 1971, are added to provide as
follows:
7.750 Transportation System Maintenance Fee - Establishment; Purpose.
(1) Except as otherwise provided in sections 7.755 to 7.790 of this code, each
person responsible, as defined in section 7.755 of this code, shall pay a Transportation System
Maintenance (TSM) Fee to the city, in an amount to be determined by sections 7.765 and 7.770 of
this code.
(2) The purpose of the Transportation System Maintenance Fee is to provide
stable and adequate funding to:
(a) Operate, maintain, preserve and improve elements of the citys
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transportation system; and
(b) Reduce the backlog of needed street repairs as measured by the citys
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annual pavement condition survey.
7.755 Definitions. For purposes of sections 7.750 to 7.790 of this code, unless the context
requires otherwise, words and phrases shall have the meaning ascribed to them in this section. In
interpreting the meaning of words in a definition, other definitions of that word in this code may be
considered.
City manager. The city manager of the City of Eugene, or the city managers
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designee.
Dwelling unit. A facility designed for permanent or semi-permanent
occupancy by a single family and provided with minimum kitchen, sleeping and
sanitary facilities.
Non-residential use. Use of a premises for any use other than a dwelling unit
or units.
Person. An individual, trust, firm, joint stock company, joint venture,
consortium, commercial entity, partnership, association, corporation, commission,
state and any agency thereof, political subdivision of the state, interstate body or the
federal government, including any agency thereof.
Person responsible. The utility account customer if the charges are billed with
the utility account billing, otherwise the person having possession or control of a
premises.
Premises. A parcel or portion of a parcel of land within the limits of the City
of Eugene, with structures or other improvements on it, or upon which construction
Ordinance - 1 Attachment A to Oct. 16, 2006, Agenda Item Summary
or other activity occurs, the use of which generates usage of the transportation
system.
Residential use. Use of a premises exclusively as a dwelling unit.
Transportation system. All transportation-related components located on city-
owned property, city right-of-way, city easements, or which the city is contractually
or legally obligated to operate and maintain, or for which the city has accepted
responsibility under intergovernmental agreement, but that are not routinely funded by
assessments or work that would otherwise be eligible for the improvement fee
component of transportation System Development Charges including:
(a) Existing streets, alleys, curbs and gutters, improvements and
installations which are primarily for motor vehicle use.
(b) Existing on-street and off-street and new off-street sidewalks,
paths, improvements and installations, which are designated primarily for
pedestrian use.
(c) Existing on-street and off-street and new off-street paths
improvements and installations, which are designated primarily for bicycle or
other non-motor vehicle use.
Usage of the citys transportation system. A measure of consumption of
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transportation system services resulting from movement of vehicles, people and goods
across the citys transportation system as determined by the city manager.
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7.760 Transportation System Maintenance Fees - Revenue.
(1) All TSM fees collected by the city shall be used only for the purposes described
in subsection (2) of section 7.750 of this code and related administrative costs, but shall not be used
for capacity-enhancing street improvements.
(2) The city manager shall make an annual report to the city council of TSM fee
revenues and uses of the revenues during the preceding fiscal year.
7.765 Transportation System Maintenance Fee - Rates.
(1) Ratemaking procedure.
(a) Before proposing to impose or amend the TSM fee, the city manager
shall conduct an investigation of the revenue needs of the city for the purposes listed
in subsection (2) of section 7.750 of this code and to recover the cost of administering
the TSM fee. Based on that investigation, and using criteria set out below, the city
manager shall develop the proposed TSM fee.
(b) Prior to the imposition or amendment of the TSM fee, the city
manager shall give notice of the proposed rate or fee as provided in subsection (3) of
section 2.020 of this code and, in addition, to the news media.
(c) The notice of proposed fee shall state the current and proposed charge,
the results of the city managers investigation, and the time, place and manner in
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which interested persons may present their views on the intended action.
(d) No earlier than ten days after the first publication of notice of the
proposed fee, the city manager shall conduct a public hearing on the proposed fee.
The city manager shall give interested persons a reasonable opportunity to submit data
or views in writing on the proposed charge.
Ordinance - 2 Attachment A to Oct. 16, 2006, Agenda Item Summary
(e) The city manager, on the basis of his or her investigation and the
comments of interested persons, shall approve, modify or disallow the proposed fee
by order. The order shall contain written findings and conclusions based on the
standards set forth below. The city manager shall mail copies of the order to all
persons who have submitted written or oral comments on the charge or who have
requested a copy of the order. The city manager shall also provide copies of the order
to the mayor and city councilors. Unless reviewed by the council, the order is final on
the eleventh day after it is signed by the city manager.
(f) At the request of a majority of the members of the council made within
ten days of the city managers order, the order, or any part thereof, shall be reviewed
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by the council. The council may conduct a public hearing on the proposed fee or
review the order solely on the basis of the administrative record before the city
manager. After this review, the council shall approve, modify or disallow the
proposed fee.
(2) Ratemaking standards.
(a) The TSM fee may be based on a number of components, including a
variable trip-rate (use) component, a flat base component and a flat administrative
component.
(b) The variable trip-rate component shall be based upon the estimated
usage of the citys transportation system generated by the use of the premises, taking
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into account the amount needed for capital preservation. The charges for use of the
city transportation system shall distinguish between residential and non-residential
premises, and shall further distinguish between classes of customers, both residential
and non-residential, according to estimated usage of the citys transportation system.
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Each class of customers shall be assigned an appropriate rate, based on average
estimated use of the citys transportation system by customers in that class. The
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classes of customers shall include, at a minimum, the following classifications of
residential and non-residential customers:
1. Residential classifications:
A. Single family detached; duplex; triplex;
B. Apartment; townhouse or condominium;
C. Mobile home space;
D. Retirement community; congregate care;
E. Group homes.
2. Non-residential:
A. Low transportation system usage;
B. Medium transportation system usage;
C. High transportation system usage;
D. Education.
(c) Estimated usage for each classification of customers shall be based
primarily on the estimated number of daily trips generated per dwelling unit, thousand
gross square feet, or other unit of measure appropriate to the classification, using the
seventh edition of the Institute of Transportation Engineers Trip Generation Manual,
or a later edition of that manual or other comparable professional measurement of trip
generation adopted by the city manager by rule adopted pursuant to sections 7.795
Ordinance - 3 Attachment A to Oct. 16, 2006, Agenda Item Summary
and 2.019 of this code. Estimated usage for each classification may also take into
account additional data, including but not limited to pass-by trips, modes of
transportation, heavy vehicle usage, transportation strategies that reduce or increase
usage of the citys transportation system, targeted traffic studies and trip generation
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surveys.
(d) The flat base component shall take into account the amount needed for
operation and maintenance activities, and shall be assessed at a uniform rate per
dwelling unit or per account.
(e) The flat administrative component shall be based on the amount
needed to recover the costs of administering the TSM fee and shall be assessed at a
uniform rate per dwelling unit or per account.
(f) In addition to the standards described in subsection (2)(a) – (e) of this
section, in developing or amending the rates, the city manager shall consider the
following:
1. The amount charged for such service in the past;
2. The amounts charged or proposed to be charged by other
providers for comparable purposes;
3. The revenue needed for the purposes listed in subsection (2) of
section 7.750 of this code, taking into account all other revenue available for
these purposes;
4. Other relevant adopted policies of the council;
5. The terms of any applicable intergovernmental agreement
relating to the citys transportation system; and
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6. Applicable federal or state regulations or conditions imposed
as part of a federal or state grant or financial assistance agreement.
(g) The city manager may provide, by rule, for a list of specific premise
characteristics that the city manager has determined correlate with an increase or
decrease in usage of the transportation system. The rule shall include the degree to
which a fee will be adjusted for each specific premise characteristic. The list may
include, but is not limited to, the number of licensed drivers at a residence, size of a
residence, and trip-reduction strategies including Lane Transit District group pass
program participation if such strategies are demonstrated to be effective.
7.770 Charges - Adjustments.
(1) Any person responsible or the city manager may initiate a review of a charge to
determine if there is a basis to modify the charge. The person responsible may apply to the city
manager for a modification of the charge, and, if applicable, a credit for any excessive charges paid
during all or part of the 12 months preceding the application. The application shall be on a form
provided by the city and shall be accompanied by the fee set by the city manager under section 2.020
of this code. The city manager shall approve or deny the application using the procedures and criteria
set forth in this section. A review initiated by the city manager shall not require an application or fee
from the person responsible.
(2) The charge shall be modified, and the appropriate credit given, if the city
manager finds that:
Ordinance - 4 Attachment A to Oct. 16, 2006, Agenda Item Summary
(a) Actual usage of transportation system generated by the use of the
premises differs from estimated usage to an extent that actual usage corresponds to
the usage in a different customer class;
(b) An error has been made in identification of the use or uses of a
premises that affects the customer class assigned to the premises; or
(c) An error has been made in calculating the number of dwelling units,
thousand gross square feet, or other units of measure of the premises.
(d) An error has been made in adjusting an individual fee pursuant to
subsection (2)(g) of section 7.765 of this code.
(3) Any modification given under this section shall continue until the city manager
determines the premises no longer qualifies for the modification given. If the city manager determines
the premises no longer qualifies for the modification, written notice of that determination shall be
given to the person responsible. The city managers determination may be appealed as provided in
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section 2.021 of this code. A copy of the decision on appeal shall be mailed to the applicant, parties
who have requested a copy, and, if a reduction or elimination is ordered, to the billing agency.
7.775 Charges - Collection and Payment.
(1) The city manager shall certify the TSM fees to be collected. Collection shall be
performed by the city manager or any person or entity with whom the city manager contracts to
perform those duties.
(2) The TSM fee shall be imposed on a monthly basis or as otherwise provided by
rule.
(3) The person responsible for each premises shall be responsible for paying the
charges.
(4) Each person responsible for a premises shall be notified at least once annually
of the rate or the amount of the charge and the allocation of revenue expected from application of the
charge.
7.780 Charges – Delinquencies and Cost of Collection.
(1) The city manager or contracted person or entity collecting the charges shall
enforce the collection of fees by any means of collection provided by the laws of the state and
permitted by the charter and ordinances of the city. Any fee due which is not paid when due may be
recovered in an action at law by the city.
(2) In the event any suit or action is instituted to enforce this section, if the city is
the prevailing party, the city shall be entitled to recover from the person sued reasonable attorneys
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fees at trial or upon appeal of such suit or action, in addition to all other sums provided by law.
7.790 Administrative Regulations and Methodology. The city manager may adopt and
amend such rules and methodologies as are necessary for the administration of the duties required by
sections 7.750 through 7.790 of this code, as provided in section 2.019 of this code.
Section 2.
The City Recorder, at the request of, or with the concurrence of the City
Ordinance - 5 Attachment A to Oct. 16, 2006, Agenda Item Summary
Attorney, is authorized to administratively correct any reference errors contained herein or in other
provisions of the Eugene Code, 1971, to the provisions added, amended or repealed herein.
Passed by the City Council this Approved by the Mayor this
____ day of ____________, 2006. ____ day of ____________, 2006.
_______________________________ _________________________________
City Recorder Mayor
Ordinance - 6 Attachment A to Oct. 16, 2006, Agenda Item Summary