HomeMy WebLinkAboutItem A: FY10 Budget Strategies to Maintain Road Fund Service Levels
ECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Work Session: FY10 Budget Strategies to Maintain Road Fund Service Levels
Meeting Date: February 18, 2009 Agenda Item: A
Department: Public Works Staff Contact: Kurt Corey
www.eugene-or.gov Contact Telephone Number: 682-5241
ISSUE STATEMENT
The purpose of this work session is to provide the City Council with additional details about the City
Manager’s proposed strategies to maintain current service levels for street operations and maintenance
activities in FY10 and beyond. 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 services after June 30, 2009.
The City Manager has weighed the options for keeping the Road Fund solvent—either stop providing the
traditional number of street services in order to live within the available resources and/or look for new
ways to fund the services we decide to keep. In finalizing his FY10 Proposed Budget, the City Manager
is proposing to preserve existing street O&M services through a combination of cost reductions and
realignments as well as moving forward with the necessary actions to implement both a right-of-way use
fee (similar to a franchise fee) on City-owned utilities and a transportation surcharge on solid waste
(garbage) haulers.
BACKGROUND
Previous Council Action and History
On May 23, 2007, the Council Committee on Transportation Funding Solutions presented its report,
Operating
which stated that the first priority use of new revenue generated from this initiative should be “
and maintaining the existing transportation system
, including on-street and off-street bike and
pedestrian pathways.” This is consistent with the findings of the 2001 recommendations of the Citizen
Budget Subcommittee on Transportation System Funding, which included the assertion that “In the face
ensuring adequate funding for
of projected O&M shortfalls and service reductions beginning in FY03,
thoperation and maintenance activities
e of the City’s transportation system is absolutely essential.”
At its May 23, 2007, meeting, the council approved a general course of action that was intended to lead to
the implementation of a package of strategies, including a capital local levy, a street utility fee based on
parking, a street and bike path lighting fee, and an increase to the current local motor vehicle fuel tax.
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On November 12, 2008, the City Manager provided the council with an update about the status of the
Road Fund as well as his intended interim funding strategies to keep these critical City services funded for
FY10 and beyond. At that meeting, individual councilors acknowledged that the Road Fund funding
shortfalls could not be found in service reductions alone and that the need to find new sources of City
revenue for transportation systems was great. It was suggested that this looming problem would best be
met by a combination of cost reductions/reorganizations and new or enhanced revenue sources. The street
utility fee continues to have support by the council as part of the long-term funding solution, although
there was acknowledgement of the complexities involved in assessing such a fee.
Status of the Council Goal and Transportation Initiative
In the council committee’s Summary of Recommended Funding Solutions, two new revenue options were
Street/Bike Path Lighting Fee
specifically identified for funding street O&M—the and a portion of the
local motor vehicle fuel tax
proceeds from a three-cent increase in the City’s . However, the November
2007 election determined that the council would likely be unable to implement the increase in the local
gas tax, as recommended by the committee. A significant challenge in the implementation of a street/bike
path lighting fee, similar to the related street utility fee, has been finding an affordable, efficient collection
mechanism. Any new revenue sources proposed for an interim funding strategy for street operations and
maintenance will need to address the legal and operational barriers illustrated by these challenges.
Regardless of the revenue mechanisms and interim strategy adopted to balance the FY10 Road Fund
budget, it is critical that the council and the City Manager continue to pursue other potential long-term
county-wide vehicle registration fee and/or gas
solutions, including regional opportunities such as a
taxlegislative remedies
, as well as and funding solutions at the statewide level.
street
The City Manager and staff also continue to look at how we can develop a viable, cost-effective
utility fee
as part of the long-term funding solution for street O&M services. However, finding an
affordable, efficient collection mechanism for these new street fees is complicated by reluctance on the
part of EWEB to consider expanding our current billing/collection agreement to include additional City
fees, and initial investigations into alternative billing/collection and customer database options appear to
be neither readily available nor cost-effective. The City Manager intends to continue moving forward
with additional research and investigation of alternative options and also continues to keep the lines of
communication open with EWEB management around the City’s strong interest in pursuing an expansion
of the City-EWEB billing agreement to include new City fees for roads. Realistically, these challenges
would not allow for implementation of this street utility fee in a timeframe which would keep the Road
Fund solvent in FY10.
Financial and/or Resource Considerations
Under the most current projections, with no new revenues the Road Fund is expected to generate a $2.6
million annual operating deficit this current year (FY09), with that annual deficit growing to nearly $5
million in the out years of the six-year forecast. In the absence of deliberate action, the fund will deplete
all available fund resources and become insolvent sometime in the fall of 2009. On the other hand, a set
of approximately $3.8 million revenue and/or cost reduction solutions implemented by July 1, 2009,
would eliminate the projected future annual operating deficits and restore the fund balance to the policy-
recommended level.
City Manager’s Funding Strategy for the FY10 Road Fund Proposed Budget
The City Manager’s strategy for preserving existing street operations and maintenance services in view of
ongoing operating deficits is one which employs a combination of cost reductions and realignments as
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well as completing the necessary actions to implement both the right-of-way use fee on City-owned
utilities and a transportation surcharge on solid waste (garbage) haulers. Responding to the challenge of
identifying opportunities for ongoing cost savings, Public Works is proposing a $178,000 reduction in the
FY10 Road Fund operating costs achieved through the redeployment of several employee positions from
traditional Road Fund work (street debris removal, development review, night call response) to address
emerging needs in other City programs. We believe these cost savings are both achievable and
sustainable without significant reductions in service or public response. Staff continues to explore more
opportunities for restructuring Road Fund programs to increase efficiencies and reduce costs.
Acknowledging that a budget-balancing strategy based on street service reductions alone would have a
detrimental and long-lasting impact on the City’s transportation system, the City Manager has directed
that staff to move forward to prepare the necessary draft ordinances and actions to support the
implementation of both an 8% right-of-way use fee (similar to a franchise fee) on City-owned stormwater
and local wastewater utilities, as well as a new 10% transportation surcharge on solid waste (garbage)
haulers.
Right-of-Way Use Fees on City-Owned and Operated Utilities
– The City has made a significant
investment in the road right-of-way over the years and has historically charged a variety of utility
providers for the use of those rights-of-way. Fees for the commercial use of the right-of-way are currently
assessed by the City in the form of franchise fees, license fees and permits to privately-owned utility
providers. EWEB pays contributions-in-lieu-of-taxes (CILT) at a similar rate. The ROW fees and CILT
payments are currently receipted into the City’s General Fund and used to support general municipal
services. However, Eugene has never imposed right-of-way use fees on its own City-owned wastewater
and stormwater utilities. At least 15 cities in Oregon assess right-of-way or franchise fees on utilities
providing water, wastewater and/or stormwater services. For example, the City of Bend charges a right-
of-way franchise fee on the gross revenues of the City's Water and Water Reclamation Funds to help fund
a shortfall in Bend's transportation budget. The fee generates around $825,000 annually and costs the
average ratepayer in Bend an additional $2.88 per month.
Staff projects that at the 8% level (telecom companies in Eugene currently pay a 7% franchise fee for use
of the City rights-of-way) a Eugene right-of-way use fee imposed on City-owned sewer and stormwater
$1.7 million for FY10
utilities would generate an estimated for operation, maintenance and repair of city
streets. This fee would be treated as an integral business expense of the City utilities and would be
reflected in the overall user charge rates, adding an additional estimated $1.44 to the monthly bill for a
typical Eugene residential customer beginning July 1, 2009.
Next Steps:
It is the City Manager’s intention that the new right-of-way use fee would be reflected in
City stormwater and local wastewater utility rate increases effective July 1, 2009. To that end, the City
Manager intends to schedule a public hearing on March 9, to receive public comment on proposed
amendments to the Eugene City Code that would specify revenue from the new right-of-way use fees
imposed on City-owned and operated utilities be used for the repair, maintenance, operation and
preservation of City-owned roads and streets (see Attachment A). If the council so chooses, there would
also be opportunity to take final action on the code amendments that evening, which would allow staff to
proceed with confidence in initiating the Administrative Order process to set the level of the City utility
rates for FY10—a process which typically would be initiated in early April while the council is on break.
Under Eugene City Code, the City Manager sets wastewater and stormwater utility charges by
Administrative Order. However, because the use of the 8% wastewater and stormwater right-of-way use
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fee for street O&M is a significant change in practice in the use of user fees from City-owned utilities, the
council will also be asked on March 9, to adopt a resolution stating council’s support for imposing the
new 8% right-of-way use fee on City stormwater and wastewater utility user fees revenues and the
council’s intent that the revenues generated there be used for the repair, maintenance, operation and
preservation of City-owned roads and streets (see Attachment B).
Transportation Surcharge on Garbage Haulers
– The second revenue mechanism being proposed for
funding the street operations and maintenance service system is a City transportation surcharge assessed
on the revenues collected by solid waste haulers operating in the city. The transportation surcharge would
be assessed against solid waste haulers to better reflect the physical and financial impact that their
operations impose on the city street system as a result of heavy hauler vehicles running on the majority of
city streets every week. This surcharge would be assessed against solid waste haulers on the premise that
heavy solid waste trucks cause significantly more damage to city streets than do other categories of lighter
vehicles and run largely on local streets, which do not hold up as well under heavy vehicle use. The
surcharge also represents fair compensation for private use of the right of way, a public asset that haulers
rely on to deliver their services.
The garbage hauler surcharge is being proposed as a flat percentage of the hauler fees and would vary by
account, based on the frequency of collection service and the customer category. The City Manager’s
$1.8 million for FY10
proposal is for a 10% transportation surcharge, which is estimated to generate and
would increase the bill for a residential customer with weekly 32-gallon service by an additional $1.97 per
month, while commercial customers would see a proportionate 10% increase in their bills for garbage
service.
Next Steps:
In moving forward with the implementation of this new transportation surcharge on solid
waste haulers, the City Manager intends to schedule a public hearing on April 20, to receive public
comment on the proposed amendments to Eugene City Code that would permit the transportation
surcharge on solid waste hauler fees to be used for the repair, maintenance, operation and preservation of
City-owned roads and streets (see Attachment C). Action on those proposed amendments is scheduled for
April 27.
Also on April 27, the council will consider proposed action on a resolution stating the council’s support
for imposing the new transportation surcharge on solid waste hauler fees and its intent that the revenues
generated there be used for the repair, maintenance, operation and preservation of City-owned roads and
streets (see Attachment D).
RELATED COUNCIL GOALS AND POLICIES
The council’s Vision and Goals Statement with respect to Fair, Stable and Adequate Financial Resources
reaffirms 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 goal of the current 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.”
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COUNCIL OPTIONS
The three principal strategies available for balancing the FY10 Road Fund budget are: 1) to reduce the
current service system to the level of existing and projected resources, 2) to increase the level of revenue
to adequately fund the current service system for FY10 and future years, or 3) to implement a
combination of cost reductions and revenue increases.
The specific policy options available to the council in developing a strategy for balancing the FY10 Road
Fund budget are:
Option 1: Direct the City Manager to not move forward with implementation of these two new revenue
sources but instead to develop the FY10 Road Fund Proposed Budget based on known,
existing revenue, which would require reductions in street services of approximately $4.0
million beginning in the FY10 fiscal year.
Option 2: Direct the City Manager to continue to move forward with implementation steps for a new
right-of-way use fee on City-owned utilities and a new transportation surcharge on solid waste
hauler revenues by scheduling public hearings and council action as appropriate to meet
operational implementation timelines.
Option 3: Direct the City Manager to make changes or modifications to one or more of the proposed
ordinances or resolutions before moving forward with implementation of the new revenues.
CITY MANAGER’S RECOMMENDATION
Barring specific council direction to the contrary, “Option 2” reflects the City Manager’s current
intentions.
SUGGESTED MOTION
Move to direct the City Manager to continue to move forward with implementation steps for a new right-
of-way use fee on City-owned utilities and a new transportation surcharge on solid waste hauler revenues
by scheduling public hearings and council action as appropriate to meet operational implementation
timelines.
ATTACHMENTS
A. An Ordinance Concerning Wastewater and Stormwater Service and Amending Sections 6.411 and
6.421 of the Eugene Code, 1971
B. A Resolution Supporting Imposition of a Wastewater and Stormwater Right-Of-Way Use Fee and Use
of Revenues for Street Operations and Maintenance
C. An Ordinance Concerning Solid Waste Administrative Powers and Amending Section 3.250 of the
Eugene Code, 1971
D. A Resolution Supporting Imposition of a Transportation Surcharge on Solid Waste Hauler Fees and
Use of Revenues for Street Operations and Maintenance
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 WASTEWATER AND STORMWATER
SERVICE AND AMENDING SECTIONS 6.411 AND 6.421 OF THE
EUGENE CODE, 1971.
THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS:
Section 1.
Sections 6.411 and 6.421 of the Eugene Code, 1971, are amended to
provide as follows:
6.411 Ratemaking
.
(1)
Ratemaking procedure.
(a) Investigation of proposed charges. Before proposing to impose or
amend a charge for wastewater service, stormwater service or for
regional wastewater treatment service, the city manager shall
conduct an investigation of the revenue needs of the city in
conducting these operations. Based on that investigation, and using
the criteria set out in subsection 6.411(2), the city manager shall
develop proposed charges for these services.
(b) Notice. Prior to the imposition of any charge for wastewater service,
stormwater service or regional wastewater treatment service, the city
manager shall give notice of the proposed rate or charge by:
1. Making copies of the notice of intended charges available to the
news media, to any person who has requested such notice, to
the mayor and city councilors, and to interested governmental
agencies (including the United States Environmental Protection
Agency, the Department of Environmental Quality, the
Metropolitan Wastewater Management Commission, and the
Eugene Water & Electric Board).
2. Publishing notice of intended charges on two separate
occasions in a newspaper of general circulation within the city.
3. Posting the notice at two locations at city hall.
(c) Contents of notice. The notice of intended charges shall state the
current and proposed charge, the results of the city manager's
investigation, and the time, place and manner in which interested
persons may present their views on the intended action.
(d) Public hearing and opportunity to comment. No earlier than ten days
after the first publication of notice of the intended charges, the city
manager or the manager's designee shall conduct a public hearing
on the proposed charge. The city manager shall give interested
persons reasonable opportunity to submit data or views in writing on
the proposed charge.
(e) Decision. The city manager, on the basis of his or her investigation
and the comments of interested persons, shall approve, modify, or
disallow the proposed charge by order. The order shall contain
Ordinance - Page 1 of 4
ATTACHMENT A
written findings and conclusions based on the standards set forth in
subsection 6.411(2). The city manager shall mail copies of the
decision to all persons who have submitted written or oral comments
on the charge or who have requested a copy of the decision. The city
manager shall also promptly deliver copies of the decision to the
mayor and city councilors. Unless reviewed by the council, the
decision is final on the eleventh day after it is rendered.
(f) Review of decision. At the request of the city manager or a majority
of the members of the council, made within ten days of the city
manager's decision, the decision, or any part thereof, shall be
reviewed by the council. The council may conduct a public hearing
on the proposed charge 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 charge by
order. The order shall contain written findings and conclusions
based on the standards set forth in subsection 6.411(2), and shall be
mailed to all interested persons. The order is final on the date
rendered.
(2)
Standards. Unless the city manager determines in writing that one or
more of the following factors is irrelevant or inapplicable, the amount or
rate of any charge for wastewater service, stormwater service or regional
wastewater treatment service shall be based on the following:
(a) The amount charged for such service in the past;
(b) For regional wastewater treatment services the recommendation, if
any, of the Metropolitan Wastewater Management Commission, or
any successor agency;
(c) Applicable federal or state regulations or conditions imposed as part
of a federal or state grant or financial assistance agreement;
(d) The amounts charged or proposed to be charged by the city of
Springfield and other providers of stormwater or wastewater services
for comparable services;
(e) The revenue needed to pay for the direct and indirect expected costs
of constructing, operating, maintaining, and replacing local and
regional sewerage facilities based on the adopted budgets of the city
of Eugene and the Metropolitan Wastewater Management
Commission or its successor, the debt obligations of the city or other
entities for construction of the facilities, adopted capital improvement
plans of the council, the expected need for financial reserves and
contingencies, and other sources of revenue;
(f) For an individual stormwater service customer that discharges
stormwater that requires extraordinary expense to the city, special
surcharge rates based on the type, concentration, quantity, quality
and frequency of the discharge.
(g) Other relevant adopted policies of the council;
(h) The terms of any applicable intergovernmental agreement relating to
wastewater or stormwater services or regional wastewater treatment
service; and
Ordinance - Page 2 of 4
ATTACHMENT A
(li) The obtaining of equity between different classes of customers so
that one class of customers does not pay more than its proportionate
share of the expenses of providing sewer service; and
(j) In addition to the forgoing considerations, in determining the
amounts or rates to be charged for stormwater and wastewater
service, the city manager shall consider the value of the use
and occupancy of the city’s right-of-way by the city stormwater
system and city wastewater system.
(3) If the city manager determines that one or more of the factors listed in
subsection (2) of this section is irrelevant or inapplicable, the manager
shall notify the mayor and council of that determination.
(4) Limitations. The following limitations apply to charges set by the city
manager for wastewater service, stormwater service and regional
wastewater treatment service:
(a) Charges shall be imposed on a monthly basis. Each customer
shall be notified, in at least one annual billing for the service, of
the rate or the amount of the charge and the allocation of
revenue expected from application of the charge.
(b) The charges for regional wastewater treatment service shall
distinguish between the following classes of customers: single
dwelling units, duplexes, and general wastewater customer use
based on loading strengths.
(c) The charges for local wastewater service may, but need not,
distinguish between classes of customers.
(d) The monthly charge for wastewater service and regional
wastewater treatment service shall be a fixed fee together with
a fee based on volume of use of water (partial flow-based rate).
(e) When the wastewater service rate is based on volume, the
volume shall be calculated by actual measurement of the
wastewater discharged (the costs of measurement to be borne
by the customer) or by an estimate based on the wastewater
customer's average monthly water consumption during the
previous December through April period, or, if no water
consumption figures are available for at least three full months
during this period, the consumption of other similar customers
(for residential customers) or actual monthly water consumption
(for non-residential customers).
(f) The charges for stormwater service shall distinguish between the
following classes of customers: small residential, medium residential
and general stormwater customer, based upon the actual number of
equivalent service units for each developed property or an average
number of equivalent service units for a specific class. Special
surcharges for stormwater service customers who receive
extraordinary service shall be in addition to the standard charges for
the customer's classification.
6.421 Charges - Collection and Payment
. The Eugene Water & Electric Board is
directed to collect the charges provided for in sections 6.401 through 6.610.
Ordinance - Page 3 of 4
ATTACHMENT A
Charges levied pursuant to sections 6.401 through 6.610 shall be determined
by the city manager or his/her designee and certified to the Eugene Water &
Electric Board and any other water utility obligated to collect such charges. [All
r]Revenue collected by the Eugene Water & Electric Board shall be paid
monthly to the city and shall be deposited in the appropriate fund for
wastewater operations or for stormwater operations for use in providing sewer
service including debt service and such other services as the council may
direct, except that revenue collected based on the criteria contained in
subsection (2)(j) of section 6.411 of this code shall be deposited in the
appropriate fund for road operations to be used for the reconstruction,
repair, maintenance, operation, and preservation of city-owned roads and
streets within the city, roads and streets which the city is contractually or
legally obligated to operate and maintain, or roads and streets for which
the city has accepted responsibility under intergovernmental agreement.
Revenue collected based on the criteria contained in subsection (2)(j) of
section 6.411 of this code may not be used for capacity-enhancing street
improvements.
Section 2.
The City Recorder, at the request of, or with the consent of the City
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 _____________, 2009 ____ day of ___________2009.
____________________________ _____________________________
City Recorder Mayor
00219907.DOC
Ordinance - Page 4 of 4
ATTACHMENT B
RESOLUTION NO. _____
A RESOLUTION SUPPORTING IMPOSITION OF A
WASTEWATER AND STORMWATER RIGHT-OF-WAY USE FEE
AND USE OF REVENUES FOR STREET OPERATIONS AND
MAINTENANCE.
The City Council of the City of Eugene finds that:
A.
Street operations and maintenance activities are critical street and
traffic infrastructure services which are paid for through the City’s Road
Operations Fund.
B.
The Road Operations Fund has experienced a 15% decrease in
revenue over the past five years, while in that same period expenditures
increased by 23%.
C.
Despite major organizational restructuring, which resulted in over
$1 million in budget savings in FY04 and FY05, due to ongoing operating deficits,
the Road Operations Fund is expected to become insolvent sometime in late
2009.
D.
Without new revenue dedicated to street operations and
maintenance, by next year the Road Operations Fund will be unable to support
approximately one-third of the services currently provided by the City.
E.
The public right-of-way is a valuable resource.
F.
Historically, the City has not assessed a fee for use of the public
right-of-way by the city stormwater and city wastewater systems.
G.
The City charges other local utility providers similar fees for use of
the public right-of-way.
NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE,
a Municipal Corporation of the State of Oregon, as follows:
Section 1.
Based on the above findings, the City Council supports
imposition of an 8% wastewater and stormwater right-of-way use fee or
surcharge, with the intention that the revenues generated from the use fee or
surcharge be used for the repair, maintenance, operation and preservation of
Resolution - Page 1 of 2
ATTACHMENT B
city-owned roads and streets. The city manager shall adopt the use fee or
surcharge by using the process contained in Eugene Code section 6.411.
Section 2.
This Resolution is effective immediately upon its passage by
the City Council.
The foregoing Resolution adopted the ___ day of ___________, 2009.
_______________________________
City Recorder
00219905.DOC
Resolution - Page 2 of 2
ATTACHMENT C
ORDINANCE NO. _______
AN ORDINANCE CONCERNING SOLID WASTE ADMINISTRATIVE
POWERS AND AMENDING SECTION 3.250 OF THE EUGENE CODE,
1971.
THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS:
Section 1.
Section 3.250 of the Eugene Code, 1971, is amended to provide as
follows:
3.250 Solid Waste, Yard Debris and Recycling - Administrative Powers of the
City Manager
.
(1)
The rules adopted by the city manager under section 2.019 of this code
concerning solid waste and recycling licenses may address, but are not
limited to:
(a) Minimum identification, maintenance and sanitation standards for
collectors' vehicles;
(b) Minimum standards relating to the qualifications, training and
identification of collectors’ employees;
(c) Minimum standards for all information to be included in collectors'
records;
(d) Minimum standards and procedures for collection service to
assure quality of service to customers;
(e) The establishment of rates for service and the procedure to be
used in recommending and revising solid waste and recycling
service rates;
(f) The establishment of application requirements to be met before a
license may be issued or transferred;
(g) The establishment of application, license and license transfer fees
that allow the city, at a minimum, to recover regulatory and
enforcement costs associated with solid waste and/or recycling
collection;
(h) The establishment of fees for use of the public right-of-way
by licensees and to offset the damage to the street system
caused by collectors’ vehicles;
(hi) The establishment of procedures, policies and operating practices
which are required for implementation of this code; and
(ij) The establishment of customer responsibilities that include, but
are not limited to, payment responsibility; location of receptacles;
time and manner of placement and retrieval of solid waste,
recyclable materials and yard debris receptacles; the manner in
which receptacles are loaded, and acceptable and unacceptable
Ordinance - Page 1 of 2
ATTACHMENT C
materials for specific receptacles, and the maximum weights for
each.
(2) Revenues from fees authorized pursuant to subsection (1)(h) of this
section shall be deposited in the appropriate fund for road
operations, to be used for the reconstruction, repair, maintenance,
operation, and preservation of city-owned roads and streets within
the city, roads and streets which the city is contractually or legally
obligated to operate and maintain, or roads and streets for which
the city has accepted responsibility under intergovernmental
agreement. Revenues from fees authorized pursuant to subsection
(1)(h) of this section shall not be used for capacity-enhancing street
improvements.
(2)
3 The city manager may adopt a solid waste systems benefit fee under
section 2.020 of this code, or may enter into an intergovernmental
agreement with Lane County to authorize Lane County to impose and
collect within the city a solid waste systems benefit fee in the same
amount that applies outside the city, to fund the cost of waste
management programs and community services, including but not
limited to recycling education, recycling drop-off facilities, special waste
programs and facilities, solid waste transfer sites and technical
assistance services for businesses.
Section 2.
The City Recorder, at the request of, or with the consent of the City
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 _____________, 2009 ____ day of ___________2009.
____________________________ _____________________________
City Recorder Mayor
00219897.DOC;1
Ordinance - Page 2 of 2
ATTACHMENT D
RESOLUTION NO. _____
A RESOLUTION SUPPORTING IMPOSITION OF NEW
TRANSPORTATION SURCHARGE ON SOLID WASTE HAULER
FEES AND USE OF REVENUES FOR STREET OPERATIONS
AND MAINTENANCE.
The City Council of the City of Eugene finds that:
A.
Street operations and maintenance activities are critical
infrastructure services which are paid for through the City’s Road Operations
Fund.
B.
The Road Operations Fund has experienced a 15% decrease in
revenue over the past five years, while in that same period expenditures have
increased by 23%.
C.
Despite major organizational restructuring, which resulted in over
$1 million in budget savings in FY04 and FY05, due to ongoing operating deficits,
the Road Operations Fund is expected to become insolvent in sometime in late
2009.
D.
Without new revenue dedicated to street operations and
maintenance, by next year the Road Operations Fund will be unable to support
approximately one-third of the services currently provided by the City.
E.
Solid waste haulers use the public right-of-way, including the City’s
street system, to deliver their services.
F.
Solid waste vehicles create a disproportionate impact on the City
street system because they operate on the majority of city streets every week
and run largely on residential streets which do not hold up as well under heavy
vehicle use; therefore, a reasonable nexus exists between the proposed
transportation surcharge and the category of street users upon which the
surcharge will be assessed.
NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE,
a Municipal Corporation of the State of Oregon, as follows:
Section 1.
Based on the above findings, the City Council supports
imposition of a new transportation surcharge on solid waste hauler license fees
with the intention that the revenues generated from the surcharge be used for the
Resolution - Page 1 of 2
ATTACHMENT D
repair, maintenance, operation and preservation of roads and streets owned or
maintained by the city. The city manager shall adopt the surcharge by
administrative order.
Section 2.
This Resolution is effective immediately upon its passage by
the City Council.
The foregoing Resolution adopted the ___ day of ___________, 2009.
_______________________________
City Recorder
00219900.DOC;1
Resolution - Page 2 of 2