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HomeMy WebLinkAbout12/02/2002 Work Session . . . City of Springfield Work Session Meeting MINUTES OF THE WORK SESSION MEETING OF THE SPRINGFIELD CITY COUNCIL HELD MONDAY, DECEMBER 2, 2002 The city of Springfield council met in work session in the Jesse Maine Room, 225 Fifth Street, Springfield, Oregon, on Monday, December 2, 2002, at 6:00 p.m., with Mayor Leiken presiding. ATTENDANCE Present were Mayor Leiken, Councilors Ballew, Fitch, Hatfield, Lundberg, Ralston and Simmons. Also present were City Manager Michael Kelly, Assistant City Manager Gino Grimaldi, City Attorney Meg . Kieran, Office Assistant Amy Sowa and members of the staff. 1. Street Fund Update on Locally Controlled Revenue Sources. Public Works Director Dan Brown and Technical Services Manager Len Goodwin were present for the staff report on this item. During May of 2000 the gas tax issue went to the public and was defeated. On July 22, 2002, Council directed staff to prepare an ordinance imposing a local tax on the sale of fuel, for .. consideration in the fall. Since that time staff have continued exploration of that local option as well as the option of a Transportation System Maintenance Fee (TSMF). In addition, City officials have met with the Lane County Board of County Commissioners to discuss alternatives that would involve County action. The Commissioners are not willing to pursue a gas tax at this time nor does the 2003 Legislature show promise for assisting cities with street fund issues. The city does receive some gas tax revenue, but the dollar amount received has remained the same for the past 10 years. Our population and streets have grown dramatically since that time and those funds do not cover the cost of maintenance and replacement of our current street system. If nothing is done at this time, the cost to the citizens will become unmanageable in the future. The Council may wish to consider three options in directing staff to develop a local solution to persistent Street Fund financial concerns. These options include: A) raising $1 million annually in local revenue, to preclude immediate insolvency of the Street Fund; B) raising $1.2 million to prevent insolvency and create a reasonable contingency reserve; C) raising $1.6 million to prevent insolvency and increase spending for pavement preservation to the point our streets can last through their design life. Mr. Brown outlined the scenarios highlighted in Attachment D and noted that staff recommends option C because it solves the problem. Mr. Goodwin described the ordinance. He said that staff is seeking direction from Council and if directed will implement it as soon as possible. Corrections to the ordinance will need to be made before it is enacted, but none of the changes will alter the main content of the ordinance. He described how the system development charges would be administered and determined. He discussed exemptions and how it might look for low-income families. It is up to Council to determine whether or not anyone would be . exempt. The fee would be based on the utility bill and processed through SUB. Business numbers are not known at this time, but here are approximately 1400 businesses that would be eligible. He gave examples of the different categories that businesses might fall into. Senior Management Analyst Bob Brew handed out a chart he constructed showing the different fee schedules. . . . Springfield City Council Minutes of Work Session - December 2, 2002 Page 2 Mayor Leiken discussed how difficult it has been to receive assistance from other government agencies. He thanked staff for all of their work. Councilor Ballew asked a question regarding the chart and the figures listed there. She saw a disparity regarding LTD and the School District usage. She asked if we need the County or if we could group together with other cities in Lane County to adopt a gas tax. Mr. Goodwin said it was possible, but several cities have said they do not want a gas tax. Councilor Ballew asked if we could explore this further. Discussion was held regarding the pros and cons of a gas tax and/or the TSMF and which is the more equitable way to go. Councilor Hatfield felt that if a gas tax was implemented it would be referred. Councilors Ralston and Lundberg felt there was more of a correlation between a gas tax and road upkeep. Discussion continued regarding how trips are measured, equitable amounts to charge and who should be charged or exempt. Mr. Goodwin introduced Eric Jones from the City of Eugene. Mr. Jones was available for questions regarding the City of Eugene and what they plan to do to remedy their street fund issues. Mr. Goodwin said that Council has the option to change the schedule and provide a subsidy to a school system. There is flexibility. Councilor Lundb~rg asked Mr. Jones where Eugene is at this point. Mr. Jones said the City of Eugene has an interest in a package of both options, but they will be presented at two different times. Their staff will bring forward the TSMF schedule to their council for consideration next week and hope to have a decision at that time. They may then move forward with the gas tax proposal based on Springfield's decision on a gas tax. Their TSMF fee schedule and split is different than Springfield's because their businesses make up a higher percentage and will be charged a higher fee. Councilor Lundberg asked about the state pre-emption. Mr. Goodwin said there are opponents on both issues and either could be pre-empted. Mayor Leiken and Meg Kieran responded further to her question. Councilor Fitch said she is for looking at both options together. She would like to see the ordinance passed. She prefers option B, excluding low-income families and subsidizing schools. This would mean we need to also go forward with the gas tax. Councilor Ralston brought up the vehicle registration fees in Washington and the possibility of working with the legislature to get something like that in effect in Oregon. Councilor Hatfield feels we need to raise the money with scenario A, schedule B for business. He is still a proponent on a gas tax, but will not bet the streets on the funds. He also noted that a local gas tax does not necessarily mean higher gas prices. Gas prices are set according to volume of gas sold and will remain cheaper in high volume areas such as those within city limits. Councilor Ballew asked that staff check with other cities regarding gas tax. . . . Springfield City Council Minutes of Work Session - December 2, 2002 Page 3 Councilor Fitch would like to bring this forth for a vote next week. It was decided to start the work session Y2 hour earlier on Monday, December 9. The 10 year service plan will be delayed until January. . On December 9 staff will bring back the ordinance with the needed changes. Council will try to reach agreement at that time. Councilor Simmons reminded Council they should not neglect lobbying the issue with legislature. ADJOURNMENT The meeting was adjourned at 7:00 p.m. Min~tes Recorder - Amy Sowa .~~ Kim Krebs City Recorder Lyle Hatfield Council President