HomeMy WebLinkAbout12/02/2002 Work Session
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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.
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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.
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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
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Kim Krebs
City Recorder
Lyle Hatfield
Council President