08/18/2003 - Council Gives the Green Light to the St. Maintenance Fee CITY OF TIGARD PRESS RELEASE
13125 SW Hall Blvd. August 18, 2003
Tigard, Oregon 97223
For Immediate Release
Contact: Agustin P. Duenas, P.E.
City Engineer
City of Tigard
503-639-4171, ext. 2470
Council Gives the Green Light to the Street Maintenance Fee
At its meeting on August 12, 2003, City Council directed the preparation of an ordinance to
establish a Street Maintenance Fee and a resolution to establish the rates. The fee will be based
on an approach that links the rates to the City's long-term street maintenance program. It assigns
responsibility for the arterials to the non-residential uses, splits the costs for collectors between
residential and non-residential uses, and assigns responsibility for the local streets to the
residents.
The fee, as originally proposed by the Transportation Financing Strategies Task Force, was based
on trip generation rates for various land use categories. The scope encompassed four maintenance
elements (street maintenance, rights-of-way maintenance, sidewalk maintenance, and street light
and traffic signal maintenance). The Oregon Grocery Association(OGA)proposed an alternative
approach at the June 19 2003 meeting with the Task Force that addressed the street maintenance
element only. A modified version of the OGA proposal was approved by the Task Force at a
meeting on July 21, 2003 and submitted for Council approval at the August 12th meeting.
The key concepts in the approach approved by Council are as follows:
• Addresses the street maintenance element only
• Ties the establishment of the fee to a 5-year maintenance and reconstruction plan
prepared by the City of Tigard
• Uses actual road repair projects
• Sets a target revenue goal of$800,000 annually
• Allocates the costs of the arterial projects to the non-residential uses
• Splits the costs for the collectors on a 50-50 basis with residential and non-residential
uses sharing the costs equally
• Allocates the costs for neighborhood routes and local streets to residential uses
• Uses the minimum parking space requirements based on the Tigard Development Code
for non-residential uses with a 5-space minimum and 200-space maximum. Allocates the
costs for residential uses on a per unit basis for both single family and multifamily units.
This approach takes into account businesses that draw from a larger area than just Tigard.
Page I of 2 FAX TO: ❑TIGARD TIMES ❑ OREGONIAN ❑ REGAL COURIER
C:\WINDOWS\TEMP\COUNCIL GIVES THE GREEN LIGHT TO THE STREET MAINTENANCE FEE.DOC
❑ OTHER:
• Sets the rate for the first three years based on a 5-year average of the projects to be
implemented. Includes a review of the program after three years and re-establishes the
rate at that time based on a 5-year plan that adds three more years to the program.
• Allows for funding dedicated for street maintenance received as a result of HB 2041,
which was passed by both the House and Senate and has been signed into law by the
Governor, to be credited to the program.
• Although the Task Force recommended that the revenue collected be dedicated strictly to
projects with no City overhead, administrative, or engineering costs factored in, in the
interest of sound fiscal policy which requires that each program be self-sustaining,
Council opted to include City overhead, engineering and construction administration
charges as part of the program.
Based on the current 5-year maintenance plan, the estimated monthly cost to the residents is
approximately$2.21 per single family or multifamily dwelling unit. The non-residential uses will
be computed based on the parking spaces for the types of land use as defined in the Development
Code. The ratio based on the current 5-year plan has the residential uses paying for
approximately 58% of the costs and the non-residential uses paying for 42%of the costs.
However, the current 5-year maintenance plan is based on information that is several years old.
The City will need to update that information to remove those projects that are already completed
and bring in additional projects based on updated data and observation. The final rates will be
based on an updated maintenance plan.
The implementation schedule calls for the draft ordinance and resolution to be previewed and
discussed with Cit Council at the workshop session in October 2003. If Council approves the
Y p pp
draft documents, the ordinance and resolution would be submitted for Council consideration in
November 2003. The fee could be implemented as early as January 2004.
Page 2 of 2 FAX TO: ❑TIGARD TIMES ❑ OREGONIAN ❑ REGAL COURIER
C:\WINDOWS\TEMP\COUNCIL GIVES THE GREEN LIGHT TO THE STREET MAINTENANCE FEEMOC
0 OTHER: