HomeMy WebLinkAboutSSM022001CITY OF CENTRAL POINT
City Council Study Session
February 20, 2001
I. MEETING CALLED TO ORDER
Mayor Walton called the meeting to order at 6:00 p.m.
II. ATTENDEES Mayor: Bill Walton
Council Members: David Gilmour, Kay Harrison, Donna
Higginbotham, and Bill Stults were present. Dick Halley arrived at
7:00 after attending the Expo Board Meeting. Rusty McGrath was
not present.
City Administrator Jim Bennett; Public Works Director Bob Pierce;
Finance Director Bill Brugger; Police Chief Mike Sweeny; and
Administrative Secretary Deanna Gregory were also present.
III. BUSINESS
A. Review and Discussion of proposal to adopt a 1 cent per gallon diesel fuel tax.
City Administrator Jim Bennett stated that there are five cities in Oregon that presently have
a motor vehicle fuel tax: Pendleton, Stanfield, The Dalles, Tillamook and Woodburn. The
first of these taxes was adopted in 1986, the latest in 1999. He explained that the
Ordinances from these cities all refer to all fuel, none of them are a Diesel only tax. Staff
is estimating that the revenue generated by this type of tax would be roughly between
$50,000 and $150,000 there is no true way to indicate the amount of revenue at this time.
He explained that the collection of this revenue varies by city. In some cases ODOT collect
and distributes, other cities collect the revenue themselves.
Mr. Bennett explained that copies of the agenda were sent to approximately 55 local
companies.
There was discussion among the Council regarding how this money would be used. They
would like to see improvements to the I-5 interchange,. arterial, and secondary streets. Mr.
Bennett explained that ODOT is responsible for improvements to the interchange but the
City could start a fund to help pay for future improvements.
Mayor Walton asked if there were any comments from the audience:
Howard Misnor, Grange Co-Op
Mr. Misnor stated that the State of Oregon and the Federal Government already have in
place gasoline and diesel taxes. The State and County are responsible for distn"bution of
these funds to the Cities. If these taxes are not sufficient for improvements to City streets
the City should approach the State for more funds, not the businesses. He explained that
the prices for gas and diesel are so high that businesses will go to other cities to get a
better price.
Bonnie Des champ, General Manager for Pilot Center
Ms. Des champ agrees that some type of revenue is needed for the street repair, but does
not agree that it should be a gas or diesel tax. She stated that there are other stations that
the citizens will go to and Central Point will loose that business.
Jim Oldland, Oldland Distributing
Mr. Oldland explained tha# most of the distributing companies are struggling with the prices
of diesel and they will go to the lowest price station. He explained that even a 1 cent tax
would cost his company approximately $25 a day, which will add up over time. He asked
the council if they had thought about the companies that have their own tanks and pumps,
will the tax apply to those as well? He questioned the cost for the city in the administrative
part of collecting and distributing the tax. He explained that this cost should be considered.
Jeff Kendle, Kendle Trucking
Mr. Kendle agreed that the local. trucking companies will go to other stations for one tenth
of a cent difference. In the long run it does add up and if the council approves such a tax
the. local. businesses will lose. customers.
IV.
Scott Redd, Colvin Oil !"
Mr. Redd stated that he is on a task force in Grants Pass to find a way of funding streets.
He agreed that local companies will go elsewhere even if it is a few miles down the road.
He stated that in the long. run with the amount that they, purchase a quarter of a cent will
make a difference. He explained that at this time the stations are not making a huge profit
on the price of gas or diesel and there will be state wide changes in the industries in the
next few years. This is not a good time to introduce a tax of this kind.
There were no more comments from the audience.
Council Member Hamson stated that she agrees that the companies will shop around and
end up going someplace other than Central Point to purchase the product.
There was discussion regarding the distribution of the State taxes.
Conclusion:
The Council thanked the audience for the information and they would let them know if there
are any more meetings regarding this subject.
ADJOURNAAENT
The Study Session for February 20, 2001, was adjourned at 7:05 p.m.