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HomeMy WebLinkAboutSSN031709CITY OF CENTRAL POINT City Council Study Session March 17, 2009 MEETING CALLED TO ORDER Mayor Williams called the meeting to order at 6:00 p.m. II. ATTENDEES Mayor: Hank Williams Council Members: Bruce Dingier, Matt Stephenson, Allen Broderick, Carol Fischer, Mike Quilty, and Kay Harrison were present. City Manager Phil Messina; Finance Director Bev Adams; Public Works Director Bob Pierce; Assistant City Administrator Chris Clayton; Interim Community Development Director Matt Samitore; and City Recorder Deanna Casey were also present. III. BUSINESS A. Traffic Analysis and Update on Legislative Gas Tax Assistant City Administrator Chris Clayton presented an article of general overview on the local gas issue. The Governors plan for the 2009 Jobs & Transportation Act. He hopes to avoid local gas taxes by increasing registration fees and the state wide gas tax. This increase would be a 50/30/20 split between State/County/Cities, allocated on population. A local fuel tax would be 100% allocated to the city. Timing is crucial if the city is to pass the proposed ordinance implementing a local fuel tax. Lobbyists representing Oregon's gasoline dealers and distributors have suggested the idea of a $.04 per gallon increase to be distributed to Oregon Cities and Counties (no State Share) but they have not yet produced a breakdown of what each jurisdiction would receive. The state option could include one or more of the following stipulations: ® If an increase in State fuel taxes includes provisions for removal of locally collected and controlled fuel taxes, approval of Central Point's proposed local fuel tax ordinance prior to the end of the current legislative session includes significant financial risk. • If Central Point's proposed fuel tax is passed immediately, the ordinance would most likely eliminate the City's current street utility fee within a three month period. • However, if the State subsequently passes aState-wide fuel increase, including provisions for the elimination of local fuel taxes, Central Point will have abolished the current street utility fee, with the State possibly eliminating the newly enacted local fuel tax. Worst -vase-scenario, Central Point's transportation revenue would be downgraded $500,000 annually from current levels. He presented an option word the Ordinance to automatically recollect the street utility fee if the state approves an increase and reverses any local ordinances. The City should know what the state plans to do regarding their increase. Council Study Session March 17, 2009 Page 2 He presented the Traffic Study on Penninger Road. There are about 40,000 trips per day. This makes Penninger Road an arterial street because of the traffic. The amount of fuel purchased will ensure that the City gets the projected amount of fuel tax needed. Matt Stephenson stated that he spoke with several state representatives and did not feel that they will approve anything more than pass the budget. Mike Quilty stated that we need to make sure we have a local resource of funding for our transportation needs. In order to apply and receive large grants jurisdictions need to have matching funds. The ability to have local funding allows for grants without the strings being attached like the state requires. Council is in favor of the local fuel tax but would like to see it go before the voters. Education would be very important. There was discussion about cutting the Street utility fee in half after a year with the option of reestablishing after a year if needed. There is concern that the citizens will not vote for it if there is not a reduction of the street utility fee. A better option would be a County wide fuel tax or all the local jurisdictions implement a fuel tax that would be similar. Council members have heard that other cities are waiting to see if the Central Point option is approved. If so they would follow suit. The County has shown no interest in a county wide fuel tax. There was discussion regarding research that was done showing that fuel consumption does not drop in the cities that implement a local fuel tax. Local and state organizations would oppose implementation of a local fuel tax but are encouraging the state to increase fees. They would prefer to deal with just the State and not have each jurisdiction implementing different rates. Mayor Williams opened the discussion up to the public. Gary Hall, Medford Mr. Hall talked about fuel optimizers. He disagrees that businesses do not see a reduction within the cities that have local fuel taxes. He explained the cost issues associated with paying so many organizations their fees and taxes. Oil companies would support a state wide fuel tax increase but do not support local taxes. Tami, Central Point resident, Chevron employee Stated that people will pass Central Point and purchase their gas in Medford if the City is $.03 higher. Debbie Meyers, Central Point Resident This will not help the citizens of Central Point; people will just go to Medford to get their fuel. With the economic issues this is not a good option for the City. Mr. Clayton stated that the council could get an Initiative in place for a vote in September. Staff should know more about what the state will be putting forward. Council Study Session March 17, 2009 Page 3 There will be options before that time to stop the initiative or change the plan to adopt an Ordinance and take the chance of a referendum. Conclusion: Council would like to see the item go before the voters in September. Encouraged staff to prepare the documentation for a September ballot. C. TGM Grant Discussion Interim Community Development Director Matt Samitore explained that this grant is for the study of Downtown Pine Street. There are no matching funds required from the City. This would be the same type of study that was done for Hwy 99. There would be a lot of public input in this process. The study would give recommendations for options of Downtown Pine Street. The grant would provide technical studies and will be a good tool to start redesigning downtown. Staff would like to apply for this grant. Conclusion: Council was split on this issue. They feel that we continue to do studies but nothing ever gets completed. D. Development Fee Options Mr. Samitore stated that there is a trend among small cities to wave or discount SDC fees to help encourage local development. The trend has been a 50% reduction in the city SDC's. We would not be able to discount the fees we collect for other agencies. The recommendation is a two year time span. There are options for permanent reductions. He explained capital projects that could still be done if we were to discount some of the fees. Items that would be removed from the Capital Projects list would be: STREETS • Grant Road • Crater Rail Crossing • Freeman Road • East Pine Street improvements/Interchange PARKS • Community Center research • Bear Creek Master Plan • Parks Master Plan Update • Completion of restrooms in parks. WATER • Update of Upton Road Waterline • Reduce Culvert replacements to 50% There was concern about encouraging construction when there are so many empty houses on the market. The community needs affordable housing in the $120,000 to $150,000 range. There are not enough first time and lower market value options in Central Point. Council Study Session March 17, 2009 Page 4 Mayor Williams opened the discussion up to public comment. Mike Duncan -contractor Mr. Duncan stated that he has property available that could be used for homes in the range of $185,000 to $225,000. They would be happy with any economic stimulus the city could provide. Their property is just sitting there waiting for homes to be built. Many builders are looking for ways and opportunity to kick start the economy and put people to work. He would be in favor of any type of discount that could be implemented quickly. There was a discussion about smaller lots for lower priced homes. Conclusion: Council would like staff to return with a resolution for a temporary reduction of SDC fees. IV. ADJOURNMENT The Study Session for March 17, 2009, was adjourned at 7:45 p.m. n