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Home My WebLink About1985-1008 ADJOURNEDMinutes of the Adjourned Meeting Ashland City Council October 8, 1985 ROLL CALL: STREET PROGRAM: The meeting was called to order at 7:30 p.m. on the above date in the Council Chambers of the Civic Center by Mayor Medaris. Councilors present were Elerath, Reid, Laws and Smith. Acklin arrived at 7:50 p.m.; Bennett was absent. City Administrator Almquist said that two study sessions have been held on a comprehensive program for street main- tenance/improvements and that at the goal setting session, this was listed as goal #2. Public Works Director Alsing reviewed how the City got where they are today and where they would like to be. He noted that the problem has been compounded because of in- adequate standards for street construction in the early years that have resulted in streets that are not strong enough to withstand current traffic loads, and the City now finds itself in the position of needing additional fund- ing to properly maintain its streets. He said the most cost effective way to maintain streets is to utilize a preventative maintenance program in addition to a resurfacing program. Alsing said this program will result in lower maintenance costs in the long run, but will require higher funding in the next few years. He reviewed one option for raising the additional funds, which is known as a street utility. He said a street utility's function is to raise revenues for street maintenance in an equitable manner, and charges should be made through a formula which addresses traffic generation and use. Alsing reviewed the formula, noting there would be three broad categories single-family residence, multi-family residence and commer- cial uses. He said this type of formula method is equita- ble and the charge could be included on the City utility billing. A]mqutst said since the adoption of the 85/86 budget, sev- eral developments have occurred which will have a direct influence on the newly created street fund. He noted apparent lack of support for the 5% in-lieu payment by the Water/Sewer Utility, and the 5% Utility User Tax on natural gas, which was approved in concept by the Budget Committee. Additionally, new revenues are being made available through a staged increase in gasoline tax, which will partially offset the need for new revenues for the proposed preventa- tive street maintenance program. Almquist reported that Congress has new acted to definitely terminate the Revenue Sharing program on September 30, 1986. A]mquist reviewed Ashland City Council Minutes October 8, 1985 Page 2 that the total requirements would be $220,000, with the resources being $123,200 (86/87) $134,900 (87/88). Therefore, the shortfall in resources would be $96,800 in 86/87 and $85,100 in 87/88. He said it is recommended that whatever revenue source is selected, it be geared to raise between $85,000-$95,000. Almquist reviewed optional sources of revenue which have been discussed, including a local gasoline tax, street utility user fee, serial levy, 5% utility taxes on water/ gas and Revenue Sharing. Almquist said there is an urgent need for a continuing source of revenue to maintain the major investment we have in our street system. Smith questioned if S.O.S.C. would be included if the street utility concept was adopted, and Almquist said could not be imposed on a State facility. it E]erath said streets have been placed in a lower priority during the budget process and feels property tax is an equitable way if people want the program. Reid said she supports the 1~ per gallon local gasoline tax option because it would share the responsibility and burden of maintaining the streets with tourists. She said gasoline is directly related to streets and by educating the people of Ashland, they would see the relationship and let them make the decision whether to support a 19 gasoline tax. Bob Guthmiller, 1765 Siskiyou Blvd., owner of Guthmiller Exxon, spoke opposing the ]~ gasoline tax. He said there was a 2~ per gallon increase in gasoline in January that he absorbed due to the competition. He noted that tourists are now coming in groups or by buses, and that stations are having a hard time staying in business. He said their money was not made from gasoline, but from accessories sold. Rex Bounds, 2366 Highway 66, owner of Bounds 66 Exxon Ser- ViCe, said he also opposed the 1~ gasoline tax proposa]. Ite said competition between Ash]and and Medford stations is great, and people will gas up in Medford if there is a difference. tie said vehicles are taking less gas now and it is harder to survive in the service station business today. He said when this tax was imposed four years ago, it was referred to the people and they are ready to refer if again if necessary. Ashland City Council Minutes October 8, 1985 Page 3 L.O.C.T. VOT I NG DELEGATE: PARK ESTATE SUBDIVISION: Acklin asked for comments on some of the other options proposed. She said she was interested in the street util- ity user fee because it is street related and ties to street use and hotel parking. Acklin said she was not supportive or a serial levy. Smith said her objection to the street utility users tax is that a prime generator of traffic, S.O.S.C., would not have to pay since it is a State agency. She said one primary responsible for street cutting is the gas company and it would seem an equitable contribution to have a water/gas utility tax. Smith said she opposes a serial levy since it is not a long term solution. Laws said the natural gas tax would be brunt for people heating their homes with gas and tax should be equitable to all people in the City. He said the problem with a serial levy is that taxes go up but people can't identify what it's for. A utility tax, included on the City utility bill, would be something people could see and would be more acceptable. Reid suggested the Council consider one/two options for public to consider and then schedule a public hearing. Laws said the study sessions have been held and Council should make a proposal tonight and set a public hearing on that proposal. He said if a street utility use fee is pro- posed, that churches and non-profit organizations should be exempt. Smith disagreed, saying they also contribute to City street usage. Almquist agreed to do some research on church usage. Smith moved to direct staff to prepare necessary order to establish a street utility user fee, giving Council time to review and set a public hearing; Laws seconded. On voice vote, Elerath, Acklin, Laws and Smith AYES; Reid NAY. Almquist said that in the past, the Mayor has been the voting delegate and an alternate should also be selected. It was agreed to ask Councilor Bennett to act as alternate. Alsing reviewed his memorandum, informing Council that he has discussed the bank erosion on a section of irrigation ditch in the Park Estate PUD with the project engineer, and he feels the plan outlined to correct the erosion is sufficient. Also, Dr. Aubrey Hill, who brought the matter to Council by letter, will be notified of action taken. Ashland City Council Minutes October 8, 1985 Page 4 ADJOURNMENT: Reid voiced concern over the steepness in the area and possible trouble with planting. Alsing agreed it was approaching a 20% slope, but said there are other streets in the City as steep and doesn't feel there will be a planting problem. There being no other business from Council members, the meeting adjourned at 9:00 p.m. to an executive session. Nan E. Franklin City Recorder NEF/sa