HomeMy WebLinkAboutRoad Maint ResolutionT
S
August 6, 2009
TO: Board of Commissioners
Department of Administrative Services
Dave Kanner, County Administrator
1300 NW Wall St, Suite 200, Bend, OR 97 701-1 960
(541) 388-6570 - Fax (541) 385-3202
www.co.deschutes.or.us
FROM: Dave Kanner, County Administrator
Tom Blust, Road Department Director
RE: Potential rescission of Resolution No. 2006-049
Background
Earlier this year, the Board of Commissioners requested that, following the end of the
legislative session, we hold a discussion of whether to rescind Resolution No. 2006-049,
which we commonly refer to as the moratorium on accepting new roads into the County
maintenance system. This resolution was adopted on July 5, 2006, in response to the
projected loss of the federal timber payments that had been supporting the County's road
maintenance program. The resolution "suspends the establishment of new County roads
until the Forest Safety Net or similar funds have in the judgment of the Board been
adequately restored." The resolution further states, "[T]he County will not accept
petitions for the creation of any new Local Improvement Districts until the Forest Safety
Net or similar funds have in the judgment of the Board been adequately restored."
The 2009 Oregon Legislature approved a six -cent -a -gallon increase in the state's gasoline
tax (to be fully implemented after two consecutive quarters of employment growth or
January 1, 2011, whichever comes first) as well as increases in various motor vehicle
fees. Under the state's motor vehicle revenue-sharing formula, these tax and fee
increases will bring an additional $3 million to Deschutes County in the first year of full
implementation. (That's greater than the amount lost from the cessation of the federal
timber payments program.) There is no move afoot that we're aware of to refer these tax
and fee increases to a popular vote. As such, this presents a predictable new revenue
stream for road maintenance. (Note that we were originally told the new tax would mean
$4 million per year for Deschutes County, but, as explained below, that number appears
to be high.)
Unfortunately, we do not believe the increased state motor vehicle revenue will allow us
to fully fund a preservation program. In our report to you on road maintenance funding
needs last year, we estimated the annual need for preservation and overlay projects at
$4.6 million. With the decline in oil and materials costs, that number is now closer to $4
million. If Forest Highway Program roads are removed from the mix, the need is likely
Enhancing the Lives of Citizens by Delivering Quality Services in a Cost -Effective Manner
about $3.6 million annually. In addition, there are a number of County maintained roads
that will eventually be annexed into the cities of Redmond and Bend and become the
cities' maintenance responsibility. This has not been factored into these calculations.
Attached are some spreadsheets that illustrate the dilemma we face. Although the gas tax
will increase, people are driving less, resulting in less -than -budgeted motor vehicle
revenues in FY '10 and a lower projection for motor vehicle revenues in the outer years.
We had budgeted $8 million in motor vehicle revenue in FY '10, but it now appears that
our actual collection will be closer to $7.8 million. The spreadsheet titled "Five -Year
Resource/Requirement Projections" shows that even with the increased gas tax, the
amount of funding available for preservation and overlay projects will once again begin
declining in FY '13. (Note, too, that this projection assumes that the transfer from Solid
Waste will continue into the future.) Other assumptions that went into this spreadsheet
can be discussed with you at the August 12 work session.
Staff Recommendation
We do not believe a rescission of Resolution 2006-049 can be justified at this time. We
recommend that effective with the full implementation of the new gas tax, the County
resume accepting new roads into the County road maintenance system, but that such
acceptance be limited to arterial and collector roads only. At the same time, we
recommend that we identify County local roads that can be returned to gravel and local
roads that can be removed from the County road system and converted to local access
roads (non -county maintained). This is, we believe, the most effective means of
achieving long-term cost savings in the road maintenance program, with these cost
savings used to increase available funding for the preservation program.
We look forward to further discussion of this recommendation at the August 12 work
session.
Attachments: Resolution No. 2006-049
Five -Year Resource/Requirement Projections
Motor Vehicle Revenue Forecast
Road Department Revenue Projection
Road Revenue per Vehicle
DESCH
TES COUNTY OFFICIAL
UBLANKENSHIP, COUNTY RECORDSCLERKCJ 2006 88
NANCY
COMMISSIONERS' JOURNAL 07/05/2006 03:49:46 PM
IJ,iiiJIJUIIIUIUIHI 111
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BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON
A Resolution Declaring a Suspension on the
Establishment of New County Roads.
RESOLUTION NO. 2006-049
WHEREAS, Deschutes County receives approximately $3.0 million annually under the Secure
Rural Schools and Community Self Determination Act of 2000 ("Forest Safety -Net") for the improvement
and maintenance of County Roads, and
WHEREAS, the Forest Safety -Net funding constitutes over 27% of Deschutes County's annual
dedicated road fund revenue, and
WHEREAS, the Forest Safety -Net legislation sunsets in federal fiscal year 2006, and
WHEREAS, reauthorization of the Forest Safety -Net and receipt of any associated federal
funding is uncertain, and
WHEREAS, without Forest Safety -Net funding, Deschutes County will not have adequate
resources to maintain the existing County Road system, and
WHEREAS, Deschutes County's Transportation System Plan, section 5.2, policy 8.b. states:
Deschutes County shall not add any miles of new road to the system unless the following issues are
satisfied:... b. the county can financially absorb the additional maintenance requirements; now,
therefore,
BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES
COUNTY, OREGON, as follows:
Section 1. That the County hereby suspends the establishment of new County Roads until the
Forest Safety -Net or similar funds have in the judgment of the Board been adequately restored. This
suspension is subject to the exceptions outlined in Sections 2, 3, and 4.
Section 2. That the County will not accept petitions for the creation of any new Local
Improvement Districts until the Forest Safety -Net or similar funds have in the judgment of the Board
been adequately restored. Roads improved to county standards by local improvement districts already
initiated by Board resolution as listed on attached Exhibit "A" will be accepted into the county maintainer'
system.
///
PAGE 1 OF 2- RESOLUTION No. 2006-049
Section 3. That the County will not consider acceptance of any roads created by new
development into the County maintained system until the Forest Safety -Net or similar funds have in the
judgment of the Board been adequately restored. Proposed roads in developments with land use
applications that have been accepted by the County prior to the date of this Resolution as listed on
attached Exhibit "B" will be considered for acceptance into the county maintained system upon
completion of those roads to county standards.
Section 4. That the Board may consider the establishment of roads offered to the county for
acceptance by other governmental entities, either through agreements prior to the date of this
Resolution or through jurisdictional transfers.
Dated this of
2006 BOARD OF COUNTY COMMISSIONERS
OF DESCHUT.F OUNTY , OREGON
Recording Secretary
PAGE 2 OF 2- RESOLUTION No. 2006-049
rf
S R. LUKE, C
BEV
RNO, COMMISSIQNER
AE . iALY, CO)41MISSIONER
Exhibit "A"
List of Initiated LIDs
Year
LID
Length
(miles2
2006
Mail poll
passed
Harper
0.76
Harrington
0.76
Choctaw I
0.54
Choctaw II
0.63
Manzanita
0.94
Total Miles
3.63
LID's yet to
be voted on
Parkway Dr. and
Cornell Dr.
1.78
Skidgel
0.74
Cagle
1.24
Apache
Sunrise Blvd.
1.61
1.59
Whittier and Wolf
2.90
Pumice Butte
0.60
Rancho El Sereno
1.00
Tuscarora
0.40
Total Miles
11.86
Total potential
miles of road
added to system:
15.49
Date
Application
Development
Exhibit "B"
Address
No. of Lots
Status
Miles
5/15/2006
FPA0618
(TP06967)
BADLANDS RANCH
7 -LOT
SUBDIVISION
IN PROGRESS
2,650 Lf.
(.5 miles)
4/11/2006
TP -06-969
ELK HORN LAND
DEVEL
52200
HUNTINGTON
RD, LA PINE
289 -LOT
SUBDIVISION
IN PRQGRESS
15,780 I.f.
(3 miles)
4/14/2006
TP -06-970
LA PINE VILLAGE
103 -LOT
SUBDIVISION
DECISION TO
BE WRITTEN IN
1-2 WEEKS
6,000 I.f.
(1.1 miles)
4/25/2006
TP -06-971
MCLEAN/HARTY
40 -LOT
SUBDIVISION
HRG 7/18/06
4,600 I.f.
(.87 miles)
5/19/2006
TP -06-973
ARROWOOD
DEVEL
19200
CENTURY DR,
BE
CASCADE
HIGHLANDS
PLANNED UNIT
DEVELOPMENT
IN PROGRESS
12,500 I.f.
(2.4 miles)
6/12/2006
TP -06-974
DAVID HURTLEY
69090
HURTLEY
RANCH RD,SI
13 -LOT
SUBDIVISION
NOT ASSIGNED
YET
No road
information to
date
Total Miles: 7.9
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RECOMMENDED FUNDING OPTION
FY 2009-10 FY 2010-11 FY 2011-12' FY 2012-13i FY 2013-14
RESOURCES Bud_et j Projected ` Projected Projected Projected
9
4,871,6651 _ 1,783,316~ 1,489,8.7.3'4 _
1,417,541' 1,281,427
Or
19TH RESERVE BEGINNING BALANCE 0 1,000,000
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BEGINNING CASH _
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INTEREST 50,0001 83,499 104,696 42,526 38,443
'250,0001 500,000, SDC 75,000 100,00011 183,537 750,000
MISC. 169,690 176,478 l 190,878 198,513
1 375,000
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14,941,228 1
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STATE/FED GRANTS (STP & fed. Earmark)
SOLID WASTE FUND TRANSFER
MOTOR VEHICLE REVENUE
FOREST RECEIPTS
LRESOURCE TOTAL
REQUIREMENTS
ROAD MAINTENANCE
PRESERVATION PROJECT TOTAL
CAPITAL OUTLAY
19TH ST. RESERVE
OPERATING CONTINGENCY
(REQUIREMENT TOTAL
DESCHUTES COUNTY ROAD DEPARTMENT
MOTOR VEHICLE REVENUE FORECASTS
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REVENUE PROJECTIONS FY 06-07 FY 13-14
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DESCHUTES COUNTY
ROAD REVENUE
YEAR HIGHWAY FUND FOREST HWY / FOREST REGISTERED REV. / VEHICLE
REVENUE REVENUE TOTAL REVENUE VEHICLES 1992 DOLLARS
1992-93 $ 4,340,000 $ 2,730,000 $ 7,070,000 103,877 68.06
1993-94 $ 4,730,000 $ 2,580,000 $ 7,310,000 108,881 65.18
1994-95 $ 5,030,000 $ 2,580,000 $ 7,610,000 114,126 62.85
1995-96 $ 5,220,000 $ 2,490,000 $ 7,710,000 119,424 59.08
1996-97 $ 5,180,000 $ 2,400,000 $ 7,580,000 121,864 55.26
1997-98 $ 5,190,000 $ 2,310,000 $ 7,500,000 125,736 51.45
1998-99 $ 5,580,000 $ 2,210,000 $ 7,790,000 130,346 50.05
1999-00 $ 6,010,000 $ 2,140,000 $ 8,150,000 137,975 48.03
2000-01 $ 6,376,000 $ 2,056,000 $ 8,432,000 147,014 45.28
2001-02 $ 6,228,000 $ 2,871,000 $ 9,099,000 153,341 45.48
2002-03 $ 6,306,000 $ 2,893,000 $ 9,199,000 160,957 42.53
2003-04 $ 7,085,000 $ 2,928,000 $ 10,013,000 166,010 43.57
2004-05 $ 7,391,000 $ 2,967,000 $ 10,358,000 173,265 41.93
2005-06 $ 7,933,000 $ 3,039,000 $ 10,972,000 179,747 41.57
2006-07 $ 8,163,000 $ 3,069,000 $ 11,232,000 189,726 39.14
2007-08 $ 7,963,000 $ 3,063,000 $ 11,026,000 199,996 35.39
2008-09 $ 7,147,000 $ 2,759,000 $ 9,906,000 203,962 30.27
2009-10 $ 7,760,000 $ 2,482,000 $ 10,242,000 208,041 29.79
2010-11 $ 9,568,000 $ 2,237,000 $ 11,805,000 212,202 32.68
2011-12 $ 10,837,000 $ 1,226,000 $ 12,063,000 216,446 31.78
2012-13 $ 10,945,000 $ 500,000 $ 11,445,000 220,775 28.70
REVENUE / VEHICLE
$70.00
$65.00
$60.00
$55.00
$50.00
$45.00
$40.00
$35.00
$30.00
$25.00
$20.00
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8/3/2009
Note: 92-93 thru 07-08 actual revenue
Assumes 3% annual inflation rate
FISCAL YEAR