Lake Oswego considers road fee options

By Rebecca Randall

The Lake Oswego Review, Feb 4, 2010

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The city of Lake Oswego’s plan for a street maintenance fee increase had some business leaders cringing.

City staff had initially proposed doubling the fee to improve deteriorating roads. However, after a meeting with the Lake Oswego Chamber of Commerce Government Affairs Committee in January, city staff plans to take more time to develop more palatable options, said Christine Kirk, public affairs manager for the city.

Street maintenance fees, which fund the Pavement Preservation Program, have generated about $1.2 million each year since they were implemented in 2004. Last year, the council voted to adjust the street maintenance fee based on an index — the Engineering News and Record cost index — which was approximately 6.7 percent. It was the only time the city raised the fee since its implementation in 2004.

According to a pavement condition index, in 2004, about 73 percent of the city’s streets were in good condition. In 2009, only about 65 percent of the city’s roadways were in good condition. As costs of maintenance have risen over the years, the fee has not kept up. ODOT estimates that transportation construction costs have increased such that buying power is now only about 60 percent of what it was in 2004.

Every three years, the city takes inventory of the condition of the roads and rates them on a scale index of 0-100. Currently, the city considers any road with an index of 70 or higher to be a “good” road. About 65 percent of the city’s roads are rated at this level. The current system-wide average is 68, but the city is gearing up for its latest inventory and the rating will likely change.

While the need is apparent, most businesspeople emphasized a need for the government to tighten its belts like everyone else.

Sue Ann Beardon, a Realtor, suggested tapping into city reserves.

But Assistant City Manager David Donaldson supplemented that by saying that the city needs to also be mindful of any unintended consequences in tapping the reserves due to the relationship between reserves and bond rates.

“At the same time, you created reserves for hard times when you need them,” countered chamber CEO Jerry Wheeler.

Janet Nagle, a youth faculty for the Oregon State University Extension Service, suggested that the city look at implementing some conservation policies, such as a restriction on the use of studded tires. She emphasized the need for the city to consider conservation as a way to maintain a long life for the roads.

The original idea was to double the current fee to raise $2.4 million for the Pavement Preservation Program. The current fee for a single-family residential is $4 per month, however businesses and other organizations pay based on vehicle trips made at their locations. A typical fee for a 10,000 square-foot medical-dental practice is currently $55.10. A 5,000 square-foot 24-hour supermarket pays $102.90 per month.

Kirk is concerned that some business owners may not even realize the impact of the fee.

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