INFORMATIONAL MEETING  

 

TAPE 181, 182, A

 

HOUSE REVENUE COMMITTEE

JUNE 5, 2003   8:30 AM   STATE CAPITOL BUILDING

 

Members Present:                        Representative Lane Shetterly, Chair

                                                Representative Phil Barnhart

                                                Representative Vicki Berger

                                                Representative Pat Farr

                                                Representative Mark Hass

                                                Representative Elaine Hopson

                                                Representative Max Williams                                               

 

Members Excused:                      Representative Joanne Verger, Vice Chair

                                                Representative Wayne Scott, Vice Chair

 

Other Legislative Members Present:

                                                Representative Terry Beyer, Vice Chair

                                                Representative John Mabrey, Vice Chair

                                                Representative Jackie Dingfelder

                                                Representative George Gilman

                                                Representative Mitch Greenlick

                                                Representative Cliff Zauner

 

Witnesses Present:                        Tom Potiowsky, Office of Economic Analysis

                                                John Merriss, Oregon Department of Transportation, (ODOT)

 

Staff Present:                            Paul Warner, Legislative Revenue Officer

                                                Richard Yates, Legislative Revenue Office

                                                Kathy Tooley, Committee Assistant

 

 

TAPE 181, SIDE A

 

004

Chair Shetterly

Calls meeting to order at 9:40 a.m.

 

010

Richard Yates

Described Highway Cost Allocation Study, (Exhibit 1), as completed by ODOT, overseen by Tom Potiowsky and the Office of Economic Analysis.

 

033

Tom Potiowsky

Provided background on operational management and composition of the study review team with involvement by the stakeholders.  Described the role of Department of Administrative Service was to keep information flow open and accessible to allow competing viewpoints to be expressed.

 

070

John Merriss

Provided slide presentation of “2003 Oregon Highway Cost Allocation Study”, (Page 1, Slide 1, Exhibit 2).

 

086

Merriss

Provided description, “Brief History of Oregon Road User Taxes, (Page 1, Slide 2, Exhibit 2).

 

118

Merriss

Provided description, “Current Oregon Road User Taxes”, (Page 1, Slide 3, Exhibit 2).

 

138

Merriss

Provided description, “What is Cost Responsibility”, (Page 2, Slide 4, Exhibit 2).

 

145

Merriss

Provided description “Oregon Highway Cost Allocation Studies”, (Page 2, Slide 5, Exhibit 2).

 

163

Merriss

Provided description, “Oregon Highway Cost Allocations Studies”, (Page 1, Slide 6, Exhibit 2).

 

171

Merriss

Provided description “Major Data Elements of a Highway Cost Allocation Study”, (Page 3, Slide 7, Exhibit 2)

 

178

Merriss

Provided description “Traffic Data”, (Page 3, Slide 8, Exhibit 2)

 

210

Merriss

Provided description “Traffic Data”, (Page 3, Slide 9, Exhibit 2).

 

260

Merriss

Provided description, “Expenditure Program Data”, (Page 4, Slide 10, Exhibit 2).

 

301

Merriss

Provided description, “Allocation of Expenditures”, (Page 4, Slide 11, Exhibit 2).

 

364

Merriss

Provided description, “Revenue Data”, (Page 4, Slide 12, Exhibit 2).  Referred to page in (Exhibit 2).

 

410

Merriss

Provided description, “Basic Approach of Study”, (Page 5, Slide 13, Exhibit 2).

 

449

Merriss

Provided description, “2003 Study Process”, (Page 5, Slide 14, Exhibit 2).

 

481

Merriss

Provided description, “Major Changes from 2001 Study”, (Page 5, Slide 15, Exhibit 2).

 

 

TAPE 182, SIDE A

 

045

Merriss

Provided description, “Major Changes from 2001 Study”, (Page 6, Slide 16, Exhibit 2).

 

110

Merriss

Provided description, “Major Findings of 2003 Study”, (Page 6, Slide 17, Exhibit 2). 

 

120

Merriss

Provided description, “Major Findings of 2003 Study”, (Page 6, Slide 18, Exhibit 2). Detailed in Exhibit 6-1, Page 51 of the study, (Exhibit 1).

 

143

Rep. Greenlick

Regarding the exhibit on Page 51, the very heavy vehicles seem to significantly underpay; was that a concern among the trucking industry?

 

154

Merriss

Pointed out the results for heavy vehicles above 105,500 pounds are misleading. Due to construction of computer model it is not possible to attribute registration fee revenues to those vehicles.

 

169

Rep. Gilman

The heaviest vehicles are only paying 76% of what they should be paying, is that correct, 104,000 pounds?

 

175

Merriss

That is correct.

 

176

Rep. Gilman

On the bridge study by the City of Eugene, there is a lot of cracking to bridges built in 60’s, do they allocate cause to overweight vehicles?

 

181

Merriss

Answered affirmatively.  Consultants looked at design for three different types of new bridges.  Study Review Team (SRT) took results and allocated a higher percent of cost to replace bridges.  Based on heavy trucks have accelerated need for bridge replacements.  Don’t believe heavy trucks are totally responsible for bridge replacement situation; there are many factors.

 

202

Yates

As member of SRT, I don’t buy that argument (Merriss), But agreed with argument once you replace a bridge, the life is reduced by heavy vehicle traffic on the bridge and therefore has a higher responsibility for the cost of replacing a bridge because the tail-end which is available to automobiles if only light vehicles were allowed on the bridge.

 

210

Merriss

That is perhaps a better way of looking at it.

 

202

Rep. Mabry

Trucks in 72-74000 pound range pay 210% of allocated costs; Trucks in 90-92,000 pound paid 61%. Seems like that would create a conflict in the trucking industry.  Is it a matter or needing to adjust registration fees or is it the system is the way it is and live with it?

 

230

Merriss

Bob Russell, of the Trucking Association, might be better to address the question. There will always be imbalances within the individual 2000 pound truck weight classes. Up to the Legislature to implement the detailed results or on a more aggregated level. There aren’t a lot of miles in either one of those two weight classes.  That may be part of reason for ratio swings.

 

247

Chair Shetterly

Constitutionally, our charge is to maintain the balance between the broad categories of light and heavy, not constitutionally charged to maintain equity within the categories.

 

252

Merriss

Affirmed.

 

254

Zauner

If steel studs are banned the savings is only $10 million a year.

 

240

Merriss

Allocated expenditures to repair studded tire damage, not actual cost of damage.

 

267

Zauner

Could you guess what damage is done by steel studs?

 

268

Merriss

There have been numerous studies trying to determine that, range is from $15 million annually to as high a 40 million, difficult to determine.

 

278

Chair Shetterly

Don’t measure cost of unrepaired portion of damage caused by studded tires.

 

278

Merriss

Provided description of 3 equally valid possible methods for getting back in balance to the cost responsibility results, “Major Findings of 2003 Study”, (Page 7, Slide 19, Exhibit 2).

 

323

Yates

In terms of bill just passed out of Transportation Committee, the third approach is conceptually the approach used.

 

342

Merriss

Provided description, “Concluding Thoughts on Cost Responsibility”, (Page 7, Slide 20, Exhibit 2).

 

 

 

352

Chair Shetterly

Meeting adjourned at 10:30 a.m.

 

 

Tape Log Submitted by,

 

 

 

Kathy Tooley, Committee Assistant

 

Exhibit Summary:

1.       Potiowsky, Yates, Merriss, “Volume 1:  Final Report, 2003 Oregon Highway Cost Allocation Study”, prepared by ODOT and ECONorthwest, 65 pages

2.       Merriss, “Presentation on 2003 Oregon Highway Cost Allocation Study”, 7 pages