HOUSE COMMITTEE ON TRANSPORTATION

 

 

May 28, 2003 Hearing Room A

8:30 AM Tapes  109 - 113

 

MEMBERS PRESENT:            Rep. Alan Brown, Chair

Rep. Elizabeth Beyer, Vice-Chair

Rep. John Mabrey Vice-Chair

Rep. Jackie Dingfelder

Rep. George Gilman

Rep. Mitch Greenlick

Rep. Cliff Zauner

 

VISITING MEMBERS:            Rep. Lane Shetterly

                                                Rep. Wayne Scott

                                                Rep. Joanne Verger

                                                Rep. Phil Barnhart

                                                Rep. Vicki Berger

                                                Rep. Pat Farr

                                                Rep. Mark Hass

                                                Rep. Elaine M. Hopson          

 

STAFF PRESENT:                  Janet Adkins, Administrator

Ryan Sherlock, Assistant

 

 

MEASURE/ISSUES HEARD:            HB 2041 – Public Hearing

                                                HB 2367 – Public Hearing

 

 

These minutes are in compliance with Senate and House Rules.  Only text enclosed in quotation marks reports a speaker’s exact words.  For complete contents, please refer to the tapes.

 

TAPE/#

Speaker

Comments

Tape 109, A

003

Chair Brown

Calls meeting to order at 8:43 a.m., and welcomes the House Committee on Revenue to the meeting. Opens a public hearing on HB 2041 and HB 2367.

HB 2041 & HB 2367 – PUBLIC HEARING

005

Pat Egan

Governor’s Office, Transportation Policy Advisor. Offers written testimony (EXHIBIT A) in support of HB 2041-6 (EXHIBIT B) and HB 2367-2 (EXHIBIT C). Offers the Governor’s endorsement of the three House Bills (including HB 2388 which is not subject to the current hearing) which combine to make the “Transportation Package.” Three Basic Elements:

  1. Bridge Repair and Replacement
  2. Local Funds
  3. Invest in Critical Transportation Projects.

100

Egan

Why Now?:

  1. Attractive Bond Rates
  2. Federal Transportation Finance
  3. Generation of General Fund

130

Egan

What’s Next?

  1. Speedy Project Turnaround
  2. Maximize Opportunities for Oregon Labor and Business
  3. Develop Transportation Construction Expertise

165

Rep. Greenlick

Points out that the Transportation Package seems to focus on roads and bridges. Asks why such other modes of transportation such as commuter rail are not included in the package.

175

Egan

Comments on the scope of the package currently before the Committee. Points out that the funding goes through the Highway fund which restricts the use of those funds. Points out that a rail package could be introduced.

200

Rep. Greenlick

Indicates that he understands that the scope of the two bills which make up the package limits its scope, but points out that other bills could be added which would expand the scope to include light rail.

210

Egan

Reiterates that he would be willing to work on a rail funding legislation package.

220

Rep. Pat Farr

House District 14. Asks whether there would be a shortage of aggregate for use in bridge repair.

230

Egan

Comments on the construction material needs, and the low level of aggregate in the state.

245

Rep. Mark Hass

House District 27. Clarifies that the -6 amendments effectively replace the original wording of the bill. Asks which section deals with registration fees on hybrid vehicles.

255

Egan

Points out that hybrid vehicles would have the same registration fees as non-hybrids.

260

Rep. Zauner

Asks Mr. Egan why bicycle registration was not included in the fee increases.

265

Egan

Indicates that he does not know, but would be willing to address the issue with Rep. Zauner.

270

Rep. Dingfelder

Asks for further explanation of the “truck engine tax credit” section of the bill.

275

Egan

Comments on the “Truck engine tax credit” section of the bill. Points out that to receive the credit, the engine needs to be manufactured in Oregon, and comments on the lower emissions of these engines.

305

Rep. Dingfelder

Asks where the tax credit would come from.

310

Egan

Explains that the tax credit would come from the General Fund, and further comments on the funding issue.

320

Chair Brown

Thanks Mr. Egan and the Governor’s office for his work on the bill. Asks that Sen. Metsger, Sen. Star, and Rep. Brown address the committee.

340

Rep. Mabrey

Welcomes the witnesses to the hearing.

345

Rep. Brown

House District 10. Thanks the committee for allowing him to testify. Offers testimony in support of the Transportation Funding Package.

TAPE 110, A

005

Senator Rick Metzger

Senate District 26. Offers testimony in support of HB 2041-6 and HB 2367-2. Points out that the Transportation Package will be one of the most positive pieces of legislation to leave this legislative session.

055

Senator Bruce Starr

Senate District 15. Offers testimony in support of HB 2041 and HB 2367. Comments on the fees being raised in the package and expresses the need for these fee increases, with reference to revenue outline (EXHIBIT D). Outlines the financing and distribution decisions in the package. Presents the Committees with a map: Secured Critical Freight Routes (EXHIBIT E) which outlines those routes which will be repaired. Addresses Rep. Greenlick’s earlier question regarding the absence of rail financing in the package, explaining that the Highway Fund can only be used on the highway system.

215

Vice-Chair Mabrey

Thanks Senator Starr and Representative Brown for their work on this important issue.

230

Rep. Hass

Thanks Senator Starr and Representative Brown for their work on this important issue. Points out the bonding decisions in the Package and asks whether this is a new policy direction the state wants to go in.

250

Rep. Brown

Comments on the history of using bonding to finance the states road system.

270

Sen. Starr

Points out the low interest rates which make the bonding investments especially attractive coupled with the long term effects of these projects.

315

Rep. Beyer

Thanks the witnesses for their work on the Package. Points out the disappointment for the decrease in size of the package during the last few weeks, and expresses concern for the some of the fee increases and whether they will create the needed funds.

330

Rep. Zauner

Questions why there is no fee for bicycles in the package.

335

Sen. Starr

Points out that such a fee was originally considered in the package, and comments on the reasons for which that fee increase was not further pursued, or in the end package.

370

Rep. Zauner

Further indicates his interest in seeing such a fee.

375

Rep. Barnhart

House District 11. Comments on his districts need for bridge repair. Points out the Oregon Department of Transportation (ODOT)’s historic lack for long term planning, and asks whether there will be thought given to future maintenance.

TAPE 109, B

005

Sen. Starr

Defers to Mr. Bruce Warner, Director of ODOT. Comments on the long term issues regarding the transportation infrastructure of the State.

035

Rep. Berger

Comments on the timing issue inherent in the package. Points out the need for the jobs created, but comments on the need to keep government from growing.

040

Sen. Metzger

Comments on the job creation issue, and points out that there will be special attention given to keeping those jobs going to Oregonians.

070

Sen. Starr

Points out that ODOT will not hire all those positions needed to accomplish the Package, but will hire the minimal staff needed to supervise the private sector contractors which will be used.

085

Rep. Farr

Points out the lack of support in some districts for highway construction. Asks how projects will be prioritized in the package.

100

Sen. Starr

Comments on the prioritization of projects funded by the package.

115

Rep. Farr

Clarifies that some of the projects which will be addressed are those which are already on the State Transportation Improvement Program (STIP) list.

120

Sen. Starr

Acknowledges, and further discusses the prioritization issue.

140

Rep. Greenlick

Refers to Rep. Hass earlier question regarding tax policy. Asks about specific sections in the package which would sequester revenue.

160

Sen. Starr

Comments on the sequestered revenues issue.

195

Sen. Metzger

Comments on the Diesel Engine Tax Credit section of the bill. Points out the need to help support the trucking industry.

360

Sen. Starr

Points out that Oregon would be the only state to have such a credit.

265

Vice-Chair Mabrey

Thanks the witnesses for their time.

275

Chair Brown

Welcomes Mr. Foster and Mr. Warner to the hearing.

285

Rep. Mabrey

Comments on his personal history with Mr. Foster and his brother.

290

Stuart Foster

Oregon Transportation Commission. Explains the absence of Steve Corey. Offers written testimony (EXHIBIT F) in support of HB 2041 and HB 2367, and regarding the implementation of the revenues which will be raised by the package.

TAPE 110, B

005

Bruce Warner

Oregon Department of Transportation, Director. Offers written testimony (EXHIBIT G) in support of HB 2041 and HB 2367. Comments on the issue of keeping the project contracts going to Oregon firms. Points out that the bridge situation is in crisis. Comments on ODOT’s long term planning regarding the bonding issue, bridges, and issue of maintenance and preservation. Points out ODOT’s efficient use of federal funding.

150

Rep. Beyer

Clarifies the federal funding usage.

155

Warner

Further comments on the federal funding use and accounting, with emphasis on not losing any of those funds. Continues with and concludes testimony in support of the Transportation Funding Package.

190

Rep. Verger

Expresses concern for size of the package which may make implementation difficult to accomplish. Offers a specific project example which is stalled, and asks why this project has not been completed.

210

Warner

Indicates that he does not know the specifics of the project in question.

220

Rep. Verger

Acknowledges and points out the process needs to be smoothed out to help these projects be completed efficiently.

235

Rep. Dingfelder

Questions specific wording in the bill which prohibits ODOT from reducing capacity on roadways, and asks about the issue’s origin.

250

Warner

Comments on the origin of the issue in question.

275

Foster

Further comments on the capacity issue.

295

Rep. Dingfelder

Points out that she will discuss the issue with Sen. Starr.

300

Chair Brown

Offers his interpretation of the issue which is concurrent with the explanation’s offered by the witnesses.

315

Rep. Zauner

Asks about possible reduction in ODOT’s staffing.

320

Warner

Comments on the issue of reducing ODOT’s staff, pointing out that there would be other ways in which the department could be economized.

340

Rep. Hopson

Expresses concern for the oversight of those private companies which would be used on these construction projects.

365

Warner

Comments on the oversight issues, and the cooperation which must happen between the department and the private sector.

375

Foster

Comments on the cooperation and oversight issue, pointing out there will be a need for staffing which will make the projects more manageable.

395

Rep. Barnhart

Expresses his appreciation for Mr. Foster’s goal of breaking down the project to make them more manageable for local firms.

TAPE 111, A

015

Charlotte Lehan

City of Wilsonville, Mayor. Offers written testimony (EXHIBIT H) in support of the Transportation Funding Package.

050

Chair Brown

Asks about an industrial site in Wilsonville.

055

Lehan

Points out the need for proper transportation facilities to allow the development of new industrial sites.

070

Laura Pryor

Association of Oregon Counties. Thanks all those that have worked on the Transportation Funding Package. Offers written testimony (EXHIBIT I) in support of the Transportation Funding Package. Outlines the ways in which the cities and counties will use the funding generated by the Package.

170

Jim Torrey

League of Oregon Cities. Offers written testimony (EXHIBIT J) in support of the Transportation Funding Package.

205

Chair Brown

Recesses the meeting until after the House floor session, when the Committee will reconvene at 1:30 p.m. in Hearing Room E.

RECESS

210

Chair Brown

Calls meeting back to order at 1:41 p.m., and opens a public hearing on HB 2041 and HB 2367.

The following exhibit is submitted to the record without public testimony:

 

Staff

Submits project overview document (EXHIBIT K).

HB 2041 & HB 2367 – PUBLIC HEARING

215

Larry Campbell

American Automobile Association. Offers testimony in support of the Transportation Funding Package. Points out the need to amend HB 2367 into HB 2041.

240

Bob Russell

Oregon Trucking Association. Offers testimony in support of the Transportation Funding Package. Thanks all those who worked on the package.

255

Chair Brown

Thanks Mr. Campbell and Mr. Russell for their work on the package.

265

Russell

Indicates the entire trucking community’s support for the package, and thanks ODOT director Bruce Warner for his leadership on the issue.

285

D.E. Bridges

Forest Products Transportation Association. Offers testimony in support of the Transportation Funding Package. Notes several concerns.

340

Al Elkins

Oregon Tow Tucks Association. Offers testimony in support of the Transportation Funding Package.

355

Rep. Greenlick

Asks Mr. Russell to clarify a specific section in the -6 amendments to HB 2041.

370

Russell

Points out the primary intent of the package is to fix the bridge problem, and the secondary intent is to stimulate the economy.

TAPE 112, A

005

Rep. Beyer

Asks whether the bill in any way violates cost responsibility.

010

Russell

Indicates his belief that this would in no way violate the cost responsibility provision of the state constitution.

015

Rep. Beyer

Thanks Mr. Russell for putting that assurance on the record.

020

Rep. Zauner

Asks whether the new engines would allow the trucks to idle less than they do currently.

025

Russell

Outlines the benefits of using the new engines.

040

Dick Yates

Legislative Revenue Office. Offers a revenue outlook for the Transportation Funding Package, with reference to the issued revenue impact statements for HB 2041 (EXHIBIT L) and HB 2367 (EXHIBIT M).

140

Rep. Greenlick

Asks about specific wording in the bill, and how Mr. Yates estimates revenues based on that wording.

145

Yates

Explains the estimation tools which he used to estimate those revenues from the section in question.

155

Rep. Greenlick

Asks what multiplier is used and whether it is the same throughout the state.

160

Yates

Further discusses the multiplier which was used.

170

Chair Brown

Asks whether the difference in cost allocation catches up after one biennium.

175

Yates

Acknowledges, and discusses the cost allocation equalizers.

180

Rep. Beyer

Asks about specific figures in the revenue impact statements.

185

Yates

Offers reasoning for the wording in question.

190

Chair Brown

Asks Mr. Yates to address the revenue impact statement for HB 2367.

195

Yates

Offers an overview of the HB 2367 revenue impact statement.

205

Chair Brown

Thanks Mr. Yates for his work on the Package.

215

Representative Vic Backlund

House District 25. Offers testimony regarding HB 2041-6 amendments, pointing out the importance of transportation issues in his district.

250

Leslie Lewis

Yamhill County, Commissioner. Offers testimony in support of the Transportation Funding Package.

325

Rep. Backlund

Expresses his support for the coming -7 amendments to HB 2041.

330

Chair Brown

Relates his experience regarding the transportation issue mentioned by Ms. Lewis.

335

Lewis

Comments on the link between her district and coastal communities.

350

Rep. Verger

Asks whether there is a gas tax increase in either bill.

355

Chair Brown

Indicates there is no such increase.

365

John Ledger

Association of Oregon Industries. Offers testimony in support of the proposed Transportation Funding Package.

420

Tom Gallagher

Schnitzer Steel Industries. Offers testimony in support of the Transportation Funding Package.

TAPE 111, B

010

Rich Angstrom

Oregon Concrete Aggregate Producers Association. Offers testimony in support the Transportation Funding Package.

060

Chair Brown

Asks whether the industry has enough aggregate to complete all the jobs implied by the Transportation Funding Package.

065

Angstrom

Comments on the aggregate supplies in the state.

080

Rep. Verger

Comments on a situation at the Port of Umpqua.

090

Marshal Coba

American Council of Engineering Companies (ACEC) of Oregon. Introduces and defers to Mr. Moyano and Mr. Harley.

095

Dave Moyano

American Council of Engineering Companies (ACEC) of Oregon. Offers testimony in support of the Transportation Funding Package.

160

Gayle Harley

American Council of Engineering Companies (ACEC) of Oregon. Offers testimony in support of the Transportation Funding Package.

200

Rep. Greenlick

Points out the large need for engineers to complete the proposed projects, and asks if there are enough to fill this need.

205

Moyano

Offers his interpretation of how many engineers would be needed to complete the proposed projects, and indicates there would be enough engineers to fill the need.

220

Rep. Greenlick

Asks Mr. Moyano to address the efficiency of ODOT to completing these projects.

230

Moyano

Indicates that he has a large amount of confidence in ODOT’s efficient use of the money.

340

Rep. Greenlick

Points out his concern for the size of the project.

350

Moyano

Comments on managing the process.

360

Bob Shiprack

Oregon Building and Trades Council. Offers testimony in support of the proposed Transportation Funding Package.

395

Rep. Greenlick

Refers to a recent article written by Mr. Shiprack regarding keeping jobs in Oregon.

400

Shiprack

Comments on the news article he authored.

415

Jeff Carlson

International Association of Bridge, Structural, Ornamental, and Reinforcing Ironworkers, Local 29. Offers testimony in support of the proposed Transportation Funding Package.

440

Tim Nesbitt

Oregon AFL-CIO. Offers testimony in support of the proposed Transportation Funding Package.

460

Ralph Groener

AFSCME. Offers testimony in support of the proposed Transportation Funding Package. Offers an example of the problem being fixed in Clackamas County.

TAPE 112, B

050

Jeanne Staton

Associated General Contractors. Offers written testimony (EXHIBIT N) in support of the proposed Transportation Funding Package.

110

Jessica Harris

Associated General Contractors. Offers testimony in support of the proposed Transportation Funding Package.

120

Rod Park

Metro Council. Offers testimony in support of the proposed Transportation Funding Package. Expresses some concern for certain sections of the bill.

180

Randall Edwards

Oregon State Treasurer. Offers written testimony (EXHIBIT O) regarding HB 2041 as amended. Offers an explanation for the proposed bonding, while expressing concern for designating general funds.

260

Chair Brown

Thanks Mr. Edwards for his explanation of the bonding process.

265

Rep. Greenlick

Points out he agrees with Mr. Edwards. Asks Mr. Edwards to address the effects of sequestering general funds.

285

Edwards

Comments on the bonding process in the context of the states bond rating.

325

Lynn Lundquist

Oregon Business Association. Offers testimony in support of the proposed Transportation Funding Package.

365

John Watt

John Watt & Associates. Indicates that he represents a consortium of Southern Oregon business and government interests. Offers written testimony (EXHIBIT P) in support of the proposed Transportation Funding Package.

400

Doug Riggs

Central Oregon Cities Organization. Offers testimony in support of the proposed Transportation Funding Package.

TAPE 113, A

005

Catherine Ciarlo

Bicycle Transportation Alliance. Offers testimony regarding the proposed Transportation Funding Package, with reference to written testimony (EXHIBIT Q) submitted after the meeting.

050

Jacob Brostoff

1000 Friends of Oregon. Offers written testimony (EXHIBIT R) in support of the proposed -5 amendments (EXHIBIT S) to HB 2041.

135

Chair Brown

Clarifies that Mr. Brostoff opposes the general fund sequester going to senior and disabled transit.

140

Brostoff

Explains that they do not oppose this use of the funds, but do have concerns with the sequestration in the bill.

150

Matt Blevins

Oregon Environmental Council. Offers written testimony (EXHIBIT T) regarding the proposed Transportation Funding Package. Expresses concern for the Diesel Engine Tax Credit, and expresses concern for the section which would limit ODOT’s ability reduce vehicle capacity. Indicates his groups support for the proposed -5 amendments.

200

Susan Schneider

City of Portland. Offers testimony in support of the proposed Transportation Funding Package. Submits to the record a letter (EXHIBIT U) from Jim Francesconi, Portland City Commissioner.

225

Chair Brown

Comments on the lack of opposition to either measure.

235

Rep. Beyer

Asks whether there are wedge dollars in either bill.

245

Bruce Warner

Oregon Department of Transportation, Director. Offers an explanation of wedge dollars, and comments on the use of wedge dollars.

275

Rep. Zauner

Asks about the amount of money owed to ODOT as indicated in testimony from another committee.

285

Warner

Indicates that he does not know what information Rep. Zauner is looking at, but addresses the issue.

290

Chair Brown

Points out that any damage which is done to the infrastructure by an accident is may be included as money owed to ODOT.

295

Warner

Concurs with Chair Brown’s point.

305

Chair Brown

Closes the public hearings on HB 2041 and HB 2367, and adjourns the meeting at 3:38 p.m.

 

 

EXHIBIT SUMMARY

 

A – HB 2041 & HB 2367, written testimony, Pat Egan, 3 pp.

B – HB 2041, -6 amendments, Staff, 43 pp.

C – HB 2367, -2 amendments, Staff, 6 pp.

D – HB 2041 & HB 2367, 2003 Oregon Transportation Investment Act (III), Staff, 1 p.

E – HB 2041, Secured Critical Freight Routes (map), Senator Starr, 1 p.

F – HB 2041 & HB 2367, written testimony, Stuart Foster, 2 pp.

G – HB 2041 & HB 2367, written testimony, Bruce Warner, 4 pp.

H – HB 2041 & HB 2367, written testimony, Charlotte Lehan, 1 p.

I - HB 2041 & HB 2367, written testimony, Laura Pryor, 12 pp.

J – HB 2041 & HB 2367, written testimony, Jim Torrey, 3 pp.

K – HB 2041 & HB 2367, project overview document, Staff, 1 p.

L – HB 2041, revenue impact statement, Dick Yates, 2 pp.

M – HB 2367, revenue impact statement, Dick Yates, 1 p.

N – HB 2041 & HB 2367, written testimony, Jeanne Staton, 2 pp.

0 – HB 2041, written testimony, Randall Edwards, 2 pp.

P – HB 2041 & HB 2367, written testimony, John Watt, 1 p.

Q – HB 2041, submitted written testimony from Catherine Ciarlo, Staff, 2 pp.

R – HB 2041, written testimony, Jacob Brostoff, 2 pp.

S – HB 2041, -5 amendments, Jacob Brostoff, 2 pp.

T – HB 2041 & HB 2367, written testimony, Matt Blevins, 2 pp.

U – HB 2041 & HB 2367, submitted written testimony from Jim Francesconi, Susan Schneider, 1 p.