INFORMATIONAL MEETING--HWY. FUND

PUBLIC HEARING HJR 4

PUBLIC HEARING HJR 5

TAPES 64-65, A-B

002

Chair Butler

Calls meeting to order at 1:03 p.m.

INFORMATIONAL MEETING – HIGHWAY FUND

012

Mazen Malik

Slide Presentation: Highway Fund Overview

035

Malik

Slide: What is the Highway Fund

042

Malik

Slide: Brief History of Oregon Road User Taxes (2 slides)

117

Malik

Slide: Constitutional Dedication

142

Malik

Slide: Oregon Road User Taxation

167

Malik

Slide: Legal Definition of the Highway Fund (2 slides)

231

Malik

Slide: How Should Roads Be Financed

256

Malik

Slide: Principles of Oregon Highway Finance (System)

280

Malik

Slide: Oregon Road User Taxation (Tools)

330

Malik

Slide: Registrations and Titles (Tools) - graph

345

Malik

Slide: Oregon Road User Taxation (Tools)

375

Malik

Slide: Motor Vehicle Fuel Tax Rates - graph

393

Malik

Slide: Fuel Tax Revenue – graph

414

Malik

Slide: Oregon Road User Taxation (Tools)

TAPE 65, SIDE A

017

Malik

Slide: Why a Weight-Mile Tax “Tool” for Heavy Vehicles?

026

Malik

Slide: Weight-Mile Tax Rates – graph

032

Malik

Slide: In Lieu Taxes (Tools). Comments that the flat fee issue will be heard in May in the Oregon Supreme Court.

050

Malik

Slide: Weight-Mile Tax Revenue – graph

055

Chair Butler

Discussion with Malik regarding truck and train usage during the 1980’s.

079

Malik

Slide: Oregon Constitution (Connection). This put the two components together—tools and systems.

091

Malik

Slide: Oregon Constitution. Quoted is Article IX, Section 3A that requires the legislature to “provide for a biennial review” of highway revenue sources and their equity. This requirement was later clarified as stated in the next slide.

092

Malik

Slide: Highway Cost Allocation Study (HCAS) statute language

143

Malik

Slide: Basic Approach of Study

146

Malik

Slide: State Imposed User Fees

153

Malik

Slide: Summary

168

Rep. Berger

Asks what year the voter initiative removed police and other non-highway factors from the highway fund.

174

Malik

Responds the highway fund was established in 1989. The removal of the police was in either 1983 or 1984. Parks were removed in 1988.

183

Rep. Olson

Comments that the state police were taken off the highway fund in 1981.

195

Bruce Warner

Gives update on Oregon Transportation Investment Act (OTIA). Discusses written informational handout (Exhibit 2).

224

Bruce Warner

Gives background information about OTIA I and II. Discusses the future of the OTIA program.

320

Bruce Warner

Discusses the successes of the three phases of the OTIA program.

343

Rep. Komp

Clarifies term “delivery methods” as engineer designs. Asks if ODOT uses Oregon firms or is it outsourced.

352

Bruce Warner

Responds that Oregon firms are being used whenever possible, along with women and minority firms.

360

Doug Tindall

Submits written informational testimony on the implementation of the Oregon Transportation Investment Act (Exhibit 3). Discusses projects in OTIA I and II.

TAPE 64, SIDE B

020

Tindall

Discusses OTIA III planned expenditures (p. 3 of exhibit). Discusses Oregon State University bridge study that caused ODOT to make repairs rather than replacements and saves money.

059

Tindall

Refers to Attachment 3 in the exhibit that shows the stages of OTIA III projects. Refers to Attachment 4 in the exhibit that shows the OTIA III modernization programs.

100

Tindall

Comments about successes: finishing projects ahead of schedule, reorganizing the highway division, and money is being put into the private sector at a record rate

113

Rep. Riley

Asks how is using the private sector doing on public sector projects: is the quality of work equal to state employees, and engineering costs.

120

Tindall

Responds that private contractors have done most construction work for several years. Adds that it is a good public value for the private sector to participate in engineering work. Regarding consultation, there are standards that both the public sector and private sector must meet. “Cheaper” is difficult to answer because there is an Infrastructure regarding the use of in-house public sector employees -–increased number of facilities, transportation costs, etc. Comments that it is difficult to compare consultant fees versus using public sector employees.

148

Bruce Warner

Adds that public vs. private sector costs have just started being tracked and it is too early to have data.

164

Rep. Esquivel

Asks about the extraordinary length of time on getting projects started (uses a southern Oregon highway project as an example).

182

Bruce Warner

Responds that a bridge replacement is fairly straightforward; modernization projects such as those in southern Oregon take more time due to community involvement and federal funding requirements. The Dept. has instituted streamlining processes for permits to speed the timeline.

215

Rep. Hass

Expresses concern about the heavy reliability on bonding. Asks if ODOT has information regarding the debt service on the bonds.

225

Bruce Warner

Responds that long-term bonds are used when a capital investment is going to last longer than the term of the bonds. The bonds also help jump-start the economy and provide jobs. Long-term bonding is attractive when the “cost of borrowing” is at or below the rate of inflation. After 2009 the bonds will expire for the modernization program, and there will only be about $25 M available for statewide projects.

OPENS PUBLIC HEARING FOR HOUSE JOINT RESOLUTION 5

270

Malik

Gives background of HJR 5 (Exhibit 4). The bill proposes a Constitutional change to allow revenue from taxes on motor vehicle fuel and ownership and operation of motor vehicles to be used for policing of highways.

290

Chair Butler

Gives historical background of this HJR. Refers to map in attachment that Mr. Warner [and Mr. Tindall] provided (Exhibit 3). Provides anecdotal information regarding the status of bridge repairs on Hwy. 20. States that HJR language is flawed because it is not of short-term duration as originally requested and it needs amending. Proposes using highway funds to help police the areas where bridges are constructed.

360

Chair Butler

States that he is hesitant about taking public testimony because of previous commitments with organizations and individuals opposed to HJR 5.

OPENS PUBLIC HEARING FOR HOUSE JOINT RESOLUTION 4

CLOSES PUBLIC HEARING FOR HOUSE JOINT RESOLUTIONS 4 and 5.

392

Chair Butler

Adjourns meeting at 2:25 p.m.

Tape Log Submitted by:

Reviewed by:

Kristi Bowman, Committee Assistant

Kim Taylor James, Committee Coordinator